ARTICLE 2

RELATING TO STATE FUNDS

     SECTION 1. 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 2. Sections 27-13.1-2 and 27-13.1-7 of the General Laws in Chapter 27-13.1

entitled “Examinations” are hereby amended to read as follows:

     27-13.1-2. Definitions.

     The following terms, as used in this chapter, shall have the respective meanings hereinafter

set forth:

     (1) "Company" means a person engaging in or proposing or attempting to engage in any

transaction or kind of insurance or surety business and any person or group of persons who may

otherwise be subject to the administrative, regulatory or taxing authority of the director;

     (2) "Department" means the department of business regulation;

     (3) "Director" means the director of the department of business regulation of this state or

his or her designee;

     (4) "Examiner" means an individual or firm having been authorized by the director to

conduct an examination or financial analysis under this chapter;

     (5) "Insurer" means any insurance company doing business in this state; and

     (6) "Person" means an individual, aggregation of individuals, trust, association, partnership

or corporation, or any affiliate thereof.; and

     (7) “Pre-examination analysis,” as used in this chapter, means a process whereby the

department collects and analyzes information, including form complaints, filed forms, surveys,

reports and other sources in order to identify policies of or practices by or on behalf of a company

or a person subject to the jurisdiction of the office of the health insurance commissioner which may

pose a potential direct or indirect harm to consumers or that may be in violation of state or federal

laws or regulations.

     27-13.1-7. Cost of examinations.

     (a) The total cost of the pre-examination analyses and the examinations shall be borne by

the examined companies and shall include the following expenses:

     (1) One hundred fifty percent (150%) of the total salaries and benefits paid to the examining

personnel of the banking and insurance division engaged in pre-examination analyses and those

examinations less any salary reimbursements;

     (2) All reasonable technology costs related to the examination process. Technology costs

shall include the actual cost of software and hardware utilized in the examination process and the

cost of training examination personnel in the proper use of the software or hardware;

     (3) All necessary and reasonable education and training costs incurred by the state to

maintain the proficiency and competence of the examining personnel. All these costs shall be

incurred in accordance with appropriate state of Rhode Island regulations, guidelines and

procedures.

     (b) Expenses incurred pursuant to subsections (a)(2) and (a)(3) of this section shall be

allocated equally to each company domiciled in Rhode Island no more frequently than annually

and shall not exceed an annual average assessment of three thousand five hundred dollars ($3,500)

per company for any given three (3) calendar year period. Except as provided in R.I. Gen. Laws §

27-13.1-9(b), Aall revenues collected pursuant to this section shall be deposited as general

revenues. That assessment shall be in addition to any taxes and fees payable to the state.

     SECTION 3. Chapter 27-13.1 of the General Laws entitled "Examinations" is hereby

amended by adding thereto the following section:

     27-13.1-9. Health Insurance Examination Costs and Health Insurance Examination

Cost Recovery Account.

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

the department of business regulation a restricted receipt account entitled “Health Insurance

Regulation and System Planning Cost Recovery.” All funds in the account shall be utilized by the

office of the health insurance commissioner to support the purposes of this chapter.

     (b) Notwithstanding the provision in R.I. Gen. Law § 27-13.1-7(b), all revenues collected

by the office of the health insurance commissioner or at the direction of the health insurance

commissioner pursuant to R.I. Gen. Law § 27-13.1-7(a)(1) in connection with pre- examination

analyses and examinations shall be deposited in the restricted receipt account created by subsection

(a).

     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 of the state and housed within the budget of

the department of administration a restricted receipt account entitled “Grants Management System

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; and approving agreements with federal agencies

pursuant to § 35-1-1. Every state department and agency, as defined in R.I. General Laws § 35-1-

4, which receives federal assistance funds 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.

All funds set aside and designated to be used for grants management shall be deposited into the

restricted receipt account established in this subsection.

     SECTION 5. Section 35-3-24 of the General Laws in Chapter 35-3 entitled “State Budget”

is hereby amended to read as follows:

     35-3-24. Control of state spending.

     (a) All department and agency heads and their employees are responsible for ensuring that

financial obligations and expenditures for which they have responsibility do not exceed amounts

appropriated and are spent in accordance with state laws.

     (b) Persons with the authority to obligate the state contractually for goods and services

shall be designated in writing by department and agency heads.

     (c) In the event of an obligation, encumbrance, or expenditure in excess of general revenue

amounts appropriated, the department or agency head with oversight responsibility shall make a

written determination of the amount and the cause of the overobligation or overexpenditure, the

person(s) responsible, and corrective actions taken to prevent reoccurrence. The plan of corrective

actions contained within the report shall detail an appropriate plan to include, but not limited to,

such issues as the implementation of waiting lists, pro-rata reduction in payments and changes in

eligibility criteria as methods to address the shortfall. The report will be filed within thirty (30)

days of the discovery of the overobligation or overexpenditure with the budget officer, the

controller, the auditor general, and the chairpersons of the house and senate finance committees.

