2022 -- H 7739

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LC005368

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO TOWNS AND CITIES -- MUNICIPAL DETENTION FACILITY

CORPORATIONS

     Introduced By: Representatives Giraldo, Williams, Morales, Alzate, Felix, Barros,
Amore, and Biah

     Date Introduced: March 02, 2022

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 45-54 of the General Laws entitled "Municipal Detention Facility

Corporations" is hereby repealed in its entirety.

CHAPTER 45-54

Municipal Detention Facility Corporations

     45-54-1. Corporations created.

     (a) For the purposes stated in this chapter there is incorporated in each city and town a body

corporate and politic which shall be known as the municipal detention facility corporation of the

municipality. The corporation is a public corporation, which is an instrumentality and agency of

the municipality, but has a distinct legal existence from the municipality, and which has purposes

that are consistent with the declaration of purpose set out in this chapter, and which has powers that

are necessary and incidental to the effectuation of the stated purposes.

     (b) The corporation of any city or town shall not have the authority to transact any business

or exercise any powers under this chapter until the city or town council shall by resolution declare

that there is a need for the corporation to function in the city or town.

     (c) The corporation of each city or town shall cease to exist unless the city or town council

passes the resolution specified in subsection (b) prior to December 31, 1991, the corporation of the

municipality has entered into a contract for the operation of a detention facility with the United

States Marshals' Service prior to December 31, 1991, and the site of the detention facility has

received all necessary zoning approvals by December 31, 1991.

     45-54-2. Legislative findings.

     (a) It has been widely reported that the United States has need for a detention facility to be

located within the state of Rhode Island.

     (b) It is declared that a need for economic development projects exists within the state and

that the development of a detention facility would help to meet the need for economic development

and address the detention facility needs of the United States.

     (c) It is further declared that the most efficient and effective method to further the public

policy of the state to encourage the development and construction of a detention facility and other

authorized projects is to permit the establishment of public corporations in each of the cities and

towns of the state with the power to acquire, construct, erect, maintain, operate, manage, and lease

land, buildings, and improvements to be used for a detention facility and other authorized projects.

     (d) Any corporation created under this chapter is subject to the provisions of chapter 2 of

title 38 and chapter 46 of title 42 and, in addition, the directors of the corporation are subject to the

provisions of chapter 14 of title 36.

     45-54-3. Definitions.

     As used in this chapter, the following words and terms have the following meanings, unless

the context indicates another or different meaning or intent:

     (1) "Bonds" means any bonds, interim certificates, notes, debentures, or other evidences of

indebtedness of the corporation issued pursuant to this chapter;

     (2) "Construction" means and includes acquisitions, construction, repair, rehabilitation,

development, and installation, and the term "to construct" means and includes, to acquire, to

construct, to repair, to rehabilitate, to develop, and to install, all in a manner as may be deemed

desirable;

     (3) "Corporation" means the municipal detention facility corporation created under this

chapter;

     (4)(i) "Cost", as applied to any project to be constructed or acquired by the corporation,

includes: the cost of acquisition or construction and, if the project consists of public facilities, the

cost of acquisition of all land, rights-of-way, property, rights, easements, and interests acquired by

the corporation for the construction; the cost of demolishing or removing any buildings or structures

on land so acquired, including the cost of acquiring any lands to which the buildings or structures

may be moved; the cost of all machinery and equipment; financing charges; interest prior to and

during construction and for one year after completion of construction; the cost of estimates and

planning, engineering and legal services, plans, specifications, and surveys; estimates of costs and

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of revenues; other expenses necessary or incident to determining the feasibility or practicability of

the construction; administrative expenses; and other expenses as may be necessary or incident to

the construction, the financing of the construction, and the placing of the project in operation.

     (ii) The word "cost", as applied to any project which the corporation may be authorized to

acquire, means the amount of the purchase price of any public equipment or, if the project consists

of public facilities, the amount of any condemnation award in connection with the acquisition of

the project, and includes: the cost of acquiring all of the capital stock of the corporation owning the

project, if that is the case, and the amount to be paid to discharge all of the obligations of the

corporation in order to vest title to the project, which may be determined by the corporation to be

necessary prior to the financing of the project; interest during the period of construction of the

improvements and for one year thereafter; the cost of all lands, properties, rights, easements,

franchises, and permits acquired; the cost of planning, engineering and legal services, plans,

specifications, and surveys; estimates of cost and of revenues; other expenses necessary or incident

to determining the feasibility or practicability of the acquisition or improvement; administrative

expenses; and other expense as may be necessary or incident to the financing of the acquisition or

improvement and the placing of project in operation by the corporation.

