AN ACT RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA (Submits the state's 2026 capital development program requesting the issuance of general obligation bonds totaling one hundred million dollars ($100,000,000) for approval of the electorate at the general election to be held in November, 2026.)

S2813

2026 -- S 2813
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LC005842
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA

Introduced By:
Senators Vargas, Bissaillon, Thompson, Quezada, Zurier, Acosta,
DiMario, DiPalma, Euer, and Kallman

Date Introduced:
March 04, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Proposition to be submitted to the people.
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At the general election to be held on the Tuesday next after the first Monday in November
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2026, there shall be submitted to the people ("people") of the State of Rhode Island ("state"), for
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their approval or rejection, the following proposition:
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"Shall the action of the general assembly, by an act passed at the January 2026 session,
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authorizing the issuance of bonds, refunding bonds, and/or temporary notes of the State of Rhode
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Island for the capital project and in the amount listed below be approved, and the issuance of bonds,
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refunding bonds, and/or temporary notes authorized in accordance with the provisions of said act?"
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Project
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(1) Transit Forward RI 2040 $100,000,000
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Approval of this question will allow the State of Rhode Island to issue general obligation
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bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred million
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dollars ($100,000,000), to provide direct funding for a statewide transit system by providing
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improvement to: Fare technology upgrades and replacement fare boxes, current bus stops and
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shelters; safety and access to bus stops, including crosswalks, sidewalks and curb ramps; shelter
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bathrooms, sheltered and secured bike racks and indoor waiting areas; matching funds for federal
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grants for high capacity transit lines planned pursuant to the transit master plan; and, operational
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support infrastructure for technology and agency facility improvements and expansion.
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SECTION 2. Ballot labels and applicability of general election laws.

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The secretary of state shall prepare and deliver to the state board of elections ballot labels
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for the project provided for in section 1 hereof with the designations "approve" or "reject" provided
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next to the description of the project to enable voters to approve or reject the proposition. The
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general election laws, so far as consistent herewith, shall apply to this proposition.
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SECTION 3. Approval of project by people.
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If a majority of the people voting on the proposition in section 1 hereof shall vote to
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approve the project stated therein, said project shall be deemed to be approved by the people. The
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authority to issue bonds, refunding bonds and/or temporary notes of the state shall be limited to the
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aggregate amount for the project as set forth in the proposition, which has been approved by the
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people.
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SECTION 4. Bonds for capital development program.
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The general treasurer is hereby authorized and empowered, with the approval of the
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governor, and in accordance with the provisions of this act to issue capital development bonds in
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serial form, in the name of and on behalf of the State of Rhode Island, in amounts as may be
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specified by the governor in an aggregate principal amount not to exceed the total amount for the
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project approved by the people and designated as "capital development loan of 2026 bonds."
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Provided, however, that the aggregate principal amount of such capital development bonds and of
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any temporary notes outstanding at any one time issued in anticipation thereof pursuant to section
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7 hereof shall not exceed the total amount for the project approved by the people. All provisions in
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this act relating to "bonds" shall also be deemed to apply to "refunding bonds."
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Capital development bonds issued under this act shall be in denominations of one thousand
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dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the
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United States which at the time of payment shall be legal tender for public and private debts. These
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capital development bonds shall bear such date or dates, mature at specified time or times, but not
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mature beyond the end of the twentieth state fiscal year following the fiscal year in which they are
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issued; bear interest payable semi-annually at a specified rate or different or varying rates; be
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payable at a designated time or times at a specified place or places; be subject to express terms of
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redemption or recall, with or without premium; be in a form, with or without interest coupons
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attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration
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and other provisions as may be fixed by the general treasurer, with the approval by the governor,
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upon each issue of such capital development bonds at the time of each issue. Whenever the
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governor shall approve the issuance of such capital development bonds, the governor's approval
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shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and
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countersigned by the secretary of state and shall bear the seal of the state. The signature approval

