2014 -- S 2771

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LC005117

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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

AUTHORIZING THE ISSUANCE OF BONDS, REFUNDING BONDS AND TEMPORARY

NOTES IN THE TOTAL AGGREGATE OF THIRTY MILLION DOLLARS ($30,000,000)

FOR THE CULTURAL ARTS AND ECONOMY PROGRAM OF THE STATE

     

     Introduced By: Senators Goodwin, Paiva Weed, DaPonte, Felag, and Picard

     Date Introduced: March 18, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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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 2014, 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 2014 session,

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

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amount of Thirty Million dollars ($30,000,000) for the purpose of providing 1:1 matching grants

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to fund capital improvements for cultural facilities, including, but not limited to, acquisition,

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remediation, design, construction, restoration, renovation, fire code upgrades, energy efficiency

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upgrades, accessibility improvements, landscaping, furnishing, equipping and completion of

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facilities for the performing arts to be allocated as provided below, be approved, and the issuance

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

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said act?”

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     1. Trinity Repertory Company – For the Lederer Theater and the Pell Chafee

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Performance Center, both in Providence, used for performance facilities, educational instruction,

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production and administration, including reimbursements of advances of up to $1,500,000

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expended for ongoing fire code upgrades $5,271,000

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     2. Rhode Island Philharmonic – for the Carter Center for Music Education and

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Performance in East Providence, used for music teaching, learning, performance and

 

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administration $5,271,000

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     3. Newport Performing Arts Center – for the Opera House in Newport for use as a multi-

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cultural performing arts and educational facility $4,216,800

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     4. United Theater/Westerly Land Trust – for the United Theater in Westerly for use as

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space for performing arts, fine arts showcase, arts instruction, cinema, public television station

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and program administration $2,369,440

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     5. The Chorus of Westerly – for the George Kent Performance Hall in Westerly for music

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and arts performance, teaching and rehearsal space, administrative and community function space

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$1,054,200

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     6. The Stadium Theater Conservatory in Woonsocket – for set construction, costuming,

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rehearsal, voice, acting and dance studios and administrative spaces $2,108,400

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     7. 2nd Story Theater – for performance venues in Warren, including concessions

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studio/classroom space, set construction shop and administrative offices $1,054,200

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     8. AS220 – for AS220's facilities in downtown Providence used for performing arts,

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dance studio, youth and adult education, gallery and artist live/work space $2,108,400

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     9. WaterFire Providence – to develop a 27,000 square foot historic warehouse in the

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Valley/Olneyville neighborhood into its headquarters, multi-use community arts center, visitor

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center, education center and arts and creative industries incubator $3,162,600

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     10. Other funds to be allocated by RISCA for 1:1 matching grants to be allocated by the

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Rhode Island State Council on the Arts to 501(c)(3) nonprofit cultural organizations which lease

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or own their performance space, and for RISCA’s expenses in administering the program. In

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awarding such grants RISCA shall take into account financial need, the availability or actual

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expenditure of matching funds for the projects, available gifts or grants for projects, the amount

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square footage to be improved, the geographical location and characteristics of audiences

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benefitted. $3,383,960

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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 the project

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provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the

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description of such project to enable voters to approve or reject such proposition. The general

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

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

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proposition provided for in Section 1 hereof shall vote to approve the proposition provided for in

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Section 1 hereof, said project shall be deemed to be approved by the people. The authority to

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issue bonds, refunding bonds and temporary notes of the state shall be limited to the aggregate

 

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amount for all such projects as set forth in the proposition provided for in Section 1 hereof which

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has been approved by the people.

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     SECTION 4. Bonds for Cultural Arts and Economy 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 cultural arts and economy

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program bonds in serial form 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 for the project approved by the people and designated as "cultural arts and economy

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program bonds"; provided, however, that the aggregate principal amount of such cultural arts and

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economy program bonds and of any temporary notes outstanding at any one time issued in

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anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount for such

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project as has been approved by the people. All provisions in this act relating to "bonds" shall

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also be deemed to apply to "refunding bonds".

