Skip to Content

Session Laws

1984

Jump to:

CHAPTER 484 AN ACT RELATIVE TO THE SYSTEM OF PUBLIC CONSTRUCTION AND THE DISPOSITION OF STATE-OWNED PROPERTY IN THE COMMONWEALTH.

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. Subsection (b) of section 38A1/2 of chapter 7 of the General Laws, as appearing in section 5 of chapter 189 of the acts of 1984, is hereby amended by striking out clause (iii) and inserting in place thereof the following clause:- (iii) if a corporation, sole proprietorship, joint stock company or other entity, the majority of the directors or a majority of the stock ownership and the chief executive officer are persons who are registered architects, landscape architects, or engineers, and the person to have the project in his or her charge is registered in the discipline required for the project.

SECTION 2. Subparagraph (e) of section 38C of said chapter 7, as so appearing, is hereby amended by adding the following sentence:- For those projects without an associated estimated construction cost, including but not limited to feasibility studies, projects shall be exempt from the jurisdiction of the board if the cost of the design service is less than two thousand five hundred dollars or less than ten per cent of the amount shown in the first sentence.

SECTION 3. Section 38D of said chapter 7, as so appearing, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) Each contract for designer services for a project subject to the jurisdiction of the board shall be publicly advertised by the board in a newspaper of general circulation in the area in which the project is located or to be located, and in the central register established under section twenty A of chapter nine, and in such places as the board requires by regulation, at least two weeks before the deadline for filing applications; provided, however, that each contract for designer services for a project whose estimated cost of construction is not less than ten thousand nor more than twenty-five thousand dollars shall not be required to be advertised in a newspaper of general circulation but shall be required to be advertised in the central register.

SECTION 4. Paragraph (c) of section 38F of said chapter 7, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

The board shall transmit a list of the chosen finalists to the deputy commissioner. No person or firm debarred pursuant to section forty-four C of chapter one hundred and forty-nine or disqualified pursuant to section thirty-eight D shall be so included as a finalist. The board shall transmit to the deputy commissioner all material made or received relating to such recommendation.

SECTION 5. Paragraph (e) of said section 38F of said chapter 7, as so appearing, is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) is currently employed by, or is a consultant to or under contract to an applicant.

SECTION 6. Said chapter 7 is hereby further amended by striking out section 38H, as so appearing, and inserting in place thereof the following section:-

Section 38H. (a) When the board has required that applicants list consultants which the applicants may employ, in no event shall a consultant be used who is debarred pursuant to section forty-four C of chapter one hundred and forty-nine and any change in or addition to the consultants named in the application and allowed by the board upon appointment must be approved by the deputy commissioner and reported to the board, along with a written statement by the designer or construction manager of the reasons for the change.

(b) If the designer's or construction manager's fee is negotiated, the designer or construction manager must file a truth-in-negotiations certificate prior to being awarded the contract by the deputy commissioner, which must be incorporated into the contract. The certificate must contain:

(i) a statement that the wage rates and other costs used to support the designer's compensation are accurate, complete, and current at the time of contracting; and

(ii) an agreement that the original contract price and any additions to the contract may be adjusted within one year of completion of the contract to exclude any significant amounts if the deputy commissioner determines that the fee was increased by such amounts due to inaccurate, incomplete or noncurrent wage rates or other costs.

(c) The board may specify other special conditions or requirements in selecting a particular applicant as a finalist. If any change is made by the applicant after appointment relating to such special conditions or requirements, the change must be approved by the deputy commissioner and reported to the board along with a written statement by the appointee of the reasons for the change.

(d) A designer or programmer appointed to do a feasibility study, master plan or program for a project shall be ineligible for appointment to perform the design services for that project. This paragraph shall not apply to designers performing studies for repair work; provided, however, that such work is limited to identifying and correcting existing deficiencies in a portion of a building or its equipment; and provided, further, that the designer's fee for the combined study and design of repairs is not greater than twenty-five thousand dollars.

(e) Every contract for design services awarded under sections thirty-eight A1/2 to thirty-eight O, inclusive, shall include the following:

(i) certification that the designer or construction manager has not given, offered or agreed to give any person, corporation or other entity any gift, contribution or offer of employment as an inducement for, or in connection with, the award of the contract for design services;

(ii) certification that no consultant to or subcontractor for the designer or construction manager has given, offered or agreed to give any gift, contribution or offer of employment to the designer or construction manager, or to any other person, corporation, or entity as an inducement for, or in connection with, the award to the consultant or subcontractor of a contract by the designer or construction manager;

(iii) certification that no person, corporation or other entity, other than a bona fide full time employee of the designer or construction manager, has been retained or hired by the designer or construction manager to solicit for or in any way assist the designer or construction manager in obtaining the contract for design services upon an agreement or understanding that such person, corporation or other entity be paid a fee or other consideration contingent upon the award of the contract to the designer; and

(iv) certification with respect to contracts which exceed ten thousand dollars or which are for the design of a building for which the budgeted or estimated construction costs exceed one hundred thousand dollars that the designer has internal accounting controls as required by subsection (c) of section thirty-nine R of chapter thirty and that the designer has filed and will continue to file an audited financial statement as required by subsection (d) of said section thirty-nine R.

(f) Contracts for design services shall include a requirement that the designer at his or her own expense obtain and maintain a professional liability insurance policy covering negligent errors, omissions and acts of the designer or of any person or business entity for whose performance the designer is legally liable arising out of the performance of such contracts for design services. The designer shall furnish a certificate or certificates of such insurance coverage to the public agency prior to the award of the contract. For the purpose of this paragraph only, "public agency" shall have the meaning set forth in section thirty-nine A. A professional liability insurance policy obtained and maintained pursuant to this paragraph shall provide for coverage of not less than ten per cent of the project's estimated cost of construction for the applicable period of limitations and include any added coverage and in such amounts as the public agency shall require.

At the request of the director, a consultant employed by a designer subject to this paragraph shall obtain and maintain a liability insurance policy covering negligent errors, omissions and acts of such consultant or of any person or business entity for whose performance the consultant is legally liable arising out of the performance of the contract for consultant services. The consultant shall furnish a certificate or certificates of such insurance coverage to the division in the case of a consultant hired by a designer selected pursuant to section thirty-eight F or to a public agency not subject to the jurisdiction of said board prior to the employment of such consultant by the designer. A liability insurance policy maintained under this paragraph shall provide for coverage of such type and duration and in such amount as the public agency shall require.

(g) A designer, construction manager, or programmer who has been determined by the board to have provided materially false statements or information under this section shall be disqualified by the board from future work on any project for such time as the board determines is appropriate.

(h) Contracts for design service may include a requirement that the designer be responsible for overseeing the construction phase of the project. (i) Awarding authorities in cities and towns may allow a designer who conducted a feasibility study to continue with the design of a project, provided that they shall commission an independent review, by a knowledgeable and competent individual or business doing such work, of the feasibility designer's work to insure its reasonableness and its adequacy prior to allowing such a designer to continue on said project. SECTION 7. Section 39A of said chapter 7, as appearing in section 7 of chapter 579 of the acts of 1980, is hereby amended by striking out paragraphs (g) and (g) (1) and inserting in place thereof the following two paragraphs:-

(g) "capital facility project", an undertaking by a public agency for the planning, acquisition, design, construction, demolition, installation, repair or maintenance of a capital facility. (g1/2) "building project", a capital facility project undertaken for the planning, acquisition, design, construction, demolition, installation, repair or maintenance of any building and appurtenant structures, facilities and utilities, including initial equipment and furnishings thereof; provided, however, that appurtenant buildings or structures which are required to be constructed as integral parts of the development of sewer, water and highway systems shall not be subject to section thirty-eight C.

SECTION 8. Said section 39A of said chapter 7, as so appearing, is hereby further amended by striking out paragraph (v) and inserting in place thereof the following paragraph:-

(v) "state agency", a state agency, board, bureau, department, division, section, or commission of the commonwealth or county; provided, however, that in sections forty E to forty L, inclusive, state agency shall not include counties.

SECTION 9. The second paragraph of said section 39B of said chapter 7, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- All rules, regulations, guidelines, procedures, policies, standards, and other similar items which are issued by the deputy commissioner and which control or significantly affect the activities of contractors, designers, or the general public shall be promulgated as regulations pursuant to the provisions of chapter thirty A.

