Chapter 29 of the General Laws is hereby amended by inserting after section 29J, inserted by section 21 of chapter 131 of the acts of 2010, the following section:-
Section 29K. (a) Each state authority shall:
(1) if it receives more than $500,000 in any year from the commonwealth, arrange for an independent financial audit of those funds, according to regulations adopted by the secretary of administration and finance. Each such audit shall be filed with the state auditor for her examination, review and comment;
(2) establish an audit committee that shall meet independently of management, retain an independent auditor, and hear the results of the annual audit;
(3) establish a compensation committee that shall meet independently of management and shall evaluate and establish executive compensation, including benefits. In establishing executive compensation, the committee shall conduct an analysis of comparable compensation for similar officers of state government, other authorities, and private-sector employers with similar functions and responsibilities. No executive of a state authority shall be compensated for sick, vacation, or other leave time to an extent greater than state employees, nor be granted severance pay after removal for cause, nor be granted severance pay in excess of 3 months' salary if removed other than for cause; and
(4) prepare an annual financial report which shall disclose the salaries of its executive director, officers, senior management, and other highly compensated employees,
(b) The commonwealth shall not subsidize the pension and other post-employment benefits of non-commonwealth retirees. The secretary of administration and finance shall adopt regulations to ensure that state authorities and other independent entities that participate in the state retirement system or the group insurance commission, as determined by the comptroller, are not subsidized by state appropriation, and that the public employee retiree administration commission and the group insurance commission shall charge them the full actuarial value of their liabilities.
(c) The secretary of administration and finance may adopt regulations to carry out this section.
This section requires every state authority to: * conduct independent financial audits, to be filed with the State Auditor; * set executive compensation based on an analysis of comparable public- and private-sector compensation; and * disclose salaries of highly compensated employees in an annual report. It also prohibits the Commonwealth from subsidizing the pension and other post-employment benefits of non-commonwealth retirees.