Chapter 06-013

2006 -- S 2598

Enacted 03/29/06

 

A N  A C T

RELATING TO HIGHWAYS -- MOUNT HOPE BRIDGE AUTHORITY

     

     

     Introduced By: Senators Felag, C Levesque, Lenihan, and Gibbs

     Date Introduced: February 09, 2006

 

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Chapter 24-13 of the General Laws entitled "Mount Hope Bridge

Authority" is hereby repealed in its entirety.

     CHAPTER 24-13

Mount Hope Bridge Authority

     24-13-1. Definitions. -- As used in this chapter, the following words and terms shall have

the following meanings, unless the context shall indicate another or different meaning:

      (1) "Authority" means the Mount Hope Bridge authority created by section 24-13-2, or,

if the authority shall be abolished, the board, body or commission succeeding to the principal

functions thereof or upon the powers given by this chapter to the authority shall be given by law.

      (2) "Cost" means the amount necessary to provide funds, with other moneys available

for the purpose, for the acquisition of the Mount Hope Bridge.

      (3) "Mount Hope Bridge" means the existing bridge between the towns of Bristol and

Portsmouth acquired or constructed by the Mount Hope Bridge corporation under the provisions

of an act entitled "An act to incorporate Mount Hope Bridge corporation and to authorize the

corporation to maintain and operate a bridge between the towns of Bristol and Portsmouth,"

passed at the January session, 1932, as amended, and the approaches thereto, and shall embrace

all tollhouses, administration, and other buildings and structures used in connection therewith,

together with all real and tangible personal property, rights, easements, and interests acquired by

the Mount Hope Bridge corporation in connection with the construction and operation of the

bridge.

     24-13-2. Creation of authority -- Composition. -- (a) Within the department of

transportation there is hereby created a body corporate and politic to be known as the "Mount

Hope Bridge authority," which shall function as a unit independent of the director and shall not be

subject to the director's jurisdiction.

      (b) The authority shall consist of five (5) members, one of whom shall be the director of

transportation, ex officio, and four (4) of whom shall be appointed by the governor as provided in

section 24-13-3.

     24-13-3. Appointment of members -- Oath of office. -- (a) In the month of March,

annually, the governor shall appoint one member of the authority to serve for a term of four (4)

years commencing the first day of April then next ensuing, to succeed the member whose term

will then next expire. In the event of a vacancy occurring in the membership, the governor shall

appoint a member for the unexpired term. Any member of the authority shall be eligible for

reappointment.

      (b) Each appointed member of the authority before entering upon his or her duties shall

take an oath to administer the duties of his or her office faithfully and impartially, and the oath

shall be filed in the office of the secretary of state.

     24-13-4. Officers of authority -- Quorum -- Expenses of members. -- The authority

shall elect one of its members as chairperson and another as vice chairperson and shall also elect

a secretary and a treasurer who may or may not be members of the authority. Three (3) members

of the authority shall constitute a quorum and the vote of three (3) members shall be necessary for

any action taken by the authority. No vacancy in the membership of the authority shall impair the

right of a quorum to exercise all the rights and perform all the duties of the authority. The

members of the authority shall not be entitled to compensation for their services but shall be

reimbursed for their actual expenses necessarily incurred in the performance of their duties.

     24-13-5. Power to acquire and operate bridge and issue bonds. -- In order to benefit

the people of the state, to increase their commerce, transportation, and prosperity and to improve

their health and living conditions the authority is hereby authorized and empowered to acquire the

Mount Hope Bridge; to maintain, repair, and operate the bridge; and to issue revenue bonds of the

authority, payable solely from revenue, to finance the bridge.

     24-13-6. Bonds payable from revenue. -- Revenue bonds issued under the provisions of

this chapter shall not be deemed to constitute a debt of the state or of any political subdivision

thereof or a pledge of the faith and credit of the state or of any political subdivision, but shall be

payable solely from the funds provided therefor from revenues. All revenue bonds shall contain

on the face thereof a statement to the effect that neither the state nor the authority shall be

obligated to pay the bonds or the interest thereon except from revenues of the Mount Hope Bridge

on account of which bonds shall be issued, and that neither the faith and credit nor the taxing

power of the state or of any political subdivision thereof is pledged to the payment of the

principal of or the interest on the bonds.

     24-13-7. Expenses payable from funds provided. -- All expenses incurred in carrying

out the provisions of this chapter shall be payable solely from funds provided under the

provisions of this chapter and no liability or obligation shall be incurred by the authority

hereunder beyond the extent to which moneys shall have been provided under the provisions of

this chapter.

