<BILL_NO>2013 -- H 5127</BILL_NO> <SUB> SUBSTITUTE A AS AMENDED</SUB>

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LC00567/SUB A
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STATE  OF  RHODE  ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

 

A N   A C T

RELATING TO MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2014

Introduced By: Representative Helio Melo

Date Introduced: January 22, 2013

Referred To: House Finance

 

 

It is enacted by the General Assembly as follows:


ARTICLE 1........ RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2014

ARTICLE 2........ RELATING TO MEDICARE EXCHANGE PROGRAM FOR MEDICARE

                            ELIGIBLE RETIREES

ARTICLE 3........ RELATING TO HEALTH INSURANCE BENEFITS

ARTICLE 4........ RELATING TO FICA ALTERNATE RETIREMENT PLAN

ARTICLE 5 ....... RELATING TO HIGHWAYS

ARTICLE 6 ....... RELATING TO DIVISION OF MOTOR VEHICLES

ARTICLE 7........ RELATING TO RHODE ISLAND PUBLIC TELECOMMUNICATIONS

                            AUTHORITY

ARTICLE 8........ RELATING TO LEASE AGREEMENTS FOR LEASED OFFICE AND

                             OPERATING SPACE

ARTICLE 9........ RELATING TO TAXATION

ARTICLE 10 ..... RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF

                            FY 2013

ARTICLE 11...... RELATING TO MUNICIPAL INCENTIVE AID

ARTICLE 12...... RELATING TO HOSPITAL UNCOMPENSATED CARE

ARTICLE 13 ..... RELATING TO EDUCATION AID

ARTICLE 14...... RELATING TO EMPLOYMENT SECURITY JOB DEVELOPMENT

                            FUND ASSESSMENT

ARTICLE 15...... RELATING TO HUMAN RESOURCE INVESTMENT COUNCIL

ARTICLE 16...... RELATING TO RESTRICTED RECEIPT ACCOUNTS

ARTICLE 17...... RELATING TO EMERGENCY AND PUBLIC COMMUNICATION

                            ACCESS FUND

ARTICLE 18 ..... RELATING TO HUMAN SERVICES – TEMPORARY ASSISTANCE FOR

                             NEEDY FAMILIES AND CHILD CARE

ARTICLE 19...... RELATING TO MEDICAL ASSISTANCE

ARTICLE 20...... RELATING TO MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

ARTICLE 21...... RELATING TO RHODE ISLAND PUBLIC TRANSIT AUTHORITY

ARTICLE 22 ..... RELATING TO HISTORIC TAX CREDITS

ARTICLE 23...... RELATING TO STATE AFFAIRS AND GOVERNMENT – THE

                            INNOVATE RHODE ISLAND SMALL BUSINESS PROGRAM

ARTICLE 24...... RELATING TO ECONOMIC DEVELOPMENT

ARTICLE 25……RELATING TO THE EFFECTIVE DATE


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art.001/3/001/2/001/1
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ARTICLE 1 AS AMENDED

Relating To making appropriations in support of fy 2014

SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in this act, the following general revenue amounts are hereby appropriated out of any money in the treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2014. The amounts identified for federal funds and restricted receipts shall be made available pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

Administration

Central Management

       General Revenues                                                                                          2,111,597

           Office of Digital Excellence                                                                          810,441

       Federal Funds                                                                                                   194,591

           Total – Central Management                                                                      3,116,629

Legal Services General Revenues                                                                         1,948,683

Accounts and Control General Revenues                                                              3,966,422

Office of Management and Budget

       General Revenues                                                                                          4,049,888

       Restricted Receipts                                                                                           481,303

           Total – Office of Management and Budget                                                4,531,191

Purchasing

       General Revenues                                                                                          2,689,542

       Federal Funds                                                                                                   193,710

       Other Funds                                                                                                      360,814

           Total – Purchasing                                                                                     3,244,066

Auditing General Revenues                                                                                   1,344,585

Human Resources

       General Revenues                                                                                         8,329,216

       Federal Funds                                                                                                   808,123

       Restricted Receipts                                                                                           469,283

       Other Funds                                                                                                   1,580,772

           Total - Human Resources                                                                        11,187,394

Personnel Appeal Board General Revenues                                                              75,036

Facilities Management                                                                                                        

       General Revenues                                                                                       32,198,875

       Federal Funds                                                                                                   925,630

       Restricted Receipts                                                                                           616,083

       Other Funds                                                                                                   3,696,513

           Total – Facilities Management                                                                 37,437,101

Capital Projects and Property Management General Revenues                           1,240,545

Information Technology

       General Revenues                                                                                       19,293,222

       Federal Funds                                                                                                7,135,490

       Restricted Receipts                                                                                        5,370,582

       Other Funds                                                                                                   2,182,024

           Total – Information Technology                                                              33,981,318

 Library and Information Services

       General Revenues                                                                                         1,007,465

       Federal Funds                                                                                                1,183,126

       Restricted Receipts                                                                                               1,694

           Total - Library and Information Services                                                   2,192,285

Planning

       General Revenues                                                                                         4,701,094

       Federal Funds                                                                                              10,935,098

       Other Funds                                                                                                                  

           Federal Highway – PL Systems Planning                                                   5,039,312

           Total - Planning                                                                                       20,675,504

General

       General Revenues

           Economic Development Corporation                                                         4,545,572

           EDC – Airport Impact Aid                                                                         1,025,000

Sixty percent (60%) of the first one million dollars ($1,000,000) appropriated for airport impact aid shall be distributed to each airport serving more than one million (1,000,000) passengers based upon its percentage of the total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%) of the first one million dollars ($1,000,000) shall be distributed based on the share of landings during the calendar year 2013 at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset Airport, T.F. Green Airport and Westerly Airport, respectively. The Economic Development Corporation shall make an impact payment to the towns or cities in which the airport is located based on this calculation. Each community upon which any parts of the above airports are located shall receive at least twenty-five thousand dollars ($25,000).

           EDC – EPScore (Research Alliance)                                                          1,150,000

           Innovative Matching Grants                                                                          500,000

           Miscellaneous Grants/Payments                                                                    146,049

           Slater Centers of Excellence                                                                      1,000,000

           Torts – Courts                                                                                               400,000

           Current Care/Health Information Exchange                                                  450,000

           I-195 Commission                                                                                        501,000

           RI Film and Television Office                                                                      310,747

           State Employees/Teachers Retiree Health Subsidy                                     2,321,057

           Resource Sharing and State Library Aid                                                     8,773,398

           Library Construction Aid                                                                           2,500,666

       Federal Funds                                                                                                4,345,555

       Restricted Receipts                                                                                           421,500

        Rhode Island Capital Plan Funds

             Statehouse Renovations                                                                           1,879,000

             DoIT Enterprise Operations Center                                                             250,000

             Cranston Street Armory                                                                            1,650,000

             Cannon Building                                                                                         650,000

             Zambarano Building Rehabilitation                                                          1,530,000

             Pastore Center Rehab DOA Portion                                                          1,155,000

             Old State House                                                                                          500,000

             State Office Building                                                                                   715,000

             Old Colony House                                                                                      175,000

             William Powers Building                                                                          2,700,000

             Fire Code Compliance State Buildings                                                        500,000

             Pastore Center Fire Code Compliance                                                      1,691,596

             Pastore Center Utility Systems Upgrade                                                   2,745,789

             Replacement of Fueling Tanks                                                                    300,000

             Environmental Compliance                                                                         200,000

             Big River Management Area                                                                       180,000

             Pastore Center Building Demolition                                                         2,400,000

             Washington County Government Center                                                     612,000

             Veterans Memorial Auditorium                                                                5,298,789

             Chapin Health Laboratory                                                                        1,725,000

             Pastore Center Parking                                                                                300,000

             Pastore Center Water Tanks                                                                        300,000

             Board of Elections New Location                                                            1,250,000

             Pastore Cottages Rehab                                                                               800,000

             Ladd Center Buildings Demolition                                                           1,500,000

             I-195 Commission                                                                                       250,000

             RI Convention Center Authority                                                              1,000,000

             Dunkin Donuts Center                                                                                925,000

             Mathias                                                                                                    1,600,000

             Pastore Center Power Plant                                                                       1,600,000

             Virks                                                                                                        1,000,000

             Harrington Hall Renovations                                                                    1,000,000

             Veterans Land Purchase                                                                           4,150,000

Provided that the cost for the land purchase shall not exceed $70.00 per square foot.

           Total – General                                                                                        70,922,718

Debt Service Payments           

       General Revenues                                                                                      157,387,801

Of the general revenue appropriation for debt service, two million five hundred thousand dollars ($2,500,000) is appropriated for transfer to the Capital Reserve Fund of the EDC Job Creation Guaranty Program.

       Federal Funds                                                                                                2,759,328

       Restricted Receipts                                                                                        2,131,275

       Other Funds

             Transportation Debt Service                                                                   30,369,820

             Investment Receipts – Bond Funds                                                             100,000

             COPS - DLT Building – TDI                                                                       278,848

           Total - Debt Service Payments                                                               193,027,072

Energy Resources

Federal Funds                                                                                                   590,080

Federal Funds – Stimulus                                                                              5,150,000

       Restricted Receipts                                                                                        5,459,477

           Total – Energy Resources                                                                        11,199,557

Rhode Island Health Benefits Exchange Federal Funds                                                  28,348,926

Construction Permitting, Approvals and Licensing

       General Revenues                                                                                          1,421,350

       Restricted Receipts                                                                                        1,408,159

           Total – Construction Permitting, Approvals and Licensing                         2,829,509

Personnel Savings

General Revenues                                                                                        (1,398,040)

Federal Funds                                                                                                  (379,988)

Restricted Receipts                                                                                          (446,548)

        Other Funds                                                                                                    (342,628)

           Total – Personnel Savings                                                                         (2,567,204)

           Grand Total – Administration                                                                428,701,337

Business Regulation

Central Management General Revenues                                                                           1,197,671

Banking Division

       General Revenues                                                                                          1,715,225

       Restricted Receipts                                                                                           125,000

           Total - Banking Division                                                                            1,840,225

Securities Regulation

       General Revenues                                                                                             980,090

       Restricted Receipts                                                                                             15,000

           Total - Securities Regulation                                                                         995,090

Insurance Regulation

       General Revenues                                                                                          3,767,883

       Restricted Receipts                                                                                        1,345,584

           Total - Insurance Regulation                                                                      5,113,467

Office of the Health Commissioner

       General Revenues                                                                                             542,180

       Federal Funds                                                                                                1,747,589

       Restricted Receipts                                                                                             10,500

           Total – Office of the Health Commissioner                                               2,300,269

Board of Accountancy General Revenues                                                                  81,034

Commercial Licensing, Racing & Athletics

       General Revenues                                                                                             707,941

       Restricted Receipts                                                                                           500,329

           Total - Commercial Licensing, Racing & Athletics                                     1,208,270

Board for Design Professionals General Revenues                                                  253,854

           Grand Total - Business Regulation                                                           12,989,880

Labor and Training

Central Management

       General Revenues                                                                                             118,760

       Restricted Receipts                                                                                           342,730

       Rhode Island Capital Plan Funds                                                                                  

             Center General Asset Protection                                                                  702,000

           Total - Central Management                                                                       1,163,490

Workforce Development Services

       General Funds                                                                                               1,250,000

       Federal Funds                                                                                              22,942,484

       Restricted Receipts                                                                                        9,134,984

           Total - Workforce Development Services                                                33,327,468

Workforce Regulation and Safety General Revenues                                            3,002,408

Income Support

       General Revenues                                                                                          4,299,157

       Federal Funds                                                                                              17,957,752

       Federal Funds - Stimulus - UI                                                                      54,810,000

        Restricted Receipts                                                                                        2,008,358

           Job Development Fund                                                                            22,500,000

       Other Funds

           Temporary Disability Insurance Fund                                                    172,549,295

           Employment Security Fund                                                                    271,329,801

               Total - Income Support                                                                      545,454,363

Injured Workers Services Restricted Receipts                                                       9,139,647

Labor Relations Board General Revenues                                                               393,736

           Grand Total - Labor and Training                                                          592,481,112

Department of Revenue

Director of Revenue General Revenues                                                                1,222,847

Office of Revenue Analysis General Revenues                                                         528,721

Lottery Division Lottery Funds                                                                          245,451,858

Municipal Finance General Revenues                                                                  2,351,173

Taxation

       General Revenues                                                                                        18,027,851

       Federal Funds                                                                                                1,261,962

       Restricted Receipts                                                                                           849,626

       Other Funds

           Motor Fuel Tax Evasion                                                                                  43,232

           Temporary Disability Insurance                                                                    916,617

           Total – Taxation                                                                                       21,099,288

Registry of Motor Vehicles

       General Revenues                                                                                        18,895,421

       Federal Funds                                                                                                1,786,689

       Restricted Receipts                                                                                             14,763

       Rhode Island Capital Plan Funds

                 Safety & Emissions Lift Replacement                                                     150,000

           Total – Registry of Motor Vehicles                                                          20,846,873

State Aid

       General Revenue

           Distressed Communities Relief Fund                                                       10,384,458

           Payment in Lieu of Tax Exempt Properties                                              35,080,409

           Motor Vehicle Excise Tax Payments                                                        10,000,000

           Property Revaluation Program                                                                      516,615

           Municipal Aid                                                                                            5,000,000

       Restricted Receipts                                                                                           957,497

           Total – State Aid                                                                                      61,938,979

           Grand Total – Revenue                                                                          353,439,739

Legislature

       General Revenues                                                                                        36,486,933

       Restricted Receipts                                                                                        1,604,615

           Grand Total – Legislature                                                                         38,091,548

Lieutenant Governor

       General Revenues                                                                                             986,890

       Federal Funds                                                                                                1,108,488

           Grand Total - Lieutenant Governor                                                            2,095,378

Secretary of State

Administration General Revenues                                                                         2,078,542

Corporations General Revenues                                                                           2,152,424

State Archives

       General Revenues                                                                                             131,705

       Restricted Receipts                                                                                           449,931

           Total - State Archives                                                                                    581,636

Elections & Civics General Revenues                                                                   1,162,821

State Library General Revenues                                                                              611,318

Office of Public Information

        General Revenues                                                                                            361,023

        Restricted Receipts                                                                                               5,000

        Total - Office of Public Information                                                                366,023

           Grand Total – Secretary of State                                                                6,952,764

General Treasurer

Treasury

       General Revenues                                                                                          2,471,194

       Federal Funds                                                                                                   293,099

       Restricted Receipts                                                                                             40,000

Other Funds

             Temporary Disability Insurance Funds                                                        228,923

             Total – Treasury                                                                                       3,033,216

State Retirement System

       Restricted Receipts

             Admin Expenses - State Retirement System                                           10,256,532

             Retirement – Treasury Investment Operations                                          1,162,562

             Defined Contribution – Administration                                                       246,971

                  Total - State Retirement System                                                        11,666,065

Unclaimed Property Restricted Receipts                                                             18,559,092

Crime Victim Compensation Program

       General Revenues                                                                                             183,498

       Federal Funds                                                                                                   837,323

       Restricted Receipts                                                                                        1,128,267

                  Total - Crime Victim Compensation Program                                     2,149,088

                  Grand Total – General Treasurer                                                      35,407,461

Board of Elections

       General Revenues                                                                                          1,589,361

             Public Financing of General Elections                                                         150,000

                  Grand Total – Board of Elections                                                       1,739,361

Rhode Island Ethics Commission General Revenues                                           1,577,204

Office of Governor

       General Revenues                                                                                          4,193,513

Contingency Fund                                                                                      250,000

                   Grand Total – Office of Governor                                                     4,443,513

Commission for Human Rights

           General Revenues                                                                                      1,150,785

           Federal Funds                                                                                               308,638

             Grand Total - Commission for Human Rights                                          1,459,423

Public Utilities Commission

             Federal Funds                                                                                                90,574

             Federal Funds – Stimulus                                                                              76,244

           Restricted Receipts                                                                                     8,253,475

                 Grand Total - Public Utilities Commission                                            8,420,293

Office of Health and Human Services

Central Management

           General Revenues                                                                                    27,699,190

             Federal Funds                                                                                         88,057,656

             Federal Funds – Stimulus                                                                            537,780

           Restricted Receipts                                                                                        982,284

                 Total – Central Management                                                             117,276,910

Medical Assistance

           General Revenues

               Managed Care                                                                                    281,682,858

               Hospitals                                                                                            107,499,737

                  Of this amount, $5,482,009 is for the outpatient upper payment limit reimbursement.

               Nursing Facilities                                                                                179,263,818

               Home and Community Based Services                                                48,645,073

               Other Services                                                                                      44,013,672

               Pharmacy                                                                                             51,721,344

               Rhody Health                                                                                     100,701,958

               Affordable Care Act Transition Program                                               2,000,000

           Federal Funds

               Managed Care                                                                                    311,563,733

               Hospitals                                                                                            111,449,104

                  Of this amount, $5,570,428 is for the outpatient upper payment limit reimbursement.

               Nursing Facilities                                                                                182,155,169

               Home and Community Based Services                                                49,429,970

               Other Services                                                                                    150,655,199

               Pharmacy                                                                                                  243,742

               Rhody Health                                                                                     101,617,845

               Special Education                                                                                 19,000,000

           Restricted Receipts                                                                                     9,015,000

                      Total – Medical Assistance                                                      1,750,658,222

                      Grand Total – Health and Human Services                              1,867,935,132

Children, Youth, and Families

Central Management

           General Revenues                                                                                      4,911,020

           Federal Funds                                                                                            2,155,735

           Restricted Receipts                                                                                          34,991

                  Total – Central Management                                                               7,101,746

Children's Behavioral Health Services

           General Revenues                                                                                      4,491,441

           Federal Funds                                                                                            5,572,682

           Rhode Island Capital Plan Funds

                    NAFI Center                                                                                        280,000

                    Mt. Hope Building Façade                                                                   275,000

                  Total - Children's Behavioral Health Services                                   10,619,123

Juvenile Correctional Services

           General Revenue                                                                                     26,877,697  

               Federal Funds                                                                                            330,645  

               Federal Funds – Stimulus                                                                              4,270  

               Rhode Island Capital Plan Funds

                    Thomas C. Slater Training School Maintenance Building                    535,000

                    Total - Juvenile Correctional Services                                             27,747,612

Child Welfare

            General Revenues                                                                                 105,380,058

               18 to 21 Year Olds                                                                               11,116,775

            Federal Funds                                                                                         46,003,996

               18 to 21 Year Olds                                                                                 2,239,970

           Federal Funds – Stimulus                                                                              385,107

           Restricted Receipts                                                                                     2,579,179

           Rhode Island Capital Plan Funds

                 Fire Code Upgrades                                                                                 500,000

                        Total – Child Welfare                                                                168,205,085

Higher Education Incentive Grants General Revenues                                            200,000

                    Grand Total – Children, Youth, and Families                               213,873,566

Health

Central Management

           General Revenues                                                                                         544,959

           Federal Funds                                                                                            8,645,598

           Restricted Receipts                                                                                     4,239,580

               Total – Central Management                                                                13,430,137

State Medical Examiner

           General Revenues                                                                                      2,365,037

           Federal Funds                                                                                               163,940

               Total – State Medical Examiner                                                              2,528,977

Environmental and Health Services Regulation

           General Revenues                                                                                      9,491,266

           Federal Funds                                                                                            5,856,356

           Restricted Receipts                                                                                     4,199,254

               Total – Environmental and Health Services Regulation                        19,546,876

Health Laboratories

           General Revenues                                                                                      6,199,240

           Federal Funds                                                                                            1,492,480

               Total – Health Laboratories                                                                    7,691,720

Public Health Information

           General Revenues                                                                                      1,524,091

           Federal Funds                                                                                                847,574

           Federal Funds – Stimulus                                                                                97,959

               Total – Public Health Information                                                          2,469,624

Community and Family Health and Equity

           General Revenues                                                                                      2,448,286

            Federal Funds                                                                                         41,420,480

            Federal Funds – Stimulus                                                                             382,645

           Restricted Receipts                                                                                   26,194,072

           Other Funds

               Safe and Active Commuting                                                                       35,310

                 Total – Community and Family Health and Equity                             70,480,793

Infectious Disease and Epidemiology

           General Revenues                                                                                      1,735,122

           Federal Funds                                                                                            3,097,510

                 Total – Infectious Disease and Epidemiology                                       4,832,632

                 Grand Total – Health                                                                        120,980,759

Human Services

Central Management

           General Revenues                                                                                      5,543,121

           Federal Funds                                                                                            5,244,172

           Restricted Receipts                                                                                        414,962

                 Total - Central Management                                                               11,202,255

Child Support Enforcement

           General Revenues                                                                                      2,370,212

           Federal Funds                                                                                            6,095,358

                 Total – Child Support Enforcement                                                      8,465,570

Individual and Family Support

           General Revenues                                                                                    20,922,405

           Federal Funds                                                                                         133,591,509

           Restricted Receipts                                                                                     7,352,671

            Rhode Island Capital Plan Fund

                 Blind Vending Facilities                                                                          165,000

            Intermodal Surface Transportation Fund                                                   4,165,364

            Food Stamp Bonus Funding                                                                         150,000

                  Total - Individual and Family Support                                            166,346,949

Veterans' Affairs

           General Revenues                                                                                    20,993,993

           Federal Funds                                                                                            7,678,815

           Restricted Receipts                                                                                     1,467,376

                  Total - Veterans' Affairs                                                                   30,140,184

Health Care Eligibility

           General Revenues                                                                                      8,141,377

           Federal Funds                                                                                          11,060,155

                  Total - Health Care Eligibility                                                           19,201,532

Supplemental Security Income Program General Revenues                               18,234,514

Rhode Island Works

           General Revenues - Child Care                                                                  9,668,635

           Federal Funds                                                                                          80,298,745

                    Total – Rhode Island Works                                                           89,967,380

State Funded Programs

           General Revenues

                 General Public Assistance                                                                    1,906,800

           Of this appropriation, $210,000 shall be used for hardship contingency payments.

           Federal Funds                                                                                        298,637,602

                  Total - State Funded Programs                                                        300,544,402

Elderly Affairs

           General Revenues                                                                                      5,522,367

                 RIPAE                                                                                                     174,484

                 Care and Safety of the Elderly                                                                    1,287

           Federal Funds                                                                                          11,761,746

           Restricted Receipts                                                                                        527,491

                  Total – Elderly Affairs                                                                      17,987,375

                  Grand Total – Human Services                                                       662,090,161

Behavioral Healthcare, Developmental Disabilities, and Hospitals

Central Management

           General Revenues                                                                                         816,045

           Federal Funds                                                                                               429,446

                  Total – Central Management                                                               1,245,491

Hospital and Community System Support

           General Revenues                                                                                      1,592,216

           Restricted Receipts                                                                                        734,152

            Rhode Island Capital Plan Funds

                 Medical Center Rehabilitation                                                                 925,000

                 Community Facilities Fire Code                                                              325,000

                     Total – Hospital and Community System Support                            3,576,368

Services for the Developmentally Disabled

           General Revenues                                                                                  109,467,984

           Federal Funds                                                                                        112,094,959

           Restricted Receipts                                                                                     1,652,750

           Rhode Island Capital Plan Funds

                 DD Private Waiver                                                                                  225,431

                 Regional Center Repair/Rehabilitation                                                     400,000

                 MR Community Facilities/Access to Independence                                 500,000

                  Total – Services for the Developmentally Disabled                        224,341,124

Behavioral Healthcare Services

           General Revenues                                                                                    39,670,207

           Federal Funds                                                                                           53,105,582

           Federal Funds – Stimulus                                                                              232,500

           Restricted Receipts                                                                                        125,000

           Rhode Island Capital Plan Funds

                 MH Community Facilities Repair                                                            225,000

                 MH Housing Development-Thresholds                                                   800,000

                 Substance Abuse Asset Protection                                                           125,000

                  Total – Behavioral Healthcare Services                                            94,283,289

Hospital and Community Rehabilitative Services

           General Revenues                                                                                    50,544,930

           Federal Funds                                                                                          51,897,236

           Restricted Receipts                                                                                    4,884,970

            Rhode Island Capital Plan Funds

                  Zambarano Buildings and Utilities                                                         150,000

                  Hospital Consolidation                                                                       3,000,000

                  BHDDH Administrative Buildings                                                      3,000,000

                  MR Community Facilities                                                                      925,000

                     Total - Hospital and Community Rehabilitative Services             114,402,136

                  Grand Total – Behavioral Healthcare, Developmental

                  Disabilities, and Hospitals                                                              437,848,408

Office of the Child Advocate

           General Revenues                                                                                         608,651

           Federal Funds                                                                                                 39,997

                  Grand Total – Office of the Child Advocate                                         648,648

Commission on the Deaf and Hard of Hearing

           General Revenues                                                                                         391,609

           Restricted Receipts                                                                                         80,000

                  Grand Total – Com on Deaf and Hard of Hearing                                 471,609

Governor's Commission on Disabilities

           General Revenues                                                                                         357,711

           Federal Funds                                                                                               129,989

           Restricted Receipts                                                                                         10,365

           Rhode Island Capital Plan Funds

                    Accessibility to Disability Service Providers                                        247,938

                    Accessibility Fire Safety Renovations                                                 115,833

                    Accessibility to Higher Education                                                        593,500

                        Grand Total – Governor's Commission on Disabilities                 1,455,336

Office of the Mental Health Advocate General Revenues                                     486,144

Elementary and Secondary Education

Administration of the Comprehensive Education Strategy

           General Revenues                                                                                    19,826,703

           Federal Funds                                                                                         192,856,736

           Federal Funds – Stimulus                                                                         19,956,823

           RTTT LEA Share                                                                                      11,022,400

           Restricted Receipts                                                                                     1,400,286

           HRIC Adult Education Grants                                                                    3,800,000

           Rhode Island Capital Plan Funds

                      State-Owned Cranston                                                                       872,583

                      State-Owned East Providence                                                            175,000

                      State-Owned Warwick                                                                       500,000

                      State-Owned Woonsocket                                                               1,575,000

                          Total – Administration of the Comprehensive

                          Education Strategy                                                                   251,985,531

Davies Career and Technical School

           General Revenues                                                                                    12,792,048

           Federal Funds                                                                                             1,384,139

           Federal Funds – Stimulus                                                                              123,877

           Restricted Receipts                                                                                     2,564,848

           Rhode Island Capital Plan Funds

                    Davies HVAC                                                                                      830,271

                    Davies Asset Protection                                                                         95,000

                        Total – Davies Career and Technical School                               17,790,183

RI School for the Deaf

           General Revenues                                                                                      6,070,194

           Federal Funds                                                                                                281,867

           Federal Funds – Stimulus                                                                              120,812

           Restricted Receipts                                                                                        300,000

                    Total – RI School for the Deaf                                                         6,772,873

Metropolitan Career and Technical School

           General Revenues                                                                                    11,085,049

           Rhode Island Capital Plan Funds

                    MET School East Bay                                                                       2,580,000

                    MET Asset Protection                                                                          100,000

                    MET School HVAC                                                                             833,333

                    Total – Metropolitan Career and Technical School                         14,598,382

Education Aid

           General Revenues                                                                                  724,892,567

           Restricted Receipts                                                                                   19,593,382

           Permanent School Fund – Education Aid                                                      300,000

                    Total – Education Aid                                                                   744,785,949

Central Falls School District General Revenues                                                 38,399,591

Housing Aid General Revenues                                                                          69,949,504

Teachers' Retirement General Revenues                                                             81,691,253

                    Grand Total - Elementary and Secondary Education                 1,225,973,266

Public Higher Education

Board of Governors/Office of Higher Education

           General Revenues                                                                                      4,994,523

           Federal Funds                                                                                            6,190,306

                    Total - Board of Governors/Office of Higher Education                11,184,829

University of Rhode Island

General Revenues

General Revenues                                                                                   64,086,076

The University of Rhode Island shall maintain tuition charges in the 2013 – 2014 academic year at the same level as the 2012 – 2013 academic year. The University shall not decrease internal student financial aid in the 2013 – 2014 academic year below the level of the 2012 – 2013 academic year. The President of the institution shall report, prior to the commencement of the 2013-2014 academic year, to the chair of the Rhode Island Board of Education that such tuition charges and student aid levels have been achieved at the start of FY 2014 as prescribed above.

                 Debt Service                                                                                       20,585,263

                 State Crime Lab                                                                                    1,027,327

University and College Funds                                                                                      University and College Funds                                                                                                    600,530,024

                 Debt – Dining Services                                                                         1,160,911

                 Debt – Educational and General                                                           3,304,053

                 Debt – Health Services                                                                            152,595

                 Debt – Housing Loan Funds                                                               11,049,281

                 Debt – Memorial Union                                                                           301,628

                 Debt – Ryan Center                                                                              2,798,704

                 Debt – Alton Jones Services                                                                    115,305

                 Debt - Parking Authority                                                                      1,040,836

                 Debt – Sponsored Research (Ind. Cost)                                                   100,238

                 Debt – Energy Conservation                                                                 2,905,496

            Rhode Island Capital Plan Funds

                    Asset Protection                                                                                7,357,500

                    Fire and Safety Protection                                                               10,100,000

                    Nursing Education Center                                                                 2,500,000

                        Total – University of Rhode Island                                           729,115,237

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2014 relating to the University of Rhode Island are hereby reappropriated to fiscal year 2015.

Rhode Island College

General Revenues

General Revenues                                                                                   39,004,298

Rhode Island College shall maintain tuition charges in the 2013 – 2014 academic year at the same level as the 2012 – 2013 academic year. The College shall not decrease internal student financial aid in the 2013 – 2014 academic year below the level of the 2012 – 2013 academic year. The President of the institution shall report, prior to the commencement of the 2013-2014 academic year, to the chair of the Rhode Island Board of Education that such tuition charges and student aid levels have been achieved at the start of FY 2014 as prescribed above.

                 Debt Service                                                                                         3,887,576

           University and College Funds

                 University and College Funds                                                           110,482,163

                 Debt – Educational and General                                                              886,640

                 Debt – Housing                                                                                    2,050,004

                 Debt – Student Center and Dining                                                           172,078

                 Debt – Student Union                                                                              234,113

                 Debt– G.O. Debt Service                                                                      1,638,017

            Rhode Island Capital Plan Funds

                      Asset Protection                                                                              2,843,250

                      Infrastructure Modernization                                                          5,000,000

                    Total – Rhode Island College                                                        166,198,139

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2014 relating to Rhode Island College are hereby reappropriated to fiscal year 2015.

Community College of Rhode Island

General Revenues

General Revenues                                                                                44,589,076

The Community College of Rhode Island shall maintain tuition charges in the 2013 – 2014 academic year at the same level as the 2012 – 2013 academic year. The Community College shall not decrease internal student financial aid in the 2013 – 2014 academic year below the level of the 2012 – 2013 academic year. The President of the institution shall report, prior to the commencement of the 2013-2014 academic year, to the chair of the Rhode Island Board of Education that such tuition charges and student aid levels have been achieved at the start of FY 2014 as prescribed above.

                    Debt Service                                                                                     1,839,656

               Restricted Receipts                                                                                    702,583

               University and College Funds

                    University and College Funds                                                       100,333,007

                    Debt – Bookstore                                                                                   28,443

                    CCRI Debt Service – Energy Conservation                                       1,289,480

               Rhode Island Capital Plan Funds

                          Asset Protection                                                                          2,093,500

                          Knight Campus Renewal                                                                125,000

                             Total – Community College of RI                                        151,000,745

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2014 relating to the Community College of Rhode Island are hereby reappropriated to fiscal year 2015.

                          Grand Total – Public Higher Education                                1,057,498,950

RI State Council on the Arts

         General Revenues

               Operating Support                                                                                     423,973

               Grants                                                                                                       911,657

         Federal Funds                                                                                                 797,329

         Other Funds

               Arts for Public Facilities                                                                            632,536

                          Grand Total - RI State Council on the Arts                                  2,765,495

RI Atomic Energy Commission

         General Revenues                                                                                           861,710

         Federal Funds                                                                                                 267,044

         Other Funds

               URI Sponsored Research                                                                          257,977

         Rhode Island Capital Plan Funds

                  RINSC Asset Protection                                                                           50,000

                          Grand Total - RI Atomic Energy Commission                             1,436,731

RI Higher Education Assistance Authority  

         General Revenues

             Needs Based Grants and Work Opportunities                                          4,134,726

             Authority Operations and Other Grants                                                       147,000

         Federal Funds                                                                                            13,274,020

         Other Funds

             Tuition Savings Program – Needs Based Grants and Work Opportunities 8,800,000

             Tuition Savings Program – Administration                                                  407,989

                          Grand Total – RI Higher Education Assistance Authority         26,763,735

RI Historical Preservation and Heritage Commission        

         General Revenues                                                                                        1,357,510

         Federal Funds                                                                                                 609,949

         Restricted Receipts                                                                                         454,491

         Other Funds

               RIDOT Project Review                                                                                84,999

         Rhode Island Capital Funds

                  Eisenhower House Asset Protection                                                    1,000,000

                          Grand Total – RI Historical Preservation and Heritage Comm     3,506,949

Attorney General

Criminal

         General Revenues                                                                                      14,446,868

         Federal Funds                                                                                              1,619,532

         Restricted Receipts                                                                                      4,440,620

                        Total – Criminal                                                                          20,507,020

Civil

         General Revenues                                                                                        4,985,425

         Restricted Receipts                                                                                         632,970

                        Total – Civil                                                                                  5,618,395

Bureau of Criminal Identification General Revenues                                            1,503,119

General

         General Revenues                                                                                        2,721,567

         Rhode Island Capital Plan Funds

                  Building Renovations and Repairs                                                           50,000

                        Total – General                                                                             2,771,567

                        Grand Total - Attorney General                                                   30,400,101

Corrections

Central Management

         General Revenues                                                                                        9,077,039

         Federal Funds                                                                                                   45,094

         Federal Funds - Stimulus                                                                                  10,770

                          Total – Central Management                                                       9,132,903

Parole Board

         General Revenues                                                                                        1,354,433

         Federal Funds                                                                                                   38,000

                          Total - Parole Board                                                                    1,392,433

Custody and Security

         General Revenues                                                                                    115,418,407

         Federal Funds                                                                                                 761,526

                          Total – Custody and Security                                                  116,179,933

Institutional Support

         General Revenues                                                                                      15,728,306

               RICAP – Asset Protection                                                                      3,000,000

               RICAP – Maximum – General Renovations                                           1,100,000

               RICAP – General Renovations Women's                                               1,000,000

               RICAP – Bernadette Guay Roof                                                            1,165,000

               RICAP – ISC Exterior Envelope and HVAC                                          4,000,000

               RICAP – Minimum Security Kitchen Expansion                                    2,485,392

               RICAP – Medium Infrastructure                                                            4,719,359

                          Total – Institutional Support                                                      33,198,057

Institutional Based Rehab./Population Management

         General Revenues                                                                                        9,129,775

         Federal Funds                                                                                                 794,918

         Federal Funds – Stimulus                                                                                  64,394

         Restricted Receipts                                                                                           29,758

                          Total – Institutional Based Rehab/Population Mgt.                    10,018,845

Healthcare Services General Revenues                                                              19,639,269

Community Corrections

         General Revenues                                                                                      15,031,969

         Federal Funds                                                                                                   73,986

         Restricted Receipts                                                                                           35,132

                            Total – Community Corrections                                              15,141,087

                            Grand Total – Corrections                                                     204,702,527

Judiciary

Supreme Court

         General Revenues                                                                                      26,221,542

               Defense of Indigents                                                                              3,562,240

         Federal Funds                                                                                                 272,163

         Restricted Receipts                                                                                      3,356,909

         Rhode Island Capital Plan Funds

                  Judicial HVAC                                                                                      425,000

                  Judicial Complexes Asset Protection                                                     650,000

                  Murray Judicial Complex Cell Block                                                     440,000

                            Total - Supreme Court                                                             34,927,854

Judicial Tenure and Discipline General Revenues                                                  115,627

Superior Court

         General Revenues                                                                                      22,294,581

         Federal Funds                                                                                                   94,205

         Restricted Receipts                                                                                         306,723

                            Total - Superior Court                                                              22,695,509

Family Court

         General Revenues                                                                                      18,851,385

         Federal Funds                                                                                              2,257,880

                            Total - Family Court                                                                21,109,265

District Court

         General Revenues                                                                                      12,545,634

         Restricted Receipts                                                                                         297,822

                            Total - District Court                                                                12,843,456

Traffic Tribunal General Revenues                                                                       8,090,350

Workers' Compensation Court Restricted Receipts                                               7,842,060

                            Grand Total – Judiciary                                                         107,624,121

Military Staff

National Guard

         General Revenues                                                                                       1,361,037

         Federal Funds                                                                                            14,816,306

         Restricted Receipts                                                                                         300,000

         Rhode Island Capital Plan Funds

                    Armory of Mounted Command Roof Replacement                             280,000

                    State Armories Fire Code Compliance                                                   20,250

                    Federal Armories Fire Code Compliance                                               20,250

                    Asset Protection                                                                                   775,000

                    Logistics/Maintenance Facilities Fire Code Compliance                        12,500

                    Benefit Street Arsenal Rehabilitation                                                   800,000

                    Hurricane Sandy Cleanup                                                                 1,500,000

                            Total - National Guard                                                            19,885,343

Emergency Management

         General Revenues                                                                                       2,508,946

         Federal Funds                                                                                            20,062,446

         Restricted Receipts                                                                                         700,779

                            Total - Emergency Management                                              23,272,171

                            Grand Total - Military Staff                                                     43,157,514

Public Safety

Central Management

         General Revenues                                                                                       1,240,692

         Federal Funds                                                                                              4,032,164

         Federal Funds – Stimulus                                                                                  73,809

         Restricted Receipts                                                                                                850

                            Total – Central Management                                                     5,347,515

E-911 Emergency Telephone System General Revenues                                       5,488,731

State Fire Marshal

         General Revenues                                                                                       2,894,425

         Restricted Receipts                                                                                         277,338

         Rhode Island Capital Plan Funds

                    Fire Academy                                                                                      800,000

                    Quonset Development Corporation                                                       55,303

                          Total - State Fire Marshal                                                            4,027,066

Security Services General Revenues                                                                   21,814,553

Municipal Police Training Academy

         General Revenues                                                                                           293,022

         Federal Funds                                                                                                 269,151

                          Total – Municipal Police Training Academy                                  562,173

State Police

         General Revenues                                                                                      64,630,376

         Federal Funds                                                                                              1,780,411

         Restricted Receipts                                                                                    12,475,000

         Rhode Island Capital Plan Funds

                  Barracks and Training                                                                         1,409,743

                  Headquarters Repairs/Rehabilitation                                                      500,000

                  Parking Area Improvements                                                                  225,000

                  HQ Expansion                                                                                       210,000

               Traffic Enforcement – Municipal Training                                                130,150

               Lottery Commission Assistance                                                             1,558,727

               Airport Corporation                                                                                   240,304

               Road Construction Reimbursement                                                        3,078,000

                            Total – State Police                                                                  86,237,711

                            Grand Total – Public Safety                                                  123,477,749

Office of Public Defender

         General Revenues                                                                                      11,034,686

         Federal Funds                                                                                                 291,996

                            Grand Total – Office of Public Defender                                11,326,682

Environmental Management

Office of the Director

         General Revenues                                                                                        4,575,920

               Permit Streamlining                                                                                     33,414

         Federal Funds                                                                                                 150,000

         Restricted Receipts                                                                                      2,929,180

                            Total – Office of the Director                                                    7,688,514

Natural Resources

         General Revenues                                                                                      18,718,638

         Federal Funds                                                                                            27,119,465

         Restricted Receipts                                                                                      6,594,688

         Other Funds

             DOT Recreational Projects                                                                          370,428

             Blackstone Bikepath Design                                                                     2,060,087

             Transportation MOU                                                                                     78,579

         Rhode Island Capital Plan Funds

               Dam Repair                                                                                            1,300,000

               Fort Adams Rehabilitation                                                                         500,000

               Fort Adams America's Cup                                                                    3,883,558

               Recreational Facilities Improvements                                                     3,390,000

               Galilee Piers Upgrade                                                                             2,696,307

               Newport Piers                                                                                            250,000

               World War II Facility                                                                             2,600,000

               Blackstone Valley Bike Path                                                                     596,000

               Natural Resources Office/Visitor's Center                                              1,800,000

               Rocky Point Acquisition/Renovations                                                    2,500,000

                          Total - Natural Resources                                                          74,457,750

Environmental Protection

         General Revenues                                                                                      11,428,346

         Federal Funds                                                                                            11,122,266

         Restricted Receipts                                                                                      8,557,647

         Other Funds

               Transportation MOU                                                                                 165,000

               Retrofit Heavy-Duty Diesel Vehicles                                                     2,760,000

                          Total – Environmental Protection                                              34,033,259

                          Grand Total - Environmental Management                              116,179,523

Coastal Resources Management Council

         General Revenues                                                                                        2,174,331

         Federal Funds                                                                                              1,754,919

         Federal Funds - Stimulus                                                                                 405,674

         Restricted Receipts                                                                                         374,982

                          Grand Total - Coastal Resources Mgmt. Council                         4,709,906

Transportation

Central Management

         Federal Funds                                                                                            11,307,723

         Other Funds

             Gasoline Tax                                                                                            1,455,983

                          Total - Central Management                                                      12,763,706

Management and Budget

Other Funds - Gasoline Tax                                                                     1,549,669

Infrastructure Engineering- GARVEE/Motor Fuel Tax Bonds

         Federal Funds                                                                                          293,587,942

Of these federal funds, $1,790,000 is appropriated to the Public Rail Corporation from CMAQ federal funds for the payment of liability insurance.                                                                                       

Federal Funds – Stimulus                                                                             6,865,921

         Restricted Receipts                                                                                      8,010,496

         Other Funds

             Gasoline Tax                                                                                          53,061,714

             Land Sale Revenue                                                                                14,809,264

         Rhode Island Capital Funds

                 RIPTA Land and Buildings                                                                      104,000

                 Highway Projects Match Plan                                                             21,135,000

                            Total - Infrastructure Engineering – GARVEE/Motor

                            Fuel Tax Bonds                                                                     397,574,337

Infrastructure Maintenance

         Other Funds

               Gasoline Tax                                                                                        42,251,075

               Non-Land Surplus Property                                                                       125,000

               Outdoor Advertising                                                                                  175,000

         Rhode Island Capital Plan Funds

                  Maintenance Facilities Improvements                                                    776,210

                  Salt Storage Facilities                                                                          1,500,000

                  Portsmouth Facility                                                                             1,835,000

                  Maintenance Equipment Replacement                                                1,000,000

                  Train Station Maintenance and Repairs                                                  100,000

                  Cooperative Maintenance Facility DOT/RIPTA                                     600,000

                  Total - Infrastructure Maintenance                                           48,362,285

                            Grand Total – Transportation                                                460,249,997

Statewide Totals        

General Revenues                                                                                 3,359,755,123

Federal Funds                                                                                       2,717,673,430

Restricted Receipts                                                                                  255,035,912

Other Funds                                                                                          1,880,597,557

                  Statewide Grand Total                                                                 8,213,062,022

SECTION 2. Each line appearing in Section 1 of this Article shall constitute an appropriation.

SECTION 3. Upon the transfer of any function of a department or agency to another department or agency, the Governor is hereby authorized by means of executive order to transfer or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected thereby.

SECTION 4. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the Governor to fund expenditures for which appropriations may not exist. Such contingency funds may also be used for expenditures in the several departments and agencies where appropriations are insufficient, or where such requirements are due to unforeseen conditions or are non-recurring items of an unusual nature. Said appropriations may also be used for the payment of bills incurred due to emergencies or to any offense against public peace and property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as amended. All expenditures and transfers from this account shall be approved by the Governor.

SECTION 5. The general assembly authorizes the state controller to establish the internal service accounts shown below, and no other, to finance and account for the operations of state agencies that provide services to other agencies, institutions and other governmental units on a cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in a businesslike manner, promote efficient use of services by making agencies pay the full costs associated with providing the services, and allocate the costs of central administrative services across all fund types, so that federal and other non-general fund programs share in the costs of general government support.  The controller is authorized to reimburse these accounts for the cost of work or services performed for any other department or agency subject to the following expenditure limitations:

Account                                                                                      Expenditure Limit

State Assessed Fringe Benefit Internal Service Fund                                           33,644,675

Administration Central Utilities Internal Service Fund                                        20,253,728

State Central Mail Internal Service Fund                                                               5,336,633

State Telecommunications Internal Service Fund                                                  4,084,660

State Automotive Fleet Internal Service Fund                                                     13,668,556

Surplus Property Internal Service Fund                                                                        2,500

Health Insurance Internal Service Fund                                                            250,127,757

Other Post-Employment Benefits Fund                                                                                

         Retired State Employees                                                                            49,727,160

         Retired Higher Education Employees                                                           2,536,462

         Retired Teachers                                                                                          7,531,279

         Retired State Police                                                                                      3,073,102

         Retired Legislators                                                                                          772,532

         Retired Judges                                                                                                 931,493

Capitol Police Internal Service Fund                                                                        872,233

Corrections Central Distribution Center Internal Service Fund                              6,701,947

Correctional Industries Internal Service Fund                                                       8,341,086

Secretary of State Record Center Internal Service Fund                                           869,457

SECTION 6. The General Assembly may provide a written "statement of legislative intent" signed by the chairperson of the House Finance Committee and by the chairperson of the Senate Finance Committee to show the intended purpose of the appropriations contained in Section 1 of this Article. The statement of legislative intent shall be kept on file in the House Finance Committee and in the Senate Finance Committee.

At least twenty (20) days prior to the issuance of a grant or the release of funds, which grant or funds are listed on the legislative letter of intent, all department, agency and corporation directors, shall notify in writing the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee of the approximate date when the funds are to be released or granted.

SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2014.

SECTION 8. Appropriation of Employment Security Funds -- There is hereby appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2014.

SECTION 9. Appropriation of Lottery Division Funds – There is hereby appropriated to the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes of paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2014.

SECTION 10. Departments and agencies listed below may not exceed the number of full-time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment. Provided, however, that the Governor or designee, Speaker of the House of Representatives or designee, and the President of the Senate or designee may authorize an adjustment to any limitation. Prior to the authorization, the State Budget Officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the President of the Senate. A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

No agency or department may employ contracted employees or employee services where contract employees would work under state employee supervisors without determination of need by the Director of Administration acting upon positive recommendations of the Budget Officer and the Personnel Administrator and 15 days after a public hearing.

Nor may any agency or department contract for services replacing work done by state employees at that time without determination of need by the Director of Administration acting upon the positive recommendations of the Budget Officer and the Personnel Administrator and 30 days after a public hearing.

State employees whose funding is from non-state general revenue funds that are time limited shall receive limited term appointment with the term limited to the availability of non-state general revenue funding source.

FY 2014 FTE POSITION AUTHORIZATION

Departments and Agencies                                                       Full-Time Equivalent

Administration                                                                                                                720.7           

Business Regulation                                                                                                          94.0

Labor and Training                                                                                                         392.0

Revenue                                                                                                                          492.0

Legislature                                                                                                                      298.5

Office of the Lieutenant Governor                                                                                     8.0

Office of the Secretary of State                                                                                        57.0

Office of the General Treasurer                                                                                        83.0

Board of Elections                                                                                                            11.0

Rhode Island Ethics Commission                                                                                      12.0

Office of the Governor                                                                                                     45.0

Commission for Human Rights                                                                                         14.5

Public Utilities Commission                                                                                              49.0

Office of Health and Human Services                                                                            184.0

Children, Youth, and Families                                                                                        670.5

Health                                                                                                                             494.1

Human Services                                                                                                              959.1

Behavioral Health, Developmental Disabilities, and Hospitals                                     1,423.4

Office of the Child Advocate                                                                                             6.0

Commission on the Deaf and Hard of Hearing                                                                   3.0

Governor's Commission on Disabilities                                                                              4.0

Office of the Mental Health Advocate                                                                                3.7

Elementary and Secondary Education                                                                             171.4

School for the Deaf                                                                                                          60.0

Davies Career and Technical School                                                                               126.0

Office of Higher Education                                                                                              13.8

Provided that 1.0 of the total authorization would be available only for positions that are supported by third-party funds.

University of Rhode Island                                                                                          2,456.5

Provided that 593.2 of the total authorization would be available only for positions that are supported by third-party funds.

Rhode Island College                                                                                                      923.6

Provided that 82.0 of the total authorization would be available only for positions that are supported by third-party funds.

Community College of Rhode Island                                                                              854.1

Provided that 100.0 of the total authorization would be available only for positions that are supported by third-party funds.

Rhode Island State Council on the Arts                                                                               6.0

RI Atomic Energy Commission                                                                                           8.6

Higher Education Assistance Authority                                                                             23.0

Historical Preservation and Heritage Commission                                                             16.6

Office of the Attorney General                                                                                       233.1

Corrections                                                                                                                  1,419.0

Judicial                                                                                                                           726.3           

Military Staff                                                                                                                  117.0

Public Safety                                                                                                                   645.2           

Office of the Public Defender                                                                                          93.0

Environmental Management                                                                                           399.0

Coastal Resources Management Council                                                                           29.0

Transportation                                                                                                                 772.6

             Total                                                                                                             15,118.3

SECTION 11. The amounts reflected in this Article include the appropriation of Rhode Island Capital Plan funds for fiscal year 2014 and supersede appropriations provided for FY 2014 within Section 11 of Article 1 of Chapter 241 of the P.L. of 2012.

The following amounts are hereby appropriated out of any money in the state's Rhode Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending June 30, 2015, June 30, 2016, June 30, 2017, and June 30, 2018. These amounts supersede appropriations provided within Section 1 of Article 1 of Chapter 241 of the P.L. of 2012. For the purposes and functions hereinafter mentioned, the State Controller is hereby authorized and directed to draw his or her orders upon the General Treasurer for the payment of such sums and such portions thereof as may be required by him or her upon receipt of properly authenticated vouchers.

