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:

{ADD 45-13-9. Reimbursement to cities and towns for the costs of state mandates. -- ADD} (a) (1) The department of administration shall submit to the budget office by September 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 to be reimbursed in the state budget for the next fiscal year provided, however, 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 in accordance with the report submitted by the department of administration to the state budget office.

{ADD (3) Any rules, regulations or policy adopted by state departments, agencies or quasi-state departments or agencies which requires any new expenditure of money or increased expenditure of money by a city or town shall take effect on July 1 of the calendar year following the year of adoption, provided, however when the rule, regulation or policy does not exceed what may be required by federal statute or regulation or court order, it shall take effect upon its effective date of adoption.

(4) Whenever it shall be determined by the governor that the postponement of the effective date of rules, regulations or policies of state departments, agencies or quasi-state departments or agencies, shall cause an emergency situation which imperils the public's safety or public's health, the governor may by executive order suspend the operation of, in whole or in part, section 45-13-9(3) and such order shall remain in effect until it is rescinded by a subsequent executive order. ADD}

SECTION 2. This act shall take effect upon passage.