2014 -- H 7247

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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:

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

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

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

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

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

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agency shall promulgate rules and regulations to effectuate the provisions of this chapter which

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may include, without limitation, forms for financial assistance applications, loan agreements, and

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other instruments. All rules and regulations promulgated pursuant to this chapter shall be

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promulgated in accordance with the provisions of chapter 42-35.

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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the project priority list.

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

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

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

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

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

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

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

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

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

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

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

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

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

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authorized by this chapter and/or the loan agreement.

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     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

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

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

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(10) years.

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     This act would take effect upon passage.

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