                                                        Fiscal Year        Fiscal Year        Fiscal Year        Fiscal Year

                       Ending               Ending              Ending                          Ending

Project                                           June 30, 2015   June 30, 2016   June 30, 2017   June 30, 2018

DOA-Big River Management Area        120,000             120,000             120,000             120,000

DOA-Cannon Building                          150,000             150,000             150,000            300,000

DOA-Chapin Health Lab                    1,400,000                        0                        0                       0

DOA-Cranston Street Armory             1,000,000             500,000             500,000         1,000,000

DOA-Environmental Compliance          200,000             200,000             200,000            200,000

DOA-Fire Code Compliance - State

Buildings                                               500,000             500,000             500,000            500,000

DOA-Harrington Hall Renovations        500,000                        0                        0                       0

DOA-Ladd Center Buildings

Demolition                                          2,100,000                        0                        0                       0

DOA-Old State House                        1,000,000             500,000               50,000              50,000

DOA-Pastore Center Buildings

Demolition                                             975,000          1,025,000          1,500,000         1,000,000

DOA-Pastore Center Fire Code

Compliance                                        1,300,000             500,000             500,000            500,000

DOA-Pastore Medical Center

Rehabilitation                                     1,000,000          1,475,000          1,060,000            760,000

DOA-Pastore Cottages Rehabilitation    630,000                        0                        0                       0

DOA-Pastore Utilities Upgrade              250,000             250,000                        0                       0

DOA-Pastore Center Utility Systems

Water Tanks and Pipes                          150,000                        0                        0                       0

DOA-State House Renovations           4,500,000          4,500,000          3,000,000            400,000

DOA-State Office Building

[DOT Bldg.]                                        3,000,000          3,000,000          3,760,000                       0

DOA-Washington County Government

Center                                                    350,000             350,000             350,000            350,000

DOA-William Powers Administration

Building                                                 500,000             300,000             300,000            500,000

DOA-Zambarano Utilities and

Infrastructure                                      2,000,000          1,000,000                        0                       0

DLT-Center General Asset Protection    962,500             152,000                        0                       0

DHS-Blind Vending Facilities                165,000             165,000             165,000           165,000

BHDDH-Hospital Consolidation       11,900,000        14,500,000          4,295,000                      0

El. Sec.-Cranston Career and Technical 400,000                        0                        0                      0

El. Sec.-Davies School Asset Protection 384,500             250,000             271,500           150,000

El. Sec.-Met School HVAC                    833,334                        0                        0                      0

El. Sec.-Met School Asset Protection     100,000             100,000             100,000           100,000

El. Sec.-Warwick Career and Technical 500,000             652,996                        0                      0

El. Sec.-Woonsocket Career and

Technical                                            1,518,050                        0                        0                      0

Higher Ed-Asset Protection-CCRI       2,138,305          2,184,100          2,232,100          2,278,974

Higher Ed-Asset Protection-RIC         2,963,548          3,080,400          3,357,700            3,458,431

Higher Ed-Asset Protection-URI         7,520,000          5,482,900          7,856,000          8,030,000

Higher Ed-CCRI Knight Campus

Renewal                                              2,000,000          2,000,000          5,000,000      11,000,000

Higher Ed-RIC Infrastructure

Modernization                                    3,000,000          3,000,000          3,000,000        3,500,000

Higher Ed-URI Fire Safety - Administration and

Academic                                           3,250,000                        0                        0                      0

AG-Building Renovations and Repairs  150,000             150,000             150,000           150,000

DOC Asset Protection                         3,000,000          4,020,000          3,000,000       3,000,000

Judiciary-Judicial Complexes

Asset Protection                                     675,000             700,000             725,000             800,000

Judiciary-Judicial Complexes HVAC    525,000             750,000             900,000           900,000

Mil Staff-Armory of Mounted

Commands                                            300,000             200,000             485,000           475,000

Mil Staff-Federal Armories - Fire Code

Compliance                                             20,250                 3,750                 3,750                      0

Mil Staff-Logistics/Maintenance Facilities -

Fire Code Compliance                               9,500                        0                        0                      0

Mil Staff-Asset Protection                      530,000             800,000             555,000           500,000

Mil Staff-State Armories - Fire Code

Compliance                                             20,250               10,000               10,000                      0

DEM-Dam Repair                                  550,000             500,000             500,000           500,000

DEM-Fort Adams Rehabilitation            500,000             300,000                        0                      0

DEM-Galilee Piers                                 125,000             665,000             250,000           250,000

DEM-Natural Resources Offices/Visitor’s

Center                                                 1,250,000                        0                        0                      0

DEM-Newport Piers                               250,000                        0                        0                      0

DEM-Recreational Facilities

Improvements                                     2,750,000          2,850,000          2,250,000        1,500,000

DOT-Highway Projects Match Plan  21,650,000        23,200,000        23,200,000      23,200,000

DOT-Maintenance Facilities Asset

Protection                                              400,000             500,000             500,000           500,000

DOT-Salt Storage Facilities                 1,500,000          1,500,000          1,500,000        1,500,000

SECTION 12. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects. - Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund project appropriations shall be reappropriated in the ensuing fiscal year and made available for the same purpose. However, any such reappropriations are subject to final approval by the General Assembly as part of the supplemental appropriations act. Any unexpended funds of less than five hundred dollars ($500) shall be reappropriated at the discretion of the State Budget Officer.

SECTION 13. For the Fiscal Year ending June 30, 2014, the Rhode Island Housing and Mortgage Finance Corporation shall provide from its resources such sums as appropriate in support of the Neighborhood Opportunities Program. The Corporation shall provide a report detailing the amount of funding provided to this program, as well as information on the number of units of housing provided as a result to the Director of Administration, the Chair of the Housing Resources Commission, the Chair of the House Finance Committee, the Chair of the Senate Finance Committee and the State Budget Officer.

SECTION 14. Notwithstanding any public laws to the contrary, of the nine million nine hundred ninety two thousand eight hundred ninety dollars ($9,992,890) of bond premium proceeds deposited into the Rhode Island Capital Plan Fund in FY 2013, three million dollars ($3,000,000)  shall be transferred to the general fund and six million nine hundred ninety two thousand eight hundred ninety dollars ($6,992,890) shall be transferred to the Municipal Road and Bridge Revolving Fund on or before August 1, 2013.

SECTION 15. Notwithstanding any general laws to the contrary, the State Controller shall transfer ten million dollars ($10,000,000) from the State General Fund to the Accelerated Depreciation Fund by June 30, 2014. 

SECTION 16. Notwithstanding any general laws to the contrary, the Office of the Attorney General shall transfer eight hundred fifty thousand dollars ($850,000) from the mortgage fraud settlement to the State General Fund by July 31, 2013.

SECTION 17. This article shall take effect as of July 1, 2013.

 


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ARTICLE 2 AS AMENDED

RELATING TO MEDICARE EXCHANGE PROGRAM FOR MEDICARE ELIGIBLE RETIREES

SECTION 1. Sections 36-12-1 and 36-12-4 of the General Laws in Chapter 36-12 entitled "Insurance Benefits" are hereby amended to read as follows:

36-12-1. Definitions. -- The following words, as used in sections 36-12-1 -- 36-12-14, shall have the following meanings:

 (1) "Employer", means the state of Rhode Island.

 (2) "Employee", means all persons who are classified employees as the term "classified employee" is defined under section 36-3-3, and all persons in the unclassified and non-classified service of the state; provided, however, that the following shall not be included as "employees" under sections 36-12-1 -- 36-12-14:

 (i) Part-time personnel whose work week is less than twenty (20) hours a week and limited period and seasonal personnel;

 (ii) Members of the general assembly, its clerks, doorkeepers, and pages.

 (3) "Dependents" means an employee's spouse, domestic partner and unmarried children under nineteen (19) years of age. Domestic partners shall certify by affidavit to the benefits director of the division of personnel that the (i) partners are at least eighteen (18) years of age and are mentally competent to contract, (ii) partners are not married to anyone, (iii) partners are not related by blood to a degree which would prohibit marriage in the state of Rhode Island, (iv) partners reside together and have resided together for at least one year, (v) partners are financially interdependent as evidenced by at least two (2) of the following: (A) domestic partnership agreement or relationship contract; (B) joint mortgage or joint ownership of primary residence, (C) two (2) of: (I) joint ownership of motor vehicle; (II) joint checking account; (III) joint credit account; (IV) joint lease; and/or (D) the domestic partner has been designated as a beneficiary for the employee's will, retirement contract or life insurance. Misrepresentation of information in the affidavit will result in an obligation to repay the benefits received, and a civil fine not to exceed one thousand dollars ($1000) enforceable by the attorney general and payable to the general fund. The employee will notify the benefits director of the division of personnel by completion of a form prescribed by the benefits director when the domestic partnership ends.

 (4) "Retired employee", means all persons retired from the active service of the state, who, immediately prior to retirement, were employees of the state as determined by the retirement board under section 36-8-1, and also all retired teachers who have elected to come under the employees' retirement system of the state of Rhode Island.

(5) "State retiree", means all persons retired from the active service of the state who, immediately prior to retirement, were employees of the state as determined by the retirement board under section 36-8-1.

(6) "Teacher retiree", means all retired teachers who have elected to come under the employees' retirement system of the state of Rhode Island.

 (5)(7) "Long-term health care insurance", means any insurance policy or rider advertised, marketed, offered, or designed to provide coverage for not less than twelve (12) consecutive months for each covered person on an expense incurred, indemnity, prepaid, or other basis for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting other than an acute care unit of a hospital. The term includes: group and individual policies or riders whether issued by insurers, fraternal benefit societies, nonprofit health, hospital, and medical service corporations; prepaid health plans, health maintenance organizations; or any similar organization. Long-term health care insurance shall not include: any insurance policy which is offered primarily to provide basic medicare supplement coverage; basic hospital expense coverage; basic medical-surgical expense coverage; hospital confinement indemnity coverage; major medical expense coverage; disability income protection coverage; accident only coverage; specified disease or specified accident coverage; or limited benefit health coverage. This list of excluded coverages is illustrative and is not intended to be all inclusive.

 (6)(8) "Non-Medicare-eligible retiree "Retiree health care insurance", means the health benefit employees who retire from active service of the state (subsequent to July 1, 1989), who immediately prior to retirement were employees of the state as determined by the retirement board pursuant to section 36-8-1, shall be entitled to receive, until attaining Medicare eligibility. which This health care insurance shall be equal to semi-private hospital care, surgical/medical care and major medical with a one hundred seventy-five dollar ($175) calendar year deductible. Employees who retire prior to age sixty-five (65) shall, upon the attainment of Medicare eligibility, receive hospital care, surgical/medical services, rights and benefits which, when taken together with their federal Medicare program benefits (public law 89-97), 42 U.S.C. section 1305 et seq., shall be comparable to those provided for retirees prior to that age. The aforementioned program will be provided on a shared basis in accordance with section 36-12-4.

(9) "Medicare-eligible retiree health care insurance", means the health benefit employees who retire from active service of the state (subsequent to July 1, 1989), who immediately prior to retirement were employees of the state as determined by the retirement board pursuant to section 36-8-1, shall have access to when eligible for Medicare. This health care insurance shall include  plans providing hospital care, surgical/medical services, rights and benefits which, when taken together with their federal Medicare program benefits, 42 U.S.C. section 1305 et seq., shall be comparable to those provided for retirees prior to the attainment of Medicare eligibility.

(10) "Health reimbursement arrangement", or "HRA" means an account that:

(i) Is paid for and funded solely by state contributions;

(ii) Reimburses a Medicare-eligible state retiree for medical care expenses as defined in section 213(d) of the Internal Revenue Code of 1986, as amended, which includes reimbursements for health care insurance premiums;

(iii) Provides reimbursements up to a maximum dollar amount for a coverage period; and

(iv) Provides that any unused portion of the maximum dollar amount at the end of a coverage period is carried forward to increase the maximum reimbursement amount in subsequent coverage periods.

36-12-4. Coverage of retired employees Coverage of Non-Medicare-eligible retired employees. -- (a) Non-Medicare-eligible retired Retired employees who retire retired on or before September 30, 2008. - Any retired employee who retired on or before September 30, 2008 shall be entitled, until attaining Medicare eligibility, to be covered under sections 36-12-1 -- 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of his or her contract at the group rate for active state employees. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. In addition, any retired employee who retired on or before September 30, 2008 shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for active state employees. Payment for coverage for these dependents shall be deducted from his or her retirement allowances and remitted as required in payment for the contract.

(b) Non-Medicare-eligible State state employees retirees who retire retired subsequent to July 1, 1989, and on or before September 30, 2008. Non-Medicare-eligible state retirees State employees who retire retired subsequent to July 1, 1989, and on or before September 30, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under section36-8-1, shall be entitled to receive for himself or herself non-Medicare-eligible a retiree health care insurance benefit as described in section36-12-1 in accordance with the following formula:

Years of                                    Age                       State's                           Employee's

  Service                             at Retirement                Share                                 Share

    10-15                                      60                          50%                                   50%

    16-22                                      60                          70%                                   30%

    23-27                                      60                          80%                                   20%

       28+                                        --                          90%                                   10%

       28+                                      60                        100%                                     0%

       35+                                                                    any                                   100% 0%

If the retired employee is receiving a subsidy on September 30, 2008, the state will continue to pay the same subsidy share until the retiree attains age sixty-five (65).

Until December 31, 2013, when When the state retiree reaches that age which will qualify him or her for Medicare supplement, the formula shall be:

Years of Service                                 State's Contribution                         Employees' Share

         10 – 15                                             50%                                                  50%

         16 – 19                                             70%                                                  30%

         20 – 27                                             90%                                                  10%

         28+                                                 100%                                                    0%

(c) Non-Medicare-eligible retired Retired employees who retire on or after October 1, 2008. Any retired employee who retires on or after October 1, 2008 shall be entitled, until attaining Medicare eligibility, to be covered under sections 36-12-1 – 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of the contract in the plan in which he or she enrolls. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Any retired employee who retires on or after October 1, 2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for the plan in which the dependent is enrolled. Payment for coverage for these dependents shall be deducted from the retired employee's retirement allowances and remitted as required in payment for the contract. The Director of Administration shall develop and present to the chairpersons of the House Finance Committee and the Senate Finance Committee by May 23, 2008 a retiree health plan option or options to be offered to retirees eligible for state-sponsored medical coverage who are under age sixty-five (65) or are not eligible for Medicare. This plan will have a reduced benefit level and will have an actuarially based premium cost not greater than the premium cost of the plan offered to the active state employee population. This new plan option will be available to employees retiring after September 30, 2008, and their non-Medicare-eligible dependents.

(d) Non-Medicare-eligible State state employees retirees who retire on or after October 1, 2008. Employees Non-Medicare-eligible state retirees who retire on or after October 1, 2008 from active service of the state, and who were employees of the state as determined by the retirement board under section 36-8-1, and who have a minimum of twenty (20) years of service, and who are a minimum of fifty-nine (59) years of age, shall be entitled to receive for himself or herself a non-Medicare-eligible retiree health care insurance benefit as described in section 36-12-1. The State state will subsidize 80% of the cost of the health insurance plan for individual coverage in which the retired state employee retiree is enrolled in. Payments of any retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract.

(e) Medicare-eligible state retirees who retire on or after October 1, 2008. Until December 31, 2013, the state shall subsidize eighty percent (80%) of the cost of the Medicare-eligible health insurance plan for individual coverage in which the state retiree is enrolled, provided the employee retired on or after October 1, 2008; has a minimum of twenty (20) years of service; and is a minimum of fifty-nine (59) years of age. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such health insurance plan.

(e)(f) Retired employees, including retired teachers, who are non-Medicare-eligible and who reach the age of sixty-five (65) shall be allowed to continue to purchase group health care insurance benefits in the same manner as those provided to retired employees who have not reached the age of sixty-five (65).

SECTION 2. Chapter 36-12 of the General Laws entitled "Insurance Benefits" is hereby amended by adding thereto the following section:

36-12-4.1. Coverage of Medicare-eligible retired employees. -- (a) The director of the department of administration shall ensure retired employees access to Medicare-eligible retiree health care insurance. Under this program, the state will establish a health reimbursement account (HRA) funded by state contributions for each Medicare-eligible state retiree who elects to receive health care insurance through the state-sponsored program.

(b) The funds contained in the HRA may be utilized for any eligible medical care expenses as defined in section 213(d) of the Internal Revenue Code of 1986, as amended, which includes reimbursements for health care insurance premiums.

(c) The director of the department of administration shall procure services to maximize consumer choice and options with respect to the individual policies available to Medicare-eligible retirees.

(d) The maximum state contribution to each Medicare-eligible state retiree's HRA account will be equal to the lowest-cost Medicare supplemental plan that is filed with the Office of the Health Insurance Commissioner of Rhode Island, that is available through the state-sponsored program, and that meets the provisions of the Medicare-eligible retiree health care insurance benefit defined in section 36-12-1(9). The maximum state contribution will vary by age as specified by the rates set forth in the Medicare supplemental plan filing.

 (e) For Medicare-eligible state retirees who retired before September 30, 2008, effective January 1, 2014, the state of Rhode Island will credit an amount to each retiree's HRA account on a monthly basis. The amount of such credit shall be calculated based on the retiree's years of service, as a percentage of the maximum state contribution set forth in (d) above, and in accordance with the following formula:     

Years of Service                                 State's Contribution                       Employees Share

     10 – 15                                                     50%                                          50%

     16 – 19                                                     70%                                          30%

     20 – 27                                                     90%                                          10%

           28+                                                   100%                                            0%

(f) For Medicare-eligible state retirees who retire on or after October 1, 2008, effective January 1, 2014, the state of Rhode Island will credit monthly an amount to each retiree's HRA account equal to 80% of the maximum state contribution set forth in (d) above, provided the retiree has a minimum of twenty (20) years of service and is at least fifty-nine (59) years of age.

(g) Medicare-eligible teacher retirees may purchase the individual policies available to Medicare-eligible state retirees under the state-sponsored program.

SECTION 3. This article shall take effect as of July 1, 2013.

 


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art.003/2/003/1
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ARTICLE 3

RELATING TO HEALTH INSURANCE BENEFITS

SECTION 1. Chapter 36-12 of the General Law entitled "Insurance Benefits" is hereby amended by adding thereto the following section: 

36-12-2.5. Health insurance benefits – Coverage of former spouse. -- Commencing January 1, 2014, a state employee's family health plan shall not provide coverage to a former spouse unless the former spouse was covered by said plan in accordance with section 27-20.4-1 as of December 31, 2013.

SECTION 2. This article shall take effect upon passage.


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ARTICLE 4

RELATING TO FICA ALTERNATE RETIREMENT PLAN

SECTION 1. Section 36-7-2 of the General Laws in Chapter 36-7 entitled "Federal Old-Age and Survivors' Insurance" is hereby amended to read as follows:

36-7-2. Definitions. -- For the purposes of sections 36-7-1 – 36-7-31, 36-7-33.1, and 36-7-35, the following terms shall have the meanings indicated unless different meanings are clearly expressed or required by the context:

(1) "Agency of the state" shall mean:

(i) All departments, divisions, agencies, and instrumentalities of the state which are not juristic entities, legally separate and distinct from the state;

(ii) Civilian employees of the Rhode Island national guard; or

(iii) Any instrumentality of the state such as fire districts, water districts, water authorities, sewer commissions and authorities, housing authorities, or other instrumentality of the state which are a juristic entity and legally separate and distinct from the state and if the employees of the instrumentality are not by virtue of their relation to juristic entity employees of the state. Without limiting the generality of the foregoing, examples of those agencies would be the Kent County water authority, the Providence housing authority, the Blackstone Valley sewer district commission, and other like instrumentalities of the state.

(2) "City or town" shall mean:

(i) Any city or town of the state of Rhode Island, inclusive of any department, division, agency, board, commission, or bureau thereof;

(ii) Any instrumentality of a city or town which is a juristic entity and legally separate and distinct from the city or town and if its employees are not by virtue of their relation to the juristic entity employees of the city or town; or

(iii) Any instrumentality of two or more citizens and/or towns which is a juristic entity as provided in subdivision (ii) hereof.

(3) "IRC" shall mean the Internal Revenue Code of 1986, as amended.

(3)(4) "Coverage group" shall mean:

(i) All employees of the state other than those engaged in performing service in connection with a proprietary function;

(ii) All employees of a city or town other than those engaged in performing service in connection with a single proprietary function;

(iii) All employees of the state engaged in performing service in connection with a single proprietary function;

(iv) All employees of an agency of the state;

(v) All employees of a city or town of the state engaged in performing service in connection with a single proprietary function. If under the preceding sentence an employee would be included in more than one coverage group by reason of the fact that he or she performs service in connection with two (2) or more proprietary functions or in connection with both a proprietary function and a nonproprietary function, he or she shall be included in only one coverage group. The determination of the coverage group in which the employee shall be included shall be made in such manner as may be specified in the agreement. Members of retirement systems shall constitute separate coverage groups as provided in section 36-7-10.

(4)(5) "Employee" shall mean any officer or employee of any city, town, or agency of the state receiving salaries or wages for employment.

(5)(6) "Employment" shall mean any service performed by an employee for wages as a member of a coverage group as herein defined, including service of an emergency nature, service in any class or classes of elective positions and service in part-time positions, but excluding the following:

(i) Service in a position the compensation for which is on a fee basis;

(ii) Service performed by election officials or election workers for calendar year 2003 in which the remuneration paid for that service is less than one thousand two hundred fifty dollars ($1,250), and for each calendar year after 2003 in which the remuneration paid is less than the adjusted amount in accordance with section 218(c)(8)(B) of the Social Security Act;

(iii) Service which under the federal Social Security Act may not be included in an agreement between the state and the secretary entered into under this chapter;

(iv) Service which, in the absence of an agreement entered into under sections 36-7-1 – 36-7-31, would constitute "employment" as defined in the federal Social Security Act. Service which under the federal Social Security Act may be included in an agreement only upon certification by the governor in accordance with section 218(d)(3) of the federal Social Security Act, 42 U.S.C. section 418(d)(3), shall be included in the term "employment" if and when the governor issues, with respect to that service, a certificate to the secretary, pursuant to section 36-7-19.

(B) Notwithstanding any of the foregoing, if pursuant to section 141 of P.L. 92-603, 42 U.S.C. section 418, the state agreement with the federal government referred to in section 36-7-3 is modified appropriately at any time prior to January 1, 1974, the term "employment" with respect to any coverage group specified in the modification shall, effective after the effective date specified in the modification, include services in designated part-time positions but not services performed in the employ of a school, college, or university by a student who is enrolled and regularly attending classes at that school, college, or university.

(7) "FARP" shall mean the FICA Alternative Retirement Income Security Program as described in section 36-7-33.1.

(8) "FARP-eligible employee" shall mean any part-time, seasonal, or temporary employee of the state of Rhode Island who is ineligible for participation in the Employees' Retirement System of Rhode Island.

(9) "FARP part-time employee" shall mean an employee of the state of Rhode Island who works twenty (20) hours or less per week, in accordance with IRC standards.

(6)(10) "Federal Insurance Contributions Act" or "FICA" shall mean subchapter A of chapter 9 of the federal Internal Revenue Code of 1939, subchapters A and B of chapter 21 of the federal Internal Revenue Code of 1954, and subchapters A and B of chapter 21 of the federal Internal Revenue Code of 1986 as those codes have been and may from time to time be amended; and the term "employee tax" shall mean the tax imposed by section 1400 of the code of 1939, section 3101 of the code of 1954, and section 3101 of the code of 1986.

(7)(11) "Federal Social Security Act", 42 U.S.C. section 301 et seq., shall mean the act of congress approved August 14, 1935, officially cited as the "Social Security Act", including any amendments thereto, and any regulations, directives, or requirements interpretative or implementive thereof.

(8)(12) "Part-time employment" shall mean any employment by those who work on a regularly scheduled basis regardless of hours.

(9)(13) "Retirement board" shall mean the retirement board as provided in chapter 8 of this title.

(10)(14) "Secretary", except when used in the title "secretary of the treasury", shall mean the secretary of health and human services and any individual to whom the secretary of health and human services has delegated any of his or her functions under the federal Social Security Act, 42 U.S.C. section 301 et seq., with respect to coverage under that act of employees of states and their political subdivisions.

(11)(15) "Sick pay" shall mean the amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund to provide for any sick pay) made to, or on behalf of, an employee or any of his or her dependents under a plan or system established by an employer which makes provision for his employees generally (or for his or her employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of sickness or accident disability.

(12)(16) "State" shall mean the state of Rhode Island.

(13)(17) "Wages" or "salaries" shall mean all compensation received by an employee for employment as defined herein, including the cash value of all remuneration received by an employee in any medium other than cash, except that this term shall not include that part of the remuneration which, even if it were for "employment" within the meaning of the Federal Insurance Contributions Act, 26 U.S.C. section 3101 et seq., would not constitute "wages" within the meaning of that act.

SECTION 2. Chapter 36-7 of the General Laws entitled "Federal Old-Age and Survivors' Insurance" is hereby amended by adding thereto the following section:

36-7-33.1. FICA Alternative Retirement Income Security Program. -- (a) For FARP eligible employees, the state shall establish the FICA Alternative Retirement Income Security Program. The FARP shall be administered in accordance with the following provisions:

(1) IRC compliance. The FARP shall be administered as a defined contribution plan under section 401(a) of the IRC, and shall provide retirement benefits as required under section 3121(b)(7)(F) of the IRC.

(2) Employee participation in the FARP - One-Time Opt-Out Exception. With the one exception described in (b) below, FARP-eligible employee participation in the FARP shall be mandatory. Each participant shall make mandatory payroll deduction contributions to the FARP equal to a minimum of seven and five tenths percent (7.5%) of the employee's gross wages for each pay period. Any payroll deduction contributions made pursuant to the FARP shall not be included in the computation of federal income taxes withheld on behalf of any participant. Once implemented, the participants, and the state on behalf of the participants, shall not continue to make FICA contributions. The FARP shall be administered by the financial institution currently administering the 401(a) plan for the state employee retirement plan, as described in Title 36 Chapter 10.3.

(b) An otherwise FARP-eligible employee, who is employed by the state at the time this section takes effect, may opt to not participate in the FARP. An employee who opts to not participate in the FARP will continue to make FICA contributions and the state shall continue to make FICA contributions on behalf of the employee. An employee who opts to not participate in the FARP may subsequently, without penalty, choose to participate in the FARP;  provided, however, such employee must continue to participate in the FARP for as long as he or she is a FARP-eligible employee.

(c) Review by state investment commission. The state investment commission shall, from time to time, review and evaluate the reasonableness of the selected financial institution's fees and the performance of the selected financial institution's funds.

SECTION 3. This article shall take effect as of July 1, 2013.


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ARTICLE 5 AS AMENDED

ARTICLE________

RELATING TO HIGHWAYS

SECTION 1. Section 24-12-40.F of the General Laws in Chapter 24-12 entitled "Rhode Island Turnpike and Bridge Authority" is hereby amended to read as follows:

24-12-40.F. Title to Sakonnet River Bridge vested in Rhode Island turnpike and bridge authority -- Institution of tolls. -- All powers, control, and jurisdiction of and title to the Sakonnet River Bridge is authorized to be transferred to the Rhode Island turnpike and bridge authority. The Beginning February 1, 2014, the authority may charge and collect tolls for the use of the Sakonnet River Bridge to provide funds sufficient with any other monies available therefor for paying the costs of acquiring, leasing, maintaining, repairing and operating, the Jamestown Verrazzano Bridge, the Mount Hope Bridge, the Newport Bridge, and the Sakonnet River Bridge, the turnpike and additional facilities. Until  February 1, 2014, the Authority shall not charge and collect tolls in excess of those in place on the Newport Bridge on June 1, 2013. Should any part of this section contravene or be inconsistent with any term or provision of the general laws, the provisions of this section shall control.

SECTION 2. Commission Established - There is hereby established a Special Legislative Commission to Study the Funding for East Bay Bridges.

(a) That a special legislative commission shall consist of nine (9) members as follows:  Three (3) of whom shall be members of the house, one of whom shall be the chairperson of the house finance committee, and not more than two (2) from the same political party, to be appointed by the speaker of the house; Three (3) of whom shall be members of the senate, one of whom shall be the chairperson of the senate finance committee, and not more than two (2) from the same political party, to be appointed by the president of the senate; One of whom shall be the director of transportation, or designee; One of whom shall be the director of the Rhode Island turnpike and bridge authority, or designee; and One of whom shall be the director of the department of administration, or designee.  The chairpersons of the respective house finance committee and senate finance committee shall serve as co-chairpersons of this special legislative commission.

(b) The purpose of said commission shall be to make a comprehensive study of all types of equitable and reliable funding mechanisms and/or strategies to support the East Bay Infrastructure (EBI) fund, as set forth in R.I.G.L. section 24-17-3, including, but not limited to, the use of the Sakonnet River Bridge, in order to provide the necessary funding for capital transportation projects, preventative maintenance projects, and for the purposes set forth in section 24-12-40.F.

(c)  The commission shall report its findings and results to the General Assembly on or before January 15, 2014 December 1, 2013.

(d) The commission shall expire on June 4, 2014.

SECTION 3.  This article shall take effect upon passage.

 


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ARTICLE 6

RELATING TO DIVISION OF MOTOR VEHICLES

SECTION 1. Sections 31-3-33 of the General Laws in Chapter 31-3 entitled "Registration of Vehicles" is hereby amended to read as follows:

31-3-33. Renewal of registration. -- (a) Application for renewal of a vehicle registration shall be made by the owner on a proper application form and by payment of the registration fee for the vehicle as provided by law.

(b) The division of motor vehicles may receive applications for renewal of registration, and may grant the renewal and issue new registration cards and plates at any time prior to expiration of registration.

(c) Upon renewal, owners will be issued a renewal sticker for each registration plate which shall be placed at the bottom right hand corner of the plate. Owners shall be issued a new fully reflective plate beginning September 1, 2013 2015 at the time of initial registration or at the renewal of an existing registration and reissuance will be conducted no less than every ten (10) years.

SECTION 2. Section 39-18.1-4 of the General Laws in Chapter 39-18.1 entitled "Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as follows:

39-18.1-4. Rhode Island highway maintenance trust fund account created Rhode Island highway maintenance account created. -- (a) There is hereby created a special account in the general fund intermodal surface transportation fund as established in section 31-36-20 that is to be known as the Rhode Island Highway Maintenance Trust Fund highway maintenance account.

(b) The fund shall consist of all those moneys which the state may from time to time direct to the fund, including, not necessarily limited to, moneys derived from the following sources:

(1) There is imposed a surcharge of thirty dollars ($30.00) per passenger car and light truck vehicle or truck, other than those with specific registrations set forth below in subsection (b)(1)(i). Such surcharge shall be paid by each car and light truck vehicle or truck owner in order to register that owner's vehicle, or truck and upon each subsequent biennial registration. This surcharge shall be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will be ten dollars ($10.00) from July 1, 2013 through June 30, 2014, twenty dollars ($20.00) from July 1, 2014 through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015 through June 30, 2016 and each year thereafter.

(i) For owners of vehicles or trucks with the following plate types, the surcharge shall be as set forth below and shall be paid in full in order to register the vehicle or truck and upon each subsequent renewal:

Plate Type                                                                     Surcharge

Antique                                                                           $5.00

Farm                                                                             $10.00

Motorcycle                                                                    $13.00

(ii) For owners of trailers, the surcharge shall be one-half (1/2) of the biennial registration amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.             (2) There is imposed a surcharge of fifteen dollars ($15.00) per car and truck, vehicle or truck, other than those with specific registrations set forth in subsection (b)(2)(i) below, for those cars and trucks vehicles or trucks subject to annual registration, to be paid annually by each car and truck vehicle or truck owner in order to register that owner's vehicle, trailer or truck and upon each subsequent annual registration. This surcharge will be phased in at the rate of five dollars ($5.00) each year. The total surcharge will be five dollars ($5.00) from July 1, 2013 through June 30, 2014, ten dollars ($10.00) from July 1, 2014 through June 30, 2015, and fifteen dollars ($15.00) from July 1, 2015 through June 30, 2016 and each year thereafter.

(i) For registrations of the following plate types, the surcharge shall be as set forth below and shall be paid in full in order to register the plate, and upon each subsequent renewal:

Plate Type                                                                     Surcharge

Boat Dealer                                                                     $6.25

Cycle Dealer                                                                   $6.25

In-transit                                                                        $5.00

Manufacturer                                                                  $5.00

New Car Dealer                                                              $5.00

Used Car Dealer                                                              $5.00

Racer Tow                                                                      $5.00

Transporter                                                                     $5.00

Bailee                                                                              $5.00

(ii) For owners of trailers, the surcharge shall be one-half (1/2) of the annual registration amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.

(iii) For owners of school buses, the surcharge will be phased in at the rate of six dollars and twenty-five cents ($6.25) each year. The total surcharge will be six dollars and twenty-five cents ($6.25) from July 1, 2013 through June 30, 2014 and twelve dollars and fifty cents ($12.50) from July 1, 2014 through June 30, 2015 and each year thereafter.

(3) There is imposed a surcharge of thirty dollars ($30.00) per operator's license to operate a motor vehicle to be paid every five (5) years by each licensed operator of a motor vehicles. This surcharge will be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will be ten dollars ($10.00) from July 1, 2013 through June 30, 2014, twenty dollars ($20.00) from July 1, 2014 through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015 through June 30, 2016 and each year thereafter. In the event that a license is issued or renewed for a period of less than five (5) years, the surcharge will be prorated according to the period of time the license will be valid.

(c) All funds collected pursuant to this section shall be deposited in the Rhode Island highway maintenance fund account and shall be used only for the purposes set forth in this chapter.

(d) Unexpended balances and any earnings thereon shall not revert to the general fund but shall remain in the Rhode Island highway maintenance fund account. There shall be no requirement that monies received into the Rhode Island highway maintenance fund account during any given calendar year or fiscal year be expended during the same calendar year or fiscal year.

(e) The Rhode Island highway maintenance fund account shall be administered by the director, who shall allocate and spend monies from the fund only in accordance with the purposes and procedures set forth in this chapter.

SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 7

RELATING TO RHODE ISLAND PUBLIC TELECOMMUNICATIONS AUTHORITY

SECTION 1. Chapter 16-61 of the General Laws entitled "Public Telecommunications Authority" is hereby repealed in its entirety:

16-61-1. Definitions. -- For the purposes of this chapter, unless indicated by the context, the following words and terms shall have the following meanings:

(1) "Advisory commission" means the Rhode Island advisory commission on public telecommunications.

(2) "Authority" means the Rhode Island public telecommunications authority.

(3) "Commission" means the Rhode Island advisory commission on public telecommunications.

(4) "Fiscal year" shall coincide with that period utilized by the state, i.e. from July 1 to the next succeeding June 30.

(5) "Public broadcasting" includes all aspects of noncommercial radio and television, open and closed circuit, including the production and dissemination of public and community affairs, civil defense, educational, cultural, and instructional information to the public at large within the state.

(6) "Public broadcasting telecommunications" includes all public broadcasting services relating to public broadcasting including intercommunications, closed circuit instructional television fixed service (ITFS), and other services requiring federal communications commission spectrum allocations for transmission of electrical impulses that specifically and integrally relate to Rhode Island public broadcasting. Facilities typical for application of these services would encompass microwave interconnection, aural and video TV transmission, multiplexing, laser beam utilization, satellite interconnection systems, cable systems, and other appropriate technological devices.

16-61-2. Authority established. -- (a) There is created a public telecommunications authority, sometimes referred to as the "authority", which shall be and is constituted a public corporation, empowered to sue and be sued in its own name, to have a corporate seal, and to exercise all the powers, in addition to those specifically enumerated in this chapter, usually appertaining to public corporations entrusted with control of public telecommunications property and functions. The authority shall exercise the authority previously vested in the board of regents for education with relation to educational television. The authority shall be protected from sudden changes in membership and reversal of policy by having staggered terms for its public members. Upon its organization the authority shall be invested with the legal title (in trust for the state) to all licenses and property, real and personal, now owned by and/or under the control or in custody of the board of regents for education for the use of publicly owned educational television.

(b) The authority is empowered to hold and operate that property in trust for the state, and to acquire, hold, and dispose of that property and other like property as deemed necessary for the execution of its corporate purposes. The authority is made successor to all powers, rights, duties, and privileges formerly belonging to the board of regents for education pertaining to publicly owned educational television.

16-61-3. Membership of authority. -- (a) The authority shall consist of nine (9) members as follows: seven (7) public members appointed pursuant to the terms of § 16-61-4, the chairperson of the board of regents for elementary and secondary education or his or her designee who shall serve as a non-voting ex-officio member, and the chairperson of the board of governors for higher education or his or her designee who shall serve as a non-voting ex-officio member. The governor shall designate one of the public members as chairperson of the authority.

(b) Four (4) voting members of the committee shall constitute a quorum. A majority vote of those present and voting shall be required for action.

(c) No one shall be eligible for appointment unless he or she is a resident of this state.

16-61-4. Appointment of public members – Renewal. -- (a) The governor shall with the advice and consent of the senate establish the authority by appointing seven (7) members to serve staggered terms. The appointments shall be made for terms of three (3) years commencing on February lst in the year of appointment and ending on January 31st in the third (3rd) year after this. Any vacancy among the public members of the authority shall be filled by appointment of the governor, subject to the advice and consent of the senate, for the remainder of the unexpired term. In the selection and appointment of members of the authority, the governor shall seek persons who best serve the entire needs of the state. Public members shall not be appointed for more than two (2) successive three (3) year terms each; provided, that this limitation shall not apply to that person designated as chairperson by the governor who may be a member so long as he or she shall serve as chairperson. The authority may elect from among its members such other officers as they deem necessary.

(b) Members of the board shall be removable by the governor pursuant to the provisions of § 36-1-7 of the general laws and for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful.

16-61-5. Removal of public members. -- Public members of the authority shall be removable by the governor for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful. No removal shall be made for any cause except after ten (10) days' notice in writing of specific charges, with opportunity for the member to be present in person and with counsel at a public hearing before the governor, to introduce witnesses and documentary evidence in his or her own defense, and to confront and cross-examine adversary witnesses; and appeal shall lie to the superior court from the governor's determination.

16-61-6. Powers and duties of authority. -- (a) The authority shall be empowered to:

(1) Adopt and amend and repeal suitable bylaws for the management of its affairs;

(2) Adopt and use the official seal and alter it at its pleasure;

(3) Maintain an office at any place or places within the state that it may designate;

(4) Establish, own, and operate noncommercial educational television or radio broadcasting stations, one or more public broadcasting and public broadcasting telecommunications networks or systems, and interconnection and program production facilities;

(5) Apply for, receive, and hold any authorizations and licenses and assignments and reassignments of channels from the federal communications commission (FCC) as may be necessary to conduct its operations; and prepare and file and prosecute before the FCC all applications, reports, or other documents or requests for authorization of any type necessary or appropriate to achieve the authorized purposes of the authority;

(6) Provide coordination and information on matters relating to public broadcasting telecommunications among the agencies of the state government, all facets of Rhode Island public education and individual associations, and institutions working in these fields both within and without the state;

(7) Establish state wide equipment compatibility policies and determine the method of interconnection to be employed within the state's public broadcasting system;

(8) Assume responsibility for establishing broad programming philosophy which will encourage diversity, quality, and excellence of programming which is released via its facilities. The general manager shall be responsible for implementing programming policy in accordance with the rules and regulations of the federal communications commission;

(9) Provide appropriate advisory assistance to other agencies of the state and local and regional groups regarding public broadcasting techniques, planning, budgeting, and related issues;

(10) Make to the governor and the legislature any recommendations that the authority deems necessary with regard to appropriations relating to public broadcasting and public broadcasting telecommunications equipment and facilities;

(11) Subject to the approval of the governor, receive and administer gifts, contributions, and funds from public and private sources to be expended for public broadcasting and public broadcasting telecommunications operations, facilities, and programming consistent with furthering the purposes of the authority;

(12) Cooperate with federal agencies for the purpose of obtaining matching and other federal funds and providing public broadcasting and public broadcasting telecommunications facilities throughout the state and to make any reports that may be required of the state. The authority shall provide appropriate advisory assistance to local school districts and others on these matters;

(13) Contract with program production organizations, individuals, and noncommercial educational television and radio stations within and without the state to produce or to procure educational television or radio programs for use by noncommercial stations within the state;

(14) Establish and maintain a library and archives of educational television and radio programs and related materials, disseminate information about those programs and make suitable arrangements for the use of the programs and materials by colleges, universities, schools, and noncommercial television and radio stations;

(15) Conduct explorations, research, demonstrations, or training in matters related to public broadcasting and public broadcasting telecommunications in the state, directly or through contracts with appropriate agencies, organizations, or individuals, or by grants to nonprofit, noncommercial organizations such as colleges, universities, schools, and noncommercial television and radio stations;

(16) Acquire, subject to the provisions of the general laws, through lease, purchase, or other means, real and other property and to hold and use this property for public broadcasting and public broadcasting telecommunications purposes;

(17) Contract, subject to the provisions of the general laws, for the construction, repair, maintenance, and operations of public broadcasting and public broadcasting telecommunications facilities including program production center, stations, and interconnection facilities;

(18) Make arrangements, where appropriate, with companies or other agencies and institutions operating suitable interconnection facilities (e.g., landlines or satellites);

(19) Be empowered to set and collect reasonable fees for services provided through contracts with agencies, companies, organizations, and individuals;

(20) Make reasonable rules and regulations to carry out the provisions of this chapter.

(21) Manage and operate public, education and government (PEG) access studios in compliance with rules promulgated by the division of public utilities and carriers.

(22) To conduct a training course for newly appointed and qualified members within six (6) months of their qualification or designation. The course shall be developed by the chair of the authority, approved by the authority, and conducted by the chair of the authority. The authority may approve the use of any authority or staff members or other individuals to assist with training. The training course shall include instruction in the following areas: the provisions of chapters 42-46, 36-14, and 38-2; and the committee's rules and regulations. The director of the department of administration shall, within ninety (90) days of the effective date of this act [March 29, 2006], prepare and disseminate training materials relating to the provisions of chapters 42-46, 36-14, and 38-2.

(b) In carrying out its powers and duties under this section, the authority shall be empowered to enter into contracts or agreements with any nonprofit entity for the operations in whole or in part of the public telecommunications functions assigned to it by this chapter.

16-61-6.2. Acquisition of public education and government television studios and equipment. -- (a) No later than December 31, 2006, the division of public utilities and carriers (the Division) shall promulgate rules to allow the transition of management of PEG access television including responsibility for programming the three (3) statewide interconnect channels, and managing interconnect playback in conjunction with its management of PEG playback, from current cable television certificate holders to the Rhode Island public telecommunications authority or its designee.

(b) Existing certificate holders may transfer to the Rhode Island public telecommunications authority or its designee the ownership of PEG access studio and playback equipment, and statewide interconnect playback equipment, currently in existing public access studios and playback facilities.

(c) The Rhode Island public telecommunications authority or its designee may purchase this equipment from existing certificate holders for the book value of the equipment based on the effective date of the transition.

(d) The Rhode Island public telecommunications authority or its designee may assume the leases for public access studios in those facilities where existing certificate holders currently lease space. Studios in buildings owned by existing certificate holders shall be leased by the Rhode Island public telecommunications authority or its designee at fair market value subject to the approval of the division. Employees of existing certificate holders working in public access facilities shall become employees of the Rhode Island public telecommunications authority or its designee on the effective date of the transition.

(e) An existing cable television certificate holder may, at its sole discretion, elect to continue to manage PEG access studios within its service area. If an existing cable television certificate holder does elect to continue to operate and manage PEG access studios, it may at any time subsequently elect not to operate PEG access studios and implement the provisions of this section.

16-61-7. General manager. -- The authority may appoint and determine the compensation of a general manager. The general manager shall devote his or her entire time to the performance of his or her duties and shall hold office at the pleasure of the authority.

16-61-8. Duties of the general manager. – The general manager shall have any duties that are defined in this section and in this title and any other additional duties that may be determined by the authority, and shall perform any other duties that may be vested in the general manager by law. In addition to the general supervision of public telecommunications, it shall be the duty of the general manager to:

(1) Serve as secretary of the authority and maintain custody of its official seal.

(2) Subject to the approval of the authority, appoint any assistants and employees as the authority shall deem necessary, and prescribe their powers and duties.

(3) Present annually to the authority for their approval or modification a budget encompassing both operating and capital development areas.

(4) Assist the authority in preparing and maintaining a master plan for public telecommunications in the state.

16-61-8.1. Longevity payments – Nonclassified employees. -- (a) Non-classified employees of the Rhode Island public telecommunications authority, except for non-classified employees already receiving longevity increases, shall be entitled to a longevity payment in the amount of five percent (5%) of base salary after ten (10) years of service and increasing in a total of ten percent (10%) of base salary after twenty (20) years of service. The provisions of this section shall apply only to employees under the grade of nineteen (19). The longevity payments shall not be included in base salary.

(b) The telecommunications authority is authorized to promulgate regulations implementing the provisions of this section.

(c) Beginning on July 1, 2011, notwithstanding any rule, regulation, or provision of the public laws or general laws to the contrary, there shall be no further longevity increases for employees of the Rhode Island public telecommunications authority; provided, however, for employees with longevity provisions pursuant to a collective bargaining agreement in effect on June 1, 2011, longevity increases shall cease beginning on July 1, 2011 or beginning upon the expiration of the applicable collective bargaining agreement, whichever occurs later. To the extent an employee has previously accrued longevity payments, the amount of the longevity payment earned by the employee for the last pay period in June, 2011 shall be added to the employee's base salary as of June 30, 2011, or in the case of an employee with longevity provisions pursuant to a collective bargaining agreement in effect on June 1, 2011, the amount of the longevity payment earned by the employee for the latter of the last pay period in June or the last pay period prior to the expiration of the applicable collective bargaining agreement shall be added to the employee's base salary as of June 30, 2011 or upon the expiration of the applicable collective bargaining agreement, whichever occurs later.

16-61-9. Meaning of terms in existing law. -- When in any law, resolution, document, record, instrument, proceeding or other place the words "board of education," "state board of education," or "board of regents for education" as they shall apply to educational television shall appear, they shall be construed to mean the Rhode Island public telecommunications authority.

16-61-10. Encumbering of assets. -- The authority shall have no power to issue bonds, notes, or other obligations, or to mortgage, pledge, or encumber the assets of the authority or any of its income; and no part of the income or the assets of the authority shall inure to the benefit of any director, officer, employee, or any other individual, except as may be provided as salary or reasonable compensation for services.

16-61-11. Political activities prohibited. -- The authority shall be prohibited from supporting or opposing any political party or candidate for public office, elective or otherwise, and from attempting to influence the enactment of legislation. The authority shall not be precluded from promoting full discussions of public issues pursuant to rules and regulations that the authority may promulgate.

16-61-12. Annual report. -- Within ninety (90) days after the end of each fiscal year, the authority shall approve and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and secretary of state of its activities during that fiscal year. The report shall provide: an operating statement summarizing meetings or hearings held, including meeting minutes, subjects addressed, decisions rendered, rules or regulations promulgated, studies conducted, policies and plans developed, approved or modified, and programs administered or initiated; a consolidated financial statement of all funds received and expended including the source of the funds, a listing of any staff supported by these funds and a summary of any clerical, administrative or technical support received; a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, suspensions or other legal matters related to the authority; a summary of any training courses held pursuant to the provisions of this chapter; a briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations for improvements. The authority shall cause an audit of its books and accounts, including the records pertaining to any entity created at the direction and/or under the auspices of the authority, to be made at least once each fiscal year by the auditor general. The report shall be posted electronically on the general assembly's and secretary of state's websites as prescribed in § 42-20-8.2. The director of the department of administration shall be responsible for the enforcement of this provision.

16-61-13. Annual appropriation. -- The general assembly shall annually appropriate any sums as it deems necessary for the support and maintenance of public telecommunications in the state, and the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment of those appropriations or so much of this sum as may be necessary for the purposes appropriated, upon the receipt by the controller of properly authenticated vouchers, as the authority may by rule provide.

16-61-14. Liberal construction of chapter required. -- This chapter shall be construed liberally in aid of its declared purposes.

16-61-15. Severability. -- If any provision of this chapter or of any rule or regulation made under this chapter, or its application to any person or circumstance, is held invalid by acourt of competent jurisdiction, the remainder of the chapter, rule, or regulation and the application of that provision to other persons or circumstances shall not be affected by theinvalidity. The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of the chapter.

SECTION 2. Sections 16-28-4, 16-28-5 and 16-28-6 of the General Laws in Chapter 16-28 entitled "Educational Television" are hereby repealed.

16-28-4. Advisory commission – Appointment and qualification of members. -- (a) There is created for the purposes of this chapter the Rhode Island advisory commission on public telecommunications consisting of not less than twenty-five (25) members who shall be appointed by the governor as provided in this section. The members of the commission shall serve three (3) year terms or until their successors have been appointed and duly qualified; provided, upon the initial appointment of members to the commission and upon any expansion of the membership of the commission, the governor shall appoint one third (1/3) of the members to one year terms, one third (1/3) of the members to two (2) year terms, and the remainder of the members to three (3) year terms.

(b) The governor shall appoint the chairperson of the commission who shall serve at the governor's pleasure.

(2) Appointment shall be made in February of each year by the governor.

(c) Vacancies on the commission may be filled by the governor at any time and shall be for the remainder of the unexpired term of the vacancy.

(d) The membership of the commission shall include one member of each of the counties of the state and insofar as possible be broadly representative of the different educational, cultural, professional, religious, and social interests of the state.

(e) The advisory commission, among other matters as may be appropriate, is authorized and empowered:

(1) To advise the general manager respecting his powers pursuant to § 16-61-7, if the Rhode Island public telecommunications authority has appointed a general manager; if the authority has entered into a contract or agreement with a nonprofit entity for the operation of public telecommunications functions pursuant to § 16-61-6, then the advisory committee shall advise the entity concerning educational television programming.

(2) To do any other things as may be necessary to assist the general manager in carrying out the powers expressly provided for in § 16-61-7.

   (f) Additionally, the advisory commission shall:

   (1) Maintain minutes of all meetings;

   (2) Delineate its goals and responsibilities;

   (3) Provide forums at state educational institutions on educational television;

   (4) Provide for promotional activities in educational television;

   (5) Have media publicity on educational television;

   (6) Continue efforts to obtain funding both public and private and establishment of a transmitter needed for the operation of the station;

   (7) Provide twenty-five dollars ($25.00) per meeting up to three hundred dollars ($300), annually, as compensation for public members for attendance at meetings and travel expenses;

   (8) Provide a written annual report to the Rhode Island public telecommunications authority of its activities.

16-28-5. Organization and functions of advisory commission – Expenses. -- (a) The governor shall designate one of the members of the advisory commission as chairperson. The commission shall adopt rules for its own procedure and appoint any other officers from its members as it deems fit.

(b) The commission shall have no administrative power but shall confer at regular intervals and cooperate with, advise, and make recommendations to the board of regents for elementary and secondary education in the administration of this chapter.

(c) It shall be the duty of the board to consult with the advisory commission on matters relating to the operation of the educational television station, providing, that ultimate policy decisions shall rest with the board.

(d) The members of the commission shall serve without compensation, but shall be entitled to receive reimbursement for reasonable actual and necessary expenses incurred in performance of their duties.

16-28-6. Appropriations and disbursements. -- The general assembly shall annually appropriate a sum sufficient to carry out the purposes of this chapter; and the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment of the sum, or so much of a sum as may be required, from time to time, upon the receipt by the controller of properly authenticated vouchers.

SECTION 3. Section 17-23-18 of the General Laws in Chapter 17-23 entitled "Election Offenses" is hereby amended to read as follows:

17-23-18. Political advertising from official budgets prohibited. -- (a) No elected official shall permit the expenditure of public funds from any official budget under his or her authority for any publication, advertisement, broadcast, or telecast of his or her photograph, voice, or other likeness to be broadcast or distributed to the public during the one hundred and twenty (120) days preceding any primary or general election in which he or she is a candidate.

   (b) This section shall not be construed to prohibit an official from appearing on regular capitol television programming operated by the general assembly or on television stations operated by the Rhode Island public telecommunications authority the Rhode Island PBS Foundation during the period of time or programming of regular or special meetings of city or town councils or any local governmental board, agency or other entity.

SECTION 4. Section 17-25-30 of the General Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" is hereby amended to read as follows:

17-25-30. Public financing of election campaigns – Compliance benefits. -- Entitled to an additional benefit of free time on community antenna television to be allocated pursuant to rules determined by the administrator for the division of public utilities. During all allocated free time, the candidate shall personally appear and present the message of the advertisement; provided, however, the content of all television time shall include captioning for the deaf and hard of hearing and the content of all radio time must be available in a written or text format at the time of request; and

(2) Entitled to an additional benefit of free time on any public broadcasting station operating under the jurisdiction of the Rhode Island public telecommunications authority PBS foundation pursuant to rules determined by the authority federal communications commission (FCC). During all allocated free time, the candidate shall personally appear and personally present the message of the advertisement; provided, however, the content of all television time shall include captioning for the deaf and hard of hearing and the content of all radio time must be available in a written or text format at the time of request.

SECTION 5. Section 22-13-9 of the General Laws in Chapter 22-13 entitled "Auditor General" is hereby amended to read as follows:

22-13-9. Access to executive sessions of a public agency – Access to records – Disclosure by the auditor general. -- (a) Whenever a public agency goes into executive session, the auditor general or his or her designated representative shall be permitted to attend the executive session or if the auditor general or his or her designee is not in attendance at the executive session, the auditor general or his or her designee, upon written request, shall be furnished with copies of all data or materials furnished to the members of the public agency at the executive session. If the auditor general or his or her designee attends the executive session, the auditor general shall be furnished the same data in the same form and at the same time as members of the public agency.

