2012 -- S 2879

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LC02320

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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

RELATING TO LAND TRUST FOR THE TOWN OF RICHMOND

     Introduced By: Senators Maher, and Algiere

     Date Introduced: April 12, 2012

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 2, 5, 7 and 9 of Chapter 75 of the Public Laws of 1997 entitled

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“An Act Relating to Land Trust for the Town of Richmond” are hereby amended to read as

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follows:

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     SECTION 1

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     Name and Purpose

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     There is hereby established a Richmond Rural Preservation Land Trust (hereinafter called

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trust) for the purposes of, but not limited to: acquiring development rights to agricultural property

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within the Town of Richmond, acquiring agricultural property, and/or other property, or interest

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therein, to preserve open spaces, fresh water wetlands and ponds, adjoining uplands, wildlife

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habitats, groundwater recharge areas, land providing access to open space land, land for bicycle

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and hiking paths and land for future passive public recreational facilities and use.

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     SECTION 2

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     Administration

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     The trust shall be administered by Five (5) Seven (7) trustees who shall be appointed by

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the town council of the Town of Richmond. The trustees who are first appointed shall be

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designated to serve for terms of one (1), two (2), three (3), four (4), and five (5) years

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respectively, terms to expire on December 31st annually. Thereafter, trustees shall be appointed

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as aforesaid for a term of office of five (5) years, except that all vacancies occurring during a term

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shall be filled for the unexpired term. In addition to the five (5) seven (7) trustees appointed by

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the town council, the current chairperson, or member designee of the Richmond Planning Board

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and the Town Planner shall serve as ex-officio members to the trust.

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     Trustees shall be resident electors of the Town of Richmond, shall serve without

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compensation and shall hold office until their successors have been appointed. No trustee may be

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an elected officer or salaried employee of the town of Richmond.

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     SECTION 3

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     Organization of Trust

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     The members of the trust shall elect a chairperson and vice-chairperson from amongst its

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members. The trustees shall elect or appoint a secretary who need not be a voting member of the

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trust. The term of office of the office of the chairperson, vice-chairperson and secretary, unless

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otherwise prescribed by the Richmond Town Council, shall be for the calendar year, or for that

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portion therefor remaining after each such officer is designated or elected.

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     The Trust shall re-organize annually in January and shall file forthwith a list of the

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officers for the ensuing year with the Town Clerk.

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     SECTION 4

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     Rules and Regulations

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     The trustees may adopt reasonable rules and regulations governing the conduct of trust

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affairs, including the acquisition and management of its holdings not inconsistent with the

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provisions of this Act. All rules and regulations of the trust are subject to the approval of the town

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council. Decisions of the trustees shall be by majority vote of those present and voting, and no

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business shall be transacted without a quorum of three (3) members present. The trustees shall

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keep accurate records of their meetings and actions and shall file copies of their minutes with the

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Town Clerk. All meetings of the trust shall be open to the public and held in accordance with any

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Rhode Island laws pertaining to the open meetings and posting of meetings.

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     SECTION 5

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     Powers of the Trust

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     The trust shall have the power to:

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     a) purchase, receive by gift, or otherwise acquire fee simple or lesser interests in real

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property, including development rights as defined in section 42-12-2 of the General Laws, or any

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interest in real property consistent with the purposes of this Act;

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     b) accept gifts, grants or loans of funds or services from any source, public or private, and

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comply, subject to the provisions of this act, with any terms and conditions thereof;

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     c) accept from state and/or federal agencies, loans or grants for use in carrying out the

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trust's purposes and enter into agreements with such agencies respecting any such loans or grants;

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     d) employ counsel, auditors, engineers, appraisers, private consultants, advisors,

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secretaries or other personnel needed to perform its duties;

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     e) administer and manage land and interests in land held by it in a manner which allows

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public use and enjoyment consistent with the natural and scenic resources thereof, including

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conveyance at any such land or interest in land to, and contracts with, nonprofit organizations,

