Chapter 430
2008 -- S 3089
Enacted 07/08/08
A N A C T
(I)
AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION,
RENOVATION, IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR, ADDITIONS, PAVING,
LANDSCAPING, FURNISHING AND EQUIPPING OF THE CHARIHO HIGH SCHOOL AND
IMPROVEMENTS TO THE SWITCH ROAD CAMPUS, INCLUDING, BUT NOT LIMITED TO, A
MAINTENANCE FACILITY, TRACK, PARKING AND UTILITY AND SECURITY UPGRADES BY THE
ISSUANCE OF NOT MORE THAN $17,847,000 BONDS AND/OR NOTES THEREFOR AND (II)
PROVIDING THAT THE PRINCIPAL OF, REDEMPTION PREMIUM AND INTEREST ON BONDS AND
NOTES ISSUED FOR THE PROJECT WILL BE BORNE BY THE MEMBER TOWNS IN EQUAL SHARES,
WITH EACH TOWN PAYING ONE-THIRD OF THE COSTS AND SUBJECT TO APPROVAL OF STATE
SCHOOL HOUSING AID
Introduced
By: Senator Dennis L. Algiere
Date
Introduced: June 10, 2008
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 seventeen
million, eight hundred forty-seven thousand dollars
($17,847,000) from time to time under its
corporate name and seal; provided, however, that bonds
and notes shall not be issued unless the
conditions of Section 4 hereof as to the level of state
school housing 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 district 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 (a) to finance the construction,
renovation, improvement, demolition, alteration,
repair, additions, paving, landscaping,
furnishing and equipping of the Chariho High School and
improvements to the Switch Road Campus,
including, but not limited to, a maintenance facility,
track, parking and utility and security upgrades
(the "Project"), (b) in payment of the principal of
and/or interest on temporary notes issued under
section three; (c) in repayment of advances made
pursuant to section four; (d) in payment of
costs of issuance associated with the issuance of bonds
or notes hereunder, and/or (e) 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 sections 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 district 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. 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 the 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.
Temporary notes issued hereunder shall be signed by the
district treasurer and by the chairman 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
funds shall be invested for the benefit of the
regional school district by the paying agent at
the discretion of the treasurer of the regional school
district in any investment permitted under
section five. The moneys in the fund and any
investments held as 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 sources 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 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.
SECTION 5.
Pending any authorization or issue of bonds hereunder 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 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 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 ("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 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 district treasurer, be applied to the
cost of preparing, issuing and marketing bonds
or 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 district
treasurer, 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 Projects, 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 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 inconstancy 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 assessment or other charges permitted by
law on account of 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.
Notwithstanding the provisions of Section 15 of Chapter 55 of the Public
Laws of 1958 as heretofore amended, including
amendments made by Chapter 490 of the Public
Laws of 2006, the principal of, redemption
premium and interest on the bonds and or notes
authorized by this act, shall be borne by the
member towns in equal shares, with each member
town paying one-third of the costs.
SECTION 14. The
question of the approval of this act shall be submitted to the electors
of the towns of Charlestown, Richmond and
Hopkinton at an 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 2008 session of
the general assembly, entitled 'AN ACT (I)
AUTHORIZING THE CHARIHO REGIONAL
SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION,
RENOVATION,
IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR,
ADDITIONS, PAVING,
LANDSCAPING, FURNISHING AND EQUIPPING OF THE
CHARIHO HIGH SCHOOL
AND IMPROVEMENTS TO THE SWITCH ROAD CAMPUS, INCLUDING,
BUT NOT
LIMITED TO, A MAINTENANCE FACILITY, TRACK,
PARKING AND UTILITY AND
SECURITY UPGRADES BY THE ISSUANCE OF NOT MORE
THAN $17,847,000 BONDS
AND/OR NOTES THEREFOR AND (II) PROVIDING THAT
THE PRINCIPAL OF,
REDEMPTION PREMIUM AND INTEREST ON BONDS AND
NOTES ISSUED FOR THE
PROJECT WILL BE BORNE BY THE MEMBER TOWNS IN
EQUAL SHARES, WITH
EACH TOWN PAYING ONE-THIRD OF THE COSTS AND
SUBJECT TO APPROVAL OF
STATE SCHOOL HOUSING AID’ be approved?" and
the warning for the election shall contain
the question to be submitted. 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 15.
Sections 14 and 15 shall take effect upon 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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LC03074
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