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of the governor shall be endorsed on each bond.
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SECTION 5. Refunding bonds for 2026 capital development program.
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The general treasurer is hereby authorized and empowered, with the approval of the
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governor, and in accordance with the provisions of this act, to issue bonds to refund the 2026 capital
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development program bonds, in the name of and on behalf of the state, in amounts as may be
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specified by the governor in an aggregate principal amount not to exceed the total amount approved
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by the people, to be designated as "capital development program loan of 2026 refunding bonds"
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(hereinafter "refunding bonds").
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The general treasurer with the approval of the governor shall fix the terms and form of any
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refunding bonds issued under this act in the same manner as the capital development bonds issued
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under this act, except that the refunding bonds may not mature more than twenty (20) years from
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the date of original issue of the capital development bonds being refunded.
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The proceeds of the refunding bonds, exclusive of any premium and accrual interest and
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net the underwriters' cost, and cost of bond insurance, shall, upon their receipt, be paid by the
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general treasurer immediately to the paying agent for the capital development bonds which are to
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be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they
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are applied to prepay the capital development bonds. While such proceeds are held in trust, the
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proceeds may be invested for the benefit of the state in obligations of the United States of America
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or the State of Rhode Island.
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If the general treasurer shall deposit with the paying agent for the capital development
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bonds the proceeds of the refunding bonds, or proceeds from other sources, amounts that, when
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invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all
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principal, interest, and premium, if any, on the capital development bonds until these bonds are
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called for prepayment, then such capital development bonds shall not be considered debts of the
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State of Rhode Island for any purpose starting from the date of deposit of such monies with the
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paying agent. The refunding bonds shall continue to be a debt of the state until paid.
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The term "bond" shall include "note," and the term "refunding bonds" shall include
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"refunding notes" when used in this act.
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SECTION 6. Proceeds of capital development program.
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The general treasurer is directed to deposit the proceeds from the sale of capital
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development bonds issued under this act, exclusive of premiums and accrued interest and net the
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underwriters' cost, and cost of bond insurance, in one or more of the depositories in which the funds
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of the state may be lawfully kept in special accounts (hereinafter cumulatively referred to as "such
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capital development bond fund") appropriately designated for the project set forth in section 1

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hereof which shall have been approved by the people to be used for the purpose of paying the cost
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of the project so approved.
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All monies in the capital development bond fund shall be expended for the purposes
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specified in the proposition provided for in section 1 hereof under the direction and supervision of
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the director of administration (hereinafter referred to as "director"). The director, or designee shall
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be vested with all power and authority necessary or incidental to the purposes of this act, including,
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but not limited to, the following authority:
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(1) To acquire land or other real property or any interest, estate or right therein as may be
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necessary or advantageous to accomplish the purposes of this act;
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(2) To direct payment for the preparation of any reports, plans and specifications, and
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relocation expenses and other costs such as for furnishings, equipment designing, inspecting and
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engineering, required in connection with the implementation of the project set forth in section 1
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hereof;
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(3) To direct payment for the costs of construction, rehabilitation, enlargement, provision
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of service utilities, and razing of facilities, and other improvements to land in connection with the
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implementation of the project set forth in section 1 hereof; and
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(4) To direct payment for the cost of equipment, supplies, devices, materials and labor for
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repair, renovation or conversion of systems and structures as necessary for the 2026 capital
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development program bonds or notes hereunder from the proceeds thereof. No funds shall be
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expended in excess of the amount of the capital development bond fund designated for the project
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authorized in section 1 hereof. With respect to the bonds and temporary notes described in section
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1, the proceeds shall be used for the following purpose:
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Question 1, relating to bonds in the amount of one hundred million dollars ($100,000,000)
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to provide funding for a statewide transit system by improvement of existing services, expansion
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of services to new areas, development of high capacity transit, improvement of access to transit and
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adoption of new technologies and methods to make service easier to use.
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SECTION 7. Sale of bonds and notes.
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Any bonds or notes issued under the authority of this act shall be sold at not less than the
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principal amount thereof, in such mode and on such terms and conditions as the general treasurer,
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with the approval of the governor, shall deem to be in the best interests of the state.
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Any premiums and accrued interest, net of the cost of bond insurance and underwriter's
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discount, which may be received on the sale of the capital development bonds or notes shall become
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part of the Rhode Island capital plan fund of the state, unless directed by federal law or regulation
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to be used for some other purpose.

