reglab/statecodes huggingface dataset:
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-4.4. - Borrowing in payment of certain judgments.

§ 45-12-4.4. Borrowing in payment of certain judgments.
(a)
A city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to pay the uninsured portion of any court judgment or settlement, except any court judgment or settlement arising out of any pension obligation of a city or town; provided, however, that the outstanding principal amount, in aggregate, shall not exceed five percent (5%) of the total amount of the city or town’s most recently adopted municipal budget. Notwithstanding the aforementioned, the towns of Coventry and Middletown are authorized to issue bonds, notes, or other evidences of indebtedness to pay the uninsured portion of any court judgment or settlement, except any court judgment or settlement arising out of any pension obligation of a city or town; provided, however, that the outstanding principal amount, in aggregate, shall not exceed ten percent (10%) of the total amount of the applicable municipality’s most recently adopted municipal budget.
(b)
These bonds, notes, or other evidences of indebtedness are subject to the maximum aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.
(c)
The bonds, notes, or other evidences of indebtedness may be issued to pay a judgment or settlement or may be issued to pay or refund notes issued under § 45-12-4.1.
(d)
The denominations, maturities, interest rates, methods of sale, and other terms, conditions, and details of any bonds or notes issued under the provisions of this section may be fixed by the vote or resolution of the city or town council authorizing them, or if no provision is made in the vote or resolution, by the treasurer or other officer authorized to issue the bonds or notes or to hire the money; provided, that the payment of principal of bonds shall be by sufficient annual payments that will extinguish the debt at maturity, the first of these annual payments to be made not later than one year, and the last payment not later than fifteen (15) years after the date of the bonds.
(e)
The bonds, notes, or other evidences of indebtedness may be issued under this section by any political subdivision without obtaining the approval of its electors, notwithstanding the provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the contrary, unless the electors when assembled in a meeting are the local legislative body for the purpose of authorizing indebtedness of the political subdivision.
History of Section.
P.L. 1988, ch. 447, § 1; P.L. 1994, ch. 398, § 1; P.L. 1999, ch. 505, § 1; P.L. 2000, ch. 55, art. 19, § 8; P.L. 2012, ch. 119, § 1; P.L. 2012, ch. 127, § 1; P.L. 2013, ch. 2, § 1; P.L. 2013, ch. 10, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-4.5. - Relationship to charters.

§ 45-12-4.5. Relationship to charters.
Any city or town is authorized to issue debt by resolution under and in accordance with the procedures of §§ 45-12-4, 45-12-4.1, 45-12-4.2, 45-12-4.3, 45-12-4.4 and 45-12-5.2 notwithstanding any provision of its charter to the contrary.
History of Section.
P.L. 2007, ch. 252, § 2; P.L. 2007, ch. 292, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-5.1. - Callable bonds.

§ 45-12-5.1. Callable bonds.
(a)
Bonds issued by any cities, towns or other political subdivisions of this state may be issued subject to call and prepayment prior to their stated maturities at the option of the issuer. All, or less than all, of the bonds comprising an issue may be subject to call simultaneously or from time to time.
(b)
Every bond issued subject to prepayment shall indicate:
(1)
That the bond is subject to call and prepayment;
(2)
The time or times at which the bond may be prepaid;
(3)
The schedule of premiums, if any, which are payable; and
(4)
The time and type of notice which must be given by the issuer before the bond can be prepaid.
(c)
The coupons, if any, attached to the bonds shall, as appropriate, indicate that they may become void as a result of the bond being called for prepayment. Unless otherwise provided in the proceedings authorizing the issue of bonds, the officers of the city, town or other political subdivision authorized to sell the bonds shall determine whether the bonds shall be issued subject to call and prepayment, and if issued, the officers shall decide the details of these bonds. No bond shall be called for prepayment, unless the issuer has deposited with the paying agent or agents for the bond for prepayment a sufficient amount of cash, or securities issued by the United States of America, the state of Rhode Island, or its political subdivisions, with maturities and interest rates adequate to provide a sufficient amount of cash, to pay the bond in full on the date on which it is prepayable. The notice may state: (1) that it is conditioned on the deposit of moneys, in an amount necessary to effect the redemption with the paying agent or agents no later than the redemption date; and/or (2) that the city, town or political subdivision retains the right to rescind such notice on or prior to the scheduled redemption date, and such notice and optional redemption shall be of no effect if such monies are not so deposited or if the notice is rescinded. Bonds may be prepaid with the proceeds of refunding bonds as provided in the following section, or with other funds available for that purpose; and cities, towns and other political subdivisions may raise money by taxation for the purpose of prepaying bonds. For the purposes of this section “bond” shall include note. The powers conferred by this section may be used with regard to bonds authorized for any purpose by any general, special, or other law, including § 45-12-5.2.
History of Section.
P.L. 1977, ch. 37, § 1; P.L. 1986, ch. 110, § 2; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-5.3. - Debt maturity for United States Department of Agriculture/Rural Development bonds.

