Section 35T: Massachusetts Bay Transportation Authority State and Local Contribution Fund
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 2015, the amount of $970,637,174 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 comptroller on March 1 of each year, as set forth in subsection (b); provided, however, 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 the inflation index is less than 3 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 those gross sales tax revenues; and provided further, that if in any year the per cent increase in the gross sales tax revenues or the inflation index is 0 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 in chapter 64H and 1 per cent of the sales price of a purchase as defined by chapter 64I from that portion of the taxes imposed under said chapters 64H and 64I as excises upon the sale and use at retail of tangible property or services, and upon the storage, use or other consumption of tangible property or services, including interest thereon and penalties plus commencing in fiscal year 2015, the amount of $160,000,000 in each fiscal year thereafter but not including any portion of the 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 is hereby set up on the books of the commonwealth a separate fund to be known as the Massachusetts Bay Transportation Authority State and Local Contribution Fund, hereinafter called the Fund. There shall be credited to 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 9 of chapter 161A. 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 Bay 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 general manager of the authority.
Before the state treasurer disburses funds to the authority, the authority must first certify that it has made provision in its annual budget pursuant to section 20 of chapter 161A 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 Massachusetts Bay Transportation Authority State and Local Contribution Fund established pursuant to subsection (a), the comptroller 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 comptroller 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 comptroller 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 comptroller 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 comptroller 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 comptroller 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 comptroller 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 comptroller shall repeat the certification process required on November 15 and shall credit the appropriate amount to the Fund.