MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2026 RELATING TO ROGER WILLIAMS MEDICAL CENTER AND OUR LADY OF FATIMA HOSPITAL AND AUTHORIZING THE STATE OF RHODE ISLAND TO PROVIDE FINANCING SUPPORT TO ASSIST THE SALE OF T, the official text

H7408 2026 -- H 7408 ======== LC004723 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2026 RELATING TO ROGER WILLIAMS MEDICAL CENTER AND OUR LADY OF FATIMA HOSPITAL AND AUTHORIZING THE STATE OF RHODE ISLAND TO PROVIDE FINANCING SUPPORT TO ASSIST THE SALE OF THE HOSPITALS TO CHARTERCARE HEALTH OF RHODE ISLAND, INC. Introduced By: Representatives Abney, Slater, O Brien, J. Brien, Shekarchi, Corvese, Blazejewski, Kazarian, Cortvriend, and Hull Date Introduced: January 29, 2026 Referred To: House Finance (Governor/Attorney General) It is enacted by the General Assembly as follows: 1 ARTICLE 1: RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS 2 ARTICLE 2: RELATING TO THE SUPPLEMENTAL STATE BUDGET RESERVE 3 ACCOUNT 4 ARTICLE 3: RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT 5 OF FY 2026 6 ARTICLE 4: RELATING TO EFFECTIVE DATES 1 ARTICLE 1 2 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS 3 SECTION 1. This article shall serve as the joint resolution and authorization required 4 pursuant to Rhode Island General Laws § 35-18-1, et seq (the “Rhode Island Public Corporation 5 Debt Management Act”) and other applicable law. 6 SECTION 2. CharterCARE Health of Rhode Island, Inc. Debt Service Reserve Fund 7 WHEREAS, The General Assembly has historically adopted laws and provided various 8 levels of support for the benefit of hospitals and healthcare facilities in the state for the health, 9 safety and welfare of the Rhode Island people; and 10 WHEREAS, Certain community hospitals act as the sole source of immediate access to 11 hospital care for residents of the areas they serve and are essential to the maintenance of public 12 health and safety; and 13 WHEREAS, The diversity of services provided by these essential community hospitals are 14 necessary for the overall health and safety of the community, but the costs of such services result 15 in financial distress for the hospitals that must serve large uninsured or governmentally insured 16 populations; 17 WHEREAS, Because of the important medical services provided by such hospitals, 18 restoring and ensuring the continued financial viability of these essential community hospitals is 19 necessary for the public health and safety; and 20 WHEREAS, Roger William Medical Center located in Providence, Rhode Island and Our 21 Lady of Fatima Hospital, located in North Providence, Rhode Island (the “Hospitals”) are distressed 22 essential community hospitals, currently under the supervision of the United States Bankruptcy 23 Court for the Northern District of Texas Dallas Division Case No 25-80002 (SGJ) and are currently 24 in the process of being sold to CharterCARE Health of Rhode Island, Inc. pursuant to an order of 25 the Bankruptcy Court and state approvals pursuant to the Hospital Conversions Act Rhode Island 26 General Laws § 23-17.14-1 et seq. and the Licensing of Healthcare Facilities Act Rhode Island 27 General Laws § 23-17-1 et seq.; and 28 WHEREAS, In fiscal year 2024, Roger Williams Medical Center provided care for nearly 29 31,500 emergency room patients, 55,000 inpatient cases and 84,000 outpatient visits, 30 demonstrating that the financial viability of Roger Williams Medical Center is vital to the public 31 health and safety of the community it serves; and 32 WHEREAS, In fiscal year 2024, Our Lady of Fatima Hospital provided care for nearly 33 25,500 emergency room patients, 4,857 inpatient cases and 124,000 outpatient visits, 34 demonstrating that the financial viability of Our Lady of Fatima Hospital is vital to the public health LC004723 - Page 2 of 7 1 and safety of the community it serves; and 2 WHEREAS, Ensuring the financial viability of the Hospitals is expected to preserve two 3 thousand seven hundred (2,700) jobs and benefit the State of Rhode Island; and 4 WHEREAS, To preserve the viability of the Hospitals, it is necessary to provide financing 5 support to assist the sale of the Hospitals to CharterCARE Health of Rhode Island, Inc.; and 6 WHEREAS, CharterCARE Health of Rhode Island, Inc., itself or acting through its 7 affiliate or a special purpose entity created for such purpose, as borrower, intends to finance the 8 acquisition of the Hospitals and all or a portion of the related costs through the issuance of limited 9 obligations of the Rhode Island Health and Educational Building Corporation (the “Corporation”) 10 under its hospital revenue bond program; and 11 WHEREAS, Due to market conditions and to enhance the creditworthiness of the 12 borrower, it is critical to the sale of the bonds that the state provide no greater than eighteen million 13 dollars ($18,000,000) to fund a debt service reserve fund as credit support for the bonds; and 14 WHEREAS, The state from time to time may fund the debt service reserve fund from 15 available monies as set forth in Article 3 herein or by paying the costs to obtain a letter of credit, 16 surety or other credit support for the bonds (the “Credit Facility”), or any combination of the 17 foregoing; and 18 WHEREAS, That the state’s obligations under any Credit Facility will be subject to 19 appropriation therefor by the General Assembly in each budget year; and 20 WHEREAS, The maximum obligation of the state under any Credit Facility shall be 21 $18,000,000 not including interest on any amounts drawn and fees; and 22 WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the 23 General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island 24 of certain obligations, including financing guarantees or other credit support agreements. 