2025 -- S 1070

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LC002931

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND INFRASTRUCTURE

BANK

     Introduced By: Senators Ciccone, and DiPalma

     Date Introduced: May 13, 2025

     Referred To: Senate Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 46-12.2 of the General Laws entitled "Rhode Island Infrastructure

Bank" is hereby amended by adding thereto the following section:

     46-12.2-4.4. Establishment of the resilient rhody infrastructure fund.

     (a) There is hereby authorized and created within the Rhode Island infrastructure bank the

resilient rhody infrastructure fund for the purpose of providing technical, administrative and

financial assistance to local governmental units for resiliency and stormwater abatement projects.

The Rhode Island infrastructure bank shall review and approve all applications for projects to be

financed through the resilient rhody infrastructure fund.

     The Rhode Island infrastructure bank shall promulgate rules and regulations to effectuate

the provisions of this section which may include, without limitation, forms for financial assistance

applications, loan agreements, and other instruments. All rules and regulations promulgated

pursuant to this chapter shall be promulgated in accordance with the provisions of chapter 35 of

title 42 ("administrative procedures").

     (b) The Rhode Island infrastructure bank shall have all the powers necessary and

convenient to carry out and effectuate the purposes and provisions of this section including, without

limiting the generality of the preceding statement, the authority:

     (1) To receive and disburse such funds from the state and federal government as may be

available for the purpose of the fund subject to the provisions of this section;

     (2) To make and enter into binding commitments to provide financial assistance to local

governmental units from amounts on deposit in the fund;

     (3) To levy administrative fees on eligible borrowers as necessary to effectuate the

provisions of this section, provided the fees have been previously authorized by an agreement

between the Rhode Island infrastructure bank and the eligible borrower;

     (4) To engage the services of third-party vendors to provide professional services;

     (5) To establish one or more accounts within the fund; and

     (6) Such other authority as granted to the Rhode Island infrastructure bank under this

chapter.

     (c) Subject to the provisions of this section and to any agreements with the holders of any

bonds of the Rhode Island infrastructure bank or any trustee therefor, amounts held by the Rhode

Island infrastructure bank for the account of the fund shall be applied by the Rhode Island

infrastructure bank, either by direct expenditure, disbursement, or transfer to one or more other

funds and accounts held by the Rhode Island infrastructure bank or maintained under any trust

agreement pertaining to bonds, either alone or with other funds of the Rhode Island infrastructure

bank, to the following purposes:

     (1) To provide financial assistance to local governmental units to finance costs of approved

projects, as set forth in subsection (a) of this section, and to refinance the costs of the projects,

subject to such terms and conditions, if any, as are determined by the Rhode Island infrastructure

bank;

     (2) To fund reserves for bonds of the Rhode Island infrastructure bank and to purchase

insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and

costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance,

and to otherwise provide security for, and a source of payment for obligations of the Rhode Island

infrastructure bank, by pledge, lien, assignment, or otherwise as provided in this chapter;

     (3) To pay expenses of the Rhode Island infrastructure bank in administering the fund;

     (4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on loans

and obligations outstanding in the event of default thereof; amounts in any account in the fund may

be applied to defaults on loans outstanding to the borrower for which the account was established

and, on a parity basis with all other accounts, to defaults on any loans or obligations outstanding;

and

     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

otherwise as provided in this chapter, any bonds of the Rhode Island infrastructure bank.

     (d) In addition to other remedies of the Rhode Island infrastructure bank under any loan

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agreement or otherwise provided by law, the Rhode Island infrastructure bank may also recover

from a borrower, in an action in superior court, any amount due the Rhode Island infrastructure

bank together with any other actual damages the Rhode Island infrastructure bank shall have

sustained from the failure or refusal of the borrower to make the payments or abide by the terms of

the loan agreement.

     (e) The Rhode Island infrastructure bank may create one or more loan loss reserve funds

to serve as further security for any loans made by the Rhode Island infrastructure bank or any bonds

of the Rhode Island infrastructure bank issued to fund energy efficiency improvements in public

buildings in accordance with this section.

     (f) To the extent possible, and in accordance with law, the Rhode Island infrastructure bank

shall encourage the use of project labor agreements for projects over ten million dollars

($10,000,000) and local hiring on projects funded under this section.

     SECTION 2. This act shall take effect upon passage.

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LC002931

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND INFRASTRUCTURE

BANK

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     This act would authorize the Rhode Island infrastructure bank to establish a fund to provide

financial assistance to local government units for resiliency and stormwater abatement projects.

     This act would take effect upon passage.

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LC002931

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