Public Finance Management Board Rules and Regulations

Regulation Authority:

42-10.1-1

Purpose and Reason:

Amendments to the Public Finance Management Board Rules and Regulations were required due to passage of legislation, specifically, Article 2 of the Fiscal Year 2016 budget. The amendments add revisions, clarifying language, and additional subsections to Sections 1.2, 1.8, 1.9, 1.10, and 1.13 (previously Regulations 2, 8, 9, 10, 13); and to add Subsection 1.14 to the Public Finance Management Board Rules and Regulations. A public hearing was conducted on September 12, 2016 and public comment was received. As a result of public comment, Section 1.10 was revised to avoid duplication of assessments on certain obligations issued to serve as underlying security for a related debt issuance. No other substantive changes were made. However, the formatting of the rules and regulations was changed to comply with the Rhode Island Code of Regulations (RICR) formatting and includes a new Section 1.15 setting forth the effective date. 1. Subsections (h) and (i) of regulation 1.2 adds rules and regulations regarding the purpose of the Public Finance Management board to include state, regional, municipal, public and quasi-public debt authorized, sold and unsold, and to provide oversight to debt affordability studies including recommendations on limits for debt capacity on a biannual basis. 2. Subsection 4 of regulation 1.8 adds clarifying language to change the name of the Rhode Island Economic Development Corporation to the Rhode Island Commerce Corporation. 3. Subsection (a) of regulation 1.9 includes requirements regarding written notice for the issuance of revenue or general obligation bonds or GARVEE bonds or notes or other various type of conduit debt. 4. Subsection (c) and (d) of regulation 1.9 adds rules and regulations regarding penalties for failure to timely submit reports of proposed debt and itemizes information required to be provided in said report. 5. Subsection (a) of regulation 1.10 regarding fees adds city or town, state, municipal and regional authorities including fire districts and other special districts, avoids duplication of assessments on certain obligations issued to serve as underlying security for a related debt issuance from fees and strikes a portion of this subsection. 6. Subsection (b) of regulation 1.10 is struck in its entirety. 7. Subsection (b) of regulation 1.13 provides a change in the date for filing of fiscal year report to occur annually on the 30th day of September and reference to §42-20-8.2 of the Rhode Island General Laws for reporting requirements. 8. Subsection (c) of regulation 1.13 add rules and regulations regarding the annual publishing of public state, regional, municipal, public and quasi-public corporation debt authorized, sold and unsold. 9. Subsection (d) of regulation 1.13 adds rules and regulations regarding the establishment of a biannual undertaking of a debt affordability study, to include recommended limits for debt capacity. 10. Regulation 1.14 is added to provide the Public Finance Management Board the authority to offer non-binding, advisory opinions on all aspects of debt management practices of state, municipal and public and quasi-public corporations. 11. Regulation 1.15 is added to provide an effective date. It should be noted, however, that although these Rules and Regulations will take effect twenty (20) days upon filing with the Secretary of State, the Article 2 changes will be implemented beginning January 1, 2017 per the statutory effective date.