2018 -- S 2909

========

LC005649

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

____________

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2018 BOND REFERENDA

     Introduced By: Senators Goodwin, and Ruggerio

     Date Introduced: May 17, 2018

     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 2018, there shall be submitted to

the people ("people") of the state of Rhode Island ("state"), for their approval or rejection, the

following proposition:

     "Shall the action of the general assembly, by an act passed at the January 2018 session,

authorizing the issuance of bonds, refunding bonds, and/or temporary notes of the state of Rhode

Island 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/or temporary notes authorized in

accordance with the provisions of said act?"

     Project

     (1) Rhode Island School Buildings $250,000,000

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

bonds, refunding bonds, and/or temporary notes in an amount not to exceed two hundred fifty

million dollars ($250,000,000) over a five (5) year period, and not to exceed one-hundred million

dollars ($100,000,000) in any one year, to provide direct funding for foundational level school

housing aid and the school building authority capital fund with the amount of the allocation

between the two (2) programs to be determined by the school building authority as designated in

chapter 105, title 16 of the general laws.

     (2) Higher Education Facilities $70,000,000

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

bonds, refunding bonds, and/or temporary notes in an amount not to exceed seventy million

dollars ($70,000,000) to higher education facilities, to be allocated as follows:

     (a) University of Rhode Island Narragansett Bay Campus $45,000,000

     Provides forty-five million dollars ($45,000,000) to fund repairs and construct new

facilities on the University of Rhode Island's Narragansett Bay campus in support of the

educational and research needs for the marine disciplines.

     (b) Rhode Island College School of Education and Human Development $25,000,000

     Provides twenty-five million dollars ($25,000,000) to fund the renovation of Horace

Mann Hall on the campus of Rhode Island College, which houses the School of Education and

Human Development.

     (3) Green Economy and Clean Water $55,500,000

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

bonds, refunding bonds, and/or temporary notes in an amount not to exceed fifty-five million five

hundred thousand dollars ($55,500,000) for environmental and recreational purposes, to be

allocated as follows:

     (a) Coastal Resiliency and Public Access Projects $5,000,000

     Provides five million dollars ($5,000,000) for up to seventy-five percent (75%) matching

grants to public and nonprofit entities for restoring and/or improving resiliency of vulnerable

coastal habitats, and restoring rivers and stream floodplains. These funds are expected to leverage

significant matching funds to support local programs to improve community resiliency and public

safety in the face of increased flooding, major storm events, and environmental degradation.

     (b) Capital for Clean Water and Drinking Water $6,100,000

     Provides six million one hundred thousand dollars ($6,100,000) for clean water and

drinking water infrastructure improvements. Projects range from wastewater treatment upgrades

and storm water quality improvements to combine sewer overflow abatement projects.

     (c) Wastewater Treatment Facility Resilience Improvements $5,000,000

     Provides five million dollars ($5,000,000) for up to fifty percent (50%) matching grants

for wastewater treatment facility resiliency improvements for facilities vulnerable to increased

flooding, major storm events and environmental degradation.

     (d) Dam Safety $4,400,000

     Provides four million four hundred thousand dollars ($4,400,000) for repairing and/or

removing state-owned dams.

     (e) State Recreation Projects Program $10,000,000

LC005649 - Page 2 of 11

     Provides ten million dollars ($10,000,000) for capital improvements to state recreational

facilities, including Fort Adams State Park.

     (f) State Bikeway Development Program $5,000,000

     Provides five million dollars ($5,000,000) for the state to design, repair, and construct

bikeways, including the East Bay bike path.

     (g) Brownfield Remediation and Economic Development $4,000,000

     Provides four million dollars ($4,000,000) for up to eighty percent (80%) matching grants

to public, private, and/or nonprofit entities for brownfield remediation projects.

     (h) Local Recreation Projects $5,000,000

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

growing needs for active recreational facilities.

