Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Section 7 of chapter 44 of the General Laws, as appearing in the 1988 Official Edition, is hereby amended by striking out clause (3A) and inserting in place thereof the following clause:-
(3A) For remodeling, reconstructing or making extraordinary repairs to public buildings owned by the city or town, including original equipment and landscaping, paving and other site improvements incidental or directly related to such remodeling, reconstruction or repair, such amounts as may be approved by the emergency finance board established under the provisions of section forty-seven of chapter ten, and for such maximum term, not exceeding twenty years, as said board shall fix. Each city or town seeking approval by the board of a loan under this clause shall submit to said board all plans and other information considered by the board to be necessary for a determination of the probable extended use of such building likely to result from such remodeling, reconstruction or repair, and in considering approval of any such requested loan and the terms thereof, special consideration shall be given to such determination.
SECTION 2. Said section 7 of said chapter 44, as so appearing, is hereby further amended by striking out clause (9) and inserting in place thereof the following clause:-
(9) For the cost of departmental equipment, five years or for such maximum term, not exceeding fifteen years, as may be approved by the emergency finance board established under the provisions of section forty-seven of chapter ten. Each city or town seeking approval by the board under this clause for the cost of departmental equipment shall submit to said board any information considered by the board to be necessary for a determination of the probable useful life of such equipment.
SECTION 3. Said section 7 of said chapter 44, as so appearing, is hereby further amended by striking out clause (11) and inserting in place thereof the following clause:-
(11) For the payment of final judgements, one year.
SECTION 4. Section 19 of said chapter 44, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
Cities, towns and districts shall not issue any notes payable on demand, and they shall provide for the payment of all debts, except temporary loans incurred under sections four, six, six A, eight C, seventeen and seventeen A, or under section three of chapter seventy-four of the acts of nineteen hundred and forty-five, by such annual payments as will extinguish the same at maturity, and so that the first of such annual payments on account of any serial loan shall be made not later than the end of the next complete fiscal year commencing after the date of the bonds or notes issued for the serial loan, and so that the amount of such annual payments in any year on account of such debts, so far as issued, shall not be less than the amount of principal payable in any subsequent year; and such annual amounts, together with the interest on all debts, shall, without further vote, be assessed until the debt is extinguished; provided, however, that in the case of bonds or notes issued for establishing or purchasing a water supply system for its inhabitants, the first of such annual payments shall be made not later than three years after the date thereof. Notwithstanding the aforesaid provisions, the maturities of each issue of bonds or notes, (a) sold to the Farmers Home Administration, Department of Agriculture of the United States, (b) issued for costs relating to an enterprise for which an enterprise fund has been established under the provisions of section thirty-nine K of chapter forty or other comparable provisions of law; provided however, that the accountant or auditor or other officer having similar duties in the city, town or district, shall have certified to the treasurer that rates and charges have been set at a sufficient level to cover the estimated operating expenses and debt service of the enterprise, including debt service on the bonds or notes to be issued or (c) issued for any purpose approved by the voters under paragraph (k) of section twenty-one C of chapter fifty-nine, shall be arranged so that for each issue the amounts payable in the several years for principal and interest combined shall be as nearly equal as practicable in the opinion of the officers authorized to issue said bonds or, in the alternative, in accordance with a schedule providing a more rapid amortization of principal.
SECTION 5. Said chapter 44 is hereby further amended by inserting after section 53G the following section:-
Section 53H. Notwithstanding the provisions of section fifty-three, any city, town, district, regional refuse disposal district or regional school district issuing bonds or notes may rebate to the federal government, without further appropriation, any amount deemed necessary by the officers authorized to issue the bonds or notes in order to have interest paid on the bonds or notes be excluded, in whole or in part, from gross income for federal income tax purposes. Such payment made by a city, town or district shall be reported by the auditor or accountant of the city or town or other officer having similar duties or by the treasurer, if there is no such officer, to the assessors, who shall include the amount so reported in the determination of the next annual tax rate, unless the city, town or district has otherwise made provisions therefor. The amount of such payment made by a regional school district or regional refuse disposal district shall be included in the next annual district operation and maintenance budget, unless the regional district committee has otherwise made provisions therefor. The director of accounts may promulgate guidelines, rules and regulations to govern such rebates and any such rebates made under authority of this section shall be subject to any such guidelines, rules and regulations of said director.