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CLT UPDATE
Saturday, July 11, 2020

AGAIN — Another end-run around Prop 2½


Jump directly to CLT's Commentary on the News


Most Relevant News Excerpts
(Full news reports follow Commentary)

The Senate will not take up a House-approved, half billion-dollar package of transportation tax and fee increases this lawmaking session, instead focusing attention on an omnibus borrowing bill that the Senate's Transportation Committee chairman believes can be fully funded without new revenues.

Sen. Joe Boncore, who like House Speaker Robert DeLeo lives in Winthrop, told the News Service that the $16.9 billion transportation bond bill that will hit the Senate floor next week will be the only major legislation his branch considers on that topic before the July 31 end of formal sessions for 2020.

The borrowing bill addresses the Senate's main policy and capital spending goals for transportation, Boncore said, adding that the multibillion-dollar budget shortfalls created by the COVID-19 pandemic pushed any tax hikes this year off the table.

"This COVID crisis has created a really unpredictable revenue situation for the commonwealth, and it's shifted, I think, the conversation from a discussion that was isolated to transportation improvement to a broader debate on what the state needs as a whole for revenue going forward," Boncore said.

"When the long-term economic outlook becomes clear and we can better assess what the state needs as a whole, post-COVID, then we can begin the conversation again about what revenues we'll need," he added.

The Senate's decision effectively kills any chances of final action in the 2019-2020 session toward generating new funding from transportation sources -- which would have included the first state gas tax increases since 2013 -- and directing it toward an aging transit system, suffocating congestion and crumbling infrastructure.

If they still wish to pursue more transportation revenue, an area that had been one of the most high-profile topics on Beacon Hill until the virus hit, lawmakers must start the process again from scratch next year....

After the Senate's proposed borrowing bill (S 2813) cleared its Ways and Means Committee on Friday, lawmakers scheduled it for a July 16 formal session.

The legislation would authorize $16.9 billion in borrowing to be directed to a range of road, bridge and public transit investments, though Boncore said the bottom line could grow via amendments on the floor....

Asked if the state could afford a minimum of $16.9 billion in borrowing over the next several years without additional revenue as the Senate suggested, Boncore answered, "absolutely."

"The conversation on revenue -- it's just not applicable to capital budgets," he said. "We did a very similar bond bill five years ago at $14 billion, and since then, revenues generally have grown over 20 percent. That more than compensates for the needs of this transportation bond bill." ...

The Senate's bond bill also includes a number of policy changes, some of which had been previously supported by the House and governor and some of which would be new steps for the Legislature....

In addition, cities and towns would gain authorization to embrace regional ballot initiatives under the Senate bill, effectively opening the gates for communities to propose and adopt their own taxes and fees aimed at funding transportation needs....

Lawmakers face a tight timeline to finalize a transportation borrowing bill. After July 31, they cannot take any recorded roll call votes, which renders almost all major legislation that may draw opposition impossible.

State House News Service
Friday, July 10, 2020
Senate to Tackle Transportation With Borrowing, Not Taxes
Boncore: COVID-19 Has Shifted Debate on Revenues


The Massachusetts Senate closed the door on an increase in the gas tax this year, citing the economic wreckage from the coronavirus for departing from counterparts in the House, who want a higher level to finance a package of transportation improvements.

The House of Representatives had previously voted to raise the gas tax by 5 cents, among other revenue measures, and the Senate also seemed likely to raise revenues for a transportation bill. But that was four months ago, before the onslaught of the pandemic that has put hundreds of thousands of people out of work and slowed economic growth to a near halt.

For weeks, the Senate hinted it may eschew what once seemed an inevitable vote to raise the gas tax. And on Friday, Senator Joseph Boncore, the chamber’s transportation chairman, seemed to rule out any kind of revenue increase for now.

“You’re not going to see anything like that out of the Senate this session,” the Winthrop Democrat said in an interview. “You won’t see a gas tax [increase] when unemployment is 16 percent across the Commonwealth.”

The declaration came as the Senate unveiled a $17 billion bill to authorize borrowing on transportation projects across the state, including money for mega-projects such as the expansion of commuter rail service to Southeastern Massachusetts, and the rebuildng of the Massachusetts Turnpike through Allston....

The House argued that new revenue was required to fund such large-scale improvements. Boncore disagrees.

“We can absolutely afford this bill, even at $18 billion, without any new revenue,” he said.

The House and Senate now seem fated for a debate about who’s right. If the Senate does not consider a revenue increase, the House may balk at adding to the state’s debt levels at a time when existing tax revenues have also plummeted.

“If you’re going to spend more than a certain amount than the revenue permits these days, then it seems to me you have to find a way to pay for it,” said William Straus, the House’s transportation chairman. “I don’t see where the ability to spend at that level comes from.” ...

Boncore noted that Senate’s borrowing bill, which the chamber expects to vote on next week, could still eventually lead to new revenue as well. For example, it includes provisions that would allow local governments to band together and create regional ballot questions, asking local voters whether to raise taxes to fund targeted transportation projects.

The Boston Globe
Friday, July 10, 2020
Gas tax increase looks doubtful for this year
The Massachusetts Senate said it is not planning to approve a tax increase
to finance a package of ambitious transportation improvements.


. . . Also Friday, the Senate passed a bill to allow restaurants to offer to-go cocktails as a business boost in the coronavirus era. A $16.9 billion transportation bond bill was teed up for debate next Thursday with amendments due on Monday afternoon. . . .

State House News Service
Friday, July 10, 2020
Senate Session Summary
[Excerpt]


Speaking of differences of opinion, Sen. Joseph Boncore said out loud on Friday what had been becoming clearer for several weeks -- the Senate will not be taking up a transportation revenue bill this session.

The Senate is finally moving forward with a $17 billion, multi-year borrowing bill for infrastructure improvements, but new taxes and fees approved by the House in March have been put on ice in the upper chamber.