SECTION 10. Section 40A of said chapter 7, as so appearing, is hereby amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-

(1) Control and supervision of all building projects undertaken by any state agency, except to the extent provided for by sections forty B and forty-three C and that the division shall exercise oversight jurisdiction over building projects undertaken by a state agency that are financed or funded from sources other than an appropriation or the issuance of bonds, notes or other evidences of indebtedness of the commonwealth. Using agencies shall cooperate in any inquiries or inspections conducted by the division of capital planning and operations.

SECTION 11. Section 40C of said chapter 7, as so appearing, is hereby amended by striking out subsection (2) and inserting in place thereof the following subsection:-

(2) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

"Minority", a person with a permanent residence in the United States who is American Indian, Black, Cape Verdean, Western Hemisphere Hispanic, Aleut, Eskimo, or Asian.

"Minority business", any contracting or subcontracting business, or business that supply the contractors and subcontractors which is beneficially owned by one or more minority persons as follows:-

(1) the business must be at least fifty-one per cent owned by minority persons; in the case of a corporation having more than one class of stockholders, the ownership requirement must be met as to each class of stock;

(2) the minority owners must demonstrate that they have dominant control over management;

(3) the business has not been established solely for the purpose of taking advantage of a special program which has been developed to assist minority businesses;

(4) in the case of a joint venture between a minority business meeting the requirements of clauses (1) to (3), inclusive, and a nonminority business, the joint venture shall be found to be a minority business if the minority business meeting the requirements of said clauses (1) to (3), inclusive, shall have more than one-half control over management of the project bid upon and shall have the right to receive more than one-half of the profits deriving from that project.

"Women-owned business" means any contracting or subcontracting business which is beneficially owned by one or more women meeting the requirements set forth in clauses (1) to (4), inclusive, of the definition of minority business, except that the terms "women", "women owners", and "women-owned business", shall be substituted for the terms "minority" and "minority persons", "minority owners", and "minority business" appearing in that definition. "Material Supplier" refers to a vendor engaged in sales to the construction industry from an established place of business or source of supply and that vendor manufactures goods from raw materials or substantially alters them before resale or provides and maintains a storage facility for materials utilized in the work consistent with normal industry practice. A material supplier may be given one hundred per cent credit of the total purchase order if it manufactures or substantially alters the materials supplies. A material supplier that does not manufacture supplies may be entitled to a credit in the amount of ten per cent of the total purchase order for the supplies.

The deputy commissioner, with the cooperation and approval of the state office of minority business assistance (SOMBA) established by section thirty-eight of chapter twenty-three A, shall, at the beginning of each fiscal year, establish a specific annual dollar value of contracting and subcontracting work on capital facility projects subject to the supervision and control of the division of capital planning and operations which shall be reserved for minority-owned businesses and women-owned businesses. The total specific annual dollar value reserved for minority-owned businesses under this section shall not constitute less than five per cent of the value of the contracts awarded on capital facility projects during the preceding fiscal year. The total specific annual dollar value when established shall be binding on both the division and SOMBA; both agencies are required to cooperate and to take whatever steps they jointly deem necessary to implement the requirements of this section. The deputy commissioner of the division and the director of SOMBA shall meet on a quarterly basis to determine what portion of the total specific dollar value reserved for minority-owned and women-owned businesses the division has already awarded to such businesses an what further steps both agencies deem necessary to achieve the purpose of this section.

The deputy commissioner will reserve five per cent of the estimated construction cost of each capital facility project for minority-owned businesses, and five per cent for women-owned businesses, except as follows:-

(1) A greater percentage may be reserved to reflect the percentage of the minority population within the standard metropolitan statistical or labor market area in which the capital facility is located; to reflect the numbers of minority-owned and women-owned businesses available to perform work on a project; or to achieve the specific annual dollar value reserved for minority-owned or women-owned businesses.

(2) If because of the size, nature, or location of a particular capital facility project, it is not feasible to reserve a minimum of five per cent for a minority-owned or women-owned business, the division may either reserve a lesser portion of work for minority-owned or women-owned businesses or waive the participation requirements on that particular project.

SOMBA may hold any project for up to thirty days for review, before bid specifications are made public, if it believes that the size, nature, or location of the project does not justify a reduction in the women or minority business set-aside below five per cent.

No portion of contracting or subcontraction work reserved for minority-owned businesses under the provisions of this section shall be awarded to any women-owned business not meeting the requirements of a minority-owned business under this section; nor shall any portion of contracting and subcontracting work reserved for women-owned businesses under the provisions of this section be awarded to any minority-owned business not meeting the requirements of a women-owned business under this section.

The deputy commissioner with the cooperation and approval of SOMBA shall develop the contract specifications, terms, conditions, and language and shall take the administrative steps necessary to carry out the purpose of this section. SOMBA shall be responsible for establishing and updating, by periodic additions and deletion, a list of minority-owned and women-owned businesses under this section, and shall cause the list to be published in the central register established by section twenty of chapter nine, and filed with the joint committee on state administration, and in such other publications as the deputy commissioner shall designate.

The deputy commissioner shall by March fifteenth of each year submit to SOMBA, the commissioner of administration, the state commission against discrimination, the joint committee on state administration, and the general court a report describing the number of contracts and subcontracts awarded by the division of capital planning and operations to minority-owned and women-owned businesses within the preceding calendar year. The report shall, at a minimum, show the name and address of each such business, its designation as a minority-owned or women-owned business, the contract, or subcontract price, a description of the work performed of such contract by class of work and project type, and shall show separately the total number of contracts awarded to minority-owned and women-owned businesses as a percentage of the total number of contracts awarded and as a percentage of the total contract price.

SECTION 12. Said chapter 7 is hereby further amended by striking out section 40D, as so appearing, and inserting in place thereof the following section:-

Section 40D. The deputy commissioner shall, no less often than once every three months, prepare a comprehensive report on the progress of all capital facility projects subject to the jurisdiction of the division of capital planning and operations as defined by section forty B of this chapter but not including those for which a city or town is the administering agency. At the discretion of the deputy commissioner, said reports may exclude capital facility projects with a total project cost of less than twenty-five thousand dollars for which the administering agency is other than a state agency. Said report shall include, but not be limited to, a statement of the name of each project, the administering agency and the using agency, a brief current description of the project and any substantial changes in the description of the project during the past three months, the source of funds, the state of progress of the project, a summary of the total and major costs of the projects as originally estimated and as currently expended or currently estimated to be expended, the original project schedule and the current and estimated progress of the project, and such other information as the deputy commissioner may require be included. Said report shall be submitted to the commissioner of administration and the clerks of the house of representatives and the senate and shall be a public document.

The deputy commissioner of capital planning and operations shall by February fifteenth of each year prepare a comprehensive annual report on the progress of all capital facility projects subject to the jurisdiction of the division of capital planning and operation defined by section forty A. At the discretion of the deputy commissioner, said annual report need not include capital facility projects with a total project cost of less than twenty-five thousand dollars for which the administering agency is other than a state agency. Said annual report shall constitute one of the four reports required by the previous paragraph of this section but shall contain in addition to the information required in the previous paragraph for each capital facility project, the following data: the authorizations for and sources of funds and expenditure and unencumbered balances thereof; identification of the designers and contractors who have contracted with the administering agency to provide materials or services therefor, the administering agency's project and contract numbers, the value of the contracts and the amount of money paid in accordance with the contracts; and such other information as the deputy commissioner may require be included. The deputy commissioner shall also include in his/her report a statement of the problems which have arisen in the capital facility procurement programs and procedures of public agencies and his/her specific recommendations for administrative and legislative action which in his/her view are necessary to remedy such problems. Said report shall be submitted to the commissioner of administration and the general court and shall be a public document available for general distribution.

The deputy commissioner shall by February fifteenth of each year prepare a comprehensive report including but not limited to, an analysis of the utilization, cost and method of acquisition of real property acquired for the use of state agencies; the sale or rental of such real property and revenue realized therefrom; and problems which have arisen in the management of real property by the commonwealth, with specific recommendations for administrative and legislative action which in his/her view are necessary to remedy such problems. Said report shall be submitted to the commissioner of administration, the joint committee on state administration, and the general court and shall be a public document available for general distribution.

