AN ACT RELATING TO TOWNS AND CITIES -- COUNCILS AND GOVERNING BODIES

SB 2076 allows Rhode Island cities, towns, school districts, and water/fire districts to jointly create nonprofit insurance corporations. These corporations would pool insurance risks (like property, casualty, and health coverage) for their member local governments, handle claims processing, and operate as public entities without being regulated by the Rhode Island Department of Business Regulation. The bill specifies that these corporations cannot be treated as standard insurance companies, their bonds won’t count as state debt, and they’ll maintain tax-exempt status for their assets and income. This directly affects local government units seeking cost-effective, shared risk management solutions for their insurance needs.