H5151

	2019 -- H 5151
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	LC000763
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	STATE OF RHODE ISLAND
	IN GENERAL ASSEMBLY
	JANUARY SESSION, A.D. 2019
	____________
	A N A C T
	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2020

	Introduced By: Representative Marvin L. Abney
	Date Introduced: January 17, 2019
	Referred To: House Finance
	(Governor)
	It is enacted by the General Assembly as follows:
1	ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2020
2	ARTICLE 2 RELATING TO STATE FUNDS
3	ARTICLE 3 RELATING TO GOVERNMENT REFORM
4	ARTICLE 4 RELATING TO GOVERNMENT REORGANIZATION
5	ARTICLE 5 RELATING TO TAXES, REVENUE AND FEES
6	ARTICLE 6 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
7	ARTICLE 7 RELATING TO MOTOR VEHICLES
8	ARTICLE 8 RELATING TO TRANSPORTATION
9	ARTICLE 9 RELATING TO LOCAL AID
10	ARTICLE 10 RELATING TO UNIVERSAL PREKINDERGARTEN
11	ARTICLE 11 RELATING TO RHODE ISLAND PROMISE
12	ARTICLE 12 RELATING TO ECONOMIC DEVELOPMENT
13	ARTICLE 13 RELATING TO MINIMUM WAGES
14	ARTICLE 14 RELATING TO HEALTHCARE MARKET STABILITY
15	ARTICLE 15 RELATING TO CHILDREN AND FAMILIES
16	ARTICLE 16 RELATING TO MEDICAL ASSISTANCE
17	ARTICLE 17 RELATING TO MEDICAID REFORM ACT OF 2008 RESOLUTION
18	ARTICLE 18 RELATING TO HOSPITAL UNCOMPENSATED CARE
19	ARTICLE 19 RELATING TO LICENSING OF HOSPITAL FACILITIES

1	ARTICLE 20 RELATING TO MARIJUANA
2	ARTICLE 21 RELATING TO EFFECTIVE DATE
	LC000763 - Page 2 of 541
1	ARTICLE 1
2	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2020
3	SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained
4	in this act, the following general revenue amounts are hereby appropriated out of any money in
5	the treasury not otherwise appropriated to be expended during the fiscal year ending June 30,
6	2020. The amounts identified for federal funds and restricted receipts shall be made available
7	pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the
8	purposes and functions hereinafter mentioned, the state controller is hereby authorized and
9	directed to draw his or her orders upon the general treasurer for the payment of such sums or such
10	portions thereof as may be required from time to time upon receipt by him or her of properly
11	authenticated vouchers.
12	Administration
13	Central Management
14	General Revenues 2,669,232
15	Legal Services
16	General Revenues 2,399,876
17	Federal Funds 105,536
18	Total – Legal Services 2,505,412
19	Accounts and Control
20	General Revenues 5,412,043
21	Restricted Receipts 149,966
22	Total – Accounts and Control 5,562,009
23	Office of Management and Budget
24	General Revenues 8,220,142
25	Restricted Receipts 300,000
26	Other Funds 1,321,384
27	Total – Office of Management and Budget 9,841,526
28	Purchasing
29	General Revenues 3,443,947
30	Restricted Receipts 459,389
31	Other Funds 503,353
32	Total – Purchasing 4,406,689
33	Human Resources
34	General Revenues 788,541
	LC000763 - Page 3 of 541
1	Personnel Appeal Board
2	General Revenues 151,521
3	Information Technology
4	General Revenues 1,647,418
5	Federal Funds 114,000
6	Restricted Receipts 6,622,092
7	Total – Information Technology 8,383,510
8	Library and Information Services
9	General Revenues 1,457,501
10	Federal Funds 1,155,921
11	Restricted Receipts 1,404
12	Total – Library and Information Services 2,614,826
13	Planning
14	General Revenues 736,706
15	Federal Funds 15,448
16	Other Funds
17	Air Quality Modeling 24,000
18	Federal Highway – PL Systems Planning 3,775,979
19	FTA – Metro Planning Grant 1,107,450
20	Total – Planning 5,659,583
21	General
22	General Revenues
23	Miscellaneous Grants/Payments 130,000
24	Provided that this amount be allocated to City Year for the Whole School Whole Child
25	Program, which provides individualized support to at-risk students.
26	Torts – Courts/Awards 400,000
27	Resource Sharing and State Library Aid 9,362,072
28	Library Construction Aid 1,937,230
29	Restricted Receipts 700,000
30	Other Funds
31	Rhode Island Capital Plan Funds
32	Security Measures State Buildings 500,000
33	Energy Efficiency Improvements 500,000
34	Cranston Street Armory 500,000
	LC000763 - Page 4 of 541
1	State House Renovations 1,301,684
2	Zambarano Building Rehabilitation 3,720,000
3	Replacement of Fueling Tanks 330,000
4	Environmental Compliance 200,000
5	Big River Management Area 100,000
6	Pastore Center Buildings Demolition 1,000,000
7	Veterans Memorial Auditorium 90,000
8	Shepard Building 1,000,000
9	Pastore Center Water Tanks & Pipes 280,000
10	RI Convention Center Authority 5,500,000
11	Dunkin Donuts Center 1,500,000
12	Board of Elections (Medical Examiner) 6,000,000
13	Pastore Center Power Plant Rehabilitation 750,000
14	Accessibility – Facility Renovations 1,000,000
15	DoIT Operations System 1,000,000
16	BHDDH DD & Community Facilities – Asset Protection 200,000
17	BHDDH DD & Community Homes – Fire Code 350,000
18	BHDDH DD Regional Facilities – Asset Protection 300,000
19	BHDDH Group Homes 500,000
20	Expo Center (Springfield) 250,000
21	Hospital Consolidation 12,430,000
22	McCoy Stadium 200,000
23	Pastore Center Master Plan 2,000,000
24	South County Capital Projects 450,000
25	Capitol Hill Campus Projects 4,125,000
26	Pastore Center Campus Projects 7,587,888
27	Total – General 66,193,874
28	Debt Service Payments
29	General Revenues 163,687,862
30	Out of the general revenue appropriations for debt service, the General Treasurer is
31	authorized to make payments for the I-195 Redevelopment District Commission loan up to the
32	maximum debt service due in accordance with the loan agreement.
33	Federal Funds 1,870,830
34	Other Funds
	LC000763 - Page 5 of 541
1	Transportation Debt Service 36,322,259
2	Investment Receipts – Bond Funds 100,000
3	Total - Debt Service Payments 201,980,951
4	Energy Resources
5	Federal Funds 786,674
6	Restricted Receipts 7,817,428
7	Total – Energy Resources 8,604,102
8	Rhode Island Health Benefits Exchange
9	General Revenues 2,755,841
10	Restricted Receipts 7,447,556
11	Total – Rhode Island Health Benefits Exchange 10,203,397
12	Office of Diversity, Equity & Opportunity
13	General Revenues 1,304,197
14	Other Funds 122,303
15	Total – Office of Diversity, Equity & Opportunity 1,426,500
16	Capital Asset Management and Maintenance
17	General Revenues 9,817,305
18	Statewide Savings Initiatives
19	General Revenues
20	Fraud and Waste Detection (4,200,000)
21	Injured-on-Duty Savings (1,657,000)
22	Overtime Savings (1,000,000)
23	Statewide Efficiency Commission (10,000,000)
24	Total – Statewide Savings Initiative (16,857,000)
25	Grand Total – Administration 323,951,978
26	Business Regulation
27	Central Management
28	General Revenues 2,529,586
29	Banking Regulation
30	General Revenues 1,659,819
31	Restricted Receipts 75,000
32	Total – Banking Regulation 1,734,819
33	Securities Regulation
34	General Revenues 1,083,495
	LC000763 - Page 6 of 541
1	Restricted Receipts 15,000
2	Total – Securities Regulation 1,098,495
3	Insurance Regulation
4	General Revenues 3,919,342
5	Restricted Receipts 2,011,929
6	Total – Insurance Regulation 5,931,271
7	Office of the Health Insurance Commissioner
8	General Revenues 1,747,106
9	Federal Funds 386,854
10	Restricted Receipts 478,223
11	Total – Office of the Health Insurance Commissioner 2,612,183
12	Board of Accountancy
13	General Revenues 5,883
14	Commercial Licensing and Gaming and Athletics Licensing
15	General Revenues 976,519
16	Restricted Receipts 950,957
17	Total – Commercial Licensing, Racing & Athletics 1,927,476
18	Building, Design and Fire Professionals
19	General Revenues 6,586,406
20	Federal Funds 378,840
21	Restricted Receipts 2,021,456
22	Other Funds
23	Quonset Development Corporation 71,199
24	Rhode Island Capital Plan Funds
25	Fire Academy 310,000
26	Total – Building, Design and Fire Professionals 9,367,901
27	Office of Cannabis Regulation
28	Restricted Receipts 5,562,901
29	Grand Total – Business Regulation 30,770,515
30	Executive Office of Commerce
31	Central Management
32	General Revenues 921,663
33	Other Funds
34	Rhode Island Capital Plan Funds
	LC000763 - Page 7 of 541
1	Site Readiness 1,000,000
2	Total – Central Management 1,921,663
3	Housing and Community Development
4	General Revenues 841,208
5	Federal Funds 17,611,003
6	Restricted Receipts 4,754,319
7	Total – Housing and Community Development 23,206,530
8	Quasi–Public Appropriations
9	General Revenues
10	Rhode Island Commerce Corporation 7,589,906
11	Airport Impact Aid 762,500
12	Sixty percent (60%) of the funds appropriated for airport impact aid shall be distributed
13	to each airport serving more than 1,000,000 passengers based upon its percentage of the total
14	passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%) of
15	the funds appropriated shall be distributed based on the share of landings during the calendar year
16	2019 at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset
17	Airport, T.F. Green Airport and Westerly Airport, respectively. The Rhode Island Commerce
18	Corporation shall make an impact payment to the towns or cities in which the airport is located
19	based on this calculation. Each community upon which any part of the above airports is located
20	shall receive an equal share of the payment associated with that airport.
21	STAC Research Alliance 900,000
22	Innovative Matching Grants/Internships 1,000,000
23	I-195 Redevelopment District Commission 761,000
24	Chafee Center at Bryant 476,200
25	Polaris Manufacturing Grant 350,000
26	Pay For Success 500,000
27	Other Funds
28	Rhode Island Capital Plan Funds
29	I-195 Commission 450,000
30	Quonset Piers 5,000,000
31	Quonset Point Infrastructure 4,000,000
32	Total – Quasi–Public Appropriations 21,789,606
33	Economic Development Initiatives Fund
34	General Revenues
	LC000763 - Page 8 of 541
1	Innovation Initiative 1,000,000
2	I-195 Redevelopment Fund 1,000,000
3	Rebuild RI Tax Credit Fund 15,000,000
4	Competitive Cluster Grants 100,000
5	P-tech 200,000
6	Small Business Promotion 300,000
7	Small Business Assistance 750,000
8	Total – Economic Development Initiatives Fund 18,350,000
9	Commerce Programs
10	General Revenues
11	Wavemaker Fellowship 1,200,000
12	40th Portal 1,450,000
13	Streamline and Simplify 262,724
14	Total – Commerce Programs 2,912,724
15	Grand Total – Executive Office of Commerce 68,180,523
16	Labor and Training
17	Central Management
18	General Revenues 797,120
19	Restricted Receipts 222,508
20	Total – Central Management 1,019,628
21	Workforce Development Services
22	General Revenues 6,276,757
23	Provided that $100,000 be allocated to support the Opportunities Industrialization Center.
24	Federal Funds 25,729,383
25	Restricted Receipts 17,247,532
26	Other Funds 197,142
27	Total – Workforce Development Services 49,450,814
28	Workforce Regulation and Safety
29	General Revenues 3,231,560
30	Income Support
31	General Revenues 5,066,681
32	Federal Funds 14,259,697
33	Restricted Receipts 4,409,670
34	Other Funds
	LC000763 - Page 9 of 541
1	Temporary Disability Insurance Fund 203,094,524
2	Employment Security Fund 162,735,000
3	Total – Income Support 389,565,572
4	Injured Workers Services
5	Restricted Receipts 10,573,722
6	Labor Relations Board
7	General Revenues 441,669
8	Grand Total – Labor and Training 454,282,965
9	Department of Revenue
10	Director of Revenue
11	General Revenues 2,141,620
12	Office of Revenue Analysis
13	General Revenues 841,407
14	Lottery Division
15	Other Funds 420,149,414
16	Municipal Finance
17	General Revenues 1,722,673
18	Taxation
19	General Revenues 31,438,000
20	Federal Funds 0
21	Restricted Receipts 790,184
22	Other Funds
23	Motor Fuel Tax Evasion 172,961
24	Total – Taxation 32,401,145
25	Registry of Motor Vehicles
26	General Revenues 24,834,484
27	Federal Funds 545,243
28	Restricted Receipts 2,834,763
29	Other Funds
30	DMV – HMA Transfer from DOT 4,534,968
31	Total – Registry of Motor Vehicles 32,749,458
32	State Aid
33	General Revenues
34	Distressed Communities Relief Fund 12,384,458
	LC000763 - Page 10 of 541
1	Payment in Lieu of Tax Exempt Properties 40,830,409
2	Motor Vehicle Excise Tax Payments 77,989,394
3	Property Revaluation Program 688,856
4	Restricted Receipts 922,013
5	Total – State Aid 132,815,130
6	Collections
7	General Revenues 899,649
8	Grand Total – Revenue 623,720,496
9	Legislature
10	General Revenues 44,754,101
11	Restricted Receipts 1,832,014
12	Grand Total – Legislature 46,586,115
13	Lieutenant Governor
14	General Revenues 1,147,816
15	Secretary of State
16	Administration
17	General Revenues 3,675,528
18	Corporations
19	General Revenues 2,191,898
20	State Archives
21	General Revenues 112,670
22	Restricted Receipts 426,672
23	Total – State Archives 539,342
24	Elections and Civics
25	General Revenues 2,117,101
26	Federal Funds 1,016,230
27	Total – Elections and Civics 3,133,331
28	State Library
29	General Revenues 683,490
30	Provided that $125,000 be allocated to support the Rhode Island Historical Society
31	pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the
32	Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.
33	Office of Public Information
34	General Revenues 452,568
	LC000763 - Page 11 of 541
1	Receipted Receipts 25,000
2	Total – Office of Public Information 477,568
3	Grand Total – Secretary of State 10,701,157
4	General Treasurer
5	Treasury
6	General Revenues 2,643,533
7	Federal Funds 287,818
8	Other Funds
9	Temporary Disability Insurance Fund 249,940
10	Tuition Savings Program – Administration 413,319
11	Total –Treasury 3,595,210
12	State Retirement System
13	Restricted Receipts
14	Admin Expenses – State Retirement System 9,898,528
15	Retirement – Treasury Investment Operations 1,838,053
16	Defined Contribution – Administration 231,632
17	Total – State Retirement System 11,968,213
18	Unclaimed Property
19	Restricted Receipts 24,912,844
20	Crime Victim Compensation Program
21	General Revenues 394,018
22	Federal Funds 711,156
23	Restricted Receipts 636,944
24	Total – Crime Victim Compensation Program 1,742,118
25	Grand Total – General Treasurer 42,218,385
26	Board of Elections
27	General Revenues 2,462,583
28	Rhode Island Ethics Commission
29	General Revenues 1,845,298
30	Office of Governor
31	General Revenues
32	General Revenues 6,243,211
33	Contingency Fund 250,000
34	Grand Total – Office of Governor 6,493,211
	LC000763 - Page 12 of 541
1	Commission for Human Rights
2	General Revenues 1,353,591
3	Federal Funds 563,414
4	Grand Total – Commission for Human Rights 1,917,005
5	Public Utilities Commission
6	Federal Funds 178,002
7	Restricted Receipts 12,034,581
8	Grand Total – Public Utilities Commission 12,212,583
9	Office of Health and Human Services
10	Central Management
11	General Revenues 30,406,442
12	Of this appropriation, $115,310 is to increase the Medicaid program’s contribution to the
13	per-member/per-month payment to RI Quality Institute for operation of the statewide Health
14	Information Exchange, $120,000 is for upgrades to the Health Information Exchange
15	infrastructure, and $100,000 is for the state share of financing for continued operation of the
16	statewide clinical quality measurement system developed using federal funding from the State
17	Innovation Models (SIM) Initiative. Each of the aforementioned appropriations is subject to the
18	approval of the Secretary of the Executive Office of Health and Human Services and the Director
19	of the Office of Management and Budget prior to being obligated.
20	Federal Funds 145,779,469
21	Of this appropriation, $1,037,790 is to increase the Medicaid program’s contribution to
22	the per-member/per-month payment to RI Quality Institute for operation of the statewide Health
23	Information Exchange, $1,080,000 is for upgrades to the Health Information Exchange
24	infrastructure, and $900,000 is for financing the continued operation of the statewide clinical
25	quality measurement system developed using federal funding from the State Innovation Models
26	(SIM) Initiative. Each of the aforementioned appropriations is subject to the approval of the
27	Secretary of the Executive Office of Health and Human Services and the Director of the Office of
28	Management and Budget prior to being obligated.
29	Restricted Receipts 15,711,366
30	Total – Central Management 191,897,277
31	Medical Assistance
32	General Revenues
33	Managed Care 315,464,320
34	Hospitals 88,057,080
	LC000763 - Page 13 of 541
1	Nursing Facilities 164,773,740
2	Home and Community Based Services 41,837,041
3	Other Services 95,137,990
4	Pharmacy 74,760,160
5	Rhody Health 188,776,008
6	Federal Funds
7	Managed Care 412,424,941
8	Hospitals 99,508,398
9	Nursing Facilities 184,767,499
10	Home and Community Based Services 46,913,576
11	Other Services 518,168,339
12	Pharmacy (572,412)
13	Rhody Health 208,722,749
14	Other Programs 43,038,580
15	Restricted Receipts 9,024,205
16	Total – Medical Assistance 2,490,802,214
17	Elderly Affairs
18	General Revenues 8,421,239
19	Of this amount, $140,000 to provide elder services, including respite, through the
20	Diocese of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term
21	Care in accordance with Rhode Island General Law, Chapter 42-66.7, $85,000 for security for
22	housing for the elderly in accordance with Rhode Island General Law, Section 42-66.1-3,
23	$800,000 for Senior Services Support and $580,000 for elderly nutrition, of which $530,000 is for
24	Meals on Wheels.
25	Federal Funds 13,511,791
26	Restricted Receipts 172,609
27	Total – Elderly Affairs 22,105,639
28	Office of Veterans' Affairs
29	General Revenues 25,831,689
30	Of this amount, $400,000 to provide support services through Veterans’ Organizations.
31	Federal Funds 13,459,517
32	Restricted Receipts 1,000,000
33	Total – Office of Veterans' Affairs 40,291,206
34	Grand Total – Office of Health and Human Services 2,745,096,336
	LC000763 - Page 14 of 541
1	Children, Youth, and Families
2	Central Management
3	General Revenues 10,944,609
4	Federal Funds 3,729,331
5	Total – Central Management 14,673,940
6	Children's Behavioral Health Services
7	General Revenues 7,185,060
8	Federal Funds 6,313,808
9	Total – Children's Behavioral Health Services 13,498,868
10	Juvenile Correctional Services
11	General Revenues 22,361,978
12	Federal Funds 184,338
13	Other Funds
14	Rhode Island Capital Plan Funds
15	Training School Maintenance 1,500,000
16	Training School Generators 425,000
17	Total – Juvenile Correctional Services 24,499,991
18	Child Welfare
19	General Revenues
20	General Revenues 126,119,254
21	18 to 21 Year Olds 452,521
22	Federal Funds 47,287,733
23	Restricted Receipts 1,858,882
24	Total – Child Welfare 175,718,390
25	Higher Education Incentive Grants
26	General Revenues 200,000
27	Grand Total – Children, Youth, and
28	Families 228,591,189
29	Health
30	Central Management
31	General Revenues 3,644,060
32	Federal Funds 4,318,002
33	Restricted Receipts 6,758,617
34	Total – Central Management 14,720,679
	LC000763 - Page 15 of 541
1	Community Health and Equity
2	General Revenues 1,673,497
3	Federal Funds 68,573,339
4	Restricted Receipts 38,176,076
5	Total – Community Health and Equity 108,422,912
6	Environmental Health
7	General Revenues 5,631,319
8	Federal Funds 7,433,183
9	Restricted Receipts 625,138
10	Total – Environmental Health 13,689,640
11	Health Laboratories and Medical Examiner
12	General Revenues 10,733,047
13	Federal Funds 2,012,392
14	Other Funds
15	Rhode Island Capital Plan Funds
16	Laboratory Equipment 400,000
17	Total – Health Laboratories and Medical Examiner 13,145,439
18	Customer Services
19	General Revenues 7,636,027
20	Federal Funds 4,064,441
21	Restricted Receipts 1,405,836
22	Total – Customer Services 13,106,304
23	Policy, Information and Communications
24	General Revenues 924,067
25	Federal Funds 3,238,593
26	Restricted Receipts 3,008,897
27	Total – Policy, Information and Communications 7,171,557
28	Preparedness, Response, Infectious Disease & Emergency Services
29	General Revenues 1,998,023
30	Federal Funds 16,362,030
31	Total – Preparedness, Response, Infectious Disease &
32	Emergency Services 18,360,053
33	Grand Total - Health 188,616,584
34	Human Services
	LC000763 - Page 16 of 541
1	Central Management
2	General Revenues 4,796,879
3	Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to
4	provide direct services through the Coalition Against Domestic Violence, $250,000 is to support
5	Project Reach activities provided by the RI Alliance of Boys and Girls Clubs, $217,000 is for
6	outreach and supportive services through Day One, $175,000 is for food collection and
7	distribution through the Rhode Island Community Food Bank, $500,000 for services provided to
8	the homeless at Crossroads Rhode Island, and $520,000 for the Community Action Fund and
9	$200,000 for the Institute for the Study and Practice of Nonviolence’s Reduction Strategy.
10	Federal Funds 4,987,351
11	Total – Central Management 9,784,230
12	Child Support Enforcement
13	General Revenues 2,822,190
14	Federal Funds 6,926,373
15	Total – Child Support Enforcement 9,748,563
16	Individual and Family Support
17	General Revenues 31,647,539
18	Federal Funds 113,324,185
19	Restricted Receipts 11,918,988
20	Other Funds
21	Food Stamp Bonus Funding 170,000
22	Intermodal Surface Transportation Fund 4,428,478
23	Rhode Island Capital Plan Funds
24	Blind Vending Facilities 165,000
25	Total – Individual and Family Support 161,654,190
26	Health Care Eligibility
27	General Revenues 2,608,841
28	Federal Funds 10,792,058
29	Total – Health Care Eligibility 13,400,899
30	Supplemental Security Income Program
31	General Revenues 20,169,608
32	Rhode Island Works
33	General Revenues 11,716,905
34	Federal Funds 92,933,110
	LC000763 - Page 17 of 541
1	Total – Rhode Island Works 104,650,015
2	Other Programs
3	General Revenues 1,133,280
4	Of this appropriation, $90,000 shall be used for hardship contingency payments.
5	Federal Funds 265,157,901
6	Total – Other Programs 266,291,181
7	Grand Total – Human Services 585,698,686
8	Behavioral Healthcare, Developmental Disabilities, and Hospitals
9	Central Management
10	General Revenues 3,495,795
11	Federal Funds 1,316,004
12	Total – Central Management 4,811,799
13	Hospital and Community System Support
14	General Revenues 2,241,946
15	Federal Funds 23,377
16	Total – Hospital and Community System Support 2,265,323
17	Services for the Developmentally Disabled
18	General Revenues 131,370,111
19	Of this general revenue funding, $3.0 million shall be expended on certain community-
20	based BHDDH developmental disability private provider and self-directed consumer direct care
21	service worker raises and associated payroll costs as authorized by the Department of Behavioral
22	Healthcare, Developmental Disabilities and Hospitals. Any increases for direct support staff in
23	residential or other community-based settings must first receive the approval of the Office of
24	Management and Budget and the Executive Office of Health and Human Services.
25	Of this general revenue funding, $750,000 is to support technical and other assistance for
26	community-based agencies to ensure they transition to providing integrated services to adults
27	with developmental disabilities that comply with the consent decree.
28	Federal Funds 147,498,685
29	Of this funding, $841,006 is to support technical and other assistance for community-
30	based agencies to ensure they transition to providing integrated services to adults with
31	developmental disabilities that comply with the consent decree.
32	Restricted Receipts 1,525,800
33	Other Funds
34	Rhode Island Capital Plan Funds
	LC000763 - Page 18 of 541
1	DD Residential Development 500,000
2	Total – Services for the Developmentally Disabled 280,894,596
3	Behavioral Healthcare Services
4	General Revenues 3,177,675
5	Federal Funds 34,042,755
6	Of this federal funding, $900,000 shall be expended on the Municipal Substance
7	Abuse Task Forces and $128,000 shall be expended on NAMI of RI. Also included is
8	$250,000 from Social Services Block Grant funds and/or the Mental Health Block Grant funds to
9	be provided to The Providence Center to coordinate with Oasis Wellness and Recovery Center for
10	its supports and services program offered to individuals with behavioral health issues.