The deputy commissioner shall develop and annually revise a proposed capital repair and maintenance plan for state buildings subject to the jurisdiction of the division of capital planning and operations. The plan shall be based upon repair and maintenance schedules formulated for each building and group of buildings by the director of facilities management in accordance with the provisions of sections forty-three A, forty-three C, and forty-three E. In addition to developing capital repair and maintenance schedules for state buildings, the plan shall analyze the costs and benefits of continuing minor repairs versus the costs and benefits of major renovation, rehabilitation, or replacement of the state buildings. The deputy commissioner shall by February fifteenth of each year, submit the proposed capital repair and maintenance plan required by this paragraph to the house and senate ways and means committees and the chairmen of the joint committee on state administration.

The deputy commissioner shall keep an up-to-date record, by years and cumulatively, on all capital repair and maintenance projects completed, in process, or scheduled for the future, on all building projects subject to the jurisdiction of the division of capital planning and operations.

The deputy commissioner shall, by February fifteenth of each year, prepare a report, by years and cumulatively, on all capital repair and maintenance projects completed, in process, or scheduled for the future, on all capital facility projects, said report shall include narrative statements indicating why such repairs or maintenance on such projects have been or will be postponed or cancelled. A copy of said report shall be sent to the house and senate committees on ways and means, and to the chairmen of the joint committee on state administration.

The governor may, include in his capital outlay budget or request, a budget narrative statement, indicating why any and all repairs or maintenance on capital facility projects of the commonwealth, have been or will be postponed or cancelled.

Upon completion of the final design of each state building project estimated to cost in excess of five million dollars, the deputy commissioner shall prepare an analysis detailing the maintenance costs projected annually over the useful life of the building. The deputy commissioner shall, by February sixteenth of each year, prepare a report summarizing the annual maintenance costs projected for each building project described in this paragraph, for which final design was completed during the prior year. The report shall be filed with the chairmen of the joint committee on state administration and the agency responsible for the operation and maintenance of the building project.

In subsequent fiscal years for which the maintenance report indicates that maintenance will be required, the agency responsible for the operation and maintenance of the building shall include the projected annual maintenance costs contained in the report in its annual budget request, provided that revisions to the maintenance costs originally projected by the deputy commissioner shall be addressed in the agency's budget narrative.

The deputy commissioner shall be responsible for providing state agencies with comprehensive maintenance manuals for all new building projects constructed on behalf of an agency.

SECTION 13. Section 40E of said chapter 7, as amended by section 6 of chapter 189 of the acts of 1984, is hereby further amended by inserting before the first paragraph the following paragraph:-

Real property, record title to which is held in the name of a state agency or the board of trustees of a state agency or similar board of a state agency, shall be deemed to be real property of the commonwealth. No deed or other instrument shall be required to effect the transfer to the commonwealth of title to such real property, but the land court department of the trial court shall, upon petition of the division of capital planning and operations, issue in the name of the commonwealth a certificate of title to any real property, title to which is registered under chapter one hundred and eighty-five in the name of a state agency or the board of trustees of a state agency or similar board of a state agency.

SECTION 14. The first paragraph of said section 40E of said chapter 7, as appearing in said section 6 of said chapter 189, is hereby amended by striking out the last two sentences and inserting in place thereof the following two sentences:- The deputy commissioner may delegate to state agencies responsibility for the acquisition, control, and disposition of real property as provided for in this chapter; except that the deputy commissioner may not delegate responsibility for determining that property is surplus to state needs as required in section forty F. When responsibility is delegated to a state agency, the written approval of the deputy commissioner shall be required before the transaction is completed, and a copy of said written approval shall be sent to the joint committee on state administration.

SECTION 15. Said section 40E of said chapter 7, as so appearing, is hereby further amended by striking out the second paragraph.

SECTION 16. Said chapter 7 is hereby further amended by striking out section 40F, as amended by section 15 of chapter 636 of the acts of 1983, and inserting in place thereof the following section:-

Section 40F. The deputy commissioner of capital planning and operations shall be responsible for the acquisition, control and disposition of real property in the manner and to the extent provided in this chapter. The deputy commissioner may delegate such responsibility to an administrator, who has ten years of experience in the management of commercial, industrial, institutional or public real property. When responsibility is delegated to an administrator the written approval of the deputy commissioner shall be required before such transaction is finalized.

The deputy commissioner shall acquire interest in real property on behalf of the commonwealth for the use of state agencies by gift, purchase, devise, grant, eminent domain, rental, lease, rental-purchase or otherwise.

In acquiring buildings for the use of state agencies, first consideration shall be given to any structures that have been certified as historic landmarks as provided by sections twenty-six through twenty-seven C inclusive of chapter nine, that have been listed in the National Register of Historic Places as provided by 16 U.S.C. section 470a (1974) or that have been designated historic landmarks by local historic commissions, unless use of such buildings would not be feasible in terms of costs and requirements when compared with other available properties.

Notwithstanding any laws to the contrary, real property acquired for the use of state agencies shall be held in the name of the commonwealth.

The deputy commissioner shall assist in the preparation and shall approve of plans for the organization of all space within and around buildings and appurtenant structures used by state agencies, and shall assign the use of space within and around the state house, in accordance with the provisions of sections ten, sixteen A and seventeen of chapter eight the John W. McCormack State Office Building; the Leverett Saltonstall State Office Building; the Springfield Office Building; the Pittsfield Office Building; the Erich Lindemann Building; the Charles F. Hurley Building; any real property acquired for the use of state agencies, the greater part of which is not needed by any one state agency; and any other real property assigned by law to the division of capital planning and operations.

The deputy commissioner, with the written approval of the commissioner of administration, may transfer use of, and responsibility for maintenance of, buildings, including equipment therein, within or between state agencies. No such transfer within or between state agencies which involves either a change in the purposes for which such building is currently used or a change in use in excess of fifty per cent of the usable floor space, shall be made without the prior approval of the general court. Any such transfer shall be based on a determination, made by the deputy commissioner with the advice of the executive heads of affected agencies and secretaries of the executive offices in which such agencies are located, that such property is not needed, is under utilized, or is not being put to optimum use under current conditions. The deputy commissioner shall notify the house and senate committees on ways and means and the representatives to the general court from the city or town in which such real property is located not less than thirty days prior to the final authorization of any transfer which does not require the approval of the general court, and such transfer shall only be made when the general court is in session except as provided hereafter. Such transfer may be made when the general court is not in session, and the thirty day notification requirement may be waived, only if the deputy commissioner certifies in writing that an emergency exists; provided that, any such transfer may be authorized for a period not to exceed six months, and provided further, that the deputy commissioner shall submit his/her certification to and notify the house and senate ways and means committees of such transfer at the earliest possible opportunity.

The deputy commissioner may, after notification to and with the advice of the executive heads of state agencies and secretaries of the executive offices, determine that real property is not needed for the use of any state agency. If he determines that such property is surplus to both the current and foreseeable needs of state agencies, the deputy commissioner shall determine whether any other public agency has a current or foreseeable direct public use for the property. For the purposes of determining whether property is surplus to direct public use, direct public use is defined in this section as use of property for a public agency's own operations, but does not include conveyance by such agency of any interest in the property to another party, but does include lease of the property by local housing authorities to public housing tenants.

When property is determined to be surplus, to either current state or current direct public uses, but not to foreseeable state or foreseeable direct public uses, the deputy commissioner shall take such action as is necessary to ensure that any disposition of the property is temporary and maintains the deputy commissioner's ability to make such property available to a state agency or other public agency at such time as it is needed.

If the deputy commissioner determines that the property is not needed for current or foreseeable state or direct public use as defined above and that the property should be disposed of, he shall declare that the property is available for disposition and shall identify restrictions, if any, on the property's use and development necessary to comply with established state and local plans and policies, and he shall send written notification of such to the house and senate committees on ways and means, and the joint committee on state administration.

The deputy commissioner may convene an advisory committee to advise him on reuses and to recommend reuse restrictions for property declared surplus. If an advisory committee is convened, the deputy commissioner shall invite the representatives to the general court from the city or town in which the property is located to serve on the committee. The deputy commissioner shall prepare a preliminary report on his findings, which shall include both his recommendation, and those of the advisory committee if established, for reuse restrictions for the property.

