Chapter 053
2016 -- H 7551
Enacted 06/06/2016

A N   A C T
RELATING TO TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES

Introduced By: Representatives DeSimone, Palangio, Slater, and Carnevale
Date Introduced: February 10, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. Section 45-38.2-4 of the General Laws in Chapter 45-38.2 entitled "School
Building Authority Capital Fund" is hereby amended to read as follows:
     45-38.2-4. Payment of state funds. -- (a) Subject to the provisions of subsection (b),
upon the written request of the corporation, the general treasurer shall pay to the corporation,
from time to time, from the proceeds of any bonds or notes issued by the state for the purposes of
this chapter or funds otherwise lawfully payable to the corporation for the purposes of this
chapter, such amounts as shall have been appropriated or lawfully designated for the fund. All
amounts so paid shall be credited to the fund in addition to any other amounts credited or
expected to be credited to the fund.
      (b) The corporation and the state may enter into, execute, and deliver one or more
agreements setting forth or otherwise determining the terms, conditions, and procedures for, and
the amount, time, and manner of payment of, all amounts available from the state to the
corporation under this section.
      (c) The corporation, per order of the School Building Authority school building
authority capital fund, is authorized to grant a district or municipality its state share of an
approved project cost, pursuant to § 16-7-39 and 16-77.1-5. Construction pay-as-you-go grants
received from the school building authority capital fund shall not be considered a form of
indebtedness subject to the provisions of § 16-7-44.
     (d)(1) Notwithstanding the provisions of §§45-12-19 and 45-12-20, and notwithstanding
city or town charter provisions to the contrary, prior to July 1, 2016, no voter approval shall be
required for loans in any amount made to a city or town for the local education agency's share of
total project costs.
     (2) Notwithstanding the provisions of §§45-12-19 and 45-12-20, and notwithstanding
city or town charter provisions to the contrary, on or after July 1, 2016, up to five hundred
thousand dollars ($500,000) may be loaned to a city or town for the LEA local education
agency's share of total project costs without the requirement of voter approval.
      (e) Notwithstanding any provision to the contrary, the term of any bond, capital lease, or
other financing instrument shall not exceed the useful life of the project being financed.
     SECTION 2. This act shall take effect upon passage.
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LC004347
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