§ 45-12-5.3. Debt maturity for United States Department of Agriculture/Rural Development bonds.
Notwithstanding any contrary provisions of this chapter, or any other general or special law or provision of any municipal charter, bonds issued by a city or town which are purchased by the United States of America, acting through the United States Department of Agriculture/Rural Development, or any successor agency or department, shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual installments of principal, the first installment not later than five (5) years and the last installment not later than forty (40) years after the date of the bonds.
History of Section.
P.L. 1993, ch. 453, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-6. - Statutory bond authorizations construed as additional authority.

§ 45-12-6. Statutory bond authorizations construed as additional authority.
All acts enacted authorizing cities or towns to issue bonds shall be construed as granting authority in addition to, and not in substitution for, authority previously granted.
History of Section.
P.L. 1932, ch. 1880, § 1; G.L. 1938, ch. 329, § 19; G.L. 1956, § 45-12-6.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-7. - Sinking fund provisions construed as additions to general sinking fund.

§ 45-12-7. Sinking fund provisions construed as additions to general sinking fund.
Whenever in any general law, public law, act, or resolution of the general assembly, authority has been given to a city or town for the issuance of bonds, and provision has been made for the establishment of a sinking fund to extinguish the debt at its maturity, that provision shall be construed to mean an addition to the general sinking fund of the city or town for the redemption of the bonds of the respective city or town at their maturities as provided in this chapter.
History of Section.
P.L. 1935, ch. 2211, § 1; G.L. 1938, ch. 329, § 20; G.L. 1956, § 45-12-7.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-8. - Establishment of general sinking fund — Computation of payments to sinking fund.

§ 45-12-8. Establishment of general sinking fund — Computation of payments to sinking fund.
In lieu of establishing a separate sinking fund for each bond issue, a city or town may, by vote of the town council or city council, provide for the establishment of a general sinking fund, and thereafter the town treasurer or city treasurer shall annually, on the anniversary of the day of each issue of all outstanding sinking fund bonds of the respective city or town, pay to the sinking fund commission or deposit to the sinking fund for the redemption of those bonds, an amount sufficient to meet the sinking fund requirements of those bonds computed upon the basis that the moneys and investments of the general sinking fund earn an anticipated income of not exceeding four percent (4%) per annum compounded semiannually.
History of Section.
P.L. 1935, ch. 2211, § 2; G.L. 1938, ch. 329, § 21; G.L. 1956, § 45-12-8.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-9. - Retirement of bonds in sinking fund.

§ 45-12-9. Retirement of bonds in sinking fund.
Whenever a city or town has purchased any of its own outstanding bonds for investment in its sinking fund, the city or town may at the option of the sinking fund commission, if any, or by vote of the town council or city council, retire and permanently cancel the bonds, and upon that retirement all interest payments on the cancelled bonds shall cease.
History of Section.
P.L. 1935, ch. 2211, § 3; G.L. 1938, ch. 329, § 22; G.L. 1956, § 45-12-9.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-11. - Authority for issuance of indebtedness excess.

§ 45-12-11. Authority for issuance of indebtedness excess.
The state director of revenue may, upon petition by the city or town council, authorize the city or town to incur indebtedness in excess of the limit of three percent (3%) of the full assessed value of the taxable property within the city or town imposed by § 45-12-2 whenever the director determines that the sum appropriated by any city or town or the funds available are insufficient to pay the necessary expenses of the city or town. For this purpose the state director of revenue may require any information concerning the financial condition of the city or town that the director may deem necessary for the proper exercise of that authority.
History of Section.
G.L. 1896, ch. 26, § 22; P.L. 1902, ch. 953, § 1; G.L. 1909, ch. 46, § 22; P.L. 1920, ch. 1846, § 1; G.L. 1923, ch. 47, § 23; P.L. 1932, ch. 1944, § 2; P.L. 1933, ch. 2028, § 23; G.L. 1938, ch. 329, § 28; P.L. 1949, ch. 2331, § 1; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 45-12-11; P.L. 1958, ch. 104, § 1; P.L. 1973, ch. 240, § 2; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1; P.L. 2008, ch. 98, § 58; P.L. 2008, ch. 145, § 58.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-12. - City and town boards to authorize duplicate bonds.

