Sen. Sheehan Vows to Re-Introduce Quasi-Public Accountability Bill

Expressing his deep disappointment that Gov. Lincoln Chafee vetoed this year’s bill, Sen. James C. Sheehan, Chairman of the Senate Committee on Government Oversight, vowed to re-introduce “The Quasi-Public Corporations Accountability and Transparency Act” next year.

Passed by the General Assembly in early July and subsequently vetoed by the governor, the legislation would have required Rhode Island’s quasi-public agencies to “carry out their government missions effectively and exemplify a commitment to transparent, accountable and effective government.”

The bill (2013-S 0609Aaa), which listed 15 agencies and several agency subsidiaries that would have fallen under its purview, would have codified the role and responsibilities of the agency board members, established specific transparency requirements and required a performance audit every three years. Among the agencies to which the bill would have applied are the Economic Development Corporation, RI Airport Corporation, RI Resource Recovery Corporation and RI Turnpike and Bridge Authority.

“The General Assembly, by virtue of passing this legislation, acknowledged that the accountability of these agencies to the public is vitally important, especially in light of the 38 Studios debacle,” said Senator Sheehan (D-Dist. 36, Narragansett,North Kingstown). “Enactment of the bill would have ensured that all these agencies abide by the same set of standards for ethics and transparency and would have guaranteed that the work they are doing on the public’s behalf is open and accessible to the public.”

“This bill was literally the product of years of hearings and investigations related to improving oversight of quasi-public agencies,” he said. “For the governor to announce that certain agencies discovered a technical problem in the bill in mid-July, when the bill was introduced in March, is disappointing, to say the least.”

In his veto message on the bill, Governor Chafee cited a number of concerns, among them that directors would have been prohibited from doubling as officers of the corporations. Also, he said, because the bill would have been effective immediately upon passage, it would have rendered several of the agencies “noncompliant with the law and unable to fulfill their statutory purposes.”

The governor said he would consider supporting a re-worked bill next year that addresses those and other concerns.

Senator Sheehan said he looks forward to working with the governor and the various quasi-public agencies to introduce a bill next year that can be enacted into law.

“These agencies are empowered to collect fees and generate revenue and to manage significant public resources, but the majority are exempt from many kinds of public oversight, such as executive and legislative budgetary review required of other state departments,” said Sen. Sheehan. “These agencies need to be more transparent, not less, because while they operate independently, they would not exist but for their relationship with state government. Like all other state departments, they need to demonstrate a commitment to protecting the interests of Rhode Island taxpayers by achieving the highest standards of open, effective and ethical operations.”

“That will continue to be my goal when I re-introduce the bill next year, and I sincerely hope it is also the goal of the governor,” he said.