   (b) Within three (3) working days of a written request by the auditor general, the public agency shall furnish a copy, whether approved by the agency or not, of the minutes of any meeting, including any executive session of the public agency.

  (c) The auditor general shall have full and unlimited access to any and all records of any public agency, in whatever form or mode the records may be, unless the auditor general's access to the records is specifically prohibited or limited by federal or state law. In no case shall any confidentiality provisions of state law be construed to restrict the auditor general's access to the records; provided, the auditor general's access to any confidential data shall not in any way change the confidential nature of the data obtained. Where an audit or investigative finding emanates from confidential data, specific confidential information will not be made public. The records shall include those in the immediate possession of a public agency as well as records which the agency itself has a right to. In the event of a dispute between the agency involved and the auditor general as to whether or not the data involved are confidential by law, the matter will be referred to the attorney general for resolution.

 (d) If in the course of an executive session any fact comes to the attention of the auditor general or his or her designated representative, which in his or her judgment constitutes an impropriety, irregularity, or illegal transaction, or points to the onset of an impropriety or illegal transaction, then the auditor general shall disclose that information to the joint committee on legislative services, the director of administration, and the chairperson of the public agency involved. Where the facts or the data upon which the facts are based are deemed confidential pursuant to the provisions of federal or state law, the auditor general's access to the information shall not in any way change the confidential nature of the data obtained.

(2) In the event of a dispute between the agency involved and the auditor general as to whether or not the data involved are confidential by law, the matter will be referred to the attorney general for resolution.

(e) The auditor general or his or her designated representative shall be immune from any liability to any party for claims arising out of disclosure authorized by this section.

(f) For the purposes of this section, the phrase "public agency" shall include the following: the Rhode Island industrial building authority, the Rhode Island recreational building authority, the Rhode Island economic development corporation, the Rhode Island industrial facilities corporation, the Rhode Island refunding bond authority, the Rhode Island housing and mortgage finance corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the water resources board, the Rhode Island health and educational building corporation, the Rhode Island higher education assistance authority, the Rhode Island turnpike and bridge authority, the Narragansett Bay commission, Rhode Island public telecommunications authority, the convention center authority, channel 36 foundation, their successors and assigns, and any other body corporate and politic which has been or which is subsequently created or established within this state.

SECTION 6. Chapter 39-19 of the General Laws entitled "Community Antenna Television Systems" is hereby amended by adding thereto the following section:

39-19-6.1. Public education and government television studios and equipment. --  (a) The division shall be empowered to manage and operate public, education and government (PEG) access television in Rhode Island; provided, however, that an existing cable television certificate holder may, at its sole discretion, and for as long as it desires to do so, elect to continue to manage a PEG access studio within its service area.

(b)  In carrying out the purposes of this section, the division may designate another entity, whether public or private, to actually manage the day-to-day operations of any PEG access studios not being actively managed and operated by an existing cable television certificate holder. These day-to-day operations shall include the responsibility of programming statewide interconnect channels, and managing interconnect playback in conjunction with the management of PEG playback.

(c)  The division shall fund the operations authorized under this section through PEG access and interconnect fees, which shall be established by the division following public hearing and notice to the state’s cable television certificate holders. Such fees shall be paid by the state’s cable television certificate holders, who may in turn pass through such expenses to their respective subscribers in accordance with federal law.

(d) In furtherance of exercising this authority, the division shall promulgate such reasonable rules and regulations that the division deems necessary to carry out its responsibilities.

SECTION 7. This article shall take effect as of July 1, 2013.

 


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ARTICLE 8 AS AMENDED

Relating To Lease Agreements For Leased Office And Operating Space

SECTION 1. This article consists of Joint Resolutions that are submitted to the General Assembly for its approval pursuant to section 37-6-2 of the Rhode Island General Laws.

SECTION 2. Department of Corrections.

WHEREAS, The Rhode Island Department of Corrections currently has a lease agreement, in full force and effect, with the Urban League of Rhode Island for approximately 2,900 square feet of office space located at 234 Prairie Avenue in Providence, which will expire on June 30, 2013; and

WHEREAS, The annual rent under the current lease agreement in the fiscal year ending June 30, 2013 is $40,000; and

WHEREAS, At a meeting duly noticed on February 12, 2013, the State Properties Committee approved the Department of Corrections' request to advertise a Request for Proposals in order to secure new office space in Providence; and

WHEREAS, The Rhode Island Department of Corrections requests to enter into a new lease agreement with a landlord to be determined for the use of approximately 4,500 square feet of office space at a location to be determined in the city of Providence and for a five (5) year term; and

WHEREAS, The leased premises will provide a critical location for the offices of the Department of Corrections from which the Department can serve the needs of Providence and surrounding communities and otherwise fulfill the mission of the Department; and

WHEREAS, The anticipated annual rent of the new lease agreement in each of the initial five (5) years of the term will not exceed $88,000; and

WHEREAS, The payment of annual rent will be made from funds available to the Department of Corrections for the payment of rental and lease costs based on annual appropriations made by the General Assembly; and

WHEREAS, The State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Department of Corrections and a landlord to be determined, for a facility located at a site to be determined, in the city of Providence; now therefore be it

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves a lease agreement, at a location to be determined, for an initial term not to exceed five (5) years along with an option to renew for an additional five years. The total cost of the initial five year term shall not exceed $440,000; and it be further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Director of the Department of Corrections, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 3Judiciary.

WHEREAS, The Judiciary currently has a lease agreement, in full force and effect, with 56 Associates, LP for approximately 39,043 square feet of records storage space located at 450 Main Street in the city of Pawtucket; and

WHEREAS, This lease will expire on May 31, 2013 and the Rhode Island Judiciary wishes to renew for a ten (10) year term; and

WHEREAS, The Rhode Island Judiciary respectfully requests that this Resolution supersede that which was previously approved during the 2011 Legislative Session as House Resolution 6233 Sub A as the Judiciary has successfully negotiated a longer lease term at the same rental rate; and

WHEREAS, The State of Rhode Island, acting by and through the Rhode Island Judiciary attests to the fact that there are no clauses in the lease agreement with 56 Associates, LP that would interfere with the Rhode Island Judiciary's lease agreement or use of the facility; and

WHEREAS, The leased premises provide a central location from which the Rhode Island Judiciary can serve the needs of the Rhode Island community and otherwise further and fulfill the mission of the Judiciary; and

WHEREAS, The annual rent in the current lease agreement for the fiscal year ending June 30, 2013 is $234,540; and

WHEREAS, The annual rent of the proposed lease agreement in each of the ten (10) years of the term is not to exceed $234,540; and

WHEREAS, At a meeting duly noticed on May 22, 2012, the State Properties Committee considered the siting criteria for leased facilities under Rhode Island General Laws section 37-6-2 and found this site met all relevant criteria; and

WHEREAS, The State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for a lease agreement between 56 Associates, LP and the Rhode Island Judiciary, for the facility located at 450 Main Street in the city of Pawtucket, Rhode Island; now therefore be it

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves the lease agreement, for a term not to exceed ten (10) years and at a total cost not to exceed $2,345,400; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Administrator of the Rhode Island Judiciary, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 4. Department of Labor and Training.

WHEREAS, The Department of Labor and Training currently has a lease agreement, in full force and effect, with One Reservoir, LLC for 25,000 square feet of office space located at One Reservoir Avenue in the city of Providence; and

WHEREAS, The current lease expires on June 17, 2013 and the Department of Labor and Training requests to renew for a period of ten (10) years the lease agreement with One Reservoir, LLC; and

WHEREAS, The State of Rhode Island, acting by and through the Department of Labor and Training attests to the fact that there are no clauses in the lease agreement with One Reservoir, LLC that would interfere with the Department of Labor and Training's lease agreement or use of the facility; and

WHEREAS, The leased premises provide a central location from which the Department of Labor and Training can serve the needs of the Rhode Island community and otherwise further and fulfill the mission of the Department; and

WHEREAS, The annual rent in the current lease agreement in the fiscal year ending June 30, 2013 is $609,628; and

WHEREAS, The annual rent of the proposed lease agreement in each of the initial five (5) years of the term is not to exceed $512,500; and $525,250 in year six, $538,250 in year seven, $551,500 in year eight, $565,250 in year nine, and $579,250 in year ten.

WHEREAS, The State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Department of Labor and Training and One Reservoir, LLC, for the facility located at One Reservoir Avenue in the city of Providence, Rhode Island; now therefore be it

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves the lease agreement, for a term not to exceed ten (10) years and at a total cost not to exceed $5,322,000; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Director of the Department of Labor and Training, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 5. Department of Human Services.

WHEREAS, The Department of Human Services currently has a lease agreement with Kellaway Realty Corporation for approximately 18,000 square feet of office space located at 24 Commerce Street in the city of Pawtucket; and

WHEREAS, The State of Rhode Island, acting by and through the Department of Human Services attests to the fact that there are no clauses in the lease agreement with Kellaway Realty Corporation that would interfere with the Department of Human Services lease agreement or use of the facility; and

WHEREAS, The aforementioned lease expires on December 31, 2013 and the Department of Human Services wishes to advertise a Request for Proposals and enter into a new lease agreement with a landlord to be determined for the use of approximately 18,000 square feet of office space located in the city of Pawtucket; and

WHEREAS, The Department of Human Services and its programs operating in their current location may relocate to a new location based on the results of the Request for Proposals process; and

WHEREAS, The proposed leased premises will provide a location from which the Department of Human Services can serve the needs of the Pawtucket and surrounding communities and otherwise fulfill the mission of the Department; and

WHEREAS, The rent in the current lease agreement in the fiscal year ending June 30, 2013 is $252,000; and

WHEREAS, The annual rent of the proposed lease agreement for each of the five (5) years of the term is not to exceed $360,000; and

WHEREAS, At a meeting duly noticed on April 10, 2012 the State Properties Committee approved the Department of Human Services request to advertise a Request for Proposals in order to secure new office space in the city of Pawtucket; and

WHEREAS, The State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Department of Human Services and a landlord to be determined, for the facility located at a location to be determined in the city of Pawtucket, Rhode Island; now therefore be it

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves the lease agreement, for an initial term not to exceed five (5) years and at a total cost not to exceed $1,800,000; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Director of the Department of Human Services, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 6. University of Rhode Island - Physical Therapy Program.

WHEREAS, The University of Rhode Island (the University) has academic programs in Physical Therapy, Communicative Disorders, and Kinesiology with teaching, research, and outreach that benefits Rhode Island adults and children with injuries and disabilities: and

WHEREAS, The Independence Square Foundation (the Foundation) is a non profit corporation that develops and manages community center buildings, leasing space at affordable rates to not for profit operations, with a historical emphasis on operations supporting individuals with disabilities; and

WHEREAS, The Foundation promotes and fosters collaborative relationships between its non profit tenants in the interest of enhancing the range and quality of services offered to these special populations, recognized at the national level as a unique model to be emulated; and

WHEREAS, In 1991, the University and the Board of Governors for Higher Education, (the Board), and the State Properties Committee (the Properties Committee) approved a lease (Ground Lease) for a parcel of land at 25 West Independence Way on the Kingston Campus of the University in Kingston, Rhode Island to the Foundation, enabling Independence Square to build a 40,000 square foot community center building for the University and not for profit tenants, and in 2007 approved an extension of that Ground Lease through 2032, enabling Independence Square to qualify for $1,200,000 in federal grant funding toward the successful construction of a 28,000 square foot addition to the building in 2009; and

WHEREAS, Per the Ground Lease Agreement, the Foundation is required to make payments of $1 per year and at the end of the term or further extension of the Ground Lease, the University and the Board will obtain title to the building and associated improvements for the payment of $1; and

WHEREAS, The Board and the State Properties Committee, at that same time and in 2002, approved space leases (Lease) for the University's Physical Therapy Program and Communicative Disorders Speech and Hearing Clinic, respectively, within the existing building at 25 West Independence Way and those programs, associated students and faculty, and clinical clients have benefited from the quality, accessible, well maintained facilities for the duration of those Leases; and

WHEREAS, The present Lease for 16,400 square feet of space in the Independence Square Foundation II building at 25 West Independence Way on the University's Kingston Campus had reached the end of its extended term as of December 31, 2012; and

WHEREAS, The University, the Board, and the State Properties Committee have approved a Lease for the same 16,400 square feet of space in the Independence Square Foundation II building for a period of one year beginning on January 1, 2013, in the interest of continuing the presence of the University's Physical Therapy Program in that space while a nine (9) year lease extension undergoes consideration per the requirements of section 37-6-2 of the Rhode Island General Laws during the 2013 Legislative Session; and

WHEREAS, There is a strong interest in continuing the Physical Therapy Program's academic and clinical programs within the space they presently occupy in the Independence Square II building for a period coincident with the existing, applicable Ground Lease, which is scheduled to end as of December 31, 2032; and

WHEREAS, The University, the Board, and the State Properties Committee have approved a Lease (the Lease Agreement), with a term of nine (9) years, for 16,400 square feet of space in the Independence Square II building for the University's Physical Therapy Program, with that Lease Agreement and associated obligations beginning on January 1, 2014, subject to the required Executive and Legislative authorizations; and

WHEREAS, The Lease Agreement requires the University to pay a Base Rent for the University's proportionate share of building operating expenses, including heating, cooling, lighting, and basic electrical service, such Base Rent in the first year being $200,616, calculated on an annualized basis, this Base Rent being subject to incremental changes in actual operating expenses incurred to support the building, applicable to the proportional share of the building occupied by the Physical Therapy Program under The Lease in future years; and

WHEREAS, Under the Lease Agreement, the University will be required to pay Additional Rent for the University's proportionate share of Property Taxes, if applicable, and Operating Expenses in excess of those covered by the Base Rent as determined by calculation of actual expenses incurred by the Foundation for the Independence Square Foundation II Building at the end of each calendar year of the Lease. Such Additional Rent payments, which have been between $14,000 and $25,000 over the previous eight (8) years under the expiring Lease, are to be supported by University general revenues; now, therefore, be it

RESOLVED, That the Foundation's Project is a favorable investment on the University's Kingston Campus that ultimately becomes an asset of the University and the State, serving an important academic program and critical operations serving children with special needs, while further building upon a successful University, Foundation, and Community partnership and this General Assembly hereby approves this Lease Agreement; and be it further

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves the lease agreement, for a term not to exceed nine (9) years and at a total cost not to exceed $1,990,000; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the President of the University of Rhode Island, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 7. University of Rhode Island - Communicative Disorders Program.

WHEREAS, The University of Rhode Island (the University) has academic programs in Physical Therapy, Communicative Disorders, and Kinesiology with teaching, research, and outreach that benefits Rhode Island adults and children with injuries and disabilities; and

WHEREAS, The Independence Square Foundation (the Foundation) is a non profit corporation that develops and manages community center buildings, leasing space at affordable rates to not for profit operations, with a historical emphasis on operations supporting individuals with disabilities; and

WHEREAS, The Foundation promotes and fosters collaborative relationships between its non profit tenants in the interest of enhancing the range and quality of services offered to these special populations, recognized at the national level as a unique model to be emulated; and

WHEREAS, In 1991, the University and the Board of Governors for Higher Education, (the Board), and the State Properties Committee (the Properties Committee) approved a lease of land (Ground Lease), for a parcel of land at 25 West Independence Way on the Kingston Campus of the University in Kingston, Rhode Island to the Foundation enabling Independence Square to build a 40,000 square foot community center building for the University and not for profit tenants, and in 2007 approved an extension of that Ground Lease through 2032, enabling Independence Square to qualify for $1,200,000 in federal grant funding toward the successful construction of a 28,000 square foot addition to the building in 2009; and

WHEREAS, Per the Ground Lease Agreement, the Foundation is required to make payments of $1 per year and at the end of the term or further extension of the Ground Lease, the University and the Board obtain title to the building and associated improvements for the payment of $1; and

WHEREAS, The Board and the State Properties Committee, in 2002, approved a space lease (Lease) for the University's Communicative Disorders Program's Speech and Hearing Clinic within the existing building at 25 West Independence Way and the Program's associated students and faculty, and clinical clients have benefited from the quality, accessible, well maintained facilities for the duration of that Lease; and

WHEREAS, The present Lease for 4,300 square feet of space for the Communicative Disorders Program in the Independence Square Foundation II building at 25 West Independence Way on the University's Kingston Campus reached the end of its initial term as of January 31, 2013; and

WHEREAS, The University, the Board, and the State Properties Committee have approved an Amendment One to the Lease for the same 4,300 square feet of space in the Independence Square Foundation II building for a period of one year beginning on February 1, 2013, in the interest of continuing the presence of the University's Communicative Disorders Program in that space under the same terms and conditions, excepting that the terms of Section 5.05 pertaining to the University's obligations to compensate for renovation work performed by Independence Square will no longer apply, while a long term lease extension undergoes consideration per the requirements of section 37-6-2 of the Rhode Island General Laws during the 2013 Legislative Session; and

WHEREAS, There is a strong interest in continuing the Communicative Disorders Program's academic and clinical programs within the space they presently occupy in the Independence Square II building for a period beyond the initial ten-year term plus the one year extension that will end as of January 31, 2013; and

WHEREAS, The University, the Board, and the State Properties Committee have approved a continuation of the Lease Agreement's terms and conditions excepting that the terms of Section 5.05 pertaining to the University's obligations to compensate for renovation work performed by Independence Square will no longer apply, (Amendment Two to the Lease Agreement), with a term of nine (9) years, for the same 4,300 square feet of space in the Independence Square II building for the University's Communicative Disorders Program, with that Amendment Two to the Lease Agreement and associated obligations beginning on February 1, 2014 and continuing through January 31, 2023; and

WHEREAS, The Lease Agreement requires the University to pay a Base Rent for the University's proportionate share of building operating expenses, including heating, cooling, lighting, and basic electrical service, such Base Rent in the first year and the nine years being $45,408, calculated on an annualized basis, this Base Rent being subject to incremental changes in actual operating expenses incurred to support the building, applicable to the proportional share of the building occupied by the Communicative Disorders Program under The Lease in future years; and

WHEREAS, Under the Lease Agreement, the University will be required to pay Additional Rent for the University's proportionate share of Property Taxes, if applicable, and Operating Expenses in excess of those covered by the Base Rent as determined by calculation of actual expenses incurred by the Foundation for the Independence Square Foundation II Building at the end of each calendar year of the Lease. Such Additional Rent payments, which have been between $5,676 and $12,984 over the previous eight (8) years under the expiring Lease, are to be supported by University general revenues; now, therefore, be it

RESOLVED, That the Foundation's Project is a favorable investment on the University's Kingston Campus that continues to serve the facility needs of the University's academic and clinical programs and ultimately becomes an asset of the University and the State, serving an important academic program and critical operations serving children and adults with special needs, while further building upon a successful University, Foundation, and Community partnership and this General Assembly hereby approves this Amendment Two to the Lease Agreement for the University's Communicative Disorders Program; and be it further

RESOLVED, That this General Assembly of the State of Rhode Island and Providence Plantations hereby approves the lease agreement, for a term not to exceed nine (9) years and at a total cost not to exceed $515,000; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General Assembly; and be it further

RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the President of the University of Rhode Island, the State Budget Officer, and the Chair of the State Properties Committee.

SECTION 8. This article shall take effect upon passage.

 


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ARTICLE 9 AS AMENDED

RELATING TO TAXATION

SECTION 1. Section 44-61-1.1 of the General Laws in Chapter 44-61 entitled "Relating To Depreciation of Assets and Net Operating Loss Deduction" is hereby amended to read as follows:

44-61-1.1. Expensing in lieu of depreciation of assets. -- (a) For purposes of expensing of assets under chapters 11, 14 and 30 of this title, the expense deduction shall not exceed the sum provided for twenty-five thousand dollars ($25,000) in any taxable year. The additional expensing of assets for federal tax purposes under section 179 of the Internal Revenue Code, 26 U.S.C. section 179 provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003 or any subsequent federal enactment shall not be allowed for Rhode Island tax purposes. In the year that those assets are placed in service expensing of assets and in all subsequent years, expenses and depreciation for Rhode Island tax purposes shall be allowed in the same manner as is provided for under section 179 of the internal revenue code 26 U.S.C. section 179 on those assets as it would have been computed prior to the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003. Any remaining tax basis of the asset purchased shall be depreciated as provided for under the internal revenue service code sections 167 and 168, excluding section 168(k).

 (b) The gain resulting from any subsequent disposition of these assets shall be computed using a basis consistent with the Rhode Island expenses and depreciation allowed under subsection (a) of this section.

(c) There is hereby established a depreciation of assets transfer fund for the purpose of reserving sufficient funding for the expensing of assets in accordance with subsection (a). The general assembly may appropriate such amounts to the fund deemed necessary for said purpose.

SECTION 2. Chapter 44-55 of the General Laws entitled "Tax Incentives for Employers" is hereby amended by adding thereto the following section:

44-55-8. Adding back the domestic production activities deduction. -- All corporations doing business in the state of Rhode Island shall add back into their taxable income any amount deducted under the federal "domestic production deduction" also known as section 199 of the federal Internal Revenue Code.  State tax forms shall be changed if needed in order to comply with this section.

SECTION 3. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes - Liability and Computation" is hereby amended by adding thereto the following section:

44-18-15.2. "Remote seller" and "remote sale" defined -- Collection of sales and use tax by remote seller. -- As used in this article:

(1) "Remote seller" means a person that makes remote sales in this state.

(2) "Remote sale" means a sale into this state for which the seller would not legally be required to pay, collect, or remit state or local sales and use taxes unless provided by federal law.

(c) Upon passage of any federal law authorizing states to require remote sellers to collect and remit sales and use taxes, this state will require a remote seller making remote sales in the state to pay, collect, and remit sales and use taxes at the rate imposed under section 44-18-18, and in accordance with the provisions of this article, chapters 44-18.1 and 44-19, and applicable federal law.

44-18-18. Sales tax imposed. -- A tax is imposed upon sales at retail in this state including charges for rentals of living quarters in hotels as defined in section 42-63.1-2, rooming houses, or tourist camps, at the rate of six percent (6%) of the gross receipts of the retailer from the sales or rental charges; provided, that the tax imposed on charges for the rentals applies only to the first period of not exceeding thirty (30) consecutive calendar days of each rental; provided, further, that for the period commencing July 1, 1990, the tax rate is seven percent (7%). The tax is paid to the tax administrator by the retailer at the time and in the manner provided. Excluded from this tax are those living quarters in hotels, rooming houses, or tourist camps for which the occupant has a written lease for the living quarters which lease covers a rental period of twelve (12) months or more. In recognition of the work being performed by the Streamlined Sales and Use Tax Governing Board, upon passage any federal law which authorizes states to require requires remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate imposed under section 44-18-18 shall be reduced from seven percent (7%) to six and one-half percent (6.5%). The six and one-half percent (6.5%) rate shall take effect on the date that the state requires remote sellers to collect and remit sale and use taxes.

44-18-18.1. Local meals and beverage tax. -- (a) There is hereby levied and imposed, upon every purchaser of a meal and/or beverage, in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon each and every meal and/or beverage sold within the state of Rhode Island in or from an eating and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not and whether consumed at the premises or not, at a rate of one percent of the gross receipts. The tax shall be paid to the tax administrator by the retailer at the time and in the manner provided.

 (b) All sums received by the division of taxation under this section as taxes, penalties or forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid by the state treasurer to the city or town where the meals and beverages are delivered.

 (c) When used in this section, the following words have the following meanings:

 (1) "Beverage" means all nonalcoholic beverages, as well as alcoholic beverages, beer, lager beer, ale, porter, wine, similar fermented malt or vinous liquor.

 (2) "Eating and/or drinking establishments" mean and include restaurants, bars, taverns, lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish and chip places, fried chicken places, pizzerias, food and drink concessions, or similar facilities in amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks, shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other like places of business which furnish or provide facilities for immediate consumption of food at tables, chairs or counters or from trays, plates, cups or other tableware or in parking facilities provided primarily for the use of patrons in consuming products purchased at the location. Ordinarily, eating establishments do not mean and include food stores and supermarkets. Eating establishments do not mean "vending machines," a self-contained automatic device that dispenses for sale foods, beverages, or confection products. Retailers selling prepared foods in bulk either in customer-furnished containers or in the seller's containers, for example "Soup and Sauce" establishments, are deemed to be selling prepared foods ordinarily for immediate consumption and, as such, are considered eating establishments.

 (3) "Meal" means any prepared food or beverage offered or held out for sale by an eating and/or drinking establishment for the purpose of being consumed by any person to satisfy the appetite and which is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.

 (d) This local meals and beverage tax shall be administered and collected by the division of taxation and unless provided to the contrary in this chapter, all of the administration, collection, and other provisions of chapters 18 and 19 of this article apply.

 In recognition of the work being performed by the Streamlined Sales and Use Tax Governing Board, upon passage of any federal law which authorizes states to require requires remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate imposed under section 44-18-18.1 shall be increased from one percent (1%) to one and one-half percent (1.5%). The one and one-half percent (1.5%) rate shall take effect on the date that the state requires remote sellers to collect and remit sales and use taxes.

44-18-20. Use tax imposed. -- (a) An excise tax is imposed on the storage, use, or other consumption in this state of tangible personal property, prewritten computer software delivered electronically or by load and leave or services as defined in section 44-18-7.3; including a motor vehicle, a boat, an airplane, or a trailer, purchased from any retailer at the rate of six percent (6%) of the sale price of the property.

 (b) An excise tax is imposed on the storage, use, or other consumption in this state of a motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

 (c) The word "trailer" as used in this section and in section 44-18-21 means and includes those defined in section 31-1-5(a) -- (e) and also includes boat trailers, camping trailers, house trailers, and mobile homes.

 (d) Notwithstanding the provisions contained in this section and in section 44-18-21 relating to the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any casual sale:

 (1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child of the transferor or seller;

 (2) When the transfer or sale is made in connection with the organization, reorganization, dissolution, or partial liquidation of a business entity; provided:

 (i) The last taxable sale, transfer, or use of the article being transferred or sold was subjected to a tax imposed by this chapter;

 (ii) The transferee is the business entity referred to or is a stockholder, owner, member, or partner; and

 (iii) Any gain or loss to the transferor is not recognized for income tax purposes under the provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

 (3) When the sale or transfer is of a trailer, other than a camping trailer, of the type ordinarily used for residential purposes and commonly known as a house trailer or as a mobile home; or

 (4) When the transferee or purchaser is exempt under the provisions of section 44-18-30 or other general law of this state or special act of the general assembly of this state.

 (e) The term "casual" means a sale made by a person other than a retailer; provided, that in the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in this state of a used motor vehicle less than the product obtained by multiplying the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided, that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as shown in the current issue of any nationally recognized used vehicle guide for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax administrator determines that the retail dollar value as stated in this subsection is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-determine the tax.

 (f) Every person making more than five (5) retail sales of tangible personal property or prewritten computer software delivered electronically or by load and leave, or services as defined in section 44-18-7.3 during any twelve (12) month period, including sales made in the capacity of assignee for the benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions of this chapter.

 (g) (1) "Casual sale" includes a sale of tangible personal property not held or used by a seller in the course of activities for which the seller is required to hold a seller's permit or permits or would be required to hold a seller's permit or permits if the activities were conducted in this state; provided, that the sale is not one of a series of sales sufficient in number, scope, and character (more than five (5) in any twelve (12) month period) to constitute an activity for which the seller is required to hold a seller's permit or would be required to hold a seller's permit if the activity were conducted in this state.

 (2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by nonprofit organizations, which are organized for charitable, educational, civic, religious, social, recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6) days duration each calendar year. Each event requires the issuance of a permit by the division of taxation. Where sales are made at events by a vendor, which holds a sales tax permit and is not a nonprofit organization, the sales are in the regular course of business and are not exempt as casual sales.

 (h) The use tax imposed under this section for the period commencing July 1, 1990 is at the rate of seven percent (7%). In recognition of the work being performed by the Streamlined Sales and Use Tax Governing Board, upon passage of any federal law which authorizes states to require requires remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate imposed under section 44-18-18 shall be reduced from seven percent (7.0%) to six and one-half percent (6.5%). The six and one-half percent (6.5%) rate shall take effect on the date that the state requires remote sellers to collect and remit sales and use taxes.

44-18-30. Gross receipts exempt from sales and use taxes. -- There are exempted from the taxes imposed by this chapter the following gross receipts:

 (1) Sales and uses beyond constitutional power of state. - From the sale and from the storage, use, or other consumption in this state of tangible personal property the gross receipts from the sale of which, or the storage, use, or other consumption of which, this state is prohibited from taxing under the Constitution of the United States or under the constitution of this state.

 (2) Newspapers.

 (i) From the sale and from the storage, use, or other consumption in this state of any newspaper.

 (ii) "Newspaper" means an unbound publication printed on newsprint, which contains news, editorial comment, opinions, features, advertising matter, and other matters of public interest.

 (iii) "Newspaper" does not include a magazine, handbill, circular, flyer, sales catalog, or similar item unless the item is printed for and distributed as a part of a newspaper.

 (3) School meals. - From the sale and from the storage, use, or other consumption in this state of meals served by public, private, or parochial schools, school districts, colleges, universities, student organizations, and parent teacher associations to the students or teachers of a school, college, or university whether the meals are served by the educational institutions or by a food service or management entity under contract to the educational institutions.

 (4) Containers.

 (i) From the sale and from the storage, use, or other consumption in this state of:

 (A) Non-returnable containers, including boxes, paper bags, and wrapping materials which are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, when sold without the contents to persons who place the contents in the container and sell the contents with the container.

 (B) Containers when sold with the contents if the sale price of the contents is not required to be included in the measure of the taxes imposed by this chapter.

 (C) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling.

 (ii) As used in this subdivision, the term "returnable containers" means containers of a kind customarily returned by the buyer of the contents for reuse. All other containers are "non-returnable containers."

 (5) (i) Charitable, educational, and religious organizations. - From the sale to as in defined in this section, and from the storage, use, and other consumption in this state or any other state of the United States of America of tangible personal property by hospitals not operated for a profit, "educational institutions" as defined in subdivision (18) not operated for a profit, churches, orphanages, and other institutions or organizations operated exclusively for religious or charitable purposes, interest free loan associations not operated for profit, nonprofit organized sporting leagues and associations and bands for boys and girls under the age of nineteen (19) years, the following vocational student organizations that are state chapters of national vocational students organizations: Distributive Education Clubs of America, (DECA); Future Business Leaders of America, phi beta lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers of America/Home Economics Related Occupations (FHA/HERD); and Vocational Industrial Clubs of America (VICA), organized nonprofit golden age and senior citizens clubs for men and women, and parent teacher associations.

 (ii) In the case of contracts entered into with the federal government, its agencies or instrumentalities, this state or any other state of the United States of America, its agencies, any city, town, district, or other political subdivision of the states, hospitals not operated for profit, educational institutions not operated for profit, churches, orphanages, and other institutions or organizations operated exclusively for religious or charitable purposes, the contractor may purchase such materials and supplies (materials and/or supplies are defined as those which are essential to the project) that are to be utilized in the construction of the projects being performed under the contracts without payment of the tax.

 (iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, or organization but shall in that instance provide his or her suppliers with certificates in the form as determined by the division of taxation showing the reason for exemption; and the contractor's records must substantiate the claim for exemption by showing the disposition of all property so purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax on the property used.

 (6) Gasoline. - From the sale and from the storage, use, or other consumption in this state of: (i) gasoline and other products taxed under chapter 36 of title 31, and (ii) fuels used for the propulsion of airplanes.

 (7) Purchase for manufacturing purposes.

 (i) From the sale and from the storage, use, or other consumption in this state of computer software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and water, when the property or service is purchased for the purpose of being manufactured into a finished product for resale, and becomes an ingredient, component, or integral part of the manufactured, compounded, processed, assembled, or prepared product, or if the property or service is consumed in the process of manufacturing for resale computer software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, or water.

 (ii) "Consumed" means destroyed, used up, or worn out to the degree or extent that the property cannot be repaired, reconditioned, or rendered fit for further manufacturing use.

 (iii) "Consumed" includes mere obsolescence.

 (iv) "Manufacturing" means and includes manufacturing, compounding, processing, assembling, preparing, or producing.

 (v) "Process of manufacturing" means and includes all production operations performed in the producing or processing room, shop, or plant, insofar as the operations are a part of and connected with the manufacturing for resale of tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, or water and all production operations performed insofar as the operations are a part of and connected with the manufacturing for resale of computer software.

 (vi) "Process of manufacturing" does not mean or include administration operations such as general office operations, accounting, collection, sales promotion, nor does it mean or include distribution operations which occur subsequent to production operations, such as handling, storing, selling, and transporting the manufactured products, even though the administration and distribution operations are performed by or in connection with a manufacturing business.

 (8) State and political subdivisions. - From the sale to, and from the storage, use, or other consumption by, this state, any city, town, district, or other political subdivision of this state. Every redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of the municipality where it is located.

 (9) Food and food ingredients. - From the sale and storage, use, or other consumption in this state of food and food ingredients as defined in section 44-18-7.1(l).

 For the purposes of this exemption "food and food ingredients" shall not include candy, soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending machines or prepared food (as those terms are defined in section 44-18-7.1, unless the prepared food is:

 (i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, except sub-sector 3118 (bakeries);

 (ii) Sold in an unheated state by weight or volume as a single item;

 (iii) Bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and

 is not sold with utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.

 (10) Medicines, drugs and durable medical equipment.  - From the sale and from the storage, use, or other consumption in this state, of;

 (i) "Drugs" as defined in section 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include over-the-counter drugs and grooming and hygiene products as defined in section 44-18-7.1(h)(iii).

 (ii) Durable medical equipment as defined in section 44-18-7.1(k) for home use only, including, but not limited to, syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug delivery pumps which are sold on prescription to individuals to be used by them to dispense or administer prescription drugs, and related ancillary dressings and supplies used to dispense or administer prescription drugs shall also be exempt from tax.

 (11) Prosthetic devices and mobility enhancing equipment.  - From the sale and from the storage, use, or other consumption in this state, of prosthetic devices as defined in section 44-18-7.1(t), sold on prescription, including but not limited to, artificial limbs, dentures, spectacles and eyeglasses, and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription and mobility enhancing equipment as defined in section 44-18-7.1(p) including wheelchairs, crutches and canes.

 (12) Coffins, caskets, and burial garments. - From the sale and from the storage, use, or other consumption in this state of coffins or caskets, and shrouds or other burial garments which are ordinarily sold by a funeral director as part of the business of funeral directing.

 (13) Motor vehicles sold to nonresidents.

 (i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident of this state who does not register the motor vehicle in this state, whether the sale or delivery of the motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to its nonresidents is not exempt from the tax imposed under section 44-18-20. In that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed in his or her state of residence not to exceed the rate that would have been imposed under section 44-18-20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and collect the tax required under this subdivision and remit the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. When a Rhode Island licensed motor vehicle dealer is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide nonresident as provided in this section, the dealer in computing the tax takes into consideration the law of the state of the nonresident as it relates to the trade-in of motor vehicles.

 (ii) The tax administrator, in addition to the provisions of sections 44-19-27 and 44-19-28, may require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the motor vehicle was the holder of, and had in his or her possession a valid out of state motor vehicle registration or a valid out of state driver's license.

 (iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or other consumption in this state, and is subject to, and liable for the use tax imposed under the provisions of section 44-18-20.

 (14) Sales in public buildings by blind people. - From the sale and from the storage, use, or other consumption in all public buildings in this state of all products or wares by any person licensed under section 40-9-11.1.

 (15) Air and water pollution control facilities. - From the sale, storage, use, or other consumption in this state of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation of a facility, the primary purpose of which is to aid in the control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 of title 46 and chapter 25 of title 23, respectively, and which has been certified as approved for that purpose by the director of environmental management. The director of environmental management may certify to a portion of the tangible personal property or supplies acquired for incorporation into those facilities or used and consumed in the operation of those facilities to the extent that that portion has as its primary purpose the control of the pollution or contamination of the waters or air of this state. As used in this subdivision, "facility" means any land, facility, device, building, machinery, or equipment.

 (16) Camps. - From the rental charged for living quarters, or sleeping or housekeeping accommodations at camps or retreat houses operated by religious, charitable, educational, or other organizations and associations mentioned in subdivision (5), or by privately owned and operated summer camps for children.

 (17) Certain institutions. - From the rental charged for living or sleeping quarters in an institution licensed by the state for the hospitalization, custodial, or nursing care of human beings.

 (18) Educational institutions. - From the rental charged by any educational institution for living quarters, or sleeping or housekeeping accommodations or other rooms or accommodations to any student or teacher necessitated by attendance at an educational institution. "Educational institution" as used in this section means an institution of learning not operated for profit which is empowered to confer diplomas, educational, literary, or academic degrees, which has a regular faculty, curriculum, and organized body of pupils or students in attendance throughout the usual school year, which keeps and furnishes to students and others records required and accepted for entrance to schools of secondary, collegiate, or graduate rank, no part of the net earnings of which inures to the benefit of any individual.

 (19) Motor vehicle and adaptive equipment for persons with disabilities.

 (i) From the sale of: (A) special adaptations, (B) the component parts of the special adaptations, or (C) a specially adapted motor vehicle; provided, that the owner furnishes to the tax administrator an affidavit of a licensed physician to the effect that the specially adapted motor vehicle is necessary to transport a family member with a disability or where the vehicle has been specially adapted to meet the specific needs of the person with a disability. This exemption applies to not more than one motor vehicle owned and registered for personal, noncommercial use.

 (ii) For the purpose of this subsection the term "special adaptations" includes, but is not limited to: wheelchair lifts; wheelchair carriers; wheelchair ramps; wheelchair securements; hand controls; steering devices; extensions, relocations, and crossovers of operator controls; power-assisted controls; raised tops or dropped floors; raised entry doors; or alternative signaling devices to auditory signals.

 (iii) From the sale of: (a) special adaptations, (b) the component parts of the special adaptations, for a "wheelchair accessible taxicab" as defined in section 39-14-1 and/or a "wheelchair accessible public motor vehicle" as defined in section 39-14.1-1.

 (iv) For the purpose of this subdivision the exemption for a "specially adapted motor vehicle" means a use tax credit not to exceed the amount of use tax that would otherwise be due on the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special adaptations, including installation.

 (20) Heating fuels. - From the sale and from the storage, use, or other consumption in this state of every type of fuel used in the heating of homes and residential premises.

 (21) Electricity and gas. - From the sale and from the storage, use, or other consumption in this state of electricity and gas furnished for domestic use by occupants of residential premises.

 (22) Manufacturing machinery and equipment.

 (i) From the sale and from the storage, use, or other consumption in this state of tools, dies, and molds, and machinery and equipment (including replacement parts), and related items to the extent used in an industrial plant in connection with the actual manufacture, conversion, or processing of tangible personal property, or to the extent used in connection with the actual manufacture, conversion or processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification manual prepared by the technical committee on industrial classification, office of statistical standards, executive office of the president, United States bureau of the budget, as revised from time to time, to be sold, or that machinery and equipment used in the furnishing of power to an industrial manufacturing plant. For the purposes of this subdivision, "industrial plant" means a factory at a fixed location primarily engaged in the manufacture, conversion, or processing of tangible personal property to be sold in the regular course of business;

 (ii) Machinery and equipment and related items are not deemed to be used in connection with the actual manufacture, conversion, or processing of tangible personal property, or in connection with the actual manufacture, conversion or processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification manual prepared by the technical committee on industrial classification, office of statistical standards, executive office of the president, United States bureau of the budget, as revised from time to time, to be sold to the extent the property is used in administration or distribution operations;

 (iii) Machinery and equipment and related items used in connection with the actual manufacture, conversion, or processing of any computer software or any tangible personal property which is not to be sold and which would be exempt under subdivision (7) or this subdivision if purchased from a vendor or machinery and equipment and related items used during any manufacturing, converting or processing function is exempt under this subdivision even if that operation, function, or purpose is not an integral or essential part of a continuous production flow or manufacturing process;

 (iv) Where a portion of a group of portable or mobile machinery is used in connection with the actual manufacture, conversion, or processing of computer software or tangible personal property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under this subdivision even though the machinery in that group is used interchangeably and not otherwise identifiable as to use.

 (23) Trade-in value of motor vehicles. - From the sale and from the storage, use, or other consumption in this state of so much of the purchase price paid for a new or used automobile as is allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of the proceeds applicable only to the automobile as are received from the manufacturer of automobiles for the repurchase of the automobile whether the repurchase was voluntary or not towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, the word "automobile" means a private passenger automobile not used for hire and does not refer to any other type of motor vehicle.

 (24) Precious metal bullion.

 (i) From the sale and from the storage, use, or other consumption in this state of precious metal bullion, substantially equivalent to a transaction in securities or commodities.

 (ii) For purposes of this subdivision, "precious metal bullion" means any elementary precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and chromium, and which is in a state or condition that its value depends upon its content and not upon its form.

 (iii) The term does not include fabricated precious metal which has been processed or manufactured for some one or more specific and customary industrial, professional, or artistic uses.

 (25) Commercial vessels. - From sales made to a commercial ship, barge, or other vessel of fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use of the vessels including provisions, supplies, and material for the maintenance and/or repair of the vessels.

 (26) Commercial fishing vessels. - From the sale and from the storage, use, or other consumption in this state of vessels and other water craft which are in excess of five (5) net tons and which are used exclusively for "commercial fishing", as defined in this subdivision, and from the repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property purchased for the use of those vessels and other watercraft including provisions, supplies, and material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, cables, tackle, and other fishing equipment appurtenant to or used in connection with the commercial fishing of the vessels and other watercraft. "Commercial fishing" means the taking or the attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of them for profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include vessels and other watercraft with a Rhode Island party and charter boat license issued by the department of environmental management pursuant to section 20-2-27.1 which meet the following criteria: (i) the operator must have a current U.S.C.G. license to carry passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat registration to prove Rhode Island home port status; (iv) the vessel must be used as a commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters or provides documentation of a minimum of one hundred (100) charter trips annually; (v) the vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall implement the provisions of this subdivision by promulgating rules and regulations relating thereto.

 (27) Clothing and footwear. - From the sales of articles of clothing, including footwear, intended to be worn or carried on or about the human body for sales prior to October 1, 2012. Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including footwear, intended to be worn or carried on or about the human body up to two hundred and fifty dollars ($250) of the sales price per item. For the purposes of this section, "clothing or footwear" does not include clothing accessories or equipment or special clothing or footwear primarily designed for athletic activity or protective use as these terms are defined in section 44-18-7.1(f). In recognition of the work being performed by the Streamlined Sales and Use Tax Governing Board, upon passage of any federal law which authorizes states to require requires remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st) state fiscal quarter following the change, this unlimited exemption will apply as it did prior to October 1, 2012. The unlimited exemption on sales of clothing and footwear shall take effect on the date that the state requires remote sellers to collect and remit sales and use taxes.

 (28) Water for residential use. - From the sale and from the storage, use, or other consumption in this state of water furnished for domestic use by occupants of residential premises.

 (29) Bibles. - [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes to Decisions.]From the sale and from the storage, use, or other consumption in the state of any canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited to, the Old Testament and the New Testament versions.

 (30) Boats.

 (i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not register the boat or vessel in this state, or document the boat or vessel with the United States government at a home port within the state, whether the sale or delivery of the boat or vessel is made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) days after delivery by the seller outside the state for use thereafter solely outside the state.

 (ii) The tax administrator, in addition to the provisions of sections 44-19-17 and 44-19-28, may require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of the seller that the buyer represented himself or herself to be a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state.

 (31) Youth activities equipment. - From the sale, storage, use, or other consumption in this state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island eleemosynary organizations, for the purposes of youth activities which the organization is formed to sponsor and support; and by accredited elementary and secondary schools for the purposes of the schools or of organized activities of the enrolled students.

 (32) Farm equipment. - From the sale and from the storage or use of machinery and equipment used directly for commercial farming and agricultural production; including, but not limited to, tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and other farming equipment, including replacement parts, appurtenant to or used in connection with commercial farming and tools and supplies used in the repair and maintenance of farming equipment. "Commercial farming" means the keeping or boarding of five (5) or more horses or the production within this state of agricultural products, including, but not limited to, field or orchard crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 1, 2002; for exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I shall be based on proof of annual gross sales from commercial farming of at least twenty-five hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or greater; Level II shall be based on proof of annual gross sales from commercial farming of at least ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption provided in this subdivision including motor vehicles with an excise tax value of five thousand dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount of annual gross sales from commercial farming shall be required for the prior year; for any renewal of an exemption granted in accordance with this subdivision at either Level I or Level II, proof of gross annual sales from commercial farming at the requisite amount shall be required for each of the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly indicate the level of the exemption and be valid for four (4) years after the date of issue. This exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to section 31-1-8 and is eligible for registration displaying farm plates as provided for in section 31-3-31.

 (33) Compressed air. - From the sale and from the storage, use, or other consumption in the state of compressed air.

 (34) Flags. - From the sale and from the storage, consumption, or other use in this state of United States, Rhode Island or POW-MIA flags.

 (35) Motor vehicle and adaptive equipment to certain veterans. - From the sale of a motor vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service connected or not. The motor vehicle must be purchased by and especially equipped for use by the qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or regulations that the tax administrator may prescribe.

 (36) Textbooks. - From the sale and from the storage, use, or other consumption in this state of textbooks by an "educational institution" as defined in subdivision (18) of this section and as well as any educational institution within the purview of section 16-63-9(4) and used textbooks by any purveyor.

 (37) Tangible personal property and supplies used in on-site hazardous waste recycling, reuse, or treatment. - From the sale, storage, use, or other consumption in this state of tangible personal property or supplies used or consumed in the operation of equipment, the exclusive function of which is the recycling, reuse, or recovery of materials (other than precious metals, as defined in subdivision (24)(ii) of this section) from the treatment of "hazardous wastes", as defined in section 23-19.1-4, where the "hazardous wastes" are generated in Rhode Island solely by the same taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department of environmental management certifying that the equipment and/or supplies as used, or consumed, qualify for the exemption under this subdivision. If any information relating to secret processes or methods of manufacture, production, or treatment is disclosed to the department of environmental management only to procure an order, and is a "trade secret" as defined in section 28-21-10(b), it is not open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of title 28 or chapter 24.4 of title 23.

 (38) Promotional and product literature of boat manufacturers. - From the sale and from the storage, use, or other consumption of promotional and product literature of boat manufacturers shipped to points outside of Rhode Island which either: (i) accompany the product which is sold, (ii) are shipped in bulk to out of state dealers for use in the sale of the product, or (iii) are mailed to customers at no charge.

 (39) Food items paid for by food stamps. - From the sale and from the storage, use, or other consumption in this state of eligible food items payment for which is properly made to the retailer in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 7 U.S.C. section 2011 et seq.

 (40) Transportation charges. - From the sale or hiring of motor carriers as defined in section 39-12-2(l) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed with the Rhode Island public utilities commission on the number of miles driven or by the number of hours spent on the job.

 (41) Trade-in value of boats. - From the sale and from the storage, use, or other consumption in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards the purchase of a new or used boat by the buyer.

 (42) Equipment used for research and development. - From the sale and from the storage, use, or other consumption of equipment to the extent used for research and development purposes by a qualifying firm. For the purposes of this subdivision, "qualifying firm" means a business for which the use of research and development equipment is an integral part of its operation, and "equipment" means scientific equipment, computers, software, and related items.

 (43) Coins. - From the sale and from the other consumption in this state of coins having numismatic or investment value.

 (44) Farm structure construction materials. - Lumber, hardware and other materials used in the new construction of farm structures, including production facilities such as, but not limited to, farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, feed storage sheds, and any other structures used in connection with commercial farming.

 (45) Telecommunications carrier access service. - Carrier access service or telecommunications service when purchased by a telecommunications company from another telecommunications company to facilitate the provision of telecommunications service.

 (46) Boats or vessels brought into the state exclusively for winter storage, maintenance, repair or sale.  - Notwithstanding the provisions of sections 44-18-10, 44-18-11, 44-18-20, the tax imposed by section 44-18-20 is not applicable for the period commencing on the first day of October in any year to and including the 30th day of April next succeeding with respect to the use of any boat or vessel within this state exclusively for purposes of: (i) delivery of the vessel to a facility in this state for storage, including dry storage and storage in water by means of apparatus preventing ice damage to the hull, maintenance, or repair; (ii) the actual process of storage, maintenance, or repair of the boat or vessel; or (iii) storage for the purpose of selling the boat or vessel.

 (47) Jewelry display product. - From the sale and from the storage, use, or other consumption in this state of tangible personal property used to display any jewelry product; provided, that title to the jewelry display product is transferred by the jewelry manufacturer or seller and that the jewelry display product is shipped out of state for use solely outside the state and is not returned to the jewelry manufacturer or seller.

 (48) Boats or vessels generally. - Notwithstanding the provisions of this chapter, the tax imposed by sections 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, use, or other consumption in this state of any new or used boat. The exemption provided for in this subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten percent (10%) surcharge on luxury boats is repealed.

 (49) Banks and Regulated investment companies interstate toll-free calls. - Notwithstanding the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of interstate and international, toll-free terminating telecommunication service that is used directly and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided, that an eligible company employs on average during the calendar year no less than five hundred (500) "full-time equivalent employees", as that term is defined in section 42-64.5-2. For purposes of this section, an "eligible company" means a "regulated investment company" as that term is defined in the Internal Revenue Code of 1986, 26 U.S.C. section 1 et seq., or a corporation to the extent the service is provided, directly or indirectly, to or on behalf of a regulated investment company, an employee benefit plan, a retirement plan or a pension plan or a state chartered bank.

 (50) Mobile and manufactured homes generally. - From the sale and from the storage, use, or other consumption in this state of mobile and/or manufactured homes as defined and subject to taxation pursuant to the provisions of chapter 44 of title 31.

 (51) Manufacturing business reconstruction materials.

 (i) From the sale and from the storage, use or other consumption in this state of lumber, hardware, and other building materials used in the reconstruction of a manufacturing business facility which suffers a disaster, as defined in this subdivision, in this state. "Disaster" means any occurrence, natural or otherwise, which results in the destruction of sixty percent (60%) or more of an operating manufacturing business facility within this state. "Disaster" does not include any damage resulting from the willful act of the owner of the manufacturing business facility.

 (ii) Manufacturing business facility includes, but is not limited to, the structures housing the production and administrative facilities.

 (iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty percent (60%) provision applies to the damages suffered at that one site.

 (iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, this exemption does not apply.

 (52) Tangible personal property and supplies used in the processing  or preparation of floral products and floral arrangements. - From the sale, storage, use, or other consumption in this state of tangible personal property or supplies purchased by florists, garden centers, or other like producers or vendors of flowers, plants, floral products, and natural and artificial floral arrangements which are ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, plants, floral products, or natural and artificial floral arrangements, including descriptive labels, stickers, and cards affixed to the flower, plant, floral product or arrangement, artificial flowers, spray materials, floral paint and tint, plant shine, flower food, insecticide and fertilizers.

 (53) Horse food products. - From the sale and from the storage, use, or other consumption in this state of horse food products purchased by a person engaged in the business of the boarding of horses.

 (54) Non-motorized recreational vehicles sold to nonresidents.

