2012 -- H 7594

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LC01770

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

AUTHORIZING THE TOWN OF LITTLE COMPTON TO FINANCE HEALTH, SAFETY

AND FIRE CODE-RELATED EMERGENCY REPAIRS, ALTERATIONS, RENOVATIONS,

IMPROVEMENTS, LANDSCAPING AND EQUIPPING AND FURNISHING OF THE

WILBUR & MCMAHON SCHOOLS AND ALL ATTENDANT EXPENSES INCLUDING,

BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS AND TO ISSUE

NOT MORE THAN $11,310,000 BONDS AND/OR NOTES THEREFOR

     Introduced By: Representative Daniel P. Gordon

     Date Introduced: February 16, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. The town of Little Compton is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding eleven million three hundred ten

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thousand dollars ($11,310,000) from time to time under its corporate name and seal. The bonds of

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each issue may be issued in the form of serial bonds or term bonds or a combination thereof and

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shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial

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redemption in the case of term bonds, in annual installments of principal, the first installment to

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be not later than five (5) years and the last installment not later than thirty (30) years after the date

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of the bonds. All such bonds of a particular issue may be issued in the form of zero coupon

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bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof. Annual

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installments of principal may be provided for by maturity of principal in the case of serial bonds

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or by mandatory serial redemption in the case of term bonds. The amount of principal

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appreciation each year on any bonds, after the date of original issuance, shall not be considered to

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be principal indebtedness for the purposes of any constitutional or statutory debt limit or any

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other limitation. The appreciation of principal after the date of original issue shall be considered

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interest. Only the original principal amount shall be counted in determining the principal amount

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so issued and any interest component shall be disregarded.

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     SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town

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treasurer and the president of the town council and shall be issued and sold in such amounts as the

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town council may authorize by resolution. The manner of sale, denominations, maturities, interest

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rates and other terms, conditions and details of any bonds or notes issued under this act may be

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fixed by proceedings of the town council authorizing the issue or by separate resolution of the

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town council or, to the extent provisions for these matters are not so made, they may be fixed by

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the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this act

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to the contrary, the town may enter into financing agreements with the Rhode Island Health and

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Educational Building Corporation pursuant to title 16 chapter 7 and title 45 chapter 38.1 of the

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general laws and, with respect to notes or bonds issued in connection with such financing

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agreements, if any, the town may elect to have the provisions of title 45, chapter 38.1 of the

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general laws apply to the issuance of the bonds or notes issued hereunder to the extent the

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provisions of title 45, chapter 38.1 of the general laws are inconsistent herewith. Such election

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may be fixed by the proceedings of the town council authorizing such issuance of by separate

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resolution of the town council, or, to the extent provisions for these matters are not so made, they

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may be fixed by the officers authorized to sign the bonds or notes. Interest coupons (if any) shall

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bear the manual or facsimile signature of the town treasurer. The proceeds derived from the sale

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of the bonds shall be delivered to the town treasurer, and such proceeds, exclusive of premium

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and accrued interest, shall be expended: (a) To finance health, safety and fire code-related

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emergency repairs, alterations, renovations, improvements, landscaping and equipping and

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furnishing of, the Wilbur & McMahon schools and all attendant expenses including, but not

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limited to, engineering and architectural costs (all of which shall be hereinafter referred to as the

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“projects”); (b) In payment of the principal of or interest on temporary notes issued under section

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3; (c) In repayment of advances under section 4; (d) In payment of related costs of issuance of

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any bonds or notes; and/or (e) To finance capitalized interest on the projects. No purchaser of any

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bonds or notes under this act shall be in any way responsible for the proper application of the

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proceeds derived from the sale thereof. The projects shall be carried out and all contracts made

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therefor on behalf of the town by the town council, or the town council may delegate such

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authority to the town school committee. The proceeds of bonds or notes issued under this act, any

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applicable federal or state assistance and the other moneys referred to in sections 6 and 9 shall be

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deemed appropriated for the purposes of this act without further action than that required by this

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act. The bond issue authorized by this act may be consolidated for the purposes of issuance and

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sale with any other bond issue of the town heretofore or hereafter authorized, provided that,

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notwithstanding any such consolidation, the proceeds from the sale of the bonds authorized by

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this act shall be expended for the purposes set forth above. The town treasurer and president of

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the town council, on behalf of the town, are hereby authorized to execute such instruments,

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documents or other papers as either of them deem necessary or desirable to carry out the intent of

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this act and are also authorized to take all actions and execute all instruments, documents or

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agreements necessary to comply with federal tax and securities laws, which instruments,

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documents or agreements may have a term coextensive with the maturity of the bonds authorized

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hereby, including Rule 15c2-12 of the Securities and Exchange Commission and to execute and

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deliver a continuing disclosure agreement or certificate in connection with the bonds or notes.

