Third Party Payment of MassHealth Claims

SECTION 27. Said section 5G of said chapter 18, as so appearing, is hereby further amended by inserting in line 52 after the word "party" the following sentence:- No third party shall require written authorization from the claimant before honoring the commonwealth's rights under this section.

Division of Registration Name Change

SECTION 28. Section 1 of chapter 24A of the General Laws, as so appearing, is hereby amended by striking out in line 24 the words "division of registration" and inserting in place thereof the following words:- division of professional licensure.

Two-Thirds Vote to Appropriate from the Stabilization Fund

SECTION 29. Section 2H of chapter 29 of the General Laws, as so appearing, is hereby amended by inserting in line 8 after the word "made" the following words:- , by a vote of two-thirds of each branch of the general court,.

Creation of School Facilities Fund

SECTION 30. Said chapter 29, as so appearing, is hereby further amended by inserting after section 2VV the following section:-
     Section 2WW. There shall be established and set up on the books of the commonwealth a separate fund, to be known as the School Facilities Fund, consisting of amounts credited to the fund in accordance with chapter 70B. The fund shall be administered in accordance with the provisions of said chapter 70B by the Massachusetts School Building Authority existing under chapter 703 of the acts of 1963, as amended, and shall be held in trust exclusively for the purposes and the beneficiaries described therein. The state treasurer shall be treasurer and custodian of the fund and shall have the custody of its moneys and securities.

Amendments to the Tobacco Settlement Fund

SECTION 31. Section 2XX of said chapter 29, as inserted by section 42 of chapter 127 of the acts of 1999, is hereby amended by striking out subsections (a) and (b) and inserting in place thereof the following two subsections:-
     (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Tobacco Settlement Fund. There shall be credited to said fund: (a) 50 per cent of all payments received by the commonwealth each year pursuant to the master settlement agreement in the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378; (b) 50 per cent of the earnings generated each year from the Health Care Security Trust as certified by the comptroller pursuant to paragraph (f) of section 3 of chapter 29D; (c) 50 per cent of any monies generated by any other claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes; (d) any federal reimbursements received pursuant to Title XIX and Title XXI of the Social Security Act, or a successor statute, as a result of expenditures made from said fund; (e) any fees, premiums, co-payments, assessments, or other revenues collected as a result of the operation of programs funded by expenditures from said fund; (f) any appropriation, grant, gift, or other contribution explicitly made to said fund; and (g) any income derived from the investment of amounts credited to said fund.
     (b) Amounts credited to said fund shall be expended, subject to appropriation, for the purpose of funding health related services and programs including, but not limited to, services and programs intended to control or reduce the use of tobacco in the commonwealth.

State Reclamation Board Indirect Cost Assessment

SECTION 32. Notwithstanding the provisions of any general or special law to the contrary, the Mosquito and Greenhead Fly Fund, including any expenditure accounts associated with said fund, shall not be subject to indirect cost assessments by the comptroller pursuant to subsection (f) of section 6B of chapter 29 of the General Laws.

Massachusetts Water Pollution Abatement Trust Liability

SECTION 33. Section 6 of chapter 29C of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by inserting in line 27 after the word "thereby." the following sentence:- Notwithstanding the foregoing but subject to the limit on contract assistance provided in this section, all permanent loans and other forms of financial assistance made by the trust to finance costs of water pollution abatement projects on the department's intended use plan for fiscal year 2001 and any subsequent fiscal year, or added to the department's intended use plan for fiscal year 2000 on or after January 1, 2000, shall provide for a subsidy or other assistance in the payment of debt service thereon such that such loans and other forms of financial assistance shall be the financial equivalent of a loan made at an interest rate equal to 2 per cent, provided, however, that the limitations contained in section 420 of chapter 194 of the acts of 1998 on the amount of contract assistance paid by the commonwealth over the life of loans made by the trust shall not apply to such loans and other forms of financial assistance.

Massachusetts Water Pollution Abatement Trust Liability

SECTION 34. Paragraph (g) of section 18 of said chapter 29C, as so appearing, is hereby amended by inserting in line 123 after the word "thereby." the following sentence:- Notwithstanding the foregoing but subject to the limit on contract assistance provided in this section, all permanent loans and other forms of financial assistance made by the trust to finance costs of drinking water projects on the department's intended use plan for fiscal year 2001 and any subsequent fiscal year, or added to the department's intended use plan for fiscal year 2000 on or after January 1, 2000, shall provide for a subsidy or other assistance in the payment of debt service thereon such that such loans and other forms of financial assistance shall be the financial equivalent of a loan made at an interest rate equal to 2 per cent.

