CHAPTER 197

FORMERLY

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 311

AS AMENDED BY SENATE AMENDMENT NO. 1 AND HOUSE AMENDMENT NOS. 1 AND 3

AN ACT AMENDING CHAPTER 50, TITLE 29 OF THE DELAWARE CODE RELATING TO THE ESTABLISHMENT' OF THE FIRST STATE IMPROVEMENT FUND.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter so, Title 29 of the Delaware Code by adding a new Subchapter V to read as follows:

"SUBCHAPTER V. FIRST STATE IMPROVEMENT FUND

§5080. Establishment

(a) A special fund is created in the Office of the State Treasurer to be known as the 'First State Improvement Fund', hereinafter referred to in this Subchapter as the 'Fund'.

(b) The Fund initially shall consist of ;40,000,000. The General Assembly at any time may appropriate money to be added to the Fund in addition to this initial amount.

§5081. Purposes

As prescribed by §5083 of this Subchapter, and except as specifically provided in §5085 of this Subchapter, the Fund shall be expended for minor capital improvements in public schools and State facilities, to match funds provided by local communities for capital improvements related to Delaware's 1987 Bicentennial celebration, and for economic development projects.

§5082. Investment and Accounting

The Fund shall be established as a special fund of the State and shall be Invested by the Treasurer in securities consistent with the Investment policies established by the Cash Management Policy Board. All Income earned, and gains realized from the sales of such securities, shall be reinvested In the Fund. Losses from any sales of securities shall be charged to the Fund.

§5083. Appropriations from the Fund

(a) No money shall be expended from the Fund except pursuant to an appropriation incorporated in the annual bond bill passed by the General Assembly and approved by the Governor.

(b) For any one fiscal year the joint legislative committee shall not recommend, and the General Assembly shall not appropriate, an amount greater than one quarter of the initial principal, plus anticipated interest, available in the Fund.

§5084. Bicentennial Community Improvement Projects

(a) Any appropriations from the Fund for Bicentennial Community Improvement Projects shall be used to match funds provided by unincorporated areas, incorporated municipalities or counties. The Bicentennial Community Improvement Committee shall by rule establish the amount of non- Fund participation required for eligibility for matching funds.

(b) There is established a Bicentennial Community Improvement Committee, comprising the Chairman or his designee and Vice Chairman or his designee of the Joint Finance Committee, the Chairman or his designee and Vice Chairman or his designee of the Joint Bond Bill Committee, the President Pro Tem of the Delaware State Senate or his designee, the Minority Leader of the Senate or his designee, the Speaker of the State Howe of Representatives or his designee, the Minority Leader of the Howe or his designee, the Secretary of Administrative Services, the Secretary of State, Secretary of the Department of Transportation, the Director of the Delaware Dovelopement office and the Chairman of the Delaware Heritage Commission. The Secretary of State shall serve as Chairman of the Committee. The Committee shall adopt rules and regulations necessary to implement this Section, including guidelines for the distribution of these matching funds.

§5085. Emergency and Special Appropriations

(a) The provisions of §5083 of this Subchapter to the contrary notwithstanding, in the event of an emergency involving the health, safety or welfare of the citizens of the State, any portion of the balance remaining in the Fund may be expended pursuant to an act of appropriation passed by the General Assembly, with the concurrence of three fifths of all of the Members elected to each House thereof, and approved by the Governor.

(b) The provisions of §5083 of this Subchapter to the contrary notwithstanding, in the event of cutbacks in federal funding of State programs affecting the health, safety or welfare of the citizens of the State, and upon the recommendation of the Joint Finance Committee, any portion of the balance remaining in the Fund may be expended pursuant to an act of appropriation passed by the General Assembly and approved by the Governor, including the annual budget bill.

§5086. Termination

The First State Improvement Fund shall terminate on September 30, 1988. Any unencumbered monies in the Fund not previously appropriated by the General Assembly at that time shall revert to the General Fund.

§5087. Liberal Construction of Subchapter

This Subchapter, being necessary for the prosperity and welfare of the State and its citizens, shall be construed liberally to effect the purposes of this Subchapter.

§5088. Inconsistent Laws Superseded

Insofar as any provision of this Subchapter is inconsistent with any general, special or local laws, or part thereof, this Subchapter shall be controlling."

Section 2. This Act shall become effective upon its enactment into law. Approved July 19, 1985.