Chapter
319
2006 -- S 2597 SUBSTITUTE A
Enacted 07/04/07
A N A
C T
RELATING TO
SEPARATION OF POWERS
Introduced By: Senator J.
Michael Lenihan
Date Introduced: February
09, 2006
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 35-8-3 and 35-8-5 of the General Laws in Chapter 35-8 entitled
"Bonded
Indebtedness of State" are hereby amended to read as follows:
35-8-3.
Sinking fund commission -- Composition -- Elective members -- Quorum. --
There
shall be (a) There is hereby
authorized, created and established in the department of the
general
treasurer a sinking fund commission
which shall perform the duties formerly performed
by the
board of commissioners of sinking funds as prescribed by this chapter, which
board of
commissioners
is hereby abolished. The sinking fund commission shall consist of the governor
or
his or
her designee who shall be a subordinate within the governor's office,
the general treasurer
or his
or her designee who shall be a subordinate within the general treasurer's
office, the director
of
administration or his or her designee who shall be a subordinate within the
department of
administration, the chairperson of the finance committee of the
Senate or his or her designee, the
chairperson
of the finance committee of the House of Representatives or his or her
designee, and
one
person to be appointed by the speaker of the house of representatives, one
person to be
appointed
by the house minority leader, one person to be appointed by the president of
the senate,
and
one person to be appointed by the senate minority leader. two (2) members of the general
public
shall be appointed by the governor, one of whom shall serve an initial term of
three (3)
years
and one of whom shall serve an initial term of two (2) years; and four (4)
members of the
general
public shall be appointed by the general treasurer, one of whom shall serve an
initial term
of
four (4) years and one of whom shall serve an initial term of three (3) years,
one of whom shall
serve
an initial term of two (2) years; and one of whom shall serve an initial term
of one year.
Thereafter,
all general public member appointments shall serve for a term of four (4) years
and
until
his or her successor is appointed and qualified. All general public member
appointments
shall
be with the advice and consent of the senate. The appointed members shall be
qualified by
training
or experience in the fields of investment or finance. No one shall be eligible for
appointment
unless he or she is a resident of this state. Public members of the commission
shall
be
removable by the chair for cause only, and removal solely for partisan or
personal reasons
unrelated
to capacity or fitness for the office shall be unlawful.
Newly
appointed and qualified public members shall, within six (6) months of their
appointment,
attend a training course that shall be developed and provided by the office of
the
general
treasurer and shall include instruction in the following areas: the provisions
of chapters
35-8,
42-46, 36-14 and 38-2 of the Rhode Island general laws; and the board's rules
and
regulations.
The director of the department of administration shall, within ninety (90) days
of the
effective
date of this act, prepare and disseminate training materials relating to the
provisions of
chapters
42-46, 36-14 and 38-2.
A
majority of all the members of the commission is necessary to constitute a
quorum.
(b)
Within ninety (90) days after the end of each fiscal year during which the
commission
has
conducted business, the commission shall submit an annual report to the
governor, the
speaker
of the house of representatives, the president of the senate, and the secretary
of state of its
activities
during that fiscal year. The report shall provide: an operating statement
summarizing
meetings
or hearings held, meeting minutes if requested, subjects addressed, decisions
rendered,
rules
or regulations promulgated, studies conducted, policies and plans developed,
approved, or
modified,
and programs administered or initiated; a consolidated financial statement of
all the
funds
received and expended including the source of funds, a listing of any staff
supported by
these
funds, and a summary of any clerical, administrative or technical support
received; a
summary
of performance during the previous fiscal year including accomplishments,
shortcomings
and remedies; a synopsis of hearings, complaints, suspensions, or other legal
matters
related to the authority of the board; a summary of any training courses held
pursuant to
section
35-8-3; a briefing on anticipated activities in the upcoming fiscal year; and
findings and
recommendations
for improvements. The report shall be posted electronically on the general
assembly
and the secretary of state's website as prescribed in section 42-20-8.2 of the
Rhode
Island
general laws. The director of the department of administration shall be
responsible for the
enforcement
of this provision.
35-8-5.
Officers of sinking fund commission. -- The governor shall be the
chairperson,
the
general treasurer shall be the vice-chairperson, and the director of administration
shall be the
secretary
of the sinking fund commission, and the general treasurer shall keep the
accounts of the
commission.