§ 45-12-12. City and town boards to authorize duplicate bonds.
The mayors, city clerks, and city treasurers of every city, and the presidents of the town councils, the town clerks, and the town treasurers of every town, are hereby severally constituted boards, each referred to in §§ 45-12-13 and 45-12-14 as “the board,” to carry out the provisions of those sections.
History of Section.
G.L. 1938, ch. 329, § 37; P.L. 1939, ch. 668, § 2; G.L. 1956, § 45-12-12.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-13. - Repair or replacement of damaged bond or note.

§ 45-12-13. Repair or replacement of damaged bond or note.
Whenever the board is satisfied that any instrument or printed or written paper presented to it is in fact a valid bond or note of the city or town, but it is so damaged that its condition is as to hinder and prevent the owner or holder of a bond or note from making good delivery of the bond or note, the board may upon payment to it by the owner or holder of the bond or note, of a sum that it deems necessary to cover the actual expense involved, cause the damage to be repaired or remedied by requiring the proper officers of the city or town, to sign the bond or note in place of their damaged or destroyed signatures or those of their predecessors in office, to issue a duplicate bond or note, or to do whatever else the board may require of them to repair or remedy the damage. But no duplicate bond or note shall be issued except upon the surrender of the original, which shall be cancelled immediately, and the repaired or duplicate bond or note shall be treated in all respects as a valid obligation of the city or town, as the case may be. On every repaired or duplicate bond or note the city treasurer or town treasurer shall certify on the back that the bond or note has been repaired or issued under the provisions of this section and the certification shall be conclusive proof that the bond or note has been repaired or issued in accordance with the requirements of the board and that it is a valid obligation of the city or town, as the case may be, in accordance with its terms.
History of Section.
G.L. 1938, ch. 329, § 37; P.L. 1939, ch. 668, § 2; G.L. 1956, § 45-12-13.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-14. - Replacement of lost or destroyed bond or note — Bond to indemnify city or town.

§ 45-12-14. Replacement of lost or destroyed bond or note — Bond to indemnify city or town.
Whenever the board is satisfied that any bond or note of the city or town has been lost or destroyed, the board may upon payment to it by the owner or holder of the bond or note, of a sum that it deems necessary to cover the actual expense involved and under such regulations and with such restrictions that it may prescribe, order the city treasurer or town treasurer and/or other officers of the city or town that the board may designate to issue a duplicate of the bond or note, payable at the same time, bearing the same rate of interest as the lost or destroyed bond or note, and marked as to show the number, if known, and date of the original bond or note. But no duplicate shall be issued until the owner of the lost or destroyed bond or note gives to the city treasurer or town treasurer a bond in double the amount of the lost or destroyed bond or note and of the interest which would accrue until the principal is due and payable, with two (2) sufficient sureties, both residents of the state, or with a surety company authorized to do business in this state, approved by the board, conditioned to indemnify and save harmless the city or town from any claim or demand on account of the lost or destroyed bond or note.
History of Section.
G.L. 1938, ch. 329, § 37; P.L. 1939, ch. 668, § 2; G.L. 1956, § 45-12-14; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-15. - Contractual debts unimpaired.

§ 45-12-15. Contractual debts unimpaired.
Nothing in this chapter shall exempt a city or town from its liability to pay debts contracted for purposes for which it may lawfully expend money.
History of Section.
G.L. 1938, ch. 47, § 31; P.L. 1930, ch. 1617, § 3; G.L. 1938, ch. 329, § 35; G.L. 1956, § 45-12-15.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-16. - Interest rate.

§ 45-12-16. Interest rate.
Any provisions of general or special law enacted prior to February 21, 1970, which limit the rate of interest to be paid on any bonds or other evidences of indebtedness of a city, town, or other political subdivision are repealed.
History of Section.
G.L. 1956, § 45-12-16; R.P.L. 1957, ch. 4, § 1; P.L. 1960, ch. 30, § 1; G.L. 1965, § 45-12-16; P.L. 1970, ch. 13, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-17. - Debt previously approved.