State House News Service
Friday, July 10, 2020
Weekly Roundup - A Bridge Too Far


The Democrats who run the Legislature and are prone to procrastination are again looking at another chaotic few weeks before formal sessions come to an end on July 31....

On top of all that, there's just one week on the 2020 calendar before Democrats cede some of their power to Republican Gov. Charlie Baker and the small GOP minority in the General Court. Baker has not often played hardball with Democrats, but could gain leverage over major bills if lawmakers fail to get those bills to his desk by July 20. To guarantee that they will be able to deal with any amendments or vetoes from the governor by July 31, lawmakers need to give themselves a 10-day cushion since Baker has ten days to act on any bill.

State House News Service
Friday, July 10, 2020
Advances - Week of July 12, 2020


Chip Ford's CLT Commentary

After investing every day all week searching for, reading, and aggregating all the Beacon Hill news relevant to taxpayers late yesterday a bombshell exploded in my face and negated all that news and work which preceded.

The Senate Ways and Means Committee's released its report on a Senate transportation bond bill (S-2813), entirely replacing the House's version (H-4547) — which revealed a major new assault on our Proposition 2½.

Section 5 of the Senate's transportation bond bill is titled "Local and Regional Transportation Initiatives."  Its twelve pages of the 61-page bill creates a new means of circumventing Prop 2½ by providing cities and towns a method of funding municipal transportation costs through — basically — another form of override/debt exclusion, outside and beyond the restrictions of Proposition 2½.

It's a way of moving municipal roadway funding and maintenance, snow-plowing and potholes "off-budget," freeing up property tax and excise tax revenue to be spent on other things.  In part it states:

Section 2(c): "Notwithstanding chapters 59, 60A, 62 or 64H or any other general or special law to the contrary, the governing body of a city or town may vote to accept this chapter authorizing a surcharge on a single subject of taxation. A governing body that intends to accept this chapter 23 of 61 shall determine a single subject of taxation to be levied and the amount and rate of surcharge on the single subject of taxation prior to approval by the voters. If the identified single subject of taxation is a real or personal property excise, the amount of the surcharge shall not be included in a calculation of total taxes assessed for purposes of section 21C of chapter 59."

Note the cited chapters that are "notwithstanding" (translation: can be ignored).  The final one, above, is the most obvious:

". . . If the identified single subject of taxation is a real or personal property excise, the amount of the surcharge shall not be included in a calculation of total taxes assessed for purposes of section 21C of chapter 59."

Section 21C of Chapter 59 is the heart of Proposition 2½:   Section 21C: Limitations on total taxes assessed; determination by voters.

The opening chapters cited — "Notwithstanding chapters 59, 60A, 62 or 64H or any other general or special law to the contrary" refer to:

Chapter 59: ASSESSMENT OF LOCAL TAXES

Chapter 60A: EXCISE TAX ON REGISTERED MOTOR VEHICLES IN LIEU OF LOCAL TAX

Chapter 62: TAXATION OF INCOMES

Chapter 64H: TAX ON RETAIL SALES OF CERTAIN TANGIBLE PERSONAL PROPERTY

The first two of those are directly tied to Prop 2½.

Your property tax or your auto excise are target-rich environments for increase, "notwithstanding" Proposition 2½.

Under S-2813 any one of the following classes of taxation can be unilaterally increased by a city or town, or jointly if two or more form together as a "district," upon approval of the voters:  “'Single subject of taxation', sales, real or personal property, room occupancy or vehicle excise."

A qualifying “transportation project” is defined as "a project or program for the planning, design or construction of public or mass transportation transit systems, transit-oriented development, roads, bridges, bikeways, pedestrian pathways or other transportation-related projects."

Any new municipal tax adopted will be in addition to the limits imposed by Proposition 2½.

You can find and read or download a copy of S-2813 with my highlights of the most relevant parts (starting on Page 21 through 33) HERE.

The full text of Section 5 can also be found at below, at the bottom of the full news reports.

If the Legislature can move "roads and bridges" funds off-budget for municipalities (much like enterprise funds), how long before there's a separate tax for, say "education" or fire and police public safety" — all the traditional things expected from municipal government's role?  You want schools, police, a fire department, then vote to pay more while your city or town officials spend its usual budget on pay raises and benefits for its public employees or other boondoggles.

The bill was released yesterday.  Senators have until Monday afternoon to file any amendments.  The Senate is expected to vote on S-2813 on Thursday in a formal session.

CLT will send out a memo to every senator, and as a news release statewide, I expect tomorrow.

Please contact your own senator and tell him or her that you oppose Section 5 "Local and Regional Transportation Ballot Initiatives" ask them to remove it from the bill.

I expect the argument we will hear is:  "Proposition 2½ already has provisions for overrides and debt exclusions, so what's the problem?"

The answer is:  "Proposition 2½ already has provisions for overrides and debt exclusions, so what's the need?"

FIND YOUR STATE SENATOR HERE

The good news is that the Senate is butting heads again with the House, rejecting any tax increase whatsoever in its transportation bill.  That is a complete upending of the usual dynamic with the House (if either chamber) as the bulwark against tax hikes.  Nobody seems to know what this means for any transportation bill being agreed to before the clock runs out for the Legislature on July 31 — if in fact it does recess as required, and doesn't return until January.

Senate Transportation Committee Chairman Joe Boncore, when asked if the state could afford a minimum of $16.9 billion in borrowing over the next several years without additional revenue as the Senate asserted, replied, "absolutely."

"The conversation on revenue — it's just not applicable to capital budgets," Boncore said.  "We did a very similar bond bill five years ago at $14 billion, and since then, revenues generally have grown over 20 percent.  That more than compensates for the needs of this transportation bond bill."

The world truly has been turned upside-down.

