SECTION 1.  Section 8C of chapter 6A of the General Laws, inserted by chapter 233 of the acts of 2008, is hereby amended by striking out, in the first paragraph, the words “the commissioner of highways,” and inserting in place thereof the following words:- the administrator of the division of roads and bridges of the Massachusetts Surface Transportation Authority.

SECTION 2.  Chapter 6A of the General Laws, as amended by chapter 86 of the acts of 2008, is hereby amended by striking out sections 19 and 19A and inserting in place thereof the following 3 sections:-

Section 19. (a) The executive office of transportation shall serve as the principal agency of the executive department for the following purposes: (1) developing, coordinating, administering and managing transportation policies, planning and programs related to design, construction and maintenance; (2) supervising and managing the organization and conduct of the business affairs of the departments, agencies, commissions, offices, boards, divisions, and other entities within the executive office to improve administrative efficiency and program effectiveness and to preserve fiscal resources; (3) developing and implementing effective policies and programs to assure the coordination and quality of roadway, transit, airport and port infrastructure and security provided by the secretary and all of the departments, agencies, commissions, offices, boards, divisions, authorities and other entities within the executive office.

(b) The following state agencies shall be within the executive office of transportation: the government center commission established by section 1 of chapter 635 of the acts of 1960, the registry of motor vehicles and all other state agencies within the department, except the division of motorboats and the division of waterways; and the Massachusetts aeronautics commission. The Massachusetts Surface Transportation Authority, Massachusetts Bay Transportation Authority, the Massachusetts Port Authority, the Massachusetts Turnpike Authority and any duly established regional transportation authority shall also be within the executive office of transportation.

(c) The governor shall appoint a secretary of transportation, who shall serve at the pleasure of the governor and shall act as the executive officer in all matters pertaining to the administration, management, operation, regulation, planning, fiscal and policy development functions and affairs of the departments, agencies, commissions, offices, boards, divisions, and other agencies within the executive office.

(d) The secretary may: (1) operate and administer the programs of roadway design, capital improvement, development, and planning through the other agencies within the executive office, as appropriate; (2) coordinate and supervise the administration of the executive office and its agencies to promote economy and efficiency and to leverage federal funding; (3) develop and administer a long-term state-wide transportation plan for the commonwealth, as provided for in section (f); (4) develop, based on a public hearing process, procedures to be used for transportation project selection; (5) establish criteria for project selection to be used in the procedures developed pursuant to clause (4); (6) enter into agreements with commissions, offices, boards, divisions, authorities and other entities within the executive office to improve departments, agencies, administrative efficiency and program effectiveness and to preserve fiscal resources; (7) pursuant to chapter 30A, make, amend and repeal rules and regulations for the management and administration of the executive office and agencies within the executive office; (8) execute all instruments necessary for carrying out the business of the executive office and its agencies; (9) acquire, own, hold, dispose of, lease and encumber property in the name of the executive office and its agencies; (10) enter into agreements and transactions with federal, state and municipal agencies and other public institutions and private individuals, partnerships, firms, corporations, associations and other entities on behalf of the executive office or its agencies; (11) apply for and accept funds, including grants, on behalf of the commonwealth in accordance with applicable law; (12) conduct research, surveys, experimentation, evaluation, design and development, in cooperation with the Massachusetts Surface Transportation Authority, and other governmental agencies and private organizations when appropriate, with regard to mass transportation facilities, equipment and services. The secretary may delegate any of the foregoing powers to an officer having charge of a department, office, division or other administrative unit within the executive office.

(e) In exercising its powers under this section, the executive office shall have as a primary goal the reduction of greenhouse gas emissions, particulates and other pollutants.  The secretary shall collaborate with the executive office of environmental affairs, the bureau for environmental health within the department of public health and other state or federal agencies to reduce greenhouse gas emissions to the limits established in chapter 21N.

(f)  (1) Every five calendar years, starting no later than April 30, 2010, the secretary of the executive office of transportation shall, after conducting public hearings, prepare and publish in the Massachusetts Register a comprehensive state transportation plan for the five succeeding fiscal years, beginning with the period fiscal year 2011 to 2015, inclusive. The plan shall be consistent with such priorities as may be established by legislation. Said plan shall be designed to ensure construction and maintenance of a safe, sound and efficient public highway, road and bridge system, to relieve congestion, to reduce greenhouse gas emissions, particulates and other pollutants, and to improve the quality of life in the commonwealth by promoting economic development and employment in the commonwealth by meeting, cost effectively, the diverse transportation needs of all residents of the commonwealth, including urban, suburban and rural populations. Said plan shall also include an engineering assessment to anticipate highway, road and bridge needs throughout the commonwealth as determined by objective engineering measurements of condition, safety and service. The secretary shall consult with the executive offices of environmental affairs and of economic affairs in the development of said plan.

Said plan shall provide for meeting not less than 5 percent annually of the estimated construction, reconstruction and repair needs of the public highways and bridges of the commonwealth, its counties, cities and towns, estimated as follows. Before the secretary publishes or updates said plan, the Massachusetts Surface Transportation Authority shall determine and certify to the secretary its estimate of the total value of all construction, reconstruction and repair needs of the commonwealth’s highway and bridge infrastructure. The total value estimate shall be based on satisfying current safety and maintenance standards of the Federal Highway Administration and the American Association of State Highway and Transportation Officials. The estimate shall be substantiated by documented objective engineering estimates which shall be made available for public review.

The executive office and the Massachusetts Surface Transportation Authority shall report annually not later than February 1 to the house and senate committees on ways and means and the joint committee on transportation of the general court on their compliance with the plan and their efforts to satisfy the 5 percent requirement of the preceding paragraph.

(2) The executive office shall establish a program for mass transportation consistent with the provisions of this chapter. The program for mass transportation and any revisions thereto shall be submitted for comment and recommendation to the Mass Transit Advisory board not less than sixty days prior to the adoption thereof.  The executive office shall prepare a written response to reports submitted to it by the advisory board which response shall state the basis for any substantial divergence between the actions of the executive office and the recommendations contained in such reports of the advisory board. Said program shall be reviewed not less than every five years to evaluate the achievement of its aims and to re-evaluate its conformity with the provisions of this chapter.

