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HB 8300

AN ACT AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $25,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

2026 Regular Session Introduced by Karen Alzate and 2 co-sponsors

Authorizes Central Falls to issue up to 25 million in bonds/notes to construct, renovate, equip and improve city schools and facilities, with standard debt management rules.

06/12/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · HB 8300

Summary of HB 8300 (Rhode Island, 2026 Session)

Title: AN ACT AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $25,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

Jurisdiction: Rhode Island
Session: 2026
Introduced: March 13, 2026
Sponsor: Representatives Giraldo, Alzate, Voas
Co-sponsors: Karen Alzate, Joshua Giraldo, Brandon Voas
Committee: House Finance

1) Purpose and Intent

  • This bill authorizes the City of Central Falls to issue up to $25,000,000 in bonds, notes, or other evidences of indebtedness to finance construction, renovation, improvement, alteration, repair, furnishing, and equipping of city schools and related facilities.
  • It serves as an enabling act to empower the city to borrow for school-related capital projects, building upon prior authority already granted by voters.

2) Key Provisions and Changes

  • Debt Authority:
    • The city may issue up to $25,000,000 in bonds or notes (and related evidences of indebtedness) for the stated school purposes.
    • The total authorized debt under this act is in addition to any previously granted authority; the city may issue bonds in various forms (serial, term, zero-coupon, capital appreciation, etc.), and may combine several debt instruments.
    • The first principal payment (for serial bonds) or sinking fund installments (for term bonds) must occur no later than five years after issue, with final payment no later than 30 years after issue.
    • Principal appreciation (growth in bond value after issuance) may be treated as interest for debt-limit purposes; only the original principal counts toward the debt limit.
  • Financing and Issuance:
    • Bonds must be signed by the city’s director of finance and the mayor.
    • Issuance details (maturity, interest, denominations, sale method) are determined by the city council or the signing officers.
    • The city may enter financing agreements with:
    • Rhode Island Health and Educational Building Corporation (RIHEBC) under specified chapters; and/or
    • Rhode Island Infrastructure Bank (RIIB) under specified chapters.
    • The city can elect to have these external financing agreements govern the bonds to the extent of any inconsistencies.
  • Use of Proceeds:
    • Proceeds, excluding accrued interest, must be used for: 1) Construction, renovation, improvement, alteration, repair, furnishing, and equipping of schools and school facilities in Central Falls and related costs. 2) Payment of principal or interest on temporary notes under section 3. 3) Repayment of advances under section 4. 4) Issuance-related costs. 5) Payment of capitalized interest during construction.
  • Project Administration:
    • The central city school building committee will manage project contracts and related work.
    • Proceeds and other funds may be deemed appropriated for the stated purposes without additional action beyond this act.
    • Bonds may be consolidated with other Central Falls bonds, but proceeds must be used for the stated purposes.
  • Interim Financing and Refunding:
    • The city council may authorize interim notes in anticipation of bonds or aid, with limits:
    • Original notes in anticipation of bonds cannot exceed the authorized bond amount.
    • Notes anticipated to federal/state aid cannot exceed estimated available aid.
    • Temporary notes must mature within five years; refinancing rules limit outstanding notes to no more than 200% of the authorized bond amount and impose trust provisions if refinancing occurs.
    • The city may refinance or redeem notes using other funds or new notes, subject to conditions ensuring ongoing authority remains intact.
  • Funding and Investments:
    • While awaiting expenditure, bond proceeds may be deposited or invested in FDIC-insured banks, U.S. obligations, or as allowed by state law and resolutions.
    • Accrued interest is applied to the first interest payment; premiums may be used for issuance costs, project costs, debt service, or added to revenues.
    • Earnings from investments may be used for additional project costs, debt service, or capitalized as revenues for tax purposes.
  • Debt Status and Tax/Disclosure Compliance:
    • Bonds/notes are obligations of the city and are exempt from certain debt-issuing constraints; annual appropriation of debt service is required, with a provision to levy ad valorem taxes without rate/amount limits if necessary.
    • Bonds and notes are valid even if officers signing them leave office.
    • The city must comply with federal tax and securities laws (including continuing disclosure obligations) for bond issues.
  • State and Federal Funding:
    • The city may apply for or contract for federal/state advances or other grants; such funding may be used in addition to the act’s monies.
    • In case of conflict, federal laws prevail over state law.
  • Effect and Expiration:
    • The act is an enabling statute; it reflects prior voter approval (November 5, 2024 election) for bond issuance.
    • The act takes effect upon passage.
    • Public Act references from 2025 are superseded by this act for the City of Central Falls.

3) Who/What Would Be Affected

  • City of Central Falls:
    • Authorized to issue up to $25 million in bonds/notes for school projects.
    • May engage with RIHEBC and RIIB for financing arrangements.
    • Subject to annual debt service payments and ad valorem tax authority if needed.
  • Schools and School Facilities:
    • Projects eligible for construction, renovation, improvements, alterations, repairs, furnishings, and equipment funded by the bond proceeds.
  • Contractors, Vendors, and Building Committee:
    • The city school building committee administers contracts for the projects funded.
  • Bondholders and Investors:
    • Holders of the city’s bonds/notes; subject to the city’s repayment and disclosure requirements.

4) Procedural and Timeline Aspects

  • Approval and Timing:
    • Voters previously approved the general authority (Nov. 5, 2024); the act takes effect upon passage.
  • Term and Maturity:
    • Debt may mature within 30 years; first principal installment within five years.
  • Refinancing Rules:
    • Temporary notes can be refunded; overall outstanding notes cannot exceed 200% of the authorized bond amount without safeguards.
  • Compliance:
    • The act requires adherence to state and federal securities/tax laws and continuing disclosure requirements.
  • Sunset/Extinguishment:
    • Unissued bond authority may be extinguished by city council resolution after seven years from approval date, if not used.

Overall, HB 8300 provides Central Falls a structured framework to issue up to $25 million in debt to modernize and equip its schools, with flexibility to partner with state-supported financing programs and to manage debt with standard capital-financing mechanisms. It maintains safeguards on debt limits, repayment, and project oversight.

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

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