The House on March 4 voted to raise the gas tax by 5 cents, among other revenue grabs, which was expected to generate $600 million annually toward its $18 billion transportation borrowing bill, so I see little if any room for compromise among the two acrimonious chambers and the time's running out.

There is so much I can add, but I want to get this to you ASAP.

Chip Ford
Executive Director


Full News Reports Follow
(excerpted above)

State House News Service
Friday, July 10, 2020
Senate to Tackle Transportation With Borrowing, Not Taxes
Boncore: COVID-19 Has Shifted Debate on Revenues
By Chris Lisinski


The Senate will not take up a House-approved, half billion-dollar package of transportation tax and fee increases this lawmaking session, instead focusing attention on an omnibus borrowing bill that the Senate's Transportation Committee chairman believes can be fully funded without new revenues.

Sen. Joe Boncore, who like House Speaker Robert DeLeo lives in Winthrop, told the News Service that the $16.9 billion transportation bond bill that will hit the Senate floor next week will be the only major legislation his branch considers on that topic before the July 31 end of formal sessions for 2020.

The borrowing bill addresses the Senate's main policy and capital spending goals for transportation, Boncore said, adding that the multibillion-dollar budget shortfalls created by the COVID-19 pandemic pushed any tax hikes this year off the table.

"This COVID crisis has created a really unpredictable revenue situation for the commonwealth, and it's shifted, I think, the conversation from a discussion that was isolated to transportation improvement to a broader debate on what the state needs as a whole for revenue going forward," Boncore said.

"When the long-term economic outlook becomes clear and we can better assess what the state needs as a whole, post-COVID, then we can begin the conversation again about what revenues we'll need," he added.

The Senate's decision effectively kills any chances of final action in the 2019-2020 session toward generating new funding from transportation sources -- which would have included the first state gas tax increases since 2013 -- and directing it toward an aging transit system, suffocating congestion and crumbling infrastructure.

If they still wish to pursue more transportation revenue, an area that had been one of the most high-profile topics on Beacon Hill until the virus hit, lawmakers must start the process again from scratch next year.

One day before it approved its own version of an $18 billion borrowing bill in March, the House passed a bill authorizing hikes to the state's gasoline and diesel taxes, corporate minimum excise tax and ride-hailing fees as well as applying the sales tax to purchase of rental cars.

Democratic leaders at the time projected the increases would generate $522 million to $612 million per year in revenue , though their bill did not prescribe how to spend all of that additional money.

The legislation had been developed behind closed doors for months and ultimately passed 113-40.

While criticizing the Senate's unsuccessful attempts to increase road and bridge repair funding without a parallel revenue boost, House Speaker Robert DeLeo said last month he does not believe the tax and fee hikes can wait.

"I don't think we can take a year off in terms of paying attention to this issue," DeLeo said. "Most importantly, as part of the House bill, we had a mechanism, we took the tough vote, in terms of making sure there was financing to back up exactly what we did."

After the Senate's proposed borrowing bill (S 2813) cleared its Ways and Means Committee on Friday, lawmakers scheduled it for a July 16 formal session.

The legislation would authorize $16.9 billion in borrowing to be directed to a range of road, bridge and public transit investments, though Boncore said the bottom line could grow via amendments on the floor.

Many of the largest figures mirror what the House approved, including $5.6 billion for federal highway system projects and $695 million for the Green Line Extension project. The Senate version increased funding for non-federally aided highways $250 million over the House version to $2 billion and added another $25 million to the South Coast Rail expansion, bringing the project's total funding in the bill to $850 million.

The MBTA would receive $3.26 billion, plus a $300 million direct capital transfer under the Senate's bill.

In March, the House Ways and Means Committee prepared a $14.5 billion version of a transportation bond bill that increased to about $18 billion through amendments. Gov. Charlie Baker also proposed a roughly $18 billion version of a multi-year transportation borrowing bill with similar levels of capital investment.

House leaders argued in the spring that the governor's suggestion called for too much borrowing and spending and that the money "isn't fully there" to support it without more revenue.

Asked if the state could afford a minimum of $16.9 billion in borrowing over the next several years without additional revenue as the Senate suggested, Boncore answered, "absolutely."

"The conversation on revenue -- it's just not applicable to capital budgets," he said. "We did a very similar bond bill five years ago at $14 billion, and since then, revenues generally have grown over 20 percent. That more than compensates for the needs of this transportation bond bill."

Debt service payments on long-term capital spending are made out of the state's operating budget, and the dynamics around that budget have been shaken by the pandemic, the economic shutdowns it forced, and estimates that state tax collections will fall by billions of dollars, making big investments a lot more unlikely.

The Senate's bond bill also includes a number of policy changes, some of which had been previously supported by the House and governor and some of which would be new steps for the Legislature.

Under the bill, the MBTA would be able to pay capital worker salaries from bond sources instead of from operating funds, a change T officials have been pushing for to free up resources and lessen pressure on the budget.

The Senate included language imposing new data-collection requirements on ride-hailing companies such as Uber and Lyft and decriminalizing fare evasion on the MBTA, both of which Baker proposed in separate pieces of legislation.

Boncore said the Senate and governor "see eye to eye" on the importance of reducing punishments for failure to pay a public transit fare.

The new bond bill also orders the state Department of Transportation to implement a means-tested fare option on both regional transit authorities and the MBTA by 2022. Transportation leaders have been exploring a similar idea, but the Senate proposal sets a firm statutory deadline for low-income fares to become a reality.

MassDOT would also need to study deploying a mileage-based revenue system, where drivers pay based on how much distance they drive rather than based on the use of specifically tolled roads. A separate commission would study and make recommendations about the adoption of "regionally equitable roadway pricing and congestion pricing mechanisms."

Senate President Karen Spilka, an Ashland Democrat whose region relies on the tolled Massachusetts Turnpike, has pushed for more highways that currently are not tolled to impose charges on drivers as a way of fairly distributing costs.