In the event of the governor's absence, the general treasurer shall be the
chairperson.
A
designee of any member shall not serve as chairperson. The commission shall
elect from
among
its own members such officers as they deem necessary.
SECTION
2. Sections 35-8.1-4, 35-8.1-5 and 35-8.1-10 of the General Laws in Chapter
35-8.1
entitled "Refunding Bond Authority" are hereby amended to read as
follows:
35-8.1-4.
Creation. -- There is hereby created and established a public
corporation to be
administered
by the office of the general treasurer,
having a distinct legal existence from the state
and not
constituting a department of state government, to be known as the "Rhode
Island
refunding
bond authority". The authority is constituted as a public instrumentality
to exercise
public
and essential governmental functions.
35-8.1-5.
Governing board -- Members -- Vacancies -- Officers -- Quorum --
Affirmative
votes. -- (a) The authority shall
be governed by a board which shall have six (6)
seven
(7) members, consisting of:
(1) The general treasurer or his or her designee who shall be a subordinate
within the
general
treasurer's office, who shall serve
as chairperson;
(2) The director of administration or his or her designee who shall be a
subordinate
within
the department of administration;
(3) The minority leader of the house A representative of the budget
office or his or her
designee
from within the budget office, who shall be appointed by the director of
administration;
(4) The chairperson of the finance committee of the senate, or any senator
as his or her
designee;
(5) The chairperson of the finance committee of the house or any representative
as his or
her
designee; and
(6) One additional Two (2) public members appointed by the
governor for a term of two
(2)
years. with the advice and consent
of the senate, one of whom shall serve an initial term of
three
(3) years; and one of whom shall serve an initial term of four (4) years.
Thereafter, the
members
appointed pursuant to this subsection shall serve for a term of four (4) years
and until
his or
her successor is appointed and qualified;
(5)
Two (2) public members appointed by the general treasurer, with the advice and
consent
of the senate: one of whom shall serve an initial term of two (2) years; and
one of whom
shall
serve an initial term of one year. Thereafter, the members appointed pursuant
to this
subsection
shall serve for a term of four (4) years and until his or her successor is
appointed and
qualified;
and
(6)
The gubernatorial and general treasurer appointees shall be persons qualified
by
training
and experience in the fields of finance or banking. No one shall be eligible
for
appointment
unless he or she is a resident of this state. Any member of the general public
that
was
appointed by the governor prior to the effective date of this act shall
continue to serve until
such
time as a successor is appointed and qualified.
Public
members of the authority shall be removable by the chair for cause only, and
removal
solely for partisan or personal reasons unrelated to capacity or fitness for
the office shall
be
unlawful.
Newly
appointed and qualified public members shall, within six (6) months of their
appointment,
attend a training course that shall be developed and provided by the office of
the
general
treasurer and shall include instruction in the following areas: the provisions
of chapters
35-8.1,
42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's
rules and
regulations.
The director of the department of administration shall, within ninety (90) days
of the
effective
date of this act, prepare and disseminate training materials relating to the
provisions of
chapters
42-46, 36-14 and 38-2.
(b) In the event of vacancy occurring in the public membership, the governor
appointing
authority shall appoint a public member for the unexpired term.
Any public member of the board
shall be
eligible for reappointment. No one shall be eligible for appointment unless he
or she is a
resident
of this state.
(c) Each member of the board, before entering upon any duties, shall swear or
solemnly
affirm
to administer the duties of office faithfully and impartially, and that oath or
affirmation
shall be
filed in the office of the secretary of state.
(d) The board shall elect one of their number to serve as both secretary and
treasurer.
Four (4)
members of the board shall constitute a quorum and the affirmative vote of four
(4)
members
shall be necessary for any action taken by the authority. No vacancy in the
membership
of the board
shall impair the right of a quorum to exercise all the rights and perform all
the duties
of the
board.
35-8.1-10.
Annual report, audit, and debt service needs certification. -- In the
month of
January, the authority shall make an annual report of its activities for the
preceding
fiscal
year to the governor and the general assembly , the speaker of the
house of representatives,
the
president of the senate and the secretary of state. The report shall set forth a complete
operating
and financial statement covering its operations during the year. The joint
committee on
legislative
services shall cause an annual audit of the books, records, and accounts of the
authority
to be made by the auditor general of the state.