11	Restricted Receipts 149,600
12	Other Funds
13	Rhode Island Capital Plan Funds
14	Substance Abuse Asset Protection 350,000
15	Total – Behavioral Healthcare Services 37,720,030
16	Hospital and Community Rehabilitative Services
17	General Revenues 55,007,785
18	Federal Funds 63,058,216
19	Restricted Receipts 4,412,947
20	Other Funds
21	Rhode Island Capital Plan Funds
22	Hospital Equipment 300,000
23	Total - Hospital and Community Rehabilitative Services 122,778,948
24	Grand Total – Behavioral Healthcare, Developmental
25	Disabilities, and Hospitals 448,470,696
26	Office of the Child Advocate
27	General Revenues 986,701
28	Federal Funds 247,356
29	Grand Total – Office of the Child Advocate 1,234,057
30	Commission on the Deaf and Hard of Hearing
31	General Revenues 563,338
32	Restricted Receipts 130,000
33	Grand Total – Comm. On Deaf and Hard of Hearing 693,338
34	Governor’s Commission on Disabilities
	LC000763 - Page 19 of 541
1	General Revenues
2	General Revenues 555,672
3	Livable Home Modification Grant Program 499,397
4	Provided that this will be used for home modification and accessibility
5	enhancements to construct, retrofit, and/or renovate residences to allow individuals to remain in
6	community settings. This will be in consultation with the Executive Office of Health and Human
7	Services.
8	Federal Funds 458,689
9	Restricted Receipts 44,901
10	Total – Governor’s Commission on Disabilities 1,558,659
11	Office of the Mental Health Advocate
12	General Revenues 602,411
13	Elementary and Secondary Education
14	Administration of the Comprehensive Education Strategy
15	General Revenues 21,629,338
16	Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s
17	Hospital pursuant to Rhode Island General Law, Section 16-7-20 and that $345,000 be allocated
18	to support child opportunity zones through agreements with the Department of Elementary and
19	Secondary Education to strengthen education, health and social services for students and their
20	families as a strategy to accelerate student achievement.
21	Provided further that $590,000 shall be allocated to further support improving students’
22	mental health by investing in classroom-based intervention through teacher and staff training and
23	professional development.
24	Federal Funds 211,637,474
25	Restricted Receipts
26	Restricted Receipts 3,155,409
27	HRIC Adult Education Grants 3,500,000
28	Total – Admin. of the Comprehensive Ed. Strategy 239,922,221
29	Davies Career and Technical School
30	General Revenues 13,694,981
31	Federal Funds 1,416,084
32	Restricted Receipts 3,784,140
33	Other Funds
34	Operational Transfers to Davies 100,000
	LC000763 - Page 20 of 541
1	Rhode Island Capital Plan Funds
2	Davies HVAC 700,000
3	Davies Asset Protection 150,000
4	Total – Davies Career and Technical School 19,845,205
5	RI School for the Deaf
6	General Revenues 6,701,193
7	Federal Funds 506,048
8	Restricted Receipts 837,032
9	Other Funds
10	School for the Deaf Transformation Grants 59,000
11	Rhode Island Capital Plan Funds
12	Asset Protection 50,000
13	Total – RI School for the Deaf 8,153,273
14	Metropolitan Career and Technical School
15	General Revenues 9,342,007
16	Other Funds
17	Rhode Island Capital Plan Funds
18	MET School Asset Protection 250,000
19	Total – Metropolitan Career and Technical School 9,592,007
20	Education Aid
21	General Revenues 951,046,281
22	Restricted Receipts 26,283,985
23	Other Funds
24	Permanent School Fund 500,000
25	Provided that $500,000 be provided to support the Advanced Coursework Network.
26	Total – Education Aid 977,830,266
27	Central Falls School District
28	General Revenues 41,087,651
29	School Construction Aid
30	General Revenues
31	School Housing Aid 78,984,971
32	School Building Authority Fund 1,015,029
33	Total – School Construction Aid 80,000,000
34	Teachers' Retirement
	LC000763 - Page 21 of 541
1	General Revenues 112,337,502
2	Grand Total – Elementary and Secondary Education 1,488,768,125
3	Public Higher Education
4	Office of Postsecondary Commissioner
5	General Revenues 18,176,011
6	Provided that $355,000 shall be allocated the Rhode Island College Crusade pursuant to
7	the Rhode Island General Law, Section 16-70-5 and that $60,000 shall be allocated to Best
8	Buddies Rhode Island to support its programs for children with developmental and intellectual
9	disabilities. It is also provided that $5,995,000 shall be allocated to the Rhode Island Promise
10	Scholarship program.
11	Federal Funds
12	Federal Funds 3,600,000
13	Guaranty Agency Administration 400,000
14	Guaranty Agency Operating Fund-Scholarships & Grants 5,507,013
15	Rhode Island Promise – Available Reserves 5,346,128
16	Provided that $2,046,128 shall be allocated to the Adult Promise Scholarship at
17	the Community College of Rhode Island, and that $3,300,000 shall support the Rhode Island
18	College Promise program.
19	Restricted Receipts 2,752,977
20	Other Funds
21	Tuition Savings Program – Dual Enrollment 2,300,000
22	Tuition Savings Program – Scholarships and Grants 2,500,000
23	Nursing Education Center – Operating 3,034,680
24	Rhode Island Capital Plan Funds
25	Higher Education Centers 2,000,000
26	Provided that the state fund no more than 50.0 percent of the total project
27	cost.
28	Asset Protection 341,000
29	Total – Office of Postsecondary Commissioner 45,957,809
30	University of Rhode Island
31	General Revenues
32	General Revenues 83,390,529
33	Provided that in order to leverage federal funding and support economic development,
34	$350,000 shall be allocated to the Small Business Development Center and that $50,000 shall be
	LC000763 - Page 22 of 541
1	allocated to Special Olympics Rhode Island to support its mission of providing athletic
2	opportunities for individuals with intellectual and developmental disabilities.
3	Debt Service 30,535,395
4	RI State Forensics Laboratory 1,299,182
5	Other Funds
6	University and College Funds 677,435,028
7	Debt – Dining Services 1,062,129
8	Debt – Education and General 4,830,975
9	Debt – Health Services 792,955
10	Debt – Housing Loan Funds 12,867,664 Debt – Memorial Union 323,009
11	Debt – Ryan Center 2,393,006
12	Debt – Alton Jones Services 102,525
13	Debt – Parking Authority 1,126,020
14	Debt – Restricted Energy Conservation 521,653
15	Debt – URI Energy Conservation 2,103,157
16	Rhode Island Capital Plan Funds
17	Asset Protection 8,326,839
18	Fine Arts Center Renovation 7,070,064
19	Total – University of Rhode Island 834,180,130
20	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
21	unencumbered balances as of June 30, 2020 relating to the University of Rhode Island are hereby
22	reappropriated to fiscal year 2021.
23	Rhode Island College
24	General Revenues
25	General Revenues 50,339,615
26	Debt Service 6,180,718
27	Other Funds
28	University and College Funds 132,924,076
29	Debt – Education and General 880,433
30	Debt – Housing 366,667
31	Debt – Student Center and Dining 153,428
32	Debt – Student Union 206,000
33	Debt – G.O. Debt Service 1,642,121
34	Debt Energy Conservation 635,275
	LC000763 - Page 23 of 541
1	Rhode Island Capital Plan Funds
2	Asset Protection 3,669,050
3	Infrastructure Modernization 3,000,000
4	Academic Building Phase I 2,000,000
5	Total – Rhode Island College 201,997,383
6	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
7	unencumbered balances as of June 30, 2020 relating to Rhode Island College are hereby
8	reappropriated to fiscal year 2021.
9	Community College of Rhode Island
10	General Revenues
11	General Revenues 52,483,378
12	Debt Service 1,898,030
13	Restricted Receipts 633,400
14	Other Funds
15	University and College Funds 104,605,016
16	CCRI Debt Service – Energy Conservation 805,312
17	Rhode Island Capital Plan Funds
18	Asset Protection 2,439,076
19	Knight Campus Lab Renovation 1,300,000
20	Knight Campus Renewal 3,500,000
21	Data, Cabling, and Power Infrastructure 500,000
22	Total – Community College of RI 168,164,212
23	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
24	unencumbered balances as of June 30, 2020 relating to the Community College of Rhode Island
25	are hereby reappropriated to fiscal year 2021.
26	Grand Total – Public Higher Education 1,250,299,534
27	RI State Council on the Arts
28	General Revenues
29	Operating Support 839,748
30	Grants 1,245,000
31	Provided that $375,000 be provided to support the operational costs of WaterFire
32	Providence art installations.
33	Federal Funds 762,500
34	Restricted Receipts 5,000
	LC000763 - Page 24 of 541
1	Other Funds
2	Art for Public Facilities 626,000
3	Grand Total – RI State Council on the Arts 3,478,248
4	RI Atomic Energy Commission
5	General Revenues 1,059,094
6	Restricted Receipts 99,000
7	Other Funds
8	URI Sponsored Research 287,000
9	Rhode Island Capital Plan Funds
10	RINSC Asset Protection 50,000
11	Grand Total – RI Atomic Energy Commission 1,495,094
12	RI Historical Preservation and Heritage Commission
13	General Revenues 1,488,293
14	Provided that $30,000 support the operational costs of the Fort Adam Trust’s restoration
15	activities.
16	Federal Funds 557,028
17	Restricted Receipts 421,439
18	Other Funds
19	RIDOT Project Review 128,570
20	Grand Total – RI Historical Preservation and Heritage Comm. 2,595,330
21	Attorney General
22	Criminal
23	General Revenues 17,969,266
24	Federal Funds 3,552,999
25	Restricted Receipts 144,335
26	Total – Criminal 21,666,600
27	Civil
28	General Revenues 5,595,839
29	Restricted Receipts 765,181
30	Total – Civil 6,361,020
31	Bureau of Criminal Identification
32	General Revenues 1,769,535
33	General
34	General Revenues 3,340,563
	LC000763 - Page 25 of 541
1	Other Funds
2	Rhode Island Capital Plan Funds
3	Building Renovations and Repairs 150,000
4	Total – General 3,490,563
5	Grand Total – Attorney General 33,287,718
6	Corrections
7	Central Management
8	General Revenues 16,642,761
9	Federal Funds 44,649
10	Total – Central Management 16,687,410
11	Parole Board
12	General Revenues 1,501,549
13	Federal Funds 116,872
14	Total – Parole Board 1,618,421
15	Custody and Security
16	General Revenues 141,066,001
17	Federal Funds 796,727
18	Total – Custody and Security 141,862,728
19	Institutional Support
20	General Revenues 21,557,913
21	Other Funds
22	Rhode Island Capital Plan Funds
23	Asset Protection 12,754,000
24	Total – Institutional Support 34,311,913
25	Institutional Based Rehab./Population Management
26	General Revenues 14,203,252
27	Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender
28	discharge planning.
29	Federal Funds 844,026
30	Restricted Receipts 44,473
31	Total – Institutional Based Rehab/Population Mgt. 15,091,751
32	Healthcare Services
33	General Revenues 25,821,609
34	Community Corrections
	LC000763 - Page 26 of 541
1	General Revenues 17,312,125
2	Federal Funds 84,437
3	Restricted Receipts 14,896
4	Total – Community Corrections 17,411,458
5	Grand Total – Corrections 252,805,290
6	Judiciary
7	Supreme Court
8	General Revenues
9	General Revenues 30,361,862
10	Provided however, that no more than $1,183,205 in combined total shall be offset to the
11	Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the
12	Department of Children, Youth, and Families, and the Department of Public Safety for square-
13	footage occupancy costs in public courthouses and further provided that $230,000 be allocated to
14	the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy
15	project pursuant to Rhode Island General Law, Section 12-29-7 and that $90,000 be allocated to
16	Rhode Island Legal Services, Inc. to provide housing and eviction defense to indigent individuals.
17	Defense of Indigents 4,403,487
18	Federal Funds 133,759
19	Restricted Receipts 3,603,699
20	Other Funds
21	Rhode Island Capital Plan Funds
22	Judicial Complexes - HVAC 1,000,000
23	Judicial Complexes Asset Protection 1,000,000
24	Judicial Complexes Fan Coil Replacements 500,000
25	Licht Chillers Replacement 1,200,000
26	Licht Judicial Complex Restoration 750,000
27	Total - Supreme Court 42,952,807
28	Judicial Tenure and Discipline
29	General Revenues 154,616
30	Superior Court
31	General Revenues 25,020,009
32	Federal Funds 33,500
33	Restricted Receipts 400,983
34	Total – Superior Court 25,454,492
	LC000763 - Page 27 of 541
1	Family Court
2	General Revenues 22,958,064
3	Federal Funds 2,977,481
4	Total – Family Court 25,935,545
5	District Court
6	General Revenues 13,946,310
7	Restricted Receipts 60,000
8	Total - District Court 14,006,310
9	Traffic Tribunal
10	General Revenues 9,283,407
11	Workers' Compensation Court
12	Restricted Receipts 8,943,104
13	Grand Total – Judiciary 126,730,281
14	Military Staff
15	General Revenues 3,219,493
16	Federal Funds 34,354,996
17	Restricted Receipts
18	RI Military Family Relief Fund 55,000
19	Other Funds
20	Rhode Island Capital Plan Funds
21	Asset Protection 700,000
22	Joint Force Headquarters Building 1,800,000
23	Grand Total – Military Staff 40,129,489
24	Public Safety
25	Central Management
26	General Revenues 1,268,763
27	Federal Funds 14,579,673
28	Restricted Receipts 72,319
29	Total – Central Management 15,920,755
30	E-911 Emergency Telephone System
31	General Revenues 6,792,261
32	Security Services
33	General Revenues 26,743,619
34	Municipal Police Training Academy
	LC000763 - Page 28 of 541
1	General Revenues 296,254
2	Federal Funds 419,790
3	Total – Municipal Police Training Academy 716,044
4	State Police
5	General Revenues 76,095,776
6	Federal Funds 4,986,942
7	Restricted Receipts 1,670,000
8	Other Funds
9	Rhode Island Capital Plan Funds
10	DPS Asset Protection 600,000
11	Training Academy Upgrades 425,000
12	Facilities Master Plan 350,000
13	Headquarters Roof Project 2,000,000
14	Airport Corporation Assistance 146,832
15	Road Construction Reimbursement 2,244,969
16	Weight and Measurement Reimbursement 400,000
17	Total – State Police 88,919,519
18	Grand Total – Public Safety 139,092,198
19	Office of Public Defender
20	General Revenues 12,848,271
21	Federal Funds 75,665
22	Grand Total – Office of Public Defender 12,923,936
23	Emergency Management Agency
24	General Revenues 2,439,647
25	Federal Funds 9,295,523
26	Restricted Receipts 468,005
27	Other Funds
28	Rhode Island Capital Plan Funds
29	RI Statewide Communications Network 1,494,414
30	Grand Total – Emergency Management Agency 13,697,589
31	Environmental Management
32	Office of the Director
33	General Revenues 7,395,368
34	Of this general revenue amount, $50,000 is appropriated to the Conservation Districts.
	LC000763 - Page 29 of 541
1	Federal Funds 212,741
2	Restricted Receipts 3,891,345
3	Total – Office of the Director 11,499,454
4	Natural Resources
5	General Revenues 24,592,693
6	Federal Funds 21,990,427
7	Restricted Receipts 3,977,991
8	Other Funds
9	DOT Recreational Projects 762,000
10	Blackstone Bikepath Design 1,000,000
11	Transportation MOU 10,286
12	Rhode Island Capital Plan Funds
13	Dam Repair 1,860,000
14	Fort Adams Rehabilitation 300,000
15	Recreational Facilities Improvements 3,100,000
16	Galilee Piers Upgrade 1,200,000
17	Marine Infrastructure and Pier Development 750,000
18	Total – Natural Resources 59,543,397
19	Environmental Protection
20	General Revenues 13,190,507
21	Federal Funds 10,106,352
22	Restricted Receipts 8,463,628
23	Other Funds
24	Transportation MOU 87,269
25	Total – Environmental Protection 31,847,756
26	Grand Total – Environmental Management 102,890,607
27	Coastal Resources Management Council
28	General Revenues 2,913,195
29	Federal Funds 1,597,735
30	Restricted Receipts 250,000
31	Other Funds
32	Rhode Island Capital Plan Funds
33	Rhode Island Coastal Storm Risk Study 500,000
34	Rhode Island Beach SAMP 50,000
	LC000763 - Page 30 of 541
1	Grand Total – Coastal Resources Mgmt. Council 5,310,930
2	Transportation
3	Central Management
4	Federal Funds 5,955,305
5	Other Funds
6	Gasoline Tax 7,728,427
7	Total – Central Management 13,683,732
8	Management and Budget
9	Other Funds
10	Gasoline Tax 2,353,268
11	Infrastructure Engineering
12	Federal Funds 321,053,094
13	Restricted Receipts 3,007,550
14	Other Funds
15	Gasoline Tax 76,970,197
16	Toll Revenue 25,000,000
17	Land Sale Revenue 2,595,391
18	Rhode Island Capital Plan Funds
19	Bike Path Maintenance 400,000
20	Highway Improvement Program 32,451,346
21	RIPTA - College Hill Bus Terminal 800,000
22	RIPTA - Land and Buildings 90,000
23	RIPTA – Warwick Bus Hub 120,000
24	Total - Infrastructure Engineering 462,487,578
25	Infrastructure Maintenance
26	Other Funds
27	Gasoline Tax 21,471,321
28	Non-Land Surplus Property 50,000
29	Utility Access Permit Fees 500,000
30	Rhode Island Highway Maintenance Account 124,684,562
31	Provided that $400,000 shall be allocated to bicycle path projects and $150,000
32	shall be allocated to Rhode Island Welcome Center improvements.
33	Rhode Island Capital Plan Funds
34	Maintenance Facilities Improvements 500,000
	LC000763 - Page 31 of 541
1	Salt Storage Facilities 1,900,000
2	Maintenance - Equipment Replacement 1,500,000
3	Train Station Maintenance and Repairs 350,000
4	Total – Infrastructure Maintenance 150,955,883
5	Grand Total – Transportation 629,480,461
6	Statewide Totals
7	General Revenues 4,075,093,139
8	Federal Funds 3,318,666,714
9	Restricted Receipts 301,461,708
10	Other Funds 2,234,815,855
11	Statewide Grand Total 9,572,741,806
12	SECTION 2. Each line appearing in Section 1 of this Article shall constitute an
13	appropriation.
14	SECTION 3. Upon the transfer of any function of a department or agency to another
15	department or agency, the Governor is hereby authorized by means of executive order to transfer
16	or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected
17	thereby.
18	SECTION 4. From the appropriation for contingency shall be paid such sums as may be
19	required at the discretion of the Governor to fund expenditures for which appropriations may not
20	exist. Such contingency funds may also be used for expenditures in the several departments and
21	agencies where appropriations are insufficient, or where such requirements are due to unforeseen
22	conditions or are non-recurring items of an unusual nature. Said appropriations may also be used
23	for the payment of bills incurred due to emergencies or to any offense against public peace and
24	property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as
25	amended. All expenditures and transfers from this account shall be approved by the Governor.
26	SECTION 5. The general assembly authorizes the state controller to establish the internal
27	service accounts shown below, and no other, to finance and account for the operations of state
28	agencies that provide services to other agencies, institutions and other governmental units on a
29	cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are
30	managed in a businesslike manner, promote efficient use of services by making agencies pay the
31	full costs associated with providing the services, and allocate the costs of central administrative
32	services across all fund types, so that federal and other non-general fund programs share in the
33	costs of general government support. The controller is authorized to reimburse these accounts for
34	the cost of work or services performed for any other department or agency subject to the
	LC000763 - Page 32 of 541
1	following expenditure limitations:
2	Account Expenditure Limit
3	State Assessed Fringe Benefit Internal Service Fund 31,377,620
4	Administration Central Utilities Internal Service Fund 23,055,162
5	State Central Mail Internal Service Fund 6,290,947
6	State Telecommunications Internal Service Fund 3,450,952
7	State Automotive Fleet Internal Service Fund 12,740,920
8	Surplus Property Internal Service Fund 3,000
9	Health Insurance Internal Service Fund 252,562,111
10	State Fleet Revolving Loan Fund 273,786
11	Other Post-Employment Benefits Fund 63,858,483
12	Capitol Police Internal Service Fund 1,479,703
13	Corrections Central Distribution Center Internal Service Fund 6,798,359
14	Correctional Industries Internal Service Fund 8,191,195
15	Secretary of State Record Center Internal Service Fund 969,729
16	Human Resources Internal Service Fund 15,227,277
17	DCAMM Facilities Internal Service Fund 40,379,969
18	Information Technology Internal Service Fund 40,631,267
19	SECTION 6. Legislative Intent - The General Assembly may provide a written
20	"statement of legislative intent" signed by the chairperson of the House Finance Committee and
21	by the chairperson of the Senate Finance Committee to show the intended purpose of the
22	appropriations contained in Section 1 of this Article. The statement of legislative intent shall be
23	kept on file in the House Finance Committee and in the Senate Finance Committee.
24	At least twenty (20) days prior to the issuance of a grant or the release of funds, which
25	grant or funds are listed on the legislative letter of intent, all department, agency and corporation
26	directors, shall notify in writing the chairperson of the House Finance Committee and the
27	chairperson of the Senate Finance Committee of the approximate date when the funds are to be
28	released or granted.
29	SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby
30	appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all
31	funds required to be disbursed for the benefit payments from the Temporary Disability Insurance
32	Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2020.
33	SECTION 8. Appropriation of Employment Security Funds -- There is hereby
34	appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to
	LC000763 - Page 33 of 541
1	be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending
2	June 30, 2020.
3	SECTION 9. Appropriation of Lottery Division Funds -- There is hereby appropriated to
4	the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes
5	of paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2020.
6	SECTION 10. Appropriation of CollegeBoundSaver Funds – There is hereby
7	appropriated to the Office of the General Treasurer designated funds received under the
8	CollegeBoundSaver program for transfer to the Division of Higher Education Assistance within
9	the Office of the Postsecondary Commissioner to support student financial aid for the fiscal year
10	ending June 30, 2020.
11	SECTION 11. Departments and agencies listed below may not exceed the number of full-
12	time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do
13	not include seasonal or intermittent positions whose scheduled period of employment does not
14	exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and
15	twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include
16	individuals engaged in training, the completion of which is a prerequisite of employment.
17	Provided, however, that the Governor or designee, Speaker of the House of Representatives or
18	designee, and the President of the Senate or designee may authorize an adjustment to any
19	limitation. Prior to the authorization, the State Budget Officer shall make a detailed written
20	recommendation to the Governor, the Speaker of the House, and the President of the Senate. A
21	copy of the recommendation and authorization to adjust shall be transmitted to the chairman of
22	the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the
23	Senate Fiscal Advisor.
24	State employees whose funding is from non-state general revenue funds that are time
25	limited shall receive limited term appointment with the term limited to the availability of non-
26	state general revenue funding source.
27	FY 2020 FTE POSITION AUTHORIZATION
28	Departments and Agencies Full-Time Equivalent
29	Administration 670.1
30	Business Regulation 187.0
31	Executive Office of Commerce 18.0
32	Labor and Training 451.7
33	Revenue 587.5
34	Legislature 298.5
	LC000763 - Page 34 of 541
1	Office of the Lieutenant Governor 8.0
2	Office of the Secretary of State 59.0
3	Office of the General Treasurer 89.0
4	Board of Elections 13.0
5	Rhode Island Ethics Commission 12.0
6	Office of the Governor 45.0
7	Commission for Human Rights 14.5
8	Public Utilities Commission 60.0
9	Office of Health and Human Services 479.1
10	Children, Youth, and Families 629.5
11	Health 520.6
12	Human Services 755.0
13	Behavioral Healthcare, Developmental Disabilities, and Hospitals 1,305.4
14	Office of the Child Advocate 10.0
15	Commission on the Deaf and Hard of Hearing 4.0
16	Governor’s Commission on Disabilities 4.0
17	Office of the Mental Health Advocate 4.0
18	Elementary and Secondary Education 142.1
19	School for the Deaf 60.0
20	Davies Career and Technical School 126.0
21	Office of Postsecondary Commissioner 38.0
22	Provided that 1.0 of the total authorization would be available only for positions that are
23	supported by third-party funds, 9.0 would be available only for positions at the State’s Higher
24	Education Centers located in Woonsocket and Westerly, and 10.0 would be available only for
25	positions at the Nursing Education Center.
26	University of Rhode Island 2,555.0
27	Provided that 440.0 of the total authorization would be available only for positions that
28	are supported by third-party funds, and that 445.0 of the total authorization would be available
29	only for positions that are supported by auxiliary enterprise units of the university.
30	Rhode Island College 949.2
31	Provided that 76.0 of the total authorization would be available only for positions that are
32	supported by third-party funds.
33	Community College of Rhode Island 854.1
34	Provided that 89.0 of the total authorization would be available only for positions that are
	LC000763 - Page 35 of 541
1	supported by third-party funds.
2	Rhode Island State Council on the Arts 8.6
3	RI Atomic Energy Commission 8.6
4	Historical Preservation and Heritage Commission 15.6
5	Office of the Attorney General 239.1
6	Corrections 1,426.0
7	Judicial 723.3
8	Military Staff 98.0
9	Emergency Management Agency 32.0
10	Public Safety 595.6
11	Office of the Public Defender 96.0
12	Environmental Management 406.0
13	Coastal Resources Management Council 30.0
14	Transportation 785.0
15	Total 15,413.7
16	SECTION 12. The amounts reflected in this Article include the appropriation of Rhode
17	Island Capital Plan funds for fiscal year 2020 and supersede appropriations provided for FY 2020
18	within Section 12 of Article 1 of Chapter 047 of the P.L. of 2018.
