Article-036-SUB-A-as-amended

1-1	ARTICLE 36 SUBSTITUTE A AS AMENDED
1-2	RELATING TO RHODE ISLAND PUBLIC CORPORATION DEBT MANAGEMENT ACT
1-3	JOINT RESOLUTIONS
1-4	SECTION 1. House Resolution Number 340, 2001 H-6533, entitled “Joint Resolution
1-5	Approving the Financing of a New Training School for Youth at the Pastore Center in Cranston”
1-6	is hereby amended to read as follows:
1-7	WHEREAS, The Rhode Island Training School for Youth (the “Training School”) was
1-8	established for the detention of children by order of the Family Court and for the confinement,
1-9	instruction and reformation of children found delinquent by the Family Court; and
1-10	WHEREAS, The Training School is a secure, 24 hour/365 day residential program for
1-11	both male and female adjudicated delinquents, and youth detained and awaiting trial. The
1-12	program provides for the protection of Rhode Island residents through the supervision and
1-13	housing of youth, educational, medical, recreational, religious and rehabilitative services, and
1-14	proper placement for youth upon release; and
1-15	WHEREAS, Since 1973, the Training School has been the subject of a Federal District
1-16	Court Order to improve physical conditions, programming, services, policies and procedures; and
1-17	WHEREAS, A Consent Decree, entered by the Federal District Court in October 2000,
1-18	includes the requirement that the department construct a new facility or renovate the existing
1-19	facility to provide adequate and sufficient housing, education and programming to training school
1-20	residents; and
1-21	WHEREAS, The present capacity of the Training School is 180 beds and does not
1-22	accommodate the number of residents which need to be housed. The resultant overcrowding
1-23	creates an unsafe environment for both residents and staff and the current housing configuration
1-24	results in high supervision costs; and
1-25	WHEREAS, The buildings are not in compliance with the Americans with Disabilities
1-26	Act; and
1-27	WHEREAS, The buildings lack electrical security and life safety systems, have
1-28	deteriorated bathrooms and shower areas, inadequate HVAC systems, interior doors and
1-29	hardware, and poor electrical lighting; and
1-30	WHEREAS, In the last decade, a new school building was constructed and three modular
1-31	buildings were constructed, and renovations and improvements were made to Buildings 9, 5 and
1-32	6; and
2-1	WHEREAS, Notwithstanding the improvements made to the facility, the physical plant
2-2	of the facility is not capable of meeting American Correctional Association accreditation as
2-3	required by the Federal Court and therefore has prevented full compliance with the Court Order
2-4	necessitating the need for Judicial oversight; and
2-5	WHEREAS, These and related problems require the construction and furnishing of a new
2-6	facility on existing state property on Power Road in Cranston to the south of Route 37; and
2-7	WHEREAS, The new facility would have a total of 214 beds, with options for future
2-8	expansion should it become necessary, and would provide safe housing and education and
2-9	programming opportunities for training school residents; and
2-10	WHEREAS, The design and construction of the project are to be financed through
2-11	Certificates of Participation, with an expected payback period of twenty (20) years, the Rhode
2-12	Island Capital Plan, federal funds, and with proceeds from the 1994 sale of the Sockanosett
2-13	property. Financing for the operation and maintenance of the facility will be included in the
2-14	annual operating budgets of the Department of Children, Youth and Families; and
2-15	WHEREAS, The capital costs associated with this project are estimated to be $60
2-16	million. This includes $300,000 from the Rhode Island Capital Plan Fund, $645,364 in federal
2-17	funds, proceeds of $1.9 million from the 1994 sale of the Sockanosett property and $57.2 million
2-18	from the issuance of Certificates of Participation. The total issuance would be approximately
2-19	$57.8 million, with $57.2 million deposited in the construction fund and $555,000 available to
2-20	pay the associated costs of issuance. Total lease payments over twenty (20) years on the $57.8
2-21	million issuance are projected to be $92.6 million, assuming an average coupon of 5.03 %. The
2-22	lease payments would be financed within the Department of Administration from general revenue
2-23	appropriations and any other sources available to the department; now, therefore be it
2-24	RESOLVED, That a new training school is critical for the State to comply with the
2-25	Federal Court Consent Decree and would provide secure, humane living conditions and
2-26	rehabilitative opportunities for training school residents; and
2-27	RESOLVED, That this General Assembly thereby approves financing in an amount not
2-28	to exceed $57.8 million for the construction of a new Training School for Youth; and be it further
2-29	RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by
2-30	this General Assembly.; and be it further
2-31	RESOLVED, That this Resolution shall apply to bonds issued prior to February 1, 2004;
2-32	and be it further
2-33	RESOLVED, That prior to the issuance of any bonds, a report that includes site, cost,
2-34	final design, and program shall be submitted to the Governor, the Speaker of the House of
3-1	Representatives, the President of the Senate and the Chairpersons of the House and Senate
3-2	Finance Committees; and provided further that bonds shall not issue unless the Speaker of the
3-3	House and President of the Senate transmit a letter to the Governor signifying the approval of the
3-4	report; and be it further
3-5	RESOLVED, That the amendments to this Joint Resolution shall take effect upon
3-6	passage by the General Assembly.
3-7	SECTION 2. WHEREAS, The University of Rhode Island is proposing a project which
3-8	involves the construction of a new sixteen thousand (16,000) square foot lodge and an addition to
3-9	the dining room and service kitchen at the Whispering Pines Conference Center (the “Conference
3-10	Center”) on the W. Alton Jones Campus; and
3-11	WHEREAS, This new lodge is planned to include approximately twenty (20) bedrooms,
3-12	an approximately two thousand (2,000) square foot meeting room, and an approximately one
3-13	thousand (1,000) square foot living room. Constructed on a site northeast of the main dining
3-14	lodge, the new lodge will be within close proximity to the Laurel Lodge and is planned to face
3-15	Louttit Pond. Completion of this new lodge will provide the Conference Center with
3-16	approximately fifty-two (52) guest rooms and five (5) meeting rooms. The proposal also includes
3-17	an enlarged dining room consisting of approximately two thousand and sixteen (2,016) square
3-18	feet and an addition of approximately four hundred eighty (480) square feet to the serving kitchen
3-19	to enhance the Conference Center’s ability to maximize the number of groups it serves; and
3-20	WHEREAS, Since the construction of Sycamore Lodge in 1992, the Conference Center
3-21	has increased its gross revenues from less than six hundred fifty thousand dollars ($650,000)
3-22	annually to nearly two million dollars ($2,000,000) per year. This revenue growth has been
3-23	instrumental in assisting the campus to become financially self-supporting. Recent sales and
3-24	marketing efforts are producing requests for meeting space that exceed the present capacity,
3-25	especially for overnight meetings, the most profitable segment. Adding to the overnight sleeping
3-26	facilities will allow the Conference Center to book larger groups and to accommodate additional
3-27	requests from groups that are currently customers of the Conference Center; and
3-28	WHEREAS, Increasing the size of the dining room and the serving kitchen will also
3-29	enable the Conference Center to make the most efficient use of the new lodge by permitting both
3-30	day and overnight meeting groups to use the Conference Center. The proposed new lodge is
3-31	planned to consist of a two-story wood structure similar to the Sycamore Lodge with the addition
3-32	of a small exercise/workout area for guests to utilize, as well as a larger conference room and
3-33	leisure area. The building is planned to be equipped with modern telecommunications facilities
3-34	and will include televisions, telephones and Internet access in each guest room and common area;
4-1	and
4-2	WHEREAS, A construction engineer has reviewed the estimated costs and construction
4-3	expenses for this project. The engineer’s projected inflation rates have been used in estimating
4-4	this project. The campus management is prepared to accelerate the commencement of design
4-5	work in advance of the July 2003 design-start date using funds from the W. Alton Jones Campus
4-6	Endowment to be reimbursed from the long-term financing.
4-7	WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General
4-8	Laws Section 35-18-1 et seq.) requires that no elected or appointed state official may enter into
4-9	any financing lease or into any guarantee with any person without the prior approval of the
4-10	general assembly if the total payments under the financing lease or guarantee will exceed the sum
4-11	of four million dollars ($4,000,000), and further provides that no bonds may be issued or incurred
4-12	by any public corporation to finance, in whole or in part, the construction, acquisition or
4-13	improvement of any essential public facility without the prior approval of the general assembly;
4-14	and
4-15	WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General
4-16	Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance
4-17	of certain obligations; and
4-18	WHEREAS, The design, construction and equipping of these improvements will be
4-19	financed through RIHEBC revenue bonds, with an expected term of twenty (20) years; and
4-20	WHEREAS, Debt service payments would be supported by revenues of the projects
4-21	financed; now, therefore be it
4-22	RESOLVED, That the total amount of the debt approved to be issued in the aggregate
4-23	shall be limited to not more than four million two hundred eighty-five thousand dollars
4-24	($4,285,000). Total debt service on the bonds is not expected to exceed three hundred thirty-five
4-25	thousand dollars ($335,000) annually and six million six hundred forty-two thousand dollars
4-26	($6,642,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8)
4-27	percent and a twenty (20) year maturity; and be it further
4-28	RESOLVED, That the new facility is critical to improve and accommodate the daily
4-29	operation of the University of Rhode Island and that this General Assembly hereby approves
4-30	financing; and be it further
4-31	RESOLVED, That this Joint Resolution shall take effect upon passage by the General
4-32	Assembly.
