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:

(i) Total payments by the state under such financing lease or guarantee will not exceed the sum of four million dollars ($4,000,000); or

(ii) The governor certifies that waiting sixty (60) days for the general assembly to approve such financing lease or guarantee, as required under section 35-18-4, would result in a substantial economic loss to the state; or

(iii) 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 such financing lease or guarantee; or

(iv) 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 such 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:

(i) The amount to be borrowed does not exceed the sum of four million dollars ($4,000,000); or

(ii) The governor certifies that waiting sixty (60) days for the general assembly to approve such bond or other obligation, as required under section 35-18-4, would result in a substantial economic loss to the state; or

(iii) 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 such bond or obligation; or

(iv) 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 such 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.

(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:

(i) Any public corporation in connection with the financing of any economic development project; provided, however, that the outstanding principal balance of moral obligation bonds issued by all public corporations in connection with economic development projects shall not exceed at any one (1) time the sum of two hundred fifty million dollars ($250,000,000);

(ii) The Rhode Island clean water finance agency;

(iii) The Rhode Island housing and mortgage finance corporation;

(iv) The Rhode Island student loan authority;

(v) Any public corporation to refund any bond or other obligation issued by such public corporation to finance the acquisition, construction or improvement of an essential public facility provided that the governor certifies that the refunding shall provide a net benefit to the issuer; provided, however, that obligations of the Rhode Island resource recovery corporation and outstanding on July 31, {DEL 1996 DEL} {ADD 1997 ADD} may be refunded by the issuance of obligations on or before August 1, {DEL 1996 DEL} {ADD 1997 ADD} , and the state through appropriate state and elected officials, including but not limited to, the Attorney General, the Director of the Department of Administration and the Chairman of the State Properties Committee, and the Rhode Island resource recovery corporation may enter into, approve or extend, any financing lease, guarantee or guarantee lease similar to the existing lease arrangements between the state and the Rhode Island resource recovery corporation in effect on July 31, 1995 [July 31, 1996] and any such financing lease, guarantee or guarantee lease, or extension thereof, shall be exempt from the provisions of this chapter.

(vi) The Narragansett Bay water quality management district commission;

(vii) The Rhode Island health and educational building corporation, except bonds or other 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 such facilities.

(d) Nothing contained in this section applies to any loan authorized to be borrowed under Article VI, Sections 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) 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.

(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.