Rhode Island 2025 Regular Session

Rhode Island House Bill H6077 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	2025 -- H 6077
6	6	========
7	7	LC002245
8	8	========
9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUC TION,
16	16	RENOVATION, IMPROVEM ENT, ALTERATION, REPAIR, FURNISHING AND
17	17	EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE
18	18	OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF
19	19	INDEBTEDNESS THEREFO R
20	20	Introduced By: Representatives Giraldo, Voas, Alzate, and Stewart
21	21	Date Introduced: March 12, 2025
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 city of Central Falls was authorized by the voters of the City to issue not 1
27	27	to exceed twenty-six million forty-nine thousand dollars $26,049,000 bonds and other evidences 2
28	28	of indebtedness (hereinafter "bonds"). Pursuant to that authority, the city of Central Falls is hereby 3
29	29	empowered, in addition to authority previously granted, to issue bonds up to an amount not 4
30	30	exceeding fifteen million dollars ($15,000,000) from time to time under its corporate name and seal 5
31	31	or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or 6
32	32	term bonds or a combination thereof and shall be payable either by maturity of principal in the case 7
33	33	of serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual 8
34	34	installments of principal, the first installment to be not later than five (5) years and the last 9
35	35	installment not later than thirty (30) years after the date of the bonds. All such bonds of a particular 10
36	36	issue may be issued in the form of zero coupon bonds, capital appreciation bonds, serial bonds or 11
37	37	term bonds or a combination thereof. The amount of principal appreciation each year on any bonds, 12
38	38	after the date of original issuance, shall not be considered to be principal indebtedness for the 13
39	39	purposes of any constitutional or statutory debt limit or any other limitation. The appreciation of 14
40	40	principal after the date of original issue shall be considered interest. Only the original principal 15
41	41	amount shall be counted in determining the principal amount so issued and any interest component 16
42	42	shall be disregarded. 17
43	43
44	44
45	45	LC002245 - Page 2 of 7
46	46	SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the city 1
47	47	director of finance and the mayor and shall be issued and sold in such amounts as the city council 2
48	48	may authorize by resolution. The manner of sale, denominations, maturities, interest rates and other 3
49	49	terms, conditions and details of any bonds or notes issued under this act may be fixed by the 4
50	50	proceedings of the city council authorizing the issue or by separate resolution of the city council 5
51	51	or, to the extent provisions for these matters are not so made, they may be fixed by the officers 6
52	52	authorized to sign the bonds. Notwithstanding anything contained in this act to the contrary, the 7
53	53	city may enter into financing agreements with the Rhode Island Health and Educational Building 8
54	54	Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds 9
55	55	or notes issued in connection with such financing agreements, if any, the city may elect to have the 10
56	56	provisions of chapter 38.1 of title 45 apply to the issuance of the notes or bonds issued hereunder 11
57	57	to the extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the city 12
58	58	may enter into financing agreements with the Rhode Island infrastructure bank pursuant to the 13
59	59	provisions of chapter 12.2 of title 46 and, with respect to notes or bonds issued in connection with 14
60	60	such financing agreements, if any, the city may elect to have the provisions of chapter 12.2 of title 15
61	61	46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions of 16
62	62	chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings of 17
63	63	the city council authorizing such issuance by separate resolution of the city council, or, to the extent 18
64	64	provisions for these matters are not so made, they may be fixed by the officers authorized to sign 19
65	65	the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the city 20
66	66	director of finance, and such proceeds, exclusive of accrued interest shall be expended: (1) For the 21
67	67	construction, renovation, improvement, alteration, repair, furnishing and equipping of schools and 22
68	68	school facilities in the city and all costs related thereto; (2) In payment of the principal of or interest 23
69	69	on temporary notes issued under section 3; (3) In repayment of advances under section 4; (4) In 24
70	70	payment of related costs of issuance of any bonds or notes; and/or (5) In payment of capitalized 25
71	71	interest during construction. No purchaser of any bonds or notes under this act shall be in any way 26
72	72	responsible for the proper application of the proceeds derived from the sale thereof. The project 27
73	73	shall be carried out and all contracts made therefor on behalf of the city by the city school building 28
74	74	committee. The proceeds of bonds or notes issued under this act, any applicable federal or state 29
75	75	assistance and the other monies referred to in sections 6 and 9 shall be deemed appropriated for the 30
76	76	purposes of this act without further action than that required by this act. The bonds authorized by 31
77	77	this act may be consolidated for the purpose of issuance and sale with any other bonds of the city 32
78	78	heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, the 33
79	79	proceeds from the sale of the bonds authorized by this act shall be expended for the purposes set 34
80	80
81	81
82	82	LC002245 - Page 3 of 7
83	83	forth above. 1
84	84	SECTION 3. The city council may by resolution authorize the issuance from time to time 2
85	85	of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of 3
