Chapter 444

2006 -- H 7016 SUBSTITUTE A

Enacted 07/07/06

 

A N A C T

RELATING TO SEPARATION OF POWERS

         

     Introduced By: Representative Paul W. Crowley

     Date Introduced: February 01, 2006

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 35-8-3 and 35-8-5 of the General Laws in Chapter 35-8 entitled

"Bonded Indebtedness of State" are hereby amended to read as follows:

 

     35-8-3. Sinking fund commission -- Composition -- Elective members -- Quorum. --

There shall be (a) There is hereby authorized, created and established in the department of the

general treasurer a sinking fund commission which shall perform the duties formerly performed

by the board of commissioners of sinking funds as prescribed by this chapter, which board of

commissioners is hereby abolished. The sinking fund commission shall consist of the governor or

his or her designee who shall be a subordinate within the governor's office, the general treasurer

or his or her designee who shall be a subordinate within the general treasurer's office, the director

of administration or his or her designee who shall be a subordinate within the department of

administration, the chairperson of the finance committee of the Senate or his or her designee, the

chairperson of the finance committee of the House of Representatives or his or her designee, and

one person to be appointed by the speaker of the house of representatives, one person to be

appointed by the house minority leader, one person to be appointed by the president of the senate,

and one person to be appointed by the senate minority leader. two (2) members of the general

public shall be appointed by the governor, one of whom shall serve an initial term of three (3)

years and one of whom shall serve an initial term of two (2) years; and four (4) members of the

general public shall be appointed by the general treasurer, one of whom shall serve an initial term

of four (4) years and one of whom shall serve an initial term of three (3) years, one of whom shall

serve an initial term of two (2) years; and one of whom shall serve an initial term of one year.

Thereafter, all general public member appointments shall serve for a term of four (4) years and

until his or her successor is appointed and qualified. All general public member appointments

shall be with the advice and consent of the senate. The appointed members shall be qualified by

training or experience in the fields of investment or finance. No one shall be eligible for

appointment unless he or she is a resident of this state. Public members of the commission shall

be removable by the chair for cause only, and removal solely for partisan or personal reasons

unrelated to capacity or fitness for the office shall be unlawful.

     Newly appointed and qualified public members shall, within six (6) months of their

appointment, attend a training course that shall be developed and provided by the office of the

general treasurer and shall include instruction in the following areas: the provisions of chapters

35-8, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the board's rules and

regulations. The director of the department of administration shall, within ninety (90) days of the

effective date of this act, prepare and disseminate training materials relating to the provisions of

chapters 42-46, 36-14 and 38-2.

     A majority of all the members of the commission is necessary to constitute a quorum.

     (b) Within ninety (90) days after the end of each fiscal year during which the commission

has conducted business, the commission shall submit an annual report to the governor, the

speaker of the house of representatives, the president of the senate, and the secretary of state of its

activities during that fiscal year. The report shall provide: an operating statement summarizing

meetings or hearings held, meeting minutes if requested, subjects addressed, decisions rendered,

rules or regulations promulgated, studies conducted, policies and plans developed, approved, or

modified, and programs administered or initiated; a consolidated financial statement of all the

funds received and expended including the source of funds, a listing of any staff supported by

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

summary of performance during the previous fiscal year including accomplishments,

shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal

matters related to the authority of the board; a summary of any training courses held pursuant to

section 35-8-3; a briefing on anticipated activities in the upcoming fiscal year; and findings and

recommendations for improvements. The report shall be posted electronically on the general

assembly and the secretary of state's website as prescribed in section 42-20-8.2 of the Rhode

Island general laws. The director of the department of administration shall be responsible for the

enforcement of this provision.

 

     35-8-5. Officers of sinking fund commission. -- The governor shall be the chairperson,

the general treasurer shall be the vice-chairperson, and the director of administration shall be the

secretary of the sinking fund commission, and the general treasurer shall keep the accounts of the

commission. In the event of the governor's absence, the general treasurer shall be the chairperson.

A designee of any member shall not serve as chairperson. The commission shall elect from

among its own members such officers as they deem necessary.

 

     SECTION 2. Sections 35-8.1-4, 35-8.1-5 and 35-8.1-10 of the General Laws in Chapter

35-8.1 entitled "Refunding Bond Authority" are hereby amended to read as follows:

 

     35-8.1-4. Creation. -- There is hereby created and established a public corporation to be

administered by the office of the general treasurer, having a distinct legal existence from the state

and not constituting a department of state government, to be known as the "Rhode Island

refunding bond authority". The authority is constituted as a public instrumentality to exercise

public and essential governmental functions.

