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 specifically addresses the ability of a city or town to issue bonds, notes, or other forms of indebtedness to pay for the uninsured portion of any court judgment or settlement, with the exception of those arising from pension obligations. The bill includes an insertion that adds the town of Warren to the list of towns authorized to issue such financial instruments. It also includes a deletion that removes the conjunction "and" before Middletown, to accommodate the addition of Warren.

The bill stipulates that the total outstanding principal amount of these bonds or notes cannot exceed five percent (5%) of the city or town's most recently adopted municipal budget, with an exception for Coventry, Middletown, and now Warren, where the limit is increased to ten percent (10%). The bill also outlines the conditions under which these bonds or notes can be issued, including the denominations, maturities, interest rates, and methods of sale. It further states that these financial instruments can be issued without the approval of the electors, despite any contrary provisions in local charters or other sections of the law. The act would take effect upon passage.

Statutes affected:
3046: 45-12-4.4