2013 -- H 5648

=======

LC01146

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND CLEAN WATER

FINANCE AGENCY

     Introduced By: Representatives Marshall, Kennedy, O'Brien, Almeida, and Gallison

     Date Introduced: February 27, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 46-12.2-6 of the General Laws in Chapter 46-12.2 entitled "Rhode

1-2

Island Clean Water Finance Agency" is hereby amended to read as follows:

1-3

     46-12.2-6. Establishment of the water pollution control revolving fund, the Rhode

1-4

Island water pollution control revolving fund and the local interest subsidy trust fund --

1-5

Sources of funds -- Permitted uses. -- (a) The agency shall be the instrumentality of the state for

1-6

administration of the water pollution control revolving fund, the Rhode Island water pollution

1-7

control revolving fund, and the local interest subsidy trust fund, and such other funds it holds or

1-8

for which it is responsible, and, in conjunction with the department, is empowered to and shall

1-9

take all action necessary or appropriate to secure to the state the benefits of title VI of the Clean

1-10

Water Act, 33 U.S.C. section 1381 et seq., and other federal or state legislation pertaining to the

1-11

funds and to the financing of approved projects. Without limiting the generality of the foregoing

1-12

and other powers of the agency provided in this chapter, the agency is empowered to and shall:

1-13

      (1) Cooperate with appropriate federal agencies in all matters related to administration of

1-14

the water pollution control revolving fund and, pursuant to the provisions of this chapter,

1-15

administer the fund and receive and disburse such funds from any such agencies and from the

1-16

state as may be available for the purpose of the fund.

1-17

      (2) Administer the Rhode Island water pollution control revolving fund and the local

1-18

interest subsidy trust fund, and receive and disburse such funds from the state as may be available

1-19

for the purpose of the funds subject to the provisions of this chapter.

2-1

      (3) In cooperation with the department, prepare, and submit to appropriate federal

2-2

agencies applications for capitalization grants under title VI of the Clean Water Act, 33 U.S.C.

2-3

section 1381 et seq., and enter into capitalization grant agreements, operating agreements, and

2-4

other agreements with appropriate federal and state agencies, and accept and disburse, as

2-5

provided herein, any capitalization grant awards made under title VI of the Clean Water Act, 33

2-6

U.S.C. section 1381 et seq.

2-7

      (4) Cooperate with the department in the preparation and submission to appropriate

2-8

federal and state agencies of intended use plans identifying the use of capitalization grant awards

2-9

and other moneys in the water pollution control revolving fund.

2-10

      (5) In cooperation with the department, prepare and submit to appropriate federal

2-11

agencies, the department and the governor, annual and other reports and audits required by law.

2-12

      (6) Subject to the provisions of this chapter, make, and enter into binding commitments

2-13

to provide financial assistance to local governmental units from amounts on deposit in the water

2-14

pollution control revolving fund, the Rhode Island water pollution control revolving fund and

2-15

from other funds of the agency; and provide, and enter into binding commitments to provide

2-16

subsidy assistance for loans and local governmental obligations from amounts on deposit in the

2-17

local interest subsidy trust fund.

2-18

      (7) Establish and maintain fiscal controls and accounting procedures conforming to

2-19

generally accepted government accounting standards sufficient to ensure proper accounting for

2-20

receipts in and disbursements from the water pollution control revolving fund, the Rhode Island

2-21

water pollution control revolving fund, the local interest subsidy trust fund and other funds it

2-22

holds or for which it is responsible and, adopt such rules, regulations, procedures, and guidelines

2-23

which it deems necessary to assure that local governmental units administer and maintain

2-24

approved project accounts and other funds and accounts relating to financial assistance in

2-25

accordance with generally accepted government accounting standards.

2-26

     (8) Utilize monies in the fund for general repairs and improvements to the infrastructure.

