2014 -- H 8302

========

LC005658

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

     Introduced By: Representative Spencer E.Dickinson

     Date Introduced: June 11, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. (a) The general treasurer is hereby directed to create and establish an

account within the treasurer's office, to be known as the "Pension Loan Fund" (the "Fund"). The

Fund shall consist of monies allocated from the state retirement system in an amount to be

determined by the treasurer, from which the treasurer may, from time to time and in the

treasurer's discretion, lend to a municipality for short-term municipal purposes.

     (b) Any proposed loan from the Fund shall be submitted for approval to the electors of

the municipality seeking the loan, and in the case of a town, shall be submitted at a special or

regular financial town meeting for approval.

     (c) The Fund shall be administered by the treasurer, who shall allocate and spend monies

from the Fund only in accordance with the purposes and procedures set forth by the treasurer and

in this act. The treasurer shall establish and maintain fiscal controls and accounting procedures

conforming to generally accepted government accounting standards sufficient to ensure proper

accounting for receipts in and disbursements from the Fund.

     (d) A loan from the Fund shall be disbursed for a period not exceeding ten (10) years and

at an annual rate of interest equal to one percent (1%) less than the market rate determined by the

treasurer at the time of such loan, and shall be evidenced in any manner, and may contain any

provisions not inconsistent herewith and as authorized by the treasurer. A loan from the Fund

shall be in a form and contain any other provisions as the treasurer and may contain any

provisions, conditions, covenants, or limitations which the treasurer deems appropriate.

     (e) If any provision of this act, or the application thereof, is held invalid, the invalidity

shall not affect other provisions or applications of this act, which can be given effect without the

invalid provision or application, and to this end the provisions of this act are declared severable.

     SECTION 2. This act shall take effect upon passage.

========

LC005658

========

LC005658 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

***

     This act would direct the general treasurer to set aside funds from the state retirement

system into a separate loan fund for the purpose of allowing municipalities to borrow from such

fund for short-term municipal-related purposes.

     This act would take effect upon passage.

========

LC005658

========

LC005658 - Page 3 of 3