Chapter 469
2008 -- S 3162
Enacted 07/08/08
A N A C T
RELATING
TO CAPITAL DEVELOPMENT PROGRAM
Introduced
By: Senators Sosnowski, Algiere, and Blais
Date
Introduced: June 21, 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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LC03272
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