In addition, cities and towns would gain authorization to embrace regional ballot initiatives under the Senate bill, effectively opening the gates for communities to propose and adopt their own taxes and fees aimed at funding transportation needs.

Boncore said that the Senate's bond bill and many other pieces of legislation have been refracted "through a special lens dealing with racial justice" following widespread protests against police brutality and systemic racism. The bill highlights equity issues by decriminalizing fare evasion and prioritizing low-income fares, he said.

"With the ridership being so depleted in the COVID crisis, how people are going to return to work, who the customers are -- we're going to be dealing with, not just on the core system of the MBTA but on the commuter rail system, that could look very different post-COVID," Boncore said. "We want to address and ensure that all people have access in an equitable way to public transportation."

Lawmakers face a tight timeline to finalize a transportation borrowing bill. After July 31, they cannot take any recorded roll call votes, which renders almost all major legislation that may draw opposition impossible.

Baker has pushed for billions in borrowing to fund transportation capital projects, but his views on proposals such as mandatory low-income fares or congestion pricing are less clear.

If Democratic leaders that hold supermajorities in both branches want to guarantee passage of any of those pieces, they would need to get the bill to Baker with at least 10 days before the end of sessions so they could have a chance to override a potential gubernatorial veto.

That veto-proof deadline falls around July 20, which would leave the House and Senate only a few days to complete private negotiations on a final version once the Senate approves its bill.

"We have no choice but to reach a compromise on a bond bill because it funds our major transportation infrastructure for the next five years," Boncore said. "We know what that state of disrepair number is, and it's growing every day we don't we don't do something."


The Boston Globe
Friday, July 10, 2020
Gas tax increase looks doubtful for this year
The Massachusetts Senate said it is not planning to approve a tax increase
to finance a package of ambitious transportation improvements.
By Adam Vaccaro


The Massachusetts Senate closed the door on an increase in the gas tax this year, citing the economic wreckage from the coronavirus for departing from counterparts in the House, who want a higher level to finance a package of transportation improvements.

The House of Representatives had previously voted to raise the gas tax by 5 cents, among other revenue measures, and the Senate also seemed likely to raise revenues for a transportation bill. But that was four months ago, before the onslaught of the pandemic that has put hundreds of thousands of people out of work and slowed economic growth to a near halt.

For weeks, the Senate hinted it may eschew what once seemed an inevitable vote to raise the gas tax. And on Friday, Senator Joseph Boncore, the chamber’s transportation chairman, seemed to rule out any kind of revenue increase for now.

“You’re not going to see anything like that out of the Senate this session,” the Winthrop Democrat said in an interview. “You won’t see a gas tax [increase] when unemployment is 16 percent across the Commonwealth.”

The declaration came as the Senate unveiled a $17 billion bill to authorize borrowing on transportation projects across the state, including money for mega-projects such as the expansion of commuter rail service to Southeastern Massachusetts, and the rebuildng of the Massachusetts Turnpike through Allston.

A transportation bill passed by the House of Representatives in March would have raised more than $600 million from the gas tax increase, new fees on Uber and Lyft rides, changes to the state’s corporate tax system, and other sources. The House also passed a sizable borrowing bill of its own.

The House argued that new revenue was required to fund such large-scale improvements. Boncore disagrees.

“We can absolutely afford this bill, even at $18 billion, without any new revenue,” he said.

The House and Senate now seem fated for a debate about who’s right. If the Senate does not consider a revenue increase, the House may balk at adding to the state’s debt levels at a time when existing tax revenues have also plummeted.

“If you’re going to spend more than a certain amount than the revenue permits these days, then it seems to me you have to find a way to pay for it,” said William Straus, the House’s transportation chairman. “I don’t see where the ability to spend at that level comes from.”

A smaller-scale version of this debate played out recently, when the House and Senate each separately voted to allow $300 million in borrowing to fund fixes to local roads, but settled on only $200 million later because of the budgetary impacts of the virus and uncertainty about transportation revenue.

Transit advocates have in recent weeks lobbied the Senate at public events and online campaigns to take up the House bill, and were unhappy with Boncore’s position Friday.

“The House stepped up in the pre-COVID era with ideas it put on the table, and it’s disappointing that, at least for now, the Senate isn’t doing its part,” said Chris Dempsey, director of the advocacy group Transportation for Massachusetts. “What we’ve heard from the Senate for months now, pre-COVID and even during COVID, is that the transportation status quo is not working. More investments and resources for transportation have to be part of the broader solution.”

Two other potential transportation revenue sources still linger outside the Legislature. The Baker administration is working with several other state governments on a regional policy that would establish a cap-and-trade system on fuel distributors to invest in transit, electric vehicles, and other green transportation initiatives. Although Governor Charlie Baker has said he opposes a gas tax increase, this initiative would result in higher prices at the pump for motorists.

Meanwhile, progressive activists continue to push for a 2022 ballot question that would raise the income tax on earnings over $1 million and funnel the money toward transportation and education.

Boncore noted that Senate’s borrowing bill, which the chamber expects to vote on next week, could still eventually lead to new revenue as well. For example, it includes provisions that would allow local governments to band together and create regional ballot questions, asking local voters whether to raise taxes to fund targeted transportation projects. The bill would also establish a commission that the House included in its bill to study new ways to use tolls, such as a congestion pricing system that puts a price on entering crowded urban areas.

The Senate bill also includes provisions meant to help needy travelers, such as requiring the MBTA to work with health and human service officials to establish a low-income fare. The T has long said it plans to launch such an initiative, but recent debates at the agency have centered on how to pay for it.


State House News Service
Friday, July 10, 2020
Weekly Roundup - A Bridge Too Far
Recap and analysis of the week in state government
By Matt Murphy


Rebuilding the two bridges over the Cape Cod canal? Sure.

Rebuilding the foundation of policing in Massachusetts? Not as easy.

