2024 -- S 2550 | |
======== | |
LC005499 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE | |
CONSTRUCTION, FURNISHING AND EQUIPPING OF THREE ELEMENTARY SCHOOLS | |
(ONE IN EACH OF THE TOWNS OF CHARLESTOWN, RICHMOND AND HOPKINTON) | |
AND IMPROVEMENTS AT THE SWITCH ROAD CAMPUS INCLUDING, BUT NOT | |
LIMITED TO, COSTS OF DEMOLITION, DESIGN, HEALTH AND SAFETY PROJECTS, | |
PLAYGROUNDS, LANDSCAPING, PAVING AND ALL EXPENSES INCIDENTAL | |
THERETO BY THE ISSUANCE OF NOT MORE THAN $150,000,000 BONDS AND/OR | |
NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A | |
REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 61% AT THE | |
TIME OF ISSUANCE, WHICH RATE OR RATIO MAY INCREASE TO MORE THAN 76% | |
AT PROJECT COMPLETION | |
| |
Introduced By: Senator Victoria Gu | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The regional school district incorporated pursuant to Chapter 55 of the Public |
2 | Laws of 1958, as amended, known as the Chariho Regional School District, is hereby empowered, |
3 | in addition to authority previously granted, to issue general obligation bonds to an amount not |
4 | exceeding one hundred fifty million dollars ($150,000,000) from time to time under its corporate |
5 | name and seal; provided, however, that bonds and notes shall not be issued unless the conditions |
6 | of Section 4 hereof as to the level of state housing aid are met. The bonds of each issue may be |
7 | issued in the form of serial bonds or term bonds, zero coupon bonds, capital appreciation bonds, or |
8 | compound interest bonds or a combination thereof and shall be payable either by maturity of |
9 | principal in the case of serial bonds or by mandatory sinking fund installments in the case of term |
10 | bonds, in annual installments of principal, the first installment to be not later than five (5) years and |
11 | the last installment not later than thirty (30) years after the date of the bonds. The amount of |
12 | principal appreciation each year on any bonds, after the date of original issuance, shall not be |
13 | considered to be principal indebtedness for the purposes of any constitutional or statutory debt limit |
14 | or any other limitation. The appreciation of principal after the date of original issue shall be |
| |
1 | considered interest. Only the original principal amount shall be counted in determining the principal |
2 | amount so issued and any interest component shall be disregarded. |
3 | SECTION 2. The bonds shall be signed by the district treasurer and the chairperson of the |
4 | regional school district committee and shall be issued and sold in such amounts as the regional |
5 | school district committee may authorize. The manner of sale, denominations, maturities, interest |
6 | rates and other terms, conditions and details of any bonds or notes issued under this act may be |
7 | fixed by the proceedings of the regional school district committee authorizing the issue or by |
8 | separate resolution of the regional school district committee or, to the extent provisions for these |
9 | matters are not so made, they may be fixed by the officers authorized to sign the bonds or notes. |
10 | The proceeds derived from the sale of the bonds shall be delivered to the treasurer of the regional |
11 | school district committee, and such proceeds, exclusive of premiums and accrued interest, shall be |
12 | expended: (1) To finance the construction, furnishing and equipping of three (3) elementary schools |
13 | (one in each of the towns of Charlestown, Richmond and Hopkinton) and improvements at the |
14 | Switch Road Campus including, but not limited to, costs of demolition, design, health and safety |
15 | projects, playgrounds, landscaping, paving and all expenses incidental thereto (the "projects"); or |
16 | (2) In payment of the principal or interest on temporary notes issued under Section 3; or (3) In |
17 | repayment of advances under Section 4; (4) In payments of costs of issuance associated with the |
18 | issuance of bonds or notes hereunder; and/or (5) To finance capitalized interest for the projects. No |
19 | purchaser of any bonds or notes under this act shall be in any way responsible for the proper |
20 | application of the proceeds derived from the sale thereof. The proceeds of bonds or notes issued |
21 | under this act, any applicable federal or state assistance and the other moneys referred to in Sections |
22 | 4 and 6, shall be deemed appropriated for the purpose of this act without further action than that |
23 | required by this act. This bond issue authorized by this act may be consolidated for the purpose of |
24 | issuance and sale with any other bond issue of the regional school district heretofore or hereafter |
25 | authorized; provided that, notwithstanding any such consolidation, the proceeds from the sale of |
26 | the bonds authorized by this act shall be expended for the purposes set forth above. The district |
27 | treasurer and the chairperson of the regional school district committee, on behalf of the regional |
28 | school district, are hereby authorized to execute such instruments, documents or other papers as |
29 | either of them deem necessary or desirable to carry out the intent of this act and are also authorized |
30 | to take all actions and execute all documents or agreements necessary to comply with federal tax |
