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HB 8621

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, DEMOLITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, REPAIR, ALTERATION, FURNISHING AND EQUIPPING OF PUBLIC BUILDINGS IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $2,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR

2026 Regular Session Introduced by Jackie Baginski and 7 co-sponsors

Cranston can issue up to $2,000,000 in general obligation bonds to fund public-building projects, but this authority only takes effect if approved by voters in 2026.

06/26/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · HB 8621

Summary of HB 8621 (Rhode Island, 2026)

Purpose and intent

  • Authorizes the City of Cranston to finance public-building projects through general obligation (GO) bonds and related notes.
  • Cap on financing: not more than $2,000,000 in GO bonds/notes.
  • Projects covered include acquisition, demolition, construction, improvement, renovation, repair, alteration, furnishing, and equipping of public buildings in Cranston.
  • The measure requires voter approval at the 2026 general election (or aCity-approved special election) to take effect, with Sections 12–13 taking effect upon passage and the remainder contingent on the election outcome.

Key provisions and changes

  • Section 1: Cranston may issue up to $2,000,000 in GO bonds/notes. Bond maturities: principal installments begin within 5 years and mature within 30 years. Bond types may include zero-coupon, capital appreciation, serial, or term bonds, or combinations. Principal appreciation post-issuance is treated as interest for debt-limit purposes.
  • Section 2: Bonds must be signed by the city director of finance and the mayor. Proceeds may fund: (1) the listed public-building projects; (2) principal or interest on temporary notes; (3) repayment of advances; (4) issuance costs; (5) capitalized interest. Purchasers are not liable for proper use of proceeds. Proceeds and applicable assistance are deemed appropriated for these purposes. Bonds may be consolidated with other Cranston bonds, but proceeds must still be used for the stated purposes. Compliance with federal tax and securities laws is authorized, including Rule 15c2-12 disclosures.
  • Section 3: The city council may issue anticipation notes (interim financing) in line with bond issuance or anticipated aid. Original notes may not exceed bond limits; notes are payable within 5 years and may be renewed with similar limits.
  • Section 4: The city treasurer may advance funds in anticipation of bond/note issuance, to be repaid later without interest from bond proceeds or eligible aid.
  • Section 5: Proceeds may be deposited or invested in permitted instruments (FDIC-insured banks, U.S. government or agency securities, etc.) per state law and city investment policy.
  • Section 6: Interest and net investment earnings may be used to cover issuance costs, project costs, or debt service. Any remaining bond proceeds can be applied to debt service or, per federal law, added to property tax revenues in certain respects.
  • Section 7: Bonds/notes are city debts, but not counted toward the city’s constitutional debt limit. The city must annually appropriate funds to pay annual debt service; if not, taxes may be levied to cover it.
  • Section 8: Bonds/notes remain valid notwithstanding changes in officeholders.
  • Section 9: The city may apply for federal/state aid; federal law prevails in case of conflict.
  • Section 10: Bonds/notes may be issued without external approvals beyond this act; required legally to meet constitutional requirements for projects.
  • Section 11: Any unused authority to issue bonds/notes may be extinguished after seven years without further legislative action.
  • Section 12: Election language and process for voter approval at the 2026 general election (or a designated special election). The form of the question is specified, and the city must make the act available for public inspection until the election.
  • Section 13: Sections 12 and 13 take effect on passage; the remainder of the act takes effect upon majority approval at the election.

Who/what is affected

  • Geographic focus: City of Cranston, Rhode Island.
  • Financial instruments: General obligation bonds and notes up to $2,000,000.
  • Projects affected: Public buildings within Cranston (acquisition, demolition, construction, improvement, renovation, repair, alteration, furnishing, and equipping).
  • Stakeholders: Cranston city government (mayor, director of finance, city council), Cranston taxpayers (through ad valorem taxation if needed to cover debt service), potential bond purchasers/investors, and recipients of any federal/state aid.

Procedural and timeline aspects

  • The bill requires voter approval at the November 3, 2026 general election (or a city-approved special election) to become effective beyond Sections 12–13.
  • If approved, sections detailing bond authority and related provisions become active; otherwise, the act would not authorize Cranston to issue the bonds.
  • The authority to issue up to $2,000,000 in GO bonds may be extinguished seven years after the act’s effective date if not exercised.
  • The act provides a structured framework for selling, repaying, and managing the bonds, including audit, disclosure, and investing provisions consistent with state and federal requirements.

This summary emphasizes the bill’s core aim: enabling Cranston to finance specific public-building projects up to $2 million via GO bonds, contingent on voter approval, with detailed debt management and funding mechanics.

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

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