§ 45-12-2.1 - Ministerial approval.
SECTION 45-12-2.1
§ 45-12-2.1 Ministerial approval. –Effective January 1, 2008, a city or town shall have authority to incur debtfor money borrowed, through the issuance of bonds, if such application forapproval of bonds is approved by the auditor general as described below, asmeeting all of the following standards:
(1) The city or town has a long-term unenhanced credit ratingfrom one nationally recognized credit rating agency in at least the "A" ratingcategory without regard to gradations within such category;
(2) The city or town has represented in the application thatthe proposed bonds will finance a capital asset or assets and the averageuseful life of the capital asset or assets to be financed will be greater thanor equal to the average maturity of the proposed borrowing as determined by anappropriate official of the city or town at the time of the issuance of bondstherefore under this section or notes therefore under § 45-12-18;
(3) The city or town is in compliance with financialreporting requirements as set forth in § 45-10-5 and is not subject toenforcement proceedings or remedies as provided for in § 45-12-22.7; and
(4) The authorization for the issuance of such bonds has beenapproved by local referendum at a general or special election or financial townmeeting.
(5) Notwithstanding any provision of the general or publiclaws, or rule or regulation to the contrary, the projects or activities setforth in this act receiving ministerial approval shall not qualify for schoolhousing aid as set forth in Chapter 16-7 of the general laws.
The auditor general shall establish standards and rules forthe submission of applications for approval of bonds by cities and towns inaccordance with this section. Upon the submission of a complete applicationfrom a city or town, the auditor general shall within thirty (30) daysdetermine whether the standards set forth in this section have been met. If thestandards have been met, then the auditor general shall give approval to theapplication and the city or town shall have the power under law to issue bonds,provided it is otherwise lawful; if the auditor general finds that theborrowing does not meet said standards, the city or town shall be notified thatthe certification standards have not been met, which notification shall statethe standards that were and were not met, and if otherwise required, the cityor town shall seek special statutory authority as provided in § 45-12-2.No ministerial approval pursuant to this section shall be given by the auditorgeneral for tax year synchronization bonds, pension obligation bonds or bondsto fund other post employment benefits. The auditor general shall submit a copyof each approval and each notification that approval has been denied withinfive (5) business days after issuance to the director of administration and thechairpersons of the house committees on corporations and finance and thechairpersons of the senate committees on housing and municipal government andfinance.