The deputy commissioner shall conduct a public hearing to consider potential reuses and reuse restrictions for the surplus property and to review the deputy commissioner's preliminary report if the property exceeds two acres or if the deputy commissioner determines that a hearing should be held for a smaller parcel. If he determines to conduct a hearing, the deputy commissioner shall provide notice in the central register of the public hearing at least sixty days prior to (1) notification to the house and senate committees on ways and means and the joint committee on state administration, of a temporary disposition of property to a public agency for less than five years for a direct public use, or (2) submission of a request to the general court for authority to otherwise dispose of real property as provided in this section. A notice of the public hearing shall also be placed, at least once each week for the four consecutive weeks preceding the hearing, in newspapers with sufficient circulation to inform the people of the affected locality. The hearing shall be held in the locality in which the property is located no sooner than thirty days and no later than thirty-five days after the notice is published in the central register.

The deputy commissioner may, with the written approval of the commissioner, enter into agreements for the direct public use of surplus real property by public agencies other than state agencies, for a term not to exceed five years. Such agreement shall prohibit subsequent conveyance of interest in the property by the public agency to another party. The deputy commissioner shall notify the house and senate committees on ways and means and the joint committee on state administration thirty days prior to the final authorization of any such agreement. The notification shall include the deputy commissioner's report on recommended reuse restrictions. In no event shall any such agreement be made when the general court is not in session.

The deputy commissioner shall establish the value of surplus property through procedures customarily accepted by the appraising profession as valid for determining property value. The value shall be calculated both for: (1) the highest and best use of the property as currently encumbered; and (2) uses and encumbrances defined by the deputy commissioner.

The deputy commissioner may, with the approval of the commissioner, request from the general court authorization to dispose of state real property determined to be surplus to state agency needs: (1) to public agencies of the commonwealth other than state agencies for direct public uses, over a period exceeding five years, (2) to a public agency of the commonwealth other than a state agency, for uses other than direct public uses, and (3) to an individual, entity, or the federal government; or any extension of any agreement for such use beyond a cumulative period of five years. Accompanying his request for authorization to dispose of property, the deputy commissioner shall submit his report including a description of the property, its current use, structures, and approximate metes and bounds, the value of the property and recommended restrictions, if any, on reuses of the property. The deputy commissioner shall also request authorization to negotiate real property disposition agreements with parties to be selected by the deputy commissioner after he evaluates competitive proposals. Disposition agreements subsequently negotiated by the deputy commissioner shall be consistent with the reuse restrictions approved by the general court.

Notwithstanding the provisions of this section, leases for agricultural purposes on land owned by the commonwealth shall be made for a term of not more than five years, and the renewal date for such leases shall not be less than one year prior to the end of the lease period. Holders of such leases shall be given the opportunity to renew such leases for a consideration equal to the current lease amount plus an escalation amount to be established annually by the deputy commissioner for application to all such leases.

The deputy commissioner shall monitor compliance with disposition agreements.

The deputy commissioner shall develop regulations governing the conditions under which he will recommend to the general court that a public agency, including but not limited to the government land bank, receive title to surplus property for other than direct public use.

For bills which authorize the sale, transfer, or other disposition of any state-owned real property filed by persons other than the deputy commissioner of capital planning and operations, the clerk of the house of representatives and the clerk of the senate shall, within ten days of the filing, forward a copy of said bill to the deputy commissioner. Within ninety days of the receipt of said copy, the deputy commissioner shall submit in writing a report to the commissioner of administration, the legislative committee before which the bill is pending, and the joint committee on state administration together with a recommendation for either the approval or the disapproval of the bill and his reasons therefor.

If the deputy commissioner is recommending the approval of a bill proposing the disposition of a parcel exceeding two acres, said report shall include: (1) a description of the property including its current use, structures, and approximate metes and bounds; (2) the value of the property, determined through procedures customarily accepted by the appraising profession as valid for such purposes, calculated both for (a) the highest and best use of the property as currently encumbered and (b) uses and encumbrances that would be imposed by the bill if enacted; (3) all current and foreseeable direct public uses identified by following the division's procedures for such purposes as they apply to the property to be disposed (4) other potential public and private uses of the property; and (5) any other information the general court may require.

The deputy commissioner shall expeditiously review and recommend approval or disapproval of any proposal to the general court for the sale, rental or other disposition of real property acquired on behalf of state agencies, and shall dispose of real property as mandated by the general court. All legislation submitted to the general court by the division of capital planning and operations requesting authorization to convey or transfer real property under its jurisdiction shall be accompanied by a full report outlining the division's reasons for pursuing said conveyance or transfer.

SECTION 17. Said chapter 7 is hereby further amended by inserting after section 40F the following section:-

Section 40F1/2. (a) When authorized by the general court to sell, rent or otherwise dispose of real property, the deputy commissioner shall proceed in accordance with the provisions of this section, provided that any action or determination required hereunder which the deputy commissioner has undertaken within eighteen months prior to enactment of the authorization to dispose of the property need not be repeated if the deputy commissioner (1) files, as provided in subsection (b), a report fully describing such action or determination, a copy of which shall be sent to the clerks of the senate and the house of representatives, and the joint committee on state administration, and (2) certifies under penalties of perjury that such report is accurate and that the action or determination described therein was undertaken within eighteen months prior to the date of enactment of the authorization to dispose of the property.

The deputy commissioner shall, after notification to and with the advice of the executive heads of state agencies and secretaries of the executive offices, determine whether such property is surplus to both current and foreseeable needs of state agencies. If the deputy commissioner determines that the property is not surplus to either current or foreseeable needs of state agencies, he shall make no disposition that is inconsistent with such determination.

If the deputy commissioner determines that such property is surplus to both the current and foreseeable needs of state agencies, he shall provide written notice, for each city or town in which the property is located, to the city manager in the case of a city under Plan E form of government, the mayor and city council in the case of all other cities, the chairman of the board of selectmen in the case of a town, the county commissioners, the regional planning agency, and the members of the general court. The deputy commissioner shall set forth in such notice a description of the property; a declaration that the property is surplus to the needs of state agencies and that subject to the approval of the deputy commissioner the property is available to any other public agency for a direct public use; and a statement that, if so requested by any public official or body entitled under this section to receive such notice, a public hearing will be conducted in the city or town where such property is located, to assist the deputy commissioner in determining whether any other public agency has a current or foreseeable direct public use for the property. Following such hearing, if any, but in no event earlier than thirty days following the notice, the deputy commissioner shall determine whether any other public agency has a current or foreseeable direct public use for the property. If he determines that the property is not surplus to either current or foreseeable direct public uses of public agencies, he shall make no disposition that is inconsistent with such determination.

When the property is determined to be surplus to either current state or current direct public uses, but not to foreseeable state or foreseeable direct public uses, the deputy commissioner shall take such action as is necessary to ensure that any disposition of the property is temporary and maintains the deputy commissioner's ability to make such property available to a state agency or other public agency at such time as it is needed.

If the deputy commissioner determines that the property is surplus to both current and foreseeable direct public uses of public agencies, he may dispose of the property to a public agency for other than direct public use, or to an individual or entity, provided that any such disposition shall be subject to the provisions of section forty H.

If the deputy commissioner determines that the property is not needed for current or foreseeable state or direct public use and that the property should be disposed of, either temporarily or permanently, he shall declare that the property is available for disposition and shall determine appropriate reuse restrictions. The deputy commissioner shall ensure that any rental agreement, and in the case of a conveyance a deed or separate disposition agreement as deemed appropriate by the deputy commissioner, shall set forth all such reuse restrictions; shall provide for effective remedies on behalf of the commonwealth, including if deemed appropriate by the deputy commissioner that title to the property, or such lesser interest as is the subject of the disposition agreement, shall revert to the commonwealth in the event of a violation of any such reuse restriction; and shall provide, in the case of a disposition to a public agency for a direct public use, that the title to the property, or such lesser interest as is the subject of the disposition agreement, shall revert to the commonwealth in the event the property is no longer utilized for such direct public use.

In determining reuse restrictions, the deputy commissioner shall conform to all such restrictions pertaining to the property which may have been mandated by the general court, and may adopt additional restrictions, taking account of established state and local plans and policies. The deputy commissioner shall conduct a public hearing to consider reuse restrictions if the property exceeds two acres or if the deputy commissioner determines that a hearing should be held for a smaller parcel. Notice of the public hearing shall be placed at least once each week for four consecutive weeks preceding the hearing, in newspapers with sufficient circulation to inform the people of the affected locality. The hearing shall be held in the locality in which the property is located no sooner than thirty days and no later than thirty-five days after notice thereof is published in the central register.

The deputy commissioner shall establish the value of the property, through procedures customarily accepted by the appraising profession as valid for determining property value, for both the highest and best use of the property as currently encumbered and under the reuse restrictions as determined pursuant to this section.

