Session Laws

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. Section 3 of chapter 7A of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by inserting after the first paragraph the following three paragraphs:-

This authority shall pertain to all accounts and funds of the commonwealth unless specifically exempted by general or special law.

The comptroller may exclude from such certificate any amount otherwise due to any person owing an overdue debt to the commonwealth or any agency thereof; provided, however, that the head of such agency has filed with the comptroller an affidavit specifying that such debt exists, the amount due and the name of the debtor. Any such debt may be charged by the comptroller against any amount otherwise due from the commonwealth to such debtor, subject to regulations promulgated by the comptroller. Such regulations shall include but not be limited to the following requirements:

(1) that said agency issue four written notices to the debtor over a one hundred and twenty day period prior to requesting exclusion of such overdue amounts from such certificate;

(2) that such notices advise the debtor of his right to a hearing before said agency, and;

(3) that, unless otherwise provided by law, said agency shall hold a hearing pursuant to the provisions of chapter thirty A upon timely written application of the debtor.

Said regulations may authorize the comptroller to waive requirements at the request of an agency head provided that all waivers shall be in writing and state the reasons therefor.

SECTION 2. Said chapter 7A is hereby further amended by striking out sections 5 and 5A, as so appearing, and inserting in place thereof the following two sections:-

Section 5. All bills and vouchers on which money has been or may be paid from the treasury upon the certificate of the comptroller or the warrant of the governor shall be kept in the office of the comptroller; and all departments, offices, commissions and institutions authorized to make contracts under which money may be payable from the treasury shall file as directed by the comptroller, before payment, certified copies thereof. The comptroller shall publish regulations prescribing the medium, and the central repository location of such copies; provided, that such regulations shall ensure that the house and senate committees on ways and means have full access to such copies. The comptroller is authorized and directed to establish a vendor payment schedule which may be revised from time to time. Notwithstanding any general or special law to the contrary such schedule shall be based on sound business principles as determined by the comptroller and shall provide for maximum utilization of discounts allowed for prompt payment.

Section 5A. The comptroller shall adopt rules and regulations, providing for the payment by the commonwealth of penalty interest in accordance with the provisions of section twenty-nine B of chapter twenty-nine and the U.S. Cash Management Improvement Act of 1990, 31 U.S.C. 650, et seq.

SECTION 3. Section 7 of said chapter 7A, as so appearing, is hereby amended by adding the following sentence:- Such instructions will pertain to the financial accounting of assets, liabilities, fund equities, revenues, and expenses of all funds unless specifically exempted by general or special law.

SECTION 4. Said chapter 7A, as so appearing, is hereby further amended by striking out section 8 and inserting in place thereof the following section:-

Section 8. The comptroller shall keep all general books of account and determine the extent and character of subsidiary accounts to be kept by all departments, offices, commissions and institutions of the commonwealth. He shall have full authority to prescribe, regulate and make changes in the method of keeping and rendering accounts. He shall establish in each such department, office, commission and institution a proper system of accounts, which shall be uniform so far as is practicable, and a proper system of accounting for supplies, materials and fixed assets. He shall provide such safeguards and systems of checking as will ensure, so far as possible, the proper collection of all revenue due the commonwealth. The comptroller shall review at least annually all accounting systems related to nontax revenue for conformity to and compatibility with the standards of performance embodied in the state accounting system. Based on such reviews, the comptroller is authorized to direct state departments to implement such changes in such accounting systems as he deems necessary to meet statewide standards. Such direction shall govern all commonwealth funds and accounts unless specifically exempted by general or special law.

The comptroller is further authorized to direct departments to withhold services, exclusive of those related to health, welfare or public safety which are mandated by law, from any debtor as defined in section one of chapter sixty-two D subject to regulations promulgated by the comptroller. Such regulations shall include but not be limited to the following requirements:

(1) that the creditor agency issue four written notices to the debtor over a one hundred and twenty day period prior to requesting withholding of such services;

(2) that such notices advise the debtor of his right to a hearing before said agency; and

(3) that, unless otherwise provided by law, said agency shall hold a hearing pursuant to the provisions of chapter thirty A upon timely written application of the debtor.

Said regulations may authorize the comptroller to waive requirements at the request of an agency head provided that all waivers shall be in writing and state the reasons therefor.

The comptroller shall set the late charge rate provided for under section twenty-nine H of chapter twenty-nine semiannually on January first and July first each year; provided, however, that said rate be equal to twice the discount rate charged on said dates by the Federal Reserve Bank of Boston.

SECTION 5. Said chapter 7A is hereby further amended by striking out section 9, as so appearing, and inserting in place thereof the following two sections:-

Section 9. The comptroller shall keep a distinct account, under appropriate headings, of all revenues and expenses. He shall keep an account of all funds and of other public property and of all debts and obligations due to and from the commonwealth; and for such purpose he shall have free access to the books and papers of all departments, offices, commissions and institutions for all accounts and funds of the commonwealth unless specifically exempted by general or special law.