Amendment to the Health Care Security Trust

SECTION 35. Chapter 29D of the General Laws, as inserted by section 43 of chapter 127 of the acts of 1999, is hereby amended by striking out section 3 and inserting in place thereof the following section:-
     Section 3. (a) The trust shall have the fiduciary responsibility to manage the trust fund into which shall be credited (i) any monies received by the commonwealth pursuant to the master settlement agreement in the tobacco action, other than payments for attorneys fees; (ii) 50 per cent of any monies generated by any other claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes; (iii) any appropriation, grant, gift, or other contribution explicitly made to said trust fund; and (iv) any income derived from the investment of amounts credited to said trust fund.
     (b) The comptroller shall promptly certify to the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care, and the advisory committee on health care and tobacco control established pursuant to section 5 the amount and date when any payments are made pursuant to the master settlement agreement in the tobacco action and any other payments are made or credited to said fund. In fiscal year 2001 and thereafter, the comptroller shall transfer 50 per cent of the total of all annual payments made pursuant to the master settlement agreement in the tobacco action and received in that fiscal year from the Health Care Security Trust Fund to the Tobacco Settlement Fund; provided, that amounts received in any fiscal year as strategic contribution fund payments, pursuant to the master settlement agreement, shall not be transferred to the Tobacco Settlement Fund. The comptroller shall adjust the amounts of all such transfers by applying to such transfers the adjustment factors established in the master settlement agreement in the tobacco action, as verified by and in consultation with the attorney general.
     (c) The comptroller shall make all transfers authorized in this section periodically over the course of the applicable fiscal year as he deems necessary to meet expenditures from said Tobacco Settlement Fund, but the total of all such transfers shall not be less than the amounts authorized for transfer herein.
     (d) Not later than October 31 of each year, the comptroller shall certify to the trustees, the fiscal affairs division, the house and senate committees on ways and means, the joint committee on health care, and the advisory committee on health care and tobacco control the balance in the Tobacco Settlement Fund, the balance in the Health Care Security Trust Fund, and the amount of earnings generated by the principal of said trust fund during the prior 12-month period ending on September 30. On or before July 1 of each year, but not before July 1, 2001, the comptroller shall transfer 50 per cent of said earnings, as so certified by the comptroller in the previous October, from the Health Care Security Trust to the Tobacco Settlement Fund, which shall be available for expenditure subject to appropriation.
     (e) Appropriations made by the general court for the purpose of this chapter, and pursuant to the Tobacco Settlement Fund, that remain unexpended at the end of a fiscal year shall be credited to the fund from which any such appropriation was made and shall not revert to the General Fund.
     (f) Nothing in this chapter shall obligate the commonwealth to disburse any funds from said trust in excess of any monies received by the trust pursuant to section 1.

Amendment to the Health Care Security Trust

SECTION 36. Section 4 of said chapter 29D, as so inserted, is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection:-
     (c) Any appropriation by the general court of monies transferred by the comptroller from the trust to the Tobacco Settlement Fund pursuant to section 3 shall be used for health related purposes, including tobacco control.

Amendment to the Health Care Security Trust

SECTION 37. Subsection (e) of section 5 of said chapter 29D, as so inserted, is hereby amended by striking out in the first sentence the words "subsections (c) and (e)" and inserting in place thereof the following words:- subsection (b).

Amendment to the Health Care Security Trust

SECTION 38. Said section 5 of said chapter 29D, as so inserted, is hereby further amended by striking out subsection (g) and inserting in place thereof the following subsection:-
     (g) Said commission shall monitor the performance and effectiveness of all programs funded by earnings of the trust and shall undertake a sunset review, so called, of any such program or service not achieving performance expectations. Said commission shall monitor the extent to which funding from the trust complements or expands upon previously implemented health related programs and services.

Division of Registration Name Change

SECTION 39. Section 1 of chapter 30 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by striking out in line 5 the words "division of registration" and inserting in place thereof the following words:- division of professional licensure.

Division of Registration Name Change

SECTION 40. Section 7 of said chapter 30, as so appearing, is hereby amended by striking out in line 10 the words "division of registration" and inserting in place thereof the following words:- division of professional licensure.

Extension of Medical Benefits for Unpaid Leave

SECTION 41. Section 8 of chapter 32A of the General Laws, as so appearing, is hereby amended by striking out in lines 66 and 67 the words "due to illness of such employee and not because of illness of his immediate family" and inserting in place thereof the following words:- due to illness of such employee or due to serious illness of his spouse or either parent.

Extension of Medical Benefits for Unpaid Domestic Violence Leave

SECTION 42. Said section 8 of said chapter 32A, as so appearing, is hereby further amended by inserting in line 72 after the word "compensation." the following sentence:- If an employee qualifies for unpaid leave because he is a victim of domestic violence or because his children are victims of domestic violence, for purposes of this chapter he shall be subject to the rules and regulations of the commission and said employee shall make payment of the portion of the total monthly premium or rate that otherwise would have been deducted from his salary, wages, or other compensation.

Extension of Medical Benefits for Unpaid Leave

SECTION 43. Section 10E of said chapter 32A, as so appearing, is hereby amended by striking out in lines 7 and 8 the words "minor dependent child under three years of age" and inserting in place thereof the following words:- dependent child under 18 years of age, or dependent child 18 years of age or older if incapable of self-care due to physical or mental disability.

Payment in Lieu of Insurance Coverage

SECTION 44. Section 19 of said chapter 32A, as so appearing, is hereby amended by striking out in line 3 the words "June first, nineteen hundred and ninety-three" and inserting in place thereof the following words:- June 1, 2000.