No agreement for the rental or other disposition of state-owned real property, and no deed, executed by or on behalf of the commonwealth, shall be valid unless such agreement or deed contains the following declaration, signed by the deputy commissioner: `tm;i1=5,5

i1 The undersigned certifies under penalties of perjury that I have fully complied with the provisions of Section 40F1/2 of Chapter 7 of the General Laws in connection with the property described herein.

`ts

________________________________________ Deputy Commissioner, DCPO `t+1 Date:___________________________________

(b) The deputy commissioner shall maintain, for a period of at least six years next following enactment of an authorization by the general court to dispose of real property, a file containing a copy of each document necessary to establish fulfillment of the requirements of subsection (a). Such file shall be open to public inspection.

SECTION 18. Said chapter 7 is hereby further amended by striking out section 40H, as amended by section 7 of chapter 189 of the acts of 1984, and inserting in place thereof the following section:-

Section 40H. At least thirty days before opening proposals for the acquisition by purchase or rental of real property for the use of state agencies from an individual or entity, or for the sale or rental of real property used by state agencies (1) to a public agency other than a state agency for other than a direct public use, or (2) to an individual or entity, the deputy commissioner of capital planning and operations shall advertise in the central register published by the state secretary pursuant to section twenty of chapter nine stating therein the need for or availability of such property, and inviting submission of such proposals. The advertisement shall specify the geographical area, terms and requirements of the proposed transaction, and shall state the time and place for the submission of such proposals and for the opening thereof. In case of the rental or sale of over two thousand five hundred square feet of real property, such advertisement shall also be placed at least once each week for four consecutive weeks in newspapers with a circulation sufficient to inform the people of the affected locality. The last publication shall occur at least eight days preceding the day for opening proposals.

The advertising requirement may be shortened or waived if (1) the deputy commissioner certifies in writing that an emergency exists, a copy of such written certification shall be sent to the joint committee on state administration, provided that every reasonable effort be made to seek competitive proposals, and provided that the deputy commissioner shall disclose his reasons for declaring the emergency in the central register at the earliest opportunity; or (2) in the case of a proposed acquisition, if the deputy commissioner determines that such advertising will not be beneficial to the commonwealth's interest because of the unique qualities or location of the property needed, provided that the deputy commissioner shall set forth in writing his reasons for such determination, relating such unique requirements to the property proposed to be acquired, and that such determination and the reasons therefor shall be published in the central register not less than thirty days before any binding agreement to acquire such property is executed, together with the name of the parties having a beneficial interest in the property pursuant to section forty J, the location and size of the property, and the proposed purchase price or rental terms. Compliance with the foregoing provisions pertaining to advertising shall be a condition precedent to the validity of any deed or rental agreement executed by or on behalf of the commonwealth.

The deputy commissioner shall also place notification in the central register of the individual or firm selected as party to any such real property transaction, and the amount of such transaction. In no instance in which the state retains responsibility for maintenance of the property shall the terms provide for payment of less than the maintenance costs. If the deputy commissioner decides to dispose of the property at a price less than any of its values established pursuant to the provisions of section forty F one-half, the deputy commissioner shall include a justification for such decision in the notice and shall disclose the difference between the calculated value and the price received.

After the execution of a rental or sale agreement completing such transaction, all proposals relating thereto shall be retained by the deputy commissioner and shall be open to inspection by the public until the expiration of such agreement or six months from the date thereof, whichever occurs first, and may thereafter be destroyed by him/her.

SECTION 19. Said chapter 7 is hereby further amended by striking out section 40I, as appearing in section 12 of chapter 579 of the acts of 1980, and inserting in place thereof the following section:-

Section 40I. At least one hundred and twenty days prior to any purchase, sale, rental, lease, transfer, or significant change in use of one or more acres of real property by the commonwealth on behalf of state agencies, the deputy commissioner of capital planning and operations shall notify in writing, for each city or town in which the real property is located: the city manager in the case of a city under Plan E form of government, the mayor and the city council in the case of all other cities, the chairman of the board of selectmen in the case of a town, the county commissioners, the regional planning agency, and the members of the general court. Such one hundred and twenty day notification requirement may be shortened if: (1) the public officials referred to above agree to reduce the one hundred and twenty day period upon the request of the deputy commissioner; or (2) the deputy commissioner certifies in writing that an emergency exists, provided that deputy commissioner shall submit his/her certification to and notify the appropriate local officials of any such transaction at the first possible opportunity. The notice shall include a statement of the present use, the reason for the proposed action, and the proposed use of the property. The deputy commissioner shall at least sixty days prior to any such purchase, sale, rental, lease, transfer, or significant change in use of one or more acres of real property, cause a public hearing to be held, after giving timely notice, in the city or town where such real property is located for the purpose of disclosing the conditions or reasons for the proposed action.

SECTION 20. The first paragraph of section 40K of said chapter 7, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- The real property inventory shall be published annually for distribution to state agencies and regional planning agencies, shall be filed by February fifteenth each year with the clerk of the house of representatives and the senate and the joint committee on state administration and shall be a public document available for general distribution.

SECTION 21. Said chapter 7 is hereby further amended by striking out section 40L, as so appearing, and inserting in place thereof the following section:-

Section 40L. The deputy commissioner of capital planning and operations shall establish rules and regulations for the acquisition, utilization and disposition of real property, which shall be applicable to state agencies and which shall be recommended to counties and building authorities and which shall be filed with the clerks of the house of representatives and the senate and the joint committee on state administration. The deputy commissioner shall review rules and regulations promulgated by the department of community affairs for the acquisition, utilization and disposition of real property and shall recommend approval or disapproval of such rules and regulations to the secretary of communities and development. The deputy commissioner may, at his/her discretion, delegate responsibility for the establishment of rules and regulations for the acquisition, utilization and disposition of real property, subject to his/her approval, to state agencies with special needs and a proven capability to promulgate such rules and regulations.

Such rules and regulations shall, at a minimum, provide for:

(a) a determination of the amount and type of real property needed to accommodate functions performed by agencies of the commonwealth;

(b) a standard format for rental agreements and rental specifications;

(c) current fair market rentals by geographical area;

(d) methods of procurement and evaluation of service contracts for state-owned and rented real property;

(e) procedures and criteria for determining when real property is not needed, is underutilized, or is not being put to optimum use;

(f) rates to be charged in the rental of real property to public and federal agencies and private individuals and entities;

(g) the method of procurement of independent determinations of property value, the number of such determinations, and the review of such determinations required before real property may be sold, purchased, or rented;

(h) procedures to be employed in determining prices and terms for the sale, rental, or purchase of real property and certification required for proof of such procedures;

(i) the satisfaction of requirements for the acquisition and disposition of real property as mandated by law and regulation;

(j) the organization of space within buildings to maximize utilization;

(k) a standard format for the disclosure of beneficial interest as mandated by section forty J; and

(l) the type and method of collection of information to be included in the real property inventory established by section forty K.

All such rules and regulations shall be filed in accordance with and subject to the provisions of section thirty-nine B by the deputy commissioner of the division of capital planning and operations.

SECTION 22. The first paragraph of section 41B of said chapter 7, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Except as otherwise provided in this section or by any appropriation act, the director of programming shall, in the manner and to the extent provided by this section, have control and supervision of the study and programming of all capital facility projects of state agencies and building authorities.

SECTION 23. Said section 41B of said chapter 7 is hereby further amended by striking out the fourth paragraph, as amended by section 9 of chapter 189 of the acts of 1984, and inserting in place thereof the following paragraph:-

The director shall create a depository for plans, studies, programs, and designs for building projects prepared for any using agency subject to the jurisdiction of the division of capital operations under section forty A of this chapter. Each such agency shall promptly send to the director a brief identification and description of each plan, study, program, and design after its completion. The designer selection board shall promptly send to the director a brief identification and description of any designs offered to it as part of any design competition administered by the board pursuant to section thirty G. Upon request by the director, the user agency or board shall send to him/her a copy of said plan, study, program, or design.

SECTION 24. The fourth paragraph of section 42B of said chapter 7, as appearing in section 12 of chapter 579 of the acts of 1980, is hereby amended by striking out, in lines 7 and 8, the words "7K of this chapter" and inserting in place thereof the words:- seven K of chapter twenty-nine.

