Rhode Island 2023 Regular Session

Rhode Island House Bill H6376 Compare Versions

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

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5	5	2023 -- H 6376
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7	7	LC002888
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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	AUTHORIZING THE TOWN OF EAST GREENWICH TO FINANCE THE
16	16	ACQUISITION, CONSTRUCTION, IMPROV EMENT, RENOVATION, ALTERATION,
17	17	FURNISHING AND EQUIPPING OF PUBLIC SCHOOLS AND SCHOOL F ACILITIES IN
18	18	THE TOWN AND ALL EXP ENSES INCIDENT THERETO INCLUDING, BUT NOT
19	19	LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING,
20	20	PARKING AND COSTS OF FINANCING AND TO ISSUE NOT MORE THAN $180,000,000
21	21	BONDS AND/OR NOTES THEREFOR
22	22	Introduced By: Representatives Caldwell, and Shanley
23	23	Date Introduced: May 05, 2023
24	24	Referred To: House Finance
25	25
26	26
27	27	It is enacted by the General Assembly as follows:
28	28	SECTION 1. The town of East Greenwich is hereby empowered, in addition to authority 1
29	29	previously granted, to issue bonds to a principal amount not exceeding one hundred eighty million 2
30	30	dollars ($180,000,000), or such lesser amount as is approved by the voters of the town pursuant to 3
31	31	sections 13 and 14 hereof, from time to time under its corporate name and seal or a facsimile of 4
32	32	such seal. The bonds of each issue may be issued in the form of serial bonds or term bonds or a 5
33	33	combination thereof and shall be payable either by maturity of principal in the case of serial bonds 6
34	34	or by sinking fund installments in the case of term bonds, in annual installments of principal, the 7
35	35	first installment to be not later than five (5) years and the last installment not later than thirty (30) 8
36	36	years after the date of the bonds. All such bonds of a particular issue may be issued in the form of 9
37	37	zero coupon bonds, capital appreciation bonds, serial bonds or term bonds or a combination 10
38	38	thereof. The amount of principal appreciation each year on any bonds, after the date of original 11
39	39	issuance, shall not be considered to be principal indebtedness for the purposes of any constitutional 12
40	40	or statutory debt limit or any other limitation. The appreciation of principal after the date of original 13
41	41	issue shall be considered interest. Only the original principal amount shall be counted in 14
42	42	determining the principal amount so issued and any interest component shall be disregarded. 15
43	43	SECTION 2. The town may be eligible for school housing aid reimbursement on debt 16
44	44
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47	47	service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from 1
48	48	proceeds of bonds issued by the State of Rhode Island (the “state”), from the Rhode Island 2
49	49	department of education (“RIDE”) or from the Rhode Island school building authority. 3
50	50	SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 4
51	51	director of finance and the president of the town council and shall be issued and sold in such 5
52	52	principal amounts as the town council may authorize by resolution. The manner of sale, 6
53	53	denominations, maturities, interest rates and other terms, conditions and details of any bonds or 7
54	54	notes issued under this act may be fixed by the resolutions of the town council authorizing the issue 8
55	55	or by separate resolution of the town council or, to the extent provisions for these matters are not 9
56	56	so made, they may be fixed by the officers authorized to sign the bonds or notes. Interest coupons 10
57	57	(if any) shall bear the manual or facsimile signature of the town director of finance. 11
58	58	Notwithstanding anything contained in this act to the contrary, the town may enter into 12
59	59	financing agreements with the Rhode Island health and educational building corporation pursuant 13
60	60	to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds or notes issued 14
61	61	in connection with such financing agreements, if any, the town may elect to have the provisions 15
62	62	of chapter 38.1 of title 45 apply to the issuance of the bonds or notes issued hereunder to the 16
63	63	extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the town may 17
64	64	enter into financing agreements with the Rhode Island infrastructure bank pursuant to the 18
65	65	provisions of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection with 19
66	66	such financing agreements, if any, the town may elect to have the provisions of chapter 12.2 of title 20
67	67	46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions 21
68	68	of chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the 22
69	69	proceedings of the town council authorizing such issuance or by separate resolution of the town 23
70	70	council, or, to the extent provisions for these matters are not so made, they may be fixed by the 24
71	71	officers authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall 25
72	72	be delivered to the town director of finance, and such proceeds, exclusive of premium and accrued 26
73	73	interest, shall be expended: (1) To finance the acquisition, construction, improvement, renovation, 27
