act23048

LA 048

2023 -- S 1073
Enacted 06/20/2023

A N A C T

AUTHORIZING THE BRISTOL WARREN REGIONAL SCHOOL DISTRICT TO ISSUE NOT TO EXCEED TWO HUNDRED MILLION DOLLARS ($200,000,000) IN GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, FURNISHING AND EQUIPPING OF A NEW HIGH SCHOOL, ATHLETIC FACILITY, AND SCHOOL FACILITIES IN THE DISTRICT, FURNISHINGS AND EQUIPMENT AND ALL EXPENSES INCIDENT THERETO, INCLUDING, BUT NOT LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING, AND PARKING AND ALL ATTENDANT EXPENSES, INCLUDING ENGINEERING, ARCHITECTURAL, SURVEYING AND OTHER PROJECT-RELATED CONSULTING COSTS

Introduced By: Senators Lauria, Felag, and Ujifusa

Date Introduced: May 25, 2023

It is enacted by the General Assembly as follows:

SECTION 1. The Bristol Warren Regional School District (the “district”) is hereby

empowered, in addition to authority previously granted, to issue bonds in an amount not exceeding

two hundred million dollars ($200,000,000) from time to time under its corporate name and seal or

a facsimile of such seal. 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 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. All such bonds of a particular

issue may be issued in the form of zero coupon bonds, capital appreciation bonds, serial bonds or

term bonds or a combination thereof. 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 district may be eligible for school housing aid reimbursement on debt

service pursuant to chapter ‎‎7 of title 16, or for a grant, loan or other financial assistance from

proceeds of bonds issued by the State of Rhode Island (the “state”), ‎from the Rhode Island

department of education (“RIDE”) or from the Rhode Island school building authority.

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

treasurer and the chairperson of the regional district school committee and shall be issued and sold

in such amounts as the regional district school committee may authorize by resolution with the

approval of the joint finance committee of the district. 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 resolution of the regional district school committee authorizing the

issue or by separate resolution of the regional district school 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. Notwithstanding anything contained in this act to the contrary, the district may enter into

financing ‎agreements with the Rhode Island health and educational building corporation pursuant

to ‎chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds or notes issued in

‎connection with such financing agreements, if any, the district may elect to have the provisions of

‎chapter 38.1 of title 45 apply to the issuance of the bonds or notes issued hereunder to the extent

‎the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the district may

enter ‎into financing agreements with the Rhode Island infrastructure bank pursuant to the

provisions ‎of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection with

such ‎financing agreements, if any, the district may elect to have the provisions of chapter 12.2 of

title 46 ‎apply to the issuance of the bonds or notes issued hereunder to the extent the provisions of

‎chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings ‎of

the regional district school committee authorizing such issuance of by separate resolution of the

regional district school 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 or notes shall be delivered to the district treasurer and such proceeds exclusive

of premiums and accrued interest shall be expended: (1) To finance the acquisition, ‎construction,

improvement, renovation, furnishing and ‎‎equipping of a new ‎high ‎school, athletic facility, and

school facilities in the district, and all ‎expenses incident thereto, ‎including, but ‎not limited to, costs

of ‎design, demolition, ‎athletic ‎fields, ‎landscaping and parking, acquisition of furnishings and

equipment, and all attendant expenses including, but not limited to, engineering, architectural,

surveying and other project-related consulting costs; (2) In payment of the principal of or interest

on temporary notes issued under section 4; (3) In repayment of advances under section 5; (4) In

payment of related costs of issuance of any bonds or notes; and/or (5) In payment of capitalized

interest during construction of the project (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 therefore on behalf of the district

by the regional district school committee with due regard to any recommendation of the school

building committee. The regional district school committee and the school building committee and

their agents are authorized to enter, without delay and at reasonable times, any public school

buildings and other public school property for the purpose of accomplishing the project and to do

all acts and deeds necessary or convenient in connection with the project. The proceeds of bonds

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

referred to in sections 7 and 10 shall be deemed appropriated for the purposes of this act without

further action than that required by this act. The bonds authorized by this act may be consolidated

for the purpose of issuance and sale with any other bonds of the 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.

SECTION 4. The regional district school committee may by resolution authorize the

issuance from time to time of interest bearing or discounted notes in anticipation of the issuance 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.

Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the

district treasurer and the chairperson of the regional district school 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 issuance 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 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 trust in a separate fund established 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 district by the paying agent at the direction of the district

treasurer in any investment permitted under section 6. 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 payment

of all principal of and interest on the notes, any excess monies in the fund shall be distributed to

the district. The district 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 district’s authority to issue bonds or notes in anticipation of bonds under this act shall continue

provided that: (1) The regional district school committee passes a resolution evidencing the

district’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 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 district school committee, may, to the extent that bonds or notes may be issued hereunder,

apply funds in the treasury of the district to the purposes specified in section 3, 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 or as may be provided in any other applicable

law of the State of Rhode Island or resolution of the regional district school committee or pursuant

to an investment policy of the district, duly adopted by the regional school committee.

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 premium 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 project costs, 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 discretion of the district treasurer, be met from

bond or note proceeds exclusive of 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, 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 district from its member

towns. In exercising any discretion under this section, the district treasurer shall be governed by

any instructions adopted by resolution of the regional district school committee.

SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby

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

contracted by incorporated towns of the State of Rhode Island. All bonds and notes issued under

this act and the debts evidenced thereby shall be exempted from the operation of § 16-3-17, section

3 of chapter 330 of the public laws of the State of Rhode Island (the “enabling legislation”) and

any other provision of charter, special law or general law limiting the issuance of debt. No such

obligation shall at any time be included in the debt of either member town for the purposes of

ascertaining its borrowing capacity, nor shall it be subject to the provisions of § 45-12-2 with

respect to each member town. The district shall annually appropriate and apportion between the

member towns, a sum sufficient to pay the principal and interest coming due within the year on

bonds and notes issued hereunder to the extent that monies therefor are not otherwise provided, and

each member town shall, annually appropriate a sum sufficient to pay its share of the

apportionment. If such sum is not appropriated, it shall nevertheless be added to the annual tax levy

of each member town. In order to provide such sum in each year and notwithstanding any provision

of law to the contrary, all taxable property in each member town of the district shall be subject to

ad valorem taxation by the member town of the district without limitation as to rate or amount to

pay the member town’s share of such apportionment.

SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if

any, if properly executed by officers of the 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 district, acting by resolution of its regional district school 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 the 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 3.

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 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 12. The district treasurer and the chairperson of the regional district school

committee, on behalf of the 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 instruments, documents or agreements

necessary to comply with federal tax and securities laws, which instruments, 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 (the “Rule”) and to execute

and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes

in the form as shall be deemed advisable by such officers in order to comply with the Rule.

SECTION 13. All or any portion of the authorized but unissued authority to issue bonds

and notes under this act may be extinguished by resolution of the regional district school committee,

with the approval of the joint finance committee, after ten (10) years shall have passed from the

approval of this act provided for in section 14, without further action by the general assembly.

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

the towns of Bristol and Warren, at a general or local election, other than a primary, to be held on

November 7, 2023, or on another date determined by resolution of the regional district school

committee. The question shall be submitted in substantially the following form: “Shall an act passed

at the 2023 session of the general assembly entitled ‘AN ACT AUTHORIZING THE BRISTOL

WARREN REGIONAL SCHOOL DISTRICT TO ISSUE NOT TO EXCEED TWO HUNDRED

MILLION DOLLARS ($200,000,000) GENERAL OBLIGATION BONDS AND NOTES TO

FINANCE THE ‎ACQUISITION, ‎CONSTRUCTION, IMPROVEMENT, RENOVATION,

FURNISHING AND ‎EQUIPPING OF A NEW ‎HIGH ‎SCHOOL, ATHLETIC FACILITY, AND

SCHOOL FACILITIES IN THE DISTRICT, FURNISHINGS AND EQUIPMENT THEREOF,

AND ALL EXPENSES INCIDENT THERETO, ‎INCLUDING, BUT ‎NOT LIMITED TO, COSTS

OF DESIGN, DEMOLITION, ‎ATHLETIC ‎FIELDS, ‎LANDSCAPING AND PARKING AND

ALL ATTENDANT EXPENSES, INCLUDING ENGINEERING, ARCHITECTURAL,

SURVEYING AND OTHER PROJECT-RELATED CONSULTING COSTS 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 clerk of each member town of the district to

keep a copy of this act available at the clerk’s office 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 district enabling legislation, this act shall prevail.

SECTION 15. This section and section 14 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 of the district

of those voting on the question at the election prescribed by section 14.

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LC003069

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