Rhode Island 2023 Regular Session

Rhode Island House Bill H6451 Compare Versions

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

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5	5	2023 -- H 6451
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7	7	LC003090
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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 NORTH SMITHFIELD TO FINANCE THE
16	16	DEVELOPMENT AND CONS TRUCTION OF A NEW POLICE STATION OR THE
17	17	RENOVATION, IMPROVEM ENT, ALTERATION AND REPAIR OF AN EXISTING
18	18	BUILDING TO BE USED AS A POLICE STATION, AS DETERMINED BY THE TOWN
19	19	COUNCIL AND THE FURNISHING AND EQUIPPING THEREOF BY THE ISSUE OF NOT
20	20	MORE THAN $18,000,000 OF BONDS AND/OR NOTES THEREFOR
21	21	Introduced By: Representatives Newberry, and J. Brien
22	22	Date Introduced: May 26, 2023
23	23	Referred To: House Municipal Government & Housing
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25	25
26	26	It is enacted by the General Assembly as follows:
27	27	SECTION 1. The town of North Smithfield is hereby empowered, in addition to authority 1
28	28	previously granted, to issue general obligation bonds and notes to an amount not exceeding eighteen 2
29	29	million dollars ($18,000,000) from time to time under its corporate name and seal. The bonds of 3
30	30	each issue may be issued in the form of serial bonds or term bonds or a combination thereof and 4
31	31	shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial 5
32	32	redemption in the case of term bonds, in annual installments of principal, in such installments as 6
33	33	are fixed by the proceedings of the town council authorizing the issue or by separate resolution of 7
34	34	the town council. All such bonds of a particular issue may be issued in the form of zero coupon 8
35	35	bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof, and may 9
36	36	bear interest at a fixed rate or rates or at a variable or auction rate or rates, as determined by the 10
37	37	proceedings of the town council authorizing the issue or by separate resolution of the town council. 11
38	38	The bonds may be sold by a negotiated sale or by competitive bid and issued pursuant to a resolution 12
39	39	or an indenture of trust, as is determined by the proceedings of the town council authorizing the 13
40	40	issue or by separate resolution of the town council; provided that, the final maturity of such bonds 14
41	41	shall not exceed thirty (30) years from and after the date the bonds are issued. Annual installments 15
42	42	of principal may be provided for by maturity of principal in the case of serial bonds or by mandatory 16
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45	45	LC003090 - Page 2 of 7
46	46	serial redemption in the case of term bonds. The amount of principal appreciation each year on any 1
47	47	bonds, after the date of original issuance, shall not be considered to be principal indebtedness for 2
48	48	the purposes of any constitutional or statutory debt limit or any other limitation. The appreciation 3
49	49	of principal after the date of original issue shall be considered interest. Only the original principal 4
50	50	amount shall be counted in determining the principal amount so issued and any interest component 5
51	51	shall be disregarded. 6
52	52	SECTION 2. The bonds shall be signed by the director of finance and the president of the 7
53	53	town council and shall be issued and sold in such amounts as the town council may authorize. The 8
54	54	manner of sale, denominations, maturities, interest rates and other terms, conditions and details of 9
55	55	any bonds or notes issued under this act may be fixed by the proceedings of the town council 10
56	56	authorizing the issue or by separate resolution of the town council or, to the extent provisions for 11
57	57	these matters are not so made, they may be fixed by the officers authorized to sign the bonds or 12
58	58	notes. The proceeds derived from the sale of the bonds shall be delivered to the director of finance, 13
59	59	and such proceeds, exclusive of premiums and accrued interest, shall be expended: (1) For the 14
60	60	purpose of financing the development and construction of a new police station or the renovation, 15
61	61	improvement, alteration and repair of an existing building to be used as a police station, as 16
62	62	determined by the town council and the furnishing and equipping thereof; (2) In payment of the 17
63	63	principal of and/or interest on temporary notes issued under section 3; (3) In repayment of advances 18
64	64	made pursuant to section 4; and/or (4) In payment of costs of issuance associated with the issuance 19
65	65	of bonds or notes hereunder. No purchaser of any bonds or notes under this act shall be in any way 20
66	66	responsible for the proper application of the proceeds derived from the sale thereof. The proceeds 21
67	67	of bonds or notes issued under this act, any applicable federal or state assistance and the other 22
68	68	monies referred to in sections 6 and 9, shall be deemed appropriated for the purpose of this act 23
69	69	without further action than that required by this act. This bond issue authorized by this act may be 24
70	70	consolidated for the purpose of issuance and sale with any other bond issue of the town heretofore 25
71	71	or hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from 26
72	72	the sale of the bonds authorized by this act shall be expended for the purposes set forth above. The 27
