General Laws

[ Text of section effective until January 1, 2013. For text effective January 1, 2013, see below.]

  Section 1. As used in this chapter, the following words shall, unless the context requires otherwise, have the following meanings. All words and terms defined by section thirty-nine A of chapter seven and appearing in this chapter, except for the phrase "state agency'', shall have the meaning defined therein unless the context shall indicate another meaning or intent:--

  "Account'' or "Line-item'', a separate unit of appropriation identified by an eight-digit number.

  "Appropriation'', the authorization by the general court with the approval of the governor, or by overriding his objection thereto, of the expenditure of state revenues from a specified fund for a specified purpose up to a specified maximum amount for a specified period of time.

  "Balanced budget'', a condition of state finance in which the following requirements are met:

  (i) the consolidated net surplus at the end of the fiscal year is greater than or equal to one-half of 1 per cent of state tax revenues for such fiscal year; and

  (ii) the amount transferred to the stabilization fund under subsection (a) of section 5C is greater than or equal to 1/2 of 1 per cent of state tax revenue for such fiscal year.

  "Bond fund'', a fund of the commonwealth into which bond revenues are deposited.

  "Bond revenues'', the proceeds of bonds issued by the commonwealth and the interest earned thereon.

  "Budget director'', the administrative head of the fiscal affairs division within the executive office for administration and finance.

  "Budgetary funds'', state funds which are subject to appropriation as provided in section six.

  "Budgeted revenues and other financial resources pertaining to the budgeted funds'', inflows from tax and nontax sources that are directed by law to be accounted and reported to a fund which is subject to annual appropriation.

  "Commissioner'', the commissioner of administration as provided for in section four of chapter seven.

[ Definition of "Consolidated net surplus in the budgetary funds'' effective until February 17, 2012. For text effective February 17, 2012, see below.]

  "Consolidated net surplus in the budgetary funds'', the sum of the undesignated balances in the budgetary funds, except funds established by section 2H and section 2I and by section 2C of chapter 131.

[ Definition of "Consolidated net surplus in the budgetary funds'' as amended by 2012, 36, Sec. 4 effective February 17, 2012. For text effective until February 17, 2012, see above.]

  "Consolidated net surplus in the budgetary funds'', the sum of the undesignated balances in the budgetary funds, except funds established by section 2H and section 2I and by section 2C of chapter 131 and section 35NN of chapter 10.

  "Council'', the Robert H. Goddard Council on Science, Technology, Engineering and Mathematics Education established pursuant to section 4A of chapter 15A.

  "Direct appropriation'', a first-time appropriation of state revenues, from sources other than bond revenues, retained revenues, and federal grants.

  "Direct debt limit'', the sum of the principal amounts of all direct debt issued by the commonwealth for the purposes of financing state projects and purposes with the exception of debt issued on a short-term basis in anticipation of receipts from taxes and other sources.

  "Federal grant'', any financial assistance available to a state agency from the United States government, either directly or through an intermediary, whether a project, formula, or block grant, a subvention, a subsidy, an augmentation, or a state plan. For the purposes of this chapter "federal grant'' shall not mean such financial assistance provided pursuant to Titles XVIII or XIX of the Social Security Act or other reimbursements received for state entitlement expenditures and credited to the General Fund nor does it mean federal financial assistance from the United States government for direct payments to individuals, or for other purposes as provided for in section thirty-four of chapter ninety, section two of chapter one hundred and thirty-one, section ten of chapter one hundred and thirty-two A, section two E of chapter twenty-nine, chapter ninety-two, and section forty-eight of chapter one hundred and fifty-one A.

  "Fund'', an accounting entity established by general or special law to record all the financial resources or revenues together with all related expenditures or liabilities that are segregated for a particular purpose.

  "Prior appropriation continued'' or "PAC'', a phrase used to reappropriate unexpended and unencumbered monies from one fiscal year for the subsequent fiscal year.

  "Retained revenue'', the income of state agency or other public instrumentality from its operations which by law it is allowed to expend for a particular purpose up to a specified limit without further appropriation which would otherwise be subject to direct appropriation.

  "Revenue retention account'', an account which allows a state agency or other public instrumentality to use retained revenue during the fiscal year in which such revenue is received to maintain all or a portion of its operations.

  "Revolving account'', a revenue retention account in which the retained revenues unspent or unencumbered at the end of a fiscal year are carried over into the next fiscal year for expenditure.

