It is enacted by the General Assembly as follows:

SECTION 1. Title 35 of the General Laws entitled "Public Finance" is hereby amended by adding thereto the following chapter:

{ADD 35-18-1. Short title. -- ADD} {ADD This chapter shall be known as the "Rhode Island Public Corporation Debt Management Act". ADD}

{ADD 35-18-2. Definitions. -- ADD} {ADD The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning.

(1) "Bond" and "obligation" mean an agreement by any person to repay borrowed money.

(2) "Concurrent resolution of disapproval" means a concurrent resolution disapproving any financing lease, guarantee, bond or other obligation requiring approval by the general assembly pursuant to this chapter.

(3) "Economic development project" means any project which the Rhode Island industrial facilities corporation is authorized to undertake, including without limitation, a project related to financing the acquisition of any land and any building or other improvement which shall be suitable for manufacturing, warehousing, or other industrial or commercial purposes, including research, production, processing, agricultural and marine commerce; provided, however, that the project may include, in addition, the construction or improvement of access roads and utilities, but only access roads and utilities, and only those which are necessary for the operation of such project.

(4) "Essential public facilities" means roads, bridges, airports, prisons, reservoirs, waste and wastewater treatment facilities, educational facilities and any other facilities used by any state agency, department, board or commission, including the board of governors for higher education, to provide services to the public pursuant to the requirements of state or federal law, and all fixtures for any such facilities. It does not include any personal property.

(5) "Financing lease" means an agreement in the form of lease between the state and any person which provides that upon payment by the state as lessee of aggregate rent equal to no less than all of the principal and interest on bonds or other obligations issued by the lessor to finance the acquisition, construction or improvement of all or any part of an essential public facility, the state shall have the right to possess, use and enjoy such facility pursuant to the lease for a specified period and the option to purchase such facility for a nominal sum at the end of such period.

(6) "Governor" means the governor of the state.

(7) "Guarantee" and "guarantee lease" mean an agreement on the part of the state to guarantee any liability of a public corporation except a liability of the Rhode Island industrial-recreational building authority.

(8) "Moral obligation bonds" mean revenue bonds issued under section 42-64-18 of the general laws (as that section was in effect on June 1, 1994) or any substantially similar provision in the general laws.

(9) "Person" means an individual, partnership, corporation, public corporation, trust or association.

(10) "Public corporation" means any body corporate and politic created or to be created pursuant to statute, including without limitation the Rhode Island industrial recreational building authority, the Rhode Island port authority and economic development corporation and any subsidiaries thereof, the Rhode Island industrial facilities corporation, the Rhode Island public buildings authority, the Rhode Island health and educational building authority, the board of governors for higher education, the Rhode Island housing and mortgage finance corporation, the Rhode Island solid waste management corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the water resources board corporate, the Rhode Island health and educational building corporation, the Rhode Island depositors economic protection corporation, the Rhode Island convention center authority, the Rhode Island turnpike and bridge authority, their successors and assigns. Cities, towns, and any corporation created by a city or town pursuant to statute, and fire and water districts, are not public corporations under this chapter.

(11) "State" means the state of Rhode Island and Providence Plantations, and any department, office, board, commission or agency of the state. ADD}

{ADD 35-18-3. Approval by the general assembly. -- ADD} {ADD (a) No elected or appointed state official may enter into any financing lease or into any guarantee with any person without the prior approval of the general assembly unless:

(i) Total payments by the state under such financing lease or guarantee will not exceed the sum of four million dollars ($4,000,000); or

(ii) The governor certifies that waiting sixty (60) days for the general assembly to approve such financing lease or guarantee, as required under section 35-18-4, would result in a substantial economic loss to the state; or

(iii) The governor certifies that federal funds will be available to make all of the payments which the state is or could be obligated to make under such financing lease or guarantee; or

(iv) The general assembly has adjourned for the year with the expectation that it will not meet again until the following year and the governor certifies that such action is necessary, because of events occurring after the general assembly has adjourned, to protect the physical integrity of an essential public facility, to ensure the continued delivery of essential public services, or to maintain the creditworthiness of the state in the financial markets.

(b) No bonds may be issued or other obligation incurred by any public corporation to finance, in whole or in part, the construction, acquisition, or improvement of any essential public facility without the prior approval of the general assembly, unless:

(i) The amount to be borrowed does not exceed the sum of four million dollars ($4,000,000); or

(ii) The governor certifies that waiting sixty (60) days for the general assembly to approve such bond or other obligation, as required under section 35-18-4, would result in a substantial economic loss to the state; or

(iii) The governor certifies that federal funds will be available to make all of the payments required to be made by the public corporation in connection with such bond or obligation; or

(iv) The general assembly has adjourned for the year with the expectation that it will not meet again until the following year and the governor certifies that such action is necessary, because of events occurring after the general assembly has adjourned, to protect the physical integrity of an essential public facility, to ensure the continued delivery of essential public services, or to maintain the creditworthiness of the state in the financial markets.

