H 8593

2026 -- H 8593
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LC006519
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  STATE  OF  RHODE  ISLAND
  IN GENERAL ASSEMBLY
  JANUARY SESSION, A.D. 2026
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  AN ACT
 AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT
  AND REPLACEMENT OF ROAD SAFETY INFRASTRUCTURE AND TRAFFIC
   CONTROL DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE
  FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $2,500,000
BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM
  FOR THE TWO FISCAL YEARS 2028 AND 2029
  Introduced By: Representatives Messier, Stewart, Alzate, and Cruz
  Date Introduced: May 27, 2026
  Referred To: House Municipal Government & Housing
It is enacted by the General Assembly as follows:
1SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority previously
2 granted, to issue bonds (hereinafter “bonds”) up to an amount not exceeding two million five
3 hundred thousand dollars ($2,500,000) from time to time under its corporate name and seal or a
4 facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or term
5 bonds or a combination thereof and shall be payable either by maturity of principal in the case of
6 serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual
7 installments of principal, the first installment to be not later than three (3) years and the last
8 installment not later than thirty (30) years after the date of the bonds.
9SECTION 2. The bonds shall be signed by the city treasurer and by the manual or facsimile
10 signature of the mayor and be issued and sold in such amounts as the city council may determine
11 by resolution. The manner of sale, denominations, maturities, interest rates and other terms,
12 conditions and details of any bonds or notes issued under this act may be fixed by the proceedings
13 of the city council authorizing the issue or by separate resolution of the city council or, to the extent
14 provisions for these matters are not so made, they may be fixed by the officers authorized to sign
15 the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the city
16 treasurer, and such proceeds, exclusive of premiums and accrued interest, shall be expended: (1)
1 For the improvement and replacement of road safety infrastructure and traffic control devices and
2 all costs related thereto (the “project”); (2) In payment of the principal of or interest on temporary
3 notes issued under section 3; (3) In repayment of advances under section 4; (4) In payment of
4 related costs of issuance of any bonds or notes; and/or (5) In payment of funded interest and
5 payment of capitalized interest during construction of the project. No purchaser of any bonds or
6 notes under this act shall be in any way responsible for the proper application of the proceeds
7 derived from the sale thereof. The proceeds of bonds or notes issued under this act, any applicable
8 federal or state assistance and the other monies referred to in sections 6 and 9 shall be deemed
9 appropriated for the purposes of this act without further action than that required by this act.
10SECTION 3. The city council may by resolution authorize the issuance from time to time
11 of interest bearing or discounted notes in anticipation of the issue of bonds under section 2 or in
12 anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original
13 notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued
14 under this act and the amount of original notes issued in anticipation of federal or state aid may not
15 exceed the amount of available federal or state aid as estimated by the city treasurer. Temporary
16 notes issued hereunder shall be signed by the manual or facsimile signatures of the city treasurer
17 and the mayor and shall be payable within five (5) years from their respective dates, but the
18 principal of and interest on notes issued for a shorter period may be renewed or paid from time to
19 time by the issue of other notes hereunder, provided the period from the date of an original note to
20 the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed
21 five (5) years. Any temporary notes in anticipation of bonds issued under this section may be
22 refunded prior to the maturity of the notes by the issuance of additional temporary notes; provided
23 that, no such refunding shall result in any amount of such temporary notes outstanding at any one
24 time in excess of two hundred percent (200%) of the amount of bonds which may be issued under
25 this act; and provided, further, that if the issuance of any such refunding notes results in any amount
26 of such temporary notes outstanding at any one time in excess of the amount of bonds which may
27 be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund
28 established with the bank which is paying agent for the notes being refunded. Pending their use to
29 pay the notes being refunded, monies in the fund shall be invested for the benefit of the city by the
30 paying agent at the direction of the city treasurer in any investment permitted under section 5. The
31 monies in the fund and any investments held as a part of the fund shall be held in trust and shall be
32 applied by the paying agent solely to the payment or prepayment of the principal of and interest on
33 the notes being refunded. Upon payment of all principal of and interest on the notes, any excess
34 monies in the fund shall be distributed to the city. The city may pay the principal of and interest on
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1 notes in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant
2 to section 1 hereof. In such case, the city's authority to issue bonds or notes in anticipation of bonds
3 under this act shall continue provided that: (1) The city council passes a resolution evidencing the
4 city's intent to pay off the notes without extinguishing the authority to issue bonds or notes; and (2)
5 That the period from the date of an original note to the maturity date of any other note shall not
6 exceed five (5) years. Section 5-106 of the city charter shall not apply to the issue of notes in
7 anticipation of bonds.
8SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu
9 of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city
10 council may, to the extent that bonds or notes may be issued hereunder, apply funds in the general
11 treasury of the city to the purposes specified in section 2, such advances to be repaid without interest
12 from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal
13 or state assistance or from other available funds.
14SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal
15 or state assistance, pending their expenditure may be deposited or invested by the city treasurer, in
16 demand deposits, time deposits or savings deposits in banks which are members of the Federal
17 Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of
18 America or by any agency or instrumentality thereof or as may be provided in any other applicable
19 law of the State of Rhode Island or resolution of the city council or pursuant to an investment policy
20 of the city.
21SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall
22 be applied to the payment of the first interest due thereon. Any premiums arising from the sale of
23 bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net earnings
24 or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the
25 city treasurer, be applied to the cost of preparing, issuing, and marketing bonds or notes hereunder
26 to the extent not otherwise provided, to the payment of the cost of the project, to the payment of
27 the principal of or interest on bonds or notes issued hereunder, to the revenues of the city and dealt
28 with as part of the revenues of the city from property taxes to the extent permitted by federal law,
29 or to any one or more of the foregoing. The cost of preparing, issuing, and marketing bonds or notes
30 hereunder may also, in the discretion of the city treasurer, be met from bond or note proceeds
31 exclusive of premium and accrued interest or from other monies available therefor. Any balance of
32 bond or note proceeds remaining after payment of the cost of the projects and the cost of preparing,
33 issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal of
34 or interest on bonds or notes issued hereunder. To the extent permitted by applicable federal laws,
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1 any earnings or net profit realized from the deposit or investment of funds hereunder may, upon
2 receipt, be added to and dealt with as part of the revenues of the city from property taxes. In
3 exercising any discretion under this section, the city treasurer shall be governed by any instructions
4 adopted by resolution of the city council. Any balance of bond or note proceeds remaining after
5 completion of the project shall be subject to section 5-109 of the city charter.
6SECTION 7. All bonds and notes issued under this act and the debt evidenced hereby shall
7 be obligatory on the city in the same manner and to the same extent as other debts lawfully
8 contracted by it and shall be excepted from the operation of § 45-12-2 and any provision of the city
9 charter. No such obligation shall at any time be included in the debt of the city for the purpose of
10 ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the
11 principal and interest coming due within the year on bonds and notes issued hereunder to the extent
12 that monies therefor are not otherwise provided. If such sum is not appropriated, it shall
13 nevertheless be added to the annual tax levy. In order to provide such sum in each year and
14 notwithstanding any provisions of law to the contrary, all taxable property in the city shall be
15 subject to ad valorem taxation by the city without limitation as to rate or amount.
16SECTION 8. Any bonds or notes issued under the provisions of this act, if properly
17 executed by the officers of the city in office on the date of execution, shall be valid and binding
18 according to their terms notwithstanding that before the delivery thereof and payment therefor any
19 or all of such officers shall for any reason have ceased to hold office.
20SECTION 9. The city, acting by resolution of its city council is authorized to apply for,
21 contract for and expend any federal or state advances or other grants of assistance which may be
22 available for the purposes of this act, and any such expenditures may be in addition to other monies
23 provided in this act. To the extent of any inconsistency between any law of this state and any
24 applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest
25 where applicable, whether contracted for prior to or after the effective date of this act, may be
26 repaid as a cost of the project under section 2.
27SECTION 10. Bonds and notes may be issued under this act without obtaining the approval
28 of any governmental agency or the taking of any proceedings or the happening of any conditions
29 except as specifically required by this act for such issue. In carrying out any project financed in
30 whole or in part under this act, including where applicable the condemnation of any land or interest
31 in land, and in the levy and collection of assessments or other charges permitted by law on account
32 of any such project, all action shall be taken which is necessary to meet constitutional requirements
33 whether or not such action is otherwise required by statute, but the validity of bonds and notes
34 issued hereunder shall in no way depend upon the validity or occurrence of such action. Without
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1 limiting the generality of the foregoing, the validity of bonds and notes issued hereunder shall in
2 no way be affected by section 2-308 of the city charter and section 4-1602 of the city code of
3 ordinances, and the purposes of this act shall be deemed to constitute a single project under article
4 V of the city charter.
5SECTION 11. The city treasurer and the mayor, on behalf of the city are hereby authorized
6 to execute such instruments, documents or other papers as either of the foregoing deem necessary
7 or desirable to carry out the intent of this act and are also authorized to take all actions and execute
8 all documents necessary to comply with federal tax and securities laws, which documents or
9 agreements may have a term coextensive with the maturity of the bonds authorized hereby,
10 including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute
11 and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes
12 in the form as shall be deemed advisable by such officers in order to comply with the Rule.
13SECTION 12. All or any portion of the authorized but unissued authority to issue bonds
14 and notes under this act may be extinguished by resolution of the city council, without further action
15 by the general assembly, seven (7) years after the effective date of this act.
16SECTION 13. The question of the approval of this act shall be submitted to the electors of
17 the city at the next general election but if a special city-wide election or special state election, in
18 either case other than a primary, is called for a date earlier than the date of such general election,
19 the mayor may direct that the question of the approval of this act be submitted at such special
20 election. The question shall be submitted in substantially the following form: "Shall an act passed
21 at the January 2026 session of the general assembly entitled 'AN ACT AUTHORIZING THE CITY
22 OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT AND REPLACEMENT OF
23 ROAD SAFETY INFRASTRUCTURE AND TRAFFIC CONTROL DEVICES IN THE CITY OF
24 PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE
25 OF NOT MORE THAN $2,500,000 BONDS AND NOTES THEREFOR, TO FUND THE
26 CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2028 AND 2029' be
27 approved?" and the warning for the election shall contain the question to be submitted. From the
28 time the election is warned and until it is held, it shall be the duty of the city clerk to keep a copy
29 of the act available at the clerk's office for public inspection, but the validity of the election shall
30 not be affected by this requirement. To the extent of any inconsistency between this act and the city
31 charter or any law of special applicability to the city, this act shall prevail.
32SECTION 14. This section and section 13 shall take effect upon the passage. The
33 remainder of this act shall take effect upon the approval of this act by a majority of those voting
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1 on the question at the election prescribed by the foregoing section.
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  EXPLANATION
  OF
  AN ACT
AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT
   AND REPLACEMENT OF ROAD SAFETY INFRASTRUCTURE AND TRAFFIC
  CONTROL DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE
 FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $2,500,000
    BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM
  FOR THE TWO FISCAL YEARS 2028 AND 2029
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1This act would authorize the city of Pawtucket to issue not more than $2,500,000 general
2 obligation bonds and notes to finance the improvement and replacement of road safety
3 infrastructure and traffic control devices in the city and all costs related thereto.
4Sections 13 and 14 would take effect upon passage. The remainder of the act would take
5 effect upon approval of the question provided for in section 13.
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