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S3358
2026 -- S 3358
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LC006580
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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 FINANCE THE ACQUISITION,
IMPROVEMENT, RENOVATION AND REPAIR OF FIRE AND PUBLIC SAFETY
EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL
OBLIGATION BONDS AND NOTES THEREFOR
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 empowered, in addition to authority previously
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granted, to issue bonds to an amount not exceeding Eight Million Dollars ($8,000,000) from time
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to time under its corporate name and seal or a facsimile of such seal. The bonds of each issue shall
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mature in annual installments of principal, the first installment to be not later than five (5) years
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and the last installment not later than thirty (30) years after the date of the bonds. All such bonds
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of a particular issue may be issued in the form of zero coupon bonds, capital appreciation bonds,
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serial bonds or term bonds or a combination thereof. Annual installments of principal may be
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provided for by maturity of principal in the case of serial bonds or by mandatory sinking fund
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installments in the case of term bonds. The amount of principal appreciation each year on any
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bonds, after the date of original issuance, shall not be considered to be principal indebtedness for
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the purposes of any constitutional, statutory, or charter debt limit or any other limitation. The
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appreciation of principal after the date of original issue shall be considered interest. Only the
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original principal amount shall be counted in determining the principal amount so issued and any
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interest component shall be disregarded.
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SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the
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director of finance and the mayor and shall be issued and sold in such amounts as the city council
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may authorize. The manner of sale, denominations, maturities, interest rates and other terms,
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conditions and details of any bonds or notes issued under this act may be fixed by the proceedings
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of the city council authorizing the issue or by separate order or resolution of the city council or, to
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the extent provisions for these matters are not so made, they may be fixed by the officers authorized
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to sign the bonds or notes. Interest coupons (if any) shall bear the facsimile signature of the director
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of finance. The proceeds derived from the sale of the bonds shall be delivered to the city treasurer,
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and such proceeds, exclusive of premiums and accrued interest, shall be expended (1) To finance
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the acquisition, improvement, renovation and repair of fire and public safety equipment in the city,
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or (2) In payment of the principal of or interest on temporary notes issued under section 3, or (3)
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In repayment of advances under section 4, (4) In payment of costs of issuance associated with the
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issuance of bonds or notes hereunder, and/or (5) To finance capitalized interest on the projects. No
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purchaser of any bonds or notes under this act shall be in any way responsible for the proper
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application of the proceeds derived from the sale thereof. The proceeds of bonds or notes issued
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under this act, any applicable federal or state assistance and the other monies referred to in sections
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6 and 9 shall be deemed appropriated for the purposes of this act without further action than that
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required by this act. In addition to such funds, there may be expended for the purposes of this act
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such other sums as may be appropriated therefor. The bonds authorized by this act may be
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consolidated for the purposes of issuance and sale with any other bonds of the city heretofore or
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hereafter authorized, provided that notwithstanding any such consolidation, the proceeds from the
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sale of the bonds authorized by this act shall be expended for the purposes set forth above. The
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director of finance and the mayor, on behalf of the city, are hereby authorized to execute such
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instruments, documents or other papers as either of them deem necessary or desirable to carry out
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the intent of this act and are also authorized to take all actions and execute all documents or
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agreements 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 and to execute and deliver a
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continuing disclosure agreement or certificate in connection with the bonds or notes.
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SECTION 3. The city council may, by order or resolution authorizing the bonds or by
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separate order or resolution, authorize the issuance from time to time of interest bearing or
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discounted notes in anticipation of the issue of bonds under section 2 or in anticipation of the receipt
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of federal or state aid for the purposes of this act. The amount of original notes issued in
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anticipation of bonds may not exceed the amount of bonds which may be issued under this act and
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the amount of original notes issued in anticipation of federal or state aid may not exceed the amount
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of available federal or state aid as estimated by the director of finance. Temporary notes issued
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hereunder shall be signed by the manual or facsimile signature of the director of finance and
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countersigned by the manual or facsimile signature of the mayor and shall be payable within five
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(5) years from their respective dates, but the principal of and interest on notes issued for a shorter
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period may be renewed or paid from time to time by the issue of other notes hereunder, provided
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the period from the date of an original note to the maturity of any note issued to renew or pay the
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same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in
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anticipation of bonds issued under this section may be refunded prior to the maturity of the notes
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by the issuance of additional temporary notes, provided that no such refunding shall result in any
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amount of such temporary notes outstanding at any one (1) time in excess of two hundred percent
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(200%) of the amount of bonds which may be issued under this act, and provided further that if the
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issuance of any such refunding notes results in any amount of such temporary notes outstanding at
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any one (1) time in excess of the amount of bonds which may be issued under this act, the proceeds
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of such refunding notes shall be deposited in a separate fund established with the bank which is
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paying agent for the notes being refunded. Pending their use to pay the notes being refunded,
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monies in the fund shall be invested for the benefit of the city by the paying agent at the direction
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of the city treasurer in any investment permitted under section 5. The monies in the fund and any
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investments held as a part of the fund shall be held in trust and shall be applied by the paying agent
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solely to the payment or prepayment of the principal of and interest on the notes being refunded.
