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S3355
2026 -- S 3355
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LC006579
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
AUTHORIZING THE CITY OF CRANSTON TO ISSUE NOT TO EXCEED $25,000,000
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS TO FINANCE THE PURCHASE AND/OR ACQUISITION OF LAND AND
BUILDINGS, CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION,
REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL
FACILITIES THROUGHOUT THE CITY
Introduced By:
Senators Patalano, Gallo, Vargas, and LaMountain
Date Introduced:
June 05, 2026
Referred To:
Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
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SECTION 1. The city of Cranston is hereby authorized, in addition to authority previously
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granted, to issue bonds and other evidences of indebtedness (hereinafter “bonds”) up to an amount
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not exceeding twenty-five million dollars ($25,000,000) from time to time under its corporate name
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and seal or a facsimile of such seal; provided, however, that bonds shall not be issued unless the
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conditions of section 2 hereof as to the level of state aid are met. The bonds of each issue may be
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issued in the form of serial bonds or term bonds or a combination thereof and shall be payable
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either by maturity of principal in the case of serial bonds or by mandatory sinking fund installments
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in the case of term bonds, in annual installments of principal, the first installment to be not later
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than five (5) years and the last installment not later than thirty (30) years after the date of the bonds.
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All such bonds of a particular issue may be issued in the form of zero coupon bonds, capital
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appreciation bonds, serial bonds or term bonds or a combination thereof. The amount of principal
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appreciation each year on any bonds, after the date of original issuance, shall not be considered to
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be principal indebtedness for the purposes of any constitutional, charter or statutory debt limit or
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any other limitation. The appreciation of principal after the date of original issue shall be considered
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interest. Only the original principal amount shall be counted in determining the principal amount
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so issued and any interest component shall be disregarded.
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SECTION 2. The city may be eligible for school housing aid reimbursement on debt
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service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from
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proceeds of bonds issued by the State of Rhode Island (the “state”), from the Rhode Island
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department of education (“RIDE”) or from the Rhode Island school building authority.
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SECTION 3. The bonds shall be signed by the director of finance and by the manual or
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facsimile signature of the mayor and be issued and sold in such amounts as the city council may
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determine by resolution or order. The manner of sale, denominations, maturities, interest rates and
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other terms, conditions and details of any bonds or notes issued under this act may be fixed by the
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proceedings of the city council authorizing the issue or by separate resolution or order of the city
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council or, to the extent provisions for these matters are not so made, they may be fixed by the
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officers authorized to sign the bonds or notes. Notwithstanding anything contained in this act to
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the contrary, the city may enter into financing agreements with the Rhode Island Health and
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Educational Building Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and,
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with respect to bonds or notes issued in connection with such financing agreements, if any, the city
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may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds or
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notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent
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herewith. In addition, the city may enter into financing agreements with the Rhode Island
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infrastructure bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to bonds
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or notes issued in connection with such financing agreements, if any, the city may elect to have the
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provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder
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to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may
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be fixed by the proceedings of the city council authorizing such issuance or by separate resolution
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or order of the city council, or, to the extent provisions for these matters are not so made, they may
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be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the sale
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of the bonds shall be delivered to the director of finance, and such proceeds, exclusive of premiums
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and accrued interest, shall be expended: (1) For the purchase and/or acquisition of land and
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buildings, construction, renovation, improvement, alteration, repair, landscaping, furnishing and
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equipping of schools and school facilities throughout the city of Cranston and all costs related
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thereto (the “projects”); (2) In payment of the principal of or interest on temporary notes issued
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under section 4; (3) In repayment of advances under section 5; (4) In payment of related costs of
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issuance of any bonds or notes; and/or (5) In payment of capitalized interest during construction of
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the projects. No purchaser of any bonds or notes under this act shall be in any way responsible for
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the proper application of the proceeds derived from the sale thereof. 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 7 and 10 shall be deemed appropriated for the purposes of this act without further
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action than that required by this act. The bonds authorized by this act may be consolidated for the
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purpose of issuance and sale with any other bonds of the city heretofore or hereafter authorized;
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provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds
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authorized by this act shall be expended for the purposes set forth above.