 (i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to a bona fide nonresident of this state who does not register the non-motorized recreational vehicle in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this state or at the place of residence of the nonresident; provided, that a non-motorized recreational vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to its nonresidents is not exempt from the tax imposed under section 44-18-20; provided, further, that in that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed in his or her state of residence not to exceed the rate that would have been imposed under section 44-18-20. Notwithstanding any other provisions of law, a licensed non-motorized recreational vehicle dealer shall add and collect the tax required under this subdivision and remit the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, that when a Rhode Island licensed non-motorized recreational vehicle dealer is required to add and collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide nonresident as provided in this section, the dealer in computing the tax takes into consideration the law of the state of the nonresident as it relates to the trade-in of motor vehicles.

 (ii) The tax administrator, in addition to the provisions of sections 44-19-27 and 44-19-28, may require any licensed non-motorized recreational vehicle dealer to keep records of sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of a licensed non-motorized recreational vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or a valid out-of-state driver's license.

 (iii) Any nonresident who registers a non-motorized recreational vehicle in this state within ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable for the use tax imposed under the provisions of section 44-18-20.

 (iv) "Non-motorized recreational vehicle" means any portable dwelling designed and constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use which is eligible to be registered for highway use, including, but not limited to, "pick-up coaches" or "pick-up campers," "travel trailers," and "tent trailers" as those terms are defined in chapter 1 of title 31.

 (55) Sprinkler and fire alarm systems in existing buildings. - From the sale in this state of sprinkler and fire alarm systems, emergency lighting and alarm systems, and from the sale of the materials necessary and attendant to the installation of those systems, that are required in buildings and occupancies existing therein in July 2003, in order to comply with any additional requirements for such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003, and that are not required by any other provision of law or ordinance or regulation adopted pursuant to that Act. The exemption provided in this subdivision shall expire on December 31, 2008.

 (56) Aircraft. - Notwithstanding the provisions of this chapter, the tax imposed by sections 44-18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other consumption in this state of any new or used aircraft or aircraft parts.

 (57) Renewable energy products. - Notwithstanding any other provisions of Rhode Island general laws the following products shall also be exempt from sales tax: solar photovoltaic modules or panels, or any module or panel that generates electricity from light; solar thermal collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; manufactured mounting racks and ballast pans for solar collector, module or panel installation. Not to include materials that could be fabricated into such racks; monitoring and control equipment, if specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind energy systems or if required by law or regulation for such systems but not to include pumps, fans or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral part of, another item specified on this list; and solar storage tanks that are part of a solar domestic hot water system or a solar space heating system. If the tank comes with an external heat exchanger it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax.

 (58) Returned property. - The amount charged for property returned by customers upon rescission of the contract of sale when the entire amount exclusive of handling charges paid for the property is refunded in either cash or credit, and where the property is returned within one hundred twenty (120) days from the date of delivery.

 (59) Dietary Supplements.  - From the sale and from the storage, use or other consumption of dietary supplements as defined in section 44-18-7.1(l)(v), sold on prescriptions.

 (60) Blood. - From the sale and from the storage, use or other consumption of human blood.

 (61) Agricultural products for human consumption. - From the sale and from the storage, use or other consumption of livestock and poultry of the kinds of products of which ordinarily constitute food for human consumption and of livestock of the kind the products of which ordinarily constitute fibers for human use.

 (62) Diesel emission control technology. - From the sale and use of diesel retrofit technology that is required by section 31-47.3-4 of the general laws.

 (63) Feed for certain animals used in commercial farming. - From the sale of feed for animals as described in subsection 44-18-30(61).

(64) Alcoholic beverages. - From the sale and storage, use, or other consumption in this state by a Class A licensee of alcoholic beverages, as defined in section 44-18-7.1, excluding beer and malt beverages from December 1, 2013 through March 31, 2015; provided, further, notwithstanding section 6-13-1 or any other general or public law to the contrary, alcoholic beverages, as defined in section 44-18-7.1, shall not be subject to minimum markup from December 1, 2013 through March 31, 2015.

SECTION 4. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:

23-17-38.1. Hospitals – Licensing fee. -- (a) There is imposed a hospital licensing fee at the rate of five and forty-three hundredths percent (5.43%) upon the net patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 2010. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of administration, and all the administration, collection and other provisions of chapters 50 and 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 16, 2012 and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund in accordance with § 44-50-11 [repealed]. Every hospital shall, on or before June 18, 2012, make a return to the tax administrator containing the correct computation of net patient services revenue for the hospital fiscal year ending September 30, 2010, and the licensing fee due upon that amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b)(a) There is also imposed a hospital licensing fee at the rate of five and thirty-five hundredths percent (5.35%) upon the net patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 2011, except that the license fee for all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington County hospitals is subject to approval by the Secretary of the US Department of Health and Human Services of a state plan amendment submitted by the Executive Office of Health and Human Services for the purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of revenue, and all the administration, collection and other provisions of 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 15, 2013 and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund. Every hospital shall, on or before June 17, 2013, make a return to the tax administrator containing the correct computation of net patient services revenue for the hospital fiscal year ending September 30, 2011, and the licensing fee due upon that amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b) There is also imposed a hospital licensing fee at the rate of five and two hundred forty-six thousandths percent (5.246%) upon the net patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 2012, except that the license fee for all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington County hospitals is subject to approval by the Secretary of the US Department of Health and Human Services of a state plan amendment submitted by the Executive Office of Health and Human Services for the purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of revenue, and all the administration, collection and other provisions of 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 14, 2014 and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund. Every hospital shall, on or before June 16, 2014, make a return to the tax administrator containing the correct computation of net patient services revenue for the hospital fiscal year ending September 30, 2012, and the licensing fee due upon that amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(c) For purposes of this section the following words and phrases have the following meanings:

(1) "Hospital" means a person or governmental unit duly licensed in accordance with this chapter to establish, maintain, and operate a hospital, except a hospital whose primary service and primary bed inventory are psychiatric.

(2) "Gross patient services revenue" means the gross revenue related to patient care services.

(3) "Net patient services revenue" means the charges related to patient care services less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.

(d) The tax administrator shall make and promulgate any rules, regulations, and procedures not inconsistent with state law and fiscal procedures that he or she deems necessary for the proper administration of this section and to carry out the provisions, policy and purposes of this section.

(e) The licensing fee imposed by this section shall apply to hospitals as defined herein which are duly licensed on July 1, 2012 2013, and shall be in addition to the inspection fee imposed by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

SECTION 5. Chapter 44-1 of the General Laws entitled "State Tax Officials" is hereby amended by adding thereto the following section:

44-1-35. Outside Collection Agencies. -- The tax administrator may retain by written contract collection agencies licensed under Rhode Island law, or licensed under the laws of another state or the District of Columbia, for the purpose of collecting from sources outside the state of Rhode Island taxes, interest and/or penalties assessed by the tax administrator.

SECTION 6. Title 44 of the General Laws entitled "Taxation" is hereby amended by adding thereto the following chapter:

CHAPTER 68

TAX PREPARERS ACT OF 2013

44-68-1. Short title. -- This chapter shall be known as the "Tax Preparers Act".

44-68-2. Definitions. -- (a) "Tax return preparer" means an individual who prepares a substantial portion of any return for compensation. Tax return preparers include individuals required to register with the Internal Revenue Service as a tax return preparer and who have a Preparer Tax Identification Number (PTIN). For the purpose of this chapter the following individuals shall not be considered tax return preparers:

(1) Volunteer tax return preparers; or

(2) Employees of a tax return preparer and employees of a commercial tax return preparation business who provide only clerical, administration or other similar services.

(b) "Preparer Tax Identification Number" means the number issued by the Internal Revenue Service (IRS) to paid preparers to use on all the returns they prepare.

(c) "Return" shall mean any tax report, return, claim for refund or attachment to any report, return and/or claim for return filed with the tax administrator pursuant to the tax laws of this state.

44-68-3. Duties and Responsibilities. -- (a) A tax return preparer who prepares any return that is submitted to the tax administrator must comply with all state laws and all applicable regulations promulgated by the tax administrator.

(b) A tax return preparer must sign and include his/her Preparer Tax Identification Number on all returns prepared and filed with the Division of Taxation.

44-68-4. Civil Penalties. -- (a) Failure To Be Diligent in Determining Eligibility for or Amount of Earned Income Credit. Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and failed to comply with due diligence requirements imposed by regulations issued by the tax administrator with respect to determining eligibility for, or the amount of, the credit allowable by section 44-30-2.6(c)(2)(N), the tax return preparer shall pay a penalty of five hundred dollars ($500) for each such return and/or claim.

(b) Failure To Be Diligent in Determining Eligibility for Property Tax Relief Credit. Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and failed to comply with due diligence requirements imposed by regulations issued by the tax administrator with respect to determining eligibility for, or the amount of, the property tax relief credit allowable by section 44-33-1 et seq., the tax return preparer shall pay a penalty of five hundred dollars ($500) for each such return.

(c) Tax Return Preparer Civil Penalties. Upon a determination by the tax administrator that a tax return preparer willfully prepared, assisted in preparing, or caused the preparation of a return(s)  filed with the division of taxation with intent to wrongfully obtain a property tax relief credit or with the intent to evade or reduce a tax obligation, the tax return preparer shall be liable for a penalty of one thousand dollars ($1,000), or five hundred ($500) for each return so filed during any calendar year, whichever is greater.

(d) The tax administrator may suspend or revoke the privilege of a tax return preparer to prepare and/or file returns with the division of taxation upon a determination that the tax return preparer has failed to comply with or violated any provision of this section, any regulations issued by the tax administrator, or with any provision of any other laws relative to the preparation of tax returns. Any tax return preparer receiving a notice of intent to suspend or revoke the privilege to file tax returns with the division of taxation may request a hearing on the notice of intent to suspend or revoke; provided that said request for a hearing must be made within thirty (30) days of such notice to suspend or revoke. If, after hearing, the tax return preparer is aggrieved by a decision of the tax administrator (or his or her designated hearing officer), the tax return preparer may, within thirty (30) days after notice of the decision is sent to the tax return preparer by certified or registered mail, directed to their last known address, petition the sixth division of the district court pursuant to chapter 8 of title 8, setting forth the reasons why the decision is alleged to be erroneous and praying for relief therefrom.

44-68-5. Criminal Penalties. -- Any tax return preparer who has previously been assessed a penalty by the tax administrator under section 44-68-4(c) who is found by a court of competent jurisdiction to have thereafter willfully prepared, assisted in preparing, or caused a preparation of another false tax return or claim for refund which was filed with the division of taxation with the intent to wrongfully obtain a property relief credit or the intent to wrongfully evade or reduce a tax obligation shall be guilty of a felony and, on conviction, shall be subject to a fine not exceeding fifty-thousand dollars ($50,000) or imprisonment not exceeding five (5) years or both.

44-68-6. Regulations. -- The tax administrator shall promulgate rules and regulations in order to implement the provisions of this chapter.

44-68-7. Severability. -- If any provision of this chapter or the application of this chapter to any tax return preparer is held invalid, the remainder of this chapter and the application of the provisions to other tax return preparers or circumstances shall not be affected.

SECTION 7. Section 28-21-16 of the General Laws entitled "Hazardous Substances Right to Know Act - Funding" is hereby amended to read as follows:

28-21-16. Funding -- Contracts for services -- Exemption for copiers -- Appeals. -- (a) The director of labor and training shall determine which employers are subject to the provisions of this chapter. and shall assess and collect an annual assessment of forty-two dollars ($42.00) which shall be levied against all those employers, which result in the funding for the implementation of this chapter. The employer shall be obligated to pay the assessment. No employer shall be exempt from the provisions of this chapter unless and until a request for exemption is filed and approval is granted; provided that public and private libraries shall be exempted exempt from this requirement. The funds shall be deposited as general revenue.

(b) The director of labor and training may contract with qualified agencies and/or parties for technical services performed in conjunction with this chapter.

(c) The director of labor and training shall exempt from this chapter all employers whose contact with the designated substances is entirely limited to copier machine powders or liquids where the exposure is incidental to the business operation.

(d) Any employer who contests the determination of the director may appeal the determination under the provisions set forth in sections 28-20-19 and 28-20-20.

SECTION 8. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation of Beverages" is hereby amended to read as follows:

3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or reduced for sale in this state a tax of three dollars ($3.00) three dollars and thirty cents ($3.30) on every thirty-one (31) gallons, and a tax at a like rate for any other quantity or fractional part. On any beverage manufactured, rectified, blended, or reduced for sale in this state consisting in whole or in part of wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other strong liquors (as distinguished from beer or other brewery products) the tax to be assessed and levied is as follows:

 (1) Still wines (whether fortified or not), sixty cents ($.60) one dollar and forty cents ($1.40) per gallon;

 (2) Still wines (whether fortified or not) made entirely from fruit grown in this state, thirty cents ($.30) per gallon;

 (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon;

 (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole or in part of alcohol which is the product of distillation, three dollars and seventy-five cents ($3.75) five dollars and forty cents ($5.40) per gallon, except that whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole or in part of alcohol which is the product of distillation but which contains alcohol measuring thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon;

 (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50) per gallon; and

 (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

 (b) Sacramental wines are not subject to any tax if sold directly to a member of the clergy for use by the purchaser, or his or her congregation for sacramental or other religious purposes.

 (c) A brewer who brews beer in this state which is actively and directly owned, managed, and operated by an authorized legal entity which has owned, managed, and operated a brewery in this state for at least twelve (12) consecutive months, shall receive a tax exemption on the first one hundred thousand (100,000) barrels of beer that it produces and distributes in this state in any calendar year. A barrel of beer is thirty one (31) gallons.

SECTION 9. Section 3-10-5 of the General Laws in Chapter 3-10 entitled "Taxation of Beverages" is hereby amended to read as follows:

3-10-5. Information supplemental to returns -- Audit of books. -- (a) The tax administrator may at any time request further information from any person or from the officers and employees of any corporation which he or she may deem necessary to verify, explain or correct any return made in pursuance of the provisions of this chapter, and for the like purpose the administrator or his or her authorized agent may examine the books of account of that person or corporation during business hours.

 (b) Each Class A licensee authorized to sell intoxicating beverages at wholesale or retail in this state shall file an annual report on or before February 1 with the division of taxation in the form required by the tax administrator. Such report shall included, but not limited to, total sales of alcoholic beverages, sales tax and excise tax collections on such sales for immediately preceding calendar year. Annually, on or before May 1, the tax administrator shall prepare and submit to the chairs of house and senate finance committees a report reflecting data from the annuals reports submitted by said licensee to the division of taxation. The tax administrator's report shall compile total sales of alcoholic beverages, sales tax and excise tax collections by county.

SECTION 10. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Terminal" is hereby amended to read as follows:

42-61.2-7. Division of revenue. [Effective June 30, 2011.] -- (a) Notwithstanding the provisions of section 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

 (1) For deposit in the general fund and to the state lottery division fund for administrative purposes: Net terminal income not otherwise disbursed in accordance with subdivisions (a)(2) -- (a)(6) herein;

 (i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%) up to a maximum of twenty million dollars ($20,000,000) shall be equally allocated to the distressed communities as defined in section 45-13-12 provided that no eligible community shall receive more than twenty-five percent (25%) of that community's currently enacted municipal budget as its share under this specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any portion of general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008 and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2009 and shall be made from general appropriations, provided however that $784,458 of the total appropriation shall be distributed equally to each qualifying distressed community.  For each of the fiscal years ending June 30, 2011, June 30, 2012, and June 30, 2013  seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each qualifying distressed community.

 (ii) Five one hundredths of one percent (0.05%) up to a maximum of five million dollars ($5,000,000) shall be appropriated to property tax relief to fully fund the provisions of section 44-33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 (iii) One and twenty-two one hundredths of one percent (1.22%) to fund section 44-34.1-1, entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event shall the exemption in any fiscal year be less than the prior fiscal year.

 (iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%) to a maximum of ten million dollars ($10,000,000) for supplemental distribution to communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008 distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be made from general appropriations. For the fiscal year ending June 30, 2009, no funding shall be disbursed.  For the fiscal year ending June 30, 2010 and thereafter, funding shall be determined by appropriation.

 (2) To the licensed video lottery retailer:

 (a) (i) Prior to the effective date of the NGJA Master Contract, Newport Jai Ali twenty-six percent (26%) minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996);

 (ii) On and after the effective date of the NGJA Master Contract, to the licensed video lottery retailer who is a party to the NGJA Master Contract, all sums due and payable under said Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars ($384,996).

 (iii) Effective July 1, 2013, provided that the referendum measure authorized by Section 1 of Chapters 24 and 25 of the Public Laws of 2012 is approved statewide and in the City of Newport and provided further that Newport Grand commences and continues to offer table games, the rate of net terminal income payable to Newport Grand, LLC under the Newport Grand Master Contract shall increase by one and one half percentage (1.5%) points. Effective July 1, 2013 the rate of net terminal income payable to Newport Grand, LLC under the Newport Grand Master Contract shall increase by two and one quarter percent (2.25%) points. The increase herein shall sunset and expire on June 30, 2015 and the rate in effect as of June 30, 2013 shall be reinstated.

 (b) (i) Prior to the effective date of the UTGR Master Contract, to the present licensed video lottery retailer at Lincoln Park which is not a party to the UTGR Master Contract, twenty-eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687);

 (ii) On and after the effective date of the UTGR Master Contract, to the licensed video lottery retailer who is a party to the UTGR Master Contract, all sums due and payable under said Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

 (3) (i) To the technology providers who are not a party to the GTECH Master Contract as set forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of the net terminal income of the provider's terminals; in addition thereto, technology providers who provide premium or licensed proprietary content or those games that have unique characteristics such as 3D graphics, unique math/game play features or merchandising elements to video lottery terminals may receive incremental compensation, either in the form of a daily fee or as an increased percentage, if all of the following criteria are met:

 (A) A licensed video lottery retailer has requested the placement of premium or licensed proprietary content at its licensed video lottery facility;

 (B) The division of lottery has determined in its sole discretion that the request is likely to increase net terminal income or is otherwise important to preserve or enhance the competiveness of the licensed video lottery retailer;

 (C) After approval of the request by the division of lottery, the total number of premium or licensed propriety content video lottery terminals does not exceed ten percent (10%) of the total number of video lottery terminals authorized at the respective licensed video lottery retailer; and

 (D) All incremental costs are shared between the division and the respective licensed video lottery retailer based upon their proportionate allocation of net terminal income. The division of lottery is hereby authorized to amend agreements with the licensed video lottery retailers, or the technology providers, as applicable, to effect the intent herein.

 (ii) To contractors who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under said Master Contract;

 (iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted proportionately from the payments to technology providers the sum of six hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);

 (4) (A) To the city of Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand, except that:

 (i) Effective November 9, 2009 until June 30, 2013, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized machines at Newport Grand for each week the facility operates video lottery games on a twenty-four (24) hour basis for all eligible hours authorized, and

 (ii) Effective July 1, 2013, provided that the referendum measure authorized by Section 1 of Chapters 24 and 25 of the Public Laws of 2012 is approved statewide and in the City of Newport, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized video lottery terminals at Newport Grand; and

 (B) To the town of Lincoln one and twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Twin River except that,

 (i) Effective November 9, 2009 until June 30, 2013, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized machines at Twin River for each week video lottery games are offered on a twenty-four (24) hour basis for all eligible hours authorized, and

 (ii) Effective July 1, 2013, provided that the referendum measure authorized by Article 25, Chapter 151, Section 4 of the Public Laws of 2011 is approved statewide and in the Town of Lincoln, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized video lottery terminals at Twin River; and

 (5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park up to a maximum of ten million dollars ($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement, elderly housing, adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett Indians are entitled to any payments or other incentives; and provided further, any monies distributed hereunder shall not be used for, or spent on previously contracted debts; and

 (6) Unclaimed prizes and credits shall remit to the general fund of the state; and

 (7) Payments into the state's general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall be made on the tenth day following the close of the month except for the last month when payment shall be on the last business day.

 (b) Notwithstanding the above, the amounts payable by the Division to UTGR related to   the Marketing Program shall be paid on a frequency agreed by the Division, but no less frequently than annually.

 (c) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described above in regard to the First Amendment to the UTGR Master Contract.

 (d) Notwithstanding the above, the amounts payable by the Division to Newport Grand related to the Marketing Program shall be paid on a frequency agreed by the Division, but no less frequently than annually.

 (e) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the Director is authorized to fund the Marketing Program as described above in regard to the First Amendment to the Newport Grand Master Contract.

 (f) Notwithstanding the provisions of section 42-61-15, the allocation of Net Table Game Revenue derived from Table Games at Twin River is as follows:

 (1) For deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund:

 (i) Sixteen percent (16%) of Net Table Game Revenue, except as provided in subsection (f)(1)(ii);

 (ii) An additional two percent (2%) of Net Table Game Revenue generated at Twin River shall be allocated starting from the commencement of Table Game activities by such Table Game Retailer, and ending, with respect to such Table Game Retailer, on the first date that such Table Game Retailer's net terminal income for a full State fiscal year is less than such Table Game Retailer's net terminal income for the prior State fiscal year, at which point this additional allocation to the State shall no longer apply to such Table Game Retailer.

 (2) To UTGR, Net Table Game Revenue not otherwise disbursed pursuant to above subsection (f)(1); provided, however, on the first date that such Table Game Retailer's net terminal income for a full State fiscal year is less than such Table Game Retailer's net terminal income for the prior State fiscal year, as set forth in subsection (f)(1)(ii) above, one percent (1%) of this Net Table Game Revenue shall be allocated to the town of Lincoln for four (4) consecutive State fiscal years.

 (g) Notwithstanding the provisions of section 42-61-15, the allocation of Net Table Game Revenue derived from Table Games at Newport Grand is as follows:

 (1) For deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund: eighteen percent (18%) of Net Table Game Revenue.

 (2) To Newport Grand LLC, Net Table Game Revenue not otherwise disbursed pursuant to above subsection (g)(1) provided, however, on the first date that such Table Game Retailer's net terminal income for a full State fiscal year is less than such Table Game Retailer's net terminal income for the prior State fiscal year, one percent (1%) of this Net Table Game Revenue shall be allocated to the city of Newport for four (4) consecutive State fiscal years.

SECTION 11. Section 44-23-5 of the General Laws in Chapter 44-23 entitled "Estate and Transfer Taxes - Enforcement and Collection" is hereby amended to read as follows:

44-23-5. Appraisal of estate. – (a) If any statement filed in accordance with the provisions of this chapter is considered to be an erroneous or incomplete statement of the property, real, tangible personal, intangible personal, or of any part of the property, of the decedent, the tax administrator shall give notice to the executor, administrator, heir-at-law, beneficiary, or trustee filing the statement, to appear before the tax administrator for the purpose of examination of and concerning the statement, and concerning all matters appertaining to the estate and the value of the estate of the decedent; and if the executor, administrator, heir-at-law, beneficiary, or trustee fails to appear after due notice, or if after appearance and examination of the executor, administrator, heir-at-law, beneficiary, or trustee the tax administrator still considers the statement to be an erroneous or incomplete statement, or if the executor, administrator, heir-at-law, beneficiary, or trustee refuses or neglects to answer the questions propounded in reference to the statement, the tax administrator may appraise the estate. The tax administrator shall give notice by mail to the executor, administrator, heir-at-law, beneficiary, or trustee and to all persons known to have a claim or interest in the estate or property to be appraised, of the time and place of the appraisal, and the tax administrator or his or her authorized agent shall at that time and place appraise the estate or property at its full and fair cash value as prescribed in this section; and for that purpose the tax administrator is authorized to issue subpoenas and to compel the attendance of witnesses and to take the evidence of the witnesses under oath if necessary, concerning the estate or property and the value of the estate, and the witnesses shall receive the same fees as those now paid to witnesses subpoenaed to attend the superior court. From the appraisal and other proof relating to the estate or property, the tax administrator determines the full and fair cash value of the estate or property upon which all taxes imposed by chapter 22 of this title are computed and the amount of taxes to which it is liable. If no appraisal is made as provided in this section, the tax administrator may determine the value of the property upon which all the taxes are computed and the amount of taxes to which it is liable.

(b) Notwithstanding the provisions of subsection 44-23-5(a), all farmland, as such term is defined in section 44-27-2, included as part of an estate for purposes of this section and utilized by the executor, administrator, heir-at-law, beneficiary or trustee as farmland, shall be appraised at its use value according to applicable federal and state law and not at its full and fair cash value.

SECTION 12. Section 8-18-2 of the General Laws in Chapter 8-18 entitled "State and Municipal Court Compact" is hereby amended to read as follows:

8-18-2. Universal summons. -- All state agencies and municipalities which have law enforcement powers shall be issued and authorized a form for summons and complaint to be used for all violations specified in chapters 27, and 41.1 and 41.2 of title 31 and no other summons shall be substituted except as provided by section 31-12-12. All fines, assessments, fees, and other financial charge or any other responsibility not changed by the following shall be deemed enforceable even when the summons is issued by a municipality and adjudicated by a municipal court, or issued by state agencies or a municipality without a court and adjudicated by the traffic tribunal. All summonses once issued must be recorded by the traffic tribunal prior to a hearing, arraignment, or trial. If the summons is answered by payment without personal appearance pursuant to section 31-41.1-2, it shall be recorded by the traffic tribunal upon return from the financial institution.

SECTION 13. Sections 31-41.2-4 and 31-41.2-5 of the General Laws in Chapter 31-41.2 entitled "Automated Traffic Violation Monitoring Systems" are hereby amended to read as follows:

31-41.2-4. Procedure -- Notice. -- (a) Except as expressly provided in this chapter, all prosecutions based on evidence produced by an automated traffic violation detection system shall follow the procedures established in chapter 41.1 of this title, chapter 8-18 of these general laws, except the provision providing for payments to the state in sections 8-18-4 and 8-18-6, and the rules promulgated by the chief magistrate of the traffic tribunal for the hearing of civil traffic violations. Citations A summons may be issued by an officer solely based on evidence obtained by use of an automated traffic violation detection system. All citations summons issued based on evidence obtained from an automated traffic violation detection system shall be issued within fourteen (14) days of the violation.

(b) Notwithstanding any rule, regulation, or other provision of the general or public laws to the contrary, no city or town shall be required to make payments to the state in implementing any provision of this chapter until July 1, 2013.

(b)(c) It shall be sufficient to commence a prosecution based on evidence obtained from an automated traffic violation detection system that a copy of the citation summons and supporting documentation be mailed to the address of the registered owner kept on file by the registry of motor vehicles pursuant to section 31-3-34 of these general laws. For purposes of this section, the date of issuance shall be the date of mailing.

 (c)(d) The officer issuing the citation summons shall certify under penalties of perjury that the evidence obtained from the automated traffic violation detection system was sufficient to demonstrate a violation of the motor vehicle code. Such certification shall be sufficient in all prosecutions pursuant to this chapter to justify the entry of a default judgment upon sufficient proof of actual notice in all cases where the citation summons is not answered within the time period permitted.

 (d)(e) The citation summons shall contain all the information provided for on the uniform summons as referred to in section 31-41.1-1 of the general laws and the rules of procedure promulgated by the chief magistrate of the traffic tribunal subject to the approval of the supreme court pursuant to section 8-6-2.

 (e)(f) In addition to the information in the uniform summons, the following information shall be attached to the citation summons:

 (1) Copies of two (2) or more photographs, or microphotographs, or other recorded images taken as proof of the violation; and

 (2) A signed statement by a trained law enforcement officer that, based on inspection of recorded images, the motor vehicle was being operated in violation of section 31-13-4 of this subtitle; and

 (3) A statement that recorded images are evidence of a violation of this chapter; and

 (4) A statement that the person who receives a summons under this chapter may either pay the civil penalty in accordance with the provisions of section 31-41.1-3, or elect to stand trial for the alleged violation.

31-41.2-5. Hearings. -- Evidence from an automated traffic violation detection system shall be considered substantive evidence in the prosecution of all civil traffic violations. Evidence from an automated traffic violation detection system approved by the director of transportation shall be admitted without further authentication and such evidence may be deemed sufficient to sustain a civil traffic violation. In addition to any other defenses as set forth herein, any and all defenses cognizable at law shall be available to the individual who receives the citation summons commencing a prosecution under this chapter.

SECTION 14. Section 44-62-3 of the General Laws in Chapter 44-62 entitled "Tax Credits for Contributions to Scholarship Organizations" is hereby amended to read as follows:

44-62-3. Application for the tax credit program. -- (a) Prior to the contribution, a business entity shall apply in writing to the division of taxation. The application shall contain such information and certification as the tax administrator deems necessary for the proper administration of this chapter. A business entity shall be approved if it meets the criteria of this chapter; the dollar amount of the applied for tax credit is no greater than one hundred thousand dollars ($100,000) in any tax year, and the scholarship organization which is to receive the contribution has qualified under section 44-62-2.

 (b) Approvals for contributions under this section shall be made available by the division of taxation on a first-come-first-serve basis. The total aggregate amount of all tax credits approved shall not exceed one million dollars ($1,000,000) one million five hundred thousand dollars ($1,500,000) in a fiscal year.

 (c) The division of taxation shall notify the business entity in writing within thirty (30) days of the receipt of application of the division's approval or rejection of the application.

 (d) Unless the contribution is part of a two-year plan, the actual cash contribution by the business entity to a qualified scholarship organization must be made no later than one hundred twenty (120) days following the approval of its application. If the contribution is part of a two-year plan, the first year's contribution follows the general rule and the second year's contribution must be made in the subsequent calendar year by the same date.

 (e) The contributions must be those charitable contributions made in cash as set forth in the Internal Revenue Code.

SECTION 15. Section 44-18-30B. of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes - Liability and Computation" is hereby amended to read as follows:

44-18-30B. Exemption from sales tax for sales by writers, composers, artists -- Findings. -- (a) The general assembly makes the following findings of facts:

 (1) The downtown area of the city of Providence has been characterized by blighted areas, and dilapidated and abandoned structures;

 (2) As a result, the downtown area has been designated an economic development zone in order to stop the deterioration and stimulate economic activity;

 (3) The capitol center area of the city of Providence has become an attractive location, especially with the construction of the Providence Place Mall;

 (4) In order to promote, revitalize and redevelop the "Old Downtown" area of the city of Providence it is necessary to provide tax exemptions to this area as it has been designated as an economic development zone;

 (5) In order to promote, revitalize, and redevelop the "Downtown or other industrial or manufacturing buildings" located in the City of Pawtucket, it is necessary to provide tax exemptions to this area as it has been designated as an economic development zone;

 (6) The development of an active artistic community, including "artists in residence", in this area would promote economic development, revitalization, tourism, employment opportunities, and encourage business development by providing alternative commercial enterprises while in Providence creating a link between the Old Downtown and the Capital Center Area;

 (7) There is a separate artistic community in the town of Westerly which is important to preserve, promote, and revitalize, and which is distinct from that in the city of Providence;

 (8) There is a separate artistic community in the city of Woonsocket which is important to promote and revitalize and which is distinct from that in the cities of Providence and Pawtucket and the town of Westerly;

 (9) There is a separate artistic community in the city of Warwick which is important to preserve, promote, and revitalize and which is distinct from that in the cities of Providence, Pawtucket, Woonsocket and the town of Westerly;

 (10) There are separate artistic communities in the city of Newport and in the town of Tiverton which are important to promote and revitalize and which are distinct from those in the cities of Providence, Pawtucket, Warwick and Woonsocket and the towns of Westerly and Little Compton;

 (11) There is a separate artistic community in the town of Warren which is important to promote and revitalize and which is distinct from that in the cities of Providence, Pawtucket, Newport, Warwick and Woonsocket and the towns of Westerly and Tiverton.

(1) The arts and culture are a significant asset for Rhode Island, one which generates revenue through increased tourism and economic activity, creates jobs and economic opportunities, revitalizes communities adding to quality of life and property values, and fosters creativity, innovation, and entrepreneurship.

(2) Since 1998 the establishment of arts districts where "one-of-a-kind limited production" works of art may be sold exempt from state sales tax has resulted in an increased presence for the arts in designated cities and towns, with benefits to those communities and to the state.

(3) Since the establishment of arts districts, many communities have sought legislation to expand the program to their city or town.

(4) There is value in expanding the arts district program statewide, providing incentives for the sale and purchase of art. This is a unique opportunity for Rhode Island to shape history, and gain an advantage over other states, by becoming the first and only state in the country to declare a statewide sales tax exemption on art. This will strengthen Rhode Island's identity as an arts-friendly destination and "State of the Arts". 

 (b) (1) This section only applies to sales by writers, composers and artists residing in and conducting a business within the state of Rhode Island. a section of the defined economic development zone in the cities of Providence or Pawtucket, or the defined economic development zone in the town of Westerly or the defined economic zone in the city of Woonsocket, or the defined economic zone in the city of Warwick, or in those areas within the city of Newport, and the town of Little Compton, which are zoned "general business,"  "waterfront business," or "limited business" or have been designated by the city of Newport as part of the arts district, or in those areas of the town of Warren which are zoned "waterfront district," "special district," "village business district," "manufacturing district," "business district" or "Warren historic district," or in those areas of the town of Tiverton which are zoned "business commercial," "business waterfront" or "village commercial." For the purposes of this section, a "work" means an original and creative work, whether written, composed or executed for "one-of-a-kind limited" production and which falls into one of the following categories:

 (i) A book or other writing;

 (ii) A play or the performance of said play;

 (iii) A musical composition or the performance of said composition;

 (iv) A painting, print, photograph or other like picture;

 (v) A sculpture;

 (vi) Traditional and fine crafts;

 (vii) The creation of a film or the acting within the film;.

 (viii) The creation of a dance or the performance of the dance.

 (2) For the purposes of this section, a "work" includes any product generated as a result of any of the above categories.

 (3) For the purposes of this section, a "work" does not apply to any piece or performance created or executed for industry oriented, commercial or related production.

 (c) (1) This section applies to sales by any individual:

 (i) Who is a resident of and has a principal place of business situated in the state of Rhode Island. section of the economic development zone designated as the arts and entertainment district in the downtown area of the city of Providence or in the city of Pawtucket, or the defined economic development zone in the town of Westerly or the defined economic zone in the city of Woonsocket, or the defined economic zone in the city of Warwick, or who is a resident of and has a principal place of business situated in those areas within the city of Newport or the town of Little Compton, which are zoned "general business," "waterfront business," or "limited business," or have been designated by the city of Newport as part of the arts district, or who is a resident of and has a principal place of business situated in those areas within the town of Warren which are zoned "waterfront district," "special district," "village business district," "manufacturing district," "business district" or "Warren historic district," or who is a resident or has a principal place of business situated in those areas within the town of Tiverton which are zoned "business commercial," "business waterfront" or "village commercial." For the purposes of this section, the Providence arts and entertainment district in Providence is defined as the area bounded by Pine Street to the southeast, Dorrance Street to the northeast, Sabin Street to the northwest and Empire Street to the southwest. Said Providence arts and entertainment district also includes the area beginning at the point of intersection of Acorn Street and Harris Avenue, then turning east onto Atwells Avenue to Service Road 7, then turning southerly onto Service Road 7 to Westminster Street, then turning westerly onto Westminster Street, continuing until Bridgham, then turning south onto Bridgham to Cranston Street, then turning southwesterly onto Cranston Street, then continuing to Messer Street, then turning north onto Messer Street to Westminster Street, turning west onto Westminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 to Sheridan Street, then heading northeast on Sheridan Street to Aleppo Street, then turning southeast along Aleppo Street to Pelham Street, then heading northeast on Pelham Street to Manton Avenue, then continuing southeast on Manton Avenue until Delaine Street, then heading northeast on Delaine Street until Appleton Street, then continuing northwesterly on Appleton Street until Bowdoin Street, then heading north on Bowdoin Street until Barstow Street, then heading east on Barstow until Valley Street, then heading northeast on Valley Street to Hemlock Street, then turning southeast on Hemlock Street until Promenade Street, then heading east on Promenade Street to Acorn Street, then heading south on Acorn Street to the intersection of Acorn Street and Harris Avenue. The named streets are included in the Providence district; and in Pawtucket is defined as the area beginning at the point of intersection of Dexter Street and the Central Falls line, then east along the Central Falls line to the Blackstone River, then north along the city boundary on the Blackstone River to the Cumberland line, then west along the Pawtucket city boundary line to I-95, then south along I-95 to Pine Street, then north on Pine Street to AMTRAK Right of Way, then northwest along the AMTRAK Right of Way to Dexter Street, then north on Dexter Street to the Central Falls line. The named streets are included in the district. The Westerly arts and entertainment district is defined as assessor's plat 56, lots 1 through 24, lot 48, lots 50 through 62, and lots 71 through 82, and assessors plat 66, lots 22 through 26, and lots 29 through 36 the Woonsocket arts and entertainment district is defined as the area beginning at a point of land on the southwest bank of the Blackstone River abutting the bridge for the Providence & Worcester Railroad and proceeding northerly to a point at the intersection of Worrall Street, Clinton Street and Harry S. Truman Drive, then proceeding northwesterly along Worrall Street to its intersection with Social Street, then turning westerly on Social Street proceeding to its intersection with Main Street, Blackstone Street and North Main Street, then turning northwesterly and proceeding along Blackstone Street to its intersection with River Street, then turning northerly and proceeding along River Street to its intersection with the north/east bank of Blackstone River, then following the riverbank southerly to the bridge at Bernon Street and turning easterly crossing the Blackstone River via Bernon Street and proceeding to its intersection with Front Street, then turning northeasterly on Front Street and proceeding to its intersection with Hamlet Avenue, and to include the former courthouse on the southerly side of Front Street at its intersection with Hamlet Avenue, then turning easterly on Hamlet Avenue and proceeding to its intersection with Manville Road, then turning southeasterly on Manville Road and proceeding to its intersection with Davison Avenue, then turning northeasterly on Davison Avenue and proceeding to a point on the south/west bank of the Blackstone River, then turning northerly, following the southerly riverbank to the point of beginning. The abovementioned streets are included in the district. The Warwick arts district is defined as that area known as Pontiac Village, beginning on Route 5 at the Warwick/Cranston municipal boundary, then south to the intersection of Route 5 and the Pawtuxet River, then following the Pawtuxet River in an easterly and northerly direction to the municipal boundary in the vicinity of Knight Street, then from the intersection of Knight Street and the municipal boundary westerly along the Warwick/Cranston municipal boundary to the intersection of Route 5 and Greenwich Avenue. The above named streets are included in the district.

 (ii) Who is determined by the tax administrator in consultation with the Rhode Island council on the arts, after consideration of any evidence he or she deems necessary or which is submitted to him or her by the individual, to have written, composed, or executed, either solely or jointly, a work or works which would fall into one of the categories listed in subsection (b)(1).

 (2) This section also applies to sales by any other gallery located in the state of Rhode Island. arts and entertainment district described in subsection (c)(1)(i) as well as any other arts and entertainment district designated by the general assembly, as well as to sales by any other gallery located in those areas within the city of Newport, or the town of Little Compton, which are zoned "general business," "waterfront business," or "limited business" or have been designated by the city of Newport as part of the arts district, as well as to sales by any other gallery located in those areas within the town of Warren which are zoned "waterfront district," "special district," "village business district," "manufacturing district," "business district" or "Warren historic district," as well as to sales by any other gallery located in those areas within the town of Tiverton which are zoned "business commercial," "business waterfront" or "village commercial."

 (3) The tax administrator shall not make a determination unless:

 (i) The individual(s) concerned duly make(s) an application to the tax administrator for the sales tax exemption which applies to the works defined in this section; and

 (ii) The individual has complied and continues to comply with any and all requests made by the tax administrator.

 (d) Any individual to whom this section applies and who makes an application to the tax administrator is entitled to a sales tax exemption for the sale of a work or works sold from the individual's business located in the economic development zone State of Rhode Island which would, apart from this section, be subject to the tax rate imposed by the state of Rhode Island.

 (e) When an individual makes a request for the exemption, the tax administrator is entitled to all books, documents, or other evidence relating to the publication, production or creation of the works that may be deemed necessary by the tax administrator for the purposes of the exemption. The time period in which to provide this information is in the sole discretion of the tax administrator and specified in the notice.

 (f) In addition to the information required in subsection (e), the tax administrator may require the individual(s) to submit an annual certified accounting of the numbers of works sold, the type of work sold, and the date of the sale. Failure to file this report may, in the sole discretion of the tax administrator, terminate the individual's eligibility for the exemption.

 (g) Any person storing, using, or otherwise consuming in this state any work or works which is deemed to be exempt from the sales tax pursuant to this section is not liable for the use tax on the work or works.

 (h) Notwithstanding the provisions of this section, any individual to whom this section may apply shall comply with all the administration, collection, and other provisions of chapters 18 and 19 of this title.

(4) The Rhode Island council on the arts will oversee the transition to a statewide arts district program and work with the state tourism agencies, local chambers of commerce, and advertising/marketing agencies to promote this program, and will coordinate its efforts with the city and town governments. The Rhode Island council on the arts may request and shall receive from any department, division, board, bureau, commission, or agency of the state any data, assistance, and resources, including additional personnel, that will enable it to properly carry out this program.

(5) The tax administrator, in cooperation with the Rhode Island council on the arts, will gather data to assess the overall impact of the statewide arts district program, and issue an annual report, including, but not be limited to, the impact of the tax exemption on employment, tourism, sales and spending within the arts sector and adjacent businesses, and any other factors that describe the impact of the program.    

SECTION 16. Section 1 of this article shall take effect on January 1, 2014, and shall apply to all assets placed in service on or after January 1, 2014. Section 2 of this article shall take effect upon passage and shall apply to tax years beginning on or after January 1, 2014. Section 4 of this article shall take effect July 1, 2013. Section 8 of this article shall take effect  on July 1, 2013 and shall expire on March 31, 2015. Section 15 of this article shall take effect on December 1, 2013 and shall expire on March 31, 2015. The remainder of this article shall take effect upon passage.

 


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art.010/2/010/1
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ARTICLE 10 AS AMENDED

RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2013

SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in this act, the following general revenue amounts are hereby appropriated out of any money in the treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2013. The amounts identified for federal funds and restricted receipts shall be made available pursuant to Section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

           

                                                                                 FY 2013             FY 2013         FY 2013

                                                                                 Enacted              Change               Final

Administration

Central Management

General Revenues                                                    2,272,523          (124,616)       2,147,907

Office of Digital Excellence                                      0           399,182           399,182

Federal Funds                                                                        0             86,857             86,857

Total - Central Management                         2,272,523           361,423        2,633,946

Legal Services General Revenues                                        2,006,995            (96,761)       1,910,234

Accounts and Control General Revenues                            3,815,349            (36,610)       3,778,739

Auditing General Revenues                                                 1,200,000            (63,272)       1,136,728

Office of Management and Budget

General Revenues                                                    3,004,055             78,337        3,082,392

Restricted Receipts                                                     411,460            (27,619)          383,841

Total – Office of Management and Budget  3,415,515             50,718        3,466,233

Purchasing

General Revenues                                                    2,741,468          (191,222)       2,550,246

Federal Funds                                                               69,888             98,290           168,178

Other Funds                                                                294,974             33,304           328,278

Total – Purchasing                                       3,106,330            (59,628)       3,046,702

Human Resources

General Revenues                                                    8,839,720          (544,158)       8,295,562

Federal Funds                                                             764,973            (23,689)          741,284

Restricted Receipts                                                     427,760              (7,299)          420,461

Other Funds                                                             1,359,348           133,979        1,493,327

Total - Human Resources                          11,391,801          (441,167)     10,950,634

Personnel Appeal Board General Revenues                             75,036                      0             75,036

Facilities Management

General Revenues                                                  32,593,888       (2,024,644)     30,569,244

Federal Funds                                                          1,049,144          (135,890)          913,254

Restricted Receipts                                                     598,202            (63,797)          534,405

Other Funds                                                             3,325,363           240,021        3,565,384

Total – Facilities Management                   37,566,597       (1,984,310)     35,582,287

Capital Projects and Property Management

General Revenues                                                    3,040,310       (1,863,021)       1,177,289

Federal Funds – Stimulus                                                       0           100,000           100,000

Restricted Receipts                                                  1,313,144       (1,313,144)                     0

Total – Capital Projects and Property

Management                                                      4,353,454       (3,076,165)       1,277,289

Information Technology

General Revenues                                                  20,215,153           233,819      20,448,972

Federal Funds                                                          5,760,616        1,149,605        6,910,221

Restricted Receipts                                                  3,789,803               3,113        3,792,916

Other Funds                                                             2,092,811             22,973        2,115,784

Total – Information Technology                31,858,383        1,409,510      33,267,893

Library and Information Services

General Revenues                                                       933,989             22,310           956,299

Federal Funds                                                          1,319,663            (21,549)       1,298,114

Restricted Receipts                                                         1,895                 (201)              1,694

Total - Library and Information Services     2,255,547                  560        2,256,107

Planning

General Revenues                                                    3,960,126          (102,581)       3,857,545

Federal Funds                                                          8,684,453        3,364,524      12,048,977

Federal Funds – Stimulus                                                       0             62,788             62,788

Other Funds                                                             4,836,966           479,065        5,316,031

Total - Planning                                        17,481,545        3,803,796      21,285,341

General

General Revenues

Economic Development Corporation           4,684,403            (78,350)       4,606,053

EDC – Airport Corporation Impact Aid       1,025,000            (16,914)       1,008,086

Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%) of the first $1,000,000 shall be distributed based on the share of landings during the calendar year 2012 at North Central Airport, and Westerly Airport, respectively. The Economic Development Corporation shall make an impact payment to the towns of cities in which the airport is located based on this calculation.

Each community upon which any parts of the above airports are located shall receive at least $25,000.

