2013 -- H 5344

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LC00631

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT AND DISABILITY BENEFITS

     Introduced By: Representatives Morgan, Giarrusso, Chippendale, Costa, and Newberry

     Date Introduced: February 07, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 21.4

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ADJUSTMENT OF DISABILITY PENSIONS

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     45-21.4-1. Adjustment of disability allowance upon return to work. – (a) As used in

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this chapter, the following words shall have the following meanings:

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     (1) “Municipal or quasi-municipal entity” means and include, but not be limited to, cities,

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towns, fire districts, water districts, water waste districts, school districts, lighting districts,

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housing authorities, public building authorities, redevelopment authorities or any other public or

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quasi-public authority or agency created pursuant to state law.

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     (2) “Disability recipient” means an employee who is a member of a retirement system

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supported wholly or in part by a municipal or quasi-municipal entity who is receiving a disability

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pension from said retirement system. The term shall not mean any survivor or third-party

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beneficiary of the employee.

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     (b) Adjustment of disability pensions:

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     (1) Should the disability recipient of any retirement system supported wholly or in part by

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a municipal or quasi-municipal entity be engaged in a gainful occupation, the retirement system

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shall adjust and at least annually readjust, the amount of his or her disability pension to an amount

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which, when added to the amount of compensation then earned by the beneficiary, shall be in an

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amount no greater than one hundred percent (100%) of the base salary rate of compensation in

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effect for the classification that the disability recipient held prior to retirement.

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     (2) The adjustment shall not apply if the retirement system finds that a job-related injury,

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as defined by the retirement system, of a disability recipient resulted in permanent total disability,

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as defined in paragraphs 28-33-17-(b)(1)(i-vi). Permanent total disability shall also include all

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other job-related injuries that the retirement system determines are catastrophic in nature

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according to the severity of the injury. An employee’s age, education, abilities and training may

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also be taken into account.

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     (3) Any disability recipient who returns to the same of substantially similar job for any

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other employer as determined by the retirement system shall be given notice that such

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employment is prohibited. If, three (3) months after being given notice, the disability recipient

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remains employed in the same or substantially similar job, his or her disability pension shall be

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permanently revoked.

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     (4) Nothing in this chapter shall be construed to limit a municipal or quasi-municipal

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entity from applying a greater adjustment than that set forth in this chapter to a disability

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recipient’s pension based upon any other provision of law or contract.

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     (c) Applicability:

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     (1) This chapter shall apply to recipients of disability pensions granted prior to and

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subsequent to the effective date of this chapter. It shall take effect upon passage of this act.

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     (2) The provisions of this chapter shall supersede any special or general laws to the

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contrary.

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     (3) Notwithstanding the foregoing, the provisions of this chapter shall in no way impair

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any contract or collective bargaining agreement currently in effect. Any contracts or collective

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bargaining agreements entered into or renewed after the effective date of this chapter shall be

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subject to the provisions of this chapter.

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     (4) Nothing contained in this chapter shall be construed to limit the benefits that survivors

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or third-party beneficiaries of disability recipients would otherwise receive as if the provisions of

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subdivision (b)(1) of this section were not in effect.

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     (5) Notwithstanding the foregoing, the provisions of this chapter shall not apply to any

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disability benefits so long as such benefits are currently contracted for, and paid by, an insurance

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company. Any contracts entered into or renewed after the effective date of this chapter, shall be

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subject to the provisions of this chapter.

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     SECTION 2. Section 44-30-95 of the General Laws in Chapter 44-30 entitled "Personal

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Income Tax" is hereby amended to read as follows:

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     44-30-95. General powers of tax administrator. -- (a) General. - The tax administrator

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shall administer and enforce the Rhode Island personal income tax and is authorized to make any

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rules and regulations, and to require any facts and information to be reported, that he or she may

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deem necessary to enforce the tax. The provisions of chapter 1 of this title relating to the tax

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administrator shall be applicable to the Rhode Island personal income tax.

