Rhode Island 2023 Regular Session

Rhode Island House Bill H6453 Compare Versions

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

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5	5	2023 -- H 6453
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7	7	LC003087
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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 LINCOLN TO ISSUE NOT TO EXCEED $14,000,000
16	16	GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
17	17	INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRUCTION OF A NEW
18	18	TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND
19	19	EQUIPPING THEREOF AND ALL COSTS RELATED THERETO
20	20	Introduced By: Representatives Ackerman, Shallcross Smith, and Costantino
21	21	Date Introduced: May 26, 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 Lincoln is hereby empowered, in addition to authority previously 1
27	27	granted, to issue general obligation bonds, notes and other evidences of indebtedness in an amount 2
28	28	not exceeding fourteen million dollars ($14,000,000) from time to time under its corporate name 3
29	29	and seal. The bonds of each issue may be issued in the form of zero-coupon bonds, capital 4
30	30	appreciation bonds, serial bonds or term bonds or a combination thereof and shall be payable either 5
31	31	by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case 6
32	32	of term bonds, in installments of principal, the first installment to be not later than five (5) years 7
33	33	and the last installment not later than thirty (30) years after the date the bonds are issued. All such 8
34	34	bonds of a particular issue may be issued in the form of zero-coupon bonds, capital appreciation 9
35	35	bonds, serial bonds or term bonds or a combination thereof, and may bear interest at a fixed rate or 10
36	36	rates or at a variable or auction rate or rates. The bonds may be sold by a negotiated sale or by 11
37	37	competitive bid and may be issued pursuant to a resolution or an indenture of trust. Annual 12
38	38	installments of principal may be provided for by maturity of principal in the case of serial bonds or 13
39	39	by mandatory serial redemption in the case of term bonds. The amount of principal appreciation 14
40	40	each year on any bonds, after the date of original issuance, shall not be considered to be principal 15
41	41	indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. 16
42	42	The appreciation of principal after the date of original issue shall be considered interest. Only the 17
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45	45	LC003087 - Page 2 of 7
46	46	original principal amount shall be counted in determining the principal amount so issued and any 1
47	47	interest component or premium shall be disregarded. 2
48	48	SECTION 2. The bonds shall be signed by the town director of finance, the town 3
49	49	administrator and the president of the town council and shall be issued and sold in such amounts as 4
50	50	the town council may authorize. The manner of sale, denominations, maturities, interest rates and 5
51	51	other terms, conditions and details of any bonds or notes issued under this act may be fixed by the 6
52	52	proceedings of the town council authorizing the issue or by separate resolution of the town council 7
53	53	or, to the extent provisions for these matters are not so made, they may be fixed by the officers 8
54	54	authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be 9
55	55	delivered to the director of finance, and such proceeds shall be expended: (1) For the development 10
56	56	and construction of a new town-wide centralized rescue station and the furnishing and equipping 11
57	57	thereof and all costs related thereto; (2) For payment of the principal or interest on temporary notes 12
58	58	issued under section 3; (3) In payment of capitalized interest on bonds or notes; (4) In repayment 13
59	59	of advances under section four; or (5) In payment of related costs of issuance of any bonds or notes. 14
60	60	No purchaser of any bonds or notes under this act shall be in any way responsible for the proper 15
61	61	application of the proceeds derived from the sales thereof. The project shall be carried out and all 16
62	62	contracts made therefor on behalf of the town by the town administrator, subject to approval of the 17
63	63	town council. The proceeds of bonds or notes issued under this act, any applicable federal or state 18
64	64	assistance and other monies referred to in section 6 and 9, shall be deemed appropriated for the 19
65	65	purposes of this act without further action than that required by this act. The bond issue authorized 20
66	66	by this act may be consolidated for the purposes of issuance and sale with any other bond issue of 21
67	67	the town heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, 22
68	68	the proceeds from the sale of the bonds authorized by this act shall be expended for the purposes 23
69	69	set forth above. The director of finance, the town administrator and the president of the town 24
70	70	council, on behalf of the town, are hereby authorized to execute such instruments, documents or 25
71	71	other papers as either of them deem necessary or desirable to carry out the intent of this act and are 26
72	72	also authorized to take all actions and execute all documents or agreements necessary to comply 27
73	73	with federal tax and securities laws, which documents or agreements may have a term coextensive 28
74	74	with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and 29
75	75	Exchange Commission and to execute and deliver a continuing disclosure agreement or certificate 30
76	76	in connection with the bonds or notes. 31
77	77	SECTION 3. The town council may by resolution authorize the issue from time to time of 32
78	78	interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the 33
