ARTICLE 5 SUBSTITUTE A AS AMENDED

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

SECTION 1. This article consists of Joint Resolutions that are submitted pursuant to Rhode Island General Laws §§ 35-18-1, et seq.

SECTION 2. Information Technology Improvements – Innovative Education.

WHEREAS, under Section 4 of Article 7 of the FY 2007 Appropriations Act the General Assembly approved the issuance of $49.9 million for Innovative Technology projects and,

WHEREAS, the language allocating funding for innovative education projects appears to allocate all $15,195,154 to the comprehensive education information system in the department of elementary and secondary education, when the intent of the issuance was to fund several innovative education projects in addition to this project, now, therefore be it

RESOLVED, that the General Assembly hereby approves the allocation of funds authorized in Section 4 of Article 7 of the FY 2007 Appropriations Act for innovative education as follows: $3,000,000 for the comprehensive education information system in the department of elementary and secondary education, $11,750,000 for the creative use of technology in higher education, and $445,154 for other innovative education projects

SECTION 3. Division of Motor Vehicles Computer System. Section 4 of Article 7 of Chapter 246 of the 2006 Public Laws is hereby amended to read as follows:

WHEREAS, The computer systems that currently support the Division of Motor Vehicles are outdated and put the operations of driver licenses and registrations systems at risk of operation; and

WHEREAS, The enterprise infrastructure of the state's wide and local area networks need upgrades to protect them from cyber security attack; and

WHEREAS, An integrated professional licensing software platform would increase the regulatory compliance of licenses and increase access and convenience to the public of licensing rules, regulations, and application processing; and

WHEREAS, Public education would benefit from outfitting teachers with skills in the use of information systems; and

WHEREAS, The state would benefit from a taxation database to enhance tax policy analysis, audits and tax collections; and

WHEREAS, The court system requires timely and integrated data systems capable of interacting with other state systems; and

WHEREAS, The project costs associated with the Innovative Technology Initiative is $49.3 million. The total financing obligation of the State of Rhode Island would be approximately $46.9 million, with $49.3 million deposited in the construction fund, and $0.6 million available to pay the associated costs of financing. Total payments on the State's obligation over ten (10) years on the $49.3 million issuance are projected to be $63.1 million, assuming an average effective interest rate of 4.5%. The payments would be financed within the Department of Administration from general revenue appropriations and Division of Motor Vehicles transaction fees; now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed $37.0 million for the provision of funds for Innovative Technology including $0.5 million to pay costs of financing; provided, that $3,900,000 be made available from the construction fund for the enterprise infrastructure of the state's wide and local area network; and provided, further, that $1,010,234 be made available from the construction fund for an integrated professional licensing software platform; and provided, further, that $15,195,154 be made available from the construction fund for comprehensive education information systems in the department of elementary and secondary education; and provided, further, that $2,500,000 be available from the construction fund to develop a taxation data base; and provided, further, that $13,900,000 be available from the construction fund to develop integrated data systems for the judiciary; and be it further

RESOLVED, That the General Assembly hereby approves financing in an amount not to exceed $13,000,000 to develop computer systems to support the division of motor vehicles, including $12,795,000 for the project and $205,000 for associated cost of financing; provided that costs of financing would be borne by a surcharge on all transactions over the ten year period; and provided further that the department of administration shall develop and adopt by rule and regulation pursuant to this section that surcharge and structure not to exceed seven (7) years and that all revenues from that surcharge be used exclusively for the payment of the principal, interest, and issuance costs associated with the $13,000,000 cost of the system; and be it further

There is hereby established a restricted receipt account within the Department of Administration to be called the Division of Motor Vehicles Registry Technology account to be used exclusively for debt service payments for the registry computer system. Notwithstanding the provision of Rhode Island General Law 35-4-27 indirect cost recoveries on restricted receipt accounts, no transfer or expenditure may be made for any purpose other than debt service.

RESOLVED, That the General Assembly hereby authorizes financing in an amount not to exceed $13,000,000 to develop computer systems to support the division of motor vehicles, including $12,795,000 for the project and $205,000 for associated cost of financing; provided that costs of financing would be borne by a surcharge on all transactions over the ten year period; which shall be deposited into the Division of Motor Vehicles Registry Technology account; and provided further that the department of administration shall develop and adopt by rule and regulation pursuant to this section that surcharge and structure not to exceed seven 97) years and that all revenues from that surcharge be used exclusively for the payment of the principal, interest, and issuance costs associated with the $13,000,000 cost of the system.