     (d) In the event a quarterly report demonstrates an obligation, encumbrance, or expenditure

in excess of general revenue amounts appropriated in total to the department, the department or

agency head with oversight responsibility shall file monthly budget reports with the chairpersons

of the house and senate finance committees for the remainder of the fiscal year. The monthly budget

reports shall detail steps taken towards corrective actions and other measures to bring spending in

line with appropriations. In addition, the budget officer and controller shall ensure that the

department's or agency's obligations, encumbrances, and expenditures for the remainder of the

fiscal year result in the department or agency ending the fiscal year within amounts appropriated.

     (e) The controller shall not authorize payments from general revenue for additional staff,

contracts, or purchases beyond service levels provided in the previous fiscal year or one-time

purchases of equipment or supplies for any department or agency not projected to end a fiscal year

within amounts appropriated unless the payments are necessitated by immediate health and safety

reasons or to be consistent with a corrective action plan, which shall be documented upon discovery

and reported, along with anticipated or actual expenditures, to the chairpersons of the house and

senate finance committees within fifteen (15) days.

     (f) A state employee who has knowingly and willingly encumbered, obligated, or

authorized the expenditure of state funds in excess of amounts appropriated for those purposes or

entered into contracts without proper authorization may be placed on disciplinary suspension

without pay for up to thirty (30) days in accordance with § 36-4-36.

     (g) A state employee who knowingly, willfully, and repeatedly authorizes actions resulting

in encumbrances or spending of state funds in excess of amounts appropriated may be fined up to

one thousand dollars ($1,000) and/or terminated from employment.

     (h) Upon receipt of any budgetary information indicating an obligation, encumbrance, or

expenditure in excess of the amounts appropriated, the chairperson of the house or senate finance

committee may request a written report to be submitted by the director of administration within ten

(10) calendar days. The report shall indicate if the obligation, encumbrance, or expenditure in

excess of the amounts appropriated resulted in any disciplinary action or other penalty in

accordance with subsection (f) or (g) of this section. If not, the report shall explain why no

disciplinary action or other penalty was imposed in accordance with subsection (f) or (g).

     SECTION 6. Sections 35-4-22.1, 35-4-22.2 and 35-4-27 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) An appropriation is a statutory enactment by the general assembly authorizing the

withdrawal of money from the State treasury. An enactment by the general assembly which only

authorizes, specifies, or otherwise provides that funds may be used for a particular purpose is not

an appropriation.

     (a) (b) 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) (c) 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.

     (d) Additional general revenue shall be deemed to be appropriated in order to:

     (i) Comply with a court order,

     (ii) Respond to a declared state of emergency,

     (iii) Finance programs covered under the caseload estimating conference process set forth

in chapter 35-17 up to the officially adopted estimates in the current fiscal year when the current

appropriations act does not meet the revised estimate subject to the following conditions:

     (1) Appropriations are made up to current fiscal year revenue availability as agreed to in

the revenue estimating conference process.

     (2) If there is less revenue availability than the additional caseload need, Medical

Assistance and federally mandated programs are prioritized for additional appropriations and the

remainder of the additional availability is proportionally assigned to the remaining caseload

programs.

     (e) If the general assembly enacts changes to the current year appropriations act, those

changes shall override subdivision (iii) of subsection (d) of this section.

     35-4-22.2. Use of restricted or special revenue funds.

     (a) Any restricted or special revenue funds which are received by a state agency which 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 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 either privately donated funds from individuals or corporate entities, funds

received from any nonprofit charitable organization qualifying for exemption under section 501 (c)

(3) of the internal revenue code, the proceeds of a multistate settlement administered by the office

of the attorney general, and funds received pursuant to a contract or memorandum of agreement

with a department of another state that are restricted to a specific, time-limited purpose.

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 account to a restricted receipt account

whenever such conversion has been deemed prudent and appropriate by both the auditor general

and the controller according to generally accepted governmental accounting principles and/or

specific pronouncements of the governmental accounting standards board (GASB).

     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

     Health System Transformation Project

     Health Spending Transparency and Containment Account

     Adult Use Marijuana Program Licensing

     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

     Adult Use Marijuana Program

     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

     Adult Use Marijuana Program

     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

     Adult Use Marijuana Program

     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 System 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

     Adult Use Marijuana Program

     Marijuana Cash Use Surcharge

     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

     Health Insurance Regulation and System Planning Cost Recovery

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Adult Use Marijuana Program

     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 7. 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 8. 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 title 42.

     (b) The Rhode Island Council on the Arts shall deposit any funds received from the Rhode

Island Foundation 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.

     (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 9. This article shall take effect upon passage.