(b) By October 1 of each year the chairperson of the board shall certify to the
governor
the
amount needed by the authority to pay the debt service on its bonds and its
expenses for the
next
fiscal year. The governor shall include this amount in the budget of revenues
and
appropriations
submitted to the general assembly. ,
a summary of meetings or hearings held,
meeting
minutes if requested, subjects addressed, decisions rendered, rules or
regulations
promulgated,
studies conducted, policies and plans developed, approved, or modified, and
programs
administered or initiated; a summary of performance during the previous fiscal
year
including
accomplishments, shortcomings and remedies; a synopsis of hearings, complaints,
suspensions,
or other legal matters related to the authority of the board; a summary of any
training
courses held pursuant to subsection 35-8.1-5(a); a briefing on anticipated
activities in the
upcoming
fiscal year; and findings and recommendations for improvements. The report
shall be
posted
electronically on the general assembly and the secretary of state's website as
prescribed in
42-20-8.2
of the Rhode Island general laws. The director of the department of
administration
shall
be responsible for the enforcement of this provision.
SECTION
3. Sections 35-10-1 and 35-10-7 of the General Laws in Chapter 35-10
entitled
"State Investment Commission" are hereby amended to read as follows:
35-10-1.
Establishment -- Membership -- Officers -- Quorum -- Investment votes --
Fund
managers. -- (a) There is hereby authorized,
created and established in the office of the
general
treasurer a state investment
commission, the membership of which shall consist of the
general
treasurer, ex officio, or a deputy general treasurer as his or her designee,
who shall act as
chairperson,
the director of administration, ex officio, or any assistant director of
administration
as his
or her designee, who shall act as secretary, the chairperson of the finance
committee of the
senate,
or any senator as his designee, the chairperson of the finance committee of the
house of
representatives,
ex officio, or his or her designee, the chairperson a director of the higher
education
assistance authority, ex officio, or his or her designee to be
appointed by the general
treasurer, an active or retired teacher, state, or
municipal employee member of the retirement
system
or official from the teacher, state, or municipal employee unions to be
appointed by the
general
treasurer for a term of three (3) years, the executive director of the
state retirement board,
who
shall be a nonvoting member, two (2) members of the general public to be
appointed by the
general
treasurer, one of whom shall serve for an initial term of one year, and one of
whom shall
serve
for an initial term of two (2) years and until his or her successor is
appointed and qualified
and
three (3) members of the general public to be appointed by the governor,
each for a term of
three
(3) years one of whom shall serve
for an initial term of three (3) years, one of whom shall
serve
for an initial term of two (2) years, and one of whom shall serve for an
initial term of one
year and until his or her successor is appointed and
qualified. Thereafter, the general public
members
shall serve for three (3) year terms and until his or her successor is
appointed and
qualified. The members of the general public appointed by
the governor and the general treasurer
shall be
qualified by training and or experience in the field of
investment or finance.
The
commission may elect from among its own members such other officers as they
deem
necessary. All general treasurer and gubernatorial appointments made under this
section
after
the effective date of this act shall be subject to the advice and consent of
the senate. No one
shall
be eligible for appointment unless he or she is a resident of this state.
Public
members of the board shall be removable by the chair for cause only, and
removal
solely
for partisan or personal reasons unrelated to capacity or fitness for the
office shall be
unlawful.
Newly
appointed and qualified public members shall, within six (6) months of their
appointment,
attend a training course that shall be developed and provided by the office of
the
general
treasurer and shall include instruction in the following areas: the provisions
of chapters
35-10,
42-46, 36-14 and 38-2 of the Rhode Island general laws; and the board's rules
and
regulations.
The director of the department of administration shall, within ninety (90) days
of the
effective
date of this act, prepare and disseminate training materials relating to the
provisions of
chapters
42-46, 36-14 and 38-2.
Any
member of the general public who was appointed by the governor or general
treasurer
prior to the effective date of this act shall continue to serve until such time
as a
successor
is appointed and qualified.
