It is enacted by the General Assembly as follows:

SECTION 1. Notwithstanding any provisions to the contrary of chapter 55 of the public laws, 1958, as amended, entitled "an act authorizing the towns of Charlestown, Richmond and Hopkinton, to join a regional school district, incorporating said regional school district, and providing for the issuance of bonds, construction and operation of a regional school system for the joint use of the participating towns, within said regional school district established by this act", sections 9, 10. (2), 11, 13. (1), 15. (1), 15. (2), 15. (3), 15. (4), 15. (6), 15. (7), 15. (8), 15. (9), 15. (12) and 18. (1) of said act are hereby amended by striking out said sections and inserting in place thereof the following sections 9, 10. (2), 11, 13. (1), 15. (2), 15. (3), 15. (4), 15. (6), 15. (7), 15. (8), 15. (9), 15. (12) and 18. (1):

"Sec. 9. (1) (a) The proposed annual budget of the regional school district shall be submitted to the electors of the member towns qualified to vote on any proposition to impose a tax or for the expenditure of money at an annual referenda election to be held on the last Tuesday in March of each year beginning with the last Tuesday in March of the year 2001. To the extent the proposed annual budget contains revenues or expenditures for operational costs, capital costs and construction costs (as described in section 15. (8) of this act), said budget shall be comprised of up to three parts, the operational budget, the capital budget and the debt service budget, and the proposed annual budget shall be submitted to the electors as three referenda questions, as aforesaid, such that the proposed operational budget, capital budget and debt service budget components shall be reflected as separate referenda questions on the election warning notice and on the election ballot and shall be voted upon separately by the electors at the referenda election.

(b) Special regional school district referenda elections for a purpose other than considering the regional school district annual budget may be called by the regional school district committee or by a petition signed by one thousand (1,000) qualified voters of said district qualified to vote on the question of the imposition of a tax or for the expenditure of money in their respective towns provided such petition contains the purpose or purposes for which such special election is to be called and when such purpose and petition, duly certified by the town clerks of the member towns as to the qualification to vote of the persons signing the petition, has been delivered to the clerk of the regional school district committee.

(c) All voters qualified in their respective towns to vote at the referenda election next preceding the annual referenda election or a special district referenda election (and with respect to the first referenda election held pursuant to this act, all voters qualified in their respective towns to vote at the financial district meeting next preceding said referenda election) shall be eligible to attend and vote at said annual referenda election or special district referenda election and also all voters qualified to vote in their respective towns on any proposition for the imposition of a tax or for the expenditure of money shall be eligible to attend and vote at any annual referenda election or any special district referenda election, even though such voter was not qualified to vote in the next preceding referenda election (or, with respect to the first referenda election held pursuant to this act, the next preceding financial district meeting), provided that such voter shall be certified as meeting such qualifications by the chairperson of the board of canvassers and registration of the town of which such voter claims he/she has the said right to vote and for which such latter purpose the chairperson of the board of canvassers and registration or the majority of the board of canvassers and registration of the said member towns shall be present at all referenda elections of the Chariho regional school district to consider the application of such voters demanding the right to vote at any referenda election of said district.

(2) The annual regional school district referenda election shall determine the annual regional school district budget as to overall amount and, to the extent the budget is comprised and submitted to the electors in up to three parts, namely the operational budget, the capital budget and the debt service budget, as provided above, the annual school district referenda election shall determine the operational budget, capital budget and debt service budget components of the annual regional school district budget each as to overall amount.

