It is enacted by the General Assembly as follows

SECTION 1. Section 28-37-1 of the General Laws in Chapter 28-37 entitled "Workers' Compensation Administrative Fund" is hereby amended to read as follows:

28-37-1. Establishment -- Sources -- Administration. -- (a) There is hereby established in the department of labor a special account to be known as the workers' compensation administrative account, an account within the general fund. This account, hereinafter referred to as the "workers' compensation administrative account", shall consist of payments made to it, as hereinafter provided, or penalties paid pursuant to this chapter, and of all other moneys paid into and received by the fund, of property and securities acquired by and through the use of moneys belonging to the fund, and of interest earned upon the moneys belonging to the fund. All moneys in the fund shall be mingled and undivided. The fund shall be administered by the director of labor or his or her designee.

(b) The purposes for which this fund shall be used are as follows:

(1) To provide funds to the Dr. John E. Donley rehabilitation center for suitable structures, personnel, and equipment necessary for the rendering of rehabilitative services including, but not limited to, physical therapy, psychotherapy, and occupational therapy to injured workers coming within the purview of chapters 29 -- 38 of this title;

(2) To provide funds for all expenditures of the education unit created pursuant to section 42-16-4 and all expenditures of the workers' compensation fraud prevention unit created pursuant to section 42-11-15;

(3) To provide funds for all expenditures of the workers' compensation court after July 1, 1989. The administrator of the fund shall on July 1st of each fiscal year transfer such funds as are reasonable and necessary to fund all expenditures of the workers' compensation court for the fiscal year from the administrative account, to a restricted receipt account to be established in the judicial department. The administrator of the workers' compensation court is hereby authorized to draw funds from the restricted receipt account for all court expenditures;

(4) To provide funds to the department of labor for all expenditures incurred in administering its responsibilities under chapters 29 -- 38 of this title;

(5) To provide funds to the department of labor for all expenditures incurred in investigating and processing or otherwise administering its responsibilities regarding claims for benefits or payments under sections 28-35-20, 28-37-4, and 28-37-8;

(6) To provide funds to the department of labor for the maintenance and operation of a system of data collection as provided for in section 28-37-31. The director shall be authorized to purchase and/or lease equipment necessary to effectuate the purposes of section 28-37-31;.

(7) To provide funds for loans to the state compensation insurance fund as provided in sections 28-7.2-19, and 27-7.2-20.1; {DEL and DEL}

(8) To provide funds for the payment or reimbursement of actual incremental costs of COLA increases mandated by section 28-33-17 respecting injuries occurring prior to September 1, 1990, in such amounts as the director, in his sole discretion, deems appropriate. These amounts may be paid out of the fund by order of the director and shall be made by order drawn on the general treasury to be charged against the fund;

{ADD (9) To provide funds to the workers' compensation advisory council created pursuant to the provisions of section 28-29-30 for expenditures to carry out si responsibilities. ADD}

SECTION 2. This act shall take effect upon passage.