The Baker administration and the Army Corps of Engineers reached an agreement this week that will see the federal agency assume the responsibility of replacing the two aging bridges that connect Cape Cod with the rest of Massachusetts.

After the years-long construction project at a cost of $1.4 billion to $1.6 billion to the Corps is complete, the state will assume ownership and control of the Bourne and Sagamore spans, hoping they'll last another 85 years.

"It's a new chapter in Cape Cod's history," U.S. Rep. William Keating said, giving his enthusiastic endorsement of the arrangement.

Writing the new script for how police should behave and be held accountable for that behavior proved to be a more daunting task. The week began with high hopes for supporters anxious to solidify a response to the police violence that led to weeks of street demonstrations, but it ended in frustration.

Senate President Karen Spilka, Sen. Sonia-Chang Diaz and Sen. William Brownsberger on Monday rolled out an expansive effort that would license law enforcement officers at all levels of government and ban the use of tactics like chokeholds that have come under scrutiny since the killing of George Floyd.

But the 73-page bill also would do much more. So much more. And the wide-ranging set of ideas for how to improve policing in Massachusetts, including new limits on qualified immunity from civil suits, didn't stop senators from filing 145 amendments before the debate was supposed to start on Thursday.

For Sen. Ryan Fattman, enough was enough. The Sutton Republican laid the bill on the table Thursday afternoon, and put a hold on it again Friday, setting up a rare Saturday session when he may simply elect to delay again.

"We all want to get to yes. We're just not there yet. It's not ready for prime time. Hopefully we get there," Fattman said. And he wasn't alone.

Sen. John Keenan, a Quincy Democrat, came to Fattman's defense, demonstrating that it wasn't just the Republicans suggesting senators deserved more time to review such a consequential bill.

This type of holdup seemed to be exactly what Rep. Carlos Gonzalez had in mind when he wrote to Spilka, House Speaker Robert DeLeo and Gov. Charlie Baker earlier in the week and asked them not to let the pressure to bulk up the police bill jeopardize the five or six core reforms sought by the Massachusetts Black and Latino Legislative Caucus.

Gov. Baker agreed with Gonzalez, who chairs the MBLLC, writing back that he thought this was a "rare opportunity to act quickly and concisely" to create a structure to license police across Massachusetts and hold them to a set of standards.

While that still may be possible, the chance to do it quickly and concisely may be gone. And with the House yet to write its own bill, the July 31 deadline to get Baker something he can sign seems awfully close.

Secretary of State William Galvin, however, demonstrated this week how even after the Legislature passes a bill and the governor signs it into law, there can still be holdups.

Baker signed a major expansion of voting-by-mail for the late summer and fall elections, but now there's a question about whether Galvin, the state's chief elections officer, will be able to comply with the new law.

Galvin said he doesn't have the money to mail the applications for mail-in ballots to the more than 4.5 million registered voters, and the Legislature hasn't authorized any money for him to spend. The applications are supposed to be in the mail by next Wednesday, but the secretary disagrees with voting rights advocates who believe the $8.2 million in CARES Act funding received by the state for voting expenses can be used to mail the applications.

Galvin believes there's a difference between mailing actual ballots, and mailing an application for a ballot. Enter U.S. Rep. Joseph Kennedy III, who jumped in with an "urgent request" seeking clarity from the U.S. Election Assistance Commission over whether CARES Act funds can be used for the postage on ballot applications.

In the meantime, Galvin has made the application available for download on his website.

Speaking of differences of opinion, Sen. Joseph Boncore said out loud on Friday what had been becoming clearer for several weeks -- the Senate will not be taking up a transportation revenue bill this session.

The Senate is finally moving forward with a $17 billion, multi-year borrowing bill for infrastructure improvements, but new taxes and fees approved by the House in March have been put on ice in the upper chamber.

The relationship between the House and Senate is probably colder than that between Gov. Baker and Gov. Janet Mills of Maine, but those two are also at odds over whether Massachusetts has contained the coronavirus, or is merely keeping its head above water.

After Mills kept Massachusetts residents on her list of vacationers who must still quarantine if they travel north to her waterfront state, Baker said he had a little chat with the governor: "I basically said, 'I'll put my data in Massachusetts up against your data any day.'"

In the wonkish world where Baker thrives, those sound like fighting words.

But does Mills have reason to worry about a second wave? Massachusetts is now the only New England state with a COVID-19 transmission rate that indicates rapid spread of the coronavirus is possible, according to the website Rt.live, which has been tracking state-level transmission trends.

And hotspots persist.

Baker this week launched a new testing initiative that will open standalone and mobile testing sites in eight communities where the numbers of new cases, positive testing rates, and volume of testing worryingly trail the statewide averages.

Resident of Chelsea, Everett, Fall River, Lawrence, Lowell, Lynn, Marlborough, and New Bedford are being encouraged to take advantage of the free testing, even if they are asymptomatic.

Baker concluded that Massachusetts residents don't need Maine anyway. There are plenty of nice spots in the Bay State to vacation for the summer, he said. That is if it's safe to go outside at all.

Between the sharks circling the waters off the Cape and the coronavirus in the air, people certainly did need another reason to worry about leaving the house. But they got one.

Eastern equine encephalitis and West Nile virus are both back and public health officials are cautioning people - in the middle of a streak of oppressive humidity - to keep their skin covered after dusk.

"The key to our message is about taking personal protective measures," Public Health Commissioner Monica Bharel said.

She was talking about protection against mosquito bites, but it's applicable to all present circumstances.

STORY OF THE WEEK: Justice reform delayed, but not yet denied.


State House News Service
Friday, July 10, 2020
Advances - Week of July 12, 2020
By Michael P. Norton


The next phase of Boston's economic reopening on Monday will enable Massachusetts to eventually ramp up economic and public activity to as close to full strength as possible, given the limitations that will remain in place to control the spread of COVID-19 until a treatment or vaccine is secured.

