2025 -- H 6006
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LC001952
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA
Introduced By: Representatives Tanzi, Handy, Fogarty, McGaw, Kislak, Hull, Carson,
Morales, Potter, and Ajello
Date Introduced: February 28, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Proposition to be submitted to the people. -- At the general election to be 1
held on the Tuesday next after the first Monday in November 2026, there shall be submitted to the 2
people ("people") of the State of Rhode Island ("state"), for their approval or rejection, the 3
following proposition: 4
"Shall the action of the general assembly, by an act passed at the January 2025 session, 5
authorizing the issuance of bonds, refunding bonds, and/or temporary notes of the State of Rhode 6
Island for the capital project and in the amount listed below be approved, and the issuance of bonds, 7
refunding bonds, and/or temporary notes authorized in accordance with the provisions of said act?" 8
Project 9
(1) Bicycle Mobility Plan $25,000,000 10
Approval of this question will allow the State of Rhode Island to issue general obligation 11
bonds, refunding bonds, and/or temporary notes in an amount not to exceed twenty-five million 12
dollars ($25,000,000), to provide direct funding for a statewide bicycle system consisting of a 13
seamless off-road and on-street network that provides transportation and recreational links in all 14
corners of the state. 15
SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of 16
state shall prepare and deliver to the state board of elections ballot labels for the project provided 17
for in section 1 hereof with the designations "approve" or "reject" provided next to the description 18
of the project to enable voters to approve or reject the proposition. The general election laws, so far 19
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as consistent herewith, shall apply to this proposition. 1
SECTION 3. Approval of project by people. -- If a majority of the people voting on the 2
proposition in section 1 hereof shall vote to approve the project stated therein, said project shall be 3
deemed to be approved by the people. The authority to issue bonds, refunding bonds and/or 4
temporary notes of the state shall be limited to the aggregate amount for the project as set forth in 5
the proposition, which has been approved by the people. 6
SECTION 4. Bonds for capital development program. -- The general treasurer is hereby 7
authorized and empowered, with the approval of the governor, and in accordance with the 8
provisions of this act to issue capital development bonds in serial form, in the name of and on behalf 9
of the State of Rhode Island, in amounts as may be specified by the governor in an aggregate 10
principal amount not to exceed the total amount for the project approved by the people and 11
designated as "capital development loan of 2026 bonds." Provided, however, that the aggregate 12
principal amount of such capital development bonds and of any temporary notes outstanding at any 13
one time issued in anticipation thereof pursuant to section 7 hereof shall not exceed the total amount 14
for the project approved by the people. All provisions in this act relating to "bonds" shall also be 15
deemed to apply to "refunding bonds." 16
Capital development bonds issued under this act shall be in denominations of one thousand 17
dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the 18
United States which at the time of payment shall be legal tender for public and private debts. These 19
capital development bonds shall bear such date or dates, mature at specified time or times, but not 20
mature beyond the end of the twentieth state fiscal year following the fiscal year in which they are 21
issued; bear interest payable semi-annually at a specified rate or different or varying rates; be 22
payable at a designated time or times at a specified place or places; be subject to express terms of 23
redemption or recall, with or without premium; be in a form, with or without interest coupons 24
attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration 25
and other provisions as may be fixed by the general treasurer, with the approval by the governor, 26
upon each issue of such capital development bonds at the time of each issue. Whenever the 27
governor shall approve the issuance of such capital development bonds, the governor's approval 28
shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and 29
countersigned by the secretary of state and shall bear the seal of the state. The signature approval 30
of the governor shall be endorsed on each bond. 31
SECTION 5. Refunding bonds for 2026 capital development program. -- The general 32
treasurer is hereby authorized and empowered, with the approval of the governor, and in accordance 33
with the provisions of this act, to issue bonds to refund the 2026 capital development program 34
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bonds, in the name of and on behalf of the state, in amounts as may be specified by the governor in 1
an aggregate principal amount not to exceed the total amount approved by the people, to be 2
designated as "capital development program loan of 2026 refunding bonds" (hereinafter "refunding 3
bonds"). 4
