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Rhode Island Senate Bill S0206

Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0206 Compare Versions

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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 AUTHORIZING THE TOWN OF MIDDLETOWN TO ISSUE NOT TO EXCEED
1616 $190,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
1717 INDEBTEDNESS TO FINANCE THE CONSTRUCTION , FURNISHING AND EQUIPPING
1818 OF A MIDDLE SCHOOL AND HIGH SCHOOL AND THE RENOVATION,
1919 IMPROVEMENT, ALTERAT ION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOL
2020 FACILITIES THROUGHOUT THE TOWN AND ALL ATTENDANT EXPENSES
2121 INCLUDING, BUT NOT LIMITED TO, DEMOLITION, ENGINEERING, ARCHITECTURAL
22-AND LANDSCAPING COST S
22+AND LANDSCAPING COST S; PROVIDED THAT, THE AUTHORIZATION SHALL BE
23+REDUCED BY THE AMOUN T OF CERTAIN GRANTS RECEIVED FROM STATE BOND
24+PROCEEDS, FROM THE RHODE ISLAND DEPARTME NT OF EDUCATION OR FROM
25+THE RHODE ISLAND SCHOOL BUILDING AUTHORITY
2326 Introduced By: Senator Louis P. DiPalma
2427 Date Introduced: February 16, 2023
2528 Referred To: Senate Finance
2629
2730
2831 It is enacted by the General Assembly as follows:
2932 SECTION 1. The town of Middletown is hereby empowered, in addition to authority 1
3033 previously granted, to issue bonds, notes and other evidences of indebtedness (hereinafter "bonds") 2
3134 up to an amount not exceeding one hundred ninety million dollars ($190,000,000) from time to 3
3235 time under its corporate name and seal or a facsimile of such seal. The bonds of each issue may be 4
3336 issued in the form of serial bonds or term bonds or a combination thereof and shall be payable 5
3437 either by maturity of principal in the case of serial bonds or by sinking fund installments in the case 6
3538 of term bonds, in annual installments of principal, the first installment to be not later than five (5) 7
3639 years and the last installment not later than thirty (30) years after the date of the bonds. All such 8
3740 bonds of a particular issue may be issued in the form of zero coupon bonds, capital appreciation 9
3841 bonds, serial bonds or term bonds or a combination thereof. The amount of principal appreciation 10
3942 each year on any bonds, after the date of original issuance, shall not be considered to be principal 11
4043 indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. 12
4144 The appreciation of principal after the date of original issue shall be considered interest. Only the 13
4245 original principal amount shall be counted in determining the principal amount so issued and any 14
43-interest component shall be disregarded. 15
4446
4547
46-LC001484/SUB A - Page 2 of 7
47-SECTION 2. The town may be eligible for school housing aid reimbursement on debt 1
48-service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from 2
49-proceeds of bonds issued by the State of Rhode Island (the "state"), from the Rhode Island 3
50-department of education ("RIDE") or from the Rhode Island school building authority. 4
51-SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 5
52-finance director and the president of the town council and shall be issued and sold in such amounts 6
53-as the town council may authorize by resolution. The manner of sale, denominations, maturities, 7
54-interest rates and other terms, conditions and details of any bonds or notes issued under this act 8
55-may be fixed by the resolutions of the town council authorizing the issue or by separate resolution 9
56-of the town council or, to the extent provisions for these matters are not so made, they may be fixed 10
57-by the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this 11
58-act to the contrary, the town may enter into financing agreements with the Rhode Island health and 12
59-educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 13
60-with respect to bonds or notes issued in connection with such financing agreements, if any, the 14
61-town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds 15
62-or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent 16
63-herewith. In addition, the town may enter into financing agreements with the Rhode Island 17
64-infrastructure bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to notes 18
65-or bonds issued in connection with such financing agreements, if any, the town may elect to have 19
66-the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder 20
67-to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may 21
68-be fixed by the proceedings of the town council authorizing such issuance of by separate resolution 22
69-of the town council, or, to the extent provisions for these matters are not so made, they may be 23
70-fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the sale of 24
71-the bonds shall be delivered to the town finance director, and such proceeds exclusive of premiums 25
72-and accrued interest shall be expended: (1) To finance the construction, furnishing and equipping 26
73-of a middle school and high school and the renovation, improvement, alteration, repair, furnishing 27
