Rhode Island 2023 Regular Session

Rhode Island House Bill H6454 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 6454
6	6	========
7	7	LC003062
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 LINCOLN TO ISSUE NOT TO EXCEED $25,000,000
16	16	GENERAL OBLIGATION BONDS AND NOTES FOR THE CONSTRUCTION,
17	17	RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND
18	18	EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY SCHOOLS
19	19	Introduced By: Representatives Ackerman, Shallcross Smith, and Costantino
20	20	Date Introduced: May 26, 2023
21	21	Referred To: House Finance
22	22
23	23
24	24	It is enacted by the General Assembly as follows:
25	25	SECTION 1. The town of Lincoln is hereby empowered, in addition to authority previously 1
26	26	granted, to issue general obligation bonds and notes in an amount not exceeding twenty-five million 2
27	27	dollars ($25,000,000) from time to time under its corporate name and seal. The bonds of each issue 3
28	28	may be issued in the form of zero-coupon bonds, capital appreciation bonds, serial bonds or term 4
29	29	bonds or a combination thereof and shall be payable either by maturity of principal in the case of 5
30	30	serial bonds or by mandatory serial redemption in the case of term bonds, in installments of 6
31	31	principal, the first installment to be not later than five (5) years and the last installment not later 7
32	32	than thirty (30) years after the date the bonds are issued. All such bonds of a particular issue may 8
33	33	be issued in the form of zero-coupon bonds, capital appreciation bonds, serial bonds or term bonds 9
34	34	or a combination thereof, and may bear interest at a fixed rate or rates or at a variable or auction 10
35	35	rate or rates. The bonds may be sold by a negotiated sale or by competitive bid and may be issued 11
36	36	pursuant to a resolution or an indenture of trust. Annual installments of principal may be provided 12
37	37	for by maturity of principal in the case of serial bonds or by mandatory serial redemption in the 13
38	38	case of term bonds. The amount of principal appreciation each year on any bonds, after the date of 14
39	39	original issuance, shall not be considered to be principal indebtedness for the purposes of any 15
40	40	constitutional or statutory debt limit or any other limitation. The appreciation of principal after the 16
41	41	date of original issue shall be considered interest. Only the original principal amount shall be 17
42	42
43	43
44	44	LC003062 - Page 2 of 7
45	45	counted in determining the principal amount so issued and any interest component or premium 1
46	46	shall be disregarded. 2
47	47	SECTION 2. The bonds shall be signed by the town director of finance, the town 3
48	48	administrator and the president of the town council and shall be issued and sold in such amounts as 4
49	49	the town council may authorize. The manner of sale, denominations, maturities, interest rates and 5
50	50	other terms, conditions and details of any bonds or notes issued under this act may be fixed by the 6
51	51	proceedings of the town council authorizing the issue or by separate resolution of the town council 7
52	52	or, to the extent provisions for these matters are not so made, they may be fixed by the officers 8
53	53	authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be 9
54	54	delivered to the director of finance, and such proceeds shall be expended: (1) For the construction, 10
55	55	renovation, rehabilitation, repair, improvements, furnishing and equipping of and/or additions to 11
56	56	Lincoln elementary schools; (2) For payment of the principal or interest on temporary notes issued 12
57	57	under section 3; (3) In payment of capitalized interest on bonds or notes; (4) In repayment of 13
58	58	advances under section 4; or (5) In payment of related costs of issuance of any bonds or notes. No 14
59	59	purchaser of any bonds or notes under this act shall be in any way responsible for the proper 15
60	60	application of the proceeds derived from the sales thereof. The project shall be carried out and all 16
61	61	contracts made therefor on behalf of the town by the town administrator, subject to approval of the 17
62	62	town council. The proceeds of bonds or notes issued under this act, any applicable federal or state 18
63	63	assistance and other monies referred to in section 6 and 9, shall be deemed appropriated for the 19
64	64	purposes of this act without further action than that required by this act. The bond issue authorized 20
65	65	by this act may be consolidated for the purposes of issuance and sale with any other bond issue of 21
66	66	the town heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, 22
67	67	the proceeds from the sale of the bonds authorized; by this act shall be expended for the purposes 23
68	68	set forth above. The director of finance, the town administrator and the president of the town 24
69	69	council, on behalf of the town, are hereby authorized to execute such instruments, documents or 25
70	70	other papers as either of them deem necessary or desirable to carry out the intent of this act and are 26
71	71	also authorized to take all actions and execute all documents or agreements necessary to comply 27
72	72	with federal tax and securities laws, which documents or agreements may have a term coextensive 28
73	73	with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and 29
74	74	Exchange Commission and to execute and deliver a continuing disclosure agreement or certificate 30
75	75	in connection with the bonds or notes. Notwithstanding anything contained in this act to the 31
76	76	contrary, the town may enter into financing agreements with the Rhode Island health and 32
77	77	educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 33
78	78	with respect to bonds or notes issued in connection with such financing agreements, if any, the 34
79	79
80	80
81	81	LC003062 - Page 3 of 7
82	82	town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds 1
83	83	or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent 2
84	84	herewith. In addition, the town may enter into financing agreements with the Rhode Island 3
85	85	infrastructure bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to bonds 4
86	86	or notes issued in connection with such financing agreements, if any, the town may elect to have 5