4-33	SECTION 3. WHEREAS, URI is proposing construction of a new five hundred (500)-
4-34	eight hundred (800) student housing facility in one or more buildings. The project uses revenue
5-1	from the new beds and retail space to support the debt service on the entire project. This model
5-2	allows URI to construct housing needed by undergraduate and graduate students more quickly
5-3	than if a similar project were constructed under the traditional design-bid-build model. Currently,
5-4	URI has a waiting list of students interested in housing; and
5-5	WHEREAS, The Board of Governors has a strategic initiative to increase the number of
5-6	students attaining a degree and is making a concerted effort to improve student retention. The
5-7	goal of improving retention by two percent (2%) per year for the next three(3) years, by itself,
5-8	would add to the current campus housing need of seven hundred (700) apartment beds, and two
5-9	hundred fifty (250) suite beds; and
5-10	WHEREAS, Studies and conversations with colleagues at other institutions, consultants,
5-11	developers and others in the industry agree that today’s students and their families are looking for
5-12	higher quality housing and a variety of housing style options. They want housing with amenities
5-13	such as access to voice, video and data, private bathrooms and comfortable living spaces where
5-14	students can gather. Over the course of their careers, students want the ability to progressively
5-15	move from a dormitory-style of living to suites and finally to independent living in apartments.
5-16	URI currently lacks suite-style or sufficient apartment-style housing to meet this changing
5-17	demand; and
5-18	WHEREAS, For some time, URI has been aware of the changing expectations of
5-19	students relative to campus housing. Studies and survey data collected since 1998 indicate that
5-20	upper-level students prefer to live in apartment-style or suite-style housing as opposed to the
5-21	more traditional dormitory units with double-loaded corridors and shared bathrooms; and
5-22	WHEREAS, More recently URI has experienced an unanticipated surge in demand for
5-23	campus housing – fueled in part by the Internet access provided by the URI network backbone,
5-24	competitors’ ability to guarantee campus housing beyond the freshman year, and an overall desire
5-25	for the convenience of campus living. URI lags behind many of its competitors in responding to
5-26	this important shift in student needs; and
5-27	WHEREAS, Evidence that supports this change in URI’s traditional housing pattern –
5-28	where freshmen live on campus and then move “down the line” in subsequent years – can be
5-29	found in the current waiting list for undergraduate campus housing. In addition, there is a waiting
5-30	list of ninety-five (95) graduate students seeking campus housing. The current inventory of
5-31	apartments for graduate students is one hundred twenty-four (124). These units have been at
5-32	capacity for the last several years. The Admissions Office is hearing from prospective students
5-33	that tripling in dorm rooms and URI’s inability to guarantee campus housing beyond the
5-34	freshman year is a concern; and
6-1	WHEREAS, In March 2000, the Dantner Company, a national real estate research firm,
6-2	conducted an analysis of student housing in the Kingston area. They studied the strength of the
6-3	current market and the anticipated future demand for rental housing as well as student enrollment
6-4	trends, the economy and the need for additional housing options for URI students. They were
6-5	asked to evaluate the feasibility of constructing apartment-style housing on or near the campus in
6-6	Kingston. The Dantner Company found, based on their interviews, case studies of other college
6-7	communities and their evaluation of the Kingston market, that there is a potential resident pool of
6-8	six thousand one hundred ninety three (6,193) students – graduate and undergraduate – in
6-9	addition to those already living on campus. Using a capture ratio of ten percent (10%) of the total
6-10	residential pool, it is Dantner’s opinion that at least six hundred twenty (620) people currently
6-11	living off-campus would be attracted to new apartments on or near campus; and
6-12	WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General
6-13	Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance
6-14	of certain obligations; and
6-15	WHEREAS, The design, construction and equipping of these improvements will be
6-16	financed through RIHEBC revenue bonds, with an expected term of thirty (30) years; and
6-17	WHEREAS, Debt service payments would be supported by revenues of the projects
6-18	financed; now, therefore be it
6-19	RESOLVED, That the total amount of debt approved to be issued in the aggregate shall
6-20	be limited to not more than sixty-six million nine hundred thirty-five thousand dollars
6-21	($66,935,000). Total debt service on the bonds is not expected to exceed four million four
6-22	hundred thousand dollars ($4,400,000) annually and one hundred twenty-nine million fifteen
6-23	thousand dollars ($129,015,000) in the aggregate based on an average interest rate of four and
6-24	eight-tenths (4.8) percent and a thirty (30) year maturity; and be it further
6-25	RESOLVED, That the new dormitory facilities are critical to improve and accommodate
6-26	the daily operation of URI; and that this general assembly hereby approves financing; and it be
6-27	further
6-28	RESOLVED, That this Joint Resolution shall take effect upon its passage by this General
6-29	Assembly.
6-30	SECTION 4. WHEREAS, Rhode Island College has five existing residence halls: Thorp,
6-31	Weber, Browne, Willard and Sweet built in 1959, 1964, 1967, 1971, and 1991 respectively,
6-32	which provide housing for eight hundred thirty (830) students. Four (4) of the residence halls are
6-33	over thirty (30) years old and have progressively been renovated and upgraded for
6-34	telecommunications. It has been a challenge for the institution to establish a price for housing
7-1	that covers personnel, operating and debt service expenses while encouraging students to live in
7-2	these facilities. Given the age and traditional design style of the existing on-campus housing, the
7-3	college is faced with the decision to provide more affordable on-campus housing that meets the
7-4	expectations of today’s students; and
7-5	WHEREAS, As competition for students grows between and among public and private
7-6	institutions, the quality of programs and services such as residential life becomes a critical
7-7	component upon which students and their parents make choices. Since housing choices are
7-8	voluntary, it is important to provide up-to-date facilities for students; otherwise, students will
7-9	elect to commute from home, live off-campus, or attend another institution; and
7-10	WHEREAS, The demand for on-campus housing has been increasing for several years
7-11	due to a variety of factors. Waiting lists for available rooms have increased from fifty (50) to one
7-12	hundred fifty (150) per year over the last three (3) years. The college has experienced a small but
7-13	gradual increase in enrollment. The telecommunications investment in the residence halls has
7-14	increased the desirability of on-campus housing. Concurrently, affordable off-campus housing
7-15	has been decreasing due to increased housing costs and competition from non-student renters and
7-16	residential buyers; and
7-17	WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General
7-18	Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance
7-19	of certain obligations; and
7-20	WHEREAS, The design construction and equipping of these improvements will be
7-21	financed through RIHEBC revenue bonds with an expected term of twenty (20) years; and
7-22	WHEREAS, Debt service payments will be supported by revenues of the project; now,
7-23	therefore be it
7-24	RESOLVED, That the Board of Governors shall submit the feasibility study and pro
7-25	forma projections for the project to the chairperson of the House Finance Committee and the
7-26	chairperson of the Senate Finance Committee; and be it further
7-27	RESOLVED, That the total amount of debt approved to be issued in the aggregate shall
7-28	be limited to not more than seven million five hundred thousand dollars ($7,500,000). Total debt
7-29	service on the bonds is not expected to exceed five hundred thousand dollars ($500,000) annually
7-30	and fourteen million dollars ($14,000,000) in the aggregate based on an average interest rate of
7-31	four and eight-tenths (4.8) percent and a twenty (20) year maturity; and be it further
7-32	RESOLVED, That the new facility is critical to improve and accommodate the daily
7-33	operation of Rhode Island College and that this General Assembly hereby approves financing;
7-34	and be it further
8-1	RESOLVED, That this Joint Resolution shall take effect upon passage by the General
8-2	Assembly.