Said program for mass transportation and any plans specified therein shall be implemented by the mass transportation capital investment program, including a rolling five-year plan. The capital investment program and plans of the executive office shall be based on an evaluation of the impact of each proposed capital investment on the effectiveness of the commonwealth’s transportation system, service quality standards, the environment, health and safety, operating costs, the prevention or avoidance of deferred maintenance, and debt service costs. Capital investments that result in the greatest benefits with the least cost, transit commitments made in connection with the central artery project, so-called, capital improvements required under the Americans with disabilities act, and capital expenditures for an ongoing schedule of maintaining the equipment and mass transportation facilities of the Massachusetts Bay Transportation Authority, or any successor agency shall receive the highest priority under said capital investment program and plans.

Said ongoing schedule of maintenance shall be designed to prevent the deferral of routine and scheduled maintenance, and shall be undertaken prior to investing in new facilities or service expansion, unless the latter required by law or can be demonstrated to be cost-effective, environmentally beneficial or produce quantifiable savings.

The capital investment program shall be prepared on an annual basis, under the direction, control and supervision of the executive office. The program, including plans for each project funded therein, shall be available for public inspection and submitted to the authority, the joint committee on transportation and the senate and house committees on ways and means not later than 60 days prior to the start of the fiscal year.

Said program for mass transportation, the capital investment program and the plans for each such project funded therein shall be developed in conjunction with other transportation programs and plans proposed by the executive office, including any plans of regional transit authorities established pursuant to chapter 161B. Said programs shall be further developed in consultation and cooperation with the division of public transit, and in consultation with the department of housing and community development, the metropolitan area planning council, the executive office of environmental affairs, and such other agencies of the commonwealth or of the federal government as may be concerned with said program and plans.

The plans for each project included in the capital investment program shall identify the purpose and intended benefits of each project, the total budget and timeline necessary to complete each project, the amount of said total which is budgeted for each project in the next fiscal year, the operating costs and savings, if any, anticipated to be incorporated in the operating budget of the authority upon completion of each project, the proposed operating costs and costs of routine and scheduled maintenance associated with each project upon its completion, and the expected useful life of each project.

The capital investment program shall be based on a rolling five-year plan, updated annually, that establishes the priorities and cashflow needs of the capital borrowing program of the authority. The five year plan shall be accompanied by a timeline for the implementation of the projects and priorities established therein and comprehensive financial estimates of the capital and operating costs and revenues associated with each project established by the plan.

The executive office shall conduct a series of public meetings within 30 days of issuance of an initial draft of the capital investment program and shall submit a final capital investment program to the Mass Transit advisory board, for its review, no later than January 15 of each year.

The authority shall be responsible for the architectural, engineering design, and the construction of mass transportation facilities and for the operation thereof.

(3)  The secretary, in consultation with the authority, shall promulgate such rules, regulations and procedures, including public hearings, as are necessary and appropriate to provide the following parties the timely opportunity to participate in the development of major transportation projects, as defined by the secretary, and to review and comment thereon: (i) state, regional and local agencies and authorities affected by said projects; (ii) elected officials and riders or potential riders from cities and towns affected by said projects; (iii) other public and private organizations, groups and persons who are affected by, and who have provided the secretary with reasonable notice of their desire to participate in the development of the design of said projects. In this section, the words “timely opportunity” shall mean sufficiently early in the design process so as to permit comments to be considered prior to the final development of or commitment to any specific design for such project.

(4) Prior to the final approval of any transportation infrastructure project, including mass transit expansion or the construction of new roadways with a projected capital cost of more than $25,000,000, or the expending of any funds for the planning, design and construction of such projects, the Secretary of Transportation shall request that the administrator of the appropriate Division of the Massachusetts Surface Transportation Authority, in consultation with the Chief Executive Officer of the Authority,  prepare a fiscal analysis, including life cycle costs,  demonstrating that sufficient revenues exist, or will be generated to operate and maintain in a state of good repair such a new transportation asset.  This analysis shall be also be submitted to the advisory boards of the respective divisions of the Massachusetts Surface Transportation Authority. 

If any such project for the expansion of mass transit has a projected total cost in excess of $200,000,000, the Secretary of Transportation shall submit the analysis to the Secretary of Administration and Finance so that he may determine which costs, if any, will become part of the Commonwealth’s plan of capital expenditures.  

(g) Nothing in this chapter shall be construed to confer any powers or impose any duties upon the secretary with respect to the foregoing agencies and authorities except as expressly provided by law.

Section 19A.  (a)  The executive office shall take such steps as may be necessary to provide for the development, promotion, preservation, and improvement of an adequate, safe, efficient and convenient rail system for the movement of passengers and freight in the commonwealth. In carrying out the purposes of this chapter, the executive office shall seek to encourage and develop rail services which promote and maintain the economic wellbeing of the citizens of the commonwealth, and which preserve the environment and the commonwealth’s natural resources.

(b) The executive office or the Massachusetts Surface Transportation Authority acting pursuant to paragraph (6) of subsection (d) is hereby authorized and directed to expend such funds as may be appropriated or otherwise made available for the acquisition, construction, preservation, rehabilitation, reconstruction, or other improvement, whether directly, jointly or under contract with other public or private parties, of land, and rail rights-of-way and related facilities or equipment, including but not limited to spurs, sidings and bridges, and for such other purposes, including, without limitation, planning, engineering and administrative purposes, as are incidental thereto; provided that any preservation, rehabilitation, reconstruction, or other improvement of land or of a rail right-of-way and related facilities or equipment shall not be authorized prior to the acquisition of said land, right-of-way and related facilities or equipment.

Subject to any other applicable provisions of law regarding the disposition and use of state property, the executive office may, in the course of exercising its responsibilities of property management of state-owned railroad rights-of-way pursuant to this chapter: (a) set fees for the processing of applications to lease, license, or otherwise use said property; and (b) charge rent for same. Said fees shall be based on the administrative costs necessary to process said applications. Said rents shall be calculated as required under other applicable requirements of state law. Receipts from said applications and rents shall be paid into the treasury of the commonwealth and may be expended, subject to appropriation, for the purpose of property management and maintenance on railroad properties owned by the executive office on behalf of the commonwealth.

(c) The executive office or the Massachusetts Surface Transportation Authority acting pursuant to paragraph (6) of subsection (d) may enter into contracts or agreements to provide financial assistance, from such funds as may be provided for the purpose, for all or part of the costs of maintaining rail rights-of-way or related facilities or equipment, or operating rail services in the commonwealth.

