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art.012/2/024/1

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     ARTICLE 12

RELATING TO BUDGET AND ACCOUNTS

     SECTION 1. Section 16-59-9 of the General Laws in Chapter 16-59 entitled "Board of

Governors for Higher Education [See Title 16 Chapter 97 - The Rhode Island Board of Education

Act]" is hereby amended to read as follows:

     16-59-9. Educational budget and appropriations. -- (a) The general assembly shall

annually appropriate any sums it deems necessary for support and maintenance of higher

education in the state and the state controller is authorized and directed to draw his or her orders

upon the general treasurer for the payment of the appropriations or so much of the sums that are

necessary for the purposes appropriated, upon the receipt by him or her of proper vouchers as the

council on postsecondary education may by rule provide. The council shall receive, review, and

adjust the budget for the office of postsecondary commissioner and present the budget as part of

the budget for higher education under the requirements of § 35-3-4.

      (b) The office of postsecondary commissioner and the institutions of public higher

education shall establish working capital accounts.

      (c) Any tuition or fee increase schedules in effect for the institutions of public higher

education shall be received by the council on postsecondary education for allocation for the fiscal

year for which state appropriations are made to the council by the general assembly; provided that

no further increases may be made by the board of education or the council on postsecondary

education for the year for which appropriations are made. Except that these provisions shall not

apply to the revenues of housing, dining, and other auxiliary facilities at the University of Rhode

Island, Rhode Island College, and the Community Colleges including student fees as described in

P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch.

257 as amended.

      (d) All housing, dining, and other auxiliary facilities at all public institutions of higher

learning shall be self-supporting and no funds shall be appropriated by the general assembly to

pay operating expenses, including principal and interest on debt services, and overhead expenses

for the facilities. Any debt service costs on general obligation bonds presented to the voters in

November 2000 and November 2004 or appropriated funds from the Rhode Island capital plan for

the housing auxiliaries at the University of Rhode Island and Rhode Island College shall not be

subject to this self-supporting requirement in order to provide funds for the building construction

and rehabilitation program. The institutions of public higher education will establish policies and

procedures which enhance the opportunity for auxiliary facilities to be self-supporting, including

that all faculty provide timely and accurate copies of booklist for required textbooks to the public

higher educational institution's bookstore.

      (e) The additional costs to achieve self-supporting status shall be by the implementation

of a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,

operating expenses, principal, and interest on debt services, and overhead expenses.

     (f) The board of education is authorized to establish a restricted receipt account for the

Westerly Higher Education and Industry Center (also known as the Westerly Job Skills Center or

Westerly Higher Education Learning Center) and to collect lease payments from occupying

companies, and fees from room and service rentals, to support the operation and maintenance of

the facility. All such revenues shall be deposited to the restricted receipt account.

     SECTION 2. Section 35-3-4 of the General Laws in Chapter 35-3 entitled "State Budget"

is hereby amended to read as follows:

     35-3-4. Estimates submitted by department heads. -- (a) On dates determined by the

budget officer, but not later than the first day of October in each year, each head of a department

of the state government, not including the general assembly or the judiciary, shall assemble,

correlate, and revise, with power to increase or decrease, the estimates for expenditures and

requests for appropriations for the next ensuing fiscal year of each of the divisions, boards,

commissions, officers, bureaus, institutions, or agencies of the state included within his or her

department, and, after this revision, shall prepare an itemized departmental estimate of the

appropriations necessary to meet the financial needs of the department, including a statement in

detail of all moneys for which any general or special appropriation is desired at the ensuing

session of the general assembly. The estimate shall be in such form, and in such number of

copies, and with such explanation as the budget officer may require, and, on dates determined by

the budget officer, but not later than the first day of October in each year, shall be submitted to

the governor through the budget officer and to the fiscal advisors of the house and senate. The

budget officer shall provide copies to the house fiscal advisor and senate fiscal advisor.