74-and equipping of school facilities throughout the town and all attendant expenses including, but not 28
75-limited to, demolition, engineering, architectural and landscaping costs; (2) In payment of the 29
76-principal of or interest on temporary notes issued under section 4; (3) In repayment of advances 30
77-under section 5; (4) In payment of related costs of issuance of any bonds or notes; and/or (5) In 31
78-payment of capitalized interest during construction of the project (the "project"). No purchaser of 32
79-any bonds or notes under this act shall be in any way responsible for the proper application of the 33
80-proceeds derived from the sale thereof. The project shall be carried out and all contracts made 34
48+LC001484 - Page 2 of 8
49+interest component shall be disregarded. 1
50+SECTION 2. The town may be eligible for school housing aid reimbursement on debt 2
51+service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from 3
52+proceeds of bonds issued by the State of Rhode Island (the "state"), from the Rhode Island 4
53+department of education ("RIDE") or from the Rhode Island school building authority. The amount 5
54+of borrowing authorized pursuant to this act shall be reduced by the amount of certain grants 6
55+actually received by the town from State bond proceeds, from RIDE or from the Rhode Island 7
56+school building authority. 8
57+SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 9
58+finance director and the president of the town council and shall be issued and sold in such amounts 10
59+as the town council may authorize by resolution. The manner of sale, denominations, maturities, 11
60+interest rates and other terms, conditions and details of any bonds or notes issued under this act 12
61+may be fixed by the resolutions of the town council authorizing the issue or by separate resolution 13
62+of the town council or, to the extent provisions for these matters are not so made, they may be fixed 14
63+by the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this 15
64+act to the contrary, the town may enter into financing agreements with the Rhode Island health and 16
65+educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 17
66+with respect to bonds or notes issued in connection with such financing agreements, if any, the 18
67+town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds 19
68+or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent 20
69+herewith. In addition, the town may enter into financing agreements with the Rhode Island 21
70+infrastructure bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to notes 22
71+or bonds issued in connection with such financing agreements, if any, the town may elect to have 23
72+the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder 24
73+to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may 25
74+be fixed by the proceedings of the town council authorizing such issuance of by separate resolution 26
75+of the town council, or, to the extent provisions for these matters are not so made, they may be 27
76+fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the sale of 28
77+the bonds shall be delivered to the town finance director, and such proceeds exclusive of premiums 29
78+and accrued interest shall be expended: (1) To finance the construction, furnishing and equipping 30
79+of a middle school and high school and the renovation, improvement, alteration, repair, furnishing 31
80+and equipping of school facilities throughout the town and all attendant expenses including, but not 32
81+limited to, demolition, engineering, architectural and landscaping costs; (2) In payment of the 33
82+principal of or interest on temporary notes issued under section 4; (3) In repayment of advances 34
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84-therefor on behalf of the town by the town council. The town council and its agents are authorized 1
85-to enter, without delay and at reasonable times, any public school buildings and other public school 2
86-property for the purpose of accomplishing the project and to do all acts and deeds necessary or 3
87-convenient in connection with the project. The proceeds of bonds or notes issued under this act, 4
88-any applicable federal or state assistance and the other monies referred to in sections 7 and 10 shall 5
89-be deemed appropriated for the purposes of this act without further action than that required by this 6
90-act. The bonds authorized by this act may be consolidated for the purpose of issuance and sale with 7
91-any other bonds of the town heretofore or hereafter authorized; provided that, notwithstanding any 8
92-such consolidation, the proceeds from the sale of the bonds authorized by this act shall be expended 9
93-for the purposes set forth above. 10
94-SECTION 4. The town council may by resolution authorize the issuance from time to time 11
95-of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of 12
96-the receipt of federal or state aid for the purposes of this act. The amount of original notes issued 13
97-in anticipation of bonds may not exceed the amount of bonds which may be issued under this act 14
