Rhode Island 2024 Regular Session

Rhode Island Senate Bill S3046

Introduced
5/3/24  
Refer
5/3/24  
Report Pass
5/7/24  
Engrossed
5/14/24  
Refer
5/15/24  
Report Pass
5/28/24  
Enrolled
6/4/24  

Caption

Adds the town of Warren to those towns and cities authorized to issue bonds to finance the uninsured portion of a settlement arising out of litigation against the town or city.

Impact

By enabling Warren to issue bonds for legal settlements, Bill S3046 facilitates greater financial flexibility for local governments in managing unexpected legal costs. The act is designed to prevent municipalities from facing financial distress due to substantial court judgments, which could hinder their operations and ability to provide services. The provision allows towns to issue bonds up to 10% of their municipal budget to ensure they can cover these liabilities without imposing an immediate financial burden on taxpayers.

Summary

Bill S3046 is an act that amends the existing legislation concerning the indebtedness of towns and cities in Rhode Island. The primary purpose of this bill is to authorize the town of Warren, along with Coventry and Middletown, to issue bonds or other evidences of indebtedness to cover the uninsured portion of court judgments or settlements. This provision specifically excludes judgments pertaining to pension obligations. With this new authorization, Warren would now be able to manage financial liabilities that arise from legal settlements more effectively.

Contention

While the bill aims to provide necessary tools for local governance, discussions around its implications may include concerns over the potential for increasing municipal debt. Some critics may argue that allowing municipalities to incur more debt without direct voter approval could lead to irresponsible financial practices. Additionally, the specification excluding pension-related judgments could raise questions about how towns will address pension liabilities that remain uncovered, leading to ongoing financial vulnerabilities.

Companion Bills

No companion bills found.

Previously Filed As

RI S1070

Authorizing The Town Of Lincoln To Issue Not To Exceed $14,000,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Development And Construction Of A New Town-wide Centralized Rescue Station And The Furnishing And Equipping Thereof And All Costs Related Thereto

RI H6453

Authorizing The Town Of Lincoln To Issue Not To Exceed $14,000,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Development And Construction Of A New Town-wide Centralized Rescue Station And The Furnishing And Equipping Thereof And All Costs Related Thereto

RI S1076

Authorizing The Town Of North Kingstown To Issue Not More Than $222,460,000 Of Bond And Notes Of Which

RI H6429

Authorizing The Town Of North Kingstown To Issue Not More Than $222,460,000 Of Bond And Notes Of Which

RI S1075

Authorizing The Town Of North Kingstown To Issue Not More Than $25,000,000 Bonds And Notes To Finance An Indoor Recreation Center/emergency Shelter

RI H6427

Authorizing The Town Of North Kingstown To Issue Not More Than $25,000,000 Bonds And Notes To Finance An Indoor Recreation Center/emergency Shelter

RI S0981

Authorizing The Town Of East Greenwich To Finance The Acquisition, Construction, Improvement, Renovation, Alteration, Furnishing And Equipping Of Public Schools And School Facilities In The Town And All Expenses Incident Thereto Including, But Not Limited To, Costs Of Design, Demolition, Athletic Fields, Landscaping, Parking And Costs Of Financing And To Issue Not More Than $180,000,000 Bonds And/or Notes Therefor

RI H6376

Authorizing The Town Of East Greenwich To Finance The Acquisition, Construction, Improvement, Renovation, Alteration, Furnishing And Equipping Of Public Schools And School Facilities In The Town And All Expenses Incident Thereto Including, But Not Limited To, Costs Of Design, Demolition, Athletic Fields, Landscaping, Parking And Costs Of Financing And To Issue Not More Than $180,000,000 Bonds And/or Notes Therefor

RI H6296

Authorizing The Town Of Coventry To Issue Not More Than $25,000,000 Bonds And Notes To Finance Construction, Renovation, Rehabilitation, Repair, Improvement, Furnishing And/or Equipping Of And/or Additions To Schools And School Facilities Throughout The Town, Subject To Approval Of State School Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 49.2 % For Expenditures Eligible For Reimbursement

RI S0993

Authorizing The Town Of Coventry To Issue Not More Than $25,000,000 Bonds And Notes To Finance Construction, Renovation, Rehabilitation, Repair, Improvement, Furnishing And/or Equipping Of And/or Additions To Schools And School Facilities Throughout The Town, Subject To Approval Of State School Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 49.2 % For Expenditures Eligible For Reimbursement

Similar Bills

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HI HB1643

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CA SB434

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HI SB185

Relating To Indebtedness To The State.

HI HB164

Relating To Indebtedness To The State.

HI SB2448

Relating To Indebtedness To The State.

CA SCA3

Local government financing: public libraries: voter approval.

CA ACA6

School facilities: bonded indebtedness: vote requirement.