2020 -- S 2741

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LC004527

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

     

     Introduced By: Senators Bell, Quezada, Crowley, Ciccone, and Goodwin

     Date Introduced: March 04, 2020

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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on the Tuesday next after the first Monday in November, 2020, there shall be submitted to the

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people (“people”) of the State of Rhode Island (“state”), for their approval or rejection, the

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following proposition:

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     "Shall the action of the general assembly, by an act passed at the January 2020 session,

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authorizing the issuance of a bond, refunding bond, and/or temporary note of the state of Rhode

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Island for the local capital projects and in the total amount with respect to the projects listed below

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be approved, and the issuance of a bond, refunding bond, and/or temporary note authorized in

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accordance with the provisions of said act?

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     Funding

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     The bond, refunding bond and/or temporary note shall be allocated to each city and town

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based upon the following formula: (population + local jobs)2 / EWAV. For purposes of this formula,

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"population" means the most recent estimates of population for each city and town as reported by

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the United States Department of Commerce, Bureau of the Census, "local job" means and includes

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employment created and provided by a local employer, business, charity, company, government,

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nonprofit organization, public sector organization, private sector organization, service provider or

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voluntary sector organization in a local area for a local population, and "EWAV" means the

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equalized weighted assessed valuation as determined by § 16-7-21.

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     Project

 

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     (1) Municipal roadways and highways $500,000,000

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

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

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dollars ($500,000,000) for the construction and/or improvement of local roadways, highways and

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complete streets. For purposes of this act, "complete streets" are streets that provide safe and

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accessible options for multiple travel modes for people of all ages and abilities, including, but not

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limited to, walking, cycling, public transportation, automobiles and transit.

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     (2) Municipal pedestrian spaces and infrastructure improvement $125,000,000

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

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bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five

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million dollars ($125,000,000) for the construction and/or improvement of municipal pedestrian

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spaces and infrastructure.

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     (3) Municipal Bikeway Development Program $125,000,000

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

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bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five

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million dollars ($125,000,000) for the construction and/or improvement of municipal bicycle

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infrastructure.

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     (4) Municipal parks $250,000,000

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

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bond, refunding bond, and/or temporary note in an amount not to exceed two hundred fifty million

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dollars ($250,000,000) for the construction and/or improvement of local municipal parks."

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

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

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

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description of each such project to enable voters to approve or reject each such proposition. The

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

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

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

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be deemed to be approved by the people. The authority to issue bonds, refunding bonds and/or

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temporary notes of the state shall be limited to the aggregate amount for all such projects as set

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forth in the proposition, which has been approved by the people.

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

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

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provisions of this act to issue capital development bonds in serial form, in the name of and on behalf

 

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of the state of Rhode Island, in amounts as may be specified by the governor in an aggregate

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principal amount not to exceed the total amount for all projects approved by the people and

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designated as "capital development loan of 2020 bonds." Provided, however, that the aggregate

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principal amount of such capital development bonds and of any temporary notes outstanding at any

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one time issued in anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount

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for all such projects approved by the people. All provisions in this act relating to "bonds" shall also

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be deemed to apply to "refunding bonds."

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

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

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

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

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

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

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rates; be payable at designated time or times at specified place or places; be subject to express terms

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of redemption or recall, with or without premium; be in a form, with or without interest coupons

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attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration

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and other provisions as may be fixed by the general treasurer, with the approval of the governor,

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upon each issue of such capital development bonds at the time of each issue. Whenever the

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governor shall approve the issuance of such capital development bonds, the governor’s approval

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shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and

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countersigned by the secretary of state and shall bear the seal of the state. The signature approval

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of the governor shall be endorsed on each bond.

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     SECTION 5. Refunding bonds for 2020 capital development program. -- The general

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

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with the provisions of this act, to issue bonds to refund the 2020 capital development program

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

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

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designated as "capital development program loan of 2020 refunding bonds" (hereinafter "refunding

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bonds"). The general treasurer with the approval of the governor shall fix the terms and form of

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

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

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

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the refunding bonds, exclusive of any premium and accrual interest and net the underwriters’ cost,

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and cost of bond insurance, shall, upon their receipt, be paid by the general treasurer immediately

 

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to the paying agent for the capital development bonds which are to be called and prepaid. The

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paying agent shall hold the refunding bond proceeds in trust until they are applied to prepay the

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capital development bonds. While the proceeds are held in trust, the proceeds may be invested for

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the benefit of the state in obligations of the United States of America or the State of Rhode Island.

