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

     

     Introduced By: Representatives Casimiro, and Craven

     Date Introduced: May 19, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding two hundred twenty-two million

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four hundred sixty thousand dollars ($222,460,000) from time to time under its corporate name and

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seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds

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or term bonds or a combination thereof and shall be payable either by maturity of principal in the

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case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual

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installments of principal, the first installment to be not later than five (5) years and the last

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installment not later than thirty (30) years after the date of the bonds.

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     SECTION 2. This act shall constitute an enabling act of the general assembly that is

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required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under

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this act for school projects shall not be eligible for state housing aid reimbursement pursuant to §

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16-7-44 unless the school projects described herein shall have been approved by the Rhode Island

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department of education.

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     SECTION 3. 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 the resolution 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 chapter 7 of title 16 and chapter 38.1 of title 45 and,

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with respect to bonds or notes issued in connection with such financing agreements, if any, the

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town acting by said officers may elect to have the provisions of chapter 38.1 of title 45 apply to the

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issuance of bonds or notes issued hereunder to the extent the provisions of said chapter are

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inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode

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Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to

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bonds or notes issued in connection with such financing agreements, if any, the town acting by said

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officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds

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or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith.

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     SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the

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treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended for:

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(1)(i) In an amount not to exceed one hundred sixty-seven million four hundred sixty thousand

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dollars ($167,460,000) for school purposes, including, but not limited to, the construction of a new

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middle school and all costs incidental thereto, including, but not limited to, furniture and

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equipment, demolition and environmental remediation of existing structures, and site

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improvements; and (ii) In an amount not to exceed fifty-five million dollars ($55,000,000) for a

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new public safety complex and all costs incidental thereto, including, but not limited to, furniture

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and equipment, demolition and environmental remediation of existing structures, and site

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improvements (collectively, the "projects"); (2) In payment of the principal of or interest on

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temporary notes issued under Section 5 of this act; or (3) In repayment of advances under Section

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6 of this act. No purchaser of any bonds or notes under this act shall be in any way responsible for

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the proper application of the proceeds derived from the sale thereof. The projects shall be carried

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out and all contracts made therefor on behalf of the town by the town council or as may be otherwise

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directed by the town council. The proceeds of bonds or notes issued under this act, any applicable

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federal or state assistance and the other monies referred to in Sections 8 and 11 of this act 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, and any issue of notes, authorized by this act may be consolidated for the

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purposes of issuance and sale with any other bond and/or note issue of the town heretofore or

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hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from the

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sale of the bonds and notes authorized by this act shall be expended for the purposes set forth above.

 

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     SECTION 5. The town council may by resolution authorize the issue from time to time of

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interest bearing or discounted notes in anticipation of the authorization or issue 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 original

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

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under this act and the amount of original notes issued in anticipation of federal or state aid may not

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exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes

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issued hereunder shall be signed by the treasurer and by the president of the town council and shall

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be payable within five (5) years from their respective dates, but the principal of and interest on

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notes issued for a shorter period may be renewed or paid from time to time by the issue of other

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notes hereunder; provided the period from the date of an original note to the maturity of any note

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issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any

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temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity

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of the notes by the issuance of additional temporary notes; provided that, no such refunding shall

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

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

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if the issuance of any such refunding notes results in excess of the amount of bonds that may be

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issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund

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established with the paying agent which is the paying agent for the notes being refunded. Pending

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their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the

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town by the paying agent at the direction of the treasurer in any investment permitted under Section

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8. The monies in the fund and any investments held as a part of the fund shall be held in trust and

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shall be applied by the paying agent solely to the payment or prepayment of the principal and

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interest on the notes being refunded. Upon payment of all principal and interest on the notes being

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refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The

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town may pay the principal of and interest on the notes in full or in part from other than the issuance

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of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case the

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town's authority to issue bonds or notes in anticipation of bonds under this act shall continue;

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provided that: (1) The town council passes a resolution evidencing the town's intent to pay off the

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notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the

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date of the original note to the maturity of any other note shall not exceed five (5) years.

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     SECTION 6. 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 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 treasury

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of the town to the purposes specified in Section 5, such advances to be repaid without interest from

 

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

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state assistance or from other available funds.

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     SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal

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or state assistance, pending their expenditure may be deposited or invested by the treasurer, in

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

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Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of

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

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

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policy of the town.

