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HB 8488

AN ACT AUTHORIZING THE TOWN OF PORTSMOUTH TO ISSUE NOT TO EXCEED $41,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, ADDITIONS, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE TOWN

2026 Regular Session Introduced by Terri Cortvriend and 2 co-sponsors

Portsmouth can issue up to 41 million in bonds to fund construction, renovation, and equipment for schools, with voter approval and financing options through RIHEBC or RIIB.

06/26/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · HB 8488

Summary of HB 8488 (Rhode Island, 2026) — Portsmouth School Facilities Bond Authorization

Purpose and Intent

  • This act authorizes the Town of Portsmouth to issue not more than $41,000,000 in general obligation bonds, notes, and other evidences of indebtedness.
  • The purpose is to finance construction, additions, renovation, improvement, alteration, repair, furnishing, and equipping of schools and school facilities throughout the town.
  • It is an enabling act, contingent on state processes and local election approval.

Key Provisions and Changes

  • Bond Authority Cap

    • Authorized issuance of up to $41,000,000 in aggregate bonds/notes.
    • Bond type flexibility: zero coupon bonds, capital appreciation bonds, serial bonds, term bonds, or a combination.
    • Payment structure: serial bonds repay principal by maturity; term bonds repay via mandatory serial redemption.

  • State Aid Eligibility

    • Bonds issued under this act may not be eligible for state housing aid reimbursement unless the affected school projects are approved by the Rhode Island Department of Education.

  • Issuance Details and Financing Flexibility

    • Bonds may be signed by the Portsmouth Town Council President, Town Administrator, and Director of Finance.
    • Sale terms, denominations, maturities, interest rates, and other details may be determined by town council proceedings or by the designated signing officers.
    • The town may use financing agreements with:
    • Rhode Island Health and Educational Building Corporation (RIHEBC) under relevant chapters; election to apply Chapter 38.1 provisions if inconsistent.
    • Rhode Island Infrastructure Bank (RIIB) under Chapter 12.2; election to apply its provisions if inconsistent.
    • Proceeds must be used for school projects, debt service (principal/interest) on temporary notes, capitalized interest, advances repayment, and issuance costs.
    • Purchasers have no liability for proper use of proceeds.

  • Temporary Notes and Anticipation Financing

    • The Town Council may issue temporary notes in anticipation of bonds or federal/state aid.
    • Limits on notes: original notes issued in anticipation cannot exceed the bond-issuable amount; notes anticipated to federal/state aid cannot exceed available aid.
    • Temporary notes have a five-year maximum maturity, with renewals allowed under specified conditions.
    • Refinancing rules limit outstanding temporary notes to 200% of the bond amount and set funds-in-trust provisions if refinancing would exceed this limit.

  • Use of Funds and Project Authority

    • Proceeds, along with applicable federal/state assistance, may be appropriated to:
    • Construct, renovate, repair, furnish, and equip schools/facilities.
    • Pay debt service on temporary notes.
    • Pay capitalized interest and related issuance costs.
    • The Town Administrator oversees project execution, with Town Council approval as required.
    • Proceeds may be combined with other Portsmouth bond issues, but must be expended for stated purposes.

  • Budget and Tax Implications

    • Bonds/notes are a general obligation of the town; they are not counted toward the town’s debt limit for borrowing capacity in the sense of § 45-12-2 but require annual appropriation for debt service.
    • If annual appropriation for debt service is not made, it must be added to the annual tax levy, and all taxable property may be subject to ad valorem taxation to satisfy debt service.

  • Election and Effective Dates

    • A local referendum is required to approve the act:
    • The question would be placed on the November 3, 2026 general election or a designated special election.
    • Sections 14-15 specify that Sections 14 and 15 (election provisions and operative/timing triggers) take effect upon enactment, while the remainder takes effect upon the local election approval.

Who or What Is Affected

  • Portsmouth Public Schools and Facilities
    • Potential construction, renovation, modernization, furnishing, and equipment across town schools and related facilities.
  • Taxpayers in Portsmouth
    • Potential property tax impact through annual debt service obligations if voter-approved and financed through bonds.
  • Financial Institutions/Financing Partners
    • Possible involvement with RIHEBC and RIIB via financing agreements and applicable statutory provisions.
  • State Education Oversight
    • Rhode Island Department of Education must approve eligible school projects for eligibility for state aid reimbursement.

Procedural and Timeline Aspects

  • Introduced April 29, 2026; referred to House Finance.
  • Local voter approval required at the November 2026 election (or a designated special election).
  • If approved, the act’s election-related provisions take effect immediately; the remainder of the act becomes operative upon voter approval.

This bill, if enacted, would enable Portsmouth to fund significant school infrastructure improvements via a structured bond program, with careful alignment to state oversight and financing options.

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

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