ARTICLE 2

RELATING TO STATE FUNDS

     SECTION 1. 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

federal, state, local or other funding for the approved project.

     SECTION 2. 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

     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

     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

     Higher Education and Industry Center

     IGT STEM Scholarships

     Department of Labor and Training

     Job Development Fund

     Contractor Training Restricted Receipt Account

     Rhode Island Council on the Arts

     Governors’ Portrait Donation Fund

     Statewide records management system account

     SECTION 3. 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 shall not be transferred to the supplemental state budget reserve

account. and that excess revenues from fiscal year 2024 shall not be transferred to the employees’

retirement system of the state of Rhode Island and 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 4. 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 5. 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 federal, state, local or other 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 6. This article shall take effect upon passage.