2024 -- S 3097

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LC006160

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN

$137,200,000 OF BONDS AND NOTES FOR CONSTRUCTION, IMPROVEMENT,

RENOVATION, DEMOLITION, REMEDIATION, FURNISHING, EQUIPPING AND OTHER

CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES THROUGHOUT THE TOWN,

INCLUDING BUT NOT LIMITED TO A NEW WICKFORD MIDDLE SCHOOL

     

     Introduced By: Senators Valverde, and DiMario

     Date Introduced: May 29, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding One Hundred Thirty-Seven Million

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Two Hundred Thousand Dollars ($137,200,000) from time to time under its corporate name and

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seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds

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or term bonds or a combination thereof and shall be payable either by maturity of principal in the

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case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual

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installments of principal, the first installment to be not later than five years and the last installment

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not later than thirty years after the date of the bonds.

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     SECTION 2. This act shall constitute an enabling act of the general assembly that is

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required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under

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this act for school projects shall not be eligible for state housing aid reimbursement pursuant to §

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16-7-44 unless the school projects described herein shall have been approved by the Rhode Island

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department of education. Notwithstanding any other provision of the general laws governing school

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housing aid reimbursement rates or share ratios or any school-related regulations, for any project

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financed with proceeds of bonds issued pursuant to this act, the school housing aid ratio for such

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project shall be increased by the percentages provided in § 16-7-40 as it may be amended from time

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to time, so long as the construction of the project commences by December 30, 2024 and is

 

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completed by December 30, 2029, or such later dates as set forth in § 16-7-40, as amended from

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time to time.

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     SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town

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treasurer and the president of the Town Council and shall be issued and sold in such amounts as

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the Town Council may authorize by resolution, which resolution may authorize any and all actions

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to be taken under this act by the president of the Town Council to be taken by the president pro tem

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of the Town Council or other member of the Town Council. The manner of sale, denominations,

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maturities, interest rates and other terms, conditions and details of any bonds or notes issued under

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this act may be fixed by the resolution of the Town Council authorizing the issue or by separate

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resolution of the Town Council or, to the extent provisions for these matters are not so made, they

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may be fixed by the officers authorized to sign the bonds or notes. Notwithstanding anything

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contained in this act to the contrary, the town may enter into financing agreements with the Rhode

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Island health and educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1

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of title 45 and, with respect to bonds or notes issued in connection with such financing agreements,

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if any, the town acting by said officers may elect to have the provisions of chapter 38.1 of title 45

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apply to the issuance of bonds or notes issued hereunder to the extent the provisions of said chapter

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are inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode

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Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to

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bonds or notes issued in connection with such financing agreements, if any, the town acting by said

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officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds

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or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith.

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     SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the

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treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended (a) for

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construction, improvement, renovation, demolition, remediation, furnishing, equipping and other

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capital improvements of school facilities throughout the Town, including but not limited to a new

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Wickford Middle School and all expenses incidental thereto, (collectively, the “projects”), (b) in

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payment of the principal of or interest on temporary notes issued under section 5 of this act or (c)

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in repayment of advances under section 6 of this act. No purchaser of any bonds or notes under this

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act shall be in any way responsible for the proper application of the proceeds derived from the sale

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thereof. The projects shall be carried out and all contracts made therefor on behalf of the Town by

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the Town Council or as may be otherwise directed by the Town Council. The proceeds of bonds or

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notes issued under this act, any applicable federal or state assistance and the other monies referred

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to in Sections 8 and 11 of this act shall be deemed appropriated for the purposes of this act without

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further action than that required by this act. The bond issue, and any issue of notes, authorized by

 

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this act may be consolidated for the purposes of issuance and sale with any other bond and/or note

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issue of the town heretofore or hereafter authorized, provided that, notwithstanding any such

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consolidation, the proceeds from the sale of the bonds and notes authorized by this act shall be

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expended for the purposes set forth above.

