The bill amends Section 45-12-4.4 of the General Laws in Chapter 45-12, which pertains to the "Indebtedness of Towns and Cities." It allows cities and towns to issue bonds, notes, or other evidences of indebtedness to pay for the uninsured portion of any court judgment or settlement, with the exception of those arising from pension obligations. The amendment includes a new insertion that adds the town of Warren to the list of towns—previously including only Coventry and Middletown—that are authorized to issue such financial instruments. However, the aggregate outstanding principal amount for these instruments must not exceed 10% of the municipality's most recently adopted municipal budget.

The bill also specifies that the issuance of these bonds, notes, or other evidences of indebtedness is subject to the maximum aggregate indebtedness permitted under § 45-12-2. It details the conditions under which the bonds or notes can be issued, including denominations, maturities, interest rates, and methods of sale. These financial instruments can be issued without the approval of the electors, despite any contrary provisions in the city or town's charter or §§ 45-12-19 and 45-12-20. The act will take effect upon passage. The explanation by the Legislative Council clarifies that the purpose of the act is to add the town of Warren to the list of towns that can finance the uninsured portion of a settlement through the issuance of bonds.

Statutes affected:
8205: 45-12-4.4