2016 -- H 8054

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LC005627

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TOWNS AND CITIES -- INDEBTEDNESS OF TOWNS AND CITIES--

STUDY OF CONSOLIDATION

     Introduced By: Representatives Morgan, Price, Giarrusso, Reilly, and Chippendale

     Date Introduced: April 07, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

     45-12-2.2. Consolidation of indebtedness -- Study. -- The department of administration

is directed to determine the feasibility of using the bonding authority and credit of the state to

consolidate the bonded indebtedness of the towns and cities in order to reduce the amount paid by

the towns and cities to service their bonded indebtedness. If the department of administration

finds that such a plan is feasible, it shall present the plan to the general assembly, for its

consideration and possible enactment, on or before January 1, 2017. The plan shall include a

provision which requires that any savings realized as a result of such consolidation shall be used

to reduce the bonded indebtedness of any city or town receiving such savings.

     SECTION 2. This act shall take effect upon passage.

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LC005627

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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--

STUDY OF CONSOLIDATION

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     This act would direct the department of administration to study using the bonding

authority of the state to consolidate the bonded indebtedness of the towns and cities, and if found

to be feasible to present a plan to the general assembly, for its consideration and possible

enactment, on or before January 1, 2017.

     This act would take effect upon passage.

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LC005627

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