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 | |
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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: | |
1 | SECTION 1. Proposition to be submitted to the people. -- At the general election to be held |
2 | on the Tuesday next after the first Monday in November, 2020, there shall be submitted to the |
3 | people (“people”) of the State of Rhode Island (“state”), for their approval or rejection, the |
4 | following proposition: |
5 | "Shall the action of the general assembly, by an act passed at the January 2020 session, |
6 | authorizing the issuance of a bond, refunding bond, and/or temporary note of the state of Rhode |
7 | Island for the local capital projects and in the total amount with respect to the projects listed below |
8 | be approved, and the issuance of a bond, refunding bond, and/or temporary note authorized in |
9 | accordance with the provisions of said act? |
10 | Funding |
11 | The bond, refunding bond and/or temporary note shall be allocated to each city and town |
12 | based upon the following formula: (population + local jobs)2 / EWAV. For purposes of this formula, |
13 | "population" means the most recent estimates of population for each city and town as reported by |
14 | the United States Department of Commerce, Bureau of the Census, "local job" means and includes |
15 | employment created and provided by a local employer, business, charity, company, government, |
16 | nonprofit organization, public sector organization, private sector organization, service provider or |
17 | voluntary sector organization in a local area for a local population, and "EWAV" means the |
18 | equalized weighted assessed valuation as determined by § 16-7-21. |
19 | Project |
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1 | (1) Municipal roadways and highways $500,000,000 |
2 | Approval of this question will allow the state of Rhode Island to issue general obligation |
3 | bonds, refunding bonds, and/or temporary notes in an amount not to exceed five hundred million |
4 | dollars ($500,000,000) for the construction and/or improvement of local roadways, highways and |
5 | complete streets. For purposes of this act, "complete streets" are streets that provide safe and |
6 | accessible options for multiple travel modes for people of all ages and abilities, including, but not |
7 | limited to, walking, cycling, public transportation, automobiles and transit. |
8 | (2) Municipal pedestrian spaces and infrastructure improvement $125,000,000 |
9 | Approval of this question will allow the state of Rhode Island to issue a general obligation |
10 | bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five |
11 | million dollars ($125,000,000) for the construction and/or improvement of municipal pedestrian |
12 | spaces and infrastructure. |
13 | (3) Municipal Bikeway Development Program $125,000,000 |
14 | Approval of this question will allow the state of Rhode Island to issue a general obligation |
15 | bond, refunding bond, and/or temporary note in an amount not to exceed one hundred twenty-five |
16 | million dollars ($125,000,000) for the construction and/or improvement of municipal bicycle |
17 | infrastructure. |
18 | (4) Municipal parks $250,000,000 |
19 | Approval of this question will allow the state of Rhode Island to issue a general obligation |
20 | bond, refunding bond, and/or temporary note in an amount not to exceed two hundred fifty million |
21 | dollars ($250,000,000) for the construction and/or improvement of local municipal parks." |
22 | SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of |
23 | state shall prepare and deliver to the state board of elections ballot labels for each of the projects |
24 | provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the |
25 | description of each such project to enable voters to approve or reject each such proposition. The |
26 | general election laws, so far as consistent herewith, shall apply to this proposition. |
27 | SECTION 3. Approval of projects by people. -- If a majority of the people voting on the |
28 | proposition in Section 1 hereof shall vote to approve any project stated therein, said project shall |
29 | be deemed to be approved by the people. The authority to issue bonds, refunding bonds and/or |
30 | temporary notes of the state shall be limited to the aggregate amount for all such projects as set |
31 | forth in the proposition, which has been approved by the people. |
32 | SECTION 4. Bonds for capital development program. -- The general treasurer is hereby |
33 | authorized and empowered, with the approval of the governor, and in accordance with the |
34 | provisions of this act to issue capital development bonds in serial form, in the name of and on behalf |
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1 | of the state of Rhode Island, in amounts as may be specified by the governor in an aggregate |
2 | principal amount not to exceed the total amount for all projects approved by the people and |
3 | designated as "capital development loan of 2020 bonds." Provided, however, that the aggregate |
4 | principal amount of such capital development bonds and of any temporary notes outstanding at any |
5 | one time issued in anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount |
6 | for all such projects approved by the people. All provisions in this act relating to "bonds" shall also |
7 | be deemed to apply to "refunding bonds." |
8 | Capital development bonds issued under this act shall be in denominations of one thousand |
9 | dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the |
10 | United States which at the time of payment shall be legal tender for public and private debts. |
11 | These capital development bonds shall bear such date or dates, mature at specified time or |
