Rhode Island 2023 Regular Session

Rhode Island House Bill H6404 Compare Versions

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

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5	5	2023 -- H 6404
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7	7	LC002993
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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 BARRINGTON TO FINANCE THE CONSTRUCTION,
16	16	IMPROVEMENT, RENOVAT ION, ALTERATION, FURNISHING AND EQUIPPING OF
17	17	PUBLIC SCHOOLS AND SCHOOL F ACILITIES IN THE TOWN AND ALL EXPENSES
18	18	INCIDENT THERETO INCLUDING, BUT NOT LIMITED TO, COSTS OF
19	19	DESIGN, ATHLETIC FIELDS, PLAYGROUNDS, LANDSCAPING, PARKING AND COSTS
20	20	OF FINANCING AND TO ISSUE NOT MORE THAN $250,000,000 BONDS AND/OR
21	21	NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A
22	22	REIMBURSEMENT RATE O R STATE SHARE RATIO OF NOT LESS THAN 35 PERCENT
23	23	AT THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE
24	24	REDUCED BY THE AMOUN T OF CERTAIN GRANTS RECEIVED FROM STATE BOND
25	25	PROCEEDS, FROM THE RHODE ISLAND DEPARTME NT OF EDUCATION OR FROM
26	26	THE RHODE ISLAND SCHOOL BUILDING AUTHORITY
27	27	Introduced By: Representatives Knight, and Boylan
28	28	Date Introduced: May 12, 2023
29	29	Referred To: House Finance
30	30
31	31
32	32	It is enacted by the General Assembly as follows:
33	33	SECTION 1. The town of Barrington is hereby empowered, in addition to authority 1
34	34	previously granted, to issue bonds (hereinafter “bonds”) up to a principal amount not exceeding 2
35	35	two hundred fifty million dollars ($250,000,000) or such lesser amount as is approved by the voters 3
36	36	of the town pursuant to Sections 14 and 15 hereof, from time to time under its corporate name and 4
37	37	seal or a facsimile of such seal provided; however, that, bonds shall not be issued unless the 5
38	38	conditions of Section 2 hereof as to the level of state aid are met. The bonds of each issue may be 6
39	39	issued in the form of serial bonds or term bonds or a combination thereof and shall be payable 7
40	40	either by maturity of principal in the case of serial bonds or by sinking fund installments in the case 8
41	41	of term bonds, in annual installments of principal, the first installment to be not later than five (5) 9
42	42	years and the last installment not later than thirty (30) years after the date of the bonds. All such 10
43	43	bonds of a particular issue may be issued in the form of zero-coupon bonds, capital appreciation 11
44	44	bonds, serial bonds or term bonds or a combination thereof. The amount of principal appreciation 12
45	45	each year on any bonds, after the date of original issuance, shall not be considered to be principal 13
46	46
47	47
48	48	LC002993 - Page 2 of 8
49	49	indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. 1
50	50	The appreciation of principal after the date of original issue shall be considered interest. Only the 2
51	51	original principal amount shall be counted in determining the principal amount so issued and any 3
52	52	interest component shall be disregarded. 4
53	53	SECTION 2. The town may be eligible for school housing aid reimbursement on debt 5
54	54	service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from 6
55	55	proceeds of bonds issued by the State of Rhode Island (the “state”), from the Rhode Island 7
56	56	department of education (“RIDE”) or from the Rhode Island school building authority. The 8
57	57	principal amount of borrowing authorized pursuant to this act shall be reduced by the amount of 9
58	58	certain grants actually received by the town from state bond proceeds, from RIDE or from the 10
59	59	Rhode Island school building authority; provided however, that, the amount of borrowing 11
60	60	authorized shall not be reduced by the amount of any grant received by the town for any portion of 12
61	61	the project financed by capital reserve funds. Bonds and notes shall not be issued under this act 13
62	62	unless the town has received a letter from RIDE confirming that the then current school housing 14
63	63	aid reimbursement rate under chapter 7 of title 16, as amended from time to time, or financial 15
64	64	assistance from the school building authority capital fund, or pursuant to any other law hereafter 16
65	65	enacted providing for funds to municipalities for school housing purposes, is not less than thirty-17
66	66	five percent (35%) of debt service for those expenditures which are eligible for state aid. 18
67	67	SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 19
68	68	finance director and the president of the town council and shall be issued and sold in such principal 20
69	69	amounts as the town council may authorize by resolution. The manner of sale, denominations, 21