§ 45-12-17. Debt previously approved.
Whenever the provisions of § 45-12-16 operate to repeal a limitation on the interest rate which may be paid on any issue of bonds or other evidences of indebtedness approved by the qualified voters of any city, town, or other political subdivision, no further approval of the issue of bonds or other evidences of indebtedness by the qualified voters shall be required, notwithstanding any provision of general or special law or charter.
History of Section.
R.P.L. 1957, ch. 4, § 2; G.L. 1956, § 45-12-17; P.L. 1960, ch. 30, § 1; P.L. 1970, ch. 13, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-18. - Bond anticipation notes.

§ 45-12-18. Bond anticipation notes.
A city or town, acting by resolution of its city council or town council, after approval of the issue of bonds by vote of the qualified electors of the city or town if approval is required, may authorize the issue from time to time of notes in anticipation of the issue of bonds authorized under § 45-12-2 or § 45-12-2.1. Notes issued under this section shall be payable within five (5) years from their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes under this section, provided the period from the date of an original note to the maturity of any note issued to renew or pay the same debt or the interest on that debt shall not exceed five (5) years. When debt is incurred under this section, the period within which the annual payments of principal of bonds must be made under § 45-12-5 shall be measured from the date of the original note or notes representing the debt, but the annual payments need not commence earlier than one year after the date of the bonds. The town or city may pay the principal of and interest on notes in full from other than the issuance of refunding notes prior to the issuance of bonds. In such case, the town’s or city’s authority to issue bonds or notes in anticipation of bonds under this act shall continue, provided that:
(1)
The town council or city council passes a resolution evidencing the town’s or city’s intent to pay off the notes without extinguishing the authority to issue bonds or notes; and
(2)
That the period from the date of an original note to other note shall not exceed five (5) years.
History of Section.
R.P.L. 1957, ch. 4, § 3; G.L. 1956, § 45-12-18; P.L. 1960, ch. 30, § 1; P.L. 1970, ch. 13, § 3; P.L. 1982, ch. 153, § 1; P.L. 1985, ch. 31, § 1; P.L. 1986, ch. 110, § 3; P.L. 1988, ch. 20, § 1; P.L. 1990, ch. 49, § 1; P.L. 1999, ch. 354, § 45; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-19. - Charter provisions as to referendum.

§ 45-12-19. Charter provisions as to referendum.
The charter of any city or town may provide that the issuance of bonds, notes or other evidences of indebtedness of the city or town be by ordinance or by resolution after the issuance of the bonds, notes or other evidences of indebtedness of the city or town have been authorized by general or special law. The charter may provide that the ordinance or resolution becomes effective only upon approval by a majority of electors voting thereon; provided, that the charter provision is inoperative and ineffective, and the ordinance or resolution becomes effective without approval by the electors of the city or town, whenever the general or special law which authorizes the issuance of the bonds, notes or other evidences of indebtedness provides substantially that the general or special law becomes effective upon acceptance or approval by the electors of the city or town; and provided, further, that the charter provision shall be operative and effective as to this ordinance or resolution only whenever the general or special law which authorizes the issuance of the bonds, notes or other evidences of indebtedness has become effective without acceptance or approval by the electors of the city or town, and contains no provision requiring the acceptance or approval of the electors of the city or town as a prerequisite to the issuance of the bonds, notes or other evidences of indebtedness of the city or town.
History of Section.
R.P.L. 1957, ch. 165, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-20. - Issuance of bonds authorized by law approved by electors.

§ 45-12-20. Issuance of bonds authorized by law approved by electors.
Whenever a general or special law which authorizes the issuance of bonds, notes or other evidences of indebtedness has become effective upon acceptance or approval by the electors of a city or town, such law shall be effective notwithstanding any failure or defect in the posting or notice of the election therefor as required by law, including the city or town charter, and the city or town may immediately issue bonds, notes or other evidences of indebtedness without further approval by the electors of the city or town, by ordinance or by resolution if required by the charters of the city or town, which ordinances or resolution shall become effective without approval by the electors of the city or town as ordinances or resolutions generally become effective under the charter of the city or town.
History of Section.
R.P.L. 1957, ch. 165, § 2; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-21. - Powers of financial town meeting not affected.

§ 45-12-21. Powers of financial town meeting not affected.
Sections 45-12-19 and 45-12-20 shall not apply in any way to the powers or authorities of any town exercised or exercisable in financial town meeting.
History of Section.
R.P.L. 1957, ch. 165, § 3.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.1. - Municipal deficits — Purpose.

