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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 subsection (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 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.