Chapter 007

2010 -- H 7139 SUBSTITUTE A

Enacted 04/12/10

 

A N A C T

RELATING TO PUBLIC FINANCE -- THE AMERICAN RECOVERY AND

REINVESTMENT ACT--BONDS

          

     Introduced By: Representatives Costantino, Carter, Melo, Giannini, and Silva

     Date Introduced: January 19, 2010

   

It is enacted by the General Assembly as follows:

 

     SECTION 1. Chapter 35-8 of the General Laws entitled "Bonded Indebtedness of State"

is hereby amended by adding thereto the following section:

 

     35-8-28. Interest earnings on state bonded indebtedness -- Federal requirements. –

Notwithstanding any general or public law or rule to the contrary, income from investments in the

capital development fund may be applied to capital purposes and shall not become part of the

general fund of the state to the extent necessary to exempt (in whole or in part) the interest paid

on such bonds or notes from federal taxation, to preserve and maintain any federal tax credits

associated with such bonds or notes, or to preserve or maintain any refundable tax credits paid or

to be paid to the state with regard to such bonds or notes.

 

     SECTION 2. Section 42-10.1-3 of the General Laws in Chapter 42-10.1 entitled "Public

Finance Management Board" is hereby amended to read as follows:

 

     42-10.1-3. Allocation of statewide financing limitation. (a) The eighty-seven million

four thousand dollars ($87,004,000) in total recovery zone economic development bond volume

cap allocations granted to the five (5) counties of the State of Rhode Island by the United States

Secretary of the Treasury pursuant to 26 U.S.C. sections 1400U-1 and 1400U-2 of the Internal

Revenue Code are hereby ceded to the State of Rhode Island for use by the state in connection

with the issuance of general obligation bonds of the state.

     (b) The one hundred thirty million five hundred four thousand dollars ($130,504,000) in

total recovery zone facility bond volume cap allocations granted to the five (5) counties of the

State of Rhode Island by the United States Secretary of the Treasury pursuant to 26 U.S.C.

sections 1400U-1 and 1400U-3 are hereby ceded to the public finance management board for

subsequent allocation by the board in accordance with rules and regulations to be promulgated by

the board in accordance with the Administrative Procedures Act, Chapter 35 of this title.

     (c) The ten million nine hundred one thousand dollars ($10,901,000) in total qualified

energy conservation bond volume cap allocation granted to the State of Rhode Island by the

Secretary of the Treasury pursuant to 26 U.S.C. section 54D of the Internal Revenue Code is

hereby allocated to the board for subsequent allocations by the board in accordance with rules and

regulations to be promulgated by the board in accordance with the Administrative Procedures

Act, Chapter 35 of this title, provided, however, that the City of Providence shall be allocated by

the board no less than its portion as provided in 26 U.S.C. section 54D(e)(2)(A) of the Internal

Revenue Code unless the City of Providence determines that the board may further reallocate

such portion to other bond issuers.

     (d) The general assembly hereby finds, declares and designates the entire State of Rhode

Island as a “recovery zone” meeting the standards referenced in 26 U.S.C. section 1400U-1(b)(1)

of the Internal Revenue Code, given the significant unemployment, rate of foreclosures, or

general distress present throughout the State of Rhode Island, and particularly given the

geographic compactness of the state and the resultant interrelated nature of economic conditions

and activities within the state as a whole.

     (e) The board is hereby authorized to allocate tax exempt and taxable bond issuance

capacity and/or federal tax credits among all issuers in the state of Rhode Island, pursuant to 26

U.S.C. section 103, 26 U.S.C. section 145, or pursuant to 26 U.S.C. sections 1400U-1, 1400U-2,

1400U-3, 54D and any similar federal legislation heretofore or hereinafter enacted. The

allocations of tax exempt and taxable bond issuance capacity and/or federal tax credits shall be

pursuant to rules and regulations to be promulgated by the board in accordance with the

Administrative Procedures Act, chapter 35 of this title.

 

     SECTION 3. This act shall take effect upon passage.

     

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LC00469/SUB A

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