87	87	the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder 6
88	88	to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may 7
89	89	be fixed by the proceedings of the town council authorizing such issuance of by separate resolution 8
90	90	of the town council, or, to the extent provisions for these matters are not so made, they may be 9
91	91	fixed by the officers authorized to sign the bonds or notes. 10
92	92	SECTION 3. The town council may by resolution authorize the issue from time to time of 11
93	93	interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the 12
94	94	receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 13
95	95	anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 14
96	96	the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 15
97	97	of available federal or state aid as estimated by the director of finance. Temporary notes issued 16
98	98	hereunder shall be signed by the manual or facsimile signatures of the director of finance, the town 17
99	99	manager and the president of the town council shall be payable within five (5) years from their 18
100	100	respective dates, but the principal of and interest on notes issued for a shorter period may be 19
101	101	renewed or paid from time to time by the issue of other notes thereunder, provided the period from 20
102	102	the date of an original note to the maturity or any note issued to renew or pay the same debt or the 21
103	103	interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued 22
104	104	under this section may be refunded prior to the maturity of the notes by the issuance of additional 23
105	105	temporary notes; provided that, no such refunding shall result in any amount of such temporary 24
106	106	notes outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds 25
107	107	which may be issued under this act; and provided, further, that if the issuance of any such refunding 26
108	108	notes results in any amount of such temporary notes outstanding at any one time in excess of the 27
109	109	amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be 28
110	110	deposited in a separate fund established with the bank which is paying agent for the notes being 29
111	111	refunded. Pending their use to pay the notes being refunded, monies in the fund shall be invested 30
112	112	for the benefit of the town by the paying agent at the direction of the director of finance in any 31
113	113	investment permitted under section 5. The monies in the fund and any investments held as a part 32
114	114	of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or 33
115	115	prepayment of the principal of and interest on the notes being refunded. Upon payment of all 34
116	116
117	117
118	118	LC003062 - Page 4 of 7
119	119	principal of and interest on the notes, any excess monies in the fund shall be distributed to the town. 1
120	120	The town may pay the principal of and interest on notes in full, from other than the issuance of 2
121	121	refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town’s 3
122	122	authority to issue bonds or notes in anticipation of bonds under this act shall continue; provided 4
123	123	that: (1) The town council passes a resolution evidencing the town’s intent to pay off the notes 5
124	124	without extinguishing the authority to issue bonds or notes; and (2) That the period from the date 6
125	125	of an original note to the maturity date of any other note shall not exceed five (5) years. 7
126	126	SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 8
127	127	of any authorization or issue of notes hereunder, the director of finance, with the approval of the 9
128	128	town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 10
129	129	treasury of the town to the purposes specified in section 2, such advances to be repaid without 11
130	130	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 12
131	131	federal or state assistance or from other available funds. 13
132	132	SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 14
133	133	or state assistance, pending their expenditure, may be deposited or invested by the director of 15
134	134	finance in demand deposits, time deposits or savings deposits in banks which are members of the 16
135	135	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 17
136	136	of America or by any agency or instrumentality thereof or as may be provided in any other 18
137	137	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 19
138	138	investment policy of the town. 20
139	139	SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 21
140	140	be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 22
141	141	bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 23
142	142	funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, 24
143	143	issuing, and marketing bonds or notes hereunder to the extent not otherwise provided, to the 25
144	144	payment of the cost of the project, to the payment of the principal of or interest on bonds or notes 26
145	145	issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing, and 27
146	146	marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met 28
147	147	from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 29
148	148	Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 30
149	149	cost of preparing, issuing, and marketing bonds or notes hereunder shall be applied to the payment 31
150	150	of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 32
151	151	applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 33
152	152	hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 34
153	153
154	154
155	155	LC003062 - Page 5 of 7
156	156	property taxes. In exercising any discretion under this section, the director of finance shall be 1
157	157	governed by any instructions adopted by resolution of the town council. 2
158	158	SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 3
159	159	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 4
160	160	contracted by it and shall be excepted from the operation of § 45-12-2 of the general laws. No such 5
161	161	obligation shall at any time be included in the debt of the town for the purpose of ascertaining its 6
162	162	borrowing capacity. The town shall annually appropriate a sum sufficient to pay the principal and 7
163	163	interest coming due within the year on bonds and notes issued hereunder to the extent that monies 8
