Amendment #210 to H3400

MBTA Control Board

Representatives Jones of North Reading, Hill of Ipswich, Poirier of North Attleborough, Gifford of Wareham, Frost of Auburn and Smola of Warren move to amend the bill by adding the following new sections:-

“SECTION XX: There shall be a Massachusetts Bay Transportation Authority (MBTA) Finance Control Board, herein after in this act called the “board”, which shall consist of 3 members appointed by the governor, 1 of who shall be the secretary of transportation, 1 of whom shall be recommended by the Speaker of the House of Representatives and 1 member recommended by the Senate President. The board shall act by a majority vote of all its members. The board shall initiate and assure the implementation of appropriate measures to secure the financial stability of the MBTA, and shall continue in existence until June 30, 2020 and thereafter for such period as the members may vote to continue its existence; provided however that the governor may at any time abolish the board. The board shall be a state agency for the purpose of chapter 268A of the General Laws.

(a)Each board member shall serve without compensation but may be reimbursed for actual and necessary expenses reasonably incurred in the performance of their duties, including reimbursement for reasonable travel; provided, however that such reimbursement shall not exceed $500 annually. Any person appointed to fill a vacancy in the office of a member of the board shall be appointed in a like manner and shall serve for only the unexpired term of such former member. Any director may be removed from his appointment by the governor for cause;

(b)Action by the board under the authority of this act shall in all respects constitute action by the MBTA for all purposes under the General Laws and under any special law; and

(c)Until the board ceases to exist, no appropriation, borrowing authorization, transfer, or other spending authority shall take effect until approved by the board. The board shall approve all appropriations, borrowing authorizations, transfers, or any other spending authorizations, in whole or part.

SECTION XX. Notwithstanding any MBTA provision, or local ordinance to the contrary, the board shall have all powers necessary or convenient to carry out and effectuate its purposes including, without limiting the generality of the foregoing, the power to:

(a)amend the annual or supplemental budgets of the MBTA including the establishment and the ability to approve any appropriations and spending authority for all aspects of the MBTA;

(b)implement and maintain uniform budget guidelines and procedures within the MBTA;

(c)amend, formulate and execute capital budgets, including to amend any borrowing authorization, or finance or refinance any debt in accordance with law;

(d)amortize operational deficits in an amount and for such term as the secretary approves on an annual basis;

(e)notwithstanding any general or special law to the contrary, establish, increase, or decrease any fare, fee, rate, or charge, for any service, license, permit or other activity otherwise within the authority of the MBTA;

(f)with the approval of the secretary of transportation:

1.sell, lease, or otherwise transfer real property and other assets of the MBTA, including air-rights and transit-oriented developments;

2.purchase, lease, or otherwise acquire property or other assets on behalf of the MBTA;

(g)reduce fare evasion through restructuring, technology, and/or campaigns;

(h)create innovative financial partnerships with universities, major developers, and municipalities that will contribute to transit funding;

(i)increase advertising and concessions in MBTA facilities;

(j)promulgate rules and regulations governing the operation and administration of the MBTA;

(k)levy fines on vendors for failing to maintain on-time rates, vehicle cleanliness, fare collections, station maintenance, and staff training;

(l)suspend, in consultation with the secretary of transportation, such rules and regulations of the MBTA and to promulgate rules and regulations necessary to carry out this act;

(m) exercise all powers under the General Laws and this or any other special act, any provision or ordinance that any official of the MBTA may exercise, acting separately or jointly. With respect to any such exercise of powers by the board, the officials of the MBTA shall not rescind or take any action contrary to such action by the board so long as the board continues to exist; and

(n)develop not less than a 20 year plan for MBTA financial and structural sustainability; included but not limited to an analysis of debt and contemplated expansion, specifically identifying expansion which is strictly necessary as a result of a legally binding agreement and other proposals that may not be financially viable.

SECTION XX. Within 45 days after the appointment of the board, but no later than September 1, 2015, the board shall make a preliminary report to the governor, the secretary of administration and finance and the chairpersons of the house and senate committees on ways and means. The report shall present a preliminary analysis of the fiscal crisis of the MBTA and the board's preliminary finance and management plans to address the MBTA's operating and structural deficits.

SECTION XX. Within 45 days after the appointment of the board, but no later than September 1, 2015, the board shall establish a liaison to the office of the attorney general. Such liaison shall be responsible for, but not limited to, providing the attorney general with any concern that, in the opinion of the board, warrants further investigation.

SECTION XX. (a) The board shall submit a report to the house and senate committees on ways and means not later than 5 days before the award of any no-bid contract to any private person or entity. This report shall disclose: (1) the terms of the anticipated contract, including but not limited to all monetary compensation; (2) the identity of the contractor and any subcontractor or affiliate of such contractor that would benefit under the contract; (3) a specific finding by the board that not using a competitive bidding process under the circumstances is necessary to ensure the provision of essential services to the MBTA; and (4) a certification by the board that it engaged in arms-length negotiations with the contractor and that the terms of the contract represent the best possible arrangement for the MBTA under the circumstances.

(b)The board shall submit a report to the house and senate committees on ways and means not later than 5 days before the award of any contract if, at any time within 3 years before the effective date of this act, any member of the board or any employee or officer of the executive office served as an employee, member or general or limited partner of the contractor, its owners or affiliates. The report shall also disclose whether, at any time within 3 years before the effective date of this act, any member of the board or any employee or officer of the executive office of administration and finance was required to file a statement pursuant to the Securities Exchange Act of 1934 as beneficial owner of more than 10 per cent of a class of the contractor's equity securities. This report shall disclose the terms of the anticipated contract, including but not limited to all monetary compensation, and the identity of the contractor and any subcontractor or affiliate of such contractor that would benefit under the contract.

SECTION XX. The board shall submit a yearly report of the operating and structural stability of the MBTA to the governor, the secretary of administration and finance and the chairpersons of the house and senate committees on ways and means and the joint committee on transportation no later than December 15 of each year upon the passage of this act.

SECTION XX. This act shall be effective notwithstanding any enabling statute provision or ordinance to the contrary.

SECTION XX.  Chapter 161A of the General Laws is hereby amended by striking out section 7, as appearing in the 2012 Official Edition, and inserting in place thereof the following section:-

Section 7.  The authority shall be governed and its corporate powers exercised by the board of directors of the MBTA Finance Control Board. At such time as the MBTA Finance Control Board dissolves, the authority shall be governed and its corporate powers exercised by the board of directors of the Massachusetts Department of Transportation established pursuant to chapter 6C.”.

Additional co-sponsor(s) added to Amendment #210 to H3400

MBTA Control Board