(3) Referenda questions proposing to increase or decrease the proposed operational budget or the proposed capital budget components of the proposed annual regional school district budget to be submitted to the electors at the annual referenda election may be submitted to the electors of the member towns qualified to vote at said election upon a petition signed by two hundred (200) voters of said district qualified to vote on the question of the imposition of a tax or for the expenditure of money in their respective towns, provided that (i) such petition contains in specific detail the form of such referenda questions, (ii) each referenda question to increase or decrease the proposed operational budget component or the proposed capital budget component of the proposed annual budget, as the case may be, shall be set forth in the petition as a separate referenda question, and (iii) any referenda question to increase or decrease the proposed operational budget component or the proposed capital budget component, as the case may be, shall state that the effectiveness of any such increase or decrease if approved by the voters shall be conditioned upon voter approval at said election of the underlying proposed operational budget component or the proposed capital budget component of the proposed annual budget which said question proposes to increase or decrease, as the case may be, and provided further that such petition, duly certified by the town clerks of the member towns as to the qualification to vote of the persons signing the petition, has been delivered to the clerk of the regional school district committee no later than the date which is thirty-five (35) days prior to the referenda election at which such questions are to be submitted to the electors. Referenda questions with regard to increasing or decreasing the debt service budget component of any proposed annual budget shall not be permitted pursuant to this section 9. (3).

(4) A majority vote of all the voters qualified to vote and voting at the annual referenda election shall be required for the adoption of the annual regional school district budget or any one or more components thereof. A majority vote of all voters qualified to vote and voting at a special regional school district referenda election shall be required for the adoption of any question for which the special referenda was called for.

(5) In the event an operational budget is not approved at the annual referenda election for the ensuing school year, the regional school district committee shall prepare and approve a proposed revised annual operational budget for the regional school district for the ensuing year not later than the first Tuesday in April following such annual referenda election. Referenda questions proposing to increase or decrease the proposed revised annual operational budget may be submitted to the electors at the subsequent referenda election along with the proposed revised operational budget upon a petition which complies with the requirements set forth in section 9. (3) hereof. The revised proposed annual operational budget and any petition referenda questions proposing to increase or decrease said operational budget, as aforesaid, shall be submitted to the qualified electors of the member towns for consideration at a subsequent referenda election to be held the third Tuesday in May following the annual referenda election. The requirements as to voter qualification and the conduct of annual referenda elections shall apply to any referenda election held pursuant to this section 9. (5). If following the annual referenda election and a subsequent referenda election held pursuant to this section, no operational budget has been approved by the electors for the ensuing school year, the laws of the state of Rhode Island regarding school district obligations with respect to funding school expenditures in the event of an insufficient budget, section 16-2-21.4 of the general laws, as amended, shall apply.

(6) No action shall be taken for the purchase of land, construction of buildings and the extension of the scope of the functions of the regional school district except upon a majority vote of the voters of the regional school district as set forth in section 9.(1) hereof.

Nothing in the act shall prohibit a member town from issuing bonds for school construction purposes and leasing those facilities to the district. The financial responsibility for retiring those bonds will rest with the individual town issuing those bonds.

(7) All regional school district referenda elections shall be called and warned by written notices signed by the clerk and the chairperson of the regional school district committee such as that which is prescribed by law for the calling of a special financial town meeting and which notices shall notify the qualified electors of said district of the date, the time and place of such referenda election and the business proposed to be transacted thereat, which said notices shall be posted up by the sergeant or any constable of any member town in three (3) or more public places within said district, at least one (1) of which must be in each member town, and published in a newspaper of general circulation within the district and published within the state of Rhode Island, all at least seven (7) days before the date of such election. From the date any election is warned and until it is held, it shall be the duty of the town clerks of each of the member towns to keep a copy of the proposed budget and any petitions with respect thereto, in the case of annual district referenda elections, and a copy of the petition, in the case of special district referenda elections, at their offices for public inspection, but any failure of any said clerk to perform this duty shall not effect the validity of any election. On the date set for any regional school district referenda election, there shall be established in each town at least one polling place and each such polling place shall be open for voting from 9:00 A.M. until 9:00 P.M. The town clerk of each town shall forthwith after any such election notify the chairperson and the clerk of the regional school district committee of the results of said election.

(8) The regional school district budget may, by the inclusion therein of a provision to such effect by the regional school district committee, direct the regional school district committee to dispose of real or personal property on such terms or conditions as may be set forth in said budget."

