Chapter
016
2008 -- H 7852
Enacted 05/21/08
A N A C T
RELATING TO TOWNS AND
CITIES -- HEALTH AND EDUCATIONAL BUILDING CORPORATION
Introduced By: Representative Gordon D. Fox
Date Introduced: February 26, 2008
It is enacted
by the General Assembly as follows:
SECTION
1. Section 45-38.1-3 of the General Laws in Chapter 45-38.1 entitled
"Health
And
Educational Building Corporation" is hereby amended to read as follows:
45-38.1-3.
Definitions. -- As used in this chapter, the following words and terms
have the
following
meaning unless the context indicates another or different meaning or intent:
(1) "Bonds" means bonds of the corporation issued under the
provisions of this chapter,
including
refunding bonds, notwithstanding that the bonds may be secured by mortgage or
the
full
faith and credit of the corporation or the full faith and credit of a
participating institution for
higher
education or of a participating health care provider or any other lawfully
pledged security
of a
participating educational institution or child day care center or of a
participating health care
provider;
(2) "Borrower" means a student or a parent who has received or agreed
to pay an
education
loan;
(3) "Cooperative hospital service organization" means a corporation
created pursuant to
chapter
6 of title 7, which meets the requirements of Section 501(e) of the Internal
Revenue Code
of 1954,
26 U.S.C. section 501(e), and is exempt from federal taxation of income in
accordance
with
Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3);
(4) "Corporation" means the Rhode Island health and educational
building corporation
created
and established as a nonbusiness corporation, under and pursuant to chapter 6
of title 7, as
amended,
and constituted and established as a public body corporate and agency of the
state
under
section 45-38.1-4, or any board, body, commission, department, or officer
succeeding to
the
principal functions of the corporation or to whom the powers conferred upon the
corporation
by this
chapter are given by law;
(5) "Corporation loans" means loans by the corporation to an
educational institution or
child
day care center for the purpose of funding education loans;
(6) "Cost" as applied to a project or any portion of it, financed
under the provisions of
this
chapter, embraces all or any part of the cost of construction and acquisition of
all lands,
structures,
real or personal property, rights, rights of way, franchises, easements, and
interests
acquired
or used for a project, 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,
during
and for a period after completion of the construction, provisions for working
capital,
reserves
for principal and interest and for extensions, enlargements, additions,
replacements,
renovations
and improvements, cost of engineering, financial and legal services, plans,
specifications,
studies, surveys, estimates of cost and of revenues, administrative expenses,
expenses
necessary or incident to determining the feasibility or practicability of
constructing the
project,
and other expenses that may be necessary or incident to the construction and
acquisition
of the
project, the financing of the construction and acquisition, and the placing of
the project in
operation;
(7) "Default insurance" means insurance insuring education loans,
corporation loans, or
bonds or
notes of the corporation against default;
(8) "Default reserve fund" means a fund established pursuant to a
resolution of the
corporation
for the purpose of securing education loans, corporation loans, or bonds or
notes of
the
corporation;
(9) "Education loan" means a loan which is made by or on behalf of an
educational
institution
or child day care center from the proceeds of a corporation loan, to a student
or parents
of a
student or both, to finance the student's attendance at the institution;
(10) "Education loan series portfolio" means all education loans made
by or on behalf of
a
specific educational institution or child day care center which are funded from
the proceeds of a
corporation
loan to the institution out of the proceeds of a related specific bond or note
issued
through
the corporation;
(11) "Health care provider" means:
(i) Any nonprofit hospital incorporated under the laws of the state, including
any
nonprofit
subsidiary corporations formed by any hospital or formed by the parent
corporation of
the
hospital;
(ii) Any nonprofit corporation, the member or members of which consist solely
of one or
more
hospitals or their parent corporations;
(iii) Any other hospital, which is licensed as a general hospital or maternity
hospital
pursuant
to chapter 17 of title 23, which is exempt from taxation;
(iv) Any nonprofit group health association;
(v) Any cooperative hospital service organization, or any nonprofit corporation
that is
licensed
as a skilled nursing and/or intermediate care facility pursuant to chapter 17 of
title 23,
including
any nonprofit subsidiary corporation formed by any of the foregoing skilled
nursing
and/or
intermediate care facilities, or any nonprofit corporation eligible to receive
funding,
pursuant
to chapter 8.5 of title 40.1, and/or a corporation created pursuant to chapter
6 of title 7;
provided,
that it is a real estate holding corporation created for the benefit of a
nonprofit
corporation
eligible to receive funding under chapter 8.5 of title 40.1;
(vi) Any nonprofit health care corporation whose purpose is to provide home
care
services
or supplies to the citizens of this state including, but not limited to,
nonprofit visiting
nurse
associations and nonprofit home care organizations;
(vii) Any other not-for-profit corporation organized pursuant to chapter 6 of
title 7 or
pursuant
to any special act of the general assembly and which is exempt from federal
taxation of
income
in accordance with Section 501(c)(3), 26 U.S.C. section 501(c)(3), of the
Internal
Revenue Code
and which is licensed as:
(A) A health care facility pursuant to chapter 17 of title 23;
(B) A "facility" pursuant to chapter 24 of title 40.1;
(C) A "residential care and assisted living facility" pursuant to
chapter 17.4 of title 23; or
(D) An adult day-care facility; or
(E)
A “clinical laboratory” pursuant to chapter 23-16.2 and as a manufacturer of
biological
products by the United States Department of Health and Human Services Food and
Drug
Administration that operates in Rhode Island;
(viii) Any not-for-profit corporation which is exempt from federal taxation of