98-and the amount of original notes issued in anticipation of federal or state aid may not exceed the 15
99-amount of available federal or state aid as estimated by the finance director. Temporary notes issued 16
100-hereunder shall be signed by the manual or facsimile signatures of the town finance director and 17
101-the president of the town council and shall be payable within five (5) years from their respective 18
102-dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid 19
103-from time to time by the issuance of other notes hereunder; provided the period from the date of an 20
104-original note to the maturity of any note issued to renew or pay the same debt or interest thereon 21
105-shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this 22
106-section may be refunded prior to the maturity of the notes by the issuance of additional temporary 23
107-notes; provided that, no such refunding shall result in any amount of such temporary notes 24
108-outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds which 25
109-may be issued under this act; and provided, further, that if the issuance of any such refunding notes 26
110-results in any amount of such temporary notes outstanding at any one time in excess of the amount 27
111-of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited 28
112-in trust in a separate fund established for the notes being refunded. Pending their use to pay the 29
113-notes being refunded, monies in the fund shall be invested for the benefit of the town by the paying 30
114-agent at the direction of the town finance director in any investment permitted under section 6. The 31
115-monies in the fund and any investments held as part of the fund shall be held in trust and shall be 32
116-applied by the paying agent solely to the payment or prepayment of the principal of and interest on 33
117-the notes being refunded. Upon payment of all principal of and interest on the notes, any excess 34
85+LC001484 - Page 3 of 8
86+under section 5; (4) In payment of related costs of issuance of any bonds or notes; and/or (5) In 1
87+payment of capitalized interest during construction of the project (the "project"). No purchaser of 2
88+any bonds or notes under this act shall be in any way responsible for the proper application of the 3
89+proceeds derived from the sale thereof. The project shall be carried out and all contracts made 4
90+therefor on behalf of the town by the town council. The town council and its agents are authorized 5
91+to enter, without delay and at reasonable times, any public school buildings and other public school 6
92+property for the purpose of accomplishing the project and to do all acts and deeds necessary or 7
93+convenient in connection with the project. The proceeds of bonds or notes issued under this act, 8
94+any applicable federal or state assistance and the other monies referred to in sections 7 and 10 shall 9
95+be deemed appropriated for the purposes of this act without further action than that required by this 10
96+act. The bonds authorized by this act may be consolidated for the purpose of issuance and sale with 11
97+any other bonds of the town heretofore or hereafter authorized; provided that, notwithstanding any 12
98+such consolidation, the proceeds from the sale of the bonds authorized by this act shall be expended 13
99+for the purposes set forth above. 14
100+SECTION 4. The town council may by resolution authorize the issuance from time to time 15
101+of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of 16
102+the receipt of federal or state aid for the purposes of this act. The amount of original notes issued 17
103+in anticipation of bonds may not exceed the amount of bonds which may be issued under this act 18
104+and the amount of original notes issued in anticipation of federal or state aid may not exceed the 19
105+amount of available federal or state aid as estimated by the finance director. Temporary notes issued 20
106+hereunder shall be signed by the manual or facsimile signatures of the town finance director and 21
107+the president of the town council and shall be payable within five (5) years from their respective 22
108+dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid 23
109+from time to time by the issuance of other notes hereunder; provided the period from the date of an 24
110+original note to the maturity of any note issued to renew or pay the same debt or interest thereon 25
111+shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this 26
112+section may be refunded prior to the maturity of the notes by the issuance of additional temporary 27
113+notes; provided that, no such refunding shall result in any amount of such temporary notes 28
114+outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds which 29
115+may be issued under this act; and provided, further, that if the issuance of any such refunding notes 30
116+results in any amount of such temporary notes outstanding at any one time in excess of the amount 31
117+of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited 32
