The bill amends Section 35-4-27 of the General Laws in Chapter 35-4, which pertains to "State Funds," specifically addressing the issue of indirect cost recoveries on restricted receipt accounts. The amendment stipulates that indirect cost recoveries of ten percent (10%) of cash receipts are to be transferred from all restricted-receipt accounts to the general fund as general revenues, with certain exceptions. These exceptions include cash receipts with restrictions received exclusively from nonprofit charitable organizations, federal grant funds, or state agency transfers for debt service payment. The amendment also lists numerous restricted receipt accounts across various departments that are exempt from the provisions of this section, indicating that they will not be subject to the 10% indirect cost recovery.

Additionally, the bill introduces new insertions to the list of restricted receipt accounts that are not subject to indirect cost recoveries. These include the Workers' Compensation Administrative Fund, the Rhode Island Uninsured Employers' Fund, and the Rhode Island Uninsured Protection Fund. The explanation provided by the Legislative Council clarifies that the act aims to add these three funds to the list of accounts exempt from indirect cost recoveries. The act is set to take effect upon passage.

Statutes affected:
5401: 35-4-27