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art.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 16-57 of the General Laws entitled "Rhode Island Higher Education

Assistance Act [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby

amended by adding thereto the following sections:

     16-57-4.1. Dissolution of division of higher education assistance -- Transfer of

functions.

     (a) Effective July 1, 2025, the division of higher education assistance shall be dissolved.

Upon said dissolution and date, all functions, powers, duties and authority of the division of higher

education assistance shall transfer to the office of postsecondary commissioner.

     (b) On July 1, 2025, the office of postsecondary commissioner shall assume all rights,

responsibilities, duties, assets, liabilities and obligations of the dissolved division of higher

education assistance, and the office of postsecondary commissioner shall be considered for all

purposes the successor in interest to the division of higher education assistance.

     (c) All contracts and agreements of whatsoever kind of the division of higher education

assistance are hereby assigned, transferred to, and assumed by the office of postsecondary

commissioner.

     (d) Whenever in any general law, public law or rule or regulation reference is made to "the

division of higher education assistance", the reference shall be deemed to refer to and mean "the

office of postsecondary commissioner", which also may be referred to as the "office".

     16-57-4.2. Tuition savings program fund.

     There is hereby established a restricted receipt account in the general fund and housed in

the office of postsecondary commissioner to be known as the "tuition savings program fund". The

purpose of the fund is to receive and disburse scholarship funds pursuant to the provisions of this

chapter.

     SECTION 2. Sections 16-57-2, 16-57-3, 16-57-4, 16-57-6.1, 16-57-7, 16-57-8, 16-57-9,

16-57-10 and 16-57-12 of the General Laws in Chapter 16-57 entitled "Rhode Island Higher

Education Assistance Act [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]"

are hereby amended to read as follows:

     16-57-2. Findings.

     The purpose of this chapter is to authorize a system of financial assistance, consisting of

loan guaranties, savings programs, and other aids, for qualified students, parents, and others

responsible for paying the costs of education to enable them to obtain an education beyond the high

school level by attending public or private educational institutions. The general assembly has found

and declares that it is in the public interest and essential to the welfare and well being of the

inhabitants of the state and to the proper growth and development of the state to foster and provide

financial assistance to qualified students, parents, and others responsible for paying the costs of

education in order to help prospective students to obtain an education beyond the high school level.

The general assembly has found that many inhabitants of the state who are fully qualified to enroll

in appropriate educational institutions for furthering their education beyond the high school level

lack the financial means and are unable, without financial assistance as authorized under this

chapter, to pay the cost of their education, with a consequent irreparable loss to the state of valuable

talents vital to its welfare. The general assembly also recognizes that educational institutions for

higher education are in need of appropriate additional means to provide financial assistance to

qualified students, parents, and others responsible for paying the costs of education. The general

assembly has determined that the establishment of a proper system of financial assistance,

containing eligibility opportunities for students and residents of this state and other states serves a

public purpose and is fully consistent with the long established policy of the state to encourage,

promote, and assist the education of the people of the state. The general assembly further finds that

higher education financial assistance needs of Rhode Islanders will be better served by transferring

all of the functions and programs of the former Rhode Island higher education assistance authority

to and of the Rhode Island division of higher education assistance to the office of postsecondary

commissioner and the office of the general treasurer.

     16-57-3. Definitions.

     As used in this chapter, the following words and terms have the following meanings unless

the context indicates another or different meaning or intent:

     (1) “Authority” means the governmental agency and public instrumentality previously

authorized, created, and established pursuant to § 16-57-4 commissioner of postsecondary

education.

     (2) “Commissioner of postsecondary education” means the commissioner appointed by the

council on postsecondary education pursuant to § 16-59-6 or his or her the commissioner's

designee.

     (3) “Eligible borrower” means a student, or the parent of a student, who is either a resident

of the state or who, under rules promulgated by the office, is qualified to make an eligible loan.

