2015 -- H 5927

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LC001559

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY -- DEBT

MANAGEMENT

     Introduced By: Representatives Edwards, Canario, Gallison, Marshall, and Reilly

     Date Introduced: March 19, 2015

     Referred To: House Finance

     (RI Bridge & Turnpike Authority)

     Joint Resolution as to the Rhode Island Turnpike and Bridge Authority Project submitted

pursuant to Rhode Island General Law chapter 18 of title 35, "Public Corporation Debt

Management," specifically regarding the issuance of bonds by the Rhode Island turnpike and

bridge authority, and amendments to the general laws regarding bond issuance by said authority.

     WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "Authority") is a

public corporation of the State of Rhode Island (the "State"), constituting a public instrumentality

and agency exercising public and essential governmental functions of the State, created by the

General Assembly pursuant to Rhode Island General Laws § 24-12-1, et seq. (as enacted,

reenacted and amended, hereinafter referred to as the "Act"); and

     WHEREAS, The State recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge

and other facilities of the Authority are an essential part of the State's transportation system and

facilitates the tourism industry; and it is the policy of the State that the public welfare and the

further economic development and the prosperity of the State requires the maintenance of such

facilities and the financing thereof; and

     WHEREAS, The Act provides that the Authority shall have the power to charge and

collect tolls for the use of its facilities; and

     WHEREAS, Pursuant to Rhode Island General Laws § 31-36-20, three and one-half cents

($0.035) per gallon of the motor fuel tax is transferred to the Authority to be used for

maintenance, operations, capital expenditures and debt service on any of its projects as defined in

chapter 12 of title 24; and

     WHEREAS, The Act also provides that the Authority shall have the power to acquire,

hold and dispose of real and personal property in the exercise of its powers and performance of its

duties; and

     WHEREAS, The Act authorizes the Authority to make and enter into all contracts and

agreements necessary or incidental to the performance of its duties and the execution of its

powers under the Act, to issue revenue bonds of the Authority for any of its purposes and to

refund its bonds, borrow money in anticipation of the issuance of its bonds, and secure its bonds

and notes by the pledge of its tolls and other revenues; and

     WHEREAS, In furtherance of its corporate purposes, the Authority is authorized to issue

from time to time its negotiable revenue bonds and notes in one or more series in such principal

amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

by the Act, making provision for working capital and a reserve for interest; and

     WHEREAS, Pursuant to Rhode Island General Laws §§ 35-18-3 and 35-18-4 of the

Rhode Island Public Corporation Debt Management Act (as enacted, reenacted and amended, the

"Debt Management Act"), the Authority has requested the approval of the General Assembly of

the Authority's issuance of not more than sixty five million dollars ($65,000,000) Rhode Island

Turnpike and Bridge Authority Revenue Bonds with a term not to exceed thirty (30) years and six

(6) months (together with any notes issued in anticipation of the issuance of bonds, the " Bonds")

to be secured by toll, transfers of motor fuel taxes and/or other revenues, for the purpose of

providing funds to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading

and improvement of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River

Bridge, Mount Hope Bridge, and other projects authorized under the Act, replacement of the

components thereof, working capital, capitalized interest, a debt service reserve and the costs of

issuing and insuring the Bonds (the "Project"); and

     WHEREAS, The Project constitutes essential public facilities directly benefiting the

State; and

     WHEREAS, The Authority is authorized pursuant to § 24-12-28 of the Act to secure its

bonds by a pledge of the tolls and other revenues received by the Authority; and

     WHEREAS, The State shall directly benefit economically from the Project by the repair,

maintenance and improvement of the State transportation infrastructure; and

     WHEREAS, In the event that not all of the Bond proceeds are used to carry out the

specified Project, the Authority will use any remaining funds to pay debt service on the Bonds;

     Now, therefore, be it

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     RESOLVED, That this General Assembly finds that the Project is an essential public

facility and is of a type and nature consistent with the purposes and within the powers of the

Authority to undertake, and hereby approves the Authority's issuance of not more than sixty-five

million dollars ($65,000,000) in Bonds, which amount is in addition to all prior authorizations;

and be it further

     RESOLVED, That the Bonds will be special obligations of the Authority payable from

funds received by the Authority from tolls and other revenues received by the Authority. The total

debt service on the Bonds is estimated to average approximately five million seventy-five

thousand dollars ($5,075,000) per year or approximately one hundred fifty million two hundred

fifty thousand dollars ($ 152,250,000) in the aggregate, prior to the receipt of any federal subsidy

and/or assistance, at an average interest rate of approximately six and three-quarters percent

(6.75%) and an approximately a thirty (30) year maturity; and be it further

     RESOLVED, That the Bonds will not constitute indebtedness of the State or any of its

subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is

pledged.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY -- DEBT

MANAGEMENT

***

     This Joint Resolution authorizes the Rhode Island Turnpike and Bridge Authority to issue

bonds in an amount of not more than sixty-five million dollars ($65,000,000) for a variety of

purposes, including, but not limited to, the rehabilitation, retrofitting, upgrading and improvement

of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge and the Mount

Hope Bridge.

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