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     SECTION 5. The Town Council may by resolution authorize the issue from time to time

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of interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in

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anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original

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notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued

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under this act and the amount of original notes issued in anticipation of federal or state aid may not

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exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes

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issued hereunder shall be signed by the treasurer and by the president of the Town Council and

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shall be payable within five years from their respective dates, but the principal of and interest on

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notes issued for a shorter period may be renewed or paid from time to time by the issue of other

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notes hereunder, provided the period from the date of an original note to the maturity of any note

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issued to renew or pay the same debt or the interest thereon shall not exceed five years. Any

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temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity

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of the notes by the issuance of additional temporary notes; provided that no such refunding shall

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result in any amount of temporary notes outstanding at any one time in excess of two hundred

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percent (200%) of the amount of bonds that may be issued under this act; and provided further that,

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if the issuance of any such refunding notes results in excess of the amount of bonds that may be

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issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund

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established with the paying agent which is the paying agent for the notes being refunded. Pending

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their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the

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town by the paying agent at the direction of the treasurer in any investment permitted under section

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7. The monies in the fund and any investments held as a part of the fund shall be held in trust and

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shall be applied by the paying agent solely to the payment or prepayment of the principal and

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interest on the notes being refunded. Upon payment of all principal and interest on the notes being

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refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The

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town may pay the principal of and interest on the notes in full or in part from other than the issuance

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of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case the

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town’s authority to issue bonds or notes in anticipation of bonds under this act shall continue:

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provided that (1) the town council passes a resolution evidencing the town’s intent to pay off the

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notes without extinguishing the authority to issue bonds or notes; and (2) that the period from the

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date of the original note to the maturity of any other note shall not exceed five (5) years.

 

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     SECTION 6. Pending any authorization or issue of bonds hereunder or pending or in lieu

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of any authorization or issue of notes hereunder, the treasurer, with the approval of the Town

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Council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury

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of the Town to the purposes specified in Section 4, such advances to be repaid without interest from

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the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or

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state assistance or from other available funds.

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     SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal

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or state assistance, pending their expenditure may be deposited or invested by the treasurer, in

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demand deposits, time deposits or savings deposits in banks which are members of the Federal

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Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of

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America or by any agency or instrumentality thereof or as may be provided in any other applicable

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law of the State of Rhode Island or resolution of the town council or pursuant to an investment

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policy of the town.

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     SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall

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be applied to the payment of the first interest due thereon. Any premiums arising from the sale of

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bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of

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funds hereunder shall, in the discretion of the treasurer, be applied (1) to the cost of preparing,

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issuing and marketing bonds or notes hereunder to the extent not otherwise provided, (2) to the cost

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of capitalized interest on temporary notes issued under Section 5 of this act not otherwise provided,

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(3) to the payment of the cost of the projects for which such bonds were issued or to the cost of

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additional improvements coming within the description of the projects in Section 4 of this act for

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which such bonds were issued, and/or (4) to the payment of the principal of or interest on bonds or

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notes issued hereunder; or to any one or more of the foregoing. The cost of preparing, issuing and

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marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met from bond

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or note proceeds exclusive of accrued interest or from other monies available therefor. Any balance

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of bond or note proceeds remaining after payment of the cost of the projects and said additional

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improvements and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

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applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the

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extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or

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investment of fund hereunder may, upon receipt, be added to and dealt with as part of the revenues

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of the town from property taxes. In exercising any discretion under this Section, the treasurer shall

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be governed by any instructions adopted by resolution of the Town Council. The treasurer is

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authorized to take any action deemed by him or her necessary (1) to assure that interest on the

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bonds or notes issued hereunder remains excludable from gross income of the recipients thereof for

 

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federal income tax purposes, including, without limitation, paying to the federal government any

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rebate of earnings derived from the deposit or investment of the proceeds of such bonds or notes

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that may be required therefor, (2) to comply with the requirements of federal law, including without

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being limited to regulations and other requirements of the Securities and Exchange Commission

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and the Municipal Securities Rulemaking Board, imposed directly on the Town or on the

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underwriters of such bonds and notes and/or (3) to comply with the provisions of §§ 16-7-35 to 16-

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7-47 of the Rhode Island General Laws, 1956,as amended; including making all necessary contracts

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and agreements to issue said bonds and/or notes through the Rhode Island Health and Educational

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Building Corporation.

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     SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall

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be obligatory on the town in the same manner and to the same extent as other debts lawfully

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contracted by it and shall be excepted from the operation of Section 45 12 2 of the General Laws.

