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art.002/5/002/4/002/3/002/2/002/1

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ARTICLE 2

RELATING TO STATE FUNDS

SECTION 1. Section 16-59-9 of the General Laws in Chapter 16-59 entitled "Council on

Postsecondary Education [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is

hereby amended to read as follows:

16-59-9. Educational budget and appropriations.

(a) The general assembly shall annually appropriate any sums it deems necessary for

support and maintenance of higher education in the state and the state controller is authorized and

directed to draw his or her orders upon the general treasurer for the payment of the appropriations

or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him

or her of proper vouchers as the council on postsecondary education may by rule provide. The

council shall receive, review, and adjust the budget for the office of postsecondary commissioner

and present the budget as part of the budget for higher education under the requirements of § 35-3-

4.

(b) The office of postsecondary commissioner and the institutions of public higher

education shall establish working capital accounts.

(c) Any tuition or fee increase schedules in effect for the institutions of public higher

education shall be received by the council on postsecondary education for allocation for the fiscal

year for which state appropriations are made to the council by the general assembly; provided that

no further increases may be made by the board of education or the council on postsecondary

education for the year for which appropriations are made. Except that these 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 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 and 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, with the exception of the mandatory fees covered by the Rhode Island promise

scholarship program as established by § 16-107-3. Any debt-service costs on general obligation

bonds presented to the voters in November 2000 and November 2004 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 this self-supporting requirement in order to provide

funds for the building construction and rehabilitation program. The institutions of public higher

education will establish policies and procedures that enhance the opportunity for auxiliary facilities

to be self-supporting, including that all faculty provide timely and accurate copies of booklists 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.

(f) The board of education is authorized to establish two (2) restricted-receipt accounts for

the higher education and industry centers established throughout the state: one to collect lease

payments from occupying companies, and fees from room and service rentals, to support the

operation and maintenance of the facilities; and one to collect donations to support construction,

operations and maintenance. All such revenues shall be deposited to the restricted-receipt accounts.

(g) Notwithstanding subsections (a) and (d) of this section or any provisions of this title, to

the extent necessary to comply with the provisions of any outstanding bonds issued by the Rhode

Island health and educational building corporation or outstanding lease certificates of participation,

in either case, issued for the benefit of the university of Rhode Island, the community college of

Rhode Island, and/or Rhode Island college, to the extent necessary to comply with the provisions

of any such bonds or certificates of participation, the general assembly shall annually appropriate

any such sums it deems necessary from educational and general revenues (including, but not limited

to, tuition) and auxiliary enterprise revenues derived from the university of Rhode Island, the

community college of Rhode Island and Rhode Island college, to be allocated by the council on

postsecondary education or by the board of trustees of the university of Rhode Island, as

appropriate, in accordance with the terms of the contracts with such bondholders or certificate

holders.

(h) The board of education is authorized to establish a restricted-receipt account for income

generated by the Rhode Island nursing education center through the rental of classrooms,

laboratories, or other facilities located on the Providence campus of the nursing education center.

All such revenues shall be deposited to the restricted receipt account.

(i) The board of education is authorized to establish a restricted-receipt account for the

receipt and expenditure of monies received from IGT Global Solutions Corporation for the purpose

of financing scholarships relating to studying science, technology, engineering, or mathematics at

an accredited educational institution. This account shall be housed within the budget of the office

of the postsecondary commissioner and exempt from the indirect cost recovery provisions of § 35-

4-27.

SECTION 2. Section 21-28.11-13 of the General Laws in Chapter 21-28.11 entitled "The

Rhode Island Cannabis Act" is hereby amended to read as follows:

21-28.11-13. Taxes.

(a) The following taxes are imposed on the retail sale of adult use cannabis pursuant to the

provisions of this chapter.

(1) Sales tax pursuant to the provisions of § 44-18-18;

(2) A state cannabis excise tax equal to ten percent (10%) of each retail sale as defined in

§ 44-18-8; and

(3) A local cannabis excise tax equal to three percent (3%) of each retail sale as defined in

§ 44-18-8.

(b) The assessment, collection, and enforcement of the sales tax pursuant to § 44-18-18,

the state cannabis excise tax, and the local cannabis excise tax shall be pursuant to the provisions

of chapters 18 and 19 of title 44 and paid to the tax administrator by the retailer at the time and in

the manner prescribed for sales tax in § 44-19-10. The retailer shall add the taxes imposed by this

chapter to the sales price or charge, and when added, the taxes constitute a part of the price or

charge, is a debt from the consumer or user to the state, and is recoverable at law in the same manner

as other debts.

(c) All sums received by the division of taxation under this section as local cannabis excise

tax or associated amounts as penalties, forfeitures, interest, costs of suit, and fines for failure to

timely report or pay the local cannabis excise tax shall be distributed at least quarterly and credited

and paid by the state treasurer to the city or town where the cannabis is delivered.

