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art.002/6/002/5/002/4/002/3/002/2/002/1
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ARTICLE 2 AS AMENDED
RELATING TO STATE FUNDS

     SECTION 1. Chapter 16-1 of the General Laws entitled "State Department of Elementary
and Secondary Education [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]"
is hereby amended by adding thereto the following section:
     16-1-15. Restricted receipts.
     There is hereby created a restricted receipt account with the department of elementary and
secondary education for the purpose of receiving and expending monies from any other sources,
public or private, limited to gifts, grants, and donations. The department shall deposit any revenues
from such sources into the restricted receipt account to be used for the same educational purposes
that its state appropriation is used, unless otherwise limited by any agreement to use such funds.
     SECTION 2. Sections 21-28.10-8 and 21-28.10-10 of the General Laws in Chapter 21-
28.10 entitled "Opioid Stewardship Act" are hereby amended to read as follows:
     21-28.10-8. Departmental annual reporting.
     By January of each calendar year, the department of behavioral healthcare, developmental
disabilities and hospitals (BHDDH), the executive office of health and human services (EOHHS),
the department of children, youth and families (DCYF), the Rhode Island department of education
(RIDE), the Rhode Island office of veterans' services, the department of corrections (DOC), and
the department of labor and training (DLT), and any other department or agency receiving opioid
stewardship funds shall report annually to the governor, the speaker of the house, and the senate
president which programs in their respective departments were funded using monies from the
opioid stewardship fund and the total amount of funds spent on each program.
     21-28.10-10. Creation of opioid stewardship fund.
     (a) There is hereby established, in the custody of the department, a restricted-receipt
account to be known as the "opioid stewardship fund."
     (b) Monies in the opioid stewardship fund shall be kept separate and shall not be
commingled with any other monies in the custody of the department.
     (c) The opioid stewardship fund shall consist of monies appropriated for the purpose of
such account,; monies transferred to such account pursuant to law,; contributions consisting of
promises or grants of any money or property of any kind or value, or any other thing of value,
including grants or other financial assistance from any agency of government; and monies required
by the provisions of this chapter or any other law to be paid into or credited to this account.
     (d) Monies of the opioid stewardship fund shall be available to provide opioid treatment,
recovery, prevention, education services, and other related programs, subject to appropriation by
the general assembly.
     (e) The budget officer is hereby authorized to create restricted receipt accounts entitled
"opioid stewardship fund allocation" in any department or agency of state government wherein
monies from the opioid stewardship fund are appropriated by the general assembly for the
programmatic purposes set forth in subsection (d) of this section.
     SECTION 3. Section 35-1.1-5 of the General Laws in Chapter 35-1.1 entitled, "Office of
Management and Budget" is hereby amended to read as follows:
     35-1.1-5. Federal grants management.
     (a) The controller shall be responsible for managing federal grant applications; providing
administrative assistance to agencies regarding reporting requirements; providing technical
assistance; and approving agreements with federal agencies pursuant to § 35-1-1. The controller
shall:
     (1) Establish state goals and objectives for maximizing the utilization of federal aid
programs;
     (2) Ensure that the state establishes and maintains statewide federally mandated grants
management processes and procedures as mandated by the federal Office of Management and
Budget;
     (3) Promulgate procedures and guidelines for all state departments, agencies, advisory
councils, instrumentalities of the state, and public higher education institutions covering
applications for federal grants;
     (4) Require, upon request, any state department, agency, advisory council, instrumentality
of the state, or public higher education institution receiving a grant of money from the federal
government to submit a report to the controller of expenditures and program measures for the fiscal
period in question;
     (5) Ensure state departments and agencies adhere to the requirements of § 42-41-5
regarding legislative appropriation authority and delegation thereof;
     (6) Manage and oversee the disbursements of federal funds in accordance with § 35-6-42;
     (7) Prepare the statewide cost allocation plan and serve as the monitoring agency to ensure
that state departments and agencies are working within the guidelines contained in the plan; and
     (8) Provide technical assistance to agencies to ensure resolution and closure of all single
state audit findings and recommendations made by the auditor general related to federal funding.
     (b) The division of accounts and control shall serve as the state clearinghouse for purposes
of coordinating federal grants, aid, and assistance applied for and/or received by any state
department, agency, advisory council, or instrumentality of the state. Any state department, agency,
advisory council, or instrumentality of the state applying for federal funds, aids, loans, or grants
shall file a summary notification of the intended application with the controller.
     (1) When as a condition to receiving federal funds, the state is required to match the federal
funds, a statement shall be filed with the notice of intent or summary of the application stating:
     (i) The amount and source of state funds needed for matching purposes;
     (ii) The length of time the matching funds shall be required;
     (iii) The growth of the program;
     (iv) How the program will be evaluated;
     (v) What action will be necessary should the federal funds be canceled, curtailed, or
restricted; and
     (vi) Any other financial and program management data required by the office or by law.
