Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. For purposes of this act the following terms shall, unless the context clearly requires otherwise, have the following meanings:-

(a) "Bonds", any bonds, loans, notes, temporary loans, certificates of indebtedness of the city issued or incurred under section two.

(b) "City", the city of Boston.

(c) "City of Boston Bond and Minibond Procedure Act of 1983", chapter six hundred and forty-three of the acts of nineteen hundred and eighty-three.

(d) "Department", the department of health and hospitals of the city, established by chapter six hundred and fifty-six of the acts of nineteen hundred and sixty-five, the operations of which include the general care and control of the Hospital, Long Island Chronic Disease Hospital, Mattapan Chronic Disease Hospital, affiliated neighborhood health care centers and all other public health facilities of the city.

(e) "Hospital", the public acute care community facility known as Boston City Hospital.

(f) "Pledged Revenue Account", any account established under the authority of subsection (c) of section four.

(g) "Project", the demolition of all or a portion of the current facilities of the hospital, the construction and original equipping and furnishing of a structure as a replacement for all or a portion of the current facilities, and the renovations and additions to all or a portion of the current facilities including equipment and furnishings, the costs of all of which are as described in section six.

(h) "Revenue", revenue, receipts and other moneys of the city received from or on account of the exercise of its powers and all rights to receive the same, including without limitation, (1) revenue as defined in section one of chapter forty-four of the General Laws, (2) proceeds of bonds, (3) investment earnings, (4) receipts from any tax, excise or fee theretofore or hereafter imposed by any general or special law all or a part of the receipts from which are payable or distributable to or for the account of the city and (5) receipts, distributions and reimbursements received from the commonwealth under the provisions of chapter fifty-eight of the General Laws and under any other local reimbursement or assistance program described in section twenty-five A of said chapter fifty-eight except such distributions and reimbursements as are required by law to be specifically used for statutorily defined purposes.

(i) "Two-thirds vote", the vote taken by yeas and nays of two-thirds of all members of the city council of the city in every case subject to the approval of the mayor.

SECTION 2. The city is hereby authorized to borrow from time to time such sums as may be necessary and to issue bonds of the city and borrow money in anticipation of such bonds for the purpose of directly and indirectly financing the costs of the project. The bonds shall be issued in such amounts as may be authorized by the city council, with the approval of the mayor, in accordance with the provisions of section two of chapter four hundred and eighty-six of the acts of nineteen hundred and nine, chapter two hundred and six of the acts of eighteen hundred and ninety-one and the City of Boston Bond and Minibond Procedure Act of 1983, except as such provisions may be modified by the provisions of this act. Any bonds issued under authority of this act shall not at any time be included in the debt of the city for the purpose of ascertaining its legal borrowing capacity. Notwithstanding the limitation contained in subsection (a) of section four of the City of Boston Bond and Minibond Procedure Act of 1983, the bonds issued under authority of this act shall be payable within such periods as may be established by the collector-treasurer with the approval of the city auditor and the mayor and the first installment of principal shall be payable at such date as may be established by the collector-treasurer with the approval of the city auditor and the mayor.

SECTION 3. (a) The collector-treasurer, with the approval of the mayor, may elect to have the city issue bonds under authority of this act in any one or more of the following forms; provided that bonds in more than one of the following forms may be simultaneously outstanding:-

(i) pursuant to section eight of the City of Boston Bond and Minibond Procedure Act of 1983, in the discretion of the collector-treasurer, when authorized by one two-thirds vote, as special obligation bonds of the city for which the city's full faith and credit are not pledged;

(ii) notwithstanding the provisions of subsection (b) of section nine of the City of Boston Bond and Minibond Procedure Act of 1983, in the discretion of the collector-treasurer, when authorized by one two-thirds vote, as special obligation bonds pursuant to section eight of the City of Boston Bond and Minibond Procedure Act of 1983, with an additional assignment or pledge of other revenues of the city;

(iii) notwithstanding certain limitations contained in section eight of the City of Boston Bond and Minibond Procedure Act of 1983, in the discretion of the collector-treasurer, when authorized by one two-thirds vote, as special obligation bonds pursuant to said section eight payable solely from certain revenues of the city which are not pledged for their payment;

