Chapter 402
2011 -- H 6021
Enacted 07/13/11
A N A C T
RELATING TO
TOWNS AND CITIES
Introduced By: Representative John J. McCauley
Date Introduced: March 31, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Section 45-38.1-3 of the General Laws in Chapter
45-38.1 entitled "Health
And Educational Building
Corporation" is hereby amended to read as follows:
45-38.1-3.
Definitions. -- As used in this chapter, the
following words and terms have the
following meaning unless the context indicates another or
different meaning or intent:
(1) "Bonds"
means bonds of the corporation issued under the provisions of this chapter,
including refunding bonds, notwithstanding that the bonds may
be secured by mortgage or the
full faith and credit of the corporation or the full faith
and credit of a participating institution for
higher education or of a participating health care provider
or any other lawfully pledged security
of a participating educational institution or child day
care center or of a participating health care
provider;
(2)
"Borrower" means a student or a parent who has received or agreed to
pay an
education loan;
(3) "Capital
note(s)" means a note or notes of the corporation not exceeding twelve
(12)
months in duration to maturity issued for the benefit of a
health care provider or educational
institution to purchase capital assets to be used in the
operations of the health care provider or
educational institution;
(4) "Child day
care center" means a child day care center as defined in section
23-28.1-5,
which is a not-for-profit organization;
(5) "Cooperative
hospital service organization" means a corporation created pursuant to
chapter 6 of title 7, which meets the requirements of Section
501(e) of the Internal Revenue Code
of 1954, 26 U.S.C. section 501(e), and is exempt from
federal taxation of income in accordance
with Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C. section 501(c)(3);
(6) "Corporation"
means the
created and established as a nonbusiness
corporation, under and pursuant to chapter 6 of title 7, as
amended, and constituted and established as a public body
corporate and agency of the state
under section 45-38.1-4, or any board, body, commission,
department, or officer succeeding to
the principal functions of the corporation or to whom the
powers conferred upon the corporation
by this chapter are given by law;
(7) "Corporation
loans" means loans by the corporation to an educational institution or
child day care center for the purpose of funding education
loans;
(8) "Cost" as
applied to a project or any portion of it, financed under the provisions of
this chapter, embraces all or any part of the cost of
construction and acquisition of all lands,
structures, real or personal property, rights, rights of way,
franchises, easements, and interests
acquired or used for a project, the cost of demolishing or
removing any buildings or structures on
land so acquired, including the cost of acquiring any
lands to which the buildings or structures
may be moved, the cost of all machinery and equipment,
financing charges, interest prior to,
during and for a period after completion of the
construction, provisions for working capital,
reserves for principal and interest and for extensions,
enlargements, additions, replacements,
renovations and improvements, cost of engineering, financial and
legal services, plans,
specifications, studies, surveys, estimates of cost and of revenues,
administrative expenses,
expenses necessary or incident to determining the feasibility
or practicability of constructing the
project, and other expenses that may be necessary or incident
to the construction and acquisition
of the project, the financing of the construction and
acquisition, and the placing of the project in
operation;
(9) "Default
insurance" means insurance insuring education loans, corporation loans, or
bonds or notes of the corporation against default;
(10) "Default
reserve fund" means a fund established pursuant to a resolution of the
corporation for the purpose of securing education loans,
corporation loans, or bonds or notes of
the corporation;
(11) "Education
loan" means a loan which is made by or on behalf of an educational
institution or child day care center from the proceeds of a
corporation loan, to a student or parents
of a student or both, to finance the student's
attendance at the institution;
(12) "Education
loan series portfolio" means all education loans made by or on behalf of
a specific educational institution or child day care
center which are funded from the proceeds of a
corporation loan to the institution out of the proceeds of a
related specific bond or note issued
through the corporation;
(13) "Educational
institution" means:
(i)
an An
educational institution or local education authority participating in the
school
housing aid program as described in chapter 7 of title 16
situated within this state which, by virtue
of law or charter, is a public or other nonprofit
educational institution empowered to provide a
program of education at the primary, secondary or high school
level, beyond the high school
level, and which is accredited by a nationally recognized
educational accrediting agency or
association and awards a bachelor's or advance degree or provides
a program of not less than two
(2) years' duration which is
accepted for full credit toward a bachelor's degree;
(ii) Any nonprofit
corporation, business corporation, limited liability company or
partnership or limited partnership the shareholders or members or
partners or limited partners of
which are limited to those entities described in paragraph
(13)(i) hereof; or
(iii) Any nonprofit
corporation, business corporation, limited liability
company,
partnership or limited partnership which is a party to a
public-private partnership agreement at
least one of the parties of which is described in paragraph
13(i) hereof.
