AN ACT FINANCING INFORMATION TECHNOLOGY EQUIPMENT AND RELATED PROJECTS
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to provide forthwith for the capital improvement needs of the commonwealth and deploy affordable and ubiquitous broadband access to the citizens of the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
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 provide for a program of capital information technology improvements to various state institutions and properties and to fund the Massachusetts Broadband Institute, the sums set forth in this act, for the several purposes and subject to the conditions specified in this act, are hereby made available, subject to the laws regulating the disbursement of public funds, which sums shall be in addition to any other amounts previously appropriated for these purposes; provided, that the amounts specified for a particular project may be adjusted in order to facilitate projects authorized in this act.
SECTION 2.
EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Massachusetts Office of Information Technology.
EXECUTIVE OFFICE OF PUBLIC SAFETY AND SECURITY
Department of State Police.
SECTION 2A.
EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Massachusetts Office of Information Technology.
SECTION 2B.
EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Office of the Secretary.
SECTION 2C.
EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Massachusetts Office of Information Technology.
SECTION 2D.
EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
Office of the Secretary.
SECTION 3. Chapter 7 of the General Laws is hereby amended by inserting after section 4F 1/2 the following section:-
Section 4F ¾. There shall be established and set up a separate account to be known as the Commonwealth Federal Grants Management Trust. The secretary of administration and finance shall expend funds in the trust, without further appropriation, to support the purposes of the federal grants management unit within the office of commonwealth performance, accountability and transparency established in subparagraph (e) of section 4A. The secretary shall charge all federal grants, an amount determined by the secretary for these purposes, not exceeding 0.5 per cent per grant.
SECTION 4. Section 6 of chapter 7D of the General Laws, as appearing in section 22 of chapter 165 of the acts of 2014, is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection:-
(c) The CIO shall hold quarterly meetings with all directors and shall conduct annual compliance reviews across the executive offices to ensure full compliance with statutes, regulations, policies, standards and contractual obligations related to information technology and security. The CIO shall annually report the results of its reviews to the governor, the cabinet secretaries and the clerks of the senate and the house of representatives on or before January 1 of each year. All reports shall be made available on the office’s website.
SECTION 5. Section 7 of said chapter 7D, as so appearing, is hereby amended by adding the following subsection:-
(d) The CIO shall adopt policies, standards and guidelines governing information technology procurement, development and maintenance, specifically including provisions for:
(i) ensuring effective project management and oversight configurations;
(ii) establishing strategic incentive and requirement structures;
(iii) increasing competition among information technology vendors, including, but not limited to, the undertaking of smaller, short-term information technology projects to provide improved programmatic flexibility;
(iv) utilizing commercial off-the-shelf information technology products to achieve cost savings on information technology projects;
(v) increasing technology procurement innovation using pilot programming;
(vi) identifying which information technology projects and procurements shall require the services of an independent verification and validation consultant;
(vii) creating a team of project managers to oversee and manage large information technology projects;
(viii) gathering and maintaining relevant records, documents and information related to vendor performance on ongoing and completed projects to assist in assessing prospective vendors’ past performance; and
(ix) implementing other best practices which may include, but shall not be limited to, those identified in legislative reports and legislatively-required reports.
SECTION 6. (a) To meet the expenditures necessary to carry out item 0640-0035 of section 2, the state treasurer shall, upon 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, $65,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Lottery Financing Act of 2014, and shall be issued for a maximum term of years, not exceeding 10 years, as the governor may recommend to the general court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later than June 30, 2029.
(b) All interest and payments on account of principal of these obligations shall be payable solely from the State Lottery and Gaming Fund. Bonds issued under the authority of this section shall be special obligations of the commonwealth and shall be excluded from the debt limit established in section 60A of chapter 29 of the General Laws.