8-3	SECTION 5. WHEREAS, The facility housing the Rhode Island Traffic Tribunal
8-4	(“RITT”) was originally a manufacturing building retrofitted into a courthouse in 1974; and
8-5	WHEREAS, Over the past twenty (20) years, the RITT has undergone considerable
8-6	remodeling and rehabilitation to accommodate the changing needs of the Judiciary and the public;
8-7	and
8-8	WHEREAS, Notwithstanding these improvements, the RITT is grossly inadequate for the
8-9	current and projected needs of the people it serves; and
8-10	WHEREAS, The current RITT is not in compliance with the American Disabilities Act,
8-11	and thus, is not handicap accessible. The governor’s Commission on Handicap Accessibility is
8-12	unwilling to grant another waiver for ADA noncompliance beyond June 30, 2003 since the
8-13	current building has been on waiver since February 1997. The cost to bring the current building in
8-14	compliance with ADA will be approximately eight hundred thousand dollars ($800,000) to one
8-15	million dollars ($1,000,000); and
8-16	WHEREAS, The heating, ventilation, and air conditioning systems are antiquated and
8-17	need replacement. The building is inadequate to handle the flow of people on a daily basis. The
8-18	physical appearance of the building is unprofessional, overcrowded, and in a visible state of
8-19	disrepair. The new facility will also help to relieve the scheduling and customer relation problems
8-20	that permeate the court operation due to the design of the current courthouse; and
8-21	WHEREAS, The current RITT poses a dangerous security risk due to the lack of
8-22	separation among the public, judges, and staff relative to the circulation traffic and usage of the
8-23	hallways, corridors, courtrooms, and office space within the building. Since the building was
8-24	originally utilized as a manufacturing building, security considerations were not factored in the
8-25	design. As such, a potentially dangerous security hazard is created by the existence of the
8-26	following high risk situations: the main central corridor system in the building is simultaneously
8-27	used by judges, the public, and staff; and the easy accessibility to judges’; chambers and staff
8-28	offices by the public; and
8-29	WHEREAS, These and related problems require that a new facility be provided to house
8-30	the RITT in a safe, efficient, and user-friendly fashion; and
8-31	WHEREAS, A new RITT facility will contain at least seven (7) courtrooms and provide
8-32	four hundred and fifty (450) parking spaces for judges, staff, and the public; and
8-33	WHEREAS, The Rhode Island Public Corporation Debt Management Act (Rhode Island
8-34	General Laws. 1956 section 35-18-1, et seq.) requires that the general assembly provide its
9-1	consent to the issuance of certain obligations; and
9-2	WHEREAS, The design, construction, and equipping of these improvements will be
9-3	financed through Certificates of Participation, with an expected payback period of twenty (20)
9-4	years. Financing the operation and maintenance of the new RITT facility will be included in the
9-5	annual operating budget of the Rhode Island Judiciary; and
9-6	WHEREAS, The capital costs associated with the project are estimated to be twenty one
9-7	million eight hundred thousand dollars ($21,800,000). The total issuance would be approximately
9-8	twenty six million four hundred twenty-five thousand dollars ($26,425,000), with twenty one
9-9	million eight hundred thousand dollars ($21,800,000) deposited in the construction fund, two
9-10	million two hundred thousand dollars ($2,200,000) million deposited into a debt service reserve
9-11	fund, if required, one million nine hundred sixty thousand dollars ($1,960,000) for capitalized
9-12	interest over eighteen (18) months, and four hundred twenty five thousand dollars ($425,000)
9-13	available to pay the associated costs of issuance. Total lease payments over twenty (20) years on
9-14	the twenty six million four hundred twenty five thousand dollars ($26,425,000) million issuance
9-15	are projected to be forty two million nine hundred thousand dollars ($42,900,000) million. This
9-16	assumes an average coupon of five percent (5.0%). The lease payments would be financed within
9-17	the Department of Administration from general revenue appropriations and any other sources
9-18	available to the agencies occupying the court;
9-19	NOW, THEREFORE, BE IT RESOLVED,
9-20	THAT, a new RITT facility is critical to ensure that justice is administered in a safe and
9-21	efficient manner.
9-22	THAT, this general assembly hereby approves financing in an amount not to exceed
9-23	twenty-six million four hundred twenty-five thousand dollars ($26,425,000) for the provision of a
9-24	new RITT facility.
9-25	BE IT FURTHER RESOLVED,
9-26	THAT, this Joint Resolution shall take effect immediately upon its passage by this
9-27	general assembly with funding to be included in the FY 2005 Appropriations Act.
9-28	SECTION 6. WHEREAS, The Rhode Island Economic Development Corporation (the
9-29	“Economic Development Corporation”) is a public instrumentality of the State of Rhode Island
9-30	(the “State”) created by the general assembly pursuant to R.I. General Laws section 42-64-1 et
9-31	seq. (as enacted, reenacted and amended, the “Act”); and
9-32	WHEREAS, It is the policy of the state to retain existing industries and to induce,
9-33	encourage and attract new industries through the acquisition, construction, reconstruction and
9-34	rehabilitation of industrial, manufacturing, recreational, and commercial facilities, as well as
10-1	transportation, residential, environmental, utility, public service, institutional and civic and
10-2	community facilities, and to develop sites for such facilities; and
10-3	WHEREAS, The Act provides that the Economic Development Corporation shall have
10-4	the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and
10-5	otherwise deal in and with, real or personal property, or any interest therein, wherever situated;
10-6	and
10-7	WHEREAS, The Economic Development Corporation proposes to enter into a loan
10-8	agreement or other financing agreement with Amgen pursuant to which Amgen will be obligated
10-9	to make payments in an amount necessary to pay debt service related to not more than six million
10-10	six hundred thousand dollars ($6,600,000) bonds; and
10-11	WHEREAS, The Economic Development Corporation proposes to enter into a loan
10-12	agreement or other financing agreement with the town of Coventry pursuant to which the town of
10-13	Coventry will be obligated to make payments in the amount necessary to pay debt service related
10-14	to not more than three million four hundred thousand dollars ($3,400,000) bonds; and
10-15	WHEREAS, The Economic Development Corporation, through the use of the capital
10-16	reserve fund mechanism under the act, will pay debt service on the bonds to the extent amounts
10-17	received from Amgen and the town of Coventry are insufficient to pay debt service on the bonds.
10-18	Therefore, the maximum fiscal year obligation the of the Economic Development Corporation
10-19	and the State of Rhode Island is the total debt service which is approximately eight hundred
10-20	twenty five thousand dollars ($825,000); and
10-21	WHEREAS, In the event that not all of the bond proceeds are used to carry out the
10-22	specified project, the Economic Development Corporation will use any remaining funds to pay
10-23	debt service on the bonds;
10-24	NOW, THEREFORE, BE IT RESOLVED,
10-25	THAT, this general assembly hereby approves the Economic Development Corporation’s
10-26	issuance of not more than ten million dollars ($10,000,000) bonds and the issue of the capital
10-27	reserve fund mechanism for the purposes outlined herein;
10-28	THAT, the bonds will be special obligations of the Economic Development Corporation
10-29	payable from funds received by the Economic Development Corporation under the loan
10-30	agreements and the capital reserve fund. The Economic Development Corporation’s and the
10-31	state’s maximum liability will be the total debt service on the bonds, estimated to be eight
10-32	hundred twenty five thousand dollars ($825,000) per year or sixteen million five hundred
10-33	thousand dollars ($16,500,000) in the aggregate based on level debt service, an average interest
10-34	rate of five percent(5.00%) and a twenty (20) year maturity;
11-1	THAT, the bonds will not constitute indebtedness of the state or any of its subdivisions or
11-2	a debt for which the full faith and credit of the state or any of its subdivisions is pledged except to
11-3	the extent that the state funds any deficiency in the capital reserve fund in amount not to exceed
11-4	eight hundred twenty five thousand dollars ($825,000) per year subject to annual budget
11-5	appropriations; and
11-6	BE IT FURTHER RESOLVED,
11-7	THAT, this Joint Resolution shall take effect immediately upon its passage by this
11-8	general assembly, provided that the delivery of the bonds shall be not later than one year from
11-9	the date of such passage.
