2018 -- H 7485

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LC003767

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

     

     Introduced By: Representatives Filippi, Price, Giarrusso, Nardolillo, and Roberts

     Date Introduced: February 07, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-64-28 of the General Laws in Chapter 42-64 entitled "Rhode

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Island Commerce Corporation" is hereby amended to read as follows:

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     42-64-28. Annual financial reports and performance report. Annual and quarterly

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financial reports and performance report.

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     (a) The board shall approve and the Rhode Island commerce corporation shall submit to

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the governor, the president of the senate, the speaker of the house of representatives, and the

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secretary of state, within eleven (11) months after the close of its fiscal year, complete and

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detailed annual financial reports and a performance report. These reports shall cover the

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corporation and its subsidiaries and shall be posted electronically on the general assembly and the

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secretary of state's websites as prescribed in § 42-20-8.1.

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     (b) The annual financial reports shall set forth the corporation's:

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     (1) Operations;

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     (2) Receipts and expenditures during the fiscal year in accordance with the categories and

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classifications established by the corporation for its operating and capital outlay purposes

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including a listing of all private consultants engaged by the corporation on a contract basis and a

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statement of the total amount paid to each private consultant, a listing of any staff supported by

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these funds, and a summary of any clerical, administrative or technical support received;

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     (3) Assets and liabilities at the end of its fiscal year including a schedule of its leases and

 

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mortgages and the status of the reserve, special or other funds;

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     (4) Schedule of the bonds and notes outstanding at the end of its fiscal year together with

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a statement of amounts redeemed and incurred during the fiscal year;

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     (5) The reports shall be prepared by independent certified public accountants in

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accordance with generally accepted principles of accounting.

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     (c) The performance report shall include:

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     (1) A summary of performance during the previous fiscal year including

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accomplishments, shortcomings in general and relative to plan, and actions to be taken to remedy

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such shortcomings;

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     (2) For all board meetings and public hearings held by the corporation: the subjects

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addressed, decisions rendered, actions considered and their disposition; and, the minutes of these

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meetings and hearings if requested by the governor, the president of the senate, the speaker of the

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house of representatives, or the secretary of state;

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     (3) Rules or regulations promulgated by the board or corporation, a summary of studies

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conducted, policies and plans developed, approved, or modified, and programs administered,

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initiated or terminated;

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     (4) A synopsis of hearings, complaints, suspensions, or other legal matters related to the

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authority of the board or corporation;

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     (5) A summary of any training courses held pursuant to subdivision 42-64-8(a)(4);

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     (6) A briefing on anticipated plans and activities in the upcoming fiscal year; and findings

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and recommendations for improvements;

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     (7) Compliance with the reporting requirements of the general laws.

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     (d) The board shall approve and the Rhode Island commerce corporation shall submit to

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the governor, the president of the senate, the speaker of the house of representatives, and the

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secretary of state, within thirty (30) days of the close of each fiscal quarter of each year, a

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quarterly financial report which shall include at a minimum:

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     (1) A current balance sheet or statement of financial position;

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     (2) A statement of revenues and expenditures;

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     (3) The terms, purpose, status and identity of parties to all loans and loan guarantees to

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which the Rhode Island commerce corporation or a subsidiary is a party;

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     (4) The terms, purpose and status of all federal grant money accepted pursuant to § 42-

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64-7.5;

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     (5) The terms, purpose and status of all bonds or notes issued by the Rhode Island

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commerce corporation;

 

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     (6) The identity and type of business conducted by every entity involved with the Rhode

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Island commerce corporation related to an extension of credit or guarantee of a loan, and the

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criteria utilized by the Rhode Island commerce corporation to authorize or approve each financial

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transaction involving a loan or a loan guarantee;

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     (7) A description of material changes in contingent liabilities or contingent assets since

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the end of the last annual reporting period;

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     (8) A description of material events subsequent to the end of the fiscal quarter that have

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not been reflected in the quarterly financial statements or balance sheets; and

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     (9) A description of the formulas, factors, and criteria employed in the decision-making

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process of each grant, loan, bond or other facility awarding funds to an applicant and the manner

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in which such factors or criteria were applied in awarding funds to any applicant.

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     (d)(e) The director of the department of administration shall be responsible for the

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enforcement of the provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

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     This act would require the Rhode Island commerce corporation to submit quarterly

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financial reports.

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     This act would take effect upon passage.

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