19	The following amounts are hereby appropriated out of any money in the State’s Rhode
20	Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending
21	June 30, 2021, June 30, 2022, June 30, 2023, and June 30, 2024. These amounts supersede
22	appropriations provided within Section 12 of Article 1 of Chapter 047 of the P.L. of 2018.
23	For the purposes and functions hereinafter mentioned, the State Controller is hereby
24	authorized and directed to draw his or her orders upon the General Treasurer for the payment of
25	such sums and such portions thereof as may be required by him or her upon receipt of properly
26	authenticated vouchers.
27	Fiscal Year Fiscal Year Fiscal Year Fiscal Year
28	Ending Ending Ending Ending
29	Project June 30, 2021 June 30, 2022 June 30, 2023 June 30, 2024
30	DOA – Accessibility 1,000,000 1,000,000 1,000,000 1,000,000
31	DOA – Board of Elections/Health/ME Lab 9,000,000 0 0 0
32	DOA – Capital Hill 5,100,000 6,300,000 6,200,000 7,375,000
33	DOA – Cranston Street Armory 500,000 1,100,000 2,000,000 2,100,000
34	DOA – Energy Efficiency 500,000 1,000,000 1,000,000 1,000,000
	LC000763 - Page 36 of 541
1	DOA – Hospital Reorganization 6,721,495 0 0 0
2	DOA – Pastore Center 4,600,000 5,200,000 6,250,000 5,750,000
3	DOA – Security Measures/State
4	Buildings 500,000 500,000 500,000 500,000
5	DOA – Shepard Building 850,000 750,000 750,000 750,000
6	DOA – State House Renovations 877,169 428,000 900,000 900,000
7	South County 500,000 500,000 500,000 500,000
8	DOA – Zambarano Utilities and Mtn. 2,300,000 550,000 1,300,000 1,800,000
9	DOA – BHDDH Group Homes 500,000 1,300,000 1,400,000 1,500,000
10	EOC – Quonset Piers 5,000,000 0 0 0
11	EOC – Quonset Point Infrastructure 6,000,000 0 0 0
12	DCYF – RITS Repairs 800,000 200,000 200,000 200,000
13	EL SEC – Davies School Asset Protection 150,000 150,000 150,000 150,000
14	EL SEC – Davies School HVAC 1,800,000 0 0 0
15	EL SEC – Met School Asset Protection 250,000 250,000 250,000 250,000
16	URI – Asset Protection 8,531,280 8,700,000 8,874,000 9,094,395
17	RIC – Asset Protection 4,150,000 4,233,000 4,318,000 5,061,384
18	RIC – Infrastructure Modernization 3,500,000 4,500,000 2,000,000 2,344,319
19	CCRI – Asset Protection 2,487,857 2,537,615 2,588,000 3,033,548
20	CCRI – Knight Campus Renewal 3,500,000 0 0 0
21	CCRI – Flanagan Campus Renewal 2,000,000 2,000,000 6,000,000 2,500,000
22	CCRI - Physics/Engineering Lab 1,300,000 0 0 0
23	CCRI – Data Cabling/Power Infrastructure 3,680,000 5,180,000 4,290,000 0
24	DOC – Asset Protection 14,850,000 17,700,000 17,250,000 11,500,000
25	Military Staff – Asset Protection 700,000 800,000 800,000 800,000
26	DPS – Asset Protection 650,000 650,000 900,000 400,000
27	DEM – Fort Adams Rehabilitation 300,000 300,000 300,000 300,000
28	DEM – Galilee Piers Upgrade 1,200,000 500,000 500,000 500,000
29	DEM – Marine Infrastructure/
30	Pier Development 1,000,000 1,250,000 1,250,000 1,250,000
31	DEM – Recreational Facilities Improv. 2,100,000 3,000,000 3,000,000 3,000,000
32	DEM – Natural Resources Offices &
33	Visitor’s Center 0 2,000,000 3,000,000 0
34	DOT – Highway Improvement Program 32,451,346 32,451,346 32,451,346 32,451,346
	LC000763 - Page 37 of 541
1	DOT – Capital Equipment Replacement 1,500,000 1,500,000 1,500,000 1,500,000
2	DOT – Maintenance Facility Improv. 500,000 500,000 500,000 500,000
3	DOT – Bike Maintenance Improv. 400,000 400,000 400,000 400,000
4	DOT – Salt Storage Facilities Improv. 1,500,000 1,500,000 1,000,000 1,000,000
5	SECTION 13. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects.
6	– Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund project
7	appropriations shall be reappropriated in the ensuing fiscal year and made available for the same
8	purpose. However, any such reappropriations are subject to final approval by the General
9	Assembly as part of the supplemental appropriations act. Any unexpended funds of less than five
10	hundred dollars ($500) shall be reappropriated at the discretion of the State Budget Officer.
11	SECTION 14. For the Fiscal Year ending June 30, 2020, the Rhode Island Housing and
12	Mortgage Finance Corporation shall provide from its resources such sums as appropriate in
13	support of the Neighborhood Opportunities Program. The Corporation shall provide a report
14	detailing the amount of funding provided to this program, as well as information on the number
15	of units of housing provided as a result to the Director of Administration, the Chair of the
16	Housing Resources Commission, the Chair of the House Finance Committee, the Chair of the
17	Senate Finance Committee and the State Budget Officer.
18	SECTION 15. Notwithstanding any general laws to the contrary, the Rhode Island
19	Housing and Mortgage Finance Corporation shall transfer to the State Controller the sum of one
20	million five-hundred thousand dollars ($1,500,000) by June 30, 2020.
21	SECTION 16. Notwithstanding any general laws to the contrary, the Rhode Island
22	Infrastructure Bank shall transfer to the State Controller the sum of four million dollars
23	($4,000,000) by June 30, 2020.
24	SECTION 17. Notwithstanding any general laws to the contrary, the Rhode Island
25	Student Loan Authority shall transfer to the State Controller the sum of one million five-hundred
26	thousand dollars ($1,500,000) by June 30, 2020.
27	SECTION 18. This article shall take effect upon passage.
28	ARTICLE 2
29	RELATING TO STATE FUNDS
30	SECTION 1. Section 5-20.7-15 of the General Laws in Chapter 5-20.7 entitled "Real
31	Estate Appraiser Certification Act" is hereby amended to read as follows:
32	5-20.7-15. Fees.
33	(a) The director is empowered and directed to establish a fee schedule for the application,
34	review, examination, and re-examination of applicants for certification and licensing and for the
	LC000763 - Page 38 of 541
1	issuance and renewal of certificates and for late fees; provided, that the annual fee for a
2	residential or general appraiser certificate is two hundred dollars ($200).
3	(b) There is hereby created a restricted receipt account within the general fund of the state
4	to be known as the real estate appraisers – registration – CLRA account. Fees collected pursuant
5	to § 5-20.7-15(a) shall be deposited into this account and be used to finance costs associated with
6	real estate appraisers registration. The restricted receipt account will be included in the budget of
7	the department of business regulation.
8	SECTION 2. Section 5-20.9-7 of the General Laws in Chapter 5-20.9 entitled "Real
9	Estate Appraisal Management Company Registration Act" is hereby amended to read as follows:
10	5-20.9-7. Initial registration, renewals, forms and fees.
11	(a) An applicant for registration as an appraisal management company shall submit to the
12	department an application on forms prescribed by the department and pay the required fee(s).
13	(b) The fees for initial registration, renewal, and late renewals shall be determined by the
14	director and established by regulation.
15	(c) There is hereby created a restricted receipt account within the general fund of the state
16	to be known as the appraisal management company – registration account. Fees collected
17	pursuant to § 5-20.9-7 shall be deposited into this account and be used to finance costs associated
18	with appraisal management company registration and operations. The restricted receipt account
19	will be included in the budget of the department of business regulation.
20	(c)(d) Every appraisal management company that desires to renew a registration for the
21	next term shall apply for the renewal of the registration upon a form furnished by the director and
22	containing information that is required by this chapter. Renewal of a registration is subject to the
23	same provisions as the initial registration.
24	(d)(e) The department shall receive applications for registration for initial licensing and
25	renewal and establish administrative procedures for processing applications and issuing and
26	renewing registrations.
27	(e)(f) The department shall have the authority to assess and collect from registered
28	entities, the AMC federal registry fee in any amount assessed by the appraisal subcommittee of
29	the Federal Financial Institutions Examination Council or its successor entity, and transmit the fee
30	to the Federal Financial Institutions Examinations Council.
31	(f)(g) A federally regulated appraisal management company operating in this state shall
32	report to the department any information necessary for the department to assess, collect, and
33	forward the AMC federal registry fee in any amount assessed by the appraisal subcommittee of
34	the Federal Financial Institutions Examination Council or its successor entity.
	LC000763 - Page 39 of 541
1	SECTION 3. Section 16-59-6 of the General Laws in Chapter 16-59 entitled "Council on
2	Postsecondary Education" is hereby amended to read as follows:
3	16-59-6. Commissioner of postsecondary education.
4	The council on postsecondary education, with approval of the board, shall appoint a
5	commissioner of postsecondary education, who shall serve at the pleasure of the council,
6	provided that his or her initial engagement by the council shall be for a period of not more than
7	three (3) years. For the purpose of appointing, retaining, or dismissing a commissioner of
8	postsecondary education, the governor shall serve as an additional voting member of the council.
9	The position of commissioner shall be in the unclassified service of the state and he or she shall
10	serve as the chief executive officer of the council on postsecondary education, the chief
11	administrative officer of the office of postsecondary commissioner, and the executive director of
12	the division of higher education assistance. The commissioner of postsecondary education shall
13	have any duties that are defined in this section and in this title and other additional duties as may
14	be determined by the council, and shall perform any other duties as may be vested in him or her
15	by law. In addition to these duties and general supervision of the office of postsecondary
16	commissioner and the appointment of the several officers and employees of the office, it shall be
17	the duty of the commissioner of postsecondary education:
18	(1) To develop and implement a systematic program of information gathering,
19	processing, and analysis addressed to every aspect of higher education in the state, especially as
20	that information relates to current and future educational needs.
21	(2) To prepare a strategic plan for higher education in the state aligned with the goals of
22	the board of education's strategic plan; to coordinate the goals and objectives of the higher public
23	education sector with the goals of the council on elementary and secondary education and
24	activities of the independent higher education sector where feasible.
25	(3) To communicate with, and seek the advice of those concerned with, and affected by
26	the board of education's and council's determinations.
27	(4) To implement broad policy as it pertains to the goals and objectives established by the
28	board of education and council on postsecondary education; to promote better coordination
29	between higher public education in the state, independent higher education in the state as
30	provided in subdivision (10) of this section, and pre k-12 education; to assist in the preparation of
31	the budget for public higher education; and to be responsible, upon direction of the council, for
32	the allocation of appropriations, the acquisition, holding, disposition of property.
33	(5) To be responsible for the coordination of the various higher educational functions of
34	the state so that maximum efficiency and economy can be achieved.
	LC000763 - Page 40 of 541
1	(6) To assist the board of education in preparation and maintenance of a five-year (5)
2	strategic funding plan for higher education; to assist the council in the preparation and
3	presentation annually to the state budget officer in accordance with § 35-3-4 of a total, public
4	higher educational budget.
5	(7) To recommend to the council on postsecondary education, after consultation with the
6	presidents, a clear and definitive mission for each public institution of higher learning.
7	(8) To annually recommend to the council on postsecondary education, after consultation
8	with the presidents, the creation, abolition, retention, or consolidation of departments, divisions,
9	programs, and courses of study within the public colleges and universities to eliminate
10	unnecessary duplication in public higher education, to address the future needs of public higher
11	education in the state, and to advance proposals recommended by the presidents of the public
12	colleges and universities pursuant to §§ 16-32-2.1, 16-33-2.1 and 16-33.1-2.1.
13	(9) To supervise the operations of the office of postsecondary commissioner, including
14	the division of higher education assistance, and any other additional duties and responsibilities
15	that may be assigned by the council.
16	(10) To perform the duties vested in the council with relation to independent higher
17	educational institutions within the state under the terms of chapter 40 of this title and any other
18	laws that affect independent higher education in the state.
19	(11) To be responsible for the administration of policies, rules, and regulations of the
20	council on postsecondary education with relation to the entire field of higher education within the
21	state, not specifically granted to any other department, board, or agency and not incompatible
22	with law.
23	(12) To prepare standard accounting procedures for public higher education and all public
24	colleges and universities.
25	(13) To carry out the policies and directives of the board of education and the council on
26	postsecondary education through the office of postsecondary commissioner and through
27	utilization of the resources of the public institutions of higher learning.
28	(14) To enter into interstate reciprocity agreements regarding the provision of
29	postsecondary distance education; to administer such agreements; to approve or disapprove
30	applications to voluntarily participate in such agreements from postsecondary institutions that
31	have their principal place of business in Rhode Island; and to establish annual fees, with the
32	approval of the council on postsecondary education, for aforesaid applications to participate in an
33	interstate postsecondary distance education reciprocity agreement. There is hereby established a
34	restricted receipt account entitled “State Authorization Reciprocity Agreement (SARA)” within
	LC000763 - Page 41 of 541
1	the general fund of the state for the express purpose of the collection and disbursement of all fees
2	related to interstate reciprocity agreements regarding the provision of postsecondary distance
3	education. The restricted receipt account will be included in the budget of the office of the
4	postsecondary commissioner.
5	(15) To the extent necessary for participation, and to the extent required and stated in any
6	distance learning reciprocity agreement, to implement procedures to address complaints received
7	from out-of-state students in connection with, or related to, any Rhode Island postsecondary
8	institution, public or private, that has been approved to participate in said reciprocity agreement.
9	(16) To exercise all powers and duties of the division of higher education assistance as
10	set forth under the terms of chapter 57 of this title.
11	SECTION 4. Section 23-1-20 of the General Laws in Chapter 23-1 entitled "Department
12	of Health" is hereby amended to read as follows:
13	23-1-20. Compliance order.
14	(a) Whenever the director determines that there are reasonable grounds to believe that
15	there is a violation of any law administered by him or her or of any rule or regulation adopted
16	pursuant to authority granted to him or her, the director may give notice of the alleged violation to
17	the person responsible for it. The notice shall be in writing, shall set forth the alleged violation,
18	shall provide for a time within which the alleged violation shall be remedied, and shall inform the
19	person to whom it is directed that a written request for a hearing on the alleged violation may be
20	filed with the director within ten (10) days after service of the notice. The notice will be deemed
21	properly served upon a person if a copy of the notice is served upon him or her personally, or sent
22	by registered or certified mail to the last known address of that person, or if that person is served
23	with notice by any other method of service now or later authorized in a civil action under the laws
24	of this state. If no written request for a hearing is made to the director within ten (10) days of the
25	service of notice, the notice shall automatically become a compliance order.
26	(b) Any administrative fees and/or penalties imposed pursuant to a compliance order
27	described in subsection (a) of this section shall be deposited in a restricted receipt account within
28	the general fund of the state and included in the budget of the department of health. The title of
29	the restricted receipt account shall be designated as “health systems monitoring and compliance”.
30	SECTION 5. Section 23-77-2 of the General Laws in Chapter 23-77 entitled "Healthcare
31	Information Technology and Infrastructure Development Fund" is hereby amended to read as
32	follows:
33	23-77-2. Establishment of the healthcare information technology and infrastructure
34	development fund.
	LC000763 - Page 42 of 541
1	(a) There is established in the department of health, the healthcare information
2	technology and infrastructure development fund to be administered by the director of the
3	department of health for the purpose of promoting the development and adoption of healthcare
4	information technologies designed to improve the quality, safety and efficiency of healthcare
5	services and the security of individual patient data.
6	(b) Moneys in the fund shall be used for projects authorized by the director of health and
7	may be expended by contract, loan, or grant, to develop, maintain, expand, and improve the
8	state's healthcare information technology infrastructure and to assist healthcare facilities and
9	health service providers in adopting healthcare information technologies shown to improve
10	healthcare quality, safety or efficiency. Such projects shall incorporate the goal of maintaining the
11	security and confidentiality of individual patient data, and separate projects for that purpose may
12	also be authorized from the fund. The director of health shall develop criteria for the selection of
13	projects to be funded from the fund in consultation with the healthcare information technology
14	and infrastructure advisory committee created in § 23-77-4.
15	(c) Any moneys provided by loan shall be disbursed for periods not exceeding twenty-
16	five (25) years and at an annual rate of interest not exceeding five percent (5%).
17	(d) The director of the department of health, in consultation with the state healthcare
18	information technology advisory committee, shall establish criteria for eligible healthcare
19	information technology and infrastructure projects to be funded under this chapter.
20	(e) The healthcare information technology and infrastructure development fund, as herein
21	described, shall constitute a restricted receipt account within the general fund of the state and
22	housed within the budget of the department of health. The short title of the restricted receipt
23	account shall henceforth be designated as “health information technology”.
24	SECTION 6. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
25	is hereby amended to read as follows:
26	35-4-27. Indirect cost recoveries on restricted receipt accounts.
27	Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all
28	restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there
29	shall be no transfer from cash receipts with restrictions received exclusively: (1) From
30	contributions from non-profit charitable organizations; (2) From the assessment of indirect cost-
31	recovery rates on federal grant funds; or (3) Through transfers from state agencies to the
32	department of administration for the payment of debt service. These indirect cost recoveries shall
33	be applied to all accounts, unless prohibited by federal law or regulation, court order, or court
34	settlement. The following restricted receipt accounts shall not be subject to the provisions of this
	LC000763 - Page 43 of 541
1	section:
2	Executive Office of Health and Human Services
3	Organ Transplant Fund
4	HIV Care Grant Drug Rebates
5	Medical Marijuana Licensing
6	Adult Use Marijuana Licensing
7	Industrial Hemp Licensing
8	Health System Transformation Project
9	Department of Human Services
10	Veterans' home -- Restricted account
11	Veterans' home -- Resident benefits
12	Pharmaceutical Rebates Account
13	Demand Side Management Grants
14	Veteran's Cemetery Memorial Fund
15	Donations -- New Veterans' Home Construction
16	Department of Health
17	Pandemic medications and equipment account
18	Miscellaneous Donations/Grants from Non-Profits
19	State Loan Repayment Match
20	Adult Use Marijuana Licensing Program
21	Adult Use Marijuana Licensing
22	Industrial Hemp Licensing
23	Medical Marijuana Patient Licenses
24	Healthcare Information Technology
25	Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
26	Eleanor Slater non-Medicaid third-party payor account
27	Hospital Medicare Part D Receipts
28	RICLAS Group Home Operations
29	Commission on the Deaf and Hard of Hearing
30	Emergency and public communication access account
31	Department of Environmental Management
32	National heritage revolving fund
33	Environmental response fund II
34	Underground storage tanks registration fees
	LC000763 - Page 44 of 541
1	De Coppett Estate Fund
2	Rhode Island Historical Preservation and Heritage Commission
3	Historic preservation revolving loan fund
4	Historic Preservation loan fund -- Interest revenue
5	Department of Public Safety
6	Forfeited property -- Retained
7	Forfeitures -- Federal
8	Forfeited property -- Gambling
9	Donation -- Polygraph and Law Enforcement Training
10	Rhode Island State Firefighter's League Training Account
11	Fire Academy Training Fees Account
12	Industrial Hemp Licensing Program
13	Medical Marijuana Licensing Program
14	Adult Use Marijuana Licensing Program
15	Attorney General
16	Forfeiture of property
17	Federal forfeitures
18	Attorney General multi-state account
19	Forfeited property -- Gambling
20	Department of Administration
21	OER Reconciliation Funding
22	RI Health Benefits Exchange
23	Information Technology Investment Fund
24	Restore and replacement -- Insurance coverage
25	Convention Center Authority rental payments
26	Investment Receipts -- TANS
27	OPEB System Restricted Receipt Account
28	Car Rental Tax/Surcharge-Warwick Share
29	Executive Office of Commerce
30	Housing Resources Commission Restricted Account
31	Department of Revenue
32	DMV Modernization Project
33	Jobs Tax Credit Redemption Fund
34	Marijuana Cash Use Surcharge
	LC000763 - Page 45 of 541
1	Industrial Hemp Licensing
2	Adult Use Marijuana Licensing
3	Medical Marijuana Licensing
4	Legislature
5	Audit of federal assisted programs
6	Department of Children, Youth and Families
7	Children's Trust Accounts -- SSI
8	Military Staff
9	RI Military Family Relief Fund
10	RI National Guard Counterdrug Program
11	Treasury
12	Admin. Expenses -- State Retirement System
13	Retirement -- Treasury Investment Options
14	Defined Contribution -- Administration - RR
15	Violent Crimes Compensation -- Refunds
16	Treasury Research Fellowship
17	Business Regulation
18	Banking Division Reimbursement Account
19	Office of the Health Insurance Commissioner Reimbursement Account
20	Securities Division Reimbursement Account
21	Commercial Licensing and Racing and Athletics Division Reimbursement Account
22	Insurance Division Reimbursement Account
23	Historic Preservation Tax Credit Account
24	Industrial Hemp Licensing
25	Adult Use Marijuana Licensing
26	Medical Marijuana Licensing
27	Judiciary
28	Arbitration Fund Restricted Receipt Account
29	Third-Party Grants
30	RI Judiciary Technology Surcharge Account
31	Department of Elementary and Secondary Education
32	Statewide Student Transportation Services Account
33	School for the Deaf Fee-for-Service Account
34	School for the Deaf -- School Breakfast and Lunch Program
	LC000763 - Page 46 of 541
1	Davies Career and Technical School Local Education Aid Account
2	Davies -- National School Breakfast & Lunch Program
3	School Construction Services
4	Office of the Postsecondary Commissioner
5	Higher Education and Industry Center
6	State Authorization Reciprocity Agreement (SARA)
7	Department of Labor and Training
8	Job Development Fund
9	SECTION 7. Section 42-7.2-10 of the General Laws in Chapter 42-7.2 entitled "Office of
10	Health and Human Services" is hereby amended to read as follows:
11	42-7.2-10. Appropriations and disbursements.
12	(a) The general assembly shall annually appropriate such sums as it may deem necessary
13	for the purpose of carrying out the provisions of this chapter. The state controller is hereby
14	authorized and directed to draw his or her orders upon the general treasurer for the payment of
15	such sum or sums, or so much thereof as may from time to time be required, upon receipt by him
16	or her of proper vouchers approved by the secretary of the executive office of health and human
17	services, or his or her designee.
18	(b) For the purpose of recording federal financial participation associated with qualifying
19	healthcare workforce development activities at the state’s public institutions of higher education,
20	and pursuant to the Rhode Island Designated State Health Programs (DSHP), as approved by
21	CMS October 20, 2016 in the 11-W-00242/1 amendment to Rhode Island’s section 1115
22	Demonstration Waiver, there is hereby established a restricted receipt account entitled “Health
23	System Transformation Project” in the general fund of the state and included in the budget of the
24	office of health and human services.
25	SECTION 8. This article shall take effect upon passage.
26	ARTICLE 3
27	RELATING TO GOVERNMENT REFORM
28	SECTION 1. Sections 1-6-1 and 1-6-3 of the General Laws in Chapter 1-6 entitled
29	"Warwick Airport Parking District" are hereby amended to read as follows:
30	1-6-1. Definitions.
31	As used in this chapter:
32	(1) "Administrator" means the state tax administrator.
33	(2) "District" means the Warwick airport parking district, being the district that runs from
34	a point on Main Avenue in the city of Warwick at the southerly boundary of T.F. Green state
	LC000763 - Page 47 of 541
1	airport, and westerly along Main Avenue to a point one-third (1/3) mile west of the intersection of
2	Main Avenue with Post Road; turning thence northerly running along a line parallel to and one-
3	third (1/3) mile west of Post Road to a point one mile north of the line of Airport Road; thence
4	turning east running along a line parallel to and one-third (1/3) mile north of the line of Airport
5	Road to Warwick Avenue; thence turning south along Warwick Avenue to Airport Road; thence
6	turning west along Airport Road to the boundary of T.F. Green state airport; thence running
7	southerly along the boundary of T.F. Green state airport to the point of beginning. If any parking
8	facility (including entrances, driveways, or private access roads) is constructed partly within the
9	district as so defined, the entire facility shall be treated as though within the district.
10	(3) "Operator" means any person providing transient parking within the district.
11	(4) "Permit fee" means the fee payable annually by an operator to the tax administrator in
12	an amount equal to ten dollars ($10.00) for each space made, or to be made, available by the
13	operator for transient parking during the period of a permit's effectiveness, but not more than two
14	hundred fifty dollars ($250) for each permit.
15	(5) "Transient parking" means any parking for motor vehicles at a lot, garage, or other
16	parking facility within the district for which a fee is collected by the operator, but excludes:
17	(i) Parking for which the fee is charged and paid on a monthly or less frequent basis;
18	(ii) Parking for any employee of the operator of the facility;
19	(iii) Parking provided by any hotel or motel for registered guests;
20	(iv) Parking provided by validation or having a validated rate, where the person providing
21	the validation does not maintain a place of business at T.F. Green state airport.
22	(6) "Transient parking receipts" means the gross receipts collected by an operator
23	(excluding the surcharge imposed by this chapter) in consideration of the provision of transient
24	parking.
25	1-6-3. Permits for parking operations in district.