SECTION 25. The third paragraph of section 42C of said chapter 7, as so appearing, is hereby amended by striking out, in line 11, the words "7K of this chapter" and inserting in place thereof the words:- seven K of chapter twenty-nine.

SECTION 26. Said section 42C of said chapter 7, as so appearing, is hereby further amended by striking out the fifth and sixth paragraphs and inserting in place thereof the following two paragraphs:-

The director shall be responsible for accepting or rejecting each project upon its completion and for directing final payment for work done thereon; provided, however, that if upon inspection of any project for acceptance he shall find that the plans, specifications, contracts or change orders for the project shall not have been fully complied with, he shall, until such compliance has been effected or adjustment satisfactory to him has been made, refuse to accept the project and direct such payment.

Upon acceptance of the project, the director shall release the same to the using agency, unless the using agency objects to said release, in which case the director shall work with the using agency to remove the causes of the objection. The director shall not refuse to accept the project from the contractor and shall not refuse to direct final payment to the contractor because of the using agency's objections if the director has determined that the contractor has completed the project in accordance with contract.

SECTION 27. Clause (5) of the second paragraph of section 42D of said chapter 7, as so appearing, is hereby amended by striking out, in line 12, the words "7K of this chapter" and inserting in place thereof the words:- seven K of chapter twenty-nine.

SECTION 27A. Section 42F of said chapter 7, as so appearing, is hereby amended by striking out, in lines 14 and 15, the words "7K of this chapter" and inserting in place thereof the words:- seven K of chapter twenty-nine.

SECTION 28. The third paragraph of section 43A of said chapter 7, as appearing in section 15 of said chapter 579, is hereby amended by inserting after the third sentence the following sentence:- Said inventory shall be filed by the deputy commissioner by February fifteenth yearly with the clerks of the house of representatives and senate, and with the joint committee on state administration, and shall be a public document available for general distribution.

SECTION 29. Section 43E of said chapter 7, as so appearing, is hereby amended by inserting before the first paragraph the following paragraph:-

As used in this section, "using agencies" shall mean state agencies and building authorities.

SECTION 30. Section 20A of chapter 9 of the General Laws, inserted by chapter 634 of the acts of 1982, is hereby amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

Every public agency or public authority of the commonwealth and every political subdivision thereof shall report to the secretary on a timely basis, in such form as the secretary shall prescribe by regulation, all contracting opportunities and proposed transactions publication of which in the central register is required by this section, regulations promulgated hereunder, or any other general or special law.

SECTION 31. Section 7C of chapter 29 of the General Laws, as appearing in section 47 of chapter 579 of the acts of 1980, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Each public agency other than cities and towns shall prepare and submit to the deputy commissioner of capital planning and operations in addition to its long-range capital facilities development plan or revision thereof, an annual capital facility budget at such time as the said deputy commissioner shall require.

SECTION 32. The first paragraph of section 7D of said chapter 29, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- Each secretary shall furnish to the house and senate committees on ways and means and the legislative committees on post audit and oversight of the general court, copies of all such plans, requests, and reports.

SECTION 33. The second paragraph of section 7I of said chapter 29, as so appearing, is hereby amended by striking out, in line 14, the words "of this chapter".

SECTION 34. Section eight A of said chapter twenty-nine is hereby repealed.

SECTION 35. Paragraph (a) of section 39M of chapter 30 of the General Laws, as most recently amended by section 2 of chapter 701 of the acts of 1983, is hereby further amended by striking out the first sentence and inserting in place thereof the following sentence:- Every contract for the construction, reconstruction, alteration, remodeling or repair of any public work, or for the purchase of any material, as hereinafter defined, by the commonwealth, or political subdivision thereof, or by any county, city, town, district, or housing authority, and estimated by the awarding authority to cost more than five thousand dollars, and every contract for the construction, reconstruction, installation, demolition, maintenance or repair of any building by a public agency, as defined by subsection one of section forty-four A of chapter one hundred and forty-nine, estimated to cost more than five thousand dollars but not more than twenty-five thousand dollars, shall be awarded to the lowest responsible and eligible bidder on the basis of competitive bids publicly opened and read by such awarding authority forthwith upon expiration of the time for the filing thereof; provided, however, that such awarding authority may reject any and all bids, if it is in the public interest to do so.

SECTION 36. Subparagraph (c) of section 39Q of said chapter 30, as amended by section 35 of chapter 189 of the acts of 1984, is hereby further amended by striking out the first sentence and inserting in place thereof the following sentence:- Within twenty-one calendar days of the receipt of a written decision or of the failure to issue a decision as stated in the preceding subparagraph, any aggrieved party may file a notice of claim for an adjudicatory hearing with the division of hearing officers or if the amount in controversy exceeds ten thousand dollars in lieu of appealing the decision of the chief executive official, the aggrieved party may file an action directly in a court of competent jurisdiction and shall serve copies thereof upon all other parties in the form and manner prescribed by the rules governing the conduct of adjudicatory proceedings of the division of hearing officers.

SECTION 37. Paragraph (b) of section 39R of said chapter 30, as appearing in section 62 of chapter 579 of the acts of 1980, is hereby amended by striking out clause (2) and inserting in place thereof the following clause:- (2) until the expiration of six years after final payment, the office of inspector general, and the deputy commissioner of capital planning and operations shall have the right to examine any books, documents, papers or records of the contractor or of his/her subcontractors that directly pertain to, and involve transactions relating to, the contractor or his/her subcontractors, and.

SECTION 38. Said section 39R of said chapter 30 is hereby further amended by striking out paragraph (d), as so appearing, and inserting in place thereof the following paragraph:-

(d) Every contractor awarded a contract by the commonwealth or by any political subdivision thereof shall annually file with the deputy commissioner of capital planning and operations during the term of the contract a financial statement prepared by an independent certified public accountant on the basis of an audit by such accountant. The final statement filed shall include the date of final payment. All statements shall be accompanied by an accountant's report. Such statements shall be made available to the awarding authority upon request.

SECTION 39. Paragraph (e) of said section 39R of said chapter 30, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- A contractor's failure to satisfy any of the requirements of this section may be grounds for debarment pursuant to section forty-four C of chapter one hundred and forty-nine.

SECTION 40. Said section 39R of said chapter 30 is hereby further amended by striking out paragraph (f), added by section 1 of chapter 593 of the acts of 1982, and inserting in place thereof the following paragraph:-

(f) Records and statements required to be made, kept or filed under the provisions of this section shall not be public records as defined in section seven of chapter four and shall not be open to public inspection; provided, however, that such records and statements shall be made available pursuant to the provisions of clause (2) of paragraph (b).

SECTION 41. Section 28 of chapter 35 of the General Laws, as most recently amended by section 2 of chapter 121 of the acts of 1983, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-

(d) Notwithstanding the provisions of this section, and unless otherwise specifically provided for by statute, county capital facility projects, as defined by section thirty-nine A of chapter seven, shall be subject to the provisions of sections seven A, seven B, seven C, and seven D of chapter twenty-nine and any other provisions of chapter twenty-nine applicable to capital facility projects to the same degrees and extent as other state agencies, as defined by section thirty-nine A of said chapter seven. `tm;lm=10

SECTION 42. Sections twenty-eight and twenty-eight A of chapter forty-three of the General Laws are hereby repealed.

SECTION 43. Chapter 149 of the General Laws is hereby amended by inserting after section 29A the following two sections:-

Section 29B. Any agreement between an owner and a contractor to waive or cancel a payment bond which the specifications inviting bids for construction work state will be furnished for that construction work will be a false and deceptive act in commerce as set forth in section two of chapter ninety-three A as to all persons who furnished labor or labor and materials or materials for the construction work in reliance upon the specification provisions for the furnishing of the payment bond. No provision in the specifications reserving the right to waive or cancel the requirement for furnishing a payment bond shall be valid as a defense against a claimant who relied upon the provision requiring the furnishing of the payment bond unless that reservation appears in the specifications immediately following the provision requiring the furnishing of the payment bond.

Section 29C. Any covenant, promise, agreement or understanding in or in connection with or collateral to contract or agreement relative to the construction, reconstruction, alteration, remodeling, repair or demolition of a building, structure, highway, appurtenance and appliance, including moving and excavating connected therewith, purporting to indemnify or hold harmless the promisee or indemnitee against liability for damage arising out of bodily injury to persons or damage to property caused by or resulting from the negligence of the promisee, his agents or employees, or indemnitee, and any covenant, promise, agreement or understanding to insure or name as an insured the promisee or indemnitee against any such liability under any contract of insurance by the promisor, is against the public policy and is void and unenforceable.

