§ 45-21-65. Other post-employment benefits - OPEB trusts. (a) Notwithstanding the provisions of any general or special law, or the provisions of any municipality's home rule charter, to the contrary, for purposes of funding any unfunded liability for other post-employment benefits including, but not limited to, health care and dental care benefits hereinafter referred to as ("OPEB") in accordance with government accounting standards board statements 43 and 45, a municipality, acting by its treasurer or director of finance, upon an approving resolution of the city or town council or agency board as applicable, may enter into a trust agreement between the municipality and a corporate trustee which shall be a bank or trust company doing business in the state, or a corporation established pursuant to chapter 5 of title 45 of the general laws. This trust agreement shall be in any form deemed proper by the treasurer or director of finance of the municipality, and shall be executed by its treasurer or director of finance and countersigned by its mayor or president of the town council. It shall be lawful for any bank, trust company, or entity organized pursuant to section 45-5-20.1 doing business in the state to act as a depository or trustee under this trust agreement, and to furnish indemnification and pledge securities that may be required by any municipality.

(b) OPEB trust funds shall be credited with all amounts appropriated or otherwise made available by the municipality for the purposes of meeting the current and future OPEB costs payable by the municipality. OPEB trust funds shall also be credited with all amounts contributed or otherwise made available by employees of the municipality for the purpose of meeting future OPEB costs payable by the municipality. Amounts in an OPEB trust fund, including any earnings or interest accruing from the investment of these amounts, shall be expended only for the payment of the costs payable by the municipality for OPEB or as otherwise permitted by the terms of the trust and applicable law. The director of finance or treasurer, as applicable, shall invest and reinvest the amounts in the OPEB trust fund not needed for current disbursement in any investment permitted for the municipality's pension funds consistent with the prudent person rule and investment policies of the municipality, if any.

(c) Municipalities are hereby authorized to enter into agreements, trusts, contracts, and other arrangements with the state and any of its departments, agencies, boards or commissions relating to the execution, management or operation of the OPEB trust funds, including, but not limited to, investments, and the state and its departments, agencies, boards and commissions are hereby authorized to enter into such agreements, contracts and other arrangements with municipalities. Notwithstanding any provisions of any general or special law or principle of equity to the contrary, the state shall have no liability to any municipality for entering into such agreements.

(d) A municipality may employ any qualified bank, trust company, corporation, firm or person to advise it on the investment of the OPEB trust fund and may pay from the OPEB trust fund for this advice and other services. Procurement for these services shall be subject to the procurement procedures and rules governing municipalities in the state.

(e) Municipalities are also hereby authorized to enter into agreements, trusts, contracts, and other arrangements with any corporation established pursuant to chapter 5 of title 45 of the general laws relating to the execution management or operations of OPEB trust funds including, but not limited to, investments, and the corporations established pursuant to § 45-5-20.1 of the general laws are hereby authorized to enter into such agreements, trusts, contracts or other arrangements with municipalities.

(f) Any OPEB trusts that have been created by municipalities and are in effect on the date hereof are hereby ratified and confirmed.

(g) Nothing herein shall be construed to exempt OPEB trusts from the Rhode Island Access to Public Records Act, RIGL 38-2-1 et seq.

History of Section. (P.L. 2008, ch. 92, § 1; P.L. 2008, ch. 134, § 1; P.L. 2012, ch. 319, § 1; P.L. 2012, ch. 357, § 1.)