Rhode Island 2023 Regular Session

Rhode Island Senate Bill S1073 Compare Versions

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

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5	5	2023 -- S 1073
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7	7	LC003069
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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 BRISTOL WARREN REGIONAL SCHOOL DISTRICT TO ISSUE
16	16	NOT TO EXCEED TWO HU NDRED MILLION DOLLAR S ($200,000,000) IN GENERAL
17	17	OBLIGATION BONDS AND NOTES TO FINANCE THE ACQUISITION, CONSTRUCTION,
18	18	IMPROVEMENT, RENOVAT ION, FURNISHING AND EQUIPPING OF A NEW HIGH
19	19	SCHOOL, ATHLETIC FACILITY, AND SCHOOL FACILITIES IN THE DISTRICT,
20	20	FURNISHINGS AND EQUIPMENT AND ALL EXPENS ES INCIDENT THERETO,
21	21	INCLUDING, BUT NOT LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC
22	22	FIELDS, LANDSCAPING, AND PARKING AND ALL ATTENDANT EXPENSES,
23	23	INCLUDING ENGINEERING, ARCHITECTURAL, SURVEYING AND OTHER PROJECT-
24	24	RELATED CONSULTING C OSTS
25	25	Introduced By: Senators Lauria, Felag, and Ujifusa
26	26	Date Introduced: May 25, 2023
27	27	Referred To: Senate Finance
28	28
29	29
30	30	It is enacted by the General Assembly as follows:
31	31	SECTION 1. The Bristol Warren Regional School District (the “district”) is hereby 1
32	32	empowered, in addition to authority previously granted, to issue bonds in an amount not exceeding 2
33	33	two hundred million dollars ($200,000,000) from time to time under its corporate name and seal or 3
34	34	a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or term 4
35	35	bonds or a combination thereof and shall be payable either by maturity of principal in the case of 5
36	36	serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual 6
37	37	installments of principal, the first installment to be not later than five (5) years and the last 7
38	38	installment not later than thirty (30) years after the date of the bonds. All such bonds of a particular 8
39	39	issue may be issued in the form of zero coupon bonds, capital appreciation bonds, serial bonds or 9
40	40	term bonds or a combination thereof. The amount of principal appreciation each year on any bonds, 10
41	41	after the date of original issuance, shall not be considered to be principal indebtedness for the 11
42	42	purposes of any constitutional or statutory debt limit or any other limitation. The appreciation of 12
43	43	principal after the date of original issue shall be considered interest. Only the original principal 13
44	44	amount shall be counted in determining the principal amount so issued and any interest component 14
45	45
46	46
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48	48	shall be disregarded. 1
49	49	SECTION 2. The district may be eligible for school housing aid reimbursement on debt 2
50	50	service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from 3
51	51	proceeds of bonds issued by the State of Rhode Island (the “state”), from the Rhode Island 4
52	52	department of education (“RIDE”) or from the Rhode Island school building authority. 5
53	53	SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the district 6
54	54	treasurer and the chairperson of the regional district school committee and shall be issued and sold 7
55	55	in such amounts as the regional district school committee may authorize by resolution with the 8
56	56	approval of the joint finance committee of the district. The manner of sale, denominations, 9
57	57	maturities, interest rates and other terms, conditions and details of any bonds or notes issued under 10
58	58	this act may be fixed by the resolution of the regional district school committee authorizing the 11
59	59	issue or by separate resolution of the regional district school committee or, to the extent provisions 12
60	60	for these matters are not so made, they may be fixed by the officers authorized to sign the bonds or 13
61	61	notes. Notwithstanding anything contained in this act to the contrary, the district may enter into 14
62	62	financing agreements with the Rhode Island health and educational building corporation pursuant 15
63	63	to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds or notes issued 16
64	64	in connection with such financing agreements, if any, the district may elect to have the provisions 17
65	65	of chapter 38.1 of title 45 apply to the issuance of the bonds or notes issued hereunder to the 18
66	66	extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the district 19
67	67	may enter into financing agreements with the Rhode Island infrastructure bank pursuant to the 20
68	68	provisions of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection with 21
69	69	such financing agreements, if any, the district may elect to have the provisions of chapter 12.2 of 22
70	70	title 46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions 23
71	71	of chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the 24
72	72	proceedings of the regional district school committee authorizing such issuance of by separate 25
73	73	resolution of the regional district school committee, or, to the extent provisions for these matters 26
74	74	are not so made, they may be fixed by the officers authorized to sign the bonds or notes. The 27
75	75	proceeds derived from the sale of the bonds or notes shall be delivered to the district treasurer and 28
76	76	such proceeds exclusive of premiums and accrued interest shall be expended: (1) To finance the 29
77	77	acquisition, construction, improvement, renovation, furnishing and equipping of a new high school, 30
78	78	athletic facility, and school facilities in the district, and all expenses incident thereto, including, 31