SECTION 4 Garrahy Courthouse Parking Project.

WHEREAS, given the current real estate marketplace, there is significant interest in mixed use developments within the City of Providence; and

WHEREAS, the Route I-195 relocation project is expected to cause significant disruption to the parking surrounding the Garrahy Courthouse, which is currently available for customers utilizing this facility and other buildings in the area; and

WHEREAS, the State needs to address the upcoming parking situation and can capture the significant increased value of the land caused by the current market demand for developable land in the City; and

WHEREAS, the State is prepared to entertain bids for a public private partnership to develop the land at the Garrahy Courthouse; and

WHEREAS, the intent is to partner with Rhode Island Housing and Mortgage Finance Corporation or another agency, if preferable, to establish a request for proposals (RFP) for a mixed use project consisting of parking, housing and retail; and

WHEREAS, the State would sell the property next to the courthouse (currently a parking lot) to the quasi-public agency who would then issue an RFP for prospective developers. The State would partner with the quasi-public agency to enter into a long term financial structure that would provide initial financial benefits for the State from the land sale and additional parking, and include provisions for long term revenues based on the upside potential of the project; now, therefore, be it

RESOLVED, That the State is authorized to enter into a long-term parking lease for court employees and other state employees, and develop a financing structure that would provide additional payments or other economic benefits or concessions to the State from the winning developer over a 20 to 30 year period; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this General Assembly.

SECTION 5. Rhode Island Airport Corporation Revenue Bonds.

WHEREAS, the Rhode Island Economic Development Corporation is a public instrumentality of the State of Rhode Island (the "State"), created by the General Assembly pursuant to Rhode Island General Laws §§ 42-64-1 et seq. (as enacted, reenacted and amended, the "Act"); and

WHEREAS, the Act declares, in part, that new industrial, manufacturing, recreational, and commercial facilities are required to attract and house new industries and thereby reduce the hazards of unemployment; and that unaided efforts of private enterprises have not met and cannot meet the needs of providing those facilities due to problems encountered in assembling suitable building sites, lack of adequate public service, unavailability of private capital for development, and the inability of private enterprise alone to plan, finance, and coordinate industrial, recreational, and commercial development; and

WHEREAS, the Act further declares it to be the public policy of the state to furnish proper and adequate airport facilities within the state and to encourage the integration of these facilities so far as practicable; and

WHEREAS, in furtherance of these goals, it is the policy of the state to retain existing industries and to induce, encourage and attract new industries through the acquisition, construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and commercial facilities, as well as transportation, residential, environmental, utility, public service, institutional and civic and community facilities, and to develop sites for such facilities; and

WHEREAS, the Act has empowered the Rhode Island Economic Development Corporation to establish subsidiary corporations to exercise its powers and functions, or any of them, and, pursuant to such power, the Rhode Island Economic Development Corporation has established the Rhode Island Airport Corporation to plan, develop, construct, finance, manage, and operate airport facilities in the state; and

WHEREAS, the Act provides that the Rhode Island Airport Corporation shall have the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; and

WHEREAS, the Act also provides that the Rhode Island Airport Corporation shall have the power to sell, mortgage, lease, exchange, transfer or otherwise dispose of or encumber any project, (or in the case of a sale, to accept a purchase money mortgage in connection therewith) or to grant options for any such purposes with respect to any real or personal property or interest therein, all of the foregoing for such consideration as the Rhode Island Airport Corporation shall determine. Any lease by the Rhode Island Airport Corporation to another party may be for such part of the Rhode Island Airport Corporation's property, real or personal, for such period, upon such terms or conditions, with or without an option on the part of the lessee to purchase any or all of the leased property for such consideration, at or after the retirement of all indebtedness incurred by the Rhode Island Airport Corporation on account thereof, as the Rhode Island Airport Corporation shall determine; and

WHEREAS the Act authorizes the Rhode Island Economic Development Corporation to borrow money and issue bonds for any of its corporate purposes; and

WHEREAS, pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the Rhode Island Economic Development Corporation has requested the approval of the General Assembly of the Rhode Island Economic Development Corporation's issuance of airport revenue bonds (the "Bonds") for the purpose of providing funds to the Rhode Island Airport Corporation for financing the various capital projects including but not limited to glycol facilities, runway and taxiway improvements, but not runway lengthening, obstruction removal, land acquisition, facility development and costs associated with environmental impact statements (the "2007 Airport Project") funding, capitalized interest, costs of issuing the Bonds and related costs, and the establishment of reserves for the project and the Bonds, including a debt service reserve fund; and

WHEREAS, the financing of the 2007 Airport Project will be accomplished through one or more loan agreements having the Rhode Island Airport Corporation as borrower, such agreement or agreements to require that the Rhode Island Airport Corporation make loan payments in an amount equal to the debt service on the Bonds.