2-27

      (b) The agency shall establish and set up on its books a special fund, designated the

2-28

water pollution control revolving fund, to be held in trust and to be administered by the agency

2-29

solely as provided in this chapter and in any trust agreement securing bonds of the agency. The

2-30

agency shall credit to the water pollution control revolving fund or one or more accounts therein:

2-31

      (1) All federal capitalization grant awards received under title VI of the Clean Water

2-32

Act, 33 U.S.C. section 1381 et seq., provided the agency shall transfer to the department the

2-33

amount allowed by section603(d)(7) of the Water Quality Act, 33 U.S.C. section 1383(d)(7), to

2-34

defray administration expenses;

3-1

      (2) All amounts appropriated or designated to the agency by the state for purposes of the

3-2

fund;

3-3

      (3) To the extent required by federal law, loan repayments and other payments received

3-4

by the agency on any loans and local governmental obligations;

3-5

      (4) All investment earnings on amounts credited to the fund to the extent required by

3-6

federal law;

3-7

      (5) All proceeds of bonds of the agency to the extent required by any trust agreement for

3-8

such bonds;

3-9

      (6) All other monies which are specifically designated for this fund, including, amounts

3-10

from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,

3-11

civil and criminal penalties, or other funds from any public or private sources; and

3-12

      (7) (i) Any other amounts required by the provisions of this chapter, agreement, or any

3-13

other law or by any trust agreement pertaining to bonds to be credited to the fund or which the

3-14

agency in its discretion shall determine to credit thereto.

3-15

      (ii) At the request of the governor, the agency shall take all action necessary to transfer

3-16

the state's allotment under title II of the Clean Water Act, 33 U.S.C. section 1281 et seq., for

3-17

federal fiscal year 1989 and each federal fiscal year thereafter, to the purposes of the water

3-18

pollution control revolving fund, provided that any portion of any allotment which, under the

3-19

provisions of the Clean Water Act, 33 U.S.C. section 1251 et seq., may not be transferred to or

3-20

used for the purposes of the water pollution control revolving fund, shall continue to be received

3-21

and administered by the department as provided by law.

3-22

      (c) The agency shall establish and set up on its books a special fund, designated the

3-23

Rhode Island water pollution control revolving fund, to be held in trust and to be administered by

3-24

the agency solely as provided in this chapter and in any trust agreement securing bonds of the

3-25

agency. The agency shall credit to the Rhode Island water pollution control revolving fund or one

3-26

or more accounts therein:

3-27

      (1) All amounts appropriated or designated to the agency by the state for purposes of the

3-28

fund;

3-29

      (2) At its discretion, and to the extent allowed by law, loan repayments and other

3-30

payments received by the agency on any loans and local governmental obligations;

3-31

      (3) At its discretion, all investment earnings and amounts credited to the fund;

3-32

      (4) All proceeds of bonds of the agency to the extent required by any trust agreement for

3-33

such bonds;

4-34

      (5) All other monies which are specifically designated for this fund, including, amounts

4-35

from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,

4-36

civil and criminal penalties, or other funds from any public or private sources; and

4-37

      (6) Any other amounts required by provisions of this chapter or agreement, or any other

4-38

law or any trust agreement pertaining to bonds to be credited to the fund or which the agency in

4-39

its discretion shall determine to credit thereto.

4-40

      (d) Except to the extent limited by federal law, and subject to the provisions of this

4-41

chapter, to the provisions of any agreement with the state authorized by section 46-12.2-7, and to

4-42

any agreements with the holders of any bonds of the agency or any trustee therefor, amounts held

4-43

by the agency for the account of either the water pollution control revolving fund or the Rhode

4-44

Island water pollution control revolving fund shall be applied by the agency, either by direct

4-45

expenditure, disbursement, or transfer to one or more other funds and accounts held by the

4-46

agency or maintained under any trust agreement pertaining to bonds, either alone or with other

4-47

funds of the agency, to the following purposes:

4-48

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

4-49

approved projects, and to refinance the costs of the projects, subject to such terms and conditions,

4-50

if any, as are determined by the department and/or the agency in accordance with section 46-12.2-

4-51

8;

4-52

      (2) To purchase or refinance debt obligations of the local governmental units, or to

4-53

provide guarantees, insurance or similar forms of financial assistance for the obligations;

4-54

      (3) To fund reserves for bonds of the agency and to purchase insurance and pay the

4-55

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

4-56

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

4-57

otherwise provide security for, and a source of payment for, by pledge, lien, assignment, or

4-58

otherwise as provided in section 46-12.2-14, bonds of the agency issued in accordance with this

4-59

chapter; and

4-60

      (4) (i) To pay expenses of the agency and the department in administering the funds and

4-61

the financial assistance programs of the agency authorized by this chapter. As part of the annual

4-62

appropriations bill, the department shall set forth the gross amount of expenses received from the

4-63

agency and a complete, specific breakdown of the sums retained and/or expended for

4-64

administrative expenses.

