Chapter 307

2011 -- H 5585 SUBSTITUTE A

Enacted 07/12/11






     Introduced By: Representatives Mattiello, Tomasso, Brien, Marcello, and Hearn

     Date Introduced: March 03, 2011


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:


CHAPTER 35-10.2



     35-10.2-1. Short title. -- This chapter shall be known and may be cited as the "Rhode

Island Local Government Investment Pool Act".


     35-10.2-2. Purpose. -- The purpose of this chapter is to enable eligible governmental

entities to participate with the state in providing maximum opportunities for the investment of

public funds consistent with safety and protection of such funds. It is the intention of the general

assembly in enabling the general treasurer with the approval of the state investment commission

to establish the said investment pools, that the general treasurer and state investment commission

consider the importance of retaining deposits with the banks located and operating within the

state, that further consideration be given to a bank’s commitment to the various communities

within the state, the bank’s role as an employer within the state, as well as the bank’s

commitment to the growth of economic development within the state.


     35-10.2-3. Definitions. -- As used in this chapter, the following terms, unless the context

requires a different interpretation, have the following meanings:

     (1) "Commission" means the state investment commission;

     (2) "Participation Unit" means the equal proportionate share into which the beneficial

interest in the trust is divided and includes a fraction of a unit as well as whole units.


     35-10.2-4. Establishing investment pools. -- Notwithstanding and general or special law

or regulation to the contrary, the general treasurer may establish, subject to the approval of the

commission, one or more investment pool trust funds containing certain monies in accordance

with section 35-10.2-5.


     35-10.2-5. Monies included in investment pools. -- Each investment pool trust fund

may contain any or a combination of any of the following:

     (1) Monies of the several funds of the state according to section 35-10-2;

     (2) The proceeds of all bond issues not immediately required; or

     (3) The funds under the custody of agencies, authorities, commissions, boards,

municipalities, political subdivisions and other public units of the state.


     35-10.2-6. Trustee of the funds. -- The general treasurer shall serve as trustee for each

established investment pool trust fund in accordance with this chapter.


     35-10.2-7. Investment of funds. -- The general treasurer shall invest each investment

pool trust fund in instruments prescribed, and in amounts approved, by the commission in

accordance with section 35-10-6.


     35-10.2-8. Participation units. -- The general treasurer is authorized to sell to all

agencies, authorities, commissions, boards, municipalities, political subdivisions, and other public

units of the state, participation units in any such combined investment trust fund. Such

participation units are made legal investments for all the funds under the custody of such

agencies, authorities, commissions, boards, municipalities, political subdivisions, and other public

units of the state.


     35-10.2-9. Reporting. -- (a) The general treasurer shall keep a separate account of each

participant having funds in the investment pool. Each separate account shall record the individual

amounts deposited in the investment pool, the date of withdrawals, and the earnings credited or

paid. The general treasurer shall report monthly the status of the respective account to each

participant having funds in the pool during the previous month.

     (b) At the end of each fiscal year, the general treasurer shall submit to the governor and

the state auditor a summary of the activity of the investment pool. The summary shall indicate the

quantity of funds deposited; the earnings of the pool; the investments purchased, sold, or

exchanged; the administrative expenses of the investment pool; and such other information as the

state treasurer deems relevant.


     35-10.2-10. Rules and regulations. -- The general treasurer, subject to the approval of

the commission, shall by rule prescribe the time periods for investments in the investment pool

and the procedure for withdrawal of funds from the investment pool. The state treasurer shall

promulgate such other rules as are deemed necessary for the efficient operation of the investment



     35-10.2-11. Severability. -- The holding of any section or sections or parts thereof to be

void, ineffective, or unconstitutional for any cause shall not be deemed to affect any other section

or part thereof.


     SECTION 2. This act shall take effect upon passage.



LC01674/SUB A