CHAPTER 49

FORMERLY

HOUSE BILL NO. 238

AN ACT TO AMEND CHAPTER 61, TITLE 29 OF THE DELAWARE CODE RELATING TO THE CREATION OF THE FEDERAL FISCAL RELIEF FUND.

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

WHEREAS, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (H.R. 2) was enacted by the federal government; and

WHEREAS, Title IV of this Act creates a new Title VI of the Social Security Act that authorizes and appropriates a total of $10 billion in state fiscal relief in grants for states; and

WHEREAS, under Title VI of the Social Security Act Delaware will receive $25 million per year for two fiscal years; and

WHEREAS, the General Assembly recognizes that this fiscal relief is temporary and that the funds allocated to Delaware should be considered as one-time funds; and

WHEREAS, the General Assembly recognizes that one-time funds should not be built into the base budget of the State; and

WHEREAS, in past years the General Assembly enacted legislation dedicating revenues of limited duration to the Twenty-First Century Fund and to the Delaware Health Fund; and

WHEREAS, the General Assembly recognizes the importance of improving the quality of life for Delaware’s residents by making prudent, long-term investments;

NOW, THEREFORE:

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

Section 1. Amend § 6102, Title 29 of the Delaware Code, by adding thereto a new subsection to read:

“(t)(1) An appropriated special fund of the State to be known as the 'Federal Fiscal Relief Fund' is hereby created in the Office of the Budget. The State Treasurer shall deposit all State assistance funds received under Title VI of the federal Social Security Act to the Federal Fiscal Relief Fund.

(2) Moneys from the Federal Fiscal Relief Fund must be expended for Delaware’s citizens in the following areas:

a. to provide essential government services;

b. to cover the costs to the State of complying with any federal intergovernmental mandate to the extent that the mandate applies to the State and the federal government has not provided funds to cover the costs; and

c. to make investments in those areas of highest priority of the General Assembly to the benefit of all Delawareans.

(3) The Federal Fiscal Relief Fund is an interest earning account. All interest earned must be reinvested in the Federal Fiscal Relief Fund.

(4) Money may not be expended from the Federal Fiscal Relief Fund except pursuant to an appropriation within the State’s Bond and Capital Improvement Act or the annual Appropriations Act, or otherwise enacted by the General Assembly.”.

Approved June 12, 2003