Abolition of Bristol, Nantucket, Plymouth and Suffolk Counties

SECTION 45. Chapter 34B of the General Laws, as inserted by section 53 of chapter 127 of the acts of 1999, is hereby amended by striking out section 1 and inserting in place thereof the following section:-
     Section 1. The government of each of the following counties, in this chapter called an "abolished county," is hereby abolished as of the following date, in this chapter called the "transfer date," or on such earlier date 30 days after the commissioner of revenue certifies in writing that the county has failed to make a required payment on an outstanding bond or note: (a) Middlesex county, as of July 11, 1997; (b) Hampden and Worcester counties, as of July 1, 1998; (c) Hampshire county, as of January 1, 1999; provided, however, that all functions, duties, and responsibilities for the operation and management of the jail, house of correction, and registry of deeds of Hampshire county and all duties and responsibilities for the operation and management of property occupied primarily by the sheriff, the registry of deeds, and the trial courts in Hampshire county are hereby transferred to the commonwealth, effective September 1, 1998, subject to the provisions of this chapter; (d) Essex county as of July 1, 1999; (e) Berkshire county as of July 1, 2000, provided, however, that all functions, duties, and responsibilities for the operation and management of the registries of deeds of Suffolk and Berkshire counties and all duties and responsibilities for the operation and management of property occupied primarily by said registries are hereby transferred to the commonwealth, effective July 1, 1999, subject to the provisions of this chapter; (f) Plymouth and Suffolk counties as of July 1, 2001; and (g) Bristol and Nantucket counties as of July 1, 2002.

Capital Gains Technical Corrections

SECTION 46. Subparagraph (a) of paragraph (2) of subsection (c) of section 2 of chapter 62 of the General Laws, as inserted by section 64 of chapter 127 of the acts of 1999, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- For purposes of this subsection, any Part A net capital loss shall first be applied to any Class B net capital gain, then to any Class C net capital gain, then to any Class D net capital gain, then to any Class E net capital gain, then to any Class F net capital gain, then to any Class G net capital gain.

Capital Gains Technical Corrections

SECTION 47. Subparagraph (b) of said paragraph (2) of said subsection (c) of said section 2 of said chapter 62, as so inserted, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- For purposes of this subsection, any Part A net capital gain shall first be offset by any Class B net capital loss, then by any Class C net capital loss, then by any Class D net capital loss, then by any Class E net capital loss, then by any Class F net capital loss, then by any Class G net capital loss.

Capital Gains Technical Corrections

SECTION 48. Paragraph (I) of subsection (e) of said section 2 of said chapter 62, as inserted by section 67 of said chapter 127, is hereby amended by striking out subparagraph (1) and inserting in place thereof the following subparagraph:-
     (1) Each class of net capital loss for the year shall be applied against the other class's net capital gains included in Part C gross income in the following order: Class B net capital gain shall first be offset by any Class C net capital loss, then by any Class D net capital loss, then by any Class E net capital loss, then by any Class F net capital loss, then by any Class G net capital loss. Class C net capital gain shall first be offset by the remainder of any Class B net capital loss, then by the remainder of any Class D net capital loss, then by the remainder of any Class E net capital loss, then by the remainder of any Class F net capital loss, then by the remainder of any Class G net capital loss. Class D net capital gain shall first be offset by the remainder of any Class B net capital loss, then by the remainder of any Class C net capital loss, then by the remainder of any Class E net capital loss, then by the remainder of any Class F net capital loss, then by the remainder of any Class G net capital loss. Class E net capital gain shall first be offset by the remainder of any Class B net capital loss, then by the remainder of any Class C net capital loss, then by the remainder of any Class D net capital loss, then by the remainder of any Class F net capital loss, then by the remainder of any Class G net capital loss. Class F net capital gain shall first be offset by the remainder of any Class B net capital loss, then by the remainder of any Class C net capital loss, then by the remainder of any Class D net capital loss, then by the remainder of any Class E net capital loss, then by the remainder of any Class G net capital loss. Class G net capital gain shall first be offset by the remainder of any Class B net capital loss, then by the remainder of any Class C net capital loss, then by the remainder of any Class D net capital loss, then by the remainder of any Class E net capital loss, then by the remainder of any Class F net capital loss. The amount of any class of net capital loss that remains after the foregoing offsets, reduced by the amount of such loss that is deducted under subparagraph (b) of paragraph (2) of subsection (c), shall be Part C capital loss within the same class in the succeeding taxable year.

Capital Gains Technical Corrections

SECTION 49. Subparagraph (2) of said paragraph (I) of said subsection (e) of said section 2 of said chapter 62, as so inserted, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:-
     Class B, C, D, E, F, and G net gains shall be reduced by any remaining excess of the deductions allowable under paragraph (d) over the Part B gross income, after applying the excess of each class's net capital loss against other class's net capital gains in accordance with paragraph (I)(1) of subsection (e) and after applying such excess Part B deductions against Part A gross income in accordance with paragraph (1) of subsection (c).

Clarification of Corporate Trust Source Income Rules

SECTION 50. Subsection (c) of section 8 of said chapter 62, as appearing in the 1998 Official Edition, is hereby amended by inserting in line 51 after the word "profits" the following sentence:- In the case of a corporate trust doing business both within and outside of Massachusetts and subject to tax under this section, dividends received by shareholders who are Massachusetts residents shall be deemed to have been made from tax-free earnings and profits to the extent that the earnings and profits of the trust are not apportioned to the Commonwealth and subject to tax under subsection (a), provided however that such shareholders shall be entitled to credit for income taxes paid to other jurisdictions on such earnings and profits, either by the shareholders or by the corporate trust, as provided under subsection (a) of section 6.

Said subsection (c) is hereby further amended by striking out the last sentence and inserting in place thereof the following sentence:- Dividends on shares of any corporate trust subject to taxation under this chapter and which is a federal S corporation shall also be exempt from taxation in the manner described above.