RESOLVED, The General Assembly hereby approves the Rhode Island Economic Development Corporation's issuance of the Bonds. The Bonds will be special obligations of the Rhode Island Economic Development Corporation payable exclusively from loan repayments under a loan agreement with the Rhode Island Airport Corporation and from Bond proceeds, funds, accounts, and properties and the proceeds thereof pledged therefor, and thus the Rhode Island Economic Development Corporation's maximum liability will be limited to loan repayments received under the loan agreement and the aggregate amount of such other funds, accounts, properties, and proceeds.

RESOLVED, that the total amount of debt approved to be issued in the aggregate shall be limited to not more than $93,440,000; provided that none of the funds are used to lengthen the runway. Total debt service on the Bonds is not expected to exceed $7,076,500 annually and $207,795,000 in the aggregate based on an average interest rate of 6.00% and a 30-year maturity.

RESOLVED, The General Assembly hereby approves the Rhode Island Airport Corporation's entering into the loan agreements described above. Payments under the loan agreements shall be derived exclusively from project revenues and such other proceeds, funds, accounts, projects and the proceeds thereof as the Rhode Island Airport Corporation may pledge therefor.

RESOLVED, None of the Bonds or the loan agreements shall constitute indebtedness of the State or a debt for which the full faith and credit of the State is pledged or a moral obligation thereof.

RESOLVED, That this resolution shall apply to Bonds issued within one (1) year of the date of passage of this resolution.

SECTION 6. Economic Development Corporation—Purchase of Historic Tax Credits.

WHEREAS, the General Assembly finds that the State of Rhode Island tax credits earned pursuant to R.I.G.L. Chapter 44-33.2 (“Historic Tax Credits”) have had and continue to have the desired effect of stimulating, promoting and encouraging the redevelopment and reuse of historic structures in the State of Rhode Island for the general purpose of improving and enhancing the economic well being of the citizens of Rhode Island; and

WHEREAS, it is common practice for Historic Tax Credits to be sold to ultimate end users of such credits for an amount that is less than the face amount of the credits, after which the State of Rhode Island is still obligated to honor the Historic Tax Credits at their full face amount and to allow the ultimate end users to reduce their tax liabilities to the State of Rhode Island by such amount; and

WHEREAS, it is estimated that approximately $100,000,000 of Historic Tax Credits will be issued in fiscal year 2008; and

WHEREAS, the Rhode Island Economic Development Corporation (the “Corporation”) intends to acquire $60,000,000 in face amount of Historic Tax Credits in fiscal year 2008 for an expenditure of not more than $50,000,000, thereby resulting in a $10,000,000 savings to the State of Rhode Island in fiscal year 2008; and

WHEREAS, to continue the economic benefit of the Historic Tax Credits to the State of Rhode Island, but to reduce the cost to the State of the ultimate end use of the credits, the Corporation hereby requests the approval of the General Assembly for the Corporation to expend $50,000,000 to purchase Historic Tax Credits qualifying under R.I.G.L. sections 44-33.2-3(a) and (b) at a price not to exceed 83.33 cents for every dollar of such credits; now, therefore, be it

RESOLVED, that the Corporation is hereby authorized to conduct auctions, negotiate or otherwise determine the price of Historic Tax Credits qualifying under R.I.G.L. subsections 44-33.2-3(a) and 44-33.2-3(b) and is hereby authorized to purchase an amount not to exceed $50,000,000 at a price not to exceed 83.33 cents for each dollar of Historic Tax Credits purchased by the Corporation; provided however, that such purchases in the aggregate result in the purchase of at least $60,000,000 in face amount of Historic Tax Credits; and be it further

RESOLVED, that the Corporation must complete such auctions or negotiations by September 1, 2007 in order to communicate the results of this program to the participants in the Revenue Estimating Conference in November 2007; and be it further

RESOLVED, that the Corporation is hereby authorized to enter into such agreements, contracts and other documents in furtherance of the aforesaid resolution, subject to the limitations set forth therein and upon such other terms and conditions as the Corporation shall deem in the best interests of the State of Rhode Island.

