CHAPTER 24 - DIVERSION OF FRANCHISE TAX FUNDS

AN ACT APPROPRIATING A PORTION OF THE REVENUE DERIVED FROM PROCEEDS OF THE FRANCHISE TAX TO THE GENERAL FUND.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. On or before the fifteenth day of May, 1937, the Governor of the State of Delaware shall certify to the State Tax Department the amount of money required to meet all appropriations made out of the General Fund of the 106th General Assembly which are required to be paid on or before April 30, 1938, except the appropriations contained in the General Budget Bill, the appropriations contained in House Bill No. 432 relating to Child Welfare, appropriations to Fire Companies, State Aid Hospitals, Delaware Industrial School for Girls, Palmer Home, Layton Home for Aged Colored, Delaware Commission for the Blind, Kent and Sussex Fair Association, and Delaware Society for the Prevention of Cruelty to Animals. Upon receipt of such certification, the State Tax Department shall thereafter pay out of the proceeds derived from the future collection of the franchise tax as established and assessed by Article 8, Chapter 6 of the Revised Code of Delaware, as amended, such sum or sums from said franchise tax, when and as collected, to the State Treasurer, to be by him deposited in the General Fund of the State until the amount so certified shall have been so deposited. And when said amount shall have been so deposited, all collections of said franchise tax thereafter received shall be paid to the State Treasurer, to be used by the State Board of Education as is now provided by law.

On or before the fifteenth day of May, 1938, the Governor of the State of Delaware shall certify to the State Tax Department the amount of money required to meet all appropriations made out of the General Fund by the 106th General Assembly which are required to be paid on or before April 30, 1939, except the appropriations contained in the General Budget Bill, the appropriations contained in House Bill No. 432 relating to Child Welfare, appropriations to Fire Companies, State Aid Hospitals, Delaware Industrial School for Girls, Palmer Home, Layton Home for Aged Colored, Delaware Commission for the Blind, Kent and Sussex Fair Association, and Delaware Society for the Prevention of Cruelty to Animals. Upon receipt of such certification, the State Tax Department shall thereafter pay out of the proceeds derived from the future collection of the franchise tax as established and assessed by Article 8, Chapter 6 of the Revised Code of Delaware, as amended, such sum or sums from said franchise tax, when and as collected, to the State Treasurer, to be by him deposited in the General Fund of the State until the amount so certified shall have been so deposited. And when said amount shall have been so deposited, all collections of said franchise tax thereafter received shall be paid to the State Treasurer, to be used by the State Board of Education as is now provided by law.

That during the year ending April 30, 1938, and during the year ending April 30, 1939, until the amounts so certified to the Tax Department by the Governor, as aforesaid, shall be deposited to the credit of the General Fund, the provisions of all laws of the State of Delaware, in so far as they relate to and are in conflict with the payment of the proceeds of said franchise tax by the State Tax Department to the State Treasurer, to be by him deposited in the General Fund as hereinbefore provided, are declared to be and are hereby suspended. And in each of said years when said amounts shall have been so deposited in the General Fund as hereinbefore provided, upon certification by the State Treasurer, the said above mentioned provisions of the Laws of the State of Delaware, so as aforesaid declared to be suspended, shall in each of said years again be in full force, operation and effect.

Approved May 14, 1937.