2023 -- H 6429 | |
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LC003012 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2023 | |
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A N A C T | |
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN | |
$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL | |
PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW | |
MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY | |
COMPLEX | |
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Introduced By: Representatives Casimiro, and Craven | |
Date Introduced: May 19, 2023 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds to an amount not exceeding two hundred twenty-two million |
3 | four hundred sixty thousand dollars ($222,460,000) from time to time under its corporate name and |
4 | seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds |
5 | or term bonds or a combination thereof and shall be payable either by maturity of principal in the |
6 | case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual |
7 | installments of principal, the first installment to be not later than five (5) years and the last |
8 | installment not later than thirty (30) years after the date of the bonds. |
9 | SECTION 2. This act shall constitute an enabling act of the general assembly that is |
10 | required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under |
11 | this act for school projects shall not be eligible for state housing aid reimbursement pursuant to § |
12 | 16-7-44 unless the school projects described herein shall have been approved by the Rhode Island |
13 | department of education. |
14 | SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town |
15 | treasurer and the president of the town council and shall be issued and sold in such amounts as the |
16 | town council may authorize by resolution. The manner of sale, denominations, maturities, interest |
17 | rates and other terms, conditions and details of any bonds or notes issued under this act may be |
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1 | fixed by the resolution of the town council authorizing the issue or by separate resolution of the |
2 | town council or, to the extent provisions for these matters are not so made, they may be fixed by |
3 | the officers authorized to sign the bonds or notes. Notwithstanding anything contained in this act |
4 | to the contrary, the town may enter into financing agreements with the Rhode Island health and |
5 | educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, |
6 | with respect to bonds or notes issued in connection with such financing agreements, if any, the |
7 | town acting by said officers may elect to have the provisions of chapter 38.1 of title 45 apply to the |
8 | issuance of bonds or notes issued hereunder to the extent the provisions of said chapter are |
9 | inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode |
10 | Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to |
11 | bonds or notes issued in connection with such financing agreements, if any, the town acting by said |
12 | officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds |
13 | or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith. |
14 | SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the |
15 | treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended for: |
16 | (1)(i) In an amount not to exceed one hundred sixty-seven million four hundred sixty thousand |
17 | dollars ($167,460,000) for school purposes, including, but not limited to, the construction of a new |
18 | middle school and all costs incidental thereto, including, but not limited to, furniture and |
19 | equipment, demolition and environmental remediation of existing structures, and site |
20 | improvements; and (ii) In an amount not to exceed fifty-five million dollars ($55,000,000) for a |
21 | new public safety complex and all costs incidental thereto, including, but not limited to, furniture |
22 | and equipment, demolition and environmental remediation of existing structures, and site |
23 | improvements (collectively, the "projects"); (2) In payment of the principal of or interest on |
24 | temporary notes issued under Section 5 of this act; or (3) In repayment of advances under Section |
25 | 6 of this act. No purchaser of any bonds or notes under this act shall be in any way responsible for |
26 | the proper application of the proceeds derived from the sale thereof. The projects shall be carried |
27 | out and all contracts made therefor on behalf of the town by the town council or as may be otherwise |
28 | directed by the town council. The proceeds of bonds or notes issued under this act, any applicable |
29 | federal or state assistance and the other monies referred to in Sections 8 and 11 of this act shall be |
30 | deemed appropriated for the purposes of this act without further action than that required by this |
31 | act. The bond issue, and any issue of notes, authorized by this act may be consolidated for the |
32 | purposes of issuance and sale with any other bond and/or note issue of the town heretofore or |
33 | hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from the |
34 | sale of the bonds and notes authorized by this act shall be expended for the purposes set forth above. |
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1 | SECTION 5. The town council may by resolution authorize the issue from time to time of |
2 | interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in |
3 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
4 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
5 | under this act and the amount of original notes issued in anticipation of federal or state aid may not |