Any such contracts or agreements shall be subject to the following limitations: (i) in determining whether such assistance is necessary or appropriate under this chapter with respect to an operating agreement with a private transportation company, and in determining the terms and conditions under which such assistance shall be given, the secretary shall review the transportation operations of such company and its affiliates and shall make a finding that such assistance will not permit the applicant company to make more than a reasonable return overall; and (ii) any such assistance shall cover only those services which the secretary determines to be in the public interest.

(d) The secretary, in addition to any other powers and duties conferred or imposed upon him by this chapter or any other general or special law, shall have the following powers and duties:

(1) To serve as the principal source of rail transportation planning for the commonwealth. In doing so, the secretary may conduct research, surveys, demonstration projects or studies in cooperation with federal, state, regional or local agencies, or appropriate private parties; and shall be responsible for the preparation of continuing, comprehensive and coordinated rail transportation proposals, plans, programs and projects. The secretary shall submit said proposals, plans, programs and projects for such review or consideration by other governmental agencies as may be required by law or deemed appropriate by the secretary; and shall prepare such plans and programs in coordination with related land use and other development plans, so far as practicable.

(2) To apply for, accept and expend on behalf of the commonwealth, any gift, loan or grant-in-aid from the federal government, any agency or instrumentality thereof, or from any foundation, private corporation, group or person, in furtherance of the purposes of this chapter. The secretary is authorized and directed to take all necessary action to secure any federal assistance which is or may become available to the executive office, any administrative unit thereof or authority within the executive office, including without limitation, filing applications for assistance, supervising the expenditure of federal grants or loans and making any determinations and certifications necessary or appropriate to the foregoing. If any federal law, administrative regulation or practice requires any action relating to such federal assistance to be taken by any department, agency or other instrumentality of the commonwealth other than the executive office, such other department, agency or instrumentality is authorized and directed to take all such action. It is the intent of this clause that the provisions of any federal law, administrative regulation or practice governing federal assistance shall, to the extent necessary to enable the commonwealth or its subdivisions to receive such assistance and not constitutionally prohibited, override any inconsistent provisions of this chapter or any general or special law.

(3) To make and enter into any contracts or agreements necessary or incidental to the performance and execution of the powers and duties of the executive office under this chapter or any general or special law. Any party, public or private including, without limitation, federal, state and local agencies, authorities or political subdivisions of the commonwealth, or private corporations or companies, is hereby granted the power and authority to enter into any such contracts or agreements, subject to such provisions of law as may be applicable. Any such contract or agreement, if made with the Massachusetts Surface Transportation Authority may include provisions for the transfer to said Authority of appropriations or other funds made available to the executive office under subsections (b) and (c) for the purpose of carrying out such contract or agreement. Any contract or agreement made under this chapter, including, without limitation, contracts or agreements entered into by the executive office of administration and finance pursuant to subsection (c), shall include such provisions, terms or conditions as the secretary may deem necessary or appropriate.

(4) To acquire by eminent domain under chapter seventy-nine, or by purchase, gift, devise, transfer, lease or otherwise, or to hold, lease, pledge, otherwise deal with, transfer, sell or dispose of real and personal property.

(5) To exercise all powers and do all acts or things necessary or convenient to carry out the purposes of this section.

(6) Without limitation of the foregoing, to delegate to the Massachusetts Surface Transportation Authority on such terms and conditions as the secretary may prescribe, any power or duty conferred or imposed upon him by this section; provided, that any such delegation shall be in writing.

(e) (i) To the extent not inconsistent with federal law, no railroad company which conducts or has conducted operations within the commonwealth shall sell, transfer or otherwise dispose of railroad rights-of-way or related facilities without first offering such rights-of-way or facilities for sale, transfer or disposition to either the executive office, acting on behalf of the commonwealth, or such other department, authority, agency, or political subdivision of the commonwealth as may be designated by the executive office for the purpose of any such sale, transfer or disposition; provided, that such sale, transfer or disposition may be made by the railroad company to a party other than the executive office or its designee, but only if (A) the executive office or its designee has notified the railroad company in writing of its rejection of such offer; or (B) ninety calendar days have elapsed from the date on which said offer or a copy of such offer, as provided in the second paragraph, is made to the executive office.

(ii) Said railroad company shall make such offer in writing and shall send such offer by certified mail to the executive office or to its designee. In the event that such offer is made to a designee of the executive office, a notarized copy of such offer shall be sent by certified mail to the executive office. Any such offer shall include the price at which said company proposes to offer such rights-of-way or facilities to the commonwealth, and such other terms or conditions which said company proposed to include as part of such sale, transfer or disposition. The executive office or its designee shall notify in writing and by certified mail said railroad company of its acceptance or rejection of such offer within ninety calendar days of such offer, and in the event that the designee of the executive office sends such notice, said designee shall also send a notarized copy of such notice to the executive office. The executive office is hereby authorized to notify any person that the conditions provided in clauses (A) and (B) of paragraph (i) have been satisfied and that the commonwealth no longer has the option to acquire the rights-of-way or facilities as provided in said paragraph. Any such notice shall be binding on the commonwealth.

In no event shall said railroad company offer to sell, transfer, or otherwise dispose of railroad rights-of-way or facilities to any person on terms or conditions more favorable to said person than those offered to the commonwealth.

Section 19B.  The secretary shall apply for, accept and expend, subject to appropriation, on behalf of the commonwealth, any gift, loan or grant-in-aid from the federal government, or any agency or instrumentality thereof for demonstration projects and programs as may become available to the commonwealth for the purpose of energy conservation for improved transportation management systems or for improved transportation management systems.

SECTION 3.  Section 19 of chapter 6A is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) The following state agencies shall be within the executive office of transportation: the government center commission established by section 1 of chapter 635 of the acts of 1960, the registry of motor vehicles and all other state agencies within the department, except the division of motorboats and the division of waterways; and the Massachusetts aeronautics commission. The Massachusetts Surface Transportation Authority, Massachusetts Bay Transportation Authority, the Massachusetts Port Authority and any duly established regional transportation authority shall also be within the executive office of transportation.

SECTION 4.  Section 19 of chapter 6A is hereby amended by striking out paragraph (b) and inserting in place thereof the following paragraph:-

(b) The following state agencies shall be within the executive office of transportation: the government center commission established by section 1 of chapter 635 of the acts of 1960, the registry of motor vehicles and all other state agencies within the department, except the division of motorboats and the division of waterways; and the Massachusetts aeronautics commission. The Massachusetts Surface Transportation Authority, the Massachusetts Port Authority and any duly established regional transportation authority shall also be within the executive office of transportation.