"Sec. 10. (2) At the first meeting of the regional school district committee following a general election at which school district committee members are elected, the committee shall elect a chairperson and elect or appoint, as the case may be, such other officers as are herein or hereafter authorized. At the time of the election of a chairperson of the regional school district committee, said committee shall also appoint a clerk and a treasurer of said committee who shall also be a clerk and treasurer of said regional school district and the district meetings and the said clerk and treasurer may be the same individual and need not be a member or members of said committee."

"Sec. 11. The curriculum of the regional school district shall be determined by the regional school district committee as part of its development of the regional school district policy."

"Sec. 13. (1) The regional school district committee shall annually, but in no event later than July 15^th of each year, establish and/or review elementary school attendance districts within the regional school district for the purpose of determining which elementary schools within the regional school district the elementary school students within the district will attend during the ensuing school year. A parent or legal guardian of an elementary school student of the district shall be entitled to request of the regional school district committee that such student be permitted to attend a different elementary school from that to which the student is assigned in accordance with the attendance districts, by filing a written request with the regional school district committee no later than August 1^st preceding the commencement of the ensuing school year, which request shall be considered and determined by the regional school district committee in such committee's discretion. The regional school district committee shall advise the parent or legal guardian of its determination no later than one week prior to the commencement of said school year. Siblings will be allowed attendance in the same elementary school as long as another sibling is in attendance."

"Sec. 15. (1) It shall be the duty of the district superintendent, or chief administrative officer of the district, to present to the regional school district committee, at its first regular meeting in the month of November, a preliminary operating, capital and debt service budget containing his/her estimates of the amount of money needed to operate the regional school district and to satisfy capital costs and construction costs of the regional school district for the ensuing year. The form of said budget shall conform to the accounting system of the state department of education."

"Sec. 15. (2) The regional school district committee shall prepare and approve a budget which it believes will efficiently operate the regional school district for the ensuing year not later than the fifth (5^th) day of January in each year. To the extent any budget includes revenues or expenditures on account of operational costs, capital costs and construction costs (as described in section 15.(8) of this act), the budget so prepared and approved shall be comprised of up to three parts, the operational budget, the capital budget and the debt service budget."

"Sec. 15. (3) At least forty-five (45) days before the annual referenda election (to be held the last Tuesday in March) at which the budget is to be adopted, the regional school district committee shall hold a public hearing on the budget at which any citizen entitled to vote at the said election may be heard. Notice of the date and place of such hearing shall be given at least twelve (12) days in advance thereof by publication at least once in a newspaper of general circulation within the district and published in the state of Rhode Island. Not later than the date which is forty (40) days prior to the annual referenda election (to be held the last Tuesday in March) at which the budget is to be adopted in each year and subsequent to the hearing on the proposed budget, the district school committee shall adopt a final proposed budget. The regional school district finance committee, established in accordance with the provisions of section 12 hereof, may by and through its individual members or by appointed delegates, attend budget hearings and provide advice and assistance to the school committee on budget matters."

"Sec. 15. (4) The final proposed budget as adopted by the regional school district committee shall be submitted to the voters of the district at the annual referenda election to be held on the last Tuesday in March of each year for a vote or votes thereon, which said proposed budget may be lowered or increased by a petition to the proposed operational budget or the proposed capital budget components of said budget made and approved by the voters in accordance with Section 9 hereof."

"Sec. 15. (6) Operating costs of the regional school district for each fiscal year or portion thereof shall be apportioned among the member towns in proportion to each town's respective three-year average pupil enrollment in the said district school system. The three-year average pupil enrollment shall be determined for a member town for a fiscal year by calculating the average of the ratio of the pupil enrollment of such member town to the total pupil enrollment of the regional district school system on October 1 of each of the three immediately preceding calendar years. In the event that pupil enrollment in the regional school district has not been accomplished on October 1 of any of the preceding calendar years, the ratio used for that year to determine the three-year average for a member town shall be the ratio of the total number of students enrolled in grades kindergarten through 12, inclusive, residing in such member town and receiving education at such town's expense as of October 1 of the previous calendar year to the total number of such students in the entire regional school district on said date."