70	70	maturities, interest rates and other terms, conditions and details of any bonds or notes issued under 22
71	71	this act may be fixed by the proceedings of the town council authorizing the issue or by separate 23
72	72	resolution of the town council or, to the extent provisions for these matters are not so made, they 24
73	73	may be fixed by the officers authorized to sign the bonds. Notwithstanding anything contained in 25
74	74	this act to the contrary, the town may enter into financing agreements with the Rhode Island health 26
75	75	and educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 27
76	76	of the general laws and, with respect to notes or bonds issued in connection with such financing 28
77	77	agreements, if any, the town may elect to have the provisions of chapter 38.1 of title 45 of the 29
78	78	general laws apply to the issuance of the bonds or notes issued hereunder to the extent the 30
79	79	provisions of title 45, chapter 38.1 of the general laws are inconsistent herewith. In addition, the 31
80	80	town may enter into financing agreements with the Rhode Island infrastructure bank pursuant to 32
81	81	the provisions of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection 33
82	82	with such financing agreements, if any, the town may elect to have the provisions of chapter 12.2 34
83	83
84	84
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86	86	of title 46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions 1
87	87	of chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings 2
88	88	of the town council authorizing such issuance or by separate resolution of the town council, or, to 3
89	89	the extent provisions for these matters are not so made, they may be fixed by the officers authorized 4
90	90	to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to 5
91	91	the town finance director, and such proceeds exclusive of premiums and accrued interest, shall be 6
92	92	expended: (1) To finance the construction, improvement, renovation, alteration, furnishing 7
93	93	and equipping of public schools and school facilities in the town, or such specific schools and 8
94	94	school facilities as are determined pursuant to Sections 14 and 15, and all expenses incident 9
95	95	thereto including, but not limited to, costs of design, athletic fields, playgrounds, landscaping, 10
96	96	parking and costs of financing; (2) In payment of the principal of or interest on temporary notes 11
97	97	issued under Section 4; (3) In repayment of advances under Section 4; (4) In payment of related 12
98	98	costs of issuance of any bonds or notes; and/or (5) To finance capitalized interest during 13
99	99	construction of the project (the “project”). No purchaser of any bonds or notes under this act shall 14
100	100	be in any way responsible for the proper application of the proceeds derived from the sale thereof. 15
101	101	The project shall be carried out and all contracts made therefor on behalf of the town by the town 16
102	102	council, or the town council may delegate such authority to the town school committee. The 17
103	103	proceeds of bonds or notes issued under this act, any applicable federal or state assistance and the 18
104	104	other monies referred to in Sections 7 and 10 shall be deemed appropriated for the purposes of this 19
105	105	act without further action than that required by this act. The bonds authorized by this act may be 20
106	106	consolidated for the purpose of issuance and sale with any other bonds of the town heretofore or 21
107	107	hereafter authorized, provided that, notwithstanding any such consolidation, the proceeds from the 22
108	108	sale of the bonds authorized by this act shall be expended for the purposes set forth above. 23
109	109	SECTION 4. The town council may by resolution authorize the issuance from time to time 24
110	110	of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of 25
111	111	the receipt of federal or state aid for the purposes of this act. The principal amount of original notes 26
112	112	issued in anticipation of bonds may not exceed the principal amount of bonds which may be issued 27
113	113	under this act and the amount of original notes issued in anticipation of federal or state aid may not 28
114	114	exceed the amount of available federal or state aid as estimated by the finance director. Temporary 29
115	115	notes issued hereunder shall be signed by the manual or facsimile signatures of the town finance 30
116	116	director and the president of the town council and shall be payable within five (5) years from their 31
117	117	respective dates, but the principal of and interest on notes issued for a shorter period may be 32
118	118	renewed or paid from time to time by the issuance of other notes hereunder; provided the period 33
119	119	from the date of an original note to the maturity of any note issued to renew or pay the same debt 34