79	79	receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 34
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82	82	LC003087 - Page 3 of 7
83	83	anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 1
84	84	the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 2
85	85	of available federal or state aid as estimated by the director of finance. Temporary notes issued 3
86	86	hereunder shall be signed by the manual or facsimile signatures of the director of finance, the town 4
87	87	manager and the president of the town council shall be payable within five (5) years from their 5
88	88	respective dates, but the principal of and interest on notes issued for a shorter period may be 6
89	89	renewed or paid from time to time by the issue of other notes thereunder, provided the period from 7
90	90	the date of an original note to the maturity or any note issued to renew or pay the same debt or the 8
91	91	interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued 9
92	92	under this section may be refunded prior to the maturity of the notes by the issuance of additional 10
93	93	temporary notes; provided that, no such refunding shall result in any amount of such temporary 11
94	94	notes outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds 12
95	95	which may be issued under this act; and provided, further, that if the issuance of any such refunding 13
96	96	notes results in any amount of such temporary notes outstanding at any one time in excess of the 14
97	97	amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be 15
98	98	deposited in a separate fund established with the bank which is paying agent for the notes being 16
99	99	refunded. Pending their use to pay the notes being refunded, monies in the fund shall be invested 17
100	100	for the benefit of the town by the paying agent at the direction of the director of finance in any 18
101	101	investment permitted under section 5. The monies in the fund and any investments held as a part 19
102	102	of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or 20
103	103	prepayment of the principal of and interest on the notes being refunded. Upon payment of all 21
104	104	principal of and interest on the notes, any excess monies in the fund shall be distributed to the town. 22
105	105	The town may pay the principal of and interest on notes in full, from other than the issuance of 23
106	106	refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town’s 24
107	107	authority to issue bonds or notes in anticipation of bonds under this act shall continue; provided 25
108	108	that: (1) The town council passes a resolution evidencing the town’s intent to pay off the notes 26
109	109	without extinguishing the authority to issue bonds or notes; and (2) That the period from the date 27
110	110	of an original note to the maturity date of any other note shall not exceed five (5) years. 28
111	111	SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 29
112	112	of any authorization or issue of notes hereunder, the director of finance, with the approval of the 30
113	113	town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 31
114	114	treasury of the town to the purposes specified in section 2, such advances to be repaid without 32
115	115	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 33
116	116	federal or state assistance or from other available funds. 34
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120	120	SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 1
121	121	or state assistance, pending their expenditure, may be deposited or invested by the director of 2
122	122	finance in demand deposits, time deposits or savings deposits in banks which are members of the 3
123	123	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 4
124	124	of America or by any agency or instrumentality thereof or as may be provided in any other 5
125	125	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 6
126	126	investment policy of the town. 7
127	127	SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 8
128	128	be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 9
129	129	bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 10
130	130	funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, 11
131	131	issuing, and marketing bonds or notes hereunder to the extent not otherwise provided, to the 12
132	132	payment of the cost of the project, to the payment of the principal of or interest on bonds or notes 13
133	133	issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing, and 14
134	134	marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met 15
135	135	from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 16
136	136	Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 17
137	137	cost of preparing, issuing, and marketing bonds or notes hereunder shall be applied to the payment 18
138	138	of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 19
139	139	applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 20
140	140	hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 21
141	141	property taxes. In exercising any discretion under this section, the director of finance shall be 22
142	142	governed by any instructions adopted by resolution of the town council. 23
143	143	SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 24
144	144	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 25
145	145	contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws. 26
146	146	No such obligation shall at any time be included in the debt of the town for the purpose of 27
147	147	ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay 28
148	148	the principal and interest coming due within the year on bonds and notes issued hereunder to the 29
149	149	extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall 30
150	150	nevertheless be added to the annual tax levy. In order to provide such sum in each year and 31
