Chapter 218
2005 -- S 0872
Enacted 07/08/05
A N A C T
AUTHORIZING
THE CHARIHO REGIONAL SCHOOL DISTRICT TO ISSUE GENERAL OBLIGATION BONDS AND/OR
NOTES NOT TO EXCEED $99,824,000 TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT,
ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES
THROUGHOUT THE REGIONAL SCHOOL DISTRICT, SUCH PROJECT TO BE FINANCED IN TWO
PHASES, THE SECOND PHASE NOT TO BE FINANCED BEFORE JUNE 1, 2007 AND SUBJECT TO
THE CONDITIONS OF THIS ACT AS TO LEVELS OF STATE AID
Introduced
By: Senators Breene, and Algiere
Date
Introduced: March 02, 2005
It is enacted by the General Assembly as
follows:
SECTION 1. The
regional school district incorporated pursuant to Chapter 55 of the
Public Laws of 1958, as amended, known as the
Chariho Regional School District, is hereby
empowered, in addition to authority previously
granted, to issue general obligation bonds and
notes to an amount not exceeding ninety-nine
million eight hundred twenty-four thousand dollars
($99,824,000) from time to time under its
corporate name and seal; provided, however, that
$42,046,000 of such bonds shall not be issued
prior to June 1, 2007 and that bonds shall not be
issued unless the conditions of Section 4 hereof
as to levels of state aid are met. The bonds of
each issue may be issued in the form of serial
bonds or term bonds, zero coupon bonds, capital
appreciation bonds, or compound interest 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
five (5) years and the last installment not
later than thirty (30) years after the date of the bonds.
The amount of principal appreciation each year
on any bonds, after the date of original issuance,
shall not be considered to be principal
indebtedness for the purposes of any constitutional or
statutory debt limit or any other limitation.
The appreciation of principal after the date of original
issue shall be considered interest. Only the
original principal amount shall be counted in
determining the principal amount so issued and
any interest component shall be disregarded.
SECTION 2. The
bonds shall be signed by the treasurer and the chairperson of the
regional school district committee and shall be
issued and sold in such amounts as the regional
school district committee may authorize. 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 proceedings 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 derived from the sale of the bonds
shall be delivered to the treasurer of the regional
school district committee, and such proceeds,
exclusive of premiums and accrued interest, shall
be expended in two phases: (a) Phase I Project –
to finance the demolition and removal of the
1904 Ashaway School Building and the
construction of an addition to, and renovation and
equipping of, the remaining Ashaway School
Building, and the construction, renovation,
improvement, alteration, repair, furnishing and
equipping of the existing elementary schools in
Charlestown and Richmond and a new elementary
school in each of the Towns of Charlestown,
Richmond and Hopkinton, including land
acquisition and (b) Phase II Project – subject to the
conditions of Section 4 hereof, to finance the
construction, renovation, improvement, alteration,
repair, furnishing and equipping of additions to
the Chariho Regional High School, a facility for
the RYSE School, a maintenance facility, the
redesign and reconfiguring of the High School and
Middle School Campus, including the relocation
of the administration building, and life-safety
renovations to the Chariho Middle School, (c) in
payment of the principal of and/or interest on
temporary notes issued under section three, (d) in
repayment of advances made pursuant to
section four, (e) in payment of costs of
issuance associated with the issuance of bonds or notes
hereunder, and/or (f) to finance capitalized
interest. No purchaser of any bonds or notes under this
act shall be in any way responsible for the
proper application of the proceeds derived from the
sale thereof. The proceeds of bonds or notes
issued under this act, any applicable federal or state
assistance and the other moneys referred to in
section six and nine, shall be deemed appropriated
for the purpose of this act without further
action than that required by this act. This bond issue
authorized by this act may be consolidated for
the purpose of issuance and sale with any other
bond issue of the regional school district
heretofore or hereafter authorized, provided that,
notwithstanding any such consolidation, the
proceeds from the sale of the bonds authorized by
this act shall be expended for the purposes set
forth above. The treasurer and the chairperson of
the regional school district committee, on
behalf of the regional school district, are hereby
authorized to execute such instruments,
documents or other papers as either of them deem
necessary or desirable to carry out the intent
of this act and are also authorized to take all actions
and execute all documents or agreements
necessary to comply with federal tax and securities
laws, which documents or agreements may have a
term coextensive with the maturity of the
bonds authorized hereby, including Rule 15c2-12
of the Securities and Exchange Commission
and to execute and deliver a continuing
disclosure agreement or certificate in connection with the
bonds or notes.