County Deeds' Excise Funds

SECTION 51. Chapter 64D of the General Laws, as so appearing, is hereby amended by striking out section 11 and inserting in place thereof the following section:-
     Section 11. There shall be established upon the books of each county that has not been abolished pursuant to the provisions of chapter 34B a separate fund, maintained separate and apart from all other funds and accounts of each county, to be known in each case as the Deed's Excise Fund.
     Notwithstanding the provisions of any general or special law, including this chapter, to the contrary, and except for Barnstable county and all counties that have been abolished pursuant to the provisions of chapter 34B or other applicable provision of law, on the first day of each month, 42.5 per cent of the taxes collected pursuant to the provisions of this chapter shall be transmitted to the Deed's Excise Fund for each county. For Barnstable county, on the first day of each month, 28.33 per cent of the taxes collected pursuant to the provisions of this chapter, but not including the additional excise authorized under the provisions of section 2 of chapter 163 of the acts of 1988, shall be transmitted to the Deed's Excise Fund. Notwithstanding the provisions of any general or special law, including this chapter, to the contrary, and except for Barnstable county and all counties that have been abolished pursuant to the provisions of chapter 34B or other applicable provision of law, on the first day of each month, 7.5 per cent of the taxes collected pursuant to the provisions of this chapter shall be transmitted to the County Correction Fund established in section 13. For Barnstable county, on the first day of each month, 5 per cent of the taxes collected pursuant to the provisions of this chapter, but not including the additional excise authorized under the provisions of section 2 of said chapter 163, shall be transmitted to said County Correction Fund. The remaining per centage of taxes collected under the provisions of this chapter, including all taxes collected under the provisions of this chapter in all counties that have been abolished pursuant to the provisions of chapter 34B or other applicable provision of law, shall be transmitted to and retained by the General Fund of the commonwealth in accordance with the provisions of section 10.

Distribution of the County Correction Fund

SECTION 52. Section 13 of said chapter 64D, as so appearing, is hereby amended by striking out the first and second paragraphs and inserting in place thereof the following two paragraphs:-
     There is hereby established on the books of the commonwealth a separate fund, to be known as the County Correction Fund. Said fund shall be maintained separate and apart from all other funds and accounts of the commonwealth. Moneys from said fund shall be used primarily for the operation and maintenance of any jail or house of correction in any county that has not been abolished pursuant to the provisions of chapter 34B or other applicable provision of law, including other statutorily authorized facilities and functions of the office of the sheriff of any such county and programs to reduce overcrowding in the jails and houses of correction of any such county.
     In order to obtain money from said fund, the sheriff of a county that has not been abolished pursuant to the provisions of chapter 34B or other applicable provision of law, shall make application to the county government finance review board on a form prescribed by the secretary of administration and finance. Each such request shall be accompanied by copies of the budget for any jail or house of correction in such county for the current fiscal year and the previous fiscal year. The sheriff shall submit such other information and documentation as the board may require. The board shall review all of the information provided by a county sheriff and make a determination as to the amount of money, if any, which shall be given to the applicant from the fund; provided, however, that before any funds are given to the applicant notification shall be provided to the house and senate committees on ways and means.

Filing Date Change for Use Tax Bad Debt Reimbursement Claims

SECTION 53. Section 34 of chapter 64 I of the General Laws, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- Such claims for reimbursement, covering the amount of the excise paid on accounts determined to be worthless in the vendor's prior fiscal year, shall be filed on or before the due date, including extensions, of the federal income tax return or annual federal filing in the case of an exempt organization for such prior fiscal year.

