Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. To fund initial deposits to the School Modernization and Reconstruction Trust Fund, established by section 35Y of chapter 10 of the General Laws, the state treasurer shall, upon the 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, the sum of $1,000,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, Massachusetts School Building Assistance Fund Loan, Act of 2004, and shall be issued for such maximum term of years, not exceeding 20 years, as the governor may recommend to the general court pursuant to Section 3 of Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later than June 30, 2029. All interest and payments on account of principal of such obligations shall be payable from the General Fund. Bonds issued under the authority of this section shall be general obligations of the commonwealth. Bonds issued pursuant to this section shall not be included in the computation of outstanding direct bonds for purposes of the limit imposed by the second paragraph of section 60A of chapter 29 of the General Laws, nor included in the computation of general obligation debt for purposes of the limit imposed by section 60B of said chapter 29. The comptroller shall transfer the net proceeds generated by any such bond issue to the School Modernization and Reconstruction Trust Fund.
SECTION 2. This act shall take effect upon its passage.