LA 002
2021 -- H 5024
Enacted 02/12/2021

A N   A C T
AUTHORIZING THE EXETER-WEST GREENWICH REGIONAL SCHOOL DISTRICT TO ISSUE NOT TO EXCEED $17,840,000 GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE RENOVATION, REHABILITATION, IMPROVEMENT, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE DISTRICT, INCLUDING, BUT NOT LIMITED TO, AUDITORIUM AND CLASSROOM IMPROVEMENTS, INFORMATION TECHNOLOGY, ROOFS, FLOORS, HEATING, VENTILATION, AIR CONDITIONING, ELECTRICAL SYSTEMS, PLAYGROUNDS, ATHLETIC FACILITIES, PARKING AND SAFETY IMPROVEMENTS, PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING AUTHORITY

Introduced By: Representatives Caldwell, Price, and Casimiro
Date Introduced: January 15, 2021

It is enacted by the General Assembly as follows:
     SECTION 1. The regional school district incorporated pursuant to Chapter 80 of the Public
Laws of 1965, as amended, known as the Exeter-West Greenwich 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 thousand dollars
($17,840,000) from time to time under its corporate name and seal. 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 sinking fund installments 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 district treasurer, and such
proceeds, exclusive of premiums and accrued interest, shall be expended: (1) To finance of the
renovation, rehabilitation, improvement, furnishing and equipping of schools and school facilities
throughout the Exeter-West Greenwich Regional School District, including, but not limited to,
auditorium and classroom improvements, information technology, roofs, floors, heating,
ventilation, air conditioning, electrical systems, playgrounds, athletic facilities, parking and safety
improvements and all expenses incidental thereto (the "projects"); (2) In payment of the principal
or interest on temporary notes issued under section 3; or (3) In repayment of advances under section
4; (4) In payments of costs of issuance associated with the issuance of bonds or notes hereunder;
and/or (5) To finance capitalized interest for the projects. 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 monies referred to in sections 4 and 9, 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
issuance 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 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 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, monies 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 in any investment permitted under section 5. The monies 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 monies
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: (l) 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. 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 2, 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 5. 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.
     SECTION 6. 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 monies 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 district treasurer shall be governed by any instructions adopted by resolution of the
regional school district committee.
     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory on the regional school district 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 ยง 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. If such sum is not appropriated,
it shall nevertheless be added to the amounts due from the member towns of the district. In order
to provide such sum in each year and notwithstanding any provision of law to the contrary, all
taxable property in the member towns shall be subject to ad valorem taxation by the member towns
without limitation as to rate or amount.
     SECTION 8. 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 9. 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 monies 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 2.
     SECTION 10. 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 11. 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 12. The question of the approval of this act shall be submitted to the electors of
the towns of Exeter and West Greenwich on a date to be designated by the regional school district
committee which may be a special election or local election. The question shall be submitted in
substantially the following form: "Shall an act passed at the 2021 Session of the general assembly
entitled, 'AN ACT AUTHORIZING THE EXETER-WEST GREENWICH REGIONAL SCHOOL
DISTRICT TO ISSUE NOT TO EXCEED $17,840,000 GENERAL OBLIGATION BONDS AND
NOTES TO FINANCE THE RENOVATION, REHABILITATION, IMPROVEMENT,
FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES
THROUGHOUT THE DISTRICT INCLUDING, BUT NOT LIMITED TO, AUDITORIUM AND
CLASSROOM IMPROVEMENTS, INFORMATION TECHNOLOGY, ROOFS, FLOORS,
HEATING, VENTILATION, AIR CONDITIONING, ELECTRICAL SYSTEMS,
PLAYGROUNDS, ATHLETIC FACILITIES, PARKING AND SAFETY IMPROVEMENTS,
PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF
CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE
ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL
BUILDING AUTHORITY' be approved?" 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 Exeter and West Greenwich 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 either member town, this act shall prevail.
     SECTION 13. Sections 12 and l3 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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LC000011
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