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2012 -- S 2038 | |
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LC00052 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS | |
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Introduced By: Senators DiPalma, Sheehan, Bates, Ottiano, and Sosnowski | |
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Date Introduced: January 11, 2012 | |
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Referred To: Senate Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 16-2-9.5 of the General Laws in Chapter 16-2 entitled "School |
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Committees and Superintendents" is hereby amended to read as follows: |
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16-2-9.5. Other post-employment benefits -- OPEB trusts. -- (a) Notwithstanding the |
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provisions of any general or special law, or the provisions of any municipality's home rule |
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charter, to the contrary, for purposes of funding any unfunded liability for other post-employment |
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benefits including, but not limited to, health care and dental care benefits hereinafter referred to |
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as ("OPEB") in accordance with government accounting standards board statements 43 and 45, a |
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school district, acting by its business manager or superintendent, upon an approving resolution of |
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the school committee or school board as applicable, may enter into a trust agreement between the |
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school district and a corporate trustee which shall be a bank or trust company doing business in |
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the state |
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be in any form deemed proper by the business manager or superintendent, and shall be executed |
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by its business manager or superintendent and countersigned by the chair of the school committee |
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of the school district. It shall be lawful for any bank, |
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pursuant to section 45-5-20.1 doing business in the state to act as a depository or trustee under |
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this trust agreement, and to furnish indemnification and pledge securities that may be required by |
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any school district. |
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(b) OPEB trust funds shall be credited with all amounts appropriated or otherwise made |
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available by the school district for the purposes of meeting the current and future OPEB costs |
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payable by the school district. OPEB trust funds shall also be credited with all amounts |
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contributed or otherwise made available by employees of the school district for the purpose of |
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meeting future OPEB costs payable by the school district. Amounts in an OPEB trust fund, |
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including any earnings or interest accruing from the investment of these amounts, shall be |
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expended only for the payment of the costs payable by the school district for OPEB or as |
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otherwise permitted by the terms of the trust and applicable law. The business manager or |
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superintendent, as applicable, shall invest or reinvest the amounts in the OPEB trust fund in any |
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investment permitted for the state pension funds consistent with the investment policies of the |
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state general treasurer's office. |
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(c) School districts are hereby authorized to enter into agreements, trusts, contracts, and |
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other arrangements with the state and any of its departments, agencies, boards or commissions |
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relating to the execution, management or operation of the OPEB trust funds, including, but not |
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limited to, investments, and the state and its department, agencies, boards and commissions are |
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hereby authorized to enter into such agreements, contracts and other arrangements with school |
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districts. Notwithstanding any provisions of any general or special law or principle of equity to |
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the contrary, the state shall have no liability to any school district for entering into such |
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agreements. |
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(d) A school district may employ any qualified bank, trust company, corporation, firm or |
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person to advise it on the investment of the OPEB trust fund and may pay from the OPEB trust |
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fund for this advice and other services. Procurement for these services shall be subject to the |
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procurement procedures and rules governing school districts and municipalities in the state. |
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(e) School districts are also hereby authorized to enter into agreements, trusts, contracts, |
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and other arrangements with any corporation created pursuant to chapter 5 of title 45 relating to |
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the execution, management or operation of the OPEB trust funds, including, but not limited to, |
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investments, and the corporations established pursuant to section 45-5-20.1 are hereby authorized |
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to enter into such agreements, contracts and other arrangements with school districts. |
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(f) |
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agreements with other school districts per section 16-2-9.2 for the purposes of jointly pooling |
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their investments or collectively entering into an agreement with a corporate trustee, as defined in |
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subsection (a) of this section. |
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(g) |
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Access to Public Records Act, |
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SECTION 2. Chapter 45-5 of the General Laws entitled "Councils and Governing |
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Bodies" is hereby amended by adding thereto the following section: |
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45-5-20.2. Power of city and town councils and regional school districts to jointly |
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establish a corporation to manage and operate OPEB trusts. – (a) Notwithstanding the |
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provisions of any general or special law to the contrary, corporations established pursuant to |
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section 45-5-20.1 also shall have the power to manage and operate such other post-employment |
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benefit (OPEB) trusts as are established pursuant to section 45-21-65 and section 16-2-9.5. Such |
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corporations shall have the powers set forth in section 45-5-20.1, and shall have such additional |
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powers as are necessary to effectuate the purposes of this section. |
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(b) For the purpose of OPEB trusts managed and operated pursuant to this section, the |
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corporation shall maintain discrete sub-trust accounts for each of the participating entities setting |
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forth the contributions made by each participating entity, the allocated income assigned to each |
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participating entity as it may be derived from investments and other revenue sources, the funds |
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distributed to each participating entity for use in meeting its OPEB obligations, each entity’s |
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allocated share of the administrative costs, including investment management fees, for operating |
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the OPEB trust, and such other items as the directors of the corporation hereby established shall |
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deem proper and necessary. Agreements made pursuant to this section may provide for pooling of |
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administrative expenses, including investment management and advisory services, associated |
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with the operation of the OPEB trust and sub-trusts. |
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(c) The corporation shall ensure that a separate audit of OPEB trusts and sub-trusts is |
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performed annually, copies of which shall be provided to the participating entities of the OPEB |
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trust and the auditor general. |
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SECTION 3. This act shall take effect upon passage. |
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LC00052 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS | |
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*** | |
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This act would add corporations pursuant to Chapter 5 of Title 45 to the list of entities |
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who may act as trustee for trust agreements between school districts and corporate trustees in |
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reference to OPEB trusts. It also would allow school districts to employ corporations to advise on |
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the investment of the OPEB trust and pay for it and allows corporations established pursuant to |
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45-5-20 to manage and operate OPEB trusts but requires a separate yearly audit annually. |
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This act would take effect upon passage. |
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LC00052 | |
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