86	86	the receipt of federal or state aid for the purposes of this act. The amount of original notes issued 4
87	87	in anticipation of bonds may not exceed the amount of bonds which may be issued under this act, 5
88	88	and the amount of original notes issued in anticipation of federal or state aid may not exceed the 6
89	89	amount of available federal or state aid as estimated by the director of finance. Temporary notes 7
90	90	issued hereunder shall be signed by the manual or facsimile signatures of the city director of finance 8
91	91	and the mayor and shall be payable within five (5) years from their respective dates, but the 9
92	92	principal of and interest on notes issued for a shorter period may be renewed or paid from time to 10
93	93	time by the issuance of other notes hereunder; provided, the period from the date of an original note 11
94	94	to the maturity of any note issued to renew or pay the same debt or interest thereon shall not exceed 12
95	95	five (5) years. Any temporary notes in anticipation of bonds issued under this section may be 13
96	96	refunded prior to the maturity of the notes by the issuance of additional temporary notes; provided 14
97	97	that, no such refunding shall result in any amount of such temporary notes outstanding at any one 15
98	98	time in excess of two hundred percent (200%) of the amount of bonds which may be issued under 16
99	99	this act; and provided further, that, if the issuance of any such refunding notes results in any amount 17
100	100	of such temporary notes outstanding at any one time in excess of the amount of bonds which may 18
101	101	be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund 19
102	102	established with the bank which is paying agent for the notes being refunded. Pending their use to 20
103	103	pay the notes being refunded, monies in the fund shall be invested for the benefit of the city by the 21
104	104	paying agent at the direction of the city director of finance in any investment permitted under 22
105	105	section 5. The monies in the fund and any investments held as part of the fund shall be held in trust 23
106	106	and shall be applied by the paying agent solely to the payment or prepayment of the principal of 24
107	107	and interest on the notes being refunded. Upon payment of all principal of and interest on the notes, 25
108	108	any excess monies in the fund shall be distributed to the city. The city may pay the principal of and 26
109	109	interest on notes in full from other than the issuance of refunding notes prior to the issuance of 27
110	110	bonds pursuant to section 1 hereof. In such case, the city's authority to issue bonds or notes in 28
111	111	anticipation of bonds under this act shall continue; provided that: (1) The city council passes a 29
112	112	resolution evidencing the city's intent to pay off the notes without extinguishing the authority to 30
113	113	issue bonds or notes; and (2) That the period from the date of an original note to the maturity date 31
114	114	of any other note shall not exceed five (5) years. 32
115	115	SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 33
116	116	of any authorization or issue of notes hereunder, the city director of finance, with the approval of 34
117	117
118	118
119	119	LC002245 - Page 4 of 7
120	120	the city council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 1
121	121	treasury of the city to the purposes specified in section 2, such advances to be repaid without interest 2
122	122	from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal 3
123	123	or state assistance or from other available funds. 4
124	124	SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 5
125	125	or state assistance, pending their expenditure may be deposited or invested by the city director of 6
126	126	finance in demand deposits, time deposits or savings deposits in banks which are members of the 7
127	127	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 8
128	128	of America or by any agency or instrumentality thereof or as may be provided in any other 9
129	129	applicable law of the State of Rhode Island or resolution of the city council or pursuant to an 10
130	130	investment policy of the city. 11
131	131	SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 12
132	132	be applied to the payment of the first interest due thereon. Any premium arising from the sale of 13
133	133	bonds or notes hereunder shall, in the discretion of the city director of finance, be applied to the 14
134	134	cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise 15
135	135	provided, to the payment of the project costs, to the payment of the principal of or interest on bonds 16
136	136	or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing 17
137	137	and marketing bonds or notes hereunder may also, in the discretion of the city director of finance, 18
138	138	be met from bond or note proceeds exclusive of accrued interest or from other monies available 19
139	139	therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects 20
140	140	and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the 21
141	141	payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted 22
142	142	by applicable federal laws, any earnings or net profit realized from the deposit or investment of 23
143	143	funds hereunder may, upon receipt, be used to pay additional project costs, pay the principal of or 24
144	144	interest on bonds or notes issued hereunder or added to and dealt with as part of the revenues of the 25
145	145	city from property taxes. In exercising any discretion under this section, the city director of finance 26
146	146	shall be governed by any instructions adopted by resolution of the city council. 27
147	147	SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 28
148	148	shall be obligatory on the city in the same manner and to the same extent as other debts lawfully 29