SECTION 5.  Chapter 7 of the General Laws is hereby amended by adding the following 14 sections:-

Section 57.  (a) “Affected jurisdiction” means any city or town, or other unit of government within the Commonwealth in which all or part of a transportation facility is located or any other public entity directly affected by the transportation facility.

(b) “Architectural and Engineering Services” means: (1) professional services of an architectural or engineering nature, as defined by applicable state law which are required to be performed or approved by a person licensed, registered, or certified to provide such services as described in this Subsection; (2) professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property;  and (3) such other professional services of an architectural or engineering nature, or incidental services, which members of the architectural and engineering professions (and individuals in their employ) may logically or justifiably perform, including:  studies, investigations, surveying, mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services. 

(c) “Authority” means the Massachusetts Surface Transportation Authority;

(d) “Construction” means the process of building, altering, repairing, improving, or demolishing any Transportation Facility, including any structure, building, or other improvements of any kind to real property.  It does not include the routine operation, routine repair, or routine maintenance of any existing Transportation Facility, including structures, buildings, or real property.

(e) “Force majeure” means an uncontrollable force or natural disaster not within the power of the operator or the Commonwealth.

(f) “Contract” means all types of agreements, including a “Public-Private Agreement”, regardless of what they may be called, for the procurement, operation, or disposal under sections 57 to 70, inclusive, of a Transportation Facility by the Authority.

(g) “Contract Modification” means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.

(h) “Contractor” means any person having a contract with the Authority under sections 57 to 70, inclusive.

(i) “Cooperative Purchasing” means procurement conducted by, or on behalf of, one or more Affected Jurisdictions.

(j) “Design-build-finance-operate-maintain” means a project delivery method in which the Authority enters into a single contract for design, construction, finance, maintenance, and operation of a Transportation Facility over a contractually defined period.  No public funds are appropriated to pay for any part of the services provided by the Contractor during the contract period. 

(k) “Design-build-operate-maintain” means a project delivery method in which the Authority enters into a single contract for design, construction, maintenance, and operation of a Transportation Facility over a contractually defined period.  All or a portion of the funds required to pay for the services provided by the Contractor during the contract period are either appropriated by the Commonwealth or by the Authority prior to award of the contract or secured by the Commonwealth or by the Authority through fare, toll, or user charges.

(l) “Design requirements” means the written description of the Transportation Facility or service to be procured under sections 57 to 70, inclusive, including:  

(1) required features, functions, characteristics, qualities, and properties that are required by the Authority;

(2) the anticipated schedule, including start, duration, and completion; and

(3) estimated budgets (as applicable to the specific procurement) for design, construction, operation and maintenance. 

The design requirements may, but need not, include drawings and other documents illustrating the scale and relationship of the features, functions, and characteristics of the project.

(m) “Independent Peer Reviewer Services” are additional Architectural and Engineering services provided to the Authority in design-build-operate-maintain or design-build-finance-operate-maintain procurements.  The function of the independent peer reviewer is to confirm that the key elements of the professional engineering and architectural design provided by the contractor are in conformance with the applicable standard of care.

(n) “Maintenance” includes routine operation, routine maintenance, routine repair, rehabilitation, capital maintenance, maintenance replacement, and any other categories of maintenance that may be designated by the Authority.

(o) “Material default” means any failure of a Contractor to perform any duties under a public-private agreement, which jeopardizes delivery of adequate service to the public and remains unsatisfied after a reasonable period of time and after the operator has received written notice from the Authority of the failure.

(p) “Operate” means any action to operate, maintain, repair, rehabilitate, improve, equip, or modify a Transportation Facility, including the design and construction of repairs, improvements, or modifications to a Transportation Facility.

(q) “Operator” means a private entity that has entered into a public-private agreement to provide Design-build-finance-operate-maintain or Design-build-operate-maintain services under sections 57 to 70, inclusive.

(r) “Private entity” means any natural person, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, non-profit entity, or other business entity.

(s) “Proposal development documents” means drawings and other design related documents that are sufficient to fix and describe the size and character of a Transportation Facility as to architectural, structural, mechanical and electrical systems, materials, and such other elements as may be appropriate to the applicable project delivery method.

(t) “Public-private agreement” means the Contract between a private entity and the Authority that relates to the development, financing, maintenance, or operation of a transportation facility subject to sections 57 to 70, inclusive.

(u) “Request for Proposals” means all documents, whether attached or incorporated by reference, utilized for soliciting proposals for Transportation Facilities under sections 57 to 70, inclusive.

(v) “Responsible Bidder or Offeror” means a person who has the capability in all respects to perform fully the Contract requirements, and the integrity and reliability which will assure good faith performance.

(w) “Responsive Bidder” means a person who has submitted a bid which conforms in all material respects to the Invitation for Bids.

(x) “Transportation facility” means any, including new and existing, highway, road, bridge, tunnel, overpass, ferry, airport, public transportation facility, terminal facility, vehicle parking facility, seaport facility, rail facility, intermodal facility, or similar facility open to the public and used for the transportation of persons or goods, and any building; structure; or networks of buildings, structures, pipes, controls, and equipment that provide transportation services, including rolling stock, equipment, and any building, structure, parking area, appurtenances, or other property needed to operate such facility that is subject to a public-private agreement.

(y) “User fees” means the rate, toll, fee, or other charges imposed by an operator or by the Authority for use of all or part of a transportation facility.

(z) “Utility” means a privately, publicly, or cooperatively owned line, facility, or system for producing, transmitting, or distributing communications, cable television, power, electricity, light, heat, gas, oil, crude products, water, steam, waste, storm water not connected with highway drainage, or any other similar commodity, including fire or police signal system or street lighting system, which directly or indirectly serves the public.

Section 58.  (a) Notwithstanding any general or special law to the contrary, the board of directors of the Massachusetts surface transportation authority, in conjunction with the special public-private partnership infrastructure oversight commission as established in section 70 , is hereby authorized to solicit proposals, and to enter into contracts for Design-build-finance-operate-maintain or Design-build-operate-maintain services with that responsible and responsive offeror submitting the proposal that is most advantageous to the Authority through the sale, lease, operation and maintenance of a transportation facility within the commonwealth, such operation to be in full compliance with all applicable requirements of federal, state and local law; provided, however, that any such contract shall not be subject to the competitive bid requirements set forth in sections 38A½ to 38O, inclusive, and section 39M of chapter 30 or sections 44A to 44M, inclusive, of chapter 149 of the General Laws; and provided, further, that each such contract shall be awarded pursuant to the provisions of chapter 30B of the General Laws, expect for clause (3) of paragraph (b) of section 6, paragraphs (e) and (g) of said section 6, clause (4) of section 13 and section 16 of said chapter 30B. 