     (2) Except as otherwise required, any application submitted by an executive agency for
federal funds, aids, loans, or grants which will require state matching or replacement funds at the
time of application or at any time in the future, must be approved by the director of the office of
management and budget, or his or her designated agents, prior to its filing with the appropriate
federal agency. Any application submitted by an executive agency for federal funds, aids, loans, or
grants which will require state matching or replacement funds at the time of application or at any
time in the future, when funds have not been appropriated for that express purpose, must be
approved by the general assembly in accordance with § 42-41-5. When the general assembly is not
in session, the application shall be reported to and reviewed by the director pursuant to rules and
regulations promulgated by the director.
     (3) When any federal funds, aids, loans, or grants are received by any state department,
agency, advisory council, or instrumentality of the state, a report of the amount of funds received
shall be filed with the office; and this report shall specify the amount of funds that would reimburse
an agency for indirect costs, as provided for under federal requirements.
     (4) The controller may refuse to issue approval for the disbursement of any state or federal
funds from the state treasury as the result of any application that is not approved as provided by
this section, or in regard to which the statement or reports required by this section were not filed.
     (5) The controller shall be responsible for the orderly administration of this section and for
issuing the appropriate guidelines and regulations from each source of funds used.
     (c) There is hereby created in the general fund and housed within the budget of the
department of administration a restricted receipt account entitled "Grants Management
Administration." This account shall be used to fund centralized services relating to managing
federal grant applications; providing administrative assistance to agencies regarding reporting
requirements; providing technical assistance; approving agreements with federal agencies pursuant
to § 35-1-1; and, may include costs associated with the development, implementation, and ongoing
operation of a grants management information technology system. Every state department and
agency, as defined in R.I. General Laws § 35-1-4, which that receives federal assistance funds,
excluding awards made directly to Rhode Island College, the Community College of Rhode Island,
and the University of Rhode Island, shall set aside an amount of the funds received equal to a
percentage as determined annually by the state controller multiplied by federal funds received. The
state controller shall determine this rate annually in proportion with budgeted expenditures for uses
consistent with the purpose of this subsection within the department of administration. For federal
awards in response to the COVID-19 pandemic and subsequent stimulus awards, there is hereby
authorized an additional assessment which that shall be deposited into the restricted receipt account
established by this subsection and shall be equal to a uniform percentage of the amount of stimulus
and other awards received, excluding Medicaid and all awards made directly to Rhode Island
College, the Community College of Rhode Island, and the University of Rhode Island, associated
with the COVID-19 pandemic and subsequent stimulus acts. The state controller shall calculate the
rate of this additional assessment, not to exceed one percent (1%) of the total awards received
during a fiscal year, in proportion with budgeted expenditures necessary to finance the planning,
oversight, compliance, and reporting functions within the department of administration related to
federal awards issued in response to the pandemic and subsequent stimulus awards in addition to
the costs of planning, development, and implementation of a grants management information
technology system. For the additional assessment related to federal awards issued in response to
the pandemic and subsequent stimulus awards no funds shall be deposited into the restricted receipt
account after December 31, 2026. All funds set aside and designated to be used for grants
management shall be deposited into the restricted receipt account established in this subsection.
     Prior to any deposits being made into the restricted receipt account established by this
subsection and thereafter prior to the commencement of each fiscal year, the state controller shall
provide a report to the director of administration and the chairpersons of the house and senate
finance committees that includes the rate and calculation thereof for the following fiscal year.
     SECTION 4. Section 35-3-20 of the General Laws in Chapter 35-3 entitled "State Budget"
is hereby amended to read as follows:
     35-3-20. State budget reserve and cash stabilization account.
     (a) There is hereby created within the general fund a state budget reserve and cash
stabilization account, which shall be administered by the state controller and which shall be used
solely for the purpose of providing such sums as may be appropriated to fund any unanticipated
general revenue deficit caused by a general revenue shortfall.
      (b) In carrying out the provisions of § 35-3-20.1, the state controller shall, based on that
fiscal years year’s estimate, transfer the amounts needed to fund cash requirements during the fiscal
year; the transfer shall be adjusted at the end of the fiscal year in order to conform to the
requirements of § 35-3-20.1. To the extent that funds so transferred are not needed by the Rhode
Island Capital Plan fund the funds may be loaned back to the general fund.