11-10	SECTION 7. WHEREAS, The Rhode Island Economic Development Corporation is a
11-11	public instrumentality of the State of Rhode Island (the “State”), created by the general assembly
11-12	pursuant to Rhode Island General Laws section 42-64-1 et seq. (as enacted, reenacted and
11-13	amended, the (“Act”); and
11-14	WHEREAS, The Act declares, in part, that new industrial, manufacturing, recreational,
11-15	and commercial facilities are required to attract and house new industries and thereby reduce the
11-16	hazards of unemployment; and that unaided efforts of private enterprises have not met and cannot
11-17	meet the needs of providing those facilities due to problems encountered in assembling suitable
11-18	building sites, lack of adequate public service, unavailability of private capital for development,
11-19	and the inability of private enterprise alone to plan, finance, and coordinate industrial,
11-20	recreational, and commercial development; and
11-21	WHEREAS, The Act further declares it to be the public policy of the state to furnish
11-22	proper and adequate airport facilities within the state and to encourage the integration of these
11-23	facilities so far as practicable; and
11-24	WHEREAS, In furtherance of these goals, it is the policy of the state to retain existing
11-25	industries and to induce, encourage and attract new industries through the acquisition,
11-26	construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and
11-27	commercial facilities, as well as transportation, residential, environmental, utility, public service,
11-28	institutional and civic and community facilities, and to develop sites for such facilities; and
11-29	WHEREAS, The Act has empowered the Rhode Island Economic Development
11-30	Corporation to establish subsidiary corporations to exercise its powers and functions, or any of
11-31	them, and, pursuant to such power, the Rhode Island Economic Development Corporation has
11-32	established the Rhode Island Airport Corporation to plan, develop, construct, finance, manage,
11-33	and operate airport facilities in the state; and
11-34	WHEREAS, The Act provides that the Rhode Island Airport Corporation shall have the
12-1	power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and
12-2	otherwise deal in and with, real or personal property, or any interest therein, wherever situated;
12-3	and
12-4	WHEREAS, The Act also provides that the Rhode Island Airport Corporation shall have
12-5	the power to sell, mortgage, lease, exchange, transfer or otherwise dispose of or encumber any
12-6	project, (or in the case of a sale, to accept a purchase money mortgage in connection therewith) or
12-7	to grant options for any such purposes with respect to any real or personal property or interest
12-8	therein, all of the foregoing for such consideration as the Rhode Island Airport Corporation shall
12-9	determine. Any lease by the Rhode Island Airport Corporation to another party may be for such
12-10	part of the Rhode Island Airport Corporation’s property, real or personal, for such period, upon
12-11	such terms or conditions, with or without an option on the part of the lessee to purchase any or all
12-12	of the leased property for such consideration, at or after the retirement of all indebtedness
12-13	incurred by the Rhode Island Airport Corporation on account thereof, as the Rhode Island Airport
12-14	Corporation shall determine; and
12-15	WHEREAS, The Act authorizes the Rhode Island Economic Development Corporation
12-16	to borrow money and issue bonds for any of its corporate purposes; and
12-17	WHEREAS, Pursuant to Rhode Island General Laws sections 35-18-3 and 35-18-4, the
12-18	Rhode Island Economic Development Corporation has requested the approval of the general
12-19	assembly of the Rhode Island Economic Development Corporation’s issuance of airport revenue
12-20	bonds (the “Bonds”) for the purpose of providing funds to the Rhode Island Airport Corporation
12-21	for financing the acquisition, installation and construction of an explosive detection system and
12-22	the construction of additional administrative space at T.F. Green Airport (the “2003 Airport
12-23	Project”) funding capitalized interest, costs of issuing the bonds and related costs, and the
12-24	establishment reserves for the project and the bonds, including a debt service reserve fund; and
12-25	WHEREAS, The financing of the 2003 Airport Project will be accomplished through one
12-26	(1) or more loan agreements having the Rhode Island Airport Corporation as borrower, such
12-27	agreement or agreements to require that the Rhode Island Airport Corporation make loan
12-28	payments in an amount equal to the debt service on the bonds.
12-29	RESOLVED, The general assembly hereby approves the Rhode Island Economic
12-30	Development Corporation’s issuance of the bonds. The bonds will be special obligations of the
12-31	Rhode Island Economic Development Corporation payable exclusively from loan repayments
12-32	under a loan agreement with the Rhode Island Airport Corporation and from bond proceeds,
12-33	funds, accounts, and properties and the proceeds thereof pledged therefor, and thus the Rhode
12-34	Island Economic Development Corporation’s maximum liability will be limited to loan
13-1	repayments received under the loan agreement and the aggregate amount of such other funds,
13-2	accounts, properties, and proceeds.
13-3	RESOLVED, That the total amount of debt approved to be issued in the aggregate shall
13-4	be limited to not more than fifty-five million one hundred fifty thousand dollars ($55,150,000).
13-5	Total debt service on the bonds is not expected to exceed four million five hundred thousand
13-6	dollars ($4,500,000) annually and one hundred seven million dollars ($107,000,000) in the
13-7	aggregate based on an average interest rate of five and three quarters percent (5.75%) and a
13-8	twenty-five (25)-year maturity.
13-9	RESOLVED, The General Assembly hereby approves the Rhode Island Airport
13-10	Corporation’s entering into the loan agreements described above. Payments under the loan
13-11	agreements shall be derived exclusively from project revenues and such other proceeds, funds,
13-12	accounts, projects and the proceeds thereof as the Rhode Island Airport Corporation may pledge
13-13	therefor.
13-14	RESOLVED, None of the bonds or the loan agreements shall constitute indebtedness of
13-15	the state or a debt for which the full faith and credit of the state is pledged or a moral obligation
13-16	thereof.
13-17	RESOLVED, That this resolution shall apply to bonds issued within one year of the date
13-18	of passage of this resolution.
13-19	SECTION 8. WHEREAS, The Rhode Island Department of Transportation’s (“RIDOT”)
13-20	detailed review of the State of Rhode Island’s infrastructure has determined that five (5) major
13-21	transportation projects must be constructed by the year 2010 in order to preserve and maintain the
13-22	public safety and continued economic success and viability of the State of Rhode Island, its ports
13-23	and infrastructure; and
13-24	WHEREAS, RIDOT has explored various options to finance the costs of the five (5)
13-25	major transportation projects and determined that the federal-aid financing program authorized in
13-26	federal law by Section 311 of the National Highway System Designation Act of 1995 and
13-27	commonly referred to as the Grant Anticipation Revenue Vehicle Program (“GARVEE
13-28	Program”) represents the best financing mechanism for the State of Rhode Island inasmuch as the
13-29	GARVEE Program will accelerate the funding and construction of the five (5) major
13-30	transportation projects; and
13-31	WHEREAS, The GARVEE Program allows a state to issue bonds (“GARVEE Bonds”)
13-32	or other debt instruments backed by future appropriations for federal-aid transportation projects
13-33	whereby such amounts are used to cover an assortment of bond-related costs, including principal
13-34	and interest payments, issuance costs, insurance, and other costs incidental to a financing; and
14-1	WHEREAS, Among other advantages, GARVEE Bonds may be issued as special
14-2	revenue bonds without a full faith and credit pledge by the State of Rhode Island; and
14-3	WHEREAS, RIDOT has determined that the GARVEE Program should be utilized to
14-4	complete the following five (5) major transportation projects:
14-5	(1) Sakonnet River Bridge: The current Sakonnet River Bridge (the “Current Sakonnet
14-6	Bridge”), which currently serves the citizens, businesses, marine trades and port facilities of
14-7	Aquidneck Island, is dilapidated and in dire need of repair, and based on studies and analysis of
14-8	RIDOT, a new Sakonnet River Bridge (the “New Sakonnet Bridge”) should be constructed as
14-9	opposed to reconstruction of the Current Sakonnet Bridge; and provided further that RIDOT has
14-10	determined such construction of the New Sakonnet Bridge is necessary for the continued
14-11	economic success and viability of the citizens, businesses, transportation and port facilities of
14-12	Aquidneck Island and otherwise in the best interests of the State of Rhode Island; and
14-13	(2) Route 195 Relocation: It has been deemed necessary and desirable to relocate
14-14	Interstate Route 195 (“Route 195 Relocation”) in order to better serve the transportation needs of
14-15	the State of Rhode Island including, but not limited to, the continued economic success and
14-16	viability of the citizens, businesses, transportation and port facilities both in the city of
14-17	Providence and elsewhere and is otherwise in the best interest of the State of Rhode Island based
14-18	on studies and analysis of RIDOT; and
14-19	(3) Washington Bridge: The current Washington Bridge (the “Current Washington
14-20	Bridge”), which currently serves the citizens, businesses and port facilities of the State of Rhode
14-21	Island both in the city of Providence and elsewhere, is dilapidated and in dire need of repair and
14-22	based on studies and analysis of RIDOT a new Washington Bridge (the “New Washington
14-23	Bridge”) as opposed to reconstruction of the Current Washington Bridge is necessary for the
14-24	continued economic success and viability of the citizens, businesses, transportation and port
14-25	facilities of the city of Providence and elsewhere and otherwise in the best interest of the State of
14-26	Rhode Island; and
14-27	(4) Freight Rail Improvement Project: In order to provide for the continued economic
14-28	success of the citizens of the State of Rhode Island and the viability of transportation systems
