2015 -- S 0989

========

LC002859

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC FINANCE

MANAGEMENT BOARD

     Introduced By: Senators DaPonte, Walaska, DiPalma, Ciccone, and Ottiano

     Date Introduced: June 11, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-10.1-3 of the General Laws in Chapter 42-10.1 entitled "Public

Finance Management Board" is hereby amended to read as follows:

     42-10.1-3. Allocation of statewide financing limitation. -- (a) The eighty-seven million

four thousand dollars ($87,004,000) in total recovery zone economic development bond volume

cap allocations granted to the five (5) counties of the State of Rhode Island by the United States

Secretary of the Treasury pursuant to 26 U.S.C. §§ 1400U-1 and 1400U-2 of the Internal Revenue

Code are hereby ceded to the State of Rhode Island for use by the state in connection with the

issuance of general obligation bonds of the state.

      (b) The one hundred thirty million five hundred four thousand dollars ($130,504,000) in

total recovery zone facility bond volume cap allocations granted to the five (5) counties of the

State of Rhode Island by the United States Secretary of the Treasury pursuant to 26 U.S.C. §§

1400U-1 and 1400U-3 are hereby ceded to the public finance management board for subsequent

allocation by the board in accordance with rules and regulations to be promulgated by the board

in accordance with the Administrative Procedures Act, Chapter 35 of this title.

      (c) The ten million nine hundred one thousand dollars ($10,901,000) in total qualified

energy conservation bond volume cap allocation granted to the State of Rhode Island by the

Secretary of the Treasury pursuant to 26 U.S.C. § 54D of the Internal Revenue Code is hereby

allocated to the board for subsequent allocations by the board in accordance with rules and

regulations to be promulgated by the board in accordance with the Administrative Procedures

Act, Chapter 35 of this title, provided, however, that the City of Providence shall be allocated by

the board no less than its portion as provided in 26 U.S.C. § 54D(e)(2)(A) of the Internal Revenue

Code unless the City of Providence determines that the board may further reallocate such portion

to other bond issuers.

      (d) The general assembly hereby finds, declares and designates the entire State of Rhode

Island as a "recovery zone" meeting the standards referenced in 26 U.S.C. § 1400U-1(b)(1) of the

Internal Revenue Code, given the significant unemployment, rate of foreclosures, or general

distress present throughout the State of Rhode Island, and particularly given the geographic

compactness of the state and the resultant interrelated nature of economic conditions and

activities within the state as a whole.

      (e) The board is hereby authorized to allocate tax exempt and taxable bond issuance

capacity and/or federal tax credits among all issuers in the state of Rhode Island, pursuant to 26

U.S.C. § 103, 26 U.S.C. § 145, or pursuant to 26 U.S.C. §§ 1400U-1, 1400U-2, 1400U-3, 54D

and any similar federal legislation heretofore or hereinafter enacted. Such allocation of bond

issuance capacity shall include, but not be limited to, guidelines concerning: tax-supported debt;

state-supported revenue debt; and agency revenue debt in relation to the state's personal income

and annual debt service as a percentage of general revenues. The allocations of tax exempt and

taxable bond issuance capacity and/or federal tax credits shall be pursuant to rules and regulations

to be promulgated by the board in accordance with the Administrative Procedures Act, chapter 35

of this title.

     SECTION 2. This act shall take effect upon passage.

========

LC002859

========

LC002859 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC FINANCE

MANAGEMENT BOARD

***

     This act would add guidelines to be considered by the public finance management board

when allocating bond issuance capacity under this section which guidelines would address tax-

supported debt, state-supported revenue debt, and agency revenue debt in relation to the state's

personal income and annual debt service as a percentage of general revenues.

     This act would take effect upon passage.

========

LC002859

========

LC002859 - Page 3 of 3