12 | times, but not mature beyond the end of the twentieth state fiscal year following the fiscal year in |
13 | which they are issued; bear interest payable semi-annually at a specified rate or different or varying |
14 | rates; be payable at designated time or times at specified place or places; be subject to express terms |
15 | of redemption or recall, with or without premium; be in a form, with or without interest coupons |
16 | attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration |
17 | and other provisions as may be fixed by the general treasurer, with the approval of the governor, |
18 | upon each issue of such capital development bonds at the time of each issue. Whenever the |
19 | governor shall approve the issuance of such capital development bonds, the governor’s approval |
20 | shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and |
21 | countersigned by the secretary of state and shall bear the seal of the state. The signature approval |
22 | of the governor shall be endorsed on each bond. |
23 | SECTION 5. Refunding bonds for 2020 capital development program. -- The general |
24 | treasurer is hereby authorized and empowered, with the approval of the governor, and in accordance |
25 | with the provisions of this act, to issue bonds to refund the 2020 capital development program |
26 | bonds, in the name of and on behalf of the state, in amounts as may be specified by the governor in |
27 | an aggregate principal amount not to exceed the total amount approved by the people, to be |
28 | designated as "capital development program loan of 2020 refunding bonds" (hereinafter "refunding |
29 | bonds"). The general treasurer with the approval of the governor shall fix the terms and form of |
30 | any refunding bonds issued under this act in the same manner as the capital development bonds |
31 | issued under this act, except that the refunding bonds may not mature more than twenty (20) years |
32 | from the date of original issue of the capital development bonds being refunded. The proceeds of |
33 | the refunding bonds, exclusive of any premium and accrual interest and net the underwriters’ cost, |
34 | and cost of bond insurance, shall, upon their receipt, be paid by the general treasurer immediately |
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1 | to the paying agent for the capital development bonds which are to be called and prepaid. The |
2 | paying agent shall hold the refunding bond proceeds in trust until they are applied to prepay the |
3 | capital development bonds. While the proceeds are held in trust, the proceeds may be invested for |
4 | the benefit of the state in obligations of the United States of America or the State of Rhode Island. |
5 | If the general treasurer shall deposit with the paying agent for the capital development |
6 | bonds the proceeds of the refunding bonds, or proceeds from other sources, amounts that, when |
7 | invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all |
8 | principal, interest, and premium, if any, on the capital development bonds until these bonds are |
9 | called for prepayment, then such capital development bonds shall not be considered debts of the |
10 | State of Rhode Island for any purpose starting from the date of deposit of such monies with the |
11 | paying agent. The refunding bonds shall continue to be a debt of the state until paid. |
12 | The term "bond" shall include "note," and the term "refunding bonds" shall include |
13 | "refunding notes" when used in this act. |
14 | SECTION 6. Proceeds of capital development program. -- The general treasurer is directed |
15 | to deposit the proceeds from the sale of capital development bonds issued under this act, exclusive |
16 | of premiums and accrued interest and net the underwriters’ cost, and cost of bond insurance, in one |
17 | or more of the depositories in which the funds of the state may be lawfully kept in special accounts |
18 | (hereinafter cumulatively referred to as "such capital development bond fund") appropriately |
19 | designated for each of the projects set forth in Section 1 hereof which shall have been approved by |
20 | the people to be used for the purpose of paying the cost of all such projects so approved. |
21 | All monies in the capital development bond fund shall be expended for the purposes |
22 | specified in the proposition provided for in Section 1 hereof under the direction and supervision of |
23 | the director of administration (hereinafter referred to as "director"). The director, or designee, shall |
24 | be vested with all power and authority necessary or incidental to the purposes of this act, including, |
25 | but not limited to, the following authority: |
26 | (1) To acquire land or other real property or any interest, estate, or right therein as may be |
27 | necessary or advantageous to accomplish the purposes of this act; |
28 | (2) To direct payment for the preparation of any reports, plans and specifications, and |
29 | relocation expenses and other costs such as for furnishings, equipment designing, inspecting, and |
30 | engineering, required in connection with the implementation of any projects set forth in Section 1 |
31 | hereof; |
32 | (3) To direct payment for the costs of construction, rehabilitation, enlargement, provision |
33 | of service utilities, and razing of facilities, and other improvements to land in connection with the |
34 | implementation of any projects set forth in Section 1 hereof; and |
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1 | (4) To direct payment for the cost of equipment, supplies, devices, materials, and labor for |
2 | repair, renovation, or conversion of systems and structures as necessary for the 2020 capital |
3 | development program bonds or notes hereunder from the proceeds thereof. No funds shall be |
4 | expended in excess of the amount of the capital development bond fund designated for each project |
