2021 -- S 0361

========

LC001064

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

     

     Introduced By: Senators Bell, Ciccone, Calkin, Mack, Mendes, Acosta, Anderson,
Kallman, Cano, and Sosnowski

     Date Introduced: February 25, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Proposition to be submitted to the people. -- At the general election to be held

2

on the Tuesday next after the first Monday in November, 2022, there shall be submitted to the

3

people (“people”) of the State of Rhode Island (“state”), for their approval or rejection, the

4

following proposition:

5

     "Shall the action of the general assembly, by an act passed at the January 2021 session,

6

authorizing the issuance of a bond, refunding bond, and/or temporary note of the state of Rhode

7

Island for the local capital projects and in the total amount with respect to the projects listed below

8

be approved, and the issuance of a bond, refunding bond, and/or temporary note authorized in

9

accordance with the provisions of said act?

10

     Funding

11

     The bond, refunding bond and/or temporary note shall be allocated to each city and town

12

based upon the following formula: (population + local jobs)2 / EWAV. For purposes of this formula,

13

"population" means the most recent estimates of population for each city and town as reported by

14

the United States Department of Commerce, Bureau of the Census, "local job" means and includes

15

employment created and provided by a local employer, business, charity, company, government,

16

nonprofit organization, public sector organization, private sector organization, service provider or

17

voluntary sector organization in a local area for a local population, and "EWAV" means the

18

equalized weighted assessed valuation as determined by § 16-7-21.

19

     Project

 

1

     (1) Municipal roadways and highways $500,000,000

2

     Approval of this question will allow the state of Rhode Island to issue general obligation

3

bonds, refunding bonds, and/or temporary notes in an amount not to exceed five hundred million

4

dollars ($500,000,000) for the construction and/or improvement of local roadways. All such

5

roadway designs shall comply with § 24-16-2.

6

     (2) Municipal pedestrian spaces and infrastructure improvement $125,000,000

7

     Approval of this question will allow the state of Rhode Island to issue a general obligation

8

bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five

9

million dollars ($125,000,000) for the construction and/or improvement of municipal pedestrian

10

spaces and infrastructure. All such local roadway designs shall comply with § 24-16-2.

11

     (3) Municipal Bikeway Development Program $125,000,000

12

     Approval of this question will allow the state of Rhode Island to issue a general obligation

13

bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five

14

million dollars ($125,000,000) for the construction and/or improvement of municipal bicycle

15

infrastructure.

16

     (4) Municipal parks $250,000,000

17

     Approval of this question will allow the state of Rhode Island to issue a general obligation

18

bond, refunding bond, and/or temporary note in an amount not to exceed two hundred fifty million

19

dollars ($250,000,000) for the construction and/or improvement of local municipal parks."

20

     SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of

21

state shall prepare and deliver to the state board of elections ballot labels for each of the projects

22

provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the

23

description of each such project to enable voters to approve or reject each such proposition. The

24

general election laws, so far as consistent herewith, shall apply to this proposition.

25

     SECTION 3. Approval of projects by people. -- If a majority of the people voting on the

26

proposition in Section 1 hereof shall vote to approve any project stated therein, said project shall

27

be deemed to be approved by the people. The authority to issue bonds, refunding bonds and/or

28

temporary notes of the state shall be limited to the aggregate amount for all such projects as set

29

forth in the proposition, which has been approved by the people.

30

     SECTION 4. Bonds for capital development program. -- The general treasurer is hereby

31

authorized and empowered, with the approval of the governor, and in accordance with the

32

provisions of this act to issue capital development bonds in serial form, in the name of and on behalf

33

of the state of Rhode Island, in amounts as may be specified by the governor in an aggregate

34

principal amount not to exceed the total amount for all projects approved by the people and

 

LC001064 - Page 2 of 7

1

designated as "capital development loan of 2021 bonds." Provided, however, that the aggregate

2

principal amount of such capital development bonds and of any temporary notes outstanding at any

3

one time issued in anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount

4

for all such projects approved by the people. All provisions in this act relating to "bonds" shall also

5

be deemed to apply to "refunding bonds."

6

     Capital development bonds issued under this act shall be in denominations of one thousand

7

dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the

8

United States which at the time of payment shall be legal tender for public and private debts.

