The bill amends Section 45-12-22.4 of the General Laws regarding the indebtedness of towns and cities, specifically focusing on the financing of deficits, pensions, and other post-employment benefits. It establishes that no municipality may sell long-term bonds to fund these obligations without prior approval from the state auditor general and the director of the state department of revenue. Additionally, municipalities or quasi-public agencies that have not made their annual contributions to their other post-employment benefits trust, or whose trust is less than thirty-five percent (35%) funded, are required to file an annual report with the department of municipal finance. This report must include a plan to either make the trust payment within three years or to achieve at least thirty-five percent (35%) funding within ten years.

The bill also includes a provision stating that if any part of this section is deemed invalid, it will not affect the validity of the remaining provisions. The act is set to take effect upon passage. Overall, the legislation aims to enhance accountability and financial management regarding municipal pension and post-employment benefit obligations.

Statutes affected:
5962: 45-12-22.4