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Sponsor seeks to bar redirecting non‑multistate settlement proceeds without legislative approval
Summary
House Bill 7,287 would require settlement proceeds from non‑multistate initiatives to be deposited in the general fund and prohibit directing those funds to outside parties without explicit General Assembly authorization; sponsor cited a recent $10 million settlement that was routed to a foundation.
Representative Nadone introduced House Bill 7,287 to add clarifying statutory language requiring that settlement proceeds from non‑multistate initiatives be deposited into the general fund and not be appropriated or directed to outside parties without express General Assembly authorization. Nadone said the bill grew from concern about a recent roughly $10 million settlement that the attorney general’s office directed to the Rhode Island Foundation rather than the general fund.
Members asked for clarification about the nature of the original settlement; the sponsor identified it as an environmental soil‑contamination matter and said the diverted funds limited the General Assembly’s ability to appropriate and potentially match those dollars with federal funds. Representatives expressed concern about the precedent and pressed for clearer language to ensure legislative oversight of settlement distributions.
The committee held the bill and recorded written testimony from stakeholders.