14-29	within the State of Rhode Island to move freight by rail due to conflicts with passenger rails and
14-30	antiquated freight rails, and to link Rhode Island’s ports and various modes of transportation
14-31	within the State of Rhode Island, the (“Freight Rail Improvement Project”) based on studies and
14-32	analysis of RIDOT; and
14-33	(5) 403 Project: In order to provide for the continued transportation needs and the
14-34	continued economic viability and success of the State of Rhode Island and to link Rhode Island’s
15-1	ports and various modes of transportation within the State of Rhode Island, it has been
15-2	determined that the so-called Phase II of the Route 403 Project (“403 Project”) must be
15-3	completed based on studies and analysis of RIDOT; and
15-4	WHEREAS, The development and planning of the New Sakonnet Bridge, Route 195
15-5	Relocation, New Washington Bridge, Freight Rail Improvement Project and 403 Project included
15-6	the participation of RIDOT, municipal and/or town planners, safety officials, engineering
15-7	consultants and other parties necessary in developing a design and construction plan for each
15-8	project and also examined the available options for the completion of each project, and agreed
15-9	that the New Sakonnet Bridge, Route 195 Relocation, New Washington Bridge, Freight Rail
15-10	Improvement Project and 403 Project were each necessary to adequately serve the citizens,
15-11	businesses and port facilities of the State of Rhode Island and otherwise in the best interests of the
15-12	State of Rhode Island; and
15-13	WHEREAS, It is anticipated and estimated that the State of Rhode Island will receive
15-14	one hundred fifty two million dollars ($152,000,000) in grant funds from the Federal Highway
15-15	Administration (“FHWA”), with the assistance of RIDOT in support of the implementation of the
15-16	New Sakonnet Bridge; and
15-17	WHEREAS, It is anticipated that the State of Rhode Island will receive four hundred
15-18	twenty million dollars ($420,000,000) in grant funds from the FHWA, with the assistance of
15-19	RIDOT in support of the Route 195 Relocation; and
15-20	WHEREAS, It is anticipated that the State of Rhode Island will receive one hundred
15-21	thirty-two million eight hundred thousand dollars ($132,800,000) in grant funds from the FHWA,
15-22	with the assistance of RIDOT in support of the implementation of the plan to construct a new
15-23	Washington Bridge; and
15-24	WHEREAS, It is anticipated that the State of Rhode Island will receive fifty-one million
15-25	two hundred thousand dollars ($51,200,000) in grant funds from the FHWA, with the assistance
15-26	of RIDOT in support of the implementation of the plan to complete the Freight Rail Improvement
15-27	Project; and
15-28	WHEREAS, It is anticipated that the State of Rhode Island will receive one hundred
15-29	twenty-nine million two hundred thousand dollars ($129,200,000) in grant funds from the
15-30	FHWA, with the assistance of RIDOT in support of the implementation of the plan to complete
15-31	Phase II of the Route 403 Project; and
15-32	WHEREAS, In connection with the issuance of GARVEE Bonds, the State of Rhode
15-33	Island, acting by and through RIDOT, may elect to receive in lieu of certain monies which would
15-34	otherwise have been received as reimbursement from FHWA for project costs for the five (5)
16-1	projects referenced herein, debt service payments to repay indebtedness in the form of bonds or
16-2	notes issued to finance the costs of the construction and financing of the five (5) projects
16-3	referenced above; and
16-4	WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General
16-5	Laws section 35-18-1, et seq.) requires the General Assembly to provide its consent to the
16-6	issuance of certain obligations for essential public facilities of the type referenced herein; and
16-7	WHEREAS, The design, construction, equipping and completion of these improvements
16-8	will be financed in whole or in part either through revenue bonds issued pursuant to the GARVEE
16-9	Program by the State of Rhode Island or through revenue bonds issued pursuant to the GARVEE
16-10	Program by the Rhode Island Economic Development Corporation (the "RIEDC") or through
16-11	revenue bonds issued pursuant to the GARVEE Program by another agency, instrumentality or
16-12	quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise
16-13	authorized and empowered pursuant to law to issue bonds of the type referenced herein for the
16-14	types of projects enumerated herein, with either issuance having an expected term of twenty (20)
16-15	years, and annual revenues for the operation and maintenance of the New Sakonnet Bridge, Route
16-16	195 Relocation, New Washington Bridge, Freight Rail Improvement Project, and 403 Project to
16-17	be included in the annual operating budget of RIDOT; and
16-18	WHEREAS, The capital costs and anticipated bond issuance amounts associated with
16-19	these projects are estimated to be:
16-20	(1) For the New Sakonnet Bridge: (a) a total capital cost of one hundred seventeen
16-21	million eight hundred thousand dollars ($117,800,000); (b) the total debt issuance of GARVEE
16-22	and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs,
16-23	costs of issuance or insurance or credit enhancement would be an amount not to exceed one
16-24	hundred twenty six million two hundred forty thousand dollars ($126,240,000); (c) with respect
16-25	to the total debt issuance of one hundred twenty six million two hundred forty thousand dollars
16-26	($126,240,000) referenced in subsection (b) above, an amount not to exceed twenty five million
16-27	two hundred forty eight thousand dollars ($25,248,000) of bonds would be repaid by the State of
16-28	Rhode Island with other than FHWA funds (the "State Match Bonds"); (d) total debt service
16-29	payments on the State Match Bonds over an expected 20 year period on the twenty five million
16-30	two hundred forty eight thousand dollars ($25,248,000) issuance are projected to be thirty seven
16-31	million four hundred fifty eight thousand dollars ($37,458,000), assuming an average coupon rate
16-32	of 5.1%; and (e) the debt service payments on the State Match Bonds would be supported from
16-33	the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all bonds of one
16-34	hundred ninety million one hundred fifty-five thousand four hundred twenty dollars
17-1	($190,155,420); and
17-2	(2) For the Route 195 Relocation: (a) a total capital cost of three hundred twenty five
17-3	million dollars ($325,000,000); (b) the total debt issuance of GARVEE and/or other than
17-4	GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance
17-5	or insurance or credit enhancement would be an amount not to exceed three hundred forty eight
17-6	million two hundred eighty five thousand dollars ($348,285,000); (c) with respect to the total debt
17-7	issuance of $348,285,000 referenced in subsection (b) above, an amount not to exceed sixty nine
17-8	million six hundred fifty seven thousand dollars ($69,657,000) of bonds would be State Match
17-9	Bonds; (d) total debt service payments on the State Match Bonds over an expected twenty (20)
17-10	year period on the sixty nine million six hundred fifty seven thousand dollars ($69,657,000)
17-11	issuance are projected to be one hundred three million three hundred forty four thousand dollars
17-12	($103,344,000), assuming an average coupon rate of 5.1%; and (e) the debt service payments on
17-13	the State Match Bonds would be supported from the Motor Fuel Tax Allocation as hereinafter
17-14	defined; and total debt service on all bonds of five hundred twenty-four million six hundred
17-15	twenty-two thousand three hundred twenty dollars ($524, 622,320); and
17-16	(3) For the New Washington Bridge: (a) a total capital cost of $80,000,000; (b) the total
17-17	debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the
17-18	capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an
17-19	amount not to exceed $85,430,000; and (c) no State Match Bonds will be issued in connection
17-20	with the New Washington Bridge as all costs related to the construction and financing of this
17-21	project will be covered by the FHWA funds due the State of Rhode Island; and total debt service
17-22	on all bonds of one hundred thirty-two million eight hundred thousand dollars ($132,800,000);
17-23	and
17-24	(4) For the Freight Rail Improvement Project: (a) a total capital cost of $37,700,000; (b)
17-25	the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment
17-26	of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would
17-27	be an amount not to exceed forty two million five hundred and five thousand dollars
17-28	($42,505,000); (c) with respect to the total debt issuance of forty two million five hundred and
17-29	five thousand dollars ($42,505,000) referenced in subsection (b) above, an amount not to exceed
17-30	eight million five hundred thousand dollars ($8,500,000) of bonds would be State Match Bonds;
17-31	(d) total debt service payments on the State Match Bonds over an expected twenty (20) year
17-32	period on the eight million five hundred thousand dollars ($8,500,000) issuance are projected to
17-33	be twelve million six hundred and eight thousand dollars ($12,608,000), assuming an average
17-34	coupon rate of 5.1%; and (e) the debt service payments on the State Match Bonds would be
18-1	supported from the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all
18-2	bonds of sixty-four million dollars ($64,000,000); and
18-3	(5) For the 403 Project: (a) a total capital cost of one hundred million dollars
18-4	($100,000,000); (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds
18-5	associated with payment of the capital costs, financing costs, costs of issuance or insurance or
18-6	credit enhancement would be an amount not to exceed one hundred seven million one hundred
18-7	sixty five thousand dollars ($107,165,000); (c) with respect to the total debt issuance of one
18-8	hundred seven million one hundred sixty five thousand dollars ($107,165,000) referenced in
18-9	subsection (b) above, an amount not to exceed twenty one million four hundred thirty three
18-10	thousand dollars ($21,433,000) of bonds would be State Match Bonds; (d) total debt service
18-11	payments on the State Match Bonds over an expected 20 year period on the $21,433,000 issuance
18-12	are projected to be $31,798,000, assuming an average coupon rate of 5.1%; and (e) the debt
18-13	service payments on the State Match Bonds would be supported from the Motor Fuel Tax
18-14	Allocation as hereinafter defined; and total debt service on all bonds of one hundred sixty-one
