Bill > S1503

This bill requires the Treasurer of the Commonwealth, along with quasi-public entities and independent authorities, to submit biannual reports on their borrowing practices and any transactions involving "derivative financial products," which are financial instruments whose value is derived from other assets or interest rate indexes, such as interest rate swaps or auction rate securities, excluding standard fixed-rate, long-term borrowing. These reports, due by April 30th and October 31st each year, must detail the terms, parties involved, agreements, financial impact, and the rationale behind entering into these derivative transactions, and also disclose any interactions with lobbyists and whether the transaction was negotiated or bid upon. Furthermore, before any such transaction is authorized, the Secretary of Administration and Finance, in consultation with the State Treasurer, must submit a report to legislative committees confirming their approval and providing supporting documentation. The House and Senate Committees on Bonding, Capital Expenditures & State Assets are granted oversight authority over these capital programs, with the power to summon witnesses and compel evidence, and can conduct special studies or investigations as needed.