Title 35
Public Finance

Chapter 18
Public Corporation Debt Management

R.I. Gen. Laws § 35-18-4

§ 35-18-4. Procedure.

(a) A financing lease, guarantee, bond, or other obligation shall be deemed to have been approved by the general assembly when the general assembly passes a concurrent resolution of approval regarding the financing lease, guarantee, bond, or other obligation which the governor or a public corporation, as the case may be, requests that the financing lease, guarantee, bond, or other obligation be approved by the general assembly. These requests 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. The request for approval shall include:

(1) A full description of the essential public facility to which the financing lease, guarantee, bond, or other obligation is related;

(2) An explanation as to why the facility is needed and how it will be paid off; and

(3) The maximum possible obligation of the state or of any public corporation under the financing lease, guarantee, bond, or other obligation.

(b) The governor shall provide the general assembly with a timely explanation of any certification made by him or her pursuant to this chapter in connection with any financing lease, guarantee, bond, or other obligation. These explanations 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. The explanation shall also include:

(1) A full description of the essential public facility to which the financing lease, guarantee, bond, or other obligation is related;

(2) An explanation as to why the facility is needed and how it will be paid off; and

(3) The maximum possible obligation of the state or of any public corporation under the financing lease, guarantee, bond, or other obligation.

(c) The state shall not enter into any financing lease or guarantee relating to, nor shall any public corporation issue any bond or other obligation in connection with, any essential public facility unless the facility conforms to the description included in the request for approval or in the explanation for certification submitted by the governor in connection with the financing lease, guarantee, bond, or other obligation; nor shall the state’s obligation in connection with the financing lease, guarantee, bond, or other obligation exceed the amount set forth in the request for approval or explanation of certification.

(d) Immediately following the first sale of each issue of bonds in connection with the financing of an economic development project, the governor shall provide the general assembly with copies of any offering statement for those bonds and his or her analysis of the benefits and risks to the state of the project. These statements and analyses 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.

History of Section.
P.L. 1994, ch. 148, § 1; P.L. 2000, ch. 55, art. 33, § 1; P.L. 2001, ch. 180, § 75; P.L. 2005, ch. 117, art. 6, § 1.