  "Secretary'', the officer in charge of each executive office established by chapters six A and seven; provided, however, that secretary shall mean the board for the board of regents of higher education and the board of education; and provided, further that secretary shall mean the court for the supreme judicial court.

  "State agency'', a state agency, board, bureau, department, division, section, or commission of the commonwealth.

  "State authority'' a body politic and corporate constituted as a public instrumentality of the commonwealth and established by an act of the General Court to serve an essential governmental function; provided, however, that state authority shall not include: (1) a state agency; (2) a city or town; (3) a body controlled by a city or town; or (4) a separate body politic where the governing body is elected, in whole or in part, by the general public or by representatives of member cities or towns.

  "State revenue'', all income from state taxes, state agency fees, fines, assessments, charges, and other departmental revenues, retained revenues, federal grants, federal reimbursements, lottery receipts, court judgments and the earnings on such income.

  "State tax revenues'', the revenues of the commonwealth from every tax, surtax, receipt, penalty and other monetary exaction and interest in connection therewith including, but not limited to, taxes and surtaxes on personal income, excises and taxes on retail sales and use, meals, motor vehicle fuels, businesses and corporations, commercial banks, insurance companies, savings banks, public utilities, alcoholic beverages, tobacco, inheritances, estates, deeds, room occupancy and pari-mutuel wagering, but excluding revenues collected by the state from local option taxes, so-called, for further direct distribution to cities and towns.

  "Tax expenditures'', state tax revenue foregone as a direct result of the provisions of any general or special law which allows exemptions, exclusions, deductions from, or credits against, the taxes imposed on income, corporations, and sales.

  "Trust fund'', a fund into which are deposited monies held by the commonwealth or state agencies in a trustee capacity and which must be expended in accordance with the terms of the trust.

Chapter 29: Section 1. Definitions

[ Text of section as recodified by 2012, 165, Sec. 112 effective January 1, 2013. See 2012, 165, Sec. 137. For text effective until January 1, 2013, see above.]

  Section 1. All words and terms defined by section 1 of chapter 7C and appearing in this chapter, except for the phrases "state agency'' and "state authority'', shall have the meaning defined in that section, unless the context shall indicate another meaning or intent.

  As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:--

  "Account'', a separate 8-digit number designated in the state accounting system to separately record budgetary, bond, federal or trust funds.

  "Agency head'' or "department head'', the administrative head of a state agency, department, board, bureau, office or division of the commonwealth who has been authorized through legislation to obligate and expend funds, comply with legislative mandates and make any certifications or approvals required under this chapter or other state or federal laws or regulations requiring an agency head certification or approval.

  "Allotment'', that portion of an appropriation that may be spent by a department for a specified period as determined by the governor or the secretary of administration and finance under section 9B.

  "Allowable growth'', the product of the percentage change in the personal income of residents of the commonwealth as most recently reported by the federal Bureau of Economic Analysis, from the index so reported 12 months before, and a factor of -5.

  "Appropriation'', the authorization by the general court with the approval of the governor, or by overriding the governor's objection to the authorization, of the expenditure of budgeted revenues from a specified fund for a specified purpose up to a specified maximum amount for a specified period of time.

  "Balanced budget'', a condition of state finance in which the following requirements are met:

  (i) the consolidated net surplus at the end of the fiscal year is greater than or equal to .5 per cent of state tax revenues for such fiscal year; and

  (ii) the amount transferred to the stabilization fund under subsection (a) of section 5C is greater than or equal to .5 per cent of state tax revenue for such fiscal year.

  "Bond authorization'', authorization by the legislature under section 3 of article LXII of the Amendments to the Constitution to borrow money.

  "Bond fund'', a fund of the commonwealth into which bond revenues are deposited and from which spending may occur.

  "Bond revenues'', the proceeds of bonds issued by the commonwealth and the interest earned on those bonds.

  "Budget director'', the administrative head of the fiscal affairs division within the executive office for administration and finance.

  "Budgetary funds'', state funds which are subject to appropriation as provided in section 6.

  "Budgeted revenues'', all income in the budgetary funds from state taxes, departmental revenues, including retained revenues, federal reimbursements and transfers of budgeted revenues among funds, but not including federal grants.

  "Capital appropriation'', an authorization by the general court of the expenditure of bond revenues, with the approval of the governor or by legislative override of a gubernatorial objection to such an authorization.