     24-13-8. General powers of authority. -- The Mount Hope Bridge authority is hereby

authorized and empowered:

      (1) To issue revenue bonds of the authority for any of its purposes, payable solely from

the tolls and revenues pledged for their payment, and to refund its bonds, all as provided in this

chapter; provided, however, that the initial issue of bonds under the provisions of this chapter

shall provide funds to pay the cost of the Mount Hope Bridge;

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

to issue notes, certificates, or other evidences of borrowing in such form as may be authorized by

resolution of the authority, the notes, certificates, or other evidence of borrowing to be payable in

the first instance from the proceeds of any bonds issued under the provisions of this chapter and

to contain on their face a statement to the effect that neither the state, the authority nor any

municipality or other political subdivision of the state shall be obligated to pay the same or the

interest thereon except from the proceeds of bonds in anticipation of the issuance of which the

notes, certificates, or other evidences of borrowing shall have been issued, or from revenues;

      (3) To fix and revise from time to time, subject to the provisions of this chapter, and to

charge and collect tolls for the use of the Mount Hope Bridge;

      (4) To acquire, hold, and dispose of real and personal property in the exercise of its

powers and the performance of its duties;

      (5) To acquire in the name of the authority by purchase or otherwise, on such terms and

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

condemnation in the manner provided in this chapter, the Mount Hope Bridge;

      (6) To employ, in its discretion, consulting engineers, attorneys, accountants,

construction and financial experts, superintendents, managers, and such other employees and

agents as may be necessary in its judgment, and to fix their compensation;

      (7) To enter into contracts with the department of transportation with respect to the

maintenance and repair of the Mount Hope Bridge and with the Rhode Island state police with

respect to the policing of the Mount Hope Bridge;

      (8) To make and enter into all contracts and agreements necessary or incidental to the

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

      (9) To do all other acts and things necessary or convenient to carry out the powers

expressly granted in this chapter.

     24-13-9. Purchase of bridge by agreement. -- The authority is hereby authorized and

empowered to purchase, solely from funds provided under the authority of this chapter, the

Mount Hope Bridge, upon such terms and conditions and at such price as may be considered by it

to be reasonable and can be agreed upon between it and the owner thereof, and to take title

thereto.

     24-13-10. Purchase of bridge under statutory option. -- In the event the authority shall

not deem it advisable to purchase the Mount Hope Bridge by negotiation as in section 24-13-9

provided, or the terms, conditions and price cannot be agreed upon, then, and in such event, the

authority may exercise the option, in behalf of the state, pursuant to the provisions of section 6 of

the act, entitled "An act to incorporate Mount Hope Bridge corporation and to authorize the

corporation to maintain and operate a bridge between the towns of Bristol and Portsmouth,"

passed at the January session, A.D. 1932, by giving formal notice thereof on or before October

24, 1958, that it will acquire the bridge in the name and on behalf of the state on October 24,

1959, and thereupon the authority shall purchase the bridge pursuant to the act.

     24-13-11. Eminent domain power. -- In addition to the authority granted in sections 24-

13-9 and 24-13-10, the authority shall have the right to acquire the Mount Hope Bridge by the

exercise of the power of eminent domain.

     24-13-12. Filing of eminent domain resolution and statement of sum deemed just. --

The necessity for acquisition by eminent domain shall be conclusively presumed upon the

adoption by the authority of a resolution declaring that the acquisition of the Mount Hope Bridge

is necessary. Within six (6) months thereafter the authority shall cause to be filed in the land

evidence records of the towns of Bristol and Portsmouth copies of the resolution of the authority,

together with a statement, signed by the chairperson of the authority, that the Mount Hope Bridge

is taken pursuant to the provisions of this chapter. Thereupon the authority shall file in the

superior court in and for the county of Providence a statement of the sum of money estimated by

the authority to be just compensation for the bridge thus taken.

     24-13-13. Title and possession of bridge. -- Upon the filing of the copy of the resolution

and statement in the land evidence records of the towns, the filing in the superior court of the

statement, and the depositing in the superior court, to the use of the persons entitled thereto, of

such sum as the court shall determine to be amply sufficient to satisfy the claims of all persons

interested in the bridge (and the court may, in its discretion, take evidence on the question to

determine the sum to be deposited), title to the bridge shall vest in the authority in fee simple

absolute and the authority thereupon may take possession of the bridge.

     24-13-14. Clerk's fee on deposit -- Notice to corporation -- Agreement on price. -- No

sum paid into the court shall be charged with clerk's fees of any nature. After the filing of a

statement, notice of the taking of the bridge shall be served upon the attorney for service of the

Mount Hope Bridge corporation by the sheriff or the sheriff's deputies of Providence County,

leaving a true and attested copy of the statement with the attorney personally, or at the attorney's

office in this state with some person having charge thereof. If the Mount Hope Bridge corporation

shall agree with the authority for the price of the Mount Hope Bridge, 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.