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     SECTION 3. The town council may by resolution authorize the issuance from time to

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time of interest bearing or discounted notes in anticipation of the issuance of bonds or in

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anticipation of the receipt of federal or state aid for the purposes of this act. The amount of

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original notes issued in anticipation of bonds may not exceed the amount of bonds which may be

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issued under this act and the amount of original notes issued in anticipation of federal or state aid

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may not exceed the amount of available federal or state aid as estimated by the town treasurer.

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Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the

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town treasurer and the president of the town council and shall be payable within five (5) years

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from their respective dates, but the principal of and interest on notes issued for a shorter period

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may be renewed or paid from time to time by the issuance of other notes hereunder, provided the

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period from the date of an original note to the maturity of any note issued to renew or pay the

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same debt or interest thereon shall not exceed five (5) years. Any temporary notes in anticipation

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of bonds issued under this section may be refunded prior to the maturity of the notes by the

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issuance of additional temporary notes, provided that no such refunding shall result in any

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amount of such temporary notes outstanding at any one time in excess of two hundred percent

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(200%) of the amount of bonds which may be issued under this act, and provided further that if

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the issuance of any such refunding notes results in any amount of such temporary notes

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outstanding at any one time in excess of the amount of bonds which may be issued under this act,

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the proceeds of such refunding notes shall be deposited in a separate fund established with the

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bank which is paying agent for the notes being refunded. Pending their use to pay the notes being

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refunded, moneys in the fund shall be invested for the benefit of the town by the paying agent at

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the direction of the town treasurer in any investment permitted under section 5. The moneys in

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the fund and any investments held as part of the fund shall be held in trust and shall be applied by

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the paying agent solely to the payment or prepayment of the principal of and interest on the notes

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being refunded. Upon payment of all principal of and interest on the notes, any excess moneys in

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the fund shall be distributed to the town. The town may pay the principal of and interest on notes

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in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant to

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section 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of

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bonds under this act shall continue provided that: (1) The town council passes a resolution

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evidencing the town’s intent to pay off the notes without extinguishing the authority to issue

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bonds or notes; and (2) That the period from the date of an original note to the maturity date of

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any other note shall not exceed five (5) years.

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     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

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of any authorization or issue of notes hereunder, the town treasurer, with the approval of the town

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council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the

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treasury of the town to the purposes specified in section 2, such advances to be repaid without

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interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

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applicable federal or state assistance or from other available funds.

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     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable

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federal or state assistance, pending their expenditure, may be deposited or invested by the town

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treasurer in demand deposits, time deposits, or savings deposits in banks which are members of

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the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United

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States of America or by any agency or instrumentality thereof or as may be provided in any other

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applicable law of the State of Rhode Island or resolution of the town council or pursuant to an

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investment policy of the town.

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     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder

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shall be applied to the payment of the first interest due thereon. Any premium arising from the

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sale of bonds or notes hereunder shall, in the discretion of the town treasurer, be applied to the

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cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise

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provided, to the payment of project costs, to the payment of the principal of or interest on bonds

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or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing

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and marketing bonds or notes hereunder may also, in the discretion of the town treasurer, be met

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from bond or note proceeds exclusive of premium and accrued interest or from other moneys

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available therefor. Any balance of bond or note proceeds remaining after payment of the cost of

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the projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

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applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the

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extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or

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investment of funds hereunder may, upon receipt, be added to and dealt with as part of the

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revenues of the town from property taxes. In exercising any discretion under this section, the

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town treasurer shall be governed by any instructions adopted by resolution of the town council.

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     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby

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shall be obligatory on the town in the same manner and to the same extent as other debts lawfully

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contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws

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and any provision of the town charter. No such obligation shall at any time be included in the

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debt of the town for the purpose of ascertaining its borrowing capacity. The town shall annually

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appropriate a sum sufficient to pay the principal and interest coming due within the year on bonds

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and notes issued hereunder to the extent that moneys therefor are not otherwise provided. If such

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sum is not appropriated, it shall nevertheless be added to the annual tax levy. In order to provide

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such sum in each year and notwithstanding any provision of law to the contrary, all taxable

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property in the town shall be subject to ad valorem taxation by the town without limitation as to

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rate or amount.