"Sec. 15. (7) On or before April 15 of each year (or within 10 days of referenda approval of any operational budget if such approval occurs after April 15^th), the treasurer of the regional school district shall determine the total cost of operating the school district for the next budget year, including therein operating costs, operating expenses, and all other anticipated expenses, incurred in the operation of the school district. This sum shall then be divided by the three-year average pupil enrollment determined in accordance with section 15.(6) hereof and the resulting figure shall then be determined as the annual pupil charge. The charge so determined shall not later than the fifteenth (15^th) day of April in each year (or later than the date which is 10 days from the referenda approval of any operational budget if such approval occurs after April 15^th) be certified by said district treasurer to the respective treasurers of each member town. Each member town shall then pay to the treasurer of the district a sum equal to such town's proportionate share of operating expenses for such fiscal year (determined in accordance with section 15.(6) hereof) multiplied by the annual pupil charge."

"Sec. 15. (8) Construction costs of the regional school district shall be all costs of retirement of principal or payment of interest of bonds or notes hereinbefore authorized or which may be by special act authorized for future construction within the regional school district, or such costs as may be financed by means other than the issue of bonds or notes for the purpose of construction or renovation of buildings, land acquisition, or extraordinary repairs to buildings; capital costs shall be costs for the purpose of construction or renovation of buildings, land acquisition or extraordinary repairs to buildings which are not financed by issuance of bonds or notes or other means; and all other costs and expenses of the district shall be operating costs. In each fiscal year subsequent to the passage of this act, construction costs shall be borne by each member town in the same proportion as the total assessed valuation of taxable real property in such town bears to the total assessed valuation of taxable real property in the regional school district. For the fiscal years commencing July 1, 2000 and July 1, 2001, the total assessed valuation of taxable real property for each member town and for the district shall be determined using the formula used by the state department of administration in determining equalized weighted assessed valuations of property of towns and cities. For the fiscal year commencing July 1, 2002 and for all fiscal years thereafter, the total assessed valuation of taxable real property for each member town and for the district shall be determined on the basis of the values assessed by a revaluation of the taxable real property in each of the member towns, which revaluation shall be conducted in the fiscal year commencing July 1, 2000 and thereafter as required by state law for towns and cities, by a property valuation firm selected by the member towns (by a joint committee established by the member towns for such purpose, consisting of nine (9) members, with three (3) members being appointed by the town council of each member town, plus the tax assessor of each town as non-voting ex officio members) and the cost of each such revaluation shall be borne by the member towns in the same proportion as the number of parcels of taxable real property in each member town which are valued in the respective revaluation bears to the number of parcels of taxable real property in the regional school district which are valued in such revaluation. Any member town, at such town's expense, shall be entitled to have an audit conducted as to a revaluation of taxable real property conducted pursuant to this section and/or to challenge the accuracy of any revaluation of taxable real property in accordance with the laws of the state. The district treasurer annually shall determine the share of each member town of construction costs by multiplying the member town's proportionate share of construction costs for such fiscal year (determined as hereinbefore provided in this section) by the total construction costs for such year. The district treasurer shall then certify to the treasurer of the member towns the shares of each town of construction costs determined as hereinbefore provided in this section) by the total construction costs for such year. The district treasurer shall then certify to the treasurer of the member towns the shares of each town of construction costs determined as hereinbefore provided at the same time and in the same manner as operating costs are certified to each town.

Capital costs of the regional school district shall be borne by and allocated and certified to the member towns in the same manner as for construction costs as provided in the foregoing paragraph."

