Rhode Island 2023 Regular Session

Rhode Island House Bill H6429 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2023 -- H 6429
6	6	========
7	7	LC003012
8	8	========
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 NORTH KINGSTOWN TO ISSUE NOT MORE THAN
16	16	$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL
17	17	PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW
18	18	MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY
19	19	COMPLEX
20	20	Introduced By: Representatives Casimiro, and Craven
21	21	Date Introduced: May 19, 2023
22	22	Referred To: House Finance
23	23
24	24
25	25	It is enacted by the General Assembly as follows:
26	26	SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority 1
27	27	previously granted, to issue bonds to an amount not exceeding two hundred twenty-two million 2
28	28	four hundred sixty thousand dollars ($222,460,000) from time to time under its corporate name and 3
29	29	seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds 4
30	30	or term bonds or a combination thereof and shall be payable either by maturity of principal in the 5
31	31	case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual 6
32	32	installments of principal, the first installment to be not later than five (5) years and the last 7
33	33	installment not later than thirty (30) years after the date of the bonds. 8
34	34	SECTION 2. This act shall constitute an enabling act of the general assembly that is 9
35	35	required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under 10
36	36	this act for school projects shall not be eligible for state housing aid reimbursement pursuant to § 11
37	37	16-7-44 unless the school projects described herein shall have been approved by the Rhode Island 12
38	38	department of education. 13
39	39	SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 14
40	40	treasurer and the president of the town council and shall be issued and sold in such amounts as the 15
41	41	town council may authorize by resolution. The manner of sale, denominations, maturities, interest 16
42	42	rates and other terms, conditions and details of any bonds or notes issued under this act may be 17
43	43
44	44
45	45	LC003012 - Page 2 of 7
46	46	fixed by the resolution of the town council authorizing the issue or by separate resolution of the 1
47	47	town council or, to the extent provisions for these matters are not so made, they may be fixed by 2
48	48	the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this act 3
49	49	to the contrary, the town may enter into financing agreements with the Rhode Island health and 4
50	50	educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 5
51	51	with respect to bonds or notes issued in connection with such financing agreements, if any, the 6
52	52	town acting by said officers may elect to have the provisions of chapter 38.1 of title 45 apply to the 7
53	53	issuance of bonds or notes issued hereunder to the extent the provisions of said chapter are 8
54	54	inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode 9
55	55	Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to 10
56	56	bonds or notes issued in connection with such financing agreements, if any, the town acting by said 11
57	57	officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds 12
58	58	or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith. 13
59	59	SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the 14
60	60	treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended for: 15
61	61	(1)(i) In an amount not to exceed one hundred sixty-seven million four hundred sixty thousand 16
62	62	dollars ($167,460,000) for school purposes, including, but not limited to, the construction of a new 17
63	63	middle school and all costs incidental thereto, including, but not limited to, furniture and 18
64	64	equipment, demolition and environmental remediation of existing structures, and site 19
65	65	improvements; and (ii) In an amount not to exceed fifty-five million dollars ($55,000,000) for a 20
66	66	new public safety complex and all costs incidental thereto, including, but not limited to, furniture 21
67	67	and equipment, demolition and environmental remediation of existing structures, and site 22
68	68	improvements (collectively, the "projects"); (2) In payment of the principal of or interest on 23
69	69	temporary notes issued under Section 5 of this act; or (3) In repayment of advances under Section 24
70	70	6 of this act. No purchaser of any bonds or notes under this act shall be in any way responsible for 25
71	71	the proper application of the proceeds derived from the sale thereof. The projects shall be carried 26
72	72	out and all contracts made therefor on behalf of the town by the town council or as may be otherwise 27
73	73	directed by the town council. The proceeds of bonds or notes issued under this act, any applicable 28
74	74	federal or state assistance and the other monies referred to in Sections 8 and 11 of this act shall be 29
75	75	deemed appropriated for the purposes of this act without further action than that required by this 30
76	76	act. The bond issue, and any issue of notes, authorized by this act may be consolidated for the 31
77	77	purposes of issuance and sale with any other bond and/or note issue of the town heretofore or 32
78	78	hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from the 33
79	79	sale of the bonds and notes authorized by this act shall be expended for the purposes set forth above. 34
80	80
81	81
82	82	LC003012 - Page 3 of 7
83	83	SECTION 5. The town council may by resolution authorize the issue from time to time of 1
84	84	interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in 2
85	85	anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original 3
86	86	notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued 4
87	87	under this act and the amount of original notes issued in anticipation of federal or state aid may not 5
88	88	exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes 6
89	89	issued hereunder shall be signed by the treasurer and by the president of the town council and shall 7