118+in trust in a separate fund established for the notes being refunded. Pending their use to pay the 33
119+notes being refunded, monies in the fund shall be invested for the benefit of the town by the paying 34
118120
119121
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121-monies in the fund shall be distributed to the town. The town may pay the principal of and interest 1
122-on notes in full from other than the issuance of refunding notes prior to the issuance of bonds 2
123-pursuant to section 1 hereof. In such case, the town's authority to issue bonds or notes in anticipation 3
124-of bonds under this act shall continue provided that: (1) The town council passes a resolution 4
125-evidencing the town's intent to pay off the notes without extinguishing the authority to issue bonds 5
126-or notes; and (2) That the period from the date of an original note to the maturity date of any other 6
127-note shall not exceed five (5) years. 7
128-SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 8
129-of any authorization or issue of notes hereunder, the town finance director, with the approval of the 9
130-town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 10
131-treasury of the town to the purposes specified in section 3, such advances to be repaid without 11
132-interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 12
133-federal or state assistance or from other available funds. 13
134-SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 14
135-or state assistance, pending their expenditure may be deposited or invested by the town finance 15
136-director in demand deposits, time deposits or savings deposits in banks which are members of the 16
137-Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 17
138-of America or by any agency or instrumentality thereof or as may be provided in any other 18
139-applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 19
140-investment policy of the town. 20
141-SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 21
142-be applied to the payment of the first interest due thereon. Any premium arising from the sale of 22
143-bonds or notes hereunder shall, in the discretion of the town finance director, be applied to the cost 23
144-of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, 24
145-to the payment of the project costs, to the payment of the principal of or interest on bonds or notes 25
146-issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 26
147-marketing bonds or notes hereunder may also, in the discretion of the town finance director, be met 27
148-from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 28
149-Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 29
150-cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the payment 30
151-of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 31
152-applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 32
153-hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 33
154-property taxes. In exercising any discretion under this section, the town finance director shall be 34
122+LC001484 - Page 4 of 8
123+agent at the direction of the town finance director in any investment permitted under section 6. The 1
124+monies in the fund and any investments held as part of the fund shall be held in trust and shall be 2
125+applied by the paying agent solely to the payment or prepayment of the principal of and interest on 3
126+the notes being refunded. Upon payment of all principal of and interest on the notes, any excess 4
127+monies in the fund shall be distributed to the town. The town may pay the principal of and interest 5
128+on notes in full from other than the issuance of refunding notes prior to the issuance of bonds 6
129+pursuant to section 1 hereof. In such case, the town's authority to issue bonds or notes in anticipation 7
130+of bonds under this act shall continue provided that: (1) The town council passes a resolution 8
131+evidencing the town's intent to pay off the notes without extinguishing the authority to issue bonds 9
132+or notes; and (2) That the period from the date of an original note to the maturity date of any other 10
133+note shall not exceed five (5) years. 11
134+SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 12
135+of any authorization or issue of notes hereunder, the town finance director, with the approval of the 13
136+town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 14
137+treasury of the town to the purposes specified in section 3, such advances to be repaid without 15
138+interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 16
139+federal or state assistance or from other available funds. 17
140+SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 18
141+or state assistance, pending their expenditure may be deposited or invested by the town finance 19
142+director in demand deposits, time deposits or savings deposits in banks which are members of the 20
143+Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 21
144+of America or by any agency or instrumentality thereof or as may be provided in any other 22
145+applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 23