5 | authorized in Section 1 hereof. |
6 | SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of |
7 | this act shall be sold at not less than the principal amount thereof, in such mode and on such terms |
8 | and conditions as the general treasurer, with the approval of the governor, shall deem to be in the |
9 | best interests of the state. |
10 | Any bonds or notes issued under the provisions of this act and coupons on any capital |
11 | development bonds, if properly executed by the manual or electronic signatures of officers of the |
12 | state in office on the date of execution, shall be valid and binding according to their tenor, |
13 | notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall |
14 | for any reason have ceased to hold office. |
15 | SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. -- All |
16 | bonds and notes issued under the authority of this act shall be exempt from taxation in the state and |
17 | shall be general obligations of the state, and the full faith and credit of the state is hereby pledged |
18 | for the due payment of the principal and interest on each of such the bonds and notes as the same |
19 | shall become due. |
20 | SECTION 9. Investment of monies in fund. -- All monies in the capital development fund |
21 | not immediately required for payment pursuant to the provisions of this act may be invested by the |
22 | investment commission, as established by chapter 10 of title 35, entitled “state investment |
23 | commission,” pursuant to the provisions of such chapter; provided, however, that the securities in |
24 | which the capital development fund is invested shall remain a part of the capital development fund |
25 | until exchanged for other securities; and provided further, that the income from investments of the |
26 | capital development fund shall become a part of the general fund of the state and shall be applied |
27 | to the payment of debt service charges of the state, unless directed by federal law or regulation to |
28 | be used for some other purpose, or to the extent necessary, to rebate to the United States treasury |
29 | any income from investments (including gains from the disposition of investments) of proceeds of |
30 | bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on |
31 | such bonds or notes from federal income taxation. |
32 | SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not |
33 | otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and |
34 | notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise |
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1 | appropriated. |
2 | SECTION 11. Advances from general fund. -- The general treasurer is authorized, with the |
3 | approval of the director and the governor, in anticipation of the issuance of notes or bonds under |
4 | the authority of this act, to advance to the capital development bond fund for the purposes specified |
5 | in Section 1 hereof, any funds of the state not specifically held for any particular purpose; provided, |
6 | however, that all advances made to the capital development bond fund shall be returned to the |
7 | general fund from the capital development bond fund forthwith upon the receipt by the capital |
8 | development fund of proceeds resulting from the issue of notes or bonds to the extent of such |
9 | advances. |
10 | SECTION 12. Federal assistance and private funds. -- In carrying out this act, the director, |
11 | or designee, is authorized on behalf of the state, with the approval of the governor, to apply for and |
12 | accept any federal assistance which may become available for the purpose of this act, whether in |
13 | the form of loan or grant or otherwise, to accept the provision of any federal legislation therefor, to |
14 | enter into, act and carry out contracts in connection therewith, to act as agent for the federal |
15 | government in connection therewith, or to designate a subordinate so to act. Where federal |
16 | assistance is made available, the project shall be carried out in accordance with applicable federal |
17 | law, the rules and regulations thereunder and the contract or contracts providing for federal |
18 | assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any |
19 | federal funds received for the purposes of this act shall be deposited in the capital development |
20 | bond fund and expended as a part thereof. The director or designee may also utilize any private |
21 | funds that may be made available for the purposes of this act. |
22 | SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and 13 of this act shall take effect |
23 | upon passage. The remaining sections of this act shall take effect when and if the state board of |
24 | elections shall certify to the secretary of state that a majority of the qualified electors voting on the |
25 | proposition contained in Section 1 hereof have indicated their approval of all or any projects |
26 | 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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1 | This act would provide for a statewide voter referendum seeking approval of capital |
2 | development bonds for the improvement of local roadways and highways ($500,000,000); |
3 | pedestrian infrastructure ($125,000,000); the local bikeway development program ($125,000,000); |
4 | and municipal parks ($250,000,000). |
5 | Sections 1, 2, 3, 11, 12 and 13 of this act would take effect upon passage. The remaining |
6 | sections of the act would take effect when and if the state board of elections shall certify to the |
7 | secretary of state that a majority of the qualified electors voting on the proposition contained in |
8 | Section 1 hereof have indicated their approval of all or any projects thereunder. |
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