Massachusetts courtrooms will reopen with restrictions on Monday. And Wednesday marks both the annual state and federal tax return filing deadline, and the deadline for Secretary of State William Galvin to get Sept. 1 primary ballot applications in the mail to all voters.

The Democrats who run the Legislature and are prone to procrastination are again looking at another chaotic few weeks before formal sessions come to an end on July 31.

  Senate Republicans have prevented a policing reform bill from even being debated in that branch and a House proposal has yet to emerge, raising questions about the odds of that bill passing this month.

  The Senate has yet to take up a multi-year transportation bond bill that the House approved in March, but plans to do so Thursday.

  A fiscal 2021 budget proposal has yet to materialize more than a week into the new fiscal year.

  A $1.1 billion COVID-19 spending bill seems to have stalled out after passing both branches in differing forms.

  Neither branch has taken up an economic development bill.

  Ditto for sports betting.

  No one can say with any certainty whether Democrats can agree on a climate change bill this month, a goal that seemed a sure thing earlier this year.

  Similarly, new taxes and fees to power transportation investments once seemed likely but the Senate hasn't shown any appetite for a House-approved bill and it's starting to appear unlikely that Democrats will want to push a pandemic-era tax-raising bill -- and a potential fight with the governor on that topic -- over the next few weeks.

  Democrats have also so far held off on moving a housing production bill, despite constant prodding from Baker and years of evidence that housing costs are unaffordable to broad swaths of the population in Massachusetts.

On top of all that, there's just one week on the 2020 calendar before Democrats cede some of their power to Republican Gov. Charlie Baker and the small GOP minority in the General Court. Baker has not often played hardball with Democrats, but could gain leverage over major bills if lawmakers fail to get those bills to his desk by July 20. To guarantee that they will be able to deal with any amendments or vetoes from the governor by July 31, lawmakers need to give themselves a 10-day cushion since Baker has ten days to act on any bill.


S.2813

SECTION 5. The General Laws are hereby amended by inserting after chapter 64N the following chapter:-

CHAPTER 64O.

LOCAL AND REGIONAL TRANSPORTATION BALLOT INITIATIVES.


Section 1. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:

“District agreement”, a document specifying the terms and conditions of the powers and duties of at least 2 municipalities forming a district under section 4 pursuant to the laws governing any such municipalities, this chapter and such procedural regulations as the commissioner of revenue may promulgate.

“Governing body”, the city manager and city council in a city having a Plan D or Plan E charter, the mayor and city council in any other city, the select board or equivalent body in towns.

“Single subject of taxation”, sales, real or personal property, room occupancy or vehicle excise.

“Transportation project”, a project or program for the planning, design or construction of public or mass transportation transit systems, transit-oriented development, roads, bridges, bikeways, pedestrian pathways or other transportation-related projects.

Section 2. (a) This chapter shall take effect in a city or town upon the approval of its governing body and its acceptance by the voters of such city or town by a ballot question as set forth in section 3.

(b) A city or town may impose a tax surcharge on a single subject of taxation within the city or town; provided, however, that except as provided in section 4, no tax surcharge shall be imposed within the city or town unless it has first been approved by the governing body of the city or town and accepted by a majority of the voters of the city or town through a ballot question as set forth in section 3.

(c) Notwithstanding chapters 59, 60A, 62 or 64H or any other general or special law to the contrary, the governing body of a city or town may vote to accept this chapter authorizing a surcharge on a single subject of taxation. A governing body that intends to accept this chapter shall determine a single subject of taxation to be levied and the amount and rate of surcharge on the single subject of taxation prior to approval by the voters. If the identified single subject of taxation is a real or personal property excise, the amount of the surcharge shall not be included in a calculation of total taxes assessed for purposes of section 21C of chapter 59.

(d) A taxpayer shall be eligible for all exemptions and abatements of any single subject of taxation for which a taxpayer qualifies. A taxpayer receiving an exemption for any single subject of taxation shall be exempt from any tax surcharge on any single subject of taxation established under this section. The tax surcharge to be paid by a taxpayer receiving an abatement of any single subject of taxation shall be reduced in proportion to the amount of such abatement.

(e) Any amount of the tax surcharge not paid by the due date shall bear interest at the rate per annum as authorized by the law for any single subject of taxation.

(f) Revenues raised through the tax surcharge shall be separately accounted for and used by the city or town for transportation projects.

Section 3. (a) Upon approval of the single subject of taxation to be levied and the amount and rate of surcharge on the single subject of taxation by the governing body, the following question shall be placed on the official ballot by the city or town clerk or the state secretary for acceptance by the voters of the city or town at the next regularly scheduled municipal or state election in the following form:--

“Shall the (city or town) of _______ accept sections 2 to 5, inclusive, of chapter 64O of the General Laws, as approved by its (governing body), a summary of which appears below

(Set forth here a fair, concise summary and purpose of the law to be acted upon, as determined by the city solicitor or town counsel, including the specific single subject of taxation to be levied and the percentage of the surcharge to be imposed.)”

In the ballot question, the city or town may include a list of specific transportation projects for which the tax surcharge funds may be used or a general description of the types of transportation projects for which the tax surcharge may be used. The city or town may also include a sunset provision in the ballot question, but the authorization for the tax surcharge shall not exceed 30 years.

If a majority of the votes cast in answer to the question vote is in the affirmative, this chapter shall take effect in the city or town, or district as set forth in section 4, but not otherwise.

(b) The final date for notifying or filing a petition with the city or town clerk or the state secretary to place this question on the ballot shall be 60 days before the city or town election or 100 days before the state election. For those petitions that will appear on the ballot for the state election, notice shall be provided by filing with the state secretary a certified copy of the governing body’s approval and a copy of the summary as provided in subsection (a).

Section 4. (a) Two or more municipalities may, with the approval of the governing body of each such municipality, form a district for the purposes of implementing this chapter.