(14) "Health care
provider" means:
(i)
Any nonprofit hospital incorporated under the laws of the state, including any
nonprofit subsidiary corporations formed by any hospital or formed
by the parent corporation of
the hospital;
(ii) Any nonprofit
corporation, the member or members of which consist solely of one or
more hospitals or their parent corporations;
(iii) Any other
hospital, which is licensed as a general hospital or maternity hospital
pursuant to chapter 17 of title 23, which is exempt from
taxation;
(iv)
Any nonprofit group health association;
(v)
Any cooperative hospital service organization, or any nonprofit corporation
that is
licensed as a skilled nursing and/or intermediate care
facility pursuant to chapter 17 of title 23,
including any nonprofit subsidiary corporation formed by any of
the foregoing skilled nursing
and/or intermediate care facilities, or any nonprofit
corporation eligible to receive funding,
pursuant to chapter 8.5 of title 40.1, and/or a corporation
created pursuant to chapter 6 of title 7;
provided, that it is a real estate holding corporation created
for the benefit of a nonprofit
corporation eligible to receive funding under chapter 8.5 of
title 40.1;
(vi)
Any nonprofit health care corporation whose purpose is to provide home
care
services or supplies to the citizens of this state including,
but not limited to, nonprofit visiting
nurse associations and nonprofit home care organizations;
(vii) Any other
not-for-profit corporation organized pursuant to chapter 6 of title 7 or
pursuant to any special act of the general assembly and which
is exempt from federal taxation of
income in accordance with Section 501(c)(3), 26 U.S.C.
section 501(c)(3), of the Internal
Revenue Code and which is licensed as:
(A) A health care
facility pursuant to chapter 17 of title 23;
(B) A
"facility" pursuant to chapter 24 of title 40.1;
(C) A "residential
care and assisted living facility" pursuant to chapter 17.4 of title 23;
(D) An adult day-care
facility; or
(E) A "clinical
laboratory" pursuant to chapter 23-16.2 and as a manufacturer of
biological products by the United States Department of Health
and Human Services Food and
Drug Administration that operates in
(viii) Any
not-for-profit corporation which is exempt from federal taxation of income in
accordance with Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C. section 501(c)(3), or
any successor section of the Internal Revenue Code, which
under contract with the state educates,
counsels or rehabilitates young people who have come subject
to child welfare, juvenile justice or
mental health systems in the state; or
(ix) Any network or
similar arrangement of those entities listed in subsection (11)(i)
through (viii) above;
(x)(A) Any nonprofit
corporation, business corporation, limited liability
company,
partnership or limited partnership, the shareholders or members
or partners or limited partners of
which are limited to those entities described in paragraph
(14)(i) through (ix) hereof; or
(B) Any nonprofit
corporation, business corporation, limited liability
company,
partnership or limited partnership which is a party to a
public-private partnership agreement at
least one of the parties of which is described in paragraph
(14)(i) through (ix) hereof.