 

     35-8.1-5. Governing board -- Members -- Vacancies -- Officers -- Quorum --

Affirmative votes. -- (a) The authority shall be governed by a board which shall have six (6)

seven (7) members, consisting of:

      (1) The general treasurer or his or her designee who shall be a subordinate within the

general treasurer's office, who shall serve as chairperson;

      (2) The director of administration or his or her designee who shall be a subordinate

within the department of administration;

      (3) The minority leader of the house A representative of the budget office or his or her

designee from within the budget office, who shall be appointed by the director of administration;

      (4) The chairperson of the finance committee of the senate, or any senator as his or her

designee;

      (5) The chairperson of the finance committee of the house or any representative as his or

her designee; and

      (6) One additional Two (2) public members appointed by the governor for a term of two

(2) years. with the advice and consent of the senate, one of whom shall serve an initial term of

three (3) years; and one of whom shall serve an initial term of four (4) years. Thereafter, the

members appointed pursuant to this subsection shall serve for a term of four (4) years and until

his or her successor is appointed and qualified;

     (5) Two (2) public members appointed by the general treasurer, with the advice and

consent of the senate: one of whom shall serve an initial term of two (2) years; and one of whom

shall serve an initial term of one year. Thereafter, the members appointed pursuant to this

subsection shall serve for a term of four (4) years and until his or her successor is appointed and

qualified; and

     (6) The gubernatorial and general treasurer appointees shall be persons qualified by

training and experience in the fields of finance or banking. No one shall be eligible for

appointment unless he or she is a resident of this state. Any member of the general public that

was appointed by the governor prior to the effective date of this act shall continue to serve until

such time as a successor is appointed and qualified.

     Public members of the authority shall be removable by the chair for cause only, and

removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall

be unlawful.

     Newly appointed and qualified public members shall, within six (6) months of their

appointment, attend a training course that shall be developed and provided by the office of the

general treasurer and shall include instruction in the following areas: the provisions of chapters

35-8.1, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's rules and

regulations. The director of the department of administration shall, within ninety (90) days of the

effective date of this act, prepare and disseminate training materials relating to the provisions of

chapters 42-46, 36-14 and 38-2.

      (b) In the event of vacancy occurring in the public membership, the governor appointing

authority shall appoint a public member for the unexpired term. Any public member of the board

shall be eligible for reappointment. No one shall be eligible for appointment unless he or she is a

resident of this state.

      (c) Each member of the board, before entering upon any duties, shall swear or solemnly

affirm to administer the duties of office faithfully and impartially, and that oath or affirmation

shall be filed in the office of the secretary of state.

      (d) The board shall elect one of their number to serve as both secretary and treasurer.

Four (4) members of the board shall constitute a quorum and the affirmative vote of four (4)

members shall be necessary for any action taken by the authority. No vacancy in the membership

of the board shall impair the right of a quorum to exercise all the rights and perform all the duties

of the board.

 

     35-8.1-10. Annual report, audit, and debt service needs certification. -- In the

month of January, the authority shall make an annual report of its activities for the preceding

fiscal year to the governor and the general assembly , the speaker of the house of representatives,

the president of the senate and the secretary of state. The report shall set forth a complete

operating and financial statement covering its operations during the year. The joint committee on

legislative services shall cause an annual audit of the books, records, and accounts of the

authority to be made by the auditor general of the state.

      (b) By October 1 of each year the chairperson of the board shall certify to the governor

the amount needed by the authority to pay the debt service on its bonds and its expenses for the

next fiscal year. The governor shall include this amount in the budget of revenues and

appropriations submitted to the general assembly. , a summary of meetings or hearings held,

meeting minutes if requested, subjects addressed, decisions rendered, rules or regulations

promulgated, studies conducted, policies and plans developed, approved, or modified, and

programs administered or initiated; a summary of performance during the previous fiscal year

including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints,

suspensions, or other legal matters related to the authority of the board; a summary of any

training courses held pursuant to subsection 35-8.1-5(a); a briefing on anticipated activities in the

upcoming fiscal year; and findings and recommendations for improvements. The report shall be

posted electronically on the general assembly and the secretary of state's website as prescribed in

42-20-8.2 of the Rhode Island general laws. The director of the department of administration

shall be responsible for the enforcement of this provision.