     (4) “Eligible institution,” subject to further particular or more restrictive definition by

regulation of the office, means:

     (i) An institution of higher learning;

     (ii) A vocational school; or

     (iii) With respect to students who are nationals of the United States, an institution outside

the United States that is comparable to an institution of higher education or to a vocational school

and that has been approved by the commissioner of postsecondary education for purposes of the

guaranteed student loan program.

     (5) “Eligible loan” means a loan to a student or to the parent of a student insured or

guaranteed by the commissioner of postsecondary education, or by any other governmental or

private agency, corporation, or organization having a reinsurance or guaranty agreement with the

commissioner applicable to the student loan.

     (6) “Guaranteed student loan program” means the program of federal student loan

insurance and reinsurance administered by the commissioner of postsecondary education.

     (7) “Lender,” subject to further particular or more restrictive definition by regulation of the

office, means any governmental or private agency, corporation, organization, or institution

designated as an “eligible lender” by federal statute, regulation, or administrative ruling for the

purposes of the guaranteed student loan program.

     (8) “Participant” means an individual, corporation, trust, or other “person” within the

meaning of § 529 of the Internal Revenue Code [26 U.S.C. § 529], who makes contributions to the

tuition savings program established pursuant to § 16-57-6.1 for purposes of paying qualified higher

education expenses on behalf of a beneficiary.

     (9) “Participating institution” means an institution for higher education that agrees to

participate in a savings program or pre-paid tuition program established pursuant to this chapter.

     (10) “Pre-paid tuition program” means a program administered by the division, in

conjunction with the executive director of the Rhode Island Student Loan Authority and the

commissioner of postsecondary education, that provides a means for qualified students, parents,

and others responsible for paying the costs of education to fix all or a portion of the direct cost of

attendance at participating institutions in one or more future years.

     (11) “Program” means the tuition savings program established pursuant to § 16-57-6.1.

     (12) “Qualified higher education expenses” means the costs of tuition, fees, books, supplies

and equipment required for enrollment or attendance at an institution of higher education, and other

education costs defined by federal law.

     (13) “Secretary” means the United States secretary of education.

     (14) “State” means the state of Rhode Island.

     (15) “Student,” as used with reference to the guaranteed student loan program and the

parent loan program, means an individual who, under rules promulgated by the division

commissioner of postsecondary education, is enrolled or accepted for enrollment at an eligible

institution and who is making suitable progress in his or her the student's education toward

obtaining a degree or other appropriate certification in accordance with standards acceptable to the

authority.

     (16) “Tuition savings program” or “savings program” means a program approved and

administered by the general treasurer, in conjunction with the executive director of the Rhode Island

Student Loan Authority, and the commissioner of postsecondary education, designed to facilitate

and encourage savings by, or on behalf of, students, future students, and parents for the purpose of

paying the costs of attending institutions of higher education.

     (17) “Council” means the council on postsecondary education established pursuant to § 16-

59-1.

     (18) “Division” means the Rhode Island division of higher education assistance, the

division authorized, created, and established pursuant to § 16-57-4, and dissolved pursuant to the

provisions of § 16-57-4.1.

     16-57-4. Creation Authorization and powers.

     (a) There is authorized, created, and established within the The office of the commissioner

of postsecondary education, a division of higher education assistance is hereby granted and

authorized to use all of the powers set forth in this chapter for the purposes of guaranteeing eligible

loans to students in eligible institutions and to parents of those students and administering other

programs of postsecondary student financial assistance assigned by law to the division

commissioner of postsecondary education.

     (b) The exercise by the division commissioner of postsecondary education of the powers

conferred by this chapter shall be deemed and held to be the performance of an essential

governmental function of the state for public purposes. It is the intent of the general assembly by

the passage of this chapter to vest in the office commissioner all powers, authority, rights,

privileges, and titles that may be necessary to enable it to accomplish the purposes set forth in this

section and this chapter, and the powers granted by it shall be liberally construed in conformity

with these purposes.

