(1) Application. 801 CMR 50.00 shall apply to any office, department, agency, office, board, commission or institution of the Executive Department, excluding the Legislative and Judicial Branches, the Constitutional Offices, and independent public authorities. Voluntary compliance of excluded entities with the provisions of 801 CMR 50.00 is encouraged.

(2) Purpose. The purpose of 801 CMR 50.00 is to provide departments of the Commonwealth with uniform rules and procedures pertaining to the acceptance and expenditure and use of funds and other assets (including grants, gifts, cash and in-kind contributions) from any person, or any quasigovernmental, municipal governmental, or other nongovernmental entities as an expendable trust by a Secretary. Unless otherwise provided by law, a department shall accept, use and expend such and other contribution funds only in accordance with the procedures set forth herein.

(3) Scope. While only Executive Office Secretaries are authorized to establish Expendable Trusts pursuant to 801 CMR 50.00, the head of any other state entity may request the Secretary of Administration to establish such a Trust.

(4) Effective Date. 801 CMR 50.00 shall be effective on June 8, 1993.

(5) Authority. 801 CMR 50.00 is promulgated under the authority of M.G.L. c. 6A, § 6 and c. 7, § 4F.

Declaration of Trust. The formal legal instrument, which may be a declaration, an agreement or a similar instrument, governing operation of the Expendable Trust.

Department. Any office, department, agency, office, board, commission or institution in the Executive Department, but excluding the Legislative and Judicial Branches, the Constitutional Offices and independent public authorities. Organizations recognized as departments have unique departmental identification in the state accounting system.

Department Head. The head of any Department, including the Secretary when exercising authority over the Executive Office as a Department.

Executive Office. Any of the Executive Offices established by M.G.L. c. 6A and c. 7. For the purposes of 801 CMR 50.00, "Secretariat" shall have the same meaning as "Executive Office".

Expendable Trust. An account on the Commonwealth established on MMARS, and with the State Treasurer into which are deposited monies, other assets, or both which are held by the Commonwealth or any of its Executive Offices in trust and from which both principal and interest may be expended only in accordance with the terms of the trust. The terms and conditions for financial accounting and reporting of an Expendable Trust shall be determined by generally accepted accounting principles as promulgated for governments by the Governmental Accounting Standards Board.

MMARS. The Massachusetts Management Accounting and Reporting System established by the Comptroller of the Commonwealth of Massachusetts pursuant to M.G.L. c. 7A, § 7.

Non-Executive Office Department. A department within the Executive Department of the Commonwealth which is not subject to the jurisdiction of an Executive Office or an entity excluded by 801 CMR 50.01(1).

Office of the Comptroller (the Comptroller). The Office established by M.G.L. c. 7A.

Person. An individual, corporation, society, association or partnership.

Secretary. The Secretary of any Executive Office, as established by M.G.L. c. 6A or c. 7, or duly authorized designee.

(1) A Secretary seeking to establish an Expendable Trust shall submit a written request therefor to the to the Secretary of Administration. The request shall include:

(2) Upon receipt of approval from the Secretary of Administration, the requesting official shall forward to the Comptroller a copy of the approved request and the final Declaration of Trust.

(3) The Comptroller shall coordinate the establishment of a separate account for the Expendable Trust with the State Treasurer and establish the appropriate accounts in MMARS.

(4) The requesting official shall ensure transactions in the Expendable Trust are reported and accounted for in accordance with MMARS Policies and Procedures.

(5) Unless otherwise provided by law, revenue and expenditure activity pursuant to 801 CMR 50.00 is authorized by M.G.L. c. 6A, § 6 or M.G.L. c. 7, § 4F and governed by 801 CMR 50.00 and related declarations of trust and is not subject to appropriation.

(6) The Trust shall terminate at the direction of the trustee or trustees or the Secretary of Administration or as provided in the Declaration of Trust.

(7) Any balance remaining at termination of the Expendable Trust shall revert to the Commonwealth unless otherwise provided in the Declaration of Trust.

The Declaration of Trust shall address the particular purposes for which the Expendable Trust is created and shall include the following subject matters, as applicable:

(1) Establishment of the Expendable Trust

(2) Name of Expendable Trust

(3) Appointment of Trustee

(4) Governance

(5) Contributions to the Expendable Trust

(6) Exclusive Purposes of the Expendable Trust

(7) Payments from the Expendable Trust

(8) Administrative Powers

(9) Accounting

(10) Amendments

(11) Governing Law

(12) Additional and Successor Trustees

(13) Compensation of Trustees

(14) Termination

The Secretary of Administration and Finance may grant a written waiver from one or more of the provisions of 801 CMR 50.00 upon written request of a Secretary based on special circumstances or need, provided that such request shall be in writing, signed by the Secretary, and shall contain at a minimum the following:

(1) the signature of the Secretary of the Executive Office;

(2) the transactions to which such waiver would apply and the provisions of 801 CMR 50.00 to be waived;

(3) the reasons for the request, including if relevant, any effort to comply with 801 CMR 50.00; and

(4) all documentation supporting the special circumstances or need for such requested relief.

The granting of a waiver pursuant to 801 CMR 50.06 shall not relieve the Secretary of responsibility to comply with the other provisions of 801 CMR 50.00 and all other relevant requirements of law. If the waiver is granted, the Secretary shall file a copy of such waiver with the Office of Comptroller.

801 CMR 50.00: M.G.L. c. 6A, § 6; c. 7, § 4F.