AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION, FURNISHING AND EQUIPPING OF AN ELEMENTARY SCHOOL SERVING THE TOWNS OF CHARLESTOWN, RICHMOND AND HOPKINTON, CONSISTING OF ONE OR MORE BUILDINGS, the official text

H8527 2026 -- H 8527 ======== LC006409 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION, FURNISHING AND EQUIPPING OF AN ELEMENTARY SCHOOL SERVING THE TOWNS OF CHARLESTOWN, RICHMOND AND HOPKINTON, CONSISTING OF ONE OR MORE BUILDINGS ON A SINGLE CAMPUS, AND IMPROVEMENTS AT THE SWITCH ROAD CAMPUS INCLUDING, BUT NOT LIMITED TO, COSTS OF LAND ACQUISITION, DEMOLITION, DESIGN, HEALTH AND SAFETY PROJECTS, PLAYGROUNDS, LANDSCAPING, PAVING, AND ALL EXPENSES INCIDENTAL THERETO, BY THE ISSUANCE OF NOT MORE THAN $116,000,000 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 65% AT PROJECT COMPLETION Introduced By: Representatives Cotter, Kennedy, and Spears Date Introduced: May 06, 2026 Referred To: House 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 sixteen million dollars ($116,000,000) 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 1 or any other limitation. The appreciation of principal after the date of original issue shall be 2 considered interest. Only the original principal amount shall be counted in determining the principal 3 amount so issued and any interest component shall be disregarded. 4 SECTION 2. The bonds shall be signed by the district treasurer and the chairperson of the 5 regional school district committee and shall be issued and sold in such amounts as the regional 6 school district committee may authorize. The manner of sale, denominations, maturities, interest 7 rates and other terms, conditions and details of any bonds or notes issued under this act may be 8 fixed by the proceedings of the regional school district committee authorizing the issue or by 9 separate resolution of the regional school district committee or, to the extent provisions for these 10 matters are not so made, they may be fixed by the officers authorized to sign the bonds or notes. 11 The proceeds derived from the sale of the bonds shall be delivered to the treasurer of the regional 12 school district committee, and such proceeds, exclusive of premiums and accrued interest, shall be 13 expended: (1) To finance the construction, furnishing and equipping of an elementary school 14 serving the towns of Charlestown, Richmond and Hopkinton, consisting of one or more buildings 15 on a single campus, and improvements at the Switch Road Campus including, but not limited to, 16 costs of land acquisition, demolition, design, health and safety projects, playgrounds, landscaping, 17 paving and all expenses incidental thereto (the “project”); or (2) In payment of the principal or 18 interest on temporary notes issued under section 3; or (3) In repayment of advances under section 19 4; (4) In payments of costs of issuance associated with the issuance of bonds or notes hereunder; 20 and/or (5) To finance capitalized interest for the project. No purchaser of any bonds or notes under 21 this act shall be in any way responsible for the proper application of the proceeds derived from the 22 sale thereof. The school facilities shall be constructed so as to provide safe, energy efficient and 23 cost-effective schools in accordance with Northeast Collaborative for High Performance Schools 24 standards to reduce long-term operating costs and support healthy learning environments for 25 students and staff. The proceeds of bonds or notes issued under this act, any applicable federal or 26 state assistance and the other monies referred to in sections 4 and 6, shall be deemed appropriated 27 for the purpose of this act without further action than that required by this act. This bond issue 28 authorized by this act may be consolidated for the purpose of issuance and sale with any other bond 29 issue of the regional school district heretofore or hereafter authorized; provided that, 30 notwithstanding any such consolidation, the proceeds from the sale of the bonds authorized by this 31 act shall be expended for the purposes set forth above. The district treasurer and the chairperson of 32 the regional school district committee, on behalf of the regional school district, are hereby 33 authorized to execute such instruments, documents or other papers as either of them deem necessary 34 or desirable to carry out the intent of this act and are also authorized to take all actions and execute LC006409 - Page 2 of 8 1 all documents or agreements necessary to comply with federal tax and securities laws, which 2 documents or agreements may have a term coextensive with the maturity of the bonds authorized 3 hereby, including Rule 15c2-12 of the Securities and Exchange Commission and to execute and 4 deliver a continuing disclosure agreement or certificate in connection with the bonds or notes. 