=======

art.005/3/005/2/005/1

=======

     ARTICLE 5 AS AMENDED

RELATING TO CAPITAL DEVELOPMENT PROGRAM

     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 2014, there shall be submitted to

the people for their approval or rejection the following proposition:

     "Shall the action of the general assembly, by an act passed at the January 2014 session,

authorizing the issuance of bonds, refunding bonds, and temporary notes of the state for the

capital projects and in the amount with respect to each such project listed below be approved, and

the issuance of bonds, refunding bonds, and temporary notes authorized in accordance with the

provisions of said act?"

      Project

     (1) Higher Education Facilities $125,000,000

     Approval of this question will allow the State of Rhode Island to issue general obligation

bonds, refunding bonds, and temporary notes in an amount not to exceed one hundred twenty-five

million dollars ($125,000,000) to construct a new College of Engineering building and undertake

supporting renovations. The new building will anchor the northwest corner of the Engineering

Quadrangle on the Kingston Campus and provide contemporary and state-of-the-art instructional

and research facilities. As part of this project, outdated engineering buildings will be taken out of

service and razed.

     (2) Creative and Cultural Economy $35,000,000

     Approval of this question will authorize the State of Rhode Island to issue general

obligation bonds, refunding bonds, and temporary notes in an amount not to exceed thirty-five

million dollars ($35,000,000) to fund capital improvement, preservation and renovation projects

for public and nonprofit artistic, performance centers, historic sites, museums and cultural art

centers located throughout the State of Rhode Island, to be allotted as follows:

     (a) Cultural Arts and the Economy Grant Program $30,000,000

     Provide funds for 1:1 matching grants for a new Cultural Arts and the Economy Grant

program to be administered by the Rhode Island State Council on the Arts for capital

improvement, preservation and renovation projects for public and nonprofit artistic, performance

centers and cultural art centers located throughout the State of Rhode Island.

     1. Trinity Repertory Company $4,647,750

     For the Lederer Theater and the Pell Chafee Performance Center, both in Providence,

used for performance facilities, educational instruction, production and administration, including

reimbursements of advances of up to $1,500,000 expended for ongoing fire code upgrades.

     2. Rhode Island Philharmonic $2,390,250

     For the Carter Center for Music Education and Performance in East Providence, used for

music teaching, learning, performance and administration.

     3. Newport Performing Arts Center $4,216,800

     For the Opera House in Newport for use as a multi-cultural performing arts and

educational facility.

     4. United Theater/Westerly Land Trust $2,369,440

     For the United Theater in Westerly for use as space for performing arts, fine arts

showcase, arts instruction, cinema, public television station and program administration.

     5. The Chorus of Westerly $1,054,200

     For the George Kent Performance Hall in Westerly for music and arts performance,

teaching and rehearsal space, administrative and community function space.

     6. The Stadium Theater Conservatory in Woonsocket $2,108,400

     For set construction, costuming, rehearsal, voice, acting and dance studios and

administrative spaces.

     7. 2nd Story Theater $1,054,200

     For performance venues in Warren, including concessions studio/classroom space, set

construction shop and administrative offices.

     8. AS220 $2,108,400

     For AS220's facilities in Providence used for performing arts, dance studio, youth and

adult education, gallery and artist live/work space.

     9. WaterFire Providence $3,162,600

     To develop a 27,000 square foot historic warehouse in the Valley/Olneyville

neighborhood into its headquarters, multi-use community arts center, visitor center, education

center and arts and creative industries incubator

     10. Other funds to be allocated by RISCA $6,887,960

     For 1:1 matching grants to be allocated by the Rhode Island State Council on the Arts to

501(c)(3) nonprofit cultural organizations which lease or own their performance space, and for

RISCA’s expenses in administering the program. In awarding such grants RISCA shall take into

account financial need, the availability or actual expenditure of matching funds for the projects,

available gifts or grants for projects, the amount of square footage to be improved, the

geographical location and characteristics of audiences benefitted.

     (b) State Preservation Grants Program $5,000,000

     Provide funds to cities, towns and non-profit organizations to preserve, renovate and

improve public and nonprofit historic sites, museums, and cultural art centers located in historic

structures in the State of Rhode Island to be administered by the Rhode Island Historical

Preservation and Heritage Commission.

     (3) Mass Transit Hub Infrastructure $35,000,000

     Approval of this question will allow the State of Rhode Island to issue general obligation

bonds, refunding bonds, and temporary notes in an amount not to exceed thirty-five million

dollars ($35,000,000) to fund enhancements and renovations to mass transit hub infrastructure

throughout the State of Rhode Island to improve access to multiple intermodal sites, key

transportation, healthcare, and other locations.

     (4) Clean Water, Open Space, and Healthy Communities $53,000,000

     Approval of this question will allow the State of Rhode Island to issue general obligation

bonds, refunding bonds, and temporary notes in an amount not to exceed fifty-three million

dollars ($53,000,000) for environmental and recreational purposes, to be allotted as follows:

     (a) Brownfield Remediation and Economic Development $5,000,000

     Provides up to eighty percent (80%) matching grants to public, private, and/or non-profit

entities for brownfield remediation projects.

