§ 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 Rhode Island infrastructure bank;
(3) The Rhode Island housing and mortgage finance corporation;
(4) The Rhode Island student loan authority;
(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 Narragansett Bay commission;
(7) 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 council on postsecondary 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, § 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.