ARTICLE 8 SUBSTITUTE A AS AMENDED

RELATING TO RESTRICTED RECEIPT ACCOUNTS

 

     SECTION 1. 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:

     Department of Human Services

         Veterans' home – Restricted account

         Veterans' home – Resident benefits

         Organ transplant fund

         Veteran's Cemetery Memorial Fund

     Department of Health

         Pandemic medications and equipment account

     Department of Mental Health, Retardation and Hospitals

      Eleanor Slater non-Medicaid third-party payor account

         Hospital Medicare Part D Receipts

         RICLAS Group Home Operations

      Vigneron Memorial Fund Grant

     Department of Environmental Management

         National heritage revolving fund

         Environmental response fund II

         Underground storage tank registration fees

     Rhode Island Council on the Arts

         Art for public facilities fund

      Rhode Island Foundation Grant

     Rhode Island Historical Preservation and Heritage Commission

         Historic preservation revolving loan fund

         Historic Preservation loan fund – Interest revenue

     State Police 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

     Department of Administration

       Restore and replacement – Insurance coverage

         Convention Center Authority rental payments

         Investment Receipts – TANS

         Car Rental Tax/Surcharge-Warwick Share

         OPEB System Restricted Receipt Account

     ARRA Administrative Expenses – Bureau of Audits

     ARRA Administrative Expenses – Purchasing

     Legislature

         Audit of federal assisted programs

     Department of Elderly Affairs

         Pharmaceutical Rebates Account

     Department of Children Youth and Families

         Children's Trust Accounts – SSI

     Military Staff

         RI Military Family Relief Fund

     Treasury

         Admin. Expenses – State Retirement System

         Retirement – Treasury Investment Options

     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

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     Office of the Governor

     ARRA Administrative Expenses – Office of Economic Recovery and ReInvestment

     Department of Labor and Training

     Job Development Fund – Title XII loans principal and interest

 

     SECTION 2. Section 16-21-1 of the General Laws in Chapter 16-21 entitled “Health and

Safety of Pupils” is hereby amended to read as follows:

 

     16-21-1. Transportation of public and private school pupils. -- (a) The school

committee of any town or city shall provide suitable transportation to and from school for pupils

attending public and private schools of elementary and high school grades, except private schools

that are operated for profit, who reside so far from the public or private school which the pupil

attends as to make the pupil's regular attendance at school impractical and for any pupil whose

regular attendance would otherwise be impracticable on account of physical disability or

infirmity.

     (b) For transportation provided to children enrolled in grades kindergarten through five

(5), school bus monitors, other than the school bus driver, shall be required on all school bound

and home bound routes. Variances to the requirement for a school bus monitor may be granted by

the commissioner of elementary and secondary education if he or she finds that an alternative

plan provides substantially equivalent safety for children. For the purposes of this section a

"school bus monitor" means any person sixteen (16) years of age or older.

     (c) No school committee shall negotiate, extend, or renew any transportation contract

unless such contract enables the district to participate in the statewide transportation system,

without penalty to the district, upon implementation of the statewide transportation system

described in RIGL §§ 16-21.1-7 and 16-21.1-8. Notice of the implementation of the statewide

transportation system for in-district transportation shall be provided in writing by the department

of elementary and secondary education to the superintendent of each district upon

implementation. Upon implementation of the statewide system of transportation for all students,

each school committee shall purchase transportation services for their own resident students by

accessing the statewide system on a fee-for-service basis for each student; provided, however,

that any school committee that fulfills its transportation obligations primarily through the use of

district-owned buses or district employees may continue to do so. Variances to the requirement

for the purchase of transportation services through the statewide transportation system for non-

public and non-shared routes may be granted by the commissioner of elementary and secondary

education if the commissioner finds that an alternative system is more cost effective. All fees paid

for transportation services provided to students under the statewide system shall be paid into a

statewide student transportation services restricted receipt account within the department of

elementary and secondary education. Payments from the account shall be limited to payments to

the transportation service provider and transportation system consultants. This restricted receipt

account shall not be subject to the indirect cost recoveries provisions set forth in § 35-4-27.

 

     SECTION 3. Sections 16-21.1-7 and 16-21.1-8 of the General Laws in Chapter 16-21.1

entitled “Transportation of School Pupils Beyond City and Town Limits” are hereby amended to

read as follows:

 

