2024 -- S 2547

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LC005207

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2024 BOND REFERENDA

     Introduced By: Senators Kallman, Lawson, Mack, and Gu

     Date Introduced: March 01, 2024

     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

2024, 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 2024 session,

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

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

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

     Project

     (1) Transit Forward RI 2040 $100,000,000

     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 one hundred million

dollars ($100,000,000), to provide direct funding for a statewide transit system by providing

improvement to existing services, expansion of services to new areas, development of high capacity

transit, improvement of access to transit and adoption of new technologies and methods to make

service easier to use.

     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 the project provided for in section 1 hereof with the designations "approve" or "reject" provided

next to the description of the project to enable voters to approve or reject the proposition. The

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

     SECTION 3. Approval of project by people. –

     If a majority of the people voting on the proposition in section 1 hereof shall vote to

approve the 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 the project 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 the

project approved by the people and designated as "capital development loan of 2024 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 the project 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 a designated time or times at a 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 by 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 2024 capital development program. –

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     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 2024 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 2024 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 capital development bonds. While such 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 the project 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 the project so approved.

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     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 the project 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 the project 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 2024 capital

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 the project

authorized in section 1 hereof. With respect to the bonds and temporary notes described in section

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

     Question 1, relating to bonds in the amount of one hundred million dollars ($100,000,000)

to provide funding for a statewide transit system by improvement of existing services, expansion

of services to new areas, development of high capacity transit, improvement of access to transit and

adoption of new technologies and methods to make service easier to use.

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

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

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

to be used for some other purpose.

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

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

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

accordance with the terms thereof or otherwise to purchase them 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 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 approval of the director and the governor, in

anticipation of the issue of notes or bonds under the authority of this act, to advance to the capital

development bond fund for the purposes specified in section 6 hereof, any funds of the state not

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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. Sections 1, 2, 3, 11 and 12 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 the project thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2024 BOND REFERENDA

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     This act would submit the state's 2024 capital development program requesting the

issuance of general obligation bonds totaling one hundred million dollars ($100,000,000) for

approval of the electorate at the general election to be held on November 5, 2024.

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

sections of this 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 the project thereunder.

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