Chapter
240
2005 -- H 6209
Enacted 07/09/05
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:
Representatives Scott, and McHugh
Date Introduced: March 10,
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.
=======
LC02785
=======