      (b) The estimates shall also include a supplemental presentation of estimates of

expenditures for information resources and information technologies as defined in § 29-8-2

[repealed] regardless of source of financing. The estimate shall include a detailed listing and

explanation of expenses and the source of funds and shall be in such form, and in such number of

copies, and with such explanation as the budget officer may require. Copies shall be provided

directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island Information

Resources Management Board.

     SECTION 3. Section 35-4-27 of the General Laws in Chapter 35-4 entitled “State Funds”

is hereby amended to read as follows:

     35-4-27. Indirect cost recoveries on restricted receipt accounts. -- Indirect cost

recoveries of ten percent (10%) of cash receipts shall be transferred from all restricted receipt

accounts, to be recorded as general revenues in the general fund. However, there shall be no

transfer from cash receipts with restrictions received exclusively: (1) From contributions from

non-profit charitable organizations; (2) From the assessment of indirect cost recovery rates on

federal grant funds; or (3) Through transfers from state agencies to the department of

administration for the payment of debt service. These indirect cost recoveries shall be applied to

all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The

following restricted receipt accounts shall not be subject to the provisions of this section:

     Executive Office of Health and Human Services

     Organ Transplant Fund

     HIV Care Grant Drug Rebates

     Department of Human Services

     Veterans' home – Restricted account

     Veterans' home – Resident benefits

     Pharmaceutical Rebates Account

     Demand Side Management Grants

     Veteran's Cemetery Memorial Fund

     Donations – New Veterans' Home Construction

     Department of Health

     Providence Water Lead Grant

     Pandemic medications and equipment account

     Miscellaneous Donations/Grants from Non-Profits

     State Loan Repayment Match

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

     Eleanor Slater non-Medicaid third-party payor account

     Hospital Medicare Part D Receipts

     RICLAS Group Home Operations

     Commission on the Deaf and Hard of Hearing

     Emergency and public communication access account

     Department of Environmental Management

     National heritage revolving fund

     Environmental response fund II

     Underground storage tanks registration fees

     Rhode Island Historical Preservation and Heritage Commission

     Historic preservation revolving loan fund

     Historic Preservation loan fund – Interest revenue

     Department of Public Safety

     Forfeited property – Retained

     Forfeitures – Federal

     Forfeited property – Gambling

     Donation – Polygraph and Law Enforcement Training

     Rhode Island State Firefighter's League Training Account

     Fire Academy Training Fees Account

     Attorney General

     Forfeiture of property

     Federal forfeitures

     Attorney General multi-state account

     Forfeited property – Gambling

     Department of Administration

     RI Health Benefits Exchange

     Office of Management and Budget

     Information Technology Investment Fund

     Restore and replacement – Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts – TANS

     Car Rental Tax/Surcharge-Warwick Share

     Housing Resources Commission Restricted Account

     Department of Revenue

     DMV Modernization Project

     Jobs Tax Credit Redemption Fund

     Legislature

     Audit of federal assisted programs

     Department of Children, Youth and Families

     Children's Trust Accounts – SSI

     Military Staff

     RI Military Family Relief Fund

     RI National Guard Counterdrug Program

     Treasury

     Admin. Expenses – State Retirement System

     Retirement – Treasury Investment Options

     Defined Contribution – Administration - RR

     Violent Crimes Compensation – Refunds

     Treasury Research Fellowship

     Business Regulation

     Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account.

     Judiciary

     Arbitration Fund Restricted Receipt Account

     Third-Party Grants

     RI Judiciary Technology Surcharge Account

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     School for the Deaf Fee for Service Account

     Davies Career and Technical School Local Education Aid Account

     Davies – National School Breakfast & Lunch Program

     Office of the Post-Secondary Commissioner

     Westerly Higher Education and Industry Center

     Department of Labor and Training

     Job Development Fund

     Department of Transportation

     Rhode Island Highway Maintenance Account

     SECTION 4. This article shall take effect as of July 1, 2016.