79	79	but not limited to, costs of design, demolition, athletic fields, landscaping and parking, acquisition 32
80	80	of furnishings and equipment, and all attendant expenses including, but not limited to, engineering, 33
81	81	architectural, surveying and other project-related consulting costs; (2) In payment of the principal 34
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85	85	of or interest on temporary notes issued under section 4; (3) In repayment of advances under section 1
86	86	5; (4) In payment of related costs of issuance of any bonds or notes; and/or (5) In payment of 2
87	87	capitalized interest during construction of the project (the “project”). No purchaser of any bonds or 3
88	88	notes under this act shall be in any way responsible for the proper application of the proceeds 4
89	89	derived from the sale thereof. The project shall be carried out and all contracts made therefore on 5
90	90	behalf of the district by the regional district school committee with due regard to any 6
91	91	recommendation of the school building committee. The regional district school committee and the 7
92	92	school building committee and their agents are authorized to enter, without delay and at reasonable 8
93	93	times, any public school buildings and other public school property for the purpose of 9
94	94	accomplishing the project and to do all acts and deeds necessary or convenient in connection with 10
95	95	the project. The proceeds of bonds or notes issued under this act, any applicable federal or state 11
96	96	assistance and the other monies referred to in sections 7 and 10 shall be deemed appropriated for 12
97	97	the purposes of this act without further action than that required by this act. The bonds authorized 13
98	98	by this act may be consolidated for the purpose of issuance and sale with any other bonds of the 14
99	99	district heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, 15
100	100	the proceeds from the sale of the bonds authorized by this act shall be expended for the purposes 16
101	101	set forth above. 17
102	102	SECTION 4. The regional district school committee may by resolution authorize the 18
103	103	issuance from time to time of interest bearing or discounted notes in anticipation of the issuance of 19
104	104	bonds or in anticipation of the receipt of federal or state aid for the purposes of this act. The amount 20
105	105	of original notes issued in anticipation of bonds may not exceed the amount of bonds which may 21
106	106	be issued under this act and the amount of original notes issued in anticipation of federal or state 22
107	107	aid may not exceed the amount of available federal or state aid as estimated by the treasurer. 23
108	108	Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the 24
109	109	district treasurer and the chairperson of the regional district school committee and shall be payable 25
110	110	within five (5) years from their respective dates, but the principal of and interest on notes issued 26
111	111	for a shorter period may be renewed or paid from time to time by the issuance of other notes 27
112	112	hereunder; provided the period from the date of an original note to the maturity of any note issued 28
113	113	to renew or pay the same debt or interest thereon shall not exceed five (5) years. Any temporary 29
114	114	notes in anticipation of bonds issued under this section may be refunded prior to the maturity of the 30
115	115	notes by the issuance of additional temporary notes; provided that, no such refunding shall result 31
116	116	in any amount of such temporary notes outstanding at any one time in excess of two hundred 32
117	117	percent (200%) of the amount of bonds which may be issued under this act; and provided further, 33
118	118	that if the issuance of any such refunding notes results in any amount of such temporary notes 34
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122	122	outstanding at any one time in excess of the amount of bonds which may be issued under this act, 1
123	123	the proceeds of such refunding notes shall be deposited in trust in a separate fund established for 2
124	124	the notes being refunded. Pending their use to pay the notes being refunded, monies in the fund 3
125	125	shall be invested for the benefit of the district by the paying agent at the direction of the district 4
126	126	treasurer in any investment permitted under section 6. The monies in the fund and any investments 5
127	127	held as part of the fund shall be held in trust and shall be applied by the paying agent solely to the 6
128	128	payment or prepayment of the principal of and interest on the notes being refunded. Upon payment 7
129	129	of all principal of and interest on the notes, any excess monies in the fund shall be distributed to 8
130	130	the district. The district may pay the principal of and interest on notes in full from other than the 9
131	131	issuance of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, 10
132	132	the district’s authority to issue bonds or notes in anticipation of bonds under this act shall continue 11
133	133	provided that: (1) The regional district school committee passes a resolution evidencing the 12
134	134	district’s intent to pay off the notes without extinguishing the authority to issue bonds or notes; and 13
135	135	(2) That the period from the date of an original note to the maturity date of any other note shall not 14
136	136	exceed five (5) years. 15
137	137	SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 16
138	138	of any authorization or issue of notes hereunder, the district treasurer, with the approval of the 17
139	139	regional district school committee, may, to the extent that bonds or notes may be issued hereunder, 18
