The bill under consideration allows the town of Coventry to issue bonds up to $25 million for school-related projects, provided that the Rhode Island Department of Education confirms a minimum state aid reimbursement rate of 49.2% for eligible costs. The bonds, which can be either serial or term, must be signed by the town's director of finance and the president of the town council, and their specifics can be determined by a town council resolution or by the authorized officers. The proceeds from the bonds are designated for the construction, renovation, rehabilitation, repair, improvement, furnishing, and equipping of schools and school facilities, and can also be used to pay off temporary notes or advances. The town council is permitted to issue temporary notes in anticipation of the bonds or state aid, with a maximum five-year payback period.

The bill further details the use of proceeds from the sale of bonds or notes, including covering project-related costs, issuance and marketing expenses, or principal and interest payments on the bonds or notes. The town's director of finance is given discretion over the application of these funds, following the town council's instructions, and is responsible for ensuring compliance with federal tax laws and other regulations. Obligations from the bonds are exempt from the town's borrowing capacity limits, and the town is required to make annual appropriations for principal and interest payments. The town can apply for and expend federal or state grants for the act's purposes, and the authority to issue bonds or notes will expire seven years after the act's effective date unless utilized by the town council. The bill's approval is subject to a special election to be held on October 3, 2023, with the act taking effect upon passage of section 15 and the remainder upon majority approval at the election. There are no insertions or deletions from current law mentioned in the summary provided.