SECTION 7. Blackstone Valley Court House

WHEREAS, A need exists to provide better judicial service to northern Rhode Island residents; and

WHEREAS, Superior, Family and District Court cases held in satellite locations in the Blackstone Valley were consolidated approximately fifteen years ago to the Garrahy Judicial Complex in downtown Providence due to a lack of staff and judicial resources; and

WHEREAS, The citizens and the Rhode Island Bar both opposed the consolidation of cases from the Blackstone Valley locations to Providence; and

WHEREAS, In calendar year 2006, the total filings/hearings that can be attributed to the Blackstone Valley range from 51,354 to 56,748 for an increase of twelve percent over seven years. During this time period, Superior Court misdemeanors increased by twenty-nine percent and felonies by sixteen percent. In District Court, misdemeanors increased by fourteen percent and felonies by thirty-six percent; and

WHEREAS, A significant number of businesses and industries either have relocated to the northern part of the state or expanded their facilities there, thus creating a greater demand for court services; and

WHEREAS, Bryant University, a growing community in northern Rhode Island, enrolls approximately 3,500 students, of which 2,200 live on campus. The traffic, activity, and concentration of students have an impact particularly on local law enforcement; and

WHEREAS, Garrahy Judicial Complex was constructed with a projected daily occupancy of 1,500. In recent years, the daily traffic has increased to around 3,000, almost twice the number the building was constructed to handle. While the Judiciary has taken a number of steps to ameliorate the overcrowded conditions in this building by moving some of the functions to the new Kent County Courthouse, there are limitations to what can be done. The construction of another courthouse in Providence County would significantly reduce the overcrowding in Garrahy; and

WHEREAS, The construction of a new Blackstone Valley Courthouse is critical to the state to ensure the continuing ability of the Judiciary to conduct and perform its operations in a functional and cost-efficient manner; and

WHEREAS, A site in the Town of Lincoln has been selected for the construction of a new Blackstone Valley Courthouse located on Route 246 at the intersection of Route 123, Jenkes Hill Road, just off Route 146. The location is more specifically described as the northeast corner of Lot # 17 on Map #43 (a portion of the foregoing being utilized by the Community College of Rhode Island, Flanagan Campus) and a minor portion of the westerly side of the northwest corner of Lot #16 on Map #43 (a portion of the foregoing being utilized by the William M. Davies, Jr. Career & Technical High School); and

WHEREAS, A new Blackstone Valley Courthouse will contain at least twelve courtrooms and provide surface parking for 500 vehicles with an additional eighteen secured spaces allocated within the courthouse for judges and magistrates; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (G.L. 1956 section 35-18-1, et seq.) requires that the General Assembly provide its consent to the issuance of certain obligations; and

WHEREAS, The design, construction, and equipping of these improvements will be financed thorough Certificates of Participation, with an expected payback period of twenty years. Financing the operation and maintenance of the new Blackstone Valley Courthouse will be included in the annual operating budget of the Rhode Island Judiciary; and

WHEREAS, The capital costs associated with the project are estimated to be $69,781,351. The total issuance would be approximately $71 million with $69,781,351 deposited in the construction fund, and $1 million available to pay the associated costs of issuance. Total lease payments over twenty years on the $71 million issuance are projected to be $113.94 million. This assumes an average coupon of five percent. The lease payments would be financed within the Department of Administration from general revenue appropriation and any other sources available to the agencies occupying the courthouse; now, therefore be it

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantation hereby recognizes that the construction of a new Blackstone Valley Courthouse is critical to ensure that justice is administered in a safe and efficient manner; and be it further

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed $71 million for the provisions of a new Blackstone Valley Courthouse at the aforementioned site; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this General Assembly with funding to be included in the Governor's submission of the fiscal year 2009 Appropriations Act; and be it further

RESOLVED, That the Secretary of State be and he hereby is authorized and directed to transmit a duly certified copy of this resolution to the Governor.

SECTION 8. This article shall take effect upon passage.