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In the event that the amount received from the sale of the capital development bonds or
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notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be
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used to the extent possible to retire the bonds as the same may become due, to redeem them in
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accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the
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approval of the governor, shall deem to be in the best interests of the state.
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Any bonds or notes issued under the provisions of this act and coupons on any capital
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development bonds, if properly executed by the manual or electronic signatures of officers of the
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state in office on the date of execution, shall be valid and binding according to their tenor,
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notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall
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for any reason have ceased to hold office.
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SECTION 8. Bonds and notes to be tax exempt and general obligations of the state.
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All bonds and notes issued under the authority of this act shall be exempt from taxation in
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the state and shall be general obligations of the state, and the full faith and credit of the state is
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hereby pledged for the due payment of the principal and interest on each of such bonds and notes
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as the same shall become due.
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SECTION 9. Investment of monies in fund.
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All monies in the capital development fund not immediately required for payment pursuant
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to the provisions of this act may be invested by the investment commission, as established by
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chapter 10 of title 35, entitled "state investment commission," pursuant to the provisions of such
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chapter; provided, however, that the securities in which the capital development fund is invested
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shall remain a part of the capital development fund until exchanged for other securities; and
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provided further, that the income from investments of the capital development fund shall become
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a part of the general fund of the state and shall be applied to the payment of debt service charges
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of the state, unless directed by federal law or regulation to be used for some other purpose, or to
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the extent necessary, to rebate to the United States treasury any income from investments (including
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gains from the disposition of investments) of proceeds of bonds or notes to the extent deemed
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necessary to exempt (in whole or in part) the interest paid on such bonds or notes from federal
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income taxation.
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SECTION 10. Appropriation.
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To the extent the debt service on these bonds is not otherwise provided, a sum sufficient to
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pay the interest and principal due each year on bonds and notes hereunder is hereby annually
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appropriated out of any money in the treasury not otherwise appropriated.
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SECTION 11. Advances from general fund.
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The general treasurer is authorized, with the approval of the director and the governor, in

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anticipation of the issue of notes or bonds under the authority of this act, to advance to the capital
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development bond fund for the purposes specified in section 6 hereof, any funds of the state not
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specifically held for any particular purpose; provided, however, that all advances made to the
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capital development bond fund shall be returned to the general fund from the capital development
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bond fund forthwith upon the receipt by the capital development fund of proceeds resulting from
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the issue of notes or bonds to the extent of such advances.
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SECTION 12. Federal assistance and private funds.
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In carrying out this act, the director, or designee, is authorized on behalf of the state, with
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the approval of the governor, to apply for and accept any federal assistance which may become
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available for the purpose of this act, whether in the form of loan or grant or otherwise, to accept the
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provision of any federal legislation therefor, to enter into, act and carry out contracts in connection
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therewith, to act as agent for the federal government in connection therewith, or to designate a
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subordinate so to act. Where federal assistance is made available, the project shall be carried out in
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accordance with applicable federal law, the rules and regulations thereunder and the contract or
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contracts providing for federal assistance, notwithstanding any contrary provisions of state law.
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Subject to the foregoing, any federal funds received for the purposes of this act shall be deposited
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in the capital development bond fund and expended as a part thereof. The director, or designee may
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also utilize any private funds that may be made available for the purposes of this act.
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SECTION 13. Sections 1, 2, 3, 11 and 12 of this act shall take effect upon passage. The
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remaining sections of this act shall take effect when and if the state board of elections shall certify
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to the secretary of state that a majority of the qualified electors voting on the proposition contained
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in section 1 hereof have indicated their approval of the project thereunder.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA
***
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This act would submit the state's 2026 capital development program requesting the
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issuance of general obligation bonds totaling one hundred million dollars ($100,000,000) for
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approval of the electorate at the general election to be held in November, 2026.
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Sections 1, 2, 3, 11 and 12 of this act would take effect upon passage. The remaining
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sections of this act would take effect when and if the state board of elections shall certify to the
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secretary of state that a majority of the qualified electors voting on the proposition contained in
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section 1 hereof have indicated their approval of the project thereunder.
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