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The 193rd General Court of the Commonwealth of Massachusetts

Section 97: State finance and governance board; membership

Section 97. (a) As used in this section and section 98, the following words shall have the following meanings:

''Board'', the state finance and governance board established by subsection (b).

''Derivative financial products'', financial instruments with values derived from or based upon the value of other assets or on the level of an interest rate index including, but not limited to, detached call options, interest rate swaps or swaptions, caps, floors and collars, but not including bond insurance or other credit or liquidity enhancement of bonds or notes or agreements related to the lending or investment of the proceeds of bonds or notes.

''State entity'', the commonwealth, a state authority or another state entity with responsibility for managing and overseeing public funds.

''Secretary'', the secretary of administration and finance.

(b) There shall be a state finance and governance board consisting of 5 members: 3 of whom shall be appointed by the governor and 2 of whom shall be appointed by the state treasurer. Upon the expiration of the term of a member, a successor shall be appointed for a term of 4 years. At least 2 members appointed by the governor shall be persons with expert knowledge of the field of public finance. The governor shall designate 1 of the members to serve as chair. The members shall serve without compensation but shall receive their necessary expenses incurred in the discharge of their official duties. The secretary shall provide the board with appropriate staff and other assistance and may engage professionals to advise the board.