2014 -- S 3000

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LC005521

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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 CAPITAL DEVELOPMENT PROGRAM

     

     Introduced By: Senators Goodwin, and Ruggerio

     Date Introduced: May 08, 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 held

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on the Tuesday next after the first Monday in November 2014, there shall be submitted to the

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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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aggregate amount of eighteen million dollars ($18,000,000); for capital projects relating to Roger

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Williams Park and Zoo, to be allocated in the amounts of; fifteen million dollars ($15,000,000)

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for the Roger Williams Park Zoo to renovate and convert the existing education center into a

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world class reptile facility; and three million dollars ($3,000,000) for Roger Williams Park for

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construction and reconstruction of roads, bridges, sidewalks and walkways, be approved, and the

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

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provisions of said act?

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     Project: (1) Roger Williams Park and Zoo $18,000,000

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     Approval of this question will allow for the state of Rhode Island to issue general

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obligation bonds, refunding bonds, and temporary notes in an amount not to exceed eighteen

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million dollars ($18,000,000) for improvements and renovations to the Roger Williams Park Zoo

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and the Roger Williams Park, to be allotted as follows:

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

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

 

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

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

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

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Roger Williams Park Zoo.

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

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

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walkways within Roger Williams Park.”

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     SECTION 2. Ballot labels and applicability of general election laws. The secretary of

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state shall prepare and deliver to the state board of elections ballot labels for the projects provided

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

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of such project to enable voters to approve or reject such proposition. The general election laws,

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

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     SECTION 3. Approval of projects by the 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 as to any project

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

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

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aggregate amount for all such projects as set forth in the proposition provided for in section 1

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hereof which has been approved by the people.

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     SECTION 4. Bonds for capital development program. The general treasurer is hereby

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authorized and empowered with the approval of the governor and in accordance with the

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provisions of this act, to issue from time to time capital development bonds in serial form in the

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

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

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people and designated as "capital development loan of 2014 bonds;” provided, however, that the

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aggregate principal amount of such capital development bonds and of any temporary notes

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outstanding at any one time issued in anticipation thereof pursuant to section 7 hereof shall not

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exceed the total amount for all such projects as have been approved by the people. All provisions

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in this act relating to "bonds" shall also be deemed to apply to "refunding bonds".

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     Capital development bonds issued under this act shall be in denominations of one

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thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency

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of the United States which at the time of payment shall be legal tender for public and private

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debts. These capital development bonds shall bear such date or dates, mature at a specified time

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or times, but not beyond the end of the twentieth (20th) state fiscal year following the state fiscal

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

 

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

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to expressed terms of redemption or recall, with or without premium, be in a form, with or

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without interest coupons attached, carry such registration, conversion, reconversion, transfer, debt

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retirement, acceleration and other provisions as may be fixed by the general treasurer, with the

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approval of the governor, upon each issue of such capital development bonds at the time of each

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issue. Whenever the governor shall approve the issuance of such capital development bonds, he

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

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

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

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

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     SECTION 5. Refunding bonds for 2014 capital development 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 bonds to refund the 2014

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capital development program bonds 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 approved by the people, to be designated as "capital development program loan of

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2014 refunding bonds" (hereinafter "refunding 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 capital development bonds

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issued under this act, except that the refunding bonds may not mature more than twenty (20)

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years from the date of original issue of the capital development bonds being refunded. The

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proceeds of the refunding bonds, exclusive of any premium and accrual interest and net the

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underwriters' cost, and cost of bond insurance, shall, upon their receipt, be paid by the general

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treasurer immediately to the paying agent for the capital development bonds which are to be

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called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they are

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applied to prepay the capital development bonds. While such proceeds are held in trust, they may

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be invested for the benefit of the state in obligations of the United States of America or the state

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of Rhode Island.

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     If the general treasurer shall deposit with the paying agent for the capital development

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bonds the proceeds of the refunding bonds or proceeds from other sources amounts that, when

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invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all

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principal, interest, and premium, if any, on the capital development bonds until these bonds are

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called for prepayment, then such capital development bonds shall not be considered debts of the

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state of Rhode Island for any purpose from the date of deposit of such monies with the paying

 

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agent. The refunding bonds shall continue to 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 capital development program. The general treasurer is directed

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to deposit the proceeds from the sale of capital development bonds issued under this act,

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exclusive of premiums and accrued interest and net the underwriters' cost, and cost of bond

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insurance, in one or more of the depositories in which the funds of the state may be lawfully kept

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in special accounts (hereinafter cumulatively referred to as "such capital development bond

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fund") appropriately designated for each of the portions of the project set forth in section 1 hereof

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which shall have been approved by the people to be used for the purpose of paying the cost of all

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such portions of the project so approved.

