Bill
HB 8298
Authorizes a $25 million, general obligation bond referendum to fund Rhode Island’s Bicycle Mobility Plan projects, subject to voter approval and standard debt rules.
Purpose and intent
- The bill proposes a statewide public bond referendum to authorize the sale of general obligation bonds to fund the Rhode Island Statewide Bicycle Mobility Plan.
- The stated goals align with climate, public health, transportation modernization, and economic development objectives by accelerating active transportation infrastructure (bicycling and related facilities).
Key provision highlights
- Section 1 (Legislative findings):
- Recites adoption and goals of the Rhode Island Statewide Bicycle Mobility Plan (2020) and its 20-year implementation framework.
- Emphasizes climate action, health benefits, and economic strategy (Ocean State Accelerates, Moving Forward RI 2050).
- Notes a gap between goals and actual project delivery and cites a 2025 Attorney General comment critical of the STIP for insufficient long-term planning.
- Declares public investment is necessary to advance priority bicycle projects.
- Section 2 (Referendum question to voters):
- Submits a single ballot question at the November 3, 2026 general election.
- Project description: “Bicycle Mobility Plan” with a funding amount of $25,000,000.
- Provides: If approved, the state may issue general obligation bonds, refunding bonds, and/or temporary notes up to $25 million for the bicycle network.
- Section 3 (Ballot labeling and election law):
- Secretary of State to prepare “approve”/“reject” ballot labels consistent with general election laws.
- Section 4 (Approval effect):
- If majority approves, the bond authority is limited to the $25 million approved.
- Section 5 (Bond issuance):
- Treasurer, with Governor’s approval, may issue capital development bonds in serial form up to the approved amount.
- Bonds must comply with standard debt provisions (maturity up to the end of the 20th state fiscal year after issuance, semiannual interest, etc.).
- Bond forms may include redemption terms, transferability, and related provisions.
- Section 6 (Refunding bonds):
- Treasurer may issue refunding bonds to refinance the 2026 bonds, with similar terms but not extending beyond 20 years from original issue.
- Proceeds can be used to prepay the existing bonds; interest proceeds may be invested in U.S. or RI obligations.
- If funded to prepayment, the original bonds may cease to be “debts of the state” after deposits are made (subject to continuing debt service).
- Section 7 (Use of bond proceeds):
- Proceeds deposited into a dedicated Capital Development Bond Fund.
- Director of Administration (or designee) oversees project costs, including land acquisition, planning, design, relocation, construction, equipment, and related services for the Bicycle Mobility Plan.
- Funds must be used only for the described bicycle projects; no overexpenditure beyond designated amounts.
- Section 8 (Sale of bonds):
- Bonds must be sold for not less than par value, with premiums/interest net of costs to become part of the capital plan fund unless federal law directs otherwise.
- Surplus proceeds may be used to retire or redeem bonds as appropriate.
- Section 9 (Tax treatment and debt obligations):
- Bonds and notes are tax-exempt in Rhode Island and constitute general obligations of the state, pledging full faith and credit.
- Section 10 (Investment of fund):
- Capital Development Fund monies may be invested by the State Investment Commission; income goes to the state general fund and is used to pay debt service, with possible rebates to the U.S. Treasury for tax exemption considerations.
- Section 11 (Appropriation for debt service):
- Annual debt service payments are to be funded as necessary from available treasury funds.
- Section 12 (Advances from General Fund):
- Treasurer can advance funds to the Capital Development Bond Fund in anticipation of bond issuance; advances must be repaid upon receipt of bond proceeds.
- Section 13 (Federal/private funds):
- Director may apply for/accept federal or private funds, and use federal requirements, with funds deposited into the Capital Development Bond Fund.
- Section 14 (Effective dates):
- Sections 1, 2, 3, 4, and 12 take effect upon passage.
- Remaining sections take effect only after: the State Board of Elections certifies that a majority of qualified electors voting on the proposition approved the project.
What would be affected
- State financing and debt structure: creation of a dedicated capital development bond program for the Bicycle Mobility Plan.
- Statewide transportation infrastructure: funding would advance a statewide network of off-road and on-street bicycle facilities designed to improve safety and connectivity.
- Local communities and users: anticipated benefits include enhanced transportation options, health outcomes, safety, and economic development through improved mobility.
- Administrative oversight: involvement of the Governor, General Treasurer, Director of Administration, and potentially the State Investment Commission for fund management and project delivery.
Procedural and timeline notes
- Ballot timing: General election on November 3, 2026.
- Conditional effectiveness: Most act provisions (Sections 5–13) would take effect only after the statewide ballot measure is approved by voters and certified.
- Debt term: Bonds may mature no later than the end of the 20th state fiscal year following issuance, with refunding bonds limited to 20 years from original issue.
- Referendum specificity: Only the Bicycle Mobility Plan project is explicit in the proposition.
Overall assessment
- The bill seeks a targeted $25 million general obligation bond authorization to accelerate priority bicycle infrastructure per the Rhode Island Statewide Bicycle Mobility Plan, aligning with climate, health, and economic development objectives, while establishing standard debt issuance, management, and oversight processes and ensuring voter approval via a statewide referendum.
Compiled from official sources — confirm details with the bill’s official record.
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