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Upon payment of all principal of and interest on the notes, any excess monies in the fund shall be
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distributed to the city. The city may pay the principal of and interest on notes in full from sources
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other than the issuance of refunding notes prior to the issuance of bonds pursuant to section 1
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hereof. In such case, the city’s authority to issue bonds or notes in anticipation of bonds under this
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act shall continue provided that 1) the city council passes a resolution evidencing the city’s intent
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to pay off the notes without extinguishing the authority to issue bonds or notes and 2) that the period
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from the date of an original note to the maturity date of any other note shall not exceed five (5)
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years.
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SECTION 4. 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 city treasurer, with the approval of the city
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council given by an order or resolution, may, to the extent that bonds or notes may be issued
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hereunder, apply funds in the treasury of the city to the purposes specified in section 2, such
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advances to be repaid without interest from the proceeds of bonds or notes subsequently issued or
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from the proceeds of applicable federal or state assistance or from other available funds.
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SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal
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or state assistance, pending their expenditure, and may be deposited or invested by the city treasurer
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in demand deposits, time deposits or savings deposits in banks which are members of the Federal
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Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of
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America or by any agency or instrumentality thereof or as may be provided in any other applicable
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laws of the state of Rhode Island and by ordinance or resolution of the city council or pursuant to
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an investment policy of the city.
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SECTION 6. 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 net earnings or profits realized from
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the investment of funds hereunder and any premiums arising from the sale of bonds or notes
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hereunder shall, in the discretion of the city treasurer, be applied to the cost of preparing, issuing
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and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the
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cost of the projects or the cost of additional improvements coming within the description of the
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projects in section 2 of this act, to the payment of the principal of or interest on bonds or notes
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issued hereunder, or to any one (1) or more of the foregoing. The cost of preparing, issuing and
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marketing bonds or notes hereunder may also, in the discretion of the city treasurer, be met from
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bond or note proceeds exclusive of premium and accrued interest or from other monies available
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therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects
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and the cost of additional improvements coming within the description of the projects in section 2
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of this act, and the cost of preparing, issuing and marketing bonds or notes hereunder shall be
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applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the
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extent permitted by applicable federal law, any earnings or net profit realized from the deposit or
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investment of funds hereunder may upon receipt be added to and dealt with as part of the revenues
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of the city from property taxes. In exercising any discretion under this section, the city treasurer
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shall be governed by any instructions adopted by any order or resolution of the city council.
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SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby
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shall 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 section 45-12-2 of the general laws.
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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 provision of law to the contrary, all taxable property in the city shall be subject
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to ad valorem taxation by the city without limitation as to rate or amount.
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SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if
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any, if properly executed by the officers of the city in office on the date of execution, shall be valid
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and binding according to their terms notwithstanding that before the delivery thereof and payment
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therefor any or all of the officers shall for any reason have ceased to hold office.
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SECTION 9. The city, acting by order or resolution of its city council is authorized to apply
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for, contract for and expend any federal or state advances or other grants of assistance which may
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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 projects costs under section 2 of this act.
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SECTION 10. Bonds and notes may be issued under this act without obtaining approval of
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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 projects 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 projects, 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 or notes issued
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hereunder shall in no way depend upon the validity or occurrence of such action.
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SECTION 11. 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 12. 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
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following form: "Shall an act, passed at the 2026 session of the general assembly, entitled 'AN
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ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION,
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IMPROVEMENT, RENOVATION AND REPAIR OF FIRE AND PUBLIC SAFETY
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EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL
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OBLIGATION BONDS AND NOTES THEREFOR' be approved?" and the warning for the
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election shall contain the question to be submitted. From the time the election is warned and until
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it is held, it shall be the duty of the city clerk to keep a copy of the act available at the city clerk's
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office for public inspection, but the validity of the election shall not be affected by this requirement.
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To the extent of any inconsistency between this act and the city charter, this act shall prevail.
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SECTION 13. This section 13 and section 12 shall take effect upon passage. The remainder
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of this act shall take effect upon the approval of this act by a majority of those voting on the question
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at the election prescribed by section 12.
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EXPLANATION
OF
A N A C T
AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION,
IMPROVEMENT, RENOVATION AND REPAIR OF FIRE AND PUBLIC SAFETY
EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL
OBLIGATION BONDS AND NOTES THEREFOR
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This act would authorize the city of Cranston to issue not more than Eight Million Dollars
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($8,000,000) general obligation bonds and temporary notes for the acquisition, improvement,
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renovation and repair of fire and public safety equipment in the city.
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Sections 12 and 13 of the act would take effect upon passage. The remainder of the act
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would take effect upon approval by the electors of the city of the question provided for in section
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12.
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