2023 -- H 6429
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LC003012
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN
$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL
PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW
MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY
COMPLEX
Introduced By: Representatives Casimiro, and Craven
Date Introduced: May 19, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority 1
previously granted, to issue bonds to an amount not exceeding two hundred twenty-two million 2
four hundred sixty thousand dollars ($222,460,000) from time to time under its corporate name and 3
seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds 4
or term bonds or a combination thereof and shall be payable either by maturity of principal in the 5
case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual 6
installments of principal, the first installment to be not later than five (5) years and the last 7
installment not later than thirty (30) years after the date of the bonds. 8
SECTION 2. This act shall constitute an enabling act of the general assembly that is 9
required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under 10
this act for school projects shall not be eligible for state housing aid reimbursement pursuant to § 11
16-7-44 unless the school projects described herein shall have been approved by the Rhode Island 12
department of education. 13
SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 14
treasurer and the president of the town council and shall be issued and sold in such amounts as the 15
town council may authorize by resolution. The manner of sale, denominations, maturities, interest 16
rates and other terms, conditions and details of any bonds or notes issued under this act may be 17
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fixed by the resolution of the town council authorizing the issue or by separate resolution of the 1
town council or, to the extent provisions for these matters are not so made, they may be fixed by 2
the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this act 3
to the contrary, the town may enter into financing agreements with the Rhode Island health and 4
educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 5
with respect to bonds or notes issued in connection with such financing agreements, if any, the 6
town acting by said officers may elect to have the provisions of chapter 38.1 of title 45 apply to the 7
issuance of bonds or notes issued hereunder to the extent the provisions of said chapter are 8
inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode 9
Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to 10
bonds or notes issued in connection with such financing agreements, if any, the town acting by said 11
officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds 12
or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith. 13
SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the 14
treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended for: 15
(1)(i) In an amount not to exceed one hundred sixty-seven million four hundred sixty thousand 16
dollars ($167,460,000) for school purposes, including, but not limited to, the construction of a new 17
middle school and all costs incidental thereto, including, but not limited to, furniture and 18
equipment, demolition and environmental remediation of existing structures, and site 19
improvements; and (ii) In an amount not to exceed fifty-five million dollars ($55,000,000) for a 20
new public safety complex and all costs incidental thereto, including, but not limited to, furniture 21
and equipment, demolition and environmental remediation of existing structures, and site 22
improvements (collectively, the "projects"); (2) In payment of the principal of or interest on 23
temporary notes issued under Section 5 of this act; or (3) In repayment of advances under Section 24
6 of this act. No purchaser of any bonds or notes under this act shall be in any way responsible for 25
the proper application of the proceeds derived from the sale thereof. The projects shall be carried 26
out and all contracts made therefor on behalf of the town by the town council or as may be otherwise 27
directed by the town council. The proceeds of bonds or notes issued under this act, any applicable 28
federal or state assistance and the other monies referred to in Sections 8 and 11 of this act shall be 29
deemed appropriated for the purposes of this act without further action than that required by this 30
act. The bond issue, and any issue of notes, authorized by this act may be consolidated for the 31
purposes of issuance and sale with any other bond and/or note issue of the town heretofore or 32
hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from the 33
sale of the bonds and notes authorized by this act shall be expended for the purposes set forth above. 34
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SECTION 5. The town council may by resolution authorize the issue from time to time of 1
interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in 2
anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original 3
notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued 4
under this act and the amount of original notes issued in anticipation of federal or state aid may not 5
exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes 6
issued hereunder shall be signed by the treasurer and by the president of the town council and shall 7
be payable within five (5) years from their respective dates, but the principal of and interest on 8
notes issued for a shorter period may be renewed or paid from time to time by the issue of other 9
notes hereunder; provided the period from the date of an original note to the maturity of any note 10
issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any 11
temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity 12
of the notes by the issuance of additional temporary notes; provided that, no such refunding shall 13
result in any amount of temporary notes outstanding at any one time in excess of two hundred 14
percent (200%) of the amount of bonds that may be issued under this act; and provided further that, 15
if the issuance of any such refunding notes results in excess of the amount of bonds that may be 16
issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund 17
established with the paying agent which is the paying agent for the notes being refunded. Pending 18
their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the 19
town by the paying agent at the direction of the treasurer in any investment permitted under Section 20
8. The monies in the fund and any investments held as a part of the fund shall be held in trust and 21
shall be applied by the paying agent solely to the payment or prepayment of the principal and 22
interest on the notes being refunded. Upon payment of all principal and interest on the notes being 23
refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The 24
town may pay the principal of and interest on the notes in full or in part from other than the issuance 25
of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case the 26
town's authority to issue bonds or notes in anticipation of bonds under this act shall continue; 27
provided that: (1) The town council passes a resolution evidencing the town's intent to pay off the 28
notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the 29
date of the original note to the maturity of any other note shall not exceed five (5) years. 30
SECTION 6. Pending any authorization or issue of bonds hereunder or pending or in lieu 31
of any authorization or issue of notes hereunder, the treasurer, with the approval of the town 32
council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury 33
of the town to the purposes specified in Section 5, such advances to be repaid without interest from 34
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the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or 1
state assistance or from other available funds. 2
SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal 3
or state assistance, pending their expenditure may be deposited or invested by the treasurer, in 4
demand deposits, time deposits or savings deposits in banks which are members of the Federal 5
Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of 6
America or by any agency or instrumentality thereof or as may be provided in any other applicable 7
law of the State of Rhode Island or resolution of the town council or pursuant to an investment 8
policy of the town. 9
SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall 10
be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 11
bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 12
funds hereunder shall, in the discretion of the treasurer, be applied: (1) To the cost of preparing, 13
issuing and marketing bonds or notes hereunder to the extent not otherwise provided; (2) To the 14
cost of capitalized interest on temporary notes issued under Section 5 of this act not otherwise 15
provided; (3) To the payment of the cost of the projects for which such bonds were issued or to the 16
cost of additional improvements coming within the description of the projects in Section 4 of this 17
act for which such bonds were issued; and/or (4) To the payment of the principal of or interest on 18
bonds or notes issued hereunder; or to any one or more of the foregoing. The cost of preparing, 19
issuing and marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met 20
from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 21
Any balance of bond or note proceeds remaining after payment of the cost of the projects and said 22
additional improvements and the cost of preparing, issuing and marketing bonds or notes hereunder 23
shall be applied to the payment of the principal of or interest on bonds or notes issued hereunder. 24
To the extent permitted by applicable federal laws, any earnings or net profit realized from the 25
deposit or investment of fund hereunder may, upon receipt, be added to and dealt with as part of 26
the revenues of the town from property taxes. In exercising any discretion under this section, the 27
treasurer shall be governed by any instructions adopted by resolution of the town council. The 28
treasurer is authorized to take any action deemed by him or her necessary: (1) To assure that interest 29
on the bonds or notes issued hereunder remains excludable from gross income of the recipients 30
thereof for federal income tax purposes, including, without limitation, paying to the federal 31
government any rebate of earnings derived from the deposit or investment of the proceeds of such 32
bonds or notes that may be required therefor; (2) To comply with the requirements of federal law, 33
including without being limited to regulations and other requirements of the Securities and 34
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Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the 1
town or on the underwriters of such bonds and notes; and/or (3) To comply with the provisions of 2
§§ 16-7-35 through 16-7-47; including making all necessary contracts and agreements to issue said 3
bonds and/or notes through the Rhode Island health and educational building corporation. 4
SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall 5
be obligatory on the town in the same manner and to the same extent as other debts lawfully 6
contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at 7
any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 8
The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 9
within the year on bonds and notes issued hereunder to the extent that monies therefor are not 10
otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 11
levy. In order to provide such sum in each year and notwithstanding any provision of law to the 12
contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 13
limitation as to rate or amount. 14
SECTION 10. Any bonds or notes issued under the provisions of this act, if properly 15
executed by officers of the town in office on the date of execution, shall be valid and binding 16
according to their terms notwithstanding that before the delivery thereof and payment therefor any 17
or all of such officers shall for any reason have ceased to hold office. 18
SECTION 11. The town, acting by resolution of its town council is authorized to apply for, 19
contract for and expend any federal or state advances or other grants or assistance which may be 20
available for the purposes of this act, and any such expenditures may be in addition to other monies 21
provided in this act. To the extent of any inconsistency between any law of this state and any 22
applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 23
where applicable, whether contracted for prior to or after the effective date of this act, may be 24
repaid as project costs under Section 4. 25
SECTION 12. Bonds and notes may be issued under this act without obtaining the approval 26
of any governmental agency or the taking of any proceedings or the happening of any conditions 27
except as specifically required by this act for such issue. In carrying out any project financed in 28
whole or in part under this act, including where applicable the condemnation of any land or interest 29
in land, and in the levy and collection of assessments or other charges permitted by law on account 30
of any such project, all action shall be taken which is necessary to meet constitutional requirements 31
whether or not such action is otherwise required by statute; but the validity of bonds and notes 32
issued hereunder shall in no way depend upon the validity or occurrence of such action. To the 33
extent of any inconsistency between this act and the town charter, this act shall prevail. 34
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SECTION 13. All or any portion of the authority to issue bonds and notes under this act 1
may be extinguished by resolution of the town council, without further action by the general 2
assembly seven (7) years after the effective date of this act. 3
SECTION 14. The question of the approval of this act shall be submitted to the electors of 4
the town at an election on a date to be determined by the town council which occurs at least sixty 5
(60) days after the passage of this act. The question shall be submitted in substantially the following 6
form: "Shall an act, passed at the 2023 session of the General Assembly, entitled 'AN ACT 7
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN 8
$222,460,000 BONDS AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL 9
PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW 10
MIDDLE SCHOOL AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY 11
COMPLEX' be approved?" and the warning for the election shall contain the question to be 12
submitted. The town board of canvassers may combine any two (2) or more voting districts for the 13
election and when so combined shall be treated as a voting district. If so combined, the town board 14
of canvassers shall advertise the combination of districts in a newspaper of general circulation in 15
the town. From the time the election is warned and until it is held, it shall be the duty of the town 16
clerk to keep a copy of the act available at his or her office for public inspection, but the validity of 17
the election shall not be affected by this requirement. 18
SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder 19
of this act shall take effect upon the approval of this act by a majority of those voting on the question 20
at the election prescribed by Section 14. 21
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EXPLANATION
OF
A N A C T
AUTHORIZING THE TOWN OF NORTH KINGSTOWN T O ISSUE NOT MORE THAN
$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL
PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW
MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY
COMPLEX
***
This act would authorize the town of North Kingstown to issue bonds in the amount of two 1
hundred twenty-two million four hundred sixty thousand dollars ($222,460,000) for the 2
construction of a new middle school and a public safety complex, subject to approval by the electors 3
of the town. 4
This Section and Section 14 would take effect upon passage. The remainder of this act 5
would take effect upon the approval of this act by a majority of those voting on the question at the 6
election prescribed by Section 14. 7
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