Bill > H7408

This bill authorizes the state to provide up to $18,000,000 to fund a debt service reserve fund, which acts as a financial safety net, for bonds issued by the Rhode Island Health and Educational Building Corporation (the "Corporation") to help finance the acquisition of Roger Williams Medical Center and Our Lady of Fatima Hospital by CharterCARE Health of Rhode Island, Inc. These hospitals are described as essential community facilities facing financial distress and are currently undergoing a sale process approved by the bankruptcy court and state regulations like the Hospital Conversions Act. The bill clarifies that the state is not obligated to replenish this reserve fund if it's used, and any remaining funds will go back to a state budget reserve account. The state's obligation to provide this funding is contingent on the successful sale and issuance of these bonds, which will not be considered a debt of the state itself. Additionally, the bill amends the state budget law to allow for the transfer of $18,000,000 from the supplemental state budget reserve account to general revenue for the fiscal year ending June 30, 2026, and allocates this amount for hospital financing support. This act will take effect upon the sale of the bonds, with a deadline of May 8, 2026, for the bond issue to close.

Budget and Finance

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