     (iii) The word "cost" includes the cost of purchase and installation of solar, wind, and

renewable energy systems, which include solar thermal, solar, electric, and wind energy systems

that provide heating, cooling, hot water, or electricity to a building, together with equipment for

collection, storage, distribution, and control, including components of a building specifically

designed to retain heat derived from solar energy;

     (5) "Council" means the city or town council of a municipality;

     (6) "Detention facility" means land, buildings, or improvements used for the purposes of

detaining prisoners in accordance with the provisions of this chapter;

     (7) "Director" means one of the members of the corporation appointed in accordance with

the provisions of this chapter;

     (8) "Federal agency" means and includes the United States of America, and any department

of, or any corporation, agency, or instrumentality created, designated, or established by, the United

States of America;

     (9) "Improvement" means and includes extension, enlargement, and improvement, and the

term "to improve" means and includes, to extend, to enlarge, and to improve, all in a manner as

may be deemed desirable;

     (10) "Municipality" means and includes any city or town within the state now existing or

hereafter created;

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     (11) "Owner" means and includes all individuals, incorporated companies, copartnerships,

societies, or associations, and, also, all municipalities and political subdivisions, and all public

agencies and instrumentalities, having any title or interest in any property, rights, easements, or

franchises authorized to be acquired under the provisions of this chapter;

     (12) "Persons" means and includes natural persons, firms, associations, corporations,

business trusts, partnerships, and public bodies;

     (13) "Project" means any detention facility or public equipment which the corporation is

authorized to construct, improve, equip, furnish, maintain, acquire, install, or operate under the

provisions of this chapter, and includes all real and personal property related to it;

     (14) "Public equipment" means and includes all tangible personal property, new or used,

including, without limiting the generality of the preceding, all machinery, equipment,

transportation equipment, maintenance equipment, construction equipment, sanitation equipment,

police, fire, and public safety equipment, and all other things and rights usually included within

that term, including any and all interests in property which are less than full title, as leasehold

interests, security interests, and every other interest or right, legal or equitable; provided, that the

public equipment is related to and used in connection with a detention facility; and

     (15) "State" means and includes the state of Rhode Island, and any office, department,

board, commission, bureau, division, authority, public corporation, agency, or instrumentality of

the state.

     45-54-4. Resolution conclusive as to capacity of corporation.

     In any suit, action, or proceeding involving the validity or enforcement of, or relating to,

any contract by, or on behalf of, a corporation, the corporation is exclusively deemed to be

established and authorized to transact business and exercise its powers upon proof of the adoption

of a resolution by the city or town council declaring the need for the corporation to function.

     45-54-5. Board of directors -- Tenure -- Quorums.

     (a) When the council of a city or town first adopts a resolution as provided for in § 45-54-

1, the elected chief executive officer, in cities and towns having a popularly elected chief executive

officer, shall appoint five (5) persons, at least three (3) of whom shall be resident electors of the

city or town as directors of the corporation. These appointments are subject to approval by the city

or town council. In cities and towns where there is no popularly elected chief executive officer, the

city or town council shall appoint five (5) persons, at least three (3) of whom shall be resident

electors of the city or town as directors of the corporation.

     (b) The directors who are first appointed are designated to serve for terms as follows: two

(2) directors have initial terms of two (2) years; and three (3) directors have initial terms of three

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(3) years, respectively, from the date of their appointment. Thereafter, directors shall be appointed

for a term of five (5) years, except that all vacancies shall be filled for the unexpired term by the

chief executive officer of the city or town, if any, or the city or town council.

     (c) Each director whose term of office expires shall continue to hold office until his or her

successor is appointed and has qualified. Each director before entering upon his or her other duties

will take an oath to support the constitution and laws of the state and the constitution of the United

States and to faithfully and impartially discharge the duties of his or her office. The directors are

subject to removal for cause by the elected chief executive officer, in cities and towns having a

popularly elected chief executive officer, or by the town council, where there is no popularly elected

chief executive officer. The directors receive no compensation for the performance of their duties,

but are reimbursed for their reasonable expenses incurred in carrying out their duties under this

chapter.

     (d) No director or employee of the corporation shall acquire any direct interest in any

project or in any property included or planned to be included in any project, nor shall he or she

have any interest, direct or indirect, in any proposed contract for materials or services to be

furnished in connection with any project. If any director or employee of the corporation owns or

controls an interest, direct or indirect, in any property included or planned to be included in any

project, he or she shall immediately disclose the interest, in writing, to the corporation and that

disclosure shall be entered upon the minutes of the corporation. Failure to disclose the interest

constitutes misconduct in office.

     (e) No elected official of any city or town or director of the corporation shall become an

employee of the corporation for at least two (2) years after leaving public office or ceasing to be a

director of the corporation, as applicable.

     (f) The corporation shall elect one of its directors as chairperson and another as vice-

chairperson and shall also elect a secretary and a treasurer. Three (3) directors of the corporation

constitutes a quorum and the vote of three (3) members is necessary for any action taken by the

corporation. No vacancy in the board of directors of the corporation shall impair the right of the

quorum to exercise all the rights and perform all the duties of the corporation.

     45-54-6. Powers.

     Except to the extent inconsistent with any specific provision of this chapter, the corporation

has the power:

     (1) To sue and be sued, complain, and defend in its corporate name;

     (2) To have a seal, which may be altered at pleasure, and to use the seal by causing it or a

facsimile to be impressed, affixed, or in any other manner reproduced. The seal shall be clearly

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distinguishable from the seal of any city or town;

     (3) To maintain an office at a place or places that it may designate within the boundaries

of the city or town whose council established the corporation;

     (4) To determine the location and character of any project to be financed under the

provisions of this chapter, not inconsistent with local zoning ordinances;

     (5) To purchase, hold, and use any property, real, personal, or mixed, tangible or intangible,

or any interest in it, necessary or desirable for carrying out the purposes for the corporation, and to

mortgage, lease, or sell any of that property;