SECTION 3. The
regional school district committee may by resolution authorize the
issue 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 this act provided;
however, that $42,046,000 of such notes shall
not be issued prior to June 1, 2007 and that notes
shall not be issued unless the conditions of
Section 4 hereof are met. The amount of original notes
issued in anticipation of bonds may not exceed
the amount of bonds which may be issued under
this act 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 treasurer of the regional
school district committee. Temporary notes
issued hereunder shall be signed by the treasurer and
the chairperson of the regional school district
committee and shall be payable within five (5)
years from their respective dates, 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
the period from the date of an original note to
the maturity of any note issued to renew or pay the
same debt or the interest thereon shall not
exceed five (5) 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 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 agent 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 treasurer
of the regional school district committee in any
investment permitted under section five. The
moneys in the fund and any investments held a 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 committee. The regional
school district committee may pay the principal
of and interest on notes in full from other than
the issuance of refunding notes prior to the
issuance of bonds pursuant to Section 1 hereof.
In such case, the regional school district
committee's authority to issue bonds or notes in
anticipation of bonds under this act shall continue
provided that 1) the regional school district
committee passes a resolution evidencing the regional
school district committee's intent to pay off
the notes without extinguishing the authority to issue
bonds or notes and 2) that the period from the
date of an original note to the maturity date of any
other note shall not exceed five (5) years.
SECTION 4. Bonds
and notes to finance the Phase I Project shall not be issued unless the
Chariho Regional School District has received a
letter from the Rhode Island Department of
Elementary and Secondary Education confirming
that the Board of Regents for Elementary and
Secondary Education has approved the facilities
to be financed for the school housing aid and that
the then-current reimbursement rate pursuant to Sections
16-7-35 through 16-7-47 of the General
Laws, as amended from time to time, or pursuant
to any other law hereafter enacted providing for
funds to municipalities or regional school
districts for school construction purposes, is not less
than fifty-six percent (56%). Bonds and notes in
principal amount of $42,046,000 to finance the
Phase II Project shall not be issued prior to
June 1, 2007 and, in any event, shall not be issued
unless the Chariho Regional School District has
received a letter from the Rhode Island
Department of Elementary and Secondary Education
confirming that the Board of Regents for
Elementary and Secondary Education has approved
the facilities to be financed for school
housing aid and that the then-current
reimbursement rate pursuant to Sections 16-7-35 through
16-7-47 of the General Laws, as amended from
time to time, or pursuant to any other law
hereafter enacted providing for funds to
municipalities or regional school districts for school
construction purposes, is not less than fifty
percent (50%).
SECTION 5. Pending
any authorization or issue of bonds hereunder or pending or in lieu
of any authorization or issue of notes
hereunder, the treasurer of the regional school district
committee, 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 treasury of the regional school district
committee to the purposes specified in section
two, 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 6. Any
proceeds of bonds or notes issued hereunder or of any applicable
federal or state assistance, pending their
expenditure, may be deposited or invested by the
treasurer of the regional school district
committee 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 ("Government
Obligations") or as may be provided in any other
applicable law of the state of Rhode Island or
resolution of the regional school district committee
or pursuant to an investment of policy of the
regional school district committee. Any bank
deposits or investments, other than investments
in Government Obligations, must either be
directly insured by the Federal Deposit Insurance
Corporation or be collateralized by Government
Obligations which have a value equal to or
greater than 102% of the deposit or investment
amount.
SECTION 7. Any
accrued interest received upon the sale of bonds or notes hereunder
shall be applied to the payment of the first
interest due thereon. Any premiums arising from the
sale of bonds or notes hereunder shall, in the
discretion of the treasurer of the regional school
district committee, be applied to the cost of
preparing, issuing and marketing bonds and notes
hereunder to the extent not otherwise provided,
to the payment of the cost of the Projects, 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 issued hereunder
may also, in the discretion of the treasurer of
the regional school district committee, be met from
bond or note proceeds exclusive of accrued
interest or from other moneys available therefor. If,
upon completion of any of the Projects there
shall be any balance of bond or note proceeds
remaining not required for the payment of the
costs of such Project, such funds shall be applied to
the payment of the principal of or interest on
bonds or notes issued hereunder. To the extent
permitted by applicable federal laws, any
earnings or net profit realized from the deposit or
investment of funds hereunder may, upon receipt,
be added to and dealt with as part of the
revenues of the regional school district from
the member towns. In exercising any discretion
under this section, the treasurer shall be
governed by any instructions adopted by resolution of the
regional school district committee.