(d) There is created within the general fund a restricted receipt account known as the

"marijuana trust fund." Revenue collected from the state cannabis excise tax or associated amounts

as penalties, forfeitures, interest, costs of suit, and fines for failure to timely report or pay the state

cannabis excise tax shall be deposited into this account and used to fund programs and activities

related to program administration; revenue collection and enforcement; substance use disorder

prevention for adults and youth; education and public awareness campaigns, including awareness

campaigns relating to driving under the influence of cannabis; treatment and recovery support

services; public health monitoring, research, data collection, and surveillance; law enforcement

training and technology improvements, including grants to local law enforcement; and such other

related uses that may be deemed necessary.

(e) Revenue collected from the sales tax shall be deposited into the general fund.

(f) The budget officer is hereby authorized to create restricted receipt accounts entitled

"marijuana trust fund allocation" in any department or agency of state government wherein monies

from the marijuana trust fund are appropriated by the general assembly for the programmatic

purposes set forth in subsection (d) of this section.

SECTION 3. Chapter 23-17.14 of the General Laws entitled "The Hospital Conversions

Act" is hereby amended by adding thereto the following section:

23-17.14-36. Hospital conversion monitoring account.

There is hereby established within the department of health, a restricted receipt account

entitled "Hospital Conversion Monitoring.". This account shall be used for the sole purpose to fund

monitoring activities associated with hospital conversions pursuant to § 23-17.14-28(d)(1), (2), (3),

and (4). Funds held in non-state escrow, whether currently existing or prospective, through

agreement between the department of health and the conversion acquiror may be deposited into the

restricted receipt account and disbursed, as necessary, to conduct the monitoring activities

associated with § 23-17.14-28(d) (1), (2), (3), and (4).

SECTION 4. 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 § 35-1-4, 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 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. The Grants Management Administration account

shall not include an allocation of the State Fiscal Recovery Fund or the Coronavirus Capital Projects

Fund. 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, the federally determined end of performance period. 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 5. 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 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

Rhode Island Statewide Opioid Abatement Account

HCBS Support- ARPA

HCBS Admin Support- ARPA

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

Marijuana Trust Fund

Social Equity Assistance Fund

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

IGT STEM Scholarships

Department of Labor and Training

Job Development Fund

Rhode Island Council on the Arts

Governors' Portrait Donation Fund

Statewide records management system account

SECTION 6. Section 39-1-42 of the General Laws in Chapter 39-1 entitled "Public Utilities

Commission" is hereby amended to read as follows:

39-1-42. Access to telephone information services for persons with disabilities.

(a) The public utilities commission shall establish, administer, and promote an information

accessibility service that includes:

(1) A statewide telephone relay service and, through the competitive bidding process,

contract for the administration and operation of such a relay system for utilization of the

telecommunications network by persons who are deaf, hard-of-hearing, and speech-impaired

persons;

(2) The adaptive telephone equipment loan program capable of servicing the needs of

persons who are deaf, hard of hearing, severely speech impaired, or those with neuromuscular

impairments for use with a single-party telephone line, or wireless telephone, to any subscriber who

is certified as deaf, hard of hearing, severely speech impaired, or with neuromuscular impairments

by a licensed physician, audiologist, speech pathologist, or a qualified state agency, pursuant to

chapter 23 of this title; and

(3) A telephone access to the text of newspaper programs to residents who are blind, deaf

or blind, visually impaired, or reading impaired with a single-party telephone line.

(b) The commission shall establish, by rule or regulation, an appropriate funding

mechanism to recover the costs of providing this service from each residence and business

telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and

each service line or trunk, and upon each user interface number or extension number or similarly

identifiable line, trunk, or path to or from a digital network. Notwithstanding the foregoing, there

shall not be any additional funding mechanism used to charge each residence and business

telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and

each service line or trunk, or upon each user interface number or extension number or similarly

identifiable line, trunk, or path to or from a digital network, to recover the costs of providing the

services outlined in subsection (a)(1), (2) or (3) above.

(c) The commission, with the assistance of the state commission on the deaf and hard of

hearing, shall also develop the appropriate rules, regulations, and service standards necessary to

implement the provisions of subsection (a)(1). At a minimum, however, the commission shall

require, under the terms of the contract, that the relay service provider:

(1) Offer its relay services seven (7) days a week, twenty-four (24) hours a day, including

holidays;

(2) Hire only qualified salaried operators with deaf language skills; and

(3) Maintain the confidentiality of all communications.

(d) The commission shall collect from the telecommunications service providers the

amounts of the surcharge collected from their subscribers and remit to the department of human

services an additional ten thousand dollars ($10,000) annually commencing in fiscal year 2005 for

the adaptive telephone equipment loan program and forty thousand dollars ($40,000) to the

department of human services for the establishment of a new telephone access to the text of

newspaper programs. In addition, eighty thousand dollars ($80,000) one hundred thousand dollars

($100,000) shall annually be remitted to the Rhode Island commission on the deaf and hard of

hearing for an emergency and public communication access program, pursuant to § 23-1.8-4. The

surcharge referenced hereunder shall be generated from existing funding mechanisms and shall not

be generated as a result of any new funding mechanisms charged to each residence and business

telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and

each service line or trunk, or upon each user interface number or extension number or similarly

identifiable line, trunk, or path to or from a digital network.

SECTION 7. Section 42-7.2-10 of the General Laws in Chapter 42-7.2 entitled "Office of

Health and Human Services" is hereby amended to read as follows:

42-7.2-10. Appropriations and disbursements.

(a) The general assembly shall annually appropriate such sums as it may deem necessary

for the purpose of carrying out the provisions of this chapter. The state controller is hereby

authorized and directed to draw his or her orders upon the general treasurer for the payment of such

sum or sums, or so much thereof as may from time to time be required, upon receipt by him or her

of proper vouchers approved by the secretary of the executive office of health and human services,

or his or her designee.

(b) For the purpose of recording federal financial participation associated with qualifying

healthcare workforce development activities at the state's public institutions of higher education,

and pursuant to the Rhode Island designated state health programs (DSHP), as approved by the

Centers for Medicare & Medicaid Services (CMC) October 20, 2016, in the 11-W-00242/1

amendment to Rhode Island's section 1115 Demonstration Waiver, there is hereby established a

restricted-receipt account entitled "Health System Transformation Project" in the general fund of

the state and included in the budget of the office of health and human services.

(c) There are hereby created within the general fund of the state and housed within the

budget of the office of health and human services two restricted receipt accounts, respectively

entitled "HCBS Support-ARPA" and "HCBS Admin Support-ARPA". Amounts deposited into

these accounts are equivalent to the general revenue savings generated by the enhanced federal

match received on eligible home and community-based services between April 1, 2021, and March

31, 2022, allowable under Section 9817 of the American Rescue Plan Act of 2021, P.L. Pub. L.

No. 117-2. Funds deposited into the "HCBS Support- ARPA" account will be used to finance the

state share of newly eligible medicaid Medicaid expenditures by the office of health and human

services and its sister agencies, including the department of children, youth, and families, the

department of health, and the department of behavioral healthcare, developmental disabilities and

hospitals. Funds deposited into the "HCBS Admin Support-ARPA" account will be used to finance

the state share of allowable administrative expenditures attendant to the implementation of these

newly eligible medicaid Medicaid expenditures. The accounts created under this subsection shall

be exempt from the indirect cost recovery provisions of § 35-4-27 of the Rhode Island general laws.

(d) There is hereby created within the general fund of the state and housed within the budget

of the office of health and human services a restricted receipt account entitled "Rhode Island

Statewide Opioid Abatement Account" for the purpose of receiving and expending monies from

settlement agreements with opioid manufacturers, pharmaceutical distributors, pharmacies, or their

affiliates, as well as monies resulting from bankruptcy proceedings of the same entities. The

executive office of health and human services shall deposit any revenues from such sources that

are designated for opioid abatement purposes into the restricted receipt account. Funds from this

account shall only to be used for forward-looking opioid abatement efforts as defined and limited

by any settlement agreements, state-city and town agreements, or court orders pertaining to the use

of such funds. By January 1 of each calendar year, the secretary of health and human services shall

report to the governor, the speaker of the house of representatives, the president of the senate, and

the attorney general on the expenditures that were funded using monies from the Rhode Island

statewide opioid abatement account and the amount of funds spent. The account created under this

subsection shall be exempt from the indirect cost recovery provisions of § 35-4-27 of the Rhode

Island General Laws. No governmental entity has the authority to assert a claim against the entities

with which the attorney general has entered into settlement agreements concerning the

manufacturing, marketing, distributing, or selling of opioids that are the subject of the Rhode Island

Memorandum of Understanding Between the State and Cities and Towns Receiving Opioid

Settlement Funds executed by every city and town and the attorney general and wherein every city

and town agreed to release all such claims against these settling entities, and any amendment

thereto. Governmental entity means any state or local governmental entity or sub-entity and

includes, but is not limited to, school districts, fire districts, and any other such districts. The claims

that shall not be asserted are the released claims, as that term is defined in the settlement agreements

executed by the attorney general, or, if not defined therein, the claims sought to be released in such

settlement agreements.

SECTION 8. Section 7 of this Article shall take effect as of July 1, 2021. Sections 1 through

6 of this Article shall take effect as of July 1, 2022.