     (6) To acquire, whether by purchase, lease, gift, exchange, or otherwise, and to construct,

reconstruct, improve, erect, maintain, operate, manage, equip, and furnish, one or more projects,

including all real, personal, or mixed properties which it may deem necessary in connection with

that, and regardless of whether or not the project or projects shall then be in existence or shall then

be partially or wholly constructed;

     (7) To lease, as lessor, to any person, firm, partnership, or corporation, either public or

private, any or all of its projects, and to charge and collect rent for them, and to terminate any lease

upon the failure of the lessee to comply with any of the obligations of the lease;

     (8) To lease, as lessee, any property, real, personal or mixed, or any interest in property;

     (9) To sell, exchange, mortgage, donate, and convey any or all of its properties whenever

it finds an action to be in furtherance of the purposes for which the corporation was established;

     (10) To grant options to purchase any of its projects on whatever terms it may deem

advisable, and to grant options to renew any leases entered into by it in connection with any of its

projects on any terms it may deem advisable;

     (11) To issue bonds of the corporation for the purpose of carrying out any of its purposes,

payable solely from the revenues pledged by the bonds for their payment, and to refund its bonds,

all as provided in this chapter;

     (12) As security for the payment of the principal and interest on any bonds so issued and

any agreements made in connection with that, to mortgage and pledge any or all of its projects, or

any part or parts of them, whether then owned or thereafter acquired, to pledge their revenues and

receipts or from an interest of the bonds, and to assign or pledge the income received by virtue of

the lease or leases;

     (13) To borrow money in anticipation of the issuance of bonds for any of its purposes, and

to issue notes, certificates, or other evidences of the borrowing, upon terms as may be authorized

by resolution of the corporation;

     (14) To make and enter into all contracts, leases, and other agreements necessary or

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incidental to the performance of its duties and the execution of its powers under this chapter;

provided, that those contracts, leases, and other agreements with the federal government or other

federal agency are governed by federal procurement procedures, and other contracts, leases, or

other agreements are governed by the procurement requirements of the municipality, if any.

     (15) Without limitation of the preceding, to borrow money from, to receive and accept

grants for or in aid of construction or acquisition of projects authorized under this chapter from,

and to enter into contracts, leases, or other transactions with, the federal government or any federal

agency; and to receive and accept from the state or any municipality, and from any other source,

aid or contributions of money, property, labor, or other things of value; to be held, used, and applied

only for the purposes for which the grants and contributions may be made;

     (16) To combine for financing purposes any two (2) or more projects authorized to be

acquired or constructed under the provisions of this chapter;

     (17) To employ, in its discretion, attorneys, accountants, architectural and engineering

consultants, and other officers, employees, or agents as may be necessary in its judgment, and to

fix their compensation;

     (18) To acquire in the name of the corporation by purchase or otherwise, on terms and

conditions and in the manner that it may deem proper, or by the exercise of the rights of

condemnation in the manner provided in § 45-54-9, public or private lands, or parts of them or

rights in them, rights-of-way, property, rights, easements, and interests as it may deem necessary

for carrying out the provisions of this chapter; provided, that all public property damaged in

carrying out the powers granted by this chapter is restored or repaired and placed in its original

condition as nearly as practicable;

     (19) To do all other acts and to do any and all things necessary or convenient to carry out

its purposes and exercise the powers given and granted in this chapter;

     (20) To provide for the care, custody, control and transportation of all detainees or inmates

committed to detention or incarceration at any project and to take all necessary steps to maintain

security, safety and order, to prevent escapes from any project, to take all necessary precautions to

prevent the occurrence or spread of any disorder, riot, or insurrection of any project, including, but

not limited to, the development, planning and coordination of emergency riot procedures, and take

suitable measures for the restoration of order;

     (21) To establish and enforce standards for each project;

     (22) To establish and fund training and education programs for employees, under the

direction of the warden, the curriculum for which to be approved annually by the police officers'

commission on standards and training, and to hire, promote, transfer, assign, and retain employees

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for the operation of each project and suspend, demote, discharge, or take other necessary

disciplinary action with regard to such employees;

     (23) To determine the methods, means, and personnel by which the operation of each

project is to be conducted;

     (24) To relieve employees of duty because of lack of work or for other legitimate reasons;

     (25) To investigate grievances of its employees and to inquire into alleged misconduct by

employees;

     (26) To make and promulgate necessary rules and regulations incident to the corporation's

exercise of its powers and the performance of the corporation's duties, including, but not limited

to, rules and regulations regarding nutrition, sanitation, safety, discipline, recreation, religious

services, communication and visiting privileges, classification, education, training, employment,

care, and custody for all persons detained at any project; and

     (27) To delegate any or all of the above referenced powers to its duly designated agents,

servants, consultants or employees at its discretion, who being so designated may exercise said

power(s) on behalf of the corporation.

     45-54-7. Exemption from taxation.

     The exercise of the powers granted by this chapter will be in all respects for the benefit of

the people of the state and for the facilitation of the conduct of their public business, and as the

acquisition, construction, operation, and maintenance by the corporation of the projects defined in

this chapter will constitute the performance of essential governmental functions, the corporation is

not required to pay any taxes or assessments upon the projects or upon any property acquired, or

upon the income from the projects, or any other state or local tax of any kind or description, nor is

the corporation required to pay any recording fee or transfer tax of any kind or description, and the

bonds, issued under the provisions of this chapter, their transfer, and the income from them

(including any profit made on the sale) at all time free from taxation by the state, or any political

subdivision or other instrumentality of the state, excepting estate taxes, and the corporation shall

pay property taxes and assessments on its properties located outside the boundaries of the city or

town whose council established the corporation.

