The bill presented is an amendment to Local Acts Chapters 106 and 107 of 2021, which relate to school construction and financing in the city of Central Falls. The amendment addresses the use of premium generated from the sale of bonds or notes issued by the Rhode Island Health and Educational Building Corporation, which was not specified in the original acts. The bill clarifies that any premium received from the sale of bonds or notes shall be used for project costs associated with the Central Falls School Project and shall not reduce the principal amount of the bonds or notes.

The bill also reaffirms the General Assembly's approval for the issuance of bonds or notes to finance the Central Falls School Project up to $144,000,000 plus any original issue premium. It outlines that the State, through the general treasurer, may execute the necessary Financing Agreement and other agreements to effectuate the purposes of the act. The bonds will be special obligations of the Corporation, payable from funds received under the Financing Agreement and other revenues, and will not constitute indebtedness of the State or any of its subdivisions. The total debt service on the bonds is estimated to average $9,400,000 annually, with a total aggregate of $281,000,000 at an average interest rate of approximately 5% over a 30-year maturity. The authority for the State to incur these obligations will expire within five years of the passage of this act if the financing transaction is not executed prior to that date. The act will take effect upon passage.