2018 -- S 2221

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LC004143

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE

BANK

     Introduced By: Senators Pearson, Metts, Gallo, Conley, and Picard

     Date Introduced: February 01, 2018

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 46-12.2-4.2 of the General Laws in Chapter 46-12.2 entitled

"Rhode Island Infrastructure Bank" is hereby amended to read as follows:

     46-12.2-4.2. Establishment of the efficient buildings fund.

     (a) There is hereby authorized and created within the Rhode Island infrastructure bank an

efficient buildings fund for the purpose of providing technical, administrative and financial

assistance to local governmental units for energy efficient and renewable energy upgrades to

public buildings and infrastructure, including, but not limited to, streetlights. The Rhode Island

infrastructure bank shall review and approve all applications for projects to be financed through

the efficient buildings fund.

     The office of energy resources shall promulgate rules and regulations establishing a

project priority list for efficient buildings fund and the process through which a local

governmental unit may submit an application for inclusion of a project on the project priority list.

Upon issuance of the project priority list by the office of energy resources, the project priority list

shall be used by the Rhode Island infrastructure bank to determine the order in which financial

assistance shall be awarded. The Rhode Island infrastructure bank shall promulgate rules and

regulations to effectuate the provisions of this section which may include, without limitation,

forms for financial assistance applications, loan agreements, and other instruments. All rules and

regulations promulgated pursuant to this chapter shall be promulgated in accordance with the

provisions of chapter 35 of title 42. Eligibility for receipt of this financial assistance by a local

governmental unit shall be conditioned upon that local governmental unit reallocating their

remaining proportional QECB allocation to the state of Rhode Island.

     (b) The Rhode Island infrastructure bank shall have all the powers necessary and

convenient to carry out and effectuate the purposes and provisions of this section including,

without limiting the generality of the preceding statement, the authority:

     (1) To receive and disburse such funds from the state and federal government as may be

available for the purpose of the fund subject to the provisions of this section;

     (2) To make and enter into binding commitments to provide financial assistance to

eligible borrowers from amounts on deposit in the fund;

     (3) To levy administrative fees on eligible borrowers as necessary to effectuate the

provisions of this section, provided the fees have been previously authorized by an agreement

between the Rhode Island infrastructure bank and the eligible borrower;

     (4) To engage the services of third-party vendors to provide professional services;

     (5) To establish one or more accounts within the fund; and

     (6) Such other authority as granted to the Rhode Island infrastructure bank under this

chapter.

     (c) Subject to the provisions of this section and to any agreements with the holders of any

bonds of the Rhode Island infrastructure bank or any trustee therefor, amounts held by the Rhode

Island infrastructure bank for the account of the fund shall be applied by the Rhode Island

infrastructure bank, either by direct expenditure, disbursement, or transfer to one or more other

funds and accounts held by the Rhode Island infrastructure bank or maintained under any trust

agreement pertaining to bonds, either alone or with other funds of the Rhode Island infrastructure

bank, to the following purposes:

     (1) To provide financial assistance to local governmental units to finance costs of

approved projects, as set forth in subsection (a), and to refinance the costs of the projects, subject

to such terms and conditions, if any, as are determined by the Rhode Island infrastructure bank;

     (2) To fund reserves for bonds of the Rhode Island infrastructure bank and to purchase

insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit

and costs of reimbursement to the issuers thereof for any payments made thereon or on any

insurance, and to otherwise provide security for, and a source of payment for obligations of the

Rhode Island infrastructure bank, by pledge, lien, assignment, or otherwise as provided in this

chapter;

     (3) To pay expenses of the Rhode Island infrastructure bank in administering the fund;

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     (4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on

loans and obligations outstanding in the event of default thereof; amounts in any account in the

fund may be applied to defaults on loans outstanding to the borrower for which the account was

established and, on a parity basis with all other accounts, to defaults on any loans or obligations

outstanding; and

     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

otherwise as provided in this chapter, any bonds of the Rhode Island infrastructure bank.

     (d) In addition to other remedies of the Rhode Island infrastructure bank under any loan

agreement or otherwise provided by law, the Rhode Island infrastructure bank may also recover

from a borrower, in an action in superior court, any amount due the Rhode Island infrastructure

bank together with any other actual damages the Rhode Island infrastructure bank shall have

sustained from the failure or refusal of the borrower to make the payments or abide by the terms

of the loan agreement.

     (e) The Rhode Island infrastructure bank may create one or more loan loss reserve funds

to serve as further security for any loans made by the Rhode Island infrastructure bank or any

bonds of the Rhode Island infrastructure bank issued to fund energy efficiency improvements in

public buildings in accordance with this section.

     (f) To the extent possible, and in accordance with law, the infrastructure bank Rhode

Island infrastructure bank shall encourage the use of project labor agreements for projects over

ten million dollars ($10,000,000) and local hiring on projects funded under this section.

     (g) Any financial assistance provided by the Rhode Island infrastructure bank to a public

entity for the purpose of retrofitting a school building shall not be subject to the match established

by Rhode Island general laws §§ 16-7-35 to 16-7-47, and shall be made subject to coordination

with the Rhode Island department of education. Notwithstanding any provisions to the contrary in

chapter 7 of title 16, but subject to § 16-7-41(c), any approved project as set forth in subsection

(a) of this section that is also an "approved project" as defined in § 16-7-36 shall be eligible for

school housing aid assistance under §§ 16-7-35 through 16-7-47, and shall include the payment of

interest on bonds, lease revenue bonds, capital leases, or capital reserve funding issued by a local

governmental unit.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE

BANK

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     This act would provide school housing aid for certain projects approved by the state

including funding for payment of interest on certain bonds and leases.

     This act would take effect upon passage.

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