2020 -- H 7676

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LC004762

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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J O I N T   R E S O L U T I O N

     RELATING TO OPEN SPACE AND FOREST CONSERVATION -- CAPITAL

DEVELOPMENT PROGRAM

     Introduced By: Representatives Slater, Blazejewski, Kislak, Diaz, and Bennett

     Date Introduced: February 26, 2020

     Referred To: House Finance

     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 2020, there shall be submitted to

the people for their approval or rejection the following proposition:

     "Shall the action of the general assembly, by a joint resolution passed at the January 2020

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 joint resolution?"

     Project

     Open Space and Forest Conservation $4,000,000. Approval of this question will allow

the State of Rhode Island to issue its general obligation bonds, refunding bonds and temporary

notes in an amount not to exceed four million dollars ($4,000,000) for the state Local Land

Acquisition Matching Grant Program to provide seventy-five percent (75%) matching grants to

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

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

Rhode Island.

     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 joint resolution, 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 2020 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 joint resolution relating to "bonds" shall also be deemed to apply to

"refunding bonds". Capital development bonds issued under this joint resolution 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.

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     SECTION 5. Refunding bonds for 2020 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 joint resolution, to issue from time to time bonds to refund

the 2020 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 2020 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 joint resolution in the same manner as the capital development bonds issued under this

joint resolution, 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 joint resolution.

     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 joint

resolution, 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

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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 joint resolution, 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 joint resolution; (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 purpose:

     Question 1 relating to bonds in the amount of four million dollars ($4,000,000) for open

space and forest conservation purposes to be allocated for the state Local Land Acquisition

Matching Grant Program $4,000,000 Provides seventy-five percent (75%) matching grants to

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

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

Rhode Island.

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

this joint resolution 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

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the governor, shall deem to be for the best interests of the state. Any bonds or notes issued under

the provisions of this joint resolution and coupons on any capital 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 joint resolution 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 joint resolution 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 joint resolution, 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

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issue of bonds or notes to the extent of such advances.

     SECTION 12. Federal assistance and private funds. -- In carrying out this joint

resolution, 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 joint resolution, whether in the form of loan or grant or otherwise, to accept the

provision of any federal legislation therefor, to enter into, joint resolution and carry out contracts

in connection therewith, to resolution as agent for the federal government in connection

therewith, or to designate a subordinate so to resolution. 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 joint resolution 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 joint resolution.

     SECTION 13. This joint resolution 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

J O I N T   R E S O L U T I O N

     RELATING TO OPEN SPACE AND FOREST CONSERVATION -- CAPITAL

DEVELOPMENT PROGRAM

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     This joint resolution would provide for a statewide voter referendum seeking approval of

issuance of bonds, refunding bonds, and temporary notes of the state for the capital project for

open space and forest conservation in an amount not to exceed $4,000,000 and for the state Local

Land Acquisition Matching Grant Program to provide seventy-five percent (75%) matching

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

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

in Rhode Island.

     This joint resolution would take effect upon passage. The remaining sections of this joint

resolution 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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