| 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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