The bill amends Section 45-5-20.1 of the General Laws in Chapter 45-5, which pertains to the powers of city and town councils and regional school districts. It allows these entities, along with water and fire districts, to jointly establish an insurance corporation for the purpose of obtaining insurance and entering into cooperative risk management programs. The bill specifies that these corporations shall not be considered insurance companies and therefore shall not be regulated by the Rhode Island Department of Business Regulation.

The bill outlines the governance and financial operations of these corporations, including the composition of the governing board, the handling of contracts, and the tax-exempt status of the corporations' assets. It permits eligible entities to enter into long-term contracts with the corporations without requiring voter approval and exempts the corporations from certain taxes and fees. The bill aims to enhance the ability of local governments to manage risks and insurance collaboratively while ensuring that the corporations operate with transparency and accountability. This act would take effect upon passage.

Statutes affected:
2076: 45-5-20.1