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     SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall

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

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bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of

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funds hereunder shall, in the discretion of the treasurer, be applied: (1) To the cost of preparing,

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issuing and marketing bonds or notes hereunder to the extent not otherwise provided; (2) To the

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cost of capitalized interest on temporary notes issued under Section 5 of this act not otherwise

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provided; (3) To the payment of the cost of the projects for which such bonds were issued or to the

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cost of additional improvements coming within the description of the projects in Section 4 of this

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act for which such bonds were issued; and/or (4) To the payment of the principal of or interest on

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

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

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from bond or note proceeds exclusive of accrued interest or from other monies available therefor.

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Any balance of bond or note proceeds remaining after payment of the cost of the projects and said

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additional improvements and the cost of preparing, issuing and marketing bonds or notes hereunder

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

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

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deposit or investment of fund hereunder may, upon receipt, be added to and dealt with as part of

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

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

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treasurer is authorized to take any action deemed by him or her necessary: (1) To assure that interest

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on the bonds or notes issued hereunder remains excludable from gross income of the recipients

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thereof for federal income tax purposes, including, without limitation, paying to the federal

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government any rebate of earnings derived from the deposit or investment of the proceeds of such

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bonds or notes that may be required therefor; (2) To comply with the requirements of federal law,

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including without being limited to regulations and other requirements of the Securities and

 

LC003012 - Page 4 of 7

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Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the

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town or on the underwriters of such bonds and notes; and/or (3) To comply with the provisions of

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§§ 16-7-35 through 16-7-47; including making all necessary contracts and agreements to issue said

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bonds and/or notes through the Rhode Island health and educational building corporation.

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     SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall

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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 § 45-12-2. No such obligation shall at

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any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity.

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The town shall annually appropriate a sum sufficient to pay the principal and interest coming due

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within the year on bonds and notes issued hereunder to the extent that monies therefor are not

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otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax

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levy. In order to provide such sum in each year and notwithstanding any provision of law to the

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contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without

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limitation as to rate or amount.

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     SECTION 10. Any bonds or notes issued under the provisions of this act, if properly

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executed by officers of the town in office on the date of execution, shall be valid and binding

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

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

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     SECTION 11. The town, acting by resolution of its town council is authorized to apply for,

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

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

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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 interest

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

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repaid as project costs under Section 4.

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     SECTION 12. Bonds and notes may be issued under this act without obtaining the 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 interest

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

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

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whether or not such action is otherwise required by statute; 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. To the

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

 

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     SECTION 13. All or any portion of the authority to issue bonds and notes under this act

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may be extinguished by resolution of the town council, without further action by the general

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assembly seven (7) years after the effective date of this act.

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     SECTION 14. The question of the approval of this act shall be submitted to the electors of

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the town at an election on a date to be determined by the town council which occurs at least sixty

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(60) days after the passage of this act. The question shall be submitted in substantially the following

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form: "Shall an act, passed at the 2023 session of the General Assembly, entitled 'AN ACT

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AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN

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$222,460,000 BONDS AND NOTES OF WHICH (1) UP TO $167,460,000 IS FOR SCHOOL

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PURPOSES, INCLUDING BUT NOT LIMITED TO THE CONSTRUCTION OF A NEW

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MIDDLE SCHOOL AND (2) UP TO $55,000,000 IS FOR A NEW PUBLIC SAFETY

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COMPLEX' be approved?" and the warning for the election shall contain the question to be

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submitted. The town board of canvassers may combine any two (2) or more voting districts for the

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election and when so combined shall be treated as a voting district. If so combined, the town board

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of canvassers shall advertise the combination of districts in a newspaper of general circulation in

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the town. From the time the election is warned and until it is held, it shall be the duty of the town

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clerk to keep a copy of the act available at his or her office for public inspection, but the validity of

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the election shall not be affected by this requirement.

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     SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder

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

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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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     This act would authorize the town of North Kingstown to issue bonds in the amount of two

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hundred twenty-two million four hundred sixty thousand dollars ($222,460,000) for the

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construction of a new middle school and a public safety complex, subject to approval by the electors

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of the town.

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     This Section and Section 14 would take effect upon passage. The remainder of this act

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would take effect upon the approval of this act by a majority of those voting on the question at the

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election prescribed by Section 14.

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LC003012

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