     (c) The authority and its corporate existence shall be terminated on July 1, 2015, or upon

approval by the U.S. Department of Education, whichever is later, and all its rights and properties

shall pass to and be vested in the division of higher education assistance, except as otherwise

provided in § 16-57-6.1, and except for any real property held by the authority, the legal title to

which is hereby passed to and vested in (in trust for the state) the council on postsecondary

education. The division shall continue until terminated by law or until the division shall cease

entirely and continuously to conduct or be involved in any business in furtherance of its purposes;

provided, that no termination shall take effect so long as the division shall have guaranties or other

obligations outstanding, unless adequate provision shall have been made for the payment of the

obligations pursuant to the documents securing them or to this law. Upon termination of the

existence of the division, all its rights and properties shall pass to and be vested in the state. At no

time shall the assets or other property of the division enure to the benefit of any person or other

corporation or entity.

     (d)(c) Except as provided in § 16-57-6.1, effective July 1, 2015 2025, or upon approval by

the U.S. Department of Education, whichever is later:

     (i) All functions formerly administered by the Rhode Island higher education assistance

authority are hereby transferred to the and by Rhode Island division of higher education assistance

are hereby transferred to the office of postsecondary commissioner;

     (ii) The Rhode Island division of higher education assistance office of postsecondary

commissioner shall assume all rights, duties, assets, liabilities, and obligations of the former Rhode

Island higher education assistance authority and the Rhode Island division of higher education

assistance. The office of postsecondary commissioner shall be considered to be the successor in

interest to both the Rhode Island higher education assistance authority and the Rhode Island

division of higher education assistance; and

     (iii) All contracts and agreements of whatsoever kind of the Rhode Island higher education

assistance authority are hereby assigned, transferred to, and assumed by and by the Rhode Island

division of higher education assistance are hereby assigned, transferred to and assumed by office

of postsecondary commissioner.

     (e)(d) Upon the completion of the transfer, the corporation known as the “Rhode Island

higher education assistance authority” Rhode Island division of higher education assistance shall

cease to exist. Whenever in any general law, or public law or rule or regulation reference is made

to the “Rhode Island higher education assistance authority,” the reference shall be deemed to refer

to and mean or the “Rhode Island division of higher education assistance,” which also may be

referred to as the “division.” the reference shall be deemed to refer to and mean the office of

postsecondary commissioner.

     16-57-6.1. Tuition savings program.

     (a) The general treasurer, in conjunction with the division, the state investment

commission, executive director of the Rhode Island student loan authority, and the commissioner

of postsecondary education, shall establish, in any form as he or she deems appropriate, a tuition

savings program to allow persons to save money for the sole purpose of meeting qualified higher

education expenses.

     (b) All money received in connection with the tuition savings program shall be segregated

from all other funds into two (2) funds, a program fund and an administrative fund. No more than

two percent (2%) of money in the program fund may be transferred annually to the administrative

fund for the purpose of paying operating costs of administering the tuition savings program. Money

accrued by participants in the program fund may be used for payments to an eligible institution. All

proceeds from the tuition savings program shall be directed to the administrative fund, and to the

extent they exceed the operating costs of administering the tuition savings program, said excess

shall be used for financial aid-related activities in Rhode Island pursuant to § 16-56-6.

     (c) The state investment commission shall invest money within the program fund in any

investments that are authorized by the general laws, including equities and fixed-income securities.

The composition of investments shall be determined by the state investment commission.

     (d) A participant may at any time withdraw funds from the participant’s account in the

tuition savings program in an amount up to the value of the account at the time the withdrawal is

implemented, less such administrative fee as may be levied by the treasurer in connection with the

withdrawal.

     (e) Notwithstanding any of the foregoing provisions, no administrative fee may be levied

by the treasurer in the event that a participant requests withdrawal of funds from the participant’s

account in the tuition savings program on account of, and within the meanings of § 529 of the

Internal Revenue Code [26 U.S.C. § 529]:

     (1) The death of the beneficiary of the account;

     (2) The disability of the beneficiary; or

     (3) A scholarship, allowance, or payment received by the beneficiary to the extent that the

amount of the refund does not exceed the amount of the scholarship, allowance, or payment.