"Sec. 15. (9) The sums payable annually to the regional school district by each member town as its share of the regional school district's operating costs for the fiscal year, determined pursuant to subsection (7) above, and its share of construction costs and capital costs for the fiscal year, determined pursuant to subsection (8) above, shall be paid in installments as follows: five percent (5%) in each of the months of July and August and nine percent (9%) in each of the remaining ten (10) months of the fiscal year. Each member town shall cause its treasurer to deposit each such installment in cash or other immediately available funds to the regional school district's account in a bank or financial institution designated by the regional school district treasurer which has a place of business in the state of Rhode Island on the third business day of the month between the hours of 9:00 A.M. and 2:00 P.M. In the event of late payment of any such installment, including payment on the due date later than 2:00 P.M., simple interest, shall accrue daily and be payable on such past due sum from the date of default to the date of payment of such sum at a per annum rate of one quarter of one percent (1/4%) above the average seven (7) day compounded yield of taxable money market funds as published weekly by IBC/Donoghue's Money Fund Report, such interest being intended to compensate the regional school district for loss of use of the funds that should have been paid to it rather than as a penalty. For the purpose of calculating such rate of interest, said average money market fund yield published by IBC/Donoghue's Money Fund Report on or during the six (6) days immediately preceding the date of default shall be applied, except that if such default continues until the date of the next weekly publication of such average money market fund yield by IBC/Donoghue's Money Fund Report the latter yield shall be applied commencing on such date, and the same procedure for calculating the rate of interest shall be followed thereafter on a weekly basis until the default ends. In the event that such IBC/Donoghue's Money Fund Report (including a successor to such report with a different name) shall cease to be published, the per annum rate of interest charged shall be one-half of one percent (1/2%) above the three (3) month U.S. treasury bill rate as published on the date of default or, if not published on that date, as published on the next preceding business day. However, if the default continues beyond seven (7) days, the three (3) month U.S. treasury bill rate in effect on the eight (8^th) day of default shall be applied commencing on such date in calculating the rate of interest, and the same procedure for calculating the interest rate shall be followed thereafter on a weekly basis until the default ends."

"Sec. 15. (12) The electors in each of said member towns qualified to vote upon a proposition to impose a tax or for the expenditure of money shall in their respective towns, in annual or special financial town meetings legally assembled, appropriate and raise sufficient monies for their respective towns to meet the requirement of the costs of construction and operation and capital costs of said regional school district as determined by the regional school district annual referenda election and proportioned to the said member towns as provided in subsections (7) and (8) of this section 15."

"Sec. 18. (1) No member town shall withdraw from the regional school district until bonded indebtedness incurred in accordance with the provisions of chapter 55 of the public laws, 1958, as amended, has been fully paid and discharged. Thereafter, any member town of the regional school district may petition the regional school district committee to withdraw from said district, provided that such petition for withdrawal shall have been approved by the appropriate method of said member town seeking to withdraw and shall been approved by a majority of the electors of the said member town qualified to vote upon a proposition for the imposition of a tax or for the expenditure of money, present and voting in the appropriate manner prescribed by said member town within a period of one hundred twenty (120) days next preceding the date of the regional school district committee meeting at which the petition is to be submitted. Such petition shall not be approved except upon payment to the treasurer of the regional school district by the treasurer of such member town of any costs which have been apportioned and certified in accordance with the provisions heretofore set forth to said town for the construction, operation and capital costs of the regional school district during the year in which such withdrawal is to take place, and such town shall remain liable to the regional school district for its share of the indebtedness for the district outstanding, if any, at the time of such withdrawal, and for interest thereon, to the same extent and in the same manner as if the town had not withdrawn from the regional school district, except as such liability shall be reduced by any amount which said town has paid over at the time of withdrawal and which has been applied to the payment of such indebtedness and interest. Any money received by the regional school district from a withdrawing member town for the payment of indebtedness or interest thereon shall be used only for such purpose and until so used shall be deposited in trust in the name of the regional school district with a Rhode Island trust company or financial institution authorized to exercise trust powers having a combined capital and surplus of not less than five million dollars ($5,000,000)."

SECTION 2. Any provision of this act to the contrary notwithstanding, Section 9 and sections 15. (1), 15. (2), 15. (3), 15. (4) and 15. (12) of chapter 55 of the public laws, 1958, as amended, as effective prior to the approval of this act by the voters of the member towns of the regional school district in accordance with section 15 of this act, shall remain effective through June 30, 2000. The amendments pursuant to this act to section 9 and sections 15. (1), 15. (2), 15. (3), 15. (4) and 15. (12) of chapter 55 of the public laws, 1958, as amended, shall, upon the approval of the voters of the regional school district in accordance with section 15 of this act, be effective on and after July 1, 2000.