Education Reform - Minimum Contribution Waiver

SECTION 54. (a) Upon the request of the board of selectmen in a town, the city council in a plan E city or the mayor in any other city, the department of revenue may recalculate the minimum required local contribution, as defined in section 2 of chapter 70 of the General Laws, in the fiscal year ending June 30, 2001. Based on the criteria outlined in this section, the department shall recalculate the minimum required local contribution for a municipality's local and regional schools and shall certify the amounts calculated to the department of education.
     (b) A city or town that used qualifying revenue amounts in a fiscal year which shall not be available for use in the next fiscal year, or that shall be required to use revenues for extraordinary nonschool-related expenses for which it did not have to use revenues in the preceding fiscal year, or that has an excessive certified municipal revenue growth factor which is also greater than or equal to one and one-half times the state average municipal revenue growth factor, may appeal to the department of revenue not later than October 1, 2000 for an adjustment of its minimum required local contribution and net school spending.
     (c) If a claim is determined to be valid, the department of revenue may reduce proportionately the minimum required local contribution amount based on the amount of shortfall in revenue or based on the amount of increase in extraordinary expenditures in the current fiscal year, but no adjustment to the minimum required local contribution on account of an extraordinary expense raised in the budget of the fiscal year ending on June 30, 2001, shall affect the calculation of the minimum required local contribution in subsequent fiscal years. Qualifying revenue amounts shall include, but not be limited to, extraordinary amounts of free cash, overlay surplus, and other available funds.
     If, upon submission of adequate documentation, the department of revenue determines that the municipality's claim regarding an excessive municipal revenue growth factor is valid, said department shall recalculate such municipal revenue growth factor and the department of education shall use such revised growth factor to calculate preliminary local contribution, minimum required local contribution, and any other factor that directly or indirectly uses the municipal revenue growth factor. Any relief granted as a result of an excessive municipal revenue growth factor shall be a permanent reduction in minimum required local contribution.
     (e) Upon the request of the board of selectmen in a town, the city council in a plan E city, or the mayor in any other city, in a majority of the member municipalities, a regional school district which used qualifying revenue amounts in a fiscal year that shall not be available for use in the next fiscal year shall appeal to the department of revenue not later than October 1, 2000 for an adjustment to its net school spending requirement. If the claim is determined to be valid, the department of revenue shall reduce the net school spending requirement based on the amount of the shortfall in revenue and reduce the minimum required local contribution of member municipalities accordingly. Qualifying revenue amounts shall include, but not be limited to, extraordinary amounts of excess and deficiency, surplus, and uncommitted reserves.
     (f) A regional school district which received regional school incentive aid in fiscal year 1995 shall, upon the request of the board of selectmen in a town, the city council in a plan E city, or the mayor in any other city, in a majority of the member municipalities, appeal to the department of education for an adjustment in the minimum required local contribution of its member municipalities. The department of education may reduce the increased assessment of the member municipalities as a result of the reorganization of the regional school district by using a portion of the regional incentive aid to reduce the prior year local contribution.
     (g) If the regional school budget has already been adopted by two-thirds of the member municipalities, then upon a majority vote of the member municipalities, the regional school committee shall adjust the assessments of the member municipalities in accordance with the reduction in minimum required local contributions approved by the department of revenue or the department of education in accordance with the provisions of this section.
     (h) Notwithstanding the provisions of clause (14) of section 3 of chapter 214 of the General Laws or any other general or special law to the contrary, the amounts so determined shall be deemed to be the minimum required local contribution described in said chapter 70. The house and senate committees on ways and means and the joint committee on education, arts and humanities shall be notified by the department of revenue and the department of education of the amount of any reduction in the minimum required local contribution amount.
     (i) In the event that a city or town has an approved budget that exceeds the recalculated minimum required local contribution and net school spending amounts for its local school system or its recalculated minimum required local contribution to its regional school districts as provided by this section, the local appropriating authority shall determine the extent to which the community shall avail itself of any relief authorized under this section.
     (j) The amount of financial assistance due from the commonwealth in fiscal year 2001 under said chapter 70 or any other provision of law shall not be changed on account of any redetermination of the required minimum local contribution under this section.
     (k) The department of revenue and the department of education shall issue guidelines for their respective duties under this section.