74	74	alteration, furnishing and equipping of public schools and school facilities in the town, or such 28
75	75	specific schools and school facilities as are determined pursuant to sections 13 and 14, and all 29
76	76	expenses incident thereto, including, but not limited to, costs of design, 30
77	77	demolition, athletic fields, landscaping, parking and costs of financing (all of which shall be 31
78	78	hereinafter referred to as the “projects”); (2) In payment of the principal of or interest on temporary 32
79	79	notes issued under section 4; (3) In repayment of advances under section 5; (4) In payment of 33
80	80	related costs of issuance of any bonds or notes; and/or (5) To finance capitalized interest on the 34
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84	84	projects. No purchaser of any bonds or notes under this act shall be in any way responsible for the 1
85	85	proper application of the proceeds derived from the sale thereof. The town shall appoint a school 2
86	86	building committee in accordance with RIDE School Construction Regulations § 4.9.2. The 3
87	87	projects shall be carried out and all contracts made therefor on behalf of the town by the town 4
88	88	council, or the town council may delegate such authority to the school building committee, the 5
89	89	school construction committee, or to the town school committee. The town council, the school 6
90	90	building committee, the school construction committee, and their agents are authorized to enter, 7
91	91	without delay and at reasonable times, any public school buildings and other public school property 8
92	92	for the purpose of accomplishing the projects and to do all acts and deeds necessary or convenient 9
93	93	in connection with the projects. The proceeds of bonds or notes issued under this act, any applicable 10
94	94	federal or state assistance and the other monies referred to in sections 8 and 10 shall be deemed 11
95	95	appropriated for the purposes of this act without further action than that required by this act. The 12
96	96	bond issue authorized by this act may be consolidated for the purposes of issuance and sale with 13
97	97	any other bond issue of the town heretofore or hereafter authorized; provided that, notwithstanding 14
98	98	any such consolidation, the proceeds from the sale of the bonds authorized by this act shall be 15
99	99	expended for the purposes set forth above. The town director of finance and president of the town 16
100	100	council, on behalf of the town, are hereby authorized to execute such instruments, documents or 17
101	101	other papers as either of them deem necessary or desirable to carry out the intent of this act and are 18
102	102	also authorized to take all actions and execute all instruments, documents or agreements necessary 19
103	103	to comply with federal tax and securities laws, which instruments, documents or agreements may 20
104	104	have a term coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 21
105	105	of the Securities and Exchange Commission and to execute and deliver a continuing disclosure 22
106	106	agreement or certificate in connection with the bonds or notes. 23
107	107	SECTION 4. The town council may by resolution authorize the issuance from time to time 24
108	108	of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of 25
109	109	the receipt of federal or state aid for the purposes of this act. The principal amount of original notes 26
110	110	issued in anticipation of bonds may not exceed the principal amount of bonds which may be issued 27
111	111	under this act and the amount of original notes issued in anticipation of federal or state aid may not 28
112	112	exceed the amount of available federal or state aid as estimated by the town director of finance. 29
113	113	Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the town 30
114	114	director of finance and the president of the town council and shall be payable within five (5) years 31
115	115	from their respective dates, but the principal of and interest on notes issued for a shorter period may 32
116	116	be renewed or paid from time to time by the issuance of other notes hereunder; provided the period 33
117	117	from the date of an original note to the maturity of any note issued to renew or pay the same debt 34
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121	121	or interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds 1
122	122	issued under this section may be refunded prior to the maturity of the notes by the issuance of 2
123	123	additional temporary notes; provided that, no such refunding shall result in any principal amount 3
124	124	of such temporary notes outstanding at any one time in excess of two hundred percent (200%) of 4
125	125	the principal amount of bonds which may be issued under this act; and provided, further, that if the 5
126	126	issuance of any such refunding notes results in any amount of such temporary notes outstanding at 6
127	127	any one time in excess of the principal amount of bonds which may be issued under this act, the 7
128	128	proceeds of such refunding notes shall be deposited in a separate fund established with the bank 8
129	129	which is paying agent for the notes being refunded. Pending their use to pay the notes being 9
130	130	refunded, monies in the fund shall be invested for the benefit of the town by the paying agent at the 10
