SECTION 1. Proposition to be submitted to the people. -- At the general election to be held on the Tuesday next after the first Monday in November, 2000, there shall be submitted to the people for their approval or rejection the following proposition:

"Shall the action of the general assembly, by an act passed at the January session 2000, authorizing the issuance of bonds and refunding bonds of the state for the capital projects and in the amount with respect to each such project listed below be approved, and the issuance of bonds and refunding bonds authorized in accordance with the provisions of said act?"

Project

(1) Environmental Management $34,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds and refunding bonds for environmental and recreational purposes, specifically the acquisition of open space for preservation and ground water protection and the development of public recreational facilities.

(2) Rhode Island Clean Water Finance Agency-Water Quality Mgmt. $60,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds and refunding bonds to provide funding for the Rhode Island Clean Water Finance Agency which will be leveraged with federal and state capitalization grants to provide loans at a subsidized rate of zero percent to municipalities, governmental entities and nongovernmental entities for the construction, repair, equipping and upgrading of water pollution abatement projects including, but not limited to, wastewater treatment facilities, nutrient reduction, sewers, combined sewer overflow systems, restoration of aquatic habitats, and stormwater treatment and to provide subsidized interest rate loans to community water systems, both privately and publicly owned, and non-profit non-community water systems for drinking water projects.

(3) Transportation $62,510,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds and refunding bonds to match federal funds and fund improvements to the state's highways, roads and bridges, and to purchase buses for the Rhode Island Public Transit Authority's fleet.

(4) Higher Education $36,950,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds and refunding bonds to fund improvements to the University of Rhode Island, Rhode Island College and the Community College of Rhode Island.

(5) Heritage Harbor $25,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds and refunding bonds for the creation, design, construction, furnishing, and equipping of the Heritage Harbor Museum.

SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of state shall prepare and deliver to the state board of elections ballot labels for each of the projects provided for in section 1 hereof with the designations "approve" or "reject" provided next to the description of each such project to enable voters to approve or reject each such proposition. The general election laws, so far as consistent herewith, shall apply to this proposition.

SECTION 3. Approval of projects by people. -- If a majority of the people voting on the proposition provided for in section 1 hereof shall vote to approve the proposition as to any project provided for in section 1 hereof, said project shall be deemed to be approved by the people. The authority to issue bonds and refunding bonds of the state shall be limited to the aggregate amount for all such projects as set forth in the proposition provided for in section 1 hereof which has been approved by the people.

SECTION 4. Bonds for capital development program. -- The general treasurer is hereby authorized and empowered with the approval of the governor and in accordance with the provisions of this act, to issue from time to time capital development bonds in serial form in the name and on behalf of the state in amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount for all projects approved by the people and designated as "capital development loan of 2000 bonds" provided, however, that the aggregate principal amount of such capital development bonds outstanding at any one time issued in anticipation thereof pursuant to section 7 hereof shall not exceed the total amount for all such projects as have been approved by the people. All provisions in this act relating to "bonds" shall also be deemed to apply to "refunding bonds".

Capital development bonds issued under this act shall be in denominations of one thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the United States which at the time of payment shall be legal tender for public and private debts. These capital development bonds shall bear such date or dates, mature at specified time or times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in which they are issued, bear interest payable semi-annually at a specified rate or different or varying rates, be payable at designated time or times at specified place or places, be subject to expressed terms of redemption or recall, with or without premium, be in a form, with or without interest coupons attached, carry such registration, conversion, reconversion, transfer, debt retirement, acceleration and other provisions as may be fixed by the general treasurer, with the approval of the governor, upon each issue of such capital development bonds at the time of each issue. Whenever the governor shall approve the issuance of such capital development bonds, he or she shall certify approval to the secretary of state; the bonds shall be signed by the general treasurer and countersigned by the manual or facsimile signature of the secretary of state and shall bear the seal of the state or a facsimile thereof. The approval of the governor shall be endorsed on each bond so approved with a facsimile of his or her signature.

SECTION 5. Refunding bonds for 2000 capital development program. -- The general treasurer is hereby authorized and empowered, with the approval of the governor and in accordance with the provisions of this act, to issue from time to time bonds to refund the 2000 capital development program bonds in the name and on behalf of the state, in amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount approved by the people, to be designated as "capital development program loan of 2000 refunding bonds" (hereinafter "refunding bonds").

The general treasurer with the approval of the governor shall fix the terms and form of any refunding bonds issued under this act in the same manner as the capital development bonds issued under this act, except that the refunding bonds may not mature more than twenty (20) years from the date of original issue of the capital development bonds being refunded.

The proceeds of the refunding bonds, exclusive of any premium and accrued interest, shall, upon their receipt, be paid by the general treasurer immediately to the paying agent for the capital development bonds which are to be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they are applied to prepay the capital development bonds. While such proceeds are held in trust, they may be invested for the benefit of the state in obligations of the United States of America or the state of Rhode Island.