     (f) In the event that a participant requests a withdrawal from an account in the tuition

savings program other than: (1) A withdrawal used for qualified higher education expenses of the

beneficiary of the account or (2): For a reason referred to in subdivision (e)(1), (e)(2), or (e)(3) of

this section, the treasurer shall impose a more than de minimis penalty on the earnings portion of

the withdrawal in accordance with § 529 of the Internal Revenue Code [26 U.S.C. § 529]; provided

that no penalty shall be imposed with respect to any such withdrawal, or any other withdrawal,

from any account in the tuition savings plan to which the tax made applicable by § 529 of the

Internal Revenue Code [26 U.S.C. § 529] is effective.

     (g) [Deleted by P.L. 2015, ch. 141, art. 7, § 6.]

     16-57-7. Council on postsecondary education.

     (a) The council on postsecondary education established pursuant to § 16-59-1 shall retain

all authority formerly vested in the higher education assistance authority board of directors, except

as provided by § 16-57-6.1. Whenever in any general or public law reference is made to the “board

of directors of the higher education assistance authority,” the reference shall be deemed to refer to

and mean the “council on postsecondary education.” The council on postsecondary education shall

be the employer of record for the division of higher education assistance.

     (b) No full-time employee shall, during the period of his or her employment by the division,

engage in any other private employment, profession, or business, except with the approval of the

commissioner of postsecondary education; provided, that the executive director shall not engage in

any other private employment, profession, or business, including, but not limited to, consulting.

     16-57-8. Designated agency.

     The division established within the office of the postsecondary commissioner is designated

the state agency to apply for, receive, accept, and disburse federal funds, and funds from other

public and private sources, made available to the state for use as reserves to guarantee student loans

or as administrative money to operate student loan programs, and is designated to administer any

statewide programs of student assistance that shall be established under federal law.

     16-57-9. Loans to minors — Loan obligations.

     (a) Any person qualifying for an eligible loan shall not be disqualified to receive a loan

guaranteed by the division office of the postsecondary commissioner by reason of his or her the

person being a minor. For the purpose of applying for, securing, receiving, and repaying a loan,

any person shall be deemed to have full legal capacity to act and shall have all the rights, powers,

privileges, and obligations of a person of full age with respect to a loan.

     (b) No loan obligation incurred by any individual under the provisions of this chapter may

be expunged, reduced, or discharged in any proceeding, including any proceeding in federal

bankruptcy court. Any individual receiving a loan under the provisions of this chapter shall be

required to sign an affidavit acknowledging the loan and agreeing to this condition.

     16-57-10. Reserve funds.

     (a) To ensure the continued operation and solvency of the guaranteed student loan program,

the office of the postsecondary commissioner shall create and establish reserve funds, and may pay

into the funds any money appropriated and made available by the state or any other source for the

purpose of the funds, and any money collected by the division office as fees for the guaranty of

eligible loans.

     (b) Furthermore, it is the intent of the general assembly that these funds eventually be used

to increase financial assistance to Rhode Island students in the form of scholarships and grants as

approved by the commissioner of postsecondary education and as directed by the U.S. Department

of Education and in accordance with federal statutes and regulations governing the use of funds in

the guaranty agency’s operating fund pursuant to the provisions and restrictions of the 1998

reauthorization of the federal Higher Education Act.

     (c) [Deleted by P.L. 2015, ch. 141, art. 7, § 6.]

     16-57-12. Credit of state.

     Guaranties made under the provisions of this chapter shall not constitute debts, liabilities,

or obligations of the state or of any political subdivision of the state other than the division of higher

education assistance office of the postsecondary commissioner or a pledge of the faith and credit

of the state or any political subdivision other than the division of higher education assistance office

of the postsecondary commissioner, but shall be payable solely from the revenues or assets of

reserve funds set forth in § 16-57-10.