§ 45-12-22.1. Municipal deficits — Purpose.
The purpose of §§ 45-12-22.1 — 45-12-22.5 are to ensure that municipalities and school districts monitor financial operations on an ongoing basis, execute a rapid response to budget problems, and maintain a balanced budget in compliance with § 44-35-10. It is the intent of the legislature to require that municipalities and school districts:
(1)
Prevent year-end deficits;
(2)
Immediately address potential deficits;
(3)
Immediately address actual year-end deficits; and
(4)
Stabilize municipal and school district finances.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.3. - Year-end deficits.

§ 45-12-22.3. Year-end deficits.
(a)
If, at the end of any fiscal year, the chief financial official determines, based on available data, that it is likely the city or town’s general fund or combined general fund and unrestricted school special revenue fund will incur a deficit, the municipality must notify the auditor general and the division of municipal finance within thirty (30) days and immediately develop a plan to eliminate the deficit. The plan shall provide for the elimination of the accumulated year-end deficit by annual appropriation, over no more than five (5) years, in equal or diminishing amounts. The plan shall indicate the necessary governmental approvals and procedures required, and shall include a legal opinion by municipal counsel that the proposed action is permissible under federal, state, and local law.
(b)
The plan to eliminate the year-end deficit shall be submitted to the state auditor general for approval. The state auditor general shall determine whether the plan reasonably insures elimination of the accumulated deficit in accordance with the law in a fiscally responsible manner. The state auditor general may rely on the written representations made by the municipality in the plan and will not be required to perform an audit. The judgment of the state auditor general in applying this standard shall be conclusive.
(c)
If the state auditor general determines the plan is insufficient and/or fails to adequately address the financial condition of the municipality, or if a plan is not submitted, then in such event, the state auditor general can petition the superior court for mandatory injunctive relief seeking to compel the municipality to submit a plan as required hereunder. The state auditor general shall also have standing to pursue the appropriate remedies identified in § 45-12-22.7.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2; P.L. 2011, ch. 151, art. 12, § 15.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.4. - Deficit, pension and other post-employment benefit financing — Approval required.

§ 45-12-22.4. Deficit, pension and other post-employment benefit financing — Approval required.
(a)
Except as provided in chapter 9 of this title, no municipality shall sell a long-term bond in order to fund a deficit or to fund pension obligations or other post-employment benefits without prior approval by the state auditor general and director of the state department of revenue.
(b)
If any provision of this section or the application thereof shall for any reason be judged invalid, that judgment shall not affect, impair or invalidate the remainder of the law, but shall be confined in its effect to the provisions or application directly involved in the controversy giving rise to the judgment.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2; P.L. 2008, ch. 98, § 58; P.L. 2008, ch. 145, § 58; P.L. 2011, ch. 269, § 1; P.L. 2011, ch. 277, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.5. - Unbudgeted expenditures.

§ 45-12-22.5. Unbudgeted expenditures.
A municipality shall not incur expenditures nor obligate the municipality to expend unbudgeted amounts in excess of one hundred thousand dollars ($100,000) without first notifying the city or town council of such proposed expenditure and identifying the source of funding. Further, a school committee or school department shall not incur accumulated unbudgeted expenditures or obligations in excess of one hundred thousand dollars ($100,000) without first notifying the chief financial officer of the municipality as to the proposed expenditure and identifying the source of funding. The financial officer shall include any such proposed expenditure in the monthly report required in § 45-12-22.2.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.6. - Cooperation of school committees.

§ 45-12-22.6. Cooperation of school committees.
School committees, boards, or regional school districts that are independent governmental entities within a municipality shall cooperate in providing to the chief financial officer all information needed to formulate the reports and the deficit elimination plan required under this chapter. The auditor general or the state director of revenue may petition the superior court to order the school committee or board to cooperate with the municipality and provide all information requested by the chief financial officer needed to formulate a plan hereunder. The director of revenue may also direct the state controller and general treasurer to withhold state aid to the school committee until the school committee or board cooperates in the formulation of a plan.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2; P.L. 2008, ch. 98, § 58; P.L. 2008, ch. 145, § 58.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-22.7. - Enforcement and remedies.