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     Such cultural arts and economy program bonds issued under this act shall be in

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denominations of one thousand dollars ($1,000) each, or multiples thereof, and shall be payable

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in any coin or currency of the United States which at the time of payment shall be legal tender for

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public and private debts. These cultural arts and economy program bonds shall bear such date or

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dates, mature at specified time or times, but not beyond the end of the twentieth state fiscal year

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following the state fiscal year in which they are issued, bear interest payable semi-annually at a

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specified rate or different or varying rates, be payable at designated time or times at specified

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place or places, be subject to expressed terms of redemption or recall, with or without premium,

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be in a form, with or without interest coupons attached, carry such registration, conversion,

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reconversion, transfer, debt retirement, acceleration and other provisions as may be fixed by the

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general treasurer, with the approval of the governor, upon each issue of such cultural arts and

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economy program bonds at the time of each issue. Whenever the governor shall approve the

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issuance of such cultural arts and economy program bonds, he or she shall certify approval to the

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secretary of state; the bonds shall be signed by the general treasurer and countersigned by the

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manual or facsimile signature of the secretary of state and shall bear the seal of the state or a

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facsimile thereof. The approval of the governor shall be endorsed on each bond so approved with

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a facsimile of his or her signature.

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     SECTION 5. Refunding bonds for cultural arts and economy program. -- The

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general 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 bonds in

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

 

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governor in an aggregate principal amount not to exceed the total amount approved by the people,

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to be designated as "cultural arts and economy program refunding bonds" (hereinafter "refunding

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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 cultural arts and economy

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program bonds issued under this act, except that the refunding bonds may not mature more than

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twenty (20) years from the date of original issue of the cultural arts and economy program bonds

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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 cultural arts and economy program

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bonds which are to be called and prepaid. The paying agent shall hold the refunding bond

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proceeds in trust until they are applied to prepay the cultural arts and economy program bonds.

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While such proceeds are held in trust, they may be invested for the benefit of the state in

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obligations of the United States of America or the state of Rhode Island.

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     If the general treasurer shall deposit with the paying agent for the cultural arts and

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economy program bonds the proceeds of the refunding bonds or proceeds from other sources

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amounts that, when invested in obligations of the United states or the State of Rhode Island, are

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sufficient to pay all principal, interest, and premium, if any, on the cultural arts and economy

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program bonds until these bonds are called for prepayment, then such cultural arts and economy

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program bonds shall not be considered debts of the state of Rhode Island for any purpose from

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the date of deposit of such moneys with the paying agent. The refunding bonds shall continue to

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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 cultural arts and economy program. -- The general

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treasurer is directed to deposit the proceeds from the sale of cultural arts and economy program

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bonds issued under this act, exclusive of premiums and accrued interest and net the underwriters′

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cost, and cost of bond insurance, in one or more of the depositories in which the funds of the state

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may be lawfully kept in special accounts (hereinafter cumulatively referred to as "such cultural

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arts and economy program bond fund") appropriately designated for the project set forth in

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Section 1 hereof which shall have been approved by the people to be used for the purpose of

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paying the cost of such project so approved.

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     All monies in the cultural arts and economy program bond fund shall be expended for the

 

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purposes specified in the proposition provided for in Section 1 hereof under the direction and

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supervision of the Rhode Island State Council on the Arts (hereinafter referred to as "RISCA").

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RISCA shall be vested with all power and authority necessary or incidental to the purposes of

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section 1, including, but not limited to, the following authority: (a) to make grants to finance

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capital improvements for cultural facilities; (b) to make grants for the preparation of any reports,

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plans and specifications, build out 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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portion of the project set forth in section 1 hereof; (c) to make grants for the costs of construction,

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rehabilitation, enlargement, provision of utilities, and other improvements to real estate in

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connection with the implementation of the project set forth in section 1 hereof; and (d) to make

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grants for the costs of equipment, supplies, devices, materials and labor for repair, renovation or

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conversion of structures as necessary for the Cultural Arts and Economy Grant Program. No

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funds shall be expended in excess of the amount designated for each portion of the project

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authorized in Section 1 hereof.