(c) In addition to, and not by way of limitation on, the exemptions provided in subsections (a) and (b), prior approval by the general assembly shall not be required under this chapter for bonds or other obligations issued by, or financing leases or guarantee agreements entered into by:

(i) Any public corporation in connection with the financing of any economic development project; provided, however, that the outstanding principal balance of moral obligation bonds issued by all public corporations in connection with economic development projects shall not exceed at any one (1) time the sum of two hundred fifty million dollars ($250,000,000);

(ii) The Rhode Island clean water finance agency;

(iii) The Rhode Island housing mortgage finance corporation;

(iv) The Rhode Island student loan authority;

(v) Any public corporation to refund any bond or other obligation issued by such public corporation to finance the acquisition, construction or improvement of an essential public facility provided that the governor certifies that the refunding shall provide a net benefit to the issuer; provided, however, that any note issued by the Rhode Island solid waste management corporation and outstanding on June 30, 1994 may be refunded by issuing a new note;

(vi) The Narragansett Bay water quality management district commission;

(vii) The Rhode Island health and educational building corporation, except bonds or other obligations issued in connection with the acquisition, construction or improvement of any facility used by any state agency, department, board or commission, including the board of governors for higher education, to provide services to the public pursuant to the requirements of state or federal law, and all fixtures for any such facilities.

(d) Nothing contained in this section applies to any loan authorized to be borrowed under Article VI, Sections 16 or 17 of the Rhode Island Constitution.

(e) Nothing in this section is intended to expand in any way the borrowing authority of any public corporation under its charter.

(f) Any certification made by the governor under subsections (a), (b) or (c) of this section may be relied upon by any person, including without limitation, bond counsel.

(g) Except as provided for in this chapter, the requirements of this chapter supersede any other special or general provision of law, including any provision which purports to exempt sales or leases between the state and a public corporation from the operation of any law. ADD}

{ADD 35-18-4. Procedure. -- ADD} {ADD (a) A financing lease, guarantee, bond or other obligation shall deemed to have been approved by the general assembly unless the general assembly passes a concurrent resolution of disapproval regarding such financing lease, guarantee, bond or other obligation no later than the sixtieth day immediately following the day on which the governor or a public corporation, as the case may be, requests that such financing lease, guarantee, bond or other obligation be approved by the general assembly. Such request for approval shall include (i) a full description of the essential public facility to which such financing lease, guarantee, bond or other obligation is related, (ii) an explanation as to why the facility is needed and how it will be paid off, and (iii) the maximum possible obligation of the state or of any public corporation under such financing lease, guarantee, bond or other obligation.

(b) The governor shall provide the general assembly with a timely explanation of any certification made by him or her pursuant to this chapter in connection with any financing lease, guarantee, bond or other obligation. The explanation shall also include (i) a full description of the essential public facility to which such financing lease, guarantee, bond or other obligation is related, (ii) an explanation as to why the facility is needed and how it will be paid off, and (iii) the maximum possible obligation of the state or of any public corporation under such financing lease, guarantee, bond or other obligation.

(c) The state shall not enter into any financing lease or guarantee relating to, nor shall any public corporation issue any bond or other obligation in connection with, any essential public facility unless the facility conforms to the description included in the request for approval or in the explanation for certification submitted by the governor in connection with such financing lease, guarantee, bond or other obligation; nor shall the state's obligation in connection with such financing lease, guarantee, bond or other obligation exceed the amount set forth in such request for approval or explanation of certification.

(d) Immediately following the first sale of each issue of moral obligation bonds in connection with the financing of an economic development project, the governor shall provide the general assembly with copies of any offering statement for such bonds and his or her analysis of the benefits and risks to the state of such project. ADD}

{ADD 35-18-5. Existing obligations. -- ADD} {ADD Nothing in this act is intended to interfere with the obligations of the state or any public corporation under any trust agreement, financing lease or other agreement in effect on, or with respect to any bonds or other obligations outstanding on, January 1, 1995. ADD}

SECTION 2. The exemptions provided in sections 35-18-3(a)(ii) and 35-18-3(b)(ii) shall expire on September 1, 1996.

SECTION 3. This act shall take effect on January 1, 1995.