2016 -- S 2446

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LC004565

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO AFFORDABLE HOUSING -- CAPITAL DEVELOPMENT PROGRAM

     Introduced By: Senators Pichardo, Crowley, Jabour, Nesselbush, and Archambault

     Date Introduced: February 11, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Proposition to be submitted to the people. -- At the general election to be

held on the Tuesday next after the first Monday in November 2016, there shall be submitted to

the people for their approval or rejection the following proposition:

      "Shall the action of the general assembly, by an act passed at the January 2016 session,

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

capital projects and in the amount with respect to each such project listed below be approved, and

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

provisions of said act?"

     Project: (1) Affordable Housing $100,000,000

     Approval of this question will allow the State of Rhode Island to issue general obligation

bonds, refunding bonds, and temporary notes in an amount not to exceed one hundred million

dollars ($100,000,000) for affordable housing.

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

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

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

next to the description of each such project to enable voters to approve or reject each such

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

proposition.

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

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

project provided for in Section 1 hereof, said project shall be deemed to be approved by the

people. The authority to issue bonds, refunding bonds and temporary notes of the state shall be

limited to the aggregate amount for all such projects as set forth in the proposition provided for in

Section 1 hereof which has been approved by the people.

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

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

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

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

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

people and designated as "capital development loan of 2016 bonds"; provided, however, that the

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

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

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

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

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

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

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

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

times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in

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

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

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

interest coupons attached, carry such registration, conversion, reconversion, transfer, debt

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

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

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

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

and countersigned by the manual or facsimile signature of the secretary of state and shall bear the

seal of the state or a facsimile thereof. The approval of the governor shall be endorsed on each

bond so approved with a facsimile of their signature.

     SECTION 5. Refunding bonds for 2016 capital development program. -- The general

treasurer is hereby authorized and empowered, with the approval of the governor and in

accordance with the provisions of this act, to issue from time to time bonds to refund the 2016

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capital development program bonds in the name and on behalf of the state, in amounts as may be

specified from time to time by the governor in an aggregate principal amount not to exceed the

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

2016 refunding bonds" (hereinafter "refunding bonds").

      The general treasurer with the approval of the governor shall fix the terms and form of

any refunding bonds issued under this act in the same manner as the capital development bonds

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

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

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

net the underwriters’ cost, and cost of bond insurance, shall, upon their receipt, be paid by the

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

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

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

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

state of Rhode Island.

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

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

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

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

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

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

agent. The refunding bonds shall continue to be a debt of the state until paid.

     The term "bond" shall include "note", and the term "refunding bonds" shall include

"refunding notes" when used in this act.

      SECTION 6. Proceeds of capital development program. -- The general treasurer is

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

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

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

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

fund") appropriately designated for each of the projects set forth in Section 1 hereof which shall

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

projects so approved.

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

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

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

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

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

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

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

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

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

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

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

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

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

for repair, renovation or conversion of systems and structures as necessary for 2016 capital

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

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

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

in Section 1, the proceeds shall be utilized for the following purposes:

     Question 1 relating to bonds in the amount of one hundred million dollars ($100,000,000)

for Affordable Housing shall be allocated as follows:

     Provides funding to the Housing Resources Commission to provide state funds to

promote affordable housing through redevelopment of existing structures, or new construction.

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

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

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

governor, shall deem to be for the best interests of the state.

     Any premiums and accrued interest, net of the cost of bond insurance and underwriters

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

part of the Rhode Island capital fund of the state, unless directed by federal law or regulation to

be used for some other purpose.

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

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

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

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

approval of the governor, shall deem to be for the best interests of the state.

          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

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

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

shall for any reason have ceased to hold office.

          SECTION 8. Bonds and notes to be tax exempt and general obligations of the

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

in the state and shall be general obligations of the state, and the full faith and credit of the state is

hereby pledged for the due payment of the principal and interest on each of such bonds and notes

as the same shall become due.

          SECTION 9. Investment of monies in fund. -- All monies in the capital development

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

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

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

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

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

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

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

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

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

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

notes from federal income taxation.

          SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not

otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and

notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise

appropriated.

          SECTION 11. Advances from general fund. -- The general treasurer is authorized

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

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

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

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

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

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

s to the extent of such advances.

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

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director, or their designee, is authorized on behalf of the state, with the approval of the governor,

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

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

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

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

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

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

providing for federal assistance, notwithstanding any contrary provisions of state law. Subject to

the foregoing, any federal funds received for the purposes of this act shall be deposited in the

capital development bond fund and expended as a part thereof. The director or their designee may

also utilize any private funds that may be made available for the purposes of this act.

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

passage. The remaining sections of this act shall take effect if and when the state board of

elections shall certify to the secretary of state that a majority of the qualified electors voting on

the propositions contained in Section 1 hereof have indicated their approval of the project

thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AFFORDABLE HOUSING -- CAPITAL DEVELOPMENT PROGRAM

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

bonds for Affordable Housing in the amount of one hundred million dollars ($100,000,000), at

the election to be held in November, 2016.

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

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

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

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

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