6 | exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes |
7 | issued hereunder shall be signed by the treasurer and by the president of the town council and shall |
8 | be payable within five (5) years from their respective dates, but the principal of and interest on |
9 | notes issued for a shorter period may be renewed or paid from time to time by the issue of other |
10 | notes hereunder; provided the period from the date of an original note to the maturity of any note |
11 | issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any |
12 | temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity |
13 | of the notes by the issuance of additional temporary notes; provided that, no such refunding shall |
14 | result in any amount of temporary notes outstanding at any one time in excess of two hundred |
15 | percent (200%) of the amount of bonds that may be issued under this act; and provided further that, |
16 | if the issuance of any such refunding notes results in excess of the amount of bonds that may be |
17 | issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund |
18 | established with the paying agent which is the paying agent for the notes being refunded. Pending |
19 | their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the |
20 | town by the paying agent at the direction of the treasurer in any investment permitted under Section |
21 | 8. The monies in the fund and any investments held as a part of the fund shall be held in trust and |
22 | shall be applied by the paying agent solely to the payment or prepayment of the principal and |
23 | interest on the notes being refunded. Upon payment of all principal and interest on the notes being |
24 | refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The |
25 | town may pay the principal of and interest on the notes in full or in part from other than the issuance |
26 | of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case the |
27 | town's authority to issue bonds or notes in anticipation of bonds under this act shall continue; |
28 | provided that: (1) The town council passes a resolution evidencing the town's intent to pay off the |
29 | notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the |
30 | date of the original note to the maturity of any other note shall not exceed five (5) years. |
31 | SECTION 6. Pending any authorization or issue of bonds hereunder or pending or in lieu |
32 | of any authorization or issue of notes hereunder, the treasurer, with the approval of the town |
33 | council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury |
34 | of the town to the purposes specified in Section 5, such advances to be repaid without interest from |
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1 | the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or |
2 | state assistance or from other available funds. |
3 | SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
4 | or state assistance, pending their expenditure may be deposited or invested by the treasurer, in |
5 | demand deposits, time deposits or savings deposits in banks which are members of the Federal |
6 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
7 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
8 | law of the State of Rhode Island or resolution of the town council or pursuant to an investment |
9 | policy of the town. |
10 | SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall |
11 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
12 | bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of |
13 | funds hereunder shall, in the discretion of the treasurer, be applied: (1) To the cost of preparing, |
14 | issuing and marketing bonds or notes hereunder to the extent not otherwise provided; (2) To the |
15 | cost of capitalized interest on temporary notes issued under Section 5 of this act not otherwise |
16 | provided; (3) To the payment of the cost of the projects for which such bonds were issued or to the |
17 | cost of additional improvements coming within the description of the projects in Section 4 of this |
18 | act for which such bonds were issued; and/or (4) To the payment of the principal of or interest on |
19 | bonds or notes issued hereunder; or to any one or more of the foregoing. The cost of preparing, |
20 | issuing and marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met |
21 | from bond or note proceeds exclusive of accrued interest or from other monies available therefor. |
22 | Any balance of bond or note proceeds remaining after payment of the cost of the projects and said |
23 | additional improvements and the cost of preparing, issuing and marketing bonds or notes hereunder |
24 | shall be applied to the payment of the principal of or interest on bonds or notes issued hereunder. |
25 | To the extent permitted by applicable federal laws, any earnings or net profit realized from the |
26 | deposit or investment of fund hereunder may, upon receipt, be added to and dealt with as part of |
27 | the revenues of the town from property taxes. In exercising any discretion under this section, the |
28 | treasurer shall be governed by any instructions adopted by resolution of the town council. The |
29 | treasurer is authorized to take any action deemed by him or her necessary: (1) To assure that interest |
30 | on the bonds or notes issued hereunder remains excludable from gross income of the recipients |
31 | thereof for federal income tax purposes, including, without limitation, paying to the federal |
32 | government any rebate of earnings derived from the deposit or investment of the proceeds of such |
33 | bonds or notes that may be required therefor; (2) To comply with the requirements of federal law, |
