2014 -- H 7040

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LC003152

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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 TOWNS AND CITIES -- STATE AID

     Introduced By: Representatives Edwards, Canario, and Guthrie

     Date Introduced: January 09, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-13-9 of the General Laws in Chapter 45-13 entitled "State Aid"

is hereby amended to read as follows:

     45-13-9. Reimbursement to cities and towns and school districts for the costs of state

mandates. -- (a) (1) The department of revenue shall submit to the budget office by October 1 of

each year, a report by each city and town, of the cost of state mandates established after January

1, 1979, to be reimbursed for the next preceding July 1 -- June 30 period.

      (2) The budget office shall annually include the statewide total of the statement of costs

of state mandates eligible to be reimbursed in the state budget for the next fiscal year for

consideration by the governor in preparing a final budget proposal for submission to the general

assembly in accordance with section 35-3-7 of the General Laws; provided, that any costs

resulting from the rules and regulations of state departments or agencies shall be allocated to the

budgets of those departments or agencies.

      (b) The state treasurer shall in July of each year distribute to cities and towns the

reimbursements for state mandated costs as may be appropriated by the general assembly.

     (c) If during any fiscal year the state reimbursement to cities and towns and school

districts is insufficient to cover the costs of state mandates as reported by the department of

revenue, the affected cities, towns and school districts may cease implementation of the state

mandates at their discretion up to fifty percent (50%) of the value of the reimbursement shortfall,

provided that:

     (1) Existing personnel contracts are honored in their entirety or renegotiated to the

satisfaction of both parties; and

     (2) Implementation of state mandates is restored upon the full restoration of state

reimbursements.

     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 TOWNS AND CITIES -- STATE AID

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     This act would provide that if during any fiscal year the state reimbursement to cities and

towns and school districts is insufficient to cover the costs of state mandates as reported by the

department of revenue, those affected cities, towns and school districts may cease implementation

of state mandates at their discretion up to fifty percent (50%) of the value of the reimbursement

shortfall.

     This act would take effect upon passage.

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LC003152

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