26	(a) Every person desiring to provide transient parking in the district shall file with the tax
27	administrator an application for a permit for each place of business where transient parking will
28	be provided. The application shall be in a form, include information, and bear any signatures that
29	the tax administrator may require. There shall be no fee for this permit. At the time of making an
30	application, the applicant shall pay to the tax administrator the permit fee. Every permit issued
31	under this chapter shall expire on June 30 of each year. Every permit holder desiring to renew a
32	permit shall annually, on or before February 1 of each year, apply for renewal of its permit and
33	file with it the appropriate permit fee. The renewal permit shall be valid for the period of July 1 of
34	that calendar year through June 30 of the subsequent calendar year, unless sooner canceled,
	LC000763 - Page 48 of 541
1	suspended, or revoked. Upon receipt of the required application and permit fee, the tax
2	administrator shall issue to the applicant a permit. Provided, that if the applicant, at the time of
3	making the application, owes any fee, surcharge, penalty, or interest imposed under the authority
4	of this chapter, the applicant shall pay the amount owed. An operator whose permit has been
5	previously suspended or revoked shall pay to the tax administrator a permit fee for the renewal or
6	issuance of a permit.
7	(b) Whenever any person fails to comply with any provision of this chapter, the tax
8	administrator upon hearing, after giving the person at least five (5) days notice in writing,
9	specifying the time and place of hearing and requiring the person to show cause why his or her
10	permit or permits should not be revoked, may revoke or suspend any one or more of the permits
11	held by the person. The notice may be served personally or by mail. The tax administrator shall
12	not issue a new permit after the revocation of a permit unless the administrator is satisfied that the
13	former holder of the permit will comply with the provisions of the ordinance.
14	(c) The superior court of this state has jurisdiction to restrain and enjoin any person from
15	engaging in business as an operator of a transient parking facility in the district without a parking
16	operator's permit or permits or after a transient parking facility operator's permit has been
17	suspended or revoked. The tax administrator may institute proceedings to prevent and restrain
18	violations of this chapter. In any proceeding instituted under this section, proof that a person
19	continues to operate a transient parking facility from the location to which a revoked parking
20	operator's permit was assigned, is prima facie evidence that the person is engaging in business as
21	a parking operator without a parking operator's permit.
22	(d) Permit fees collected under the authority of this section shall be deposited into the
23	general fund of the state.
24	SECTION 2. Section 3-7-14.2 of the General Laws in Chapter 3-7 entitled "Retail
25	Licenses" is hereby amended to read as follows:
26	3-7-14.2. Class P licenses -- Caterers.
27	(a) A caterer licensed by the department of health and the division of taxation shall be
28	eligible to apply for a Class P license from the department of business regulation. The department
29	of business regulation is authorized to issue all caterers' licenses. The license will be valid
30	throughout this state as a state license and no further license will be required or tax imposed by
31	any city or town upon this alcoholic beverage privilege. Each caterer to which the license is
32	issued shall pay to the department of business regulation an annual fee of five hundred dollars
33	($500) for the license, and one dollar ($1.00) for each duplicate of the license, which fees are paid
34	into the state treasury. The department is authorized to promulgate rules and regulations for
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1	implementation of this license. In promulgating said rules, the department shall include, but is not
2	limited to, the following standards:
3	(1) Proper identification will be required for individuals who look thirty (30) years old or
4	younger and who are ordering alcoholic beverages;
5	(2) Only valid ID's as defined by these titles are acceptable;
6	(3) An individual may not be served more than two (2) drinks at a time;
7	(4) Licensee's, their agents, or employees will not serve visibly intoxicated individuals;
8	(5) Licensee's may only serve alcoholic beverages for no more than a five (5) hour period
9	per event;
10	(6) Only a licensee, or its employees, may serve alcoholic beverages at the event;
11	(7) The licensee will deliver and remove alcoholic beverages to the event; and
12	(8) No shots or triple alcoholic drinks will be served.
13	(b) Any bartender employed by the licensee shall be certified by a nationally recognized
14	alcohol beverage server training program.
15	(c) The licensee shall purchase at retail all alcoholic beverages from a licensed Class A
16	alcohol retail establishment located in the state, provided, however, any licensee who also holds a
17	Class T license, issued pursuant to the provisions of § 3-7-7, shall be allowed to purchase
18	alcoholic beverages at wholesale. Any person violating this section shall be fined five hundred
19	dollars ($500) for this violation and shall be subject to license revocation. The provisions of this
20	section shall be enforced in accordance with this title.
21	(d) Violation of subsection (a) of this section is punishable upon conviction by a fine of
22	not more than five hundred dollars ($500). Fines imposed under this section shall be paid to the
23	department of business regulation.
24	SECTION 3. Sections 5-12-1 through 5-12-4 of Chapter 5-12 of the General Laws
25	entitled "Hide and Leather Inspection" are hereby repealed.
26	5-12-1. Town and city inspectors.
27	There may be annually elected by the town councils of the several towns and by the city
28	councils of Providence and Newport an officer to be denominated "inspector of hides and
29	leather", who shall be sworn to the faithful discharge of his or her duties.
30	5-12-2. Inspection and stamping of hides and leather.
31	City and town inspectors of hides and leather shall examine and inspect all hides and
32	leather which they may be called upon to inspect, within their towns or cities, and stamp upon the
33	inspected hides or leather their quality, as rated in the hides and leather trade, together with the
34	name of the inspector and date of inspection.
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1	5-12-3. Inspection fees.
2	The fee of the inspector shall be at the rate of one dollar ($1.00) per hour for each hour
3	actually employed, paid by the person employing him or her; provided, that not more than five (5)
4	hours shall be paid for by one employer for the same day.
5	5-12-4. Misconduct by inspectors.
6	Every inspector appointed under the provisions of this chapter who willfully stamps any
7	hides or leather as of a grade above or below that at which it is properly ratable, shall forfeit and
8	pay a penalty of one hundred dollars ($100) and is liable to an action at law for damages to any
9	person injured from the action.
10	SECTION 4. Sections 5-65-1, 5-65-3, 5-65-7.1, 5-65-10, 5-65-15, 5-65-15.1 and 5-65-20
11	of the General Laws in Chapter 5-65 entitled "Contractors' Registration and Licensing Board" are
12	hereby amended to read as follows:
13	5-65-1. Definitions.
14	As used in this chapter:
15	(1) "Board" means the contractors' registration and licensing board established pursuant
16	to the provisions of § 5-65-14 or its designees.
17	(2) "Claim for retainage" means an allegation that a person seeking payment of retainage
18	breached the person's contract for the project; provided, however, that a "claim" related to a
19	project with a contract value of not less than two hundred fifty thousand dollars ($250,000) shall
20	be subject to the applicable dispute resolution procedure, notice, and other requirements in the
21	contract for construction.
22	(3) "Commission" means the building code commission supportive of the contractors'
23	registration and licensing board.
24	(4)(i) "Contractor" means a person who, in the pursuit of an independent business,
25	undertakes or offers to undertake or submits a bid, or for compensation and with or without the
26	intent to sell the structure arranges to construct, alter, repair, improve, move over public
27	highways, roads, or streets or demolish a structure or to perform any work in connection with the
28	construction, alteration, repair, improvement, moving over public highways, roads, or streets or
29	demolition of a structure, and the appurtenances thereto. For the purposes of this chapter,
30	"appurtenances" includes the installation, alteration, or repair of wells connected to a structure
31	consistent with chapter 13.2 of title 46. "Contractor" includes, but is not limited to, any person
32	who purchases or owns property and constructs, or for compensation arranges for the construction
33	of, one or more structures.
34	(ii) A certificate of registration is necessary for each "business entity" regardless of the
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1	fact that each entity may be owned by the same individual.
2	(5) "Contract for construction" means a contract for which a lien may be established
3	under chapter 28 of title 34 or for state or municipal public works projects as defined in title 37
4	on a project for which the person on whose contract with the project owner has an original
5	contract price of not less than two hundred fifty thousand dollars ($250,000); provided, however,
6	that "contract for construction" shall not include a project containing, or designed to contain, at
7	least one, but not more than four (4), dwelling units.
8	(6) "Deliverable" means a project close-out document that shall be submitted by the
9	person seeking payment of retainage under the person's contract for construction; provided,
10	however, that a lien waiver or release, which is a deliverable, shall comply with chapter 28 of title
11	34; provided, further, that "deliverable" shall not include any document affirming, certifying, or
12	confirming completion or correction of labor, materials, or other items furnished or incomplete or
13	defective work.
14	(7) "Dwelling unit" means a single unit providing complete independent living facilities
15	for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and
16	sanitation.
17	(8) "Hearing officer" means a person designated by the executive director director of the
18	department of business regulation or the director’s designee to hear contested claims or cases,
19	contested enforcement proceedings, and contested administrative fines, in accordance with the
20	"administrative procedures act", chapter 35 of title 42.
21	(9) "Incomplete or defective work" means labor, materials, or any other item required for
22	full performance by a person seeking payment of retainage that remains to be furnished by the
23	person under the person's contract for construction or that has been furnished by the person but
24	requires correction, repair, further completion, revision, or replacement; provided, however, that
25	"incomplete or defective work" shall not include deliverables or labor, materials, or any other
26	item to be repaired or replaced after substantial or final completion pursuant to a warranty,
27	guarantee, or other contractual obligation to correct defective work after substantial or final
28	completion.
29	(10) "Monetary damages" means the dollar amount required in excess of the contract
30	amount necessary to provide the claimant with what was agreed to be provided under the terms of
31	the contract reduced by any amount due and unpaid to the respondent inclusive of any and all
32	awards and restitution.
33	(11) "Person" means any natural person, joint venture, partnership, corporation, or other
34	business or legal entity who or that enters into a contract for construction.
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1	(12) "Prime contractor" means a person who or that enters into a contract for construction
2	with the project owner.
3	(13) "Retainage" means a portion or percentage of a payment due pursuant to a contract
4	for construction that is withheld to ensure full performance of the contract for construction.
5	(14) "Staff" means the executive director for the contractors' registration and licensing
6	board, and any other staff necessary to carry out the powers, functions, and duties of the board
7	including inspectors, hearing officers, and other supportive staff.
8	(15) "State" means the state of Rhode Island.
9	(16) "Structure" means (i) Any commercial building; or (ii) Any building containing one
10	or more residences and their appurtenances. The board's dispute resolution process shall apply
11	only to residential structures containing dwelling units, as defined in the state building code, or
12	residential portions of other types of buildings without regard to how many units any structure
13	may contain. The board retains jurisdiction and may conduct hearings regarding violations
14	against all contractors required to be registered or licensed by the board.
15	(17) "Substantially" means any violation that affects the health, safety, and welfare of the
16	general public.
17	(18) "Substantial completion" means the stage in the progress of the project when the
18	work required by the contract for construction with the project owner is sufficiently complete in
19	accordance with the contract for construction so that the project owner may occupy or utilize the
20	work for its intended use; provided, further, that "substantial completion" may apply to the entire
21	project or a phase of the entire project if the contract for construction with the project owner
22	expressly permits substantial completion to apply to defined phases of the project.
23	5-65-3. Registration for work on a structure required of contractor -- Issuance of
24	building permits to unregistered or unlicensed contractors prohibited -- Evidence of activity
25	as a contractor -- Duties of contractors.
26	(a) A person shall not undertake, offer to undertake, or submit a bid to do work as a
27	contractor on a structure or arrange to have work done unless that person has a current, valid
28	certificate of registration for all construction work issued by the board. A partnership,
29	corporation, or joint venture may do the work; offer to undertake the work; or submit a bid to do
30	the work only if that partnership, corporation, or joint venture is registered for the work. In the
31	case of registration by a corporation or partnership, an individual shall be designated to be
32	responsible for the corporation's or partnership's work. The corporation or partnership and its
33	designee shall be jointly and severally liable for the payment of the registration fee, as required in
34	this chapter, and for violations of any provisions of this chapter. Disciplinary action taken on a
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1	registration held by a corporation, partnership, or sole proprietor may affect other registrations
2	held by the same corporation, partnership, or sole proprietorship, and may preclude future
3	registration by the principal of that business entity.
4	(b) A registered partnership or corporation shall notify the board in writing immediately
5	upon any change in partners or corporate officers.
6	(c) A city, town, or the state shall not issue a building permit to anyone required to be
7	registered under this chapter who does not have a current, valid certificate of registration
8	identification card or valid license that shall be presented at the time of issuance of a permit and
9	shall become a condition of a valid permit. Each city, town, or the state that requires the issuance
10	of a permit as a condition precedent to construction, alteration, improvement, demolition,
11	movement, or repair of any building or structure or the appurtenance to the structure shall also
12	require that each applicant for the permit file, as a condition to issuing the permit, a written
13	affidavit subject to the penalties of perjury, subscribed by the applicant, that the applicant is
14	registered under the provisions of this chapter, giving the number of the registration and stating
15	that the registration is in full force and effect, or, if the applicant is exempt from the provisions of
16	this chapter, listing the basis for the exemption. The city, town, or the state shall list the
17	contractor's registration number on the permit obtained by that contractor, and if a homeowner is
18	issued a permit, the building inspector or official must ascertain registration numbers of each
19	contractor on the premises and shall inform the registration board of any non-registered
20	contractors performing work at the site.
21	(d) Every city and town that requires the issuance of a business license as a condition
22	precedent to engaging, within the city or town, in a business that is subject to regulation under
23	this chapter, shall require that each licensee and each applicant for issuance or renewal of the
24	license file, or has on file, with the city or town a signed statement that the licensee or applicant is
25	registered under the provisions of this chapter and stating that the registration is in full force and
26	effect.
27	(e) It shall be prima facie evidence of doing business as a contractor when a person for
28	that person's own use performs, employs others to perform, or for compensation and with the
29	intent to sell the structure, arranges to have performed any work described in § 5-65-1(4) if within
30	any one twelve-month (12) period that person offers for sale one or more structures on which that
31	work was performed.
32	(f) Registration under this chapter shall be prima facie evidence that the registrant
33	conducts a separate, independent business.
34	(g) The provisions of this chapter shall be exclusive and no city or town shall require or
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1	shall issue any registrations or licenses nor charge any fee for the regulatory registration of any
2	contractor registered with the board. Nothing in this subsection shall limit or abridge the authority
3	of any city or town to license and levy and collect a general and nondiscriminatory license fee
4	levied upon all businesses, or to levy a tax based upon business conducted by any firm within the
5	city or town's jurisdiction, if permitted under the laws of the state.
6	(h)(1) Every contractor shall maintain a list that shall include the following information
7	about all subcontractors or other contractors performing work on a structure for that contractor:
8	(i) Names and addresses; and
9	(ii) Registration numbers or other license numbers.
10	(2) The list referred to in subsection (h)(1) of this section shall be delivered to the board
11	within twenty-four (24) hours after a request is made during reasonable working hours, or a fine
12	of twenty-five dollars ($25.00) may be imposed for each offense.
13	(i) The following subcontractors who are not employees of a registered contractor must
14	obtain a registration certificate prior to conducting any work: (1) Carpenters, including finish
15	carpenters and framers; (2) Siding installers; (3) Roofers; (4) Foundation installers, including
16	concrete installers and form installers; (5) Drywall installers; (6) Plasterers; (7) Insulation
17	installers; (8) Ceramic tile installers; (9) Floor covering installers; (10) Swimming pool installers,
18	both above ground and in ground; (11) Masons, including chimney installers, fireplace installers,
19	and general masonry erectors. This list is not all inclusive and shall not be limited to the above-
20	referenced contractors. No subcontractor licensed by another in-state agency pursuant to § 5-65-2
21	shall be required to register, provided that said work is performed under the purview of that
22	license.
23	(j) A contractor including, but not limited to, a general contractor, shall not hire any
24	subcontractor or other contractor to work on a structure unless the contractor is registered under
25	this chapter or exempt from registration under the provisions of § 5-65-2.
26	(k) A summary of this chapter, prepared by the board and provided at cost to all
27	registered contractors, shall be delivered by the contractor to the owner when the contractor
28	begins work on a structure; failure to comply may result in a fine.
29	(l) The registration number of each contractor shall appear in any advertising by that
30	contractor. Advertising in any form by an unregistered contractor shall be prohibited, including
31	alphabetical or classified directory listings, vehicles, business cards, and all other forms of
32	advertisements. The violations could result in a penalty being assessed by the board per
33	administrative procedures established.
34	(i) The board may publish, revoke, or suspend registrations and the date the registration
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1	was suspended or revoked on a quarterly basis.
2	(ii) Use of the word "license" in any form of advertising when only registered may
3	subject the registrant or those required to be registered to a fine of one hundred dollars ($100) for
4	each offense at the discretion of the board.
5	(m) The contractor must see that permits required by the state building code are secured
6	on behalf of the owner prior to commencing the work involved. The contractor's registration
7	number must be affixed to the permit as required by the state building code.
8	(n) The board may assess an interest penalty of twelve percent (12%) annually when a
9	monetary award is ordered by the board.
10	(o) All work performed, including labor and materials, in excess of one thousand dollars
11	($1,000) shall be accompanied by a contract in writing. Contracts required pursuant to this
12	subsection shall include a location on or near the signature line location on or in which the parties
13	to the contract shall initial to evidence the receipt of certain consumer education materials or
14	information approved and provided by the board to the contractor. The educational materials
15	and/or information shall include, but not be limited to, the following notice and shall be provided
16	by the contractor to the homeowner:
17	NOTICE OF POSSIBLE MECHANIC'S LIEN
18	To: Insert name of owner, lessee or tenant, or owner of less than the simple fee.
19	The undersigned is about to perform work and/or furnish materials for the construction,
20	erection, alterations or repair upon the land at (INSERT ADDRESS) under contract with you.
21	This is a notice that the undersigned and any other persons who provide labor and materials for
22	the improvement under contract with the undersigned may file a mechanic's lien upon the land in
23	the event of nonpayment to them. It is your responsibility to assure yourself that those other
24	persons under contract with the undersigned receive payment for their work performed and
25	materials furnished for the construction, erection, alteration or repair upon the land. Failure to
26	adhere to the provisions of this subsection may result in a one-thousand-dollar ($1,000) fine
27	against the contractor and shall not affect the right of any other person performing work or
28	furnishing materials of claiming a lien pursuant to chapter 28 of title 34. However, such person
29	failing to provide such notice shall indemnify and hold harmless any owner, lessee or tenant, or
30	owner of less than the fee simple from any payment or costs incurred on account of any liens
31	claims by those not in privity with them, unless such owner, lessee or tenant, or owner of less
32	than the fee simple shall not have paid such person.
33	(p) Contracts entered into must contain notice of right of rescission as stipulated in all
34	pertinent Rhode Island consumer protection laws and/or § 5-65-27 if applicable.
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1	(q) The contractor must stipulate whether or not all the proper insurances are in effect for
2	each job contracted.
3	(r) Contractors who are in compliance with the provisions of this subsection shall be
4	exempt from the requirements of § 34-28-4.1.
5	(s) In addition to the requirements of this chapter, contractors engaged in well drilling
6	activities shall also be subject to regulations pertaining to licensing and registration promulgated
7	by the contractors' registration and licensing board pursuant to chapter 65.2 of this title and § 46-
8	13.2-4.
9	5-65-7.1. Notice of cancellation or failure to renew policies.
10	Upon the cancellation or failure to renew, the insurance company having written a
11	liability policy, as described in § 5-65-7, shall notify the director of the contractors' registration
12	and licensing board of the cancellation or failure to renew. The policy shall continue in effect
13	until ten (10) days after written notice of the cancellation is given to the director of the
14	contractors' registration and licensing board of the cancellation or termination of the liability
15	policy by the issuing insurance company or companies in addition to any other notices which may
16	be required by law. Any insurance company that fails to notify the director contractors’
17	registration and licensing board, as required in this section shall be subject to prosecution for a
18	misdemeanor and upon conviction of that offense may be punished by a fine of not more than two
19	hundred fifty dollars ($250) for each offense and shall be responsible for any claims, fines or
20	penalties from any parties resulting from lack of notice. All criminal actions for any violation of
21	this section shall be prosecuted by the attorney general. The attorney general shall prosecute
22	actions to enforce the payment penalties and fines at the request of the director of the department
23	of business regulation or the director’s designee.
24	5-65-10. Grounds for discipline -- Injunctions.
25	(a) The board or commission may revoke, suspend, or refuse to issue, reinstate, or reissue
26	a certificate of registration if the board or commission determines after notice and opportunity for
27	a hearing:
28	(1) That the registrant or applicant has violated § 5-65-3.
29	(2) That the insurance required by § 5-65-7 is not currently in effect.
30	(3) That the registrant, licensee or applicant has engaged in conduct as a contractor that is
31	dishonest or fraudulent that the board finds injurious to the welfare of the public.
32	(4) Has violated a rule or order of the board.
33	(5) That the registrant has knowingly assisted an unregistered person to act in violation of
34	this chapter.
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1	(6) That a lien was filed on a structure under chapter 28 of title 34 because the registrant
2	or applicant wrongfully failed to perform a contractual duty to pay money to the person claiming
3	the lien.
4	(7) That the registrant has substantially violated state or local building codes.
5	(8) That the registrant has made false or fraudulent statements on his or her application.
6	(9) That a registrant has engaged in repeated acts in violation of this chapter and the
7	board's rules and regulations inclusive of substandard workmanship and any misuse of
8	registration.
9	(10) The board may take disciplinary action against a contractor who performed work or
10	arranged to perform, while the registration was suspended, invalidated or revoked. Deposits
11	received by a contractor and ordered returned are not considered a monetary award when no
12	services or supplies have been received.
13	(11) That the registrant breached a contract.
14	(12) That the registrant performed negligent and/or improper work.
15	(13) That the registrant has advertised with a license number instead of using a
16	registration number.
17	(14) That the registrant has failed to complete a project(s) for construction or a willful
18	failure to comply with the terms of a contract or written warranty.
19	(15) That the registrant has misrepresented his registration status as valid when said
20	registration is suspended, revoked, invalidated, inactive or unregistered as required by the board.
21	(16) That the registrant has failed to pay a fine or comply with any order issued by the
22	board.
23	(17) That the registrant has failed to obtain or maintain the required continuing
24	education/units required by the board, or failed to sign the affidavit statement required by the
25	board for registration or renewal.
26	(18) When a violation for hiring a non-registered contractor, working as a non-registered
27	contractor, or not maintaining the insurance required is issued, the registration may become
28	invalidated until the violation is resolved or hearing is requested on this offense.
29	(19) That the registrant has violated any of the provisions of chapters 25-3, 28-3, 28-12,
30	28-14, 28-36, 28-50, and/or 37-13. A finding that the registrant has violated any of those chapters
31	shall not be grounds for imposition of a monetary penalty under subsection (c) below.
32	(b) In addition to all other remedies, when it appears to the board that a person has
33	engaged in, or is engaging in, any act, practice or transaction which violates the provisions of this
34	chapter, the board may direct the attorney general to apply to the court for an injunction
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1	restraining the person from violating the provisions of this chapter. An injunction shall not be
2	issued for failure to maintain the list provided for in § 5-65-3(h) unless the court determines that
3	the failure is intentional.
4	(c)(1) For each first violation of a particular section of this chapter or any rule or
5	regulation promulgated by the board, a fine not to exceed five thousand dollars ($5,000) may be
6	imposed after a hearing by the board. Provided, further, that the board at its discretion may, after
7	a hearing, impose an additional fine up to but not to exceed the face value of the contract or the
8	actual damages caused by the contractor, whichever shall be greater. Where the claim is for actual
9	damages the board shall require proof satisfactory to the board indicating said damages. Where
10	corrective work is completed as ordered by the board, the fine assessed may be reduced as
11	determined by the board. Fines and decisions on claims or violations inclusive of monetary
12	awards can be imposed against registered as well as contractors required to be registered by the
13	board.
14	(2) For each subsequent violation of a particular subsection of this chapter or of a rule or
15	regulation promulgated by the board, a fine not to exceed ten thousand dollars ($10,000) may be
16	imposed after a hearing by the board. All fines collected by the board shall be deposited as
17	general revenues until June 30, 2008 to be used to enforce the provisions of this chapter.
18	Beginning July 1, 2008, all fines collected by the board shall be deposited into a restricted receipt
19	account to be used to enforce the provisions of this chapter.
20	(3) For the first violation of § 5-65-3, only for non-registered contractors, a fine of up to
21	five thousand dollars ($5,000) for a first offense and up to ten thousand dollars ($10,000) for each
22	subsequent offense shall be imposed.
23	(d) The hearing officer, upon rendering a conclusion may require the registrant, in lieu of
24	a fine, to attend continuing education courses as appropriate. Failure to adhere to the requirement
25	could result in immediate revocation of registration.
26	(e) The expiration of a registration by operation of law or by order or decision of the
27	board or a court, or the voluntary surrender of registration by the registrant, does not deprive the
28	board of jurisdiction, an action or disciplinary proceeding against the registrant or to render a
29	decision suspending or revoking a registration.
30	(f) In emergency situations, when a registrant is acting to the detriment of the health,
31	welfare and safety of the general public, the board's executive director of the department of
32	business regulation or the director’s designee may revoke or suspend a registration without a
33	hearing for just cause for a period of thirty (30) days.
34	(g) A registrant may petition the board to partially or completely expunge his or her
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1	record provided that notice of said expungement proceedings has been provided to the claimant
2	who was the subject of the violation. For purposes of this subsection "notice" shall consist of a
3	mailing to the last known address of the claimant and need not be actual notice.
4	(h) Any person or contractor, registered or not, who uses another contractor's registration,
5	contractor's registration identification card, or allows another person to use their contractor's
6	registration fraudulently in any way, will be subject to a fine not exceeding ten thousand dollars
7	($10,000).