31 | and securities laws, which documents or agreements may have a term coextensive with the maturity |
32 | of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange |
33 | Commission and to execute and deliver a continuing disclosure agreement or certificate in |
34 | connection with the bonds or notes. |
| LC005499 - Page 2 of 8 |
1 | SECTION 3. The regional school district committee may by resolution authorize the |
2 | issuance from time to time of interest bearing or discounted notes in anticipation of the issue of |
3 | bonds or in anticipation of the receipt of federal or state aid for the purposes of this act. The amount |
4 | of original notes issued in anticipation of bonds may not exceed the amount of bonds which may |
5 | be issued under this act and the amount of original notes issued in anticipation of federal or state |
6 | aid may not exceed the amount of available federal or state aid as estimated by the treasurer of the |
7 | regional school district. Temporary notes issued hereunder shall be signed by the district treasurer |
8 | and the chairperson of the regional school district committee and shall be payable within five (5) |
9 | years from their respective dates, but the principal of and interest on notes issued for a shorter |
10 | period may be renewed or paid from time to time by the issue of other notes hereunder; provided |
11 | the period from the date of an original note to the maturity of any note issued to renew or pay the |
12 | same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in anticipation |
13 | of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance |
14 | of additional temporary notes; provided that, no such refunding shall result in any amount of such |
15 | temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount |
16 | of bonds which may be issued under this act; and provided, further, that if the issuance of any such |
17 | refunding notes results in any amount of such temporary notes outstanding at any one time in excess |
18 | of the amount of bonds which may be issued under this act, the proceeds of such refunding notes |
19 | shall be deposited in a separate fund established with the bank which is paying agent for the notes |
20 | being refunded. Pending their use to pay the notes being refunded, monies in the fund shall be |
21 | invested for the benefit of the regional school district by the paying agent at the direction of the |
22 | treasurer of the regional school district in any investment permitted under Section 5. The monies |
23 | in the fund and any investments held as a part of the fund shall be held in trust and shall be applied |
24 | by the paying agent solely to the payment or prepayment of the principal of and interest on the |
25 | notes being refunded. Upon payment of all principal of and interest on the notes, any excess monies |
26 | in the fund shall be distributed to the regional school district committee. The regional school district |
27 | committee may pay the principal of and interest on notes in full from sources other than the issuance |
28 | of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case, the |
29 | regional school district committee's authority to issue bonds or notes in anticipation of bonds under |
30 | this act shall continue; provided that, (1) The regional school district committee passes a resolution |
31 | evidencing the regional school district committee's intent to pay off the notes without extinguishing |
32 | the authority to issue bonds or notes; and (2) That the period from the date of an original note to |
33 | the maturity date of any other note shall not exceed five (5) years. |
34 | SECTION 4. Bonds and notes shall not be issued unless the Chariho Regional School |
| LC005499 - Page 3 of 8 |
1 | District has received a letter from the Rhode Island Department of Elementary and Secondary |
2 | Education confirming that the Board of Education has approved the facilities to be financed for |
3 | school housing aid and that the then-current reimbursement rate pursuant to §§ 16-7-35 through |
4 | 16-7-47, as amended from time to time, or pursuant to any other law hereafter enacted providing |
5 | for funds to municipalities or regional school districts for school housing aid purposes, is not less |
6 | than sixty-one percent (61%) of debt service for eligible costs at the time of issuance. Such school |
7 | housing aid reimbursement rate or state share ratio may be increased through the award of |
8 | incentives pursuant to §§ 16-7-39, 16-7-40 and 16-105-3 at the completion of each project. Failure |
9 | of a project to be awarded state housing aid at a reimbursement rate or share ratio higher than sixty |
10 | one percent (61%) shall not affect the authority to issue the bonds under this act. Notwithstanding |
11 | any other provision of the general laws governing school housing aid reimbursement rates or share |
12 | ratios or any school-related regulations, for any project financed with proceeds of bonds issued |
13 | pursuant to this act, the school housing aid ratio for such project shall be increased by the |
14 | percentages provided in § 16-17-40 as it may be amended from time to time, so long as the |
15 | construction of the project commences by December 30, 2024 and is completed by December 30, |