(b) For the purposes of subsection (a), if a majority of the votes cast in the district on the question in the affirmative, this chapter shall take effect in the district, but not otherwise.

(c) Two or more municipalities that choose to form a district under this chapter shall apply a tax surcharge to their preferred single subject of taxation. The amount and percentage of the tax surcharge may vary for each municipality that comprises the district.

(d) Two or more municipalities forming a district under this chapter shall adopt a district agreement with the approval of the applicable governing bodies prior to presentment to the voters of the 2 or more municipalities by a ballot question pursuant to section 3. The district agreement shall specify: (i) the purpose and nature of the agreement; (ii) the single municipality to serve as the treasurer of the transportation fund or the regional planning agency to serve as the fiscal agent of the transportation fund under section 7 and that said municipality or regional planning agency shall also serve as the treasurer or fiscal agent for purposes of section 9; (iii) how the transportation fund will be used and for what purposes and how the municipalities will decide on details of use, plan changes or urgent circumstances; (iv) the work to be performed and the division or sharing of responsibility among the municipalities; (v) the estimated costs and the methods of financing the transportation projects; (vi) the method of administration of the transportation fund and the transportation projects to be paid for through the fund; (vii) the composition of the district’s transportation committee, the length of its term and the criteria and method of selecting its members; (viii) the duration of the proposed agreement; and (ix) the amount, type and percentage of the tax surcharge for each municipality that comprises the district.

(e) Nothing in this section shall be construed to: (i) amend, repeal or otherwise alter the authority or jurisdiction of, or establish, a municipality; or (ii) confer any management authority over transportation projects beyond the authority exercised by participating municipalities in the district agreement pursuant to this chapter.

Section 5. (a) Upon acceptance of this chapter, the satisfaction of the requirements of this chapter and the assessors’ warrant to the tax collector, the accepted tax surcharge shall be imposed in the city or town. The city, town or district shall notify the commissioner of revenue of the date and terms on which the voters accepted this chapter.

(b) For a tax surcharge levied on either the property tax or excise, after receipt of the warrant, the tax collector shall collect the tax surcharge in the amount and according to the computation specified in the warrant and shall pay the amounts so collected, quarterly or semi-annually, according to the schedule for collection of the single subject of taxation, to the treasurer of the city, town or district. The tax collector shall maintain appropriate books and accounts with respect to the tax surcharge, which shall be subject to public examination upon reasonable request.

(c) Two or more municipalities forming a district shall select 1 of the municipalities or the regional planning agency to serve as the district’s treasurer for the purposes of this chapter. The district agreement shall establish the method of selecting the district treasurer. The municipality or regional planning agency selected to serve as the district treasurer shall perform the duties thereof in accordance with section 5 and in accordance with chapter 41. Two or more municipalities forming a district shall also select that same municipality or regional planning agency to receive funds and provide certification for all municipalities within the district for the purposes of section 9 and in accordance with section 4.

Section 6. (a) A city or town that accepts this chapter, either on its own or as part of a district, shall, within 90 days after such acceptance, establish by ordinance or by-law and, in the case of a district, the ordinance or by-law shall be established by all member municipalities, a transportation committee. The committee shall consist of not less than 5 members. The ordinance or by-law shall determine the composition of the committee, the length of the term of appointment of the members and the criteria and method of selecting the members. The committee shall include, but not be limited to, at least: (i) 1 representative from the municipality; (ii) 1 member of each regional transit authority to which the city or town is a member community, if any; (iii) 1 member of the regional planning agency to which the city or town is a member community; and (vi) any other such persons, as determined by the ordinance or by-law.

(b) Each transportation committee shall study the transportation-related needs, possibilities and resources of the city, town or district. The committee shall consult with existing transportation agencies including, but not limited to, regional planning agencies, to develop transportation projects in accordance with the ballot initiative. If a list of transportation projects for which the tax surcharge funds may be used was included in a ballot question, the committee shall include those projects in its study; provided, however, that the committee shall not be required to recommend those projects unless otherwise required by the ballot initiative.

(c) Each transportation committee shall be subject to subsection (a) of section 19 of chapter 30A. Each transportation committee shall keep a full and accurate account of all of its actions, including its recommendations and the actions taken on them and records of all appropriations or expenditures made from the Local and Regional Transportation Fund as set forth in section 7. The records and accounts of the committee shall be public records.

(d) Each city, town or district, as applicable, shall consult with the entity proposed to own and maintain the transportation project prior to listing any transportation project on the ballot as set forth in this chapter. If any such city, town or district includes no specific transportation projects in the ballot question, the transportation committee shall receive the approval of the regional planning agency prior to submitting the local transportation committee’s recommendations to a governing body unless the transportation-related project or activity is solely under local jurisdiction. The city, town or district shall study projects that promote access to public transportation, biking and walking.

(e) At least once every 2 fiscal years, each transportation committee shall make recommendations to the governing body of the applicable city, town or district regarding efficient and effective ways to improve and enhance local transportation systems in the city, town or district. Recommendations to the governing body of the city, town or district shall include anticipated costs over the life cycle of the transportation project. The committee may include in its recommendation to the governing body a recommendation to set aside for the later spending of funds for specific purposes that are consistent with transportation-related purposes but for which sufficient revenues are not currently available in the Local and Regional Transportation Fund to accomplish those specific purposes, to satisfy debt payments incurred from transportation-related projects or to set aside for later spending funds for general purposes that are consistent with transportation improvements and in accordance with the ballot initiative.

(f) After receiving such recommendations from the transportation committee, the governing body of a city, town or district shall take such action and approve such appropriations from the Local and Regional Transportation Fund as may be necessary and appropriate for the recommendations of the transportation committee and such additional appropriations as the governing body deems appropriate to carry out the recommendations of the transportation committee and in accordance with the ballot initiative.