90	90	be payable within five (5) years from their respective dates, but the principal of and interest on 8
91	91	notes issued for a shorter period may be renewed or paid from time to time by the issue of other 9
92	92	notes hereunder; provided the period from the date of an original note to the maturity of any note 10
93	93	issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any 11
94	94	temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity 12
95	95	of the notes by the issuance of additional temporary notes; provided that, no such refunding shall 13
96	96	result in any amount of temporary notes outstanding at any one time in excess of two hundred 14
97	97	percent (200%) of the amount of bonds that may be issued under this act; and provided further that, 15
98	98	if the issuance of any such refunding notes results in excess of the amount of bonds that may be 16
99	99	issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund 17
100	100	established with the paying agent which is the paying agent for the notes being refunded. Pending 18
101	101	their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the 19
102	102	town by the paying agent at the direction of the treasurer in any investment permitted under Section 20
103	103	8. The monies in the fund and any investments held as a part of the fund shall be held in trust and 21
104	104	shall be applied by the paying agent solely to the payment or prepayment of the principal and 22
105	105	interest on the notes being refunded. Upon payment of all principal and interest on the notes being 23
106	106	refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The 24
107	107	town may pay the principal of and interest on the notes in full or in part from other than the issuance 25
108	108	of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case the 26
109	109	town's authority to issue bonds or notes in anticipation of bonds under this act shall continue; 27
110	110	provided that: (1) The town council passes a resolution evidencing the town's intent to pay off the 28
111	111	notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the 29
112	112	date of the original note to the maturity of any other note shall not exceed five (5) years. 30
113	113	SECTION 6. Pending any authorization or issue of bonds hereunder or pending or in lieu 31
114	114	of any authorization or issue of notes hereunder, the treasurer, with the approval of the town 32
115	115	council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury 33
116	116	of the town to the purposes specified in Section 5, such advances to be repaid without interest from 34
117	117
118	118
119	119	LC003012 - Page 4 of 7
120	120	the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or 1
121	121	state assistance or from other available funds. 2
122	122	SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal 3
123	123	or state assistance, pending their expenditure may be deposited or invested by the treasurer, in 4
124	124	demand deposits, time deposits or savings deposits in banks which are members of the Federal 5
125	125	Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of 6
126	126	America or by any agency or instrumentality thereof or as may be provided in any other applicable 7
127	127	law of the State of Rhode Island or resolution of the town council or pursuant to an investment 8
128	128	policy of the town. 9
129	129	SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall 10
130	130	be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 11
131	131	bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 12
132	132	funds hereunder shall, in the discretion of the treasurer, be applied: (1) To the cost of preparing, 13
133	133	issuing and marketing bonds or notes hereunder to the extent not otherwise provided; (2) To the 14
134	134	cost of capitalized interest on temporary notes issued under Section 5 of this act not otherwise 15
135	135	provided; (3) To the payment of the cost of the projects for which such bonds were issued or to the 16
136	136	cost of additional improvements coming within the description of the projects in Section 4 of this 17
137	137	act for which such bonds were issued; and/or (4) To the payment of the principal of or interest on 18
138	138	bonds or notes issued hereunder; or to any one or more of the foregoing. The cost of preparing, 19
139	139	issuing and marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met 20
140	140	from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 21
141	141	Any balance of bond or note proceeds remaining after payment of the cost of the projects and said 22
142	142	additional improvements and the cost of preparing, issuing and marketing bonds or notes hereunder 23
143	143	shall be applied to the payment of the principal of or interest on bonds or notes issued hereunder. 24
144	144	To the extent permitted by applicable federal laws, any earnings or net profit realized from the 25
145	145	deposit or investment of fund hereunder may, upon receipt, be added to and dealt with as part of 26
146	146	the revenues of the town from property taxes. In exercising any discretion under this section, the 27
147	147	treasurer shall be governed by any instructions adopted by resolution of the town council. The 28
148	148	treasurer is authorized to take any action deemed by him or her necessary: (1) To assure that interest 29
149	149	on the bonds or notes issued hereunder remains excludable from gross income of the recipients 30
150	150	thereof for federal income tax purposes, including, without limitation, paying to the federal 31
151	151	government any rebate of earnings derived from the deposit or investment of the proceeds of such 32
152	152	bonds or notes that may be required therefor; (2) To comply with the requirements of federal law, 33
153	153	including without being limited to regulations and other requirements of the Securities and 34
154	154
155	155
156	156	LC003012 - Page 5 of 7
157	157	Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the 1
158	158	town or on the underwriters of such bonds and notes; and/or (3) To comply with the provisions of 2
