Introduced By:Representatives Burlingame and Benoit
Date Introduced : February 3, 1998
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 shall have the following meaning unless the context shall indicate another or different meaning or intent:
(a) "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;
(b) "Borrower" means a student or a parent who has received or agreed to pay an education loan;
(c) "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)_;
(d) "Corporation" shall mean 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 thereof or to whom the powers conferred upon the corporation by this chapter shall be given by law;
(e) "Corporation loans" means loans by the corporation to educational institution or child day care center for the purpose of funding education loans;
(f) "Cost" as applied to a project or any portion thereof, 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 such other expenses as 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;
(g) "Default insurance" means insurance insuring education loans, corporation loans, or bonds or notes of the corporation against default;
(h) "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;
(i) "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;
(j) "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;
(k) "Health care provider" means:
(1) Any nonprofit hospital incorporated under the laws of the state, including any nonprofit subsidiary corporations formed by any such hospital or formed by the parent corporation of the hospital, or
(2) Any nonprofit corporation, the member or members of which consist solely of one or more hospitals or parent corporations thereof, or
(3) 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, or
(4) Any nonprofit group health association, or
(5) 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, 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 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, or
(6) Any nonprofit healthcare 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, or
(7) 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; or
(b) A "facility" pursuant to chapter 24 of title 40.1;
{ADD (c) A "residential care and assisted living facility" pursuant to chapter 17.4 of title 23. ADD}
{ADD (d) Adult day care facility.ADD}
(8) Any not-for-profit corporation 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, 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.
(l) "Educational institution" means an educational institution 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;
(m) "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:
(1) Providing security for bonds or notes,
(2) Funding a default reserve fund,
(3) Acquiring default insurance,
(4) Defraying costs of the corporation, the monies or properties to be in such amounts as deemed necessary by the corporation or a guarantor as a condition for the institution's participation in the corporation's programs;
(n) "Nonprofit group health association" means an association or a corporation established by an act of the general assembly of Rhode Island and Providence Plantations, 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;
(o) "Parent" means any parent, legal guardian, or sponsor of the student at an educational institution or child day care center;
(p) "Participating hospital" means a hospital which, pursuant to the provisions of this chapter, shall undertake the financing and construction or acquisition of a project or shall undertake the refunding or refinancing of obligations or of a mortgage or of advances as provided in and permitted by this chapter;
(q) "Participating educational institution" means an educational institution or child day care center which, pursuant to the provisions of this chapter, shall undertake the financing and construction or acquisition of a project, or shall undertake the refunding or refinancing of obligations or of a mortgage or of advances or shall undertake the financing, directly or indirectly, of education loans, all as provided in and permitted by this chapter;
(r) "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 thereto 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 shall also include 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 shall 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 thereto 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 shall also include 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 shall not include such items as fuel, supplies, or other items which are customarily deemed to result in a current operating charge;
(s) "State" shall mean the state of Rhode Island and Providence Plantations.
(t) "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.
SECTION 2. This act shall take effect upon passage.