8	(i) When the use of fraudulent advertising entices an individual to hire an unregistered
9	contractor, a fine of up to ten thousand dollars ($10,000) may be imposed by the board.
10	(j) It shall be unlawful to retain a social security number or copy of the driver's license
11	from a registrant by a building official as a condition of obtaining a permit.
12	(k) The board is further authorized upon certain findings or violations to:
13	(1) Put a lien on property held by a contractor.
14	(2) Take action on registrant when the continuing education requirements have failed to
15	be attained as required in rules and regulations.
16	(3) When upon investigation a complaint reveals: serious code infractions; unsatisfied
17	mechanic's liens; abandonment of a job for a substantial period of time without apparent cause; or
18	any other conduct detrimental to the public, the board can double the fines.
19	(4) Suspend, revoke or refuse to issue, reinstate or reissue a certificate of registration to
20	any registrant who has contracted, advertised, offered to contract or submitted a bid when the
21	contractor's registration is suspended, revoked, invalidated or inactive or unregistered as required
22	by the board.
23	(l) No person shall register as a contractor with the contractors' registration board for the
24	purpose of deceiving or circumventing the registration process by enabling a person whose
25	registration has been suspended or revoked to conduct business. Provided, further, that any person
26	who, in good faith relies on the board or the contractor's registration website for information
27	regarding registration status of another shall be exempt from violations pursuant to this section if
28	the information is not correct. Violators of this section shall be jointly and individually liable for
29	damages resulting from their activities as contractors pursuant to this chapter. Violations of this
30	subsection may result in a revocation of registration and/or fines not to exceed ten thousand
31	dollars ($10,000) and/or up to one year in jail. Furthermore, the director of the department of
32	business regulation or the director’s designee shall require that all applicants for registration shall
33	swear by way of affidavit sign a statement that they are aware of this provision and its
34	implications.
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1	(m) Upon receipt of notice of a final determination, after the exhaustion of all appeals, by
2	the department of labor and training, consent agreement, or court order that a registered
3	contractor violated any of the provisions of chapters 25-3, 28-3, 28-12, 28-14, 28-36, 28-50,
4	and/or 37-13 and owes any wages, benefits or other sums arising out of such violation, the board
5	shall immediately suspend the contractor's registration of such contractor in accordance with this
6	subsection. The suspension shall continue until all wages, benefits, or other sums owed have been
7	paid or the contractor has entered into a written, binding agreement to pay the same acceptable to
8	the department of labor and training and is not in default in payment under such agreement. If the
9	contractor fails to remain current in payment under any such agreement, the department of labor
10	and training shall notify the contractors' registration board and the suspension shall be imposed or
11	reinstated as the case may be. The foregoing sanction is mandatory, but shall not be grounds for
12	imposition of a monetary penalty under subsection (c) above.
13	(n) When the registration of a contractor has been revoked or suspended, neither the
14	contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same
15	principals or officers as the partnership, limited partnership, limited liability partnership, joint
16	venture, limited liability company, corporation, or sole proprietorship as the subject contractor;
17	and (2) Is engaged in the same or equivalent trade or activity shall be qualified to register or
18	retain a registration as a contractor under this chapter, unless and until the board shall determine
19	that the basis of the revocation or suspension has been satisfied or removed and that the registrant
20	or applicant otherwise satisfies the requirements for registration under this chapter.
21	Notwithstanding the foregoing, a natural person may obtain relief from the application and
22	enforcement of this subsection as to him or her, if he or she can establish that he or she was not
23	responsible for, and did not acquiesce to the misconduct which is the basis of the revocation,
24	suspension or denial of registration.
25	5-65-15. Officers -- Quorum -- Compensation and expenses.
26	(a) The board shall select from among its members a chairperson, a vice chairperson and
27	any other officers for the terms and with the duties and powers necessary for the performance of
28	their duties that the board determines.
29	(b) A majority of the members of the board shall constitute a quorum for the transaction
30	of business.
31	(c) The board shall have an executive director a member of staff who shall attend all
32	meetings and shall direct the conduct of any investigation which may be necessary in the
33	preparation of any hearing. The executive director shall be a member of the classified service on
34	the staff of the state building commissioner and shall be compensated as appropriate for the
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1	required expertise.
2	5-65-15.1. Staff.
3	(a) The state building code commission shall provide the board with appropriate staff,
4	including hearing officials and investigators, who shall perform their duties under the
5	administrative supervision of the executive director of the department of business regulation or
6	the director’s designee.
7	(b) The board may delegate the powers, functions and duties to the provided staff.
8	5-65-20. Administrative hearings.
9	(a) Contested claims or cases, contested enforcement proceedings, and contested
10	administrative fines shall be heard, in accordance with the Administrative Procedures Act,
11	chapter 35 of title 42, and the administrative regulations promulgated by the board, by the
12	hearings officer(s) assigned by the executive director of the department of business regulation or
13	the director’s designee of the board.
14	(b) The board has jurisdiction to hear appeals from decisions of the hearing officer(s),
15	and may by regulation impose a filing fee, not to exceed twenty dollars ($20.00), for any appeal.
16	(c) Notwithstanding the preceding, the executive director of the department of business
17	regulation or the director’s designee for the board is authorized to resolve contested enforcement
18	or claim proceedings through informal disposition pursuant to regulations promulgated by the
19	board.
20	SECTION 5. Section 5-65.2-3 of the General Laws in Chapter 5-65.2 entitled "Rhode
21	Island Well-Drilling, Pump Installers, and Water-Filtration Contractors Licensing Law" is hereby
22	amended to read as follows:
23	5-65.2-3. Licensing procedure.
24	(a) In addition to the provisions of chapter 65 of title 5, the contractors' registration and
25	licensing board is authorized to establish a program to license well-drilling contractors, pump
26	installers, water-filtration/treatment-system contractors, and water-filtration/treatment-system
27	installers to ensure persons performing well-drilling work, pump installation, and residential
28	water-filtration/treatment-system installation as properly qualified to conduct the work. On or
29	before January 1, 2017, the board shall promulgate regulations to establish a licensing program
30	that provides for appropriate categories of work to ensure proper qualifications pertaining to the
31	use of different equipment and approaches to construct, install, repair, alter, or remove wells, well
32	pumps, water-supply systems, residential water-treatment/supply systems, and water-filtration
33	systems, and that will allow well-drilling contractors, pump installers, or residential water-
34	filtration/treatment-system contractors and residential water-filtration/treatment-system installers,
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1	as described herein, to fulfill the relevant requirements of chapter 65 of title 5 through the
2	licensing program. Upon promulgation of applicable regulations, the license issued by the board
3	to a contractor shall serve to fulfill the contractor registration requirements of chapter 65 of title
4	5.
5	(b) Pursuant to board regulations, all persons seeking to be licensed as a well-drilling
6	contractor, pump installer, residential water-filtration/treatment-system contractor, or residential
7	water-filtration/treatment-system installer as defined herein shall submit an application to the
8	contractors' registration and licensing board on the form or forms that the board requires. As
9	specified by the board, the application shall include the following information:
10	(1) The name of the applicant;
11	(2) The business address of the applicant;
12	(3) The mailing address of the applicant;
13	(4) The telephone number of the applicant;
14	(5) Any registration number and/or other license numbers issued by the state, or any city
15	or town;
16	(6) A statement of the skills, training, and experience of the applicant sufficient to ensure
17	public safety, health and welfare; and
18	(7) Agent of service for out-of-state contractors.
19	(c) To be eligible for licensure as a well-drilling contractor, pump installer, residential
20	water-filtration/treatment-system contractor, or residential water-filtration/treatment-system
21	installer, an applicant shall also fulfill the following requirements:
22	(1) Be of good moral character;
23	(3 2) Pass appropriate examinations approved or administered by the contractors'
24	registration and licensing board, unless otherwise exempted in accordance with § 5-65-3(g), and
25	has met all the requirements of the rules and regulations established by the board;
26	(4 3) Be in good standing with the contractors' registration and licensing board;
27	(4) Take five (5) hours continuing education per year as set forth and recognized by the
28	contractors' registration and licensing board.
29	(d) The contractors' registration and licensing board is authorized to adopt rules and
30	regulations pursuant to the Administrative Procedures Act, chapter 35 of title 42, necessary to
31	effectuate the purpose of this chapter. Rules and regulations shall provide a fine schedule, which
32	will establish grounds for discipline for license holders or non-licensed contractors. Fines shall be
33	structured not to exceed five thousand ($5,000) dollars per day, per offense for conduct injurious
34	to the welfare of the public, as well as those required pursuant to § 5-65-10.
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1	(e) Any person applying for a license or registration and making any material
2	misstatement as to his or her experience or other qualifications, or any person, firm, or
3	corporation subscribing to or vouching for any misstatement, shall be subject to the discipline and
4	penalties provided in § 5-65-10.
5	(f) No corporation, firm, association, or partnership shall engage in the business of well
6	drilling, pump installation, water-filtration/treatment-system contracting, or represent itself as a
7	well-drilling contractor, pump installer, or water-filtration/treatment-system contractor, unless a
8	licensed well-drilling contractor, pump installer, or water-filtration/treatment-system contractor,
9	as provided in this chapter, is continuously engaged in the supervision of its well-drilling, pump-
10	installing, or water-filtration/treatment-system contracting work. If the license holder dies or
11	otherwise becomes incapacitated, the corporation, firm, or association shall be allowed to
12	continue to operate until the next examination shall be given or such times as the board shall see
13	fit. In no event, shall the corporation, firm, association, or partnership continue to operate longer
14	than twelve (12) months or in accordance with the board's established rules and regulations
15	without satisfying the license requirements of this chapter.
16	(g) Those well-drilling contractors who were previously registered with the department of
17	environmental management, and remain in good standing as of December 31, 2012, and that were
18	previously exempted from fulfilling the testing requirements required for registration by the
19	department, shall also be exempt from the testing requirements set forth in this chapter.
20	(h) Prior to January 1, 2018, the authority shall, without examination, upon receipt of the
21	fees required in this chapter, issue through the contractors' registration and licensing board a
22	residential water-filtration/treatment-system installer's license to any applicant who shall present
23	satisfactory evidence that they have the qualifications for the type of license applied for. After
24	January 1, 2018, in order to qualify for a residential water-filtration/treatment installer's license
25	the eligible individual shall be required to pass a written examination and show proof as required
26	by the contractors' registration and licensing board of their eligibility.
27	(i) Satisfactory evidence shall be any of the following that is applicable:
28	(1) The applicant must have been employed by a contractor registered with the
29	contractors' registration and licensing board to do business designating water-filtration/treatment-
30	system installation and/or service as a service provided for the previous one year and been
31	actively engaged in the installation and servicing of water-filtration/treatment systems during that
32	time period; or
33	(2) Notarized confirmation Confirmation by three (3) water-filtration/treatment-system
34	contractors that the applicant has the requisite training and experience to be licensed under this
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1	act.
2	(j) Prior to January 1, 2018, the authority shall, without examination, upon receipt of the
3	fees required in this chapter, issue through the contractors' registration and licensing board, a
4	residential water-filtration/treatment-system contractor's license to any applicant who shall
5	present satisfactory evidence that they have the qualifications for the type of license applied for.
6	After January 1, 2018, in order to qualify for a residential water-filtration/treatment contractor's
7	license, the eligible contractor shall be required to pass a written examination and show proof, as
8	required by the contractors' registration and licensing board, of their eligibility.
9	(k) Satisfactory evidence shall be any of the following that is applicable:
10	(1) The owner or owners of an enterprise must have been active in water filtration for the
11	previous two (2) years; or
12	(2) The contractor has been previously registered with the contractors' registration and
13	licensing board to do business designating water-filtration/treatment system installation and/or
14	service as a provided service; or
15	(3) Notarized confirmation Confirmation by three (3) water-filtration/treatment-system
16	contractors that the applicant has the requisite training and experience to be licensed under this
17	act.
18	SECTION 6. Section 5-71-8 of the General Laws in Chapter 5-71 entitled "Licensure of
19	Interpreters for the Deaf" is hereby amended to read as follows:
20	5-71-8. Qualifications of applicants for licenses.
21	(a) To be eligible for licensure by the board as an interpreter for the deaf or transliterator,
22	the applicant must submit written evidence on forms furnished by the department, verified by
23	oath, that the applicant meets all of the following requirements:
24	(1) Is of good moral character;
25	(2) Meets the screened requirements as defined in regulations promulgated by the
26	department or meets the certification requirements set forth by RID or its successor agency
27	approved by the department in consultation with the board;
28	(3) Pays the department a license fee as set forth in § 23-1-54;
29	(4) Adheres to the National Association of the Deaf (NAD) and the Registry of
30	Interpreters for the Deaf, Inc., (RID) code of professional conduct; and
31	(5) Provides verification of a background check with the bureau of criminal investigation
32	in the office of attorney general at the time of the initial application for license.
33	(b) To be eligible for licensure by the board as an educational interpreter for the deaf, the
34	applicant must meet all of the requirements as described in subsection (a) and must further
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1	present proof of successful completion of the educational interpreter performance assessment
2	(EIPA), written and performance tests, or a similar test as approved by the board, at a
3	performance level established by the board.
4	(c) An individual whose license, certification, permit, or equivalent form of permission
5	issued within another state has been revoked, suspended, or currently placed on probation shall
6	not be eligible for consideration for licensure unless they have first disclosed to the department
7	about such disciplinary actions.
8	SECTION 7. Section 5-73-3 of the General Laws in Chapter 5-73 entitled "Roofing
9	Contractors" is hereby amended to read as follows:
10	5-73-3. Registration and licensing of roofing contractors.
11	(a) All roofing contractors, in addition to the requirements of chapter 65 of this title
12	entitled "Contractor's' Registration and Licensing Board", if applicable, prior to conducting
13	roofing business in the state of Rhode Island, shall first submit an application to and be licensed
14	by the contractors' registration and licensing board on the form or forms that the board requires.
15	The application shall include the following information:
16	(1) The name of the applicant;
17	(2) The business address of the applicant;
18	(3) The mailing address of the applicant;
19	(4) The telephone number of the applicant;
20	(5) The name of the party or officer who shall be responsible for all roofing activities
21	conducted in the state of Rhode Island;
22	(6) Any registration number and/or other license numbers issued by the state, or any city
23	or town; and
24	(7) A statement of the skills, training and experience of the applicant sufficient to ensure
25	public safety, health and welfare.
26	(b) Licensing requirements shall not apply to roofing contractors applying shingles only.
27	(c) To be eligible for licensure as a roofing contractor an applicant shall also fulfill the
28	following requirements:
29	(1) Be of good moral character;
30	(2) Pass an examination approved or administered by the contractors' registration and
31	licensing board or has previously been registered as a commercial roofer in good standing and has
32	met all the requirements of the rules and regulations established by the board;
33	(3) Be in good standing with the contractors' registration and licensing board;
34	(4) All field personnel of the roofing contractor must have a current certificate of
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1	completion of the ten (10) hours OSHA safety course or equivalent thereof as determined by the
2	contractors' registration and licensing board;
3	(5) (4)Take ten (10) hours continuing roofing education per year two-year licensing cycle
4	as set forth and recognized by the contractors' registration board;
5	(6) Be bonded in the aggregate amount of the total dollar value of any contract entered
6	into to perform roofing work; single project in the amount of one hundred thousand dollars
7	($100,000) minimum; and
8	(7) (5) Provide the board with an insurance certificate in the amount of one million five
9	hundred thousand dollars ($1,500,000) two million dollars ($2,000,000) per occurrence pursuant
10	to the established rules and regulations, with the board as the holder, from the date of issuance,
11	continuously.
12	(d)(1) The contractors' registration and licensing board is authorized to adopt rules and
13	regulations pursuant to the Administrative Procedures Act, chapter 35 of title 42, necessary to
14	effectuate the purposes of this chapter.
15	(2) Rules and regulations shall provide a fine schedule, which will establish grounds for
16	discipline for licensee holders or non-licensed contractors.
17	(3) Fines shall be structured not to exceed five thousand dollars ($5,000) per day per
18	offense for conduct injurious to the welfare of the public as well as those required pursuant to § 5-
19	65-10.
20	(e) Any person applying for a license or registration and making any material
21	misstatement as to his or her experience or other qualifications, or any person, firm, or
22	corporation subscribing to or vouching for any misstatement shall be subject to the discipline and
23	penalties provided in § 5-65-10.
24	(f) No corporation, firm, association, or partnership shall engage in the business of
25	commercial roofing or represent itself as a commercial roofing contractor unless a licensed
26	commercial roofer as provided in this chapter is continuously engaged in the supervision of its
27	commercial roofing work, provided that the commercial roofer is a general partner or an officer
28	and shareholder in the firm or corporation. If the license holder dies or otherwise becomes
29	incapacitated, the corporation, firm, or association shall be allowed to continue to operate until
30	the next examination shall be given or such times as the board shall see fit. In no event, shall the
31	corporation, firm, association, or partnership continue to operate longer than twelve (12) months
32	or in accordance with the board's established rules and regulations without satisfying the license
33	requirements of this chapter. Those roofers who have been registered with the board on July 1,
34	2003 2015, and remain in good standing, shall be exempt from the testing requirements set forth
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1	in this chapter.
2	(g) Complaints filed with the board shall be heard only in regard to those issues so
3	established in the rules and regulations.
4	SECTION 8. Chapter 9-5 of the General Laws entitled "Writs, Summons and Process" is
5	hereby amended by adding thereto the following section:
6	9-5-10.7. Penalties.
7	Any constable who violates any of the provisions of this chapter or any regulations
8	promulgated hereunder pertaining to constables or any person who engages in activities requiring
9	certification as a constable without such certification shall be subject to payment of a civil penalty
10	not to exceed one thousand dollars ($1,000) for each violation.
11	SECTION 9. Section 11-18-12 of the General Laws in Chapter 11-18 entitled "Fraud and
12	False Dealing" is hereby amended to read as follows:
13	11-18-12. Injunction of false advertising.
14	When it appears to the director of business regulation labor and training of the state of
15	Rhode Island that any person, firm, corporation, or association is violating any of the provisions
16	of § 11-18-10, the director of business regulation labor and training may cause to be instituted an
17	action, commenced in the name of the director of business regulation labor and training in his
18	capacity as director of business regulation labor and training, to enjoin the violation in the
19	superior court and the court shall have jurisdiction to enjoin and/or restrain any person, firm,
20	corporation or association from violating any of the provisions of § 11-18-10 without regard to
21	whether criminal proceedings have been or may be instituted.
22	SECTION 10. Section 23-19.14-4 of the General Laws in Chapter 23-19.14 entitled
23	"Industrial Property Remediation and Reuse Act" is hereby amended to read as follows:
24	23-19.14-4. Objectives of environmental clean-up.
25	(a) The department of environmental management will develop, maintain and publish
26	numerical objectives for the most commonly found hazardous substances. These objectives will
27	be applicable for the clean-up of contaminated properties to levels which are protective of human
28	health and the environment based on current and reasonably foreseeable future use of a property
29	and the surrounding natural resources. To further ensure the safety of school children while
30	attending school, the department of environmental management, shall:
31	(1) Adopt numerical objectives for properties dedicated to school use equivalent to the
32	numerical objectives set by the department for residential use of such properties;
33	(2) Evaluate chemicals of concern for vapor intrusion and adopt numerical objectives for
34	those contaminants in soil and groundwater where such standards do not already exist in
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1	regulation and apply the numerical objectives for residential use established for said chemicals
2	and petroleum to properties dedicated to school use; and
3	(3) Develop and adopt procedures for determining whether levels of chemicals of
4	potential concern for vapor intrusion and petroleum in soil or groundwater pose a reasonable
5	potential for migration of contaminated vapors or gases into structures to be utilized as school
6	facilities.
7	(b)(1) The construction of any new school building; or
8	(2) Construction of an addition to any existing school building; or
9	(3) Leasing of any portion of an existing building to serve as a school shall be prohibited
10	on any portion of a parcel of property for which, upon occupancy, there exists an ongoing
11	potential for hazardous materials and/or petroleum to migrate as vapors or gases into the building
12	from the subsurface of the parcel of property, unless:
13	(i) At a property where concentrations of chemicals of potential concern for vapor
14	intrusion or petroleum in the subsurface exceed the residential direct exposure criteria in soil,
15	source areas of said chemicals or petroleum within the vadose zone of the site that includes said
16	property shall be remediated:
17	(A) Through the physical removal of said chemicals or petroleum through excavation or
18	in situ treatment; and
19	(B) The school building shall be equipped with both a passive sub slab ventilation system
20	capable of conversion to an active system and a vapor barrier beneath the school building or
21	incorporated in the concrete slab, all in compliance with an approved department of
22	environmental management remedial action work plan and completed prior to the occupancy of
23	the school;
24	(ii) At a property where concentrations of chemicals of potential concern for vapor
25	intrusion or petroleum in the subsurface do not exceed the residential direct exposure criteria in
26	soil but contamination exists on the property due to the presence of any chemicals of potential
27	concern for vapor intrusion or petroleum in groundwater, the department of environmental
28	management shall:
29	(A) Require the property's owner or operator to prepare a site specific conceptual site
30	model and conduct soil gas sampling to determine the location of the source area of said
31	chemicals or petroleum in the site's vadose zone;
32	(B) Evaluate the results of said model and sampling to determine if levels of any
33	chemicals of potential concern for vapor intrusion or petroleum could migrate as vapors or gases
34	into the occupied portions of the building where the school is proposed based on procedures
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1	developed pursuant to this chapter; and
2	(C) Where the department determines that the conceptual site model and environmental
3	sampling demonstrates that there is a credible threat of reasonable potential for migration of
4	contaminated vapors or gases into the proposed school buildings is determined to exist, the
5	department shall require remediation to eliminate said potential as follows:
6	(I) Where the source area is located on the site that includes said property, requiring the
7	physical removal of said chemicals or petroleum in the source area in the vadose zone through
8	excavation or in situ treatment; provided, the concentrations of said chemicals or petroleum in
9	said source area exceed the direct residential exposure criteria in soil; and
10	(II) Requiring the installation of both a passive sub slab ventilation system capable of
11	conversion to an active system and a vapor barrier beneath the school building or incorporated in
12	the concrete slab, all in compliance with an approved department of environmental management
13	remedial action work plan and completed prior to the occupancy of the school; and, provided
14	further, should monitoring of a passive sub-slab ventilation system indicate that active ventilation
15	is necessary to protect the health and safety of users of a school equipped with a passive system,
16	the department of environmental management shall require conversion of the passive system to
17	an active system along with financial assurances to provide for the funding of the operation and
18	monitoring of said active system for as long as active ventilation is deemed necessary by the
19	department.
20	(iii) At a property where concentrations of chemicals of potential concern for vapor
21	intrusion or petroleum in the subsurface do not exceed the residential direct exposure criteria in
22	soil on the site that includes said property, and where the department has determined that levels of
23	any chemicals of potential concern for vapor intrusion or petroleum will not present a reasonable
24	potential for migration of contaminated vapors or gases into structures to be utilized as school
25	facilities on the property, the property may be used for school purposes subject to any conditions
26	that the department of environmental management may impose pursuant to this chapter.
27	(c) The construction of any school building, or construction of an addition to any existing
28	school building, or leasing of any portion of an existing building to serve as a school on any
29	portion of a parcel of property formerly used for industrial, manufacturing or landfill purposes
30	that is contaminated by hazardous materials, shall be prohibited unless at least thirty (30) days
31	prior to selecting the location for construction or leasing the building the project sponsor
32	undertakes all of the following measures with ten (10) days prior written notice to the public of
33	each measure undertaken:
34	(1) Prepares and posts on the sponsor's website a written report that: (i) Projects the costs
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1	to acquire or lease the property, and to cleanup and maintain the property in accordance with the
2	department of environmental management's Rules and Regulations for the Investigation and
3	Remediation of Hazardous Material Releases (the Remediation Regulations); (ii) Projects the
4	time period required to complete a cleanup of the property for school purposes prior to occupancy
5	by obtaining either an Interim Letter of Compliance, a Letter of Compliance or a Non-
6	Jurisdictional Letter indicating that the property is not jurisdictional under the Remediation
7	Regulations of the department of environmental management; (iii) Discusses the rationale for
8	selecting the property for use as school purposes and an explanation of any alternatives to
9	selecting said property considered by the project sponsor;
10	(2) Solicits written comments on the report prepared pursuant to subdivision (1) of this
11	subsection for a period of at least thirty (30) days after posting said report on the sponsors website
12	and conducts a public hearing during said thirty (30) day period at which public comment is taken
13	on said report; and
14	(3) Prepares a second written report that summarizes and responds to the public
15	comments received during the public comment period and at the public hearing and posts said
16	second report on the sponsor's website.
17	(d) The sponsor of any school project subject to the provisions of subsection (c) of this
18	section shall consider the results and findings contained in the reports required by subsection (c)
19	when selecting the location of said project.
20	(e) As used in this section.
21	(1) The term "school" means any residential or non-residential school building, public,
22	private or charter, of any city or town or community educational system regulated, directly or
23	secondarily, by the council on elementary and secondary education or the department of
24	elementary and secondary education or any other state education board or local city or town
25	school board or school committee or other legal educational subdivision acting under it. As used
26	in this chapter, the term "school or schools" includes, but is not limited to, school playgrounds,
27	school administration buildings, indoor school athletic facilities, school gymnasiums, school
28	locker rooms, and similar school buildings. A school shall not include any institutions for
29	education of adults (e.g. colleges, universities, graduate schools, trade schools) or child-care
30	facilities as regulated by the department of children, youth and families.
