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art.002/4/002/3/002/2/002/1

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     ARTICLE 2 AS AMENDED

RELATING TO STATE FUNDS

     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, with the exception of the mandatory fees covered by the Rhode Island promise

scholarship program as established by § 16-107-3. 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 that enhance the opportunity for auxiliary facilities

to be self-supporting, including that all faculty provide timely and accurate copies of booklists 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 Centers established throughout the state (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 facilities. All such revenues shall be deposited to the

restricted-receipt account.

     SECTION 2. Section 35-3-15 of the General Laws in Chapter 35-3 entitled “State Budget”

is hereby amended to read as follows:

     35-3-15. Unexpended and unencumbered balances of revenue appropriations.

     (a) All unexpended or unencumbered balances of general revenue appropriations, whether

regular or special appropriations, at the end of any fiscal year, shall revert to the surplus account in

the general fund, and may be reappropriated by the governor to the ensuing fiscal year and made

immediately available for the same purposes as the former appropriations; provided, that the

disposition of unexpended or unencumbered appropriations for the general assembly and legislative

agencies shall be determined by the joint committee on legislative affairs, and written notification

given thereof to the state controller within twenty (20) days after the end of the fiscal year; and

furthermore that the disposition of unexpended or unencumbered appropriations for the judiciary,

shall be determined by the state court administrator, and written notification given thereof to the

state controller within twenty (20) days after the end of the fiscal year.

     (b) The governor shall submit a report of such reappropriations to the chairperson of the

house finance committee and the chairperson of the senate finance committee of each

reappropriation stating the general revenue appropriation, the unexpended or unencumbered

balance, the amount reappropriated, and an explanation of the reappropriation and the reason for

the reappropriation by August 15 20 of each year.

     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

     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

     OER Reconciliation Funding

     RI Health Benefits Exchange

     Information Technology Investment Fund

     Restore and replacement – Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts – TANS

     OPEB System Restricted Receipt Account

     Car Rental Tax/Surcharge-Warwick Share

     Executive Office of Commerce

     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

     School for the Deaf – School Breakfast and Lunch Program

     Davies Career and Technical School Local Education Aid Account

     Davies – National School Breakfast & Lunch Program

     School Construction Services

     Office of the Postsecondary Commissioner

     Westerly Higher Education and Industry Centers

     Department of Labor and Training

     Job Development Fund

     SECTION 4. Chapter 40-1 of the General Laws entitled "Department of Human Services"

is hereby amended by adding thereto the following section:

     40-1-17. Receipt and use of funds.

     To carry out the purposes of this chapter, the department of human services, with the

approval of the governor, shall have the authority to receive and expend monies from any other

sources, public or private, including, but not limited to, legislative enactments, bond issues, gifts,

devises, grants, bequests, or donations. The department of human services, with the approval of the

governor, is authorized to enter into any contracts necessary to obtain and expend those funds.

     SECTION 5. Section 42-27-6 of the General Laws in Chapter 42-27 entitled “Atomic

Energy Commission” is hereby amended to read as follows:

     42-27-6. Reactor usage charges.

     (a) Effective July 1, 2018, All fees collected by the atomic energy commission for use of

the reactor facilities and related services shall be deposited as general revenues. in a restricted

receipt account to support the technical operation and maintenance of the agency’s equipment.

     (b) All revenues remaining in the restricted receipt account, after expenditures authorized

in subdivision (a) of this section, above two hundred thousand dollars ($200,000) shall be paid into

the state’s general fund. These payments shall be made annually on the last business day of the

fiscal year.

     (c) A charge of up to forty percent (40%), adjusted annually as of July 1, shall be assessed

against all University of Rhode Island (URI) sponsored research activity allocations. The charge

shall be applied to the existing URI sponsored research expenditures within the atomic energy

commission.

     SECTION 6. This Article shall take effect upon passage.