2026 -- H 8202

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LC005431

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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J O I N T   R E S O L U T I O N

SUBMITTING TO THE ELECTORS A PROPOSITION TO ISSUE BONDS RELATING TO

CAPITAL DEVELOPMENT PROGRAM

     Introduced By: Representatives Tanzi, Cortvriend, Batista, Shanley, Stewart, Kislak,
Cruz, Hull, Handy, and Ajello

     Date Introduced: February 27, 2026

     Referred To: House Finance

     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 2026, 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 a joint resolution passed at the January 2026

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 joint resolution?"

     Project: 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: Fare technology upgrades and replacement to fare boxes, current bus stops and

shelters; safety and access to bus stops, including crosswalks, sidewalks and curb ramps; shelter

bathrooms, sheltered and secured bike racks and indoor waiting areas; matching funds for federal

grants for high capacity transit lines planned pursuant to the transit master plan; and, operational

support infrastructure for technology and agency facility improvements and expansion.

     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 joint resolution 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 2026 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 this section shall not exceed the total amount for the project approved by the

people. All provisions in this joint resolution relating to "bonds" shall also be deemed to apply to

"refunding bonds."

     Capital development bonds issued under this joint resolution 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

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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 2026 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 joint resolution, to issue bonds to refund

the 2026 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

2026 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 joint

resolution in the same manner as the capital development bonds issued under this joint resolution,

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 joint resolution.

     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 joint resolution, exclusive of premiums and accrued interest

and net the underwriters' cost, and cost of bond insurance, in one or more of the depositories in

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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.

     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 joint

resolution 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 joint resolution;

     (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 2026 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 joint resolution 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

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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 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 joint resolution 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 joint resolution 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 joint resolution 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.

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     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 bonds or notes under the authority of this joint resolution, to advance

to the capital development bond fund for the purposes specified in section 6 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 bonds or notes to the extent of such advances.

     SECTION 12. Federal assistance and private funds.

     In carrying out this joint resolution, 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 joint resolution, 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 joint resolution 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 joint resolution.

     SECTION 13. Sections 1, 2, 3, 11 and 12 of this joint resolution shall take effect upon

passage. The remaining sections of this joint resolution 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

J O I N T   R E S O L U T I O N

SUBMITTING TO THE ELECTORS A PROPOSITION TO ISSUE BONDS RELATING TO

CAPITAL DEVELOPMENT PROGRAM

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     This joint resolution would submit the state's 2026 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 in November,

2026.

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

remaining sections of this joint resolution 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 the project

thereunder.

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