(b) During the month of February in each year the governor shall appoint a
member to
succeed
the member whose term will then next expire, to serve until the first day of
March in the
third
year next after his or her appointment, and until his or her successor is elected
and qualified.
A member
shall be eligible to succeed himself or herself. In the event of a vacancy in
the office of
an
appointive member, the vacancy shall be filled by appointment the
appointing authority for the
unexpired
term.
(c) A majority of all the members of the commission shall be necessary to
constitute a
quorum
thereof. The approval of a majority of the commission shall be required prior
to the
purchase
or sale of any investment, excepting those investments made by investment
managers
engaged
by the commission and invested in accordance with the commission's statement of
investment
objectives and policies, day to day cash investments by the general treasurer,
and,
because
of the importance of speedy action, investments in obligations of the United
States
government
or certificates of deposit maturing within one year. These investments may be
made
within
the framework of a policy established by the commission without prior approval
of each
transaction.
The commission shall be empowered to engage one or more fund managers and to
delegate
to the manager or managers the authority to carry out the investment of the
funds within
the
commission's control, or any portion thereof, in accordance with the objectives
of the
commission
as set forth in its statement of investment objectives and policies.
(d) The day-to-day administration of the commission, including the voting of
proxies and
the
execution of investment acquisitions and dispositions of the commission's assets,
shall be
carried
out by the office of the general treasurer; provided, that the costs and
expenses incurred in
the
management of the funds within the commission's control shall remain the
obligation of those
funds
and not that of the general treasurer.
(e)
Within ninety (90) days after the end of each fiscal year during which the
board has
conducted
business, the commission shall submit an annual report to the governor, the
speaker of
the
house of representatives, the president of the senate, and the secretary of
state of its activities
during
that fiscal year. The report shall provide: an operating statement summarizing
meetings or
hearings
held, meeting minutes if requested, subjects addressed, decisions rendered,
rules or
regulations
promulgated, studies conducted, policies and plans developed, approved, or
modified,
and
programs administered or initiated; a consolidated financial statement of all
the funds
received
and expended including the source of funds, a listing of any staff supported by
these
funds,
and a summary of any clerical, administrative or technical support received; a
summary of
performance
during the previous fiscal year including accomplishments, shortcomings and
remedies;
a synopsis of hearings, complaints, suspensions, or other legal matters related
to the
authority
of the board; a summary of any training courses held pursuant to section
35-10-1; a
briefing
on anticipated activities in the upcoming fiscal year; and findings and
recommendations
for
improvements. The report shall be posted electronically on the general assembly
and the
secretary
of state's website as prescribed in section 42-20-8.2 of the Rhode Island
general laws.
The
director of the department of administration shall be responsible for the
enforcement of this
provision.
35-10-7.
Expenses of commission -- Employees. -- (a) Members of the commission
serving
in an ex officio capacity shall serve
without compensation but shall be reimbursed for any
necessary
expenses. The commission shall be authorized to employ investment counsel
and such
clerical
employees as may be required. The investment counsel shall be in the
unclassified service
of
the state.
(b) No member or employee of the commission shall profit directly or indirectly
from
any
investment transaction made by the commission. This provision is not intended
to limit in any
way the
right of any member or employee of the commission to own shares of stock or
bonds of
any
corporation or other entity in which money of the several funds are or may be
invested.
SECTION
4. Sections 36-8-4, 36-8-5, 36-8-6 and 36-8-8 of the General Laws in Chapter
36-8
entitled "Retirement System - Administration" are hereby amended to
read as follows:
36-8-4.