146+investment policy of the town. 24
147+SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 25
148+be applied to the payment of the first interest due thereon. Any premium arising from the sale of 26
149+bonds or notes hereunder shall, in the discretion of the town finance director, be applied to the cost 27
150+of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, 28
151+to the payment of the project costs, to the payment of the principal of or interest on bonds or notes 29
152+issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 30
153+marketing bonds or notes hereunder may also, in the discretion of the town finance director, be met 31
154+from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 32
155+Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 33
156+cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the payment 34
155157
156158
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158-governed by any instructions adopted by resolution of the town council. 1
159-SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 2
160-shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 3
161-contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at 4
162-any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 5
163-The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 6
164-within the year on bonds and notes issued hereunder to the extent that monies therefor are not 7
165-otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 8
166-levy. In order to provide such sum in each year and notwithstanding any provision of law to the 9
167-contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 10
168-limitation as to rate or amount. 11
169-SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if 12
170-any, if properly executed by officers of the town in office on the date of execution, shall be valid 13
171-and binding according to their terms notwithstanding that before the delivery thereof and payment 14
172-therefor any or all of such officers shall for any reason have ceased to hold office. 15
173-SECTION 10. The town, acting by resolution of its town council, is authorized to apply 16
174-for, contract for and expend any federal or state advances or other grants or assistance which may 17
175-be available for the purposes of this act, and any such expenditures may be in addition to the monies 18
176-provided in this act. To the extent of any inconsistency between any law of this state and any 19
177-applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 20
178-where applicable, whether contracted for prior to or after the effective date of this act, may be 21
179-repaid as project costs under section 3. 22
180-SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 23
181-of any governmental agency or the taking of any proceedings or the happening of any conditions 24
182-except as specifically required by this act for such issue. In carrying out any project financed in 25
183-whole or in part under this act, including where applicable the condemnation of any land or interest 26
184-in land, and in the levy and collection of assessments or other charges permitted by law on account 27
185-of any such project, all action shall be taken which is necessary to meet constitutional requirements 28
186-whether or not such action is otherwise required by statute, but the validity of bonds and notes 29
187-issued hereunder shall in no way depend upon the validity or occurrence of such action. 30
188-SECTION 12. The town finance director and the president of the town council, on behalf 31
189-of the town, are hereby authorized to execute such instruments, documents or other papers as either 32
190-of them deem necessary or desirable to carry out the intent of this act and are also authorized to 33
191-take all actions and execute all instruments, documents or agreements necessary to comply with 34
159+LC001484 - Page 5 of 8
160+of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 1
161+applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 2
162+hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 3
163+property taxes. In exercising any discretion under this section, the town finance director shall be 4
164+governed by any instructions adopted by resolution of the town council. 5
165+SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 6
166+shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 7
167+contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at 8
168+any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 9
169+The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 10
170+within the year on bonds and notes issued hereunder to the extent that monies therefor are not 11
171+otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 12
172+levy. In order to provide such sum in each year and notwithstanding any provision of law to the 13
173+contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 14
174+limitation as to rate or amount. 15
175+SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if 16
176+any, if properly executed by officers of the town in office on the date of execution, shall be valid 17