 

     SECTION 3. Sections 35-10-1 and 35-10-7 of the General Laws in Chapter 35-10

entitled "State Investment Commission" are hereby amended to read as follows:

 

     35-10-1. Establishment -- Membership -- Officers -- Quorum -- Investment votes --

Fund managers. -- (a) There is hereby authorized, created and established in the office of the

general treasurer a state investment commission, the membership of which shall consist of the

general treasurer, ex officio, or a deputy general treasurer as his or her designee, who shall act as

chairperson, the director of administration, ex officio, or any assistant director of administration

as his or her designee, who shall act as secretary, the chairperson of the finance committee of the

senate, or any senator as his designee, the chairperson of the finance committee of the house of

representatives, ex officio, or his or her designee, the chairperson a director of the higher

education assistance authority, ex officio, or his or her designee to be appointed by the general

treasurer, an active or retired teacher, state, or municipal employee member of the retirement

system or official from the teacher, state, or municipal employee unions to be appointed by the

general treasurer for a term of three (3) years, the executive director of the state retirement board,

who shall be a nonvoting member, two (2) members of the general public to be appointed by the

general treasurer, one of whom shall serve for an initial term of one year, and one of whom shall

serve for an initial term of two (2) years and until his or her successor is appointed and qualified

and three (3) members of the general public to be appointed by the governor, each for a term of

three (3) years one of whom shall serve for an initial term of three (3) years, one of whom shall

serve for an initial term of two (2) years, and one of whom shall serve for an initial term of one

year and until his or her successor is appointed and qualified. Thereafter, the general public

members shall serve for three (3) year terms and until his or her successor is appointed and

qualified. The members of the general public appointed by the governor and the general treasurer

shall be qualified by training and or experience in the field of investment or finance.

     The commission may elect from among its own members such other officers as they

deem necessary. All general treasurer and gubernatorial appointments made under this section

after the effective date of this act shall be subject to the advice and consent of the senate. No one

shall be eligible for appointment unless he or she is a resident of this state.

     Public members of the board shall be removable by the chair for cause only, and removal

solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be

unlawful.

     Newly appointed and qualified public members shall, within six (6) months of their

appointment, attend a training course that shall be developed and provided by the office of the

general treasurer and shall include instruction in the following areas: the provisions of chapters

35-10, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the board's rules and

regulations. The director of the department of administration shall, within ninety (90) days of the

effective date of this act, prepare and disseminate training materials relating to the provisions of

chapters 42-46, 36-14 and 38-2.

     Any member of the general public who was appointed by the governor or general

treasurer prior to the effective date of this act shall continue to serve until such time as a

successor is appointed and qualified.

      (b) During the month of February in each year the governor shall appoint a member to

succeed the member whose term will then next expire, to serve until the first day of March in the

third year next after his or her appointment, and until his or her successor is elected and qualified.

A member shall be eligible to succeed himself or herself. In the event of a vacancy in the office of

an appointive member, the vacancy shall be filled by appointment the appointing authority for the

unexpired term.

      (c) A majority of all the members of the commission shall be necessary to constitute a

quorum thereof. The approval of a majority of the commission shall be required prior to the

purchase or sale of any investment, excepting those investments made by investment managers

engaged by the commission and invested in accordance with the commission's statement of

investment objectives and policies, day to day cash investments by the general treasurer, and,

because of the importance of speedy action, investments in obligations of the United States

government or certificates of deposit maturing within one year. These investments may be made

within the framework of a policy established by the commission without prior approval of each

transaction. The commission shall be empowered to engage one or more fund managers and to

delegate to the manager or managers the authority to carry out the investment of the funds within

the commission's control, or any portion thereof, in accordance with the objectives of the

commission as set forth in its statement of investment objectives and policies.

      (d) The day-to-day administration of the commission, including the voting of proxies and

the execution of investment acquisitions and dispositions of the commission's assets, shall be

carried out by the office of the general treasurer; provided, that the costs and expenses incurred in

the management of the funds within the commission's control shall remain the obligation of those

funds and not that of the general treasurer.

     (e) Within ninety (90) days after the end of each fiscal year during which the board has

conducted business, the commission shall submit an annual report to the governor, the speaker of

the house of representatives, the president of the senate, and the secretary of state of its activities

during that fiscal year. The report shall provide: an operating statement summarizing meetings or

hearings held, meeting minutes if requested, subjects addressed, decisions rendered, rules or

regulations promulgated, studies conducted, policies and plans developed, approved, or modified,

and programs administered or initiated; a consolidated financial statement of all the funds

received and expended including the source of funds, a listing of any staff supported by these

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

performance during the previous fiscal year including accomplishments, shortcomings and

remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

authority of the board; a summary of any training courses held pursuant to section 35-10-1; a

briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations

for improvements. The report shall be posted electronically on the general assembly and the

secretary of state's website as prescribed in section 42-20-8.2 of the Rhode Island general laws.

