Chapter
378
2008 -- H 8433
Enacted 07/05/08
A N A C T
RELATING TO CAPITAL
DEVELOPMENT PROGRAM
Introduced By:
Representatives Walsh, Malik, Naughton, Loughlin, and Gorham
Date Introduced: June 20,
2008
It is enacted
by the General Assembly as follows:
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 2008, 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 2008
session,
authorizing
the issuance of bonds, refunding bonds, and temporary notes 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, refunding bonds, and temporary notes authorized in
accordance with the
provisions
of said act?"
Project
Open
Space and Recreational Development $2,500,000
Approval
of this question will authorize the State of Rhode Island to issue general
obligation
bonds, refunding bonds, and temporary notes in an amount not to exceed
$2,500,000 to
be used
by the Department of Environmental Management to purchase or otherwise
permanently
protect
through the purchase of the title, development rights, conservation easements
and public
recreation
easements, greenways and other open space, recreation lands, agriculture lands,
forested
lands and state parks.
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, refunding bonds and temporary notes 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 2008 bonds" provided,
however, that the
aggregate
principal amount of such capital development bonds and of any temporary notes
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 2008 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
2008
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
2008
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 accrual interest
and
net the
underwriters’ cost, and cost of bond insurance, 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.
The
term "bond" shall include "note", and the term
"refunding bonds" shall include
"refunding
notes" when used in this act.
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 and net the underwriters’ cost, and cost of
bond
insurance,
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 proceeds from premiums shall be deposited into the Rhode
Island
Capital
Plan Fund.
All
monies in the capital development bond 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 or her
designee
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
2008 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 and temporary notes described
in
section
1, the proceeds shall be utilized for the following purposes:
Question
1 relating to bonds in the amount of $2,500,000 for open space and recreational
development
purposes shall be allocated as follows:
Provide
funds for the Department of Environmental Management to purchase or
otherwise
permanently protect through the purchase of the title, development rights,
conservation
easements
and public recreation easements, greenways and other open space, recreation
lands,
agriculture
lands, forested lands and state parks.
SECTION
7. Sale of bonds and notes. -- Any bonds or notes issued under
the authority
of this
act shall be sold from time to time at not less than the principal amount
thereof, in such
mode and
on such terms and conditions as the general treasurer, with the approval of the
governor,
shall deem to be for the best interests of the state.
Any
premiums and accrued interest, net of the cost of bond insurance and
underwriters
discount,
that may be received on the sale of the capital development bonds or notes
shall become
part of
the general fund of the state and shall be applied to the payment of debt
service charges of
the
state.
In
the event that the amount received from the sale of the capital development
bonds or
notes
exceeds the amount necessary for the purposes stated in section 6 hereof, the
surplus may
be used
to the extent possible to retire the bonds as the same may become due, to
redeem them in
accordance
with the terms thereof or otherwise to purchase them as the general treasurer,
with the
approval
of the governor, shall deem to be for the best interests of the state.
Any
bonds or notes issued under the provisions of this act and coupons on any
capital
development
bonds, if properly executed by the manual or facsimile signatures of officers
of the
state in
office on the date of execution shall be valid and binding according to their
tenor,
notwithstanding
that before the delivery thereof and payment therefor, any or all such officers
shall
for any reason have ceased to hold office.
SECTION
8. Bonds and notes to be tax exempt and general obligations of the state.
-
- All bonds and notes issued under the authority of
this act shall be exempt from taxation in the
state
and shall be general obligations of the state, and the full faith and credit of
the state is hereby
pledged
for the due payment of the principal and interest on each of such bonds and
notes as the
same
shall become due.
SECTION
9. Investment of moneys in fund. -- All moneys in the capital
development
fund not
immediately required for payment pursuant to the provisions of this act may be
invested
by the
investment commission, as established by chapter 35-10, pursuant to the
provisions of such
chapter;
provided, however, that the securities in which the capital development fund is
invested
shall
remain a part of the capital development fund until exchanged for other
securities; and
provided
further, that the income from investments of the capital development fund shall
become
a part
of the general fund of the state and shall be applied to the payment of debt
service charges
of the
state, or to the extent necessary, to rebate to the United States treasury any
income from
investments
(including gains from the disposition of investments) of proceeds of bonds or
notes
to the
extent deemed necessary to exempt (in whole or in part) the interest paid on
such bonds or
notes
from federal income taxation.
SECTION
10. Appropriation. -- To the extent the debt service on these
bonds is not
otherwise
provided, a sum sufficient to pay the interest and principal due each year on
bonds and
notes
hereunder is hereby annually appropriated out of any money in the treasury not
otherwise
appropriated.
SECTION
11. Advances from general fund. -- The general treasurer is
authorized from
time to
time with the approval of the director and the governor, in anticipation of the
issue of
notes or
bonds under the authority of this act, to advance to the capital development
bond fund for
the
purposes specified in section 6 hereof, any funds of the state not specifically
held for any
particular
purpose; provided, however, that all advances made to the capital development
bond
fund
shall be returned to the general fund from the capital development bond fund
forthwith upon
the
receipt by the capital development fund of proceeds resulting from the issue of
notes or bonds
to the
extent of such advances.
SECTION
12. Federal assistance and private funds. -- In carrying out this
act, the
director,
or his or her designee, is authorized on behalf of the state, with the approval
of the
governor,
to apply for and accept any federal assistance which may become available for
the
purpose of
this act, whether in the form of loan or grant or otherwise, to accept the
provision of
any
federal legislation therefor, to enter into, act and carry out contracts in
connection therewith,
to act
as agent for the federal government in connection therewith, or to designate a
subordinate
so to
act. Where federal assistance is made available, the project shall be carried
out in
accordance
with applicable federal law, the rules and regulations thereunder and the
contract or
contracts
providing for federal assistance, notwithstanding any contrary provisions of
state law.
Subject
to the foregoing, any federal funds received for the purposes of this act shall
be deposited
in the
capital development bond fund and expended as a part thereof. The director or
his or her
designee
may also utilize any private funds that may be made available for the purposes
of this
act.
SECTION
13. Effective Date. Sections 1, 2, 3, 11, and 12 of this act
shall take effect
upon
passage. The remaining sections of this act shall take effect when and if the
state board of
elections
shall certify to the secretary of state that a majority of the qualified
electors voting on
the
propositions contained in section 1 hereof have indicated their approval of all
or any projects
thereunder.
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LC03260
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