School Facilities Program

SECTION 55. The General Laws are hereby amended by inserting after chapter 70 the following chapter:-
Chapter 70B. School Facilities Program.
     Section 1. School facilities program; Creation and Purpose.
Whereas the school facilities program is the largest capital grant program operated by the commonwealth and is necessary for the establishment of public school buildings in the commonwealth; and whereas the costs of the school building assistance program are increasing at an unsustainable rate and that local governments need flexibility in school facilities assistance to ensure that local need for school facility space, downtown development, open space and community space are met; and to promote the thoughtful planning and construction of school facility space in order to insure safe and adequate plant facilities for the public schools, and to assist towns in meeting the cost thereof, there is hereby established a school facilities program.
     Section 2. Definitions.
For the purposes of this act, the following words shall have the following meanings:--
"Alternatives to Construction" - approved school facilities projects that do not include capital construction or building renovation.
"Approved school project", any capital construction; lease of buildings or modular facilities; arrangements with higher education facilities or other non-profit or municipal entities; year round schooling to prevent over-crowding; use of swing space between school buildings in the district; tuition arrangements with other school districts to prevent overcrowding; or other school facilities project as may be approved by the commission, which: (a) is determined by the school facilities commission to be necessary to meet educational standards, as promulgated by the commission, for anticipated enrollment levels, and (b) conforms to the following provisions: that each construction or renovation component of said project has an expected useful life, as determined by the school facilities commission, of at least seven years and also of at least the period for which any debt obligations undertaken to finance said project will remain outstanding. An approved school project shall not include a project in a school that has had a project approved pursuant to this chapter or to chapter 645 of the acts of 1948, as amended, within ten years prior to the project application date.
"Assisted facility", a school facility that has received a facilities grant pursuant to this chapter.
"Authority", the Massachusetts School Building Authority created under chapter 703 of the acts of 1963 as amended.
"Capital construction project", any capital project, other than a major reconstruction project, for the enlargement or original equipping of any public schoolhouse in any city or town, or a project for the renovation of an existing structure for use as a schoolhouse; or the renovation of an existing schoolhouse.
"Charter School", a school as defined by section 89 of chapter 71.
"Construction Manager", as defined by Section 38A 1/2 of chapter 7.
"Eligible applicant", any city, town, regional school district or charter school.
"Innovative Community Use" - approved school facilities projects that combine community resources to streamline the costs of and utilize other funding sources for the school facilities project.
"Maintenance rating" - rating given to schools and school districts, by the commission, based on a maintenance assessment conducted by the commission.
"Major reconstruction project", any capital school facilities or extraordinary maintenance project that is approved by the commission to participate in the major reconstruction revolving loan fund.
"Non-state Fundraising"- third party monies made available to the eligible applicant for approved school facilities projects, including but not limited to private donations and federal grants.
"Regional school", any public school established under any provision of law by the action of two or more cities or towns. For the purposes of this act, the agricultural schools maintained by the counties of Bristol and Norfolk shall be deemed to be regional schools.
"Regional school district", any instrumentality of the commonwealth, established by two or more cities and towns for the purpose of operating a regional school.
"Stock Plans" - basic school architectural designs and plans developed by the commission for use by eligible applicants.
"Total facilities grant", the grant representing the commonwealth's total contribution to an approved school project, and which is calculated as follows:
In the case of a grant for an approved project of a city or town, the total construction grant shall be the product of multiplying the final approved costs of such project, including costs referred to in section 4, by the reimbursement percentage determined pursuant to section 10 for the year in which the project is approved.
     (1) In the case of a grant for an approved project of a regional school district or a county, the total construction grant shall be the sum of the grants computed separately for each city and town which is a member of said regional school district or located in said county as hereinafter provided. For purposes of this computation, each member city's and town's share of the combined grant shall be equal to the total approved project cost, including costs referred to in section 4, multiplied by the product of the reimbursement percentage listed in section 10 (a), multiplied by the percentage of district or county capital costs that would be apportioned to such city or town in accordance with the applicable regional school district agreement or law for capital costs incurred in the fiscal year in which the grant is approved. The amount of the total capital costs apportioned to a member city or town in any fiscal year on account of an approved school project of a regional school or county, determined in accordance with the applicable regional school district agreement or law, shall be reduced by an amount equal to the amount of the grant payable on account of such project in such fiscal year multiplied by a fraction the numerator of which is the city's or town's reimbursement percentage, determined as aforesaid, multiplied by the percentage of capital costs apportioned to the city or town for such fiscal year in accordance with the applicable regional school district agreement or law, and the denominator of which is the sum of the percentages so derived as the numerators for all of the member cities and towns.
     (2) In the case of a grant for an approved project of the Essex Agricultural and Technical Institute or a charter school, the total construction grant shall be the sum of the grants computed separately for each city and town in which students of said school reside averaged by means of a weighted average multiplied by the final approved costs.
     Section 3. Powers and Duties.
There shall be within the executive office of administration and finance, but not subject to its control, a seven member commission to be known as the school facilities commission, hereafter referred to as the "commission." The commission shall be comprised of the secretary of administration and finance or his designee who shall serve as chair; the commissioner of the division of capital asset management and maintenance; the commissioner of the department of education; the deputy commissioner of the department of revenue responsible for the division of local services; the commissioner of food and agriculture; and the director of the department of housing and community development, or their respective designees. The seventh member shall be appointed by the Governor.
The commission shall establish general policy and review standards regarding school building construction, renovation, maintenance and facility space, provide coordination on matters relating to school building construction, renovation, maintenance and facility space between the various agencies of the commonwealth and local governing bodies, and coordinate the distribution of school facilities funds provided in accordance with this act.
The action of a majority of the commission shall constitute action by the commission.
The powers and duties of the commission shall be, generally, to encourage and foster the thoughtful establishment and maintenance of school facility space in and among the cities and towns of the commonwealth. The commission shall be responsible for the oversight and management of the school facilities program as defined herein and referred to hereafter as the "program." In carrying out its duties the commission shall be guided by the following principles: preservation of open space and minimization of loss of such open space; emphasis on thoughtful community development; and project flexibility that addresses the needs of individual communities and municipalities.
Specific powers of the commission shall include, but not be limited to the following:
