2015 -- S 0812

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LC002126

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TOWNS AND CITIES -- INTERLOCAL CONTRACTING, JOINT

ENTERPRISES AND SHARED SERVICES

     Introduced By: Senators DiPalma, Coyne, Ottiano, Sosnowski, and Lombardo

     Date Introduced: April 09, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 45-40.1-1, 45-40.1-3 and 45-40.1-4 of the General Laws in

Chapter 45-40.1 entitled "Interlocal Contracting and Joint Enterprises" are hereby amended to

read as follows:

     45-40.1-1. Legislative purpose. -- It is the purpose of this chapter to permit local

governmental units to make the most efficient use of their powers by enabling them to cooperate

with other localities on a basis of mutual advantage, and, thereby, to enter into agreements to

provide shared services, activities and facilities which any governmental unit is authorized by law

to perform and facilities in a manner, and pursuant to, forms of governmental organization that

will accord best with geographic, economic, population, and other factors influencing the needs

and development of local communities cities and towns.

     45-40.1-3. "Public agency" defined "Governmental units" defined. -- (a) For the

purposes of this chapter, the term "public agency" "governmental unit" means any political

subdivision of this state city, town, fire district, school district, and other taxing authority, and any

agency of the state government or of the United States, and any political subdivision city or town

of another state.

      (b) The term "state" means a state of the United States.

     45-40.1-4. Interlocal agreements. -- (a) Any power or powers, privileges, or authority,

exercised or capable of exercise by a public agency governmental unit of this state, as defined in

§ 45-40.1-3, may be exercised and enjoyed jointly with any other public agency governmental

unit of or any other state, or of the United States, and to the extent that laws of the other state or

of the United States permit the joint exercise or enjoyment. Any agency governmental unit or

agency of the state government, when acting jointly with any public agency other governmental

units may exercise and enjoy all of the powers, privileges, and authority conferred by this chapter

upon a public agency governmental unit.

      (b) (1) Any two (2) or more public agency governmental units may enter into agreements

with one another for joint or cooperative action pursuant to the provisions of this chapter.

      (2) Appropriate action by ordinance, resolution, or otherwise, pursuant to law of the

governing bodies of the participating public agencies governmental units, is necessary before any

agreement may enter into force.

      (c) Any agreement shall specify the following:

      (1) Its duration, if necessary. ;

      (2) The precise organization, composition, and nature of any separate legal or

administrative entity created by it, together with the powers delegated to it, provided the entity

may be legally created. ;

      (3) Its purpose or purposes. ;

      (4) The manner of financing the joint or cooperative undertaking, and of establishing and

maintaining a budget for it. ;

      (5) The permissible method or methods to be employed in accomplishing the partial or

complete termination of the agreement and for disposing of property upon partial or complete

termination. ;

     (6) Provide sufficient financial safeguards for all participants, including, but not limited

to: accurate and comprehensive records of services performed, costs incurred, and

reimbursements and contributions received; the performance of regular audits of such records;

and provisions for officers responsible for the agreement to give appropriate performance bonds.

The agreement shall also require that periodic financial statements be issued to all participants;

     (6)(7) Any other necessary and proper matters.

      (d) In the event that the agreement does not establish a separate legal entity to conduct

the joint or cooperative undertaking, the agreement shall, pursuant to the requirements of

subsections (c) (1)- (c) (6) (c)(1) through (c)(7) of this section, contain provisions for:

      (1) An administrator or a joint board responsible for administering the joint or

cooperative undertaking. In the case of a joint board, all public agencies governmental units party

to the agreement shall be represented.

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      (2) The manner of acquiring, holding, and disposing of real and personal property used

in the joint or cooperative undertaking.

      (e) No agreement made pursuant to this chapter relieves any public agency governmental

unit of any obligation or responsibility imposed upon it by law, except that with respect to the

actual and timely performance of it the obligation or responsibility by a joint board, or other legal

or administrative entity created by an agreement made under this chapter, the performance may

be offered in satisfaction of the obligation or responsibility.

      (f) Every agreement made under this chapter between a state agency or public agency of

any other state or of the United States shall, prior to and as a condition precedent to its entry into

force, be submitted to the attorney general who shall determine whether the agreement is in

proper form and in compliance with the laws of this state. The attorney general shall approve any

agreement submitted to him or her unless he or she finds that it does not meet the conditions

established by this chapter, and shall state, in writing, addressed to the governing bodies of the

state agencies or public agencies of other states concerned, the specific respects in which the

proposed agreement fails to meet the requirements of law. Failure of the attorney general to

disapprove an agreement submitted under this chapter within fifteen (15) days of its submission

constitutes approval of the agreement. Every agreement entered into between two (2) or more

governmental units, not inclusive of any agency of the state or of the United States, shall be

submitted to the city or town council or other governing body for approval. The termination of an

agreement made pursuant to this chapter shall require one year's notice of withdrawal by any

member to allow for budget and operations adjustments by the remaining members.

     SECTION 2. Sections 45-43-2, 45-43-3 and 45-43-5 of the General Laws in Chapter 45-

43 entitled "Regional Councils of Local Government" are hereby amended to read as follows:

     45-43-2. Membership. -- Membership of the council consists of three (3) representatives

from each city or town governmental unit entering into the agreement. The three (3) regular

members from each city or town governmental unit shall be appointed to the council by each

participating governmental unit. are as follows:

      (1) The chief executive or administrative head of the city or town.

      (2) The council president or designee of the city or town.

      (3) A third elected or appointed official in the city or town designated by the first two (2)

regular members.

     45-43-3. Powers. -- (a) The council has the power to:

      (1) Study area governmental problems common to two (2) or more members of the

council as it deems appropriate, including, but not limited to, matters affecting health, safety,

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welfare, education, economic conditions, and regional development;

      (2) Promote cooperative arrangements and coordinate action among its members; and

      (3) Make recommendations for review and action to the members and other public

agencies that perform functions within the region.

      (b) The council may, by appropriate action of the governing bodies of the member

governments governmental units, enter into an agreement to perform any service, activity or

undertaking which any member governmental unit is authorized by law to perform. For the term

of such agreement and subject to the terms thereof said council shall be authorized to perform

such service, activity or undertaking, and said council may designate a committee of its members

to oversee such performance, provided such committee membership, functions and duties are set

forth in the agreement exercise other powers that are exercised or capable of exercise by the

member governments and necessary or desirable for dealing with problems of mutual concern;

provided, that the exercise of power for the creation, construction, or operation of new regional

solid waste disposal facilities is contingent upon the approval of the solid waste management

corporation.

     45-43-5. Staff. -- The council may employ staff, and consult and retain experts, as it

deems necessary. The state department of administration may furnish research, secretarial, and

stenographic service to a council.

     SECTION 3. Chapter 45-43 of the General Laws entitled "Regional Councils of Local

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

     45-43-2.1. "Governmental units" defined. – (a) For the purposes of this chapter, the

term "governmental unit" means any city, town, fire district, school district, and other taxing

authority, and any agency of the state government or of the United States, and any city or town of

another state.

     (b) The term "state" means a state of the United States.

     SECTION 4. 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 -- INTERLOCAL CONTRACTING, JOINT

ENTERPRISES AND SHARED SERVICES

***

     This act would allow cities, towns, fire districts, school districts, and other taxing

authorities to enter into agreements to provide shared services, activities, and facilities which any

governmental unit is authorized by law to perform.

     This act would take effect upon passage.

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