EDC – EPScore (Research Alliance)            1,150,000                      0        1,150,000

Miscellaneous Grants                                      146,049                      0           146,049

Slater Centers of Excellence                        1,500,000                      0        1,500,000

Torts – Courts                                                 400,000           114,293           514,293

Current Care - Health Information Exchange  450,000                      0           450,000

I-195 Commission                                       3,900,000                      0        3,900,000

RI Film and Television Office                        305,409                 (928)          304,481

Office of Digital Excellence                           300,000          (300,000)                     0

State Employees/Teachers Retiree Health

Subsidy                                                        2,321,057                      0        2,321,057

Resource Sharing and State Library Aid      8,773,398                      0        8,773,398

Library Construction Aid                             2,471,714                      0        2,471,714

Federal Funds                                                          4,345,555                      0        4,345,555

Restricted Receipts                                                     421,500                      0           421,500

Rhode Island Capital Plan Funds

Statehouse Renovations                               4,000,000       (2,959,082)       1,040,918

DoIT Enterprise Operations Center                            0           259,287           259,287

Cranston Street Armory                                  800,000          (650,000)          150,000

Cannon Building                                             220,000           167,740           387,740

Zambarano Building Rehabilitation             1,200,000       (1,030,000)          170,000

Pastore Medical Center Rehab DOA            1,600,000           700,000        2,300,000

Old State House                                              500,000          (425,000)            75,000

State Office Building                                   1,250,000          (465,583)          784,417

Old Colony House                                          300,000          (115,089)          184,911

William Powers Building                                700,000          (237,333)          462,667

McCoy Stadium Repairs                                            0           325,000           325,000

Fire Code Compliance State Buildings            350,000                      0           350,000

Pastore Center Fire Code Compliance          1,100,000           550,000        1,650,000

Pastore Center Utility Systems Upgrade       2,000,000          (700,000)       1,300,000

Pastore Power Plant Rehabilitation                             0           199,781           199,781

Replacement of Fueling Tanks                       300,000                      0           300,000

Environmental Compliance                            200,000             31,448           231,448

Big River Management Area                           120,000           189,516           309,516

Pastore Center Building Demolition             3,000,000       (1,069,695)       1,930,305

Washington County Government Center        500,000            (89,685)          410,315

Veterans Memorial Auditorium                   4,000,000           601,211        4,601,211

Chapin Health Laboratory                           1,500,000       (1,500,000)                     0

Pastore Center Parking                                 1,000,000           400,000        1,400,000

Pastore Center Water Tanks                            500,000          (468,633)            31,367

Board of Elections New Location                1,000,000       (1,000,000)                     0

Renovate Building #81                                   150,000          (150,000)                     0

Pastore Cottages Rehabilitation                       100,000            (30,000)            70,000

Health Lab Feasibility Study                           175,000                      0           175,000

Ladd Center Building Demolition                   300,000        1,100,000        1,400,000

I-195 Commission                                          250,000                      0           250,000

Zambarano Wood Chip Boiler                                   0           750,000           750,000

Ladd Rubble Pile Rehabilitation                                0           200,000           200,000

RI Convention Center Authority                                0           500,000           500,000

Total – General                             59,309,085       (5,198,016)     54,111,069

Debt Service Payments

General Revenues                                                 159,759,567       (3,885,802)   155,873,765

Federal Funds                                                          2,759,328                      0        2,759,328

Restricted Receipts                                                  4,454,480       (2,325,000)       2,129,480

Other Funds

RIPTA Debt Service                                    1,680,844       (1,680,844)                     0

Transportation Debt Service                      34,317,954           105,435      34,423,389

Investment Receipts – Bond Funds                 100,000                      0           100,000

COPS - DLT Building – TDI                           278,848                      0           278,848

Total - Debt Service Payments            203,351,021       (7,786,211)   195,564,810

Energy Resources

Federal Funds                                                             348,685           279,367           628,052

Federal Funds – Stimulus                                            224,543        4,298,444        4,522,987

Restricted Receipts                                                  4,815,703             66,662        4,882,365

Total – Energy Resources                            5,388,931        4,644,473      10,033,404

Rhode Island Health Benefits Exchange Federal Funds                     0      28,829,827      28,829,827

Construction Permitting, Approvals and Licensing

General Revenues                                                                  0        1,376,072        1,376,072

Restricted Receipts                                                                0        1,349,550        1,349,550

Total – Construction Permitting, Approvals and

Licensing                                                                   0        2,725,622        2,725,622

Supplemental Retirement Savings

General Revenues                                                       629,747                      0           629,747

Federal Funds                                                             251,899                      0           251,899

Restricted Receipts                                                       52,479                      0             52,479

Other                                                                          115,454                      0           115,454

Total – Supplemental Retirement Savings    1,049,579                      0        1,049,579

Grand Total – Administration                  389,897,691      23,083,789    412,981,480

Business Regulation

Central Management General Revenues                             1,145,060            (40,259)       1,104,801

Banking Regulation

General Revenues                                                    1,637,766            (80,237)       1,557,529

Restricted Receipts                                                     125,000                      0           125,000

Total - Banking Regulation                          1,762,766            (80,237)       1,682,529

Securities Regulation

General Revenues                                                    1,068,375          (203,151)          865,224

Restricted Receipts                                                       15,000                      0             15,000

Total - Securities Regulation                        1,083,375          (203,151)          880,224

Insurance Regulation

General Revenues                                                    3,916,525            (63,285)       3,853,240

Restricted Receipts                                                  1,284,868             36,518        1,321,386

Total - Insurance Regulation                        5,201,393            (26,767)       5,174,626

Office of the Health Commissioner

General Revenues                                                       542,929            (15,347)          527,582

Federal Funds                                                          2,719,081        4,283,134        7,002,215

Restricted Receipts                                                       10,500                      0             10,500

Total – Office of the Health Commissioner 3,272,510        4,267,787        7,540,297

Board of Accountancy General Revenues                                 82,483              (3,019)            79,464

Commercial Licensing, Racing & Athletics

General Revenues                                                       719,111            (29,696)          689,415

Restricted Receipts                                                     460,812             27,375           488,187

Total - Commercial Licensing, Racing &

Athletics                                                       1,179,923              (2,321)       1,177,602

Board for Design Professionals General Revenues                249,799              (1,542)          248,257

Grand Total - Business Regulation             13,977,309        3,910,491      17,887,800

Labor and Training

Central Management

General Revenues                                                       107,310               8,040           115,350

Restricted Receipts                                                     585,938              (4,065)          581,873

Rhode Island Capital Plan Funds

Center General Asset Protection                     310,500            (85,110)          225,390

Center General Roof                                       753,650               7,147           760,797

Total - Central Management            1,757,398            (73,988)       1,683,410

Workforce Development Services

Federal Funds                                                        24,182,172        3,712,125      27,894,297

Restricted Receipts                                                  6,954,831        4,409,369      11,364,200

Total - Workforce Development Services  31,137,003        8,121,494      39,258,497

Workforce Regulation and Safety General Revenues           2,994,552            (31,960)       2,962,592

Income Support

General Revenues                                                    4,370,518          (102,393)       4,268,125

Federal Funds                                                        15,293,809      10,349,279      25,643,088

Federal Funds – Stimulus - UI                               72,268,000      40,470,677    112,738,677

Restricted Receipts                                                  1,403,715           773,832        2,177,547

Job Development Fund                              18,572,493      19,027,507      37,600,000

Other Funds

Temporary Disability Insurance Fund      181,947,650     (10,260,080)   171,687,570

Employment Security Fund                      322,696,493       (6,609,060)   316,087,433

Total - Income Support                      616,552,678      53,649,762    670,202,440

Injured Workers Services Restricted Receipts                      8,775,718           345,280                     9,120,998

Labor Relations Board General Revenues                                 386,790                                  (3,956)                      382,834

Grand Total - Labor and Training            661,604,139      62,006,632    723,610,771

Department of Revenue

Director of Revenue General Revenues                                               783,388                     107,729                       891,117

Office of Revenue Analysis General Revenues                           538,285                     (60,820)          477,465

Lottery Division

Lottery Funds                                                      232,744,968        5,045,629    237,790,597

RICAP – Lottery Building Renovations                                 0           400,000           400,000

Total - Lottery Division                            232,744,968        5,445,629    238,190,597

Municipal Finance

            General Revenues                                                    2,264,780                     (292,005)       1,972,775

            Central Falls Receivership                                          300,000                       110,502                      410,502

                        Total - Municipal Finance                            2,564,780                      (181,503)       2,383,277

Taxation

General Revenues                                                  17,904,225          (193,827)     17,710,398

Federal Funds                                                          1,326,098            (64,189)       1,261,909

Restricted Receipts                                                     872,995            (23,406)          849,589

Other Funds

Motor Fuel Tax Evasion                                    43,382                 (150)            43,232

Temporary Disability Insurance                      975,730            (59,152)          916,578

Total – Taxation                            21,122,430          (340,724)     20,781,706

Registry of Motor Vehicles

General Revenues                                                  18,475,667          (549,903)     17,925,764

Federal Funds                                                          1,124,611           510,810        1,635,421

Restricted Receipts                                                       14,763                      0             14,763

Rhode Island Capital Plan Funds

Registry of Motor Vehicles – Forand                         0           115,114           115,114

Safety & Emissions Lift Replacement            100,000             50,000           150,000

Total – Registry of Motor Vehicles       19,715,041           126,021      19,841,062

State Aid

General Revenues       

Distressed Communities Relief Fund         10,384,458                      0      10,384,458

Payment in Lieu of Tax Exempt Properties 33,080,409        2,000,000      35,080,409

Motor Vehicle Excise Tax Payments          10,000,000                      0      10,000,000

Property Revaluation Program                     1,611,032                      0        1,611,032

Municipal Pension Revaluation                                  0             18,516             18,516

Restricted Receipts     

Car Rental Tax/Surcharge – Warwick Share    957,497                      0           957,497

Total – State Aid                           56,033,396        2,018,516      58,051,912

Grand Total – Revenue           333,502,288        7,114,848    340,617,136

Legislature

General Revenues                                                  37,217,044        3,171,189      40,388,233

Restricted Receipts                                                  1,627,174          (101,591)       1,525,583

Grand Total – Legislature                           38,844,218        3,069,598      41,913,816

Lieutenant Governor

General Revenues                                                       962,955            (17,644)          945,311

Federal Funds                                                             129,737           663,368           793,105

Grand Total - Lieutenant Governor              1,092,692           645,724        1,738,416

Secretary of State

Administration General Revenues                                            1,907,105                     89,272        1,996,377

Corporations General Revenues                                                          2,068,731                      18,590        2,087,321

State Archives

General Revenues                                                         79,385             11,451             90,836

Restricted Receipts                                                     505,069            (23,472)          481,597

Total - State Archives                                      584,454            (12,021)          572,433

Elections & Civics

General Revenues                                                    1,900,552          (211,447)       1,689,105

Federal Funds                                                                        0               2,566               2,566

Total – Elections and Civics                         1,900,552          (208,881)       1,691,671

State Library General Revenues                                                          598,381              2,820            601,201

Office of Public Information General Revenues                                   358,884                           9,601                       368,485

Grand Total – Secretary of State                  7,418,107          (100,619)       7,317,488

General Treasurer

Treasury

General Revenues                                                    2,096,374           330,114        2,426,488

Federal Funds                                                             316,169            (35,419)          280,750

Restricted Receipts                                                                0             30,000             30,000

Other Funds - Temporary Disability Insurance Fund  251,512            (34,924)          216,588

Total – Treasury                                      2,664,055           289,771        2,953,826

State Retirement System

General Revenues                                                       311,760            (82,303)          229,457

Restricted Receipts                                                                 

Admin Expenses - State Retirement System 10,584,330      (1,953,533)       8,630,797

Retirement - Treasury Investment Operations 1,127,961          (54,059)       1,073,902

Total - State Retirement System             12,024,051       (2,089,895)       9,934,156

Unclaimed Property Restricted Receipts                                        20,733,930        9,964,804      30,698,734

Crime Victim Compensation Program

General Revenues                                                       133,981             36,575           170,556

Federal Funds                                                             843,543            (24,796)          818,747

Restricted Receipts                                                  1,172,000            (29,513)       1,142,487

Total - Crime Victim Compensation Program 2,149,524          (17,734)       2,131,790

Grand Total – General Treasurer                37,571,560        8,146,946      45,718,506

Board of Elections General Revenues                                             1,952,116                      (65,293)       1,886,823

Rhode Island Ethics Commission General Revenues          1,557,881                       (27,028)       1,530,853

Office of Governor

General Revenues                                                    4,168,290            (93,280)       4,075,010

Contingency Fund                                           250,000                      0           250,000

Federal Funds                                                        22,163,245     (22,163,245)                     0

Grand Total – Office of Governor             26,581,535     (22,256,525)       4,325,010

Commission for Human Rights

General Revenues                                                    1,137,768              (4,639)       1,133,129

Federal Funds                                                             325,992            (19,304)          306,688

Grand Total - Commission for Human Rights 1,463,760          (23,943)       1,439,817

Public Utilities Commission

Federal Funds                                                             110,213                      8           110,221

Federal Funds – Stimulus                                            211,582             26,618           238,200

Restricted Receipts                                                  7,924,913           216,606        8,141,519

Grand Total - Public Utilities Commission   8,246,708           243,232        8,489,940

Office of Health and Human Services

Central Management

General Revenues                                                  25,434,668       (2,227,162)     23,207,506

Federal Funds                                                        74,974,313        5,622,958      80,597,271

Federal Funds – Stimulus                                            312,000                      0           312,000

Restricted Receipts                                                     957,586           369,244        1,326,830

Total – Central Management              101,678,567        3,765,040    105,443,607

Medical Assistance

General Revenues

Managed Care                                          283,387,147     (22,669,265)   260,717,882

Hospitals                                                  107,337,545       (3,233,736)   104,103,809

Nursing Facilities                                     173,959,640       (3,897,040)   170,062,600

Home and Community Based Services      35,953,320        3,250,840      39,204,160

Other Services                                            43,765,745       (3,281,790)     40,483,955

Pharmacy                                                   52,354,074       (1,878,604)     50,475,470

Rhody Health                                           102,873,564     (12,197,660)     90,675,904

Federal Funds

Managed Care                                          312,336,604     (16,854,486)   295,482,118

Hospitals                                                  115,542,929       (3,431,013)   112,111,916

Nursing Facilities                                     184,540,360       (4,102,960)   180,437,400

Home and Community Based Services      38,146,680        3,449,160      41,595,840

Other Services                                            62,494,368        2,106,677      64,601,045

Pharmacy                                                     1,290,105       (1,967,828)         (677,723)

Rhody Health                                           106,846,436     (12,038,624)     94,807,812

Special Education                                      18,350,000           650,000      19,000,000

Restricted Receipts                                                11,515,000           400,000      11,915,000

Total Medical Assistance         1,650,693,517     (75,696,329) 1,574,997,188

Grand Total – Health and

Human Services                       1,752,372,084     (71,931,289)1,680,440,795

Children, Youth, and Families

Central Management

General Revenues                                                    4,674,549           346,845        5,021,394

Federal Funds                                                          2,351,311          (176,341)       2,174,970

Restricted Receipts                                                     204,094          (173,488)            30,606

Total - Central Management                         7,229,954              (2,984)       7,226,970

Children's Behavioral Health Services

General Revenues                                                  10,077,912       (5,210,648)       4,867,264

Federal Funds                                                          7,524,753       (1,534,861)       5,989,892

Rhode Island Capital Plan Funds        

NAFI Center                                                   500,000           178,790           678,790

Mt. Hope Building Facade                              275,000          (275,000)                     0

Mt. Hope Fire Towers                                     275,000          (275,000)                     0

Mt. Hope Feasibility Study                                50,000                      0             50,000

Various Repairs and Improvements                195,000           714,000           909,000

Total - Children's Behavioral Health

Services                                                     18,897,665       (6,402,719)     12,494,946

Juvenile Correctional Services

General Revenues                                                  30,203,577       (3,393,371)     26,810,206

Federal Funds                                                          1,250,209          (855,286)          394,923

Federal Funds – Stimulus                                              21,914           240,543           262,457

Rhode Island Capital Plan Funds

Vocational Building                                                   0           265,900           265,900

Thomas C. Slater Training School                               

Maintenance Building                                     535,000          (535,000)                     0

Generators - Thomas C. Slater Training School 441,000                    0           441,000

Total - Juvenile Correctional Services     32,451,700       (4,277,214)     28,174,486

Child Welfare

General Revenues                                                  96,800,187        7,055,260    103,855,447

18 to 21 Year Olds                                     10,630,227           486,548      11,116,775

Federal Funds                                                        44,793,059           813,735      45,606,794

18 to 21 Year Olds                                       2,497,984          (258,014)       2,239,970

Federal Funds – Stimulus                                                1,061           335,830           336,891

Restricted Receipts                                                  2,621,159          (113,101)       2,508,058

Rhode Island Capital Plan Funds

Fire Code Upgrades                                        500,000          (149,789)          350,211

Total - Child Welfare                            157,843,677        8,170,469    166,014,146

Any expenditures in excess of the State's obligation for the System of Care contracts in place on June 1, 2013 must be approved by the Secretary of the Executive Office of Health and Human Services as to amount and purpose.

Higher Education Incentive Grants General Revenues                        200,000                                0            200,000

               Grand Total - Children, Youth,

and Families                                216,622,996       (2,512,448)   214,110,548

Health

Central Management

General Revenues                                                    1,173,946          (280,223)          893,723

Federal Funds                                                          8,355,078           587,454        8,942,532

Restricted Receipts                                                  3,585,881           217,423        3,803,304

Total - Central Management                       13,114,905           524,654      13,639,559

State Medical Examiner

General Revenues                                                    2,259,943             33,902        2,293,845

Federal Funds                                                             204,371            (32,367)          172,004

Total - State Medical Examiner                    2,464,314               1,535        2,465,849

Environmental and Health Services Regulation

General Revenues                                                    9,145,421             21,560        9,166,981

Federal Funds                                                          5,645,960           421,708        6,067,668

Restricted Receipts                                                  4,422,838          (347,461)       4,075,377

            Total - Environmental and Health Services

Regulation                                     19,214,219             95,807      19,310,026

Health Laboratories

General Revenues                                                    6,300,363            (46,597)       6,253,766

Federal Funds                                                          1,614,851             79,199        1,694,050

Federal Funds - Stimulus                                            190,052            (82,517)          107,535

Total - Health Laboratories                          8,105,266            (49,915)       8,055,351

Public Health Information

General Revenues                                                    1,741,431           156,446        1,897,877

Federal Funds                                                             735,572        1,796,293        2,531,865

Federal Funds - Stimulus                                            373,442           145,829           519,271

Total – Public Health Information                2,850,445        2,098,568        4,949,013

Community and Family Health and Equity

General Revenues                                                    2,418,974          (149,319)       2,269,655

Federal Funds                                                        43,485,586        2,736,048      46,221,634

Federal Funds - Stimulus                                         1,098,622           337,161        1,435,783

Restricted Receipts                                                21,503,877        2,130,061      23,633,938

Other Funds                                                                            

Safe and Active Commuting                           172,000            (45,689)          126,311

            Total – Community and Family Health

and Equity                                                 68,679,059        5,008,262      73,687,321

Infectious Disease and Epidemiology

General Revenues                                                    1,781,758          (110,883)       1,670,875

Federal Funds                                                          3,275,445          (310,759)       2,964,686

Federal Funds – Stimulus                                              36,672            (36,672)                     0

Total – Infectious Disease and Epidemiology 5,093,875        (458,314)       4,635,561

Grand Total – Health                               119,522,083        7,220,597    126,742,680

Human Services

Central Management

General Revenues                                                    5,052,482           134,852        5,187,334

Federal Funds                                                          5,317,610             64,723        5,382,333

Restricted Receipts                                                     519,347            (76,391)          442,956

Total - Central Management                       10,889,439           123,184      11,012,623

Child Support Enforcement

General Revenues                                                    2,305,759           122,720        2,428,479

Federal Funds                                                          6,033,709             70,571        6,104,280

Total – Child Support Enforcement             8,339,468           193,291        8,532,759

Individual and Family Support

General Revenues                                                  20,616,357          (414,784)     20,201,573

Federal Funds                                                      106,054,903      14,863,707    120,918,610

Federal Funds - Stimulus                                         7,066,062       (1,245,880)       5,820,182

Restricted Receipts                                                  6,680,000           642,171        7,322,171

Rhode Island Capital Plan Funds

Blind Vending Facilities                                  165,000            (15,000)          150,000

Other Funds

Intermodal Surface Transportation Fund     4,224,184            (69,159)       4,155,025

Food Stamp Bonus Funding                                       0           259,000           259,000

Total - Individual and Family Support     144,806,506      14,020,055    158,826,561

Veterans' Affairs

General Revenues                                                  19,568,977             76,941      19,645,918

Federal Funds                                                          8,240,954          (385,201)       7,855,753

Restricted Receipts                                                  1,077,762        2,742,055        3,819,817

Total - Veterans' Affairs                            28,887,693        2,433,795      31,321,488

Health Care Quality, Financing and Purchasing

General Revenues                                                    8,314,370          (937,040)       7,377,330

Federal Funds                                                          9,523,746          (775,809)       8,747,937

Total - Health Care Quality, Financing and

Purchasing                                                 17,838,116       (1,712,849)     16,125,267

Supplemental Security Income Program General

            Revenues                                                                18,240,600                        (38,920)       18,201,680

Rhode Island Works

General Revenues Child Care                                  9,668,635                      0        9,668,635

Federal Funds                                                        80,198,485       (1,979,876)     78,218,609

Total – Rhode Island Works                      89,867,120       (1,979,876)     87,887,244

State Funded Programs

General Revenues

General Public Assistance                            2,572,658          (527,558)       2,045,100

Of this appropriation, $210,000 shall be used for hardship contingency payments.   

Federal Funds                                                      299,134,564          (290,862)   298,843,702

Total - State Funded Programs                 301,707,222          (818,420)   300,888,802

Elderly Affairs

General Revenues                                                  10,682,842           227,941      10,910,783

Care and Safety of the Elderly                            1,287                      0               1,287

Federal Funds                                                        18,161,725            (51,250)     18,110,475

Restricted Receipts                                                     833,994          (361,385)          472,609

Total – Elderly Affairs                               29,679,848          (184,694)     29,495,154

Grand Total - Human Services                 650,256,012      12,035,566    662,291,578

Behavioral Healthcare, Developmental Disabilities, and Hospitals

Central Management

General Revenues                                                       797,214              (8,772)          788,442

Federal Funds                                                             361,940             35,219           397,159

Total - Central Management                         1,159,154             26,447        1,185,601

Hospital and Community System Support

General Revenues                                                    2,527,114          (235,307)       2,291,807

Restricted Receipts                                                     505,624            (54,972)          450,652

Rhode Island Capital Plan Funds        

Medical Center Rehabilitation                      1,000,000          (700,000)          300,000

Community Facilities Fire Code                      750,000          (250,000)          500,000

            Total - Hospital and Community System

Support                                           4,782,738       (1,240,279)       3,542,459

Services for the Developmentally Disabled

General Revenues                                                105,259,461           599,124    105,858,585

Federal Funds                                                      114,862,371          (842,047)   114,020,324

Restricted Receipts                                                  1,776,017                      0        1,776,017

Rhode Island Capital Plan Funds

DD Private Waiver                                          761,351          (552,334)          209,017

Regional Center Repair/Rehabilitation            750,000          (250,000)          500,000

MR Community Facilities/Access to

Independence                                              1,000,000          (500,000)          500,000

            Total - Services for the Developmentally

Disabled                                      224,409,200       (1,545,257)   222,863,943

Behavioral Healthcare Services

General Revenues                                                  34,859,214       (2,304,217)     32,554,997

Federal Funds                                                        74,430,048     (13,680,964)     60,749,084

Federal Funds – Stimulus                                              35,000           205,000           240,000

Restricted Receipts                                                     125,000                      0           125,000

Rhode Island Capital Plan Funds

MH Community Facilities Repair                    300,000           235,143           535,143

MH Housing Development-Thresholds           800,000                      0           800,000

MH Residence Furniture                                   32,000            (29,000)              3,000

Substance Abuse Asset Production                 300,000          (200,000)          100,000

Total – Behavioral Healthcare Services    110,881,262     (15,774,038)     95,107,224

Hospital and Community Rehabilitative Services

General Revenues                                                  49,694,992        2,045,877      51,740,869

Federal Funds                                                        44,436,605        3,982,891      48,419,496

Restricted Receipts                                                  4,782,193             43,504        4,825,697

Rhode Island Capital Plan Funds

Zambarano Buildings and Utilities                  225,000          (175,000)            50,000

Hospital Consolidation                                2,000,000       (1,695,000)          305,000

BHDDH Administrative Buildings               2,000,000       (1,900,000)          100,000

MR Community Facilities                            1,300,000          (400,000)          900,000

Total - Hospital and Community                                 

Rehabilitative Services                             104,438,790        1,902,272    106,341,062

Grand Total – Behavioral Healthcare,

Developmental Disabilities, and Hospitals 445,671,144    (16,630,855)   429,040,289

Office of the Child Advocate

General Revenues                                                       611,469            (20,805)          590,664

Federal Funds                                                               46,103                   (35)            46,068

Grand Total – Office of the Child Advocate   657,572            (20,840)          636,732

Commission on the Deaf and Hard of Hearing General

Revenues                                                                    390,251              (8,550)          381,701

Governor's Commission on Disabilities

General Revenues                                                       371,096            (46,675)          324,421

Federal Funds                                                             120,649             94,719           215,368

Restricted Receipts                                                         9,694                 (480)              9,214

Rhode Island Capital Plan Funds

Facility Renovation – Handicapped Access    250,000          (250,000)                     0

Facility Renovation – Access to Disability

Service Providers                                                       0             50,000             50,000

Grand Total - Governor's Commission on

Disabilities                                                      751,439          (152,436)          599,003

Office of the Mental Health Advocate General Revenues    447,119          (123,812)          323,307

Elementary and Secondary Education

Administration of the Comprehensive Education Strategy

General Revenues                                                  18,967,968          (204,120)     18,763,848

Federal Funds                                                      190,397,563        5,046,403    195,443,966

Federal Funds – Stimulus                                       20,796,439          (278,134)     20,518,305

Education Jobs Fund                                               2,390,623          (565,947)       1,824,676

RTTT LEA Share                                                   15,534,615        2,530,636      18,065,251

Restricted Receipts                                                  1,305,190            (98,211)       1,206,979

HRIC Adult Education Grants                                 3,500,000                      0        3,500,000

Statewide Transportation – RIPTA Grant                      47,000            (47,000)                     0

Rhode Island Capital Plan Funds

Cranston Career and Technical                       350,000        1,577,417        1,927,417

Newport Career and Technical                       256,638                      0           256,638

Warwick Career and Technical                       230,000          (194,960)            35,040

Woonsocket Career and Technical                 275,000          (218,050)            56,950

Total – Administration of the Comprehensive

Education Strategy                      254,051,036        7,548,034    261,599,070

Davies Career and Technical School

General Revenues                                                  13,381,539                      0      13,381,539

Federal Funds                                                          1,304,633             80,799        1,385,432

Federal Funds – Stimulus                                              65,636           293,924           359,560

Restricted Receipts                                                  1,785,901           695,495        2,481,396

Rhode Island Capital Plan Funds

Davies Roof Repair                                                   0           582,247           582,247

Davies HVAC                                                 250,628           463,101           713,729

Davies Asset Protection                                  425,000           899,652        1,324,652

Total - Davies Career and Technical School 17,213,337      3,015,218      20,228,555

RI School for the Deaf

General Revenues                                                    6,244,881            (81,931)       6,162,950

Federal Funds                                                             266,503             57,886           324,389

Federal Funds – Stimulus                                                4,194           180,308           184,502

Restricted Receipts                                                     482,261          (132,261)          350,000

Total - RI School for the Deaf                     6,997,839             24,002        7,021,841

Metropolitan Career and Technical School

General Revenues                                                  11,648,256                      0      11,648,256

Rhode Island Capital Plan Funds

MET School East Bay                                  3,600,000        1,973,988        5,573,988

MET Asset Protection                                                0           200,000           200,000

MET School HVAC                                        833,333                      0           833,333

            Total – Metropolitan Career and Technical

School                                                        16,081,589        2,173,988      18,255,577

Education Aid

General Revenues                                                691,078,185             66,367    691,144,552

Restricted Receipts                                                18,570,516           525,130      19,095,646

Permanent School Fund – Education Aid                   183,624           116,376           300,000

Total – Education Aid                              709,832,325           707,873    710,540,198

Central Falls School District General Revenues                39,705,879                      0      39,705,879

Housing Aid General Revenues                                         74,568,906       (2,534,528)     72,034,378

Teachers' Retirement General Revenues                            79,768,447       (3,693,151)     76,075,296

Grand Total - Elementary and Secondary                                           

Education                                              1,198,219,358        7,241,436 1,205,460,794

Public Higher Education

Board of Governors/Office of Higher Education

General Revenues                                                    5,860,952              (9,043)       5,851,909

Federal Funds                                                          4,852,615           374,034        5,226,649

Total - Board of Governors/Office of

Higher Education                                       10,713,567           364,991      11,078,558

University of Rhode Island

General Revenues                                                  58,133,747          (130,030)     58,003,717

State Crime Lab                                                          858,820              (3,161)          855,659

Debt Service                                                          19,160,529           560,474      19,721,003

University and College Funds                              603,410,734          (294,359)   603,116,375

Debt – Dining Services                                            1,140,806             22,001        1,162,807

Debt – Education and General                                 3,273,434             36,483        3,309,917

Debt – Health Services                                               149,892               3,001           152,893

Debt – Housing Loan Funds                                  11,155,852          (787,376)     10,368,476

Debt – Memorial Union                                              121,514               3,001           124,515

Debt – Ryan Center                                                 2,801,358              (4,907)       2,796,451

Debt – Alton Jones Services                                       114,650                  812           115,462

Debt - Parking Authority                                          1,017,799             23,848        1,041,647

Debt – Sponsored Research                                          99,667                      1             99,668

Debt – URI Energy Conservation                            2,283,588                      0        2,283,588

Rhode Island Capital Plan Funds

Asset Protection                                           7,200,000        2,204,000        9,404,000

New Chemistry Building                              1,000,000                      0        1,000,000

URI Biotechnology Center                                         0        1,890,899        1,890,899

Fine Arts Center Renovation                                      0           400,000           400,000

Total – University of Rhode Island          711,922,390        3,924,687    715,847,077

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2013 relating to the University of Rhode Island are hereby reappropriated to fiscal year 2014.

Rhode Island College

General Revenues                                                  38,609,975          (127,549)     38,482,426

Debt Service                                                            3,049,029           122,237        3,171,266

University and College Funds                              113,236,144       (3,783,271)   109,452,873

Debt – Education and General                                    892,644                      0           892,644

Debt – Housing                                                        2,042,304                      0        2,042,304

Debt – Student Center and Dining                              172,392                      0           172,392

Debt – Student Union                                                 232,944                      0           232,944

Debt – G.O. Debt Service                                        1,630,317                      0        1,630,317

Rhode Island Capital Plan Funds

Asset Protection                                           3,075,000           975,965        4,050,965

Infrastructure Modernization                       1,000,000                      0        1,000,000

New Art Center Advanced Planning                          0           597,157           597,157

Total – Rhode Island College                   163,940,749       (2,215,461)   161,725,288

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2013 relating to Rhode Island College are hereby reappropriated to fiscal year 2014.

Community College of Rhode Island

General Revenues                                                  44,318,962          (148,982)     44,169,980

Debt Service                                                            2,464,156            (23,886)       2,440,270

Restricted Receipts                                                     702,583                      0           702,583

University and College Funds                                94,726,694        1,461,099      96,187,793

Debt – Bookstore                                                          29,193                      0             29,193

CCRI Debt Service – Energy Conservation                 808,025                      0           808,025

Rhode Island Capital Plan Funds

Asset Protection                                           2,050,000           763,941        2,813,941

Fire Code and HVAC                                                0           211,255           211,255

Total – Community College of RI            145,099,613        2,263,427    147,363,040

Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or unencumbered balances as of June 30, 2013 relating to the Community College of Rhode Island are hereby reappropriated to fiscal year 2014.

Grand Total – Public Higher Education      1,031,676,319        4,337,644 1,036,013,963

RI State Council on the Arts

General Revenues

Operating Support                                           404,156                      0           404,156

Grants                                                          1,161,657                      0        1,161,657

Federal Funds                                                             998,794          (244,603)          754,191

Arts for Public Facilities                                             843,500           743,992        1,587,492

Grand Total - RI State Council on the Arts  3,408,107           499,389        3,907,496

RI Atomic Energy Commission

General Revenues                                                       876,213            (34,463)          841,750

Federal Funds                                                             267,616                 (572)          267,044

URI Sponsored Research                                            283,122            (52,651)          230,471

RICAP - RINSC Parking Lot Repair                             50,000                          13,171                        63,171

Grand Total - RI Atomic Energy Commission 1,476,951         (74,515)       1,402,436

RI Higher Education Assistance Authority

General Revenues

Needs Based Grants and Work Opportunities 5,014,003         142,000        5,156,003

Authority Operations and Other Grants           603,061            (65,397)          537,664

Federal Funds                                                        13,346,283           648,200      13,994,483

Other Funds

Tuition Savings Program – Needs Based Grants

and Work Opportunities                                      8,000,000           250,000        8,250,000

Tuition Savings Program - Administration              758,802          (472,973)          285,829

Grand Total – RI Higher Education

Assistance Authority                     27,722,149           501,830      28,223,979

RI Historical Preservation and Heritage Commission

General Revenues                                                    1,361,801            (96,384)       1,265,417

Federal Funds                                                             836,139          (246,860)          589,279

Restricted Receipts                                                     456,037              (1,846)          454,191

RIDOT – Project Review                                                       0             41,606             41,606

RICAP - Eisenhower House Asset Protection               75,000             25,000           100,000

Grand Total – RI Historical Preservation

and Heritage Commission               2,728,977          (278,484)       2,450,493

RI Public Telecommunications Authority

General Revenues                                                       799,077                      0           799,077

Corporation for Public Broadcasting                           701,895          (701,895)                     0

Grand Total – RI Public Telecommunications             

Authority                                                     1,500,972          (701,895)          799,077

Attorney General

Criminal

General Revenues                                                  14,269,909          (337,231)     13,932,678

Federal Funds                                                          1,458,574        1,022,323        2,480,897

Federal Funds – Stimulus                                                       0           104,000           104,000

Restricted Receipts                                                     367,509        2,062,790        2,430,299

Total – Criminal                                         16,095,992        2,851,882      18,947,874

Civil

General Revenues                                                    4,888,477            (71,032)       4,817,445

Restricted Receipts                                                  4,795,001       (3,985,691)          809,310

Total – Civil                                                 9,683,478       (4,056,723)       5,626,755

Bureau of Criminal Identification

General Revenues                                                    1,209,375             82,647        1,292,022

Federal Funds                                                               25,030             64,520             89,550

Total - Bureau of Criminal Identification     1,234,405           147,167        1,381,572

General

General Revenues                                                    2,708,563          (113,337)       2,595,226

RICAP - Building Renovations and Repairs                287,500           312,500           600,000

Total – General                                            2,996,063           199,163        3,195,226

Grand Total - Attorney General                 30,009,938          (858,511)     29,151,427

Corrections

Central Management

General Revenues                                                    9,261,703          (697,147)       8,564,556

Federal Funds                                                               22,246           860,103           882,349

Federal Funds – Stimulus                                                       0             49,598             49,598

Total – Central Management                        9,283,949           212,554        9,496,503

Parole Board

General Revenues                                                    1,331,469            (37,066)       1,294,403

Federal Funds                                                               36,850               4,368             41,218

Total – Parole Board                                    1,368,319            (32,698)       1,335,621

Custody and Security

General Revenues                                                115,077,455        3,399,664    118,477,119

Federal Funds                                                             700,125             85,362           785,487

Restricted Receipts                                                       29,758            (29,758)                     0

Total – Custody and Security                   115,807,338        3,455,268    119,262,606

Institutional Support

General Revenues                                                  15,735,909          (236,507)     15,499,402

Rhode Island Capital Plan Funds                                            

Asset Protection                                           4,000,000        1,906,014        5,906,014

Maximum – General Renovations                1,100,000          (898,906)          201,094

General Renovations - Women’s                 1,850,000       (1,150,000)          700,000

Bernadette Guay Roof                                    600,000          (565,000)            35,000

Women’s Bath Renovations                         1,235,000          (109,184)       1,125,816

ISC Exterior Envelope and HVAC               1,400,000          (820,000)          580,000

Minimum Security Kitchen Expansion            214,600                      0           214,600

Medium Infrastructure                                 1,000,000          (900,000)          100,000

Reintegration Center                                                  0           261,760           261,760

Total - Institutional Support                 27,135,509       (2,511,823)     24,623,686

Institutional Based Rehab./Population Management

General Revenues                                                    8,878,408             85,578        8,963,986

Federal Funds                                                             968,461               3,741           972,202

Federal Funds – Stimulus                                            114,818           111,958           226,776

Restricted Receipts                                                                0             29,758             29,758

Total – Institutional Based Rehab/

Population Management                               9,961,687           231,035      10,192,722

Healthcare Services General Revenues                                         18,476,246          (285,919)    18,190,327

Community Corrections

General Revenues                                                  14,532,087             20,263      14,552,350

Federal Funds                                                             153,088             17,902           170,990

Restricted Receipts                                                       31,639             11,965             43,604

Total – Community Corrections                 14,716,814             50,130      14,766,944

Grand Total – Corrections                        196,749,862        1,118,547    197,868,409

Judiciary

Supreme Court

General Revenues                                                  25,969,098          (522,121)     25,446,977

Defense of Indigents                                               3,562,240                      0        3,562,240

Federal Funds                                                             220,021             49,644           269,665

Restricted Receipts                                                  1,417,495        1,538,581        2,956,076

Rhode Island Capital Plan Funds

Judicial HVAC                                               550,000        1,265,959        1,815,959

Judicial Complexes Asset Protection              625,000           953,598        1,578,598

Licht Judicial Complex Restoration                500,000                      0           500,000

Murray Judicial Complex Cell Block                         0           480,000           480,000

Total - Supreme Court                         32,843,854        3,765,661      36,609,515

Judicial Tenure and Discipline General Revenues                  113,609                             (282)           113,327

Superior Court

General Revenues                                                  21,932,328          (445,008)     21,487,320

Federal Funds                                                             175,025            (31,763)          143,262

Restricted Receipts                                                     508,174          (201,451)          306,723

Total - Superior Court                                22,615,527          (678,222)     21,937,305

Family Court

General Revenues                                                  18,044,955            (14,251)     18,030,704

Federal Funds                                                          2,156,933           133,646        2,290,579

Restricted Receipts                                                     704,529          (704,529)                     0

Total - Family Court                                   20,906,417          (585,134)     20,321,283

District Court

General Revenues                                                  11,435,878          (138,593)     11,297,285

Federal Funds                                                             130,128            (73,431)            56,697

Restricted Receipts                                                     285,916               3,193           289,109

Total - District Court                                  11,851,922          (208,831)     11,643,091

Traffic Tribunal General Revenues                                      8,191,888          (258,305)       7,933,583

Workers' Compensation Court Restricted Receipts              7,725,081            (31,752)       7,693,329

Grand Total – Judiciary                                       104,248,298        2,003,135    106,251,433

Military Staff

National Guard

General Revenues                                                    1,516,835             96,130        1,612,965

Federal Funds                                                        12,107,308        2,421,395      14,528,703

Restricted Receipts                                                     300,000           220,000           520,000

Rhode Island Capital Plan Funds

Armory of Mounted Command

Roof Replacement                                       2,400,000          (244,740)       2,155,260

State Armories Fire Code Compliance              20,250           115,738           135,988

Federal Armories Fire Code Compliance          20,250                      0             20,250

Asset Protection                                              650,000          (395,637)          254,363

Logistics/Maintenance Facilities Fire

Code Comp.                                                     12,500              (9,159)              3,341

Command Readiness Center Addition            850,000           203,891        1,053,891

Burrillville Regional Training Institute            125,000                      0           125,000

Camp Fogarty Amory Roof                            375,000                      0           375,000

Emergency Management Agency                    125,000                      0           125,000

Hurricane Sandy Cleanup                                          0        1,500,000        1,500,000

Total - National Guard                               18,502,143        3,907,618      22,409,761

Emergency Management

General Revenues                                                    2,031,940               3,795        2,035,735

Federal Funds                                                        21,734,766      19,615,490      41,350,256

Restricted Receipts                                                     181,278             35,612           216,890

Total - Emergency Management                 23,947,984      19,654,897      43,602,881

Grand Total - Military Staff                       42,450,127      23,562,515      66,012,642

Public Safety

Central Management

General Revenues                                                    1,172,630               1,354        1,173,984

Federal Funds                                                          4,073,486           520,191        4,593,677

Federal Funds – Stimulus                                            250,174               5,884           256,058

Restricted Receipts                                                            850                      0                  850

Total – Central Management                        5,497,140           527,429        6,024,569

E-911 Emergency Telephone System General Revenues      5,262,243            (49,885)       5,212,358

State Fire Marshal

General Revenues                                                    2,684,019             15,237        2,699,256

Federal Funds                                                             102,717           766,971           869,688

Restricted Receipts                                                     286,698            (12,692)          274,006

Rhode Island Capital Plan Funds

Fire Academy                                              1,500,000       (1,500,000)                     0

Quonset Development Corp                             53,458                  162             53,620

Total - State Fire Marshal                             4,626,892          (730,322)       3,896,570

Security Services General Revenues                                  21,485,773                      (267,856)    21,217,917

Municipal Police Training Academy

General Revenues                                                       356,811            (93,375)          263,436

Federal Funds                                                             214,167             70,000           284,167

Federal Funds – Stimulus                                                       0             30,000             30,000

Restricted Receipts                                                                0             38,000             38,000

Total - Municipal Po lice Training Academy    570,978             44,625           615,603

State Police

General Revenues                                                  63,828,563       (3,154,720)     60,673,843

Federal Funds                                                          1,983,721        2,408,600        4,392,321

Federal Funds – Stimulus                                            315,886                      0           315,886

Restricted Receipts                                                12,400,000             40,000      12,440,000

Rhode Island Capital Plan Funds

Barracks and Training                                  1,785,000       (1,785,000)                     0

State Police New Headquarters                                  0           116,362           116,362

Headquarters Repairs/Rehabilitation               100,000            (28,500)            71,500

State Microwave Upgrade                               500,000           520,600        1,020,600

Parking Area Improvements                                      0             13,000             13,000

HQ Expansion (NG Facilities)                        500,000          (450,000)            50,000

Traffic Enforcement - Municipal Training                  130,150                      0           130,150

Lottery Commission Assistance                                  217,861           427,980           645,841

Airport Corporation                                                    217,861             10,504           228,365

Road Construction Reimbursement                         3,078,000                      0        3,078,000

Total - State Police                                     85,057,042       (1,881,174)     83,175,868

Grand Total – Public Safety                     122,500,068       (2,357,183)   120,142,885

Office of Public Defender

General Revenues                                                  10,791,226          (333,812)     10,457,414

Federal Funds                                                             421,898          (129,902)          291,996

Grand Total - Office of Public Defender   11,213,124          (463,714)     10,749,410

Environmental Management

Office of the Director

General Revenues                                                    4,678,852              (9,437)       4,669,415

Permit Streamlining                                           88,414            (55,000)            33,414

Federal Funds                                                             493,000             62,000           555,000

Federal Funds - Stimulus                                                       0           310,000           310,000

Restricted Receipts                                                  2,942,066           248,222        3,190,288

Total – Office of the Director                      8,202,332           555,785        8,758,117

Natural Resources

General Revenues                                                  18,222,547            (52,754)     18,169,793

Federal Funds                                                        22,593,023             68,340      22,661,363

Restricted Receipts                                                  3,591,941           271,090        3,863,031

Other Funds

DOT Recreational Projects                                26,417        1,230,371        1,256,788

Blackstone Bikepath Design                        1,069,133        1,207,976        2,277,109

Transportation MOU                                         78,579                      0             78,579

Rhode Island Capital Plan Funds

Dam Repair                                                 1,000,000                  627        1,000,627

Fort Adams Rehabilitation                              500,000               2,735           502,735

Fort Adams America’s Cup                         3,108,704       (2,145,389)          963,315

Recreational Facilities Improvements          1,590,000          (502,892)       1,087,108

Galilee Piers Upgrade                                  1,990,000       (1,456,307)          533,693

Newport Piers                                                   75,000                      0             75,000

World War II Facility                                   2,200,000       (2,200,000)                     0

Blackstone Valley Bike Path                           500,000          (226,575)          273,425

Natural Resources Office/Visitor’s Center                 0           125,000           125,000

Total - Natural Resources              56,545,344       (3,677,778)     52,867,566

Environmental Protection

General Revenues                                                  11,556,487          (167,752)     11,388,735

Federal Funds                                                        11,911,528        1,438,863      13,350,391

Restricted Receipts                                                  7,775,935           531,205        8,307,140

Transportation MOU                                                     85,885             79,115           165,000

Retrofit Heavy-Duty Diesel Vehicles                       2,760,000                      0        2,760,000

Total - Environmental Protection               34,089,835        1,881,431      35,971,266

Grand Total - Environmental Management 98,837,511       (1,240,562)     97,596,949

Coastal Resources Management Council

General Revenues                                                    2,264,841            (79,580)       2,185,261

Federal Funds                                                          1,677,977           357,186        2,035,163

Federal Funds – Stimulus                                                       0           502,240           502,240

Restricted Receipts                                                     250,000                      0           250,000

Rhode Island Capital Plan Funds

Providence River Dredging                                        0           222,281           222,281

South Coast Restoration Project                      850,000          (400,000)          450,000

Secure Facility Area                                          50,000                      0             50,000

Grand Total - Coastal Resources Mgmt.

Council                                                        5,092,818           602,127        5,694,945

Transportation

Central Management

Federal Funds                                                        10,515,473        1,492,500      12,007,973

Other Funds

Gasoline Tax                                               1,353,338           147,936        1,501,274

Total - Central Management                       11,868,811        1,640,436      13,509,247

Management and Budget Other Funds / Gasoline Tax          1,937,648                     (498,579)       1,439,069

Infrastructure Engineering- GARVEE/Motor Fuel Tax Bonds

Federal Funds                                                      342,944,533     (45,504,558)   297,439,975

Of these federal funds, $1,788,326 is appropriated to the Public Rail Corporation from CMAQ federal funds for the payment of liability insurance.

Federal Funds – Stimulus                                         8,880,580       (1,358,744)       7,521,836

Restricted Receipts                                                     998,758             11,497        1,010,255

Other Funds

Gasoline Tax                                              54,201,232       (1,476,591)     52,724,641

Motor Fuel Tax Residuals                            4,076,029       (1,417,386)       2,658,643

Land Sale Revenue                                    22,354,473        1,869,214      24,223,687

Rhode Island Capital Funds                                                    

RIPTA - Land and Buildings                             70,000             68,101           138,101

Pawtucket – CF Train Station Study                           0             40,267             40,267

Highway Projects Match Plan                    20,000,000                      0      20,000,000

Total - Infrastructure Engineering –

GARVEE/Motor Fuel Tax Bonds             453,525,605     (47,768,200)   405,757,405

Infrastructure Maintenance

Other Funds

Gasoline Tax                                             39,566,987           786,877      40,353,864

Non-Land Surplus Property                              10,000             40,000             50,000

Outdoor Advertising                                       100,000             25,000           125,000

Rhode Island Capital Plan Funds

Cherry Hill/Lincoln Facility                            777,050           186,865           963,915

Maintenance Facility Improvements               400,000           366,453           766,453

East Providence Facility                                             0           346,575           346,575

Salt Storage Facilities                                   2,000,000          (639,686)       1,360,314

Maintenance Facility Fire Alarms                              0             52,438             52,438

Portsmouth Facility                                      1,435,000       (1,435,000)                     0

Maintenance - Capital Equipment Replacement         0        1,000,000        1,000,000

RIPTA - Elmwood Expansion                                    0           121,448           121,448

Total - Infrastructure Maintenance 44,289,037           850,970      45,140,007

Grand Total – Transportation      511,621,101     (45,775,373)   465,845,728

Statewide Totals          

General Revenues                                             3,295,836,490     (62,025,232)3,233,811,258

Federal Funds                                                   2,676,350,399      46,860,480 2,723,210,879

Restricted Receipts                                              232,511,115      36,805,444    269,316,559

Other Funds                                                      1,895,158,380     (19,900,521) 1,875,257,859

Statewide Grand Total                           8,099,856,384        1,740,171 8,101,596,555

SECTION 2. Each line appearing in Section 1 of this article shall constitute an appropriation.

SECTION 3. The general assembly authorizes the state controller to establish the internal service accounts shown below, and no other, to finance and account for the operations of state agencies that provide services to other agencies, institutions and other governmental units on a cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in a businesslike manner, promote efficient use of services by making agencies pay the full costs associated with providing the services, and allocate the costs of central administrative services across all fund types, so that federal and other non-general fund programs share in the costs of general government support. The controller is authorized to reimburse these accounts for the cost of work or services performed for any other department or agency subject to the following expenditure limitations:

                                                                                FY 2013        FY 2013        FY 2013

Account                                                                  Enacted         Change             Final

State Assessed Fringe Benefit Internal Service Fund          32,106,713       627,469    32,734,182

Administration Central Utilities Internal Service Fund       20,227,492          (2,880)   20,224,612

State Central Mail Internal Service Fund                              5,613,323      (434,698)     5,178,625

State Telecommunications Internal Service Fund                 2,881,461       968,553      3,850,014

State Automotive Fleet Internal Service Fund                    13,953,031      (356,707)   13,596,324

Capitol Police Internal Service Fund                                       828,732           8,658         837,390

Surplus Property Internal Service Fund                                       2,500                  0             2,500

Health Insurance Internal Service Fund                           304,145,139 (54,017,382) 250,127,757

Health Insurance – State Police Internal Service Fund         2,123,495   (2,123,495)                   0

Other Post-Employment Benefits Fund

     Retired State Employees                                                           0  47,694,106    47,694,106

     Retired Higher Education Employees                                       0    2,462,582      2,462,582

Retired Teachers                                                                       0    7,311,922      7,311,922

Retired State Police                                                                   0    2,983,594      2,983,594

Retired Legislators                                                                    0       750,031         750,031

Retired Judges                                                                          0       904,362         904,362

Central Distribution Center Internal Service Fund                7,434,689      (292,561)     7,142,128

Correctional Industries Internal Service Fund                      7,353,215       885,608      8,238,823

Secretary of State Record Center Internal Service Fund          897,072         (40,612)      856,460

SECTION 4. Departments and agencies listed below may not exceed the number of full-time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment. Provided, however, that the Governor or designee, Speaker of the House of Representatives or designee, and President of the Senate or designee may authorize an adjustment to any limitation. Prior to the authorization, the State Budget Officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the President of the Senate. A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, the chairman of the Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

No agency or department may employ contracted employees or employee services where the contracted employees would work under state employee supervisors without determination of need by the Director of Administration acting upon positive recommendations of the Budget Officer and the Personnel Administrator and 15 days after a public hearing.

Nor may any agency or department contract for services replacing work done by state employees at that time without determination of need by the Director of Administration acting upon positive recommendations of the Budget Officer and the Personnel Administrator and 30 days after a public hearing.

State employees whose funding is from non-state general revenue funds that are time limited shall receive limited term appointment with the term limited to the availability of non-state general revenue funding source.

FY 2013 FTE POSITION AUTHORIZATION

Departments and Agencies                                                      Full-Time Equivalent

Administration                                                                                                687.2 712.1

Business Regulation                                                                                         94.0 94.0

Labor and Training                                                                                         462.5 423.0

Revenue                                                                                                         458.0 489.0

Legislature                                                                                                     298.5

Office of the Lieutenant Governor                                                                     8.0

Office of the Secretary of State                                                                        57.0

Office of the General Treasurer                                                                       82.0

Board of Elections                                                                                            11.0

Rhode Island Ethics Commission                                                                     12.0

Office of the Governor                                                                                    45.0

Commission for Human Rights                                                                        14.5

Public Utilities Commission                                                                              47.0 48.0

Office of Health and Human Services                                                            168.0 169.0

Children, Youth, and Families                                                                        665.5 671.5

Health                                                                                                             497.3 498.0

Human Services                                                                                             940.7 933.1

Behavioral Health, Developmental Disabilities, and Hospitals                    1,383.2 1,424.4

Office of the Child Advocate                                                                             5.8

Commission on the Deaf and Hard of Hearing                                                   3.0

Governor's Commission on Disabilities                                                              4.0

Office of the Mental Health Advocate                                                               3.7

Elementary and Secondary Education                                                            169.4 171.4

School for the Deaf                                                                                          60.0

Davies Career and Technical School                                                              126.0   

Office of Higher Education                                                                              16.8   

            Provided that 1.0 of the total authorization would be available only for positions       that are supported by third-party funds.

University of Rhode Island                                                                         2,450.5

            Provided that 593.2 of the total authorization would be available only for      positions that are supported by third-party funds.

Rhode Island College                                                                                       919.6

            Provided that 82.0 of the total authorization would be available only for positions     that are supported by third-party funds.

Community College of Rhode Island                                                             854.1

            Provided that 100.0 of the total authorization would be available only for      positions that are supported by third-party funds.

Rhode Island State Council on the Arts                                                              6.0

RI Atomic Energy Commission                                                                          8.6

Higher Education Assistance Authority                                                            38.6 36.0

Historical Preservation and Heritage Commission                                            16.6

Public Telecommunications Authority                                                              14.0

Office of the Attorney General                                                                      233.1   

Corrections                                                                                                  1,419.0

Judicial                                                                                                          723.3

Military Staff                                                                                                  112.0

Public Safety                                                                                                  609.2

Office of the Public Defender                                                                          93.0   

Environmental Management                                                                           407.0 399.0

Coastal Resources Management Council                                                          29.0

Transportation                                                                                                772.6

Total                                                                                             15,026.3 15,076.4

SECTION 5. This article shall take effect upon passage.

 


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ARTICLE 11 AS AMENDED

RELATING TO MUNICIPAL INCENTIVE AID

SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter:

CHAPTER 13.2

MUNICIPAL INCENTIVE AID

45-13.2-1. Short title. -- This chapter shall be known as the "Municipal Incentive Aid Act."            

45-13.2-2. Legislative Findings. -- It is hereby found and declared as follows:

(a) The fiscal health of its municipalities is of paramount importance to the state of Rhode Island;

(b) Local municipalities in Rhode Island are facing ever-increasing costs for retirement related expenses;

(c) Retirement plans represent significant cost drivers for municipal budgets;

(d) Many municipalities currently have significantly under-funded retirement plans;

(e) These unfunded liabilities either jeopardize or threaten to jeopardize the fiscal stability of municipalities;

(f) Fiscal instability in a municipality adversely affects the state's financial interests; and       (g) Local municipalities should be encouraged to improve the sustainability of their retirement plans by reducing the unfunded liabilities thereunder and by funding the plans in a fiscally responsible manner.

45-13.2-3. Definitions. -- For purposes of this chapter "municipality" means any city or town of the state.

45-13.2-4. State Aid Incentive Program Appropriated. -- There are hereby appropriated funds for a state aid program entitled "Municipal Incentive Aid Program." For fiscal year 2014 the amount of five million dollars ($5,000,000) shall be appropriated, and an amount of ten million dollars ($10,000.000) will be requested for appropriation for fiscal year 2015 and for fiscal year 2016. Municipal Incentive Aid shall be administered and managed by the division of municipal finance within the department of revenue.

45-13.2-5. Purpose of the Municipal Incentive Aid Program. -- The purpose of this Municipal Incentive Aid program, shall be to encourage municipalities to improve the sustainability of their retirement plans and to reduce unfunded liabilities thereunder, by providing additional state aid to those municipalities that comply with the requirements and provisions of this chapter.

45-13.2-6. Distributions. -- (a) Municipal Incentive Aid described in this chapter shall be distributed to eligible municipalities on the basis of the most recent population estimate for each municipality as a share of the total state population reported by the U.S. Department of Commerce, Bureau of the Census. Such payments shall be made to eligible communities in March 2014, March 2015, and March 2016.

(b) For fiscal year 2014, municipalities shall be eligible to receive aid under this chapter if: (1) the municipality has no locally-administered pension; or (2) the municipality notified plan participants, beneficiaries and others pursuant to chapter 45-65, and submitted to the state's department of revenue a Funding Improvement Plan ("FIP"), pursuant to section 45-65-6, for every locally-administered pension plan in that municipality, and each FIP had been approved by the plan sponsor and the local governing body no later than June 1, 2013; or (3) there existed a locally-administered pension plan(s) in that municipality, but either: (i) no FIP was required pursuant to chapter 45-65; or (ii) a FIP is required pursuant to chapter 45-65, but, the due date for the FIP submission is after the March payment of state aid.

(c) For fiscal years 2015 and 2016, municipalities shall be eligible to receive aid under this chapter, if: (1) the municipality has no locally-administered pension; or (2) the municipality has transitioned all locally-administered pension plans into MERS by June 30, 2014; or (3) the municipality had notified plan participants, beneficiaries and others pursuant to chapter 45-65 and had submitted to the state's department of revenue a FIP, pursuant to chapter 45-65, for every locally-administered pension plan and each submitted FIP meets the guidelines of the Study Commission on Locally-Administered Pension Plans created pursuant to section 45-65-8 or otherwise applicable guidelines or regulations and each FIP has been approved by the plan sponsor and the local governing body; or (4) the municipality has implemented the original recommended FIP or an amended FIP pursuant to chapter 45-65 within eighteen (18) months after an actuary has certified that a locally administered plan is in critical status for a plan year; and the FIPs are approved by the plan sponsor and the local governing body; or (5) there existed a locally-administered pension plan in that municipality, but either: (i) no FIP was required pursuant to chapter 45-65 and the municipality is funding one hundred percent (100%) of its Annually Required Contribution (ARC); or (ii) FIP is required pursuant to chapter 45-65, however, the due date for the FIP submission or implementation is after the March payment of this municipal incentive aid.

