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:

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

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

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

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

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

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

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

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title 24.

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

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

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

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

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

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

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

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

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and bridge revolving fund.

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     This act would take effect upon passage.

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