SECTION 3. The Chariho regional school district is hereby empowered, in addition to authority previously granted, to issue from time to time under its corporate name and seal (a) bonds to an amount not exceeding twelve million dollars ($12,000,000) for the acquisition, construction, renovation and equipping of two or three new elementary schools (kindergarten through grade 5), (b) bonds to an amount not exceeding seventeen million dollars ($17,000,000) for land acquisition, additions to, renovation and equipping of the existing Chariho high school (grades 9 through 12), and (c) bonds to an amount not exceeding eight million five hundred thousand dollars ($8,500,000) for the renovation and equipping of the existing Ashaway, Charlestown, Hope Valley and Richmond elementary schools (kindergarten through grade 5). The bonds of each issue may be issued in the form of serial bonds or term bonds or a combination thereof and shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual installments of principal, the first installment to be not later than three (3) years and the last installment not later than thirty (30) years after the date of the bonds. For each issue the amounts payable annually for principal and interest combined either shall be as nearly equal from year to year as is practicable in the opinion of the officers authorized to issue the bonds, or shall be arranged in accordance with a schedule providing for a more rapid amortization of principal.

SECTION 4. The bonds shall be signed by the treasurer and the chairperson of the regional school district committee, respectively, and shall be issued and sold in such amounts as the regional school district committee may determine from time to time. The manner of sale, denominations, maturities, interest rates and other terms, conditions and details of any bonds or notes issued under this act may be fixed by the resolution of the regional school district committee authorizing the issue or by separate resolution of the regional school district committee or, to the extent provisions for these matters are not so made, they may be fixed by the officers authorized to sign the bonds or notes.

The proceeds arising from the sale of said bonds shall be delivered to the treasurer of the regional school district, and such proceeds, except as herein provided in respect to the premiums arising from the sale of the bonds and exclusive of accrued interest, shall be expended for the purpose of (a)(i) with respect to bonds to an amount not exceeding twelve million dollars ($12,000,000), for financing the acquisition, construction, renovation and equipping of two or three new elementary schools (kindergarten through grade 5), (ii) with respect to bonds to an amount not exceeding seventeen million dollars ($17,000,000), for financing land acquisition, additions to, renovation and equipping of the existing Chariho high school (grades 9 through 12), and (iii) with respect to bonds to an amount not exceeding eight million five hundred thousand dollars ($8,500,000), for financing the renovation and equipping of the existing Ashaway, Charlestown, Hope Valley and Richmond elementary schools (kindergarten through grade 5), or (b) in payment of the principal of or interest on temporary notes issued under the provisions of section 5 hereof, or (c) in repayment of advances under section 6 hereof. No purchaser of any bonds or notes issued under this act, however, shall be in any way responsible for the proper application of the proceeds derived from the sale thereof. The project shall be carried on and all contracts made therefor on behalf of the regional school district by the regional school district committee building committee, or as may be otherwise directed by the regional school district committee. The proceeds of bonds or notes issued under this act, any applicable federal or state assistance and the other moneys referred to in section 8 shall be deemed appropriated for the purposes of this act without further action than that required by this act. In addition to such funds, there may be expended for the purposes of this act such other sums as may be appropriated therefor.

SECTION 5. The regional school district committee may by resolution authorize the issue and sale from time to time of interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the receipt of federal or state aid for the purposes of section 4 of this act. The amount of original notes issued in anticipation of bonds shall not exceed the aggregate amount of bonds which the regional school district is authorized to issue under section 3 hereof and the amount of original notes issued in anticipation of federal or state aid may not exceed the amount of available federal or state aid as estimated by the district treasurer. Such notes shall bear the signature of the treasurer and chairperson of the regional school district committee, and shall be payable within three (3) years from their date of issue, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes hereunder, provided that the period from the date of an original note to the maturity of any note issued to renew or repay the same debt or interest thereon shall not exceed three (3) years.

