act22021

LA 021

2022 -- H 8170
Enacted 06/20/2022

A N A C T

AUTHORIZING THE TOWN OF SCITUATE TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $750,000 TO FINANCE EQUIPMENT, REPAIRS AND/OR IMPROVEMENTS AT THE SCITUATE PUBLIC SCHOOLS

Introduced By: Representative Robert J. Quattrocchi

Date Introduced: April 27, 2022

It is enacted by the General Assembly as follows:

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

previously granted, to issue its general obligation bonds and notes in an amount not exceeding

seven hundred fifty thousand ($750,000) dollars at one time or from time to time under its corporate

name and seal or a facsimile of such seal to finance equipment, repairs and/or improvements at the

Scituate public schools. The bonds of each issue may be issued in the form of serial bonds or term

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 two (2) years and the last installment not later

than twenty (20) years after the date of the bonds. All such bonds of a particular issue may be

issued in the form of serial bonds or term bonds or a combination thereof. Annual installments of

principal may be provided for by maturity of principal in the case of serial bonds or by mandatory

serial redemption in the case of term bonds.

SECTION 2. The bonds and/or notes shall be signed by the manual or facsimile signatures

of the town treasurer and the president of the town council. The amount of the bond and/or note

issue, manner of sale, denominations, maturities, interest rate or rates, award and other terms,

conditions and details of any bonds or notes issued under this act shall be fixed by the officers

authorized to sign the bonds. The bonds and/or notes may be made callable with or without

premium. The proceeds derived from the sale of the bonds and/or notes shall be delivered to the

town treasurer, and such proceeds, exclusive of premiums and accrued interest, shall be expended

for costs of financing equipment, repairs and/or improvements at the Scituate public schools (herein

referred to as the “project”), including all other costs incidental and related to the foregoing project

and its financing pursuant to this act, including, but not limited to, the payment of principal of or

interest on temporary notes issued under section 3, the repayment of advances made under section

4, and/or to finance capitalized interest on the project. 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 project shall be carried out and all contracts made therefor on behalf of the town

by the town council, or as may be authorized by the town council. The proceeds of bonds or notes

issued under this act, any applicable federal or state assistance and any other monies referred to in

sections 5, 6, or 9 shall be deemed appropriated for the purposes of this act without further action

than that required by this act. The bond issue authorized by this act may be consolidated for the

purposes of issuance and sale with any other bond issue of the town 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 above. The town treasurer

and president of the town council acting singly, on behalf of the town, 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, to execute and deliver a

continuing disclosure agreement or certificate in connection with the bond and/or notes, and to

comply with the provisions of §§ 16-7-35 through 16-7-47 of the Rhode Island General Laws, 1956,

as amended; including making all necessary contracts and agreements to issue said bonds and/or

notes through the Rhode Island Health and Educational Building Corporation, but nothing herein

shall require that the town issue such bonds and/or notes through the Rhode Island Health and

Educational Building Corporation.

SECTION 3. The town treasurer and the president of the town council may issue from

time to time interest bearing or discounted notes in anticipation of the issue of bonds under this act

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 town treasurer.

Temporary notes issued hereunder shall be signed by the town treasurer and the president of the

town council 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 issuance of any such refunding notes results in any 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 town by the paying agent at the direction of the town treasurer in any investment

permitted under section 5. The monies in the fund and any investments held as 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 all principal and interest on the

notes, any excess monies in the fund shall be distributed to the town. The period for which bonds

may be issued under this act need not be reduced by the period of any temporary loans hereunder.

The proceeds derived from the sale of such temporary notes shall be used only for the purposes for

which the proceeds bonds issued under this act may be used. The town 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 town’s authority to issue bonds or notes in

anticipation of bonds under this act shall continue; provided that: (1) The town council passes a

resolution evidencing the town’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 note shall not exceed five (5) years.

SECTION 4. Pending any issue of bonds or notes hereunder, the town treasurer, with the

approval of the town council, may, to the extent that bonds or notes may be issued hereunder, apply

funds in the treasury of the town for 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 town treasurer

in demand deposits, time deposits or savings deposits in which are members of the federal deposit

insurance corporation, in obligations issued or guaranteed by the United States of America or State

of Rhode Island, or by an agency, instrumentality or political subdivision of either of them, or as

may be provided in any other applicable law of the State of Rhode Island or resolution of the town

council or pursuant to an investment policy of the town.

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 bonds

or notes hereunder shall, in the discretion of the town 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 project, 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 hereunder may also, in the direction of the town treasurer, be met from

bond or note proceeds exclusive of premiums and accrued interest or from other monies available

therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project

and the cost of preparing, issuing and marketing bonds or notes hereunder may 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 shall upon receipt be added to and used for the same purposes as the proceeds of

bonds or notes issued hereunder or be added to and dealt with as a part of revenues of the town

from property taxes. In exercising any discretion under this section, the town treasurer shall be

governed by any instructions adopted by resolution of the town council. The town treasurer is

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

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

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

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

that may be required therefor.

SECTION 7. All bonds and/or notes issued under this act and the debts evidenced thereby

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

contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at

any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity.

The town shall annually appropriate a sum sufficient to pay the principal and interest coming due

within the year on bonds and/or notes issued hereunder to the extent that monies therefor are not

otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual

tax levy. In order to provide such sum in each year and notwithstanding any provision of law to

the contrary, all taxable property in the town shall be subject to ad valorem taxation by the town

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 town 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 town and/or its school department, acting by resolution of its town

council and/or school committee, is authorized to apply for, contract for and expand 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 the act. To the extent of any

inconsistency between any law of the 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/or 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. After completion of the project, all or any portion of the authorized but

unissued authority to issue bonds and/or notes under this act may be extinguished by resolution of

the town council, without further action by the general assembly.

SECTION 12. This act shall constitute an enabling act of the general assembly that is

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

this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44

unless the school projects described herein shall have been approved by the Rhode Island

Department of Education.

SECTION 13. The issuance of bonds and notes under this act has been previously

approved by the electors of the town at a financial town meeting held on April 5, 2022, and the

town council by resolution adopted March 24, 2022, therefore this act shall take effect upon

passage.

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LC005811

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