     24-13-15. Jury trial on price. -- In the event the Mount Hope Bridge corporation cannot

agree with the authority for the price of the bridge, so taken, it may, within three (3) months after

notice of the taking, apply by petition to the superior court in and for Providence County, setting

forth the taking of the bridge, and praying for an assessment of damages by a jury. Upon filing of

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

the authority by serving the chairperson or vice chairperson of the authority with a certified copy

thereof, and may proceed after the notice to the trial thereof; and the trial shall determine all

questions of fact relating to the value of the bridge, and the amount thereof, and judgment shall be

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

deposited in court and in default thereof against any other property of the authority, and all

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

civil matters then pending before the court.

     24-13-16. Repayment of excess deposits. -- Whenever, from time to time the authority

has satisfied the court that the amount deposited with the court is greater than is amply sufficient

to satisfy the claims of the Mount Hope Bridge corporation, 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

authority. Whenever the authority has satisfied the court that the claim of the Mount Hope Bridge

corporation has been satisfied, the unexpended balance, including any interest or increment on

any sums so deposited, shall be paid immediately to the authority.

     24-13-17. Issuance and sale of bonds -- Form and contents. -- Subject to the

provisions of sections 24-13-18 and 24-13-19, the authority is hereby authorized to provide by

resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for

the purpose of paying all or a part of the cost of the acquisition of the Mount Hope Bridge. The

principal of and the interest on the bonds shall be payable solely from the funds provided in this

chapter for the payment. The bonds of each issue shall be dated, shall bear interest at the rate or

rates not exceeding five percent (5%) per annum, shall mature at such time or times, not

exceeding fifteen (15) years from their date or dates, as may be determined by the authority, and

may be made redeemable before maturity, at the option of the authority, at such price or prices

and under such terms and conditions as may be fixed by the authority prior to the issuance of the

bonds. The authority shall determine the form of the bonds, including any interest coupons to be

attached thereto, 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 authority or shall

bear the chairperson's facsimile signature, and the official seal of the authority or a facsimile

thereof shall be impressed or imprinted thereon and attested by the secretary of the authority, and

any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the

authority. In case any officer whose signature or a facsimile of whose signature shall appear on

any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature

or a facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer

had remained in office until delivery of the bonds. The bonds may be issued in coupon or in

registered form, or both, as the authority 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 as to both principal and interest,

and for the interchange of registered and coupon bonds. The authority may sell the bonds in such

manner, either at public or private sale, and for such price, as it may determine will best effect the

purposes of this chapter.

     24-13-18. Use of bond proceeds -- Supplementary issues -- Surplus proceeds. -- The

proceeds of the bonds of each issue shall be used solely for the payment of the cost of the Mount

Hope Bridge and shall be disbursed in such manner and under such restrictions, if any, as the

authority may provide in the resolution authorizing the issuance of the bonds or in the trust

agreement, hereinafter mentioned, securing the bonds. If the proceeds of the bonds of any issue,

by error of estimates or otherwise, shall be 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, shall be

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

preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall

exceed the cost, the surplus shall be deposited to the credit of the sinking fund for the bonds.

     24-13-19. Interim receipts or temporary bonds -- Replacement of lost or mutilated

bonds -- Procedure prescribed by chapter exclusive. -- Prior to the preparation of definitive

bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with

or without coupons, exchangeable for definitive bonds when the bonds shall have been executed

and are available for delivery. The authority may also provide for the replacement of any bonds

which shall become mutilated or shall be 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 than those proceedings, conditions or things which are specifically

required by this chapter.

     24-13-20. Fixing and collection of tolls. -- The authority is hereby authorized to fix,

revise, charge, and collect tolls for the use of the Mount Hope Bridge. The tolls shall be so fixed

and adjusted as to provide a fund sufficient with other revenues, if any, to pay (1) the cost of

maintaining, repairing, and operating the bridge and (2) the principal of and the interest on the

bonds as the bonds shall become due and payable, and to create reserves for such purposes.

Except as otherwise provided, the tolls shall not be 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.

     24-13-21. Pledge of revenues -- Sinking fund. -- The tolls and all other revenues

derived from the bridge, except such part thereof as may be necessary to pay the cost of

maintenance, repair, and operation and to provide such reserves therefor as may be provided for

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

bonds, shall be set aside at such regular intervals as may be provided in the resolution or the trust

agreement in a sinking fund which is hereby pledged to, and charged with, the payment of the

principal of and the interest on the bonds as the bonds shall become due, and the redemption price

or the purchase price of bonds retired by call or purchase as provided in the resolution or trust

agreement. The pledge shall be valid and binding from the time when the pledge is made; the tolls

and other revenues or other moneys so pledged and thereafter received by the authority shall

immediately be subject to the lien of the pledge without any physical delivery thereof or further

act, and the lien of any pledge shall be valid and binding as against all parties having claims of

any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties

have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created

need be filed or recorded except in the records of the authority. The use and disposition of

moneys to the credit of the sinking fund shall be subject to the provisions of the resolution

authorizing the issuance of the bonds or of the trust agreement. Except as may otherwise be

provided in the resolution or the trust agreement, the sinking fund shall be a fund for all such

bonds without distinction or priority of one over another.