120	120
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123	123	or interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds 1
124	124	issued under this section may be refunded prior to the maturity of the notes by the issuance of 2
125	125	additional temporary notes, provided that no such refunding shall result in any principal amount of 3
126	126	such temporary notes outstanding at any one time in excess of two hundred percent (200%) of the 4
127	127	principal amount of bonds which may be issued under this act; and provided, further that, if the 5
128	128	issuance of any such refunding notes results in any amount of such temporary notes outstanding at 6
129	129	any one time in excess of the principal amount of bonds which may be issued under this act, the 7
130	130	proceeds of such refunding notes shall be deposited in a separate fund established with the bank 8
131	131	which is paying agent for the notes being refunded. Pending their use to pay the notes being 9
132	132	refunded, monies in the fund shall be invested for the benefit of the town by the paying agent at the 10
133	133	direction of the town finance director in any investment permitted under Section 6. The monies in 11
134	134	the fund and any investments held as part of the fund shall be held in trust and shall be applied by 12
135	135	the paying agent solely to the payment or prepayment of the principal of and interest on the notes 13
136	136	being refunded. Upon payment of all principal of and interest on the notes, any excess monies in 14
137	137	the fund shall be distributed to the town. The town may pay the principal of and interest on notes 15
138	138	in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant to 16
139	139	Section 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of bonds 17
140	140	under this act shall continue provided that: (1) The town council passes a resolution evidencing the 18
141	141	town’s intent to pay off the notes without extinguishing the authority to issue bonds or notes; and 19
142	142	(2) That the period from the date of an original note to the maturity date of any other note shall not 20
143	143	exceed five (5) years. 21
144	144	SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 22
145	145	of any authorization or issue of notes hereunder, the town finance director, with the approval of the 23
146	146	town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 24
147	147	treasury of the town to the purposes specified in Section 3, such advances to be repaid without 25
148	148	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 26
149	149	federal or state assistance or from other available funds. 27
150	150	SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 28
151	151	or state assistance, pending their expenditure may be deposited or invested by the town finance 29
152	152	director in demand deposits, time deposits or savings deposits in banks which are members of the 30
153	153	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 31
154	154	of America or by any agency or instrumentality thereof or as may be provided in any other 32
155	155	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 33
156	156	investment policy of the town. 34
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160	160	SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 1
161	161	be applied to the payment of the first interest due thereon. Any premium arising from the sale of 2
162	162	bonds or notes hereunder shall, in the discretion of the town finance director, be applied to the cost 3
163	163	of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, 4
164	164	to the payment of the project costs, to the payment of the principal of or interest on bonds or notes 5
165	165	issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 6
166	166	marketing bonds or notes hereunder may also, in the discretion of the town finance director, be met 7
167	167	from bond or note proceeds exclusive of premium and accrued interest or from other monies 8
168	168	available therefor. Any balance of bond or note proceeds remaining after payment of the cost of 9
169	169	the projects and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be 10
170	170	applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the 11
171	171	extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or 12
172	172	investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues 13
173	173	of the town from property taxes. In exercising any discretion under this section, the town finance 14
174	174	director shall be governed by any instructions adopted by resolution of the town council. 15
175	175	SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 16
176	176	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 17
