“SECTION 1. To provide for a program of transportation development and improvements, the sums set forth in sections 2 and 2A, for the several purposes and subject to the conditions specified in this act are hereby made available, subject to the laws regulating the disbursement of public funds. The sums made available in this act shall be in addition to any amounts previously appropriated or made available for these purposes.

SECTION 2.

MASSACHUSETTS DEPARTMENT OF TRANSPORTATION

Highway Division

6121-1714. For projects on the interstate and noninterstate federal highway system; provided, that funds may be expended for the costs of these projects including, but not limited to, the nonparticipating portions of these projects and the costs of engineering and other services essential to these projects; provided further, that notwithstanding this act or any other general or special law to the contrary, the department shall not enter into any obligations for projects that are eligible to receive federal funds under this act unless state matching funds exist that have been specifically authorized and are sufficient to fully fund the corresponding state portion of the federal commitment to fund these obligations; and provided further, that the department shall only enter into obligations for projects under this act based upon a prior or anticipated future commitment of federal funds and the availability of corresponding state funding authorized and appropriated for this use by the general court for the class and category of project for which this obligation applies........................................................................................................ $750,000,000

SECTION 2A.

MASSACHUSETTS DEPARTMENT OF TRANSPORTATION

Highway Division

6121-1718. For the design, construction, preservation, reconstruction and repair of or improvements to nonfederally-aided bridges and approaches with span lengths of not more than 20 feet; provided, that expenditures from this item may include the costs of engineering, design, permitting and other services essential to these projects; provided further, that a city or town shall comply with the procedures established by the department with respect to the small bridge program; provided further, that the department shall only enter into obligations for projects under this item based upon a prior or anticipated future commitment of funds from cities and towns in which a such project is located or which are otherwise served by such project and the availability of corresponding municipal funding authorized provided for use in connection with the project for which the obligation applies; provided further, that not more than 20 per cent of the funds expended under this item, in the aggregate, shall be distributed to projects in 1 highway district; provided further, that the department shall develop a plan for project selection that takes into account need-based criteria and geographic distribution to be filed with the joint committee on transportation and the clerks of the house and senate not later than September 1, 2016; and provided further, that no amounts appropriated under this item shall be expended for bridges or approaches owned by or under the control of the department or the Massachusetts Bay Transportation Authority...........$50,000,000

SECTION 3. The General Laws are hereby amended by striking out chapter 90I and inserting in place thereof the following chapter:-

Chapter 90I

COMPLETE STREETS PROGRAM

Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Complete streets”, streets that provide safe and accessible options for multiple travel modes for people of all ages and abilities including, but not limited to, walking, cycling, public transportation, automobiles and freight.

“Department”, the Massachusetts Department of Transportation.

“Program”, the complete streets program established in this chapter.

Section 2. There shall be within the department a complete streets program to provide grants to municipalities to encourage them to regularly and routinely include complete streets design elements and infrastructure during the construction on new or existing locally-funded roads.

Section 3. To be eligible for funding under the program, a municipality shall: (i) apply to the department in a form and manner prescribed by the department; (ii) adopt a complete streets by-law, ordinance or administrative policy which shall be approved by the department and which shall include at least 1 public meeting; provided, however, that the by-law, ordinance or administrative policy shall identify the body, individual or entity responsible for implementing the complete streets program; (iii) ensure that the municipal employees responsible for the program participate in a training administered by the department; (iv) develop a complete streets prioritization plan; and (v) comply with other requirements of the department relative to the program.

Section 4. The department may adopt rules, regulations and guidelines for the administration of this chapter including, but not limited to, criteria for awarding grants under the program, application procedures and other requirements. The department shall consult with the bicycle and pedestrian advisory board established in section 11A of chapter 21A and the healthy transportation compact established in section 33 of chapter 6C on the development and management of the program.

SECTION 4. Chapter 79 of the acts of 2014 is hereby amended by inserting after section 41 the following section:-

Section 41A. Notwithstanding any general or special law to the contrary, bonds or notes issued under section 20 as special obligation bonds pursuant to section 2O of chapter 29 of the General Laws shall not be included in the computation of outstanding bonds for purposes of the limit imposed by the second paragraph of section 60A of said chapter 29 and no debt service with respect to these bonds and notes shall be included in the computation of the limit imposed by section 60B of said chapter 29.