     45-54-8. Acquisition and construction of projects -- Lease or sale -- Conveyance to

corporation -- Request for project.

     (a) In order to benefit the people of the municipality and to provide for their general health

and welfare through economic development, and to maintain the high standards of a detention

facility and public equipment, the corporation is authorized and empowered to acquire and

construct a detention facility and to acquire public equipment; and to maintain, renovate, repair,

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and operate the detention facility and equipment; and to issue revenue bonds of the corporation,

payable from the revenues derived from the leasing of these projects, to finance the projects.

Development of these projects may be initiated by the corporation only upon request of the chief

executive officer, if any, and the city or town council. Any request by the chief executive officer

and the council to initiate a project pursuant to this chapter shall take the form of a proposal by the

chief executive officer approved by the council. If there is no chief executive officer, development

of these projects may be initiated by the corporation only upon the request of the city or town

council. Any request by the city or town council to initiate a project pursuant to this chapter shall

take the form of a resolution. The chief executive officer, if any, or a member of the council

designated by the council, if there is no chief executive officer, is authorized to enter into a contract

of lease for and on behalf of the city or town with the corporation for the leasing of any duly

initiated projects, upon terms and conditions, that are agreed to by the chief executive officer, if

any, or the council, if there is no chief executive officer, and the corporation.

     (b) Without limiting the generality of the preceding, the corporation is expressly

empowered to lease or sell a project or any part of it to the municipality. Any lease by the

corporation to the municipality may be for any period, upon terms and conditions, with or without

an option to purchase, that the corporation may determine.

     (c) The provisions of any charter, other law, or ordinance, general, special, or local, or of

any rule or regulation of the state or any municipality, restricting or regulating in any manner the

power of any municipality to lease (as lessee or lessor) or sell property, real, personal, or mixed,

do not apply to leases and sales made with the corporation pursuant to this chapter.

     (d) Any municipality, notwithstanding any contrary provision of any charter, other law, or

ordinance, general, special or local, or of any rule or regulation of the state or any municipality, is

authorized and empowered to lease, lend, pledge, grant, or convey to the corporation at its request,

upon terms and conditions that the chief executive officer, if any, with the concurrence of the

council, or where no officer exists, the city or town council of the municipality, may deem

reasonable and fair, and without the necessity for any advertisement, order of court, or other action

or formality, any real property or personal property which may be necessary or convenient to

effectuation of the authorized purposes of the corporation, including public roads and other real

property already devoted to public use; and, subject to the aforesaid, the city or town consents to

the use of all lands owned by the city or town which are deemed by the corporation to be necessary

for the construction or operation of any project.

     (e) The corporation and any municipality are authorized and empowered to contract for the

acquisition of any projects or portions of them by the federal government; and to contract with any

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state, federal, or municipal agency for the performance of any services essential or convenient to

its purposes under this chapter.

     45-54-9. Eminent domain proceedings.

     (a) The corporation has the right to acquire any land, or any interest in it, including

development rights, by the exercise of the power of eminent domain, whenever it is determined by

the corporation that the acquisition of the land, or interest, is necessary for the construction or the

operation of any project.

     (b) The power of eminent domain shall be exercised only within the boundaries of the city

or town whose council established the corporation.

     (c) The necessity for acquisition is conclusively presumed upon the adoption by the

corporation of a resolution declaring that the acquisition of the land, or interest in it, described in

the resolution is necessary for the construction or operation of any project. Within six (6) months

thereafter, the corporation shall cause to be filed, in the land evidence records of the city or town

in which the land is located, a copy of the resolution of the corporation, together with a plat of the

land, or interest in it described, and a statement signed by the chairperson of the corporation, that

the land, or interest in it, is taken pursuant to the provisions of this chapter. Thereupon, the

corporation shall file, in the superior court in and for the county in which the land, or interest in it,

lies, a statement of the sum of money estimated by the corporation to be just compensation for the

land taken.

     (d) Upon filing of the copy of the resolution, plat, and statement in the land evidence

records of the city or town, the filing, in the superior court, of the statement, and the depositing in

the superior court, to the use of the person entitled to it, of such a sum as the court determines to

be amply sufficient to satisfy the claims of all persons interested in the land (and the court may, in

its discretion, take evidence on the question to determine the sum to be deposited), title to the land,

or interest in it, shall vest in the corporation in fee simple absolute and the corporation thereupon

may take possession of the land, or interest in it.

     (e) No sum so paid into the court shall be charged with clerk's fees of any nature. After the

filing of the copy, plat, and statement, notice of the taking of the land, or interest in it, shall be

served upon the owners of and persons having an estate in and interest in the land by the sheriff or

the sheriff's deputies of the county in which the land, or interest in it, lies, leaving a true and attested

copy of the description and statement with each of the persons personally, or at their last and usual

place of abode in this state with some person living there, and in case any of the persons are absent

from this state and have no last and usual place of abode in this state occupied by any person, the

copy shall be left with the persons, if any, in charge of or having possession of the land, or interest

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in it, taken of the absent persons if the persons are known to the officer; and after the filing of the

resolution, plat, and statement, the secretary of the corporation shall cause a copy of the resolution

and statement to be published in some newspaper published or having general circulation in the

county where the land, or interest in it, may be located, at least once a week for three (3) successive

weeks. If any persons agree with the corporation for the price of land, or interest in it, so taken, the

court, upon the application of the parties in interest, may order that the sum agreed upon be paid

immediately from the money deposited, as the just compensation to be awarded in the proceeding.