159	159	§§ 16-7-35 through 16-7-47; including making all necessary contracts and agreements to issue said 3
160	160	bonds and/or notes through the Rhode Island health and educational building corporation. 4
161	161	SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall 5
162	162	be obligatory on the town in the same manner and to the same extent as other debts lawfully 6
163	163	contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at 7
164	164	any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 8
165	165	The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 9
166	166	within the year on bonds and notes issued hereunder to the extent that monies therefor are not 10
167	167	otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 11
168	168	levy. In order to provide such sum in each year and notwithstanding any provision of law to the 12
169	169	contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 13
170	170	limitation as to rate or amount. 14
171	171	SECTION 10. Any bonds or notes issued under the provisions of this act, if properly 15
172	172	executed by officers of the town in office on the date of execution, shall be valid and binding 16
173	173	according to their terms notwithstanding that before the delivery thereof and payment therefor any 17
174	174	or all of such officers shall for any reason have ceased to hold office. 18
175	175	SECTION 11. The town, acting by resolution of its town council is authorized to apply for, 19
176	176	contract for and expend any federal or state advances or other grants or assistance which may be 20
177	177	available for the purposes of this act, and any such expenditures may be in addition to other monies 21
178	178	provided in this act. To the extent of any inconsistency between any law of this state and any 22
179	179	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 23
180	180	where applicable, whether contracted for prior to or after the effective date of this act, may be 24
181	181	repaid as project costs under Section 4. 25
182	182	SECTION 12. Bonds and notes may be issued under this act without obtaining the approval 26
183	183	of any governmental agency or the taking of any proceedings or the happening of any conditions 27
184	184	except as specifically required by this act for such issue. In carrying out any project financed in 28
185	185	whole or in part under this act, including where applicable the condemnation of any land or interest 29
186	186	in land, and in the levy and collection of assessments or other charges permitted by law on account 30
187	187	of any such project, all action shall be taken which is necessary to meet constitutional requirements 31
188	188	whether or not such action is otherwise required by statute; but the validity of bonds and notes 32
189	189	issued hereunder shall in no way depend upon the validity or occurrence of such action. To the 33
190	190	extent of any inconsistency between this act and the town charter, this act shall prevail. 34
191	191
192	192
193	193	LC003012 - Page 6 of 7
194	194	SECTION 13. All or any portion of the authority to issue bonds and notes under this act 1
195	195	may be extinguished by resolution of the town council, without further action by the general 2
196	196	assembly seven (7) years after the effective date of this act. 3
197	197	SECTION 14. The question of the approval of this act shall be submitted to the electors of 4
198	198	the town at an election on a date to be determined by the town council which occurs at least sixty 5
199	199	(60) days after the passage of this act. The question shall be submitted in substantially the following 6
200	200	form: "Shall an act, passed at the 2023 session of the General Assembly, entitled 'AN ACT 7
201	201	AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN 8
202	202	$222,460,000 BONDS AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL 9
203	203	PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW 10
204	204	MIDDLE SCHOOL AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY 11
205	205	COMPLEX' be approved?" and the warning for the election shall contain the question to be 12
206	206	submitted. The town board of canvassers may combine any two (2) or more voting districts for the 13
207	207	election and when so combined shall be treated as a voting district. If so combined, the town board 14
208	208	of canvassers shall advertise the combination of districts in a newspaper of general circulation in 15
209	209	the town. From the time the election is warned and until it is held, it shall be the duty of the town 16
210	210	clerk to keep a copy of the act available at his or her office for public inspection, but the validity of 17
211	211	the election shall not be affected by this requirement. 18
212	212	SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder 19
213	213	of this act shall take effect upon the approval of this act by a majority of those voting on the question 20
214	214	at the election prescribed by Section 14. 21
215	215	========
216	216	LC003012
217	217	========
218	218
219	219
220	220	LC003012 - Page 7 of 7
221	221	EXPLANATION
222	222	OF
223	223	A N A C T
224	224	AUTHORIZING THE TOWN OF NORTH KINGSTOWN T O ISSUE NOT MORE THAN
225	225	$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL
226	226	PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW
227	227	MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY
228	228	COMPLEX
229	229	***
230	230	This act would authorize the town of North Kingstown to issue bonds in the amount of two 1
231	231	hundred twenty-two million four hundred sixty thousand dollars ($222,460,000) for the 2
232	232	construction of a new middle school and a public safety complex, subject to approval by the electors 3
233	233	of the town. 4
234	234	This Section and Section 14 would take effect upon passage. The remainder of this act 5
235	235	would take effect upon the approval of this act by a majority of those voting on the question at the 6
236	236	election prescribed by Section 14. 7
237	237	========
238	238	LC003012
239	239	========