The bill amends Section 35-4-27 of the General Laws in Chapter 35-4, which pertains to "State Funds," by introducing new provisions regarding indirect cost recoveries on restricted receipt accounts. Effective January 1, 2025, the bill mandates that a ten percent (10%) indirect cost recovery of cash receipts be transferred from all restricted receipt accounts to be recorded as general revenues in the general fund. However, it specifies that no transfers will occur from cash receipts that are exclusively derived from certain sources, including contributions from nonprofit organizations, federal grant funds, and specific transfers for debt service payments. Additionally, the bill lists numerous restricted receipt accounts that are exempt from these provisions.

Furthermore, the bill adds the "Workers' Compensation Administrative Fund" to the list of restricted receipt accounts that are not subject to indirect cost recoveries. This inclusion aims to protect the funds associated with workers' compensation from being impacted by the new indirect cost recovery requirements. The act will take effect upon passage, ensuring that the changes are implemented promptly.