(b) In soliciting and selecting a private entity with which to enter into a public-private agreement for Design-build-finance-operate-maintain or Design-build-operate-maintain services, the Authority shall utilize the following competitive sealed proposals procurement approach:

(1) Each Request for Proposals for design-build-operate-maintain and design-build-finance-operate-maintain services:

(A) shall include design requirements;

(B) shall solicit proposal development documents; and

(C) may, when the Authority determines that the cost of preparing proposals is high in view of the size, estimated price, and complexity of the procurement:

(i) prequalify offerors by issuing a Request for Qualifications in advance of the Request for Proposals; and

(ii) select a short list of responsible offerors prior to discussions and evaluations, provided that the number of proposals that will be short-listed is stated in the Request for Proposals and prompt public notice is given to all offerors as to which proposals have been short-listed; or

(iii) pay stipends to unsuccessful offerors, provided that the amount of such stipends and the terms under which stipends will be paid are stated in the Request for Proposals.

(2) Adequate public notice of the Request for Proposals shall be given.

(3) Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation.  A Register of Proposals shall be prepared by the Authority and shall be open for public inspection after contract award.

(4) (a)The Request for Proposals shall state the relative importance of price and other factors and subfactors, if any.

(b) Each Request for Proposals for design-build-operate-maintain and design-build-finance-operate-maintain:

(i) shall state the relative importance of (1) demonstrated compliance with the design requirements, (2) offeror qualifications, (3) financial capacity, (4) project schedule, (5) elimination of existing public debt with respect to the Transportation Facility, (6) lowest user charges (or price) over the term of the design-build-operate-maintain and design-build-finance-operate-maintain Contract, and (7) other factors, if any; and

(ii) shall require each offeror, when the contract price is estimated to exceed $10,000,000, when the contract period of operations and maintenance is five years or longer, or in circumstances established by the Authority, to identify an Independent Peer Reviewer whose competence and qualifications to provide such services shall be an additional evaluation factor in the award of the contract.

(iii) For procurement using design-build-operate-maintain, and design-build-finance-operate-maintain, the amount, if any, paid by a contractor to the Authority shall not be an evaluation factor in the award of the contract.

(5) As provided in the Request for Proposals, and under regulations issued by the Authority, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements.  Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(6) Award shall be made to the responsible offeror whose proposal conforms to the solicitation and is determined in writing to be the most advantageous to the Acquiring Agency taking into consideration price and the evaluation factors set forth in the Request for Proposals.  No other factors or criteria shall be used in the evaluation.  The contract file shall contain the basis on which the award is made.  Written notice of the award of a contract to the successful offeror shall be promptly given to all offerors.

(7) The Authority is authorized to provide debriefings that furnish the basis for the source selection decision and contract award.

(c) (1) A private entity may request a review, prior to submission of a solicited proposal, by the Authority of information that the private entity has identified a confidential or proprietary to determine whether such information will be subject to disclosure under chapter 66  of the General Laws.

(2) The Authority shall take appropriate action to protect confidential or proprietary information that a private entity provides as part of a solicited proposal and that is exempt from disclosure under chapter 66 of the General Laws.

Section 59. The Request for Proposals shall contain the proposed form of Contract or Public-Private Agreement to be executed between the successful Offeror and the Authority upon Award, and shall have been approved as to content and form by the Special Public-Private Infrastructure Oversight Commission and by the Authority before the Request for Proposals is issued, pursuant to section 58 .  The Inspector General and the Attorney General shall have thirty (30) days from the receipt of a draft of the proposed form of Contract to notify the Special Public-Private Infrastructure Oversight Commission in writing of any material objections to the draft form of Contract. Before issuing any Request for Proposal, the Authority shall prepare a written response to reports submitted to it by the Special Public-Private Infrastructure Oversight Commission which response shall state the basis for any substantial divergence between the actions of the Authority and the recommendations contained in such reports of said commission.  The Authority and the successful Offeror may only make non-material changes in the content and form of the Public-Private Agreement contained in the Request for Proposals.

(a) (1) After selecting a solicited or unsolicited proposal for a public-private initiative, the Authority shall enter into the Public-Private Agreement for the subject transportation facility with the selected private entity.

(2) An affected jurisdiction may be a party to a public-private agreement entered into by the Authority and a selected private entity or combination of private entities.

(b) A public-private agreement under sections 57 to 70, inclusive, shall provide for the following:

(1) the planning, acquisition, financing, development, design, construction, reconstruction, replacement, improvement, maintenance, management, repair, leasing, or operation of a transportation facility;

(2) the term of the public-private agreement, which shall not exceed fifty (50) years without written approval of the governor;

(3) the type of property interest, if any, the private entity will have in the transportation facility;

(4) a description of the actions the Authority may take to ensure proper maintenance of the transportation facility;

(5) whether user fees will be collected on the transportation facility and the basis by which such user fees shall be determined and modified;

(6) compliance with applicable Federal, State, and local laws;

(7) grounds for termination of the public-private agreement by the Authority or operator;

(8) procedures for amendment of the agreement by mutual agreement, and for changes in the agreement by written order from the Authority.

(9) review and approval by the Authority of the operator’s plans for the development and operation of the transportation facility;

(10) inspection by the Authority and the Independent Peer Reviewer of the design and construction of or improvements to the transportation facility;

(11) maintenance by the operator of a policy of liability insurance or self-insurance reasonably acceptable to the Authority;

(12) filing by the operator, on a periodic basis, of appropriate financial statements in a form acceptable to the Authority;

(13) filing by the operator, on a periodic basis, of traffic reports, service quality standards as defined in section 3 of chapter 81D, ridership reports, on time performance reports, or other reports identified by the Authority, in a form acceptable to the Authority;

(14) financing obligations of the operator and the Authority;

(15) apportionment of expenses between the operator and the Authority;

(16) the rights and duties of the operator, the Authority, and other State and local governmental entities with respect to use of the transportation facility;

(17) the rights and remedies available in the event of default or delay;

(18) the terms and conditions of indemnification of the operator by the Authority, as required by applicable law;

(19) assignment, subcontracting, or other delegation of responsibilities of the operator or the Authority under the agreement to third parties, including other private entities and other State agencies;

(20) sale or lease to the operator of private property related to the transportation facility;

(21) if and how the parties will share costs of development of the project;

(22) if and how the parties will allocate financial responsibility for cost overruns;

(23) liability for nonperformance;

(24) any incentives for performance;

(25) any accounting and auditing standards to be used to evaluate progress on the project;

(26) traffic enforcement and other policing issues, subject to section 66  including any reimbursement by the private entity for such services; and

(27) other terms and conditions.

