2022 -- H 7929

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LC005189

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC FINANCE - REFUNDING BOND AUTHORITY

     

     Introduced By: Representative Marvin L. Abney

     Date Introduced: March 07, 2022

     Referred To: House Finance

     (Office of Management and Budget)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 35-8.1-5 of the General Laws in Chapter 35-8.1 entitled "Refunding

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Bond Authority" is hereby amended to read as follows:

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     35-8.1-5. Governing board -- Members -- Vacancies -- Officers -- Quorum --

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Affirmative votes.

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     (a) The authority shall be governed by a board which shall have seven (7) members,

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consisting of:

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     (1) The general treasurer or his or her designee who shall be a subordinate within the

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general treasurer's office, who shall serve as chairperson;

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     (2) The director of administration or his or her designee who shall be a subordinate within

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the department of administration;

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     (3) A representative of the budget office of management and budget or his or her designee

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from within the budget office of management and budget, who shall be appointed by the director

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of administration;

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     (4) Two (2) public members appointed by the governor with the advice and consent of the

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senate, one of whom shall serve an initial term of three (3) years; and one of whom shall serve an

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initial term of four (4) years. Thereafter, the members appointed pursuant to this subsection shall

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serve for a term of four (4) years and until his or her successor is appointed and qualified;

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     (5) Two (2) public members appointed by the general treasurer, with the advice and consent

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of the senate: one of whom shall serve an initial term of two (2) years; and one of whom shall serve

 

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an initial term of one year. Thereafter, the members appointed pursuant to this subsection shall

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serve for a term of four (4) years and until his or her successor is appointed and qualified; and

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     (6) The gubernatorial and general treasurer appointees shall be persons qualified by

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training and experience in the fields of finance or banking. No one shall be eligible for appointment

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unless he or she is a resident of this state. Any member of the general public that was appointed by

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the governor prior to the effective date of this act [July 4, 2006] shall continue to serve until such

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time as a successor is appointed and qualified.

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     Public members of the authority shall be removable by the chair for cause only, and

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removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall

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be unlawful.

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     Newly appointed and qualified public members shall, within six (6) months of their

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appointment, attend a training course that shall be developed and provided by the office of the

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general treasurer and shall include instruction in the following areas: the provisions of chapters 35-

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8.1, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's rules and

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regulations. The director of the department of administration shall, within ninety (90) days of the

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effective date of this act [July 4, 2006], prepare and disseminate training materials relating to the

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provisions of chapters 42-46, 36-14 and 38-2.

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     (b) In the event of vacancy occurring in the public membership, the appointing authority

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shall appoint a public member for the unexpired term. Any public member of the board shall be

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eligible for reappointment. No one shall be eligible for appointment unless he or she is a resident

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of this state.

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     (c) Each member of the board, before entering upon any duties, shall swear or solemnly

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affirm to administer the duties of office faithfully and impartially, and that oath or affirmation shall

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be filed in the office of the secretary of state.

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     (d) The board shall elect one of their number to serve as both secretary and treasurer. Four

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(4) members of the board shall constitute a quorum and the affirmative vote of four (4) members

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shall be necessary for any action taken by the authority. No vacancy in the membership of the board

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shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.

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     SECTION 2. Section 36-8-4 of the General Laws in Chapter 36-8 entitled "Retirement

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System - Administration" is hereby amended to read as follows:

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     36-8-4. Composition of retirement board.

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     (a) There is hereby authorized, created and established in the office of the general treasurer

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an independent retirement board which shall hold and administer, in trust, the funds of the

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retirement system in accordance with the provisions of chapters 8 -- 10 of this title and shall perform

 

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such functions as authorized by law. The membership of the retirement board shall consist of: the

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general treasurer or his or her designee who shall be a subordinate within the general treasurer's

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office; the director of administration or his or her designee who shall be a subordinate within the

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department of administration; a representative of the budget office of management and budget or

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his or her designee from within the budget office of management and budget, who shall be

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appointed by the director of administration; the president of the league of cities and towns or his or

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her designee; two (2) active state employee members of the retirement system or officials from

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state employee unions to be elected by active state employees; two (2) active teacher members of

