The bill permits the town of Johnston to issue bonds not exceeding $40 million to finance the construction, renovation, and equipping of stormwater management and sewer facilities. The bonds may be of various types, including zero coupon, capital appreciation, serial, or term bonds, with a repayment schedule spanning up to thirty years. The town council is tasked with determining the specifics of the bond sale, and the town may also engage in financing agreements with the Rhode Island Infrastructure Bank. The proceeds from the bond sales are earmarked for specific purposes, such as construction costs and related expenses. Additionally, the bill allows the town council to issue temporary notes in anticipation of the bonds or federal/state aid, with a five-year repayment term and provisions for renewal or refinancing under certain conditions. The town is also permitted to use treasury funds for the bill's purposes, with repayment from subsequent bond or note proceeds or other funds.

The bill outlines that the costs of issuing the bonds or notes can be paid from the proceeds or other funds, and any excess proceeds will be used to pay down the principal or interest. The town's obligations from these bonds and notes are considered lawful debts but are excluded from the town's borrowing capacity calculations. The town must annually allocate funds for the debt service, and failure to do so will result in the sum being added to the annual tax levy. The town may also receive and use federal or state grants for the act's purposes. The validity of the bonds and notes is not contingent on constitutional requirements, although compliance with such requirements is necessary. The town council has the authority to issue bonds and notes for seven years from the act's effective date, with certain sections effective upon passage and the rest contingent on approval by the town's electorate in a special election.