177+and binding according to their terms notwithstanding that before the delivery thereof and payment 18
178+therefor any or all of such officers shall for any reason have ceased to hold office. 19
179+SECTION 10. The town, acting by resolution of its town council, is authorized to apply 20
180+for, contract for and expend any federal or state advances or other grants or assistance which may 21
181+be available for the purposes of this act, and any such expenditures may be in addition to the monies 22
182+provided in this act. To the extent of any inconsistency between any law of this state and any 23
183+applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 24
184+where applicable, whether contracted for prior to or after the effective date of this act, may be 25
185+repaid as project costs under section 3. 26
186+SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 27
187+of any governmental agency or the taking of any proceedings or the happening of any conditions 28
188+except as specifically required by this act for such issue. In carrying out any project financed in 29
189+whole or in part under this act, including where applicable the condemnation of any land or interest 30
190+in land, and in the levy and collection of assessments or other charges permitted by law on account 31
191+of any such project, all action shall be taken which is necessary to meet constitutional requirements 32
192+whether or not such action is otherwise required by statute, but the validity of bonds and notes 33
193+issued hereunder shall in no way depend upon the validity or occurrence of such action. 34
192194
193195
194-LC001484/SUB A - Page 6 of 7
195-federal tax and securities laws, which instruments, documents or agreements may have a term 1
196-coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the 2
197-Securities and Exchange Commission (the "Rule") and to execute and deliver a continuing 3
198-disclosure agreement or certificate in connection with the bonds or notes in the form as shall be 4
199-deemed advisable by such officers in order to comply with the Rule. 5
200-SECTION 13. All or any portion of the authorized but unissued authority to issue bonds 6
201-and notes under this act may be extinguished by ordinance of the town council after seven (7) years 7
202-shall have passed from the approval of this act provided for in section 14, without further action by 8
203-the general assembly. 9
204-SECTION 14. The question of the approval of this act shall be submitted to the qualified 10
205-voters of the town at a local election to be held on November 7, 2023. The question shall be 11
206-submitted in substantially the following form: "Shall an act passed at the 2023 session of the general 12
207-assembly entitled 'AN ACT AUTHORIZING THE TOWN OF MIDDLETOWN TO ISSUE NOT 13
208-TO EXCEED $190,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER 14
209-EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONST RUCTION, FURNISHING 15
210-AND EQUIPPING OF A MIDDLE SCHOOL AND HIGH SCHOOL AND THE RENOVATION, 16
211-IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOL 17
212-FACILITIES THROUGHOUT THE TOWN AND ALL ATTENDANT EXPENSES 18
213-INCLUDING, BUT NOT LIMITED TO, DEMOLITION , ENGINEERING, ARCHITECTURAL 19
214-AND LANDSCAPING COSTS ' be approved?" and the warning for the election shall contain the 20
215-question to be submitted. From the time the election is warned and until it is held, it shall be the 21
216-duty of the town clerk to keep a copy of this act available at the clerk's office for public inspection, 22
217-but the validity of the election shall not be affected by this requirement. To the extent of any 23
218-inconsistency between this act and the town charter, this act shall prevail. Notwithstanding anything 24
219-contained in § 17-19-7 of the general laws to the contrary, the town's board of canvassers may 25
220-certify the question to the secretary of state not later than thirty (30) days prior to the date set for 26
221-the election. 27
222-SECTION 15. This section and section 14 shall take effect upon the passage of this act. 28
223-The remainder of this act shall take effect if a majority of those voting on the question prescribed 29
224-by section 14 shall vote in favor thereof. 30
196+LC001484 - Page 6 of 8
197+SECTION 12. The town finance director and the president of the town council, on behalf 1
198+of the town, are hereby authorized to execute such instruments, documents or other papers as either 2
199+of them deem necessary or desirable to carry out the intent of this act and are also authorized to 3
200+take all actions and execute all instruments, documents or agreements necessary to comply with 4
201+federal tax and securities laws, which instruments, documents or agreements may have a term 5
202+coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the 6
203+Securities and Exchange Commission (the "Rule") and to execute and deliver a continuing 7
204+disclosure agreement or certificate in connection with the bonds or notes in the form as shall be 8