5 SECTION 3. The regional school district committee may by resolution authorize the 6 issuance from time to time of interest bearing or discounted notes in anticipation of the issue of 7 bonds or in anticipation of the receipt of federal or state aid for the purposes of this act. The amount 8 of original notes issued in anticipation of bonds may not exceed the amount of bonds which may 9 be issued under this act and the amount of original notes issued in anticipation of federal or state 10 aid may not exceed the amount of available federal or state aid as estimated by the treasurer of the 11 regional school district. Temporary notes issued hereunder shall be signed by the district treasurer 12 and the chairperson of the regional school district committee and shall be payable within five (5) 13 years from their respective dates, but the principal of and interest on notes issued for a shorter 14 period may be renewed or paid from time to time by the issue of other notes hereunder, provided 15 the period from the date of an original note to the maturity of any note issued to renew or pay the 16 same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in anticipation 17 of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance 18 of additional temporary notes, provided that no such refunding shall result in any amount of such 19 temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount 20 of bonds which may be issued under this act, and provided further that if the issuance of any such 21 refunding notes results in any amount of such temporary notes outstanding at any one time in excess 22 of the amount of bonds which may be issued under this act, the proceeds of such refunding notes 23 shall be deposited in a separate fund established with the bank which is paying agent for the notes 24 being refunded. Pending their use to pay the notes being refunded, monies in the fund shall be 25 invested for the benefit of the regional school district by the paying agent at the direction of the 26 treasurer of the regional school district in any investment permitted under section 5. The monies in 27 the fund and any investments held as a part of the fund shall be held in trust and shall be applied 28 by the paying agent solely to the payment or prepayment of the principal of and interest on the 29 notes being refunded. Upon payment of all principal of and interest on the notes, any excess monies 30 in the fund shall be distributed to the regional school district committee. The regional school district 31 committee may pay the principal of and interest on notes in full from sources other than the issuance 32 of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the 33 regional school district committee’s authority to issue bonds or notes in anticipation of bonds under 34 this act shall continue provided that: (1) The regional school district committee passes a resolution LC006409 - Page 3 of 8 1 evidencing the regional school district committee’s intent to pay off the notes without extinguishing 2 the authority to issue bonds or notes; and (2) That the period from the date of an original note to 3 the maturity date of any other note shall not exceed five (5) years. 4 SECTION 4. Bonds and notes shall not be issued unless the Chariho Regional School 5 District has received a letter from the Rhode Island Department of Elementary and Secondary 6 Education confirming that the board of education has approved the facilities to be financed for 7 school housing aid and that the then-current reimbursement rate pursuant to §§ 16-7-35 through 8 16-7-47 of the general laws, as amended from time to time, or pursuant to any other law hereafter 9 enacted providing for funds to municipalities or regional school districts for school housing aid 10 purposes, is not less than sixty-one percent (61%) of debt service for eligible costs at the time of 11 issuance. Such school housing aid reimbursement rate or state share ratio may be increased through 12 the award of incentives pursuant to §§ 16-7-39 and 16-7-40 of the general laws at the completion 13 of each portion of the project. Failure of any portion of the project to be awarded state housing aid 14 at a reimbursement rate or share ratio higher than sixty one percent 61% shall not affect the 15 authority to issue the bonds under this act. 16 SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 17 of any authorization or issue of notes hereunder, the district treasurer, with the approval of the 18 regional school district committee, may, to the extent that bonds or notes may be issued hereunder, 19 apply funds in the treasury of the regional school district committee to the purposes specified in 20 section 2, such advances to be repaid without interest from the proceeds of bonds or notes 21 subsequently issued or from the proceeds of applicable federal or state assistance or from other 22 available funds. 