2024 -- S 2326

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LC003874

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- QUASI-PUBLIC

CORPORATIONS ACCOUNTABILITY AND TRANSPARENCY ACT

     

     Introduced By: Senator Walter S. Felag

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 42-155 of the General Laws entitled "Quasi-Public Corporations

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Accountability and Transparency Act" is hereby amended by adding thereto the following section:

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     42-155-11. Limitation on transfer or reallocation of funds collected by certain quasi-

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public entities.

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     (a) Quasi-public corporations and agencies perform essential government functions and/or

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provide essential government services. Many quasi-public entities are granted the public power to

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collect fees and/or generate other revenue and incur debt. Since quasi-public corporations manage

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significant public resources, and in order to comply with the intent of § 42-155-2, quasi-public

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corporations accountability and transparency act, all Rhode Island quasi-public corporations and

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agencies should make their decisions and budgets especially transparent and open to public

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scrutiny.

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     (b) The goals of public policy and transparency dictate that funds or monies collected by

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quasi-public corporations or quasi-public agencies shall remain with the entities for use by the

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entities in order to carry out their designated government functions and services and shall not be

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subject to transfer or reallocation by order of or request by the governor or the general assembly to

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the state's general fund or to another state agency, department, or quasi-public state agency or

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corporation. In order to ensure the furtherance of the objectives of the quasi-public entities, at no

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time shall the assets or other property of the entities inure to the benefit of any person or other

 

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corporation or entity.

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     (c) The provisions of this section shall apply expressly to the following quasi-public state

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entities:

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     (1) Capital center commission, established pursuant to 1981 Pub. L. chapter 332 and

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amended by 1983 Pub. L. chapter 167 and 1994 Pub. L. chapter 19;

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     (2) Convention center authority, established pursuant to § 42-99-4;

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     (3) I-195 redevelopment district, established pursuant to § 42-64.14-5;

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     (4) Narragansett Bay water quality management district commission, established pursuant

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to § 46-25-4;

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     (5) Quonset development corporation, established pursuant to § 42-64.10-2;

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     (6) Rhode Island airport corporation, established as a semi-autonomous subsidiary of the

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then Rhode Island port authority in 1992 and now the Rhode Island commerce corporation pursuant

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to § 42-64-7.1;

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     (7) Rhode Island commerce corporation, established pursuant to § 42-64-4, and its

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subsidiaries;

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     (8) Rhode Island health and educational building corporation, established pursuant to § 45-

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38.1-4;

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     (9) Rhode Island housing and mortgage finance corporation, established pursuant to § 42-

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55-4;

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     (10) Rhode Island industrial facilities corporation, established pursuant to § 45-37.l-4;

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     (11) Rhode Island industrial-recreational building authority, established pursuant to § 42-

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34-4;

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     (12) Rhode Island infrastructure bank, established pursuant to § 46-12.2-3;

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     (13) Rhode Island public rail corporation, established pursuant to § 42-64.2-2;

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     (14) Rhode Island public transit authority, established pursuant to § 39-18-2;

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     (15) Rhode Island refunding bond authority, established pursuant to § 35-8.1-4;

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     (16) Rhode Island resource recovery corporation, established pursuant to § 23-19-6;

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     (17) Rhode Island student loan authority, established pursuant to § 16-62-4;

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     (18) Rhode Island tobacco settlement financing corporation, established pursuant to § 42-

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133-4;

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     (19) Rhode Island turnpike and bridge authority, established pursuant to § 24-12-2;

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     (20) Small business loan fund corporation, established pursuant to chapter 64 of title 42;

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and

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     (21) Water resources board (corporate), established pursuant to § 46-15.1-2.

 

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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 -- QUASI-PUBLIC

CORPORATIONS ACCOUNTABILITY AND TRANSPARENCY ACT

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     This act would mandate that quasi-public corporations limit the use of all funds and

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property to perform the function or service for which the quasi-public corporation was created. The

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act also would prohibit the transfer or reallocation of funds held by a quasi-public corporation.

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     This act would take effect upon passage.

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