     (f) Any owner of or person entitled to any estate in or interest in any part of the land, or

interest in it, so taken, who cannot agree with the corporation for the price of the land, or interest

in it, so taken, in which he or she is interested, may, within three (3) months after personal notice

of the taking, or, if he or she has no personal notice, within one year from the first publication of

the copy of the resolution and statement, apply, by petition, to the superior court in and for the

county in which the land, or interest in it, lies, setting forth the taking of his or her land or interest

in it, and praying for an assessment of damages by a jury. Upon the filing of the petition, the court

shall cause twenty (20)days' notice of the pendency of the petition to be given to the corporation

with a certified copy, and may proceed after the notice to the trial; and the trial shall determine all

questions of fact relating to the value of the land, or interest in it, and the amount and judgment

shall be entered upon the verdict of the jury and execution shall be issued against the money so

deposited in court and in default against any other property of the corporation. In case two (2) or

more conflicting petitioners make claim to the same land, or to any interests in it, or to different

interests in the same parcel of land, the court, upon motion, shall consolidate their several petitions

for trial at the same time by the same jury, and may frame all necessary issues for the trial; and all

proceedings taken pursuant to the provisions of this chapter shall take precedence over all other

civil matters then pending before the court, or if the superior court, in and for the county in which

the land, or interest in it, lies, is not in session in that county, then the proceedings may be heard in

the superior court for the counties of Providence and Bristol.

     (g) If any lands, or interests in them, in which any minor, or other person not capable in

law to act in his or her own behalf, is interested are taken by the corporation under the provisions

of this chapter, the superior court, upon the filing of any petition by or in behalf of the minor or

other person, may appoint a guardian ad litem for the minor or other person, and the guardian may

appear and be heard in behalf of the minor or other person, and the guardian may also, with the

advice and consent of the superior court and upon those terms that the superior court may prescribe,

release to the corporation all claims for damages for the lands of the minor or other persons, or for

any interest in them. Any lawfully appointed, qualified, and acting guardian or other fiduciary of

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the estate of any minor or other person, with the approval of the court of probate within this state

having jurisdiction to authorize the sale of lands and properties within this state of any minor or

other person, may, before the filing of any petition, agree with the corporation upon the amount of

damages suffered by the minor or other person by any taking of his or her lands or of his or her

interests in any lands, and may, upon receiving that amount, release to the corporation all claims of

damages of the minor or other person for the taking.

     (h) Whenever, from time to time, the corporation has satisfied the court that the amount

deposited with the court is greater than is amply sufficient to satisfy the claims of all persons

interested in the land, the court may order that the amount of any excess, including any interest or

increment on any sums so deposited, shall be repaid to the corporation. Whenever the corporation

has satisfied the court that the claims of all persons interested in the land taken have been satisfied,

the unexpended balance, including any interest or increment on any sums so deposited, shall

immediately be paid to the corporation.

     (i) In any proceedings for the assessment of compensation and damages for land or interest

in it taken or to be taken by eminent domain by the corporation, the following provision is

applicable: At any time during the pendency of any action or proceeding, the corporation or an

owner may apply to the court for an order directing an owner or the corporation, as the case may

be, to show cause why further proceedings should not be expedited, and the court may upon that

application make an order requiring that the hearings proceed and that any other steps be taken with

all possible expedition.

     (j) If any of the land, or interest therein, is devoted to a public use, it may be acquired, and

the taking is effective, provided that no land, or interest in it, belonging to a public utilities

administrator or other officer or tribunal having regulatory power over a public utility is taken. Any

land, or interest in it, already acquired by the corporation may nevertheless be included within the

taking for the purpose of acquiring any outstanding interests in the land.

     45-54-10. Revenue bonds.

     (a) The corporation is authorized to provide by resolution for the issuance, at one time or

from time to time, of revenue bonds of the corporation for the purpose of paying all or part of the

cost of any one or more projects, the construction or acquisition of which is authorized by this

chapter. The principal of and the interest on the bonds are payable from the funds provided for

payment. The bonds of each issue shall be dated, bear interest at the rate or rates that the corporation

determines, payable from time to time, shall mature at a time or times not exceeding fifty (50) years

from their date or dates, as may be determined by the corporation, and may be redeemable before

maturity, at the option of the corporation, at the price or prices and under terms and conditions that

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may be fixed by the corporation prior to the issuance of the bonds. The corporation shall determine

the form of the bonds, including any interest coupons to be attached to them, and shall fix the

denomination or denominations of the bonds and the place or places of payment of the principal

and interest, which may be at any bank or trust company within or without the state. The bonds

shall be signed by the chairperson of the corporation, or a facsimile of the signature shall be

impressed or imprinted on the bonds and attested by the manual or facsimile signature of the

secretary of the corporation, and any coupons attached to the bonds shall bear the facsimile

signature of the chairperson of the corporation. In case any officer whose signature, or the facsimile

of whose signature, appears on any bonds or coupons ceases to be an officer before the delivery of

the bonds, the signature or the facsimile is nevertheless valid and sufficient for all purposes, the

same as if he or she had remained in office until the delivery. The bonds may be issued in coupon

or in registered form, or both, as the corporation may determine, and provision may be made for

the registration of any coupon bonds as to principal alone and, also, as to both principal and interest,

for the reconversion into coupon bonds of any bonds registered and coupon bonds. The corporation

may sell bonds in a manner, either at public or private sale, and for a price, as it may determine will

best effect the purpose of this chapter.