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the retirement system or officials from a teachers union to be elected by active teachers; one active

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municipal employee member of the retirement system or an official from a municipal employees

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union to be elected by active municipal employees; two (2) retired members of the retirement

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system to be elected by retired members of the system; and four (4) public members, all of whom

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shall be competent by training or experience in the field of finance, accounting or pensions; two

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(2) of the public members shall be appointed by the governor, one of whom shall serve an initial

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term of three (3) years and one of whom shall serve an initial term of four (4) years and until his or

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her successor is appointed and qualified; and two (2) of the public members shall be appointed by

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the general treasurer, one of whom shall serve an initial term of three (3) years and one of whom

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shall serve an initial term of four (4) years and until his or her successor is appointed and qualified.

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Thereafter, the term of these four (4) public members shall be for four (4) years or until their

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successors are appointed and qualified. Meetings shall be open to the public in accordance with the

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provisions of chapter 42-46 of the general laws. Any member of the general public who was

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appointed by the governor prior to July 4, 2006 shall continue to serve until such time as a successor

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is appointed and qualified. Any member who was elected prior to July 4, 2006 shall serve for the

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remainder of his or her elected term.

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     (b) Meetings shall be held at such place as may be designated in the call of the meeting,

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provided at no cost to the state, at least monthly at the call of the chair.

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     (c) The elected members of the retirement board shall be seated by the following procedure:

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     (1) Each candidate for a position on the board must have one hundred (100) signatures of

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members of their respective group.

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     (2) The term of office for elected members shall be for four (4) years, and election of their

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successors shall be given by the board prior to the expiration of the terms of the incumbent elected

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members.

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     (3) By petition for recall of twenty percent (20%) of the respective membership of the

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various groups a new election shall be ordered by the retirement board.

 

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     (d) All gubernatorial and general treasurer appointments made under this section after July

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4, 2006 shall be subject to the advice and consent of the senate. No one shall be eligible for

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appointment unless he or she is a resident of this state.

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     (e) Public members of the board shall be removable by the chair for cause only, and

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removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall

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be unlawful.

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     (f) Newly appointed and qualified public members shall, within six (6) months of their

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appointment, attend a training course that shall be developed and provided by the office of the

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general treasurer and shall include instruction in the following areas: the provisions of chapters 42-

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46, 36-14 and 38-2 of the Rhode Island general laws, the retirement statutes; and the board's rules

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and regulations. The director of the department of administration shall, within ninety (90) days of

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July 4, 2006 prepare and disseminate training materials relating to the provisions of chapters 42-

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46, 36-14 and 38-2.

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     SECTION 3. Section 36-12.1-7 of the General Laws in Chapter 36-12.1 entitled "Retiree

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Health Care Trust Fund" is hereby amended to read as follows:

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     36-12.1-7. Composition of the OPEB board.

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     The OPEB Board shall consist of the State Controller, the State Budget Officer Director of

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the Office of Management and Budget, the State Personnel Administrator and the General

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Treasurer, or their designees.

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     SECTION 4. Section 37-2-79 of the General Laws in Chapter 37-2 entitled "State

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Purchases" is hereby amended to read as follows:

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     37-2-79. Establishment of the Rhode Island Strategic Purchasing Advisory

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Commission.

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     In order to provide a means of collaboration between the state, cities/towns and school

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committees a permanent advisory commission is established named the "Rhode Island Strategic

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Purchasing Advisory Commission." This Advisory Commission will consist of nine (9) members

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including: (1) the state purchasing agent or his or her designee, who will serve as chair, (2) a

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designee of the board of regents of the Rhode Island department of elementary and secondary

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education, (3) a designee of the board of governors of higher education, (4) a designee of the Rhode

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Island School Committees Association, (5) a designee of the Rhode Island League of Cities and

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Towns, (6) a designee of the Association of School Business Officials, (7) a designee of the Rhode

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Island Municipal Purchasing Agents Association, (8) a designee of the Rhode Island economic

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development corporation and, (9) a designee of the state budget officer director of the office of

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management and budget.

 

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     SECTION 5. Section 42-133-6 of the General Laws in Chapter 42-133 entitled "Tobacco

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Settlement Financing Corporation Act" is hereby amended to read as follows:

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     42-133-6. Board and officers.