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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 cultural arts and economy program bonds or

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notes shall become part of the Rhode Island Capital Fund of the state, unless directed by federal

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law or regulation to be used for some other purpose.

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     In the event that the amount received from the sale of the cultural arts and economy

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program bonds or notes exceeds the amount necessary for the purposes stated in Section 6 hereof,

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the surplus may be used to the extent possible to retire the bonds as the same may become due, to

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redeem them in accordance with the terms thereof or otherwise to purchase them as the general

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treasurer, with the 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 cultural

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arts and economy program bonds, if properly executed by the manual or facsimile signatures of

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officers of the state in office on the date of execution shall be valid and binding according to their

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tenor, notwithstanding that before the delivery thereof and payment therefor, any or all such

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officers 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 cultural arts and

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economy program fund not immediately required for payment pursuant to the provisions of this

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act may be invested by the investment commission, as established by chapter 35-10, pursuant to

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the provisions of such chapter; provided, however, that the securities in which the cultural arts

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and economy program fund is invested shall remain a part of the cultural arts and economy

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program fund until exchanged for other securities; and provided further, that the income from

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investments of the cultural arts and economy program fund shall become a part of the general

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fund of the state and shall be applied to the payment of debt service charges of the state, unless

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directed by federal law or regulation to be used for some other purpose, or to the extent

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necessary, to rebate to the United States treasury any income from investments (including gains

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from the disposition of investments) of proceeds of bonds or notes to the extent deemed necessary

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to exempt (in whole or in part) the interest paid on such bonds or notes from federal income

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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 cultural arts and economy

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program bond fund for the purposes specified in Section 6 hereof, any funds of the state not

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specifically held for any particular purpose; provided, however, that all advances made to the

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cultural arts and economy program bond fund shall be returned to the general fund from the

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cultural arts and economy program bond fund forthwith upon the receipt by the cultural arts and

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economy program fund of proceeds resulting from the issue of notes or bonds to the extent of

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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

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any federal legislation therefor, to enter into, act and carry out contracts in connection therewith,

 

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to act as agent for the federal government in connection therewith, or to designate a subordinate

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so to act. Where federal assistance is made available, the project shall be carried out in

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accordance with applicable federal law, the rules and regulations thereunder and the contract or

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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 cultural arts and economy program bond fund and expended as a part thereof. The director

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or his or her designee may also utilize any private funds that may be made available for the

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purposes of this act.

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     SECTION 13. Effective Date. -- Sections 1, 2, 3, and 13 of this act shall take effect

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upon passage. The remaining sections of this act 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 the project

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thereunder.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE ISSUANCE OF BONDS, REFUNDING BONDS AND TEMPORARY

NOTES IN THE TOTAL AGGREGATE OF THIRTY MILLION DOLLARS ($30,000,000)

FOR THE CULTURAL ARTS AND ECONOMY PROGRAM OF THE STATE

***

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     This act would provide for a bond referendum which would authorize the issuance of

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bonds to provide 1:1 matching grants to fund capital improvements for specified cultural

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facilities, including, but not limited to, acquisition, remediation, design, construction, restoration,

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renovation, fire code upgrades, energy efficiency upgrades, accessibility improvements,

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landscaping, furnishing, equipping and completion of facilities for the performing arts in the

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amount of thirty million dollars ($30,000,000), at the election to be held in November, 2014.

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     Sections 1, 2, 3, and 13 of this act would take effect upon passage. The remaining

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sections of this act would take effect if and when the state board of elections certified to the

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secretary of state that a majority of the qualified electors voting on the propositions contained in

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Section 1 hereof have indicated their approval of the project thereunder.

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