18-15	million four hundred twenty-two thousand two hundred sixty dollars ($161,422,260); now,
18-16	therefore be it
18-17	RESOLVED AND ENACTED, That the New Sakonnet Bridge, Route 195 Relocation,
18-18	New Washington Bridge, Freight Rail Improvement Project and 403 Project are each essential
18-19	public facilities and critical to ensure the economic viability of the citizens, businesses,
18-20	transportation, marine trades and port facilities of the State of Rhode Island and otherwise in the
18-21	best interests of the State of Rhode Island, and that this General Assembly hereby approves the
18-22	following financing:
18-23	(1) For the New Sakonnet Bridge: the issuance of an amount not to exceed one hundred
18-24	twenty six million two hundred forty thousand dollars ($126,240,000) in GARVEE Bonds, the
18-25	repayment of which shall be derived from and supported by FHWA funds due the State of Rhode
18-26	Island and an amount not to exceed twenty five million two hundred forty eight thousand dollars
18-27	($25,248,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a
18-28	subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the
18-29	State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law
18-30	to issue bonds of the type referenced herein for the types of projects enumerated herein and to
18-31	incur and pay debt service payments for such State Match Bonds in an amount not to exceed
18-32	thirty seven million four hundred fifty eight thousand dollars ($37,458,000) and total debt service
18-33	on all bonds of one hundred ninety million one hundred fifty-five thousand four hundred twenty
18-34	dollars ($190,155,420) as specified in (1) above for bonds issued for the New Sakonnet Bridge
19-1	such debt service payments to be made from the Motor Fuel Tax Allocation, as hereinafter
19-2	defined, or such other revenue source as the Rhode Island General Assembly shall designate from
19-3	time to time for the construction, design, maintenance, completion, finance costs, including, but
19-4	not limited to, costs of issuance, credit enhancement, legal counsel and underwriter fees and
19-5	expenses and other costs associated with the New Sakonnet Bridge;
19-6	(2) For the Route 195 Relocation: the issuance of an amount not to exceed three hundred
19-7	forty eight million two hundred eighty five thousand dollars ($348,285,000) in GARVEE Bonds,
19-8	the repayment of which shall be derived from and supported by FHWA funds due the State of
19-9	Rhode Island and an amount not to exceed sixty nine million six hundred fifty seven thousand
19-10	dollars ($69,657,000) in State Match Bonds to be issued by the State of Rhode Island or the
19-11	RIEDC or a subsidiary thereof or other agency, instrumentality or quasi-public corporation
19-12	established by the State of Rhode Island now or hereafter and otherwise authorized and
19-13	empowered pursuant to law to issue bonds of the type referenced herein for the types of projects
19-14	enumerated herein and to incur and pay debt service payments for such State Match Bonds in an
19-15	amount not to exceed one hundred three million three hundred forty-four thousand dollars
19-16	($103,344,000) and total debt service on all bonds of five hundred twenty-four million six
19-17	hundred twenty–two thousand three hundred twenty dollars ($524,622,320) as specified in (2)
19-18	above for bonds issued for the Route 195 Relocation such debt service payments to be made from
19-19	the Motor Fuel Tax Allocation, as hereinafter defined, or such other revenue source as the Rhode
19-20	Island General Assembly shall designate from time to time, for the construction, design,
19-21	maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit
19-22	enhancement, legal counsel and underwriter fees and expenses and other costs associated with the
19-23	Route 195 Relocation;
19-24	(3) For the New Washington Bridge: the issuance of an amount not to exceed
19-25	$85,430,000 in GARVEE Bonds, the repayment of which shall be wholly derived from and
19-26	supported by FHWA funds due the State of Rhode Island; and total debt service on all bonds of
19-27	one hundred thirty-two million eight hundred thousand dollars ($132,800,000);
19-28	(4) For the Freight Rail Improvement Project: the issuance of an amount not to exceed
19-29	forty-two million five hundred five thousand dollars ($42,505,000) in GARVEE Bonds, the
19-30	repayment of which shall be derived from and supported by FHWA funds due the State of Rhode
19-31	Island and an amount not to exceed eight million five hundred thousand dollars ($8,500,000) in
19-32	State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a subsidiary thereof
19-33	or other agency, instrumentality or quasi-public corporation established by the State of Rhode
19-34	Island now or hereafter and otherwise authorized and empowered pursuant to law to issue bonds
20-1	of the type referenced herein for the types of projects enumerated herein and to incur and pay
20-2	debt service payments for such State Match Bonds in an amount not to exceed twelve million six
20-3	hundred eight thousand dollars ($12,608,000) and total debt service on all bonds of sixty-four
20-4	million dollars ($64,000,000) as specified in (4) above for bonds issued for the Freight Rail
20-5	Improvement Project such debt service payments to be made from the Motor Fuel Tax
20-6	Allocation, as hereinafter defined, or such other revenue source as the Rhode Island General
20-7	Assembly shall designate from time to time for the construction, design, maintenance,
20-8	completion, finance costs, including, but not limited to, costs of issuance, credit enhancement,
20-9	legal counsel and underwriter fees and expenses and other costs associated with the Freight Rail
20-10	Improvement Project; and
20-11	(5) For the 403 Project: the issuance of an amount not to exceed one hundred seven
20-12	million one hundred sixty five thousand dollars ($107,165,000) in GARVEE Bonds, the
20-13	repayment of which shall be derived from and supported by FHWA funds due the State of Rhode
20-14	Island and an amount not to exceed twenty one million four hundred thirty three thousand dollars
20-15	($21,433,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a
20-16	subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the
20-17	State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law
20-18	to issue bonds of the type referenced herein for the types of projects enumerated herein and to
20-19	incur and pay debt service payments for such State Match Bonds in an amount not to exceed
20-20	thirty one million seven hundred ninety eight thousand eight hundred dollars ($31,798,800) and
20-21	total debt service on all bonds of one hundred sixty-one million four hundred twenty-two
20-22	thousand two hundred sixty dollars ($161,422,260) as specified in (5) above for bonds issued for
20-23	the 403 Project such debt service payments to be made from the Motor Fuel Tax Allocation, as
20-24	hereinafter defined, or such other revenue source as the Rhode Island General Assembly shall
20-25	designate from time to time for the construction, design, maintenance, completion, finance costs,
20-26	including, but not limited to, costs of issuance, credit enhancement, legal counsel and underwriter
20-27	fees and expenses and other costs associated with the 403 Project; and
20-28	Further, that the Governor of the State of Rhode Island or the Director of the Rhode
20-29	Island Department of Transportation or the Director of the Rhode Island Department of
20-30	Administration or the Executive Director of the Rhode Island Economic Development
20-31	Corporation each be and each hereafter are, acting singly, authorized and empowered by the
20-32	Rhode Island General Assembly to enter into a financing lease, guarantee, loan and trust
20-33	agreement, indenture or other obligations or contracts or agreements and to take such other
20-34	actions as such official shall deem necessary or appropriate in order to issue or facilitate the
21-1	issuance of the GARVEE Bonds, and/or other bonds referenced in (1) through (5) above and to
21-2	provide the Rhode Island Economic Development Corporation or any subsidiary thereof or other
21-3	instrumentality, agency or quasi-public corporation otherwise authorized and empowered to issue
21-4	the bonds specified in this Joint Resolution and Act for the projects specified above with the
21-5	necessary debt service payments up to the amounts specified in (1) through (5) above and the
21-6	necessary security for such bonds consistent with the provisions of this Joint Resolution and Act,
21-7	including any action to pledge, assign or otherwise transfer the right to receive all or any portion
21-8	of future FHWA appropriations for federal-aid transportation projects or other revenues permitted
21-9	by the laws of the state of Rhode Island to secure or provide for the payment of any such
21-10	GARVEE or other bonds; and
21-11	Further, that any issuance of bonds or notes authorized in the preceding paragraphs (1)
21-12	through (5) may be effectuated in an aggregate principal amount representing the sum of the
21-13	authorized GARVEE Bonds and State Match Bonds in the event that GARVEE Bonds are
21-14	secured by both federal moneys and state revenue sources, and that the Rhode Island General
21-15	Laws be amended as follows:
21-16	SECTION 9. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor
21-17	Fuel Tax" is hereby amended to read as follows:
21-18	31-36-20. Disposition of proceeds. -- (a) (1) Notwithstanding any other provision of law
21-19	to the contrary, all moneys paid into the general treasury under the provisions of this chapter or
21-20	chapter 37 of this title shall be applied to and held in a separate fund and be deposited in any
21-21	depositories that may be selected by the general treasurer to the credit of the fund, which fund
21-22	shall be known as the Intermodal Surface Transportation Fund; provided, that ~~six and one-fourths~~
21-23	~~cents ($0.0625)~~ six and eighty-five hundredths cents ($0.0685) per gallon of the tax imposed and
21-24	accruing for the liability under the provisions of section 31-36-7, less refunds and credits, shall be
21-25	transferred to the Rhode Island public transit authority as provided under section 39-18-21, and
21-26	one cent ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of
21-27	the department of elderly affairs, and the remaining cents per gallon shall be available for general
21-28	revenue as determined by the following schedule:
21-29	(i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for
21-30	general revenue.
