AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- QUASI-PUBLIC CORPORATIONS ACCOUNTABILITY AND TRANSPARENCY ACT

2026 Regular Session Introduced by John Burke and 5 co-sponsors

SB 2357 prevents designated quasi-public entities from transferring or reallocating their funds/assets to the state general fund or other bodies, keeping resources for their own fu

05/21/2026 Committee recommended measure be held for further study

Summary of SB 2357 (Rhode Island, 2026)

Purpose and intent

Establishes a limitation on transferring or reallocating funds and assets of designated quasi-public corporations and agencies.

Aims to increase transparency and public scrutiny over how these entities manage public resources, in line with the broader Quasi-Public Corporations Accountability and Transparency Act.

Key provisions

Adds new section 42-155-11 to the Quasi-Public Corporations Accountability and Transparency Act.

Core requirements:

Funds and monies collected by listed quasi-public corporations and agencies must remain with the entities for use in carrying out their designated government functions and services.
Such funds shall not be transferred or reallocated by order of or upon request by the Governor or the General Assembly to the state's general fund or to another state agency, department, or quasi-public entity.
At no time shall the assets or other property of these entities inure to the benefit of any person or other corporation or entity outside the entity itself.

Covered entities (explicit list of 20 quasi-public state entities):

Convention Center Authority
I-195 Redevelopment District
Narragansett Bay Water Quality Management District Commission
Quonset Development Corporation
Rhode Island Airport Corporation (and its relationship to the Rhode Island Commerce Corporation)
Rhode Island Commerce Corporation (and subsidiaries)
Rhode Island Health and Educational Building Corporation
Rhode Island Housing and Mortgage Finance Corporation
Rhode Island Industrial Facilities Corporation
Rhode Island Industrial-Recreational Building Authority
Rhode Island Infrastructure Bank
Rhode Island Public Rail Corporation
Rhode Island Public Transit Authority
Rhode Island Refunding Bond Authority
Rhode Island Resource Recovery Corporation
Rhode Island Student Loan Authority
Rhode Island Tobacco Settlement Financing Corporation
Rhode Island Turnpike and Bridge Authority
Small Business Loan Fund Corporation
Water Resources Board (Corporate)

Effective date: The act takes effect upon passage.

Who and what is affected

Affects the designated quasi-public entities listed in the bill.

Specifically targets how these entities handle revenues, funds, and assets generated through their operations or investments.

Prohibits use of these funds/assets for purposes outside the entity’s established functions or for transfer to the general fund or other state agencies via governor or General Assembly action.

Procedural and timeline aspects

Introduced in January 2026 and referred to the Senate Finance Committee.

As of the latest action, scheduled for hearing and/or consideration (May 15, 2026).

Enactment is contingent on passage by the Rhode Island legislature and signing (or effective per legislative process) since the act becomes effective upon passage.

Potential impact and considerations

Increases financial autonomy of quasi-public entities by restricting reallocation of funds to the general fund or other state bodies.

Enhances transparency and accountability by ensuring funds stay with the intended purposes and operations.

May affect budgetary flexibility for the state if legislative or executive actions previously used to reallocate such funds are limited.

Requires compliance by the listed entities, including clear accounting and public reporting to demonstrate funds/assets are used for their designated functions.

If you’d like, I can provide a side-by-side comparison with the current law (42-155) to illustrate how SB 2357 tightens controls on transfers and reallocations.