SECTION 44. Subsection (2) of section 44A of said chapter 149, as appearing in section 55 of chapter 579 of the acts of 1980, is hereby amended by striking out, in line 3, the word "five" and inserting in place thereof the word:- twenty-five.

SECTION 45. Said section 44A of said chapter 149, as so appearing, is hereby further amended by striking out subsection (4) and inserting in place thereof the following subsection:-

(4) In cases of extreme emergency, the awarding authority may, with the prior approval of the deputy commissioner, award a contract for that portion of the work necessary to preserve the health or safety of persons or property on the basis of such competitive bids as it can obtain in time to care for the extreme emergency and without public opening of the bids.

Where the nature of the emergency prevents the awarding authority from obtaining the prior approval of the deputy commissioner, the awarding authority may contract for the necessary work without said prior approval; provided, however, that the approval of the deputy commissioner shall still be sought at the earliest possible time; and provided, further, that if the deputy commissioner at that time fails to approve the emergency determination the awarding authority shall promptly cease all work for which the emergency determination was denied. In such cases, the contractor shall be entitled to payment for the fair value of the labor and materials furnished prior to cessation of the work.

The deputy commissioner shall maintain a record of all contracts awarded pursuant to this subsection, containing a description of the circumstances and the reasons for the deputy commissioner's determination.

SECTION 46. Said chapter 149 is hereby further amended by striking out section 44D, as so appearing, and inserting in place thereof the following section:-

Section 44D. (1) (a) Every bid submitted for a contract subject to section forty-four A shall be accompanied by a copy of a certificate of eligibility issued by the deputy commissioner showing that the bidder has the classification and capacity rating to perform the work required. The bid shall also be accompanied by an update statement in such form as the deputy commissioner shall prescribe. A blank copy of such form shall be furnished by the awarding authority to every person or business entity requesting a copy. The update form shall provide space for information regarding all projects completed by the bidder since the date of certification of eligibility, all projects which the bidder currently has under contract including the percentage of work on such projects not completed, the names and qualifications of the personnel who will have supervisory responsibility for the performance of the contract, any significant changes in the bidder's financial position or business organization since the date of certification of eligibility, and such other relevant information as the deputy commissioner shall prescribe. Any bid submitted without the appropriate certificate and update statement shall be invalid.

(b) The applicant shall certify under penalties of perjury at the conclusion of the application to bid that there have been no substantial changes in his/her financial position or business organization other than those changes noted within the application since the applicant's most recent prequalification statement and that the bid to be made will be in all respects bonafide, fair and made without collusion or fraud with any other person. "Person" here means any natural person, joint venture, partnership, corporation or other business or legal entity which sells materials, equipment or supplies used in or for, or engages in the performance of, the same or similar construction, reconstruction, installation, demolition, maintenance or repair work or any part thereof.

(2) The division of capital planning and operations shall accept applications for certification in such form as the deputy commissioner shall prescribe, signed by the applicant under penalties of perjury, supplying information concerning the applicant's form of organization, its principals and key personnel; the applicant's experience on public and private construction projects over the past five years or on the twenty projects most recently completed; all legal or administrative proceedings currently pending against the applicant or concluded adversely to the applicant within the past five years which relate to the procurement or performance of any public or private construction contract; and such other information as the deputy commissioner shall deem relevant to the determination of the applicant's qualifications and responsibility. The application shall include a statement of financial condition prepared by a certified public accountant which shall contain information concerning the applicant's current assets and liabilities, plant and equipment; bank and credit references, bonding company and maximum bonding capacity; and such other information as the deputy commissioner shall deem relevant to an evaluation of the applicant's financial capacity and responsibility. The information contained in the application shall be current at the time of filing; provided, however, that the statement of financial condition shall pertain to the applicant's most recent, completed fiscal year. Any materially false statement in the application or update statement may, in the discretion of the awarding authority, result in termination of any contract awarded the applicant by the awarding authority, and shall constitute cause for debarring the applicant from future public work as provided in section forty-four C. Applications and evaluations shall not be public records as defined in section seven of chapter four and shall not be open to the public inspection.

(3) The division of capital planning and operations shall evaluate every applicant on the basis of the application and on relevant past performance according to procedures and criteria which the deputy commissioner shall prescribe by regulations or guidelines. Such criteria shall include the following:- the record of the applicant's performance including, where available, written evaluations of the applicant's performance on public and private jobs over the past five years; the applicant's prior experience on projects of various size and type; the experience and qualifications of supervisory personnel; the maximum amount of work the applicant is capable of undertaking as demonstrated by the applicant's financial condition, bonding capacity, size of previous projects, and present and anticipated work commitments; and any other relevant criteria which the deputy commissioner may prescribe. The regulations and guidelines shall provide that, to the extent possible, the criteria considered shall be assigned separate designated numerical values and weights, and the applicant shall be assigned an overall numerical rating on the basis of all criteria. The applicant shall indicate among categories established by the deputy commissioner the classes of work and aggregate amount of work for which certification is sought. The division of capital planning and operations shall issue a certificate as warranted by the evaluation which shall be effective for one year from the date issued, showing the classes of work and aggregate amount of work on which the applicant is eligible to bid.

(4) The division of capital planning and operations shall promptly notify an applicant of its preliminary determination regarding the conditions of the certification, or a denial of certification, or of decertification pursuant to this section, and the reasons therefor. An applicant aggrieved by the division's preliminary determination may, within five business days of receipt of notice, request copies of the information upon which the division relied in making its preliminary determination. Within ten business days of receipt of notice, the applicant may submit further information to the division with a request for reconsideration. The division shall issue a final determination regarding an application for certification within thirty business days from the date of its preliminary determination, unless the applicant and the division agree to extend the thirty day period.

Any applicant aggrieved by the final determination of the division may appeal in writing to the commissioner of labor and industries within five business days of receipt of final notice thereof. Within thirty calendar days of such appeal, the commissioner shall investigate the matter and issue a written decision. The commissioner may institute and prosecute proceedings in the superior court to enforce the provisions of this section on the same terms as set forth in section forty-four H. Following such decision by the commissioner, or failure to render a decision within the thirty-day period, either the division or the applicant may seek remedies at law.

(5) The deputy commissioner may, upon receipt of additional information regarding a contractor's qualifications, decertify a contractor during the period for which the contractor was prequalified. Upon such a decision, the deputy commissioner shall follow the procedures established by this section.

(6) In determining who is the lowest responsible and eligible bidder as required in paragraph (2) of section forty-four A, the awarding authority shall consider the information submitted by the bidder in the update statement. If the awarding authority determines that the low bidder is not responsible and eligible, the awarding authority shall reject the bidder and evaluate the next low bidder in accordance with this section; the awarding authority shall give notice of such action to the division of capital planning and operations.

(7) The division of capital planning and operations shall develop a standard contractor evaluation form that shall be completed by every public agency, upon completion of a building project under its control, and submitted to the division for the contractor's qualification file. The official from the public agency, or the architect or engineer responsible for the oversight of the building construction contract, shall certify that the information contained on the contractor evaluation form represents, to the best of his knowledge, a true analysis of the contractor's performance record on that contract. The public agency shall mail a copy of the contractor evaluation form to the contractor and the contractor may, within thirty days, submit a written response to the division disputing any information contained in the evaluation form. The division shall attach any such response to the evaluation form for inclusion in the contractor's qualification file.

(8) The provisions of this section do not apply to sub-bidders.

(9) The deputy commissioner may issue such rules, regulations, orders, guidelines and policies as deemed necessary or expedient to effectuate the purposes of this section.

SECTION 47. The first sentence of subsection (3) of section 44F of said chapter 149, as so appearing, is hereby amended by striking out, in line 16, the word "not" and inserting in place thereof the word:- nor.

SECTION 48. The fourth sentence of said subsection (3) of said section 44F of said chapter 149, as so appearing, is hereby amended by striking out, in line 6, the word "not" and inserting in place thereof the word:- nor.