Section 7. (a) Notwithstanding section 53 of chapter 44 or any other general or special law to the contrary, a city, town or district that accepts this chapter shall establish a Local and Regional Transportation Fund, of which the municipal treasurer or fiscal agent shall be the custodian. The authority to approve expenditures from the fund shall be limited to the governing body of any city or town, or the designated municipal treasurer or regional planning agency of the district, as applicable, and the municipal treasurer or fiscal agent shall pay such expenditures in accordance with chapter 41.

(b) Two or more municipalities forming a district shall select 1 of the municipalities or a regional planning agency to establish a Local and Regional Transportation Fund. The municipality or regional planning agency selected to establish the fund shall only use the funds for the district as a whole through the designated fiscal agent and based solely upon the recommendations and approvals of the transportation committee as set forth in this chapter. Administration of the fund by the fiscal agent may, at the option of the governing body of any member city or town, be subject to the further approval of the governing body.

(c) The following funds shall be deposited in the Local and Regional Transportation Fund: (i) all funds collected from the tax surcharge on any single subject of taxation pursuant to section 3; provided, however, that if the single subject of taxation is a tax collected at the state level, such funds shall be deposited with the department of revenue in accordance with sections 8 and 9; and (ii) all funds received from the commonwealth or any other source for such purposes. The treasurer or fiscal agent may: (i) deposit or invest the proceeds of the fund in savings banks, trust companies incorporated under the laws of the commonwealth, banking companies incorporated under the laws of the commonwealth that are members of the Federal Deposit Insurance Corporation or national banks; or (ii) invest the proceeds in paid-up shares and accounts of and in co-operative banks, in shares of savings and loan associations or in shares of federal savings and loan associations doing business in the commonwealth or in the manner authorized by section 54 of chapter 44; provided, however, that any income derived there from shall be credited to the fund.

The expenditure of revenues from the fund shall be limited to implementing the recommendations of the transportation committees, to providing administrative and operating expenses to the committees and in accordance with the ballot initiative. The city or town, or the municipal treasurer or regional planning agency of the district as set forth in section 4, shall not divert revenues derived from the tax surcharge into any other fund created by law or ordinance.

(d) Only those cities, towns and districts that adopt the tax surcharge allowed by this chapter shall be eligible to receive funds through the Local and Regional Transportation Fund.

Section 8. (a) There shall be a Massachusetts Local and Regional Transportation Trust Fund, for the benefit of cities, towns and districts that have accepted this chapter and imposed a surcharge on a tax collected by the commonwealth, subject to any exemptions adopted by the city, town or district. The fund shall consist of all of the following revenues received by the commonwealth from: (i) the tax surcharge pursuant to section 3; (ii) public and private sources as gifts, grants and donations to further local or regional transportation projects; and (iii) any other fund or source credited or transferred to it pursuant to law.

(b) The state treasurer shall deposit revenues received by any such tax surcharge into the fund in accordance with section 9 in such manner as will secure the highest interest rate available consistent with the safety of the fund and with the requirement that all amounts on deposit be available for withdrawal without penalty for such withdrawal at any time. All interest accrued and earnings thereon shall be deposited into the fund. The fund shall be administered in a manner to separately account for revenues raised by each city, town or district and held for the benefit of such city, town or district. The fund shall be expended solely for the administration and implementation of this chapter. Any unexpended balances shall be redeposited for future use by the city, town or district consistent with this chapter.

(c) The state treasurer shall make all disbursements and expenditures from the fund without further appropriation, as directed by the commissioner of revenue in accordance with section 9. The department of revenue shall report by source all amounts credited to said fund and all expenditures from said fund. The commissioner of revenue shall assign personnel of the department as it may need to administer and manage the fund disbursements and any expense incurred by the department shall be deemed an operating and administrative expense of the program. The operating and administrative expenses shall not exceed 3 per cent of the annual total revenue deposited into the fund.

Section 9. (a) Upon certification of the commissioner of revenue, all funds received by the commissioner under this chapter shall, not less than quarterly, be distributed, credited and paid by the state treasurer to each city or town, or to the municipal treasurer or regional planning agency of a district. The city or town or the municipal treasurer or regional planning agency of a district shall notify the commissioner of its acceptance of the funds.

(b) The state treasurer, upon certification of the commissioner, shall distribute the funds to the city or town or to the municipal treasurer or regional planning agency of the district based on the proportional amount the city, town or district has raised by imposing the tax surcharge. The total distribution of funds shall include all sources of revenue raised in the previous year as set forth in subsection (a) of section 8, less not more than 3 per cent of the annual total revenue of the fund, as set forth in subsection (c) of said section 8. Any city, town or district seeking to dispute the commissioner's calculation of its distribution under this subsection shall notify the commissioner, in writing, not later than 1 year from the date the funds were distributed by the commissioner to the city, town or district.

(c) The commissioner shall not divert revenues derived from the tax surcharge into any other fund created by law.

(d) Notwithstanding any general or special law to the contrary, the commissioner may make available to cities, towns and districts any information necessary for the administration of the tax surcharge authorized by this chapter including, but not limited to, a report of the amount of the surcharge on tax collected in the aggregate by each city, town or district in the preceding fiscal year and the identification of each individual vendor collecting the surcharge on sales tax collected under this chapter.

Section 10. (a) At any time after imposition of the tax surcharge, the governing body of each city or town may approve and the voters may accept an amendment to the amount and computation of the tax surcharge in the same manner and subject to the same requirements as set forth in this chapter.

(b) At any time after imposition of the tax surcharge, a district under section 4, with the approval of the majority of voters in the district may accept an amendment to the amount and computation of the tax surcharge in the same manner and subject to the same requirements as set forth in this chapter so that the surcharge becomes uniform in all municipalities of the district.

Section 11. The commissioner of revenue may promulgate rules and regulations to implement this chapter.


NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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