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SECTION 4. The city council may by resolution or order authorize the issuance from time
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to time of interest bearing or discounted notes in anticipation of the issue of bonds under section 3
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or in anticipation of the receipt of federal or state aid for the purposes of this act. The amount of
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original notes issued in anticipation of bonds may not exceed the amount of bonds which may be
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issued under this act and the amount of original notes issued in anticipation of federal or state aid
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may not exceed the amount of available federal or state aid as estimated by the director of finance.
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Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the
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director of finance and the mayor and shall be payable within five (5) years from their respective
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dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid
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from time to time by the issue of other notes hereunder, provided the period from the date of an
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original note to the maturity of any note issued to renew or pay the same debt or the interest thereon
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shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this
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section may be refunded prior to the maturity of the notes by the issuance of additional temporary
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notes; provided that, no such refunding shall result in any amount of such temporary notes
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outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds which
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may be issued under this act; and provided, further, that if the issuance of any such refunding notes
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results in any amount of such temporary notes outstanding at any one time in excess of the amount
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of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited
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in a separate fund established with the bank which is the paying agent for the notes being refunded.
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Pending their use to pay the notes being refunded, monies in the fund shall be invested for the
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benefit of the city by the paying agent at the direction of the director of finance in any investment
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permitted under section 6. The monies in the fund and any investments held as a part of the fund
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shall be held in trust and shall be applied by the paying agent solely to the payment or prepayment
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of the principal of and interest on the notes being refunded. Upon payment of all principal of and
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interest on the notes, any excess monies in the fund shall be distributed to the city. The city may
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pay the principal of and interest on notes in full from other than the issuance of refunding notes
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prior to the issuance of bonds pursuant to section 1 hereof. In such case, the city's authority to issue
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bonds or notes in anticipation of bonds under this act shall continue; provided that: (1) The city
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council passes a resolution or order evidencing the city's intent to pay off the notes without
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extinguishing the authority to issue bonds or notes; and (2) That the period from the date of an
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original note to the maturity date of any other note shall not exceed five (5) years.
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SECTION 5. 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 director of finance, with the approval of the
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city council may, to the extent that bonds or notes may be issued hereunder, apply funds in the
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general treasury of the city to the purposes specified in section 3, such advances to be repaid without
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interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable
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federal or state assistance or from other available funds.
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SECTION 6. 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 director of
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finance, in demand deposits, time deposits or savings deposits in banks which are members of the
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Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States
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of America or by any agency or instrumentality thereof or as may be provided in any other
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applicable law of the State of Rhode Island or resolution or order of the city council or pursuant to
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an investment policy of the city.
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SECTION 7. 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, to the extent permitted by applicable federal laws, any net earnings
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or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the
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director of finance, be applied to the cost of preparing, issuing, and marketing bonds or notes
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hereunder to the extent not otherwise provided, to the payment of the cost of the projects, to the
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payment of the principal of or interest on bonds or notes issued hereunder, to the revenues of the
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city and dealt with as part of the revenues of the city from property taxes to the extent permitted by
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federal law, or to any one or more of the foregoing. The cost of preparing, issuing, and marketing
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bonds or notes hereunder may also, in the discretion of the director of finance, be met from bond
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or note proceeds exclusive of premium and accrued interest or from other monies available therefor.
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Any balance of bond or note proceeds remaining after payment of the cost of the projects and the
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cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the payment
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of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by
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applicable federal laws, any earnings or net profit realized from the deposit or investment of funds
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hereunder may, upon receipt, be added to and dealt with as part of the revenues of the city from
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property taxes. In exercising any discretion under this section, the director of finance shall be
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governed by any instructions adopted by resolution or order of the city council.