25 NOW THEREFORE, It is enacted and resolved by the General Assembly as follows: 26 RESOLVED, That this General Assembly hereby approves the creation of a debt service 27 reserve fund for the bonds in a principal amount funded by the state not to exceed $18,000,000 in 28 accordance with Article 3 hereof, or, at the option of the state, in lieu of cash funding of the debt 29 service reserve fund, the establishment of a Credit Facility to fund the debt service reserve fund for 30 the bonds in a principal amount of not to exceed $18,000,000; and be it further 31 RESOLVED, That the state shall have no obligation to replenish the debt service reserve 32 fund, however, nothing contained herein shall prohibit the state by act of the General Assembly 33 from doing so in the event the debt service reserve fund is drawn upon; and be it further 34 RESOLVED, That any funds remaining in the debt service reserve fund either upon LC004723 - Page 3 of 7 1 payment in full of the bonds or upon the substitution of cash funding with a Credit Facility shall 2 revert to the supplemental state budget reserve account established pursuant to Rhode Island 3 General Laws § 35-3-20.2; and be it further 4 RESOLVED, That the interest rate on any Credit Facility shall not exceed the maximum 5 rate permitted by law; and be it further 6 RESOLVED, That the state, acting through the general treasurer shall execute agreements 7 in connection with the establishment of a Credit Facility as contemplated herein and any other 8 agreements necessary to effectuate the purposes of this act; and be it further 9 RESOLVED, That bonds issued by the Corporation will be special obligations of the 10 Corporation payable from funds received by the Corporation under the bond documents and other 11 revenues received by the Corporation, in any combination or priority as may be designated in the 12 proceedings of the Corporation authorizing the issuance of such debt; and be it further 13 RESOLVED, That the Credit Facility will not constitute indebtedness of the state or any 14 of its subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions 15 is pledged; and be it further 16 RESOLVED, That the state’s authority to incur the obligations set forth herein is 17 contingent upon the sale and issuance of the bonds to provide funds for the purchase of the 18 Hospitals and all or a portion of the costs associated therewith. The authority hereunder shall 19 become effective upon the sale of the bonds and shall remain in effect as long the bonds remain 20 outstanding. 21 RESOLVED, That this joint resolution shall take effect upon passage. 22 SECTION 3. This article shall take effect upon passage 23 ARTICLE 2 24 RELATING TO THE SUPPLEMENTAL STATE BUDGET RESERVE ACCOUNT 25 SECTION 1. Section 35-3-20.2 of the General Laws in Chapter 35-3 entitled State 26 Budget is hereby amended to read as follows: 27 35-3-20.2. Supplemental state budget reserve account. 28 (a) There is hereby created within the general fund a supplemental state budget reserve 29 account, which shall be administered by the state controller and which shall be used solely for the 30 purpose of providing such sums as may be appropriated to fund any unanticipated general revenue 31 deficit caused by a general revenue shortfall. 32 (b) At any time after the third quarter of a fiscal year that it is indicated that total resources 33 which are defined to be the aggregate of estimated general revenue, general revenue receivables, 34 and available free surplus in the general fund will be less than the estimates upon which current 35 appropriations were based, the general assembly may make appropriations from the supplemental 36 state budget reserve account for the difference between the estimated total resources and the 37 original estimates upon which enacted appropriations were based, but only in the amount of the 38 difference based upon the revenues projected at the latest state revenue estimating conference 39 pursuant to chapter 16 of this title as reported by the chairperson of that conference. 40 (c) Whenever a transfer has been made pursuant to subsection (b), that transfer shall be 41 considered as estimated general revenues for the purposes of determining the amount to be 42 transferred to the Rhode Island capital plan fund for the purposes of § 35-3-20.1(b). 43 (d) The supplemental state budget reserve account shall consist of: (1) Such sums as the 44 state may from time to time directly transfer to the account as authorized in law; and (2) Any 45 amounts transferred pursuant to § 35-6-1(e). 46 (e) Notwithstanding the provisions of this section or any other law to the contrary, for the 47 fiscal year ending June 30, 2026, the state controller shall transfer the sum of eighteen million 48 dollars ($18,000,000) from the supplemental state budget reserve account to general revenue. 49 LC004723 - Page 5 of 7 1 ARTICLE 3 2 RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2026 3 SECTION 1. Section 1 of Article 1 of Chapter 278 of the Public Laws of 2025 is hereby 4 amended as follows: 5 Increase general revenue by $18,000,000 by adding a new line item within the general 6 program of the department of administration by inserting the following text after the line “Library 7 Construction Aid 2,115,628”: 8 Hospital Financing Support Debt Service Reserve $18,000,000 9 Provided that, in order to provide credit enhancement to the proposed Hospital Financing 10 Revenue Bonds (CharterCARE Health of Rhode Island, Inc. Issue) to be issued by the Rhode Island 11 Health and Educational Building Corporation, $18,000,000 be allocated to the Rhode Island Health 12 and Educational Building Corporation to be used to fund a debt service reserve fund for the bonds 13 14 LC004723 - Page 6 of 7 1 ARTICLE 4 2 RELATING TO EFFECTIVE DATE 3 SECTION 1. Except as otherwise provided herein, this act shall take effect upon the sale 4 of the proposed Hospital Financing Revenue Bonds (CharterCARE Health of Rhode Island, Inc. 5 Issue) to be issued by the Rhode Island Health and Educational Building Corporation, and further 6 provided that if the bond issue does not close by May 8, 2026 this act shall not take effect. 7 SECTION 2. The article shall take effect upon passage. ======== LC004723 ======== LC004723 - Page 7 of 7