Provides that the Interlocal Risk Management trust would be subject to the department of business regulation and the attorney general conducting investigations of trust practices in the areas of health insurance and workers' compensation insurance.
Impact
The bill is expected to provide a structured framework for municipalities to manage risks collectively through self-insurance and shared resources. This could lead to increased efficiency in procuring insurance and managing claims, ultimately benefiting local governments that participate. Additionally, the proposed tax exemptions and the ability to contract for extended periods without needing elector approval may also streamline risk management processes for municipalities.
Summary
Bill S2444 aims to amend the laws regarding the establishment and regulation of Interlocal Risk Management corporations by municipal entities in Rhode Island. It allows cities, towns, school committees, and other governmental bodies to jointly establish these corporations, facilitating pooling of risks and insurance coverage. The bill outlines procedures for creating these corporations, their powers, and exemptions from certain taxes to enhance the financial viability of insurance programs provided to member municipalities.
Contention
However, one notable point of contention in discussions surrounding S2444 is the nature of oversight. While the bill proposes that the corporations will not be deemed traditional insurance companies—hence exempt from many insurance regulations—it does subject them to oversight by the department of business regulation and the attorney general. Critics may view this lack of traditional regulation as a potential risk, questioning the balance between flexibility for municipalities and necessary safeguards for public funds.
Creates new $100 assessment for convictions of certain sexual offenses to fund counseling for victims and their families; establishes Sexual Offender Victim Counseling Fund.