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

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

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

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

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

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State of Rhode Island for any purpose starting from the date of deposit of such monies with the

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

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

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"refunding notes" when used in this act.

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

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

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of premiums and accrued interest and net the underwriters’ cost, and cost of bond insurance, in one

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or more of the depositories in which the funds of the state may be lawfully kept in special accounts

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(hereinafter cumulatively referred to as "such capital development bond fund") appropriately

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designated for each of the projects set forth in Section 1 hereof which shall have been approved by

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the people to be used for the purpose of paying the cost of all such projects so approved.

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

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

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the director of administration (hereinafter referred to as "director"). The director, or designee, shall

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be vested with all power and authority necessary or incidental to the purposes of this act, including,

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but not limited to, the following authority:

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     (1) To acquire land or other real property or any interest, estate, or right therein as may be

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necessary or advantageous to accomplish the purposes of this act;

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     (2) To direct payment for the preparation of any reports, plans and specifications, and

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relocation expenses and other costs such as for furnishings, equipment designing, inspecting, and

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engineering, required in connection with the implementation of any projects set forth in Section 1

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hereof;

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     (3) To direct payment for the costs of construction, rehabilitation, enlargement, provision

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of service utilities, and razing of facilities, and other improvements to land in connection with the

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implementation of any projects set forth in Section 1 hereof; and

 

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

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repair, renovation, or conversion of systems and structures as necessary for the 2020 capital

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

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

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authorized in Section 1 hereof.

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

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this act shall be sold at not less than the principal amount thereof, in such mode and on such terms

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and conditions as the general treasurer, with the approval of the governor, shall deem to be in the

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best interests of the state.

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     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 electronic signatures of officers of the

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

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

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for any reason have ceased to hold office.

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

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

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

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for the due payment of the principal and interest on each of such the bonds and notes as the same

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shall become due.

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

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

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investment commission, as established by chapter 10 of title 35, entitled “state investment

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commission,” pursuant to the provisions of such chapter; provided, however, that the securities in

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which the capital development fund is invested shall remain a part of the capital development fund

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until exchanged for other securities; and provided further, that the income from investments of the

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capital development fund shall become a part of the general fund of the state and shall be applied

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to the payment of debt service charges of the state, unless directed by federal law or regulation to

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be used for some other purpose, or to the extent necessary, to rebate to the United States treasury

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any income from investments (including gains from the disposition of investments) of proceeds of

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

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such bonds or notes from federal income taxation.

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

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

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

 

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appropriated.

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

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approval of the director and the governor, in anticipation of the issuance of notes or bonds under

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the authority of this act, to advance to the capital development bond fund for the purposes specified

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in Section 1 hereof, any funds of the state not specifically held for any particular purpose; provided,

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however, that all advances made to the capital development bond fund shall be returned to the

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general fund from the capital development bond fund forthwith upon the receipt by the capital

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development fund of proceeds resulting from the issue of notes or bonds to the extent of such

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advances.

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

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or designee, is authorized on behalf of the state, with the approval of the governor, to apply for and

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accept any federal assistance which may become available for the purpose of this act, whether in

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the form of loan or grant or otherwise, to accept the provision of any federal legislation therefor, to

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enter into, act and carry out contracts in connection therewith, to act as agent for the federal

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government in connection therewith, or to designate a subordinate so to act. Where federal

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

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law, the rules and regulations thereunder and the contract or contracts providing for federal

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assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any

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federal funds received for the purposes of this act shall be deposited in the capital development

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bond fund and expended as a part thereof. The director or designee may also utilize any private

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funds that may be made available for the purposes of this act.

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     SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and 13 of this act shall take effect

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

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

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proposition contained in Section 1 hereof have indicated their approval of all or any projects

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thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CAPITAL DEVELOPMENT PROGRAMS -- STATEWIDE REFERENDUM

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     This act would provide for a statewide voter referendum seeking approval of capital

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development bonds for the improvement of local roadways and highways ($500,000,000);

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pedestrian infrastructure ($125,000,000); the local bikeway development program ($125,000,000);

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and municipal parks ($250,000,000).

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     Sections 1, 2, 3, 11, 12 and 13 of this act would take effect upon passage. The remaining

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

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

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

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