S 2357Ethics & Transparency

State Affairs and Government - Quasi-Public Corporations Accountability and Transparency Act

Prohibits the state from transferring funds earned by quasi-public agencies, like the airport or housing authority, to the general budget.

Held for study

Population
Affected

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Introduced Jan 30, 2026Committee Senate Finance

Plain-English Summary

This legislation prohibits the Rhode Island state government, specifically the Governor and the General Assembly, from taking money collected by "quasi-public" corporations and moving it to the state's general fund or other agencies. Quasi-public corporations are government-created entities that operate somewhat independently to provide specific services, such as the Rhode Island Airport Corporation, the Public Transit Authority (RIPTA), and the Turnpike and Bridge Authority. The bill lists twenty specific organizations and mandates that any fees or revenues they generate must remain with them to be used strictly for their designated purposes.

For younger readers

Imagine there are special piggy banks for specific jobs, like one for fixing bridges, one for running buses, and one for the airport. Sometimes, the government leaders might want to take money out of those piggy banks to pay for other things in the state. This law says "No!" It creates a strict rule that the money collected by these groups must stay with them. It stops the government from taking that money to put into the main state bank account, making sure the money is used exactly for what it was collected for.

Who & Where It Applies

Impacted groups

Quasi-public corporation employees, Public transit riders, Toll payers, General Assembly members, State budget officers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects funding for essential public services, such as the Rhode Island Public Transit Authority (RIPTA), ensuring that resources intended for mass transit are not diverted to balance the general budget.
Safeguards assets dedicated to social welfare, such as those held by the Rhode Island Housing and Mortgage Finance Corporation, preventing the depletion of resources needed for affordable housing initiatives.
Promotes transparency and trust in government by ensuring that fees collected from the public for specific services, like water quality management and student loans, are utilized strictly for those community benefits.
Restricts the state's ability to redistribute surplus funds from wealthy quasi-public entities to underfunded social programs or emergency relief efforts during times of fiscal crisis.
Reduces democratic control over public resources by limiting the elected General Assembly's power to manage and reallocate state assets based on changing societal needs or priorities.
May entrench the financial independence of entities that operate with corporate-style structures, potentially shielding them from broader systemic reforms needed to address economic inequality.

For Conservatives

Enforces strict fiscal discipline by preventing the Governor and General Assembly from treating quasi-public agency revenues as a "slush fund" for general spending or to hide budget deficits.
Upholds the principle of user fees by ensuring that money collected for specific services, such as bridge tolls or airport fees, is utilized solely for those purposes rather than subsidizing unrelated government programs.
Limits the central government's power to seize assets, promoting a more decentralized approach to managing public infrastructure and preventing government overreach into semi-autonomous entities.
Reduces the flexibility of the legislature to balance the state budget, potentially forcing tax increases on the general public if general fund revenues fall short while quasi-publics hold surpluses.
Could protect inefficient or bloated quasi-public bureaucracies by guaranteeing them control over their revenue, essentially removing financial pressure to streamline operations or cut waste.
Limits the ability of elected representatives to hold quasi-public entities accountable by removing the threat of budget reallocation as a tool for legislative oversight.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 48 additions

SECTION 1. Chapter 42-155 of the General Laws entitled "Quasi-Public Corporations Accountability and Transparency Act" is hereby amended by adding thereto the following section: 42-155-11. Limitation on transfer or reallocation of funds collected by certain quasi- public entities.

(a) Quasi-public corporations and agencies perform essential government functions and/or provide essential government services. Many quasi-public entities are granted the public power to collect fees and/or generate other revenue and incur debt. Since quasi-public corporations manage significant public resources, and in order to comply with the intent of § 42-155-2, (quasi-public corporations accountability and transparency act) all Rhode Island quasi-public corporations and agencies should make their decisions and budgets especially transparent and open to public scrutiny.

(b) The goals of public policy and transparency dictate that funds or monies collected by quasi-public corporations or quasi-public agencies shall remain with the entities for use by the entities in order to carry out their designated government functions and services and shall not be subject to transfer or reallocation by order of or request by the governor or the general assembly to the state's general fund or to another state agency, department, or quasi-public state agency or corporation. In order to ensure the furtherance of the objectives of the quasi-public entities, at no time shall the assets or other property of the entities inure to the benefit of any person or other corporation or entity.

(1) Convention center authority, established pursuant to § 42-99-4;

(2) I-195 redevelopment district, established pursuant to § 42-64.14-5;

(3) Narragansett Bay water quality management district commission, established pursuant to § 46-25-4;

(4) Quonset development corporation, established pursuant to § 42-64.10-2;

(5) Rhode Island airport corporation, established as a semi-autonomous subsidiary of the then Rhode Island port authority in 1992 and now the Rhode Island commerce corporation pursuant to § 42-64-7.1;

(6) Rhode Island commerce corporation, established pursuant to § 42-64-4, and its subsidiaries;

(7) Rhode Island health and educational building corporation, established pursuant to § 45- 38.1-4;

(8) Rhode Island housing and mortgage finance corporation, established pursuant to § 42- 55-4;

(9) Rhode Island industrial facilities corporation, established pursuant to § 45-37.l-4;

(10) Rhode Island industrial-recreational building authority, established pursuant to § 42- 34-4;

(11) Rhode Island infrastructure bank, established pursuant to § 46-12.2-3;

(12) Rhode Island public rail corporation, established pursuant to § 42-64.2-2;

(13) Rhode Island public transit authority, established pursuant to § 39-18-2;

(14) Rhode Island refunding bond authority, established pursuant to § 35-8.1-4;

(15) Rhode Island resource recovery corporation, established pursuant to § 23-19-6;

(16) Rhode Island student loan authority, established pursuant to § 16-62-4;

(17) Rhode Island tobacco settlement financing corporation, established pursuant to § 42- 133-4;

(18) Rhode Island turnpike and bridge authority, established pursuant to § 24-12-2;

(19) Small business loan fund corporation, established pursuant to chapter 64 of title 42; and

(20) Water resources board (corporate), established pursuant to § 46-15.1-2.

SECTION 2. This act shall take effect upon passage.