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art.005/4/005/3/005/2/005/1 | |
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ARTICLE 5 |
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RELATING TO CAPITAL DEVELOPMENT PROGRAM |
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     SECTION 1. Proposition to be submitted to the people. -- At the general election to be |
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held on the Tuesday next after the first Monday in November 2012, there shall be submitted to |
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the people for their approval or rejection the following proposition: |
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     "Shall the action of the general assembly, by an act passed at the January 2012 session, |
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authorizing the issuance of bonds, refunding bonds, and temporary notes of the state for the |
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capital projects and in the amount with respect to each such project listed below be approved, and |
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the issuance of bonds, refunding bonds, and temporary notes authorized in accordance with the |
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provisions of said act?" |
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     Project |
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     (1) Higher Education Facilities $50,000,000 |
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     Approval of this question will allow the State of Rhode Island to issue general obligation |
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bonds, refunding bonds, and temporary notes in an amount not to exceed fifty million dollars |
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($50,000,000) for renovations and modernization of academic buildings at Rhode Island College |
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including renovation, upgrade and expansion of health and nursing facilities on the campus of |
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Rhode Island College. |
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     (2) Veterans' Home…………………………… ………………..$94,000,000 |
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     Approval of this question will allow the State of Rhode Island to issue general obligation |
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bonds, refunding bonds and temporary notes in an amount not to exceed ninety-four million |
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dollars ($94,000,000) for the construction of a new Veterans' Home and renovations to existing |
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facilities. Any funding amount from federal sources received for these purposes will be used to |
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reduce the amount of borrowed funds. |
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     (3) Clean Water Finance Agency $20,000,000 |
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     Approval of this question will authorize the State of Rhode Island to issue general |
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obligation bonds, refunding bonds, and temporary notes in an amount not to exceed twelve |
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million dollars ($12,000,000) to be leveraged with federal and state capitalization grants to |
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finance wastewater infrastructure projects and eight million dollars ($8,000,000) to be leveraged |
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with federal and state capitalization grants to finance drinking water infrastructure projects. |
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     (4) Environmental Management $20,000,000 |
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     Approval of this question will allow the State of Rhode Island to issue general obligation |
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bonds, refunding bonds, and temporary notes for environmental and recreational purposes to be |
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allotted as follows: |
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     (a) Narragansett Bay and Watershed Restoration $4,000,000 |
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     Provides funds for activities to restore and protect the water quality and enhance the |
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economic viability and environmental sustainability of Narragansett Bay and the state’s |
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watersheds. Eligible activities include: nonpoint source pollution abatement, including |
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stormwater management; nutrient loading abatement; commercial, industrial and agricultural |
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pollution abatement; and riparian buffer and watershed ecosystem restoration. |
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     (b) State Land Acquisition – Open Space $2,500,000 |
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     Provides funds for the purchase of land, development rights and conservation easements |
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in Rhode Island. This program acquires recreational and open space lands for the State of Rhode |
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Island in accordance with the Rhode Island Comprehensive Outdoor Recreation Plan, Land |
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Protection Plan, and the Rhode Island Greenspace 2000 plan. |
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     (c) Farmland Development Rights $4,500,000 |
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     Provides funds for the purchase of agricultural development rights to active farms in |
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Rhode Island. The State purchases the development rights to farms to eliminate the economic |
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pressure on farmers to sell properties for residential and commercial development. The |
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Agricultural Land Preservation Commission accepts and evaluates farmland applications for these |
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funds. |
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     (d) Local Land Acquisition Grants $2,500,000 |
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     Provides funds for grants to municipalities, local land trusts and non-profit organizations |
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to acquire fee-simple title, development rights, or conservation easements to open space in Rhode |
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Island. The grants provide funding up to fifty percent (50%) of the purchase price for land, |
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surveys, appraisals and title costs. The grant applications are reviewed and evaluated by the |
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Governor’s Natural Heritage Preservation Commission according to the program guidelines. |
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     (e) Local Recreation Grants $5,500,000 |
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     Provides grants to municipalities for acquisition, development, or rehabilitation of local |
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recreational facilities. These grants provide funding assistance up to fifty percent (50%) of the |
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project costs. All grant applications are evaluated and ranked by the State Recreation Resources |
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Review Committee. |
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     (f) Historic/Passive Parks $1,000,000 |
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     Provides grants to municipalities for the renovation and development of historic and |
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passive recreation areas. The grants provide funding assistance of up to ninety percent (90%) of |
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the project costs. All grant applications are evaluated and ranked by the State Recreation |
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Resources Review Committee. |
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      (5) Affordable Housing $25,000,000 |
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     Approval of this question will allow the State of Rhode Island to issue general obligation |
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bonds, refunding bonds, and temporary notes in an amount not to exceed twenty-five million |