31	(2) The term "landfill" means for the purposes of this section, any portion of a parcel of
32	property that was used as a landfill as defined in § 23-19.1-4 or a sanitary landfill, dump or other
33	disposal area where more than thirty (30) cubic yards of solid waste was disposed.
34	(3) The term "hazardous materials" means any materials defined as hazardous materials
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1	pursuant to § 23-19.14-3.
2	(4) The term "solid waste" means any materials defined as solid waste pursuant to § 23-
3	18.9-7.
4	(5) The term "chemicals of potential concern for vapor intrusion" means those chemicals
5	that the U.S. Environmental Protection Agency recommends for routine evaluation during vapor
6	intrusion assessments in said Agency's most recent guidance on the assessment of vapor intrusion
7	into indoor air from subsurface sources, and any other chemicals that the department of
8	environmental management may recommend for said routine evaluation.
9	(6) The term "source area" means the horizontal and vertical extent of natural or man-
10	made media impacted by a release of hazardous materials or causing a release of hazardous
11	materials at concentrations in excess of the numerical objectives developed pursuant to paragraph
12	(a) of this section.
13	(7) The term "vadose zone" means the full extent of the soil column existing above the
14	elevation of groundwater.
15	(8) The term "conceptual site model" means a written and/or illustrative representation of
16	the physical, chemical and biological processes that control the transport, migration and actual or
17	potential impacts of hazardous materials in soil, air, groundwater, surface water and/or sediments
18	to human and/or ecological receptors at a site.
19	(f) The provisions of this section shall not apply to the renovation or reconstruction of
20	any building for school purposes that was used continuously as a school for a period of at least
21	twenty-five (25) years where: (1) The footprint of the building after renovation or reconstruction
22	does not exceed more than five percent (5%) of the current footprint of the building; and (2) The
23	site of the building is not subject to a remedial action work plan approved by the department of
24	environmental management.
25	SECTION 11. Sections 23-26-7.1, 23-26-11 through 23-26-13, 23-26-15, 23-26-25
26	through 23-26-27, 23-26-30 and 23-26-31 Chapter 23-26 of the General Laws entitled "Bedding
27	and Upholstered Furniture" are hereby amended to read as follows:
28	23-26-7.1. Sterilization, disinfection and disinfestation of bedding and materials.
29	(a) No person shall sell, offer for sale or include in a sale any item of secondhand bedding
30	or any item of bedding of any type manufactured in whole or in part from secondhand material,
31	including their component parts or wiping rags, unless such material has been sterilized,
32	disinfected and cleaned, by a method approved by the department of business regulation;
33	provided, further, that any product used for sterilization or disinfection of secondhand bedding
34	must be registered as consumer and health benefit products and labeled for use on bedding and
	LC000763 - Page 72 of 541
1	upholstered furniture by the EPA in accordance with § 23-25-6 of this title. The department of
2	business regulation shall promulgate rules and regulations consistent with the provisions of this
3	chapter.
4	(b) No person shall use in the manufacture, repair and renovation of bedding of any type
5	any material which has been used by a person with an infectious or contagious disease, or which
6	is filthy, oily or harbors loathsome insects or pathogenic bacteria.
7	(c) No person shall sell, or offer for sale or include in a sale any material or bedding
8	which under the provisions of this chapter or regulations requires treatment unless there is
9	securely attached in accordance with regulations, a yellow tag not less than twelve square inches
10	in size, made of substantial cloth or a material of equal quality. Upon the tag there shall be plainly
11	printed, in black ink, in the English language, a statement showing:
12	(1) That the item or material has been treated by a method approved by the department of
13	business regulation, and the method of treatment applied.
14	(2) The lot number and the tag number of the item treated.
15	(3) The license registration number of the person applying treatment.
16	(4) The name and address of the person for whom treated.
17	(d) The tag required by this section shall be in addition to any other tag required pursuant
18	to the provisions of this chapter. Holders of licenses registrations to apply sterilization,
19	disinfection or disinfestation treatment shall be required to keep an accurate record of all
20	materials which have been subjected to treatment, including the source of material, date of
21	treatment, and the name and address of the receiver of each. Such records shall be available for
22	inspection at any time by authorized representatives of the department.
23	(e) Violations of this section shall be punishable by a fine not to exceed five hundred
24	dollars ($500).
25	23-26-11. Counterfeit stamps and permits registrations.
26	No person shall have in his or her possession or shall make, use, or sell any counterfeit or
27	colorable imitation of the inspection stamp or permit registration required by this chapter. Each
28	counterfeited or imitated stamp or permit registration made, used, sold, offered for sale, delivered,
29	or consigned for sale contrary to the provisions of this chapter shall constitute a separate offense.
30	23-26-12. Sterilization permits registrations.
31	Any sterilization process, before being used in connection with this chapter, must receive
32	the approval of the director. Every person, firm, or corporation desiring to operate the sterilization
33	process shall first obtain a numbered permit registration from the director and shall not operate
34	the process unless the permit registration is kept conspicuously posted in the establishment. Fee
	LC000763 - Page 73 of 541
1	for original permit registration shall be eighty-four dollars ($84.00). Application for the permit
2	registration shall be accompanied by specifications in duplicate, in such form as the director shall
3	require. Each permit registration shall expire one year from date of issue. Fee for annual renewal
4	of a sterilizing permit registration shall be one-half (1 / 2) the original fee.
5	23-26-13. Contents of tag on bedding articles for sale.
6	Every article of bedding made for sale, sold, or offered for sale shall have attached
7	thereto a tag which shall state the name of the material used, that the material used is new, or
8	second-hand and, when required to be sterilized, that the material has been sterilized, and the
9	number of the sterilizing permit registration. The tag shall also contain the name and address of
10	the maker or the vendor and the registry number of the maker. All tags attached to new articles
11	shall be legibly stamped or marked by the retail vendor with the date of delivery to the customer.
12	23-26-15. Contents of tag on shipments of filling material.
13	Any shipment or delivery, however contained, of material used for filling articles of
14	bedding shall have firmly and conspicuously attached thereto a tag which shall state the name of
15	the maker, preparer or vendor, and the address of the maker, preparer, or vendor, the name of the
16	contents and whether the contents are new or second-hand, and, if sterilized, the number of the
17	sterilizing permit registration.
18	23-26-25. Rules, regulations, and findings -- Suspension or revocation of permits
19	registrations. [Effective until July 1, 2019.]
20	The director is hereby authorized and empowered to make general rules and regulations
21	and specific rulings, demands, and findings for the enforcement of this chapter, in addition hereto
22	and not inconsistent herewith. The director may suspend or revoke any permit or registration for
23	violation of any provision of this chapter, or any rule, regulation, ruling, or demand made
24	pursuant to the authority granted by this chapter.
25	23-26-25. Rules, regulations, and findings -- Suspension or revocation of permits
26	registrations. [Effective July 1, 2019.]
27	(a) The director is hereby authorized and empowered to make general rules and
28	regulations and specific rulings, demands, and findings for the enforcement of this chapter, in
29	addition hereto and not inconsistent herewith. The director may suspend or revoke any permit or
30	registration for violation of any provision of this chapter, or any rule, regulation, ruling, or
31	demand made pursuant to the authority granted by this chapter.
32	(b) The director of the department of health shall investigate and enforce the provisions
33	of § 23-26-3.1, and promulgate rules and regulations deemed necessary to enforce it.
34	23-26-26. Appeal of director's decisions.
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1	Any person aggrieved by the action of the director in denying an application for a permit
2	or for registration, or in revoking or suspending any permit or registration, or by any order or
3	decision of the director, shall have the right to appeal to the supreme court and the procedure in
4	case of the appeal shall be the same as that provided in § 42-35-15.
5	23-26-27. Penalty for violations. [Effective until July 1, 2019.]
6	Any person who:
7	(1) Makes, remakes, renovates, sterilizes, prepares, sells, or offers for sale, exchange, or
8	lease any article of bedding as defined by § 23-26-1, not properly tagged as required by this
9	chapter; or
10	(2) Uses in the making, remaking, renovating, or preparing of the article of bedding or in
11	preparing cotton or other material therefor which has been used as a mattress, pillow, or bedding
12	in any public or private hospital, or which has been used by or about any person having an
13	infectious or contagious disease, and which after such use has not been sterilized and approved
14	for use, by the director of business regulation; or
15	(3) Counterfeits or imitates any stamp or permit registration issued under this chapter
16	shall be guilty of a misdemeanor, punishable by a fine of not more than five hundred dollars
17	($500) or by imprisonment for not more than six (6) months or both.
18	23-26-27. Penalty for violations. [Effective July 1, 2019.]
19	Any person who:
20	(1) Makes, remakes, renovates, sterilizes, prepares, sells, or offers for sale, exchange, or
21	lease any article of bedding as defined by § 23-26-1, not properly tagged as required by this
22	chapter; or
23	(2) Uses in the making, remaking, renovating, or preparing of the article of bedding or in
24	preparing cotton or other material therefor that has been used as a mattress, pillow, or bedding in
25	any public or private hospital, or that has been used by or about any person having an infectious
26	or contagious disease, and that after such use has not been sterilized and approved for use, by the
27	director of business regulation; or
28	(3) Counterfeits or imitates any stamp or permit registration issued under this chapter
29	shall be guilty of a misdemeanor, punishable by a fine of not more than five hundred dollars
30	($500) or by imprisonment for not more than six (6) months or both.
31	(4) Any person or entity who or that violates the provisions of § 23-26-3.1 shall be civilly
32	fined not to exceed five thousand dollars ($5,000) for the first violation and up to ten thousand
33	dollars ($10,000) for each subsequent violation.
34	23-26-30. License Registration required -- Application -- Issuance and term of
	LC000763 - Page 75 of 541
1	license registration.
2	No person shall be engaged: (1) as a manufacturer of articles of bedding for sale at
3	wholesale; (2) as a manufacturer of articles of bedding for sale at retail; (3) as a supply dealer; (4)
4	as a repairer-renovator; or (5) as a retailer of second-hand articles of bedding, unless he or she has
5	obtained the appropriate numbered license registration therefor from the director, who is hereby
6	empowered to issue the license registration. Application for the license registration shall be made
7	on forms provided by the director and shall contain such information as the director may deem
8	material and necessary. Based on the information furnished in the application and on any
9	investigation deemed necessary by the director, the applicant's classification shall be determined.
10	Each license registration issued by the director pursuant to this section shall be conspicuously
11	posted in the establishment of the person to whom issued. The director may withhold the issuance
12	of a license registration to any person who shall make any false statement in the application for a
13	license registration under this chapter. The director shall promulgate rules and regulations
14	mandating the term of license registration for each category of license registration issued pursuant
15	to this chapter; however, no license registration shall remain in force for a period in excess of
16	three (3) years. The fee for the initial issuance or renewal of a license registration shall be
17	determined by multiplying the per annum fee by the number of years in the term of the license
18	registration. The entire fee must be paid in full for the total number of years of license registration
19	prior to the issuance of the license registration.
20	23-26-31. Fees.
21	(a) The per annum fees imposed for licenses registrations issued pursuant to § 23-26-30
22	shall be as follows:
23	(1) Every applicant classified as a manufacturer of articles of bedding for sale at
24	wholesale or retail or as a supply dealer shall pay, prior to the issuance of a general license
25	registration, a per annum fee of two hundred ten dollars ($210) and the licensee registrant may be
26	engaged in any or all of the following:
27	(i) Manufacture of articles of bedding for sale at wholesale;
28	(ii) Manufacture of articles of bedding for sale at retail;
29	(iii) Supply dealer;
30	(iv) Repairer-renovator.
31	(2) Every applicant classified as a repairer-renovator or retailer of second-hand articles of
32	bedding shall pay, prior to the issuance of a limited license registration, a per annum fee of sixty
33	dollars ($60.00), and the licensee registrant may be engaged in any or all of the following:
34	(i) Repairer-renovator;
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1	(ii) Retailer of second-hand articles of bedding; provided, however, that if a licensee
2	registrant is reclassified from one category to another which calls for a higher license registration
3	fee, he or she shall pay a pro rata share of the higher license registration fee for the unexpired
4	period and shall be issued a new license registration to expire on the expiration date of the
5	original license registration.
6	(b) If, through error, a licensee registrant has been improperly classified as of the date of
7	issue of his or her current license registration, the proper fee for the entire period shall be payable.
8	Any overpayment shall be refunded to the licensee registrant. No refunds shall be allowed to any
9	licensee registrant who has discontinued business, or whose license registration has been revoked
10	or suspended or who has been reclassified to a category calling for a greater or lesser license
11	registration fee, except as provided herein. The fee shall be paid to the director of business
12	regulation. For reissuing a revoked or expired license registration the fee shall be the same as for
13	an original license registration.
14	(c) All payments for registration fees, sterilization process, permits, fines and penalties,
15	and other money received under this chapter shall constitute inspection fees for the purpose of
16	enforcing this chapter.
17	SECTION 12. Section 31-36.1-3 of the General Laws in Chapter 31-36.1 entitled "Fuel
18	Use Reporting Law" is hereby amended to read as follows:
19	31-36.1-3. Motor carrier license and identification -- Temporary licenses.
20	(a) Each carrier operating a qualified motor vehicle in two (2) or more jurisdictions shall
21	apply to the administrator for a motor carrier fuel use license upon forms approved by the
22	administrator and there shall be no fee for this license. be shall upon application, pay a license fee
23	of ten dollars ($10.00). The license shall remain in effect until surrendered or revoked under the
24	provisions of § 31-36.1-4. The tax administrator shall, in addition, provide identification devices
25	in the quantity requested to each licensed motor carrier. One such device must be displayed on
26	the exterior portion of each side of the cab of each qualified motor vehicle. The fee for such
27	identification device shall be ten dollars ($10.00) per qualified motor vehicle. Identification
28	devices shall be issued each year by the administrator and shall be displayed on or before March
29	1.
30	(b) The administrator may refuse to issue a license if the application for it:
31	(1) Is filed by a motor carrier whose license at any time theretofore has been revoked by
32	the administrator.
33	(2) Contains any misrepresentation, misstatement, or omission of material information
34	required by the application.
	LC000763 - Page 77 of 541
1	(3) Is filed by some other motor carrier as a subterfuge of the real motor carrier in interest
2	whose license or registration previously has been revoked for cause by the administrator.
3	(4) Is filed by any motor carrier who is delinquent in the payment of any fee, tax, penalty,
4	or other amount due the administrator for its account.
5	The finding may be made by the administrator after granting the applicant a hearing of
6	which the applicant shall be given ten (10) days notice in writing, and in which the applicant shall
7	have the right to appear in person or by counsel and present testimony.
8	(c) Temporary license. Upon application to the administrator and payment of a fee of ten
9	dollars ($10.00), an unlicensed motor carrier may obtain a temporary license which will authorize
10	one qualified motor vehicle to be operated on the highways of this state, for a period not to
11	exceed ten (10) days, without compliance with the fees imposed in this section, the tax imposed
12	in § 31-36.1-5, and the bond required in § 31-36.1-6. There shall be no fee for this license.
13	(d) The administrator may adopt rules and regulations specifying the conditions under
14	which temporary licenses will be issued and providing for their issuance.
15	SECTION 13. Sections 31-37-10 and 31-37-21 of the General Laws in Chapter 31-37
16	entitled "Retail Sale of Gasoline" are hereby amended to read as follows:
17	31-37-10. Term of licenses -- Fee.
18	(a) Any license issued by the tax administrator to an owner for the operation of a retail
19	filling station, or to a peddler of gasoline, shall, from the date of the issuance of the license, be
20	and remain in full force and effect until or unless:
21	(1) Suspended or revoked by the tax administrator,
22	(2) The business with respect to which the license was issued shall change ownership, or
23	(3) The owner or peddler shall cease to transact the business for which the license was
24	issued.
25	(b) In any of which cases the license shall expire and terminate, and its holder shall
26	immediately return the license to the tax administrator. There shall be no fee for this license.
27	The charge or fee for the license shall be five dollars ($5.00).
28	31-37-21. Enforcement.
29	The tax administrator shall enforce the provisions of this chapter and chapter 36 of this
30	title, except that the director of business regulation labor and training shall enforce the provisions
31	of §§ 31-37-11 -- 31-37-17 and §§ 11-18-13 -- 11-18-18. The department of business regulation
32	labor and training shall cause any violation subject to its jurisdiction under this chapter to be
33	referred to law enforcement officials in the city or town where the violation has or is occurring
34	for prosecution.
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1	SECTION 14. Effective September 1, 2019, Section 36-3-5 of the General Laws in
2	Chapter 36-3 entitled "Division of Personnel Administration" is hereby amended to read as
3	follows:
4	36-3-5. Powers and duties of the administrator.
5	In addition to the duties imposed upon the personnel administrator elsewhere in the law
6	and the personnel rules, it shall be the duty of the personnel administrator:
7	(1) As executive head of the division of personnel administration, to direct, supervise,
8	develop, and authorize all personnel related administrative and technical activities including
9	personnel administration and personnel management.
10	(2) To prepare and recommend to the director of administration such rules as are deemed
11	necessary to carry out the provisions of the law.
12	(3) To supervise the operation of the classification plan and to recommend to the director
13	amendments and additions thereto.
14	(4) To supervise the operation of the pay plan and to recommend to the director
15	amendments and additions thereto.
16	(5) To establish and supervise the maintenance of employment lists, promotion lists, and
17	reemployment lists; to develop recruitment procedures, monitor agency recruitment processes for
18	compliance with the statutes and policies, and make available to state agencies qualified
19	candidates as vacancies occur; direct and supervise equal opportunity programs; manage
20	employee benefit plans including the coordination of health insurance, prescription/vision care,
21	group life insurance, dental care, prepaid legal services, deferred compensation and cancer
22	programs, and any other programs established by the legislature related to employee benefits; and
23	to manage career awards programs and state and local enforcement firefighters incentive training
24	programs.
25	(6) To perform any other lawful act which he or she may consider necessary or desirable
26	to carry out the purposes and provisions of this chapter, and chapter 4 of this title, and the rules
27	and to conduct innovative demonstration projects to improve state personnel management.
28	(7) To facilitate and/or coordinate state and national background checks for applicants
29	and/or employees in state positions with access to federal tax information, as defined in § 36-3-
30	16(a)(6).
31	SECTION 15. Effective September 1, 2019, Chapter 36-3 of the General Laws entitled
32	"Division of Personnel Administration" is hereby amended by adding thereto the following
33	section:
34	36-3-16. Authority to conduct state and national background checks for applicants
	LC000763 - Page 79 of 541
1	and employees in state positions with access to federal tax information.
2	(a) Definitions. As used in this section, the following terms are hereby defined as follows:
3	(1) “Access,” shall mean the direct use, contact, handling or viewing of federal tax
4	information, as defined herein, in paper or electronic form, regardless of the frequency, likelihood
5	or extent of such access.
6	(2) “Agency” or “state agency,” shall mean a Rhode Island state agency within the
7	executive branch.
8	(3) “Agency head,” shall mean the director or designee of a state agency holding the
9	position with access (as defined herein).
10	(4) “Applicant for employment,” shall mean an individual who has applied for or may be
11	offered employment, transfer or promotional opportunities with a state agency, including
12	employment as a full-time or part-time employee, intern, temporary or seasonal employee, or
13	volunteer, in a position with access (as defined herein).
14	(5) “Current agency employee,” shall mean a full-time or part-time state employee,
15	intern, temporary or seasonal employee or volunteer in a position with access (as defined herein).
16	(6) “Federal tax information” or “FTI” shall mean:
17	i) Federal tax returns or information created or derived from federal tax returns that is in
18	an agency’s possession or control, which is covered by the confidentiality protections of the
19	Internal Revenue Code and subject to 26 U.S.C. section 6103 (p)(4) safeguarding requirements,
20	including oversight by the Internal Revenue Service (“IRS”); and received directly from the IRS
21	or obtained through an authorized secondary source, such as the Social Security Administration
22	(SSA), Federal Office of Child Support Enforcement (OCSE), Bureau of the Fiscal Service
23	(BFS), Centers for Medicare and Medicaid Services (CMS), or another entity acting on behalf of
24	the IRS pursuant to an Internal Revenue Code (“IRC”) 6103(p)(2)(B) agreement; and
25	ii) FTI shall expressly not include federal tax returns or information created or derived
26	from federal tax returns received from taxpayers or other third-parties.
27	(7) “Law enforcement authorized agency” shall mean a government entity authorized to
28	conduct national background checks using the federal bureau of investigation’s fingerprinting
29	national background check system.
30	(b) The personnel administrator or designee shall require to be obtained a state and
31	national fingerprint-based criminal background check initially and at least every ten years, as
32	authorized by Public Law 92-544, to determine the suitability of an applicant for employment
33	prior to hiring or a current agency employee, if the position applied for or held requires or
34	includes access to FTI.
	LC000763 - Page 80 of 541
1	(c) An applicant for employment or current agency employee who refuses to comply with
2	the fingerprint-based background check requirements shall be considered unsuitable for serving
3	in a position requiring or involving, or which may require or involve, access to FTI.
4	(d) The national fingerprint-based criminal background check shall be facilitated through
5	the office of the attorney general or another law enforcement authorized agency and forwarded to
6	the federal bureau of investigation for a national criminal history check, according to the policies,
7	procedures, and/or regulations established by the office of the attorney general or another law
8	enforcement authorized agency.
9	(1) For current agency employees, the agency shall pay the applicable fee charged
10	through the office attorney general or other law enforcement authorized agency to conduct state
11	and national background checks. However, applicants for employment shall be required to pay
12	the fee charged through the office attorney general or other law enforcement authorized agency.
13	(2) Fingerprint submissions may be retained by the federal bureau of Investigation and
14	the office of the attorney general or other law enforcement authorized agency to assist the
15	personnel administrator authorized pursuant to this section to ensure the continued suitability of
16	an applicant for employment or a current agency employee for access to FTI.
17	(3) The office of the attorney general or other law enforcement authorized agency may
18	disseminate the results of the state and national criminal background checks to the personnel
19	administrator or designee of the personnel administrator.
20	(4) Notwithstanding any law to the contrary, solely for the purposes of this chapter, the
21	personnel administrator, agency head and authorized staff of an agency may receive criminal
22	offender record information to the extent required by federal law and the results of checks of
23	national criminal history information databases under Public Law 92-544.
24	(5) Upon receipt of the results of state and national criminal background checks, the
25	personnel administrator, agency head and other authorized staff shall treat the information as non-
26	public and exempt from disclosure in accordance with the Rhode Island Access to Public Records
27	Act, R.I. Gen. Laws 38-2-2(4)(A)(I)(b). Information acquired by any agency in the background
28	check process pursuant to this section shall be used solely for the purposes of making a
29	determination as to the suitability of a particular current employee or applicant for employment
30	for and assignment to duties in a position that requires or includes, or may require or include,
31	access to FTI.
32	(e) If the office of the attorney general or other law enforcement authorized agency
33	receives criminal record information from the state or national fingerprint-based criminal
34	background checks that includes no disposition or is otherwise incomplete, the office of the
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1	attorney general or other law enforcement authorized agency shall notify the personnel
2	administrator and the subject person. The applicant for employment or the current agency
3	employee shall be responsible for resolving any issues in other jurisdictions causing an
4	incomplete background check. Within fifteen (15) business days from being notified, the
5	applicant for employment or current agency employee must resolve any incomplete background
6	check. For the purposes of this chapter, the personnel administrator, in his or her sole discretion,
7	may extend the amount of time to resolve an incomplete report. Once resolved, the applicant’s
8	suitability for employment in a position requiring or involving, or which may require or involve,
9	access to FTI shall be determined in accordance with subsection (f).
10	(1) In the event that an applicant for employment fails to resolve an issue with an
11	incomplete background check by the deadline stated herein, the person shall no longer be
12	considered for employment to the position with access.
13	(2) In the event that a current agency employee fails to resolve an issue with an
14	incomplete background check by the deadline provided herein, along with any extension, the
15	employee may be terminated or discharged from employment; provided, however, that a current
16	agency employee may be placed on administrative leave or reassigned to a position that does not
17	require access to FTI if that position is available and subject to the business needs of the agency
18	at the discretion of the personnel administrator and agency head. Any such employment action
19	shall be subject to same appeal or grievance procedures as normally authorized.
20	(f) The personnel administrator or designee shall review the results to determine the
21	suitability of the applicant for employment or current agency employee, based on criteria
22	established through regulation, to serve in a position requiring or involving, or which may require
23	or involve, access to FTI. In making such a determination of suitability, the personnel
24	administrator or designee may consult with the agency head and consider mitigating factors
25	relevant to the current agency employee’s employment and the nature of any disqualifying
26	offense.
27	(1) In the event that an applicant for employment receives a final determination that the
28	person is unsuitable, the person shall no longer be considered for employment into a position with
29	access.
30	(2) A current employee may appeal a determination of unsuitability to the personnel
31	administrator. While the appeal is pending, the employee may be placed on administrative leave
32	in the discretion of the personnel administrator. A final determination of unsuitability after
33	appeal may result in termination or discharge from employment; provided, however, that subject
34	to the discretion of the personnel administrator and the agency head, a current agency employee
	LC000763 - Page 82 of 541
1	may be reassigned to a position that does not require access to FTI if that position is available and
2	subject to the business needs of the agency. Any such employment action shall be subject to
3	further appeal or grievance procedures as normally authorized.
4	(g) Nothing in this section shall limit or preclude an agency’s right to carry on a
5	background investigation of an applicant for employment or a current agency employee using
6	other authorized means.
