2021 -- S 0361

========

LC001064

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

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

     Date Introduced: February 25, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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

following proposition:

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

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

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

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

accordance with the provisions of said act?

     Funding

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

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

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

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

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

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

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

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

     Project

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

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

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

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

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

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

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

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

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

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

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

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

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

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

infrastructure.

     (4) Municipal parks $250,000,000

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC001064 - Page 2 of 7

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

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

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

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

be deemed to apply to "refunding bonds."

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

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

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

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

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

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

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

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

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

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

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

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

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

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

of the governor shall be endorsed on each bond.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC001064 - Page 3 of 7

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

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

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

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

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

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

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

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

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

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

"refunding notes" when used in this act.

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

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

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

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

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

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

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

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

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

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

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

but not limited to, the following authority:

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

necessary or advantageous to accomplish the purposes of this act;

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

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

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

hereof;

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

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

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

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

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

LC001064 - Page 4 of 7

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

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

authorized in Section 1 hereof.

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

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

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

best interests of the state.

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

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

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

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

for any reason have ceased to hold office.

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

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

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

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

shall become due.

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

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

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

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

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

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

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

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

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

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

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

such bonds or notes from federal income taxation.

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

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

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

appropriated.

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

LC001064 - Page 5 of 7

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

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

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

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

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

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

advances.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

thereunder.

========

LC001064

========

LC001064 - Page 6 of 7

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

***

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

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

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

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

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

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

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

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

========

LC001064

========

LC001064 - Page 7 of 7