  "Consolidated net surplus'', the sum of the undesignated balances in the budgetary funds, except funds established by section 2H and section 2I and by section 2C of chapter 131 and section 35NN of chapter 10.

  "Deficiency'', a condition of state finance in which expenditures during a fiscal year are expected to exceed the appropriation that authorizes those expenditures.

  "Departmental revenues'', all income from state agency fees, whether established under section 3B of chapter 7 or otherwise, lottery receipts, fines, assessments, charges or court judgments, including retained revenues and the earnings on all state revenues.

  "Direct appropriation'', a first-time appropriation of budgeted revenues, from sources other than retained revenues.

  "Direct debt'', the sum of the principal amounts of all direct debt issued by the commonwealth to finance state projects and purposes, including obligations for leases for capital projects, except debt issued on a short-term basis in anticipation of receipts from taxes and other sources.

  "Federal grant'', any financial assistance available to a state agency from the United States government, either directly or through an intermediary, including a project, formula, or block grant, a subvention, a subsidy, an augmentation or a state plan but excluding federal reimbursements.

  "Federal reimbursements'', financial assistance provided under Titles XVIII or XIX of the Social Security Act or other reimbursements received for state entitlement expenditures and credited to the General Fund, or other federal financial assistance from the United States government for direct payments to individuals, or for other purposes as provided for in section 2ZZZ, section 34 of chapter 90, chapter 92 and section 48 of chapter 151A.

  "Fund'', an accounting entity established by general or special law to record all financial resources or revenues, together with all related expenditures or liabilities, that have been segregated for a particular purpose including, but not limited, to a grouping of related accounts into which resources have been further segregated for specific activities and purposes.

  "Line-item'', a separate unit of appropriation identified by an 8-digit number representing a specific spending account authorized for a specific purpose and a defined amount.

  "Prior appropriation continued'' or "PAC'', the re-appropriation of unexpended and unencumbered monies from one fiscal year for the following fiscal year.

  "Retained revenue'', income of a state agency or other public instrumentality, derived from its operations and which, by law, such agency or instrumentality may expend for a particular purpose up to a specified limit, without further appropriation, which would otherwise be subject to direct appropriation.

  "Retained revenue line-item'', a line-item which allows a state agency or other public instrumentality to use retained revenue during the fiscal year in which such revenue is received to maintain all or a portion of its operations.

  "Revenue account'', a unique account established by the comptroller to record the collection of revenue by a state agency.

  "Secretary'', the officer in charge of each executive office established by chapter 6A or chapter 7 and the supreme judicial court.

  "State agency'' or "state department'', a legal entity of state government established by the General Court as an agency, board, bureau, department, office or division of the commonwealth with a specific mission, which may either report to cabinet-level units of government, known as executive offices or secretariats, or be independent divisions or departments.

  "State authority'' a body politic and corporate constituted as a public instrumentality of the commonwealth and established by an act of the General Court to serve an essential governmental function; provided, however, that state authority shall not include: (1) a state agency; (2) a city or town; (3) a body controlled by a city or town; or (4) a separate body politic for which the governing body is elected, in whole or in part, by the general public or by representatives of member cities or towns.

  "State revenue'', inflows from tax and nontax sources that, by law, shall be accounted and reported to a fund.

  "State tax revenues'', the revenues of the commonwealth from every tax, surtax, receipt, penalty and other monetary exaction and interest in connection therewith including, but not limited to, taxes and surtaxes on personal income, excises and taxes on retail sales and use, meals, motor vehicle fuels, businesses and corporations, financial institutions, insurance companies, public utilities, alcoholic beverages, tobacco, inheritances, estates, deeds, room occupancy and pari-mutuel wagering, but excluding revenues collected by the state from local option taxes for further direct distribution to cities and towns.

  "Surplus'', a condition of state finance in which an appropriation is expected to exceed expenditures from that appropriation during a fiscal year.

  "Tax expenditures'', state tax revenue foregone as a direct result of any general or special law which allows exemptions, deferrals, deductions from or credits against taxes imposed on income, businesses and corporations, financial institutions, insurance and sales but excluding revenue foregone as a direct result of any general or special law which allows a personal income tax exemption. Sales that do not involve tangible personal property shall not result in tax expenditures under this definition.

  "Trust'', an account or fund into which are deposited monies held by the commonwealth or state agencies in a trustee capacity and which must be expended in accordance with the terms of the trust.