The director of the department of administration shall be responsible for the enforcement of this

provision.

 

     35-10-7. Expenses of commission -- Employees. -- (a) Members of the commission

serving in an ex officio capacity shall serve without compensation but shall be reimbursed for any

necessary expenses. The commission shall be authorized to employ investment counsel and such

clerical employees as may be required. The investment counsel shall be in the unclassified service

of the state.

      (b) No member or employee of the commission shall profit directly or indirectly from

any investment transaction made by the commission. This provision is not intended to limit in any

way the right of any member or employee of the commission to own shares of stock or bonds of

any corporation or other entity in which money of the several funds are or may be invested.

 

     SECTION 4. Sections 36-8-4, 36-8-5, 36-8-6 and 36-8-8 of the General Laws in Chapter

36-8 entitled "Retirement System - Administration" are hereby amended to read as follows:

 

     36-8-4. Composition of retirement board. -- (a) There is hereby authorized, created and

established in the office of the general treasurer an independent retirement board which shall hold

and administer, in trust, the funds of the retirement system in accordance with the provisions of

chapters 8 through 10 of this title and shall perform such functions as authorized by law. The

membership of the retirement board shall consist of: the general treasurer or his or her designee

who shall be a subordinate within the general treasurer's office; the director of administration or

his or her designee who shall be a subordinate within the department of administration; the

budget officer a representative of the budget office or his or her designee from within the budget

office, who shall be appointed by the director of administration; the fiscal advisor to the house

finance committee or his or her designee; the president of the league of cities and towns or his or

her designee; two (2) active state employee members of the retirement system or officials from

state employee unions to be elected by active state employees; two (2) active teacher members of

the retirement system or officials from a teachers union to be elected by active teachers; one

active municipal employee member of the retirement system or an official from a municipal

employees union to be elected by active municipal employees; one two (2) retired members of the

retirement system to be elected by retired members of the system; the chairperson of the house

finance committee or his or her designee; the chairperson of the senate finance committee or his

or her designee; and two (2) four (4) public representatives members, one all of whom shall be a

C.L.U. competent by training or experience in the area field of pension benefits, finance,

accounting or pensions; two (2) of the public members shall be appointed by the governor and

their term , one of whom shall serve an initial term of three (3) years and one of whom shall serve

an initial term of four (4) years and until his or her successor is appointed and qualified; and two

(2) of the public members shall be appointed by the general treasurer, one of whom shall serve an

initial term of three (3) years and one of whom shall serve an initial term of four (4) years and

until his or her successor is appointed and qualified. Thereafter, the term of these four (4) public

members shall be for four (4) years or until their successors are appointed and qualified. Meetings

shall be open to the public and media except when it is discussing personalities. Further, however,

where a discussion may reflect in a harmful manner on the persons discussed, those persons may

choose to have that portion of the meeting open or closed at their discretion. in accordance with

the provisions of chapter 42-46 of the general laws. Any member of the general public who was

appointed by the governor prior to the effective date of this act shall continue to serve until such

time as a successor is appointed and qualified. Any member who was elected prior to the

effective date of this act shall serve for the remainder of his or her elected term.

      (b) Meetings shall be held at such place as may be designated in the call of the meeting,

provided at no cost to the state, at least monthly at the call of the chairpersons chair.

      (c) The elected members of the retirement board shall be seated by the following

procedure:

      (1) Each candidate for a position on the board must have one hundred (100) signatures of

members of their respective group.

      (2) The term of office for elected members shall be for four (4) years, and election of

their successors shall be given by the board prior to the expiration of the terms of the incumbent

elected members.

      (3) By petition for recall of twenty percent (20%) of the respective membership of the

various groups a new election shall be ordered by the retirement board.

     (d) All gubernatorial and general treasurer appointments made under this section after the

effective date of this act shall be subject to the advice and consent of the senate. No one shall be

eligible for appointment unless he or she is a resident of this state.

     Public members of the board shall be removable by the chair for cause only, and removal

solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be

unlawful.

     Newly appointed and qualified public members shall, within six (6) months of their

appointment, attend a training course that shall be developed and provided by the office of the

general treasurer and shall include instruction in the following areas: the provisions of chapters

42-46, 36-14 and 38-2 of the Rhode Island general laws, the retirement statutes; and the board's

rules and regulations. The director of the department of administration shall, within ninety (90)

days of the effective date of this act, prepare and disseminate training materials relating to the

provisions of chapters 42-46, 36-14 and 38-2.