(d) In any fiscal year that a municipality does not receive an appropriation under this chapter, the amount that would have been allocated to the municipality will be distributed in the month of May among the other eligible municipalities for that fiscal year, on the basis of the most recent population estimate for each municipality as a share of the total state population reported by the U.S. Department of Commerce, Bureau of the Census.

SECTION 2. This article shall take effect upon passage.

 


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ARTICLE 12 AS AMENDED

RELATING TO HOSPITAL UNCOMPENSATED CARE

SECTION 1. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled "Uncompensated Care" are hereby amended to read as follows:

40-8.3-2. Definitions. -- As used in this chapter:

(1) "Base year" means for the purpose of calculating a disproportionate share payment for any fiscal year ending after September 30, 2011 2012, the period from October 1, 2009 2010 through September 30, 2010 2011, and for any fiscal year ending after September 30, 2012 2013, the period from October 1, 2010 2011 through September 30, 20112012.

(2) "Medical assistance inpatient utilization rate for a hospital" means a fraction (expressed as a percentage) the numerator of which is the hospital's number of inpatient days during the base year attributable to patients who were eligible for medical assistance during the base year and the denominator of which is the total number of the hospital's inpatient days in the base year.

(3) "Participating hospital" means any nongovernment and nonpsychiatric hospital that: (i) was licensed as a hospital in accordance with chapter 17 of title 23 during the base year; (ii) achieved a medical assistance inpatient utilization rate of at least one percent (1%) during the base year; and (iii) continues to be licensed as a hospital in accordance with chapter 17 of title 23 during the payment year.

(4) "Uncompensated care costs" means, as to any hospital, the sum of: (i) the cost incurred by such hospital during the base year for inpatient or outpatient services attributable to charity care (free care and bad debts) for which the patient has no health insurance or other third-party coverage less payments, if any, received directly from such patients; and (ii) the cost incurred by such hospital during the base year for inpatient or out-patient services attributable to Medicaid beneficiaries less any Medicaid reimbursement received therefor; multiplied by the uncompensated care index.

(5) "Uncompensated care index" means the annual percentage increase for hospitals established pursuant to § 27-19-14 for each year after the base year, up to and including the payment year, provided, however, that the uncompensated care index for the payment year ending September 30, 2007 shall be deemed to be five and thirty-eight hundredths percent (5.38%), and that the uncompensated care index for the payment year ending September 30, 2008 shall be deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated care index for the payment year ending September 30, 2009 shall be deemed to be five and thirty-eight hundredths percent (5.38%), and that the uncompensated care index for the payment years ending September 30, 2010, September 30, 2011, September 30, 2012 and, September 30, 2013 and September 30, 2014 shall be deemed to be five and thirty hundredths percent (5.30%).

40-8.3-3. Implementation. -- (a) For the fiscal year commencing on October 1, 2010 and ending September 30, 2011, the department of human services shall submit to the Secretary of the U.S. Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid state plan for disproportionate share hospital payments (DSH Plan) to provide:

(1) That the disproportionate share hospital payments to all participating hospitals not to exceed an aggregate limit of $125.4 million, to be allocated by the department to the Pool A, Pool C and Pool D components of the DSH Plan;

(2) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital's uncompensated care costs for the base year, inflated by the uncompensated care index to the total uncompensated care costs for the base year inflated by uncompensated care index for all participating hospitals. The disproportionate share payments shall be made on or before July 18, 2011 and are expressly conditioned upon approval on or before July 11, 2011 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2011 for the disproportionate share payments.

(b)(a) For the fiscal year commencing on October 1, 2011 and ending September 30, 2012, the executive office of health and human services shall submit to the Secretary of the U.S. Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid state plan for disproportionate share hospital payments (DSH Plan) to provide:

(1) That the disproportionate share hospital payments to all participating hospitals, not to exceed an aggregate limit of $126.2 million, shall be allocated by the executive office of health and human services to the Pool A, Pool C and Pool D components of the DSH Plan; and,

(2) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital's uncompensated care costs for the base year, inflated by the uncompensated care index to the total uncompensated care costs for the base year inflated by uncompensated care index for all participating hospitals. The disproportionate share payments shall be made on or before July 16, 2012 and are expressly conditioned upon approval on or before July 9, 2012 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2012 for the disproportionate share payments.

(c)(b) For federal fiscal year 2013, commencing on October 1, 2012 and ending September 30, 2013, the executive office of health and human services shall submit to the Secretary of the U.S. Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid state plan for disproportionate share hospital payments (DSH Plan) to provide:

(1) That the disproportionate share hospital payments to all participating hospitals, not to exceed an aggregate limit of $128.3 million, shall be allocated by the executive office of health and human services to the Pool A, Pool C and Pool D components of the DSH Plan; and,

(2) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital's uncompensated care costs for the base year, inflated by the uncompensated care index to the total uncompensated care costs for the base year inflated by uncompensated care index for all participating hospitals. The disproportionate share payments shall be made on or before July 15, 2013 and are expressly conditioned upon approval on or before July 8, 2013 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2013 for the disproportionate share payments.

(c) For federal fiscal year 2014, commencing on October 1, 2013 and ending September 30, 2014, the executive office of health and human services shall submit to the Secretary of the U.S. Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid state plan for disproportionate share hospital payments (DSH Plan) to provide:

(1) That the disproportionate share hospital payments to all participating hospitals, not to exceed an aggregate limit of $128.3 million, shall be allocated by the executive office of health and human services to the Pool A, Pool C and Pool D components of the DSH Plan; and,

(2) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital's uncompensated care costs for the base year, inflated by the uncompensated care index to the total uncompensated care costs for the base year inflated by uncompensated care index for all participating hospitals. The disproportionate share payments shall be made on or before July 14, 2014 and are expressly conditioned upon approval on or before July 7, 2014 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2014 for the disproportionate share payments.

(d) No provision is made pursuant to this chapter for disproportionate share hospital payments to participating hospitals for uncompensated care costs related to graduate medical education programs.

SECTION 2. This article shall take effect upon passage.

 


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ARTICLE 13 AS AMENDED

RELATING TO EDUCATION AID

SECTION 1. Section Sections 16-7-41 and 16-7-41.1 of the General Laws in Chapter 16-7 entitled "Foundation Level School Support" is are hereby amended to read as follows:

16-7-41. Computation of school housing aid. -- (a) In each fiscal year the state shall pay to each community a grant to be applied to the cost of school housing equal to the following:

 The cost of each new school housing project certified to the commissioner of elementary and secondary education not later than July 15 of the fiscal year shall be divided by the actual number of years of the bond issued by the local community or the Rhode Island Health and Educational Building Corporation in support of the specific project, times the school housing aid ratio; and provided, further, with respect to costs of new school projects financed with proceeds of bonds issued by the local community or the Rhode Island Health and Educational Building Corporation in support of the specific project, the amount of the school housing aid payable in each fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of the bonds payable in each fiscal year by the school housing aid ratio and which principal and interest amount over the life of the bonds, shall, in no event, exceed the costs of each new school housing project certified to the commissioner of elementary and secondary education. If a community fails to specify or identify the appropriate reimbursement schedule, the commissioner of elementary and secondary education may at his or her discretion set up to a five (5) year reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10) years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for projects over three million dollars ($3,000,000).

 (b) Aid shall be provided for the same period as the life of the bonds issued in support of the project and at the school housing aid ratio applicable to the local community at the time of the bonds issued in support of the project as set forth in section 16-7-39.

 (c) Aid shall be paid either to the community or in the case of projects financed through the Rhode Island Health and Educational Building Corporation, to the Rhode Island Health and Educational Building Corporation or its designee including, but not limited to, a trustee under a bond indenture or loan and trust agreement, in support of bonds issued for specific projects of the local community in accordance with this section, section 16-7-40 and section 16-7-44. Notwithstanding the preceding, in case of failure of any city, town or district to pay the amount due in support of bonds issued on behalf of a city or, town, school or district project financed by the Rhode Island Health and Educational Building Corporation, upon notification by the Rhode Island Health and Educational Building Corporation, the general treasurer shall deduct the amount from aid provided under this section, section 16-7-40, section 16-7-44 and section 16-7-15 through section 16-7-34.3 due the city, town or district and direct said funding to the Rhode Island Health and Educational Building Corporation or its designee.

 (d) Notwithstanding any provisions of law to the contrary, in connection with the issuance of refunding bonds benefiting any local community, any net interest savings resulting from the refunding bonds issued by such community or a municipal public buildings authority for the benefit of the community or by the Rhode Island health and educational building corporation for the benefit of the community, in each case in support of school housing projects for the community, shall be allocated between the community and the state of Rhode Island, by applying the applicable school housing aid ratio at the time of issuance of the refunding bonds, calculated pursuant to section 16-7-39, that would otherwise apply in connection with school housing projects of the community; provided however, that for any refundings that occur between July 1, 2013 and December 31, 2015, the community shall receive eighty percent (80%) of the total savings and the state shall receive twenty percent (20%). In connection with any such refunding of bonds, the finance director or the chief financial officer of the community shall certify such net interest savings to the commissioner of elementary and secondary education. Notwithstanding section 16-7-44 or any other provision of law to the contrary, school housing projects costs in connection with any such refunding bond issue shall include bond issuance costs incurred by the community, the municipal public buildings authority or the Rhode Island health and educational building corporation, as the case may be, in connection therewith. In connection with any refunding bond issue, school housing project costs shall include the cost of interest payments on such refunding bonds, if the cost of interest payments was included as a school housing cost for the bonds being refunded. A local community or municipal public buildings authority shall not be entitled to the benefits of this subsection (d) unless the net present value savings resulting from the refunding is at least three percent (3%) of the refunded bond issue.

 (e) Any provision of law to the contrary notwithstanding, the commissioner of elementary and secondary education shall cause to be monitored the potential for refunding outstanding bonds of local communities or municipal public building authorities or of the Rhode Island Health and Educational Building Corporation issued for the benefit of local communities or municipal public building authorities and benefiting from any aid referenced in this section. In the event it is determined by said monitoring that the net present value savings which could be achieved by refunding such bonds of the type referenced in the prior sentence including any direct costs normally associated with such refundings is equal to (i) at least one hundred thousand dollars ($100,000) and (ii) for the state and the communities or public building authorities at least three percent (3%) of the bond issue to be refunded including associated costs then, in such event, the commissioner (or his or her designee) may direct the local community or municipal public building authority for the benefit of which the bonds were issued, to refund such bonds. Failure of the local community or municipal public buildings authority to timely refund such bonds, except due to causes beyond the reasonable control of such local community or municipal public building authority, shall result in the reduction by the state of the aid referenced in this section 16-7-4.1 associated with the bonds directed to be refunded in an amount equal to ninety percent (90%) of the net present value savings reasonably estimated by the commissioner of elementary and secondary education (or his or her designee) which would have been achieved had the bonds directed to be refunded been refunded by the ninetieth (90th) day (or if such day is not a business day in the state of Rhode Island, the next succeeding business day) following the date of issuance of the directive of the commissioner (or his or her designee) to refund such bonds. Such reduction in the aid shall begin in the fiscal year following the fiscal year in which the commissioner issued such directive for the remaining term of the bond.

 (f) Payments shall be made in accordance with section 16-7-40 and this section.

 (g) For purposes of financing or refinancing school facilities in the city of Central Falls through the issuance bonds through the Rhode Island Health and Educational Building Corporation, the city of Central Falls shall be considered an "educational institution" within the meaning of subdivision 45-38.1-3(13) of the general laws.

16-7-41.1. Eligibility for reimbursement. -- School districts, not municipalities, may apply for and obtain approval for a project under the necessity of school construction process set forth in the regulations of the board of regents for elementary and secondary education, provided, however, in the case of municipality which issues bonds through the Rhode Island Health and Educational Building Corporation to finance or refinance school facilities for a school district which is not part of the municipality, the municipality may apply for and obtain approval for a project. Such approval will remain valid until June 30 of the third fiscal year following the fiscal year in which the board of regents for elementary and secondary education's approval is granted. Only those projects undertaken at school facilities under the care and control of the school committee and located on school property may qualify for reimbursement under sections 16-7-35 -- 16-7-47. Facilities with combined school and municipal uses or facilities that are operated jointly with any other profit or non-profit agency do not qualify for reimbursement under sections 16-7-35 -- 16-7-47. Projects completed by June 30 of a fiscal year are eligible for reimbursement in the following fiscal year. A project for new school housing or additional housing shall be deemed to be completed when the work has been officially accepted by the school committee or when the housing is occupied for its intended use by the school committee, whichever is earlier.

 Notwithstanding the provisions of this section, the board of regents shall not grant final approval for any project between June 30, 2011 and June 30, 2014 except for projects that are necessitated by immediate health and safety reasons. In the event that a project is requested during the moratorium because of immediate health and safety reasons, those proposals shall be reported to the chairs of the house and senate finance committees.

 Any project approval granted prior to the adoption of the school construction regulations in 2007, and which are currently inactive; and any project approval granted prior to the adoption of the school construction regulations in 2007 which did not receive voter approval or which has not been previously financed, are no longer eligible for reimbursement under this chapter. The department of elementary and secondary education shall develop recommendations for further cost containment strategies in the school housing aid program.

SECTION 2. Section 16-2-21 of the General Laws in Chapter 16-2 entitled "School Committees and Superintendents" is hereby amended to read as follows:

16-2-21. Pre-budget consultation -- Annual reports -- Appropriation requests -- Budgets. -- (a) At least sixty (60) days but not more than ninety (90) days prior to the formal submission of the school budget to the appropriate city or town officials by the school committee, there shall be a joint pre-budget meeting between the school committee and the city or town council(s). At or before this meeting:

 (1) The highest elected official of the city or town shall submit to the school committee an estimate, prepared in a manner approved by the department of administration, of projected revenues for the next fiscal year. In the case of the property tax, the projections shall include only changes in the property tax base, not property tax rates;

 (2) The school committee shall submit to the city or town council a statement for the next ensuing fiscal year of anticipated total expenditures, projected enrollments with resultant staff and facility requirements, and any necessary or mandated changes in school programs or operations; and

 (3) The school committee shall prepare and submit, annually, to the department of elementary and secondary education, on or before the first day of August, a report in the manner and form prescribed by the state board of regents for elementary and secondary education; the committee shall also prepare not less than thirty (30) days before the date of the annual financial town meeting, or the date of the meeting of the city council at which annual appropriations are made, on forms prescribed and furnished by the department of elementary and secondary education, the estimates and recommendations of the amounts necessary to be appropriated for the support of public schools for the fiscal year ensuing; provided, that a copy of these estimates and recommendations shall be sent to the department of elementary and secondary education, and until the report is made, and if the estimates and recommendations are not presented to the department, it may refuse to draw its orders for the money in the state treasury apportioned to the city or town; provided, that the necessary blank for the report has been furnished by the department on or before the first day of June, next preceding, and the necessary forms for the estimates and recommendations shall have been furnished by the department not less than sixty (60) days before the date of the annual appropriations meeting of the city council; the committee shall also prepare and submit annually to the department of elementary and secondary education and at the annual financial town meeting a report to the city or town, setting forth its doings, the state and condition of the schools, and plans for their improvement, which report, unless printed, shall be read in open meeting; and if printed, at least three (3) copies shall be transmitted to the department on or before the day of the annual financial town meeting in each year.

 (b) If the amount appropriated by the town meeting, the city or town council, or budget referendum is either more or less than the amount recommended and requested by the school committee, the school committee shall, within thirty (30) days after the appropriation is made, amend its estimates and recommendations so that expenses are no greater than the total of all revenue appropriated by the state or town or provided for public schools under the care, control, and management of the school committee.

 (c) Only a school budget in which total expenses are less than or equal to appropriations and revenues shall be considered an adopted school budget.

 (d) Notwithstanding any provision of the general or public laws to the contrary:

 (i) the budget adopted and presented by any school committee for the fiscal year 2008 shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred five and one-quarter percent (105.25%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2007;

 (ii) the budget adopted and presented by any school committee for the fiscal year 2009 shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred five percent (105%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2008;

 (iii) the budget adopted and presented by any school committee for the fiscal year 2010 shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred four and three-quarters percent (104.75%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2009;

 (iv) the budget adopted and presented by any school committee for the fiscal year 2011 shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred four and one-half percent (104.5%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2010;

 (v) the budget adopted and presented by any school committee for the fiscal year 2012 shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred four and one-quarter percent (104.25%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2011; and

 (vi) the budget adopted and presented by any school committee for the fiscal year 2013 and for each fiscal year thereafter shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred four percent (104%) of the total of municipal funds appropriated by the city or town council for school purposes for fiscal year 2012 the previous fiscal year.

 (e) Notwithstanding any provision of the general or public laws to the contrary, any judgment rendered pursuant to subsection 16-2-21.4(b) shall consider the percentage caps on school district budgets set forth in subsection (d) of this section.

SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 14

RELATING TO EMPLOYMENT SECURITY JOB DEVELOPMENT FUND ASSESSMENT

SECTION 1. Section 28-42-84 of the General Laws in Chapter 28-42 entitled "Employment Security – General Provisions" is hereby amended to read as follows: 

28-42-84. Job development fund – Disbursements – Unexpended balance. -- (a) The moneys in the job development fund shall be used for the following purposes:

 (1) To reimburse the department of labor and training for the loss of any federal funds resulting from the collection and maintenance of the fund by the department;

 (2) To make refunds of contributions erroneously collected and deposited in the fund;

 (3) To pay any administrative expenses incurred by the department of labor and training associated with the collection of the contributions for employers paid pursuant to section 28-43-8.5, and any other administrative expenses associated with the maintenance of the fund, including the payment of all premiums upon bonds required pursuant to section 28-42-85;

 (4) To provide for job training, counseling and assessment services, and other related activities and services. Services will include, but are not limited to, research, development, coordination, and training activities to promote workforce development and business development as established by the human resource investment council;

 (5) To support the state's job training for economic development;

 (6)(i) Beginning January 1, 2001, two hundredths of one percent (0.02%) out of the twenty-one hundredths of one percent (0.21%) job development assessment paid pursuant to section 28-43-8.5 shall be used to support necessary core services in the unemployment insurance and employment services programs operated by the department of labor and training; and

 (ii) Beginning January 1, 2011, and ending in tax year 2015, two hundredths of one percent (0.02%) out of the fifty- one hundredths of one percent (0.51%) job development assessment paid pursuant to section 28-43-8.5 shall be used to support necessary core services in the unemployment insurance and employment services programs operated by the department of labor and training; and

 (7) Beginning January 1, 2011, and ending in tax year 2015, three tenths of one percent (0.3%) out of the fifty-one hundredths of one percent (0.51%) job development assessment paid pursuant to section 28-43.8.5 shall be deposited into a restricted receipt account to be used solely to pay the principal and/or interest due on Title XII advances received from the federal government in accordance with the provisions of Section 1201 of the Social Security Act; provided, however, that if the federal Title XII loans are repaid through a state revenue bond or other financing mechanism, then these funds may also be used to pay the principal and/or interest that accrues on that debt. Any remaining funds in the restricted receipt account, after the outstanding principal and interest due has been paid, shall be transferred to the employment security fund for the payment of benefits.

 (b) The general treasurer shall pay all vouchers duly drawn by the council upon the fund, in any amounts and in any manner that the council may prescribe. Vouchers so drawn upon the fund shall be referred to the controller within the department of administration. Upon receipt of those vouchers, the controller shall immediately record and sign them and shall promptly transfer those signed vouchers to the general treasurer. Those expenditures shall be used solely for the purposes specified in this section and its balance shall not lapse at any time but shall remain continuously available for expenditures consistent with this section. The general assembly shall annually appropriate the funds contained in the fund for the use of the human resource investment council and, in addition, for the use of the department of labor and training effective July 1, 2000, and for the payment of the principal and interest due on federal Title XII loans beginning July 1, 2011; provided, however, that if the federal Title XII loans are repaid through a state revenue bond or other financing mechanism, then the funds may also be used to pay the principal and/or interest that accrues on that debt.

SECTION 2. Section 28-43-8.5 of the General Laws in Chapter 28-43 entitled "Employment Security – Contributions" is hereby amended to read as follows: 

28-43-8.5. Job development assessment. -- For the tax year years 2011 through 2014, and subsequent tax years each employer subject to this chapter shall be required to pay a job development assessment of fifty-one hundredths of one percent (0.51%) of that employer's taxable payroll, in addition to any other payment which that employer is required to make under any other provision of this chapter; provided, that the assessment shall not be considered as part of the individual employer's contribution rate for the purpose of determining the individual employer's balancing charge pursuant to § 28-43-9. The tax rate for all employers subject to the contribution provisions of chapters 42 – 44 of this title shall be reduced by twenty-one hundredths of one percent (0.21%). For tax year 2015, each employer subject to this chapter shall be required to pay a job development assessment of fifty-one hundredths of one percent (0.51%) of that employer's taxable payroll, in addition to any other payment which that employer is required to make under any other provision of this chapter; provided, that the assessment shall not be considered as part of the individual employer's contribution rate for the purpose of determining the individual employer's balancing charge pursuant to section 28-43-9.  However, upon full repayment of any outstanding principal and/or interest due on title XII advances received from the federal government in accordance with the provisions of section 1201 of the social security act, including any principal and/or interest that accrues on debt from a state revenue bond or other financing mechanism used to repay the title XII advances, then the job development assessment shall be reduced to twenty-one hundredths of one percent (0.21%) beginning the tax quarter after the full repayment occurs. 

SECTION 3. Section 28-44-57 of the General Laws in Chapter 28-44 entitled "Employment Security - Benefits" is hereby amended to read as follows:

28-44-57. Fees and costs chargeable. -- (a) No individual claiming benefits shall be charged fees of any kind by the director or his or her representative, or by the board of review or its representatives, in any proceeding under chapters 42 -- 44 of this title. Any individual claiming benefits in any proceeding or court action may be represented by counsel or other duly authorized agent. The director shall have the authority to fix the fees of that counsel or other duly authorized agent, but no counsel or agent shall together be allowed to charge or receive for those services more than ten percent (10%) of the maximum benefits at issue in that proceeding or court action but not less than fifty dollars ($50.00) except as specifically allowed by the superior court.

 (b) In any case in which either an employer appeals from a determination in favor of the claimant or a claimant successfully appeals from a decision unfavorable to the claimant to an appeals body other than a court of law and the claimant retains an attorney-at-law to represent him or her, the attorney shall be entitled to a counsel fee of fifteen percent (15%) ten percent (10%) of the amount of benefits at issue before the appeals body but not less than fifty dollars ($50.00), which shall be paid by the director out of the employment security administrative funds, within thirty (30) days of the date of his or her appearance.

 (c) (1) An attorney-at-law who represents an individual claiming benefits on an appeal to the courts shall be entitled to counsel fees upon final disposition of the case and necessary court costs and printing disbursements as fixed by the court.

 (2) The director shall pay those counsel fees, costs, and disbursements, out of the employment security administrative funds in each of the following cases:

 (i) Any court appeal taken by a party other than the claimant from an administrative or judicial decision favorable in whole or in part to the claimant;

 (ii) Any court appeal by a claimant from a decision denying or reducing benefits awarded under a prior administrative or judicial decision;

 (iii) Any court appeal as a result of which the claimant is awarded benefits.

SECTION 4. Section 28-42-18 of the General Laws in Chapter 28-42 entitled "Employment Security - General Provisions" is hereby amended to read as follows:

28-42-18. Establishment of fund. -- (a) There is created the employment security fund, to be administered by the director without liability on the part of the state beyond the amounts paid into and earned by the fund. This fund shall consist of:

 (1) All contributions paid pursuant to sections 28-43-16 -- 28-43-22;

 (2) All other moneys paid into and received by the fund;

 (3) Property and securities acquired by and through the use of moneys belonging to the fund;

 (4) Interest earned upon the money belonging to the fund; and

 (5) All money credited to this state's account in the unemployment trust fund pursuant to 42 U.S.C. section 1103.

 (6) Advances from the general fund, authorized by the governor and the director of administration, for the purpose of repaying loans outstanding from the federal government in a given fiscal year. However, all such advances made to the fund shall be repaid to the general fund, with interest as determined by the general treasurer, within the same fiscal year.

 (b) All moneys in the fund shall be mingled and undivided.

SECTION 5. This article shall take effect upon passage.

 


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ARTICLE 15

RELATING TO HUMAN RESOURCE INVESTMENT COUNCIL

SECTION 1. Chapter 42-102 of the General Laws entitled "Rhode Island Human Resource Investment Council" is hereby amended by adding thereto the following section:

42-102-11. State Work Immersion Program. -- (a)(1) The council shall develop a state work immersion program and a non-trade apprenticeship program. For the purposes of this section work immersion shall mean a temporary, paid work experience that provides a meaningful learning opportunity and increases the employability of the participant. The programs shall be designed in order to provide post-secondary school students and unemployed adults with a meaningful work experience, and to assist businesses by training individuals for potential employment.

(2) Funding for the work immersion program will be allocated from the job development fund account and/or from funds appropriated in the annual appropriations act. Appropriated funds will match investments made by businesses in providing meaningful work immersion positions and non-trade apprenticeships.

(b) For each participant in the work immersion program, the program shall reimburse eligible businesses up to fifty percent (50%) of the cost of not more than two hundred (200) hours of work experience and during a period of ten (10) weeks. If an eligible business hires a program participant at the completion of such a program, the state may provide reimbursement for a total of seventy-five percent (75%) of the cost of the work immersion position.

(c) The council shall create a non-trade apprenticeship program and annually award funding on a competitive basis to at least one (1) new initiative proposed and operated by the Governor's Workforce Board Industry Partnerships. This program shall meet the standards of apprenticeship programs defined pursuant to section 28-45-9 of the general laws. The council shall present the program to the State Apprenticeship Council, established pursuant to chapter 28-45 of the general laws, for review and consideration.    

(d) An eligible participant in programs established in subsections (b) and (c) must be at least eighteen (18) years of age and must be a Rhode Island resident. Provided, however, any non-Rhode Island resident, who is enrolled in a college or university located in Rhode Island, is eligible to participate while enrolled at the college or university.

(e) In order to fully implement the provisions of this section, the council is authorized to promulgate rules and regulations. In developing rules and regulations, the council shall consult with the Governor's Workforce Board. The rules and regulations shall define eligible businesses that can participate in the programs created by this section.   

SECTION 2. Chapter 28-44 of the General Laws entitled "Employment Security – Benefits" is hereby amended by adding thereto the following section:

28-44-71. Back to Work Rhode Island Program. -- (a) Legislative findings and purpose. – The general assembly hereby finds as follows:

(1) As of January 1, 2013, Rhode Island's unemployment rate is the highest in the New England region and above the national average;

(2) Despite this high unemployment, businesses report difficulties and frustration in locating employment candidates with the requisite knowledge, skills, and abilities they need;

(3) In an uncertain economy, employers are hesitant to invest in training if there is a risk the investment will not result in a qualified and skilled employee;

(4) Despite the need for skilled employees, job seekers face difficulties in getting their "foot in the door" to demonstrate their value to potential employers;

(5) Statistics indicate that unemployment compensation claimants who participated in employer-partnered, structured training programs return to work more quickly than those who do not, and that such programs have saved significant sums of employment security funds;

(6) The purpose of the "Back to Work Rhode Island Program" is to provide claimants with planned, structured, and career-relevant job training to gain new skills and abilities and help increase their prospects for employment, and assist employers in locating and obtaining skilled and well qualified job candidates for open employment positions.

(b) Definitions. – For the purposes of this section, the following terms shall have the following meanings:

(1) "Claimant" means a person collecting unemployment security benefits under the provisions of chapters 28-42 through 28-44 of this title;

(2) "Department" means the Rhode Island department of labor and training;

(3) "Director" means the director of the Rhode Island department of labor and training;

(4) "Participating employer" means an employer who has voluntarily agreed to participate in the "Back to Work Rhode Island Program" and meets the criteria for participation established by this section and as determined by the director;

(5) "Program" means the "Back to Work Rhode Island Program" established under this section;

(6) "Skill enhancement and job training" means a planned, structured learning environment for the primary benefit of the trainee and from which the participating employer derives no immediate advantage and which is designed to provide the skills and knowledge necessary to meet the employer's specifications for an occupation or trade.

(7) "Unemployment benefits" means the money payable to a claimant for his or her wage losses due to unemployment, payable pursuant to chapters 42 through 44 of this title, and includes any amounts payable pursuant to an agreement under federal law providing for compensation, assistance, or allowances with respect to unemployment.

(c) Program established. – (1) The "Back to Work Rhode Island Program" is hereby established and shall be administered by the department of labor and training.

(2) The program shall be designed so as to permit a claimant to be matched with an employer participating in the program and be placed in department-approved skill enhancement and job training made available by the employer. Participation by both claimant and employer shall be voluntary. The employer shall provide the claimant with skill enhancement and job training relevant to an open employment position for up to twenty-four (24) hours per week for up to six (6) weeks. Upon completion of the six (6) week period, claimants must be considered for employment by the employer. During the six (6) week period, the employer shall not compensate the claimant in any way other than the training that the claimant receives through participation in the program. Both the employer and the claimant may terminate participation in the program at any time.

(3) Notwithstanding any other provision of this title to the contrary, no otherwise eligible individual shall be denied unemployment benefits because of his or her participation in the "Back to Work Rhode Island Program"; provided, however, that contingent upon appropriation, said claimant may receive a reasonable stipend in an amount determined by the director to cover any additional costs associated with their participation in the program, including, but not limited to, transportation or childcare costs.

(4) The department shall notify employers of the availability of the program and shall provide employers with information and materials necessary to participate upon request.

(5) The department shall continuously monitor the program to ensure that participating employers enter the program in good faith with the genuine expectation of hiring for the open position and with the intent and ability to provide relevant skill enhancement and job training.

(6) The department shall develop and conduct an orientation program for participating claimants and employers informing them of the rules, regulations, opportunities, and limitations of the "Back to Work Rhode Island Program".

(7) A claimant may stay in the program if they exhaust benefits or lose program eligibility prior to the end of the six (6) week period;

(8) Participation in the program by a claimant shall be limited to six (6) weeks in any benefit year. A claimant shall be encouraged to end a training relationship that is not beneficial and shall be encouraged to preserve the remainder of his or her six (6) weeks of training for another training opportunity.

(9) In order to participate, a claimant must be seeking work and must be able to work, available to work, and accept work during the training period.

(10) Interested claimants shall be encouraged, but not required, to find employment opportunities that align with their current job skills, knowledge and experience. Employers shall be encouraged to work with the department to locate claimants with current job skills, knowledge, and experience that align with the requirements of an open employment opportunity;

(11) The claimant and the employer must agree upon a formal training plan and schedule which must be approved by the department and may include on-site training, education, and the application of skills or experiences;

(12) Participation in the program may be limited based on program capacity as determined by the department.

(13) The "Back to Work Rhode Island Program" will begin on October 1, 2013 and will expire on December 31, 2014. New participants will not be enrolled after November 18, 2014.

(d) Eligibility to be a participating employer. – (1) An employer wishing to participate in the "Back to Work Rhode Island Program" shall be required to meet the following qualifications, in addition to any further criteria established by the director:

(i) The employer must conduct business in Rhode Island; although, the business need not be domestic to Rhode Island;

(ii) The employer must have a full-time position of employment available that the employer is desirous of filling;

(iii) The employer must be willing and able to provide a participating claimant with skills enhancement and job training focused toward the position that is available;

(iv) The employer must certify that he, she, they, or it will not pay any wages or provide any payment in kind to the claimant during the course of the claimant's participation in the program;

(v) The employer must certify that he, she, they, or it will, at completion of the training period, consider the claimant for employment in the full time position for which the claimant was trained;

(vi) The employer must agree to follow up a claimant's participation in the program with a performance evaluation of the claimant, regardless of whether or not the claimant is hired for employment;

(vii) The employer must agree to provide information as requested by the department and verify that employment of a participating claimant will not displace nor have any impact on a promotion due an existing employee;

(viii) The employer must certify that the employment and training opportunity is not due to a lockout, strike, or other labor dispute; and

(ix) For employers with employees who are subject to collective bargaining, the written approval by the collective bargaining representative for each affected unit shall be required to be included in the plan for any job training for a position which would otherwise be covered by a collective bargaining agreement.

(e) Eligibility to be a participating claimant. – (1) An individual receiving unemployment benefits and wishing to participate in the "Back to Work Rhode Island Program" must meet the following qualifications:

(i) The individual must be eligible to receive Rhode Island unemployment compensation benefits;

(ii) The individual must continue to file weekly continued claims to receive benefits unless otherwise exempted;

(iii) The individual must continue to look for work and employment opportunities during their participation in the program, unless otherwise exempt;

(iv) The individual must certify that he or she understands that participation in the program includes no guarantee of employment;

(v) The individual must attend a mandatory orientation to be offered by the department;

(vi) The individual must agree to provide relevant information as requested by the department and to cooperate with requests from the department for the evaluation of aspects of the "Back to Work Rhode Island" program;

(2) Claimants with a definite recall date within six (6) weeks and those who do not register for employment services are not eligible for the program.

(f) Workers' compensation. – (1) The department will provide workers compensation coverage for participating claimants.

(2) A claimant's participation in the program does not create an employment relationship with the department for the purposes of Chapter 28-29.

(3) For the purposes of computing an approved claimant's wage compensation and benefit amount under Chapter 28-29, the average weekly wage shall be the claimant's maximum weekly unemployment compensation benefit rate for the benefit year in effect at the time of injury.

(g) Rules and regulations. – The director shall promulgate such rules and regulations as the director deems necessary to implement the provisions of this section.

(h) Program Performance monitoring. – The department shall develop and implement a performance monitoring system which does the following:

(1) Collects critical information on the Back to Work Rhode Island program on an annual basis or more frequently as determined by the director, including:

(i)  Increases in claimant skills.

(ii) Skill training being provided by businesses.

(iii)  Placement of claimants after training.

(iv) Challenges foreseen by businesses.

(v)  Business training best practices.

(vi) Amount of weeks claimants received unemployment compensation benefits after completion of the training period.

(2)  Defines the benefits of the program and its training to businesses, claimants and the Employment Security Fund.

(i) Funding. – Creation of the "Back to Work Rhode Island Program" is contingent upon funding.

SECTION 3. Section 40-5.2-20 of the General Laws in Chapter 40-1 5.2 entitled "The Rhode Island Works Program" is hereby amended to read as follows:

40-5.2-20. Child care assistance. -- Families or assistance units eligible for childcare assistance.

(a) The department shall provide appropriate child care to every participant who is eligible for cash assistance and who requires child care in order to meet the work requirements in accordance with this chapter.

(b) Low-Income child care. - The department shall provide child care to all other working families with incomes at or below one hundred eighty percent (180%) of the federal  poverty level, if and to the extent such other families require child care in order to work at paid employment as defined in the department's rules and regulations. Beginning October 1, 2013, and until January 1, 2015, the department shall also provide child care to families with income below one hundred eighty percent (180%) of the federal poverty level if and to the extent such families require child care to participate on a short term basis, as defined in the department's rules and regulations, in training, apprenticeship, internship, on-the-job training, work experience, work immersion, or other job readiness/job attachment program sponsored or funded by the human resource investment council (governor's workforce board) or state agencies that are part of the coordinated program system pursuant to sections 42-102-9 and 42-102-11.

(c) No family/assistance unit shall be eligible for child care assistance under this chapter if the combined value of its liquid resources exceeds ten thousand dollars ($10,000). Liquid resources are defined as any interest(s) in property in the form of cash or other financial instruments or accounts which are readily convertible to cash or cash equivalents. These include, but are not limited to, cash, bank, credit union, or other financial institution savings, checking and money market accounts, certificates of deposit or other time deposits, stocks, bonds, mutual funds, and other similar financial instruments or accounts. These do not include educational savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse. The department is authorized to promulgate rules and regulations to determine the ownership and source of the funds in the joint account.

(d) As a condition of eligibility for child care assistance under this chapter, the parent or caretaker relative of the family must consent to and must cooperate with the department in establishing paternity, and in establishing and/or enforcing child support and medical support orders for all children in the family in accordance with title 15 of the general laws, as amended, unless the parent or caretaker relative is found to have good cause for refusing to comply with the requirements of this subsection.

(e) For purposes of this section "appropriate child care" means child care, including infant, toddler, pre-school, nursery school, school-age, which is provided by a person or organization qualified, approved, and authorized to provide such care by the department of children, youth, and families, or by the department of elementary and secondary education, or such other lawful providers as determined by the department of human services, in cooperation with the department of children, youth and families and the department of elementary and secondary education.

(f) Families with incomes below one hundred percent (100%) of the applicable federal poverty level guidelines shall be provided with free childcare. Families with incomes greater than one hundred percent (100%) and less than one hundred eighty (180%) of the applicable federal poverty guideline shall be required to pay for some portion of the childcare they receive, according to a sliding fee scale adopted by the department in the department's rules.

(g) In determining the type of childcare to be provided to a family, the department shall take into account the cost of available childcare options, the suitability of the type of care available for the child, and the parent's preference as to the type of child care.

(h) For purposes of this section "income" for families receiving cash assistance under section 40-5.2-11 means gross earned income and unearned income, subject to the income exclusions in subdivisions 40-5.2-10(g)(2) and 40-5.2-10(g)(3) and income for other families shall mean gross earned and unearned income as determined by departmental regulations.

(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for childcare in accordance with the provisions of 1 section 35-17-1.

(j) In determining eligibility for child care assistance for children of members of reserve components called to active duty during a time of conflict, the department shall freeze the family composition and the family income of the reserve component member as it was in the month prior to the month of leaving for active duty. This shall continue until the individual is officially discharged from active duty.

SECTION 4. Title 28 of the General Laws entitled "LABOR AND LABOR  RELATIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 55

THE RHODE ISLAND JOBS MATCH ENHANCEMENT PROGRAM

28-55-1. Short title. -- This chapter shall be known and may be cited as "The Rhode Island Jobs Match Enhancement Program."

28-55-2. Legislative findings. -- The general assembly finds and declares that:

(1) Rhode Island's statewide career pathways systems must be driven by local business and industry needs;

(2) Despite high unemployment, businesses report difficulties and frustration in locating employment candidates with the requisite knowledge, skills, and abilities they need;

(3) Locating, training and preparing candidates to fill job openings is an expense that few companies can afford;

(4) The state needs a focused interagency collaboration to provide easy access for businesses to find competent employees and job seekers to obtain necessary resources, training and skills development; and

(5) The state needs to build upon the efforts of the department of labor and training to facilitate employers' access to high quality, skilled job seekers and reduce the number of unemployed individuals in Rhode Island.

28-55-3. The Rhode Island enhanced job match system. -- On or before July 2, 2014, the department of labor and training shall implement the jobs match enhancement program using the current department of labor and training web based workforce and job system as a basis, with significant enhancements, as follows:

(1) It shall be easy for employers to participate in, update and receive responses from job seekers, addressing potential barriers to participation;

(2) It shall be understandable, accessible and productive for job seekers, including measures to ensure literacy-based accessibility;

(3) It shall allow for the prompt identification of workers who are partially, but not fully matched for job openings, resulting in timely skill gap remediation plans;

(4) It shall have the ability to address identified skill gaps through the provision of training and/or education;

(5) It shall notify the department of labor and training of the nature of the skill gaps which exist between job openings and job seekers, and shall have the ability to aggregate skill gap reports for the department;

(6) It shall be promoted and advertised to maximize business and employment use; and

(7) In an effort to ensure that employers' hiring needs are being met, employers shall be encouraged to engage with the system and provide information pertaining to job openings and desired skill sets for potential new hires.

28-55-4. Reporting. -- On or before October 1, 2013, the department of labor and training shall report to the president of the senate and the speaker of the house of representatives on the progress toward implementing the jobs match enhancement program, along with an estimate of any additional costs related to the purchase of the enhancements listed in section 28-55-3.

28-55-5. Funding. -- The implementation of enhancements to the department of labor and training's web based workforce and job system shall be contingent upon available public and/ or private financing.

SECTION 5. Reporting Requirements.

In determining the effectiveness of the workforce training initiatives contained in sections 1 through 4 of this article, the governor's workforce board shall report on the progress of these programs in the biennial employment and training plan for the state as required under section 42-102-9.

SECTION 6. If any of the provisions of this act or the application thereof to any persons or circumstances are held invalid, the remainder of this act and the application thereof to other persons or circumstances shall not be affected thereby. To that end, the provisions of this act are declared to be severable.

SECTION 7. This article shall take effect upon passage.


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ARTICLE 16

RELATING TO RESTRICTED RECEIPT ACCOUNTS

SECTION 1. 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. -- Indirect cost recoveries of 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 non-profit 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:

Department of Human Services

Veterans' home – Restricted account

Veterans' home – Resident benefits

Pharmaceutical Rebates Account

Demand Side Management Grants

Organ transplant fund

Veteran's Cemetery Memorial Fund

Department of Health

Providence Water Lead Grant

Pandemic medications and equipment account

Department of Mental Health, Retardation and Hospitals Behavioral Healthcare,

Developmental Disabilities and Hospitals

Eleanor Slater non-Medicaid third-party payor account

Hospital Medicare Part D Receipts

RICLAS Group Home Operations

Vigneron Memorial Fund Grant

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

Rhode Island Council on the Arts

Art for public facilities fund

Rhode Island Foundation Grant

Rhode Island Historical Preservation and Heritage Commission

Historic preservation revolving loan fund

Historic Preservation loan fund – Interest revenue

Department of Public Safety

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

Office of Management and Budget

Information Technology Investment Fund

Restore and replacement – Insurance coverage

Convention Center Authority rental payments

Investment Receipts – TANS

Car Rental Tax/Surcharge-Warwick Share

OPEB System Restricted Receipt Account

ARRA Administrative Expenses - Bureau of Audits

ARRA Administrative Expenses – Purchasing

Legislature

Audit of federal assisted programs

Department of Elderly Affairs

Pharmaceutical Rebates Account

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

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.

Judiciary

Arbitration Fund Restricted Receipt Account

Third Party Grants

Department of Elementary and Secondary Education

Statewide Student Transportation Services Account

School for the Deaf Fee for Service Account

Davies Career and Technical School Local Education Aid Account

Early Childhood Grant Program Account

Office of the Governor

ARRA Administrative Expenses – Office of Economic Recovery and Reinvestment

 Department of Labor and Training

Job Development Fund – Title XII loans principal and interest

Department of Transportation

Rhode Island Highway Maintenance Account

SECTION 2. Chapter 8-15 of the General Laws entitled "Court Administration" is hereby amended by adding thereto the following section:

8-15-10. Receipt and use of funds. -- There is hereby established in the judicial department a restricted receipt account referred to as "Third Party Grants." The judicial department shall have the authority to receive and expend monies from gifts, devises, grants, bequests, or donations. The judicial department is authorized to enter into any contracts necessary to obtain and expend those funds.

SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 17

RELATING TO EMERGENCY AND PUBLIC COMMUNICATION ACCESS FUND

SECTION 1. Section 39-1-42 of the General Laws in Chapter 39-1 entitled "Public Utilities Commission" is hereby amended to read as follows:

39-1-42. Access to telephone information services for persons with disabilities. -- (a) The public utilities commission shall establish, administer and promote an information accessibility service that includes:

(1) A statewide telephone relay service and, through the competitive bidding process, contract for the administration and operation of such a relay system for utilization of the telecommunications network by deaf, hard of hearing and speech impaired persons;

(2) The adaptive telephone equipment loan program capable of servicing the needs of persons who are deaf, hard of hearing, severely speech impaired, or those with neuromuscular impairments for use with a single party telephone line, to any subscriber who is certified as deaf, hard of hearing, severely speech impaired, or with neuromuscular impairments by a licensed physician, audiologist, speech pathologist, or a qualified state agency, pursuant to chapter 23 of this title; and

(3) A telephone access to the text of newspaper programs to residents who are blind, deaf or blind, visually impaired, or reading impaired with a single party telephone line.

(b) The commission shall establish, by rule or regulation, an appropriate funding mechanism to recover the costs of providing this service from each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network. Notwithstanding the foregoing, there shall not be any additional funding mechanism used to charge each residence and business telephone access line or truck in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, or upon each user interface number or extension number or similarly identifiable line, trunk or path to or from a digital network, to recover the costs of providing the services outlined in subsections (a)(1), (2) or (3) above.

(c) The commission, with the assistance of the state commission on the deaf and hard of hearing, shall also develop the appropriate rules, regulations and service standards necessary to implement the provisions of subsection (a)(1) of this section. At a minimum, however, the commission shall require, under the terms of the contract, that the relay service provider:

(1) Offer its relay services seven (7) days a week, twenty-four (24) hours a day, including holidays;

(2) Hire only qualified salaried operators with deaf language skills; and

(3) Maintain the confidentiality of all communications.

(e) (d) The commission shall collect from the telecommunications service providers the

amounts of the surcharge collected from their subscribers and remit to the department of human services an additional ten thousand dollars ($10,000) annually commencing in fiscal year 2005 for the adaptive telephone equipment loan program and forty thousand dollars ($40,000) to the department of human services for the establishment of a new telephone access to the text of newspaper programs. In addition, eighty thousand dollars ($80,000) shall annually be remitted to the Rhode Island Commission on the Deaf and Hard of Hearing for an emergency and public communication access program, pursuant to section 23-1.8-4 of the Rhode Island general laws. The surcharge referenced hereunder shall be generated from existing funding mechanisms and shall not be generated as a result of any new funding mechanisms charged to each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, or upon each user interface number or extension number or similarly identifiable line, trunk or path to or from a digital network.

SECTION 2. Chapter 23-1.8 of the General Laws entitled "Commission on the Deaf and Hard of Hearing" is hereby amended by adding thereto the following section:

23-1.8-4. Emergency and public communication access account. -- (a) There is established within the general fund the emergency and public communication access restricted receipt account, which shall be referred to as the EPCA account. This purpose of this account is to fund emergency communication and enhance public communication access for deaf and hard of hearing people, in accordance with subsection 39-1-42(e) of the Rhode Island general laws. In addition, the account shall be used to enhance emergency communication systems to alert deaf and hard of hearing people to any type of emergencies within the state.

(b) The account shall be used to purchase and install public communication access equipment and products at public sites for deaf and hard of hearing citizens.

(c) The commission is authorized to establish, administer and promote its emergency and public communication access program.

(d) The commission is authorized to make purchases specifically for the EPCA program and empowered to receive donations and grants from sources including, but not limited to, the federal government, governmental and private foundations, and corporate and individual donors; these donations and grants to be deposited in the EPCA account.

(e) The commission is authorized to promulgate rules and regulations that will set forth how the commission shall utilize the EPCA account. In preparing rules and regulations regarding emergency communications, the Commission shall confer with applicable departments and agencies. 

SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 18

RELATING TO HUMAN SERVICES -- TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND CHILD CARE

SECTION 1. Temporary Assistance for Needy Families Pilot Initiative. 

WHEREAS, The state is focused on providing opportunities to low income people to increase their skills and training, find employment and support their families; and

WHEREAS, The Department of Human Services (the "Department") provides numerous programs to assist low income families to not only find employment but also retain employment and increase career path opportunities; and

WHEREAS, the Rhode Island Works and Child Care Assistance Programs administered by the Department offer the assistance necessary to ensure low income Rhode Islanders have every chance to succeed in the workplace; and

WHEREAS, The Rhode Island Works Program offers a number of opportunities for participants including, but not limited to, on the job training, subsidized employment, unpaid work experiences, community service, job readiness training and vocational education training; and

WHEREAS, the FY 2014 budget provides $3,000,000 in temporary assistance for needy families ("TANF") surplus funds to establish a pilot initiative that promotes innovation in TANF supported programs and tests new ways of delivering services to low income individuals and families; and

WHEREAS, There are a number of challenges that need to be addressed in these programs to increase the success rate of participants including, but not limited to, the work participation rates in Rhode Island Works and the ability of parents to increase their work hours and/or salaries without immediately losing access to important child care assistance; and

WHEREAS, Opportunities exist as part of the pilot initiative to identify innovations for how the Rhode Island Works and Child Care Assistance Programs deliver services to those families and individuals that benefit from the programs; now therefore be it

RESOLVED, That the Department shall draft an innovative proposal to test new approaches and shall award a contract on a competitive basis with a job development vendor(s) to increase the work participation rates of the Rhode Island Works Program; and be it further

RESOLVED, That the Department may increase its case management of Rhode Island Works participants in order to ensure greater levels of success, quality employment and training opportunities for participants; and be it further

RESOLVED, That the statutory limitations for income levels eligible for the Child Care Assistance Program will be temporarily adjusted to provide that parents whose income increases from a level at or below one hundred eighty percent (180%) of the federal poverty level to a level between one hundred eighty percent (180%) and two hundred twenty-five percent (225%) will not lose access to the program because of the increase in income; and be it further

RESOLVED, That the Department shall provide the Governor with monthly written reports regarding the implementation of the pilot initiative including, but not limited to, performance measures and progress made to increase work participation rates for Rhode Island Works programs; and be it further

RESOLVED, That the Department shall report to the Governor and the General Assembly no later than April 1, 2014 regarding the findings of the pilot initiative including program changes that were tested, vendor performance and benchmarks achieved, recommendations for statutory amendments to continue the successes of the pilot, and the number of individuals and families that participated in the pilot and their successes; and be it further

RESOLVED, That any and all information in the Department's report regarding participants shall be in the aggregate and shall not include personally identifying information that may be highlighted as models for the pilot initiative's success without prior consent of any participants. 

SECTION 2. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The Rhode Island Works Program" is hereby amended to read as follows:

40-5.2-20. Child care assistance. -- Families or assistance units eligible for childcare assistance.

 (a) The department shall provide appropriate child care to every participant who is eligible for cash assistance and who requires child care in order to meet the work requirements in accordance with this chapter.

 (b) Low-Income child care. - The department shall provide child care to all other working families with incomes at or below one hundred eighty percent (180%) of the federal poverty level, if and to the extent such other families require child care in order to work at paid employment as defined in the department's rules and regulations.

 (c) No family/assistance unit shall be eligible for child care assistance under this chapter if the combined value of its liquid resources exceeds ten thousand dollars ($10,000). Liquid resources are defined as any interest(s) in property in the form of cash or other financial instruments or accounts which are readily convertible to cash or cash equivalents. These include, but are not limited to, cash, bank, credit union, or other financial institution savings, checking and money market accounts, certificates of deposit or other time deposits, stocks, bonds, mutual funds, and other similar financial instruments or accounts. These do not include educational savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse. The department is authorized to promulgate rules and regulations to determine the ownership and source of the funds in the joint account.

 (d) As a condition of eligibility for child care assistance under this chapter, the parent or caretaker relative of the family must consent to and must cooperate with the department in establishing paternity, and in establishing and/or enforcing child support and medical support orders for all children in the family in accordance with title 15 of the general laws, as amended, unless the parent or caretaker relative is found to have good cause for refusing to comply with the requirements of this subsection.

 (e) For purposes of this section "appropriate child care" means child care, including infant oddler toddler, pre-school, nursery school, school-age, which is provided by a person or organization qualified, approved, and authorized to provide such care by the department of children, youth, and families, or by the department of elementary and secondary education, or such other lawful providers as determined by the department of human services, in cooperation with the department of children, youth and families and the department of elementary and secondary education.

 (f)(1) Families with incomes below one hundred percent (100%) of the applicable federal poverty level guidelines shall be provided with free childcare. Families with incomes greater than one hundred percent (100%) and less than one hundred eighty (180%) of the applicable federal poverty guideline shall be required to pay for some portion of the childcare they receive, according to a sliding fee scale adopted by the department in the department's rules.