§ 45-12-22.7. Enforcement and remedies.
In the event that a municipality does not comply with the requirements of this law the state auditor general or the division of municipal finance through the director of revenue may elect any or all of the following remedies:
(1)
Petition the superior court for mandatory injunctive relief seeking compliance with the provisions of this section. The superior court shall make a finding of fact as to whether there has been compliance with the provisions of this section. As herein before stated, the approval or disapproval of a plan shall be conclusive upon the court in making its finding as to compliance.
(2)
In the event a municipality fails to provide a year-end deficit elimination plan under § 45-12-22.3, such noncompliance shall allow for the implementation of a budget review commission pursuant to § 45-9-5.
(3)
Withholding of state aid. In the event that the state director of revenue with the concurrence of the auditor general elect to withhold state aid, said amounts shall be placed in a special account within the general fund. At such time the municipality comes into compliance with the reporting requirements of this section, said funds shall be released to the municipality by order of the state director of revenue and state auditor general.
History of Section.
P.L. 2003, ch. 54, § 2; P.L. 2003, ch. 66, § 2; P.L. 2006, ch. 246, art. 38, § 18; P.L. 2010, ch. 24, § 2; P.L. 2010, ch. 27, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-23. - Tax exemption.

§ 45-12-23. Tax exemption.
The income from any bonds, notes, certificates, or other evidences of indebtedness issued by any city, town, or other political subdivision, under the provisions of this chapter or any other general or special law, shall at all times be free from taxation by the state or any political subdivision or other instrumentality of the state.
History of Section.
P.L. 1979, ch. 356, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-25. - Sale of bonds or notes at a discount.

§ 45-12-25. Sale of bonds or notes at a discount.
Notwithstanding any provisions of general or special law enacted prior to January 1, 1982 which require bonds or notes of cities, towns, or other political subdivisions to be sold at not less than par or par and accrued interest, those bonds or notes may be sold at a discount. In case of a sale at discount, the discount shall be treated as interest paid in advance.
History of Section.
P.L. 1982, ch. 153, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-26. - Commercial agreements relating to registered bonds and notes.

§ 45-12-26. Commercial agreements relating to registered bonds and notes.
In connection with the issuance by a city, town, or other political subdivision of this state of original or replacement bonds or notes in registered form, the treasurer of the city, town, or other political subdivision, with the approval of any other officers authorized to sign those bonds or notes, is authorized to contract for and engage the services of any bank, trust company, or other banking or financial institution within or without the state to perform authentication, registration, transfer, exchange, record, and paying agent functions, and for the preparation, signing, and issuance of checks in payment of those bonds or notes, the preparation and maintenance of reports and accounts and the performance of related duties. The treasurer, with this approval, may also enter into agreements with custodian banks, trust companies, or other financial institutions and financial intermediaries and nominees of any of them in connection with the establishment and maintenance by others of a central depository system for the transfer or pledge of those bonds and notes. The agreements may provide for limitation of liabilities of the parties, indemnification, or payment of liquidated damages, and shall include those provisions that the treasurer may deem necessary or desirable to protect the city, town, or other political subdivision, including provisions indemnifying it for losses sustained by it as the result of negligence of the other party or parties or any breach of the duties imposed upon them under the agreement.
History of Section.
P.L. 1983, ch. 103, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-27. - Conflict between bond referendum provisions and bond expenditure provisions.

§ 45-12-27. Conflict between bond referendum provisions and bond expenditure provisions.
Notwithstanding the provisions of any general or special law with respect to the issuance of bonds or the expenditure of money by a city or town which provided that it became effective only upon approval by the majority of electors voting on these provisions, wherever the provision relating to the expenditure of the proceeds derived from the sale of the bonds is in conflict with the provision relating to the submission of the general or special law to the electors of the city or town, the provision relating to the submission of the general or special law to the electors of the city or town shall prevail, and the proceeds derived from the sale of the bonds may be expended for the purposes set forth in the provision relating to the submission of the general or special law to the electors of the city or town.
History of Section.
P.L. 1985, ch. 70, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-28. - Permitted temporary investments for bond proceeds.

§ 45-12-28. Permitted temporary investments for bond proceeds.
Notwithstanding any contrary provision of general or special law, towns and cities may invest proceeds of any bond or note available during the period before those proceeds are needed for the purpose for which the bonds or notes were issued, in investments described in § 35-10-11. A city council or town council may adopt an ordinance or resolution limiting the permitted investments under § 35-10-11 to investments meeting specified standards of creditworthiness.
History of Section.
P.L. 1986, ch. 110, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-29. - Agreements relating to tax and securities compliance rebate to federal government.