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      (b) Examination of books and witnesses. - The tax administrator, for the purpose of

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ascertaining the correctness of any return, or for the purpose of making an estimate of Rhode

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Island income of any person where information has been obtained, shall have the power to

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examine or to cause to have examined, by any agent or representative designated by the tax

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administrator for that purpose, any books, papers, records, or memoranda bearing upon the

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matters required to be included in the return, and may require the attendance of the person

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rendering the return or any officer or employee of the person, or the attendance of any other

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person having knowledge in the premises, and may take testimony and require proof material for

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its information, with power to administer oaths to the person or persons.

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      (c) Secrecy requirement. - It shall be unlawful for any state official or employee to

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divulge or to make known to any person in any manner whatever not provided by law the amount

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or source of income, profits, losses, expenditures, or any particular of them set forth or disclosed

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in any return, or to permit any return or copy of the return or any book containing any abstract or

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particulars thereof to be seen or examined by any person except as provided by law. It shall be

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unlawful for any person to print or publish in any manner whatever not provided by law any

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return or any part thereof or source of income, profits, losses, or expenditures appearing in any

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return. Any offense against the foregoing provision shall be punished by a fine not exceeding one

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thousand dollars ($1,000), or by imprisonment not exceeding one year, or both, at the discretion

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of the court. If the offender is an officer or employee of the state of Rhode Island, the offender

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may be dismissed from office or discharged from employment.

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      (d) Interstate and federal agreements. - The governor or the tax administrator may enter

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into agreements with tax officials of other states and the federal government to provide for the

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exchange of information and to apportion or otherwise equitably determine taxes for the purposes

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of carrying out the provisions of section 44-30-18 and otherwise avoiding multiple taxation.

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      (e) Income tax claims of other states. - The courts of this state shall recognize and

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enforce liabilities for personal income taxes lawfully imposed by any other state which extends a

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like comity to this state, and the duly authorized officer of any other state may sue for the

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collection of a tax in the courts of this state. A certificate by the secretary of state of the other

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state that an officer suing for the collection of a tax is duly authorized to collect the tax shall be

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conclusive proof of that authority. For the purposes of this section, the word "taxes" shall include

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additions to tax, interest, and penalties, and liability for taxes, additions to tax, interest and

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penalties shall be recognized and enforced by the courts of this state to the same extent that the

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laws of the other state permit the enforcement in its courts of liability for taxes, additions to tax,

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interest, and penalties due this state under this part.

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      (f) Small tax balances. - The tax administrator is authorized to abate the unpaid portion

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of the assessment of any tax, or any liability in respect thereof, if the administrator determines

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under uniform rules prescribed by him or her that the administration and collection costs involved

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would not warrant collection of the amount due.

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      (g) Limited disclosure of information -- Retirement board. - The tax administrator shall

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disclose to the retirement board of the state of Rhode Island and to the retirement systems of

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municipal systems of municipal and quasi-municipal entities as defined in section 45-21.4-1,

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information needed by the board and said retirement systems to implement the provisions of

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sections 36-10-17, and 45-21-24, 16-16-19 and 45-21.4-1. The content and nature of the

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information to be disclosed shall be determined and approved by the tax administrator and shall

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be kept confidential by the board.

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      (h) Limited disclosure of information -- Jury Commissioner. - The tax administrator shall

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disclose to the jury commissioners of the State of Rhode Island information needed by him or her

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to implement provisions of section 9-9-1(d).

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     SECTION 3. Severability.—If any provision of this act or the application thereof to any

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person or circumstances is held invalid, such invalidity shall not affect other provisions or

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applications of the act, which can be given effect without the invalid provision or application, and

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to this end the provisions of this act are declared to be severable.

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     SECTION 4. This act shall take effect upon passage.

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LC00631

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT AND DISABILITY BENEFITS

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     This act would require municipal and quasi-municipal entities not currently enrolled in

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the state retirement system to annually adjust the disability pensions of pension beneficiaries

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according to any compensation earned. Exempted from the offset would be those whose job-

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related injuries are found to be permanent total disabilities.

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     This act would take effect upon passage.

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LC00631

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