7	(h) The Department of Administration is hereby authorized to promulgate and adopt
8	regulations necessary to carry out this section.
9	(i) The judicial branch is hereby authorized to comply with the provisions herein related
10	to employees with access to FTI.
11	SECTION 16. Effective September 1, 2019, Chapter 37-2 of the General Laws entitled
12	"State Purchases" is hereby amended by adding thereto the following section:
13	37-2-81. Authority to conduct state and national background checks for vendors
14	with access to federal tax information.
15	(a) Definitions. As used in this section, the following terms shall be defined as follows:
16	(1) “Access,” shall mean the direct and indirect use, contact, handling or viewing of
17	federal tax information, as defined herein, in paper or electronic form, regardless of the
18	frequency, likelihood or extent of such access or whether the access is intentional or inadvertent.
19	(2) “Agency” or “state agency,” shall mean a Rhode Island state agency within the
20	executive branch.
21	(3) “Agency head” shall mean the director or designee of a state agency for which the
22	vendor is providing services.
23	(4) “Division” shall mean the division of purchases.
24	(5) “Federal tax information” or “FTI” shall mean:
25	i) Federal tax returns or information created or derived from federal tax returns that is in
26	an agency’s possession or control, which is covered by the confidentiality protections of the
27	Internal Revenue Code and subject to 26 U.S.C. section 6103 (p)(4) safeguarding requirements,
28	including oversight by the Internal Revenue Service (“IRS”); and is received directly from the
29	IRS or obtained through an authorized secondary source, such as the Social Security
30	Administration (SSA), Federal Office of Child Support Enforcement (OCSE), Bureau of the
31	Fiscal Service (BFS), Centers for Medicare and Medicaid Services (CMS), or another entity
32	acting on behalf of the IRS pursuant to an Internal Revenue Code (“IRC”) 6103(p)(2)(B)
33	agreement; and
34	ii) shall not include federal tax returns or information created or derived from federal tax
	LC000763 - Page 83 of 541
1	returns received directly from taxpayers or other third-parties.
2	(5) “Vendor” shall mean any individual, firm, corporation, partnership or other entity,
3	including, but not limited to, employees, subcontractors, and/or agents of the vendor, who is
4	performing services for the state and has access, as defined herein, to FTI.
5	(b) The agency head shall require a vendor’s employees, subcontractors and other agents
6	to complete a state and national fingerprint-based criminal background check, as authorized by
7	Public Law 92-544, to determine the suitability of a vendor if the services to the state requires or
8	includes, or may require or include, access to FTI. This requirement for a vendor shall be
9	incorporated by reference into the vendor’s agreement with the state. No new vendor employee,
10	subcontractor or other agent who has or may have access to FTI shall perform services for the
11	State until the person is deemed suitable by the agency head. Existing vendor employees,
12	subcontractors or other agents, as of the effective date of this statute, shall complete the
13	background check requirement within a reasonable time as approved by the agency head.
14	(c) The national fingerprint-based criminal background check shall be facilitated through
15	the Rhode Island office of the attorney general or other law enforcement authorized agency, using
16	the same criteria established under § 36-3-16 for applicants and current state employees. The
17	information shall be forwarded to the Federal Bureau of Investigation (FBI) for a national
18	criminal history check, according to the policies, procedures, and/or regulations established by
19	the office of the attorney general or other law enforcement authorized agency. The office of the
20	attorney general or other law enforcement authorized agency may disseminate the results of the
21	national criminal background checks to the Department of Administration and/or the agency head
22	where the services are being provided.
23	(d) Reciprocity. Nothing herein shall prevent the agency head, at his or her discretion,
24	from accepting a recent national fingerprint-based criminal background check for a vendor
25	employee, subcontractor or other agent related to FTI access conducted in another suitable
26	jurisdiction.
27	(e) The agency head may receive criminal offender record information to the extent
28	required by federal law and the results of checks of national criminal history information
29	databases under Public Law 92-544. Upon receipt of the results of state and national criminal
30	background checks, the agency head shall treat the information as non-public and exempt from
31	disclosure in accordance with the Rhode Island Access to Public Records Act, R.I. Gen. Laws 38-
32	2-2(4)(B). Information acquired by any agency in the background check process pursuant to this
33	section shall be used solely for the purpose of making a determination as to the suitability of a
34	vendor in a position which requires or includes, or may require or include, access to FTI.
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1	(f) The state shall not be responsible for any fees charged through the office attorney
2	general, other law enforcement authorized agency or other jurisdiction to conduct the state and
3	national background check for vendor employees, subcontractors or other agents.
4	(f) A vendor, or its employees, subcontractors or other agents, who refuses to comply
5	with the fingerprint-based background check requirement shall be considered unsuitable for
6	services requiring or involving, or which may require or involve, access to FTI. Refusal to
7	comply by the vendor may result in termination of the contract with the State and/or other
8	procurement sanctions if appropriate. Nothing herein shall prevent the vendor from replacing an
9	employee, subcontractor or other agent who refuses to comply with this requirement, subject to
10	written approval by the agency head.
11	(g) Upon receipt of the results of a state and national criminal background check for the
12	vendor employees, subcontractors or other agents, the agency head shall review the results and
13	determine the suitability of the person with regard to service in a position requiring or involving,
14	or which may require or involve, access to FTI. In making a determination of suitability, the
15	agency head may consider mitigating factors relevant to the vendor’s scope of work and the
16	nature of any disqualifying offense. Unsuitability of a vendor may result in termination of the
17	contract with the State and/or a requirement that the vendor to replace the employee,
18	subcontractor or other agent, with a suitable person, subject to written approval by the agency
19	head.
20	(h) If the office of the attorney general or other law enforcement authorized agency
21	receives criminal record information from the state or national fingerprint-based criminal
22	background checks that includes no disposition or is otherwise incomplete, the subject person
23	shall be responsible for resolving any issues in other jurisdictions causing an incomplete
24	background check. The vendor shall immediately notify the state in writing the name and
25	circumstances of any employees, subcontractors or agents who have received an incomplete
26	background check. Failure to establish suitability of a vendor employee, subcontractor or other
27	agent may result in termination of the contract with the State and/or a requirement that the vendor
28	to replace the employee, subcontractor or other agent with a suitable person, subject to written
29	approval by the agency head.
30	(j) Nothing in this section shall limit or preclude an agency’s right to carry on a
31	background investigation of a vendor using other authorized means.
32	(k) The department of administration is hereby authorized to promulgate and adopt
33	regulations necessary to carry out this section.
34	(l) The judicial branch is hereby authorized to comply with the provisions herein related
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1	to vendors working on behalf of the judiciary receiving access to FTI.
2	SECTION 17. Effective September 1, 2019, sections 40-13.2-2, 40-13.2-4 and 40-13.2-5
3	in Chapter 40-13.2 entitled "Certification of Child Care and Youth Serving Agency Workers" are
4	hereby amended to read as follows:
5	40-13.2-2. Qualification for childcare employment.
6	Notwithstanding any other provisions of law to the contrary, any person seeking to
7	operate or seeking employment in any facility which is, or is required to be, licensed or registered
8	with the department of children youth and families, the department of human services, or seeking
9	employment at the training school for youth if that employment involves supervisory or
10	disciplinary power over a child or children or involves routine contact with a child or children
11	without the presence of other employees, shall undergo an employment background check, a
12	CANTS (child abuse and neglect tracking system) check of substantiated complaints, and
13	criminal records check as provided for in this chapter. The director of the department of children,
14	youth, and families and the director of the department of human services may by rule identify
15	those positions requiring background checks, CANTS checks and criminal records checks.
16	40-13.2-4. Criminal records check -- Operators of child care facilities which must be
17	licensed or registered with the department.
18	Any person seeking to operate a facility, that is, or is required to be, licensed or registered
19	with the department of human services, shall apply to the Rhode Island bureau of criminal
20	identification, attorney general’s office, or the department of children, youth and families, for a
21	nationwide, criminal-records check. The check will conform to the applicable federal standards,
22	including the taking of fingerprints to identify the applicant, and any expense associated with
23	providing the criminal-records check shall be paid by the applicant and/or requesting agency. The
24	director of human services will determine by rule those items of information appearing on a
25	criminal-records check, which constitute disqualifying information because that information
26	would indicate that the employment could endanger the health or welfare of a child or children.
27	Upon the discovery of any disqualifying information with respect to a proposed operator, the
28	Rhode Island bureau of criminal identification will inform the director, in writing, of the nature of
29	the disqualifying information.
30	40-13.2-5. Criminal-records check – Employees of child day care, day care centers,
31	family day care homes, group family day care homes, child placing agencies and residential
32	child-care facilities which must be licensed by the department.
33	(a) A Any person seeking employment in a “child day care” program, a “family day care
34	home”, “group family day care home”, or in a “child day care center” as defined in section 42-
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1	12.5-2 of the general laws,, if that employment involves supervisory or disciplinary power over a
2	child or children or involves routine contact with a child or children without the presence of other
3	employees, in any facility that is, or is required to be, licensed or registered with the department,,
4	or any adult household member of any operator of a “family day-care home” and “group family
5	day-care home,”, or seeking that employment or to volunteer at the training school for youth,
6	shall, after acceptance by the employer of the affidavit required by § 40-13.2-3, apply to the
7	bureau of criminal identification of the state police or the local police department, or the office of
8	the attorney general, or the department of children, youth and families, for a nationwide, criminal-
9	records check. The check will conform to applicable federal standards including the taking of
10	fingerprints to identify the applicant. Further, any person seeking employment in a “child
11	day care” program, in a “child day care center”, and/or in a “child day care provider” as
12	defined in section 42-12.5-2 of the general laws, if that employment involves
13	supervisory or disciplinary power over a child or children or involves routine contact
14	with a child or children without the presence of other employees shall apply the bureau of
15	criminal identification of the state police or the local police department or the office of
16	the attorney general to search the National Crime Information Center’s National Sex
17	Offender Registry and a search of the Rhode Island Sex Offender Registry. The criminal
18	record checks and the checks of the National Sex Offender Registry and the Rhode Island
19	Sex Offender Registry, as referenced in this section, shall be conducted for every five
20	years of continuous child care employment from the date of the previous criminal
21	background check.
22	(b) Any person seeking employment in a “child placing agency” as defined in
23	section 42-72.1-2 of the general laws, if that employment involves supervisory or
24	disciplinary power over a child or children or involves routine contact with a child or
25	children without the presence of other employees, shall, after acceptance by the employer
26	of the affidavit required by § 40-13.2-3, apply to the bureau of criminal identification of
27	the state police or the local police department, or the office of the attorney general or the
28	department of children, youth and families, for a nationwide, criminal-records check. The
29	check will conform to applicable federal standards including the taking of fingerprints to
30	identify the applicant.
31	(c) Any person seeking employment in a “child caring agency”, “children’s
32	behavioral health program”, or in a “foster and adoptive home” as defined in section 42-
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1	72.1-2 of the general laws, that is, or is required to be, licensed or registered with the
2	department, shall, after acceptance by the employer of the affidavit required by § 40-
3	13.2-3, apply to the bureau of criminal identification of the state police or the local police
4	department, or the office of the attorney general, or the department of children, youth and
5	families, for a nationwide, criminal-records check. The check will conform to applicable
6	federal standards including the taking of fingerprints to identify the applicant.
7	(b)(d) Upon the discovery of any disqualifying information as defined in accordance with
8	the rule promulgated by the director, the bureau of criminal identification of the state police or the
9	local police department or the office of the attorney general or the department of children,
10	youth and families will inform the applicant, in writing, of the nature of the disqualifying
11	information. In addition, the bureau of criminal identification of the state police or the office of
12	the attorney general, or department of children, youth and families, or the local police
13	department will inform the relevant employer, in writing, without disclosing the nature of the
14	disqualifying information, that an item of disqualifying information has been discovered.
15	(e)(c) In those situations in which no disqualifying information has been found, the
16	bureau of criminal identification of the state police or the local police department or the office of
17	the attorney general, or the department of children, youth and families will inform both the
18	applicant and the employer, in writing, of this fact.
19	(f)(d) The employer will maintain on file, subject to inspection by the department,
20	evidence that criminal-records checks have been initiated on all employees seeking employment
21	after August 1, 1985, and the results of the checks.
22	(g) (e) Failure to maintain that evidence on file will be prima facie grounds to revoke the
23	license or registration of the operator of the facility.
24	(h) or(f) It will be the responsibility of the bureau of criminal identification of the state
25	police or the office of the attorney general, or the local police department, or the department of
26	children, youth and families, to conduct the nationwide, criminal-records check pursuant to this
27	section. The nationwide, criminal-records check will be provided to the applicant for employment
28	without charge.
29	SECTION 18. Section 41-5.2-2 of Chapter 41-5.2 of the General Laws in entitled "Mixed
30	Martial Arts" is hereby amended to read as follows:
31	41-5.2-2. License required for mixed-martial-arts exhibitions – amateur exhibitions
32	exempt.
33	(a) No mixed-martial-arts match or exhibition for a prize or a purse, or at which an
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1	admission fee is charged, either directly or indirectly, in the form of dues or otherwise, shall take
2	place or be conducted in this state unless licensed by the division of gaming and athletics
3	licensing in accordance with this chapter; provided that the provisions of this chapter shall not
4	apply to any mixed-martial-arts match or exhibition in which the contestants are amateurs and
5	that is conducted under the supervision and control of:
6	(1) Any educational institution recognized by the council on postsecondary education and
7	the council on elementary and secondary education of this state, or
8	(2) Any religious or charitable organization or society engaged in the training of youth
9	and recognized as such by the division of gaming and athletics licensing of this state.
10	(b) For the purposes of this section, an "amateur" shall be deemed to mean a person who
11	engages in mixed-martial-arts matches or exhibitions for which no cash prizes are awarded to the
12	participants, and for which the prize competed for, if any, shall not exceed in value the sum of
13	twenty-five dollars ($25.00).
14	SECTION 19. Chapter 41-5.2 of the General Laws entitled "Mixed Martial Arts" is
15	hereby amended by adding thereto the following section:
16	41-5.2-30. Fees of officials.
17	The fees of the referee and other licensed officials, as established by this chapter, shall be
18	fixed by the division of gaming and athletics licensing, and shall be paid by the licensed
19	organization prior to the exhibition.
20	SECTION 20. Section 42-14.2-13 of the General Laws in Chapter 42-14.2 entitled
21	"Department of Business Regulation - Automobile Wrecking and Salvage Yards" is hereby
22	amended to read as follows:
23	42-14.2-13. Penalties.
24	Any person, firm, corporation, or association violating any of the provisions of this
25	chapter or the regulations promulgated hereunder shall upon conviction be guilty of a
26	misdemeanor. Any person, firm, corporation, or association who is convicted for violation of any
27	section of this chapter shall be punished by subject to payment of a fine not to exceed five
28	hundred one thousand dollars ($5001,000) or by imprisonment for a term not to exceed one year,
29	or both fine and imprisonment for each violation of the provisions of this chapter.
30	SECTION 21. Sections 42-35.1-5 and 42-35.1-7 of the General Laws in Chapter 42-35.1
31	entitled "Small Business Regulatory Fairness in Administrative Procedures" are hereby amended
32	to read as follows:
33	42-35.1-5. Small business enforcement ombudsman.
34	(a) The director of the office of regulatory reform department of business regulation shall
	LC000763 - Page 89 of 541
1	designate an existing staff member as a "small business regulatory enforcement ombudsman,",
2	who shall report directly to the director of business regulation.
3	(b) The ombudsman shall:
4	(1) Work with each agency with regulatory authority over small businesses to ensure that
5	small business concerns that receive or are subject to an audit, on-site inspection, compliance
6	assistance effort, or other enforcement related communication or contact by agency personnel are
7	provided with a means to comment on the enforcement activity conducted by such personnel;
8	(2) Establish means to receive comments from small business concerns regarding actions
9	by agency employees conducting compliance or enforcement activities;
10	(3) Within six (6) months of appointment, work with each regulating entity to develop
11	and publish reporting policies;
12	(4) Based on substantiated comments received from small business concerns the
13	ombudsman shall annually report to the general assembly and affected agencies evaluating the
14	enforcement activities of agency personnel including a rating of the responsiveness of the
15	regulatory agencies policies;
16	(5) Coordinate and report annually on the activities, findings and recommendations to the
17	general assembly and the directors of affected agencies; and
18	(6) Provide the affected agency with an opportunity to comment on reports prepared
19	pursuant to this chapter, and include a section of the final report in which the affected agency may
20	make such comments as are not addressed by the ombudsman.
21	42-35.1-7. Expenses.
22	Except as provided in § 42-35.1-5, Tthe director of administration shall annually
23	appropriate such sums as it may deem necessary to carry out the provisions of this chapter.
24	SECTION 22. Chapter 44-1 of the General Laws entitled "State Tax Officials " is hereby
25	amended by adding thereto the following section:
26	44-1-40. Tax Administrator to prepare list of licensed taxpayers - Notice - Public
27	inspection.
28	(a) Notwithstanding any other provision of law, the tax administrator may, on a periodic
29	basis:,
30	(1) Prepare and publish for public distribution a list of entities and their active licenses
31	administered under Title 44.
32	(2) Prepare and publish for public distribution a list of entities and licenses for the current
33	year, as administered by a city or town under Chapter 5 of Title 3 of the Rhode Island General
34	Laws.
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1	(3) Prepare and publish for public distribution a list of entities and licenses for the
2	upcoming year, as administered by a city or town under Chapter 5 of Title 3 of the Rhode Island
3	General Laws.
4	(4) Each list may contain the license type, name, and address of each registered entity
5	with a license.
6	(b) The tax administrator shall not list any taxpayers that do not have an active license.
7	(c) Any such list prepared by the tax division shall be available to the public for
8	inspection by any person and may be published by the tax administrator on the tax division
9	website.
10	SECTION 23. Section 44-5.2-4 of the General Laws in Chapter 44-5.2 entitled "Powers
11	and Duties of Fire Districts in the Town of Coventry" is hereby repealed.
12	44-5.2-4. Compliance.
13	Unless otherwise provided, the division of municipal finance in the department of
14	revenue shall monitor fire district compliance with this chapter and issue periodic reports to the
15	general assembly on compliance.
16	SECTION 24. Sections 44-11-2.2 and 44-11-19 of the General Laws in Chapter 44-11
17	entitled "Business Corporation Tax" are hereby amended to read as follows:
18	44-11-2.2. Pass-through entities -- Definitions -- Withholding -- Returns.
19	(a) Definitions.
20	(1) “Administrative Adjustment Request” means an administrative adjustment request
21	filed by a partnership under IRC section 6227.
22	(2) “Audited Partnership” means a partnership or an entity taxed as a partnership
23	federally subject to a partnership level audit resulting in a federal adjustment.
24	(3) “Direct Partner” means a partner that holds an interest directly in a partnership or
25	pass-through entity.
26	(4) “Federal Adjustment” means a change to an item or amount determined under the
27	Internal Revenue Code (IRC) that is used by a taxpayer to compute Rhode Island tax owed
28	whether that change results from action by the IRS, including a partnership level audit, or the
29	filing of an amended federal return, federal refund claim, or an administrative adjustment request
30	by the taxpayer. A federal adjustment is positive to the extent that it increases state taxable
31	income as determined under Rhode Island state laws and is negative to the extent that it decreases
32	state taxable income as determined under Rhode Island state laws.
33	(5) “Final Determination Date” means if the federal adjustment arises from an IRS audit
34	or other action by the IRS, the final determination date is the first day on which no federal
	LC000763 - Page 91 of 541
1	adjustments arising from that audit or other action remain to be finally determined, whether by
2	IRS decision with respect to which all rights of appeal have been waived or exhausted, by
3	agreement, or, if appealed or contested, by a final decision with respect to which all rights of
4	appeal have been waived or exhausted. For agreements required to be signed by the IRS and the
5	taxpayer, the final determination date is the date on which the last party signed the agreement.
6	(6) “Final Federal Adjustment” means a federal adjustment after the final determination
7	date for that federal adjustment has passed.
8	(7)“Indirect Partner” means a partner in a partnership or pass-through entity that itself
9	holds an interest directly, or through another indirect partner, in a partnership or pass-through
10	entity.
11	(1) "Pass-through entity" means a corporation that for the applicable tax year is treated as
12	an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership, limited
13	partnership, limited liability partnership, trust, or limited liability company that for the applicable
14	tax year is not taxed as a corporation for federal tax purposes under the state's check-the-box
15	regulation.
16	(2)(8) "Member" means an individual who is a shareholder of an S corporation; a partner
17	in a general partnership, a limited partnership, or a limited liability partnership; a member of a
18	limited liability company; or a beneficiary of a trust;
19	(3)(9) "Nonresident" means an individual who is not a resident of or domiciled in the
20	state, a business entity that does not have its commercial domicile in the state, and a trust not
21	organized in the state.
22	(10) “Partner” means a person that holds an interest directly or indirectly in a partnership
23	or other pass-through entity.
24	(11) “Partnership” means an entity subject to taxation under Subchapter K of the IRC.
25	(12) “Partnership Level Audit” means an examination by the IRS at the partnership level
26	pursuant to Subchapter C of Title 26, Subtitle F, Chapter 63 of the IRC, as enacted by the
27	Bipartisan Budget Act of 2015, Public Law 114-74, which results in Federal Adjustments.
28	(13) "Pass-through entity" means a corporation that for the applicable tax year is treated
29	as an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership,
30	limited partnership, limited liability partnership, trust, or limited liability company that for the
31	applicable tax year is not taxed as a corporation for federal tax purposes under the state's check-
32	the-box regulation.
33	(14) “Tiered Partner” means any partner that is a partnership or pass-through entity.
34	(b) Withholding.
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1	(1) A pass-through entity shall withhold income tax at the highest Rhode Island
2	withholding tax rate provided for individuals or seven percent (7%) for corporations on the
3	member's share of income of the entity that is derived from or attributable to sources within this
4	state distributed to each nonresident member and pay the withheld amount in the manner
5	prescribed by the tax administrator. The pass-through entity shall be liable for the payment of the
6	tax required to be withheld under this section and shall not be liable to such member for the
7	amount withheld and paid over in compliance with this section. A member of a pass-through
8	entity that is itself a pass-through entity (a "lower-tier pass-through entity") shall be subject to
9	this same requirement to withhold and pay over income tax on the share of income distributed by
10	the lower-tier pass-through entity to each of its nonresident members. The tax administrator shall
11	apply tax withheld and paid over by a pass-through entity on distributions to a lower-tier pass-
12	through entity to the withholding required of that lower-tier pass-through entity.
13	(2) A pass-through entity shall, at the time of payment made pursuant to this section,
14	deliver to the tax administrator a return upon a form prescribed by the tax administrator showing
15	the total amounts paid or credited to its nonresident members, the amount withheld in accordance
16	with this section, and any other information the tax administrator may require. A pass-through
17	entity shall furnish to its nonresident member annually, but not later than the fifteenth day of the
18	third month after the end of its taxable year, a record of the amount of tax withheld on behalf of
19	such member on a form prescribed by the tax administrator.
20	(c) Notwithstanding subsection (b), a pass-through entity is not required to withhold tax
21	for a nonresident member if:
22	(1) The member has a pro rata or distributive share of income of the pass-through entity
23	from doing business in, or deriving income from sources within, this state of less than $1,000 per
24	annual accounting period;
25	(2) The tax administrator has determined by regulation, ruling, or instruction that the
26	member's income is not subject to withholding;
27	(3) The member elects to have the tax due paid as part of a composite return filed by the
28	pass-through entity under subsection (d); or
29	(4) The entity is a publicly traded partnership as defined by 26 U.S.C. § 7704(b) that is
30	treated as a partnership for the purposes of the Internal Revenue Code and that has agreed to file
31	an annual information return reporting the name, address, taxpayer identification number and
32	other information requested by the tax administrator of each unitholder with an income in the
33	state in excess of $500.
34	(d) Composite return.
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1	(1) A pass-through entity may file a composite income tax return on behalf of electing
2	nonresident members reporting and paying income tax at the state's highest marginal rate on the
3	members' pro rata or distributive shares of income of the pass-through entity from doing business
4	in, or deriving income from sources within, this State.
5	(2) A nonresident member whose only source of income within a state is from one or
6	more pass-through entities may elect to be included in a composite return filed pursuant to this
7	section.
8	(3) A nonresident member that has been included in a composite return may file an
9	individual income tax return and shall receive credit for tax paid on the member's behalf by the
10	pass-through entity.
11	(e) Partnership Level Audit
12	(1) A partnership shall report final federal adjustments pursuant to IRC section
13	6225(a)(2) arising from a partnership level audit or an administrative adjustment request and
14	make payments by filing the applicable supplemental return as prescribed under § 44-11-
15	2.2(e)(1)(ii), and as required under § 44-11-19(b), in lieu of taxes owed by its direct and indirect
16	partners.
17	(i) Failure of the audited partnership or tiered partner to report final federal adjustments
18	pursuant to IRC section 6225(a) and 6225(c) or pay does not prevent the Ttax Aadministrator
19	from assessing the audited partnership, direct partners or indirect partners for taxes they owe,
20	using the best information available, in the event that a partnership or tiered partner fails to timely
21	make any report or payment required by § 44-11-19(b) for any reason.
22	(ii) The tax administrator may promulgate rules and regulations, not inconsistent with
23	law, to carry into effect the provisions of this chapter.
24	44-11-19. Supplemental returns -- Additional tax or refund.