(c) Bonds of the commonwealth may be issued under authority of this section in such manner and on such terms and conditions as the state treasurer, with the concurrence of the secretary of administration and finance, may determine in accordance with this subsection and, to the extent not inconsistent with this subsection, the General Laws for the issuance of bonds of the commonwealth. Bonds may be secured by a trust agreement or other security agreement entered into by the state treasurer, with the concurrence of the secretary of administration and finance, on behalf of the commonwealth, which trust agreement or other security agreement may pledge or assign all or any part of the State Lottery and Gaming Fund and rights to receive the same, whether existing or coming into existence and whether held or thereafter acquired, and the proceeds thereof. The state treasurer may also, with the concurrence of the secretary of administration and finance, enter into additional security, insurance or other forms of credit enhancement which may be secured on a parity or subordinate basis with the bonds. A pledge in any trust or other security agreement or credit enhancement agreement shall be valid and binding from the time such pledge shall be made without any physical delivery or further act and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, irrespective of whether such parties have notice thereof. Any such pledge shall be perfected by filing of the trust or other security agreement or credit enhancement agreement in the records of the state treasurer and no filing shall be required under chapter 106 of the General Laws. Any trust agreement, security agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as determined by the state treasurer, including provisions relating to the establishment of reserves, the issuance of additional or refunding bonds, whether or not secured on a parity basis, the application of the agency assessments and other moneys and funds pledged pursuant to such agreement and other matters deemed necessary or desirable by the state treasurer for the security of such bonds and may also regulate the custody, investment and application of moneys. Any such bonds, the transfer thereof and the income therefrom, including profit on the sale thereof, shall be exempt from taxation by and within the commonwealth. The provisions hereof relating to bonds shall also be applicable to the issuance of notes insofar as such provisions may be appropriate therefor.
In order to increase the marketability of any such bonds or notes issued by the commonwealth and in consideration of the acceptance of payment for any such bonds or notes, the commonwealth shall covenant with the purchasers and all subsequent holders and transferees of any such bonds or notes that while any such bonds or notes shall remain outstanding and so long as the principal of or interest on any such bonds or notes shall remain unpaid: (i) no pledged funds shall be diverted from the State Lottery and Gaming Fund; (ii) in any fiscal year of the commonwealth and until an appropriation has been made which is sufficient to pay the principal, including sinking fund payments, of and interest on all such bonds and notes of the commonwealth and to provide for or maintain any reserves, additional security, insurance or other forms of credit enhancement required or provided for in any trust agreement securing any such bonds or notes, no pledged funds shall be applied to any other use.
(d) In lieu of issuing all or a portion of the bonds authorized by this section, the state treasurer, with the concurrence of the secretary of administration and finance, may instead enter into lease agreements or other alternate financing arrangements, which agreements or arrangements shall be payable from the State Lottery and Gaming Fund and the amount of which, together with any bonds issued or to be issued, shall not exceed the amount specified in subsection (a). The General Laws applicable to bonds of the commonwealth shall also apply to any such agreements or arrangements.
SECTION 7. To meet the expenditures necessary in carrying out items 1790-2018, 1790-3001, 1790-3002 and 8000-2030 of section 2, the state treasurer shall, upon 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 $517,200,000. All bonds issued by the commonwealth under this section shall be designated on their face, Information Technology and Innovation Act of 2014, and shall be issued for such maximum terms of years not exceeding 10 years, as the governor may recommend to the general court under 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 these obligations shall be payable from the General Fund unless otherwise specified. Notwithstanding any other provision of this act, bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.
SECTION 8. To meet the expenditures necessary in carrying out section 2A, the state treasurer shall, upon 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 $220,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Information Technology and Innovation Act of 2014, and shall be issued for such maximum terms of years not exceeding 10 years, as the governor may recommend to the general court under 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 these obligations shall be payable from the General Fund unless otherwise specified. Bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.
SECTION 9. To meet the expenditures necessary to carry out items 1599-7061 and 1599-7062 of section 2B, the state treasurer shall, upon 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, $88,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Information Technology and Innovation Act of 2014, and shall be issued for a maximum term of years, not exceeding 20 years, as the governor may recommend to the general court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later than June 30, 2039. All interest and payments on account of principal of these obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.
SECTION 10. To meet the expenditures necessary to carry out item 1599-7063 of section 2B, the state treasurer shall, upon 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, $12,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Information Technology and Innovation Act of 2014, and shall be issued for a maximum term of years, not exceeding 10 years, as the governor may recommend to the general court under 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 these obligations shall be payable from the General Fund. Bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.
SECTION 11. To meet the expenditures necessary to carry out section 2C, the state treasurer shall, upon 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, $100,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Information Technology and Innovation Act of 2014, and shall be issued for a maximum term of years, not exceeding 10 years, as the governor may recommend to the general court under 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 these obligations shall be payable from the Commonwealth Transportation Fund. Bonds and interest thereon issued under the authority of this section shall be general obligations of the commonwealth.