149	149	contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at 30
150	150	any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity. 31
151	151	The city shall annually appropriate a sum sufficient to pay the principal and interest coming due 32
152	152	within the year on bonds and notes issued hereunder to the extent that monies therefor are not 33
153	153	otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 34
154	154
155	155
156	156	LC002245 - Page 5 of 7
157	157	levy. In order to provide such sum in each year and notwithstanding any provision of law to the 1
158	158	contrary, all taxable property in the city shall be subject to ad valorem taxation by the city without 2
159	159	limitation as to rate or amount. 3
160	160	SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if 4
161	161	any, if properly executed by officers of the city in office on the date of execution, shall be valid and 5
162	162	binding according to their terms notwithstanding that before the delivery thereof and payment 6
163	163	therefor any or all of such officers shall for any reason have ceased to hold office. 7
164	164	SECTION 9. The city, acting by resolution of its city council, is authorized to apply for, 8
165	165	contract for and expend any federal or state advances or other grants or assistance which may be 9
166	166	available for the purposes of this act, and any such expenditures may be in addition to the monies 10
167	167	provided in this act. To the extent of any inconsistency between any law of this state and any 11
168	168	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 12
169	169	where applicable, whether contracted for prior to or after the effective date of this act, may be 13
170	170	repaid as project costs under section 2. 14
171	171	SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 15
172	172	of any governmental agency or the taking of any proceedings or the happening of any conditions 16
173	173	except as specifically required by this act for such issue. In carrying out any project financed in 17
174	174	whole or in part under this act, including where applicable the condemnation of any land or interest 18
175	175	in land, and in the levy and collection of assessments or other charges permitted by law on account 19
176	176	of any such project, all action shall be taken which is necessary to meet constitutional requirements 20
177	177	whether or not such action is otherwise required by statute, but the validity of bonds and notes 21
178	178	issued hereunder shall in no way depend upon the validity or occurrence of such action. 22
179	179	SECTION 11. The city director of finance and the mayor, on behalf of the city, are hereby 23
180	180	authorized to execute such instruments, documents or other papers as either of them deem necessary 24
181	181	or desirable to carry out the intent of this act and are also authorized to take all actions and execute 25
182	182	all instruments, documents or agreements necessary to comply with federal tax and securities laws, 26
183	183	which instruments, documents or agreements may have a term coextensive with the maturity of the 27
184	184	bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission (the 28
185	185	"Rule") and to execute and deliver a continuing disclosure agreement or certificate in connection 29
186	186	with the bonds or notes in the form as shall be deemed advisable by such officers in order to comply 30
187	187	with the Rule. 31
188	188	SECTION 12. All or any portion of the authorized but unissued authority to issue bonds 32
189	189	and notes under this act may be extinguished by resolution of the city council after seven (7) years 33
190	190	shall have passed from the approval of this act described in section 14, without further action by 34
191	191
192	192
193	193	LC002245 - Page 6 of 7
194	194	the general assembly. 1
195	195	SECTION 13. This act shall constitute an enabling act of the general assembly that is 2
196	196	required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under 3
197	197	this act for school projects shall not be eligible for state housing aid reimbursement pursuant to § 4
198	198	16-7-44 unless the school projects described herein have been approved by RIDE. 5
199	199	SECTION 14. The question of approval of the issuance of the bonds was previously 6
200	200	submitted to and approved by the electors of the city at the November 5, 2024 election and 7
201	201	accordingly, this act shall take effect upon the passage. 8
202	202	========
203	203	LC002245
204	204	========
205	205
206	206
207	207	LC002245 - Page 7 of 7
208	208	EXPLANATION
209	209	OF
210	210	A N A C T
211	211	AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION,
212	212	RENOVATION, IMPROVEM ENT, ALTERATION, REPAIR, FURNISHING AND
213	213	EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE
214	214	OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF
215	215	INDEBTEDNESS THEREFO R
216	216	***
217	217	This act authorizes the city of Central Falls to issue bonds and notes in an amount not 1
218	218	exceeding $15,000,000 to finance the construction, renovation, improvement, alteration, repair 2
219	219	furnishing and equipping of schools and school facilities in the city. 3
220	220	This act constitutes an enabling act of the general assembly that is required pursuant to § 4
221	221	16-7-44. Any bonds, notes or other evidences of indebtedness issued under this act for school 5
222	222	projects shall not be eligible for state housing aid reimbursement pursuant to § 16-7-44 unless the 6
223	223	school projects described herein have been approved by the Rhode Island department of education. 7
224	224	As the question of approval of the issuance of the bonds and notes was previously 8
225	225	submitted to and approved by the electors of the city at the November 5, 2024 election this act takes 9
226	226	effect upon passage. 10
227	227	========
228	228	LC002245
229	229	========