151	151	notwithstanding any provision of law to the contrary, all taxable property in the town shall be 32
152	152	subject to ad valorem taxation by the town without limitation as to rate or amount. 33
153	153	SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 34
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157	157	executed by officers of the town in office on the date of execution, shall be valid and binding 1
158	158	according to their terms notwithstanding that before the delivery thereof and payment therefor any 2
159	159	or all of such officers shall for any reason have ceased to hold office. 3
160	160	SECTION 9. The town, acting by resolution of its town council is authorized to apply for, 4
161	161	contract for and expend any federal or state advances or other grants or assistance which may be 5
162	162	available for the purposes of this act, and any such expenditures may be in addition to other monies 6
163	163	provided in this act. To the extent of any inconsistency between any law of this state and any 7
164	164	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 8
165	165	where applicable, whether contracted for prior to or after the effective date of this act, may be 9
166	166	repaid as project costs under section 2. 10
167	167	SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 11
168	168	of any governmental agency or the taking of any proceedings or the happening of any conditions 12
169	169	except as specifically required by this act for such issue. In carrying out any project financed in 13
170	170	whole or in part under this act, including where applicable the condemnation of any land or interest 14
171	171	in land, and in the levy and collection of assessments or other charges permitted by law on account 15
172	172	of any such project, all action shall be taken which is necessary to meet constitutional requirements 16
173	173	whether or not such action is otherwise required by statute; but the validity of bonds and notes 17
174	174	issued hereunder shall in no way depend upon the validity or occurrence of such action. 18
175	175	SECTION 11. All or any portion of the authority to issue bonds and notes under this act 19
176	176	may be extinguished by resolution of the town council, without further action by the general 20
177	177	assembly. 21
178	178	SECTION 12. The director of finance, the town administrator, and the president of the 22
179	179	town council, on behalf of the town, are hereby authorized to execute such documents or other 23
180	180	papers as either of them deem necessary or desirable to carry out the intent of this act and are also 24
181	181	authorized to take all actions and execute all documents or agreements necessary to comply with 25
182	182	federal tax and securities laws, which documents or agreements may have a term coextensive with 26
183	183	the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange 27
184	184	Commission (the "Rule") and to execute and deliver a continuing disclosure agreement or 28
185	185	certificate in connection with the bonds or notes in the form as shall be deemed advisable by such 29
186	186	officers in order to comply with the Rule. 30
187	187	SECTION 13. The question of the approval of this act shall be submitted to the electors 31
188	188	of the town at the special election to be held on November 7, 2023 or a special election (other than 32
189	189	a primary), on a date as shall be designated by the town council. The question shall be submitted 33
190	190	in substantially the following form: “Shall an Act, passed at the 2023 session of the General 34
191	191
192	192
193	193	LC003087 - Page 6 of 7
194	194	Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO 1
195	195	EXCEED $14,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES 2
196	196	OF INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRU CTION OF A 3
197	197	NEW TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND 4
198	198	EQUIPPING THEREOF AND ALL COSTS RELATED THERETO,' be approved?" and the 5
199	199	warning for the election shall contain the question to be submitted. From the time the election is 6
200	200	warned and until it is held, it shall be the duty of the town clerk to keep a copy of the act available 7
201	201	at his/her office for public inspection, but the validity of the election shall not be affected by this 8
202	202	requirement. 9
203	203	SECTION 14. This section and the foregoing section shall take effect upon the passage of 10
204	204	this act. The remainder of this act shall take effect upon the approval of this act by a majority of 11
205	205	those voting on the question at the election prescribed by the foregoing section. 12
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207	207	LC003087
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211	211	LC003087 - Page 7 of 7
212	212	EXPLANATION
213	213	OF
214	214	A N A C T
215	215	AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO EXCEED $14,000,000
216	216	GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
217	217	INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRUCTION OF A NEW
218	218	TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND
219	219	EQUIPPING THEREOF AND ALL COSTS RELATED THERETO
220	220	***
221	221	This act would authorize the town of Lincoln to issue general obligation bonds, notes and 1
222	222	other evidences of indebtedness in an amount not exceeding $14,000,000 to finance the 2
223	223	development and construction of a new town-wide centralized rescue station and the furnishing and 3
224	224	equipping thereof and all costs related thereto. 4
225	225	Sections 13 and 14 would take effect upon passage. The remainder of the act would take 5
226	226	effect upon approval of the question provided for in section 13. 6
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228	228	LC003087
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