Section 9A. The comptroller is hereby authorized and directed to work with the state auditor's office and other audit entities as appropriate to ensure the audit of commonwealth financial operations in conformity to generally accepted auditing standards and generally accepted governmental auditing standards. In the performance of the state auditor's or other audit entity's functions relative to audit, the records, resources, and full cooperation of the office of the comptroller shall be available.

The comptroller shall review, revise and publish internal control guidelines mandated by chapter six hundred and forty-seven of the acts of nineteen hundred and eighty-nine. In making such revisions he shall consult with the office of the state auditor to ensure the guidelines accurately reflect the role of the office of state auditor in the review and oversight of internal control practices.

SECTION 6. Chapter 29 of the General Laws is hereby amended by inserting after section 29G, as so appearing, the following two sections:-

Section 29H. Except as otherwise provided by law, the officer having charge of any state agency is hereby authorized to assess and collect a late charge against any person owing an overdue payment to the commonwealth subject to the following provisions:

(1) that the required payment date shall be the date on which payment is due under the laws, rules or regulations administered by such agency;

(2) that the late charge rate provided for under this section shall not exceed that computed as prescribed in section eight of chapter seven A but a lower rate or a flat fee or both may be applied; and

(3) that notice of intent to assess and collect that late charge shall be provided to the debtor prior to collection.

Any state agency is authorized to adopt rules and regulations to implement the provisions of this section.

Any state agency collecting late charges under the provisions of this section shall deposit all amounts collected in the revenue account that pertains to the original accounts receivable.

The comptroller shall include in the annual financial report a summary report on any late charges collected under this section during the preceding fiscal year. Such report shall include the number, amounts, and frequency of late charges collected, summarized by state agency and secretariat, where applicable.

Section 29I. The comptroller shall develop and implement a payment system and regulations for interdepartmental fiscal transactions including interdepartmental service agreements and interdepartmental chargebacks. The chargeback system and regulation shall require state agencies that purchase legislatively authorized goods or services from approved chargeback departments to remit fiscal obligations within thirty days of receipt of notice of said obligation. The comptroller shall submit periodic reports on request to the house and senate committees on ways and means listing those agencies which do not meet the thirty day payment schedule. Said report shall also include but not be limited to the identification of the agency receiving said goods or services and the agency providing said goods or services; provided, that said identification includes the name of the agency and the item number, the goods or services provided, and the amount of outstanding obligation. The comptroller is authorized to take such action as he deems necessary to ensure compliance with the payment obligations under this section.

SECTION 7. Section 1 of chapter 62D of the General Laws, as so appearing, is hereby amended by inserting after the word "sum", in line 20, the following words:- or any liquidated sum, certified by the comptroller as due and owing to any state agency, as defined in section one of chapter twenty-nine.

SECTION 8. Said section 1 of said chapter 62D, as so appearing, is hereby further amended by inserting after the word "corporation", in line 26, the following words:- or any individual or entity owing a debt as defined herein.

SECTION 9. Said section 1 of said chapter 62D, as so appearing, is hereby further amended by striking out, in line 32, the word "individual's".

SECTION 10. Section 4 of said chapter 62D, as so appearing, is hereby amended by inserting after the word "loan", in line 6, the following words:- or with respect to any other debt as defined in section one, the name of the agency owed as the subject matter and amount of the debt.

SECTION 11. Section 13 of said chapter 62D, as appearing in section 8 of chapter 460 of the acts of 1993, is hereby amended by striking out the words "and (v) the board of regents of higher education" and inserting in place thereof the following words:- (v) the higher education coordinating council; and (vi) other debts as defined in section one in the order certified by the comptroller.

SECTION 12. Section 4 of chapter 268 of the acts of 1990, as amended by section 219 of chapter 138 of the acts of 1991, is hereby further amended by striking out the words "September first" and inserting in place thereof the words:- September fifteenth.

SECTION 12A. Notwithstanding the provisions of any general or special law to the contrary, charges for the cost of computer resources and services provided by the bureau of computer services for the design, development, and production of reports and information required for the analysis and development of appropriations bills shall not be charged to any item of appropriation of the house of representatives, the senate or any joint legislative account in fiscal year nineteen hundred and ninety-five. For the purposes of this section, computer resources and services shall include, but shall not be limited to, the following: IMAGINE, the data warehouse, so-called, the Massachusetts management accounting and reporting system, and the personnel administrative reporting information system.

SECTION 13. The comptroller initially shall set the late charge authorized by section twenty-nine H, of chapter twenty-nine of the General Laws, inserted by section six of this act, at twice the discount rate charged on the effective date of this act.

SECTION 14. The provisions of section twenty-nine H of chapter twenty-nine of the General Laws as added by section six of this act shall apply to payment obligations incurred after the effective date of this act.