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provided such land shall continue to be used in a manner consistent with the purposes of this Act

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and with the terms of any grant or devise by which such land was acquired by the trust;

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     f) incur debt, only after authorization in each such instance by vote of a financial town

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meeting of the Town of Richmond in accordance with Section 7 of this Act. The trust shall be

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obligated to pay debt service on all such debt to the extent funds are available and to reimburse

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the town for any town funds expended to pay such debt service. Whenever the Town of

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Richmond shall be have been required to pay over any sums of money to the trust, the trust shall

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be precluded from acquiring any additional property until the trust shall have repaid the Town of

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Richmond in full for all sums paid to the trust hereunder and to reimburse the town for any town

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funds expended to pay such debt service.

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     g) dispose of all or any portion of its real property or interests therein held by it,

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whenever in the opinion of the trustees said lands or properties have become unsuitable or have

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ceased to be used for the purposes set forth in this Act. Such dispositions shall be made only by a

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vote of the trustees in which at least Three (3) members four (4) trustees vote in favor of such

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disposition, and further only after having been approved by a two thirds (2/3) vote of an annual or

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special financial town meeting of the Town of Richmond. Nothing in this subsection shall be

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construed to authorize the sale, lease, or conveyance of lands or improvements held by the trust as

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part of a charitable trust or acquired by gift or devise for public use, whether or not such gift or

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devise is subject to a condition subsequent or reverter.

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     h) Otherwise do all things necessary for the performance of its duties, the fulfillment of

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its obligations and the conduct of its business.

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     SECTION 6

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     Accounting Procedures

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     All funds collected shall be deposited in a funds to be set up as a revolving and restricted

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account by the treasurer of the Town of Richmond. All monies or other liquid assets received as

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voluntary contributions, grants or loans, funds appropriated to the trust by vote of a financial

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town meeting of the Town of Richmond, or proceeds from disposal of real property or interests

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shall be deposited into said account. All expenses lawfully incurred by the trust in carrying out

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the provisions of this act shall be evidenced by vouchers and shall be paid by the treasurer of the

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Town of Richmond only upon submission by warrants duly approved by the trust. The treasurer

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of the Town of Richmond shall prudently invest available assets of the funds in accordance with

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the Town's investment policies, and all income thereon shall accrue to the fund. Upon termination

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or dissolution of the trust which remain after payment or making provision for payment of all

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bonds, notes and other obligations of the trust shall vest in the Town of Richmond.

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     SECTION 7

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     Issuance of Bonds

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     The town of Richmond is hereby empowered, in addition to the authority previously

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granted, to issue bonds from time to time, upon the written request of the trust, under its corporate

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name and seal for the purpose of financing the activities of the trust and under this act.

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     a) Bonds may be issued or authorized only upon the approval of a majority of the voters

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present at an annual or special Financial Town Meeting. The bonds of each issue may be issued in

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a form acceptable to the town council, in annual installments of principal, the first installment not

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later than thirty (30) years after the date of the bonds. For each issue the amounts payable

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annually for principal and interest combined either (a) shall be as nearly equal from year to year

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as it practicable in the opinion of the officers authorized to issue the bonds, or (b) shall be

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arranged in accordance with a schedule providing for a more rapid amortization of principal, or

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(c) shall be arranged in annual installment of principal each of which does not exceed any prior

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installment by more than sixteen (16%) percent of the total principal amount of the issue.

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     b) The bonds shall be signed by the town Treasurer and by the President of the town

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council and shall be issued and sold in such amounts as authorized by the voters at an annual or

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special Financial Town Meeting. The manner of sale, denominations, maturities, interest rates and

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other terms and conditions and details or any bonds or notes issued under this Act, may be fixed

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by the proceedings of the town and town council or, to the extent provisions of these matters are

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not so made, they may be fixed by the officers authorized the sign the bonds or notes. The

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proceeds derived from the sale of of the bonds shall be delivered to the Treasurer to be deposited

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in the fund established by Section 6 of this Act, and such proceeds exclusive of premiums and

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accrued interest shall be expended (i) for the purpose of real property or interests therein by the

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trust, or (ii) in payment of the principal of or interest on temporary notes issued under subsection

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(c) or (iii) in repayment of advances under subsection (d). No purchaser of any bonds or notes

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under this act shall be in any way responsible for the proper application of the proceeds derived

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from the sale thereof. The proceeds of bonds or notes issued under this Act, any applicable

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federal or state assistance, and the other moneys referred to in subsection (c) shall be deemed

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appropriated for the purposes of this Act without further action than that required by this Act.