21-31	(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for
21-32	general revenue.
21-33	(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general
21-34	revenue.
22-1	(iv) For the fiscal year 2003, two and one-fourth cent (.0225) shall be available for
22-2	general revenue.
22-3	(v) For the fiscal year 2004, and thereafter, ~~two cents ($0.02)~~ one and four-tenths cents
22-4	($.014) shall be available for general revenue.
22-5	(2) All deposits and transfers of funds made by the tax administrator under this section
22-6	including those to the Rhode Island public transit authority, the department of elderly affairs and
22-7	the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the
22-8	funds in question.
22-9	(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of
22-10	Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined
22-11	by the Director of the Rhode Island Department of Transportation, or his or her designee, or at the
22-12	election of the Director of the Rhode Island Department of Transportation, with the approval of
22-13	the Director of the Department of Administration, to an indenture trustee, administrator, or other
22-14	third party fiduciary, in an amount not to exceed two cents ($.02) per gallon of the gas tax
22-15	imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint
22-16	Resolution and Enactment Approving the Financing of Various Department of Transportation
22-17	Projects adopted during the 2003 session of the General Assembly, and approved by the
22-18	Governor.
22-19	(b) Notwithstanding any other provision of law to the contrary, all other funds in the
22-20	fund shall be dedicated to the department of administration, subject to annual appropriation by the
22-21	general assembly. The director of administration shall submit to the general assembly, budget
22-22	office and office of the governor annually an accounting of all amounts deposited in and credited
22-23	to the fund together with a planned budget for proposed expenditures for the succeeding fiscal
22-24	year in compliance with sections 35-3-1 and 35-3-4. On order of the director of transportation, the
22-25	state controller is authorized and directed to draw his or her orders upon the general treasurer for
22-26	the payments of any sum or portion of the sum that may be required from time to time upon
22-27	receipt of properly authenticated vouchers.
22-28	(c) At any time the amount of the fund is insufficient to fund the expenditures of the
22-29	department of administration, not to exceed the amount authorized by the general assembly, the
22-30	general treasurer is authorized, with the approval of the governor and the director of
22-31	administration, in anticipation of the receipts of monies enumerated in section 31-36-20 to
22-32	advance sums to the fund, for the purposes specified in section 31-36-20, any funds of the state
22-33	not specifically held for any particular purpose. However, all the advances made to the fund shall
22-34	be returned to the general fund immediately upon the receipt by the fund of proceeds resulting
23-1	from the receipt of monies to the extent of the advances.
23-2	SECTION 10. Sections 42-64-7 and 42-64-7.1 of the General Laws in Chapter 42-64
23-3	entitled "Rhode Island Economic Development Corporation" are hereby amended to read as
23-4	follows:
23-5	42-64-7. Additional general powers. -- In addition to the powers enumerated in section
23-6	42-64-6, except to the extent inconsistent with any specific provision of this chapter, the
23-7	corporation shall have power:
23-8	(1) To undertake the planning, development, construction, financing, management,
23-9	operation of any project, and all activities in relation thereto.
23-10	(2) (i) To sell, mortgage, lease, exchange, transfer, or otherwise dispose of or encumber
23-11	any port project, (or in the case of a sale, to accept a purchase money mortgage in connection
23-12	with any port project) or to grant options for any purposes with respect to any real or personal
23-13	property or interest in real or personal property, all of the foregoing for consideration as the
23-14	corporation shall determine. Any lease by the corporation to another party may be for any part of
23-15	the corporation's property, real or personal, for any period, upon any terms or conditions, with or
23-16	without an option on the part of the lessee to purchase any or all of the leased property for any
23-17	consideration, at or after the retirement of all indebtedness incurred by the corporation on account
23-18	thereof, as the corporation shall determine.
23-19	(ii) Without limiting the generality of the foregoing, the corporation is expressly
23-20	empowered to lease or sell any part of the real or personal property owned or controlled by the
23-21	corporation to the state, or any department of the state or to any municipality. The provisions of
23-22	this section or of any other laws of this state (other than this chapter) restricting the power of the
23-23	state, its departments or any municipality, to lease or sell property, or requiring or prescribing
23-24	publication of notice of intention to lease or sell, advertising for bids, the terms of contracts of
23-25	lease or sale, that would in any manner interfere with the purpose of this section, which is to
23-26	provide for the mutual cooperation by and between the corporation and the state, its departments
23-27	or any municipality, to the fullest extent possible, are not applicable to leases and sales made
23-28	pursuant to this section.
23-29	(3) To prepare or cause to be prepared plans, specifications, designs, and estimates of
23-30	costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any
23-31	project, and from time to time to modify those plans, specifications, designs, or estimates.
23-32	(4) To manage any project, whether then owned or leased by the corporation, and to
23-33	enter into agreements with the state or any municipality or any agency or their instrumentalities,
23-34	or with any person, firm, partnership, or corporation, either public or private, for the purpose of
24-1	causing any project to be managed.
24-2	(5) To provide advisory, consultative, training, and educational services, technical
24-3	assistance, and advice to any person, firm, partnership, or corporation, whether it be public or
24-4	private, in order to carry out the purposes of this chapter.
24-5	(6) Subject to the provisions of any contract with note holders or bond holders to consent
24-6	to the modification, with respect to rate of interest, time of payments of any installment of
24-7	principal or interest, security or any other term of any mortgage, mortgage loan, mortgage loan
24-8	commitment, contract, or agreement of any kind to which the corporation is a party.
24-9	(7) In connection with any property on which it has made a mortgage loan, to foreclose
24-10	on that property or commence an action to protect or enforce any right conferred upon it by law,
24-11	mortgage, contract, or other agreement and to bid for and purchase the property at any foreclosure
24-12	or any other sale, or to acquire or take possession of the property; and in that event the
24-13	corporation may complete, administer, pay the principal of, or interest on any obligations incurred
24-14	in connection with the property, dispose of, and otherwise deal with the property in a manner as
24-15	may be necessary or desirable to protect the interest of the corporation therein.
24-16	(8) As security for the payment of principal and interest on any bonds or notes or any
24-17	agreements made in connection therewith, to mortgage and pledge any or all of its projects and
24-18	property, whether then owned or thereafter acquired, and to pledge the revenues and receipts from
24-19	all or part thereof, and to assign or pledge the leases, sales contracts or loan agreements or other
24-20	agreements on any portion or all of its projects and property and to assign or pledge the income
24-21	received by virtue of the lease, sales contracts, loan agreements or other agreements.
24-22	(9) To invest any funds of the corporation including funds held in reserve or sinking
24-23	funds, or any moneys not required for immediate use or disbursement at the discretion of the
24-24	corporation, in: (i) obligations of the state or the United States, (ii) obligations of the principal
24-25	and interest of which are guaranteed by the state or the United States, (iii) obligations of agencies
24-26	and instrumentalities of the state or the United States, or (iv) certificates of deposits of banks and
24-27	trust companies or shares of building loan associations organized under the laws of the state or
24-28	doing business in the state or (v) any obligations, securities, and other investments as shall be
24-29	specified in resolutions of the corporation.
24-30	(10) To engage the services of consultants on a contract basis for rendering professional
24-31	and technical assistance and advice, and to employ architects, engineers, attorneys, accountants,
24-32	construction, and financial experts and any other advisors, consultants, and agents as may be
24-33	necessary in his or her judgment, and to fix their compensation.
24-34	(11) To contract for and to accept any gifts or grants or loans or funds or property or
25-1	financial or other assistance in any form from the United States or any agency or instrumentality
25-2	of the United States or from the state or any agency or instrumentality of the state or from any
25-3	other source and to comply, subject to the provisions of this chapter, with the terms and
25-4	conditions of this contract.
25-5	(12) To enter into agreements with any municipality or political subdivision, either
25-6	directly or on behalf of any other party which holds legal title to all or any portion of a project as
25-7	the lessee from the corporation designated pursuant to paragraph (c) of section 42-64-20,
25-8	providing that the corporation or the lessee shall pay annual sums in lieu of taxes to the
25-9	municipality or political subdivision of the state in respect to any real or personal property which
25-10	is owned by the corporation or the lessee and is located in the municipality or political
25-11	subdivision.
