Code of Massachusetts Regulations 976 CMR - FINANCE ADVISORY BOARD
Here’s a detailed breakdown of 976 CMR – Finance Advisory Board (officially titled State Finance and Governance Board):
📘 Overview
976 CMR 2.00 comprises the Finance Advisory (State Finance & Governance) Board’s regulations, enacted under M.G.L. c. 6, § 98.
Last amended March 10, 2017, via Mass Register Issue 1334 (mass.gov, law.cornell.edu).
🔹 Sections in 976 CMR 2.00
§ 2.01 – Purpose & Application
Establishes the Board’s role: enhancing transparency, accountability, and financial best practices in State investments, borrowing, and transactions (mass.gov).
§ 2.02 – Definitions
Defines key terms such as “Derivative Financial Product,” “State Entity Authorized to Issue Debt,” among others (mass.gov).
§ 2.03 – Investment Policies
Requires state entities issuing debt to submit revised investment policies to the Board upon substantive changes (mass.gov).
§ 2.04 – Debt Management Policies
Mandates filing of updated debt management policies with the Board; they are made publicly available (mass.gov).
§ 2.05 – Derivative Transactions Review
Stipulates detailed submission requirements before entering derivative financial transactions, including third-party analyses, board minutes, risk/benefit assessments, and follow‑up reports .
§ 2.06 – Qualified Conduit Debt & Derivatives with Guarantee
Covers structured conduit debt transactions involving derivatives, with special rules depending on guarantees up to $1 million, including quarterly reporting (mass.gov).
§ 2.07 – Waivers for Negotiated Bond Sales
Defines process and documentation required when a state entity authorized to issue debt (e.g., Mass Clean Water Trust, UMass Building Authority) seeks to sell bonds on a negotiated – rather than competitively bid – basis, with Board waivers valid for six months (mass.gov).
**§ 2.08 – Contact Info**
Specifies where to submit required documents:
State Finance & Governance Board
c/o Director of Debt Management, EOA&F, State House, Room 373, Boston, MA 02133 (law.cornell.edu, mass.gov).
✅ Key Takeaways
Authority & Scope: Covers all Massachusetts state entities authorized to issue debt (e.g., MBTA, MassDOT, UMass, Water Trusts).
Transparency Measures: Requires submission of policies and detailed reviews—including for complex derivative transactions—to promote prudent financial oversight.
Special Procedures: Offers defined paths for negotiated bond sales and conduit debt offers, with Board review and waiver systems in place.
Public Access: Submitted policies are accessible to the public; reports and Board findings support accountability.
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