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     All monies in the capital development bond fund shall be expended for the purposes

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specified in the proposition provided for in section 1 hereof under the direction and supervision of

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the director of administration (hereinafter referred to as "director"). The director or his or her

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

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this act, including but not limited to, the following authority: (1) To acquire land or other real

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property or any interest, estate or right therein as may be necessary or advantageous to

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accomplish the purposes of this act; (2) To direct payment for the preparation of any reports,

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plans and specifications, and relocation expenses and other costs such as for furnishings,

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equipment designing, inspecting and engineering, required in connection with the implementation

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of any projects set forth in section 1 hereof; (3) To direct payment for the costs of construction,

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rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other

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improvements to land in connection with the implementation of any projects set forth in section 1

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hereof; and (4) To direct payment for the cost of equipment, supplies, devices, materials and labor

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for repair, renovation or conversion of systems and structures as necessary for 2014 capital

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development program bonds or notes hereunder from the proceeds thereof. No funds shall be

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expended in excess of the amount of the capital development bond fund designated for each

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project authorized in section 1 hereof. With respect to the bonds and temporary notes described in

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section 1, the proceeds shall be utilized for the following purposes:

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     Question 1 relating to bonds in the amount of eighteen million dollars ($18,000,000) to

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be provided to the department of environmental management to make grants to the city of

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Providence for improvements and renovations to the Roger Williams Park and the Roger

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Williams Park Zoo to be used with other federal, state, municipal and private funds to be

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allocated as follows:

 

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

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

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

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

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

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Roger Williams Park Zoo.

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

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

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walkways within Roger Williams Park.

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

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this act shall be sold from time to time at not less than the principal amount thereof, in such mode

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and on such terms and conditions as the general treasurer, with the approval of the governor, shall

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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 underwriter's

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discount, which may be received on the sale of the capital development bonds or notes shall

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become part of the Rhode Island Capital Plan Fund of the state, unless directed by federal law or

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regulation to be used for some other purpose.

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     In the event that the amount received from the sale of the capital development bonds or

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notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may

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be used to the extent possible to retire the bonds as the same may become due, to redeem them in

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accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the

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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 capital

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development bonds, if properly executed by the manual or facsimile signatures of officers of the

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

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

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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. All

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bonds and notes issued under the authority of this act shall be exempt from taxation in the state

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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 monies in the capital development fund

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not immediately required for payment pursuant to the provisions of this act may be invested by

 

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the investment commission, as established by chapter 10 of title 35, pursuant to the provisions of

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such chapter; provided, however, that the securities in which the capital development fund is

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invested shall remain a part of the capital development fund until exchanged for other securities;

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and provided further, that the income from investments of the capital development fund shall

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become a part of the general fund of the state and shall be applied to the payment of debt service

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charges of the state, unless directed by federal law or regulation to be used for some other

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purpose, or to the extent necessary, to rebate to the United States Treasury any income from

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investments (including gains from the disposition of investments) of proceeds of bonds or notes

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to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds or

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notes from federal income 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 time

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to time with the approval of the director and the governor, in anticipation of the issue of notes or

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bonds under the authority of this act, to advance to the capital development bond fund for the

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purposes specified in section 6 hereof, any funds of the state not specifically held for any

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particular purpose; provided, however, that all advances made to the capital development bond

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fund shall be returned to the general fund from the capital development bond fund forthwith upon

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the receipt by the capital development fund of proceeds resulting from the issue of notes or bonds

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to the extent of such advances.

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     SECTION 12. Federal assistance and private funds. In carrying out this act, the director,

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or his or her designee, is authorized on behalf of the state, with the approval of the governor, to

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apply for and accept any federal assistance which may become available for the purpose of this

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act, whether in the form of loan or grant or otherwise, to accept the provision of any federal

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

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

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Where federal assistance is made available, the project shall be carried out in accordance with

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applicable federal law, the rules and regulations thereunder and the contract or contracts

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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

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deposited in the capital development bond fund and expended as a part thereof. The director, or

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

 

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of this act.

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

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passage. The remaining sections of this act shall take effect when and if 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 all or any projects

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thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM

***

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

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bonds refunding bonds, and temporary notes of the state in the aggregate amount of eighteen

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million dollars ($18,000,000) for improvements and renovations to the Roger Williams Park and

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Zoo, at the election to be held in November, 2013.

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

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of this act shall take effect when and if, the state board of elections shall certify to the secretary of

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state that a majority of the qualified electors voting on the proposition contained in section 1

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hereof have indicated their approval of the project thereunder.

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LC005521

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