23 SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 24 or state assistance, pending their expenditure, may be deposited or invested by the district treasurer 25 in demand deposits, time deposits or savings deposits in banks which are members of the Federal 26 Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of 27 America or by any agency or instrumentality thereof ( Government Obligations ) or as may be 28 provided in any other applicable law of the State of Rhode Island or resolution of the regional 29 school district committee or pursuant to an investment policy of the regional school district 30 committee. Any bank deposits or investments, other than investments in Government Obligations, 31 must either be directly insured by the Federal Deposit Insurance Corporation or be collateralized 32 by Government Obligations which have a value equal to or greater than one hundred two percent 33 (102%) of the deposit or investment amount. 34 SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall LC006409 - Page 4 of 8 1 be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 2 bonds or notes hereunder shall, in the discretion of the district treasurer, be applied to the cost of 3 preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to 4 the payment of the cost of the project, to the payment of the principal of or interest on bonds or 5 notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 6 marketing bonds or notes issued hereunder may also, in the discretion of the district treasurer, be 7 met from bond or note proceeds exclusive of accrued interest or from other monies available 8 therefor. If, upon completion of any of the project there shall be any balance of bond or note 9 proceeds remaining not required for the payment of the costs of such project, such funds shall be 10 applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the 11 extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or 12 investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues 13 of the regional school district from the member towns. In exercising any discretion under this 14 section, the treasurer shall be governed by any instructions adopted by resolution of the regional 15 school district committee. 16 SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 17 shall be obligatory on the regional school district committee in the same manner and to the same 18 extent as other debts are obligatory under the laws of this state on incorporated towns of this state 19 and they shall be excepted from the operation of § 45-12-2. Such debt evidenced by said bonds or 20 notes shall not be construed at any time to form a part of the debt of any individual town which is 21 a member of the regional school district for the purpose of ascertaining the borrowing capacity of 22 such town, nor shall said debt contracted by the regional school district in any way apply to the 23 operation of § 45-12-2 of the general laws, as amended, with respect to any member town. The 24 regional school district shall annually appropriate a sum sufficient to pay the principal and interest 25 coming due within the year on bonds and notes issued hereunder until such bonds and notes and 26 the interest thereon are paid in full. 27 SECTION 9. Any bonds or notes issued under the provisions of this act, if properly 28 executed by officers of the regional school district in office on the date of execution, shall be valid 29 and binding according to their terms notwithstanding that before the delivery thereof and payment 30 therefor any or all of such officers shall for any reason have ceased to hold office. 31 SECTION 10. The regional school district, acting by resolution of its regional school 32 district committee, is authorized to apply for, contract for and expend any federal or state advances 33 or other grants or assistance which may be available for the purposes of this act, and any such 34 expenditures may be in addition to other monies provided in this act. To the extent of any LC006409 - Page 5 of 8 1 inconsistency between any law of this state and any applicable federal law or regulation, the latter 2 shall prevail. Federal and state advances, with interest where applicable, whether contracted for 3 prior to or after the effective date of this act, may be repaid as project costs under section 2. 