SECTION 49. Said subsection (3) of said section 44F of said chapter 149, as so appearing, is hereby further amended by striking out the last paragraph and inserting in place thereof the following two paragraphs:-

Each sub-bidder shall list in the sub-bid form the name and bid price of each person, firm or corporation performing each class of work or part thereof for which the section of the specifications for that sub-trade requires such listing; provided that, in the absence of a contrary provision in the specifications, any sub-bidder may, without listing any bid price, list his own name for any such class of work or part thereof and perform that work with persons on his own payroll, if such sub-bidder, after sub-bid opening, shows to the satisfaction of the awarding authority that he does customarily perform such class of work or the part thereof with employees on his own payroll who are mechanics or laborers as referred to in section twenty-six, and is qualified so to do.

If a sub-trade for which the awarding authority is required to take filed sub-bids constitutes the predominant work of the contract, the awarding authority may include that sub-trade work as part of the general bidder's work. The awarding authority shall award the general contract to the lowest responsible and eligible bidder who customarily performs that sub-trade with employees on his own payroll who are mechanics or laborers as referred to in said section twenty-six, except for any part of that sub-trade customarily performed by sub-contractors.

SECTION 50. Subsection (4) of said section 44F of said chapter 149, as so appearing, is hereby amended by striking out paragraph (a) and inserting in place thereof the following paragraph:-

(a) (1) If no sub-bid is filed for a sub-trade designated in the general bid form or if the only sub-bids which are filed are restricted to the use of one or more general bidders, the awarding authority may state, in an addendum issued with the list of sub-bidders required by subsection (3), that the general bidder shall include in the cost of his own work an amount to cover all the work required for any such sub-trade. The general contractor shall cause the work covered by such sub-trade to be done by a qualified and responsible sub-contractor, subject to the written approval of the awarding authority. If the awarding authority determines that any sub-contractor chosen by the general contractor under this section is not qualified or responsible, the general contractor shall obtain another sub-contractor who is satisfactory to the awarding authority with no adjustment in the general contractor's price.

(2) If a rejection of all sub-bids, other than as set forth above, for such a sub-trade occurs pursuant to subsection (1) or subsection (3), the awarding authority shall state, in an addendum issued with the list of sub-bidders required by said subsection (3), the amount to be included by a general bidder on the general bid form for such sub-trade; and without in any way affecting other sub-bidders who have conformed to the prescribed bidding procedure, new sub-bids for such sub-trade shall be requested forthwith by written invitation to three or more qualified sub-bidders and shall be publicly opened and read by the awarding authority at a time and place to be specified in such invitation. The general contractor shall cause the work covered by such sub-trade to be done by the lowest responsible and eligible sub-bidder against whose standing and ability the general contractor makes no objection or, if there is no such sub-bidder, by such sub-contractor against whose standing and ability the general contractor makes no objection and for such sum as the general contractor and the awarding authority may agree upon; and the contract price shall be adjusted by the difference between the sub-contract sum and the amount stated in the addendum. The general bidder shall include in the cost of his own work on the general bid form all expenses and profits on account of such adjustments.

SECTION 51. Said section 44F of said chapter 149, as so appearing, is hereby further amended by striking out subsection (5) and inserting in place thereof the following subsection:-

(5) If a general bidder customarily performs, with employees on his own payroll who are mechanics or laborers as referred to in section twenty-six, a sub-trade for which the awarding authority invites sub-bids, he may submit a sub-bid for such sub-trade which shall be considered on a par with other sub-bids, and he shall also list under the appropriate sub-bid category in his general bid his own name and sub-bid price for such sub-trade. No such sub-bid shall be considered unless the general bidder can show (a) he does so customarily perform such sub-trade, and (b) he is qualified to do the sub-trade work.

In lieu of listing his name and sub-bid price in his general bid, such general bidder may list the name and amount of the lowest responsible and eligible sub-bidder for that sub-trade if (a) such sub-bidder's price is lower than his, (b) such sub-bid is available for his use; and (c) such sub-bid is not restricted to his use alone or to his use and that of another general bidder, or bidders.

SECTION 52. Said chapter 149 is hereby further amended by inserting after section 44I the following section:-

Section 44J. (1) No public agency or authority of the commonwealth or any political subdivision thereof shall award any contract for the construction, reconstruction, alteration, repair, development, installation, maintenance, or demolition, at public expense of any building, road, bridge or other physical property, if competitive bids are required for such contract pursuant to section forty-four A of this chapter or section thirty-nine M of chapter thirty, unless a notice inviting bids therefor shall have been posted no less than one week prior to the time specified in such notice for the receipt of said bids in a conspicuous place in or near the offices of the awarding authority, and shall have remained posted until the time so specified, and unless such a notice shall also have been published at least once not less than two weeks prior to the time so specified in the central register published by the state secretary pursuant to section twenty A of chapter nine and in a newspaper of general circulation in the locality of the proposed project. Said notice shall also be published at such other times and in such other newspapers or trade periodicals as the deputy commissioner of capital planning and operations may require, having regard to the locality of the work involved.

(2) Said notice shall specify the time and place where plans and specification of the proposed work may be had; the time and place of submission of general bids; and the time and place for opening of the general bids. For contracts subject to the provisions of sections forty-four A to H, inclusive, of this chapter, said notice shall also specify the time and place for submission of filed sub-bids, where required pursuant to section forty-four F; and the time and place for opening of said filed sub-bids.

Said notice shall also provide sufficient facts concerning the nature and scope of such project, the type and elements of construction, and such other information as will assist applicants in deciding to bid on such contract.

(3) No contract or preliminary plans and specifications shall be split or divided for the purpose of evading the provisions of this section.

(4) General bids and filed sub-bids for any contract subject to this section shall be in writing and shall be opened in public at the time and place specified in the posted or published notice, and after being so opened shall be open to public inspection.

(5) The provisions of this section shall not apply to any transaction between the commonwealth and any public service corporation.

(6) The provisions of this section may be waived in cases of extreme emergency involving the health and safety of the people and their property, upon the written approval of said deputy commissioner. The written approval shall contain a description of the circumstances and the reasons for the deputy commissioner's determination.

(7) Whoever violates any provision of this section shall be punished by a fine of not more than ten thousand dollars or by imprisonment in the state prison for not more than three years or in a jail or house of correction for not more than two and one-half years, or by both said fine and imprisonment; and in the event of final conviction, said person shall be incapable of holding any office of honor, trust or profit under the commonwealth or under any county, district of municipal agency.

Each and every person who shall cause or conspire to cause any contract or preliminary plans and specifications to be split or divided for the purpose of evading the provisions of this section shall forfeit and pay to the commonwealth, a political subdivision thereof or other awarding authority subject to this section, the sum of not more than five thousand dollars and, in addition, such person or persons shall pay, apportioned among them, double the amount of damages which the commonwealth or political subdivision thereof or other awarding authority may have sustained by reason of the doing of such act, together with the costs of the action.

SECTION 53. Chapter 260 of the General Laws is hereby amended by striking out section 2B, as amended by section 2 of chapter 777 of the acts of 1973, and inserting in place thereof the following section:-

Section 2B. Action of tort for damages arising out of any deficiency or neglect in the design, planning, construction or general administration of an improvement to real property, other than that of a public agency as defined in section thirty-nine A of chapter seven shall be commenced only within three years next after the cause of action accrues; provided, however, that in no event shall such actions be commenced more than six years after the earlier of the dates of: (1) the opening of the improvement to use; or (2) substantial completion of the improvement and the taking of possession for occupancy by the owner.

Actions of tort for damages arising out of any deficiency or neglect in the design, planning, construction, or general administration of an improvement to real property of a public agency, as defined in said section thirty-nine A shall be commenced only within three years next after the cause of action accrues; provided, however, that in no event shall actions be commenced more than six years after the earlier of the dates of: (1) official acceptance of the project by the public agency; (2) the opening of the real property to public use; (3) the acceptance by the contractor of a final estimate prepared by the public agency pursuant to chapter thirty, section thirty-nine G; or (4) substantial completion of the work and the taking possession for occupancy by the awarding authority.

SECTION 54. Section ten of chapter five hundred and seventy-nine of the acts of nineteen hundred and eighty is hereby repealed.

SECTION 55. The deputy commissioner shall, on or before July first, nineteen hundred and eighty-five, promulgate rules and regulations setting forth criteria by which he shall determine whether property is surplus to current and forseeable state and direct public uses, as provided for in section twenty-two of this act.

SECTION 56. The provisions of section forty-six of this act shall apply only to contracts first advertised for bids on or after July first, nineteen hundred and eighty-five.

Approved January 7, 1985.