2024 -- S 3000 SUBSTITUTE A

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LC005870/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TOWNS AND CITIES -- SUBDIVISION OF LAND

     

     Introduced By: Senator Dawn M. Euer

     Date Introduced: April 16, 2024

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-23-46 of the General Laws in Chapter 45-23 entitled "Subdivision

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of Land" is hereby amended to read as follows:

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     45-23-46. General provisions — Construction and/or improvement guarantees.

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     (a) The local regulations shall require planning board approval of the permitting authority

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of agreements for the completion of all required public improvements prior to final plan approval

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in the form of (1) completion of actual construction of all improvements, (2) improvement

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guarantees, or (3) combination thereof.

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     (b) Where improvements are constructed without a financial guarantee, the work is to be

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completed prior to final approval. All construction shall be inspected by the appropriate town staff

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or agents in a timely manner and approved under the direction of the administrative officer and

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according to local regulations.

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     (c) Improvement guarantees shall be in an amount and with all necessary conditions to

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secure for the municipality the actual construction and complete installation of all the required

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improvements, within the period specified by the planning board permitting authority. The amount

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shall be based on actual cost estimates for all required public improvements and these estimates

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shall be reviewed and approved by the planning board permitting authority. The board permitting

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authority may fix the guarantee in a reasonable amount in excess of the estimated costs to anticipate

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for economic or construction conditions. Local regulations may include provisions for the review

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and/or upgrade of guarantees.

 

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     (d) The security shall be in the form forms of a financial instrument acceptable to the

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approving authority instruments set forth in local regulations and shall enable the municipality to

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gain timely access to the secured funds, for cause. The local regulations shall provide at least three

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(3) acceptable forms of financial security and the approving authority shall not limit the security to

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one specific form of the acceptable forms set forth in the local regulations.

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     (e) The local regulations shall establish procedures for the setting of improvement

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guarantee amounts, for inspections of improvements, for acceptance of improvements by the

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municipality and for the release of the improvement guarantees to the applicant. Procedures may

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include provisions for partial releases of the guarantees as stages of the improvements are

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completed, inspected and approved under the coordination of the administrative officer and

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reported to the planning board permitting authority.

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     (f) In the cases of developments and subdivisions which are being approved and

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constructed in phases, the planning board permitting authority shall specify improvement guarantee

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requirements related to each particular phase.

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     (g) The planning board permitting authority may also require maintenance guarantees to

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be provided for a one year period subsequent to completion, inspection and acceptance of the

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improvement(s) unless there are extenuating circumstances. Such maintenance guarantee shall not

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exceed ten (10%) percent of the original guarantee amount, or the original cost of the public

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improvements if no guarantee was required.

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     (h) Procedures for the acceptance of required improvements shall stipulate that all

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improvements, once inspected and approved, shall be accepted by the municipality or other

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appropriate municipal agency for maintenance and/or part of the municipal system.

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     (i) The municipality is granted the power to enforce the guarantees by all appropriate legal

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and equitable remedies.

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     SECTION 2. This act shall take effect on January 1, 2025.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- SUBDIVISION OF LAND

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     This act would provide amendments relative to the permitting authority of, and acceptable

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forms of financial security permissible for construction and/or improvement guarantees relating to

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the completion of required public improvements.

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     This act would take effect on January 1, 2025.

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