June 14, 1991
TO: BOARD OF GOVERNORS NO. 42-91
MONEY MARKET MEMBERS - ONE PER COMPLEX NO. 16-91
RE: RHODE ISLAND LEGISLATURE ADJOURNS WITHOUT MONEY MARKET FUND
TAX
__________________________________________________________
The Institute is pleased to inform you that the Rhode
Island Legislature adjourned on Wednesday, June 12, 1991 without
passing legislation that would have imposed a tax on money market
funds.
As we previously informed you, House Bill 91-H6134 would
have amended the definition of "banking institution" to include a
money market fund, thus subjecting money market funds to the
annual tax imposed on banking institutions. The Institute met
with Representative John Harwood, the sponsor of the bill, to
inform him of the effect such a tax would have on both money
market funds and Rhode Island shareholders. After meeting with
the Institute, Representative Harwood decided not to seek passage
of this legislation.
* * *
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel