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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.