(a) review, approve or deny grant applications, waivers and other requests submitted to the program; review, approve and recommend changes to grant payment schedules or suspend said schedules for program projects as re-financings, audit findings and other such circumstances may warrant such action;
(b) provide legal, architectural or other technical advice and assistance, training and education, to cities and towns or to joint committees thereof, and to general contractors, subcontractors, project managers, designers and others in the planning, maintenance and establishment of school facility space;
(c) recommend to the general court such legislation as it may deem desirable or necessary to further the purposes of this act;
(d) develop a formal enrollment projection model or consider using projection models already available;
(e) receive gifts and grants;
(f) enter into contracts;
(g) receive, distribute and expend state and federal funds subject to appropriations;
(h) develop a project priority system that allows safety projects to receive funding priority but also considers the length of time a project has been waiting for funding in establishing the annual funding list;
(i) develop stock building plans for use by school districts and municipalities;
(j) determine eligibility of cost components of projects for reimbursement including partial or full eligibility for project components for which the benefit is shared between the school and other municipal entities;
(k) develop regulations to allow for eligibility of partial renovation projects based on criteria that the partial renovation must satisfy the school's need for program reimbursement for ten years;
(l) establish appropriate rules and regulations as may be necessary; and
(m) To do all things necessary or convenient to carry out the purposes of this chapter.
Specific duties of the commission shall include but not be limited to: preparing an annual budget; collecting and maintaining data on all the public school facilities in the commonwealth including information on size, usage, enrollment, available facility space, and maintenance; and establishing rules and regulations to ensure that there is no bias in favor of new construction.
The commission, by a majority vote of all its members, may appoint and may, in its discretion remove an executive director. The commission may, with the advice of the executive director, subject to appropriation, employ such assistants, experts, clerks and other employees as it may deem necessary to carry out the provisions of this chapter. The department of education, division of capital asset management and maintenance, division of local services and executive office of environmental affairs shall provide sufficient staff and expertise to operate the school facilities program as defined herein.
The executive director shall plan, direct, coordinate and execute administrative functions in conformity with the policies and directives of the commission; and report to the commission on all operations under his control and supervision.
     Section 4. Reimbursement for educational, engineering or architectural expenses.
Any eligible applicant may apply to the commission for reimbursement, in whole or in part, of any expenses incurred for educational, engineering and architectural services incidental to the planning of a regional school; or any expenses incurred for surveys made of school building needs and conditions, the contract for which has been approved by the commission. Such application shall be accompanied by information and documentation that the commission may require. The commission may, if the expenses so incurred are reasonable, certify to the comptroller for payment to such eligible applicant such amount, not exceeding such expenses, as it may deem proper, and the state treasurer shall forthwith make the payments so certified from any funds appropriated therefor.
     Section 5. Application for school facilities grant.
Any eligible applicant may apply to the commission for a school facilities grant to meet in part the cost of an approved school project. Such application shall be in the form prescribed by the commission, and shall be accompanied or supplemented by drawings, plans, estimates of cost, and proposals for defraying such costs, or any such additional information as the commission may require, before construction is undertaken. Notwithstanding any provision of this act to the contrary, in the event that an eligible applicant undertakes construction before approval is obtained said eligible applicant shall remain subject to the commission's approval process as if such construction were not undertaken; provided, further, that in the event that the commission approves a school facilities project on which construction is undertaken prior to commission approval, the grant for such project shall not include the cost of any interest incurred for financing necessary to begin construction prior to commission approval.
     Section 6. Processing of grant applications.
     (a) Forthwith upon receipt of an application under the provisions of section 5, the commission shall examine such application and any facts, estimates or other information relative thereto, and shall determine whether the proposed project is in the best interests of the commonwealth and the eligible applicant, with respect to its site, type of construction, sufficiency of accommodations, open space preservation, urban development, urban sprawl, and otherwise. In determining whether the proposed project is in the best interests of the commonwealth, the said commission shall consider the availability of funds under section 7, the order of priorities under section 8 and the construction procedures and standards under section 9. If, in its opinion, such proposed project should be undertaken, the commission shall determine the estimated approved cost of such project, which cost may be equal to the estimated cost furnished by such city, town, or regional school district or a lesser amount, and compute the amount estimated of facilities grant to which the town would be entitled under section 10, such computation being based on said approved cost.
     (b) Within a reasonable time after receipt of such application the commission shall notify such applicant of its approval or rejection therefor, and, in the event of its rejection, of the reasons therefor. Notice of approval hereunder shall be accompanied by a statement of the estimated approved cost as determined by the commission, and an estimate of the amount of school facilities grant to which such city, town or regional school district may be entitled under the provisions of said section 10.
     (c) The final approved cost shall be determined by the commission within a reasonable time after the acceptance of the completed project by the local school committee, or in the case of charter schools, by the board of trustees. (d) Payments shall be determined based on the final approved cost.
     Section 7. Criteria for approval of projects; first annual estimated payments; appropriations.
     (a) Before approving any school project as defined in section 2, the commission shall determine (1) the amount of the first annual estimated payments on such projects and (2) the fiscal year in which it is anticipated that the first annual estimated payments would be paid. The aggregate amount of such first annual estimated payments for projects approved by the commission in any fiscal year shall not exceed such amount as may be duly authorized therefor as a part of an annual general or supplemental appropriation act or otherwise. For the purposes of this section, a "first annual estimated payment" shall be the amount of the first annual estimated payment made by the Commonwealth on behalf of an eligible applicant which results from the approval of a school facilities project.
     (b) In each fiscal year there shall be appropriated on account of the provisions of this chapter four separate items in accordance with the following clauses: (1) an amount to provide for the first annual payment on any school facilities project approved on or after the effective date of this act; (2) an amount required for payments in the fiscal year on account of grants and reimbursements for educational, engineering and architectural services for regional schools and for surveys made of school building needs and conditions as set forth in section 4, (3) an amount required for annual payments to be made in the fiscal year on account of school facilities projects approved by the board prior to the effective date of this act and all other projects approved after said date on which the first annual payment has been made; and (4) for buildings which are structurally unsound or otherwise in a condition jeopardizing the safety of school children, where no alternative exists. Except as otherwise provided in any agreement between the commission and the authority, all amounts appropriated on account of total facilities grants for capital construction projects approved on or after the effective date of this act shall be paid to the authority for application as provided in section 15 of this act
     Section 8. Priority for approval of projects and reimbursements.
