2016 -- S 2529

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LC005147

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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

     Introduced By: Senators Goodwin, Ruggerio, Goldin, Ciccone, and Metts

     Date Introduced: February 25, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-12-33 of the General Laws in Chapter 45-12 entitled

"Indebtedness of Towns and Cities" is hereby amended to read as follows:

     45-12-33. Borrowing for road and bridge, infrastructure, and school building

projects. -- (a) (1) In addition to other authority previously granted, during calendar year 2014

years 2014 through 2016, a city or town may authorize the issuance of bonds, notes, or other

evidences of indebtedness to evidence loans from the municipal road and bridge revolving fund

administered by the Rhode Island clean water finance agency in accordance with chapter 18 of

title 24.

      (2) In addition to other authority previously granted, from July 1, 2015 to June 30, 2016,

a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to

evidence loans from the efficient buildings fund administered by the Rhode Island clean water

finance agency infrastructure bank in accordance with chapter 12.2 of title 46 of the general laws

or the school building authority capital fund administered by the Rhode Island health and

educational building corporation in accordance with chapter 38.2 of title 45.

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

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

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

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

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

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

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

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

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

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

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

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

contrary.

     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 extend the authority of cities and towns for calendar years 2015 and 2016

to issue bonds, notes or other evidence of indebtedness to evidence loans from the municipal road

and bridge revolving fund.

     This act would take effect upon passage.

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LC005147

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