9

     These capital development bonds shall bear such date or dates, mature at specified time or

10

times, but not mature beyond the end of the twentieth state fiscal year following the fiscal year in

11

which they are issued; bear interest payable semi-annually at a specified rate or different or varying

12

rates; be payable at designated time or times at specified place or places; be subject to express terms

13

of redemption or recall, with or without premium; be in a form, with or without interest coupons

14

attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration

15

and other provisions as may be fixed by the general treasurer, with the approval of the governor,

16

upon each issue of such capital development bonds at the time of each issue. Whenever the

17

governor shall approve the issuance of such capital development bonds, the governor’s approval

18

shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and

19

countersigned by the secretary of state and shall bear the seal of the state. The signature approval

20

of the governor shall be endorsed on each bond.

21

     SECTION 5. Refunding bonds for 2021 capital development program. -- The general

22

treasurer is hereby authorized and empowered, with the approval of the governor, and in accordance

23

with the provisions of this act, to issue bonds to refund the 2021 capital development program

24

bonds, in the name of and on behalf of the state, in amounts as may be specified by the governor in

25

an aggregate principal amount not to exceed the total amount approved by the people, to be

26

designated as "capital development program loan of 2021 refunding bonds" (hereinafter "refunding

27

bonds"). The general treasurer with the approval of the governor shall fix the terms and form of

28

any refunding bonds issued under this act in the same manner as the capital development bonds

29

issued under this act, except that the refunding bonds may not mature more than twenty (20) years

30

from the date of original issue of the capital development bonds being refunded. The proceeds of

31

the refunding bonds, exclusive of any premium and accrual interest and net the underwriters’ cost,

32

and cost of bond insurance, shall, upon their receipt, be paid by the general treasurer immediately

33

to the paying agent for the capital development bonds which are to be called and prepaid. The

34

paying agent shall hold the refunding bond proceeds in trust until they are applied to prepay the

 

LC001064 - Page 3 of 7

1

capital development bonds. While the proceeds are held in trust, the proceeds may be invested for

2

the benefit of the state in obligations of the United States of America or the State of Rhode Island.

3

     If the general treasurer shall deposit with the paying agent for the capital development

4

bonds the proceeds of the refunding bonds, or proceeds from other sources, amounts that, when

5

invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all

6

principal, interest, and premium, if any, on the capital development bonds until these bonds are

7

called for prepayment, then such capital development bonds shall not be considered debts of the

8

State of Rhode Island for any purpose starting from the date of deposit of such monies with the

9

paying agent. The refunding bonds shall continue to be a debt of the state until paid.

10

     The term "bond" shall include "note," and the term "refunding bonds" shall include

11

"refunding notes" when used in this act.

12

     SECTION 6. Proceeds of capital development program. -- The general treasurer is directed

13

to deposit the proceeds from the sale of capital development bonds issued under this act, exclusive

14

of premiums and accrued interest and net the underwriters’ cost, and cost of bond insurance, in one

15

or more of the depositories in which the funds of the state may be lawfully kept in special accounts

16

(hereinafter cumulatively referred to as "such capital development bond fund") appropriately

17

designated for each of the projects set forth in Section 1 hereof which shall have been approved by

18

the people to be used for the purpose of paying the cost of all such projects so approved.

19

     All monies in the capital development bond fund shall be expended for the purposes

20

specified in the proposition provided for in Section 1 hereof under the direction and supervision of

21

the director of administration (hereinafter referred to as "director"). The director, or designee, shall

22

be vested with all power and authority necessary or incidental to the purposes of this act, including,

23

but not limited to, the following authority:

24

     (1) To acquire land or other real property or any interest, estate, or right therein as may be

25

necessary or advantageous to accomplish the purposes of this act;

26

     (2) To direct payment for the preparation of any reports, plans and specifications, and

27

relocation expenses and other costs such as for furnishings, equipment designing, inspecting, and

28

engineering, required in connection with the implementation of any projects set forth in Section 1

29

hereof;

30

     (3) To direct payment for the costs of construction, rehabilitation, enlargement, provision

31

of service utilities, and razing of facilities, and other improvements to land in connection with the

32

implementation of any projects set forth in Section 1 hereof; and

33

     (4) To direct payment for the cost of equipment, supplies, devices, materials, and labor for

34

repair, renovation, or conversion of systems and structures as necessary for the 2021 capital

 

LC001064 - Page 4 of 7

1

development program bonds or notes hereunder from the proceeds thereof. No funds shall be

2

expended in excess of the amount of the capital development bond fund designated for each project

3

authorized in Section 1 hereof.