Section 60.   Upon the end of the term of the Public-Private Agreement or in the event of termination of the public-private agreement, the authority and duties of the operator cease, except for any duties and obligations that extend beyond the termination as provided in the public-private agreement, and the transportation facility reverts to the Authority and shall be dedicated to the Authority for public use.

Section 61. (a) Upon the occurrence and during the continuation of material default by an operator not caused by an event of force majeure, and upon the failure by the Contractor or its financing institutions on the Contractor’s behalf, to cure such material default within thirty (30) days of written notice from the Authority, the Authority may:

(1) elect to take over the transportation facility, including the succession of all right, title, and interest in the transportation facility; and

(2) terminate the public-private agreement and exercise any other rights and remedies that may be available.

(b) In the event that the Authority elects to take over a transportation facility under subsection (a), the Authority:

(1) shall make interim payments, on behalf of the Contractor and for the Contractor’s account, of any amounts subject to the mechanics lien laws of the Commonwealth of Massachusetts ;

(2) may develop and operate the transportation facility, impose user fees for the use of the transportation facility, and comply with any service contracts; and

(3) may solicit proposals for the maintenance and operation of the transportation facility under section 58.

Section 62. (a) (1) The Authority may issue and sell bonds or notes of the Authority for the purpose of providing funds to carry out the provisions of sections 57 to 70, inclusive, with respect to the development, financing, or operation of a transportation facility or the refunding of any bonds or notes, together with any costs associated with the transaction.

(2) Any bond or note issued under this section:

(A) constitutes the corporate obligation of the Authority;

(B) does not constitute the indebtedness of the Commonwealth within the meaning or application of any constitutional provision or limitation; and

(C) is payable solely as to both principal and interest from:

(i) the revenues from a lease to the Authority, if any;

(ii) proceeds of bonds or notes, if any;

(iii) investment earnings on proceeds of bonds or notes; or

(iv) other funds available to the Authority for such purpose.

(b) (1) For the purpose of financing a transportation facility, the Authority and operator may apply for, obtain, issue, and use private activity bonds available under any Federal law or program.

(2) Any bonds debt, other securities, or other financing issued for the purpose of sections 57 to 70, inclusive, shall not be considered to be a debt of the Commonwealth or any political subdivision of the State or a pledge of the faith and credit of the State or any political subdivision of the commonwealth.

(c) Nothing in this section shall limit a local government or any authority of the Commonwealth to issue bonds for transportation projects.

Section 63.  (a) (1) The Authority may accept from the United States or any of its agencies funds that are available to the commonwealth for carrying out sections 57 to 70, inclusive, whether the funds are made available by grant, loan, or other financial assistance.

(2) The Authority may enter into agreements or other arrangements with the United States or any of its agencies as may be necessary for carrying out the purposes of sections 57 to 70, inclusive.

(b) The Authority may accept from any source any grant, donation, gift, or other form of conveyance of land, money, other real or personal property, or other item of value made to the commonwealth or the Authority for carrying out the purpose of sections 57 to 70, inclusive.

(c) Any transportation facility may be financed in whole or in part by contribution of any funds or property made by any private entity or affected jurisdiction that is party to a public-private agreement under sections 57 to 70, inclusive.

(d) The Authority may combine Federal, State, local, and private funds to finance a transportation facility under sections 57 to 70 inclusive.

Section 64.  (a) Section 9  of Chapter 81B shall apply to:

(1) a transportation facility; and

(2) tangible personal property used exclusively with a transportation facility that are:

(A) owned by the Authority and leased, licensed, financed, or otherwise conveyed to an operator; or

(B) acquired, constructed, or otherwise provided by an operator on behalf of the Authority.

Section 65.  The Authority may exercise the power of eminent domain to acquire property, rights of way or other rights in property for transportation projects that are part of a public-private agreement for design-build-finance-operate-maintain or design-build-operate-maintain services.

Section 66. (a) All law enforcement officers of the commonwealth and of an affected local jurisdiction shall have the same powers and jurisdiction within the limits of the transportation facility as they have in their respective areas of jurisdiction and access to the transportation facility at any time for the purpose of exercising such powers and jurisdiction.

(b) The traffic and motor vehicle laws of the commonwealth or, if applicable, any affected local jurisdiction shall be the same on the transportation facility as those laws applied to conduct on similar transportation facilities in the commonwealth or local jurisdiction.

(c) Punishment for violations of traffic and motor vehicle laws of the commonwealth or, if applicable, any affected local jurisdiction on the transportation facility shall be as prescribed by law for conduct occurring on similar transportation facilities in the commonwealth or local jurisdiction.

Section 67.  An operator under sections 57 to 70, inclusive, and any utility whose facility is to be crossed or relocated shall cooperate fully in planning and arranging the manner of the crossing or relocation of the utility facility.

Section 68. Nothing in sections 57 to 70, inclusive, shall be construed or deemed to limit any waiver of the sovereign immunity of the Commonwealth or any officer or employee of the Commonwealth with respect to the participation in or approval of all or any part of the transportation facility or its operation.

Section 69. The Authority may adopt rules and regulations to carry out the provisions of sections 57 to 70, inclusive.

Section 70.  There is hereby established a special public-private infrastructure oversight commission to comment and approve on all Requests for Proposals for design-build-finance-operate-maintain or design-build-operate-maintain services, pursuant to section 59. 

The commission shall have 9 members, none of whom shall be employees of the executive branch, members of the General Court, nor employees of the Legislature, including the following: 4 members who shall reside in different geographic regions of the commonwealth, to be appointed by the governor to service terms of 2 years;  1 member, who shall not be a member of the general court, to be appointed by the president of the senate to serve a term of 2 years; 1 member, who shall not be a member of the general court, to be appointed by the speaker of the house of representatives to serve a term of 2 years; 1 member who shall not be an employee of the department of the state treasurer, to be appointed by the treasurer, to serve a term of 2 years; the state auditor, or his designee; and 1 representative from the Massachusetts Organization of State Engineers and Scientists, to serve a term of 2 years.   Each of the members of the commission shall be an expert with experience in the fields of transportation law, public policy, public finance, management consulting, transportation, or organizational change.  One of the members appointed by the governor shall be an expert in the field of public finance.  One of the members appointed by the governor shall be an expert in the field of management consulting or organizational change. One of the members appointed by the governor shall be an expert in the field of transportation.  One of the members shall be appointed by the governor to serve as chairperson of the commission. The members appointed by the governor may be eligible for reappointment, provided however that no member appointed by the governor may serve more than three terms.  The members of the commission shall be appointed no later than August 30, 2009. 

