It is enacted by the General Assembly as follows:

SECTION 1. Section 29-3.1-8 of the General Laws in Chapter 29-3.1 entitled "Department of State Library Services" is hereby amended to read as follows:

29-3.1-8. Gifts, donations, and funds. -- The director of state library services may accept donations of funds or property, real or personal with the approval of the director of administration, for the department of state library services or any of its divisions . {ADD and in his or her discretion, with the approval of the library board, shall hold the donations in the form in which they were given for the purposes of the department of state library services, or dispose of them, with any financial benefits accruing to the department of state library services. ADD} The director of state library services shall be the authorized agent to accept, and receive{ADD , and administer, with the approval of the library board, ADD} any and all funds, moneys, or library materials granted, furnished, provided, appropriated, and/or dedicated or made available by the United States of America or any of its departments, commissions, boards, bureaus, or agencies for library services in the state of Rhode Island other than funds, moneys, or library materials granted, furnished, provided, appropriated, and/or dedicated or made available directly to any agency or institution. The director of state library services shall turn over to the general treasurer for proper custody and safekeeping all the funds paid to the state from the federal treasury or other donating agency . {ADD , and the general treasurer shall disburse these funds solely for the purpose provided by the original grantor upon orders drawn by the state controller upon his or her receipt of duly authenticated vouchers. Any funds lost or diverted from the purposes for which paid by the United States of America shall be repaid by the state to the United States of America. ADD}

SECTION 2. This act shall take effect upon passage.