140	140	apply funds in the treasury of the district to the purposes specified in section 3, such advances to 19
141	141	be repaid without interest from the proceeds of bonds or notes subsequently issued or from the 20
142	142	proceeds of applicable federal or state assistance or from other available funds. 21
143	143	SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 22
144	144	or state assistance, pending their expenditure may be deposited or invested by the district treasurer 23
145	145	in demand deposits, time deposits or savings deposits in banks which are members of the Federal 24
146	146	Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of 25
147	147	America or by any agency or instrumentality thereof or as may be provided in any other applicable 26
148	148	law of the State of Rhode Island or resolution of the regional district school committee or pursuant 27
149	149	to an investment policy of the district, duly adopted by the regional school committee. 28
150	150	SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 29
151	151	be applied to the payment of the first interest due thereon. Any premium arising from the sale of 30
152	152	bonds or notes hereunder shall, in the discretion of the district treasurer, be applied to the cost of 31
153	153	preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to 32
154	154	the payment of the project costs, to the payment of the principal of or interest on bonds or notes 33
155	155	issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 34
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159	159	marketing bonds or notes hereunder may also, in the discretion of the district treasurer, be met from 1
160	160	bond or note proceeds exclusive of accrued interest or from other monies available therefor. Any 2
161	161	balance of bond or note proceeds remaining after payment of the cost of the project and the cost of 3
162	162	preparing, issuing and marketing bonds or notes hereunder, shall be applied to the payment of the 4
163	163	principal of or interest on bonds or notes issued hereunder. To the extent permitted by applicable 5
164	164	federal laws, any earnings or net profit realized from the deposit or investment of funds hereunder 6
165	165	may, upon receipt, be added to and dealt with as part of the revenues of the district from its member 7
166	166	towns. In exercising any discretion under this section, the district treasurer shall be governed by 8
167	167	any instructions adopted by resolution of the regional district school committee. 9
168	168	SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 10
169	169	shall be obligatory on the district in the same manner and to the same extent as other debts lawfully 11
170	170	contracted by incorporated towns of the State of Rhode Island. All bonds and notes issued under 12
171	171	this act and the debts evidenced thereby shall be exempted from the operation of § 16-3-17, section 13
172	172	3 of chapter 330 of the public laws of the State of Rhode Island (the “enabling legislation”) and 14
173	173	any other provision of charter, special law or general law limiting the issuance of debt. No such 15
174	174	obligation shall at any time be included in the debt of either member town for the purposes of 16
175	175	ascertaining its borrowing capacity, nor shall it be subject to the provisions of § 45-12-2 with 17
176	176	respect to each member town. The district shall annually appropriate and apportion between the 18
177	177	member towns, a sum sufficient to pay the principal and interest coming due within the year on 19
178	178	bonds and notes issued hereunder to the extent that monies therefor are not otherwise provided, and 20
179	179	each member town shall, annually appropriate a sum sufficient to pay its share of the 21
180	180	apportionment. If such sum is not appropriated, it shall nevertheless be added to the annual tax levy 22
181	181	of each member town. In order to provide such sum in each year and notwithstanding any provision 23
182	182	of law to the contrary, all taxable property in each member town of the district shall be subject to 24
183	183	ad valorem taxation by the member town of the district without limitation as to rate or amount to 25
184	184	pay the member town’s share of such apportionment. 26
185	185	SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if 27
186	186	any, if properly executed by officers of the district in office on the date of execution, shall be valid 28
187	187	and binding according to their terms notwithstanding that before the delivery thereof and payment 29
188	188	therefor any or all of such officers shall for any reason have ceased to hold office. 30
189	189	SECTION 10. The district, acting by resolution of its regional district school committee, 31
190	190	is authorized to apply for, contract for and expend any federal or state advances or other grants or 32
191	191	assistance which may be available for the purposes of this act, and any such expenditures may be 33
192	192	in addition to the monies provided in this act. To the extent of any inconsistency between any law 34
193	193
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196	196	of this state and any applicable federal law or regulation, the latter shall prevail. Federal and state 1
197	197	advances, with interest where applicable, whether contracted for prior to or after the effective date 2
198	198	of this act, may be repaid as project costs under section 3. 3
199	199	SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 4
200	200	of any governmental agency or the taking of any proceedings or the happening of any conditions 5
201	201	except as specifically required by this act for such issue. In carrying out any project financed in 6