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dollars ($25,000,000) for affordable housing. |
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     SECTION 2. Ballot labels and applicability of general election laws. -- The secretary |
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of state shall prepare and deliver to the state board of elections ballot labels for each of the |
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projects provided for in Section 1 hereof with the designations "approve" or "reject" provided |
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next to the description of each such project to enable voters to approve or reject each such |
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proposition. The general election laws, so far as consistent herewith, shall apply to this |
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proposition. |
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     SECTION 3. Approval of projects by people. -- If a majority of the people voting on |
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the proposition provided for in Section 1 hereof shall vote to approve the proposition as to any |
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project provided for in Section 1 hereof, said project shall be deemed to be approved by the |
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people. The authority to issue bonds, refunding bonds and temporary notes of the state shall be |
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limited to the aggregate amount for all such projects as set forth in the proposition provided for in |
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section 1 hereof which has been approved by the people. |
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     SECTION 4. Bonds for capital development program. -- The general treasurer is |
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hereby authorized and empowered with the approval of the governor and in accordance with the |
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provisions of this act, to issue from time to time capital development bonds in serial form in the |
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name and on behalf of the state in amounts as may be specified from time to time by the governor |
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in an aggregate principal amount not to exceed the total amount for all projects approved by the |
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people and designated as "capital development loan of 2012 bonds" provided, however, that the |
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aggregate principal amount of such capital development bonds and of any temporary notes |
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outstanding at any one time issued in anticipation thereof pursuant to Section 7 hereof shall not |
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exceed the total amount for all such projects as have been approved by the people. All provisions |
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in this act relating to "bonds" shall also be deemed to apply to "refunding bonds". |
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     Capital development bonds issued under this act shall be in denominations of one |
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thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency |
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of the United States which at the time of payment shall be legal tender for public and private |
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debts. These capital development bonds shall bear such date or dates, mature at specified time or |
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times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in |
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which they are issued, bear interest payable semi-annually at a specified rate or different or |
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varying rates, be payable at designated time or times at specified place or places, be subject to |
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expressed terms of redemption or recall, with or without premium, be in a form, with or without |
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interest coupons attached, carry such registration, conversion, reconversion, transfer, debt |
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retirement, acceleration and other provisions as may be fixed by the general treasurer, with the |
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approval of the governor, upon each issue of such capital development bonds at the time of each |
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issue. Whenever the governor shall approve the issuance of such capital development bonds, he |
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or she shall certify approval to the secretary of state; the bonds shall be signed by the general |
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treasurer and countersigned by the manual or facsimile signature of the secretary of state and |
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shall bear the seal of the state or a facsimile thereof. The approval of the governor shall be |
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endorsed on each bond so approved with a facsimile of his or her signature. |
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     SECTION 5. Refunding bonds for 2012 capital development program. -- The general |
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treasurer is hereby authorized and empowered, with the approval of the governor and in |
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accordance with the provisions of this act, to issue from time to time bonds to refund the 2012 |
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capital development program bonds in the name and on behalf of the state, in amounts as may be |
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specified from time to time by the governor in an aggregate principal amount not to exceed the |
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total amount approved by the people, to be designated as "capital development program loan of |
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2012 refunding bonds" (hereinafter "refunding bonds"). |
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     The general treasurer with the approval of the governor shall fix the terms and form of |
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any refunding bonds issued under this act in the same manner as the capital development bonds |
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issued under this act, except that the refunding bonds may not mature more than twenty (20) |
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years from the date of original issue of the capital development bonds being refunded. |
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     The proceeds of the refunding bonds, exclusive of any premium and accrual interest and |
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net the underwriters’ cost, and cost of bond insurance, shall, upon their receipt, be paid by the |
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general treasurer immediately to the paying agent for the capital development bonds which are to |
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be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they |
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are applied to prepay the capital development bonds. While such proceeds are held in trust, they |
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may be invested for the benefit of the state in obligations of the United States of America or the |
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State of Rhode Island. |
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     If the general treasurer shall deposit with the paying agent for the capital development |
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bonds the proceeds of the refunding bonds or proceeds from other sources amounts that, when |
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invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all |
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principal, interest, and premium, if any, on the capital development bonds until these bonds are |
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called for prepayment, then such capital development bonds shall not be considered debts of the |
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State of Rhode Island for any purpose from the date of deposit of such moneys with the paying |
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agent. The refunding bonds shall continue to be a debt of the state until paid. |