Whenever the Authority notifies the commission of its intent to issue a Request for Proposal for design-build-finance-operate-maintain or design-build-operate-maintain services, the Authority shall submit a draft of the Request for Proposal to the commission for its review and approval.  As provided in section 58 , no Request for Proposal shall be issued by the Authority for a public-private agreement for design-build-finance-operate-maintain or design-build-operate-maintain services without the commission’s written approval.  The commission shall provide an initial written response to the Request for Proposal within 15 days.

For each Request for Proposal for design-build-finance-operate-maintain or design-build-operate-maintain services, the commission shall report on issues surrounding the Request for Proposal, including but not limited to: (1) the status of current employees, (2) the policy and regulatory structure for overseeing a privately operated transportation facility and on-going legislative oversight, (3) issues of taxation, profit-sharing, and resolution of new revenue producing ideas, (4) advertising and marketing, (5) use of new technologies, (6) lease terms and termination clauses, (7) additional responsibilities by both the private infrastructure operator and the Commonwealth during the lease period, (8) the financial valuation of the certain commonwealth transportation facility; and (9) the anticipated advantages of entering into the anticipated public-private agreement for design-build-finance-operate-maintain or design-build-operate-maintain services.

The commission’s written approval of a Request for Proposal for design-build-finance-operate-maintain or design-build-operate-maintain services shall be deemed to satisfy the requirements of sections 52 to 55, inclusive, of chapter 7 of the General Laws.

The report shall be delivered within 30 days of the commission’s approval of a Request for Proposal for design-build-finance-operate-maintain or design-build-operate-maintain services to the secretary for administration and finance, the house committee on ways and means, the senate committee on ways and means, the chairmen of the joint committee on transportation, and the chairmen of the joint committee on bonding, capital expenditures, and state assets. 

Any research, analysis or other staff support that the commission reasonably requires shall be provided by the Massachusetts Surface Transportation Authority.

SECTION 6.  Chapter 10 of the General Laws is hereby amended by striking out section 35T, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-

Section 35T. As used in this section, the following words shall, unless the context otherwise requires, have the following meanings:-

“Base revenue amount”, for fiscal year 2001 the amount of $645,000,000, and for each fiscal year thereafter the base revenue amount for the prior fiscal year multiplied by the inflation index for the preceding 12 months, as certified by the secretary of administration and finance (the “secretary”), in consultation with the department of revenue, on March 1 of each year, beginning on March 1, 2001 as set forth in subsection (b); provided, that in no year shall the base revenue amount exceed 103 per cent of the base revenue amount applicable for the prior fiscal year; provided further, that if in any year said inflation index is less than three per cent but greater than the per cent increase in gross sales tax revenues received pursuant to chapters 64H and 64I in the preceding 12 months, excluding any portion of such taxes imposed on meals as defined in paragraph (h) of section 6 of said chapter 64H, then the base revenue amount shall be adjusted by the same percentage increase in said gross sales tax revenues; provided further, that if in any year the per cent increase in said gross sales tax revenues is zero or less, then the base revenue amount shall not be adjusted for the subsequent fiscal year.

“Dedicated sales tax revenue amount”, all monies received by the commonwealth equal to 1 per cent of the gross receipts of a sale as defined by the provisions of chapter 64H and 1 per cent of the sales price of a purchase as defined by the provisions of chapter 64I from that portion of the taxes imposed under the provisions of said chapters 64H and 64I as excises upon the sale and use at retail of tangible property or of services, and upon the storage, use or other consumption of tangible property or of services, including interest thereon or penalties but not including any portion of such taxes imposed on the sale of meals as defined in paragraph (h) of section 6 of said chapter 64H.

“Inflation index”, the per cent change in inflation as measured by the per cent change in the consumer price index for all urban consumers for the Boston metropolitan area as determined by the bureau of labor statistics of the United States department of labor.

(a) There shall be credited to the Surface Transportation Trust Fund established in section 35LL (hereinafter, the “Fund”)  (i) the dedicated sales tax revenue amount, provided that in any fiscal year the amount shall be not less the base revenue amount as certified pursuant to subsection (b); and (ii) all assessments received by the commonwealth pursuant to section 22 of chapter 81D.

Before the state treasurer disburses funds to the Massachusetts Surface Transportation Authority, the authority must first certify that it has made provision in its annual budget pursuant to section 21 of chapter 81B for sufficient amounts to be available to meet debt service payments or other payments due under financing obligations, including, without limitation, leases, reimbursement obligations, or interest exchange agreements, for which the commonwealth has pledged its credit or contract assistance or is otherwise liable or as to which the authority has covenanted to maintain net cost of service or contract assistance support. Upon such certification, all amounts in the Fund shall be available for expenditure by the authority for any lawful purpose, including without limitation, payment of debt service on debt obligations issued by the authority, and may be pledged to secure debt of the authority in such manner and according to such priority as the authority may determine.

In order to increase the marketability of any bonds or notes of the authority which may be secured by or payable from amounts held in the Fund, the sums to be credited to the Fund as aforesaid are hereby impressed with a trust for the benefit of the authority and the holders from time to time of any such bonds or notes, and, in consideration of the acceptance of payment for any such bonds or notes, the commonwealth covenants with the purchasers and all subsequent holders and transferees of any such bonds or notes that while any such bond or note shall remain outstanding, and so long as the principal of or interest on any such bond or note shall remain unpaid, the sums to be credited to the Fund as aforesaid shall not be diverted from the purposes identified herein and, so long as such sums are necessary, as determined by the authority in accordance with any applicable trust agreement, bond resolution, or credit enhancement agreement, for the purposes for which they have been pledged, the rates of the excises imposed by said chapters 64H and 64I shall not be reduced below the dedicated sales tax revenue amount or the base revenue amount and the amount to be assessed on cities and towns pursuant to said section 9 of said chapter 161A shall not be reduced below $136,026,868 per fiscal year.