73	73	director of finance and the president of the town council, on behalf of the town, are hereby 28
74	74	authorized to execute such instruments, documents or other papers as either of them deem necessary 29
75	75	or desirable to carry out the intent of this act and are also authorized to take all actions and execute 30
76	76	all documents or agreements necessary to comply with federal tax and securities laws, which 31
77	77	documents or agreements may have a term coextensive with the maturity of the bonds authorized 32
78	78	hereby, including Rule 15c2-12 of the Securities and Exchange Commission and to execute and 33
79	79	deliver a continuing disclosure agreement or certificate in connection with the bonds or notes. 34
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83	83	SECTION 3. 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 issue of bonds or in anticipation of the 2
85	85	receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 3
86	86	anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 4
87	87	the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 5
88	88	of available federal or state aid as estimated by the director of finance. Temporary notes issued 6
89	89	hereunder shall be signed by the director of finance and 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 notes 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 the 12
95	95	maturity of the notes by the issuance of additional temporary notes; provided that, no such 13
96	96	refunding shall result in any amount of such temporary notes outstanding at any one time in excess 14
97	97	of two hundred percent (200%) of the amount of bonds which may be issued under this act; and 15
98	98	provided, further that, if the issuance of any such refunding notes results in any amount of such 16
99	99	temporary notes outstanding at any one time in excess of the amount of bonds which may be issued 17
100	100	under this act, the proceeds of such refunding notes shall be deposited in a separate fund established 18
101	101	with the bank which is paying agent for the notes being refunded. Pending their use to pay the notes 19
102	102	being refunded, monies in the fund shall be invested for the benefit of the town by the paying agent 20
103	103	at the direction of the director of finance in any investment permitted under section 5. The monies 21
104	104	in the fund and any investments held as a part of the fund shall be held in trust and shall be applied 22
105	105	by the paying agent solely to the payment or prepayment of the principal of and interest on the 23
106	106	notes being refunded. Upon payment of all principal of and interest on the notes, any excess monies 24
107	107	in the fund shall be distributed to the town. The town may pay the principal of and interest on notes 25
108	108	in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant to 26
109	109	section 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of bonds 27
110	110	under this act shall continue; provided that: (1) The town council passes a resolution evidencing 28
111	111	the town’s intent to payoff the notes; and (2) That the period from the date of an original note to 29
112	112	the maturity date of any other notes shall not exceed five (5) years. 30
113	113	SECTION 4. 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 director of finance, with the approval of the 32
115	115	town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 33
116	116	treasury of the town to the purposes specified in section 2, such advances to be repaid without 34
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120	120	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 1
121	121	federal or state assistance or from other available funds. 2
122	122	SECTION 5. 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 director of 4
124	124	finance in demand deposits, time deposits or savings deposits in banks which are members of the 5
125	125	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 6
126	126	of America or by any agency or instrumentality thereof or as may be provided in any other 7
127	127	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 8
128	128	investment policy of the town. 9
129	129	SECTION 6. 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 shall, in the discretion of the director of finance, be applied to the cost of 12
132	132	preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to 13
133	133	the payment of the cost of the project, to the payment of the principal of or interest on bonds or 14
134	134	notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 15
135	135	marketing bonds or notes issued hereunder may also, in the discretion of the director of finance, be 16
136	136	met from bond or note proceeds exclusive of accrued interest or from other monies available 17
137	137	therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project 18
138	138	and the cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the 19
139	139	payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted 20
140	140	by applicable federal laws, any earnings or net profit realized from the deposit or investment of 21
141	141	funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town 22
142	142	from property taxes. In exercising any discretion under this section, the director of finance shall be 23
143	143	governed by any instructions adopted by resolution of the town council. 24
144	144	SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 25
145	145	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 26