131	131	direction of the town director of finance in any investment permitted under section 6. The monies 11
132	132	in the fund and any investments held as part of the fund shall be held in trust and shall be applied 12
133	133	by the paying agent solely to the payment or prepayment of the principal of and interest on the 13
134	134	notes being refunded. Upon payment of all principal of and interest on the notes, any excess monies 14
135	135	in the fund shall be distributed to the town. The town may pay the principal of and interest on notes 15
136	136	in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant to 16
137	137	section 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of bonds 17
138	138	under this act shall continue; provided that: (1) The town council passes a resolution evidencing 18
139	139	the town’s intent to pay off the notes without extinguishing the authority to issue bonds or notes; 19
140	140	and (2) That the period from the date of an original note to the maturity date of any other note shall 20
141	141	not exceed five (5) years. 21
142	142	SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 22
143	143	of any authorization or issue of notes hereunder, the town director of finance, with the approval of 23
144	144	the town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in 24
145	145	the treasury of the town to the purposes specified in section 3, such advances to be repaid without 25
146	146	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 26
147	147	federal or state assistance or from other available funds. 27
148	148	SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 28
149	149	or state assistance, pending their expenditure, may be deposited or invested by the town director of 29
150	150	finance in demand deposits, time deposits, or savings deposits in banks which are members of the 30
151	151	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 31
152	152	of America or by any agency or instrumentality thereof or as may be provided in any other 32
153	153	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 33
154	154	investment policy of the town. 34
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158	158	SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 1
159	159	be applied to the payment of the first interest due thereon. Any premium arising from the sale of 2
160	160	bonds or notes hereunder shall, in the discretion of the town director of finance, be applied to the 3
161	161	cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise 4
162	162	provided, to the payment of project costs, to the payment of the principal of or interest on bonds or 5
163	163	notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 6
164	164	marketing bonds or notes hereunder may also, in the discretion of the town director of finance, be 7
165	165	met from bond or note proceeds exclusive of premium and accrued interest or from other monies 8
166	166	available therefor. Any balance of bond or note proceeds remaining after payment of the cost of 9
167	167	the projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be 10
168	168	applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the 11
169	169	extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or 12
170	170	investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues 13
171	171	of the town from property taxes. In exercising any discretion under this section, the town director 14
172	172	of finance shall be governed by any instructions adopted by resolution of the town council. 15
173	173	SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 16
174	174	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 17
175	175	contracted by it and shall be excepted from the operation of § 45-12-2 of the general laws and any 18
176	176	provision of the town charter. No such obligation shall at any time be included in the debt of the 19
177	177	town for the purpose of ascertaining its borrowing capacity. The town shall annually appropriate a 20
178	178	sum sufficient to pay the principal and interest coming due within the year on bonds and notes 21
179	179	issued hereunder to the extent that monies therefor are not otherwise provided. If such sum is not 22
180	180	appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in 23
181	181	each year and notwithstanding any provision of law to the contrary, all taxable property in the town 24
182	182	shall be subject to ad valorem taxation by the town without limitation as to rate or amount. 25
183	183	SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if 26
184	184	any, if properly executed by officers of the town in office on the date of execution, shall be valid 27
185	185	and binding according to their terms notwithstanding that before the delivery thereof and payment 28
186	186	therefor any or all of such officers shall for any reason have ceased to hold office. 29
187	187	SECTION 10. The town, acting by resolution of its town council, is authorized to apply 30
188	188	for, contract for and expend any federal or state advances or other grants of assistance which may 31
189	189	be available for the purposes of this act, and any such expenditures may be in addition to the monies 32
190	190	provided in this act. To the extent of any inconsistency between any law of this state and any 33
191	191	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 34