     (i) Access to Farmland $2,000,000

     Provides two million dollars ($2,000,000) to protect the state's working farms through the

state farmland access program and the purchase of development rights by the agricultural lands

preservation commission

     (j) Local Open Space $2,000,000

     Provides two million dollars ($2,000,000) for up to fifty percent (50%) matching grants

to municipalities, local land trusts and nonprofit organizations to acquire fee-simple interest,

development rights, or conservation easements on open space and urban parklands.

     (k) Dredging – Downtown Providence Rivers $7,000,000

     Provides seven million dollars ($7,000,000) for the state to obtain additional dredging

analysis and the dredging of the Downtown Providence Rivers from:

     The Woonasquatucket River from I-95 north of Providence Place Mall to its confluence

with the Providence River; the Moshassuck River from Smith Street to its confluence with the

Providence River; and the Providence River from Steeple Street to Point Street; and dredging a

sediment basin upstream of the Providence Place Mall and I-95 for approximately six hundred

feet (600').

     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

LC005649 - Page 3 of 11

the proposition in section 1 hereof shall vote to approve any project stated therein, said project

shall be deemed to be approved by the people. The authority to issue bonds, refunding bonds

and/or temporary notes of the state shall be limited to the aggregate amount for all such projects

as set forth in the proposition, 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 capital development bonds in serial form, in the name of and on

behalf of the state of Rhode Island, in amounts as may be specified 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 2018 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 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 mature beyond the end of the twentieth state fiscal year following the fiscal year in

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

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

express 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 by 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, the

governor's approval shall be certified to the secretary of state; the bonds shall be signed by the

general treasurer and countersigned by the secretary of state and shall bear the seal of the state.

The signature approval of the governor shall be endorsed on each bond.

     SECTION 5. Refunding bonds for 2018 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 bonds to refund the 2018 capital development

program bonds, in the name of and on behalf of the state, in amounts as may be specified by the

governor in an aggregate principal amount not to exceed the total amount approved by the people,

LC005649 - Page 4 of 11

to be designated as "capital development program loan of 2018 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, the

proceeds 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 starting 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 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,

LC005649 - Page 5 of 11

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 the 2018 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 used for the following purposes:

     Question 1, relating to bonds in the amount of two hundred fifty million dollars

($250,000,000) to provide funding for the construction, renovation, and rehabilitation of the

state's public schools.

     Question 2, relating to bonds in the amount of seventy million dollars ($70,000,000) to

provide funding for higher education facilities to be allocated as follows:

     (a) Rhode Island College School of Education and Human Development $25,000,000

     Provides twenty-five million dollars ($25,000,000) to renovate Horace Mann Hall on the

campus of Rhode Island College in Providence. Horace Mann Hall houses the Feinstein School of

Education and Human Development, the historical leader in producing Rhode Island's public

school teachers. The facility has exceeded its useful life with no major renovations since it was

constructed in 1969. The renovation will allow the Feinstein School of Education and Human

Development to ensure its curriculum and programming are among the best in the nation and

create a top learning environment for students.

     (b) University of Rhode Island Narragansett Bay Campus $45,000,000

     Provides forty-five million dollars ($45,000,000) to renovate, build additions, and

construct new facilities, including a new Ocean Innovation Center building, to support the

ongoing and evolving educational and research needs in marine biology, oceanography, oceanic

instrumentation and other marine disciplines at the Narragansett Bay Campus. Constructing new

LC005649 - Page 6 of 11

facilities will allow the university to accommodate a new one hundred twenty-five million dollars

($125,000,000) National Science Foundation federal research vessel and other university-

supported research vessels at the university's Narragansett Bay Campus facilities.

     Question 3, relating to bonds in the amount of exceed fifty-five million five hundred

thousand dollars ($55,500,000) for environmental and recreational purposes, to be allocated as

follows:

     (a) Coastal Resiliency and Public Access Projects $5,000,000

     Provides five million dollars ($5,000,000) for up to seventy-five percent (75%) matching

grants to public and nonprofit entities for restoring and/or improving resiliency of vulnerable

coastal habitats, and restoring rivers and stream floodplains.