177	177	contracted by it and shall be excepted from the operation of § 45-12-2 and any provisions of the 18
178	178	town charter. No such obligation shall at any time be included in the debt of the town for the purpose 19
179	179	of ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay 20
180	180	the principal and interest coming due within the year on bonds and notes issued hereunder to the 21
181	181	extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall 22
182	182	nevertheless be added to the annual tax levy. In order to provide such sum in each year and 23
183	183	notwithstanding any provision of law to the contrary, all taxable property in the town shall be 24
184	184	subject to ad valorem taxation by the town without limitation as to rate or amount. 25
185	185	SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if 26
186	186	any, if properly executed by officers of the town in office on the date of execution, shall be valid 27
187	187	and binding according to their terms notwithstanding that before the delivery thereof and payment 28
188	188	therefor any or all of such officers shall for any reason have ceased to hold office. 29
189	189	SECTION 10. The town, acting by resolution of its town council, is authorized to apply 30
190	190	for, contract for and expend any federal or state advances or other grants or assistance which may 31
191	191	be available for the purposes of this act, and any such expenditures may be in addition to the monies 32
192	192	provided in this act. To the extent of any inconsistency between any law of this state and any 33
193	193	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 34
194	194
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197	197	where applicable, whether contracted for prior to or after the effective date of this act, may be 1
198	198	repaid as project costs under Section 3. 2
199	199	SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 3
200	200	of any governmental agency or the taking of any proceedings or the happening of any conditions 4
201	201	except as specifically required by this act for such issue. In carrying out any project financed in 5
202	202	whole or in part under this act, including where applicable the condemnation of any land or interest 6
203	203	in land, and in the levy and collection of assessments or other charges permitted by law on account 7
204	204	of any such project, all action shall be taken which is necessary to meet constitutional requirements 8
205	205	whether or not such action is otherwise required by statute, but the validity of bonds and notes 9
206	206	issued hereunder shall in no way depend upon the validity or occurrence of such action. 10
207	207	SECTION 12. The town finance director and the president of the town council, on behalf 11
208	208	of the town, are hereby authorized to execute such instruments, documents or other papers as either 12
209	209	of them deem necessary or desirable to carry out the intent of this act and are also authorized to 13
210	210	take all actions and execute all instruments, documents or agreements necessary to comply with 14
211	211	federal tax and securities laws, which instruments, documents or agreements may have a term 15
212	212	coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the 16
213	213	Securities and Exchange Commission (the “Rule”) and to execute and deliver a continuing 17
214	214	disclosure agreement or certificate in connection with the bonds or notes in the form as shall be 18
215	215	deemed advisable by such officers in order to comply with the Rule. 19
216	216	SECTION 13. All or any portion of the authorized but unissued authority to issue bonds 20
217	217	and notes under this act may be extinguished by resolution of the town council after seven (7) years 21
218	218	shall have passed from the approval of this act provided for in Section 15, without further action 22
219	219	by the general assembly. 23
220	220	SECTION 14. It shall be a condition precedent to holding of the referendum described in 24
221	221	Section 15 hereof and the issuance of bonds and notes hereunder that the town council adopt one 25
222	222	or more resolutions which provide for the exact principal amount of bonds and notes to be presented 26
223	223	to the voters, with due regard to any recommendation of the school committee. 27
224	224	SECTION 15. At the general election to be held on November 7, 2023, there shall be 28
225	225	submitted to voters of the town a question or questions in substantially the following form, 29
226	226	providing for the maximum principal amount to be issued (not to exceed $250,000,000 in the 30
227	227	aggregate) and, if the town council so determines, providing for specific schools and school 31
228	228	facilities to be improved: 32
229	229	“Shall the town of Barrington issue general obligation bonds and/or notes in a principal 33
