Chapter 181

2009 -- H 6328

Enacted 10/09/09

 

A N A C T

IN ACCORDANCE WITH RHODE ISLAND GENERAL LAWS SECTION 16-7-44

APPROVING THE ISSUANCE OF $22,338,000 LEASE REVENUE BONDS OR OTHER

EVIDENCES OF INDEBTEDNESS BY THE PROVIDENCE PUBLIC BUILDINGS

AUTHORITY TO PROVIDE FUNDING FOR "WARM, SAFE AND DRY" PROJECTS IN PROVIDENCE PUBLIC SCHOOLS

          

     Introduced By: Representatives Slater, and Diaz

     Date Introduced: June 25, 2009

 

It is enacted by the General Assembly as follows:

 

     SECTION 1.The general assembly finds that:

     (a) The American Recovery and Reinvestment Act of 2009, Public Law 111-5, created a

new type of tax-credit bond known as Qualified School Construction Bonds (“QSCBs”) to

encourage the construction and improvement of public schools;

     (b) The Internal Revenue Service has released Notice 2009-35 which allocates $11 billion

of 2009 calendar year volume cap for QSCBs to states and large educational agencies;

     (c) Notice 2009-35 allocates $22,338,000 in QSCB volume cap to the City of Providence

(“Providence” or the “City”);

     (d) Issuance of QSCBs provides a benefit to the State of Rhode Island (the “state")

inasmuch as tax-credit bonds do not pay interest to bondholders and the State need not provide

state housing aid to the issuer for interest on the QSCBs;

     (e) Notice 2009-35 provides that the allocations of volume cap for QSCBs are effective

for QSCBs issued before January 1, 2010; and

     (f) Section 16-7-44 of the general laws requires that bonds, notes and other forms of

indebtedness issued in support of school housing projects require passage of an enabling act by

the general assembly.

     SECTION 2. The purpose of this act is to provide state law authority for taking the

actions which may be necessary and convenient in order for the City and the State to obtain the

benefits of the American Recovery and Reinvestment Act.

     SECTION 3. In accordance with Title 45, Chapter 50 of the general laws, the Providence

Public Buildings Authority is hereby empowered to issue QSCBs in the form of lease revenue

bonds or other evidences of indebtedness up to an amount not exceeding twenty-two million three

hundred thirty-eight thousand dollars ($22,338,000) from time to time under its corporate name

and seal, to provide funding for “Warm, Safe and Dry” projects in Providence public schools,

consisting of renovation, rehabilitation, repair, replacement, improvement, furnishing and

equipping of schools and school facilities, including, but not limited to, remediation of fire code

violations, repair, replacement, improvement and installation of roofs, heating, ventilation, air

conditioning and fire alarm systems, including design and feasibility, engineering or other studies

which may be necessary in connection therewith and other acts incidental thereto.

     SECTION 4. In accordance with section 16-7-44 of the general laws, such bonds or

evidences of indebtedness shall be eligible for state housing aid reimbursement.

     SECTION 5. This act shall take effect upon passage.

     

     

=======

LC02883

=======