25-12	(13) To borrow money and to issue negotiable bonds and notes, and to provide for the
25-13	rights of the holders of these bonds and notes, for the purpose of providing funds to pay all or any
25-14	part of the cost of any port project or for the purpose of refunding any of these bonds issued.
25-15	(14) To construct, acquire, own, repair, develop, operate, maintain, extend, and improve,
25-16	rehabilitate, renovate, furnish, and equip one or more port projects and to pay all or any part of
25-17	the costs of these bonds and notes from the proceeds of bonds of the corporation or from any
25-18	contribution, gift, or donation or other funds made available to the corporation for those purposes.
25-19	(15) To fix, charge and collect rents, fees, tolls, and charges for the use of any port
25-20	project and to alter and investigate rates, and practices of charging, which affect port projects so
25-21	as to increase commerce in the state.
25-22	(16) To prescribe rules and regulations deemed necessary or desirable to carry out the
25-23	purposes of this chapter including rules and regulations to insure maximum use and proper
25-24	operation of port projects.
25-25	(17) To establish penalties for violations of any order, rule, or regulation of the
25-26	corporation, and a method of enforcing these penalties.
25-27	(18) To develop, maintain, and operate foreign trade zones under those terms and
25-28	conditions that may be prescribed by law.
25-29	(19) To impose administrative penalties in accordance with the provisions of section 42-
25-30	64-9.2.
25-31	(20) To make assessments and impose reasonable and just user charges, and to pay for
25-32	those expenses that may be required by law or as may be determined by the corporation to be
25-33	necessary for the maintenance and operation of the sewage treatment facility.
25-34	(21) To establish a sewage pretreatment program, and to require as a condition to the
26-1	grant or reissuance of any approval, license, or permit required under the program that the person
26-2	applying for the approval, license or permit, pay to the corporation a reasonable fee based on the
26-3	cost of reviewing and acting upon the application and based on the costs of implementing the
26-4	program. In addition, where a violation of any of the provisions of this title or any permit, rule,
26-5	regulation, or order issued pursuant to this title have occurred, the violator shall reimburse the
26-6	corporation for the actual costs of implementing and enforcing the terms of the permit, rule,
26-7	regulation or order as a condition to the grant or reissuance of any approval.
26-8	(22) To assist urban communities revitalize their local economics.
26-9	(23) To provide assistance to minority businesses and to neighborhoods where there is
26-10	insufficient economic and business investment.
26-11	(24) To support and assist entrepreneurial activity by minorities and by low and
26-12	moderate income persons.
26-13	(25) To issue bonds and notes of the type and for those projects and for those purposes
26-14	specified in the Joint Resolution and Act of the General Assembly adopted by the Rhode Island
26-15	House of Representatives and the Rhode Island Senate; and to make such determinations, enter
26-16	into such agreements, to deliver such instruments and to take such other actions as it shall deem
26-17	necessary or desirable to effectuate the financing of such projects.
26-18	42-64-7.1. Subsidiaries. -- (a) (1) The parent corporation shall have the right to exercise
26-19	and perform its powers and functions, or any of them, through one or more subsidiary
26-20	corporations whose creation shall be approved and authorized by the general assembly.
26-21	(2) Express approval and authorization of the general assembly shall be deemed to have
26-22	been given for all legal purposes on July 1, 1995 for the creation and lawful management of a
26-23	subsidiary corporation created for the management of the Quonset Point/Davisville Industrial
26-24	Park, that subsidiary corporation being managed by a board of directors, the members of which
26-25	shall be constituted as follows: (i) two (2) members who shall be appointed by the town council
26-26	of the town of North Kingstown; (ii) two (2) members who shall be residents of the town of North
26-27	Kingstown appointed by the governor; (iii) four (4) members who shall be appointed by the
26-28	governor; (iv) the chairperson, who shall be the executive director of the economic development
26-29	corporation; and (v) non-voting members, who shall be the members of the general assembly
26-30	whose districts are comprised in any part by areas located within the town of North Kingstown.
26-31	Upon receipt of approval and authorization from the general assembly, the parent corporation by
26-32	resolution of the board of directors may direct any of its directors, officers, or employees to create
26-33	subsidiary corporations pursuant to chapter 1.1 or 6 of title 7 or in the manner described in
26-34	subsection (b); provided, that the parent corporation shall not have any power or authority to
27-1	create, empower or otherwise establish any corporation, subsidiary corporation, corporate body or
27-2	any form of partnership or any other separate entity, without the express approval and
27-3	authorization of the general assembly.
27-4	(b) As used in this section, "subsidiary public corporation" means a corporation created
27-5	pursuant to the provisions of this section. The person or persons directed by the resolution
27-6	referred to in subsection (a) shall prepare articles of incorporation setting forth: (1) the name of
27-7	the subsidiary public corporation; (2) the period of duration, which may be perpetual; (3) the
27-8	purpose or purposes for which the subsidiary public corporation is organized which shall not be
27-9	more extensive than the purposes of the corporation set forth in section 42-64-5; (4) the number
27-10	of directors (which may, but need not be, more than one) constituting the initial board of directors
27-11	and their names and business or residence addresses; (5) the name and business or residence
27-12	address of the person preparing the articles of incorporation; (6) the date when corporate
27-13	existence shall begin (which shall not be earlier than the filing of the articles of incorporation
27-14	with the secretary of state as provided in this subsection); (7) any provision, not inconsistent with
27-15	law, which the board of directors elect to set forth in the articles of incorporation for the
27-16	regulation of the internal affairs of the subsidiary public corporation; and (8) a reference to the
27-17	form of authorization and approval by the general assembly and to the resolution of the board of
27-18	directors authorizing the preparation of the articles of incorporation. Duplicate originals of the
27-19	articles of incorporation shall be delivered to the secretary of state. If the secretary of state finds
27-20	that the articles of incorporation conform to the provisions of this subsection, the secretary shall
27-21	endorse on each of the duplicate originals the word "Filed," and the month, day and year of the
27-22	filing; file one of the duplicate originals in his or her office; and a certificate of incorporation to
27-23	which the secretary shall affix the other duplicate original. No filing fees shall be payable upon
27-24	the filing of articles of incorporation. Upon the issuance of the certificate of incorporation or upon
27-25	a later date specified in the articles of incorporation, the corporate existence shall begin and the
27-26	certificate of incorporation shall be conclusive evidence that all conditions precedent required to
27-27	be performed have been complied with and that the subsidiary public corporation has been duly
27-28	and validly incorporated under the provisions hereof. The parent corporation may transfer to any
27-29	subsidiary public corporation any moneys, real, personal, or mixed property or any project in
27-30	order to carry out the purposes of this chapter. Each subsidiary public corporation shall have all
27-31	the powers, privileges, rights, immunities, tax exemptions, and other exemptions of the parent
27-32	corporation except to the extent that the articles of incorporation of the subsidiary public
27-33	corporation shall contain an express limitation and except that the subsidiary public corporation
27-34	shall not have the condemnation power contained in section 42-64-9, nor shall it have the powers
28-1	contained in, or otherwise be subject to, the provisions of section 42-64-12 and section 42-64-
28-2	13(a), nor shall it have the power to create, empower or otherwise establish any corporation,
28-3	subsidiary corporation, corporate body, any form of partnership, or any other separate entity,
28-4	without the express approval and authorization of the general assembly.
28-5	(c) Any subsidiary corporation shall not be subject to the provisions of section 42-64-
28-6	8(a), (c), and (d), except as otherwise provided in the articles of incorporation of the subsidiary
28-7	corporation.
28-8	(d) The corporation, as the parent corporation of the Rhode Island Airport Corporation,
28-9	shall not be liable for the debts or obligations or for any actions or inactions of the Rhode Island
28-10	Airport Corporation, unless the corporation expressly agrees otherwise in writing.
28-11	(e) The parent corporation is hereby authorized and empowered to create a subsidiary
28-12	corporation for the expressed purpose to issue bonds and notes of the type and for those projects
28-13	and purposes specified in the Joint Resolution and Act of the General Assembly adopted by the
28-14	Rhode Island House of Representatives and the Rhode Island Senate.
28-15	and be it further
28-16	RESOLVED, That any GARVEE Bonds or notes or other bonds or notes issued pursuant
28-17	to this Joint Resolution and Act shall not constitute “state debt” within the meaning of Article 6,
28-18	Section 16 of the Rhode Island Constitution and shall be the obligations of only the issuer of such
28-19	obligations; and be it further
28-20	RESOLVED, That this Joint Resolution and Act shall take effect immediately upon its passage
28-21	by the General Assembly.