2014 -- S 2399

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LC004651

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES

     

     Introduced By: Senators DaPonte, Goodwin, Nesselbush, Satchell, and Bates

     Date Introduced: February 12, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 45-12 of the General Laws entitled "Indebtedness of Towns and

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Cities" is hereby amended by adding thereto the following section:

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     45-12-33. Borrowing for road and bridge projects financed through the "municipal

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road and bridge revolving fund. -- (a) A city or town may authorize the issuance of bonds,

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notes, or other evidences of indebtedness to evidence loans from the municipal road and bridge

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revolving fund administered by the Rhode Island clean water finance agency in accordance with

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chapter 24-18 of the general laws; provided, however, that the outstanding principal amount, in

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aggregate, shall not exceed five percent (5%) of the total amount of the city or town's most

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recently adopted municipal budget.

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     (b) These bonds, notes, or other evidences of indebtedness are subject to the maximum

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aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.

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     (c) The denominations, maturities, interest rates, methods of sale, and other terms,

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conditions, and details of any bonds or notes issued under the provisions of this section may be

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fixed by resolution of the city or town council authorizing them, or if no provision is made in the

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resolution, by the treasurer or other officer authorized to issue the bonds, notes or evidences of

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indebtedness; provided, that the payment of principal shall be by sufficient annual payments that

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will extinguish the debt at maturity, the first of these annual payments to be made not later than

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three (3) years, and the last payment not later than twenty (20) years after the date of the bonds.

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     The bonds, notes, or other evidences of indebtedness may be issued under this section by

 

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any political subdivision without obtaining the approval of its electors, notwithstanding the

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provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the

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contrary.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES

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     This act would permit cities and towns to authorize, without charter or referendum

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approval, the issuance of bonds, notes or other evidences of indebtedness for road and bridge

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projects financed through the municipal road and bridge revolving fund established pursuant to

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chapter 24-18 of the general laws.

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     This act would take effect upon passage.

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