     (c) For the fiscal year ending June 30, 2009, whenever the aggregate of the monies and
securities held for the credit of the state budget reserve and cash stabilization account exceeds three
and four tenths of one percent (3.4%) of total fiscal year resources, consisting of the aggregate of
(1) actual revenues from taxes and other departmental general revenue sources; and (2) the general
revenue balance available for appropriations at the beginning of the fiscal year; the excess shall be
transferred to the Rhode Island Capital Plan fund, to be used solely for capital projects. Provided
further, the applicable percentage shall increase by four-tenths of one percent (.4%) for the
succeeding four (4) fiscal years as follows:
     Fiscal year ending June 30, 2010 3.8%
     Fiscal year ending June 30, 2011 4.2%
     Fiscal year ending June 30, 2012 4.6%
     Fiscal years ending June 30, 2013, and thereafter 5.0%
      (d) At any time after the third quarter of a fiscal year, that it is indicated that total resources
which are defined to be the aggregate of estimated general revenue, general revenue receivables,
and available free surplus in the general fund will be less than the estimates upon which current
appropriations were based, the general assembly may make appropriations from the state budget
reserve and cash stabilization account for the difference between the estimated total resources and
the original estimates upon which enacted appropriations were based, but only in the amount of the
difference based upon the revenues projected at the latest state revenue estimating conference
pursuant to chapter 16 of this title as reported by the chairperson of that conference.
     (e) Whenever a transfer has been made pursuant to subsection (d), that transfer shall be
considered as estimated general revenues for the purposes of determining the amount to be
transferred to the Rhode Island Capital Plan fund for the purposes of § 35-3-20.1(b).
     (f) Whenever a transfer has been made pursuant to subsection (d), the amount of the transfer
shall be transferred to the Rhode Island Capital Plan fund from funds payable into the general
revenue fund pursuant to § 35-3-20.1 in the fiscal year following the fiscal year in which the transfer
was made, except that in fiscal year 2010 there shall be no repayment of the amount transferred,
and the repayment shall be made in fiscal year 2011, and except that in fiscal year 2021,
$90,000,000 of the repayment amount shall be transferred and the remainder of the repayment shall
be made in fiscal year 2022.
     SECTION 5. Sections 35-4-22.1, 35-4-22.2 and 34-4-27 of the General Laws in Chapter
35-4 entitled "State Funds" are hereby amended to read as follows:
     35-4-22.1. Legislative appropriation authority.
     (a) No agency shall establish new programs, or expand existing programs, including any
program involving nonstate monies, beyond the scope of those already established, recognized, and
appropriated for by the general assembly until the program and the availability of money is
submitted by the agency to the budget officer for recommendation to the general assembly.
     (b) No state agency may make expenditures of any restricted or special revenue funds,
whether these monies are received prior to expenditure or as reimbursement, unless these
expenditures are made pursuant to specific appropriations of the general assembly.
     (c) To the extent permitted by federal law, any federal funds or assistance appropriated,
authorized, allocated, or apportioned to the state of Rhode Island shall be subject to appropriation
by the general assembly except where otherwise provided in this chapter or chapter 41 of title 42.
     35-4-22.2. Use of restricted or special revenue funds.
     (a) Any restricted or special revenue funds which that are received by a state agency which
that is not otherwise appropriated to that state agency by the annual appropriation acts of the regular
session of the general assembly are hereby appropriated for that state agency for the purpose set
forth, except that no expenditure shall be made from and no obligation shall be incurred against
any restricted receipts or special revenue fund which that has not been previously appropriated or
reappropriated or approved by the governor, the speaker of the house, and the president of the
senate, until that authorization has been transmitted to the state agency to make expenditure
therefrom.
     (b) State agencies desiring the governor's approval to expend or obligate receipts not
appropriated or reappropriated by the general assembly in the annual appropriation act or
supplemental appropriation act shall forward a request to the state budget officer, who shall forward
a copy to the speaker of the house and the president of the senate.
     (c) Notwithstanding any law to the contrary, the budget officer is hereby authorized to
create restricted receipt accounts within the budget of any state agency to account for the receipt
and expenditure of a multistate settlement administered by the office of the attorney general.
Expenditures from these accounts shall remain subject to the provisions of §§ 35-4-22, 35-4-22.1,
35-4-22.2, and 35-4-27.
     (d) Upon the directive of the controller, with the consent of the auditor general, the budget
officer is hereby authorized to convert any escrow liability accounts that were established before
July 1, 2021, to a restricted receipt account.
     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 nonprofit 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
     Health System Transformation Project
     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
     Healthcare Information Technology
     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
     De Coppet Estate Fund
     Rhode Island Historical Preservation and Heritage Commission
     Historic preservation revolving loan fund
     Historic Preservation loan fund – Interest revenue
     Department of Public Safety
     E-911 Uniform Emergency Telephone System
     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
     Health Insurance Market Integrity Fund
     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
     Grants Management Administration
     Executive Office of Commerce
     Housing Resources Commission Restricted Account
     Housing Production Fund
     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
     Higher Education and Industry Center
     Department of Labor and Training
     Job Development Fund
     Rhode Island Council on the Arts
     Governors' Portrait Donation Fund
     SECTION 6. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled
"Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as follows:
     39-18.1-5. Allocation of funds.
