SECTION 1. Section 22A of Chapter 40, of the Massachusetts General Laws, as appearing in the 2012 official edition, is hereby amended by striking the following sentence:-

Such fees shall be established and charged at such rates that the revenue therefrom shall not exceed in the aggregate the necessary expenses incurred by such city or town for the acquisition, installation, maintenance and operation of parking meters and the regulation of parking and other traffic activities incident thereto.

And inserting in place thereof:-

Such fees shall be established and charged at rates determined by the city or town. Rates may be set for the purpose of managing the parking supply. The revenue therefrom may be used for acquisition, installation, maintenance and operation of parking meters and other parking payment and enforcement technology, the regulation of parking, salaries of parking management personnel, improvements to the public realm, and transportation improvements including but not limited to the operations of mass transit and facilities for biking and walking.

SECTION 2. Section 22C of said Chapter 40 is hereby amended by inserting the following words at the end thereof:-

, or any of the purposes and uses in accordance with Section 22A of this Chapter.

SECTION 3. Said Chapter 40 is hereby amended by inserting the following section:-

Section 22A1/2. A city or town may establish one or more parking benefit districts, as a geographically defined area, in which parking revenue collected therein may be designated in whole or in part for use in said district through a dedicated fund in accordance with the purposes and uses listed in section 22A of this chapter. A parking benefit district may be managed by a body designated by the municipality, including but not limited to a business improvement district or main streets organization.