Chapter
092
2008 -- S 3141 SUBSTITUTE A AS AMENDED
Enacted 06/26/08
A N A C T
RELATING TO TOWNS AND
CITIES -- OPEB TRUSTS
Introduced By: Senator Stephen D. Alves
Date Introduced: June 19, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Chapter 45-21 of the General Laws entitled "Retirement of Municipal
Employees"
is hereby amended by adding thereto the following section:
45-21-65.
Other post-employment benefits -- OPEB trusts. – (a) Notwithstanding
the
provisions
of any general or special law, or the provisions of any municipality's home
rule
charter,
to the contrary, for purposes of funding any unfunded liability for other
post-employment
benefits
including, but not limited to, health care and dental care benefits hereinafter
referred to
as
("OPEB") in accordance with government accounting standards board
statements 43 and 45, a
municipality,
acting by its treasurer or director of finance, upon an approving resolution of
the
city or
town council or agency board as applicable, may enter into a trust agreement
between the
municipality
and a corporate trustee which shall be a bank or trust company doing business
in the
state.
This trust agreement shall be in any form deemed proper by the treasurer or
director of
finance
of the municipality, and shall be executed by its treasurer or director of
finance and
countersigned
by its mayor or president of the town council. It shall be lawful for any bank
or
trust
company doing business in the state to act as a depository or trustee under
this trust
agreement,
and to furnish indemnification and pledge securities that may be required by
any
municipality.
(b)
OPEB trust funds shall be credited with all amounts appropriated or otherwise
made
available
by the municipality for the purposes of meeting the current and future OPEB
costs
payable
by the municipality. OPEB trust funds shall also be credited with all amounts
contributed
or
otherwise made available by employees of the municipality for the purpose of
meeting future
OPEB
costs payable by the municipality. Amounts in an OPEB trust fund, including any
earnings
or
interest accruing from the investment of these amounts, shall be expended only
for the
payment
of the costs payable by the municipality for OPEB or as otherwise permitted by
the
terms
of the trust and applicable law. The director of finance or treasurer, as
applicable, shall
invest
and reinvest the amounts in the OPEB trust fund not needed for current
disbursement in
any
investment permitted for the municipality's pension funds consistent with the
prudent person
rule
and investment policies of the municipality, if any.
(c)
Municipalities are hereby authorized to enter into agreements, trusts,
contracts, and
other
arrangements with the state and any of its departments, agencies, boards or
commissions
relating
to the execution, management or operation of the OPEB trust funds, including,
but not
limited
to, investments, and the state and its departments, agencies, boards and
commissions are
hereby
authorized to enter into such agreements, contracts and other arrangements with
municipalities.
Notwithstanding any provisions of any general or special law or principle of
equity
to the contrary, the state shall have no liability to any municipality for
entering into such
agreements.
A municipality may employ any qualified bank, trust company, corporation, firm
or
person
to advise it on the investment of the OPEB trust fund and may pay from the OPEB
trust
fund
for this advice and other services. Procurement for these services shall be
subject to the
procurement
procedures and rules governing municipalities in the state.
(d)
Any OPEB trusts that have been created by municipalities and are in effect on
the
date hereof
are hereby ratified and confirmed.
(e)
Nothing herein shall be construed to exempt OPEB trusts from the Rhode Island
Access
to Public Records Act, RIGL 38-2-1 et seq.
SECTION
2. Chapter 16-2 of the General Laws entitled "School Committees and
Superintendents"
is hereby amended by adding thereto the following section:
16-2-9.5.
Other post-employment benefits -- OPEB trusts. – (a) Notwithstanding
the
provisions
of any general or special law, or the provisions of any municipality's home
rule
charter,
to the contrary, for purposes of funding any unfunded liability for other
post-employment
benefits
including, but not limited to, health care and dental care benefits hereinafter
referred to
as
("OPEB") in accordance with government accounting standards board
statements 43 and 45, a
school
district, acting by its business manager or superintendent, upon an approving
resolution of
the
school committee or school board as applicable, may enter into a trust
agreement between the
school
district and a corporate trustee which shall be a bank or trust company doing
business in
the
state. This trust agreement shall be in any form deemed proper by the business
manager or
superintendent,
and shall be executed by its business manager or superintendent and
countersigned
by the chair of the school committee of the school district. It shall be lawful
for any
bank
or trust company doing business in the state to act as a depository or trustee
under this trust
agreement,
and to furnish indemnification and pledge securities that may be required by
any
school
district.
(b)
OPEB trust funds shall be credited with all amounts appropriated or otherwise
made
available
by the school district for the purposes of meeting the current and future OPEB costs
payable
by the school district. OPEB trust funds shall also be credited with all
amounts
contributed
or otherwise made available by employees of the school district for the purpose
of
meeting
future OPEB costs payable by the school district. Amounts in an OPEB trust
fund,
including
any earnings or interest accruing from the investment of these amounts, shall
be
expended
only for the payment of the costs payable by the school district for OPEB or as
otherwise
permitted by the terms of the trust and applicable law. The business manager or
superintendent,
as applicable, shall invest or reinvest the amounts in the OPEB trust fund in
any
investment
permitted for the state pension funds consistent with the investment policies
of the
state
general treasurer's office.
(c)
School districts are hereby authorized to enter into agreements, trusts,
contracts, and
other
arrangements with the state and any of its departments, agencies, boards or
commissions
relating
to the execution, management or operation of the OPEB trust funds, including,
but not
limited
to, investments, and the state and its department, agencies, boards and
commissions are
hereby
authorized to enter into such agreements, contracts and other arrangements with
school
districts.
Notwithstanding any provisions of any general or special law or principle of
equity to
the
contrary, the state shall have no liability to any school district for entering
into such
agreements.
A school district may employ any qualified bank, trust company, corporation,
firm or
person
to advise it on the investment of the OPEB trust fund and may pay from the OPEB
trust
fund
for this advice and other services. Procurement for these services shall be
subject to the
procurement
procedures and rules governing school districts in state law.
(d)
Nothing contained herein will prevent any school district from entering into
agreements
with other school districts per section 16-2-9.2 for the purposes of jointly
pooling
their
investments or collectively entering into an agreement with a corporate
trustee, as defined in
subsection
(a) of this section.
(e)
Nothing herein shall be construed to exempt OPEB trusts from the Rhode Island
Access
to Public Records Act, RIGL 38-2-1 et seq.
SECTION
3. This act shall take effect upon passage.
=======
LC03218/SUB A
=======