2022 -- H 8134

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LC005775

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM-- 2022 BOND REFERENDA

     

     Introduced By: Representatives Slater, and Diaz

     Date Introduced: April 13, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Preamble. --

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     1. The Roger Williams Park Zoo brings in over eight hundred thousand (800,000) visitors

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each year, including over four hundred thousand (400,000) from out of state, contributing to over

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fifty million dollars ($50,000,000) in economic impact for Roger Williams Park, the city of

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Providence and the State of Rhode Island;

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     2. The Roger Williams Park Zoo’s educational programs directly touch more than one

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hundred thirty eight thousand (138,000) learners of all ages each year and provide free and reduced

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entry to ensure that students of all backgrounds have access to these camps and programs;

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     3. Unlike many zoos nationwide that receive dedicated state or local revenues, the Roger

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Williams Park Zoo relies on entry fees and memberships for capital improvements;

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     4. Rhode Island voters approved fifteen million dollars ($15,000,000) for the Zoo as part

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of the 2014 “Clean Water, Open Space and Healthy Communities” bond, which the Zoo used

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promptly to build a brand new “Faces of the Rainforest” exhibit. The exhibit brought an estimated

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thirty six thousand, six hundred fifty seven (36,657) additional visitors to the Zoo in the first year

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and demonstrated a positive return on investment by contributing fifteen million six hundred fifty

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thousand dollars ($15,650,000) in direct value to the local and state economy;

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     5. Roger Williams Park is comprised of four hundred thirty five (435) beautifully

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maintained acres of open space, offering the citizens of Providence and this state a wide range of

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recreational and educational opportunities; and

 

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     6. The Park is listed on the National Register of Historic Places and was named one of the

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nation’s finest urban parks in the 2000 annual report of the National Trust for Historic Preservation;

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     7. Under those circumstances, the general assembly hereby determines that a bond

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referendum should be submitted to the people of the state to provide the Park and Zoo with the

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additional capital to maintain that status in that the requested funds will help the Zoo meet the

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technology demands of modern-day classrooms, increase student capacity to expand its education

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programs to Rhode Island schools and provide a large venue with seating capacity for lectures,

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assemblies, and artistic performances. The funds will also improve access and further contribute to

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the Zoo's positive economic impacts on Roger Williams Park, the city of Providence and all of

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Rhode Island.

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     SECTION 2. Proposition to be submitted to the people -- At the general election to be

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

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

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following proposition:

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     "Shall the action of the general assembly, by an act passed at the January 2022 session,

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authorizing the issuance of bonds, refunding bonds, and temporary notes of the State of Rhode

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Island for the capital project and in the amount listed below be approved, and the issuance of bonds,

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refunding bonds, and temporary notes authorized in accordance with the provisions of said act?"

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     Project

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     1. Roger Williams Park and Zoo $28,500,000

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

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bonds, refunding bonds, and/or temporary notes in an amount not to exceed twenty-eight million

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five hundred thousand dollars ($28,500,000).

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     Twenty-three million five hundred thousand dollars ($23,500,000) shall be for the new

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construction of a state-of-the-art carbon-neutral education center and event pavilion. Five million

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dollars ($5,000,000) shall be for funds to improve the park infrastructure, roadways and renovations

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to the historic public buildings and public art displays of the park.

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     SECTION 3. Ballot labels and applicability of general election laws. -- The secretary of

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state shall prepare and deliver to the state board of elections ballot labels for the project provided

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

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of the project to enable voters to approve or reject the proposition. The general election laws, so far

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as consistent herewith, shall apply to this proposition.

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     SECTION 4. Approval of project by people. -- If a majority of the people voting on the

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proposition in section 2 hereof shall vote to approve the project stated therein, said project shall be

 

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

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temporary notes of the state shall be limited to the aggregate amount for the project as set forth in

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the proposition, which has been approved by the people.

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     SECTION 5. . Bonds for capital development program. -- The general treasurer is

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

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

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

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

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designated as "capital development loan of 2022 bonds." Provided, however, that the aggregate

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

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

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for the project approved by the people. All provisions in this act relating to "bonds" shall also be

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deemed to apply to "refunding bonds."

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

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

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

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capital development bonds shall bear such date or dates, mature at specified time or times, but not

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mature beyond the end of the twentieth state fiscal year following the fiscal year in which they are

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issued; bear interest payable semi-annually at a specified rate or different or varying rates; be

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

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

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

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

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

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

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

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

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of the governor shall be endorsed on each bond.

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     SECTION 6. Refunding bonds for 2022 capital development program. -- The general

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

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with the provisions of this act, to issue bonds to refund the 2022 capital development program

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

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

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designated as "capital development program loan of 2022 refunding bonds" (hereinafter "refunding

 

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bonds").

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     The general treasurer with the approval of the governor shall fix the terms and form of any

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

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

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the date of original issue of the capital development bonds being refunded.

