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HB 8527

AN ACT 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

2026 Regular Session Introduced by Megan Cotter and 2 co-sponsors

Authorizes up to $116 million in bonds for a new Charlestown-Richmond-Hopkinton elementary school and Switch Road improvements, tied to 61%+ state housing aid.

06/26/2026 Effective without Governor's signature
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Bill Summary · HB 8527

Overview

  • Bill: HB 8527
  • Session: 2026
  • Jurisdiction: Rhode Island
  • Topic: Authorizes the Chariho Regional School District to issue up to $116 million in bonds/notes to fund construction, furnishing, and equipping of an elementary school for Charlestown, Richmond, and Hopkinton, plus improvements at the Switch Road campus. State housing aid eligibility is required at a minimum reimbursement rate of 61% (potential to increase to 65% upon project completion). Election authority: to be approved by voters in November 2026.

Purpose and Intent

  • To authorize financing for a new elementary school facility serving the towns of Charlestown, Richmond, and Hopkinton, on a single campus (one or more buildings), and to authorize improvements at the Switch Road campus.
  • To ensure construction meets energy efficiency and high-performance school standards (Northeast Collaborative for High Performance Schools).
  • To obtain state housing aid (awarded as a reimbursement rate or state share) of at least 61% at the time of issuance, with potential increase to 65% at project completion.

Key Provisions and Changes

  • Debt Authority:
    • Authorizes issuance of general obligation bonds and/or notes up to $116,000,000.
    • Bonds may be serial, term, zero coupon, capital appreciation, or other structures; repayment period 5 to 30 years (first principal payment no later than 5 years after issue; last by 30 years).
    • Principal appreciation after issuance may be treated as interest for debt limit calculations; original principal is the basis for debt limit determinations.
  • Use of Proceeds:
    • Finances construction, furnishing, and equipping of the new elementary school, including land acquisition, demolition, design, health and safety projects, playgrounds, landscaping, paving, and related costs.
    • Proceeds may also cover costs of issuance, debt service on temporary notes, and financing of capitalized interest.
  • State Aid Requirements:
    • Bond issuance contingent on a Rhode Island Department of Elementary and Secondary Education (RIDE) letter confirming state housing aid at ≥61% of debt service for eligible costs at issuance.
    • The aid rate/share may increase to 65% upon project completion through incentives.
    • If a portion of the project does not receive ≥61% aid, it does not affect the authority to issue bonds.
  • Financial Management and Flexibility:
    • District may issue temporary notes in anticipation of bonds or aid, with rollover/renewal rules and caps on outstanding amounts.
    • Proceeds and aid may be invested in allowed instruments; collateral requirements and FDIC-insured deposits apply.
    • Earnings from investments may be added to district revenues.
    • District treasurer and chairperson authorized to execute documents to comply with tax and securities laws (including Rule 15c2-12 continuing disclosures).
  • Legal and Fiscal Framework:
    • Bonds/notes shall be obligations of the Chariho Regional School District, not the individual member towns.
    • Annual appropriation to cover debt service until repayment in full.
    • Debt authority can be extinguished by resolution seven years after the act’s effective date.
  • Election and Effective Date:
    • The question of approval to authorize bonds/notes to be put to voters in the November 3, 2026 election.
    • Form: Ballot would state the act’s purpose, bond amount cap ($116,000,000), and minimum state aid rate (61%, potentially increasing to 65%).
    • Sections 13-14 (procedural) take effect upon passage; remaining sections take effect upon voter approval in the regional district.

Who Would Be Affected

  • Chariho Regional School District: Authorized to issue up to $116 million in bonds/notes and to finance the designated school project.
  • Villages/Towns Served (Charlestown, Richmond, Hopkinton): Potential liability limits are not attributed to individual towns; debt is an obligation of the regional school district.
  • Students and Staff: Potential new elementary school facility and improved Switch Road campus, with emphasis on safety, energy efficiency, and healthy learning environments.
  • State Government (RIDE): Responsible for approving housing aid and determining reimbursement rates at issuance and completion.

Timing and Process

  • Introduction and referral: May 6, 2026.
  • Voter decision: At the November 3, 2026 election, subject to local election law.
  • Implementation: Contingent on voter approval and receipt of state housing aid approval; Sections 13-14 take effect at passage, the rest upon district approval.

Notes

  • The bill emphasizes adherence to high-performance school standards and long-term cost savings through energy efficiency.
  • It includes extensive provisions on bond structure, debt servicing, investment safeguards, and disclosure requirements.

Compiled from official sources — confirm details with the bill’s official record.

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