2021 -- H 6098

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LC001883

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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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, and Nardone

     Date Introduced: March 03, 2021

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

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

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

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     45-12-2.2. Consolidation of indebtedness -- Study.

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     The department of administration is directed to determine the feasibility of using the

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bonding authority and credit of the state to consolidate the bonded indebtedness of the towns and

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cities in order to reduce the amount paid by the towns and cities to service their bonded

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indebtedness. If the department of administration finds that such a plan is feasible, it shall present

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the plan to the general assembly, for its consideration and possible enactment, on or before January

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1, 2022. The plan shall include a provision which requires that any savings realized as a result of

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such consolidation shall be used to reduce the bonded indebtedness of any city or town receiving

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such savings.

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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--

STUDY OF CONSOLIDATION

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

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

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

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enactment, on or before January 1, 2022.

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     This act would take effect upon passage.

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