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     The proceeds of the refunding bonds, exclusive of any premium and accrual interest and

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net the underwriters' cost, and cost of bond insurance, shall, upon their receipt, be paid by the

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general treasurer immediately to the paying agent for the capital development bonds which are to

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be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they

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are applied to prepay the capital development bonds. While such proceeds are held in trust, the

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proceeds may be invested for the benefit of the state in obligations of the United States of America

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or the State of Rhode Island.

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

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

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

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

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

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

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

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

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"refunding notes" when used in this act.

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     SECTION 7. Proceeds of capital development program. -- The general treasurer is

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

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exclusive of premiums and accrued interest and net the underwriters' cost, and cost of bond

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insurance, in one or more of the depositories in which the funds of the state may be lawfully kept

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in special accounts (hereinafter cumulatively referred to as "such capital development bond fund")

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appropriately designated for the project set forth in section 1 hereof which shall have been approved

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by the people to be used for the purpose of paying the cost of the project so approved.

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

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

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

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

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but not limited to, the following authority:

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

 

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necessary or advantageous to accomplish the purposes of this act;

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

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

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engineering, required in connection with the implementation of the project set forth in section 1

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hereof;

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

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

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implementation of the project set forth in section 2 hereof; and

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

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repair, renovation or conversion of systems and structures as necessary for the 2022 capital

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

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

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authorized in section 2 hereof. With respect to the bonds and temporary notes described in section

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2, the proceeds shall be used for the following purpose:

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     Question 1, relating to bonds in the amount of twenty-eight million five hundred thousand

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dollars ($28,500,000) to provide funding for Roger Williams Park and Zoo for construction of a

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state-of-the-art, carbon-neutral educational center and event pavilion and improvement of the park

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infrastructure, roadways and renovations to the historic public buildings and public art displays of

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the park.

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     SECTION 8. Sale of bonds and notes. -- Any bonds or notes issued under the authority

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

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

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in the best interests of the state.

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     Any premiums and accrued interest, net of the cost of bond insurance and underwriter's

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discount, which may be received on the sale of the capital development bonds or notes shall become

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part of the Rhode Island capital plan fund of the state, unless directed by federal law or regulation

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to be used for some other purpose.

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     In the event that the amount received from the sale of the capital development bonds or

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notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be

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used to the extent possible to retire the bonds as the same may become due, to redeem them in

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accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the

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approval of the governor, shall deem to be in the best interests of the state.

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

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

 

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

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

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for any reason have ceased to hold office.

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     SECTION 9. Bonds and notes to be tax exempt and general obligations of the state. --

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

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

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

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same shall become due.

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     SECTION 10. All monies in the capital development fund not immediately required for

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payment pursuant to the provisions of this act may be invested by the investment commission, as

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established by chapter 10 of title 35, entitled "state investment commission," pursuant to the

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provisions of such chapter; provided, however, that the securities in which the capital development

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fund is invested shall remain a part of the capital development fund until exchanged for other

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securities; and provided further, that the income from investments of the capital development fund

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shall become a part of the general fund of the state and shall be applied to the payment of debt

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service charges of the state, unless directed by federal law or regulation to be used for some other

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purpose, or to the extent necessary, to rebate to the United States treasury any income from

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investments (including gains from the disposition of investments) of proceeds of bonds or notes to

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

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from federal income taxation.

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     SECTION 11. Appropriation. -- To the extent the debt service on these bonds is not

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

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

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appropriated.

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     SECTION 12. Advances from general fund. -- The general treasurer is authorized, with

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

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

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in section 6 hereof, any funds of the state not specifically held for any particular purpose; provided,

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

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

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

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advances.

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     SECTION 13. Federal assistance and private funds. -- In carrying out this act, the

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

 

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

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

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

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

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

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

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

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

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

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

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     SECTION 14. Sections 1, 2, 3, 4, 12 and 13 of this act shall take effect upon passage. The

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remaining sections of this act shall take effect when and if the state board of elections shall certify

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

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in section 2 hereof have indicated their approval of the project thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM-- 2022 BOND REFERENDA

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     This act would submit the state's 2022 capital development program requesting the

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issuance of general obligation bonds totaling twenty eight million five hundred thousand dollars

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($28,500,000) for approval of the electorate at the general election to be held on November 8, 2022.

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     Twenty-three million five hundred thousand dollars ($23,500,000) would be for the new

5

construction of a state-of-the-art carbon-neutral education center and event pavilion. Five million

6

dollars ($5,000,000) would be for funds to improve the park infrastructure, roadways and

7

renovations to the park's historic public buildings and public art displays.

8

     These projects would help the zoo meet the technology demands of the modern-day

9

classrooms, increase student capacity to expand its education programs to Rhode Island schools

10

and provide a large venue with seating capacity for lectures, assemblies, and artistic performances.

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Both projects would improve access and further contribute the zoo's positive economic impacts on

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Roger Williams Park, the city of Providence and all of Rhode Island.

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     Sections 1, 2, 3, 4, 12 and 13 of this act would take effect upon passage. The remaining

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

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

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section 2 hereof have indicated their approval the project thereunder.

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