SECTION 8. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory on the regional school
district committee in the same manner and to the same
extent as other 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 regional school district for the
purpose of ascertaining the borrowing capacity
of such town, nor shall said debt contracted by the
regional school district in any way apply to the
operation of section 45-12-2 of the general laws,
as amended, with respect to any member town. The
regional school district shall annually
appropriate a sum sufficient to pay the principal
and interest coming due within the year on bonds
and notes issued hereunder until such bonds and
notes and the interest thereon are paid in full.
SECTION 9. Any
bonds or notes issued under the provisions of this act, if properly
executed by officers of the regional school
district committee in office on the date of execution,
shall be valid and binding according to their
terms notwithstanding that before the delivery
thereof and payment therefor any or all of such
officers shall for any reason have ceased to hold
office.
SECTION 10. The
regional school district, acting by resolution of 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 two.
SECTION 11. 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 in 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 12. All or
any portion of the authority to issue bonds and notes under this act
may be extinguished by resolution of the
regional school district committee, without further
action by the general assembly, seven (7) years
after the effective date of this act.
SECTION 13. The
question of the approval of this act shall be submitted to the electors
of the towns of Charlestown, Richmond and
Hopkinton at a special election (other than a primary
election) to be held on a date to be set by the
regional school district committee. The question
shall be submitted in substantially the
following form: "Shall an act, passed at the 2005 session of
the general assembly, entitled 'AN ACT
AUTHORIZING THE CHARIHO REGIONAL
SCHOOL DISTRICT TO ISSUE GENERAL OBLIGATION BONDS
AND/OR NOTES NOT
TO EXCEED $99,824,000 TO FINANCE THE
CONSTRUCTION, RENOVATION,
IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND
EQUIPPING OF SCHOOLS
AND SCHOOL FACILITIES THROUGHOUT THE REGIONAL
SCHOOL DISTRICT, SUCH
PROJECT TO BE FINANCED IN TWO PHASES, THE SECOND
PHASE NOT TO BE
FINANCED BEFORE JUNE 1, 2007 AND SUBJECT TO THE
CONDITIONS OF THIS ACT
AS TO LEVEL OF STATE AID' be approved?" The
form of ballot shall also include the
following explanation: "Approval of this
act would authorize the regional school district
committee to finance schools and school
facilities throughout the Chariho Regional School
District in two phases. Phase I would finance
the demolition and removal of the 1904 Ashaway
School Building, and the construction of an addition
to, and renovation and equipping of, the
remaining Ashaway School Building, and the
construction, renovation, improvement, alteration,
repair, furnishing and equipping of the existing
elementary schools in Charlestown and
Richmond, and a new elementary school in each of
the towns of Charlestown, Richmond and
Hopkinton, including land acquisition. Phase I
would not be financed unless the School District
has received a letter from the Department of
Elementary and Secondary Education confirming
that the Board of Regents for Elementary and
Secondary Education has approved the facilities to
be financed for school housing aid and that the
then-current reimbursement rate is not less than
fifty-six percent (56%). Phase II would finance
the construction, renovation, improvement,
alteration, repair, furnishing and equipping of
additions to the Chariho Regional High School, a
facility for the RYSE School, a maintenance
facility, the redesign and reconfiguring of the High
School and Middle School Campus, including the
relocation of the administration building, and
life-safety renovations to the Chariho Middle
School. Phase II would not be financed before June
1, 2007 and would not be financed unless the
School District has received a letter from the
Department of Elementary and Secondary Education
confirming that the Board of Regents for
Elementary and Secondary Education has approved
the facilities to be financed for school
housing aid and that the then-current
reimbursement rate is not less than fifty percent (50%)." The
warning for the election shall contain the
question to be submitted together with the explanation
set forth above. From the time 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 the validity of the election shall not be
affected by this requirement. To the extent of
any inconsistency between this act and the home
rule charter of any member town, this act shall
prevail.
SECTION 14.
Sections 13 and 14 shall take effect upon the passage of this act. 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 the foregoing section.
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LC02532
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