SECTION 5. Section 6 of chapter 257 of the acts of 2014 is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b) All interest and payments on account of principal of these obligations shall be payable solely from the State Lottery and Gaming Fund. Bonds and interest thereon issued under this section shall be general obligations of the commonwealth; provided, however, that any bonds issued by the state treasurer under this section, upon the request of the governor, may be issued as special obligation bonds pursuant to section 2O of chapter 29 of the General Laws; provided further, that in deciding whether to request the issuance of particular bonds as special obligations, the governor shall take into account: (i) generally prevailing financial market conditions; (ii) the impact of each approach on the overall capital financing plans and needs of the commonwealth; (iii) any ratings assigned to outstanding bonds of the commonwealth and any ratings expected to be assigned by any nationally-recognized credit rating agency to the bonds proposed to be issued; and (iv) any applicable provisions of a trust agreement or credit enhancement agreement entered into pursuant to said section 2O of said chapter 29. Bonds issued under the authority of this section shall be excluded from the debt limit established in section 60A of said chapter 29.

SECTION 6. Item 1100-2511 of section 2A of section 286 of the acts of 2014 is hereby amended by inserting after the word “provided”, in line 4, the following words:- , that $330,000 shall be expended for port security projects eligible for financing through grants from the Federal Emergency Management Agency when such projects are undertaken in collaboration with the Massachusetts emergency management agency and when such projects are based upon prior or anticipated future commitments of federal funds; provided further.

SECTION 7. The Massachusetts Department of Transportation shall submit an application to the United States Department of Transportation for funding in federal fiscal year 2017 for the Surface Transportation System Funding Alternatives Program established in the Fixing America’s Surface Transportation Act, or FAST Act, to be used for a vehicle miles traveled pilot program that shall be made available to not more than 500 volunteer participants. If the application is not successful, the Massachusetts Department of Transportation shall thereafter apply in each federal fiscal year until 2020 or until the application results in funding for a vehicle miles traveled pilot program, whichever first occurs.

SECTION 8. To meet a portion of the expenditures necessary in carrying out section 2, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $135,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, Transportation Improvement Loan Act of 2016, and shall be issued for a maximum term of years not exceeding 30 years as the governor may recommend to the general court pursuant to section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2051. All interest and payments on account of principal on such obligations shall be payable from the Commonwealth Transportation Fund. Bonds and interest thereon issued under this section shall be general obligations of the commonwealth.

SECTION 9. To meet the expenditures necessary in carrying out section 2A, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time but not exceeding, in the aggregate, $50,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, Small Bridge Preservation and Improvement Act of 2016, and shall be issued for a maximum term of years not exceeding 30 years as the governor may recommend to the general court pursuant to section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such bonds shall be payable not later than June 30, 2051. All interest and payments on account of principal on such obligations shall be payable from the Commonwealth Transportation Fund. Bonds and interest thereon issued under this section shall be general obligations of the commonwealth.

SECTION 10. Notwithstanding any general or special law to the contrary, all construction contracts funded in whole or in part by the funds authorized in item 6121-1714 of section 2 shall include a price adjustment clause for each of the following: (i) fuel, including both diesel and gasoline; (ii) asphalt; (iii) concrete; and (iv) steel. A base price for each material shall be set by the awarding authority or agency and included in the bid documents at the time a project is advertised. The awarding authority or agency shall also identify in the bid documents the price index to be used for each material and supply. The adjustment clause shall provide for a contract adjustment to be made on a monthly basis when the monthly cost change exceeds plus or minus 5 per cent.

SECTION 11. Notwithstanding any general or special law to the contrary, the bonds that the state treasurer may issue pursuant to sections 8 and 9 shall be issued for a term not to exceed 30 years. All such bonds shall be payable not later than June 30, 2051 as recommended by the governor in a message to the general court filed March 31, 2016 under section 3 of Article LXII of the Amendments to the Constitution.

SECTION 12. Notwithstanding any general or special law to the contrary, in carrying out this act, the Massachusetts Department of Transportation may enter into contracts, agreements or transactions that may be appropriate with other federal, state, local or regional public agencies or authorities. The contracts, agreements or transactions may relate to such matters as the department shall determine including, without limitation, the research, design, layout, construction, reconstruction or management of construction of all or a portion of these projects. In relation to any such contracts, agreements or transactions, the department may advance monies to such agencies or authorities, without prior expenditure by the agencies or authorities, and the agencies and authorities may accept monies necessary to carry out these contracts, agreements or transactions; provided, however, that the department shall certify to the comptroller the amounts so advanced and any such contract, agreement or transaction shall contain provisions satisfactory to the department for the accounting of money expended by any other agency or authority. Any money not expended under these contracts, agreements or transactions shall be credited to the account of the department from which they were advanced.”