ARTICLE 13 SUBSTITUTE A AS AMENDED

RELATING TO BUDGET STABILIZATION ACCOUNT

SECTION 1. 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 required appropriated to fund any unanticipated general revenue deficit

caused by a general revenue shortfall. as identified by the state controller at the close of any fiscal

year as provided in subsection (d).

(b) In carrying out the provisions of section 35-3-20.1, the state controller shall, based on that

fiscal years 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

section 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) (1) 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 original 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 latest state

revenue estimating conference pursuant to chapter 16 of title 35 as reported by the chairperson of

that conference. The general assembly shall adopt a resolution stating the amount of the total

resources upon which the enacted appropriations were based in order to authorize the controller to

make the transfer from the state budget reserve and cash stabilization account to achieve those

total resources. The resolution shall be referred in the manner prescribed in section 35-3-9. (2)

Once the general assembly has taken final action defining the total resources to be achieved

through amounts to be withdrawn from the state budget reserve and cash stabilization account,

the state controller shall transfer to the state's general fund balance available the exact amount

necessary to achieve the total resources specified in the enacted resolution from the state budget

reserve and cash stabilization account based upon the actual difference between the total

resources and the original estimates upon which enacted appropriations were based.

(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 subsection 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 section 35-3-20.1 in the fiscal year following the fiscal year in which the

transfer was made.

SECTION 2. This article shall take effect upon passage.