     SECTION 3. Section 24-18-7 of the General Laws in Chapter 24-18 entitled "Municipal

Road and Bridge Revolving Fund" is hereby amended to read as follows:

     24-18-7. Procedure for project approval.

     (a) By September 1, 2013, the department shall promulgate rules and regulations

establishing the project evaluation criteria and the process through which a city or town may submit

an infrastructure plan. By December 31, 2013, the agency shall promulgate rules and regulations

to effectuate the provisions of this chapter which may include, without limitation, forms for

financial assistance applications, loan agreements, and other instruments. All rules and regulations

promulgated pursuant to this chapter shall be promulgated in accordance with the provisions of

chapter 35 of title 42.

     (b) Cities and towns shall submit infrastructure plans to the department in accordance with

the department’s rules and regulations promulgated pursuant to subsection (a) of this section.

     (c) The department shall evaluate all submitted infrastructure plans and, in accordance with

the project evaluation criteria, identify all eligible projects, and after a public hearing, the

department shall finalize and provide the agency and statewide planning with a project priority list.

The agency shall not award financial assistance to any project not listed on the project priority list

other than as set forth in subsection (f) herein.

     (d) The agency shall not obligate more than fifty percent (50%) of available funding in any

calendar year to any one city or town unless there are no other eligible projects on the project

priority list.

     (e) Upon issuance of the project priority list, the agency shall award financial assistance to

cities and towns for approved projects. The agency may decline to award financial assistance to an

approved project that the agency determines will have a substantial adverse effect on the interests

of holders of bonds or other indebtedness of the agency or the interests of other participants in the

financial assistance program, or for good and sufficient cause affecting the finances of the agency.

All financial assistance shall be made pursuant to a loan agreement between the agency and the city

or town, acting by and through the officer or officers, board, committee, or other body authorized

by law, or otherwise its chief executive officer, according to terms and conditions as determined

by the agency, and each loan shall be evidenced and secured by the issue to the agency of city or

town obligations in fully marketable form in principal amount, bearing interest at the rate or rates

specified in the applicable loan agreement, and shall otherwise bear such terms and conditions as

authorized by this chapter and/or the loan agreement.

     (f) Notwithstanding any other provision of this chapter, the agency may provide financial

assistance for an approved project without the necessity of the approved project being listed on a

project priority list if the financial assistance for the approved project is to provide match to other

state funding for the approved project.

     SECTION 4. 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. [Effective January 1,

2025.]

     Indirect cost recoveries of fifteen percent (15%) 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

     Organ Transplant Fund

     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

     Commodity Supplemental Food Program-Claims

     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

     Group Home Facility Improvement Fund

     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 restricted receipt account

     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

     RGGI-Executive Climate Change Coordinating Council Projects

     Electric Vehicle Charging Stations Operating and Maintenance Account

     Office of Energy Resources

     OER Reconciliation Funding

     RGGI Executive Climate Change Coordinating Council Projects

     Electric Vehicle Charging Stations Operating and Maintenance Account

     Clean Transportation Programs

     Department of Housing

     Housing Resources and Homelessness Restricted Receipt Account

     Housing Production Fund

     Low-Income Housing Tax Credit Fund

     Department of Revenue

     Car Rental Tax/Surcharge-Warwick Share

     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

     Rhode Island Cannabis Control Commission

     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

     Tuition Savings Program Fund

     Higher Education and Industry Center

     IGT STEM Scholarships

     Department of Labor and Training

     Job Development Fund

     Contractor Training Restricted Receipt Account

     Workers' Compensation Administrative Account

     Rhode Island Council on the Arts

     Governors’ Portrait Donation Fund

     Statewide records management system account

     SECTION 5. 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 that 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) Identify federal grant-funding opportunities to support the governor’s and general

assembly’s major policy initiatives and provide technical assistance with the application process

and post-award grants management;

     (5) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse for

the application of federal grants;

     (6) Pre-audit all state receipts and expenditures;

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

governor, or by the general assembly;

     (8) Approve the orders drawn on the general treasurer; provided, that the pre-audit 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;

     (9) 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

     (10) 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) 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.