 

     36-8-5. Vacancies on board. -- If, for any reason whatsoever, there shall be a vacancy in

the office of an appointed member of the board the appointing authority shall appoint a successor

within seventy (70) days for the balance of the vacated term; provided, however, that all

gubernatorial and general treasurer appointments made under this section after the effective date

of this act shall be subject to the advice and consent of the senate. If, for any reason whatsoever,

there shall be a vacancy in the office of an elected member of the board the seat shall be filled by

a new election of the respective group within seventy (70) days for the balance of the vacated

term.

 

     36-8-6. Votes of board -- Record of proceedings. -- Each member of the board shall be

entitled to one vote. in the board and a majority of all the votes of the entire board shall be

necessary for a decision of the board. A majority of the board shall constitute a quorum and all

actions of the board shall be a majority vote of the members present and voting at which a

quorum is present. The board shall keep a record of all the proceedings which shall be open to

public inspection.

 

     36-8-8. Annual report and statement. -- The retirement board shall submit to the

governor for transmittal to the general assembly, the speaker of the house of representatives, the

president of the senate and the secretary of state, on or before the first day of December in each

year, an annual report showing the financial transactions of the system for the fiscal year of the

state next preceding said date. The report shall contain, among other things, a financial balance

sheet, a statement of income and expenditures, a valuation balance sheet as prepared by the

actuary, a detailed statement of investments acquired and disposed of during the year, and such

other statistical data as are deemed necessary for a proper interpretation of the condition of the

system and the results of its operations. The report shall also provide: an operating statement

summarizing meetings or hearings held, meeting minutes if requested, subjects addressed,

decisions rendered, rules or regulations promulgated, studies conducted, policies and plans

developed, approved, or modified, and programs administered or initiated; a consolidated

financial statement of all the funds received and expended including the source of funds, a listing

of any staff supported by these funds, and a summary of any clerical, administrative or technical

support received; a summary of performance during the previous fiscal year including

accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or

other legal matters related to the authority of the board; a summary of any training courses held

pursuant to section 36-8-4; a briefing on anticipated activities in the upcoming fiscal year; and

findings and recommendations for improvements. The report shall be posted electronically on the

general assembly and the secretary of state's website as prescribed in section 42-20-8.2 of the

Rhode Island general laws. The director of the department of administration shall be responsible

for the enforcement of this provision. The report shall also embody such other data as may be of

use in the advancement of knowledge concerning state employee pensions and any

recommendations of the board for changes in the laws pertaining to the system. The retirement

board shall cause to be published for distribution among the members of the system a financial

statement summarizing the results of operations for the fiscal year.

 

     SECTION 5. Sections 42-10.1-1, 42-10.1-6 and 42-10.1-8 of the General Laws in

Chapter 42-10.1 entitled "Public Finance Management Board" are hereby amended to read as

follows:

 

     42-10.1-1. Creation -- Members. -- (a) There is hereby authorized, created and

established in the department of the general treasurer a public finance management board to

consist of nine (9) members,:

     (1) one of whom shall be the general treasurer or his or her designee who shall be a

subordinate within the general treasurer's office,;

     (2) one of whom shall represent the director of the department of administration or his or

her designee who shall be a subordinate within the department of administration; and shall be

appointed by the governor, two (2) of whom shall represent cities and towns and shall be

appointed by the general treasurer from a list of five (5) candidates submitted by the league of

cities and towns, one of whom shall be a member of the general public who is experienced in the

issuance and sale of bonds by public agencies and shall be appointed by the governor, two (2) of

whom shall be members of the house of representatives and shall be appointed by the speaker,

one from the minority party, and two (2) of whom shall be members of the senate and shall be

appointed by the president of the senate, one from the minority party.

      (b) All appointed members shall serve at the pleasure of the appointing authority. A

vacancy shall be filled in like manner as the original appointment.

     (3) three (3) members of the general public to be appointed by the governor, with the

advice and consent of the senate, one of whom shall serve an initial term of three (3) years, one of

whom shall serve an initial term of two (2) years an one of whom shall serve an initial term of

one year, and until his or her successor is appointed and qualified. Thereafter, the members

appointed pursuant to this subsection shall serve for a term of three (3) years and until his or her

successor is appointed and qualified; and

     (4) two (2) members of the general public to be appointed by the general treasurer, with

the advice and consent of the senate, from a list of five (5) candidates submitted to the general

treasurer by the League of Cities and Towns, one of whom shall serve an initial term of two (2)

years and one of whom shall serve an initial term of three (3) years, and until his or her successor

is appointed and qualified. Thereafter, the members appointed pursuant to this subsection shall

serve for a term of three (3) years and until his or her successor is appointed and qualified.