(15) "Loan funding
deposit" means monies or other property deposited by an educational
institution or child day care center with the corporation, a
guarantor, or a trustee for the purpose
of:
(i)
Providing security for bonds or notes;
(ii) Funding a default
reserve fund;
(iii) Acquiring default
insurance;
(iv)
Defraying costs of the corporation, the monies or properties to be in
amounts as
deemed necessary by the corporation or a guarantor as a
condition for the institution's
participation in the corporation's programs;
(16) "Nonprofit
group health association" means an association or a corporation
established by an act of the general assembly, or created
pursuant to chapter 6 of title 7, to
provide all or any part of a project or property to the
citizens of this state;
(17) "Note"
means a written promise to pay, including, but not limited to, capital notes
and revenue anticipation notes;
(18) "Parent"
means any parent, legal guardian, or sponsor of the student at an
educational institution or child day care center;
(19) "Participating
hospital" means a hospital which, pursuant to the provisions of this
chapter, undertakes the financing and construction or
acquisition of a project or undertakes the
refunding or refinancing of obligations or of a mortgage or of advances
as provided in and
permitted by this chapter;
(20)
"Participating educational institution" means an educational
institution or child day
care center which, pursuant to the provisions of this
chapter, undertakes the financing and
construction or acquisition of a project, or undertakes the
refunding or refinancing of obligations
or of a mortgage or of advances or undertakes the
financing, directly or indirectly, of education
loans, all as provided in and permitted by this chapter;
(21)
"Project," in the case of a participating educational institution or
child day care
center means a structure suitable for use as a dormitory or
other housing facility, dining hall,
student union, administration building, academic building,
library, laboratory, research facility,
classroom, athletic facility, health care facility, and
maintenance, storage or utility facility, and
other structures or facilities related to the educational
institution or child day care center or
required or useful for the instruction of students or the
conducting of research or the operation of
an educational institution or child day care center
including parking and other facilities or
structures essential or convenient for the orderly conduct of
the educational institution or child
day care center and also includes equipment and machinery
and other similar items necessary or
convenient for the operation of a particular facility or
structure in the manner for which its use is
intended, but does not include such items as books, fuel,
supplies, or other items which are
customarily deemed to result in a current operating charge; and,
in the case of a participating
health care provider, means a structure suitable for use as
a hospital, clinic, nursing home,
congregate housing for the elderly and/or infirm, mental health
service unit, or other health care
facility, laboratory, laundry, nurses', interns', or clients'
residence, administration building,
research facility, and maintenance, storage or utility
facility, and other structures or facilities
related to the health care provider or required or useful for
the operation of the project, including
parking and other facilities or structures essential or
convenient for the orderly operation of the
project, and also includes equipment and machinery and other
similar items necessary or
convenient for the operation of the project in the manner for
which its use is intended, but does
not include such items as fuel, supplies, or other items
which are customarily deemed to result in
a current operating charge;
(22)
"Public-private partnership agreement" means an arrangement or
agreement pursuant
to which a nonprofit corporation, business corporation,
limited liability company, partnership or
limited partnership undertakes or develops a project for an
educational institution or a health care
provider including, but not limited to, a lease arrangement,
wherein pursuant to such arrangement
or agreement at the conclusion of such arrangement or
agreement the ownership of the bond-
financed or note-financed project is transferred to the
educational institution or health care
provider for no additional consideration.
(23)(22)
"Revenue anticipation note(s)" means a note or notes of the
corporation not
exceeding twelve (12) months in duration to maturity issued for
the benefit of a health care
provider or educational institution in anticipation of
revenues reasonably expected to be collected
by the health care provider or educational institution
within twelve (12) months from the date of
the note or notes;
(24)(23)
"School housing project" means an "approved project," as
defined in section 16-
7-36(2);
(25)(24)
"School housing project financing" means bonds issued through the
corporation
to fund school housing projects as provided in and
permitted by section 16-7-44;
(26)(25)
"State" means the state of
(27)(26)
"State reimbursement" shall mean the state's share of school housing
project
cost as determined in accordance with sections 16-7-35 --
16-7-47.
SECTION 2. This act shall take effect upon passage.
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LC02319
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