(iv) in the discretion of the collector-treasurer, when authorized by one two-thirds vote, as special obligation bonds pursuant to section eight of the City of Boston Bond and Minibond Procedure Act of 1983 or clause (ii) hereinabove, and further secured by a mortgage of certain real and personal property as provided in subsection (a) of section four;

(v) in the discretion of the collector-treasurer, when authorized by one two-thirds vote, as special obligation non-recourse bonds which shall not constitute a debt or pledge of the city's full faith and credit but shall be payable solely from the income or revenues received under certain financing documents; and

(vi) such other forms as may be authorized by law, including, without limitation, general obligation bonds of the city for which the city's full faith and credit are pledged.

(b) Bonds may be issued under authority of this act without obtaining the consent of any department, division, commission, board, bureau or agency of the commonwealth or any political subdivision thereof, and without any other proceedings or the happening of any condition or event other than those proceedings, conditions or events which are specifically required therefor by this act or the City of Boston Bond and Minibond Procedure Act of 1983, and the validity of and security for any bonds issued by the city pursuant to this act shall not be affected by the existence or nonexistence of any such consent or other proceedings, conditions or events.

SECTION 4. (a) The city may grant a mortgage on, or assign its interest in, all or a portion of the land, building, fixtures, furnishings, equipment and all other real and personal property used, in whole or in part, by or in connection with the operations of the department to secure any bonds issued under authority of this act. The real property on all or a portion of which the city may grant a mortgage under authority of this section shall include, but not be limited to, those certain parcels of land, including any buildings and improvements located thereon, bounded on its northeasterly side by East Concord street, on its northwesterly side by Harrison avenue, on its southwesterly side by Massachusetts avenue and on its southeasterly side by Albany street, and those certain parcels of land, including any buildings and improvements located thereon, bounded on its northeasterly side by Massachusetts avenue, on its northwesterly side by Harrison avenue, on its southwesterly side by Northampton street and on its southeasterly side by Albany street, and those certain parcels of land, including any buildings and improvements located thereon, bounded on its northeasterly side by certain property owned or controlled by the city or any agency or authority thereof, on its northwesterly side by Albany street, on its southwesterly side by Massachusetts avenue and on its southeasterly side by a state highway, and those certain additional parcels of land, including any buildings and improvements located thereon, which the city has or may acquire or obtain an interest in for use by or in connection with the operations of the department.

The present uses of the real property described in this section include use as public acute care hospitals, neighborhood health centers and public health facilities.

(b) The mortgage and assignments authorized under this section may contain such provisions for protecting and enforcing the rights, security and remedies of the mortgagee and its assignees as may, in the discretion of the collector-treasurer, with the approval of the mayor, be reasonable and proper, including, without limitation, provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities of any bonds, possession of the mortgaged property by the mortgagee or its assignee and a sale upon foreclosure of the mortgaged property by the mortgagee or its assignee for use other than for its current public uses, and such other provisions and covenants as are customarily required in similar security instruments.

(c) Any bonds issued under authority of this act or any security granted to secure any bonds issued under authority of this act may be secured, in whole or in part, without limitation, by bond insurance issued by commercial insurers or by any agency or department of the commonwealth or of the federal government, and the city may execute and deliver a regulatory agreement and building loan agreement and may enter into such other documents and agreements as the collector-treasurer, with the approval of the mayor, may deem necessary or desirable in connection with such insurance, including, without limitation, agreements containing covenants setting forth the duties of, and limitations on, the hospital and the city in relation to the custody, safeguarding, investment and application of moneys, the issue of additional or refunding bonds, the fixing, revision and collection of fees and charges, the use of any surplus bond proceeds, the establishment of reserves, and the making and amending of contracts relating to the department, and agreements governing the establishment of a pledged revenue account and the segregation therein and application therefrom of some or all of the revenues and investment earnings thereon which are pledged as security for, or are to be used to make payments on, any bonds.

SECTION 5. Any debt service fund, construction fund, or reserve fund established under an agreement entered into by the city in accordance with section nine of the City of Boston Bond and Minibond Procedure Act of 1983 in connection with the issuance of bonds under this act, shall be kept separate from the general fund of the city and from the general operating funds of the department. The moneys deposited in any such funds, together with income derived from investments held as part of such funds shall be expended without further authorization or appropriation as provided for in the agreement establishing such funds.