The commission shall approve school projects and reimbursements under this chapter in accordance with the following order of priorities:
(1) priority shall be given to school projects needed in the judgment of said commission to replace or renovate a building which is structurally unsound or otherwise in a condition seriously jeopardizing the safety of school children, where no alternative exists;
(2) priority shall be given to school projects to eliminate existing severe overcrowding;
(3) priority shall be given to school projects needed in the judgment of said commission to prevent loss of accreditation;
(4) priority shall be given to school projects needed for schools on accreditation warning status;
(5) priority shall be given to school projects needed in the judgment of said commission to prevent severe overcrowding expected to result from increased enrollments which must be substantiated;
(6) priority shall be given to any school project needed in the judgment of said commission for the replacement, renovation or modernization of the cooling or heating system or building feature in any schoolhouse to increase energy conservation and decrease energy related costs in said schoolhouse;
(7) priority shall be given to any school project needed in the judgment of said commission for short term enrollment growth; and
(8) priority shall be given to school projects needed in the judgment of said commission to replace, or add to obsolete buildings in order to provide for a full range of programs consistent with state and approved local requirements. Notwithstanding the provisions of section 6, the commission may defer its approval or disapproval of any project application if such deferral is necessary for the effective implementation of the provisions of this section.
Projects shall be reprioritized for funding annually and the commission shall establish a level of preference for projects for each year that they remain on the list before receiving funding.
The commission may issue regulations to define the procedures pursuant to which the priorities established by this section will be implemented. Notwithstanding the foregoing, the school facilities commission shall not approve any project for any school district which fails to spend in the year preceding the year of application at least 50 per cent of the sum of said school district's calculated foundation budget amounts for the purposes of foundation utility and ordinary maintenance expenses, and extraordinary maintenance allotment as defined in chapter 70, for said purposes; provided further, that from fiscal year 1999 forward, no school district shall be approved for a project nor receive school facilities funds unless said district has spent at least 50 per cent of the sum of said district's calculated foundation budget amounts in each of the fiscal years including and succeeding fiscal year 1999; provided further, that all projects which received first school building assistance payments prior to July 1, 2000 shall be exempted from the provisions of this paragraph; and provided further, that upon a request of a school district, the school facilities commission is hereby authorized to grant a waiver from said requirement for unanticipated or extraordinary changes in maintenance spending as determined by said departments, including, but not limited to, the impact on said spending because of the opening of a new school building, the closing of an existing school building, or the completion of a major renovation project.
     Section 9. Standards and procedures.
     (a) In order to maximize the cost effective production of efficient and creative school projects the commission shall require that every school project conform to the following standards and procedures: (1), that the applicant fully consider all available options for satisfying the described need, including tuition agreements with adjacent school districts, rental or acquisition and any necessary rehabilitation or usage modification of any existing building which could be made available for school use; (2), that the applicant's site selection is based on the cost and environmental factors including an awareness of soil conditions and their probable effect on foundation and site development costs, transportation effects, dislocation of site occupants and relationship to other community facilities; (3), that the applicant enter into contracts, using forms satisfactory to the commission, for such competent architectural, engineering and other services as may be required; (4), that procedures satisfactory to the commission are followed by the applicant throughout the planning and construction of the project such as will assure maximum attention to the operating and capital cost effects of program and design decisions, materials and systems selections.
     (b) The commission shall issue annually, as hereinafter provided, maximum eligible cost standards and size standards for school projects. These standards may take into account the type and location of a proposed school project. The program standards shall define prototype school design and space recommendations for each specified program activity eligible for state financial assistance. The prototype school standards shall, in the judgment of the commission, be in conformity with the minimum requirements of state law and shall also reflect consideration of cost effects, prevailing educational standards in the commonwealth and the needs of efficient and creative school projects. The cost standards shall be based on the price experience of recently completed and recently bid school projects, taking into account the cost effectiveness of design, construction and programming techniques utilized in such school projects. For the purpose of calculating the total construction grant under section 10, the estimated approved cost and the final approved cost for a school project shall not exceed the cost that would result if the project conformed to prototype school standards. The provisions of this section shall not be deemed to preclude a city, town or regional school district from exceeding prototype school standard; provided, however, that the cost of such additional facilities and design shall not be included in the estimated cost and final approved cost on the basis of which the state construction grant is calculated.
     (c) After compliance with section 3 of chapter 30A, the commission shall not later than the first day of March in each year adopt interim regulations, including minimum program standards and maximum cost standards, for the implementation of this section. Forthwith upon the adoption of such regulations, the said commission shall file a copy thereof with the clerk of the house of representatives who shall refer such regulations to an appropriate committee of the general court. Within thirty days after such filing, the said committee may hold a public hearing on the regulations, shall issue a report, and file a copy thereof with the commission. Said commission shall adopt final regulations making such revisions in the interim regulations as it deems appropriate in view of such report and shall forthwith file a copy of the regulations with the chairperson of the committee of the general court to which the interim regulations were referred and not earlier than thirty days after the date of such filing, the commission shall file the final regulations with the state secretary and the said regulations shall thereupon take effect.
     Section 10. The commonwealth's share of approved project costs.
Other than for grants to assist eligible applicants in which the percentage of low income students in the school district equals one hundred and thirty-three percent of the statewide average percentage of low income students, the total construction grant to be paid to cities, towns, regional school districts and charter schools on account of projects approved after the effective date of this act shall be based on the following formula; provided, however, that no grant shall be approved for any amount less than fifty per cent nor greater than ninety per cent of total approved project costs.

(a) The percentage the Commonwealth shall pay towards an approved school facilities project shall be determined by the following formula: Base Percentage (A) + Community Income Factor (B1) + Community Property Wealth Factor (B2) + Incentive Percentage (C).

Mathematics Degree Requirement

SECTION 56. Section 38G of chapter 71 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by inserting in line 220 after the words "section forty-one." the following sentence:- Commencing on July 1, 2005, no person shall be eligible for employment as a mathematics teacher in a middle, junior high, or high school, unless he provides to the principal of the school evidence that he holds an undergraduate or graduate degree in mathematics from an accredited college or university.

---

Executive Office for Administration and Finance
Fiscal Affairs Division
State House, Room 272
Boston, MA 02133
(617) 727-2081


Last updated on January 26, 2000

Privacy Policy