If the general treasurer shall deposit with the paying agent for the capital development bonds the proceeds of the refunding bonds or proceeds from other sources amounts that, when invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all principal, interest, and premium, if any, on the capital development bonds until these bonds are called for prepayment, then such capital development bonds shall not be considered debts of the state of Rhode Island for any purpose from the date of deposit of such moneys with the paying agent. The refunding bonds shall continue to be a debt of the state until paid.

SECTION 6. Proceeds of capital development program. -- The general treasurer is directed to deposit the proceeds from the sale of capital development bonds issued under this act, exclusive of premiums and accrued interest, in one or more of the depositories in which the funds of the state may be lawfully kept in special accounts (hereinafter cumulatively referred to as "such capital development bond fund") appropriately designated for each of the projects set forth in section 1 hereof which shall have been approved by the people to be used for the purpose of paying the cost of all such projects so approved.

All monies in the capital development fund shall be expended for the purposes specified in the proposition provided for in section 1 hereof under the direction and supervision of the director of administration (hereinafter referred to as "director"). The director or his delegate shall be vested with all power and authority necessary or incidental to the purposes of this act, including, but not limited to, the following authority: (a) to acquire land or other real property or any interest, estate or right therein as may be necessary or advantageous to accomplish the purposes of this act; (b) to direct payment for the preparation of any reports, plans and specifications, and relocation expenses and other costs such as for furnishings, equipment designing, inspecting and engineering, required in connection with the implementation of any projects set forth in section 1 hereof; (c) to direct payment for the costs of construction, rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other improvements to land in connection with the implementation of any projects set forth in section 1 hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor for repair, renovation or conversion of systems and structures as necessary for 2000 capital development program bonds or notes hereunder from the proceeds thereof. No funds shall be expended in excess of the amount of the capital development bond fund designated for each project authorized in section 1 hereof. With respect to the bonds described in section 1, the proceeds shall be utilized for the following purposes:

Question 1 relating to bonds for environmental and recreational purposes shall be allotted as follows:

(a) Open Space $ 23,500,000

Provide funds for the Department of Environmental Management to purchase or otherwise permanently protect, through the purchase of fee title, development rights, conservation easements and public recreation easements, greenways and other open space, agricultural lands, forested lands, state parks, consistent with the "Greenways, Greenspace" element of the State Guide Plan and the Department of Environmental Management Land Protection Plan, and for the purchase of development rights by the Agricultural Land Preservation Commission to preserve farmland throughout the state, and $1,300,000 for acquisition of land through the purchase of fee title, development rights, and conservation easements by the State of Rhode Island Water Resources Board for the protection of public drinking water supplies. The director of the Department of Environmental Management shall award up to $11,400,000 to communities and local land trusts, conservation commissions and other environmental non-profit organizations to provide matching funds for purposes which include, but are not limited to acquisitions, easements, and development rights on land consistent with the State Guide Plan and Local Comprehensive Plans.

(b) Recreational Development $ 9,000,000

Provide funds for the design, development, expansion and renovation of new or existing public recreational facilities and parks. Up to $3,000,000 of these funds shall be available for the development and/or renovation of state public recreational facilities. An amount not to exceed $6,000,000 shall be available to municipalities to provide grants on a matching basis, which funds shall be allocated as follows:

(i) Distressed Community Grants $1,000,000

(ii) Recreation Development Grants $5,000,000

(c) Roger Williams Park Restoration $1,500,000

Provide funds for improvements and renovations at Roger Williams Park.

Question 2 relating to bonds totaling $60,000,000 for projects to improve the state's water quality shall be deposited by the Rhode Island Clean Water Finance Agency in one or more of its revolving loan funds which, when leveraged with federal and state capitalization grants, will provide funding to municipalities, governmental entities and nongovernmental entities for water pollution abatement projects and drinking water projects. Not less than $70,000,000 in leveraged funds will be allocated for loans at a subsidized rate of zero percent to the Narragansett Bay Commission to fund costs associated with combined sewage overflow projects. Not more than $3,000,000 of the bond proceeds shall be allocated to the Rhode Island Clean Water Finance Agency to provide state matching funds to obtain federal capitalization grants available to the state, enabling the Rhode Island Clean Water Finance Agency to provide subsidized interest rate loans to community water systems, both privately and publicly owned, and non-profit non-community water systems for drinking water projects. The Rhode Island Clean Water Finance Agency will use the remainder of the bond proceeds to provide loans at a subsidized rate of zero percent to fund water pollution abatement projects pursuant to chapter 46-12.2 of the Rhode Island General Laws, including but not limited to, wastewater treatment facilities; sludge improvement projects; the construction of sewers to relieve areas that should no longer be served by septic systems; planning/feasibility studies to support water quality restoration projects including stormwater treatment, nutrient reduction, and other similar water pollution abatement projects; restoration of aquatic habitats; and implementation of stormwater treatment and other nonpoint source water pollution abatement projects.