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     The term "bond" shall include "note", and the term "refunding bonds" shall include |
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"refunding notes" when used in this act. |
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     SECTION 6. Proceeds of capital development program. -- The general treasurer is |
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directed to deposit the proceeds from the sale of capital development bonds issued under this act, |
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exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond |
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insurance, in one or more of the depositories in which the funds of the state may be lawfully kept |
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in special accounts (hereinafter cumulatively referred to as "such capital development bond |
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fund") appropriately designated for each of the projects set forth in Section 1 hereof which shall |
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have been approved by the people to be used for the purpose of paying the cost of all such |
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projects so approved. |
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     All monies in the capital development bond fund shall be expended for the purposes |
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specified in the proposition provided for in Section 1 hereof under the direction and supervision |
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of the director of administration (hereinafter referred to as "director"). The director or his or her |
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designee shall be vested with all power and authority necessary or incidental to the purposes of |
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this act, including but not limited to, the following authority: (a) to acquire land or other real |
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property or any interest, estate or right therein as may be necessary or advantageous to |
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accomplish the purposes of this act; (b) to direct payment for the preparation of any reports, plans |
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and specifications, and relocation expenses and other costs such as for furnishings, equipment |
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designing, inspecting and engineering, required in connection with the implementation of any |
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projects set forth in Section 1 hereof; (c) to direct payment for the costs of construction, |
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rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other |
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improvements to land in connection with the implementation of any projects set forth in section 1 |
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hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor |
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for repair, renovation or conversion of systems and structures as necessary for 2012 capital |
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development program bonds or notes hereunder from the proceeds thereof. No funds shall be |
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expended in excess of the amount of the capital development bond fund designated for each |
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project authorized in Section 1 hereof. With respect to the bonds and temporary notes described |
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in section 1, the proceeds shall be utilized for the following purposes: |
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     Question 1 relating to bonds in the amount of fifty million dollars ($50,000,000) for |
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Higher Education shall be allocated as follows: |
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     Infrastructure Modernization at Rhode Island College $50,000,000 |
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     Provides funds for modernization and renovation of academic buildings on the Rhode |
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Island College campus including renovation, upgrade and expansion of health and nursing |
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facilities on the campus of Rhode Island College. |
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     Question 2 relating to bonds in the amount of ninety-four million dollars ($94,000,000) to |
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be provided to the department of human services to provide funding for the construction of a new |
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veterans' home as well as renovations to existing facilities. The project is planned to be completed |
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over a ten-year period, beginning with the new veterans' home facility, followed by renovations |
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to existing facilities. |
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     Question 3 relating to bonds in the amount of twenty million dollars ($20,000,000) for |
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the Clean Water Finance Agency to be allocated as follows: |
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     (a) Clean Water State Revolving Loan Fund $12,000,000 |
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     Provides funds for water pollution abatement projects structured as low-interest, |
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subsidized loans for local governmental units to finance approved water pollution abatement |
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projects. |
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     (b) Drinking Water State Revolving Loan Fund $8,000,000 |
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     Provides funds for drinking water projects structured as low-interest, subsidized loans for |
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local governmental units and privately organized water suppliers to finance approved drinking |
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water projects. |
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     Question 4 relating to bonds in the amount of twenty million dollars ($20,000,000) for |
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environmental and recreational purposes to be allocated as follows: |
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     (a) Narragansett Bay and Watershed Restoration $4,000,000 |
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     Provides funds for activities to restore and protect the water quality and enhance the |
6-20 |
economic viability and environmental sustainability of Narragansett Bay and the state’s |
6-21 |
watersheds. |
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     (b) State Land Acquisition – Open Space $2,500,000 |
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     Provides funds for the purchase of land, development rights, and conservation easements |
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in Rhode Island. |
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     (c) Farmland Development Rights $4,500,000 |
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     Provides funds for the purchase of agricultural development rights to active farms in |
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Rhode Island. |
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     (d) Local Land Acquisition Grants $2,500,000 |
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     Provides funds for grants to municipalities, local land trusts, and non-profit organizations |
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to acquire fee-simple title, development rights, or conservation easements to open space in Rhode |
6-31 |
Island. |
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     (e) Local Recreation Grants $5,500,000 |
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     Provides grants to municipalities for acquisition, development, or rehabilitation of local |
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recreation facilities. |
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     (f) Historic/Passive Parks $1,000,000 |
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     Provides grants to municipalities for the renovation or development of historic and |
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passive recreation areas. |
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     Question 5 relating to bonds in the amount of twenty-five million dollars ($25,000,000) |