SECTION 6. In addition to other lawful items, the project costs to be financed by the issue of bonds under this act may include: interest for a period of up to twelve months after the date, as determined or estimated by the city auditor, of the commencing of regular use of the new structure by the hospital; the cost of architectural, engineering, financial and legal services, plans, specifications, studies of cost and of revenues; administrative expenses related to the project; expenses as may be necessary or incident to determining the feasibility or practicability of the project or to reviewing the impact of the project on the city and on the city's general financial condition; capital equipment purchased within one year of the date, as determined or estimated by the city auditor, of commencing regular use of the new structure by the hospital; and such other expenses incurred by the city as may be necessary or incident to the project, the financing of the project, including, without limitation, any reserve funds described in section five of this act, and the placing of the project in operation.

SECTION 7. (a) In the event of the establishment of a pledged revenue account pursuant to subsection (c) of section four and to the extent allowable by the agreement establishing such pledged revenue account, the collector-treasurer, upon written notification of the city auditor and without further authorization, may advance funds from the general fund of the city in any fiscal year of the city in anticipation of the receipt of revenues required to be deposited in such pledged revenue account. All such sums so advanced shall be deposited into the pledged revenue account and, to the extent required by the agreement establishing such pledged revenue account, prior to the end of each fiscal year of the city, such advances shall be repaid from such account to the general fund together with an amount equal to the interest as determined by the collector-treasurer to be allocable to any debt incurred during said fiscal year by the city in anticipation of revenue in order to make such advances.

(b) In the event of the establishment of a pledged revenue account pursuant to subsection (c) of section four and to the extent allowable by the agreement establishing such revenue account, the collector-treasurer, upon written notification of the city auditor and without further authorization, may borrow funds from the pledged revenue account in anticipation of the receipt of revenues of the city. All such sums so borrowed shall be deposited into the general fund of the city and, to the extent required by the agreement establishing such pledged revenue account, prior to the end of each fiscal year of the city, the collector-treasurer shall repay the sums so borrowed with an amount equal to the interest as determined by the collector-treasurer that would have been earned on such sums if they had remained in the pledged revenue account; which obligation to repay such sums shall constitute a general obligation of the city for which its full faith and credit are pledged and for which all taxable property in the city shall be subject to ad valorem taxation with limit as to rate or amount except as otherwise provided by law.

SECTION 8. Notwithstanding any provisions of law to the contrary, including provisions of ordinances of the city, to the extent any such provisions of law are inconsistent with the regulations, requirements and standards governing the mortgage insurance described in subsection (c) of section four, the demolition, design, renovation and construction activities in connection with the project shall be under the exclusive control of the mayor.

SECTION 9. Notwithstanding any provisions of law to the contrary, the collector-treasurer is hereby authorized, without further authorization or appropriation, to make or authorize to be made such payments to the federal government or any agency or department thereof as may be required by the federal tax law in order to ensure the exemption from federal taxation of interest on any bonds issued under authority of this act or on any other bonds of the city.

SECTION 10. This act shall be deemed to constitute a bond act within the meaning and under the provisions of the City of Boston Bond and Minibond Procedure Act of 1983. The provisions of this act shall be deemed to provide an additional and alternative method for the effectuation of the purposes of this act and shall be construed to be supplemental to, and not in derogation of, powers otherwise conferred by law on the city; provided, however, that insofar as the provisions of this act are inconsistent with the provisions of any general or special law, administrative order or regulation or any limitation imposed by the city charter, the provisions of this act shall be controlling. This act shall be interpreted liberally to effect the purposes set forth therein in this act.

SECTION 11. The provisions of this act are severable, and if any provision hereof shall be held invalid in any circumstances, such invalidity shall not affect any other provisions or circumstances. This act shall be construed in all respects so as to meet all constitutional requirements. In carrying out the purposes and provisions of this act, all steps shall be taken which are necessary to meet constitutional requirements.

SECTION 12. This act shall take effect upon its passage.