     (b) The proceeds of the bonds of each issue shall be used for the payment of the cost of the

project or projects for which the bonds have been issued, and shall be disbursed in a manner and

under restrictions, if any, that the corporation may provide in the resolution authorizing the issuance

of the bonds or in the trust agreement securing the bonds. If the proceeds of the bonds of any issue,

by error of estimates or otherwise, are less than the cost, additional bonds may in like manner be

issued to provide the amount of the deficit, and, unless otherwise provided in the resolution

authorizing the issuance of the bonds or in the trust agreement securing the bonds, are deemed to

be of the same issue and shall be entitled to payment from the same fund without preference of

priority of the bonds first issued. If the proceeds of the bonds of any issue exceed the cost, the

surplus shall be deposited to the credit of the sinking fund for the bonds or may be applied to the

payment of the cost of any project thereafter financed under the provisions of this chapter.

     (c) Prior to the preparation of definitive bonds, the corporation may, under like restrictions,

issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive

bonds when definitive bonds have been executed and are available for delivery. The corporation

may also provide for the replacement of any bonds which become mutilated or are destroyed or

lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any

department, division, commission, board, bureau, or agency of the state, and without any other

proceedings or the happening of any other conditions or things, other than those proceedings,

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conditions, or things which are specifically required by this chapter.

     45-54-11. Trust agreement.

     In the discretion of the corporation, any bonds issued under the provisions of this chapter

may be secured by a trust agreement by and between the corporation and a corporate trustee, which

may be any trust company or bank having the powers of a trust company within or without the

state. The trust agreement or the resolution providing for the issuance of the bonds may pledge or

assign the revenues to be received and may convey, or mortgage or grant, a security interest in any

project or any part of it or any combination of projects or parts of them. The trust agreement or

resolution providing for the issuance of the bonds may contain provisions for protecting and

enforcing the rights and remedies of the bondholders or noteholders as may be reasonable and

proper and not in violation of law, including: covenants establishing the duties of the corporation

in relation to the acquisition of property and the construction, improvement, maintenance, repair,

operation, and insurance of the project or projects in connection with which the bonds have been

authorized, and in relation to the custody, safeguarding, and application of all moneys; and

conditions or limitations with respect to the issuance of additional bonds. It is lawful for any bank

or trust company incorporated under the laws of the state which may act as depository of the

proceeds of bonds or of revenues to furnish indemnifying bonds or to pledge those securities that

may be required by the corporation. Any trust agreement may establish the rights and remedies of

the bondholders and of the trustee, and may restrict the individual right of action by bondholders.

In addition to the preceding, any trust agreement or resolution may contain any other provisions

that the corporation may deem reasonable and proper for the security of the bondholders. All

expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated

as a part of the corporation's cost of operation and maintenance.

     45-54-12. Revenues.

     (a) The corporation is authorized and empowered to fix, revise, and collect from time to

time, subject to the provisions of this chapter, fees, rentals, and other charges for the use of projects

of, or the services rendered by the corporation to pay:

     (1) The cost of maintaining, repairing, and operating the project or projects or portion or

portions of them; and

     (2) The principal of, premium, if any, and interest on the bonds and notes as the bonds and

notes become due and payable, and to create reserves for these purposes.

     (b) The fees, rentals, and other charges are not subject to supervision or regulation by any

commission, board, bureau, or agency of the state or of any municipality or other political

subdivision of the state.

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     (c) The revenues derived from the project or projects or portion or portions of them, in

connection with which the bonds or notes have been issued, may be pledged as provided in the

resolution or the trust agreement. The pledge is valid and binding from the time when the pledge is

made; the rentals, revenues, or other moneys so pledged and thereafter received by the corporation

are immediately subject to the lien of the pledge without any physical delivery or further act, and

the lien of any pledge is valid and binding against all parties having claims of any kind in tort,

contract, or otherwise against the corporation, whether the parties have notice of claims. Neither

the resolution nor any trust agreement by which a pledge is created need be filed or recorded except

in the records of the corporation.

     (d) The use and disposition of revenues is subject to the provisions of the resolution

authorizing the issuance of the bonds, or of the trust agreement.

     45-54-13. Trust funds.

     All moneys received pursuant to the provisions of this chapter, whether as proceeds from

the sale of bonds or as revenues, are deemed to be trust funds, to be held and applied as may be

provided in the resolution authorizing the issuance of the bonds or the trust agreement securing the

bonds. The corporation shall, in the resolution authorizing the bonds or in the trust agreement

securing the bonds, provide for the payment of the proceeds of the sale of the bonds and the

revenues to be received to a trustee, which is any trust company or bank having the powers of a

trust company within or without the state, which acts as trustee of the bonds, and holds and applies

the funds to the purposes of this chapter, subject to regulations that this chapter and the resolution

or trust agreement may provide.

     45-54-14. Remedies.

