2014 -- H 7035

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC FINANCE -- STATE FUNDS

     Introduced By: Representatives Shekarchi, Ackerman, Casey, O`Grady, and Trillo

     Date Introduced: January 09, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 35-4 of the General Laws entitled "State Funds" is hereby amended

by adding thereto the following section:

     35-4-29. Distribution of state surpluses. – (a) Any state surplus in any fiscal year shall

be distributed as follows:

     (1) Fifty percent (50%) of any state surplus of any character shall be distributed to the

general fund.

     (2) Fifty percent (50%) of any state surplus of any character shall be distributed to the

cities and towns in accordance with the aid to cities and towns formula provided in chapter 45-13.

The distribution under subdivision 35-4-29(a)(2) shall be limited to the payment of (i) Unfunded

liabilities, (ii) Bond indebtedness, or (iii) Pension obligations.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- STATE FUNDS

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     This act would direct fifty percent (50%) of any state surplus to be distributed to the

general fund and the remaining fifty percent (50%) to the cities and towns in accordance with the

state aid formula.

     This act would take effect upon passage.

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LC003060

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