2014 -- H 7247

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LC003258

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO HIGHWAYS - MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

     Introduced By: Representatives McLaughlin, Hull, and Bennett

     Date Introduced: January 30, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 24-18-7 of the General Laws in Chapter 24-18 entitled "Municipal

Road and Bridge Revolving Fund" is hereby amended to read as follows:

     24-18-7. Procedure for project approval. -- (a) By September 1, 2013, the department

shall promulgate rules and regulations establishing the project evaluation criteria and the process

through which a city or town may submit an infrastructure plan. By December 31, 2013, the

agency shall promulgate rules and regulations to effectuate the provisions of this chapter 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 42-35.

      (b) Beginning with the calendar year 2013 and for each calendar year thereafter, cities

and towns shall have from September 15th through October 15th to submit an infrastructure plan

to the department. In the event that October 15th is a Saturday, Sunday, or a general holiday as

enumerated in section 25-1-1, the deadline shall be extended through the next day that is not a

Saturday, Sunday, or a general holiday as enumerated in section 25-1-1.

      (c) By the end of each calendar year, the department shall evaluate all submitted

infrastructure plans and, in accordance with the project evaluation criteria, identify all eligible

projects, and after a public hearing, the department shall finalize and provide the agency and

statewide planning with a project priority list for the forthcoming calendar year.

      (d) By the end of each calendar year, the agency shall determine the maximum amount

of financial assistance available for the forthcoming calendar year, provided that it shall not

exceed an amount of twenty million dollars ($20,000,000) fifty million dollars ($50,000,00); and

provided further that the agency shall not obligate more than fifty percent (50%) of available

funding in any calendar year to any one city or town unless there are no other eligible projects on

the project priority list.

      (e) Upon issuance of the project priority list, the agency shall award financial assistance

to cities and towns for approved projects provided, however, that the agency does not exceed its

maximum annual amount of financial assistance. The agency may decline to award financial

assistance to an approved project which the agency determines will have a substantial adverse

effect on the interests of holders of bonds or other indebtedness of the agency or the interests of

other participants in the financial assistance program, or for good and sufficient cause affecting

the finances of the agency. All financial assistance shall be made pursuant to a loan agreement

between the agency and the city or town, acting by and through the officer or officers, board,

committee, or other body authorized by law, or otherwise its chief executive officer, according to

terms and conditions as determined by the agency, and each loan shall be evidenced and secured

by the issue to the agency of city or town obligations in fully marketable form in principal

amount, bearing interest at the rate or rates specified in the applicable loan agreement, shall be

payable over a period of ten (10) years, and shall otherwise bear such terms and conditions as

authorized by this chapter and/or the loan agreement.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HIGHWAYS - MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

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     This act would raise the maximum amount of financial assistance available from the road

and bridge revolving fund from twenty million dollars ($20,000,000) to fifty million dollars

($50,000,000) and would also provide that any financial assistance be paid over a period of ten

(10) years.

     This act would take effect upon passage.

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