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:

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

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is hereby amended to read as follows:

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

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

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

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

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

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

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

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

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

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budgets of those departments or agencies.

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

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

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

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

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

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

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provided that:

 

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

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satisfaction of both parties; and

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

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reimbursements.

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     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

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

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

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

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shortfall.

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     This act would take effect upon passage.

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