     16-21.1-7. Statewide transportation of students with special needs. -- Notwithstanding

the regional structure created in this chapter, and pursuant to the obligation of school committees

to transport children with special needs to and from school either within the school district or in

another school district of the state created by § 16-24-4, the department of elementary and

secondary education, in collaboration with the office of statewide planning of the department of

administration, and the Rhode Island public transit authority shall develop a plan for the creation

and implementation of a statewide system of transportation of students with special needs to and

from school. The statewide school transportation system for children with special needs shall be

provided through a competitive request for proposals to which vendors of transportation services

may respond. Effective upon the implementation of this statewide system of transportation for

students with special needs, each school committee shall purchase the transportation services for

their own resident students with special needs by accessing this integrated statewide system of

transportation for children with special needs on a fee-for-service basis for each child; provided,

however, that any school committee that fulfills its transportation obligations primarily through

the use of district-owned buses or district employees may continue to do so. All fees paid for

transportation services provided to students under the statewide system shall be paid into a

statewide student transportation services restricted receipt account within the department of

elementary and secondary education. Payments from the account shall be limited to payments to

the transportation service provider and transportation system consultants. This restricted receipt

account shall not be subject to the indirect cost recoveries provisions set forth in § 35-4-27. The

goal of the statewide system of transportation for students with special needs shall be the

reduction of duplication of cost and routes in transporting children from the various cities and

towns to the same special education program providers using different buses from each city and

town, the improvement of services to children through the development of shorter ride times and

more efficient routes of travel, and the reduction of cost to local school committees through

achieving efficiency in eliminating the need for each school district to contract for and provide

these specialized transportation services separately. The department of elementary and secondary

education shall submit a report of their findings and plans to the general assembly by March 30,

2008.

 

     16-21.1-8. Statewide transportation system for all students to be established.--

Notwithstanding the regional structure created in this chapter, the department of elementary and

secondary education, in collaboration with the office of statewide planning of the department of

administration, and the Rhode Island public transit authority shall conduct a comprehensive study

of all current transportation services for students in Rhode Island school districts in order to

develop a plan for the creation and implementation of a statewide system of transportation of all

students to and from school. The statewide school transportation system for all students shall be

provided through a competitive request for proposals to which vendors of transportation services

may respond. Effective upon the implementation of this statewide system of transportation for all

students, each school committee shall purchase the transportation services for their own resident

students by accessing this integrated statewide system of transportation on a fee-for-service basis

or each child; provided, however, that any school committee that fulfills its transportation

obligations primarily through the use of district-owned buses or district employees may continue

to do so. All fees paid for transportation services provided to students under the statewide system

shall be paid into a statewide student transportation services restricted receipt account within the

department of elementary and secondary education. Payments from the account shall be limited

to payments to the transportation service provider and transportation system consultants. This

restricted receipt account shall not be subject to the indirect cost recoveries provisions set forth in

§ 35-4-27. The goals of the statewide system of transportation for all students shall be the

reduction of duplication of cost and routes in transporting children from the various cities and

towns using different buses within and between each city and town, the improvement of services

to children through the development of shorter ride times and more efficient routes of travel, and

the reduction of cost to local school committees through achieving efficiency in eliminating the

need for each school district to contract for and provide these transportation services separately.

The comprehensive study of all current transportation services for students in Rhode Island

school districts and development of a plan for a statewide system of transportation of all students

to and from school shall be completed, with a report to the general assembly by March 30, 2008.

 

     SECTION 4. Chapter 23-28.2 of the General Laws entitled “Division of Fire Safety” is

hereby amended by adding thereto the following section:

 

     23-28.2-28. Rhode Island state firefighter's league grant account.-- (a) There is

hereby created within the department of public safety a restricted receipt account to be known as

the Rhode Island state firefighter’s league grant account. Donations received from the Rhode

Island state firefighter’s league shall be deposited into this account, and shall be used solely to

fund education and training programs for firefighters in the state.

     (b) All amounts deposited in the Rhode Island state firefighter's league grant account

shall be exempt from the indirect cost recovery provisions of § 35-4-27.

 

     SECTION 5. Chapter 40.1-3 of the General Laws entitled “Curative Services” is hereby

amended by adding thereto the following section:

 

     40.1-3-16. Vigneron memorial fund grant account.-- (a) There is hereby created

within the department of mental health, retardation, and hospitals a restricted receipt account to

be known as the Vigneron memorial fund grant account. Donations deposited into the Vigneron

memorial fund grant account shall be used solely to provide material for the patients at

Zambarano hospital to improve their ability to express themselves, participate in motivating

activities, exert greater control over their daily environment, and increase their independence.

     (b) All amounts deposited in the Vigneron memorial fund grant account on or after June

24, 2009, shall be exempt from the indirect cost recovery provisions of § 35-4-27.

 

     SECTION 6. Chapter 42-7 of the General Laws entitled “Executive Department” is

hereby amended by adding thereto the following section:

 

     42-7-8. American Recovery and Reinvestment Act Administration Expenses.-- (a)

There is hereby created restricted receipt accounts, within the office of the governor, for the

office of economic recovery and reinvestment, and within the department of administration for

the bureau of audits and the division of purchasing, to be known as ARRA administrative expense

accounts. Payments from the accounts shall be limited to expenses for administrative oversight

of American Recovery and Reinvestment Act (ARRA) funds. The governor's office of economic

recovery and reinvestment is authorized by OMB memorandum 09-18 to receive up to one-half

percent (0.5%) of stimulus funding to cover oversight expenses.

     (b) All amounts deposited in the ARRA administration accounts shall be exempt from the

indirect cost recovery provisions of § 35-4-27.