146	146	contracted by it and shall be accepted from the operation of § 45-12-2. No such obligation shall at 27
147	147	any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 28
148	148	The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 29
149	149	within the year on bonds and notes issued hereunder to the extent that monies therefor are not 30
150	150	otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 31
151	151	levy. In order to provide such sum in each year and notwithstanding any provision of law to the 32
152	152	contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 33
153	153	limitation as to rate or amount. 34
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157	157	SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 1
158	158	executed by officers of the town in office on the date of execution, shall be valid and binding 2
159	159	according to their terms notwithstanding that before the delivery thereof and payment therefor any 3
160	160	or all such officers shall for any reason have ceased to hold office. 4
161	161	SECTION 9. The town, acting by resolution of its town council, is authorized to apply for, 5
162	162	contract for and expend any federal or state advances or other grants or assistance which may be 6
163	163	available for the purposes of this act, and any such expenditures may be in addition to other monies 7
164	164	provided in this act. To the extent of any inconsistency between any law of this state and any 8
165	165	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 9
166	166	where applicable, whether contracted for prior to or after the effective date of this act, may be 10
167	167	repaid as project costs under section 2. 11
168	168	SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 12
169	169	of any governmental agency or the taking of any proceedings or the happening of any conditions 13
170	170	except as specifically required by this act for such issue. In carrying out any project financed in 14
171	171	whole or in part under this act, including where applicable the condemnation of any land or interest 15
172	172	in land, and in the levy and collection of assessments or other charges permitted by law on account 16
173	173	of any such project, all action shall be taken which is necessary to meet constitutional requirements 17
174	174	whether or not such action is otherwise required by statute; but the validity of bonds and notes 18
175	175	issued hereunder shall in no way depend upon the validity or occurrence of such action. 19
176	176	SECTION 11. The question of the approval of this act shall be submitted to the electors of 20
177	177	the town at the special election to be held on November 7, 2023 or at a general or special election 21
178	178	(other than a primary election) to be held on a date as shall be designated by the town council. The 22
179	179	question shall be submitted in substantially the following form: “Shall an act, passed at the 2023 23
180	180	session of the general assembly, entitled ‘AN ACT AUTHORIZING THE TOWN OF NORTH 24
181	181	SMITHFIELD TO FINANCE THE DEVELOPMENT AND CONSTRUCTION OF A NEW 25
182	182	POLICE STATION OR THE RENOVATION, IMPROVEMENT, ALTERATION AND REPAIR 26
183	183	OF AN EXISTING BUILDING TO BE USED AS A POLICE STATION, AS DETERMINED BY 27
184	184	THE TOWN COUNCIL AND THE FURNISHING AND EQUIPPING THEREOF, BY THE 28
185	185	ISSUANCE OF NOT MORE THAN $18,000,000 OF BONDS AND/OR NOTES THEREFOR’ 29
186	186	be approved?” The warning for the election shall contain the question to be submitted. From the 30
187	187	time the election is warned and until it is held, it shall be the duty of the town clerk to keep a copy 31
188	188	of the act available at his or her office for public inspection, but the validity of the election shall 32
189	189	not be affected by this requirement. To the extent of any inconsistency between this act and the 33
190	190	town charter, this act shall prevail. 34
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194	194	SECTION 12. Sections 11 and 12 shall take effect upon the passage of this act. The 1
195	195	remainder of this act shall take effect upon the approval of this act by a majority of those voting on 2
196	196	the question at the election prescribed by the foregoing section. 3
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203	203	EXPLANATION
204	204	OF
205	205	A N A C T
206	206	AUTHORIZING THE TOWN OF NORTH SMITHFIELD TO FINANCE THE
207	207	DEVELOPMENT AND CONS TRUCTION OF A NEW POLICE STATION OR THE
208	208	RENOVATION, IMPROVEM ENT, ALTERATION AND REPAIR OF AN EXISTING
209	209	BUILDING TO BE USED AS A POLICE STATION, AS DETERMINED BY THE TOWN
210	210	COUNCIL AND THE FURNISHING AND EQUIPPING THEREOF BY THE ISSUE OF NOT
211	211	MORE THAN $18,000,000 OF BONDS AND/OR NOTES THEREFOR
212	212	***
213	213	This act would authorize the town of North Smithfield to issue eighteen million dollars 1
214	214	($18,000,000) of general obligation bonds and notes in order to finance the development and 2
215	215	construction of a new police station or the renovation, improvement, alteration and repair of an 3
216	216	existing building to be used as a police station, as determined by the town council and the furnishing 4
217	217	and equipping thereof. 5
218	218	Sections 11 and 12 would take effect upon passage. The remainder of the act would take 6
219	219	effect upon approval of the act by the electors of the town of North Smithfield. 7
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221	221	LC003090
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