4-65

      (ii) By way of illustration, not by limitation, in the personnel area, the breakdown of

4-66

administrative expenses should contain the number of personnel paid, the position numbers of the

4-67

personnel, and whether or not the position is a new position or a position which had been funded

4-68

previously by federal funds or a position which had been previously created but unfunded.

5-1

      (e) The agency shall also establish and set up on its books a special fund, designated the

5-2

local interest subsidy trust fund, to be held in trust and to be administered by the agency solely as

5-3

provided in this chapter and in any trust agreement securing bonds of the agency. The agency

5-4

may maintain a separate account in the local interest subsidy trust fund for each local

5-5

governmental unit which has received a loan from the agency, in accordance with this chapter, to

5-6

separately account for or otherwise segregate all or any part of the amounts credited to the fund

5-7

and receipts in and disbursements from the fund. To the extent that the agency is required by this

5-8

chapter, by any loan agreement or by any trust agreement, it shall, and, to the extent that it is

5-9

permitted, it may in its discretion, credit to the local interest subsidy trust fund, and to one or

5-10

more of the accounts or subaccounts therein:

5-11

      (1) All amounts appropriated or designated to the agency by the state for purposes of the

5-12

fund;

5-13

      (2) Loan repayments and other payments received on loans and local governmental

5-14

obligations;

5-15

      (3) Investment earnings on amounts credited to the local interest subsidy trust fund;

5-16

      (4) Proceeds of agency bonds;

5-17

      (5) All other monies which are specifically designated for this fund including, amounts

5-18

from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,

5-19

civil and criminal penalties, or other funds from any public or private sources; and

5-20

      (6) Any other amounts permitted by law.

5-21

      (f) Subject to any agreement with the state authorized by section 46-12.2-7, to the

5-22

provisions of section 46-12.2-8, and to any agreement with the holders of any bonds of the

5-23

agency or any trustee therefor, amounts held by the agency for the account of the local interest

5-24

subsidy trust fund shall be applied by the agency, either by direct expenditure, disbursement, or

5-25

transfer to one or more other funds and accounts held by the agency or maintained under any trust

5-26

agreement pertaining to bonds, either alone or with other funds of the agency, to the following

5-27

purposes:

5-28

      (1) To pay or provide for all or a portion of the interest otherwise payable by local

5-29

governmental units on loans and local governmental obligations, in the amounts and on terms

5-30

determined by the agency in accordance with section 46-12.2-8;

5-31

      (2) To provide a reserve for, or to otherwise secure, amounts payable by local

5-32

governmental units on loans and local governmental obligations outstanding in the event of

5-33

default thereof; amounts in any account in the local interest subsidy trust fund may be applied to

5-34

defaults on loans outstanding to the local governmental unit for which the account was

6-1

established and, on a parity basis with all other accounts, to defaults on any loans or local

6-2

governmental obligations outstanding; and

6-3

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

6-4

otherwise as provided in section 46-12.2-14, any bonds of the agency.

6-5

      (g) Subject to any express limitation of this chapter pertaining to expenditure or

6-6

disbursement of funds or accounts held by the agency, funds or accounts held by the agency may

6-7

be transferred to any other fund or account held by the agency and expended or disbursed for

6-8

purposes permitted by the fund or account.

6-9

     SECTION 2. This act shall take effect upon passage.

=======

LC01146

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND CLEAN WATER

FINANCE AGENCY

***

7-1

     This act would amend the general law on the clean water finance agency to permit use of

7-2

the money in the revolving fund to repair and improve the infrastructure.

7-3

     This act would take effect upon passage.

=======

LC01146

=======