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SECTION 8. All bonds and notes issued under this act and the debt evidenced hereby shall
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be obligatory on the city 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 § 45-12-2 and any provision of the city
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charter. No such obligation shall at any time be included in the debt of the city for the purpose of
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ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the
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principal and interest coming due within the year on bonds and notes issued hereunder to the extent
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that monies 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 provisions of law to the contrary, all taxable property in the city shall be
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subject to ad valorem taxation by the city without limitation as to rate or amount.
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SECTION 9. Any bonds or notes issued under the provisions of this act, if properly
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executed by the officers of the city 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 10. The city, acting by resolution or order of its city council is authorized to
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apply for, contract for and expend any federal or state advances or other grants of assistance which
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may be available for the purposes of this act, and any such expenditures may be in addition to other
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monies 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 a cost of the projects under section 3.
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SECTION 11. 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.
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SECTION 12. The director of finance and the mayor, on behalf of the city are hereby
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authorized to execute such instruments, documents or other papers as either of them deem necessary
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or desirable to carry out the intent of this act and are also authorized to take all actions and execute
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all documents necessary to comply with federal tax and securities laws, which documents or
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agreements may have a term coextensive with the maturity of the bonds authorized hereby,
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including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute
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and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes
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in the form as shall be deemed advisable by such officers in order to comply with the Rule.
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SECTION 13. All or any portion of the authorized but unissued authority to issue bonds
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and notes under this act may be extinguished by resolution or order of the city council, without
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further action by the general 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 city at the general election to be held on November 3, 2026 or, if so determined by the city
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council, at a special city-wide election, other than a primary, held on a date to be determined by
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resolution or order of the city council. The question shall be submitted in substantially the following
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form: "Shall an act passed at the 2026 session of the general assembly entitled ‘AN ACT
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AUTHORIZING THE CITY OF CRANSTON TO ISSUE NOT TO EXCEED $25,000,000
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GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS
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TO FINANCE THE PURCHASE AND/OR ACQUISITION OF LAND AND BUILDINGS,
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CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR,
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LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL
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FACILITIES THROUGHOUT THE CITY’ be approved?" and the warning for the election shall
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contain the question to be submitted. From the time the election is warned and until it is held, it
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shall be the duty of the city clerk to keep a copy of the act available at the clerk's office for public
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inspection, but the validity of the election shall not be affected by this requirement. To the extent
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of any inconsistency between this act and the city charter or any law of special applicability to the
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city, this act shall prevail.
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SECTION 15. 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 aid reimbursement pursuant to § 16-7-44
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unless the school projects described herein have been approved by RIDE.
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SECTION 16. This section and sections 14 and 15 shall take effect upon passage. The
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remainder of this act shall take effect upon the approval of this act by a majority of those voting on
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the question at the election prescribed by section 14.
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EXPLANATION
OF
A N A C T
AUTHORIZING THE CITY OF CRANSTON TO ISSUE NOT TO EXCEED $25,000,000
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS TO FINANCE THE PURCHASE AND/OR ACQUISITION OF LAND AND
BUILDINGS, CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION,
REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL
FACILITIES THROUGHOUT THE CITY
***
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This act would authorize the city of Cranston to issue not more than $25,000,000 general
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obligation bonds, notes and other evidences of indebtedness to finance the purchase and/or
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acquisition of land and buildings, construction, renovation, improvement, alteration, repair,
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landscaping, furnishing and equipping of schools and school facilities throughout the city of
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Cranston and all costs related thereto.
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This act would constitute an enabling act of the general assembly that is required pursuant
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to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under this act for school
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projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44 unless the school
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projects described herein have been approved by the Rhode Island department of education
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("RIDE").
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Sections 14, 15 and 16 would take effect upon passage. The remainder of the act would
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take effect upon approval of the question provided for in section 14.
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