     (b) Flood Prevention $3,000,000

     To provide grants to public and/or non-profit entities for project design and construction

grants for repairing and/or removing dams, restoring and/or improving resiliency of vulnerable

coastal habitats, and restoring rivers and stream floodplains.

     (c) Farmland Acquisition $3,000,000

     Provides funds to protect the state’s working farms.

     (d) Local Recreation Grants $4,000,000

     Provides up to eighty percent (80%) matching grant funds to municipalities to acquire,

develop, or rehabilitate local recreational facilities to meet the growing needs for active

recreational facilities.

     (e) Roger Williams Park Zoo $15,000,000

     Provides funds for improvements and renovations to the Roger Williams Park Zoo.

     (f) Roger Williams Park $3,000,000

     Provides funds for improvements and renovations to the Roger Williams Park.

     (g) Clean Water Finance Agency $20,000,000

     Provides funds to finance water pollution abatement infrastructure projects.

     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 each of the

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

to the description of each such project to enable voters to approve or reject each such proposition.

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

     SECTION 3. Approval of projects by people. -- If a majority of the people voting on

the proposition provided for in section 1 hereof shall vote to approve the proposition as to any

project provided for in section 1 hereof, said project shall be deemed to be approved by the

people. The authority to issue bonds, refunding bonds and temporary notes of the state shall be

limited to the aggregate amount for all such projects as set forth in the proposition provided for in

section 1 hereof 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 from time to time capital development bonds in serial form in the

name and on behalf of the state in amounts as may be specified from time to time by the governor

in an aggregate principal amount not to exceed the total amount for all projects approved by the

people and designated as "capital development loan of 2014 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 all such projects as have been 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 beyond the end of the twentieth state fiscal year following the state fiscal year in

which they are issued, bear interest payable semi-annually at a specified rate or different or

varying rates, be payable at designated time or times at specified place or places, be subject to

expressed 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 of 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, he

or she shall certify approval to the secretary of state; the bonds shall be signed by the general

treasurer and countersigned by the manual or facsimile signature of the secretary of state and

shall bear the seal of the state or a facsimile thereof. The approval of the governor shall be

endorsed on each bond so approved with a facsimile of his or her signature.

     SECTION 5. Refunding bonds for 2014 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 from time to time bonds to refund the 2014

capital development program bonds in the name and on behalf of the state, in amounts as may be

specified from time to time 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

2014 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, they

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 from the date of deposit of such moneys 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 each of the projects 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 all such

projects 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 his or her

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: (a) 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; (b) 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 any

projects set forth in section 1 hereof; (c) 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 any projects set forth in section 1

hereof; and (d) 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 2014 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 each

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 purposes:

     Question 1 relating to bonds in the amount of one hundred twenty-five million dollars

($125,000,000) to be provided to the University of Rhode Island to construct a state-of-the-art

College of Engineering building and for supporting renovations and demolition of outdated

engineering buildings at the University of Rhode Island Kingston Campus.

     Question 2 relating to bonds in the amount of thirty-five million dollars ($35,000,000) for

capital improvements, preservation and renovation projects for public and non-profit artistic,

performance centers, historic sites, museums and cultural arts centers to be allocated as follows:

     (a) Cultural Arts and the Economy Grant Program $30,000,000

     Provide funds for 1:1 matching grants for a new Cultural Arts and the Economy Grant

program to be administered by the Rhode Island State Council on the Arts for capital

improvement, preservation and renovation projects for public and nonprofit artistic, performance

centers and cultural art centers located throughout the State of Rhode Island. Contracts for

construction entered into on or after November 6, 2014 shall be in compliance with § 37-13-1 et

seq. (prevailing wage); however, contracts entered into prior to November 6, 2014 shall not be

subject to this requirement.

     1. Trinity Repertory Company $4,647,750

     For the Lederer Theater and the Pell Chafee Performance Center, both in Providence,

used for performance facilities, educational instruction, production and administration, including

reimbursements of advances of up to $1,500,000 expended for ongoing fire code upgrades.

     2. Rhode Island Philharmonic $2,390,250

     For the Carter Center for Music Education and Performance in East Providence, used for

music teaching, learning, performance and administration.

     3. Newport Performing Arts Center $4,216,800

     For the Opera House in Newport for use as a multi-cultural performing arts and

educational facility.

     4. United Theater/Westerly Land Trust $2,369,440

     For the United Theater in Westerly for use as space for performing arts, fine arts

showcase, arts instruction, cinema, public television station and program administration.

     5. The Chorus of Westerly $1,054,200

     For the George Kent Performance Hall in Westerly for music and arts performance,

teaching and rehearsal space, administrative and community function space.

     6. The Stadium Theater Conservatory in Woonsocket $2,108,400

     For set construction, costuming, rehearsal, voice, acting and dance studios and

administrative spaces.

