Chapter 479

2012 -- H 8023

Enacted 06/25/12

 

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC FINANCE

MANAGEMENT BOARD

          

     Introduced By: Representatives Mattiello, Tomasso, Ferri, and Hearn

     Date Introduced: March 29, 2012

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 42-10.1-4 and 42-10.1-8 of Chapter 42-10.1 of the General Laws

entitled “Public Finance Management Board” is hereby amended to read as follows:

 

     42-10.1-4. Notice of debt issue to board. (a) Each state, municipal and regional

department, authority, agency, board, commission, and public and quasi-public corporation

having authority to issue revenue or general obligation bonds or notes shall, no later than thirty

(30) days prior to the sale of any such debt issue at public or private sale, give written notice of

the proposed sale to the board.

     (b) The notice shall include one proposed sale date, the name of the issuer, the nature of

the debt issue, and the estimated principal amount thereof, and such further information as may

be required by rule of the board and shall be delivered in accordance with procedures to be

established by rule of the board.

     (c) Failure of delivery of the above notice or of the time or efficiency thereof shall not

affect the validity of the issuance of any debt, bond or note.

     (d) The board shall submit a report annually on or before March 31st September 30th of

each year to the director of administration, the speaker of the house, the chairman of the house

finance committee, the president of the senate, the chairman of the senate finance committee, and

the auditor general on debt issues by cities and towns and other authorities subject to the

provision of chapter 45-12, which report shall include the information set forth in division (b) of

this section and shall be for the notices of debt issues received in the prior calendar year during

the state’s fiscal year next preceding. An electronic transmission of the report shall be considered

an acceptable submission.

 

     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. Annually, on the thirty-first (31st) day of

March thirtieth (30th) day of September, the board shall submit to the general assembly a report

based upon information from the previous fiscal year fiscal year ending in the prior calendar year

of its findings and recommendations, if any, for revising the laws governing such financing

devices. An electronic transmission of the report shall be considered an acceptable submission.

     (b) Annually, on the thirty-first (31st) day of March thirtieth (30th) day of September, the

board shall submit to the 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

fiscal year ending in the prior calendar year of its findings and recommendations, if any, for

revising the laws governing such financing devices. An electronic transmission of the report shall

be considered an acceptable submission. 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

fiscal year ending in the prior calendar 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 current 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.

     (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.

     (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 2. This act shall take effect upon passage.

     

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LC01935

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