     (e) Upon issuance of the audited financial statement, the controller shall transfer fifty

percent (50%) of 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 and fifty percent (50%) to the

supplemental state budget reserve account as defined in § 35-3-20.2, except that excess revenues

from fiscal year 2023 years 2023 and 2024 shall not be transferred to the supplemental state budget

reserve account.

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

     (1) 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.

     (2) 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.

     (3) 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.

     (4) 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.

     (g) The controller shall oversee the office of risk management (§ 37-11-1 et seq.)

     SECTION 6. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled

"Department of Behavioral Healthcare, Developmental Disabilities and Hospitals" is hereby

amended to read as follows:

     40.1-1-13. Powers and duties of the office.

     Notwithstanding any provision of the Rhode Island general laws to the contrary, the

department of behavioral healthcare, developmental disabilities and hospitals shall have the

following powers and duties:

     (1) To establish and promulgate the overall plans, policies, objectives, and priorities for

state substance abuse education, prevention, and treatment; provided, however, that the director

shall obtain and consider input from all interested state departments and agencies prior to the

promulgation of any such plans or policies;

     (2) Evaluate and monitor all state grants and contracts to local substance abuse service

providers;

     (3) Develop, provide for, and coordinate the implementation of a comprehensive state plan

for substance abuse education, prevention, and treatment;

     (4) Ensure the collection, analysis, and dissemination of information for planning and

evaluation of substance abuse services;

     (5) Provide support, guidance, and technical assistance to individuals, local governments,

community service providers, public and private organizations in their substance abuse education,

prevention, and treatment activities;

     (6) Confer with all interested department directors to coordinate the administration of state

programs and policies that directly affect substance abuse treatment and prevention;

     (7) Seek and receive funds from the federal government and private sources in order to

further the purposes of this chapter;

     (8) To act in conjunction with the executive office of health and human services as the

state’s co-designated agency (42 U.S.C. § 300x-30(a)) for administering federal aid and for the

purposes of the calculation of the expenditures relative to the substance abuse block grant and

federal funding maintenance of effort. The department of behavioral healthcare, developmental

disabilities and hospitals, as the state’s substance abuse authority, will have the sole responsibility

for the planning, policy and implementation efforts as it relates to the requirements set forth in

pertinent substance abuse laws and regulations including 42 U.S.C. § 300x-21 et seq.;

     (9) Propose, review, and/or approve, as appropriate, proposals, policies, or plans involving

insurance and managed care systems for substance abuse services in Rhode Island;

     (10) To enter into, in compliance with the provisions of chapter 2 of title 37, contractual

relationships and memoranda of agreement as necessary for the purposes of this chapter;

     (11) To license facilities and programs for the care and treatment of substance abusers and

for the prevention of substance abuse, and provide the list of licensed chemical dependency

professionals (LCDP) and licensed chemical dependency clinical supervisors (LCDCS) (licensed

by the department of health pursuant to chapter 69 of title 5) for use by state agencies including,

but not limited to, the adjudication office of the department of transportation, the district court and

superior court and the division of probation and parole for referral of individuals requiring

substance use disorder treatment;

     (12) To promulgate rules and regulations necessary to carry out the requirements of this

chapter;

     (13) Perform other acts and exercise any other powers necessary or convenient to carry out

the intent and purposes of this chapter;

     (14) To exercise the authority and responsibilities relating to education, prevention, and

treatment of substance abuse, as contained in, but not limited to, the following chapters: chapters

1.10, 10.1, and 28.2 of title 23; chapters 21.2 and 21.3 of title 16; chapter 50.1 of title 42 [repealed];

chapter 109 of title 42; chapter 69 of title 5; and § 35-4-18;

