2016 -- H 8054

========

LC005627

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

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:

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

     SECTION 2. This act shall take effect upon passage.

========

LC005627

========

 

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

STUDY OF CONSOLIDATION

***

1

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

2

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

3

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

4

enactment, on or before January 1, 2017.

5

     This act would take effect upon passage.

========

LC005627

========

 

LC005627 - Page 2 of 2