2019 -- S 0675

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LC002210

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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J O I N T   R E S O L U T I O N

RELATING TO DEBT MANAGEMENT ACT

     

     Introduced By: Senators DiPalma, Felag, Seveney, and Euer

     Date Introduced: March 21, 2019

     Referred To: Senate Finance

     (RI Turnpike & Bridge Authority)

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     SECTION 1. This act consists of a joint resolution submitted pursuant to chapter 18 of

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title 35.

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     SECTION 2. Rhode Island Turnpike and Bridge Authority Project.

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     WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "authority") is a

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public corporation of the state of Rhode Island (the "state"), constituting a public instrumentality

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and agency exercising public and essential governmental functions of the state, created by the

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general assembly pursuant to chapter 12 of title 24 (as enacted, reenacted and amended, the

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"act"); and

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     WHEREAS, The state recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge,

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the Mount Hope Bridge, the Sakonnet River Bridge and other facilities of or within the control of

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the authority are an essential part of the state's transportation system and facilitates the tourism

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industry; and it is the policy of the state that the public welfare and the further economic

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development and the prosperity of the state requires the maintenance of such facilities and the

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financing thereof; and

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     WHEREAS, The act provides that the authority shall have the power to charge and

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collect tolls for the use of its facilities; and

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     WHEREAS, Pursuant to § 31-36-20, three and one-half cents ($0.035) per gallon of the

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motor fuel tax is transferred to the authority to be used for maintenance, operations, capital

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expenditures and debt service on any of its projects as defined in chapter 12 of title 24; and

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     WHEREAS, The act also provides that the authority shall have the power to acquire, hold

 

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and dispose of real and personal property in the exercise of its powers and performance of its

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duties; and

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     WHEREAS, The act authorizes the authority to make and enter into all contracts and

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agreements necessary or incidental to the performance of its duties and the execution of its

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powers under the act, to issue revenue bonds of the authority for any of its purposes and to refund

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its bonds, borrow money in anticipation of the issuance of its bonds, and secure its bonds and

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notes by the pledge of its tolls and other revenues; and

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     WHEREAS, In furtherance of its corporate purposes, the authority is authorized to issue

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from time to time its negotiable revenue bonds and notes in one or more series in such principal

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amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

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by the act, making provision for working capital and a reserve for interest; and

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     WHEREAS, Pursuant to §§ 35-18-3 and 35-18-4 of the Rhode Island Public Corporation

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Debt Management Act (as enacted, reenacted and amended, the "Debt Management Act"), the

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authority hereby requests the approval of the general assembly of the authority's issuance of not

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more than fifty million dollars ($50,000,000) Rhode Island Turnpike and Bridge Authority

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Revenue Bonds with a term not to exceed thirty (30) years and six (6) months (together with any

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notes issued in anticipation of the issuance of bonds, the "bonds") to be secured by toll, transfers

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of motor fuel taxes and/or other revenues, in any combination, for the purpose of providing funds

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to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading and improvement

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of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge, Mount Hope

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Bridge, and other projects authorized under the act, replacement of the components thereof,

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working capital, capitalized interest, a debt service reserve and the costs of issuing and insuring

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the bonds (the "project"); and

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     WHEREAS, The project constitutes essential public facilities directly benefiting the

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state; and

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     WHEREAS, The authority is authorized pursuant to § 24-12-28 of the act to secure its

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bonds by a pledge of the tolls and other revenues received by the authority; and

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     WHEREAS, The state shall directly benefit economically from the project by the repair,

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maintenance and improvement of the state transportation infrastructure; and

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     WHEREAS, In the event that not all of the bond proceeds are used to carry out the

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specified project, the authority will use any remaining funds to pay debt service on the bonds;

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now, therefore, be it

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     RESOLVED AND ENACTED, That this general assembly finds that the project is an

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essential public facility and is of a type and nature consistent with the purposes and within the

 

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powers of the authority to undertake, and hereby approves the authority's issuance of not more

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than fifty million dollars ($50,000,000) in bonds, which amount is in addition to all prior

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authorizations; and be further

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     RESOLVED, That the bonds will be special obligations of the authority payable from

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funds received by the authority from tolls, transfers of motor fuel taxes and other revenues

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received by the authority, in any combination or priority as may be designated in the proceedings

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of the authority authorizing the issuance of such debt. The total debt service on the bonds is

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estimated to average approximately three million five hundred ninety-four thousand dollars

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($3,594,000) per year or approximately one hundred nine million three hundred sixteen thousand

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dollars ($109,316,000) in the aggregate, prior to the receipt of any federal subsidy and/or

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assistance, at an average interest rate of approximately six percent (6%) and approximately a

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thirty (30) year maturity; and be it further

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     RESOLVED, That the authority may issue interest bearing or discounted notes from time

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to time in anticipation of the authorization or issue of bonds or in anticipation of the receipt of

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federal aid for the purposes of this joint resolution, the amount of original notes issued in

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anticipation of bonds may not exceed the amount of bonds which may be issued under this joint

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resolution and the amount of original notes issued in anticipation of federal aid may not exceed

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the amount of available federal aid as estimated by the authority, any such notes issued hereunder

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shall be payable within five (5) years from their respective dates, but the principal of and interest

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on notes issued for a shorter period may be renewed or paid from time to time by the issue of

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other notes hereunder, provided the period from the date of an original note to the maturity of any

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note issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years,

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and any such refunding of notes with notes or bonds may be effected without complying with §

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35-18-3(5); and be it further

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     RESOLVED, That the bonds will not constitute indebtedness of the state or any of its

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subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is

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pledged.

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     SECTION 3. This joint resolution shall take effect upon passage.

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