Rhode Island 2023 Regular Session

Rhode Island House Bill H6126 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6126
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7	7	LC002032
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	AMENDING CHAPTERS 106 AND 107 OF THE LOCAL ACTS OF 2021 BOTH ENTITLED
16	16	“AN ACT RELATING TO SCHOOL CONSTRUCTION AND FINANCING IN THE CITY OF
17	17	CENTRAL FALLS AND AUTHORIZING THE CITY OF CENTRAL FALLS TO ISSUE NOT
18	18	TO EXCEED $5,760,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER
19	19	EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVAT ION,
20	20	IMPROVEMENT, ALTERAT ION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS
21	21	AND SCHOOL FACILITIES IN THE CITY”
22	22	Introduced By: Representative Joshua J. Giraldo
23	23	Date Introduced: March 03, 2023
24	24	Referred To: House Finance
25	25
26	26
27	27	It is enacted by the General Assembly as follows:
28	28	WHEREAS, In 2021, the General Assembly passed as companion bills Local Acts 1
29	29	Chapters 106 and 107 relating to school construction and financing in the city of Central Falls (the 2
30	30	“Prior Acts”); and 3
31	31	WHEREAS, The Prior Acts authorized the State, acting through the general treasurer to 4
32	32	execute a Financing Agreement and any other agreements necessary to effectuate the purposes of 5
33	33	the Prior Acts and the Prior Acts served as the joint resolution required pursuant to Rhode Island 6
34	34	General Laws §35-18-1, et seq (the “Rhode Island Public Corporation Debt Management Act”); 7
35	35	WHEREAS, The Prior Acts were silent on the use of premium generated from the sale of 8
36	36	bonds or notes issued by the Rhode Island Heath and Educational Building Corporation payable 9
37	37	from annual appropriations by the State; and 10
38	38	WHEREAS, It is desirable that premium on the sale of bonds and notes be permitted to be 11
39	39	used to pay costs of the Central Falls School Project as defined in the Prior Acts. 12
40	40	NOW THEREFORE, It is enacted and resolved by the General Assembly as follows: 13
41	41	SECTION 1. Section 2 of Local Acts of 2021 Chapters 106 and 107 are hereby each 14
42	42	amended as follows: 15
43	43	SECTION 2. City of Central Falls School Project. 16
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46	46	LC002032 - Page 2 of 4
47	47	WHEREAS, The WHEREAS clauses in paragraphs 1 through 5 hereof are hereby 1
48	48	incorporated herein by reference. 2
49	49	WHEREAS, The City of Central Falls is proposing a project consisting of the construction, 3
50	50	renovation, improvement, alteration, repair, furnishing and equipping of schools and school 4
51	51	facilities in the city; and 5
52	52	WHEREAS, The Project will be financed through the Rhode Island Health and Educational 6
53	53	Building Corporation (the “Corporation”) under its school financing revenue bond program, with 7
54	54	an expected term of not to exceed thirty (30) years and it is anticipated that the State will be a 8
55	55	signatory to the Financing Agreement with the Rhode Island Health and Educational Building 9
56	56	Corporation; and 10
57	57	WHEREAS, It is anticipated that the State’s obligations under the Financing Agreement 11
58	58	will be subject to appropriation therefor by the General Assembly in each budget year; and 12
59	59	WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the 13
60	60	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island 14
61	61	of certain obligations, including financing guarantees or other agreements; and 15
62	62	WHEREAS, The principal amount of bonds which will finance the project costs and costs 16
63	63	of financing covered by the Financing Agreement is not expected to exceed $144,000,000. Any 17
64	64	premium received from the sale of any bonds or notes shall be used toward project costs and shall 18
65	65	not reduce the principal amount of bonds or notes. Debt service payments will be supported by 19
66	66	revenues received by the Corporation under the Financing Agreement which include annual 20
67	67	appropriations for debt service made by the State, state school construction aid payments and state 21
68	68	school operations aid payments if any, pursuant to chapter 16-7 of the Rhode Island general laws 22
69	69	and payments from the City of Central Falls under the Financing Agreement. Total debt service on 23
70	70	the bonds in not expected to exceed $9,400,000 annually and $281,000,000 in the aggregate based 24
71	71	on an average interest rate of five percent (5.00%); 25
72	72	Now therefor be it resolved 26
73	73	RESOLVED, That this General Assembly hereby approves the issuance of bonds or notes 27
74	74	to finance the Central Falls School Project in a principal amount up to $144,000,000 plus any 28
75	75	original issue premium, such bonds or notes not to be reduced by any premium received on the sale 29
76	76	of any bonds or notes which premium shall be used for project costs for the Central Falls School 30
77	77	Project; and be it further 31
78	78	RESOLVED, That the State, acting through the general treasurer may execute the 32
79	79	Financing Agreement as contemplated herein and any other agreements necessary to effectuate the 33
80	80	purposes of this act; and be it further 34
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84	84	RESOLVED, That the bonds will be special obligations of the Corporation payable from 1
85	85	funds received by the Corporation under the Financing Agreement and other revenues received by 2
86	86	the Corporation, in any combination or priority as may be designated in the proceedings of the 3
87	87	Corporation authorizing the issuance of such debt. The total debt service on the bonds is estimated 4
88	88	to average approximately nine million four hundred thousand dollars ($9,400,000) per year or 5
89	89	approximately two hundred eighty-one million dollars ($281,000,000) in the aggregate, at an 6
90	90	average interest rate of approximately five percent (5%) and an approximately thirty (30) year 7
91	91	maturity; and be it further 8
92	92	RESOLVED, That the bonds will not constitute indebtedness of the State or any of its 9
93	93	subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is 10
94	94	pledged. This act shall constitute an enabling act of the general assembly that is required pursuant 11
95	95	to § 16-7-44. 12
96	96	RESOLVED, That the State’s authority to incur the obligations set forth herein will expire 13
97	97	within five (5) years of the date of passage of this act if such financing transaction is not executed 14
98	98	prior to that date. 15
99	99	SECTION 3. This act shall take effect upon passage. 16
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106	106	EXPLANATION
107	107	OF
108	108	A N A C T
109	109	AMENDING CHAPTERS 106 AND 107 OF THE LOCAL ACTS OF 2021 BOTH ENTITLED
110	110	“AN ACT RELATING TO SCHOOL CONSTRUCTION AND FINANCING IN THE CITY OF
111	111	CENTRAL FALLS AND AUTHORIZING THE CITY OF CENTRAL FALLS TO ISSUE NOT
112	112	TO EXCEED $5,760,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER
113	113	EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVA TION,
114	114	IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS
115	115	AND SCHOOL FACILITIES IN THE CITY”
116	116	***
117	117	This act would clarify that premium received on the sale of bonds or notes shall be used 1
118	118	for project costs. 2
119	119	This act would take effect upon passage. 3
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121	121	LC002032
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