34 | including without being limited to regulations and other requirements of the Securities and |
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1 | Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the |
2 | town or on the underwriters of such bonds and notes; and/or (3) To comply with the provisions of |
3 | §§ 16-7-35 through 16-7-47; including making all necessary contracts and agreements to issue said |
4 | bonds and/or notes through the Rhode Island health and educational building corporation. |
5 | SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall |
6 | be obligatory on the town in the same manner and to the same extent as other debts lawfully |
7 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
8 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
9 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
10 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
11 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
12 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
13 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
14 | limitation as to rate or amount. |
15 | SECTION 10. Any bonds or notes issued under the provisions of this act, if properly |
16 | executed by officers of the town in office on the date of execution, shall be valid and binding |
17 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
18 | or all of such officers shall for any reason have ceased to hold office. |
19 | SECTION 11. The town, acting by resolution of its town council is authorized to apply for, |
20 | contract for and expend any federal or state advances or other grants or assistance which may be |
21 | available for the purposes of this act, and any such expenditures may be in addition to other monies |
22 | provided in this act. To the extent of any inconsistency between any law of this state and any |
23 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest |
24 | where applicable, whether contracted for prior to or after the effective date of this act, may be |
25 | repaid as project costs under Section 4. |
26 | SECTION 12. Bonds and notes may be issued under this act without obtaining the approval |
27 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
28 | except as specifically required by this act for such issue. In carrying out any project financed in |
29 | whole or in part under this act, including where applicable the condemnation of any land or interest |
30 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
31 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
32 | whether or not such action is otherwise required by statute; but the validity of bonds and notes |
33 | issued hereunder shall in no way depend upon the validity or occurrence of such action. To the |
34 | extent of any inconsistency between this act and the town charter, this act shall prevail. |
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1 | SECTION 13. All or any portion of the authority to issue bonds and notes under this act |
2 | may be extinguished by resolution of the town council, without further action by the general |
3 | assembly seven (7) years after the effective date of this act. |
4 | SECTION 14. The question of the approval of this act shall be submitted to the electors of |
5 | the town at an election on a date to be determined by the town council which occurs at least sixty |
6 | (60) days after the passage of this act. The question shall be submitted in substantially the following |
7 | form: "Shall an act, passed at the 2023 session of the General Assembly, entitled 'AN ACT |
8 | AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN |
9 | $222,460,000 BONDS AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL |
10 | PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW |
11 | MIDDLE SCHOOL AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY |
12 | COMPLEX' be approved?" and the warning for the election shall contain the question to be |
13 | submitted. The town board of canvassers may combine any two (2) or more voting districts for the |
14 | election and when so combined shall be treated as a voting district. If so combined, the town board |
15 | of canvassers shall advertise the combination of districts in a newspaper of general circulation in |
16 | the town. From the time the election is warned and until it is held, it shall be the duty of the town |
17 | clerk to keep a copy of the act available at his or her office for public inspection, but the validity of |
18 | the election shall not be affected by this requirement. |
19 | SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder |
20 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
21 | at the election prescribed by Section 14. |
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LC003012 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN | |
$222,460,000 OF BOND AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL | |
PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW | |
MIDDLE SCHOOL, AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY | |
COMPLEX | |
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1 | This act would authorize the town of North Kingstown to issue bonds in the amount of two |
2 | hundred twenty-two million four hundred sixty thousand dollars ($222,460,000) for the |
3 | construction of a new middle school and a public safety complex, subject to approval by the electors |
4 | of the town. |
5 | This Section and Section 14 would take effect upon passage. The remainder of this act |
6 | would take effect upon the approval of this act by a majority of those voting on the question at the |
7 | election prescribed by Section 14. |
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LC003012 | |
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