(2) For a twelve (12) month period beginning October 1, 2013, the Child Care Subsidy Transition Program shall function within the department of human services. Under this program, families who are already receiving childcare assistance and who become ineligible for childcare assistance as a result of their incomes exceeding one hundred eighty percent (180%) of the applicable federal poverty guidelines shall continue to be eligible for childcare assistance from October 1, 2013 to September 30, 2014 or until their incomes exceed two hundred twenty-five percent (225%) of the applicable federal poverty guidelines, whichever occurs first. To be eligible, such families must continue to pay for some portion of the childcare they receive, as indicated in a sliding fee scale adopted in the department's rules and in accordance with all other eligibility standards.

 (g) In determining the type of childcare to be provided to a family, the department shall take into account the cost of available childcare options, the suitability of the type of care available for the child, and the parent's preference as to the type of child care.

 (h) For purposes of this section "income" for families receiving cash assistance under section 40-5.2-11 means gross earned income and unearned income, subject to the income exclusions in subdivisions 40-5.2-10(g)(2) and 40-5.2-10(g)(3) and income for other families shall mean gross earned and unearned income as determined by departmental regulations.

 (i) The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for childcare in accordance with the provisions of section 35-17-1.

 (j) In determining eligibility for child care assistance for children of members of reserve components called to active duty during a time of conflict, the department shall freeze the family composition and the family income of the reserve component member as it was in the month prior to the month of leaving for active duty. This shall continue until the individual is officially discharged from active duty.

SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 19 AS AMENDED

RELATING TO MEDICAL ASSISTANCE

SECTION 1. Sections 40-8-13.4, 40-8-17 and 40-8-19 of the General Laws in Chapter 40-8 entitled "Medical Assistance" are hereby amended to read as follows:    

40-8-13.4. Rate methodology for payment for in state and out of state hospital services.-- (a) The department executive office of health and human services shall implement a new methodology for payment for in state and out of state hospital services in order to ensure access to and the provision of high quality and cost-effective hospital care to its eligible recipients.

(b) In order to improve efficiency and cost effectiveness, the department executive office of health and human services shall:

(1) With respect to inpatient services for persons in fee for service Medicaid, which is non-managed care, implement a new payment methodology for inpatient services utilizing the Diagnosis Related Groups (DRG) method of payment, which is, a patient classification method which provides a means of relating payment to the hospitals to the type of patients cared for by the hospitals. It is understood that a payment method based on Diagnosis Related Groups may include cost outlier payments and other specific exceptions. The department executive office will review the DRG payment method and the DRG base price annually, making adjustments as appropriate in consideration of such elements as trends in hospital input costs, patterns in hospital coding, beneficiary access to care, and the Center for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price index. 

(B) With respect to inpatient services, (i) it is required as of January 1, 2011 until December 31, 2011, that the Medicaid managed care payment rates between each hospital and health plan shall not exceed ninety and one tenth percent (90.1%) of the rate in effect as of June 30, 2010. Negotiated increases in inpatient hospital payments for each annual twelve (12) month period beginning January 1, 2012 may not exceed the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price index for the applicable period; (ii) provided, however, for the twelve (12) month period beginning July 1, 2013 the Medicaid managed care payment rates between each hospital and health plan shall not exceed the payment rates in effect as of January 1, 2013; (iii) negotiated increases in inpatient hospital payments for each annual twelve (12) month period beginning July 1, 2014 may not exceed the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable period; (iv) The Rhode Island department executive office of health and human services will develop an audit methodology and process to assure that savings associated with the payment reductions will accrue directly to the Rhode Island Medicaid program through reduced managed care plan payments and shall not be retained by the managed care plans; (iii) (v) All hospitals licensed in Rhode Island shall accept such payment rates as payment in full; and (iv) (vi) for all such hospitals, compliance with the provisions of this section shall be a condition of participation in the Rhode Island Medicaid program. 

(2) With respect to outpatient services and notwithstanding any provisions of the law to the contrary, for persons enrolled in fee for service Medicaid, the department executive office will reimburse hospitals for outpatient services using a rate methodology determined by the department executive office and in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare payments for similar services. Changes Notwithstanding the above, there shall be no increase in the Medicaid fee-for-service outpatient rates effective July 1, 2013. Thereafter, changes to outpatient rates will be implemented on July 1 each year and shall align with Medicare payments for similar services from the prior federal fiscal year. With respect to the outpatient rate, (i) it is required as of January 1, 2011 until December 31, 2011, that the Medicaid managed care payment rates between each hospital and health plan shall not exceed one hundred percent (100%) of the rate in effect as of June 30, 2010. Negotiated increases in hospital outpatient payments for each annual twelve (12) month period beginning January 1, 2012 may not exceed the Centers for Medicare and Medicaid Services national CMS Outpatient Prospective Payment System (OPPS) hospital price index for the applicable period.; (ii) provided, however, for the twelve (12) month period beginning July 1, 2013 the Medicaid managed care outpatient payment rates between each hospital and health plan shall not exceed the payment rates in effect as of January 1, 2013; (iii) negotiated increases in outpatient hospital payments for each annual twelve (12) month period beginning July 1, 2014  may not exceed the Centers for Medicare and Medicaid Services national CMS Outpatient Prospective Payment System (OPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable period.

(c) It is intended that payment utilizing the Diagnosis Related Groups method shall reward hospitals for providing the most efficient care, and provide the department executive office the opportunity to conduct value based purchasing of inpatient care. 

(d) The director secretary of the department executive office of health and human services and/or the secretary of executive office of health and human services is hereby authorized to promulgate such rules and regulations consistent with this chapter, and to establish fiscal procedures he or she deems necessary for the proper implementation and administration of this chapter in order to provide payment to hospitals using the Diagnosis Related Group payment methodology. Furthermore, amendment of the Rhode Island state plan for medical assistance (Medicaid) pursuant to Title XIX of the federal Social Security Act is hereby authorized to provide for payment to hospitals for services provided to eligible recipients in accordance with this chapter. 

(e) The department executive office shall comply with all public notice requirements necessary to implement these rate changes. 

(f) As a condition of participation in the DRG methodology for payment of hospital services, every hospital shall submit year-end settlement reports to the department executive office within one year from the close of a hospital’s fiscal year. Should a participating hospital fail to timely submit a year-end settlement report as required by this section, the department executive office shall withhold financial cycle payments due by any state agency with respect to this hospital by not more than ten percent (10%) until said report is submitted. For hospital fiscal year 2010 and all subsequent fiscal years, hospitals will not be required to submit year-end settlement reports on payments for outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not be required to submit year-end settlement reports on claims for hospital inpatient services. Further, for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include only those claims received between October 1, 2009 and June 30, 2010.

(g) The provisions of this section shall be effective upon implementation of the amendments and new payment methodology pursuant to this section and § 40-8-13.3, which shall in any event be no later than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-19-14, 27-19-15, and 27-19-16 shall be repealed in their entirety. 

(h) The director of the Department of Human Services shall establish an independent study commission comprised of representatives of the hospital network, representatives from the communities the hospitals serve, state and local policy makers and any other stakeholders or consumers interested in improving the access and affordability of hospital care.

The study commission shall assist the director in identifying: issues of concern and priorities in the community hospital system, the delivery of services and rate structures, including graduate medical education and training programs; and opportunities for building sustainable and effective pubic-private partnerships that support the missions of the department and the state’s community hospitals. 

The director of the Department of Human Services shall report to the chairpersons of the House and Senate Finance Committees the findings and recommendations of the study commission by December 31, 2010.

40-8-17. Waiver request. -- (a) Formation. - The department of human services, in conjunction with the executive office of health and human services, is directed and authorized to apply for and obtain any necessary waiver(s), waiver amendment(s) and/or state plan amendments from the secretary of the United States department of health and human services, including, but not limited to, a an extension of the section 1115(a) global demonstration waiver that provides program flexibility in exchange for federal budgetary certainty and under which Rhode Island will operate all facets of the state's Medicaid program, except as may be explicitly exempted under any applicable public or general laws. amended, as appropriate, and renamed to reflect the state's effort to coordinate all publicly financed healthcare. The secretary of the office shall ensure that the state's health and human services departments and the people and communities they serve in the Medicaid program shall have the opportunity to contribute to and collaborate in the formulation of any request for a new waiver, waiver extension and/or state plan amendment(s). Any such actions shall: (1) continue efforts to re-balance the system of long-term services and supports by assisting people in obtaining care in the most appropriate and least restrictive setting; (2) pursue further utilization of care management models that promote preventive care, offer a health home, and provide an integrated system of services; (3) use smart payments and purchasing to finance and support Medicaid initiatives that fill gaps in the integrated system of care; and (4) recognize and assure access to non-medical services and supports, such as peer navigation and employment and housing stabilization services, that are essential for optimizing a person's health, wellness and safety and that reduce or delay the need for long-term services and supports.   

 (b) Effective July 1, 2009, any provision presently in effect in the Rhode Island General Laws where the department of human services, in conjunction with the executive office of health and human services, is authorized to apply for and obtain any necessary waiver(s), waiver amendment(s) and/or state plan amendment(s) for the purpose of providing medical assistance to recipients, shall authorize the department of human services, in conjunction with the executive office of health and human services, to proceed with appropriate category changes in accordance with the special terms and conditions of the Rhode Island Global Consumer Choice Compact section 1115(a) Demonstration Waiver, which became effective January 16, 2009. or any extension thereof, as amended and/or renamed under the authority provided in this section.

40-8-19. Rates of payment to nursing facilities. -- (a) Rate reform. (1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to participate in the Title XIX Medicaid program for services rendered to Medicaid-eligible residents, shall be reasonable and adequate to meet the costs which must be incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. § 1396a(a)(13). The executive office of health and human services shall promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1, 2011 to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq., of the Social Security Act.

(2) The executive office of health and human services (“Executive Office”) shall review the current methodology for providing Medicaid payments to nursing facilities, including other long-term care services providers, and is authorized to modify the principles of reimbursement to replace the current cost based methodology rates with rates based on a price based methodology to be paid to all facilities with recognition of the acuity of patients and the relative Medicaid occupancy, and to include the following elements to be developed by the executive office:

(i) A direct care rate adjusted for resident acuity;

(ii) An indirect care rate comprised of a base per diem for all facilities;

(iii) A rearray of costs for all facilities every three (3) years beginning October, 2015, which may or may not result in automatic per diem revisions;

(iv) Application of a fair rental value system;

(v) Application of a pass-through system; and

(vi) Adjustment of rates by the change in a recognized national nursing home inflation index to be applied on October 1st of each year, beginning October 1, 2012. This adjustment will not occur on October 1, 2013, but will resume on October 1, 2014. Said inflation index shall be applied without regard for the transition factor in subsection (b)(2) below.

(b) Transition to full implementation of rate reform. For no less than four (4) years after the initial application of the price-based methodology described in subdivision (a)(2) to payment rates, the department executive office of health and human services shall implement a transition plan to moderate the impact of the rate reform on individual nursing facilities. Said transition shall include the following components:

(1) No nursing facility shall receive reimbursement for direct care costs that is less than the rate of reimbursement for direct care costs received under the methodology in effect at the time of passage of this act; and

(2) No facility shall lose or gain more than five dollars ($5.00) in its total per diem rate the first year of the transition. The adjustment to the per diem loss or gain may be phased out by twenty-five percent (25%) each year; and

(3) The transition plan and/or period may be modified upon full implementation of facility per diem rate increases for quality of care related measures. Said modifications shall be submitted in a report to the general assembly at least six (6) months prior to implementation.

SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby amended by adding thereto the following chapter:

CHAPTER 40-8.11

HEALTH CARE FOR ADULTS

40-8.11-1. Purpose. -- Pursuant to section 42-12.3-2, it is the intent of the general assembly to create access to comprehensive health care for uninsured Rhode Islanders. The Rhode Island Medicaid program has become an important source of insurance coverage for low income pregnant women, families with children, elders, and persons with disabilities who might not be able otherwise to obtain or afford health care. Under the U.S. Patient Protection and Affordable Care Act (ACA) of 2010, all Americans will be required to have health insurance, with some exceptions, beginning in 2014. Federal funding is available with ACA implementation to help pay for health insurance for low income adults, ages nineteen (19) to sixty-four (64), who do not qualify for Medicaid eligibility under Rhode Island general and public laws. It is the intent of the general assembly, therefore, to implement the Medicaid expansion for adults without dependent children authorized by the ACA, to extend health insurance coverage to these Rhode Islanders and further the goal established in section 42-12.3-2 in1993.

40-8.11-2. Eligibility.-- (a) Medicaid coverage for non-pregnant adults without children. There is hereby established, effective January 1, 2014, a category of Medicaid eligibility pursuant to Title XIX of the Social Security Act, as amended by the U.S. Patient Protection and Affordable Care Act (ACA) of 2010, 42 U.S.C. section 1396u-1, for adults ages nineteen (19) to sixty-four (64) who do not have dependent children and do not qualify for Medicaid under Rhode Island general laws applying to families with children and adults who are blind, aged or living with a disability. The executive office of health and human services is directed to make any amendments to the Medicaid state plan and waiver authorities established under title XIX necessary to implement this expansion in eligibility and assure the maximum federal contribution for health insurance coverage provided pursuant to this chapter.  

(b) Income. The secretary of the executive office of health and human services is authorized and directed to amend the Medicaid Title XIX state plan and, as deemed necessary, any waiver authority to effectuate this expansion of coverage to any Rhode Islander who qualifies for Medicaid eligibility under this chapter with income at or below one hundred and thirty-three percent (133%) the federal poverty level, based on modified adjusted gross income.  

(c) Delivery system. The executive office of health and human services is authorized and directed to apply for and obtain any waiver authorities necessary to provide persons eligible under this chapter with managed, coordinated health care coverage consistent with the principles set forth in section 42-12.4, pertaining to a health care home.

40-8.11-3. Premium assistance program. – (a) The office of health and human services is directed to amend its rules and regulations to implement a premium assistance program for adults with dependent children, enrolled in the state's health benefits exchange, whose annual income and resources meet the guidelines established in section 40-8.4-4 in effect on December 1, 2013.  The premium assistance will pay one-half of the cost of a commercial plan that a parent may incur after subtracting the cost-sharing requirement under section 40-8.4-4 as of December 31, 2013 and any applicable federal tax credits available. The office is also directed to amend the 1115 waiver demonstration extension and the medical assistance title XIX state plan for this program if it is determined that it is eligible for funding pursuant to title XIX of the social security act.

(b) The office of health and human services shall require any individual receiving benefits under a state funded healthcare assistance program to apply for any health insurance for which he or she is eligible, including health insurance available through the health benefits exchange. Nothing shall preclude the state from using funds appropriated for affordable care act transition expenses to reduce the impact on an individual who has been transitioned from a state program to a health insurance plan available through the health benefits exchange. It shall not be deemed cost effective for the state if it would result in a loss of benefits or an increase in the cost of health care services for the person above an amount deemed de minimus as determined by state regulation.    

SECTION 3. Section 42-12.4-8 of the General Laws in Chapter 42-12.4 entitled "The Rhode Island Medicaid Reform Act of 2008" is hereby amended to read as follows:      

42-12.4-8. Demonstration termination. -- Demonstration expiration or termination.- In the event the demonstration is suspended or terminated for any reason, or in the event that the demonstration expires, the department of human services, in conjunction with the executive office of health and human services, is directed and authorized to apply for and obtain all waivers  an extension or renewal of the section 1115 research and demonstration waiver or any new waiver(s) that, at a minimum, ensure continuation of the waiver authorities in existence prior to the acceptance of the demonstration. The office shall ensure that any such actions are conducted in accordance with applicable federal guidelines pertaining to section 1115 demonstration waiver renewals, extensions, suspensions or terminations. The department of human services and the executive office of health and human services to the extent possible shall ensure that said waivers waiver authorities are reinstated prior to any suspension, termination, or expiration of the demonstration.

SECTION 4. Section 40-8.4-4 of the General Laws in Chapter 40-8.4 entitled "Health Care For Families" is hereby amended to read as follows:

40-8.4-4. Eligibility. -- (a) Medical assistance for families. - There is hereby established a category of medical assistance eligibility pursuant to section 1931 of Title XIX of the Social Security Act, 42 U.S.C. section 1396u-1, for families whose income and resources are no greater than the standards in effect in the aid to families with dependent children program on July 16, 1996 or such increased standards as the department may determine. The department office of health and human services is directed to amend the medical assistance Title XIX state plan and to submit to the U.S. Department of Health and Human Services an amendment to the RIte Care waiver project to provide for medical assistance coverage to families under this chapter in the same amount, scope and duration as coverage provided to comparable groups under the waiver. The department is further authorized and directed to submit such amendments and/or requests for waivers to the Title XXI state plan as may be necessary to maximize federal contribution for provision of medical assistance coverage provided pursuant to this chapter, including providing medical coverage as a "qualified state" in accordance with Title XXI of the Social Security Act, 42 U.S.C. section 1397 et seq. Implementation of expanded coverage under this chapter shall not be delayed pending federal review of any Title XXI amendment or waiver.

 (b) Income. - The director secretary of the department office of health and human services is authorized and directed to amend the medical assistance Title XIX state plan or RIte Care waiver to provide medical assistance coverage through expanded income disregards or other methodology for parents or relative caretakers whose income levels are below one hundred seventy-five percent (175%) one hundred thirty-three percent (133%) of the federal poverty level.

 (c) Waiver. - The department of human services is authorized and directed to apply for and obtain appropriate waivers from the Secretary of the U.S. Department of Health and Human Services, including, but not limited to, a waiver of the appropriate provisions of Title XIX, to require that individuals with incomes equal to or greater than one hundred fifty percent (150%) of the federal poverty level pay a share of the costs of their medical assistance coverage provided through enrollment in either the RIte Care Program or under the premium assistance program under section 40-8.4-12, in a manner and at an amount consistent with comparable cost-sharing provisions under section 40-8.4-12, provided that such cost sharing shall not exceed five percent (5%) of annual income for those with annual income in excess of one hundred fifty percent (150%); and provided, further, that cost-sharing shall not be required for pregnant women or children under age one.

SECTION 5. Section 40-8.4-12 of the General Laws in Chapter 40-8.4 entitled "Health Care For Families" is hereby amended to read as follows:

40-8.4-12. RIte Share Health Insurance Premium Assistance Program. -- (a) Basic RIte Share Health Insurance Premium Assistance Program. - The department office of health and human services is authorized and directed to amend the medical assistance Title XIX state plan to implement the provisions of section 1906 of Title XIX of the Social Security Act, 42 U.S.C. section 1396e, and establish the Rhode Island health insurance premium assistance program for RIte Care eligible parents families with incomes up to one hundred seventy-five percent (175%) two hundred fifty percent (250%) of the federal poverty level who have access to employer-based health insurance. The state plan amendment shall require eligible individuals families with access to employer-based health insurance to enroll themselves and/or their family in the employer-based health insurance plan as a condition of participation in the RIte Share program under this chapter and as a condition of retaining eligibility for medical assistance under chapters 5.1 and 8.4 of this title and/or chapter 12.3 of title 42 and/or premium assistance under this chapter, provided that doing so meets the criteria established in section 1906 of Title XIX for obtaining federal matching funds and the department has determined that the individual's and/or the family's enrollment in the employer-based health insurance plan is cost-effective and the department has determined that the employer-based health insurance plan meets the criteria set forth in subsection (d). The department shall provide premium assistance by paying all or a portion of the employee's cost for covering the eligible individual or his or her family under the employer-based health insurance plan, subject to the cost sharing provisions in subsection (b), and provided that the premium assistance is cost-effective in accordance with Title XIX, 42 U.S.C. section 1396 et seq.

 (b) Individuals who can afford it shall share in the cost. - The department office of health and human services is authorized and directed to apply for and obtain any necessary waivers from the secretary of the United States Department of Health and Human Services, including, but not limited to, a waiver of the appropriate sections of Title XIX, 42 U.S.C. section 1396 et seq., to require that individuals families eligible for RIte Care under this chapter or chapter 12.3 of title 42 with incomes equal to or greater than one hundred fifty percent (150%) of the federal poverty level pay a share of the costs of health insurance based on the individual's ability to pay, provided that the cost sharing shall not exceed five percent (5%) of the individual's annual income. The department of human services shall implement the cost-sharing by regulation, and shall consider co-payments, premium shares or other reasonable means to do so.

 (c) Current RIte Care enrollees with access to employer-based health insurance. - The department office of health and human services shall require any individual family who receives RIte Care or whose family receives RIte Care on the effective date of the applicable regulations adopted in accordance with subsection (f) to enroll in an employer-based health insurance plan at the individual's eligibility redetermination date or at an earlier date determined by the department, provided that doing so meets the criteria established in the applicable sections of Title XIX, 42 U.S.C. section 1396 et seq., for obtaining federal matching funds and the department has determined that the individual's and/or the family's enrollment in the employer-based health insurance plan is cost-effective and has determined that the health insurance plan meets the criteria in subsection (d). The insurer shall accept the enrollment of the individual and/or the family in the employer-based health insurance plan without regard to any enrollment season restrictions.

 (d) Approval of health insurance plans for premium assistance. - The department office of health and human services shall adopt regulations providing for the approval of employer-based health insurance plans for premium assistance and shall approve employer-based health insurance plans based on these regulations. In order for an employer-based health insurance plan to gain approval, the department must determine that the benefits offered by the employer-based health insurance plan are substantially similar in amount, scope, and duration to the benefits provided to RIte Care eligible persons by the RIte Care program, when the plan is evaluated in conjunction with available supplemental benefits provided by the department office. The department office shall obtain and make available to persons otherwise eligible for RIte Care as supplemental benefits those benefits not reasonably available under employer-based health insurance plans which are required for RIte Care eligible persons by state law or federal law or regulation.

 (e) Maximization of federal contribution. - The department office of health and human services is authorized and directed to apply for and obtain federal approvals and waivers necessary to maximize the federal contribution for provision of medical assistance coverage under this section, including the authorization to amend the Title XXI state plan and to obtain any waivers necessary to reduce barriers to provide premium assistance to recipients as provided for in Title XXI of the Social Security Act, 42 U.S.C. section 1397 et seq.

 (f) Implementation by regulation. - The department office of health and human services is authorized and directed to adopt regulations to ensure the establishment and implementation of the premium assistance program in accordance with the intent and purpose of this section, the requirements of Title XIX, Title XXI and any approved federal waivers.

SECTION 86. Rhode Island Medicaid Reform Act of 2008.

WHEREAS, The General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode Island Medicaid Reform Act of 2008”; and

WHEREAS, A Joint Resolution is required pursuant to Rhode Island General Laws § 42- 12.4-1, et seq.; and

WHEREAS, Rhode Island General Law § 42-12.4-7 provides that any change that requires the implementation of a rule or regulation or modification of a rule or regulation in existence prior to the implementation of the global consumer choice section 1115 demonstration (“the demonstration”) shall require prior approval of the general assembly; and further provides that any category II change or category III change as defined in the demonstration shall also require prior approval by the general assembly; and

WHEREAS, Rhode Island General Law § 42-7.2-5 provides that the Secretary of the Office of Health and Human Services is responsible for the “review and coordination of any Global Consumer Choice Compact Waiver requests and renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan or category II or III changes” as described in the demonstration, with “the potential to affect the scope, amount, or duration of publicly-funded health care services, provider payments or reimbursements, or access to or the availability of benefits and services as provided by Rhode Island general and public laws”; and

WHEREAS, In pursuit of a more cost-effective consumer choice system of care that is fiscally sound and sustainable, the secretary requests general assembly approval of the following proposals to amend the demonstration:

(a) Nursing Facility Payment Rates - Eliminate Rate Increase. The Medicaid agency proposes to eliminate the projected nursing facility rate increase and associated hospice rate increase that would otherwise become effective during state fiscal year 2014. A Category II change is required to implement this proposal under the terms and conditions of the Global Consumer Choice Compact Waiver. Further, this change may also require the adoption of new or amended rules, regulations and procedures.

(b) Medicaid Hospital Payment Rates - Eliminate Adjustments. The Medicaid single state agency proposes to reduce hospital payments by eliminating the projected inpatient and outpatient hospital rate increase for state fiscal year 2014. A Category II change is required to implement this proposal under the terms and conditions of the Global Consumer Choice Compact Waiver. Further, this change may also require the adoption of new or amended rules, regulations and procedures.

(c) Integrated Care initiative - Implementation Phase-in. The Medicaid single state agency proposes to continue implementation of the Medicaid Integrated Care Initiative for Adults authorized under the Rhode Island Medicaid Reform Act of 2008, as amended in 2011. Moving the initiative forward may require Category II changes under the terms and conditions of the Global Consumer Choice Compact Waiver and the adoption of new or amended rules, regulations and procedures.

(d) BHDDH System Reforms - implementation of Employment First Initiative. As part of ongoing reforms promoting rehabilitation services that enhance a person’s dignity, self-worth and connection to the community, the Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals proposes to change Medicaid financing to support the Employment First initiative. The initiative uses reductions in Medicaid payments to provide incentives for service alternatives that optimize health and independence. The resulting changes in payment rates may require Category II changes under the terms and conditions of the Global Consumer Choice Compact Waiver and the adoption of new or amended rules, regulations and procedures.

(e) Costs Not Otherwise Matchable (CNOM) Federal Funding. Implementation of the U.S. Patient Protection and Affordable Care Act of 2010 will render it unnecessary for the Medicaid agency to continue to pursue federal CNOM funding for services to certain newly Medicaid eligible populations served by the Executive Office of Health and Human Services, the Department of Human Services and the Department of Behavioral Healthcare, Developmental Disabilities and Hospitals. Category II changes may be necessary under the terms and conditions of the Global Consumer Choice Compact Waiver to facilitate the transition of the affected people and services to full Medicaid coverage.

(f) Approved Authorities: Section 1115 Waiver Demonstration Extension. The Medicaid agency proposes to implement authorities approved under the Section 1115 waiver demonstration extension request - formerly known as the Global Consumer Choice Waiver - that (1) continue efforts to re-balance the system of long term services and supports by assisting people in obtaining care in the most appropriate and least restrictive setting; (2) pursue further utilization of care management models that offer a health home, promote access to preventive care, and provide an integrated system of services; (3) use smart payments and purchasing to finance and support Medicaid initiatives that fill gaps in the integrated system of care; and (4) recognize and assure access to non-medical services and supports, such as peer navigation and employment and housing stabilization services, that are essential for optimizing a person’s health, wellness and safety and that reduce or delay the need for long term services and supports.

(g) Medicaid Requirements and Opportunities under the US. Patient Protection and Affordable Care Act of 2010. The Medicaid agency proposes to pursue any requirements and/or opportunities established under the U.S. Patient Protection and Affordable Care Act of 2010 that may warrant a Medicaid State Plan Amendment and/or a Category II or III change under the terms and conditions of the Global Consumer Choice Compact Waiver or its successor or any extension thereof. Such opportunities and requirements include, but are not limited to: (1) the continuation of coverage for youths who had been in substitute care who are at least eighteen (18) years old but are not yet twenty-six (26) years of age, and who are eligible for Medicaid coverage under the Foster Care Independence Act of 1999 (2) the maximizing of Medicaid federal matching funds for any services currently administered by the health and human services agencies that are authorized under Rhode Island general and public laws. Any such actions the Medicaid agency takes shall not have an adverse impact on beneficiaries or cause there to be an increase in expenditures beyond the amount appropriated for state fiscal year 2014. Now, therefore, be it

(h) RIte Care Parents Eligibility. The Medicaid single state agency proposes to reduce the RIte Care coverage income eligibility threshold for parents to one hundred thirty-three percent (133%) of the federal poverty level. A Category III change is required to implement this proposal under the terms and conditions of the Global Consumer Choice Compact Waiver. Further this change requires the adoption of amended rules, regulations and procedures.

(i) Cortical Integrative Therapy. The Medicaid single state agency shall seek to create a new service entitled Cortical Integrative Therapy. This service is designed to effectuate either neuronal excitation or inhibition through temporal and spatial summation to strengthen synaptic connections.  Creating this new service may require Category II changes under the terms and conditions of the Global Consumer Choice Waiver and the adoption of new or amended rules, regulations, and procedures;

Now, therefore, be it 

RESOLVED, that the general assembly hereby approves proposals (a) through (f)(i) listed above to amend the demonstration; and be it further

RESOLVED, that the secretary of the office of health and human services is authorized to pursue and implement any waiver amendments, category II or category III changes, state plan amendments and/or changes to the applicable department’s rules, regulations and procedures approved herein and as authorized by § 42-12.4-7.

SECTION 9. This article shall take effect upon passage.  SECTION 7.  Section 4 of this article shall take effect on January 1, 2014.  The remainder of this Article shall take effect upon passage.


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ARTICLE 20

RELATING TO MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

SECTION 1. Title 24 of the General Laws entitled "HIGHWAYS" is hereby amended by adding thereto the following chapter:

CHAPTER 18

MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

24-18-1. Short title. -- This act shall be known and may be cited as the "Municipal Road and Bridge Revolving Fund Act of 2013."

24-18-2. Legislative findings. -- The general assembly finds and declares that:

(1) Transportation plays a critical role in enabling economic activity in the state of Rhode Island;

(2) Cities and towns can lower the costs of borrowing for road and bridge projects through cooperation with the Rhode Island Clean Water Finance Agency;

(3) The Clean Water and Drinking Water Fund programs administered by the Rhode Island Clean Water Finance Agency benefit from the highest bond rating of any public entity in the state of Rhode Island; and

(4) Greater coordination among cities and towns will enable more efficient allocation of infrastructure resources by the state of Rhode Island.

24-18-3. Definitions. -- As used in this chapter, the following terms, unless the context requires a different interpretation, shall have the following meanings:

(1) "Agency" means the Rhode Island clean water finance agency as set forth in chapter 46-12.2; 

(2) "Annual construction plan" means the finalized list of approved projects to commence construction each calendar year;

(3) "Approved project" means any project approved by the agency for financial assistance;

(4) "Department" means the department of transportation, or, if the department shall be abolished, the board, body, or commission succeeding to the principal functions thereof or upon whom the powers given by chapter 5 of title 37 to the department shall be given by law.

(5) "Eligible project" means an infrastructure plan, or portion of an infrastructure plan, that meets the project evaluation criteria;

(6) "Financial assistance" means any form of financial assistance other than grants provided by the agency to a city or town in accordance with this chapter for all or any part of the cost of an approved project, including, without limitation, temporary and permanent loans, with or without interest, guarantees, insurance, subsidies for the payment of debt service on loans, lines of credit, and similar forms of financial assistance;

(7) "Infrastructure plan" means a project proposed by a city or town that would make capital improvements to roads, bridges and appurtenances thereto consistent with project evaluation criteria;

(8) "Market rate" means the rate the city or town would receive in the open market at the time of the original loan agreement as determined by the agency in accordance with its rules and regulations;

(9) "Project evaluation criteria" means the criteria used by the department to evaluate infrastructure plans and rank eligible projects and shall include the extent to which the project generates economic benefits, the extent to which the project would be able to proceed at an earlier date, the likelihood that the project would provide mobility benefits, the cost effectiveness of the project, the likelihood that the project would increase safety, and the project’s readiness to proceed within the forthcoming calendar year;

(10) "Project priority list" means the list of eligible projects ranked in the order in which financial assistance shall be awarded by the agency pursuant to section 7 of this chapter;

(11) "Revolving fund" means the municipal road and bridge revolving fund established under section 4 of this chapter; and

(12) "Subsidy assistance" means credit enhancements and other measures to reduce the borrowing costs for a city or town.

24-18-4. Establishment of the municipal road and bridge revolving fund. -- (a) There is hereby established a municipal road and bridge revolving fund. The agency shall establish and set up on its books the revolving fund, to be held in trust and to be administered by the agency solely as provided in this chapter and in any trust agreement securing bonds of the agency. The agency shall deposit the following monies into the fund:

(1) Amounts appropriated or designated to the agency by the state for the purposes of this chapter;

(2) Loan repayments and other payments received by the agency pursuant to loan agreements with cities and towns executed in accordance with this chapter;

(3) Investment earnings on amounts credited to the fund;

(4) Proceeds of bonds of the agency to the extent required by any trust agreement for such bonds;

(5) Administrative fees levied by the agency;

(6) Other amounts required by provisions of this chapter or agreement, or any other law or any trust agreement pertaining to bonds to be credited to the revolving fund; and

(7) Any other funds permitted by law which the agency in its discretion shall determine to credit thereto. 

(b) The agency shall establish and maintain fiscal controls and accounting procedures conforming to generally accepted government accounting standards sufficient to ensure proper accounting for receipts in and disbursements from the revolving fund.

24-18-5. Administration. -- (a) The agency shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter including, without limiting the generality of the preceding statement, the authority:

(1) To receive and disburse such funds from the state as may be available for the purpose of the revolving fund subject to the provisions of this chapter;

(2) To make and enter into binding commitments to provide financial assistance to local cities and towns from amounts on deposit in the revolving fund;

(3) To enter into binding commitments to provide subsidy assistance for loans and city and town obligations from amounts on deposit in the revolving fund;

(4) To levy administrative fees on cities and towns as necessary to effectuate the provisions of this chapter, provided the fees have been previously authorized by an agreement between the agency and the city or town;

(5) To engage the services of third-party vendors to provide professional services; and

(6) To establish one or more accounts within the revolving fund; and

(7) Such other authority as granted to the agency under chapter 46-12.2. 

(b) Subject to the provisions of this chapter, to the provisions of any agreement with the state authorized by section 24-18-6, and to any agreements with the holders of any bonds of the agency or any trustee therefor, amounts held by the agency for the account of the revolving fund shall be applied by the agency, either by direct expenditure, disbursement, or transfer to one or more other funds and accounts held by the agency or maintained under any trust agreement pertaining to bonds, either alone or with other funds of the agency, to the following purposes:

(1) To provide financial assistance to cities and towns to finance costs of approved projects, and to refinance the costs of the projects, subject to such terms and conditions, if any, as are determined by the department and/or the agency in accordance with section 24-18-7;

(2) To fund reserves for bonds of the agency and to purchase insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to otherwise provide security for, and a source of payment for obligations of the agency, by pledge, lien, assignment, or otherwise as provided in chapter 46-12.2;

(3) To pay expenses of the agency and the department in administering the revolving fund. As part of the annual appropriations bill, the department shall set forth the gross amount of expenses received from the agency and a complete, specific breakdown of the sums retained and/or expended for administrative expenses;

(4) To pay or provide for subsidy assistance equivalent to one third (1/3) of the market rate or such other subsidy assistance as determined by the agency;

(5) To provide a reserve for, or to otherwise secure, amounts payable by cities and towns on loans and city and town obligations outstanding in the event of default thereof; amounts in any account in the revolving fund may be applied to defaults on loans outstanding to the city or town for which the account was established and, on a parity basis with all other accounts, to defaults on any loans or city or town obligations outstanding; and

(6) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or otherwise as provided in chapter 46-12.2, any bonds of the agency.

(c) In addition to other remedies of the agency under any loan agreement or otherwise provided by law, the agency may also recover from a city or town, in an action in superior court, any amount due the agency together with any other actual damages the agency shall have sustained from the failure or refusal of the city or town to make the payments or abide by the terms of the loan agreement.

(d)  Within ninety (90) days after the end of each fiscal year, the agency shall submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state of its activities during that fiscal year. The report shall provide: a summary of the agency's meetings including when the agency met, subjects addressed, decisions rendered and meeting minutes; a summary of the agency's actions including a listing of rules, regulations, or procedures adopted or amended, applications received for financial assistance for contracts or agreements entered into, applications and intended use plans submitted to federal agencies for capitalization grants, properties acquired or leased, and bonds issued; a synopsis of any complaints, suspensions, or other legal matters related to the authority of the agency; a consolidated financial statement of all funds received and disbursed by the agency including the source of and recipient of the funds which shall be audited by an independent certified public accountant firm; copies of audits or reports required under federal law; a listing of the staff and/or consultants employed by the agency; a listing of findings and recommendation derived from agency activities; and a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies. The report shall be posted as prescribed in § 42-20-8.2. The director of the department of administration shall be responsible for the enforcement of this provision. The initial report shall be due no later than January 1, 2015.

24-18-6. Payment of state funds. -- (a) Subject to the provisions of subsection (b), upon the written request of the agency, the general treasurer shall pay to the agency, from time to time, from the proceeds of any bonds or notes issued by the state for the purposes of this chapter or funds otherwise lawfully payable to the agency for the purposes of this chapter, such amounts as shall have been appropriated or lawfully designated for the revolving fund. All amounts so paid shall be credited to the revolving fund in addition to any other amounts credited or expected to be credited to the revolving fund.

(b) The agency and the state shall enter into, execute, and deliver one or more agreements setting forth or otherwise determining the terms, conditions, and procedures for, and the amount, time, and manner of payment of, all amounts available from the state to the agency under this section.

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 42-35.

(b) Beginning with the calendar year 2013 and for each calendar year thereafter, cities and towns shall have from September 15th through October 15th to submit an infrastructure plan to the department. In the event that October 15th is a Saturday, Sunday, or a general holiday as enumerated in section 25-1-1, the deadline shall be extended through the next day that is not a Saturday, Sunday, or a general holiday as enumerated in section 25-1-1.

(c) By the end of each calendar year, 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 for the forthcoming calendar year.

(d) By the end of each calendar year, the agency shall determine the maximum amount of financial assistance available for the forthcoming calendar year, provided that it shall not exceed an amount of twenty million dollars ($20,000,000); and provided further that 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 provided, however, that the agency does not exceed its maximum annual amount of financial assistance. The agency may decline to award financial assistance to an approved project which 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.

24-18-8. Inspection of approved projects. -- For any approved project, the department shall have the authority to inspect the construction and operation thereof to ensure compliance with the provisions of this chapter.

24-18-9. Expenses incurred by the department. -- (a) In order to provide for the expenses of the department under this chapter, the agency shall transfer to the department an amount from the revolving fund equal to the amount authorized by the general assembly.

24-18-10. Severability. -- If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

SECTION 1. Sections 46-12.2-4, 46-12.2-14, 46-12.2-15, 46-12.2-16, 46-12.2-17, 46-12.2-18, 46-12.2-19, 46-12.2-20, 46-12.2-21, 46-12.2-22 and 46-12.2-25 of the General Laws in Chapter 46-12.2 entitled "Rhode Island Clean Water Finance Agency" are hereby amended to read as follows:

46-12.2-4. General powers and duties of agency. -- (a) The agency shall have all powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter and chapter 24-18, including without limiting the generality of the foregoing, the powers and duties:

(1) To adopt and amend bylaws, rules, regulations, and procedures for the governance of its affairs, the administration of its financial assistance programs, and the conduct of its business;

(2) To adopt an official seal;

(3) To maintain an office at such place or places as it may determine;

(4) To adopt a fiscal year;

(5) To adopt and enforce procedures and regulations in connection with the performance of its functions and duties;

(6) To sue and be sued;

(7) To employ personnel as provided in § 46-12.2-5, and to engage accounting, management, legal, financial, consulting and other professional services;

(8) Except as provided in this chapter, to receive and apply its revenues to the purposes of this chapter without appropriation or allotment by the state or any political subdivision thereof;

(9) To borrow money, issue bonds, and apply the proceeds thereof, as provided in this chapter and chapter 24-18, and to pledge or assign or create security interests in revenues, funds, and other property of the agency and otherwise as provided in this chapter and chapter 24-18, to pay or secure the bonds; and to invest any funds held in reserves or in the water pollution control revolving fund, the Rhode Island water pollution control revolving fund, the municipal road and bridge fund established under chapter 24-18, or the local interest subsidy trust fund, or any revenues or funds not required for immediate disbursement, in such investments as may be legal investments for funds of the state;

(10) To obtain insurance and to enter into agreements of indemnification necessary or convenient to the exercise of its powers under this chapter and chapter 24-18;

(11) To apply for, receive, administer, and comply with the conditions and requirements respecting any grant, gift, or appropriation of property, services, or moneys;

(12) To enter into contracts, arrangements, and agreements with other persons, and execute and deliver all instruments necessary or convenient to the exercise of its powers under this chapter and chapter 24-18; such contracts and agreements may include without limitation, loan agreements with local governmental units, capitalization grant agreements, intended use plans, operating plans, and other agreements and instruments contemplated by title VI of the Clean Water Act, 33 U.S.C. § 1381 et seq., or this chapter, agreement and instruments contemplated by chapter 24-18, grant agreements, contracts for financial assistance or other forms of assistance from the state or the United States, and trust agreements and other financing agreements and instruments pertaining to bonds;

(13) To authorize a representative to appear on its own behalf before other public bodies, including, without limiting the generality of the foregoing, the congress of the United States, in all matters relating to its powers and purposes;

(14) To provide financial assistance to local governmental units to finance costs of approved projects, and to acquire and hold local governmental obligations at such prices and in such manner as the agency shall deem advisable, and sell local governmental obligations acquired or held by it at prices without relation to cost and in such manner as the agency shall deem advisable, and to secure its own bonds with such obligations all as provided in this chapter and chapter 24-18;

(15) To establish and collect such fees and charges as the agency shall determine to be reasonable;

(16) To acquire, own, lease as tenant, or hold real, personal or mixed property or any interest therein for its own use; and to improve, rehabilitate, sell, assign, exchange, lease as landlord, mortgage, or otherwise dispose of or encumber the same;

(17) To do all things necessary, convenient, or desirable for carrying out the purposes of this chapter and chapter 24-18 or the powers expressly granted or necessarily implied by this chapter and chapter 24-18;

(18) To conduct a training course for newly appointed and qualified members and new designees of ex-officio members within six (6) months of their qualification or designation. The course shall be developed by the executive director, approved by the board of directors, and conducted by the executive director. The board of directors may approve the use of any board of directors or staff members or other individuals to assist with training. The training course shall include instruction in the following areas: the provisions of chapters 46-12.2, 42-46, 36-14, and 38-2; and the agency's rules and regulations. The director of the department of administration shall, within ninety (90) days of the effective date of this act [July 15, 2005], prepare and disseminate, training materials relating to the provisions of chapters 42-46, 36-14 and 38-2; and

(19) Upon the dissolution of the water resources board (corporate) pursuant to § 46-15.1-22, to have all the powers and duties previously vested with the water resources board (corporate), as provided pursuant to chapter 46-15.1.

(20) To meet at the call of the chair at least eight (8) times per year. All meetings shall be held consistent with chapters 42-46.

(b) Notwithstanding any other provision of this chapter, the agency shall not be authorized or empowered:

(1) To be or to constitute a bank or trust company within the jurisdiction or under the control of the department of banking and insurance of the state, or the commissioner thereof, the comptroller of the currency of the United States of America, or the Treasury Department thereof; or

(2) To be or constitute a bank, banker or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange, or securities dealers' law of the United States or the state.

46-12.2-14. Bonds of the agency. -- (a) The agency may provide by resolution of the board of directors for the issuance, from time to time, of bonds of the agency for any of its corporate purposes, including those set forth in chapter 24-18, or for the borrowing of money in anticipation of the issuance of the bonds. Bonds issued by the agency may be issued as general obligations of the agency or as special obligations payable solely from particular revenues or funds as may be provided for in any trust agreement or other agreement securing bonds. The agency may also provide by resolution of the board of directors for the issuance, from time to time, of temporary notes in anticipation of the revenues to be collected or received by the agency, including, without limitation, in anticipation of any payments to the agency from the state pursuant to section 46-12.2-7, or in anticipation of the receipt of other grants or aid. The issue of notes shall be governed by the provisions of this chapter and chapter 24-18, as applicable,  relating to the issue of bonds of the agency other than temporary notes as this chapter these chapters may be applicable; provided, however, that notes issued in anticipation of revenues shall mature no later than one year from their respective dates, or the date of expected receipt of the revenues, if later, and notes issued in anticipation of grants, or other aid and renewals thereof, shall mature no later than six (6) months after the expected date of receipt of the grant or aid.

 (b) The bonds of each issue shall be dated, may bear interest at such rate or rates, including rates variable from time to time as determined by such index, banker's loan rate, or other method determined by the agency, and shall mature or otherwise be payable at such time or times, as may be determined by the agency, and may be made redeemable before maturity at the option of the agency or the holder thereof at such price or prices and under such terms and conditions as may be fixed by the agency. The agency shall determine the form of bonds, and the manner of execution of the bonds, and shall fix the denomination or denominations of the bonds, and the place or places of payment of principal, redemption premium, if any, and interest, which may be paid at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds shall cease to be the officer before the delivery thereof, the signature or facsimile shall nevertheless be valid and sufficient for all purposes as if the officer had remained in office until delivery. The agency may provide for authentication of bonds by a trustee, fiscal agent, registrar, or transfer agency. Bonds may be issued in bearer or in registered form, or both, and, if notes, may be made payable to the bearer or to order, as the agency may determine. The agency may also establish and maintain a system of registration for any bonds whereby the name of the registered owner, the rights evidenced by the bonds, the transfer of the bonds, and the rights and other similar matters, are recorded in books or other records maintained by or on behalf of the agency, and no instrument evidencing the bond or rights need be delivered to the registered owner by the agency. A copy of the books or other records of the agency pertaining to any bond registered under a registration system certified by an authorized officer of the agency or by the agent of the agency maintaining the system shall be admissible in any proceeding without further authentication. The board of directors may by resolution delegate to any member or officer of the agency, or any combination thereof, the power to determine any of the matters set forth in this section. In the discretion of the agency, bonds of the agency may be issued with such terms as will cause the interest thereon to be subject to federal income taxation. The agency may sell its bonds in such manner, either at public or private sale, for the price, at the rate or rates of interest, or at discount in lieu of interest, as it may determine will best effect the purposes of this chapter or chapter 24-18, as applicable.

 (c) The agency may issue interim receipts or temporary bonds, exchangeable for definitive bonds, when the bonds shall have been executed and are available for delivery. The agency may also provide for the replacement of any bonds which shall have become mutilated or shall have been destroyed or lost. The agency, by itself or through such agency as it may select, may purchase and invite offers to tender for purchase any bonds of the agency at any time outstanding; provided, however, that no purchase by the agency shall be made at a price, exclusive of accrued interest, if any, exceeding the principal amount thereof or, if greater, the redemption price of the bonds when next redeemable at the option of the agency, and may resell any bonds so purchased in such manner and for such price as it may determine will best effect the purposes of this chapter or chapter 24-18, as applicable.

 (d) In the discretion of the board of directors, any bonds issued under this section may be secured by a trust agreement in such form and executed in such manner as may be determined by the board of directors, between the agency and the purchasers or holders of the bonds, or between the agency and a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the state. The trust agreement may pledge or assign, in whole or in part, any loan agreements and local governmental obligations, and the revenues, funds, and other assets or property held or to be received by the agency, including without limitation all moneys and investments on deposit from time to time in the water pollution control revolving fund, the Rhode Island water pollution control revolving fund, and the local interest subsidy trust fund, or the municipal road and bridge revolving fund, as applicable, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the agency, and the proceeds thereof. The trust agreement may contain such provisions for protecting and enforcing the rights, security, and remedies of the bondholders as may be reasonable and proper including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event thereof which may include the acceleration of maturities, restrictions on the individual right of action by bondholders, and covenants setting forth the duties of and limitations on the agency in relation to the custody, safeguarding, investment, and application of moneys, the enforcement of loan agreements and local governmental obligations, the issue of additional or refunding bonds, the fixing, revision, charging, and collection of charges, the use of any surplus bond proceeds, the establishment of reserves, and the making and amending of contracts.

 (e) In the discretion of the board of directors, any bonds issued under authority of this chapter or chapter 24-18 may be issued by the agency in the form of lines of credit or other banking arrangements under terms and conditions, not inconsistent with this chapter or chapter 24-18, and under such agreements with the purchasers or makers thereof or any agent or other representative of such purchasers or makers, as the board of directors may determine to be in the best interests of the agency. In addition to other security provided herein or otherwise by law, bonds issued by the agency under any provision of this chapter or chapter 24-18  may be secured, in whole or in part, by financial guarantees, by insurance, or by letters or lines of credit issued to the agency or a trustee or any other person, by any bank, trust company, insurance or surety company, or other financial institution, within or without the state, and the agency may pledge or assign, in whole or in part, any loan agreements and local governmental obligations, and the revenues, funds, and other assets and property held or to be received by the agency, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the agency, and the proceeds thereof, as security for the guarantees or insurance or for the reimbursement by the agency to any issuer of the line or letter of credit.

 (f) It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues, or other moneys under a trust agreement of the agency, and to furnish indemnification and to provide security as may be required by the agency. It is hereby declared that any pledge or assignment made by the agency under this chapter or chapter 24-18 is an exercise of the governmental powers of the agency, and loan agreements, local governmental obligations, revenues, funds, assets, property, and contract or other rights to receive the same and the proceeds thereof, which are subject to the lien of a pledge or assignment created under this chapter or chapter 24-18, shall not be applied to any purposes not permitted by the pledge or assignment.

 (g) Any holder of a bond issued by the agency under the provisions of this chapter or chapter 24-18 and any trustee or other representative under a trust agreement securing the trustee or representative, except to the extent the rights herein given may be restricted by the trust agreement, may bring suit upon the bonds in the superior court and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and enforce any and all rights under the laws of the state or granted hereunder or under the trust agreement, and may enforce and compel performance of all duties required by this chapter, chapter 24-18, or by the trust agreement, to be performed by the agency or by any officer thereof.

46-12.2-15. Refunding bonds. -- The agency may issue refunding bonds for the purpose of paying any of its bonds, issued pursuant to this chapter or chapter 24-18, at or prior to maturity or upon acceleration or redemption or purchase and retirement. Refunding bonds may be issued at such times at or prior to the maturity, redemption, or purchase and retirement of the refunded bonds as the board of directors deems to be in the interest of the agency. Refunding bonds may be issued in sufficient amounts to pay or provide for payment of the principal of the bonds being refunded, together with any redemption premium thereon, any interest or discount accrued or to accrue to the date of payment of the bonds, the costs of issuance of the refunding bonds, the expenses of paying, redeeming, or purchasing the bonds being refunded, the costs of holding and investing proceeds of refunding bonds pending payment, redemption, or purchase and reserves for debt service or other expenses from the proceeds of refunding bonds as may be required by a trust agreement securing the bonds. Pending application, the proceeds of the refunding bonds may be placed in escrow. The issue and sale of refunding bonds, the maturities, and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties, and obligations of the agency in respect of the same shall be governed by the provisions of this chapter and chapter 24-18, as applicable, relating to the issue of bonds other than refunding bonds insofar as this chapter these chapters may be applicable.

46-12.2-16. Bonds eligible for investment. -- Bonds issued by the agency under this chapter or chapter 24-18 and local governmental obligations issued hereunder are hereby made securities in which all public officers and agencies of the state and its political subdivisions, all insurance companies, trust companies in their commercial departments, savings banks, cooperative banks, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly invest funds, including capital in their control or belonging to them. The bonds and local governmental obligations are hereby made securities which may properly be deposited with and received by any state or municipal officer of any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state or any political subdivision is now or may hereafter be authorized by law.

46-12.2-17. No additional consent required. -- Except as provided in this section, bonds and local governmental obligations may be issued under this chapter or chapter 24-18 without obtaining the consent of any executive office, department, division, commission, board, bureau, or agency of the state or any political subdivision thereof, and without any other proceedings or the happening of any condition, or acts other than those proceedings, conditions, or acts which are specifically required therefor hereunder or under any applicable bond act, and the validity of and security for any bonds issued by the agency pursuant to this chapter or chapter 24-18, and any local governmental obligations issued in accordance herewith, shall not be affected by the existence or nonexistence of any consent or other proceedings, conditions, or acts. Nothing in this chapter or chapter 24-18 shall exempt the agency from the provisions of chapter 10.1 of title 42 entitled "Public Finance Management Board," and the Narragansett Bay water quality management district commission shall not issue any bonds, notes, or other indebtedness without the approval of the division of public utilities as required by section 39-3-15.