16 | 2029, or such later dates as set forth in § 16-7-40, as amended from time to time. |
17 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
18 | of any authorization or issue of notes hereunder, the district treasurer, with the approval of the |
19 | regional school district committee, may, to the extent that bonds or notes may be issued hereunder, |
20 | apply funds in the treasury of the regional school district committee to the purposes specified in |
21 | Section 2, such advances to be repaid without interest from the proceeds of bonds or notes |
22 | subsequently issued or from the proceeds of applicable federal or state assistance or from other |
23 | available funds. |
24 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
25 | or state assistance, pending their expenditure, may be deposited or invested by the district treasurer |
26 | in demand deposits, time deposits or savings deposits in banks which are members of the Federal |
27 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
28 | America or by any agency or instrumentality thereof ("government obligations") or as may be |
29 | provided in any other applicable law of the State of Rhode Island or resolution of the regional |
30 | school district committee or pursuant to an investment policy of the regional school district |
31 | committee. Any bank deposits or investments, other than investments in government obligations, |
32 | must either be directly insured by the Federal Deposit Insurance Corporation or be collateralized |
33 | by government obligations which have a value equal to or greater than one hundred two percent |
34 | (102%) of the deposit or investment amount. |
| LC005499 - Page 4 of 8 |
1 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall |
2 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
3 | bonds or notes hereunder shall, in the discretion of the district treasurer, be applied to the cost of |
4 | preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to |
5 | the payment of the cost of the projects, to the payment of the principal of or interest on bonds or |
6 | notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and |
7 | marketing bonds or notes issued hereunder may also, in the discretion of the district treasurer, be |
8 | met from bond or note proceeds exclusive of accrued interest or from other monies available |
9 | therefor. If, upon completion of any of the projects there shall be any balance of bond or note |
10 | proceeds remaining not required for the payment of the costs of such project, such funds shall be |
11 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
12 | extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or |
13 | investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues |
14 | of the regional school district from the member towns. In exercising any discretion under this |
15 | section, the treasurer shall be governed by any instructions adopted by resolution of the regional |
16 | school district committee. |
17 | SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby |
18 | shall be obligatory on the regional school district committee in the same manner and to the same |
19 | extent as other debts are obligatory under the laws of this state on incorporated towns of this state |
20 | and they shall be excepted from the operating of § 45-12-2. Such debt evidenced by said bonds or |
21 | notes shall not be construed at any time to form a part of the debt of any individual town which is |
22 | a member of the regional school district for the purpose of ascertaining the borrowing capacity of |
23 | such town, nor shall said debt contracted by the regional school district in any way apply to the |
24 | operation of § 45-12-2, as amended, with respect to any member town. The regional school district |
25 | shall annually appropriate a sum sufficient to pay the principal and interest coming due within the |
26 | year on bonds and notes issued hereunder until such bonds and notes and the interest thereon are |
27 | paid in full. |
28 | SECTION 9. Any bonds or notes issued under the provisions of this act, if properly |
29 | executed by officers of the regional school district in office on the date of execution, shall be valid |
30 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
31 | therefor any or all of such officers shall for any reason have ceased to hold office. |
32 | SECTION 10. The regional school district, acting by resolution of its regional school |
33 | district committee, is authorized to apply for, contract for and expend any federal or state advances |
34 | or other grants or assistance which may be available for the purposes of this act, and any such |
| LC005499 - Page 5 of 8 |
1 | expenditures may be in addition to other monies provided in this act. To the extent of any |
2 | inconsistency between any law of this state and any applicable federal law or regulation, the latter |
3 | shall prevail. Federal and state advances, with interest where applicable, whether contracted for |
4 | prior to or after the effective date of this act, may be repaid as project costs under Section 2. |
5 | SECTION 11. Bonds and notes may be issued under this act without obtaining the approval |
6 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
