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:

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

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

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

public entities.

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

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

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

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

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

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

scrutiny.

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

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

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

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

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

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

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

corporation or entity.

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

entities:

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

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

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

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

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

to § 46-25-4;

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

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

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

to § 42-64-7.1;

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

subsidiaries;

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

38.1-4;

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

55-4;

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

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

34-4;

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

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

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

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

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

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

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

133-4;

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

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

and

     (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

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

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

     This act would take effect upon passage.

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