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Article 23 - Appropriation of Proceeds from the TNC Per Ride Assessment Funds pdf file
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Geoffrey E. Snyder
Commissioner of Revenue
Sean R. Cronin
Senior Deputy Commissioner
Local Finance Opinion
LFO-2022-3
September 2022
TOPIC: Transportation Network Company Per-ride Assessment Distribution
ISSUE: Municipal finance and accounting treatment of money received from the Commonwealth
Transportation Infrastructure Fund
This LFO addresses questions relating to the municipal finance and accounting treatment of moneys
distributed to a city, town or district from the Commonwealth Transportation Infrastructure Fund.
1. What is the Commonwealth Transportation Infrastructure Fund?
Under Chapter 187 of the Acts of 2016, as amended by Chapter 176 of the Acts of 2022, certain
transportation network companies must submit to the Transportation Network Company Division (TNC
Division) of the Department of Public Utilities (DPU) the number of rides from the previous calendar
year that originated within each city or town and a per-ride assessment of $0.20. The assessment is
credited to the Commonwealth Transportation Infrastructure Fund (Fund). St. 2016, c. 187, § 8(a). Each
year, one half of the amount credited to the Fund will be distributed by the DPU proportionately to each
city and town based on the number of rides that originated in that city or town. St. 2022, c. 176, § 27.
2. What is the general rule related to the receipt of money by a city, town or district officer or
department?
All money received or collected from any source by a city, town or district belongs to its general fund
and can only be spent after appropriation unless a general or special law provides an exception, i.e.,
expressly restricts use for a particular purpose or allows expenditure by a department or officer without
appropriation. G.L. c. 44, § 53.
3. Is there an exception to the general rule for money received from the Commonwealth
Transportation Infrastructure Fund?
Yes. Money distributed to cities and towns from the Fund is special revenue earmarked for use by cities
and towns “to address the impact of transportation network services on municipal roads, bridges and
other transportation infrastructure or any other public purpose substantially related to the operation of
transportation network services in the city or town including, but not limited to, the complete streets
program established in section 1 of chapter 90I of the General Laws and other programs that support
alternative modes of transportation.” St. 2022, c. 176, § 27.
Supporting a Commonwealth of Communities
www.mass.gov/DLSSource page 2
LFO-2022-3
September 2022
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However, the Act does not authorize any particular department or officer to spend the distributed
money without “specific” or “further” appropriation for any of those statutory purposes. See, e.g., G.L.
c. 40, § 3 (municipal and school rental revenues); G.L. c. 44, § 53A (money gifts and grants); G.L. c.
44, § 53E½ (departmental fees and charges); and G.L. c. 71, § 47 (school activity fees and charges).
Therefore, the general rule requiring an appropriation to spend the money still applies. The accounting
officer must establish a receipts reserved for appropriation account for this distribution and credit the
money received to that account. To use the money for any allowable purpose, the legislative body must
appropriate from available funds in the account.
However, starting with distributions received on or about June of 2023, if the amount of the distribution
to a city or town is $25,000 or less, the chief executive officer as defined in section 7 of chapter 4 of the
General Laws may expend the funds for the statutory purposes without further appropriation. St. 2022,
c. 176, § 27.
4. Are there any reporting requirements?
Yes. For fiscal year 2023, each city or town receiving a distribution from the Fund must submit a report
to the TNC Division not later than December 31, 2022 that details the allowable transportation-related
projects conducted, including amounts used or planned to be used for those projects.
Per St. 2022, c. 176, § 27, starting fiscal year 2024, in each year where a city or town receives a
distribution of more than $25,000, the city or town must submit a report to the TNC Division not later
than December 31 that details the allowable transportation-related projects conducted, including
amounts used or planned to be used for those projects. Additionally, each city or town that has received
a cumulative total distribution from the Fund of more than $25,000 since its last report to the TNC
Division must submit a report to the TNC Division not later than December 31 of that year that details
the allowable transportation-related projects conducted, including amounts used or planned to be used
for those projects. Lastly, each city or town which has a cumulative total distribution from the Fund of
$25,000 or less in the five years since their last report to the TNC Division must submit a report to the
TNC Division not later than December 31 of that year that details the allowable transportation-related
projects conducted, including amounts used or planned to be used for those projects. The TNC Division
is required to compile the reports and post the projects and amounts of money used on its website.
Additionally, please note that the TNC Division will withhold future disbursements until the reporting
requirements are satisfied.
Kenneth M. Woodland, Chief
Bureau of Municipal Finance Law