46-12.2-18. Bonds not obligations of the state. -- Bonds issued by the agency under the provisions of this chapter or chapter 24-18 shall not be deemed to be a debt or a pledge of the faith and credit of the state or of any of its political subdivisions, but shall be payable solely from the revenues, funds, assets, and other property of the agency from which they are made payable pursuant to this chapter or chapter 24-18. Bonds issued by the agency under the provisions of this chapter and chapter 24-18 shall recite that neither the state nor any political subdivisions thereof shall be obligated to pay the bonds, and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal of or interest on the bonds. Further, every bond shall recite whether it is a general obligation of the agency, or a special obligation thereof payable solely from particular revenues, funds, assets, or other property pledged to its payment.

46-12.2-19. Lien status -- Recording. -- (a) Notwithstanding any provision of any other law, including the Uniform Commercial Code:

 (1) Any pledge or assignment of revenues of any kind, funds, loan agreements, local governmental obligations, property, or assets made pursuant to the provisions of this chapter  or chapter 24-18 by the agency, or any local governmental unit hereunder, shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise, whether or not the parties have notice thereof, and shall be deemed continuously perfected from the time it is made;

 (2) No filing of any kind with respect to a pledge or assignment need be made under the Uniform Commercial Code, as amended, or otherwise;

 (3) Unless otherwise provided in the loan agreement, a pledge of revenues of any kind shall be deemed to include a pledge of any accounts or general intangibles from which the pledged revenues are derived, whether existing at the time of the pledge or thereafter coming into existence, and whether held at the time of the pledge or thereafter acquired by the agency or local governmental unit, and the proceeds of the accounts or general intangibles; and

 (4) The pledge of revenues of any kind, accounts, and general intangibles shall be subject to the lien of the pledge without delivery or segregation, and the lien of the pledge shall be valid and binding against all parties having claims of contract or tort or otherwise against the agency or local governmental unit.

 (b) A pledge of revenues of any kind under this chapter or chapter 24-18 shall constitute a sufficient appropriation thereof for the purposes of any provision for appropriation, and the revenues may be applied as required by the pledge without further appropriation.

 (c) For the purposes of this section, the word "pledge" shall be construed to include the grant of a security interest under the Uniform Commercial Code.

46-12.2-20. Bonds and local government obligations as investment securities. -- Notwithstanding any of the provisions of this chapter, chapter 24-18, or any recitals in any bonds or local governmental obligations issued hereunder, all bonds and local governmental obligations shall be deemed to be investment securities under the Uniform Commercial Code.

46-12.2-21. Proceeds received by agency as trust funds. -- All moneys received by the agency pursuant to the provisions of this chapter or chapter 24-18, whether as proceeds from the issue of bonds or as revenues or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this chapter these chapters.

46-12.2-22. Tax exemption. -- Bonds issued by the agency and local governmental obligations issued by any local governmental unit in accordance with this chapter or chapter 24-18, their transfer and the income therefrom, including any profit made on the sale thereof, shall, at all times, be exempt from taxation by and within the state. The agency shall not be required to pay any taxes, assessments, or excises upon its income, existence, operation, or property.

46-12.2-25. Supplemental powers -- Inconsistent laws. -- The provisions of this chapter and chapter 24-18 shall be deemed to provide an additional, alternative, and complete method for accomplishing the purposes of this chapter these chapters, and shall be deemed and construed to be supplemental and additional to, and not in derogation of, powers conferred upon the agency, the department, and local governmental units by other laws; provided, however, that insofar as the provisions of this chapter these chapters are inconsistent with the provisions of any general or special law, municipal charter, administrative order or regulations, the provisions of this chapter these chapters shall be controlling. Any amounts appropriated by this chapter these chapters to the agency or the department shall be in addition to any other amounts appropriated to the agency or the department by any other law.

SECTION 2.  This article shall take effect upon passage.


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ARTICLE 21

RELATING TO RHODE ISLAND PUBLIC TRANSIT AUTHORITY

SECTION 1. Section 42-11-2.4 of the General Laws in Chapter 42-11 entitled "Department of Administration" is hereby amended to read as follows:

 42-11-2.4. State Fleet Replacement Revolving Loan Fund. -- (a) There is hereby created as a separate fund within the treasury to be known as the state fleet replacement revolving loan fund which shall be administered by the general treasurer in accordance with the same laws and fiscal procedures as the general funds of the state. This fund, hereafter referred to as the "revolving loan fund", shall consist of such sums as the state may from time to time appropriate, as well as money received from the disposal of used vehicles, loan, interest and service charge payments from benefiting state agencies, as well as interest earnings, money received from the federal government, gifts, bequests, donations, or otherwise from any public or private source.

(b) This fund shall be used for the purpose of acquiring motor vehicles, both new and used, and vehicle-related equipment and attachments for state departments and agencies.               

(c) The proceeds from the repayment of any loans made for the purposes authorized under this chapter shall be deposited in and returned to the revolving loan fund in order to constitute a continuing revolving fund for the purposes listed above.

(d) The office of state fleet operations of the Rhode Island department of administration shall adopt rules and regulations consistent with the purposes of this chapter and chapter 35 of title 42, in order to provide for the orderly and equitable disbursement and repayment of funds from the revolving loan fund.

 (e) Provided; however, a total of four million two hundred thousand dollars ($4,200,000) shall be made available as a direct grant from the revolving loan fund for the required twenty percent (20%) match for the Rhode Island Public Transit Authority to obtain federal funds to purchase buses through FY 2017. Any such sums need not be repaid to the revolving loan fund.

SECTION 2. This article shall take effect upon passage.

 


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ARTICLE 22 AS AMENDED

RELATING TO HISTORIC TAX CREDITS

SECTION 1. Historic Preservation Tax Credit Fund

WHEREAS, the General Assembly finds that the State of Rhode Island tax credits earned pursuant to Rhode Island General Laws sections 44-33.2-1 et seq. (the "Historic Tax Credits") have had and continue to have the desired effect of stimulating, promoting and encouraging the redevelopment and reuse of historic structures by modern commercial, residential and manufacturing enterprises in order to foster civic beauty, promote public education, pleasure and welfare and otherwise generally improve and enhance the long-term economic well-being of the citizens and municipalities of the State of Rhode Island; and

WHEREAS, the 2008 General Assembly authorized Rhode Island Economic Development Corporation (the "RIEDC") to issue not more than three hundred fifty-six million two hundred thousand dollars ($356.2 million) of Revenue Bonds – Historic Structures Tax Credit Financing Taxable Series to assist in the future cost of the Historic Structures Tax Credit Program; and

WHEREAS, this three hundred fifty-six million two hundred thousand dollars ($356.2 million) authorization included two hundred ninety-nine million nine hundred thousand dollars ($299.9 million) to be deposited into the project fund, and the balance was authorized for a debt service reserve fund and cost of issuance; and

WHEREAS, allowing tax credits formerly issued to projects declared abandoned by the Division of Taxation on May 15, 2013 to be reissued would stimulate and encourage the redevelopment and reuse of historic structures by modern commercial, residential and manufacturing enterprises in order to foster civic beauty, promote public education, pleasure and welfare and otherwise generally improve and further enhance the long-term economic well-being of the citizens and municipalities of the State of Rhode Island; now, therefore, be it

RESOLVED, that the RIEDC is authorized to continue with the financing as detailed in the 2008 Joint Resolution and the General Assembly hereby reaffirms the RIEDC’s issuance of not more than $356.2 million in Bonds; and be it further

RESOLVED, that the original amount of bonds authorized to be issued for deposit in the project fund of $299.9 million shall be the maximum amount that can be issued to pay processing fee reimbursements on abandoned projects and to reimburse the State of Rhode Island for tax credits issued on original projects or those approved after July 1, 2013, recognizing that savings from currently abandoned projects have primarily offset the lower interest earnings on bond proceeds and the processing fees originally anticipated in 2008; and be it further

RESOLVED, that the RIEDC is authorized to use the Bond proceeds to pay processing fee reimbursements and to reimburse the State of Rhode Island for Historic Tax Credits approved in accordance with Rhode Island General Laws chapter 44-33.2 or 44-33.6 as well as any project approved on or after July 1, 2013; and be it further

RESOLVED, that the RIEDC shall continue to request the Governor to include in each of the fiscal years following the issuance of the Bonds by the RIEDC an amount equal to the debt service of the Bonds pursuant to the terms set forth in this Resolution; and be it further

RESOLVED, that neither the Bonds nor the Payment Agreement shall constitute indebtedness of the State or any of its subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is pledged, except to the extent that the State appropriates funds for the Bonds or the Payment Agreement subject to annual budget appropriations.

SECTION 2. Title 44 of the General Laws entitled "TAXATION" is hereby amended by adding thereto the following chapter:

CHAPTER 33.6
HISTORIC PRESERVATION TAX CREDITS 2013

44-33.6-1. Declaration of purpose. -- The general assembly finds and declares that Rhode Island's historic structures continue to experience high vacancy rates and physical deterioration, particularly in Rhode Island's central business districts. Without adding economic incentive, these structures are not viable for the redevelopment and reuse by modern commercial, residential or manufacturing enterprises and will continue their physical deterioration. The redevelopment and reuse of these historic structures are of critical importance to the economic measures and will assist in stimulating the reuse and redevelopment of historic structures and will improve property values, foster civic beauty, create employment opportunities, enhance commerce, and promote public education, pleasure, and welfare. Furthermore, during this unprecedented economic climate, many in the building and construction trades, and related service industries, have been severely impacted. The redevelopment and reuse of these historic structures will serve as a vital catalyst in the recovery of these trades and services, in addition to stimulating various other related economic benefits and business activities. The purpose of this chapter is to create economic incentives for the purpose of stimulating the redevelopment and reuse of Rhode Island's historic structures, as well as to generate the positive economic and employment activities that will result from such redevelopment and reuse.

44-33.6-2. Definitions. -- As used in this chapter:

(1) "Certified historic structure" means a property which is located in the state of Rhode Island and is:

(i) Listed individually on the national register of historic places; or

(ii) Listed individually in the state register of historic places; or

(iii) Located in a registered historic district and certified by either the commission or Secretary of the Interior as being of historic significance to the district.

(2) "Certified rehabilitation" means any rehabilitation of a certified historic structure consistent with the historic character of such property or the district in which the property is located as determined by the commission guidelines.

(3) "Substantial Construction" means that: (i) the owner of a certified historic structure has entered into a contract with the division of taxation and paid the processing fee; (ii) the commission has certified that the certified historic structure’s rehabilitation will be consistent with the standards set forth in this chapter; and (iii) the owner has expended ten percent (10%) of its qualified rehabilitation expenditures, estimated in the contract entered into with the division of taxation for the project or its first phase of a phased project.

(4) "Commission" means the Rhode Island historical preservation and heritage commission created pursuant to section 42-45-2.

(5) "Exempt from real property tax" means, with respect to any certified historic structure, that the structure is exempt from taxation pursuant to section 44-3-3.

(6) "Hard construction costs" means the direct contractor costs for labor, material, equipment, and services associated with an approved project, contractors overhead and profit, and other direct construction costs.

(7) "Holding period" means twenty-four (24) months after the commission issues a certificate of completed work to the owner. In the case of a rehabilitation which may reasonably be expected to be completed in phases as described in subdivision (15) of this section, "holding period" shall be extended to include a period of time beginning on the date of issuance of a certificate of completed work for the first phase or phases for which a certificate of completed work is issued and continuing until the expiration of twenty-four (24) months after the certificate of completed work issued for the last phase.

(8) "Part 2 application" means the Historic Preservation Certification Application Part 2-Description of Rehabilitation.

(9) "Placed in service" means that substantial rehabilitation work has been completed which would allow for occupancy of the entire structure or some identifiable portion of the structure, as established in the Part 2 application.

(10) "Principal residence" means the principal residence of the owner within the meaning of section 121 of the Internal Revenue Code [26 U.S.C. 121] or any successor provision.

(11) "Qualified rehabilitation expenditures" means any amounts expended in the rehabilitation of a certified historic structure properly capitalized to the building and either:

(i) Depreciable under the Internal Revenue Code, 26 U.S.C. section 1 et seq., or

(ii) Made with respect to property (other than the principal residence of the owner) held for sale by the owner. Fees paid pursuant to this chapter are not qualified rehabilitation expenditures. Notwithstanding the foregoing, except in the case of a nonprofit corporation, there will be deducted from qualified rehabilitation expenditures for the purposes of calculating the tax credit any funds made available to the person (including any entity specified in section 44-33.5-3(a)) incurring the qualified rehabilitation expenditures in the form of a direct grant from a federal, state or local governmental entity or agency or instrumentality of government.

(12) "Registered historic district" means any district listed in the national register of historic places or the state register of historic places.

(13) "Remain idle" means that substantial work has ceased at the subject project; work crews have been reduced by more than twenty-five percent (25%) for reasons unrelated to scheduled completion of work in accordance with the project schedule, reasonably unanticipated physical conditions, or force majeure; or the project schedule that was originally submitted by the taxpayer to the commission has been extended by more than twelve (12) months for reasons other than reasonably unanticipated physical conditions or an event of force majeure (by way of example, and not in limitation, any delays, work stoppage, or work force reduction caused by issues with project funding, finances, disputes, or violation of laws shall be deemed to cause a project to remain idle).

(14) "Scattered Site Development" means a development project for which the developer seeks unified financing to rehabilitate dwelling units in two (2) or more buildings located in an area that is defined by a neighborhood revitalization plan and is not more than one mile in diameter.

(15) "Social club" means a corporation or other entity and/or its affiliate that offers its facilities primarily to members for social or recreational purposes and the majority source of its revenue is from funds and/or dues paid by its members and/or an entity defined as a social club pursuant to the Internal Revenue Code section 501(c)(7).

(16) "Substantial rehabilitation" means, with respect to a certified historic structure, that the qualified rehabilitation expenses of the building during the twenty-four (24) month period selected by the taxpayer ending with or within the taxable year exceed the adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation, which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the above definition shall be applied by substituting "sixty (60) month period" for "twenty-four (24) month period".

(17) "Trade or business" means an activity that is carried on for the production of income from the sale or manufacture of goods or performance of services, excluding residential rental activity.

44-33.6-3. Tax credit. -- (a) Subject to the maximum credit provisions set forth in subsections (c) and (d) below, any person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of a certified historic structure, provided the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as certified by the commission and said person, firm, partnership, trust, estate, limited liability company, corporation or other business entity is not a social club as defined in subdivision 44-33.6-2 (13) of this chapter, shall be entitled to a credit against the taxes imposed on such person or entity pursuant to chapter 11, 12, 13, 14, 17 or 30 of this title in an amount equal to the following: 

(1) Twenty percent (20%) of the qualified rehabilitation expenditures; or

(2) Twenty-five percent (25%) of the qualified rehabilitation expenditures provided that either:

(i) At least twenty-five percent (25%) of the total rentable area of the certified historic structure will be made available for a trade or business; or

(ii) The entire rentable area located on the first floor of the certified historic structure will be made available for a trade or business.

(b) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in which such certified historic structure or an identifiable portion of the structure is placed in service provided that the substantial rehabilitation test is met for such year.

(c) Maximum project credit. - The credit allowed pursuant to this chapter shall not exceed five million dollars ($5,000,000) for any certified rehabilitation project under this chapter.  No building to be completed in phases or in multiple projects shall exceed the maximum project credit of five million dollars ($5,000,000) for all phases or projects involved in the rehabilitation of such building.

(d) Maximum aggregate credits. - The aggregate credits authorized to be reserved pursuant to this chapter shall not exceed sums estimated to be available in the historic preservation tax credit trust fund pursuant to this chapter

(e) Subject to the exception provided in subsection (g) of this section, if the amount of the tax credit exceeds the taxpayer's total tax liability for the year in which the substantially rehabilitated property is placed in service, the amount that exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until the full credit is used, whichever occurs first for the tax credits. Credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the persons designated as partners, members or owners respectively pro rata or pursuant to an executed agreement among such persons designated as partners, members or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity. Credits may be allocated to partners, members or owners that are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code and these partners, members or owners must be treated as taxpayers for purposes of this section.

(f) If the taxpayer has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity, including, but not limited to, condominium owners in the event the certified historic structure is converted into condominiums and assignees of the credits that have not claimed the tax credits in whole or part may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to chapter 11, 12, 13, (other than the tax imposed under section 44-13-13), 14, 17 or 30 of this title. The assignee may apply the tax credit against taxes imposed on the assignee until the end of the tenth calendar year after the year in which the substantially rehabilitated property is placed in service or until the full credit assigned is used, whichever occurs first. Fiscal year assignees may claim the credit until the expiration of the fiscal year that ends within the tenth year after the year in which the substantially rehabilitated property is placed in service. The assignor shall perfect the transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the division of taxation to administer and carry out the provisions of this section.

For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title. If a tax credit is subsequently recaptured under this chapter, revoked or adjusted, the seller's tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of this title. In the event that the seller is not a natural person, the seller's tax calculation under chapters 11, 12, 13 (other than with respect to the tax imposed under section 44-13-13), 14, 17, or 30 of this title, as applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the total amount of the sales proceeds without proration. 

(g) Credits allowed to partners, members or owners that are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code, and only said credits, shall be fully refundable.

(h) Substantial rehabilitation of property that either:

(1) Is exempt from real property tax;

(2) Is a social club; or

(3) Consists of a single family home or a property that contains less than three (3) residential apartments or condominiums shall be ineligible for the tax credits authorized under this chapter; provided, however, a scattered site development with five (5) or more residential units in the aggregate (which may include single family homes) shall be eligible for tax credit. In the event a certified historic structure undergoes a substantial rehabilitation pursuant to this chapter and within twenty-four (24) months after issuance of a certificate of completed work the property becomes exempt from real property tax, the taxpayer's tax for the year shall be increased by the total amount of credit actually used against the tax.

(i) In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

44-33.6-4. Administration. -- (a) To claim the tax credit authorized in this chapter, taxpayers shall apply:

(1) To the commission prior to the certified historic structure being placed in service for a certification that the certified historic structure's rehabilitation will be consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation;

(2) To the commission after completion of the rehabilitation work of the certified historic structure for a certification that the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation; and

(3) To the division of taxation after completion of the rehabilitation work of the certified historic structure for a certification as to the amount of tax credit for which the rehabilitation qualifies. The commission and the division of taxation may rely on the facts represented in the application without independent investigation and, with respect to the amount of tax credit for which the rehabilitation qualifies, upon the certification of a certified public accountant licensed in the state of Rhode Island. The applications shall be developed by the commission and the division of taxation and may be amended from time to time.

(b) Within thirty (30) days after the commission's and division of taxation's receipt of the taxpayer's application requesting certification for the completed rehabilitation work:

(1) The commission shall issue the taxpayer a written determination either denying or certifying the rehabilitation; and

(2) Division of taxation shall issue a certification of the amount of credit for which the rehabilitation qualifies. To claim the tax credit, the division of taxation's certification as to the amount of the tax credit shall be attached to all state tax returns on which the credit is claimed.

(c) No taxpayer may benefit from the provisions of this chapter unless the owner of the certified historic structure grants a restrictive covenant to the commission, agreeing that during the holding period no material alterations to the certified historic structure will be made without the commission's prior approval and agreeing that such shall be done in a manner consistent with the standards of the Secretary of the United States Department of the Interior; and, in the event the owner applies for the twenty-five percent (25%) tax credit, that either:

(1) At least twenty-five percent (25%) of the total rentable area of the certified historic structure will be made available for a trade or business; or

(2) The entire rentable area located on the first floor of the certified historic structure will be made available for a trade or business, in either case, for a period of sixty (60) months after the placed in service date of the certified historic structure or identifiable portion thereof.

(d) The division of taxation shall charge a fee equal to three percent (3%) of qualified rehabilitation expenditures. The fee shall be payable upon submission of the Part 2 application. The fee shall be non-refundable.

(e) Notwithstanding any provisions of the general laws or regulations adopted thereunder to the contrary, including, but not limited to, the provisions of chapter 2 of title 37, the division of taxation is hereby expressly authorized and empowered to enter into contracts with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or nonprofit) or other business entities that incur qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure. Upon payment of the portion of the fee set forth in subdivision (d) above, the division of taxation and the applicant shall enter into a contract for tax credits consistent with the terms and provisions of this chapter.

(f) Upon satisfaction of the requirements set forth herein and the payment of the fees as set forth in subdivision (d) above, the division of taxation shall, on behalf of the State of Rhode Island, guarantee the delivery of one hundred percent (100%) of the tax credit and use of one hundred percent (100%) of the tax credit in the tax year a certified historic structure is placed in service through a contract with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or nonprofit) or other business entities that will incur qualified rehabilitation expenditures for the substantial rehabilitation of a certified historic structure or some identifiable portion of a structure.

(g) Any contract executed pursuant to this chapter by a person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity shall be assignable to:

(1) An affiliate thereof without any consent from the division of taxation;

(2) A banking institution as defined by subdivision 44-14-2(2) or credit union as defined in subdivision 44-15-1.1(1) without any consent from the division of taxation; or

(3) A person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure, with such assignment to be approved by the division of taxation, which approval shall not be unreasonably withheld or conditioned. For purposes of this subsection, "affiliate" shall be defined as any entity controlling, controlled by or under common control with such person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity.

(h) If information comes to the attention of the commission or division of taxation at any time up to and including the last day of the holding period that is materially inconsistent with representations made in an application, the commission may deny the requested certification or revoke a certification previously given, and in either instance all fees paid by the applicant shall be deemed forfeited. In the event that tax credits or a portion of tax credits are subject to recapture for ineligible costs and such tax credits have been transferred, assigned and/or allocated, the state will pursue its recapture remedies and rights against the applicant of the tax credits, and all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against assignees, transferees or allocates of such credits provided they acquired the tax credits by way of an arms-length transaction, for value, and without notice of violation, fraud or misrepresentation.

(i) The commission, in consultation with the division of taxation, shall promulgate such rules and regulations as are necessary to carry out the intent and purpose of this chapter.

44-33.6-5. Information requests. -- The tax division and its agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the tax administrator or his or her agent deems pertinent or material in determining the eligibility for credits claimed and may request information from the commission, and the commission shall provide the information in all cases, to the extent not otherwise prohibited by statute. 

44-33.6-6. Election; Limitations. -- Taxpayers who elect and qualify to claim tax credits for the substantial rehabilitation of a certified historic structure pursuant to this chapter are ineligible for any tax credits that may also be available to the taxpayer for the substantial rehabilitation of that particular certified historic structure under the provisions of chapters 33.1 of this title, 64.7 of title 42, and/or 31 of this title. Neither taxpayers nor assignees may apply any tax credits issued in accordance with this section until fiscal year 2014. 

44-33.6-7. Timing and reapplication. -- Taxpayers shall have twelve (12) months from the approval of Part 2 application to commence substantial construction activities related to the subject substantial rehabilitation. Upon commencing substantial construction activities, the taxpayer shall submit an affidavit of commencement of substantial construction to the commission, together with evidence of such requirements having been satisfied. Furthermore, after commencement of substantial construction activities, no project shall remain idle prior to completion for a period of time exceeding six (6) months. In the event that a taxpayer does not commence substantial construction activities within twelve (12) months from the approval of Part 2 application, or in the event that a project remains idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed null and void, and shall terminate without need for further action or documentation. Upon any such forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter, however, notwithstanding anything contained herein to the contrary, one hundred percent (100%) of the fees required shall be paid upon reapplication and such fees shall be non-refundable. Additionally, any taxpayer reapplying for tax credits pursuant to this section 44-33.6-7 shall be required to submit evidence with its application establishing the reason for delay in commencement or the project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the commission, that such condition or event causing same has been resolved. All taxpayers shall submit a reasonably detailed project timeline to the commission together with the Part 2 application. The provisions of this section shall be further detailed and incorporated into the form of contract for tax credits used in connection with this chapter. 

44-33.6-8. Historic tax credit apprenticeship requirements. -- (a) Notwithstanding any laws to the contrary, any credit allowed under this chapter for hard construction costs valued at ten million dollars ($10,000,000) or more shall include a requirement that any contractor and subcontractor working on the project shall have an apprenticeship program as defined herein for all apprenticeable crafts that will be employed on the project at the time of bid. The provisions of the section shall only apply to contractors and subcontractors with five (5) or more employees. For purposes of this section, an apprenticeship program is one that is registered with and approved by the United States department of labor in conformance with 29 C.F.R. 29 and 29 C.F.R.30; and

(b) The department of labor and training must provide information and technical assistance to affected governmental, quasi-governmental agencies, and any contractors awarded projects relative to their obligations under this statute.

(c) The department of labor and training may also impose a penalty of up to five hundred dollars ($500) for each calendar day of noncompliance with this section, as determined by the director of labor and training. Mere errors and/or omissions shall not be grounds for imposing a penalty under this subsection.

(d) Any penalties assessed under this statute shall be paid to the general fund.

(e) To the extent that any of the provisions contained in section 37-13-3.2 conflict with the requirements for federal aid contracts, federal law and regulations shall control.

44-33.6-9. Reporting requirements. -- (a) Each taxpayer requesting certification of a completed rehabilitation shall report to the commission and the division of taxation the following information: 

(1) The number of total jobs created;

(2) The number of Rhode Island businesses retained for work;

(3) The total amount of qualified rehabilitation expenditures;

(4) The total cost of materials or products purchased from Rhode Island businesses;

(5) Such other information deemed necessary by the tax administrator.

(b) Any agreements or contracts entered into under this chapter by the division, the commission, or the economic development corporation and the taxpayer shall be sent to the division of taxation and be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.

(c) By August 15th of each year the division of taxation shall report the name, address, and amount of tax credit received for each credit recipient during the previous state fiscal year to the governor, the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, and the department of labor and training. This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.

(d) By September 1st of each year the division of taxation shall report in the aggregate the information required under subsection 44-33.6-9(a). This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.

(e) By September 1, 2018 and biennially thereafter the division of taxation shall report in the aggregate the total number of approved projects, project costs, and associated amount of approved tax credits.

44-33.6-10. Historic preservation tax credit trust fund. -- All processing fees collected pursuant to this chapter after  July 1, 2013 shall be deposited in a historic preservation tax credit restricted receipt account within the historic preservation tax credit trust fund, which shall be used, to the extent resources are available, to refund or reimburse the state for any credits certified by the division of taxation.

44-33.6-11. Sunset.-- No credits shall be authorized to be reserved pursuant to this chapter on or after June 30, 2016 or upon the exhaustion of the maximum aggregate credits, whichever comes first. 

SECTION 3. Section 1 of this article shall take effect upon passage. Section 2 of this article shall take effect upon passage and shall be repealed effective June 30, 2017.  SECTION 3. This article shall take effect upon passage.

 


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ARTICLE 23

RELATING TO STATE AFFAIRS AND GOVERNMENT - THE INNOVATE RHODE ISLAND SMALL BUSINESS PROGRAM

SECTION 1. Title 42 of the General Laws entitled "State Affairs and Government" is hereby amended by adding thereto the following chapter:

CHAPTER 64.15
THE INNOVATE RHODE ISLAND SMALL BUSINESS PROGRAM

42-64.15-1. Establishment of incentive program. – (a) There is hereby established the Innovate Rhode Island Small Business Incentive Program SBIR/STTR to be administered by the Rhode Island Science and Technology Advisory Council (STAC). In order to foster job creation and economic development in the state, STAC may provide grants to eligible businesses to offset costs associated with applying to the United States Small Business Administration for Small Business Innovation Research (SBIR) grants or Small Business Technology Transfer Research (STTR) grants. The grants shall be paid from the Innovate Rhode Island Small Business Account established in this chapter.

(b) Eligibility. – In order to be eligible for a grant under this section, a business must satisfy all of the following conditions:

(1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer employees. For the purposes of this section, a Rhode Island-based business is one that has its principal place of business and at least fifty-one percent (51%) of its employees residing in this state.

(2) The business must have submitted a qualified SBIR/STTR Phase I proposal to a participating federal agency in response to a specific federal solicitation.

(3) The business must satisfy all federal SBIR/STTR requirements.

(4) The business shall not receive concurrent funding support from other sources that duplicates the purpose of this section.

(5) The business must certify that at least fifty-one percent (51%) of the research described in the federal SBIR/STTR Phase I proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase I project.

(6) The business must demonstrate its ability to conduct research in its SBIR/STTR Phase I proposal.

(c) Grant. – STAC may award grants to reimburse an eligible business for up to fifty percent (50%) of the costs of preparing and submitting an SBIR/STTR Phase I proposal, up to a maximum of three thousand dollars ($3,000). A business may receive only one grant under this section per year. A business may receive only one grant under this section with respect to each federal proposal submission. Costs that may be reimbursed include costs incurred directly related to preparation and submission of the grant such as word processing services, proposal consulting fees, project-related supplies, literature searches, rental of space or equipment related to the proposal preparation, and salaries of individuals involved with the preparation of the proposals. Costs that shall not be reimbursed include travel expenses, large equipment purchases, facility or leasehold improvements, and legal fees.

(d) Application. – A business shall apply, under oath, to STAC for a grant under this section on a form prescribed by STAC that includes at least all of the following:

(1) The name of the business, the form of business organization under which it is operated, and the names and addresses of the principals or management of the business.

(2) An acknowledgement of receipt of the Phase I proposal by the relevant federal agency.

(3) An itemized statement of the costs that may be reimbursed.

(4) Any other information necessary for STAC to evaluate the application.

42-64.15-2. Establishment of matching funds program. – (a) There is established the Rhode Island SBIR/STTR Matching Funds Program to be administered by STAC. In order to foster job creation and economic development in the state, STAC may provide grants to eligible businesses to match funds received by a business as a SBIR or STTR Phase I award, loans to eligible businesses to match funds received by a business as a SBIR or STTR Phase II award, and to encourage businesses to apply for further Phase II and Phase III awards, respectively.

(b) Eligibility. – In order to be eligible for a grant under this section, a business must satisfy all of the following conditions:

(1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer employees. For the purposes of this section, Rhode Island-based business is one that has its principal place of business and at least fifty-one percent (51%) of its employees residing in this state.

(2) The business must have received an SBIR/STTR Phase I award from a participating federal agency in response to a specific federal solicitation. To receive the full Phase I matching grant, the business must also have submitted a final Phase I report, demonstrated that the sponsoring agency has interest in the Phase II proposal, and submitted a Phase II proposal to the agency. To receive the full Phase II matching loan, the business must also have submitted a final Phase II report, demonstrated that the sponsoring agency has interest in the Phase III proposal, and submitted a Phase III proposal to the agency.

(3) The business must satisfy all federal SBIR/STTR requirements.

(4) The business shall not receive concurrent funding support from other sources that duplicates the purpose of this section.

(5) For a Phase I matching grant, the business must certify that at least fifty-one percent (51%) of the research described in the federal SBIR/STTR Phase II proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase II project. For a Phase II matching loan, the business must certify that at least fifty-one percent (51%) of the research described in the federal SBIR/STTR Phase III proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase III project.

(6) For a Phase I matching grant, the business must demonstrate its ability to conduct research in its SBIR/STTR Phase II proposal. For a Phase II matching loan, the business must demonstrate its ability to conduct research in its SBIR/STTR Phase III proposal.

(c) Phase I Matching Grant. – STAC may award grants to match the funds received by a business through a SBIR/STTR Phase I proposal up to a maximum of one hundred thousand dollars ($100,000). Seventy-five percent (75%) of the total grant shall be remitted to the business upon receipt of the SBIR/STTR Phase I award and application for funds under this section. Twenty-five percent (25%) of the total grant shall be remitted to the business upon submission by the business of the Phase II application to the funding agency and acceptance of the Phase I report by the funding agency. A business may receive only one grant under this section per year. A business may receive only one grant under this section with respect to each federal proposal submission. Over its lifetime, a business may receive a maximum of six (6) awards under this section.

(d) Phase II Matching Loan. – STAC may award loans to match the funds received by a business through a SBIR/STTR Phase II proposal up to a maximum of three hundred thousand dollars ($300,000) that must be secured by sufficient assets of the business. Seventy-five percent (75%) of the total loan shall be remitted to the business upon receipt of the SBIR/STTR Phase II award and application for funds under this section. Twenty-five percent (25%) of the total loan shall be remitted to the business upon submission by the business of the Phase III application to the funding agency and acceptance of the Phase I report by the funding agency. A business may receive only one loan under this section per year. A business may receive only one loan under this section with respect to each federal proposal submission. Over its lifetime, a business may receive a maximum of six (6) loans under this section.

(e) Application. – A business shall apply, under oath, to STAC for a grant or loan under this section on a form prescribed by STAC that includes at least all of the following:

(1) The name of the business, the form of business organization under which it is operated, and the names and addresses of the principals or management of the business.

(2) For a Phase I matching grant, an acknowledgement of receipt of the Phase I report and Phase II proposal by the relevant federal agency. For a Phase II matching loan, an acknowledgement of receipt of the Phase II report and Phase III proposal by the relevant federal agency.

(3) Any other information necessary for STAC to evaluate the application.

42-64.15-3. Establishment of bioscience & engineering internship program. – (a) There is hereby established the Innovate Rhode Island Bioscience & Engineering Internship Program to be administered by STAC. In order to promote workforce development and education in the bioscience and engineering fields and enhance the talent pipeline for Rhode Island businesses engaged in the biosciences and engineering, STAC may reimburse eligible bioscience and engineering companies for eligible internship stipends. The reimbursements shall be paid from the Innovate Rhode Island Small Business Account established in this chapter.

(b) Bioscience and engineering definitions.

(1) Bioscience definition. – For the purposes of this section, "bioscience" shall mean advanced and applied sciences that expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications.

(2) Engineering definition. – For the purposes of this section, "engineering" shall mean the creative application of advanced mathematics and natural sciences to design or develop complex structures, machines, processes, or systems.

(c) Business eligibility. – In order to be eligible for reimbursement under this section, a business must satisfy all of the following conditions:

(1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer employees. For the purposes of this section, a Rhode Island-based business is one that has its principal place of business and at least fifty-one percent (51%) of its employees in this state.

(2) The business must be primarily engaged in a bioscience or engineering field and must demonstrate its ability to conduct research in bioscience or engineering.

(3) The business must host the internship in Rhode Island.

(4) The business must offer interns a hands-on learning experience and at least one mentor directly overseeing the internship.

(5) Any two or more related businesses that are commonly controlled by any person or entity, directly or indirectly, are limited to reimbursement under this section available for one business only.

(d) Intern eligibility. – In order to be an eligible intern under this section, a prospective intern must satisfy all of the following requirements:

(1) The prospective intern must be a Rhode Island resident and must attend a college or university located in Rhode Island.

(2) For students enrolled in community college, the student must be enrolled in an Associate's Degree or Certificate program or completed one within the past year; for students enrolled in four-year college or university, the student must have or will have completed at least sophomore year the semester before the internship, or have graduated within the past year; for graduate students, the student must be enrolled in a Master's Degree program or received their Master's Degree within the past year.

(3) The intern cannot be the spouse, child, grandchild, sibling, niece, nephew, or spouse of a child, grandchild, sibling, niece, or nephew of any employee of the business.

(4) The intern cannot participate in more than one internship subsidized under this section in the same calendar year.

(5) The intern cannot participate in more than two internships subsidized under this section, over two calendar years, with the same business.

(c) Reimbursement. – STAC may reimburse eligible companies for pay rates up to twelve dollars ($12) per hour for a total reimbursement of no more than three thousand dollars ($3,000) per eligible intern in a bioscience or engineering internship program. Businesses may seek reimbursement for up to two (2) interns per calendar year. Interns shall be paid directly by the eligible business. Eligible businesses may seek reimbursement under this section by providing certification and proof of payment to STAC.

(d) Business application. – A business shall apply, under oath, to STAC to qualify for reimbursement under this section on a form prescribed by STAC that includes at least all of the following:

(1) The name of the business, the form of business organization under which it is operated, and the names and addresses of the principals or management of the business.

(2) Certification that the business meets the requirements for eligibility under this section.

(3) A description of the bioscience or engineering internship program that the business intends to offer.

(4) Any other information necessary for STAC to evaluate the application.

(e) Prospective intern application. – A prospective intern shall apply, under oath, to STAC to qualify for an internship under this section on a form prescribed by STAC that includes at least all of the following:

(1) The prospective intern’s name, address, college or university, program of study, year of study at the college or university, and degree of attainment.

(2) Certification that prospective intern meets the requirements for eligibility under this section.

(3) Proof of Rhode Island residency.

(4) Proof of enrollment in a college or university in Rhode Island or proof of having graduated from a college or university in Rhode Island within the past year.

(5) Resume and cover letter.

(6) Any other information necessary for STAC to evaluate the application.

(f) Application process. – STAC may receive applications from businesses and prospective interns throughout the calendar year and make determinations relating to eligibility under this section. STAC may make available to eligible businesses the eligible intern applications. Eligible businesses looking to host interns may review applications, interview candidates, and select and hire interns according to their qualifications and the businesses’ needs.

42-64.15-4. Program guidelines. – STAC shall develop guidelines related to the administration of the programs established by this chapter. At least twenty (20) days before the effective date of any guidelines or nontechnical amendments to guidelines, STAC must publish the proposed guidelines on STAC website and provide notice to persons who have requested notice of proposed guidelines. In addition, STAC must accept oral and written comments on the proposed guidelines during the fifteen (15) business days beginning on the first day that STAC has completed these notifications. For the purpose of this section, a technical amendment is either of the following:

(1) An amendment that corrects a spelling or grammatical error.

(2) An amendment that makes a clarification based on public comment and could have been anticipated by the public notice that immediately preceded the public comment.

42-64.15-5. Innovate Rhode Island Small Business Account established as a special revenue fund. – (a) Establishment. – The Innovate Rhode Island Small Business Account is hereby established as a special revenue fund in STAC.

(b) Purpose. – The Innovate Rhode Island Small Business Account ("IRISBA") shall be used for the Rhode Island SBIR/STTR Incentive Program, the Rhode Island SBIR/STTR Matching Funds Program, and the Rhode Island Bioscience & Engineering Internship Program, as specified in this chapter. Moneys in the IRISBA shall be allocated as specified in this chapter and shall not exceed available funds in the account.

42-64.15-6. Reports. -- STAC shall publish a report on the use of funds in the Innovate Rhode Island Small Business Account ("IRISBA") at the end of each fiscal quarter. The report shall contain information on the commitment, disbursement, and use of funds allocated under the (IRISBA). The report is due no later than one month after the end of the fiscal quarter, and must be submitted to the following:

(1) The chairs of the house of representatives and senate finance committees.

(2) The fiscal offices of the general assembly.

SECTION 2. This act shall take effect upon passage.

 


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ARTICLE 24 AS AMENDED

RELATING TO ECONOMIC DEVELOPMENT

SECTION 1. Section 1 of Chapter 26 of the 2010  Public Laws entitled "AN ACT RELATING TO ECONOMIC DEVELOPMENT" is hereby repealed. 

SECTION 1. WHEREAS, The Rhode Island Economic Development Corporation was created by the general assembly pursuant to chapter 64 of title 42 of the general laws in order to, among other things, promote the retention and expansion of businesses and the creation of jobs in Rhode Island; and

WHEREAS, One of the methods utilized by the Rhode Island Economic Development Corporation to help promote and expand businesses in Rhode Island is the use of its quasi-public corporation powers to issue bonds and debt and guarantees of debt; and

WHEREAS, Rhode Island continues to suffer from continuing high unemployment and other ill effects from the most recent national recession; and

WHEREAS, One of Rhode Island's economic development's strategies of continuing to optimize its knowledge economy assets such, as the sciences, technology, digital media, innovative manufacturing and other technologies, requires adequate access to capital; and

WHEREAS, Rhode Island companies in growth phases are limited in their ability to obtain reasonable credit without access to credit enhancement; and

WHEREAS, The Rhode Island Economic Development Corporation desires to create a loan guarantee and bond program pursuant to which it will be able to guarantee loan repayments either directly or through the issuance of its bonds in order to induce lending to companies growing their employment in Rhode Island;

WHEREAS, The Rhode Island Economic Development Corporation seeks to have authority pursuant to chapter 18 of title 35 of the general laws to guarantee debts or otherwise issue its bonds for this purpose not to exceed one hundred twenty five million dollars ($125,000,000) in the aggregate of unpaid principal, thereby limiting the contingent long-term cost of such program to the state; and

WHEREAS, The Rhode Island Economic Development Corporation requests the approval of the general assembly prior to undertaking such program; now, therefore be it

RESOLVED, That the Rhode Island Economic Development Corporation (the "corporation") is hereby empowered and authorized pursuant to chapter 18, title 35 of the general laws, and notwithstanding any provisions of chapter 64, title 42 of the general laws to the contrary, to create the corporation's Job Creation Guaranty Program (the "program"). Under the program, the corporation may from time to time issue its bonds, guaranty debt service thereon or on bonds issued by the Rhode Island industrial facilities corporation, or guaranty the debt service of another provided that the principal amount of bonds or other obligations guaranteed pursuant to the program shall not at any time exceed one hundred twenty-five million dollars ($125,000,000). The guaranty of any bond or other obligation may extend to repayment of the principal thereof, sinking payments therefore, interest thereon, and payment of any redemption price or premium in connection with the redemption thereof prior to maturity;

RESOLVED, That guaranties or bonds issued by the corporation shall be approved by its board of directors, or a committee of the board as so designated by the board, and shall be executed by its executive director or any authorized officer of the corporation as authorized in a resolution approved by the board of directors of the corporation from time to time in a form the corporation may prescribe. The board of directors of the corporation in authorizing any such guaranty or bond obligations shall consider and be guided by the following objectives:

(a) Priority will be given to projects that promptly create permanent, full-time jobs with annual wages in excess of two hundred fifty percent (250%) of the then current minimum wage earned annually with industry comparable benefits. A full-time job shall mean one in which the employee works a minimum of thirty (30) hours per week within this state.

(b) Any guaranty or bond obligations hereby authorized should leverage capital formation to facilitate business development with new and existing companies that will create or retain jobs in this state. The documentation reflecting guaranty and bond obligations authorized hereby shall contain adequate legal provisions for assuring performance by the borrower of creating and retaining new jobs within this state.

(c) Priority shall be given to guarantees that align with the State’s economic development strategy to expand high-wage jobs in knowledge industry growth clusters or with respect to assets related thereto.

(d) Guarantees or loan obligations from the program’s borrower will be collateralized by any and all available assets of the borrower and guarantors, where applicable, including subordinate collateral positions, cross collateralization with other lenders and collateralized guarantees as appropriate.

(e) Insurances, including hazard and key person life, may be required where appropriate.

(f) The corporation may utilize such data and retain experts as necessary to assess and validate associated guaranty risk, and the corporation may charge borrower reasonable fees for the corporation’s guaranty and reimbursement of expenses;

RESOLVED, that in order assure any payments due on guarantees or bond obligations issued by the corporation in connection with the program pursuant to this authorization are made, to assure the continued operation and solvency of the corporation for the carrying out of its corporate purposes, and except as otherwise set forth in these authorizing resolutions in accordance with the provisions of chapter 64, title 42 of the general laws: (i) The corporation shall create a reserve fund from which shall be charged any and all expenses of the corporation with respect to guarantee or bond obligations of the corporation pursuant to these resolutions resulting from a program borrower’s default; and (ii) The corporation shall credit to the reserve fund no less than fifty percent (50%) of all program receipts of the corporation including guaranty fees, premiums and any other receipts or recoveries from collections received pursuant to the corporation’s rights to recover payments as a guarantor; and (iii) To the extent the corporation’s obligations as a guarantor or pursuant to its program bond obligations are not satisfied by amounts in its guaranty reserve fund, the executive director of the corporation shall annually, on or before December 1st, make and deliver to the governor a certificate stating the minimum amount, if any, required for the corporation to make payments due on such guarantees. During each January session of the general assembly, the governor shall submit to the general assembly, as part of the governor’s budget, the total of such sums, if any, required to pay any and all obligations of the corporation under such guarantees or bond obligations pursuant to the terms of this authorization. All sums appropriated by the general assembly for that purpose, and paid to the corporation, if any, shall be utilized by the corporation to make payments due on such guarantees or bond obligations. Any recoveries by the corporation of guarantee payments are to be returned to the guarantee reserve fund and utilized to reduce any obligation of the state pursuant to any guarantees entered into by the corporation;

RESOLVED, on or before January 1 of each year, the corporation shall issue a report on all guarantees issued by the corporation pursuant to this authorization. The report shall include at a minimum: a list of each guarantee issued; a description of the borrower on behalf of which the guarantee was issued; the lender or lenders that made the loan, and the amount of such loan, to such borrower; the amount of principal and interest on each such loan outstanding as of the date of such report; a summary of the collateral securing the repayment of such loan for which the guarantee was issued; and a summary of the economic impacts made by such borrower as a result of the guaranteed loan, including but not limited to the number, type and wages of jobs created by such borrower, any impacts on the industry in which the borrower operates and an estimate of income taxes for the state of Rhode Island generated by the employees of such borrower and the borrower itself.

SECTION 2. Section 1 of Chapter 29 of the 2010 Public Laws entitled “AN ACT RELATING TO AUTHORIZING THE ECONOMIC DEVELOPMENT CORPORATION TO CREATE THE JOB CREATION GUARANTY PROGRAM” is hereby repealed. 

SECTION 1. WHEREAS, The Rhode Island Economic Development Corporation was created by the general assembly pursuant to chapter 64 of title 42 of the general laws in order to, among other things, promote the retention and expansion of businesses and the creation of jobs in Rhode Island; and

WHEREAS, One of the methods utilized by the Rhode Island Economic Development

Corporation to help promote and expand businesses in Rhode Island is the use of its quasi-public corporation powers to issue bonds and debt and guarantees of debt; and

WHEREAS, Rhode Island continues to suffer from continuing high unemployment and other ill effects from the most recent national recession; and

WHEREAS, One of Rhode Island's economic development's strategies of continuing to optimize its knowledge economy assets such, as the sciences, technology, digital media, innovative manufacturing and other technologies, requires adequate access to capital; and

WHEREAS, Rhode Island companies in growth phases are limited in their ability to obtain reasonable credit without access to credit enhancement; and

WHEREAS, The Rhode Island Economic Development Corporation desires to create a loan guarantee and bond program pursuant to which it will be able to guarantee loan repayments either directly or through the issuance of its bonds in order to induce lending to companies growing their employment in Rhode Island;

WHEREAS, The Rhode Island Economic Development Corporation seeks to have authority pursuant to chapter 18 of title 35 of the general laws to guarantee debts or otherwise issue its bonds for this purpose not to exceed one hundred twenty five million dollars

($125,000,000) in the aggregate of unpaid principal, thereby limiting the contingent long-term  Cost of such program to the state; and

WHEREAS, The Rhode Island Economic Development Corporation requests the approval of the general assembly prior to undertaking such program; now, therefore be it

RESOLVED, That the Rhode Island Economic Development Corporation (the "corporation") is hereby empowered and authorized pursuant to chapter 18, title 35 of the general laws, and notwithstanding any provisions of chapter 64, title 42 of the general laws to the contrary, to create the corporation's Job Creation Guaranty Program (the "program"). Under the program, the corporation may from time to time issue its bonds, guaranty debt service thereon or on bonds issued by the Rhode Island industrial facilities corporation, or guaranty the debt service of another provided that the principal amount of bonds or other obligations guaranteed pursuant to the program shall not at any time exceed one hundred twenty-five million dollars ($125,000,000). The guaranty of any bond or other obligation may extend to repayment of the principal thereof, sinking payments therefore, interest thereon, and payment of any redemption price or premium in connection with the redemption thereof prior to maturity;

RESOLVED, That guaranties or bonds issued by the corporation shall be approved by its board of directors, or a committee of the board as so designated by the board, and shall be executed by its executive director or any authorized officer of the corporation as authorized in a resolution approved by the board of directors of the corporation from time to time in a form the corporation may prescribe. The board of directors of the corporation in authorizing any such guaranty or bond obligations shall consider and be guided by the following objectives:

(a) Priority will be given to projects that promptly create permanent, full-time jobs with annual wages in excess of two hundred fifty percent (250%) of the then current minimum wage earned annually with industry comparable benefits. A full-time job shall mean one in which the employee works a minimum of thirty (30) hours per week within this state.

(b) Any guaranty or bond obligations hereby authorized should leverage capital formation to facilitate business development with new and existing companies that will create or retain jobs in this state. The documentation reflecting guaranty and bond obligations authorized hereby shall contain adequate legal provisions for assuring performance by the borrower of creating and retaining new jobs within this state.

(c) Priority shall be given to guarantees that align with the State’s economic development strategy to expand high-wage jobs in knowledge industry growth clusters or with respect to assets related thereto.

(d) Guarantees or loan obligations from the program’s borrower will be collateralized by any and all available assets of the borrower and guarantors, where applicable, including subordinate collateral positions, cross collateralization with other lenders and collateralized guarantees as appropriate.

(e) Insurances, including hazard and key person life, may be required where appropriate.

(f) The corporation may utilize such data and retain experts as necessary to assess and validate associated guaranty risk, and the corporation may charge borrower reasonable fees for the corporation’s guaranty and reimbursement of expenses;

RESOLVED, that in order assure any payments due on guarantees or bond obligations issued by the corporation in connection with the program pursuant to this authorization are made, to assure the continued operation and solvency of the corporation for the carrying out of its corporate purposes, and except as otherwise set forth in these authorizing resolutions in accordance with the provisions of chapter 64, title 42 of the general laws: (i) The corporation shall create a reserve fund from which shall be charged any and all expenses of the corporation with respect to guarantee or bond obligations of the corporation pursuant to these resolutions resulting from a program borrower’s default; and (ii) The corporation shall credit to the reserve fund no less than fifty percent (50%) of all program receipts of the corporation including guaranty fees, premiums and any other receipts or recoveries from collections received pursuant to the corporation’s rights to recover payments as a guarantor; and (iii) To the extent the corporation’s obligations as a guarantor or pursuant to its program bond obligations are not satisfied by amounts in its guaranty reserve fund, the executive director of the corporation shall annually, on or before December 1st, make and deliver to the governor a certificate stating the minimum amount, if any, required for the corporation to make payments due on such guarantees. During each January session of the general assembly, the governor shall submit to the general assembly, as part of the governor’s budget, the total of such sums, if any, required to pay any and all obligations of the corporation under such guarantees or bond obligations pursuant to the terms of this authorization. All sums appropriated by the general assembly for that purpose, and paid to the corporation, if any, shall be utilized by the corporation to make payments due on such guarantees or bond obligations. Any recoveries by the corporation of guarantee payments are to be returned to the guarantee reserve fund and utilized to reduce any obligation of the state pursuant to any guarantees entered into by the corporation;

RESOLVED, on or before January 1 of each year, the corporation shall issue a report on all guarantees issued by the corporation pursuant to this authorization. The report shall include at a minimum: a list of each guarantee issued; a description of the borrower on behalf of which the guarantee was issued; the lender or lenders that made the loan, and the amount of such loan, to such borrower; the amount of principal and interest on each such loan outstanding as of the date of such report; a summary of the collateral securing the repayment of such loan for which the guarantee was issued; and a summary of the economic impacts made by such borrower as a result of the guaranteed loan, including but not limited to the number, type and wages of jobs created by such borrower, any impacts on the industry in which the borrower operates and an estimate of income taxes for the state of Rhode Island generated by the employees of such borrower and the borrower itself.

SECTION 3. This article shall take effect upon passage.


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ARTICLE 25 AS AMENDED

RELATING TO EFFECTIVE DATE

SECTION 1. This act shall take effect as of July 1, 2013, except as otherwise provided herein.

SECTION 2. This article shall take effect upon passage.