It is enacted by the General Assembly as follows:

SECTION 1. Section 45-19-19 of the General Laws in Chapter 45-19 entitled "Relief of Injured and Deceased Fire Fighters and Police Officers" is hereby amended to read as follows:

{ADD 45-19-19. City and town ordinances providing for retirement of sick or injured police officers or fire fighters. -- ADD} The city or town councils of the various cities and towns may provide, by ordinance {ADD or through collective bargaining ADD} , for the retirement of the personnel of their police and fire departments who have been on leave of absence from their employment due to sickness contracted or injuries sustained in the performance of their duties, provided, however, that no such ordinance shall be contrary to any pension cost of living increase or escalator clause in a collective bargaining agreement, and provided, further, however, no such ordinance shall provide for a disability retirement allowance of less than sixty-six and two-thirds percent (66 2/3%) of a retiree's annual salary at the time of retirement nor more than one hundred percent (100%) of a retiree's annual salary.

SECTION 2. This act shall take effect upon passage and shall be retroactive.