     Any holder of bonds issued under the provisions of this chapter, or of any of the coupons

appertaining to the bonds, and the trustee under the trust agreement or the resolution, except to the

extent the rights given by this chapter may be restricted by the trust agreement or the resolution,

may, by civil action, mandamus, or other proceeding, protect and enforce any and all rights under

the laws of the state or granted under this chapter, or under the trust agreement or the resolution

authorizing the issuance of the bonds, and may enforce and compel the performance of all duties

required by this chapter or by the trust agreement or resolution to be performed by the corporation

or by any officer of the corporation, including the fixing, charging, and collection of fees, rentals,

and other charges.

     45-54-15. Negotiable instruments.

     Notwithstanding any of the preceding provisions of this chapter or any recitals in any bonds

issued under the provisions of this chapter, all bonds are deemed to be negotiable instruments under

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the laws of this state.

     45-54-16. Refunding bonds.

     The corporation is authorized to provide for the issuance of refunding bonds of the

corporation for the purpose of refunding any bonds then outstanding which have been issued under

the provisions of this chapter, including the payment of any redemption premium thereon or interest

accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the

bonds and, if deemed advisable by the authority, for the additional purpose of paying all or part of

the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any project. The

proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be

applied, in the discretion of the corporation, to the purchase, retirement at maturity, or redemption

of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may,

pending that application, be placed in escrow. Any escrowed proceeds may be invested and

reinvested in obligations of or guaranteed by the United States of America, or in certificates of

deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the

United States, or an instrumentality of either, maturing at the time or times appropriate to assure

the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding

bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried

out, any balance of the proceeds, and interest, income, and profits, if any, earned or realized on the

investments, may be returned to the corporation for use by it in furtherance of its purposes. The

portion of the proceeds of bonds or notes issued for the additional purpose of paying all or part of

the cost of acquiring, constructing, reconstructing, rehabilitating, developing, or improving any

project may be invested and reinvested in obligations, securities, and other investments consistent

herewith, that are specified in the resolutions under which the bonds are authorized, and which

shall mature not later than the times when the proceeds will be needed for these purposes. The

interest, income, and profits, if any, earned or realized on the investments may be applied to the

payment of all parts of the costs, or may be used by the corporation in furtherance of its purposes.

The issuance of the bonds, the maturities, and other details, the rights of the holders, and the rights,

duties, and obligations of the corporation in respect to all of the above shall be governed by the

provisions of this chapter insofar as the provisions may be applicable.

     45-54-17. Credit of state and political subdivisions not pledged.

     (a) Revenue bonds issued under the provisions of this chapter are not deemed to constitute

a debt or a pledge of the faith and credit of the state or the municipality, but are payable solely from

the funds provided from revenues. All revenue bonds shall contain on the face a statement to the

effect that neither the state nor the municipality nor the corporation is obligated to pay the bonds

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or their interest except from the revenues of the project or projects on account of which the bonds

are issued, and that neither the faith and credit nor the taxing power of the state or the municipality

is pledged to the payment of the principal of or the interest on the bonds.

     (b) All expenses incurred in carrying out the provisions of this chapter are payable solely

from the funds provided under the provisions of this chapter.

     45-54-18. Use of projects.

     The use of the facilities of the corporation and the operation of its business are subject to

the rules and regulations from time to time adopted by the corporation; provided, that the

corporation is not authorized to do anything which will impair the security of the holders of the

obligations of the corporation or violate any agreements with them or for their benefit.

     45-54-19. Capital reserves.

     To assure the continued operation and solvency of the corporation for the carrying out of

its corporate purposes, the corporation may create and establish one or more special funds (referred

to as "capital reserve funds" in this chapter), and may pay into each capital reserve fund:

     (1) Any monies appropriated and made available by the state for the purpose of the fund;

     (2) Proceeds from the sale of notes or bonds to the extent provided in the resolution or

resolutions of the corporation authorizing their issuance; and

     (3) Any other moneys that may be made available to the corporation, for the purpose of the

fund, from any other source.

     45-54-20. Bonds eligible for investment.

     The notes and bonds of the corporation are securities in which all public officers and bodies

of this state and all municipalities and municipal subdivisions, all insurance companies and

associations, and other persons carrying on an insurance business, all banks, bankers, trust

companies, savings banks, and saving associations, including savings and loan associations,

building and loan associations, investment companies, and other persons carrying on a banking

business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other

persons whatsoever who are now or may hereafter be authorized to invest in bonds or other

obligations of the state, may properly and legally invest funds, including capital, in their control or

belonging to them.

     45-54-21. Limitation of powers.

     The state pledges to and agrees with the holders of any bonds or notes issued by the

corporation, that the state will not limit or alter the rights vested in the corporation to fulfill the

terms of any agreements made with the holders until those bonds or notes, together with their

interest, with interest on any unpaid installments of interest, and all costs and expenses in

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connection with any action or proceeding by or on behalf of the holders, are fully met and

discharged. The corporation is authorized to include this pledge and agreement of the state in any

agreement with the holders of the bonds or notes.

     45-54-22. Annual report and audit.

     Within one hundred twenty (120) days from the close of its fiscal year, the corporation

shall make an annual report to the chief executive officer and legislative body of the municipality

of its activities for the preceding fiscal year. Each report shall present a complete operating and

financial statement covering its operations during the year. The corporation shall cause an annual

audit of the books, records, and accounts of the corporation to be made and the costs shall be treated

as a part of the cost of operation.