     (a) The monies in the highway maintenance fund to be directed to the department of
transportation pursuant to § 39-18.1-4(b)(1) – (b)(3) shall be allocated through the transportation
improvement program process to provide the state match for federal transportation funds, in place
of borrowing, as approved by the state planning council. The expenditure of moneys in the highway
maintenance fund shall only be authorized for projects that appear in the state's transportation
improvement program.
     (b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the
department of transportation will allocate necessary funding to programs that are designed to
eliminate structural deficiencies of the state's bridge, road, and maintenance systems and
infrastructure.
     (c) Provided, further, that beginning July 1, 2015, five percent (5%) of available proceeds
in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island
public transit authority for operating expenditures.
     (d) Provided, further, that from July 1, 2017, and annually thereafter, in addition to the
amount above, the Rhode Island public transit authority shall receive an amount of not less than
five million dollars ($5,000,000) each fiscal year, except for the period July 1, 2019, through June
30, 2022, during which such amount or a portion thereof may come from federal coronavirus relief
funds.
     (e) Provided, further, that the Rhode Island public transit authority shall convene a
coordinating council consisting of those state agencies responsible for meeting the needs of low-
income seniors and persons with disabilities, along with those stakeholders that the authority deems
appropriate and are necessary to inform, develop, and implement the federally required coordinated
public transit human services transportation plan.
     The council shall develop, as part of the state's federally required plan, recommendations
for the appropriate and sustainable funding of the free-fare program for low-income seniors and
persons with disabilities, while maximizing the use of federal funds available to support the
transportation needs of this population.
     The council shall report these recommendations to the governor, the speaker of the house
of representatives, and the president of the senate no later than November 1, 2018.
     SECTION 7. Chapter 40.1-1 of the General Laws entitled "Department of Behavioral
Healthcare, Developmental Disabilities and Hospitals" is hereby amended by adding thereto the
following section:
     40.1-1-21. Restricted receipts.
     There is hereby created a restricted receipt account within the department of behavioral
healthcare, developmental disability disabilities and hospitals for the purposes of receiving and
expending monies from any other sources, public or private, limited to gifts, grants, and donations.
The department shall deposit any revenues into the restricted receipt account to be used for the
same purposes that its state appropriation is used, unless otherwise limited by agreement of such
funds.
     SECTION 8. Section 42-13.1-16 of the General Laws in Chapter 42-13.1 entitled "The
Rhode Island Bridge Replacement, Reconstruction, and Maintenance Fund" is hereby amended to
read as follows:
     42-13.1-16. Reporting.
     The department shall submit to the office of management and budget, the house fiscal
advisor, and the senate fiscal advisor, a report on the progress of implementation of this chapter
within thirty (30) days of the close of each of the fiscal quarters of each year. The reports shall also
be posted on the department's website. The reports shall include, at a minimum:
     (1) Construction and design contracts of five hundred thousand dollars ($500,000) or
greater planned to be advertised in the upcoming federal fiscal year, their value, and expected award
date;
     (2) Construction and design contracts of five hundred thousand dollars ($500,000) or
greater awarded in the prior federal fiscal year, date of award, value, and expected substantial
completion date;
     (3) Expected final cost of:
     (i) Any construction contracts of five hundred thousand dollars ($500,000) or greater that
reached substantial completion in the prior federal fiscal year; and
     (ii) Any design contracts of five hundred thousand dollars ($500,000) or greater completed
in the prior federal fiscal year; and
     (4) Total number of workers employed through the contract and the number of the workers
in that total with a Rhode Island address.; and
     (5) This report shall also include a current list of all federal, discretionary, and any other
grants that the department has applied for and the status of that application and identify any changes
from the prior report. For any grants that require a state match, the department shall identify if the
source for the state's match is available under currently authorized funding.
     SECTION 9. 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 61 of title 42, 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 61 of this title 42.
      (b) The Rhode Island Council on the Arts shall deposit any funds received from the Rhode
Island Foundation an entity exempt from tax under § 501(c)(3) of the Internal Revenue Code 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 § 35-24-27 35-
4-27.
     (c) Notwithstanding any law to the contrary, there is hereby created in the general fund of
the state and housed within the budget of the Rhode Island Council on the Arts a restricted receipt
account entitled "Governors' Portrait Donation Fund." This account shall be used to record all
receipts and expenditures of donations made for the purpose of supplementing the state
appropriation for the purchase of a governor's portrait as set forth in R.I. Gen. Laws § 37-8-9, and
for other related expenses as deemed appropriate by the Rhode Island Council on the Arts.
     SECTION 10. This article shall take effect upon passage.