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art.013/3/013/2/013/1

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ARTICLE 13 AS AMENDED

RELATING TO BUDGET ACCOUNTS

SECTION 1. 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

Providence Water Lead Grant

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

RI Health Benefits Exchange

Office of Management and Budget

Information Technology Investment Fund

Restore and replacement – Insurance coverage

Convention Center Authority rental payments

Investment Receipts – TANS

Car Rental Tax/Surcharge-Warwick Share

Housing Resources Commission Restricted Account

Department of Revenue

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

Davies Career and Technical School Local Education Aid Account

Davies – National School Breakfast & Lunch Program

Department of Labor and Training

Job Development Fund

Department of Transportation

Rhode Island Highway Maintenance Account

SECTION 2. Section 35-6-1 of the General Laws in Chapter 35-6 entitled “Accounts and

Control” is hereby amended to read as follows:

35-6-1. Controller – Duties in general. – (a) Within the department of administration

there shall be a controller who shall be appointed by the director of administration pursuant to

chapter 4 of title 36. The controller shall be responsible for accounting and expenditure control

and shall be required to:

(1) Administer a comprehensive accounting and recording system which will classify the

transactions of the state departments and agencies in accordance with the budget plan;

(2) Maintain control accounts for all supplies, materials, and equipment for all

departments and agencies except as otherwise provided by law;

(3) Prescribe a financial, accounting, and cost accounting system for state departments

and agencies;

(4) Preaudit all state receipts and expenditures;

(5) Prepare financial statements required by the several departments and agencies, by the

governor, or by the general assembly;

(6) Approve the orders drawn on the general treasurer; provided, that the preaudit of all

expenditures under authority of the legislative department and the judicial department by the state

controller shall be purely ministerial, concerned only with the legality of the expenditure and

availability of the funds, and in no event shall the state controller interpose his or her judgment

regarding the wisdom or expediency of any item or items of expenditure;

(7) Prepare and timely file, on behalf of the state, any and all reports required by the

United States, including, but not limited to, the internal revenue service, or required by any

department or agency of the state, with respect to the state payroll; and

(8) Prepare a preliminary closing statement for each fiscal year. The controller shall

forward the statement to the chairpersons of the house finance committee and the senate finance

committee, with copies to the house fiscal advisor and the senate fiscal and policy advisor, by

September 1 following the fiscal year ending the prior June 30 or thirty (30) days after enactment

of the appropriations act, whichever is later. The report shall include but is not limited to:

(i) A report of all revenues received by the state in the completed fiscal year, together

with the estimates adopted for that year as contained in the final enacted budget, and together

with all deviations between estimated revenues and actual collections. The report shall also

include cash collections and accrual adjustments;

(ii) A comparison of actual expenditures with each of the actual appropriations, including

supplemental appropriations and other adjustments provided for in the Rhode Island General

Laws;

(iii) A statement of the opening and closing surplus in the general revenue account; and

(iv) A statement of the opening surplus, activity, and closing surplus in the state budget

reserve and cash stabilization account and the state bond capital fund.

(b) The controller shall provide supporting information on revenues, expenditures, capital

projects, and debt service upon request of the house finance committee chairperson, senate

finance committee chairperson, house fiscal advisor, or senate fiscal and policy advisor.

(c) Upon issuance of the audited annual financial statement, the controller shall provide a

report of the differences between the preliminary financial report and the final report as contained

in the audited annual financial statement.

(d) Upon issuance of the audited financial statement, the controller shall transfer all

general revenues received in the completed fiscal year, net of transfer to the state budget reserve

and cash stabilization account as required by § 35-3-20, in excess of those estimates adopted for

that year as contained in the final enacted budget to the employees' retirement system of the state

of Rhode Island as defined in § 36-8-2.

(e)(d) The controller shall create a special fund not part of the general fund and shall

deposit amounts equivalent to all deferred contributions under this act into that fund. Any

amounts remaining in the fund on June 15, 2010, shall be transferred to the general treasurer who

shall transfer such amounts into the retirement system as appropriate.

(f)(e) The controller shall implement a direct deposit payroll system for state employees.

(i) There shall be no service charge of any type paid by the state employee at any time

which shall decrease the net amount of the employee's salary deposited to the financial institution

of the personal choice of the employee as a result of the use of direct deposit.

(ii) Employees hired after September 30, 2014, shall participate in the direct deposit

system. At the time the employee is hired, the employee shall identify a financial institution that

will serve as a personal depository agent for the employee.

(iii) No later than June 30, 2016, each employee hired before September 30, 2014, who is

not a participant in the direct deposit system, shall identify a financial institution that will serve as

a personal depository agent for the employee.

(iv) The controller shall promulgate rules and regulations as necessary for

implementation and administration of the direct deposit system, which shall include limited

exceptions to required participation.

SECTION 3. Section 1 shall take effect upon passage. Section 2 shall take effect as of

July 1, 2014.