The bill seeks to amend the General Laws in Chapter 45-5, specifically Section 45-5-20.1, to grant city and town councils, school committees, and regional school districts the authority to establish insurance corporations. These entities would be able to issue insurance and reinsurance policies, develop risk management programs, and engage in other related activities. The goal is to enable these entities to reduce risk, pool resources, and manage claims more effectively. The corporations would be audited annually and subject to oversight by the Rhode Island Department of Business Regulation and the Attorney General, with a focus on trust practices in health insurance and workers' compensation insurance.

The bill further defines these corporations as public entities that are not state departments and that will operate as nonprofit organizations. They will have the power to issue bonds and will be governed by a board of municipal officials serving without compensation. Contracts with these corporations can last up to 25 years without requiring voter approval. Additionally, the corporations' assets, income, and obligations will be exempt from state taxation. The bill includes provisions for the dissolution of the corporations and the distribution of their assets, as well as tax and fee exemptions for the corporations and their agents. The act is set to take effect immediately upon passage. There are no specific insertions or deletions from current law indicated in the summary provided.

Statutes affected:
2444: 45-5-20.1