     45-54-23. Transfers to governmental body.

     When all bonds issued under the provisions of the chapter for each specific project and

their interest have been paid, or a sufficient amount for the payment of all the bonds and their

interest to the maturity of the bonds have been set aside in trust for the benefit of the bondholders,

the specific project financed under the provisions of this chapter may be transferred to the

municipality leasing the project on terms and conditions and for consideration that the corporation

determines. If the corporation is dissolved, all funds of the corporation not required for the payment

of bonds shall be paid to the treasurer of the municipality in which the corporation is established

for the use of the municipality, and all property belonging to the corporation shall be vested in the

municipality and delivered to it. No part of the net earnings of the authority shall be distributed to,

or inure to the benefit of, any private person.

     45-54-24. Applicability of other laws.

     This chapter shall be construed to provide a complete additional and alternative method for

doing the things authorized hereby and shall be regarded as supplemental and in addition to the

powers conferred by other laws. The issuance of all bonds, notes, and other obligations of the

corporation under the provisions of this chapter need not comply with the requirements of any other

provision of any charter or other law, general, special or local, or of any rule or regulation of the

state or the municipality applicable to the issuance of bonds. No proceedings or notice or approval

are required for the issuance of any bonds, or any instrument of security for them, except as

provided in this chapter.

     45-54-25. Liberal construction.

     This chapter, being necessary for the welfare of the state and its inhabitants, shall be

liberally construed to effectuate its purposes.

     45-54-26. Inconsistent provisions.

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     Insofar as the provisions of this chapter are inconsistent with the provisions of any charter

or other law or ordinance, general, special, or local, or of any rule or regulation of the state or any

municipality, the provisions of this chapter are controlling.

     45-54-27. Severability.

     If any one or more sections, clauses, sentences, or parts of this chapter shall, for any reason,

be adjudged unconstitutional or otherwise invalid in any court, that judgment shall not affect,

impair, or invalidate the remaining provisions, but shall be confined in its operation to the specific

provisions so held unconstitutional or invalid; and the inapplicability or invalidity of any section,

clause, or provision of this chapter in any one or more instances or circumstances shall not be taken

to affect or prejudice in any way its applicability or validity in any other instance.

     45-54-28. Construction.

     Whenever the context permits in this chapter, the use of the plural includes the singular

and the plural, and the use of any gender is deemed to include all genders.

     SECTION 2. Title 13 of the General Laws entitled "CRIMINALS - CORRECTIONAL

INSTITUTIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 14

PRIVATELY-OWNED AND OPERATED DETENTION FACILITIES

     13-14-1. Prohibition of privately-owned and operated detention facilities.

     (a) Effective January 1, 2023, the department of corrections or any other law enforcement

agency shall not enter into a contract with a private, for-profit prison facility located in or outside

of the state to provide housing for state prison inmates.

     (b) Effective January 1, 2023, the department of corrections or any other law enforcement

agency shall not renew an existing contract with a private, for-profit prison facility located in or

outside of the state to incarcerate state prison inmates.

     (c) A state prison inmate or other person under the jurisdiction of the department of

corrections shall not be incarcerated in a private, for-profit prison facility after December 31, 2029.

     (d) As used in this section, “private, for-profit prison facility” does not include a facility

that is privately-owned, but is leased and operated by the department of corrections or any other

law enforcement agency.

     (e) Notwithstanding subsections (a) and (b) of this section, the department of corrections

may renew or extend a contract with a private, for-profit facility to provide housing for state prison

inmates in order to comply with the requirements of any court-ordered population cap.

     (f) This section shall not apply to the following:

     (1) Any facility providing rehabilitative, counseling, treatment, mental health, educational

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or medical services to a juvenile that is under the jurisdiction of the juvenile court;

     (2) Any facility providing evaluation or treatment services to a person who has been

detained, or is subject to an order of commitment by a court;

     (3) Any facility providing educational, vocational, medical, or other ancillary services to

an inmate in the custody of, or under the direct supervision of, the department of corrections or any

other law enforcement agency;

     (4) A residential care facility;

     (5) Any school facility used for the disciplinary detention of a pupil;

     (6) Any facility used for the quarantine or isolation of persons for public health;

     (7) Any facility used for the temporary detention of a person detained or arrested by a

merchant, private security guard, or other private person; or

     (8) A private detention facility that is operating pursuant to a valid contract, not to include

any extensions made to or authorized by that contract.

     13-14-2. Severability.

     If any one or more sections, clauses, sentences, or parts of this chapter shall, for any reason,

be adjudged unconstitutional or otherwise invalid in any court, that judgment shall not affect,

impair, or invalidate the remaining provisions, but shall be confined in its operation to the specific

provisions so held unconstitutional or invalid; and the inapplicability or invalidity of any section,

clause, or provision of this chapter in any one or more instances or circumstances shall not be taken

to affect or prejudice in any way its applicability or validity in any other instance.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- MUNICIPAL DETENTION FACILITY

CORPORATIONS

***

     This act would repeal the chapter concerning municipal detention facility corporations and

enact a new chapter prohibiting the operation of private detention facilities and private public

partnerships within the state. Those currently in operation would continue to do so until December

31, 2029. The act would further prohibit the housing of Rhode Island prisoners in other states as

well as the holding of out-of-state prisoners in Rhode Island facilities.

     This act would take effect upon passage.

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