THE MASSACHUSETTS INTERCITY BUS CAPITAL ASSISTANCE PROGRAM

M.G.L. pt. Part I, tit. Title XXII, ch. c. 161D

in effect

M.G.L. c. 161D, § 1 Declaration of need and intent

c. 161D, § 1. Declaration of need and intent Section 1. It is hereby declared that intercity bus transportation services offer economic and environmental advantages with respect to energy conservation and efficiency, air and noise pollution, public safety and costs per passenger mile of movement to the extent that the preservation, development, promotion and maintenance of such services is a public purpose and in the public interest; that essential intercity or intrastate bus transportation services for the movement of passengers are threatened by a crisis within the commonwealth's intercity bus carriers industry brought about a rapid inflation of the cost of intercity bus equipment and severe fluctuations in the interest rates of our national financial market, hence, these economic conditions have severely retarded the ability of intercity carriers to purchase new vehicular equipment in order to maintain modern fleets attractive to the general public and accrue adequate returns of investment, consequently limiting said carriers from expanding these critical transportation services to the travelling public; these needs cannot be met without constructive action by the commonwealth; and that is the intent of the general court to provide for such actions through an act which authorizes a public agency to ensure intercity bus carriers with the necessary capital equipment to improve and further develop these essential public transportation services within the commonwealth.

M.G.L. c. 161D, § 2 Definitions

c. 161D, § 2. Definitions Section 2. Whenever used in this chapter, unless the context otherwise requires, the following words or terms shall have the following meaning:— ''Executive office'', the office of planning and programming established under chapter six C. ''Intercity coach'', any vehicle with a seating capacity of forty or more, and which is appropriate for the provision of long distance highway travel or commuting. ''Intercity bus carrier'', any entity possessing legally required certification, issued by an agency of the commonwealth, or any political subdivision thereof, for the carriage of passengers for hire between fixed and regular termini. ''Intercity service'', the movement of passengers between two or more distinct municipalities. ''Secretary'', the administrator of transportation for mass transit within the department of transportation.

M.G.L. c. 161D, § 3 Expenditure of funds

c. 161D, § 3. Expenditure of funds Section 3. The executive office is hereby authorized to expend such funds as may be appropriated or otherwise made available for the acquisition of intercity coaches, and for necessary planning and other costs incidental to said acquisition, and to lease said coaches to eligible intercity bus carriers as provided in this chapter.

M.G.L. c. 161D, § 4 Rules and regulations

c. 161D, § 4. Rules and regulations Section 4. The executive office, through the secretary, shall, in addition to any other powers and duties conferred or imposed upon him by this chapter or any other general or special law, promulgate rules and regulations deemed necessary to administer a Massachusetts intercity bus capital assistance program; provided, however, that said rules and regulations be subject to the following limitations: (1) Any one eligible carrier may not receive more than twenty-five per cent of the total vehicles available in any one year; (2) Only carriers with their central facilities and office headquarters located in Massachusetts are eligible for the program; (3) Carriers must complete applications, the form of which shall be determined by the secretary. Failure to provide all requested information shall disqualify a carrier from eligibility. Said application must contain the following information, in addition to any other information deemed necessary or desirable by the secretary: (a) The carrier must declare the service for which the vehicle is primarily being leased to operate. The principal purpose for obtaining the vehicle must be for regularly-scheduled intercity service with a minimum of eighty per cent of said route falling within the boundaries of the commonwealth. (b) In the case of existing services, carriers must document that ridership demand exceeds the presently available supply of vehicles or that the average age of the carrier's intercity fleet exceeds recommended industry standards. In the case of new services, evidence must be presented documenting the existence of sufficient demand to justify such a service. The secretary shall determine if these conditions have been documented. (c) The carrier must present a certificate of public convenience and necessity for the proposed route issued by the appropriate Massachusetts regulatory authority. (4) Vehicles may be utilized secondarily for the provision of charters, tours, sightseeing, and special and contract services so long as such services do not detract from said principal service; provided, however, that not more than fifteen per cent of the total usage of said vehicle may be for such charter, tour, sightseeing, special and contract services, and not less than eighty-five per cent of said usage shall be for regular route service. (5) The secretary shall establish such rules and procedures to ensure that the vehicle is utilized in the manner for which it is leased, and that said vehicle or vehicles be maintained in a manner consistent to industry standards. Failure by said carrier to do so shall result in the cancellation of said lease, forfeiture of all lease payments, and the reversion of the vehicle to the commonwealth; (6) Failure to meet the prescribed payment schedule shall result in the cancellation of said lease, forfeiture of all lease payments, and the reversion of the vehicle to the commonwealth; (7) Vehicles shall not be used for the provision of services under contract to a public transportation authority as defined by chapters one hundred and sixty-one A or one hundred and sixty-one B unless: (a) carriers disclose to such authority the vehicles and lease payment schedules obtained under this chapter and (b) such authority assigns a fair market value to the capital and operational costs of said leased vehicles in evaluating proposals from carriers for contracts or other subsidies. (8) The purchase of vehicles financed by this program shall be exempt from all state sales and excise taxes; and (9) The carrier shall assume all liability incurred as a result of the use of the vehicle, and shall meet all insurance requirements as required by the secretary.

M.G.L. c. 161D, § 5 Lease agreements; limitations

c. 161D, § 5. Lease agreements; limitations Section 5. Pursuant to the provisions of section four, the executive office may enter into lease agreements with eligible intercity carriers for the use of intercity coach vehicles. The terms of each such agreement shall be set forth by the secretary and be subject to the following limitations: (1) Said lease shall not exceed a duration of seven years; (2) The rate of said lease shall be set at a level below the prevailing market rate for the purchase of such vehicles; (3) Said rate shall be set by the secretary, and shall as nearly as possible, produce sufficient revenues to the commonwealth in combination with the estimated revenues from the sale of such vehicles under the provisions of clause (4), to recover the principal cost to the commonwealth of said program; provided, however, that the rate for any lease entered into pursuant to this chapter and in effect as of December twenty-seventh, nineteen hundred and eighty-five shall not be increased except as specifically permitted by the lease and any reduction authorized by the secretary pursuant to this section shall not be retroactive; (4) Upon termination of said lease, the vehicle shall be sold to the highest bidder in accordance with General Laws relative to competitive bidding, with no preference being given to the carrier or carriers to whom the vehicle was leased during the preceding time periods; (5) In the event of a declaration of emergency, by the governor, the secretary reserves the right to temporarily reassign use of such vehicle by the lessee; and (6) Notwithstanding the provisions of clause (1), the secretary may extend the term of a lease entered into pursuant to this section; provided, however, that the term of such lease including any extension thereof shall not exceed twelve years; provided, further, that the rate for any lease extension may be adjusted and shall, as nearly as possible, produce sufficient revenues to the commonwealth in combination with the revised estimated revenues from the sale of such vehicles after twelve years under the provisions of clause (4) to recover the principal cost to the commonwealth of said program.

M.G.L. c. 161D, § 6 Repealed, 2003, 26, Sec. 442

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter161DFetched: 10/20/2026