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     SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if

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any, if properly executed by officers of the town in office on the date of execution, shall be valid

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and binding according to their terms notwithstanding that before the delivery thereof and payment

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therefor any or all of such officers shall for any reason have ceased to hold office.

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     SECTION 9. The town, acting by resolution of its town council, is authorized to apply

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for, contract for and expend any federal or state advances or other grants of assistance which may

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be available for the purposes of this act, and any such expenditures may be in addition to the

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moneys provided in this act. To the extent of any inconsistency between any law of this state and

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any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

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interest where applicable, whether contracted for prior to or after the effective date of this act,

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may be repaid as project costs under section 2.

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     SECTION 10. Bonds and notes may be issued under this act without obtaining approval

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of any governmental agency or the taking of any proceedings or the happening of any conditions

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except as specifically required by this act for such issue. In carrying out any project financed in

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whole or in part under this act, including where applicable the condemnation of any land or

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interest in land, and in the levy and collection of assessments or other charges permitted by law

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on account of any such project, all action shall be taken which is necessary to meet constitutional

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requirements whether or not such action is otherwise required by statute, but the validity of bonds

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and notes issued hereunder shall in no way depend upon the validity or occurrence of such action.

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     SECTION 11. All or any portion of the authorized but unissued authority to issue bonds

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and notes under this act may be extinguished by ordinance of the town council, without further

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action by the general assembly.

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     SECTION 12. The question of the approval of this act shall be submitted to the electors

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of the Town at a local election to be held on a date that shall be designated by the town council.

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The question shall be submitted in substantially the following form:

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     “Shall an act, passed at the 2012 session of the general assembly entitled ‘AN ACT

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AUTHORIZING THE TOWN OF LITTLE COMPTON TO FINANCE HEALTH, SAFETY

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AND FIRE CODE-RELATED EMERGENCY REPAIRS, ALTERATIONS, RENOVATIONS,

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IMPROVEMENTS, LANDSCAPING AND EQUIPPING AND FURNISHING OF, THE

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WILBUR & MCMAHON SCHOOLS AND ALL ATTENDANT EXPENSES INCLUDING,

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BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS AND TO ISSUE

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NOT MORE THAN $11,310,000 BONDS AND/OR NOTES THEREFOR’ be approved?” and

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the warning for the election shall contain the question to be submitted. Notwithstanding anything

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contained in Rhode Island General Laws section 17-19-7 to the contrary, the Little Compton

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Board of Canvassers may certify the question to the Secretary of State not later than thirty (30)

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days prior to the date set for any special town election. From the time the election is warned and

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until it is held, it shall be the duty of the town clerk to keep a copy of this act available for public

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inspection, but the validity of the election shall not be affected by this requirement. To the extent

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of any inconsistency between this act and the town charter, this act shall prevail.

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     SECTION 1. Sections 12 and 13 shall take effect upon the passage of this act. The

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remainder of this act shall take effect upon the approval of this act by a majority of those voting

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on the question at the election prescribed by section 12.

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LC01770

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EXPLANATION

OF

A N A C T

AUTHORIZING THE TOWN OF LITTLE COMPTON TO FINANCE HEALTH, SAFETY

AND FIRE CODE-RELATED EMERGENCY REPAIRS, ALTERATIONS, RENOVATIONS,

IMPROVEMENTS, LANDSCAPING AND EQUIPPING AND FURNISHING OF THE

WILBUR & MCMAHON SCHOOLS AND ALL ATTENDANT EXPENSES INCLUDING,

BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS AND TO ISSUE

NOT MORE THAN $11,310,000 BONDS AND/OR NOTES THEREFOR

***

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     This act authorizes the town of Little Compton to issue not more than $11,310,000 bonds

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and notes to finance health, safety and fire code-related emergency repairs, alterations,

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renovations, improvements, landscaping and equipping and furnishing of, the Wilbur &

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McMahon schools and all attendant expenses including, but not limited to, engineering and

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architectural costs.

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     Sections 12 and 13 of this act would take effect upon passage. The remainder of this act

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would take effect upon approval by the electors of the town of the question or questions provided

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for in section 12.

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LC01770

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