     (15) To establish a Medicare Part D restricted-receipt account in the hospitals and

community rehabilitation services program and the Rhode Island state psychiatric hospital program

to receive and expend Medicare Part D reimbursements from pharmacy benefit providers consistent

with the purposes of this chapter;

     (16) To establish a RICLAS group home operations restricted-receipt account in the

services for the developmentally disabled program to receive and expend rental income from

RICLAS group clients for group home-related expenditures, including food, utilities, community

activities, and the maintenance of group homes;

     (17) To establish a non-Medicaid, third-party payor restricted-receipt account in the

hospitals and community rehabilitation services program to receive and expend reimbursement

from non-Medicaid, third-party payors to fund hospital patient services that are not Medicaid

eligible; and

     (18) To certify any and all recovery housing facilities directly, or through a contracted

entity, as defined by department guidelines, which includes adherence to using National Alliance

for Recovery Residences (NARR) standards. In accordance with a schedule to be determined by

the department, all referrals from state agencies or state-funded facilities shall be to certified

houses, and only certified recovery housing facilities shall be eligible to receive state funding to

deliver recovery housing services. As of January 1, 2027, all recovery housing facilities shall be

registered with the department and shall adhere to the NARR certification process.

     SECTION 7. Section 42-11-2.5 of the General Laws in Chapter 42-11 entitled "Department

of Administration" is hereby amended to read as follows:

     42-11-2.5. Information technology restricted receipt account and large systems

initiatives fund.

     (a) All sums from the sale of any land and the buildings and improvements thereon, and

other real property, title to which is vested in the state, except as provided in § 37-7-15(b) through

(d), shall be transferred to an information technology restricted receipt account (ITRR account) that

is hereby established. This ITRR account shall consist of such sums from the sale of any land and

the buildings and improvements thereon, and other real property, title to which is vested in the state,

except as provided in § 37-7-15(b) through (d), as well as a share of first response surcharge

revenues collected under the provisions of § 39-21.1-14. This ITRR account may also consist of

such sums as the state may from time to time appropriate; as well as money received from the

disposal of information technology hardware, loan, interest, and service charge payments from

benefiting state agencies; as well as interest earnings, money received from the federal government,

gifts, bequests, donations, or otherwise from any public or private source. Any such funds shall be

exempt from the indirect cost recovery provisions of § 35-4-27.

     (1) This ITRR account shall be used for the purpose of acquiring information technology

improvements, including, but not limited to: hardware, software, consulting services, and ongoing

maintenance and upgrade contracts for state departments and agencies.

     (2) The division of enterprise technology strategy and services of the Rhode Island

department of administration shall adopt rules and regulations consistent with the purposes of this

chapter and chapter 35 of this title, in order to provide for the orderly and equitable disbursement

of funds from this ITRR account.

     (3) For all requests for proposals that are issued for information technology projects, a

corresponding information technology project manager shall be assigned.

     (b) There is also hereby established a special fund to be known as the large systems

initiatives fund (LSI fund), separate and apart from the general fund of the state, to be administered

by the chief information officer within the department of administration for the purpose of

implementing and maintaining enterprise-wide software projects for executive branch departments.

The LSI fund shall consist of such sums as the state may from time to time directly appropriate to

the LSI fund, any accrued interest, and any funds collected pursuant to § 42-11-2.5(b)(1). After the

completion of any project, the chief digital officer shall inform the state controller of unexpended

sums previously transferred to the LSI Fund for that project and the state controller shall

subsequently transfer any such unexpended funds to the information technology restricted receipt

account. The state controller shall transfer any excess interest accrued in the LSI fund and any funds

collected pursuant to § 42-11-2.5(b)(1) to the ITRR account.