Composition of retirement board. -- (a) There is hereby authorized,
created and
established
in the office of the general treasurer an independent retirement board which
shall hold
and
administer, in trust, the funds of the retirement system in accordance with the
provisions of
chapters
8 through 10 of this title and shall perform such functions as authorized by
law. The
membership
of the retirement board shall consist of: the general treasurer or his or
her designee
who
shall be a subordinate within the general treasurer's office; the director of administration or
his or
her designee who shall be a subordinate within the department of
administration; the
budget
officer a representative of the
budget office or his or her designee from within the budget
office,
who shall be appointed by the director of administration; the fiscal advisor to the house
finance
committee or his or her designee; the
president of the league of cities and towns or his or
her
designee; two (2) active state employee members of the retirement system or
officials from
state
employee unions to be elected by active state employees; two (2) active teacher
members of
the
retirement system or officials from a teachers union to be elected by active
teachers; one
active
municipal employee member of the retirement system or an official from a
municipal
employees
union to be elected by active municipal employees; one two (2)
retired members of the
retirement
system to be elected by retired members of the system; the chairperson of
the house
finance
committee or his or her designee; the chairperson of the senate finance
committee or his
or
her designee; and two (2) four
(4) public representatives members, one all of
whom shall be a
C.L.U. competent by training or experience in the area
field of pension benefits, finance,
accounting
or pensions; two (2) of the public members shall be appointed by the governor and
their
term , one of whom shall serve an
initial term of three (3) years and one of whom shall serve
an
initial term of four (4) years and until his or her successor is appointed and
qualified; and two
(2)
of the public members shall be appointed by the general treasurer, one of whom
shall serve an
initial
term of three (3) years and one of whom shall serve an initial term of four (4)
years and
until
his or her successor is appointed and qualified. Thereafter, the term of these
four (4) public
members shall be for four (4) years or until their successors
are appointed and qualified. Meetings
shall be
open to the public and media except when it is discussing personalities.
Further, however,
where
a discussion may reflect in a harmful manner on the persons discussed, those
persons may
choose
to have that portion of the meeting open or closed at their discretion. in accordance with
the
provisions of chapter 42-46 of the general laws. Any member of the general
public who was
appointed
by the governor prior to the effective date of this act shall continue to serve
until such
time
as a successor is appointed and qualified. Any member who was elected prior to
the
effective
date of this act shall serve for the remainder of his or her elected term.
(b) Meetings shall be held at such place as may be designated in the call of
the meeting,
provided
at no cost to the state, at least monthly at the call of the chairpersons
chair.
(c) The elected members of the retirement board shall be seated by the
following
procedure:
(1) Each candidate for a position on the board must have one hundred (100)
signatures of
members
of their respective group.
(2) The term of office for elected members shall be for four (4) years, and
election of
their
successors shall be given by the board prior to the expiration of the terms of
the incumbent
elected
members.
(3) By petition for recall of twenty percent (20%) of the respective membership
of the
various
groups a new election shall be ordered by the retirement board.
(d)
All gubernatorial and general treasurer appointments made under this section
after the
effective
date of this act shall be subject to the advice and consent of the senate. No
one shall be
eligible
for appointment unless he or she is a resident of this state.
Public
members of the board shall be removable by the chair for cause only, and
removal
solely
for partisan or personal reasons unrelated to capacity or fitness for the
office shall be
unlawful.
Newly
appointed and qualified public members shall, within six (6) months of their
appointment,
attend a training course that shall be developed and provided by the office of
the
general
treasurer and shall include instruction in the following areas: the provisions
of chapters
42-46,
36-14 and 38-2 of the Rhode Island general laws, the retirement statutes; and
the board's
rules
and regulations. The director of the department of administration shall, within
ninety (90)
days
of the effective date of this act, prepare and disseminate training materials
relating to the
provisions
of chapters 42-46, 36-14 and 38-2.
36-8-5.
Vacancies on board. -- If, for any reason whatsoever, there shall be a
vacancy in
the
office of an appointed member of the board the appointing authority shall
appoint a successor
within
seventy (70) days for the balance of the vacated term; provided, however,
that all
gubernatorial
and general treasurer appointments made under this section after the effective
date
of
this act shall be subject to the advice and consent of the senate. If, for any reason whatsoever,
there
shall be a vacancy in the office of an elected member of the board the seat
shall be filled by
a new
election of the respective group within seventy (70) days for the balance of
the vacated
term.
36-8-6.
Votes of board -- Record of proceedings. -- Each member of the board
shall be
entitled
to one vote. in the board and a majority of all the votes of the
entire board shall be
necessary
for a decision of the board. A
majority of the board shall constitute a quorum and all
actions
of the board shall be a majority vote of the members present and voting at
which a
quorum
is present. The board shall keep a
record of all the proceedings which shall be open to
public
inspection.
36-8-8.