205+deemed advisable by such officers in order to comply with the Rule. 9
206+SECTION 13. All or any portion of the authorized but unissued authority to issue bonds 10
207+and notes under this act may be extinguished by ordinance of the town council after seven (7) years 11
208+shall have passed from the approval of this act provided for in section 14, without further action by 12
209+the general assembly. 13
210+SECTION 14. The question of the approval of this act shall be submitted to the qualified 14
211+voters of the town at a local election to be held on May 2 November 7, 2023. The question shall be 15
212+submitted in substantially the following form: "Shall an act passed at the 2023 session of the general 16
213+assembly entitled 'AN ACT AUTHORIZING THE TOWN OF MIDDLETOWN TO ISSUE NOT 17
214+TO EXCEED $190,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER 18
215+EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, FURNISHING 19
216+AND EQUIPPING OF A MIDDLE SCHOOL AND HIGH SCHOOL AND THE RENOVATION, 20
217+IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOL 21
218+FACILITIES THROUGHOUT THE TOWN AND ALL ATTENDANT EXPENSES 22
219+INCLUDING, BUT NOT LIMITED TO, DEMOLITION, ENGINEERING, ARCHITECTURAL 23
220+AND LANDSCAPING COSTS ; PROVIDED THAT, THE AUTHORIZATION SHALL BE 24
221+REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND 25
222+PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE 26
223+RHODE ISLAND SCHOOL BUILDING AUTHORITY' be approved?" and the w arning for the 27
224+election shall contain the question to be submitted. From the time the election is warned and until 28
225+it is held, it shall be the duty of the town clerk to keep a copy of this act available at the clerk's 29
226+office for public inspection, but the validity of the election shall not be affected by this requirement. 30
227+To the extent of any inconsistency between this act and the town charter, this act shall prevail. 31
228+Notwithstanding anything contained in § 17-19-7 of the general laws to the contrary, the town's 32
229+board of canvassers may certify the question to the secretary of state not later than thirty (30) days 33
230+prior to the date set for the election. 34
231+
232+
233+LC001484 - Page 7 of 8
234+SECTION 15. This section and section 14 shall take effect upon the passage of this act. 1
235+The remainder of this act shall take effect if a majority of those voting on the question prescribed 2
236+by section 14 shall vote in favor thereof. 3
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242+LC001484 - Page 8 of 8
231243 EXPLANATION
232244 OF
233245 A N A C T
234246 AUTHORIZING THE TOWN OF MIDDLETOWN TO ISSUE NOT TO EXCEED
235247 $190,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
236248 INDEBTEDNESS TO FINANCE THE CONSTRUCTION , FURNISHING AND EQUIPPING
237249 OF A MIDDLE SCHOOL AND HIGH SCHOOL AND THE RENOVATION,
238250 IMPROVEMENT, ALTERAT ION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOL
239251 FACILITIES THROUGHOUT THE TOWN AND ALL ATTENDANT EXPENSES
240252 INCLUDING, BUT NOT LIMITED TO, DEMOLITION, ENGINEERING, ARCHITECTURAL
241-AND LANDSCAPING COST S
253+AND LANDSCAPING COST S; PROVIDED THAT, THE AUTHORIZATION SHALL BE
254+REDUCED BY THE AMOUN T OF CERTAIN GRANTS RECEIVED FROM STATE BOND
255+PROCEEDS, FROM THE RHODE ISLAND DEPARTME NT OF EDUCATION OR FROM
256+THE RHODE ISLAND SCHOOL BUILDING AUTHORITY
242257 ***
243258 This act authorizes the town of Middletown to issue not more than $190,000,000 bonds 1
244259 and notes to finance the construction furnishing and equipping of a middle school and high school 2
245260 and the renovation, improvement, alteration, repair, furnishing and equipping of school facilities 3
246261 throughout the town and all attendant expenses including, but not limited to, demolition, 4
247-engineering, architectural and landscaping costs. 5
248-Sections 14 and 15 of this act would take effect upon passage. The remainder of the act 6
249-would take effect if a majority of those voting on the question prescribed by section 14 would vote 7
250-in favor thereof. The amount of borrowing authorized pursuant to this act would be reduced by the 8
251-amount of certain grants actually received by the town from state bond proceeds, from RIDE or 9
252-from the Rhode Island school building authority. 10
262+engineering, architectural and landscaping costs; provided that, the authorization shall be reduced 5
263+by the amount of certain grants received from state bond proceeds, from the Rhode Island 6
264+department of education ("RIDE") or from the Rhode Island school building authority. 7
265+Sections 14 and 15 of this act would take effect upon passage. The remainder of the act 8
266+would take effect if a majority of those voting on the question prescribed by section 14 would vote 9
267+in favor thereof. The amount of borrowing authorized pursuant to this act would be reduced by the 10
268+amount of certain grants actually received by the town from state bond proceeds, from RIDE or 11
269+from the Rhode Island school building authority. 12
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