This bill establishes a supplemental state budget reserve account and authorizes the allocation of $18 million from this account to support the issuance of Hospital Financing Revenue Bonds by the Rhode Island Health and Educational Building Corporation for CharterCARE Health of Rhode Island, Inc. Specifically, the bill mandates that for the fiscal year ending June 30, 2026, the state controller shall transfer $18 million from the supplemental state budget reserve account to general revenue. This funding will be used to create a debt service reserve fund for the bonds, which are intended to enhance the creditworthiness of the financing for the acquisition of Roger Williams Medical Center and Our Lady of Fatima Hospital.

The bill specifies that the $18 million will be allocated to the Rhode Island Health and Educational Building Corporation to fund the debt service reserve fund for the bonds. It also clarifies that the state is not obligated to replenish the fund if it is drawn upon, although it may choose to do so in the future. The authority to incur obligations under this act is contingent upon the successful sale of the bonds, and the act will take effect upon the sale of the bonds, with a provision that it will not take effect if the bond issue does not close by May 8, 2026.

Statutes affected:
2340: 35-3-20.2