     24-13-22. Trust funds -- Trustee. -- All moneys received pursuant to the provisions of

this chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be

trust funds to be held and applied solely as provided in this chapter. The authority 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 shall be any trust company or bank having the powers of a trust company within or without

the state, who shall act as trustee of the funds, and hold and apply the bonds to the purposes of

this chapter, subject to such regulations as this chapter and the resolution or trust agreement may

provide.

     24-13-23. Bondholders' remedies. -- Any holder of bonds issued under the provisions of

this chapter or any of the coupons appertaining thereto, and the trustee under the trust agreement,

except to the extent the rights herein given may be restricted by the trust agreement, may, either

at law or in equity, 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 authority or by any officer thereof, including the fixing, charging, and

collecting of tolls.

     24-13-24. Tax exemption. -- The exercise of the powers granted by this chapter shall be

in all respects for the benefit of the people of the state, for the increase of their commerce,

transportation, and prosperity and for the improvement of their health and living conditions, and

as the acquisition, operation and maintenance by the authority of the Mount Hope Bridge will

constitute the performance of essential governmental functions, the authority shall not be required

to pay any taxes or assessments upon the bridge or upon any property acquired or used by the

authority under the provisions of this chapter or upon the income from the bridge, and the bonds

issued under the provisions of this chapter, their transfer and the income therefrom (including any

profit made on the sale thereof) shall at all times be free from taxation within the state.

     24-13-25. Eligibility of bonds for investment. -- Bonds issued by the authority under

the provisions of this chapter are hereby made securities in which all public officers and public

bodies of the state and its political subdivisions, all insurance companies, trust companies,

savings banks, banking associations, investment companies, executors, administrators, trustees

and other fiduciaries may properly and legally invest funds, including capital in their control or

belonging to them. The bonds are hereby made securities which may properly and legally be

deposited with and received by any state or municipal officer or any agency or political

subdivision of the state for any purpose for which the deposit of bonds or obligations is now or

may hereafter be authorized by law.

     24-13-26. Negotiability of bonds. -- Notwithstanding any of the foregoing provisions of

this chapter or any recitals in any bonds issued under the provisions of this chapter, all the bonds

shall be deemed to be negotiable instruments under the laws of this state.

     24-13-27. Refunding and improvement bonds. -- The authority is hereby authorized to

provide for the issuance of revenue refunding bonds of the authority for the purpose of refunding

any bonds then outstanding which shall have been issued under the provisions of this chapter,

including the payment of any redemption premium thereon or any interest accrued or to accrue to

the date of redemption of the bonds, and, if deemed advisable by the authority, for the additional

purpose of constructing improvements, extensions or enlargements of the Mount Hope Bridge in

connection with which the bonds to be refunded shall have been issued. The authority is further

authorized to provide by resolution for the issuance of its revenue bonds for the combined

purpose of (1) refunding any bonds then outstanding which shall have been issued under the

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

interest accrued on or to accrue to the date of redemption of the bonds, and (2) paying all or any

part of the cost of the improvements, extensions or enlargements. The issuance of the bonds, the

maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and

obligations of the authority in respect of the bonds shall be governed by the provisions of this

chapter insofar as this chapter may be applicable.

     24-13-28. Resolutions of authority. -- Any action taken by the authority under the

provisions of this chapter may be authorized by resolution at any regular or special meeting, and

each resolution shall take effect immediately and need not be published or posted.

     24-13-29. Annual report and audit. -- Within the first ninety (90) days of each fiscal

year of the authority, the authority shall make an annual report to the governor and to the general

assembly of its activities for the preceding fiscal year. Each report shall set forth a complete

operating and financial statement covering its operations during the year. The state director of

administration shall cause an annual audit of the books, records, and accounts of the authority to

be made and the cost thereof shall be treated as a part of the cost of operation.

     24-13-30. Penalty for nonpayment of tolls. -- Any person who uses the Mount Hope

Bridge and wilfully refuses to pay the toll provided therefor shall be punished by a fine of not

more than one hundred dollars ($100) or by imprisonment for not more than thirty (30) days, or

both.

     24-13-31. [Repealed.] --

     24-13-32. Severability. -- The provisions of this chapter are severable, and if any of its

provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of

that court shall not affect or impair any of the remaining provisions.

     SECTION 2. This act shall take effect upon passage.

     

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LC01820

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