7 | except as specifically required by this act for such issue. In carrying out any project financed in |
8 | whole or in part under this act, including where applicable the condemnation of any land or interest |
9 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
10 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
11 | whether or not such action is otherwise required by statute; but the validity of bonds and notes |
12 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
13 | SECTION 12. All or any portion of the authority to issue bonds and notes under this act |
14 | may be extinguished by resolution of the regional school district committee, without further action |
15 | by the general assembly, seven (7) years after the effective date of this act. |
16 | SECTION 13. The question of the approval of this act shall be submitted to the electors of |
17 | the towns of Charlestown, Richmond and Hopkinton at a special election on May 7, 2024 or on |
18 | another date set by the regional school district committee, which election is subject to the provisions |
19 | of title 17. The question shall be submitted in substantially the following form: "Shall an Act passed |
20 | at the 2024 Session of the general assembly entitled, 'AN ACT AUTHORIZING THE CHARIHO |
21 | REGIONAL SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION, FURNISHING AND |
22 | EQUIPPING OF THREE ELEMENTARY SCHOOLS (ONE IN EACH OF THE TOWNS OF |
23 | CHARLESTOWN, RICHMOND AND HOPKINTON) AND IMPROVEMENTS AT THE |
24 | SWITCH ROAD CAMPUS INCLUDING, BUT NOT LIMITED TO, COSTS OF DEMOLITION, |
25 | DESIGN, HEALTH AND SAFETY PROJECTS, PLAYGROUNDS, LANDSCAPING, PAVING |
26 | AND ALL EXPENSES INCIDENTAL THERETO BY THE ISSUANCE OF NOT MORE THAN |
27 | $150,000,000 BONDS AND/OR NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE |
28 | HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS |
29 | THAN 61% AT THE TIME OF ISSUANCE, WHICH RATE OR RATIO MAY INCREASE TO |
30 | MORE THAN 76% AT PROJECT COMPLETION' be approved?" The warning for the election |
31 | shall contain the question to be submitted. From the time the election is warned and until it is held, |
32 | it shall be the duty of the town clerks of the respective towns of Charlestown, Richmond and |
33 | Hopkinton to keep a copy of the act available at their offices for public inspection, but the validity |
34 | of the election shall not be affected by this requirement. To the extent of any inconsistency between |
| LC005499 - Page 6 of 8 |
1 | this act and the home rule charter of any member town, this act shall prevail. Notwithstanding |
2 | anything contained in § 17-19-7 to the contrary, the towns' boards of canvassers may certify the |
3 | question to the secretary of state not later than thirty (30) days prior to the date set for the election. |
4 | SECTION 14. This section and section 13 shall take effect upon the passage of this act. |
5 | The remainder of this act shall take effect upon the approval of this act by a majority in each town |
6 | of those voting on the question at the election prescribed by the foregoing section. |
======== | |
LC005499 | |
======== | |
| LC005499 - Page 7 of 8 |
EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE | |
CONSTRUCTION, FURNISHING AND EQUIPPING OF THREE ELEMENTARY SCHOOLS | |
(ONE IN EACH OF THE TOWNS OF CHARLESTOWN, RICHMOND AND HOPKINTON) | |
AND IMPROVEMENTS AT THE SWITCH ROAD CAMPUS INCLUDING, BUT NOT | |
LIMITED TO, COSTS OF DEMOLITION, DESIGN, HEALTH AND SAFETY PROJECTS, | |
PLAYGROUNDS, LANDSCAPING, PAVING AND ALL EXPENSES INCIDENTAL | |
THERETO BY THE ISSUANCE OF NOT MORE THAN $150,000,000 BONDS AND/OR | |
NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A | |
REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 61% AT THE | |
TIME OF ISSUANCE, WHICH RATE OR RATIO MAY INCREASE TO MORE THAN 76% | |
AT PROJECT COMPLETION | |
*** | |
1 | This act would authorize the Chariho Regional School District to finance the construction, |
2 | furnishing and equipping of three (3) elementary schools (one in each of the towns of Charlestown, |
3 | Richmond and Hopkinton) and improvements at the Switch Road Campus including, but not |
4 | limited to, costs of demolition, design, health and safety projects, playgrounds, landscaping, paving |
5 | and all expenses incidental thereto by the issuance of not more than one hundred fifty million dollar |
6 | ($150,000,000) bonds and/or notes therefor, subject to approval of state school housing aid at a |
7 | reimbursement rate of not less than sixty one percent (61%), which rate or ratio may increase to |
8 | more than seventy-six percent (76%) at project completion. This act would also provide that for |
9 | any project financed pursuant to this act, the school housing aid ratio for such project shall be |
10 | increased by the percentages provided in § 16-7-40, as long as the construction of the project |
11 | commences by December 30, 2024 and is completed by December 30, 2029, or such later dates as |
12 | may be set forth in § 16-7-40, as amended from time to time. |
13 | Sections 13 and 14 would take effect upon passage. The remainder of the act would take |
14 | effect upon approval of the act by a majority of the electors in each of the towns of Charlestown, |
15 | Richmond and Hopkinton. |
======== | |
LC005499 | |
======== | |
| LC005499 - Page 8 of 8 |