202	202	whole or in part under this act, including where applicable the condemnation of any land or interest 7
203	203	in land, and in the levy and collection of assessments or other charges permitted by law on account 8
204	204	of any such project, all action shall be taken which is necessary to meet constitutional requirements 9
205	205	whether or not such action is otherwise required by statute, but the validity of bonds and notes 10
206	206	issued hereunder shall in no way depend upon the validity or occurrence of such action. 11
207	207	SECTION 12. The district treasurer and the chairperson of the regional district school 12
208	208	committee, on behalf of the district, are hereby authorized to execute such instruments, documents 13
209	209	or other papers as either of them deem necessary or desirable to carry out the intent of this act and 14
210	210	are also authorized to take all actions and execute all instruments, documents or agreements 15
211	211	necessary to comply with federal tax and securities laws, which instruments, documents or 16
212	212	agreements may have a term coextensive with the maturity of the bonds authorized hereby, 17
213	213	including Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and to execute 18
214	214	and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes 19
215	215	in the form as shall be deemed advisable by such officers in order to comply with the Rule. 20
216	216	SECTION 13. All or any portion of the authorized but unissued authority to issue bonds 21
217	217	and notes under this act may be extinguished by resolution of the regional district school committee, 22
218	218	with the approval of the joint finance committee, after ten (10) years shall have passed from the 23
219	219	approval of this act provided for in section 14, without further action by the general assembly. 24
220	220	SECTION 14. The question of the approval of this act shall be submitted to the electors of 25
221	221	the towns of Bristol and Warren, at a general or local election, other than a primary, to be held on 26
222	222	November 7, 2023, or on another date determined by resolution of the regional district school 27
223	223	committee. The question shall be submitted in substantially the following form: “Shall an act passed 28
224	224	at the 2023 session of the general assembly entitled ‘AN ACT AUTHORIZING THE BRISTOL 29
225	225	WARREN REGIONAL SCHOOL DISTRICT TO ISSUE NOT TO EXCEED TWO HUNDRED 30
226	226	MILLION DOLLARS ($200,000,000) GENERAL OBLIGATION BONDS AND NOTES T O 31
227	227	FINANCE THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, 32
228	228	FURNISHING AND EQUIPPING OF A NEW HIGH SCHOOL, ATHLETIC FACILITY, AND 33
229	229	SCHOOL FACILITIES IN THE DISTRICT, FURNISHINGS AND EQUIPMENT THEREOF, 34
230	230
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233	233	AND ALL EXPENSES INCIDENT THERETO, INCLUDING, BUT NOT LIMITED TO, COSTS 1
234	234	OF DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING AND PARKING AND 2
235	235	ALL ATTENDANT EXPENSES, INCLUDING ENGINEERING, ARCHITECTURAL, 3
236	236	SURVEYING AND OTHER PROJECT -RELATED CONSULTING COSTS be approved? ’” and 4
237	237	the warning for the election shall contain the question to be submitted. From the time the election 5
238	238	is warned and until it is held, it shall be the duty of the clerk of each member town of the district to 6
239	239	keep a copy of this act available at the clerk’s office for public inspection, but the validity of the 7
240	240	election shall not be affected by this requirement. To the extent of any inconsistency between this 8
241	241	act and the district enabling legislation, this act shall prevail. 9
242	242	SECTION 15. This section and section 14 shall take effect upon the passage of this act. 10
243	243	The remainder of this act shall take effect upon the approval of this act by a majority of the district 11
244	244	of those voting on the question at the election prescribed by section 14. 12
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251	251	EXPLANATION
252	252	OF
253	253	A N A C T
254	254	AUTHORIZING THE BRISTOL WARREN REGIONAL SCHOOL DISTRICT TO ISSUE
255	255	NOT TO EXCEED TWO HU NDRED MILLION DOLLAR S ($200,000,000) IN GENERAL
256	256	OBLIGATION BONDS AND NOTES TO FINANCE THE ACQUISITION, CONSTRUCTION,
257	257	IMPROVEMENT, RENOV ATION, FURNISHING AND EQUIPPING OF A NEW HIGH
258	258	SCHOOL, ATHLETIC FACILITY, AND SCHOOL FACILITIES IN THE DISTRICT,
259	259	FURNISHINGS AND EQUIPMENT AND ALL EXPENS ES INCIDENT THERETO,
260	260	INCLUDING, BUT NOT LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC
261	261	FIELDS, LANDSCAPING, AND PARKING AND ALL ATTENDANT EXP ENSES,
262	262	INCLUDING ENGINEERING, ARCHITECTURAL, SURVEYING AND OTHER PR OJECT-
263	263	RELATED CONSULTING C OSTS
264	264	***
265	265	This act authorizes the district to issue not more than two hundred million dollars 1
266	266	($200,000,000) bonds and notes to finance the acquisition, construction, improvement, renovation, 2
267	267	furnishing and equipping of a new high school, athletic facility, and school facilities in the district 3
268	268	and all expenses incident thereto, including, but not limited to, costs of design, 4
269	269	demolition, athletic fields, landscaping and parking and all attendant expenses, including 5
270	270	engineering, architectural, surveying and other project-related consulting costs. 6
271	271	Sections 14 and 15 of this act would take effect upon passage. The remainder of the act 7
272	272	would take effect upon approval by the electors of the district of the question provided for in Section 8
273	273	14. 9
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