income in
accordance
with Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section
501(c)(3), or
any
successor section of the Internal Revenue Code, which under contract with the
state educates,
counsels
or rehabilitates young people who have come subject to child welfare, juvenile
justice or
mental
health systems in the state; or
(ix) Any network or similar arrangement of those entities listed in subsection
(11)(i)
through
(viii) above;
(12) "Educational institution" means an educational institution or
local education
authority
participating in the school housing aid program as described in chapter 7 of
title 16
situated
within this state which, by virtue of law or charter, is a public or other
nonprofit
educational
institution empowered to provide a program of education at the primary,
secondary or
high
school level, beyond the high school level, and which is accredited by a
nationally
recognized
educational accrediting agency or association and awards a bachelor's or
advance
degree
or provides a program of not less than two (2) years' duration which is
accepted for full
credit
toward a bachelor's degree;
(13) "Loan funding deposit" means monies or other property deposited
by an educational
institution
or child day care center with the corporation, a guarantor, or a trustee for
the purpose
of:
(i) Providing security for bonds or notes;
(ii) Funding a default reserve fund;
(iii) Acquiring default insurance;
(iv) Defraying costs of the corporation, the monies or properties to be in
amounts as
deemed
necessary by the corporation or a guarantor as a condition for the
institution's
participation
in the corporation's programs;
(14) "Nonprofit group health association" means an association or a
corporation
established
by an act of the general assembly, or created pursuant to chapter 6 of title 7,
to
provide
all or any part of a project or property to the citizens of this state;
(15) "Parent" means any parent, legal guardian, or sponsor of the
student at an
educational
institution or child day care center;
(16) "Participating hospital" means a hospital which, pursuant to the
provisions of this
chapter,
undertakes the financing and construction or acquisition of a project or
undertakes the
refunding
or refinancing of obligations or of a mortgage or of advances as provided in
and
permitted
by this chapter;
(17) "Participating educational institution" means an educational
institution or child day
care
center which, pursuant to the provisions of this chapter, undertakes the
financing and
construction
or acquisition of a project, or undertakes the refunding or refinancing of obligations
or of a
mortgage or of advances or undertakes the financing, directly or indirectly, of
education
loans,
all as provided in and permitted by this chapter;
(18) "Project," in the case of a participating educational
institution or child day care
center
means a structure suitable for use as a dormitory or other housing facility,
dining hall,
student
union, administration building, academic building, library, laboratory,
research facility,
classroom,
athletic facility, health care facility, and maintenance, storage or utility
facility, and
other
structures or facilities related to the educational institution or child day
care center or
required
or useful for the instruction of students or the conducting of research or the
operation of
an
educational institution or child day care center including parking and other
facilities or
structures
essential or convenient for the orderly conduct of the educational institution
or child
day care
center and also includes equipment and machinery and other similar items
necessary or
convenient
for the operation of a particular facility or structure in the manner for which
its use is
intended,
but does not include such items as books, fuel, supplies, or other items which
are
customarily
deemed to result in a current operating charge; and, in the case of a
participating
health
care provider, means a structure suitable for use as a hospital, clinic,
nursing home,
congregate
housing for the elderly and/or infirm, mental health service unit, or other
health care
facility,
laboratory, laundry, nurses', interns', or clients' residence, administration
building,
research
facility, and maintenance, storage or utility facility, and other structures or
facilities
related
to the health care provider or required or useful for the operation of the
project, including
parking
and other facilities or structures essential or convenient for the orderly
operation of the
project,
and also includes equipment and machinery and other similar items necessary or
convenient
for the operation of the project in the manner for which its use is intended,
but does
not
include such items as fuel, supplies, or other items which are customarily
deemed to result in
a
current operating charge;
(19) "State" means the state of Rhode Island and Providence
Plantations;
(20) "Child day care center" means a child day care center as defined
in section 23-28.1-
5, which
is a not-for-profit organization;
(21) "Note" means a written promise to pay, including, but not
limited to, capital notes
and
revenue anticipation notes;
(22) "Capital note(s)" means a note or notes of the corporation not
exceeding twelve (12)
months
in duration to maturity issued for the benefit of a health care provider or
educational
institution
to purchase capital assets to be used in the operations of the health care
provider or
educational
institution; and
(23) "Revenue anticipation note(s)" means a note or notes of the
corporation not
exceeding
twelve (12) months in duration to maturity issued for the benefit of a health
care
provider
or educational institution in anticipation of revenues reasonably expected to
be collected
by the
health care provider or educational institution within twelve (12) months from
the date of
the note
or notes.
(24) "School housing project" means an "approved project,"
as defined in section 16-7-
36(2).
(25) "School housing project financing" means bonds issued through
the corporation to
fund
school housing projects as provided in and permitted by section 16-7-44.
(26) "State reimbursement" shall mean the state's share of school
housing project cost as
determined
in accordance with sections 16-7-35 -- 16-7-47.
SECTION
2. This act shall take effect upon passage.
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LC02190
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