§ 45-12-29. Agreements relating to tax and securities compliance rebate to federal government.
Notwithstanding any contrary provision of general or special law, cities, towns and other political subdivisions of this state may enter into agreements to comply with federal tax and securities laws and may rebate to the United States Treasury from available sources, any income from investments (including gains from the disposition of investments) of proceeds of bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on the bonds or notes from federal income taxation. The term of any such agreement may extend to a date six (6) years after the final maturity of the bonds or notes to which the agreement relates.
History of Section.
P.L. 1986, ch. 110, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-31. - Extinguishment of authorizations.

§ 45-12-31. Extinguishment of authorizations.
All or any portion of the authority to issue bonds pursuant to a resolution or ordinance passed by a city or town council or pursuant to a special act passed by the general assembly may be extinguished by ordinance of the city or town council, without further action by the general assembly, after seven (7) years have passed from the date the resolution, ordinance or special act was passed.
History of Section.
P.L. 2007, ch. 252, § 2; P.L. 2007, ch. 292, § 2.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-12 - Indebtedness of Towns and Cities › Section 45-12-33. - Borrowing for road and bridge, infrastructure, and school building projects.

§ 45-12-33. Borrowing for road and bridge, infrastructure, and school building projects.
(a)(1)
In addition to other authority previously granted, during calendar year 2014 a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence loans from the municipal road and bridge revolving fund administered by the Rhode Island clean water finance agency in accordance with chapter 18 of title 24.
(2)
In addition to other authority previously granted, from July 1, 2015 to June 30, 2016, a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence loans from the efficient buildings fund administered by the Rhode Island clean water finance agency infrastructure bank in accordance with chapter 12.2 of title 46 or the school building authority capital fund administered by the Rhode Island health and educational building corporation in accordance with chapter 38.2 of this title.
(b)
These bonds, notes, or other evidences of indebtedness are subject to the maximum aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.
(c)
The denominations, maturities, interest rates, methods of sale, and other terms, conditions, and details of any bonds or notes issued under the provisions of this section may be fixed by resolution of the city or town council authorizing them, or if no provision is made in the resolution, by the treasurer or other officer authorized to issue the bonds, notes or evidences of indebtedness; provided, that the payment of principal shall be by sufficient annual payments that will extinguish the debt at maturity, the first of these annual payments to be made not later than three (3) years, and the last payment not later than twenty (20) years after the date of the bonds.
The bonds, notes, or other evidences of indebtedness may be issued under this section by any political subdivision without obtaining the approval of its electors, notwithstanding the provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the contrary.
History of Section.
P.L. 2014, ch. 9, § 1; P.L. 2014, ch. 19, § 1; P.L. 2015, ch. 141, art. 8, § 2; P.L. 2015, ch. 141, art. 14, § 13.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-1.1. - Aid reduced by amounts owed state entities.

§ 45-13-1.1. Aid reduced by amounts owed state entities.
If any city or town fails to pay any assessment, bill, or charge levied, presented, or imposed by any public or quasi-public board, commission, corporation, council, authority, agency, department, committee or other similar body organized under the laws of this state, within one hundred eighty (180) days of the presentment for payment of the assessment, bill, or charge to the city or town, then there shall be deducted from any state aid, determined to be due under the provisions of this chapter, an amount equal to that due and owing any or all of those commissions; provided, that the amount of any deduction shall be reduced by the amount of any bill or charge presented for payment by city or town to the state, which bill or charge has not been paid by the state within one hundred eighty (180) days of presentment.
History of Section.
P.L. 1983, ch. 167, art. XII, § 2; P.L. 1986, ch. 522, § 8; P.L. 1992, ch. 133, art. 92, § 3.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-1.2. - Aid withheld for failure to comply with state statutes.

§ 45-13-1.2. Aid withheld for failure to comply with state statutes.
If any city or town fails to furnish information as defined in chapter 21 of title 39 within seventy-five (75) days of June 22, 1987, then there shall be withheld from any state aid, determined to be due under the provisions of this chapter, an amount equal to twenty-five percent (25%) until the time that the information is furnished.
History of Section.
P.L. 1987, ch. 118, art. 11, § 1.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-2. - “Tax levy” defined.