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195	195	where applicable, whether contracted for prior to or after the effective date of this act, may be 1
196	196	repaid as project costs under section 3. 2
197	197	SECTION 11. Bonds and notes may be issued under this act without obtaining approval of 3
198	198	any governmental agency or the taking of any proceedings or the happening of any conditions 4
199	199	except as specifically required by this act for such issue. In carrying out any project financed in 5
200	200	whole or in part under this act, including where applicable the condemnation of any land or interest 6
201	201	in land, and in the levy and collection of assessments or other charges permitted by law on account 7
202	202	of any such project, all action shall be taken which is necessary to meet constitutional requirements 8
203	203	whether or not such action is otherwise required by statute, but the validity of bonds and notes 9
204	204	issued hereunder shall in no way depend upon the validity or occurrence of such action. 10
205	205	SECTION 12. All or any portion of the authorized but unissued authority to issue bonds 11
206	206	and notes under this act may be extinguished by ordinance of the town council after seven (7) years 12
207	207	shall have passed from the approval of this act provided for in section 14, without further action by 13
208	208	the general assembly. 14
209	209	SECTION 13. It shall be a condition precedent to holding of the referendum described in 15
210	210	section 14 hereof and the issuance of bonds and notes hereunder that the town council adopt one or 16
211	211	more resolutions which provide for the exact principal amount of bonds and notes to be presented 17
212	212	to the voters. 18
213	213	SECTION 14. At a general or local election to be held on a date that shall be designated 19
214	214	by the town council, there shall be submitted to voters of the town a question or questions in 20
215	215	substantially the following form, providing for the maximum principal amount to be issued (not to 21
216	216	exceed one hundred eighty million dollars ($180,000,000) in the aggregate) and, if the town council 22
217	217	so determines, providing for specific schools and school facilities to be improved: 23
218	218	“Shall the Town of East Greenwich issue General Obligation Bonds and/or Notes in a 24
219	219	Principal Amount Not To Exceed $____________ for the Purpose of Financing the Acquisition, 25
220	220	Construction, Improvement, Renovation, Alteration, Furnishing and Equipping of 26
221	221	____________________ Public Schools and School Facilities in the Town and all Attendant 27
222	222	Expenses Including, but Not Limited to, Costs of Design, Demolition, Athletic Fields, 28
223	223	Landscaping, Parking, and Costs of Financing?” and the warning for the election shall contain the 29
224	224	question to be submitted. From the time the election is warned and until it is held, it shall be the 30
225	225	duty of the town clerk to keep a copy of this act available for public inspection, but the validity of 31
226	226	the election shall not be affected by this requirement. To the extent of any inconsistency between 32
227	227	this act and the town charter, this act shall prevail. 33
228	228	SECTION 15. Sections 13, 14, and 15 shall take effect upon the passage of this act. The 34
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232	232	remainder of this act shall take effect upon the approval of this act by a majority of those voting on 1
233	233	the question at the election prescribed by section 14. 2
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240	240	EXPLANATION
241	241	OF
242	242	A N A C T
243	243	AUTHORIZING THE TOWN OF EAST GREENWICH TO FINANCE THE
244	244	ACQUISITION, CONSTRUCTION, IMPROV EMENT, RENOVATION, ALTERATION,
245	245	FURNISHING AND EQUIPPING OF PUBLIC SCHOOLS AND SCHOOL F ACILITIES IN
246	246	THE TOWN AND ALL EXP ENSES INCIDENT THERETO INCLUDING, BUT NOT
247	247	LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING,
248	248	PARKING AND COSTS OF FINANCING AND TO ISSUE NOT MORE THAN $180,000,000
249	249	BONDS AND/OR NOTES THEREFOR
250	250	***
251	251	This act authorizes the town of East Greenwich to issue not more than one hundred eighty 1
252	252	million dollar ($180,000,000) bonds and notes to finance the acquisition, construction, 2
253	253	improvement, renovation, alteration, furnishing and equipping of public schools and school 3
254	254	facilities in the town, or such specific schools and school facilities as are determined pursuant to 4
255	255	sections 13 and 14, and all expenses incident thereto, including, but not limited to, costs of design, 5
256	256	demolition, athletic fields, landscaping, parking and costs of financing. 6
257	257	Sections 13 and 14 provide that the town council adopt a resolution or resolutions providing 7
258	258	for the exact principal amount of bonds and notes to be presented to the voters and, if the town 8
259	259	council so determines, the specific schools and school facilities to be financed. Sections 13, 14, and 9
260	260	15 of this act would take effect upon passage. The remainder of the act would take effect upon 10
261	261	approval by the voters of the town of the question or questions provided for in section 14. 11
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