Any temporary notes in anticipation of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance of additional temporary notes, provided that no such refunding shall result in any amount of such temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount of the bonds which may be issued under this act, and provided further that if the issuance of any such refunding notes results in any amount of such temporary notes outstanding at any one time in excess of the amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund established with the bank which is paying for the notes being refunded. Pending their use to pay the notes being refunded, moneys in the fund shall be invested for the benefit of the regional school district by the paying agent at the direction of the district treasurer in any investment permitted under section 7 of this act. The moneys in the fund and any investments held as part of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or prepayment of the principal of and interest on the notes being refunded. Upon payment of all principal of and interest on the notes, any excess moneys in the fund shall be distributed to the regional school district.

SECTION 6. Pending any authorization or issue of bonds under this act or pending or in lieu of any authorization or issue of notes hereunder, the district treasurer, with the approval of the regional school district committee, may, to the extent that bonds or notes may be issued hereunder, apply funds in the district treasury to the purposes specified in section 4 of this act, such advances to be repaid without interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or state assistance or from other available funds.

SECTION 7. Any proceeds of bonds or notes issued under this act or of any applicable federal or state assistance, pending their expenditure, may be deposited or invested by the district treasurer in demand deposits, time deposits or savings deposits in banks which are members of the federal deposit insurance corporation or in obligations issued or guaranteed by the United States of America or by any agency or instrumentality thereof or as may be provided in any other applicable law of the State of Rhode Island.

SECTION 8. Any accrued interest received upon the sale of bonds or notes issued under this act shall be applied to the payment of the first interest due thereon. Any premiums arising from the sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of funds hereunder shall, in the discretion of the district treasurer, be applied to the cost of preparing, issuing and marketing the bonds or notes hereunder to the extent not otherwise provided, to the payment of the cost of the project, to the payment of the principal of or interest on bonds or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and marketing bonds or notes hereunder may also, in the discretion of the district treasurer, be met from bond or note proceeds exclusive of premium and accrued interest or from other moneys available therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project and the cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes issued hereunder. In exercising any discretion under this section, the district treasurer shall be governed by any instructions adopted by resolution of the regional school district committee.

SECTION 9. All bonds and all temporary notes issued under the provisions of this act and the debts evidenced thereby shall be obligatory on the regional school district in the same manner and to the same extent as such debts are obligatory under the laws of this state on incorporated towns of this state and such debt evidenced by said bonds or notes shall not be construed at any time to form a part of the debt of any individual town which is a member of the district for the purpose of ascertaining the borrowing capacity of such town, nor shall said debt contracted by the regional school district under such bonds or notes in any way apply to the operation of section 45-12-2 of the general laws, as amended, in respect to any member town. The regional school district shall annually appropriate and apportion between the member towns a sum sufficient to pay the principal of and interest on any bonds maturing in any such year, to the extent that moneys therefor are not otherwise provided, and each member town shall annually appropriate a sum sufficient to pay its share of the apportionment, until the bonds and the interest thereon are paid in full. If such sum is not appropriated by a member town, it shall, nevertheless, be added to such town's annual tax levy. In order to provide such sum in each year and notwithstanding any provision of law to the contrary, all taxable property in each member town shall be subject to ad valorem taxation by the town without limitation as to rate or amount to pay the town's share of such apportionment.

SECTION 10. Any bonds or notes issued under the provisions of this act, and coupons on any bonds, if properly executed by officers of the regional school district in office on the date of execution shall be valid and binding according to their terms notwithstanding that before the delivery thereof and payment thereof any or all of such officers shall for any reason have ceased to hold office.

SECTION 11. The regional school district, acting by its regional school district committee, is authorized to apply for, contract for and expend any federal or state advances or other grants or assistance which may be available for the purposes of this act, and any such expenditures may be in addition to other moneys provided in this act. To the extent of any inconsistency between any law of this state and any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest where applicable, whether contracted for prior to or after the effective date of this act, may be repaid as project costs under section 4.