SECTION 12. (a) To meet the expenditures necessary to carry out section 2D, the state treasurer shall, upon 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, $2,000,000. All bonds issued by the commonwealth under this section shall be designated on their face, Capital Equipment Financing Act of 2014, and shall be issued for a maximum term of years, not exceeding 5 years, as the governor may recommend to the general court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later than June 30, 2024.
(b) All interest and payments on account of principal of these obligations shall be payable from agency assessments charged under regulations established pursuant to section 2D.
(c) In lieu of issuing all or any portion of the bonds authorized by this section, the state treasurer, with the concurrence of the secretary of administration and finance, may enter into lease agreements or other alternate financing arrangements, which agreements or arrangements shall be payable from agency assessments and the amount of which, together with any bonds issued or to be issued, shall not exceed the amount specified in subsection (a). The General Laws applicable to bonds of the commonwealth shall also apply to any such agreements or arrangements.
SECTION 13. The secretary of administration and finance shall submit semiannual reports on the progress of any projects funded by this act and included in the governor’s 5-year capital investment plan to the clerks of the senate and house of representatives, the chairs of the senate and house committees on ways and means and the senate and house chairs of the committees on bonding, capital expenditures and state assets. The reports shall include, but not be limited to, the previous year planned spending, previous year spending, current year planned spending, current year spending to date, original estimated total project cost, project description, purpose, location of the project, type of spending, type of asset and useful life of the project once completed. The semiannual reports shall be submitted on June 30 and December 31 of each year for a period of 8 years after the effective date of this act. All reports shall be made available on the executive office for administration and finance’s website.
SECTION 14. The executive office for administration and finance shall study and report on the cost and feasibility of making available on the searchable website under section 14C of chapter 7 of the General Laws all agreements or any combination or series of agreements by which a nongovernmental person or entity agrees with any public agency to provide goods or services valued at more than $1,000,000, the total amount that the public agency has committed to expend under any such agreement or combination or series of agreements and the total amount actually expended by the public agency under such agreement or combination or series of agreements to date. The executive office shall submit its report, along with a plan to implement the report’s findings, on or before April 15, 2015.
SECTION 15. Each executive office established in section 2 of chapter 6A of the General Laws shall, in consultation with the chief information officer, prepare and submit a report detailing the level of services offered by the office available over the internet. The reports shall include, but not be limited to, services and transactions currently offered by the office over the internet, services and transactions currently offered by the office and not available over the internet, current and future plans to expand the level of services offered over the internet and a comparison of the level of services offered by the office and available over the internet to the level of services offered and available over the internet in other similar offices in other states. The reports shall be submitted to the senate and house committees on ways and means and the clerks of the senate and house of representatives not later than November 15, 2014. All reports shall be made available on the general court’s website.
SECTION 16. To provide for the continued availability of certain bond-funded spending authorizations which otherwise would expire, the balances of the following appropriation items and any allocations thereof are hereby extended through June 30, 2017 for the purposes of and subject to the conditions stated for these items in the original authorizations and any amendments to such authorizations: 1599-7060, 1790-2013, 1790-2016, 1790-2017 and 1790-2500.
SECTION 17. Appropriations made pursuant to sections 2 to 2C, inclusive, shall be available for expenditure in the 3 fiscal years following June 30 of the calendar year in which the appropriation is made and any portion of such appropriation representing encumbrances outstanding on the records of the state comptroller’s office at the close of the third fiscal year may be applied to the payment thereof any time thereafter. The unencumbered balance shall revert to the commonwealth at the close of the third fiscal year.
SECTION 18. The town of Montague may utilize chapter 40Q of the General Laws to develop telecommunications and broadband infrastructure in partnership with the town of Leverett.
SECTION 19. Notwithstanding any general or special law to the contrary, the bonds that the state treasurer may issue pursuant to this act shall be issued for a term not to exceed 30 years. All such bonds shall be payable not later than June 30, 2049, as recommended by the governor in a message to the general court dated June 26, 2014 under section 3 of Article LXII of the Amendments to the Constitution.
Approved, August 6, 2014.