164	164	therefor are not otherwise provided. If such sum is not appropriated, it shall nevertheless be added 9
165	165	to the annual tax levy. In order to provide such sum in each year and notwithstanding any provision 10
166	166	of law to the contrary, all taxable property in the town shall be subject to ad valorem taxation by 11
167	167	the town without limitation as to rate or amount. 12
168	168	SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 13
169	169	executed by officers of the town in office on the date of execution, shall be valid and binding 14
170	170	according to their terms notwithstanding that before the delivery thereof and payment therefor any 15
171	171	or all of such officers shall for any reason have ceased to hold office. 16
172	172	SECTION 9. The town, acting by resolution of its town council is authorized to apply for, 17
173	173	contract for and expend any federal or state advances or other grants or assistance which may be 18
174	174	available for the purposes of this act, and any such expenditures may be in addition to other monies 19
175	175	provided in this act. To the extent of any inconsistency between any law of this state and any 20
176	176	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 21
177	177	where applicable, whether contracted for prior to or after the effective date of this act, may be 22
178	178	repaid as project costs under section two. 23
179	179	SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 24
180	180	of any governmental agency or the taking of any proceedings or the happening of any conditions 25
181	181	except as specifically required by this act for such issue. In carrying out any project financed in 26
182	182	whole or in part under this act, including where applicable the condemnation of any land or interest 27
183	183	in land, and in the levy and collection of assessments or other charges permitted by law on account 28
184	184	of any such project, all action shall be taken which is necessary to meet constitutional requirements 29
185	185	whether or not such action is otherwise required by statute; but the validity of bonds and notes 30
186	186	issued hereunder shall in no way depend upon the validity or occurrence of such action. 31
187	187	SECTION 11. All or any portion of the authority to issue bonds and notes under this act 32
188	188	may be extinguished by resolution of the town council, without further action by the general 33
189	189	assembly. 34
190	190
191	191
192	192	LC003062 - Page 6 of 7
193	193	SECTION 12. The director of finance, the town administrator, and the president of the 1
194	194	town council, on behalf of the town, are hereby authorized to execute such documents or other 2
195	195	papers as either of them deem necessary or desirable to carry out the intent of this act and are also 3
196	196	authorized to take all actions and execute all documents or agreements necessary to comply with 4
197	197	federal tax and securities laws, which documents or agreements may have a term coextensive with 5
198	198	the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange 6
199	199	Commission (the "Rule") and to execute and deliver a continuing disclosure agreement or 7
200	200	certificate in connection with the bonds or notes in the form as shall be deemed advisable by such 8
201	201	officers in order to comply with the Rule. 9
202	202	SECTION 13. This act shall constitute an enabling act of the general assembly that is 10
203	203	required pursuant to §16-7-44. Bonds or other evidences of indebtedness issued under this act for 11
204	204	school projects shall not be eligible for state aid reimbursement pursuant to §16-7-44 unless the 12
205	205	school projects have been approved by the Rhode Island department of education. Notwithstanding 13
206	206	anything contained in this act, the town may enter into financing agreements with the Rhode Island 14
207	207	health and educational building corporation pursuant to title 45, chapter 38.1. 15
208	208	SECTION 14. The question of the approval of this act shall be submitted to the electors of 16
209	209	the town at the special election to be held on November 7, 2023 or a special election (other than a 17
210	210	primary), on a date as shall be designated by the town council. The question shall be submitted in 18
211	211	substantially the following form: “Shall an Act, passed at the 2023 session of the General 19
212	212	Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO 20
213	213	EXCEED $25,000,000 GENERAL OBLIGATION BONDS AND NOTES FOR THE 21
214	214	CONSTRUCTION, RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, 22
215	215	FURNISHING AND EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY 23
216	216	SCHOOLS,' be approved?" and the warning for the election shall contain the question to be 24
217	217	submitted. From the time the election is warned and until it is held, it shall be the duty of the town 25
218	218	clerk to keep a copy of the act available at his/her office for public inspection, but the validity of 26
219	219	the election shall not be affected by this requirement. 27
220	220	SECTION 15. This section and the foregoing section shall take effect upon the passage of 28
221	221	this act. The remainder of this act shall take effect upon the approval of this act by a majority of 29
222	222	those voting on the question at the election prescribed by the foregoing section. 30
223	223	========
224	224	LC003062
225	225	========
226	226
227	227
228	228	LC003062 - Page 7 of 7
229	229	EXPLANATION
230	230	OF
231	231	A N A C T
232	232	AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO EXCEED $25,000,000
233	233	GENERAL OBLIGATION BONDS AND NOTES FOR THE CONSTRUCTION,
234	234	RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND
235	235	EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY SCHOOLS
236	236	***
237	237	This act would authorize the town of Lincoln to issue general obligation bonds and notes 1
238	238	in an amount not exceeding $25,000,000 to finance the construction, renovation, rehabilitation, 2
239	239	repair, improvements, furnishing and equipping of and/or additions to Lincoln elementary schools. 3
240	240	Sections 14 and 15 would take effect upon passage. The remainder of the act would take 4
241	241	effect upon approval of the question provided for in section 14. 5
242	242	========
243	243	LC003062
244	244	========