2025 -- H 5962 | |
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LC001621 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2025 | |
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A N A C T | |
RELATING TO TOWNS AND CITIES -- INDEBTEDNESS OF TOWNS AND CITIES | |
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Introduced By: Representatives Santucci, Fascia, Nardone, Solomon, Place, | |
Date Introduced: February 28, 2025 | |
Referred To: House Municipal Government & Housing | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 45-12-22.4 of the General Laws in Chapter 45-12 entitled |
2 | "Indebtedness of Towns and Cities" is hereby amended to read as follows: |
3 | 45-12-22.4. Deficit, pension and other post-employment benefit financing — Approval |
4 | required. |
5 | (a) Except as provided in chapter 9 of this title, no municipality shall sell a long-term bond |
6 | in order to fund a deficit or to fund pension obligations or other post-employment benefits without |
7 | prior approval by the state auditor general and director of the state department of revenue. |
8 | (1) Any municipality or quasi-public agency that has not made its annual contribution to |
9 | its other post-employment benefits trust or if the trust is less than thirty-five percent (35%) funded, |
10 | shall file an annual report with the department of municipal finance setting forth: |
11 | (i) A plan to make its trust payment within three (3) years; or |
12 | (ii) A plan to get the trust funded to at least the thirty-five percent (35%) level within ten |
13 | (10) years. |
14 | (b) If any provision of this section or the application thereof shall for any reason be judged |
15 | invalid, that judgment shall not affect, impair or invalidate the remainder of the law, but shall be |
16 | confined in its effect to the provisions or application directly involved in the controversy giving |
17 | rise to the judgment. |
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1 | 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 | |
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1 | This act would require a municipality or quasi-public agency to file a report with the |
2 | department of municipal finance if it has not made its payment to its other post-employment |
3 | benefits trust fund or if it is less than thirty-five percent (35%) funded. |
4 | This act would take effect upon passage. |
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