§ 45-13-2. “Tax levy” defined.
For the purposes of this chapter, “tax levy” means the total amount of taxes annually certified by the assessors of taxes of the cities and towns, as shown on the annual reports certified by the assessors to the director of revenue; provided, that whenever a city or town, incidental to changing its fiscal year, orders a tax levy to pay its expenses for a fiscal period other than twelve (12) months, “tax levy” means the tax levy of the city or town of the calendar year preceding the calendar year in which the change of fiscal year takes place.
History of Section.
P.L. 1947, ch. 1887, art. 9, part 2, § 1; P.L. 1951, ch. 2751, § 1; G.L. 1956, § 45-13-2; P.L. 1965, ch. 68, § 4; P.L. 1988, ch. 84, § 102; P.L. 2008, ch. 98, § 59; P.L. 2008, ch. 145, § 59.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-3. - Apportionment based on levy for preceding year.

§ 45-13-3. Apportionment based on levy for preceding year.
The annual apportionment and payment of any sums during the state’s fiscal year shall be based on the annual tax levy of the respective cities and towns as of December 31st of the calendar year preceding the calendar year in which the current state fiscal year begins.
History of Section.
P.L. 1947, ch. 1887, art. 9, part 2, § 1; P.L. 1951, ch. 2751, § 1; G.L. 1956, § 45-13-3.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-5.2. - Valuation of tax exempt property for purposes of computing state grants.

§ 45-13-5.2. Valuation of tax exempt property for purposes of computing state grants.
Not later than August first in any year, any town or municipality to which a grant may be payable under the provisions of § 45-13-5.1, shall provide the director of revenue with the assessed valuation of the tax exempt real property which is required for the computation of the grant. The director of revenue may, on or before April 30 next succeeding the receipt of the statement, reevaluate any exempt property when, in the director’s judgment the valuation made by the local assessor or assessors is inaccurate, and shall notify the municipality of the reevaluation. Any municipality aggrieved by the action of the director of revenue under the provisions of this section may, within two (2) weeks of the notice, file an appeal consistent with the provisions of chapter 35 of title 42.
History of Section.
P.L. 1986, ch. 466, § 1; P.L. 1987, ch. 383, § 1; P.L. 1988, ch. 129, art. 5, § 1; P.L. 2008, ch. 98, § 59; P.L. 2008, ch. 145, § 59.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-6. - Purpose.

§ 45-13-6. Purpose.
It is the purpose of §§ 45-13-7 — 45-13-10, to control state mandates on towns and cities, to identify and report on all state mandates, and to establish a system for the reimbursement to towns and cities for the cost of state mandates.
History of Section.
P.L. 1979, ch. 298, § 3.
2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-13 - State Aid › Section 45-13-7. - State mandated costs defined.

§ 45-13-7. State mandated costs defined.
“State mandate” means any state initiated statutory or executive action or rule, regulation or policy adopted by a state department or agency or a quasi-public department or agency that requires a local government to establish, expand, or modify its activities in a way as to necessitate additional expenditures from local government revenue sources where the expenditures are not otherwise reimbursed in whole. For the purpose of this chapter, a “state mandate” shall also mean any requirement, rule, or dictate by a regulator of a state agency. When state statutory, executive, or regulator actions or rules, regulations or policies are intended to achieve compliance with federal statutes or regulations or court orders, state mandates shall be determined as follows:
(1)
Where the federal statute or regulations or court order is discretionary, the state statutory, executive, or regulator action shall be considered a state mandate for the purposes of §§ 45-13-7 — 45-13-10.
(2)
Where the state statutory, executive, or regulator action or rule, regulation or policy exceeds what is required by the federal statute or regulation or court order, only the provisions of the state action which exceed the federal requirements shall be considered a state mandate for the purposes of §§ 45-13-7 — 45-13-10.
(3)
Where the state statutory, executive, or regulator action or rule, regulation or policy does not exceed what is required by the federal statute or regulation or court order, the state action shall not be considered a state mandate for the purposes of §§ 45-13-7 — 45-13-10.
(4)
Where the cost of a single state mandate does not exceed the sum of five hundred dollars ($500) the state mandate shall not be reimbursable.
History of Section.
P.L. 1979, ch. 298, § 3; P.L. 1987, ch. 118, art. 19, § 1; P.L. 1987, ch. 213, § 2; P.L. 1988, ch. 129, art. 7, § 1; P.L. 2006, ch. 246, art. 39, § 2; P.L. 2006, ch. 253, § 6.