(b) For purposes of determining the amount to be credited to the Fund the secretary shall on March 1 of each year beginning on March 1, 2001 certify the base revenue amount for the following fiscal year. On March 15 of each year beginning on March 15, 2001, the secretary shall, after consultation with and based on projections of the department of revenue, certify whether the dedicated sales tax revenue amount is projected to exceed the base revenue amount for the upcoming fiscal year. If the secretary certifies that the projected dedicated sales tax revenue amount will be less than the base revenue amount, then the comptroller shall for the following fiscal year credit to the Fund amounts sufficient to meet the base revenue amount. If the secretary certifies that the projected dedicated sales tax revenue amount will exceed the base revenue amount, then the comptroller shall for the following fiscal year credit to the Fund the sales tax revenue amount. On November 15 of each year beginning on November 15, 2001, the secretary shall certify whether the dedicated sales tax revenue amount as of that date is projected to exceed the base revenue amount for the current fiscal year. If the secretary certifies that the dedicated sales tax revenue amount is projected to be less than the base revenue amount, then the comptroller shall credit to the Fund amounts sufficient to meet the base revenue amount for that fiscal year. If the secretary certifies that the dedicated sales tax revenue amount is greater than the base revenue amount, then the comptroller shall credit to the Fund the dedicated sales tax revenue amount. On April 1 of each year beginning on April 1, 2002, the secretary shall repeat the certification process required on November 15, and the comptroller shall credit the appropriate amount to the Fund.

SECTION 7. Section 35U of chapter 10 of the General Laws is hereby repealed.

SECTION 8.  Chapter 10 of the General Laws is hereby amended by adding the following section:-

Section 35LL. There is hereby set up on the books of the commonwealth a separate fund to be known as the Surface Transportation Trust Fund, hereinafter called the Fund.  There shall be credited to the Fund all fees received by the registrar of motor vehicles pursuant to chapter 90, all tolls collected pursuant to subsection (j) of section 4 of chapter 81B, all contributions and assessments paid into the treasury of the commonwealth by cities, towns or counties for maintaining, repairing, improving and constructing ways, whether before or after the work is completed, all refunds and rebates made on account of expenditures on ways by the department, all receipts paid into the treasury of the commonwealth and directed to be credited to the Surface Transportation Trust Fund under section 35T, chapter 64A, 64E, 64F, or any other applicable general or special law, all monies received by the commonwealth in satisfaction of claims by the commonwealth for damage to highway safety signs, signals, guardrails, curbing and other highway related facilities, and all receipts received by the state treasurer under the provisions of section eight of chapter ten on behalf of the registrar or for other surface transportation, as defined herein.

Before amounts are credited to the Surface Transportation Trust Fund, all fees received in the issuance of veterans plates, pursuant to section two, in excess of the fees set for the registration of the motor vehicle, shall be paid by the registrar into the General Fund.  Remaining revenues shall then be used, subject to appropriation,

(1) to carry out the provisions of law relative to the use and operation of motor vehicles and trailers and for expenses authorized to administer the law relative to the taxation of the sales of gasoline and certain other motor vehicle fuel; and

(2) $2 from each motorcycle registration fee shall be paid by the registrar or by the person collecting the registration fee into the General Fund and shall be appropriated solely for the purpose of promoting and advancing motorcycle safety.

  The balance then remaining shall be transferred to the Surface Transportation Trust Fund.  Annual receipts into the fund on account of any fiscal year shall be deemed to meet the full obligation of the commonwealth to the Massachusetts Surface Transportation Authority, hereinafter called the authority, for such fiscal year. Amounts in the Fund shall be held by the state treasurer or his designee as trustee and not on account of the commonwealth, and the state treasurer is hereby authorized and directed to disburse amounts in the Fund to the authority, without further appropriation, upon the request, from time to time, of the executive director of the authority.

The authority shall use the Fund:

(a) For expenditure, under the direction of said authority, for maintaining, repairing, improving and constructing town and county ways and bridges, sidewalks adjacent to such ways and bridges, bikeways and other projects eligible for funding as a transportation enhancement project as described in the Intermodal Surface Transportation Efficiency Act of 1991, P.L. 102-240, salt storage sheds, bikeways and public use off-street parking facilities related to mass transportation, for engineering services and expenses related to highway transportation enhancement and mass transportation purposes, for care, repair, storage, replacement, purchase and long-term leasing of road building machinery, equipment and tools, for the erection and maintenance of direction signs and warning signs and for necessary or beneficial improvements to unpaved town and county ways together with any money which any town or county may appropriate for such purposes to be used on the same ways, sheds, bikeways, bridges, machinery, equipment, tools and facilities. Such engineering services, including surveying services, shall only be performed by architectural, engineering or surveying firms prequalified by the authority; provided, however, that a municipality may seek a waiver of this requirement from the authority if the municipality demonstrates to the satisfaction of the authority that it is cost prohibitive to use a prequalified firm. Such ways, sheds, bikeways, bridges, machinery, equipment, tools and facilities shall remain town or county ways, sheds, bikeways, bridges, machinery, equipment, tools and facilities. No revenue credited to the Fund shall be transferred from said Fund to any other fund of the Commonwealth for any other purpose. The authority shall withhold or withdraw the unexpended balance of any funds assigned by it under this subdivision if the town fails to comply with the official standards for traffic control established by the authority or with any provision of a traffic control agreement negotiated between the authority and the town, as required by the United States Secretary of Commerce under section 109 of Title 23 of the United States Code. In this subdivision the word "town'' shall include city;

(b) For expenditure, under the direction of the authority, for maintaining, repairing and improving state highways and bridges, including highways and bridges managed until July 1, 2009 by the department of conservation and recreation, the turnpike and the metropolitan highway system, all as defined in chapter 81B;

(c) For expenditure, under the direction of the authority, in addition to federal aid payments received under section 49 of chapter 81C, for construction of state highways;

(d) For expenditure, under the direction of the authority, for engineering services and expenses, for care, repair, storage, replacement and purchase of road building machinery and tools, for snow removal, for the erection and maintenance of direction signs and warning signs and for the care of shrubs and trees on state highways, and for expenses incidental to the foregoing or incidental to the purposes specified in subdivisions (a), (b) or (c) of this clause;

(e) To meet interest, sinking fund and serial payments on all debts paid from highway fund receipts before July 1, 2009, including those paid in accordance with section 2O of chapter 29.