It is enacted by the General Assembly as follows:

SECTION 1. Section 16-59-9 of the General Laws in Chapter 16-59 entitled "Board of Governors for Higher Education" is hereby amended to read as follows:

16-59-9. Educational budget and appropriations. -- (a) The general assembly shall annually appropriate such sums as it deems necessary for support and maintenance of higher education in the state and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of the appropriations or so much thereof as may be necessary for the purposes appropriated, upon the receipt by him or her of proper vouchers as the board of governors for higher education may by rule provide. The board shall receive, review, and adjust the budget of its several subordinate committees and agencies and for the office of higher education and present the budget as part of the budget for higher education, and the board may from time to time reallocate the budget of any board or agency or the office of higher education upon the request of the board or agency or upon its own initiative.

(b) The office of higher education and the institutions of public higher education shall establish working capital accounts and carry forward any unexpended balances for the fiscal years 1984-1985, 1985-1986, 1986-1987, 1987-1988 and 1988-1989 and 1989-1990 and 1990-1991 to the next fiscal year, provided that the use of this carry-forward is limited to expenditures for nonrecurring items such as equipment, library material, or other capital expenditures.

(c) Any tuition or fee increase schedules in effect for the institutions of public higher education shall be received by the board of governors for allocation for the fiscal year for which state appropriations are made to the board of governors by the general assembly; provided that no further increases may be made by the board of governors for the year for which appropriations are made. Except, however, that the foregoing 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 heretofore or hereafter 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 by June 30, 1987 and, thereafter, 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. Any debt service costs on general obligation bonds presented to the voters in November 2000 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 the above self-supporting requirement in order to provide funds for the building construction and rehabilitation program. In furtherance thereof the institutions of public higher education will establish policies and procedures which enhance the opportunity for auxiliary facilities to be self-supporting, including among other things, that all faculty provide timely and accurate copies of booklist 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, and shall be phased in on a pro-rata basis beginning with fiscal year 1983 and ending with fiscal year 1987. The level of support appropriated by the general assembly to sustain auxiliary facilities in fiscal year 1982 shall hereafter not be diminished while the institution is achieving self-supporting status. The difference of money between achieving self-supporting status and that which is annually appropriated by the general assembly for these programs shall be used by the institutions toward academic programs.

SECTION 2. This act shall take effect upon passage.