Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0510 Compare Versions

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

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5	5	2023 -- S 0510
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7	7	LC001930
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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	AMENDING CHAPTERS 106 AND 107 OF THE LOCAL ACTS OF 2021 BOTH ENTITLED
16	16	“AN ACT RELATING TO SCHOOL CONSTRUCTION AND FINANCING IN THE CITY OF
17	17	CENTRAL FALLS AND AUTHORIZING THE CITY OF CENTRAL FALLS TO ISSUE NOT
18	18	TO EXCEED $5,760,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER
19	19	EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVAT ION,
20	20	IMPROVEMENT, ALTERAT ION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS
21	21	AND SCHOOL FACILITIES IN THE CITY”
22	22	Introduced By: Senators Acosta, Cano, Quezada, DiPalma, Britto, Pearson, Murray,
23	23	Zurier, Sosnowski, and Ciccone
24	24	Date Introduced: March 07, 2023
25	25	Referred To: Senate Finance
26	26
27	27
28	28	It is enacted by the General Assembly as follows:
29	29	WHEREAS, In 2021, the General Assembly passed as companion bills Local Acts 1
30	30	Chapters 106 and 107 relating to school construction and financing in the city of Central Falls (the 2
31	31	“Prior Acts”); and 3
32	32	WHEREAS, The Prior Acts authorized the State, acting through the general treasurer to 4
33	33	execute a Financing Agreement and any other agreements necessary to effectuate the purposes of 5
34	34	the Prior Acts and the Prior Acts served as the joint resolution required pursuant to Rhode Island 6
35	35	General Laws §35-18-1, et seq (the “Rhode Island Public Corporation Debt Management Act”); 7
36	36	WHEREAS, The Prior Acts were silent on the use of premium generated from the sale of 8
37	37	bonds or notes issued by the Rhode Island Heath and Educational Building Corporation payable 9
38	38	from annual appropriations by the State; and 10
39	39	WHEREAS, It is desirable that premium on the sale of bonds and notes be permitted to be 11
40	40	used to pay costs of the Central Falls School Project as defined in the Prior Acts. 12
41	41	NOW THEREFORE, It is enacted and resolved by the General Assembly as follows: 13
42	42	SECTION 1. Section 2 of Local Acts of 2021 Chapters 106 and 107 are hereby each 14
43	43	amended as follows: 15
44	44	SECTION 2. City of Central Falls School Project. 16
45	45
46	46
47	47	LC001930 - Page 2 of 4
48	48	WHEREAS, The WHEREAS clauses in paragraphs 1 through 5 hereof are hereby 1
49	49	incorporated herein by reference. 2
50	50	WHEREAS, The City of Central Falls is proposing a project consisting of the construction, 3
51	51	renovation, improvement, alteration, repair, furnishing and equipping of schools and school 4
52	52	facilities in the city; and 5
53	53	WHEREAS, The Project will be financed through the Rhode Island Health and Educational 6
54	54	Building Corporation (the “Corporation”) under its school financing revenue bond program, with 7
55	55	an expected term of not to exceed thirty (30) years and it is anticipated that the State will be a 8
56	56	signatory to the Financing Agreement with the Rhode Island Health and Educational Building 9
57	57	Corporation; and 10
58	58	WHEREAS, It is anticipated that the State’s obligations under the Financing Agreement 11
59	59	will be subject to appropriation therefor by the General Assembly in each budget year; and 12
60	60	WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the 13
61	61	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island 14
62	62	of certain obligations, including financing guarantees or other agreements; and 15
63	63	WHEREAS, The principal amount of bonds which will finance the project costs and costs 16
64	64	of financing covered by the Financing Agreement is not expected to exceed $144,000,000. Any 17
65	65	premium received from the sale of any bonds or notes shall be used toward project costs and shall 18
66	66	not reduce the principal amount of bonds or notes. Debt service payments will be supported by 19
67	67	revenues received by the Corporation under the Financing Agreement which include annual 20
68	68	appropriations for debt service made by the State, state school construction aid payments and state 21
69	69	school operations aid payments if any, pursuant to chapter 16-7 of the Rhode Island general laws 22
70	70	and payments from the City of Central Falls under the Financing Agreement. Total debt service on 23
71	71	the bonds in not expected to exceed $9,400,000 annually and $281,000,000 in the aggregate based 24
72	72	on an average interest rate of five percent (5.00%); 25
73	73	Now therefor be it resolved 26
74	74	RESOLVED, That this General Assembly hereby approves the issuance of bonds or notes 27
75	75	to finance the Central Falls School Project in a principal amount up to $144,000,000 plus any 28
76	76	original issue premium, such bonds or notes not to be reduced by any premium received on the sale 29
77	77	of any bonds or notes which premium shall be used for project costs for the Central Falls School 30
78	78	Project; and be it further 31
79	79	RESOLVED, That the State, acting through the general treasurer may execute the 32
80	80	Financing Agreement as contemplated herein and any other agreements necessary to effectuate the 33
81	81	purposes of this act; and be it further 34
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84	84	LC001930 - Page 3 of 4
85	85	RESOLVED, That the bonds will be special obligations of the Corporation payable from 1
86	86	funds received by the Corporation under the Financing Agreement and other revenues received by 2
87	87	the Corporation, in any combination or priority as may be designated in the proceedings of the 3
88	88	Corporation authorizing the issuance of such debt. The total debt service on the bonds is estimated 4
89	89	to average approximately nine million four hundred thousand dollars ($9,400,000) per year or 5
90	90	approximately two hundred eighty-one million dollars ($281,000,000) in the aggregate, at an 6
91	91	average interest rate of approximately five percent (5%) and an approximately thirty (30) year 7
92	92	maturity; and be it further 8
93	93	RESOLVED, That the bonds will not constitute indebtedness of the State or any of its 9
94	94	subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is 10
95	95	pledged. This act shall constitute an enabling act of the general assembly that is required pursuant 11
96	96	to § 16-7-44. 12
97	97	RESOLVED, That the State’s authority to incur the obligations set forth herein will expire 13
98	98	within five (5) years of the date of passage of this act if such financing transaction is not executed 14
99	99	prior to that date. 15
100	100	SECTION 3. This act shall take effect upon passage. 16
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102	102	LC001930
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106	106	LC001930 - Page 4 of 4
107	107	EXPLANATION
108	108	OF
109	109	A N A C T
110	110	AMENDING CHAPTERS 106 AND 107 OF THE LOCAL ACTS OF 2021 BOTH ENTITLED
111	111	“AN ACT RELATING TO SCHOOL CONSTRUC TION AND FINANCING IN THE CITY OF
112	112	CENTRAL FALLS AND AUTHORIZING THE CITY OF CENTRAL FALLS TO ISSUE NOT
113	113	TO EXCEED $5,760,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER
114	114	EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVA TION,
115	115	IMPROVEMENT, ALTERAT ION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS
116	116	AND SCHOOL FACILITIES IN THE CITY”
117	117	***
118	118	This act would clarify that premium received on the sale of bonds or notes shall be used 1
119	119	for project costs. 2
120	120	This act would take effect upon passage. 3
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