     (1) The director of the department of administration may allocate and charge capitalized

costs, in accordance with statewide cost allocation plan, to agencies that benefit from initiatives

funded through the LSI Fund. The department of administration shall include as part of its budget

submission pursuant to § 35-3-4 an expected billing schedule for any capitalized costs that the

department intends to charge to agencies for the next ensuing fiscal year.

     (c) For any new project initiated using sums expended from the LSI Fund, as part of its

budget submission pursuant to § 35-3-4 relative to state fiscal year 2025 and thereafter, the

department of administration shall include a statement of project purpose and the estimated project

cost.

     SECTION 8. Section 45-12-33 of the General Laws in Chapter 45-12 entitled

"Indebtedness of Towns and Cities" is hereby amended to read as follows:

     45-12-33. Borrowing for road and bridge, infrastructure, and school building

projects.

     (a)(1) In addition to other authority previously granted, during calendar year 2014 a city or

town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence

loans from the municipal road and bridge revolving fund administered by the Rhode Island clean

water finance agency Rhode Island infrastructure bank in accordance with chapter 18 of title 24.

Beginning July 1, 2025, and thereafter, a city or town may authorize the issuance of bonds, notes,

or other evidences of indebtedness to evidence loans from the municipal road and bridge revolving

fund administered by the Rhode Island infrastructure bank in accordance with chapter 18 of title

24 to provide a match to other state funding for an approved project from the municipal road and

bridge revolving fund.

     (2) In addition to other authority previously granted, from July 1, 2015 to June 30, 2016, a

city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to

evidence loans from the efficient buildings fund administered by the Rhode Island clean water

finance agency infrastructure bank in accordance with chapter 12.2 of title 46 or the school building

authority capital fund administered by the Rhode Island health and educational building corporation

in accordance with chapter 38.2 of this title.

     (b) These bonds, notes, or other evidences of indebtedness are subject to the maximum

aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.

     (c) The denominations, maturities, interest rates, methods of sale, and other terms,

conditions, and details of any bonds or notes issued under the provisions of this section may be

fixed by resolution of the city or town council authorizing them, or if no provision is made in the

resolution, by the treasurer or other officer authorized to issue the bonds, notes or evidences of

indebtedness; provided, that the payment of principal shall be by sufficient annual payments that

will extinguish the debt at maturity, the first of these annual payments to be made not later than

three (3) years, and the last payment not later than twenty (20) years after the date of the bonds.

     The bonds, notes, or other evidences of indebtedness may be issued under this section by

any political subdivision without obtaining the approval of its electors, notwithstanding the

provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the

contrary.

     SECTION 9. Sections 46-23-18.5 and 46-23-18.6 of the General Laws in Chapter 46-23

entitled "Coastal Resources Management Council" are hereby amended to read as follows:

     46-23-18.5. Fees for disposal.

     The council is authorized to impose a fee of not less than eleven dollars and sixty-five cents

($11.65) thirty-five dollars ($35.00) per cubic yard for the disposal of dredge materials at the sites

established by the council pursuant to § 46-23-18.3, with eleven dollars and sixty-five cents

($11.65) being deposited into the general fund. The amount of the fee established by the council

pursuant to the section shall be reviewed by the council on an annual basis and revised as the council

deems necessary, but in no event shall the fee be set at an amount less than eleven dollars and sixty-

five cents ($11.65) thirty-five dollars ($35.00) per cubic yard of material.

     46-23-18.6. Coastal Resources Management Council Dredge Fund.

     There is hereby created a separate fund to be held by the coastal resources management

council to be known as the dredge fund. Any amount All amounts charged above the eleven dollars

and sixty-five cents ($11.65) pursuant to § 46-23-18.5 must be deposited into the fund and shall

not be deposited into the general fund of the state, but and shall be kept by the general treasurer of

the state in a separate fund for the coastal resources management council, and shall be paid out by

the treasurer upon the order of the council, without the necessity of appropriation or re-

appropriation by the general assembly. Funds must be used to create additional dredging and

disposal options and for the management of said disposal options.

     SECTION 10. This article shall take effect upon passage.