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     (a)(1) The powers of the corporation shall be vested in a board consisting of five (5)

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members, which shall constitute the governing body of the corporation, and which shall be

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comprised as follows: the state budget officer director of the office of management and budget, or

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designee, who shall serve as chairperson; the general treasurer, or designee; the director of revenue,

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or designee; and two (2) members of the general public appointed by the governor with the advice

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and consent of the senate. Each public member shall serve for a term of four (4) years, except that

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any member appointed to fill a vacancy shall serve only until the expiration of the unexpired term

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of the member's predecessor in office. Each public member shall continue to hold office until a

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successor has been appointed. Members shall be eligible for reappointment. No person shall be

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eligible for appointment unless the person is a resident of the state. Each member, before entering

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upon the duties of the office of member, shall swear or solemnly affirm to administer the duties of

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office faithfully and impartially, and the oath or affirmation shall be filed in the office of the

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secretary of state.

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     (2) [Deleted by P.L. 2018, ch. 47, art. 3, § 11].

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     (3) Newly appointed and qualified public members shall, within six (6) months of their

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qualification or designation, attend a training course that shall be developed with board approval

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and conducted by the chair of the board and shall include instruction in the subject area of chapters

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46 of this title, 133 of this title, 14 of title 36, and 2 of title 38; and the board's rules and regulations.

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The director of the department of administration shall, within ninety (90) days of July 9, 2005,

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prepare and disseminate training materials relating to the provisions of chapters 46 of this title, 14

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of title 36 and 2 of title 38.

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     (b) Members shall receive no compensation for the performance of their duties.

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     (c) Three (3) members shall constitute a quorum, and any action to be taken by the

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corporation under the provisions of this chapter may be authorized by resolution approved by a

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majority of the members present and voting at any regular or special meeting at which a quorum is

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present.

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     (d) The board shall appoint a secretary and additional officers as it shall deem appropriate.

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     (e) Any action taken by the corporation under the provisions of this chapter may be

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authorized by vote at any regular or special meeting, and the vote shall take effect immediately.

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     (f) Any action required by this chapter to be taken at a meeting of the board shall comply

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with chapter 46 of this title, entitled "Open Meetings."

 

LC005189 - Page 5 of 7

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     (g) To the extent that administrative assistance is needed for the functions and operations

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of the board, the corporation may by contract or agreement obtain this assistance from the director

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of administration, the attorney general, and any successor officer at such cost to the corporation as

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shall be established by the contract or agreement. The board, however, shall remain responsible

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for, and provide oversight of, proper implementation of this chapter.

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     (h) Members of the board and persons acting on the corporation's behalf, while acting

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within the scope of their employment or agency, are not subject to personal liability resulting from

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carrying out the powers and duties conferred on them under this chapter.

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     (i) The state shall indemnify and hold harmless every past, present, or future board member,

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officer or employee of the corporation who is made a party to or is required to testify in any action,

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investigation, or other proceeding in connection with or arising out of the performance or alleged

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lack of performance of that person's duties on behalf of the corporation. These persons shall be

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indemnified and held harmless, whether they are sued individually or in their capacities as board

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members, officers or employees of the corporation, for all expenses, legal fees, and/or costs

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incurred by them during or resulting from the proceedings, and for any award or judgment arising

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out of their service to the corporation that is not paid by the corporation and is sought to be enforced

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against a person individually, as expenses, legal fees, costs, awards, or judgments occur; provided,

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that neither the state nor the corporation shall indemnify any member, officer, or employee:

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     (1) For acts or omissions not in good faith or that involve intentional misconduct or a

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knowing violation of law;

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     (2) For any transaction from which the member derived an improper personal benefit; or

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     (3) For any malicious act.

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     (j) Public members of the board shall be removable by the governor, pursuant to the

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provisions of § 36-1-7, for cause only, and removal solely for partisan or personal reasons unrelated

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to capacity or fitness for the office shall be unlawful.

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     SECTION 6. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE - REFUNDING BOND AUTHORITY

***

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     This act would change the designations of "state budget office" to the "office of

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management and budget".

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     This act would take effect upon passage.

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