     (c) It is hereby provided, at the end of the American Recovery and Reinvestment Act

oversight period, balances from the ARRA administrative accounts shall revert to general

revenues.

 

     SECTION 7. Section 42-75-13 of the General Laws in Chapter 42-75 entitled "Council

on the Arts" is hereby amended to read as follows:

 

     42-75-13. Appropriation. (a) During the fiscal year ending June 30, 2008, the state

lottery division within the department of revenue shall conduct, pursuant to chapter 62.61 of the

general laws, an instant game to be known as the "Arts Lottery Game." The net revenue from the

first three (3) months of the running of the "Arts Lottery Game" shall be deposited in a restricted

revenue account to be used by the Rhode Island Council on the Arts for the support and

improvement of the arts in this state. The provisions of this section shall prevail over any

inconsistent provisions of chapter 42-61.

     (b) During the fiscal year ending June 30, 2010, the Rhode Island Council on the Arts

shall deposit any funds received from the Rhode Island Foundation in a restricted receipt account

to be used for the support and improvement of the arts in this state. All such funds deposited shall

be exempt from the indirect cost recovery provisions of section 35-4-7.

 

     SECTION 8. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled

"Department of Mental Health, Retardation, and Hospitals" is hereby amended to read as follows:

 

     40.1-1-13. Powers and duties of the office. -- Notwithstanding any provision of the

Rhode Island general laws to the contrary, the department of mental health, retardation, and

hospitals shall have the following powers and duties:

      (1) To establish and promulgate the overall plans, policies, objectives, and priorities for

state substance abuse education, prevention and treatment; provided, however, that the director

shall obtain and consider input from all interested state departments and agencies prior to the

promulgation of any such plans or policies;

      (2) Evaluate and monitor all state grants and contracts to local substance abuse service

providers;

      (3) Develop, provide for, and coordinate the implementation of a comprehensive state

plan for substance abuse education, prevention and treatment;

      (4) Ensure the collection, analysis, and dissemination of information for planning and

evaluation of substance abuse services;

      (5) Provide support, guidance, and technical assistance to individuals, local

governments, community service providers, public and private organizations in their substance

abuse education, prevention and treatment activities;

      (6) Confer with all interested department directors to coordinate the administration of

state programs and policies that directly affect substance abuse treatment and prevention;

      (7) Seek and receive funds from the federal government and private sources in order to

further the purposes of this chapter;

      (8) Act in the capacity of "state substance abuse authority" as that term has meaning for

coordination of state substance abuse planning and policy and as it relates to requirements set

forth in pertinent federal substance abuse laws and regulations;

      (9) Propose, review and/or approve, as appropriate, proposals, policies or plans involving

insurance and managed care systems for substance abuse services in Rhode Island;

      (10) To enter into, in compliance with the provisions of title 37, chapter 2, contractual

relationships and memoranda of agreement as necessary for the purposes of this chapter;

      (11) To license facilities and programs for the care and treatment of substance abusers,

and for the prevention of substance abuse;

      (12) To promulgate rules and regulations necessary to carry out the requirements of this

chapter;

      (13) Perform other acts and exercise any other powers necessary or convenient to carry

out the intent and purposes of this chapter; and

      (14) To exercise the authority and responsibilities relating to education, prevention and

treatment of substance abuse, as contained in, but not limited to, the following chapters: chapter

1.10 of title 23; chapter 10.1 of title 23; chapter 28.2 of title 23; chapter 21.2 of title 16; chapter

21.3 of title 16; chapter 50.1 of title 42; chapter 109 of title 42; chapter 69 of title 5 and section

35-4-18.

      (15) To establish a Medicare Part D restricted receipt account in the Hospitals and

Community Rehabilitation Services program to receive and expend Medicare Part D

reimbursements from pharmacy benefit providers consistent with the purposes of this chapter.

      (16) To establish a RICLAS Group Home Operations restricted receipt account in the

services for the developmentally disabled program to receive and expend rental income from

RICLAS group clients for group home-related expenditures, including food, utilities, community

activities, and the maintenance of group homes.

     (17) To establish a non-Medicaid third-party payor restricted receipt account in the

hospitals and community rehabilitation services program to receive and expend reimbursement

from non-Medicaid third-party payors to fund hospital patient services that are not Medicaid

eligible.

 

     SECTION 9. Chapter 23-28.2 of the General Laws entitled "Division of Fire Safety" is

hereby amended by adding thereto the following section:

 

     23-28.2-29. Fire academy training fees restricted receipt account. – There is hereby

created with the department of public safety a restricted receipt account to be known as the fire

academy training fees account. All receipts collected pursuant to section 23-28.2-23 shall be

deposited in this account and shall be used to fund costs associated with the fire training

academy. All amounts deposited into the fire academy training restricted receipt account shall be

exempt from the indirect cost recovery provisions of section 35-4-27.

 

     SECTION 10. Section 9 shall take effect on July 1, 2010. The remainder of this article

shall take effect upon passage and shall apply retroactively to July 1, 2009, except as provided

within.