2023 -- S 1075

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LC003093

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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

$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION

CENTER/EMERGENCY SHELTER

     

     Introduced By: Senators Valverde, and DiMario

     Date Introduced: May 25, 2023

     Referred To: Senate 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 twenty-five million dollars

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($25,000,000) from time to time under its corporate name and seal or a facsimile of such seal. The

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

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

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mandatory serial redemption in the case of term bonds, in annual installments of principal, the first

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

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after the date of the bonds. For each issue the amounts payable annually for principal and interest

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combined either shall be as nearly equal from year to year as is practicable in the opinion of the

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officers authorized to issue the bonds, or shall be arranged in accordance with a schedule providing

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for a more rapid amortization of principal.

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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 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. The proceeds derived from the sale of the bonds

 

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shall be delivered to the town treasurer, and such proceeds exclusive of premiums and accrued

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interest shall be expended for: (1) Land acquisition, construction and other improvements and/or

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related furniture, fixtures and equipment for an indoor recreation center which may also be used as

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an emergency shelter and other town functions, and all costs incidental thereto; (2) In payment of

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the principal of or interest on temporary notes issued under Section 3 of this act; or (3) In repayment

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of advances under Section 4 of this act. No purchaser of any bonds or notes under this act shall be

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in any way responsible for the proper application of the proceeds derived from the sale thereof. The

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projects shall be carried out and all contracts made therefor on behalf of the town by the town

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council or as may be otherwise directed by the town council. The proceeds of bonds or notes issued

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under this act, any applicable federal or state assistance and the other monies referred to in Section

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6 of this act shall be deemed appropriated for the purposes of this act without further action than

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that required by this act. The bond issue authorized by this act may be consolidated for the purposes

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of issuance and sale with any other bond issue of the town heretofore or hereafter authorized;

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provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds

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authorized by this act shall be expended for the purposes set forth above.

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     SECTION 3. 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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5. 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 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 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 2, 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 5. 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 6. 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 to the cost of preparing, issuing

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and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the

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cost of the projects or to the cost of additional improvements coming within the description of the

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projects in Section 2 of this act, to the payment of the principal of or interest on bonds or notes

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

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marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met from bond

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

 

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

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improvements 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. In

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exercising any discretion under this section, the treasurer shall be governed by any instructions

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adopted by resolution of the town council. The treasurer is authorized to take any action deemed

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by him or her necessary: (1) To assure that interest on the bonds or notes issued hereunder remains

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excludable from gross income of the recipients thereof for federal income tax purposes, including,

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without limitation, paying to the federal government any rebate of earnings derived from the deposit

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or investment of the proceeds of such bonds or notes that may be required therefor; (2) To comply

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with the requirements of federal law, including without being limited to regulations and other

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requirements of the Securities and Exchange Commission and the Municipal Securities

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Rulemaking Board, imposed directly on the town or on the underwriters of such bonds and notes;

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and/or (3) If applicable, to comply with the provisions of chapter 12.2 of title 46; including making

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all necessary contracts and agreements to issue bonds and/or notes through the Rhode Island

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infrastructure bank.

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     SECTION 7. 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 ยง 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 8. 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 9. 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 2.

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     SECTION 10. 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 11. 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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$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION CENTER/

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EMERGENCY SHELTER' be approved?" and the warning for the election shall contain the

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question to be submitted. The town board of canvassers may combine any two (2) or more voting

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

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the town board of canvassers shall advertise the combination of districts in a newspaper of general

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

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

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the validity of the election shall not be affected by this requirement.

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     SECTION 12. This Section and Section 11 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 11.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN

$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION

CENTER/EMERGENCY SHELTER

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

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twenty-five million dollars ($25,000,000) to finance an indoor recreation center/emergency shelter

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upon voter approval.

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     Section 11 would take effect upon passage. The remainder of this act would take effect

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upon the approval of this act by a majority of those voting on the question at the election prescribed

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in Section 11.

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