4 SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 5 of any governmental agency or the taking of any proceedings or the happening of any conditions 6 except as specifically required by this act for such issue. In carrying out any portion of the project 7 financed, in whole or in part, under this act, including where applicable the condemnation of any 8 land or interest in land, and in the levy and collection of assessments or other charges permitted by 9 law on account of any such project, all action shall be taken which is necessary to meet 10 constitutional requirements whether or not such action is otherwise required by statute; but the 11 validity of bonds and notes issued hereunder shall in no way depend upon the validity or occurrence 12 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 the election on November 3, 2026, which 18 election is subject to the provisions of Title 17 of the general laws. The question shall be submitted 19 in substantially the following form: Shall an Act passed at the 2026 Session of the general 20 assembly entitled, ‘AN ACT AUTHORIZING THE CHARIHO REGIONAL SCHOOL 21 DISTRICT TO FINANCE THE CONSTRUCTION, FURNISHING AND EQUIPPING OF AN 22 ELEMENTARY SCHOOL SERVING THE TOWNS OF CHARLESTOWN, RICHMOND AND 23 HOPKINTON, CONSISTING OF ONE OR MORE BUILDINGS ON A SINGLE CAMPUS, 24 AND IMPROVEMENTS AT THE SWITCH ROAD CAMPUS INCLUDING, BUT NOT 25 LIMITED TO, COSTS OF LAND ACQUISITION, DEMOLITION, DESIGN, HEALTH AND 26 SAFETY PROJECTS, PLAYGROUNDS, LANDSCAPING, PAVING, AND ALL EXPENSES 27 INCIDENTAL THERETO, BY THE ISSUANCE OF NOT MORE THAN $116,000,000 BONDS 28 AND/OR NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A 29 REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 61% AT THE 30 TIME OF ISSUANCE, WHICH RATE OR RATIO MAY INCREASE TO 65% AT PROJECT 31 COMPLETION’ be approved? The form of ballot shall also include the following explanation: 32 The school facilities shall be constructed so as to provide safe, energy efficient and cost-effective 33 schools in accordance with Northeast Collaborative for High Performance Schools standards to 34 reduce long-term operating costs and support healthy learning environments for students and staff. LC006409 - Page 6 of 8 1 The warning for the election shall contain the question to be submitted together with the explanation 2 set forth above. From the time the election is warned and until it is held, it shall be the duty of the 3 town clerks of the respective towns of Charlestown, Richmond and Hopkinton to keep a copy of 4 the act available at their offices for public inspection, but the validity of the election shall not be 5 affected by this requirement. To the extent of any inconsistency between this act and the home rule 6 charter of any member town, this act shall prevail. 7 SECTION 14. This section and section 13 shall take effect upon the passage of this act. 8 The remainder of this act shall take effect upon the approval of this act by a majority of the electors 9 in the regional school district voting on the question at the election prescribed by the foregoing 10 section. ======== LC006409 ======== LC006409 - 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 AN ELEMENTARY SCHOOL SERVING THE TOWNS OF CHARLESTOWN, RICHMOND AND HOPKINTON, CONSISTING OF ONE OR MORE BUILDINGS ON A SINGLE CAMPUS, AND IMPROVEMENTS AT THE SWITCH ROAD CAMPUS INCLUDING, BUT NOT LIMITED TO, COSTS OF LAND ACQUISITION, DEMOLITION, DESIGN, HEALTH AND SAFETY PROJECTS, PLAYGROUNDS, LANDSCAPING, PAVING, AND ALL EXPENSES INCIDENTAL THERETO, BY THE ISSUANCE OF NOT MORE THAN $116,000,000 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 65% AT PROJECT COMPLETION *** 1 This act would authorize the Chariho Regional School District to finance the construction, 2 furnishing and equipping of an elementary school serving the towns of Charlestown, Richmond 3 and Hopkinton, consisting of one or more buildings on a single campus, and improvements at the 4 Switch Road Campus including, but not limited to, costs of land acquisition, demolition, design, 5 health and safety projects, playgrounds, landscaping, paving and all expenses incidental thereto by 6 the issuance of not more than $116,000,000 bonds and/or notes therefor, subject to approval of 7 State School Housing Aid at a reimbursement rate of not less than 61%, which rate or ratio may 8 increase to 65% at project completion. 9 Sections 13 and 14 would take effect upon passage. The remainder of the act would take 10 effect upon approval of the act by a majority of the electors in in the regional school district. ======== LC006409 ======== LC006409 - Page 8 of 8