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for Affordable Housing. |
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     Provides funding to the Housing Resources Commission to provide state funds to |
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promote affordable housing through redevelopment of existing structures, or new construction. |
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SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority |
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of this act shall be sold from time to time at not less than the principal amount thereof, in such |
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mode and on such terms and conditions as the general treasurer, with the approval of the |
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governor, shall deem to be for the best interests of the state. |
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     Any premiums and accrued interest, net of the cost of bond insurance and underwriters |
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discount, that may be received on the sale of the capital development bonds or notes shall become |
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part of the Rhode Island Capital Fund of the state, unless directed by federal law or regulation to |
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be used for some other purpose. |
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     In the event that the amount received from the sale of the capital development bonds or |
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notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may |
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be used to the extent possible to retire the bonds as the same may become due, to redeem them in |
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accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the |
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approval of the governor, shall deem to be for the best interests of the state. |
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     Any bonds or notes issued under the provisions of this act and coupons on any capital |
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development bonds, if properly executed by the manual or facsimile signatures of officers of the |
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state in office on the date of execution shall be valid and binding according to their tenor, |
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notwithstanding that before the delivery thereof and payment therefor, any or all such officers |
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shall for any reason have ceased to hold office. |
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     SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. - |
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All bonds and notes issued under the authority of this act shall be exempt from taxation in the |
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state and shall be general obligations of the state, and the full faith and credit of the state is hereby |
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pledged for the due payment of the principal and interest on each of such bonds and notes as the |
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same shall become due. |
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     SECTION 9. Investment of monies in fund. -- All moneys in the capital development |
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fund not immediately required for payment pursuant to the provisions of this act may be invested |
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by the investment commission, as established by chapter 35-10, pursuant to the provisions of such |
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chapter; provided, however, that the securities in which the capital development fund is invested |
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shall remain a part of the capital development fund until exchanged for other securities; and |
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provided further, that the income from investments of the capital development fund shall become |
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a part of the general fund of the state and shall be applied to the payment of debt service charges |
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of the state, unless directed by federal law or regulation to be used for some other purpose, or to |
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the extent necessary, to rebate to the United States treasury any income from investments |
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(including gains from the disposition of investments) of proceeds of bonds or notes to the extent |
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deemed necessary to exempt (in whole or in part) the interest paid on such bonds or notes from |
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federal income taxation. |
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     SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not |
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otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and |
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notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise |
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appropriated. |
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     SECTION 11. Advances from general fund. -- The general treasurer is authorized from |
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time to time with the approval of the director and the governor, in anticipation of the issue of |
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notes or bonds under the authority of this act, to advance to the capital development bond fund for |
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the purposes specified in Section 6 hereof, any funds of the state not specifically held for any |
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particular purpose; provided, however, that all advances made to the capital development bond |
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fund shall be returned to the general fund from the capital development bond fund forthwith upon |
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the receipt by the capital development fund of proceeds resulting from the issue of notes or bonds |
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to the extent of such advances. |
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     SECTION 12. Federal assistance and private funds. -- In carrying out this act, the |
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director, or his or her designee, is authorized on behalf of the state, with the approval of the |
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governor, to apply for and accept any federal assistance which may become available for the |
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purpose of this act, whether in the form of loan or grant or otherwise, to accept the provision of |
8-25 |
any federal legislation therefor, to enter into, act and carry out contracts in connection therewith, |
8-26 |
to act as agent for the federal government in connection therewith, or to designate a subordinate |
8-27 |
so to act. Where federal assistance is made available, the project shall be carried out in |
8-28 |
accordance with applicable federal law, the rules and regulations thereunder and the contract or |
8-29 |
contracts providing for federal assistance, notwithstanding any contrary provisions of state law. |
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Subject to the foregoing, any federal funds received for the purposes of this act shall be deposited |
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in the capital development bond fund and expended as a part thereof. The director or his or her |
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designee may also utilize any private funds that may be made available for the purposes of this |
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act. |
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     SECTION 13. Effective Date. -- Sections 1, 2 and 3 of this article shall take effect upon |
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passage. The remaining sections of this article shall take effect if and when the state board of |
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elections shall certify to the secretary of state that a majority of the qualified electors voting on |
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the propositions contained in section 1 hereof have indicated their approval of all or any projects |
9-38 |
thereunder. |