4

     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of

5

this act shall be sold at not less than the principal amount thereof, in such mode and on such terms

6

and conditions as the general treasurer, with the approval of the governor, shall deem to be in the

7

best interests of the state.

8

     Any bonds or notes issued under the provisions of this act and coupons on any capital

9

development bonds, if properly executed by the manual or electronic signatures of officers of the

10

state in office on the date of execution, shall be valid and binding according to their tenor,

11

notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall

12

for any reason have ceased to hold office.

13

     SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. -- All

14

bonds and notes issued under the authority of this act shall be exempt from taxation in the state and

15

shall be general obligations of the state, and the full faith and credit of the state is hereby pledged

16

for the due payment of the principal and interest on each of such the bonds and notes as the same

17

shall become due.

18

     SECTION 9. Investment of monies in fund. -- All monies in the capital development fund

19

not immediately required for payment pursuant to the provisions of this act may be invested by the

20

investment commission, as established by chapter 10 of title 35, entitled “state investment

21

commission,” pursuant to the provisions of such chapter; provided, however, that the securities in

22

which the capital development fund is invested shall remain a part of the capital development fund

23

until exchanged for other securities; and provided further, that the income from investments of the

24

capital development fund shall become a part of the general fund of the state and shall be applied

25

to the payment of debt service charges of the state, unless directed by federal law or regulation to

26

be used for some other purpose, or to the extent necessary, to rebate to the United States treasury

27

any income from investments (including gains from the disposition of investments) of proceeds of

28

bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on

29

such bonds or notes from federal income taxation.

30

     SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not

31

otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and

32

notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise

33

appropriated.

34

     SECTION 11. Advances from general fund. -- The general treasurer is authorized, with the

 

LC001064 - Page 5 of 7

1

approval of the director and the governor, in anticipation of the issuance of notes or bonds under

2

the authority of this act, to advance to the capital development bond fund for the purposes specified

3

in Section 1 hereof, any funds of the state not specifically held for any particular purpose; provided,

4

however, that all advances made to the capital development bond fund shall be returned to the

5

general fund from the capital development bond fund forthwith upon the receipt by the capital

6

development fund of proceeds resulting from the issue of notes or bonds to the extent of such

7

advances.

8

     SECTION 12. Federal assistance and private funds. -- In carrying out this act, the director,

9

or designee, is authorized on behalf of the state, with the approval of the governor, to apply for and

10

accept any federal assistance which may become available for the purpose of this act, whether in

11

the form of loan or grant or otherwise, to accept the provision of any federal legislation therefor, to

12

enter into, act and carry out contracts in connection therewith, to act as agent for the federal

13

government in connection therewith, or to designate a subordinate so to act. Where federal

14

assistance is made available, the project shall be carried out in accordance with applicable federal

15

law, the rules and regulations thereunder and the contract or contracts providing for federal

16

assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any

17

federal funds received for the purposes of this act shall be deposited in the capital development

18

bond fund and expended as a part thereof. The director or designee may also utilize any private

19

funds that may be made available for the purposes of this act.

20

     SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and 13 of this act shall take effect

21

upon passage. The remaining sections of this act shall take effect when and if the state board of

22

elections shall certify to the secretary of state that a majority of the qualified electors voting on the

23

proposition contained in Section 1 hereof have indicated their approval of all or any projects

24

thereunder.

========

LC001064

========

 

LC001064 - Page 6 of 7

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

***

1

     This act would provide for a statewide voter referendum seeking approval of capital

2

development bonds for the improvement of local roadways and highways ($500,000,000);

3

pedestrian infrastructure ($125,000,000); the local bikeway development program ($125,000,000);

4

and municipal parks ($250,000,000).

5

     Sections 1, 2, 3, 11, 12 and 13 of this act would take effect upon passage. The remaining

6

sections of the act would take effect when and if the state board of elections shall certify to the

7

secretary of state that a majority of the qualified electors voting on the proposition contained in

8

Section 1 hereof have indicated their approval of all or any projects thereunder.

========

LC001064

========

 

LC001064 - Page 7 of 7