     7. 2nd Story Theater $1,054,200

     For performance venues in Warren, including concessions studio/classroom space, set

construction shop and administrative offices.

     8. AS220 $2,108,400

     For AS220's facilities in Providence used for performing arts, dance studio, youth and

adult education, gallery and artist live/work space.

     9. WaterFire Providence $3,162,600

     To develop a 27,000 square foot historic warehouse in the Valley/Olneyville

neighborhood into its headquarters, multi-use community arts center, visitor center, education

center and arts and creative industries incubator.

     10. Other funds to be allocated by RISCA $6,887,960

     For 1:1 matching grants to be allocated by the Rhode Island State Council on the Arts to

501(c)(3) nonprofit cultural organizations which lease or own their performance space, and for

RISCA’s expenses in administering the program. In awarding such grants RISCA shall take into

account financial need, the availability or actual expenditure of matching funds for the projects,

available gifts or grants for projects, the amount square footage to be improved, the geographical

location and characteristics of audiences benefitted.

     (c) State Preservation Grants Program $5,000,000

     Provide funds to cities, towns and non-profit organizations to preserve, renovate and

improve public and nonprofit historic sites, museums, and cultural art centers located in historic

structures in the State of Rhode Island to be administered by the Rhode Island Historical

Preservation and Heritage Commission.

     Question 3 relating to bonds in the amount of thirty-five million dollars ($35,000,000) to

be provided to the Department of Transportation to provide funding for enhancements and

renovations to mass transit hub infrastructure throughout the State of Rhode Island to improve

access to multiple intermodal sites, key transportation, healthcare, and other locations.

     Question 4 relating to bonds in the amount of fifty-three million dollars ($53,000,000) for

Clean Water, Open Space, and Healthy Communities programs to be allocated as follows:

     (a) Brownfield Remediation for Economic Development $5,000,000

     Provides up to eighty percent (80%) matching grants to public, private, and/or non-profit

entities for brownfield remediation projects. Between 10,000 and 12,000 abandoned industrial

sites, referred to as “brownfields,” lie idle in towns and cities across the state, much of it in prime

commercial or industrial locations within the state’s urban services boundaries established by

Land Use 2020. Cleanup, reinvestment and re-use of these sites creates and attracts jobs, protects

the urban environment, removes hazards, prevents sprawl, and reduces the cost of stormwater

flooding.

     (b) Flood Prevention $3,000,000

     Provides grants to public and/or non-profit entities for project design and construction

grants for repairing and/or removing dams, restoring and/or improving resiliency of vulnerable

coastal habitats, and restoring rivers and stream floodplains. These funds are expected to leverage

significant matching funds to support local programs to improve community resiliency and public

safety in the face of increased flooding, major storm events, and environmental degradation.

     (c) Farmland Acquisition for Active Use $3,000,000

     Provides funds to protect the state’s working farms. Through the State Land Acquisition

Program, the Department of Environmental Management will purchase farmland in danger of

converting to non-agricultural use, then restrict and affordably sell or lease the land to qualified

farmers. Funds from sale of the land to farmers will be returned to the program account for re-use

in new projects. Funds provided under this section may also be used for the purchase of

development rights to farms by the Agricultural Preservation Commission.

     (d) Local Recreation Grants $4,000,000

     Provides up to eighty percent (80%) matching grant funds to municipalities to acquire,

develop, or rehabilitate local recreational facilities to meet the growing needs for active

recreational facilities. All grant applications are evaluated and ranked by the State Recreation

Resources Review Committee.

     (e) Roger Williams Park Zoo $15,000,000

     Provides funds to construct a new education center to meet the increased demand for

education programs; to renovate and convert the existing education center into a world class

reptile facility; for demolition of existing facilities and construction of a new tropical rainforest

building to house rare and endangered animals and event space; or for other improvements to the

Roger Williams Park Zoo.

     (f) Roger Williams Park $3,000,000

     Provides funds for construction and reconstruction of roads, bridges, sidewalks and

walkways within Roger Williams Park.

     (g) Capital for Clean Water $20,000,000

     Provides funds to be administered by the Clean Water Finance Agency to finance water

pollution abatement infrastructure projects. The Department of Environmental Management has

compiled a list of more than $1.8 billion dollars of needed clean water infrastructure

improvements from municipalities and the Narragansett Bay Commission. Projects range from

wastewater treatment upgrades and stormwater quality improvements to combined sewer

overflow abatement projects.

     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority

of this act shall be sold from time to time 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 for 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 Municipal Road and Bridge Revolving 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 for 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 facsimile 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 moneys in fund. -- All moneys 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 35-10, 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 from

time to time 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 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 his or her 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 his or her

designee may also utilize any private funds that may be made available for the purposes of this

act.

     SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, and 12 of this article shall take

effect upon passage. The remaining sections of this article 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 propositions contained in section 1 hereof have indicated their approval of all or any

projects thereunder.