SECTION 12. Bonds and notes may be issued under this act without obtaining the approval of any governmental agency or the taking of any proceedings or the happening of any conditions except as specifically required by this act for such issue. In carrying out any project financed in whole or in part under this act, including where applicable the condemnation of any land or interest in land, and the levy and collection of assessments or other charges permitted by law on account of any such project, all action shall be taken which is necessary to meet constitutional requirements whether or not such action is otherwise required by statute; but the validity of bonds and notes issued hereunder shall in no way depend upon the validity or occurrence of such action.

SECTION 13. Upon the acceptance and approval of this act, the town councils of the member towns of the regional school district are hereby vested with the power and authority to enter into agreements on behalf of their respective towns and with each other, jointly and severally, providing for ways and means of obtaining sites for said two or three new elementary schools and otherwise generally putting into effective operation the objects and purposes of this act all in order that the said regional elementary schools shall be finally constructed and the existing Chariho high school and the existing Ashaway, Charlestown, Hope Valley and Richmond elementary schools shall be renovated and put into use for said towns. After the two or three regional elementary schools are finally constructed and the existing Chariho high school and the existing Ashaway, Charlestown, Hope Valley and Richmond elementary schools are renovated and put into use, the regional elementary schools shall be used for kindergarten through grade 5, the regional middle school shall be used for grades 6 through 8 and the Chariho regional high school shall be used for grades 9 through 12 for a minimum of ten (10) years.

SECTION 14. Section 8 of chapter 55 of the public laws, 1958, as amended, entitled "an act authorizing the towns of Charlestown, Richmond and Hopkinton, to join a regional school district, incorporating said regional school district, and providing for the issuance of bonds, construction and operation of a regional school system for the joint use of the participating towns, within said regional school district established by this act" is hereby repealed wherever inconsistent with this act.

APPROVAL QUESTION

SECTION 15. The question of the approval of this act shall be submitted to the electors of each of the towns of Charlestown, Richmond and Hopkinton qualified to vote on any proposition to impose a tax or for the expenditure of money at a special election to be held at a date not later than one hundred twenty (120) days after the adoption of this act, said date to be set by the joint resolution of the town councils of the member towns of the regional school district. For the purpose of holding the special election on said question there shall be issued in each town a warning such as that which is prescribed by law for the calling of a special financial town meeting, which shall contain the question to be submitted and shall state the day, the place, and the time for casting ballots upon the said question. On the date set for the special election by the regional school district committee, there shall be established in each town at least one polling place and each such polling place shall be open for voting from 9:00 A.M. until 9:00 P.M. The town clerk of each town shall forthwith after such special election in the respective town notify the secretary of state of the results of said special election. The question shall be submitted in substantially the following form:

"Shall an act passed at the 2000 session of the general assembly entitled 'an act in amendment of and in addition to chapter 55 of the public laws, 1958, as amended, entitled "an act authorizing the towns of Charlestown, Richmond and Hopkinton, to join a regional school district, incorporating said regional school district, and providing for the issuance of bonds, construction and operation of a regional school system for the joint use of the participating towns, within said regional school district established by this act" and authorizing the Chariho regional school district to issue (a) not more than $12,000,000 bonds and notes for land acquisition, construction, renovation and equipping of two or three new elementary schools (kindergarten through grade 5), (b) not more than $17,000,000 bonds and notes for land acquisition, additions to, renovation and equipping of the existing Chariho high school (grades 9 through 12), and (c) not more than $8,500,000 bonds and notes for the renovation and equipping of the existing Ashaway, Charlestown, Hope Valley and Richmond elementary schools (kindergarten through grade 5)' be approved?"

From the date the election is warned and until it is held, it shall be the duty of the town clerks of the respective towns of Charlestown, Richmond and Hopkinton to keep a copy of the act available at their offices for public inspection, but any failure of any said clerk to perform this duty shall not effect the validity of the election.

SECTION 16. This section and section 15 of this act shall take effect upon passage of this act; and the remainder of this act shall take effect upon the approval of this act by a majority in each town of those voting on the question at the election prescribed by section 15 hereof.