2012 -- S 2874

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LC02340

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC FINANCE

MANAGEMENT BOARD

     Introduced By: Senator Walter S. Felag

     Date Introduced: April 12, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-10.1-4 and 42-10.1-8 of Chapter 42-10.1 of the General Laws

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entitled “Public Finance Management Board” is hereby amended to read as follows:

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     42-10.1-4. Notice of debt issue to board. – (a) Each state, municipal and regional

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department, authority, agency, board, commission, and public and quasi-public corporation

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having authority to issue revenue or general obligation bonds or notes shall, no later than thirty

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(30) days prior to the sale of any such debt issue at public or private sale, give written notice of

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the proposed sale to the board.

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     (b) The notice shall include one proposed sale date, the name of the issuer, the nature of

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the debt issue, and the estimated principal amount thereof, and such further information as may

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be required by rule of the board and shall be delivered in accordance with procedures to be

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established by rule of the board.

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     (c) Failure of delivery of the above notice or of the time or efficiency thereof shall not

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affect the validity of the issuance of any debt, bond or note.

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     (d) The board shall submit a report annually on or before March 31st September 30th of

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each year to the director of administration, the speaker of the house, the chairman of the house

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finance committee, the president of the senate, the chairman of the senate finance committee, and

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the auditor general on debt issues by cities and towns and other authorities subject to the

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provision of chapter 45-12, which report shall include the information set forth in division (b) of

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this section and shall be for the notices of debt issues received in the prior calendar year during

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the state’s fiscal year next preceding. An electronic transmission of the report shall be considered

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an acceptable submission.

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     42-10.1-8.  Comprehensive review. – (a) The board shall comprehensively review the

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financing of capital improvements by all state, municipal, and regional departments, authorities,

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agencies, boards, commissions, and public and quasi-public corporations and study the

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comparative debt of all state and local governmental units for capital improvements and the use

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of bond financing as a source of the indebtedness. The review shall include an analysis of all

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outstanding general obligation and revenue bonds. Annually, on the thirty-first (31st) day of

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March thirtieth (30th) day of September, the board shall submit to the general assembly a report

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based upon information from the previous fiscal year fiscal year ending in the prior calendar year

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of its findings and recommendations, if any, for revising the laws governing such financing

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devices. An electronic transmission of the report shall be considered an acceptable submission.

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     (b) Annually, on the thirty-first (31st) day of March thirtieth (30th) day of September, the

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board shall submit to the governor, the speaker of the house of representatives, the president of

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the senate and the secretary of state a report based upon information from the previous fiscal year

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fiscal year ending in the prior calendar year of its findings and recommendations, if any, for

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revising the laws governing such financing devices. An electronic transmission of the report shall

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be considered an acceptable submission. The report shall also set forth a complete operating and

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financial statement covering its operations during the year, a summary of meetings or hearings

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held, meeting minutes if requested, subjects addressed, decisions rendered, rules or regulations

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promulgated, studies conducted, policies and plans developed, approved, or modified, and

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programs administered or initiated; a summary of performance during the previous fiscal year

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fiscal year ending in the prior calendar year including accomplishments, shortcomings and

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remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

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authority of the board; a summary of any training courses held pursuant to section 42-10.1-1; a

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briefing on anticipated activities in the upcoming current fiscal year; and findings and

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recommendations for improvements. The report shall be posted electronically on the general

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assembly and the secretary of state's website as prescribed in section 42-20-8.2 of the Rhode

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Island general laws. The director of the department of administration shall be responsible for the

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enforcement of this provision.

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     (c) Neither the board nor its individual members shall have any liability as a result of the

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performance of the responsibilities or the exercise of the powers described herein. They shall not

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be deemed to have expressed an opinion regarding or deemed to have approved any aspect of any

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bonds or notes, including but not limited to, the proper authorization of any bonds or notes, the

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availability of funds for the repayment of any bonds or notes, the tax exempt status of any bonds

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or notes, or compliance by the issuer of any bonds or notes with any federal or state tax or

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securities law.

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     (d) In the event that any liability shall accrue to the board or its members because of the

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performance of the responsibilities or exercise of the powers described herein, the issuer who

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issued the bonds or notes which cause the liability shall fully indemnify the board and the

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members.

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     SECTION 2. This act shall take effect upon passage.

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LC02340

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC FINANCE

MANAGEMENT BOARD

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     This act would substitute September 30th as the date by which the public finance

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management board would submit an annual report on debt issues by cities and towns.

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     This act would take effect upon passage.

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LC02340

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