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No such obligation shall at any time be included in the debt of the town for the purpose of

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ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on bonds and notes issued hereunder to the

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extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall

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nevertheless be added to the annual tax levy. In order to provide such sum in each year and

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notwithstanding any provision of law to the contrary, all taxable property in the town shall be

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subject to ad valorem taxation by the town without limitation as to rate or amount.

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     SECTION 10. Any bonds or notes issued under the provisions of this act, if properly

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executed by officers of the town in office on the date of execution, shall be valid and binding

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according to their terms notwithstanding that before the delivery thereof and payment therefor any

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or all of such officers shall for any reason have ceased to hold office.

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     SECTION 11. The town, acting by resolution of its Town Council is authorized to apply

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for, contract for and expend any federal or state advances or other grants or assistance which may

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be available for the purposes of this act, and any such expenditures may be in addition to other

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moneys provided in this act. To the extent of any inconsistency between any law of this state and

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any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

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interest where applicable, whether contracted for prior to or after the effective date of this act, may

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be repaid as project costs under Section 4.

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     SECTION 12. Bonds and notes may be issued under this act without obtaining the approval

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of any governmental agency or the taking of any proceedings or the happening of any conditions

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except as specifically required by this act for such issue. In carrying out any project financed in

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whole or in part under this act, including where applicable the condemnation of any land or interest

 

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in land, and in the levy and collection of assessments or other charges permitted by law on account

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of any such project, all action shall be taken which is necessary to meet constitutional requirements

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whether or not such action is otherwise required by statute; but the validity of bonds and notes

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issued hereunder shall in no way depend upon the validity or occurrence of such action. To the

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extent of any inconsistency between this act and the Town Charter, this act shall prevail.

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     SECTION 13. All of any portion of the authority to issue bonds and notes under this act

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may be extinguished by resolution of the town council, without further action by the general

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assembly seven (7) years after the effective date of this act.

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     SECTION 14. The question of the approval of this act shall be submitted to the electors of

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the town at an election on a date to be determined by the Town Council which occurs at least sixty

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days after the passage of this act. The question shall be submitted in substantially the following

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form: The question shall be submitted in substantially the following form: "Shall an act, passed at

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the 2024 session of the General Assembly, entitled ‘AN ACT AUTHORIZING THE TOWN OF

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NORTH KINGSTOWN TO ISSUE NOT MORE THAN $137,200,000 BONDS AND NOTES

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FOR CONSTRUCTION, IMPROVEMENT, RENOVATION, DEMOLITION, REMEDIATION,

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FURNISHING, EQUIPPING AND OTHER CAPITAL IMPROVEMENTS OF SCHOOL

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FACILITIES THROUGHOUT THE TOWN, INCLUDING BUT NOT LIMITED TO A NEW

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WICKFORD MIDDLE SCHOOL’ be approved?" and the warning for the election shall contain

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the question to be submitted. The Town Board of Canvassers may combine any two or more voting

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districts for the election and when so combined shall be treated as a voting district. If so combined,

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the Town Board of Canvassers shall advertise the combination of districts in a newspaper of general

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circulation in the Town. From the time the election is warned and until it is held, it shall be the duty

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of the Town Clerk to keep a copy of the act available at his or her office for public inspection, but

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the validity of the election shall not be affected by this requirement.

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     SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder

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of this act shall take effect upon the approval of this act by a majority of those voting on the question

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at the election prescribed by Section 14.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN

$137,200,000 OF BONDS AND NOTES FOR CONSTRUCTION, IMPROVEMENT,

RENOVATION, DEMOLITION, REMEDIATION, FURNISHING, EQUIPPING AND OTHER

CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES THROUGHOUT THE TOWN,

INCLUDING BUT NOT LIMITED TO A NEW WICKFORD MIDDLE SCHOOL

***

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     This act would authorize the town of North Kingstown to issue not more than $137,200,000

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bonds and notes for construction, improvement, renovation, demolition, remediation, furnishing

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and equipping and other capital improvements of school facilities throughout the town, including

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a new Wickford middle school in the town.

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     Sections 14 and 15 of this act would take effect upon passage. The remainder of the act

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would take effect upon approval by the electors of the town of the question provided for in section

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14.

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