2019 -- H 5587

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LC001683

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

     Introduced By: Representatives Roberts, Filippi, Price, Quattrocchi, and Nardone

     Date Introduced: February 27, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-64-28 of the General Laws in Chapter 42-64 entitled "Rhode

Island Commerce Corporation" is hereby amended to read as follows:

     42-64-28. Annual financial reports and performance report Annual and quarterly

financial reports and performance report.

     (a) The board shall approve and the Rhode Island commerce corporation shall submit to

the governor, the president of the senate, the speaker of the house of representatives, and the

secretary of state, within eleven (11) months after the close of its fiscal year, complete and

detailed annual financial reports and a performance report. These reports shall cover the

corporation and its subsidiaries and shall be posted electronically on the general assembly and the

secretary of state's websites as prescribed in § 42-20-8.1.

     (b) The annual financial reports shall set forth the corporation's:

     (1) Operations;

     (2) Receipts and expenditures during the fiscal year in accordance with the categories and

classifications established by the corporation for its operating and capital outlay purposes

including a listing of all private consultants engaged by the corporation on a contract basis and a

statement of the total amount paid to each private consultant, a listing of any staff supported by

these funds, and a summary of any clerical, administrative or technical support received;

     (3) Assets and liabilities at the end of its fiscal year including a schedule of its leases and

mortgages and the status of the reserve, special or other funds;

     (4) Schedule of the bonds and notes outstanding at the end of its fiscal year together with

a statement of amounts redeemed and incurred during the fiscal year;

     (5) The reports shall be prepared by independent certified public accountants in

accordance with generally accepted principles of accounting.

     (c) The performance report shall include:

     (1) A summary of performance during the previous fiscal year including

accomplishments, shortcomings in general and relative to plan, and actions to be taken to remedy

such shortcomings;

     (2) For all board meetings and public hearings held by the corporation: the subjects

addressed, decisions rendered, actions considered and their disposition; and, the minutes of these

meetings and hearings if requested by the governor, the president of the senate, the speaker of the

house of representatives, or the secretary of state;

     (3) Rules or regulations promulgated by the board or corporation, a summary of studies

conducted, policies and plans developed, approved, or modified, and programs administered,

initiated or terminated;

     (4) A synopsis of hearings, complaints, suspensions, or other legal matters related to the

authority of the board or corporation;

     (5) A summary of any training courses held pursuant to subdivision 42-64-8(a)(4);

     (6) A briefing on anticipated plans and activities in the upcoming fiscal year; and findings

and recommendations for improvements;

     (7) Compliance with the reporting requirements of the general laws.

     (d) The board shall approve and the Rhode Island commerce corporation shall submit to

the governor, the president of the senate, the speaker of the house of representatives, and the

secretary of state, within thirty (30) days of the close of each fiscal quarter of each year, a

quarterly financial report which shall include at a minimum:

     (1) A current balance sheet or statement of financial position;

     (2) A statement of revenues and expenditures;

     (3) The terms, purpose, status and identity of parties to all loans and loan guarantees to

which the Rhode Island commerce corporation or a subsidiary is a party;

     (4) The terms, purpose and status of all federal grant money accepted pursuant to § 42-

64-7.5;

     (5) The terms, purpose and status of all bonds or notes issued by the Rhode Island

commerce corporation;

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     (6) The identity and type of business conducted by every entity involved with the Rhode

Island commerce corporation related to an extension of credit or guarantee of a loan, and the

criteria utilized by the Rhode Island commerce corporation to authorize or approve each financial

transaction involving a loan or a loan guarantee;

     (7) A description of material changes in contingent liabilities or contingent assets since

the end of the last annual reporting period;

     (8) A description of material events subsequent to the end of the fiscal quarter that have

not been reflected in the quarterly financial statements or balance sheets; and

     (9) A description of the formulas, factors, and criteria employed in the decision-making

process of each grant, loan, bond or other facility awarding funds to an applicant and the manner

in which such factors or criteria were applied in awarding funds to any applicant.

     (d)(e) The director of the department of administration shall be responsible for the

enforcement of the provisions of this section.

     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 -- RHODE ISLAND COMMERCE

CORPORATION

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     This act would require the Rhode Island commerce corporation to submit quarterly

financial reports to the governor, the president of the senate, the speaker of the house and the

secretary of state.

     This act would take effect upon passage.

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