     (b) Capital for Clean Water and Drinking Water $6,100,000

     Provides six million one hundred thousand dollars ($6,100,000) for clean water and

drinking water infrastructure improvements such as from wastewater treatment upgrades and

storm water quality improvements to combined sewer overflow abatement projects.

     (c) Wastewater Treatment Facility Resilience Improvements $5,000,000

     Provides five million dollars ($5,000,000) for up to fifty percent (50%) matching grants

for wastewater treatment facility resiliency improvements for facilities vulnerable to increased

flooding, major storm events, and environmental degradation.

     (d) Dam Safety $4,400,000

     Provides four million four hundred thousand dollars ($4,400,000) for repairing and/or

removing state-owned dams.

     (e) State Recreation Projects Program $10,000,000

     Provides ten million dollars ($10,000,000) for capital improvements to state recreational

facilities, including Fort Adams State Park.

     (f) State Bikeway Development Program $5,000,000

     Provides five million dollars ($5,000,000) for the state to design, repair, and construct

bikeways, including the East Bay bike path.

     (g) Brownfield Remediation and Economic Development $4,000,000

     Provides four million dollars ($4,000,000) for up to eighty percent (80%) matching grants

to public, private, and/or nonprofit entities for brownfield remediation projects.

     (h) Local Recreation Projects $5,000,000

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

growing needs for active recreational facilities.

LC005649 - Page 7 of 11

     (i) Access to Farmland $2,000,000

     Provides two million dollars ($2,000,000) to protect the state's working farms through the

state farmland access program and the purchase of development rights by the agricultural lands

preservation commission

     (j) Local Open Space $2,000,000

     Provides two million dollars ($2,000,000) for up to fifty percent (50%) matching grants

to municipalities, local land trusts and nonprofit organizations to acquire fee-simple interest,

development rights, or conservation easements on open space and urban parklands.

     (k) Dredging – Downtown Providence Rivers $7,000,000

     Provides seven million dollars ($7,000,000) for the state to obtain additional dredging

analysis and the dredging of the Downtown Providence Rivers from:

     The Woonasquatucket River from I-95 north of Providence Place Mall to its confluence

with the Providence River; the Moshassuck River from Smith Street to its confluence with the

Providence River; and the Providence River from Steeple Street to Point Street; and dredging a

sediment basin upstream of the Providence Place Mall and I-95 for approximately six hundred

feet (600').

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

of this act shall be sold 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

in the best interests of the state.

     Any premiums and accrued interest, net of the cost of bond insurance and underwriter's

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

become part of the Rhode Island capital plan 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 in the best interests of the state.

     Any bonds or notes issued under the provisions of this act and coupons on any capital

development bonds, if properly executed by the manual or electronic 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.

LC005649 - Page 8 of 11

     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, entitled "state investment

commission," 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, with

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

extent of such advances.

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

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

LC005649 - Page 9 of 11

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. Sections 1, 2, 3, 11 and 12 of this act shall take effect upon passage. The

remaining sections of this act shall take effect when and if the state board of elections shall certify

to the secretary of state that a majority of the qualified electors voting on the proposition

contained in section 1 hereof have indicated their approval of all or any projects thereunder.

========

LC005649

========

LC005649 - Page 10 of 11

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2018 BOND REFERENDA

***

     This act would submit the state's 2018 capital development program requesting the

issuance of general obligation bonds totaling three hundred seventy-five million five hundred

thousand dollars ($375,500,000) for approval of the electorate at the general election to be held

on November 6, 2018.

     Sections 1, 2, 3, 11 and 12 of this act would take effect upon passage. The remaining

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

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

section 1 hereof have indicated their approval of all or any projects thereunder.

========

LC005649

========

LC005649 - Page 11 of 11