Annual report and statement. -- The retirement board shall submit to
the
governor
for transmittal to the general assembly, the speaker of the house of
representatives, the
president
of the senate and the secretary of state, on or before the first day of December in each
year, an
annual report showing the financial transactions of the system for the fiscal
year of the
state
next preceding said date. The report shall contain, among other things, a financial
balance
sheet, a
statement of income and expenditures, a valuation balance sheet as prepared by
the
actuary,
a detailed statement of investments acquired and disposed of during the year,
and such
other
statistical data as are deemed necessary for a proper interpretation of the
condition of the
system
and the results of its operations. The report shall also provide: an
operating statement
summarizing
meetings or hearings held, meeting minutes if requested, subjects addressed,
decisions
rendered, rules or regulations promulgated, studies conducted, policies and
plans
developed,
approved, or modified, and programs administered or initiated; a consolidated
financial
statement of all the funds received and expended including the source of funds,
a listing
of
any staff supported by these funds, and a summary of any clerical,
administrative or technical
support
received; a summary of performance during the previous fiscal year including
accomplishments,
shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or
other
legal matters related to the authority of the board; a summary of any training
courses held
pursuant
to section 36-8-4; a briefing on anticipated activities in the upcoming fiscal
year; and
findings
and recommendations for improvements. The report shall be posted electronically
on the
general
assembly and the secretary of state's website as prescribed in section
42-20-8.2 of the
Rhode
Island general laws. The director of the department of administration shall be responsible
for
the enforcement of this provision.
The report shall also embody such other data as may be of
use in
the advancement of knowledge concerning state employee pensions and any
recommendations
of the board for changes in the laws pertaining to the system. The retirement
board
shall cause to be published for distribution among the members of the system a
financial
statement
summarizing the results of operations for the fiscal year.
SECTION
5. Sections 42-10.1-1, 42-10.1-6 and 42-10.1-8 of the General Laws in
Chapter
42-10.1 entitled "Public Finance Management Board" are hereby amended
to read as
follows:
42-10.1-1.
Creation -- Members. -- (a) There is hereby authorized, created and
established
in the department of the general treasurer a public finance management board to
consist
of nine (9) members,:
(1)
one of whom shall be the general treasurer or his or her designee who
shall be a
subordinate
within the general treasurer's office,;
(2)
one of whom shall represent the director of the department of
administration or his or
her
designee who shall be a subordinate within the department of administration; and shall be
appointed
by the governor, two (2) of whom shall represent cities and towns and shall be
appointed
by the general treasurer from a list of five (5) candidates submitted by the
league of
cities
and towns, one of whom shall be a member of the general public who is
experienced in the
issuance
and sale of bonds by public agencies and shall be appointed by the governor,
two (2) of
whom
shall be members of the house of representatives and shall be appointed by the
speaker,
one
from the minority party, and two (2) of whom shall be members of the senate and
shall be
appointed
by the president of the senate, one from the minority party.
(b) All appointed members shall serve at the pleasure of the appointing
authority. A
vacancy
shall be filled in like manner as the original appointment.
(3)
three (3) members of the general public to be appointed by the governor, with
the
advice
and consent of the senate, one of whom shall serve an initial term of three (3)
years, one of
whom
shall serve an initial term of two (2) years an one of whom shall serve an
initial term of
one
year, and until his or her successor is appointed and qualified. Thereafter,
the members
appointed
pursuant to this subsection shall serve for a term of three (3) years and until
his or her
successor
is appointed and qualified; and
(4)
two (2) members of the general public to be appointed by the general treasurer,
with
the
advice and consent of the senate, from a list of five (5) candidates submitted
to the general
treasurer
by the League of Cities and Towns, one of whom shall serve an initial term of
two (2)
years
and one of whom shall serve an initial term of three (3) years, and until his
or her successor
is
appointed and qualified. Thereafter, the members appointed pursuant to this
subsection shall
serve
for a term of three (3) years and until his or her successor is appointed and
qualified.
(5)
two (2) members of the general public to be appointed by the general treasurer,
with
the
advice and consent of the senate, one of whom shall serve an initial term of
two (2) years and
one
of whom shall serve an initial term of three (3) years, and until his or her
successor is
appointed
and qualified. Thereafter, the members appointed pursuant to this subsection
shall
serve
for a term of three (3) years and until his or her successor is appointed and
qualified.
