2015 -- H 5140

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LC000550

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC FINANCE -- STATE FUNDS

     Introduced By: Representatives Shekarchi, Solomon, Casey, Costa, and Marcello

     Date Introduced: January 15, 2015

     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 13 of

title 45. The distribution under § 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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LC000550

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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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LC000550

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