     (5) two (2) members of the general public to be appointed by the general treasurer, with

the advice and consent of the senate, one of whom shall serve an initial term of two (2) years and

one of whom shall serve an initial term of three (3) years, and until his or her successor is

appointed and qualified. Thereafter, the members appointed pursuant to this subsection shall

serve for a term of three (3) years and until his or her successor is appointed and qualified.

     (b) Any member that was appointed by the governor or general treasurer prior to the

effective date of this act shall continue to serve until such time as a successor is appointed and

qualified.

     (c) All appointments shall be experienced in the issuance and sale of bonds by public

agencies or shall otherwise be qualified by training or experience in the field of finance and

investment. No one shall be eligible for appointment unless he or she is a resident of this state.

     Public members of the authority shall be removable by the chair for cause only, and

removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall

be unlawful.

     Newly appointed and qualified public members shall, within six (6) months of their

appointment, attend a training course that shall be developed and provided by the office of the

general treasurer and shall include instruction in the following areas: the provisions of chapters

42-10.1, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's rules and

regulations. The director of the department of administration shall, within ninety (90) days of the

effective date of this act, prepare and disseminate training materials relating to the provisions of

chapters 42-46, 36-14 and 38-2.

     A vacancy shall be filled in like manner as the original appointment.

 

     42-10.1-6. Officers -- Meetings. -- (a) The general treasurer or his or her designee shall

serve as chairperson and shall preside at meetings of the board.

      (b) The board members shall annually elect, by majority vote, one of the members as

vice chairman and one of the members as secretary and other such officers as they deem

necessary.

      (c) The board shall meet on the call of the chairperson, or at the request of a majority of

the members, or at the request of the governor. Three (3) Four (4) members of the board shall

constitute a quorum for the transaction of business, only one of whom may be a legislative

member. No vacancy in the membership of the board shall impair the right of a quorum to

exercise all of the rights and perform all of the duties of the board.

      (d) The board shall adopt rules and regulations for the conduct of its business pursuant to

the provisions of chapter 35 of this title.

 

     42-10.1-8. Comprehensive review. -- (a) The board shall comprehensively review the

financing of capital improvements by all state, municipal, and regional departments, authorities,

agencies, boards, commissions, and public and quasi-public corporations and study the

comparative debt of all state and local governmental units for capital improvements and the use

of bond financing as a source of the indebtedness. The review shall include an analysis of all

outstanding general obligation and revenue bonds.

     (b) Annually, on the thirty-first (31st) day of March, the board shall submit to the general

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

secretary of state a report based upon information from the previous fiscal year of its findings and

recommendations, if any, for revising the laws governing such financing devices. The report

shall also set forth a complete operating and financial statement covering its operations during the

year, a summary of meetings or hearings held, meeting minutes if requested, subjects addressed,

decisions rendered, rules or regulations promulgated, studies conducted, policies and plans

developed, approved, or modified, and programs administered or initiated; a summary of

performance during the previous fiscal year including accomplishments, shortcomings and

remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

authority of the board; a summary of any training courses held pursuant to section 42-10.1-1; a

briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations

for improvements. The report shall be posted electronically on the general assembly and the

secretary of state's website as prescribed in section 42-20-8.2 of the Rhode Island general laws.

The director of the department of administration shall be responsible for the enforcement of this

provision.

      (b) (c) Neither the board nor its individual members shall have any liability as a result of

the performance of the responsibilities or the exercise of the powers described herein. They shall

not be deemed to have expressed an opinion regarding or deemed to have approved any aspect of

any bonds or notes, including but not limited to, the proper authorization of any bonds or notes,

the availability of funds for the repayment of any bonds or notes, the tax exempt status of any

bonds or notes, or compliance by the issuer of any bonds or notes with any federal or state tax or

securities law.

      (c) (d) In the event that any liability shall accrue to the board or its members because of

the performance of the responsibilities or exercise of the powers described herein, the issuer who

issued the bonds or notes which cause the liability shall fully indemnify the board and the

members.

 

     SECTION 6. This act shall take effect upon passage.

     

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LC00785/SUB A/3

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