(b)
Any member that was appointed by the governor or general treasurer prior to the
effective
date of this act shall continue to serve until such time as a successor is
appointed and
qualified.
(c)
All appointments shall be experienced in the issuance and sale of bonds by
public
agencies
or shall otherwise be qualified by training or experience in the field of
finance and
investment.
No one shall be eligible for appointment unless he or she is a resident of this
state.
Public
members of the authority shall be removable by the chair for cause only, and
removal
solely for partisan or personal reasons unrelated to capacity or fitness for
the office shall
be
unlawful.
Newly
appointed and qualified public members shall, within six (6) months of their
appointment,
attend a training course that shall be developed and provided by the office of
the
general
treasurer and shall include instruction in the following areas: the provisions
of chapters
42-10.1,
42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's
rules and
regulations.
The director of the department of administration shall, within ninety (90) days
of the
effective
date of this act, prepare and disseminate training materials relating to the
provisions of
chapters
42-46, 36-14 and 38-2.
A
vacancy shall be filled in like manner as the original appointment.
42-10.1-6.
Officers -- Meetings. -- (a) The general treasurer or his or her
designee shall
serve as
chairperson and shall preside at meetings of the board.
(b) The board members shall annually elect, by majority vote, one of the
members as
vice
chairman and one of the members as secretary and other such officers as they
deem
necessary.
(c) The board shall meet on the call of the chairperson, or at the request of a
majority of
the
members, or at the request of the governor. Three (3) Four (4)
members of the board shall
constitute
a quorum for the transaction of business, only one of whom may be a
legislative
member. No vacancy in the membership of the board shall
impair the right of a quorum to
exercise
all of the rights and perform all of the duties of the board.
(d) The board shall adopt rules and regulations for the conduct of its business
pursuant to
the
provisions of chapter 35 of this title.
42-10.1-8.
Comprehensive review. -- (a) The board shall comprehensively review the
financing
of capital improvements by all state, municipal, and regional departments,
authorities,
agencies,
boards, commissions, and public and quasi-public corporations and study the
comparative
debt of all state and local governmental units for capital improvements and the
use
of bond
financing as a source of the indebtedness. The review shall include an analysis
of all
outstanding
general obligation and revenue bonds.
(b)
Annually, on the thirty-first (31st) day of March, the board shall submit to
the general
assembly governor, the speaker of the house of
representatives, the president of the senate and the
secretary
of state a report based upon
information from the previous fiscal year of its findings and
recommendations,
if any, for revising the laws governing such financing devices. The report
shall
also set forth a complete operating and financial statement covering its
operations during the
year,
a summary of meetings or hearings held, meeting minutes if requested, subjects
addressed,
decisions
rendered, rules or regulations promulgated, studies conducted, policies and
plans
developed,
approved, or modified, and programs administered or initiated; a summary of
performance
during the previous fiscal year including accomplishments, shortcomings and
remedies;
a synopsis of hearings, complaints, suspensions, or other legal matters related
to the
authority
of the board; a summary of any training courses held pursuant to section
42-10.1-1; a
briefing
on anticipated activities in the upcoming fiscal year; and findings and
recommendations
for
improvements. The report shall be posted electronically on the general assembly
and the
secretary
of state's website as prescribed in section 42-20-8.2 of the Rhode Island
general laws.
The
director of the department of administration shall be responsible for the
enforcement of this
provision.
(b) (c) Neither the board nor its individual members shall have
any liability as a result of
the
performance of the responsibilities or the exercise of the powers described
herein. They shall
not be
deemed to have expressed an opinion regarding or deemed to have approved any
aspect of
any
bonds or notes, including but not limited to, the proper authorization of any
bonds or notes,
the
availability of funds for the repayment of any bonds or notes, the tax exempt
status of any
bonds or
notes, or compliance by the issuer of any bonds or notes with any federal or
state tax or
securities
law.
(c) (d) In the event that any liability shall accrue to the board
or its members because of
the
performance of the responsibilities or exercise of the powers described herein,
the issuer who
issued
the bonds or notes which cause the liability shall fully indemnify the board
and the
members.
SECTION
6. This act shall take effect upon passage.
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LC02212/SUB A/3
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