The general treasurer with the approval of the governor shall fix the terms and form of any 5
refunding bonds issued under this act in the same manner as the capital development bonds issued 6
under this act, except that the refunding bonds may not mature more than twenty (20) years from 7
the date of original issue of the capital development bonds being refunded. 8
The proceeds of the refunding bonds, exclusive of any premium and accrual interest and 9
net the underwriters' cost, and cost of bond insurance, shall, upon their receipt, be paid by the 10
general treasurer immediately to the paying agent for the capital development bonds which are to 11
be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they 12
are applied to prepay the capital development bonds. While such proceeds are held in trust, the 13
proceeds may be invested for the benefit of the state in obligations of the United States of America 14
or the State of Rhode Island. 15
If the general treasurer shall deposit with the paying agent for the capital development 16
bonds the proceeds of the refunding bonds, or proceeds from other sources, amounts that, when 17
invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all 18
principal, interest, and premium, if any, on the capital development bonds until these bonds are 19
called for prepayment, then such capital development bonds shall not be considered debts of the 20
State of Rhode Island for any purpose starting from the date of deposit of such monies with the 21
paying agent. The refunding bonds shall continue to be a debt of the state until paid. 22
The term "bond" shall include "note," and the term "refunding bonds" shall include 23
"refunding notes" when used in this act. 24
SECTION 6. Proceeds of capital development program. -- The general treasurer is 25
directed to deposit the proceeds from the sale of capital development bonds issued under this act, 26
exclusive of premiums and accrued interest and net the underwriters' cost, and cost of bond 27
insurance, in one or more of the depositories in which the funds of the state may be lawfully kept 28
in special accounts (hereinafter cumulatively referred to as "such capital development bond fund") 29
appropriately designated for the project set forth in section 1 hereof which shall have been approved 30
by the people to be used for the purpose of paying the cost of the project so approved. 31
All monies in the capital development bond fund shall be expended for the purposes 32
specified in the proposition provided for in section 1 hereof under the direction and supervision of 33
the director of administration (hereinafter referred to as "director"). The director, or designee shall 34
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be vested with all power and authority necessary or incidental to the purposes of this act, including, 1
but not limited to, the following authority: 2
(1) To acquire land or other real property or any interest, estate or right therein as may be 3
necessary or advantageous to accomplish the purposes of this act; 4
(2) To direct payment for the preparation of any reports, plans and specifications, and 5
relocation expenses and other costs such as for furnishings, equipment designing, inspecting and 6
engineering, required in connection with the implementation of the project set forth in section 1 7
hereof; 8
(3) To direct payment for the costs of construction, rehabilitation, enlargement, provision 9
of service utilities, and razing of facilities, and other improvements to land in connection with the 10
implementation of the project set forth in section 1 hereof; and 11
(4) To direct payment for the cost of equipment, supplies, devices, materials and labor for 12
repair, renovation or conversion of systems and structures as necessary for the 2025 capital 13
development program bonds or notes hereunder from the proceeds thereof. No funds shall be 14
expended in excess of the amount of the capital development bond fund designated for the project 15
authorized in section 1 hereof. With respect to the bonds and temporary notes described in section 16
1, the proceeds shall be used for the following purpose: 17
Question 1, relating to bonds in the amount of twenty-five million dollars ($25,000,000) to 18
provide funding for a statewide bicycle system consisting of a seamless off-road and on-street 19
network that provides transportation and recreational links in all corners of the state. 20
SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority 21
of this act shall be sold at not less than the principal amount thereof, in such mode and on such 22
terms and conditions as the general treasurer, with the approval of the governor, shall deem to be 23
in the best interests of the state. 24
Any premiums and accrued interest, net of the cost of bond insurance and underwriter's 25
discount, which may be received on the sale of the capital development bonds or notes shall become 26
part of the Rhode Island capital plan fund of the state, unless directed by federal law or regulation 27
to be used for some other purpose. 28
In the event that the amount received from the sale of the capital development bonds or 29
notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be 30
used to the extent possible to retire the bonds as the same may become due, to redeem them in 31
accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the 32
approval of the governor, shall deem to be in the best interests of the state. 33
Any bonds or notes issued under the provisions of this act and coupons on any capital 34
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development bonds, if properly executed by the manual or electronic signatures of officers of the 1
state in office on the date of execution, shall be valid and binding according to their tenor, 2
notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall 3
for any reason have ceased to hold office. 4
SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. -- 5
All bonds and notes issued under the authority of this act shall be exempt from taxation in the state 6
and shall be general obligations of the state, and the full faith and credit of the state is hereby 7
pledged for the due payment of the principal and interest on each of such bonds and notes as the 8
same shall become due. 9
SECTION 9. Investment of monies in fund. -- All monies in the capital development fund 10
not immediately required for payment pursuant to the provisions of this act may be invested by the 11
investment commission, as established by chapter 10 of title 35, entitled "state investment 12
commission," pursuant to the provisions of such chapter; provided, however, that the securities in 13
which the capital development fund is invested shall remain a part of the capital development fund 14
until exchanged for other securities; and provided further, that the income from investments of the 15
capital development fund shall become a part of the general fund of the state and shall be applied 16
to the payment of debt service charges of the state, unless directed by federal law or regulation to 17
be used for some other purpose, or to the extent necessary, to rebate to the United States treasury 18
any income from investments (including gains from the disposition of investments) of proceeds of 19
bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on 20
such bonds or notes from federal income taxation. 21
SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not 22
otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and 23
notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise 24
appropriated. 25
SECTION 11. Advances from general fund. -- The general treasurer is authorized, with 26
the approval of the director and the governor, in anticipation of the issue of bonds or notes under 27
the authority of this act, to advance to the capital development bond fund for the purposes specified 28
in section 6 hereof, any funds of the state not specifically held for any particular purpose; provided, 29
however, that all advances made to the capital development bond fund shall be returned to the 30
general fund from the capital development bond fund forthwith upon the receipt by the capital 31
development fund of proceeds resulting from the issue of bonds or notes to the extent of such 32
advances. 33
SECTION 12. Federal assistance and private funds. -- In carrying out this act, the 34
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director, or designee, is authorized on behalf of the state, with the approval of the governor, to apply 1
for and accept any federal assistance which may become available for the purpose of this act, 2
whether in the form of loan or grant or otherwise, to accept the provision of any federal legislation 3
therefor, to enter into, act and carry out contracts in connection therewith, to act as agent for the 4
federal government in connection therewith, or to designate a subordinate so to act. Where federal 5
assistance is made available, the project shall be carried out in accordance with applicable federal 6
law, the rules and regulations thereunder and the contract or contracts providing for federal 7
assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any 8
federal funds received for the purposes of this act shall be deposited in the capital development 9
bond fund and expended as a part thereof. The director, or designee may also utilize any private 10
funds that may be made available for the purposes of this act. 11
SECTION 13. Sections 1, 2, 3, 11 and 12 of this act shall take effect upon passage. The 12
remaining sections of this act shall take effect when and if the state board of elections shall certify 13
to the secretary of state that a majority of the qualified electors voting on the proposition contained 14
in section 1 hereof have indicated their approval of the project thereunder. 15
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA
***
This act would submit the state's 2026 capital development program requesting the 1
issuance of general obligation bonds totaling twenty-five million dollars ($25,000,000) for 2
approval of the electorate at the general election to be held on November 3, 2026. 3
Sections 1, 2, 3, 11 and 12 of this act would take effect upon passage. The remaining 4
sections of this act would take effect when and if the state board of elections shall certify to the 5
secretary of state that a majority of the qualified electors voting on the proposition contained in 6
section 1 hereof have indicated their approval the project thereunder. 7
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