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     c) The Town Council may by resolution authorize the issue from time to time if interest

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bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the receipt of

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

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treasurer. Temporary notes issued hereunder shall be signed by the treasurer and president of the

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town council and shall be payable within one (1) year from their respective dates, but the

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principal of and interest on notes issued for a shorter period may be renewed or paid from time to

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time by the issue of other notes hereunder, provided the period from the date of an original note

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to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not

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exceed five (5) years.

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     d) Pending any authorization or issue of bonds hereunder or pending or in lieu of any

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

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

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town to the purposes specified in subsection (b), such advances to be repaid without interest from

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the proceeds of the bonds or notes subsequently issued or from proceeds of applicable federal or

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state assistance or from other available funds.

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     e) Any accrued interest received upon the sale of bonds or notes hereunder shall be

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applied to the first payment of the first interest due thereon. Any premiums arising from the sale

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of bonds or notes hereunder shall, in the discretion of the treasurer, by applied to the cost of

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

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to the payment of the principal of or interest on bonds and notes issued hereunder may also, in the

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discretion of the treasurer, be met from bond or note proceeds exclusive of premium and accrued

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interest or from other moneys available therefor.

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     f) All bonds and notes issued under this act and the debts evidenced thereby shall be

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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 excepted from the operation of section 45-12-2 of the general laws. No

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such obligation shall at any time be included in the debt of the town for the purpose of

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ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on bonds and notes issued hereunder to the

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extent that moneys therefor are not otherwise provided by the trust. If such sum is not

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appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in

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

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town shall be subject to ad valorem taxation by the town without limitation as to the rate or

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amount.

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     g) Any bonds or notes issued under the provisions of this act, if properly executed by

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officers of the town in office on the date of execution, shall be valid and binding according to

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their terms notwithstanding that before the delivery thereof and payment therefor any or all of

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such officers shall for any reason have ceased to hold office.

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     h) The town, acting by resolution of the town council is authorized to apply for, contract

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for any, expend any federal or state advances or other grants or assistance which may be available

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

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

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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 subsection (b).

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     i) Bonds and notes may be issued under this act without obtaining approval of any

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

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

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in part under this act. All action shall be taken which is necessary to meet constitutional

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requirements whether or not such action is otherwise required; but the validity of bonds and notes

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

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     j) Notwithstanding the foregoing provisions of this section, no bonds shall be issued in

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excess of amounts approved from time to time by vote of a majority of electors present and

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voting on the question at an annual or special financial town meeting. A vote not to approve an

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amount of bonds hereunder shall not preclude any later vote to approve the same or a different

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amount.

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     SECTION 8

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     Tax Status of Trust

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     The trust and all its revenues, income and real and personal property used by the trust for

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the furtherance of its public purpose shall be exempt from taxation and from betterment and

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special assessments, and the trust shall not be required to pay any tax, excise or assessment to the

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state or any of its political subdivision.

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     SECTION 9

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     Severablity Severability

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     The provisions of this act are severable, and if any provision thereof shall be held invalid

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in any circumstances such invalidity shall not affect any other provisions or circumstances. This

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act shall be construed in all respects so as to meet all constitutional requirements in carrying out

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the purposes and provisions of this act all steps shall be taken which are necessary to meet

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constitutitional constitutional requirements whether or not such steps are required by statute.

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     SECTION 2. This act shall take effect upon passage.

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LC02320

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