230	230	amount not to exceed $____________ for the purpose of financing the construction, improvement, 34
231	231
232	232
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234	234	renovation, alteration, furnishing and equipping of ____________ public schools and school 1
235	235	facilities in the town and all expenses incident thereto including, but not limited to, costs of design, 2
236	236	athletic fields, playgrounds, landscaping, parking, and costs of financing, subject to approval of 3
237	237	state housing aid at a reimbursement rate or state share ratio of not less than 35% at the time of 4
238	238	issuance and provided that the authorization shall be reduced by the amount of certain grants 5
239	239	received from state bond proceeds, from the Rhode Island department of education or from the 6
240	240	Rhode Island school building authority?” and the warning for the election shall contain the question 7
241	241	to be submitted. From the time the election is warned and until it is held, it shall be the duty of the 8
242	242	town clerk to keep a copy of this act available for public inspection, but the validity of the election 9
243	243	shall not be affected by this requirement. To the extent of any inconsistency between this act and 10
244	244	the town charter, this act shall prevail. 11
245	245	SECTION 16. This act shall constitute an enabling act of the general assembly that is 12
246	246	required pursuant to § 16-7-44 of the general laws. Bonds or other evidences of indebtedness issued 13
247	247	under this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-14
248	248	7-44 of the general laws unless the school projects have been approved by the Rhode Island 15
249	249	department of education. 16
250	250	SECTION 17. This Section 17 and Sections 14 and 15 shall take effect upon the passage 17
251	251	of this act. The remainder of this act shall take effect upon the approval of this act by a majority of 18
252	252	those voting on the question at the election prescribed by Section 15. 19
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259	259	EXPLANATION
260	260	OF
261	261	A N A C T
262	262	AUTHORIZING THE TOWN OF BARRINGTON TO FINANCE THE CONSTRUCTION,
263	263	IMPROVEMENT, RENOVAT ION, ALTERATION, FURNISHING AND EQUIPPING OF
264	264	PUBLIC SCHOOLS AND SCHOOL F ACILITIES IN THE TOWN AND ALL EXPENSES
265	265	INCIDENT THERETO INCLUDING, BUT NOT LIMITED TO, COSTS OF
266	266	DESIGN, ATHLETIC FIELDS, PLAYGROUNDS, LANDSCAPING, PARKING AND COSTS
267	267	OF FINANCING AND TO ISSUE NOT MORE THAN $250,000,000 BONDS AND/OR
268	268	NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A
269	269	REIMBURSEMENT RATE O R STATE SHARE RATIO OF NOT LESS THAN 35 PERCENT
270	270	AT THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE
271	271	REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND
272	272	PROCEEDS, FROM THE RHODE ISLAND DEPARTME NT OF EDUCATION OR FROM
273	273	THE RHODE ISLAND SCHOOL BUILDING AUTHORITY
274	274	***
275	275	This act would authorize the town of Barrington to issue not more than $250,000,000 bonds 1
276	276	and notes to finance the construction, improvement, renovation, alteration, furnishing 2
277	277	and equipping of public schools and school facilities in the town or such specific schools and school 3
278	278	facilities as are determined pursuant to Sections 14 and 15 and all expenses incident thereto, 4
279	279	including, but not limited to, costs of design, athletic fields, playgrounds, landscaping, parking, and 5
280	280	costs of financing, subject to approval of state housing aid at a reimbursement rate or state share 6
281	281	ratio of not less than thirty-five percent (35%) at the time of issuance and provided that the 7
282	282	authorization would be reduced by the amount of certain grants received from state bond proceeds, 8
283	283	from the Rhode Island department of education or from the Rhode Island school building authority. 9
284	284	Bonds issued under this act would not be eligible for state aid reimbursement pursuant to § 16-7-10
285	285	44 of the general laws unless the school projects have been approved by the Rhode Island 11
286	286	department of education. 12
287	287	Sections 14 and 15 would provide that the town council adopt a resolution or resolutions 13
288	288	providing for the exact principal amount of bonds and notes to be presented to the voters and, if the 14
289	289	town council so determines, the specific schools and school facilities to be financed. Sections 14, 15
290	290	15, and 17 of this act would take effect upon passage. The remainder of the act would take effect 16
291	291	upon approval by the voters of the town of the question or questions provided for in Section 15. 17
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