Chapter 001
2013 – H 5364
Enacted 04/03/13
A N A C T
RELATING TO
PUBLIC FINANCE - PUBLIC CORPORATION DEBT MANAGEMENT
Introduced
By: Representatives Melo, Silva, Naughton, Gallison, and
Date Introduced: February 12, 2013
It is enacted by the
General Assembly as follows:
SECTION 1. Section 35-18-3 of the General Laws in Chapter
35-18 entitled "Public
Corporation Debt
Management" is hereby amended to read as follows:
35-18-3.
Approval by the general assembly. -- (a) No
elected or appointed state official
may enter into any financing lease or into any guarantee
with any person without the prior
approval of the general assembly unless:
(1) The governor
certifies that federal funds will be available to make all of the payments
which the state is or could be obligated to make under the
financing lease or guarantee; or
(2) The general
assembly has adjourned for the year with the expectation that it will not
meet again until the following year and the governor
certifies that action is necessary, because of
events occurring after the general assembly has adjourned,
to protect the physical integrity of an
essential public facility, to ensure the continued delivery of
essential public services, or to
maintain the credit worthiness of the state in the financial
markets.
(b) No bonds may be
issued or other obligation incurred by any public corporation to
finance, in whole or in part, the construction, acquisition,
or improvement of any essential public
facility without the prior approval of the general assembly,
unless:
(1) The governor
certifies that federal funds will be available to make all of the payments
required to be made by the public corporation in connection
with the bond or obligation. The
certification shall be transmitted to the speaker of the house and
the president of the senate with
copies to the chairpersons of the respective finance
committees and fiscal advisors; or
(2) The general assembly
has adjourned for the year with the expectation that it will not
meet again until the following year and the governor
certifies that action is necessary, because of
events occurring after the general assembly has adjourned,
to protect the physical integrity of an
essential public facility, to ensure the continued delivery of
essential public services, or to
maintain the credit worthiness of the state in the financial
markets. The certification shall be
transmitted to the speaker of the house and the president of the
senate, with copies to the
chairpersons of the respective finance committees and fiscal
advisors.
(c) In addition to, and
not by way of limitation on, the exemptions provided in
subsections (a) and (b), prior approval by the general assembly
shall not be required under this
chapter for bonds or other obligations issued by, or
financing leases or guarantee agreements
entered into by:
(1) The Rhode Island
Industrial Facilities Corporation; provided financing leases, bonds
or other obligations are being issued for an economic
development project;
(2) The
(3) The
(4) The
(5) Any public
corporation to refund any bond or other obligation issued by the public
corporation to finance the acquisition, construction, or
improvement of an essential public facility
provided that the governor certifies to the speaker of the house
and the president of the senate,
with copies to the chairpersons of the respective finance
committees and fiscal advisors that the
refunding shall provide a net benefit to the issuer; provided,
however, obligations of the Rhode
Island resource recovery corporation outstanding on
July 31, 1999, may be refunded by the
issuance of obligations on or before August 1, 1999;
(6) The and
(7) The
obligations issued in connection with the acquisition,
construction, or improvement of any facility
used by any state agency, department, board, or
commission, including the board of governors for
higher education, to provide services to the public pursuant
to the requirements of state or federal
law, and all fixtures for any of those facilities.
; and
(8) The state to
refund any financing leases entered into with the authorization of the
general assembly, provided that the governor certifies to the
speaker of the house and the
president of the senate, with copies to the chairpersons of the
respective finance committees and
fiscal advisors, that the refunding shall provide a net
benefit to the state.
(d) Nothing contained
in this section applies to any loan authorized to be borrowed under
Article VI, section 16 or 17 of the
Rhode Island Constitution.
(e) Nothing in this
section is intended to expand in any way the borrowing authority of
any public corporation under its charter.
(f)
(1) Any certification made by the governor under subsection (a), (b), or (c) of
this
section may be relied upon by any person, including without
limitation, bond counsel.
(2) The certifications
shall be transmitted to the speaker of the house and the president of
the senate with copies to the chairpersons of the
respective finance committees and fiscal
advisors.
(g) Except as provided
for in this chapter, the requirements of this chapter supersede any
other special or general provision of law, including any
provision which purports to exempt sales
or leases between the state and a public corporation
from the operation of any law.
SECTION 2. This act shall take effect upon passage.
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LC01132
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