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The 190th General Court of the Commonwealth of Massachusetts

AN ACT FINANCING IMPROVEMENTS TO CERTAIN MUNICIPAL ROADS.

      Whereas, The deferred operation of this act would tend to defeat its purpose, which is to finance forthwith improvements to the commonwealth’s transportation system, 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 transportation development and improvements, the sum set forth in section 2, for the several purposes and subject to the conditions specified in this act, is hereby made available, subject to the laws regulating the disbursement of public funds. The sum made available in this act shall be in addition to any amounts previously appropriated or made available for these purposes.
      SECTION 2.

MASSACHUSETTS DEPARTMENT OF TRANSPORTATION

Division of Highways

6122-1724
For the construction and reconstruction of municipal ways as described in clause (b) of the second paragraph of section 4 of chapter 6C of the General Laws; provided, that a city or town shall comply with the procedures established by the Massachusetts Department of Transportation; provided further, that a city or town may appropriate for these projects amounts not in excess of the amount provided to the city or town under this item; provided further, that the appropriation shall be considered as an available fund upon approval of the commissioner of revenue under section 23 of chapter 59 of the General Laws; and provided further, that the commonwealth shall reimburse a city or town under this item, subject to the availability of funds as provided in section 9G of chapter 29 of the General Laws, within 30 days after receipt by the department of a request for reimbursement from the city or town, which request shall include certification by the city or town that actual expenses have been incurred on projects eligible for reimbursement under this item and that the work has been completed to the satisfaction of the city or town according to the specifications of the project and in compliance with applicable laws and procedures established by the department
$200,000,000

      SECTION 3.  To meet the expenditures necessary in carrying out 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 $200,000,000. All bonds issued by the commonwealth as aforesaid shall be designated on their face, Municipal Ways Act of 2016, and shall be issued for a maximum term of years, not exceeding 30 years, as recommended by the governor in a message to the general court dated February 12, 2016 under Section 3 of Article LXII of the Amendments to the Constitution.  All such bonds shall be payable not later than June 30, 2051. All interest and payments on account of principal on these obligations shall be payable from the General Fund. Notwithstanding any general or special law to the contrary, bonds issued under this section and interest thereon shall be general obligations of the commonwealth.
      SECTION 4.  Notwithstanding any general or special law to the contrary, all construction contracts funded in whole or in part by the funds authorized in section 2 shall include a price adjustment clause for each of the following: (i) fuel, including both diesel and gasoline; (ii) asphalt; (iii) concrete; and (iv) steel. A base price for each material shall be set by the awarding authority or agency and included in the bid documents at the time a project is advertised. The awarding authority or agency shall also identify in the bid documents the price index to be used for each material and supply. The adjustment clause shall provide for a contract adjustment to be made on a monthly basis when the monthly cost change exceeds plus or minus 5 per cent.

Approved, April 14, 2016.