R.I. Gen. Laws § 45-13-9: Reimbursement to cities and towns and school districts for the costs of state mandates.

(a)(1) The department of revenue shall submit to the budget office by October 1 of each year, a report by each city and town, of the cost of state mandates established after January 1, 1979, to be reimbursed for the next preceding July 1 — June 30 period.

(2) The budget office shall annually include the statewide total of the statement of costs of state mandates eligible to be reimbursed in the state budget for the next fiscal year for consideration by the governor in preparing a final budget proposal for submission to the general assembly in accordance with § 35-3-7 of the General Laws; provided, that any costs resulting from the rules and regulations of state departments or agencies shall be allocated to the budgets of those departments or agencies.

(b) The state treasurer shall in July of each year distribute to cities and towns the reimbursements for state mandated costs as may be appropriated by the general assembly.