25	(a) Any taxpayer which fails to include in its return any items of income or assets or any
26	other information required by this chapter or by regulations prescribed in pursuance of this
27	chapter shall make a supplemental return disclosing these facts. Except in the case of final federal
28	adjustments that are required to be reported by a partnership and its partners using the procedures
29	under section (b) below, Aany taxpayer whose return to the collector of internal revenue, or
30	whose net income returned, shall be changed or corrected by any official of the United States
31	government in any respect affecting a tax imposed by this chapter including a return or other
32	similar report filed pursuant to IRC section 6225(c)(2), shall, within sixty (60) days after receipt
33	of a notification of the final adjustment and determination of the change or correction, make the
34	supplemental return required by this section (a).
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1	(b) Except for the distributive share of adjustments that have been reported as required
2	under section (a), partnerships and partners shall, within one hundred and eighty (180) days after
3	receipt of notification of the final federal adjustments arising from a partnership level audit or an
4	administrative adjustment, make the supplemental return and make payments as required by this
5	section (b).
6	(b)c Upon the filing of a supplemental return the tax administrator shall examine the
7	return and shall determine any additional tax or refund that may be due and shall notify the
8	taxpayer. Any additional tax shall be paid within fifteen (15) days after the notification together
9	with interest at the annual rate provided by § 44-1-7 from the original due date of the return for
10	the taxable year to the date of payment of the additional tax. Any refund shall be made by the tax
11	administrator together with interest at the annual rate provided by § 44-1-7.1 from the date of
12	payment of the tax to the date of the refund.
13	SECTION 25. Sections 44-30-59, 44-30-71.2, 44-30-71.4 and 44-30-84 of the General
14	Laws in Chapter 44-30 entitled "Personal Income Tax" are hereby amended to read as follows:
15	44-30-59. Report of change in federal taxable income.
16	(a) Subject to regulations of the tax administrator, if the amount of a taxpayer's federal
17	taxable income reported on his or her federal income tax return for any taxable year beginning on
18	or after January 1, 1971, is changed or corrected by the United States Internal Revenue Service or
19	other competent authority, or as the result of a renegotiation of a contract or subcontract with the
20	United States, the taxpayer shall report the change or correction in federal taxable income within
21	ninety (90) days after the final determination of the change, correction, or renegotiation, or as
22	otherwise required by the tax administrator, and shall concede the accuracy of the determination
23	or state wherein it is erroneous. Any taxpayer filing an amended federal income tax return shall
24	also file within ninety (90) days thereafter an amended Rhode Island personal income tax return
25	and shall give any information that the tax administrator may require.
26	(b) In the case of a partnership level audit pursuant to § 44-11-2.2(e)(1), partners shall,
27	within one hundred and eighty days (180) days after receipt of notification of the final federal
28	adjustments arising from a partnership level audit or an administrative adjustment, make the
29	supplemental return and make payments as required by this subsection (b).
30	44-30-71.2. Withholding of tax from lottery and pari-mutuel betting winnings.
31	(a) The director of lotteries shall deduct and withhold from the prize money, income from
32	casino gambling or income from sports wagering revenue as prescribed by 42-61.2-1, of any
33	person winning a prize from the state lottery, casino gambling or sports wagering, a tax computed
34	in such a manner as to result, so far as practicable, in an amount substantially equivalent to the tax
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1	reasonably estimated to be due resulting from the inclusion in the individual's Rhode Island
2	income of his or her prize money received during the calendar year. The method of determining
3	the amount to be withheld shall be prescribed by regulations of the tax administrator, which
4	regulations and amounts shall be based upon the federal rules, regulations and procedures.
5	(b) Every licensee conducting or operating events upon which pari-mutuel betting is
6	allowed shall deduct and withhold from the winnings of any person a tax computed in such
7	manner as to result, so far as practicable, in an amount substantially equivalent to the tax
8	reasonably estimated to be due resulting from the inclusion in the individual's Rhode Island
9	income of his or her winnings received during the calendar year. The method of determining the
10	amount to be withheld shall be prescribed by regulations of the tax administrator, which
11	regulations and the amounts shall be based upon the federal rules, regulations and procedures.
12	44-30-71.4. Employee leasing companies -- Payroll companies.
13	(a) Employee leasing company certification.
14	(1) Every "employee leasing company", defined in this section as any individual, firm,
15	partnership or corporation engaged in providing workers to employers or firms under a contract
16	or leasing arrangement, shall, as a condition of doing business in this state, be certified by the
17	division of taxation each year, that the company has complied with the withholding provisions of
18	chapter 30 of this title.
19	(2) Employee leasing companies must apply to the division of taxation during the month
20	of July of each year on forms prescribed by the tax administrator for a certificate executed by the
21	tax administrator certifying that all taxes withheld from employees, or subject to withholding
22	from employees have been remitted to the division of taxation including the withholding
23	provisions of chapter 30 of this title and the contribution, interest, and penalty provisions pursuant
24	to the Employment Security Act, chapters 42 -- 44 of title 28, and the Temporary Disability
25	Insurance Act, chapters 39 -- 41 of title 28 have been remitted to the department of labor and
26	training. No certificate shall be issued if taxes subject to withholding or contributions have not
27	been withheld and remitted.
28	(3) No employee leasing firm may conduct business in this state without the certification
29	prescribed in subdivision (2) of this subsection. Any employer or firm that engages any employee
30	leasing company that is not certified by the tax administrator shall be jointly and severally liable
31	for the taxes required to be withheld and remitted under § 44-30-71 or chapters 39 -- 44 of title
32	28.
33	(b) Payroll companies -- Joint liability. Every payroll company, herein defined as any
34	individual, firm, partnership or corporation engaging in providing payroll services to employers
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1	which services include the withholding of tax including the withholding provisions of chapter 30
2	of this title and the contribution, interest, and penalty provisions pursuant to the Employment
3	Security Act, chapters 42 -- 44 of title 28, and the Temporary Disability Insurance Act, chapters
4	39 -- 41 of title 28 from employee wages and which receives moneys from a customer or
5	employer for Rhode Island withholding from the wages of the customer's employees, and who
6	fails to remit said withholding to the division of taxation or contributions to the department of
7	labor and training on a timely basis, shall be jointly and severally liable with the customer or
8	employer for said withholdings.
9	44-30-84. Interest on underpayment.
10	(a) General.
11	(1) If any amount of Rhode Island personal income tax, including any amount of the tax
12	withheld by an employer, is not paid on or before the due date, interest on the amount at the
13	annual rate provided by § 44-1-7 shall be paid for the period from the due date to the date paid,
14	whether or not any extension of time for payment was granted. The interest shall not be paid if its
15	amount is less than two dollars ($2.00).
16	(2) Interest prescribed under this section may be waived by the tax administrator in the
17	event the underpayment results from the state's closing of banks and credit unions in which the
18	taxpayer's monies are deposited and the taxpayer has no other funds from which to pay his or her
19	tax.
20	(b) Estimated tax. If an individual fails to file a declaration of estimated Rhode Island
21	personal income tax as required by § 44-30-55, or to pay any installment of the tax as required by
22	§ 44-30-56, the individual shall pay interest at the annual rate provided by § 44-1-7 for the period
23	the failure continues, until the fifteenth day of the fourth month following the close of the taxable
24	year. The interest in respect of any unpaid installment shall be computed on the amount by which
25	his or her actual payments and credits in respect of the tax are less than eighty percent (80%) of
26	the installment at the time it is due. Notwithstanding the foregoing, no interest shall be payable if
27	one of the exceptions specified in 26 U.S.C. § 6654(d)(1) or (2) would apply if the exceptions
28	referred to the corresponding Rhode Island tax amounts and returns.
29	(c) Payment prior to notice of deficiency. If, prior to the mailing to the taxpayer of notice
30	of deficiency under § 44-30-81, the tax administrator mails to the taxpayer a notice of proposed
31	increase of tax and within thirty (30) days after the date of the notice of the proposed increase the
32	taxpayer pays all amounts shown on the notice to be due to the tax administrator, no interest
33	under this section on the amount so paid shall be imposed for the period after the date of the
34	notice of proposed increase.
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1	(d) Payment within ten (10) days after notice and demand. If notice and demand is made
2	for payment of any amount, and the amount is paid within ten (10) days after the effective date of
3	the notice and demand under § 44-30-81(b), interest under this section on the amount so paid
4	shall not be imposed for the period after the date of the notice and demand.
5	(e) Suspension of interest on deficiencies. If a waiver of restrictions on assessment of a
6	deficiency has been filed by the taxpayer, and if notice and demand by the tax administrator for
7	payment of the deficiency is not made within thirty (30) days after the filing of the waiver,
8	interest shall thereupon cease to accrue until the date of notice and demand.
9	(f) Interest treated as tax. Interest under this section shall be paid upon notice and demand
10	and shall be assessed, collected, and paid in the same manner as the tax, except that interest under
11	subsection (b) of this section may be assessed without regard to the restrictions of § 44-30-81.
12	(g) No interest on interest. No interest shall be imposed on any interest provided in this
13	section.
14	(h) Interest on civil penalties and additions to tax. Interest shall be imposed under
15	subsection (a) of this section in respect of any assessable civil penalty or addition to tax only if
16	the assessable penalty or addition to tax is not paid within fifteen (15) days from the effective
17	date of notice and demand therefor under § 44-30-81(b), and in that case interest shall be imposed
18	only for the period from the effective date of the notice and demand to the date of payment.
19	(i) Tax reduced by carryback. If the amount of tax for any taxable year is reduced by
20	reason of a carryback of a net operating loss, the reduction in tax shall not affect the computation
21	of interest under this section for the period ending with the last day of the taxable year in which
22	the net operating loss arises.
23	(j) Limitation on assessment or collection. Interest prescribed under this section may be
24	assessed or collected at any time during the period within which the tax or other amount to which
25	the interest relates may be assessed or collected.
26	(k) Interest on erroneous refund. Any portion of tax or other amount which has been
27	erroneously refunded, and which is recoverable by the tax administrator, shall bear interest at the
28	annual rate provided by § 44-1-7 from the date of the payment of the refund.
29	(l) Timely Deposits for Withheld Tax. If an entity fails to remit withheld tax at the times
30	prescribed by the tax administrator, there may be interest assessed at the annual rate provided by
31	§ 44-1-7 for the period the failure continues, until the thirty-first day of the first month following
32	the close of the taxable year. The interest with respect to any failed remittances shall be computed
33	as prescribed by the tax administrator.
34	SECTION 26. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is
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1	hereby amended by adding thereto the following section:
2	44-30-85.1. Electronic filing of withholding tax returns and penalties.
3	(1) Beginning on January 1, 2020, every employer required to deduct and withhold tax
4	under this chapter, who had an average tax amount of two hundred dollars ($200) or more per
5	month for the previous calendar year, shall file a return and remit said payments by electronic
6	funds transfer or other electronic means as defined by the tax administrator. The tax administrator
7	shall adopt any rules necessary to administer a program of electronic funds transfer or other
8	electronic filing system.
9	(2) Beginning on January 1, 2020, if any person fails to pay said taxes by electronic funds
10	transfer or other electronic means defined by the tax administrator as required hereunder, there
11	shall be added to the amount of tax the lesser of five percent (5%) of the withheld tax payment
12	amount that was not filed electronically or five hundred dollars ($500), whichever is less, unless
13	there was reasonable cause for the failure and such failure was not due to negligence or willful
14	neglect.
15	(3) Notwithstanding the provisions of 44-30-85(j)(2), beginning on January 1, 2020, if
16	any person fails to file a return by electronic means defined by the tax administrator as required
17	hereunder, there shall be added to the amount of tax equal to fifty dollars ($50), unless there was
18	reasonable cause for the failure and such failure was not due to negligence or willful neglect.
19	SECTION 27. Section 45-19-1 of the General Laws in Chapter 45-19 entitled "Relief of
20	Injured and Deceased Fire Fighters and Police Officers" is hereby amended to read as follows:
21	45-19-1. Salary payment during line of duty illness or injury.
22	(a) Whenever any police officer of the Rhode Island Airport Corporation or whenever
23	any police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal,
24	or deputy fire marshal of any city, town, fire district, or the state of Rhode Island is wholly or
25	partially incapacitated by reason of injuries received or sickness contracted in the performance of
26	his or her duties or due to their rendering of emergency assistance within the physical boundaries
27	of the state of Rhode Island at any occurrence involving the protection or rescue of human life
28	which necessitates that they respond in a professional capacity when they would normally be
29	considered by their employer to be officially off-duty, the respective city, town, fire district, state
30	of Rhode Island or Rhode Island Airport Corporation by which the police officer, fire fighter,
31	crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, is
32	employed, shall, during the period of the incapacity, pay the police officer, fire fighter, crash
33	rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, the salary or
34	wage and benefits to which the police officer, fire fighter, crash rescue crewperson, fire marshal,
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1	chief deputy fire marshal, or deputy fire marshal, would be entitled had he or she not been
2	incapacitated, and shall pay the medical, surgical, dental, optical, or other attendance, or
3	treatment, nurses, and hospital services, medicines, crutches, and apparatus for the necessary
4	period, except that if any city, town, fire district, the state of Rhode Island or Rhode Island
5	Airport Corporation provides the police officer, fire fighter, crash rescue crewperson, fire
6	marshal, chief deputy fire marshal, or deputy fire marshal, with insurance coverage for the related
7	treatment, services, or equipment, then the city, town, fire district, the state of Rhode Island or
8	Rhode Island Airport Corporation is only obligated to pay the difference between the maximum
9	amount allowable under the insurance coverage and the actual cost of the treatment, service, or
10	equipment. In addition, the cities, towns, fire districts, the state of Rhode Island or Rhode Island
11	Airport Corporation shall pay all similar expenses incurred by a member who has been placed on
12	a disability pension and suffers a recurrence of the injury or illness that dictated his or her
13	disability retirement, subject to the provisions of subsection (j) herein.
14	(b) As used in this section, "police officer" means and includes any chief or other
15	member of the police department of any city or town regularly employed at a fixed salary or wage
16	and any deputy sheriff, member of the fugitive task force, or capitol police officer, permanent
17	environmental police officer or criminal investigator of the department of environmental
18	management, or airport police officer.
19	(c) As used in this section, "fire fighter" means and includes any chief or other member of
20	the fire department or rescue personnel of any city, town, or fire district, and any person
21	employed as a member of the fire department of the town of North Smithfield, or fire department
22	or district in any city or town.
23	(d) As used in this section, "crash rescue crewperson" means and includes any chief or
24	other member of the emergency crash rescue section, division of airports, or department of
25	transportation of the state of Rhode Island regularly employed at a fixed salary or wage.
26	(e) As used in this section, "fire marshal," "chief deputy fire marshal", and "deputy fire
27	marshal" mean and include the fire marshal, chief deputy fire marshal, and deputy fire marshals
28	regularly employed by the state of Rhode Island pursuant to the provisions of chapter 28.2 of title
29	23.
30	(f) Any person employed by the state of Rhode Island, except for sworn employees of the
31	Rhode Island State Police, who is otherwise entitled to the benefits of chapter 19 of this title shall
32	be subject to the provisions of chapters 29 -- 38 of title 28 for all case management procedures
33	and dispute resolution for all benefits.
34	(g) In order to receive the benefits provided for under this section, a police officer or
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1	firefighter must prove to their employer that he or she had reasonable grounds to believe that
2	there was an emergency which required an immediate need for their assistance for the protection
3	or rescue of human life.
4	(h) Any claims to the benefits provided for under this section resulting from the rendering
5	of emergency assistance in the state of Rhode Island at any occurrence involving the protection or
6	rescue of human life while off-duty, shall first require those covered by this section to submit a
7	sworn declaration to their employer attesting to the date, time, place and nature of the event
8	involving the protection or rescue of human life causing the professional assistance to be rendered
9	and the cause and nature of any injuries sustained in the protection or rescue of human life. Sworn
10	declarations shall also be required from any available witness to the alleged emergency involving
11	the protection or rescue of human life.
12	(i) All declarations required under this section shall contain the following language:
13	"Under penalty of perjury, I declare and affirm that I have examined this declaration,
14	including any accompanying schedules and statements, and that all statements contained herein
15	are true and correct."
16	(j) Any person receiving injured on-duty benefits pursuant to this section, and subject to
17	the jurisdiction of the state retirement board for accidental retirement disability, for an injury
18	occurring on or after July 1, 2011, shall apply for an accidental disability retirement allowance
19	from the state retirement board not later than the later of eighteen (18) months after the date of the
20	person's injury that resulted in said person's injured on duty status or sixty (60) days from the date
21	on which a the treating physician or an independent medical examiner certifies that the person has
22	reached maximum medical improvement, and in any event not later than eighteen (18) months
23	after the date of the person’s injury that resulted in said person being on injured on-duty. Nothing
24	herein shall be construed to limit or alter any and all rights of the parties with respect to
25	independent medical examination or otherwise, as set forth in the applicable collective bargaining
26	agreement. Notwithstanding the forgoing, any person receiving injured on duty benefits as the
27	result of a static and incapacitating injury whose permanent nature is readily obvious and
28	ascertainable shall be required to apply for an accidental disability retirement allowance within
29	sixty (60) days from the date on which a the treating physician or an independent medical
30	examiner certifies that the person's injury is permanent, or sixty (60) days from the date on which
31	such determination of permanency is made in accordance with the independent medical
32	examination procedures as set forth in the applicable collective bargaining agreement.
33	(1) If a person with injured on duty status fails to apply for an accidental disability
34	retirement allowance from the state retirement board within the time frame set forth above, that
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1	person's injured on duty payment shall terminate. Further, any person suffering a static and
2	incapacitating injury as set forth in subsection (j) above and who fails to apply for an accidental
3	disability benefit allowance as set forth in subsection (j) shall have his or her injured on duty
4	payment terminated.
5	(2) A person who so applies shall continue to receive injured on duty payments, and the
6	right to continue to receive IOD injured on-duty payments of a person who so applies shall
7	terminate upon final adjudication by the state retirement board approving or denying either
8	ordinary or accidental disability payments and, notwithstanding §45-21.2-9, this termination of
9	injured on duty benefits shall not be stayed. in the event of a final ruling of the workers
10	compensation court allowing accidental disability benefits. Nothing herein shall be construed to
11	limit or alter any and all rights of the parties with respect to independent medical examination or
12	otherwise, as set forth in the applicable collective bargaining agreement.
13	(3)(a) Notwithstanding any other provision of law, all persons entitled to benefits under
14	this section who were injured prior to July 1, 2019 and who have been receiving injured on duty
15	benefits pursuant to this section for a period of eighteen (18) months or longer as of July 1, 2019
16	shall have up to ninety (90) days from July 1, 2019 to apply for an accidental disability retirement
17	benefit allowance. Any person receiving injured on-duty benefits for a period less than eighteen
18	(18) months as of July 1, 2019 shall apply for an accidental disability retirement benefit
19	allowance within eighteen (18) months of the date of injury that resulted in said person receiving
20	injured on-duty pay, provided however, said person shall have a minimum of ninety (90) days to
21	apply.
22	Applications for disability retirement received by the state retirement board by any
23	person employed by the State of Rhode Island receiving injured on-duty payments that shall be
24	deemed untimely pursuant to §36-10-14(b) shall have ninety (90) days from July 1, 2019 to apply
25	for an accidental disability retirement benefit allowance. Failure to apply for an accidental
26	disability retirement benefit allowance within the timeframe set forth herein shall result in the
27	termination of injured on duty benefits.
28	(b) Any person who is currently receiving injured on-duty payments and who has been
29	denied or approved for an ordinary or accidental disability benefit based on a final adjudication of
30	the state retirement board, shall have injured on-duty payments terminated and, if approved, shall
31	receive benefits consistent with the award of an ordinary or accidental disability as applicable.
32	(4) If awarded an accidental disability pension, any person employed by the state of
33	Rhode Island covered under this section shall receive benefits consistent with §36-10-15.
34	SECTION 28. Effective Date. Sections 14, 15, 16, and 17 of this article shall take effect
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1	September 1, 2019. The remaining sections of this article shall take effect upon passage.
2	ARTICLE 4
3	RELATING TO GOVERNMENT REORGANIZATION
4	SECTION 1. In any General or Special Law of the State of Rhode Island, and specifically
5	in Title 28, Chapters 39, 40, 42 and 43 of the General Laws of Rhode Island, 1956, as amended,
6	reference to the collection of temporary disability insurance, employment security taxes or job
7	development fund by the tax administrator and/or the division of taxation within the department
8	of administration or the department of revenue shall be construed to refer to the department of
9	labor and training. In any reference in Title 28, Chapters 39, 40, 42, and 43, any reference to the
10	tax administrator and/or the division of taxation within the department of administration or
11	department of revenue concerning with reference to the collection of revenues or any other duties
12	shall be construed to refer to the director of the department of labor and training. Any revenue
13	collection or any other duties conferred upon the tax administrator and/or division of taxation
14	within the department of administration or the department of revenue and/or by said Title 28,
15	Chapters 39, 40, 42 and 43 shall be construed to refer to the department of labor and training or
16	the director of the department of labor and training. The tax administrator within the department
17	of revenue division of taxation and the director of the department of labor and training shall be
18	authorized to share information under Title 28, Chapter 39, 40, 42, 43 and Title 44 for purposes
19	of tax administration and shall enter into a written memorandum of understanding to facilitate tax
20	administration.
21	SECTION 2. The law revision director of the joint committee on legislative services is
22	authorized and empowered to make appropriate changes in said Title 28, Chapters 39, 40, 42 and
23	43 and any other section of the laws to carry out the intent of this act.
24	SECTION 3. Chapter 30-17.1 of the General Laws entitled "Veterans' Affairs" is hereby
25	amended by adding thereto the following sections:
26	30-17.1-14. Assistance on veterans claims.
27	The office shall prepare and present before the veterans benefit administration of the
28	United States all legal claims of veterans for compensation, disability allowance, insurance, and
29	pensions of veterans of World War I, and all other veterans to whom benefits have been extended
30	pursuant to the provisions of chapter 22 of title 30, entitled "Extension of Veterans Benefits,"
31	who had a legal residence in this state at the time of entrance into the service or who have been
32	qualified electors in this state for two (2) years preceding the application for aid, and their
33	personal representatives or dependents, or both, and shall render to such persons reasonable
34	assistance in the preparation and presentation of any of those claims and shall perform such other
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1	duties as may be required by law. The office shall render such assistance without charge to the
2	claimant.
3	30-17.1-15. Special veterans' funds.
4	The director of the office shall have control and supervision over any special funds
5	provided for decorating and installing metal markers on the graves of soldiers, sailors, airmen,
6	and marines, for the burial of honorably discharged soldiers, for the assistance of World War I
7	veterans, and other expenditures relating to veteran soldiers, sailors, airmen, and marines.
8	SECTION 4. Sections 30-17.1-1, 30-17.1-4, 30-17.1-6, 30-17.1-7, 30-17.1-9, 30-17.1-10,
9	30-17.1-11 and 30-17.1-13 of the General Laws in Chapter 30-17.1 entitled "Veterans' Affairs"
10	are hereby amended to read as follows:
11	30-17.1-6. Establishment of the office of veterans' affairs; director.
12	(a) There is hereby established within the executive branch of government an office of
13	veterans' affairs. The director of the office of veterans' affairs shall be a person qualified through
14	experience and training and shall be an honorably discharged war veteran of the United States
15	armed forces. The director of the office of veterans' affairs shall be appointed by and report
16	directly to the governor, but the office shall reside within the department of human services
17	executive office of health and human services for administrative purposes.
18	(b) The director of veterans' affairs shall have all such powers, consistent with law, as are
19	necessary and/or convenient to effectuate the purposes of this chapter and to administer its
20	functions, including, but, not limited to, the power to promulgate and adopt regulations. The
21	director shall have authority to apply for, receive, and administer grants and funds from the
22	federal government and all other public and private entities to accomplish the purposes of the
23	office.
24	30-17.1-7. Annual report to general assembly.
25	The director of veterans' affairs shall report annually, no later than January 31st of each
26	year, to the governor, speaker of the house of representatives, the senate president, and house and
27	senate finance committees, setting forth, in detail, the condition of the veterans' home, any
28	veterans' cemetery authorized and established by the general assembly, and in general the
29	character of the work of veterans' affairs the office, and shall render in the report a faithful
30	account of all moneys received and expended by the director of human services secretary of the
31	office of health and human services and by the office of veterans' affairs in the execution of the
32	provisions of this chapter and chapter 24 of this title, excepting the names of persons to whom
33	they have furnished assistance which shall be omitted.
34	30-17.1-10. Veterans' services strategic plan advisory committee established.
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1	(a) There is hereby created a veterans' services strategic plan advisory committee known
2	as "the Rhode Island veterans' services strategic plan advisory committee" consisting of fourteen
3	(14) members as follows:
4	(1) One of whom shall be the director of the office of veterans' affairs, or his or her
5	designee, who shall serve as chairperson;
6	(2) One of whom shall be the director of the department of human services secretary of
7	the executive office of health and human services, or his or her designee;
8	(3) One of whom shall be the executive director of the public transit authority, or his or
9	her designee;
10	(4) One of whom shall be the postsecondary education commissioner, or his or her
11	designee;
12	(5) One of whom shall be the director of the department of behavioral healthcare,
13	developmental disabilities and hospitals, or his or her designee;
14	(6) One of whom shall be the director of the department of health, or his or her designee;
15	(7) One of whom shall be the director of the division office of elderly affairs, or his or her
16	designee;
17	(8) One of whom shall be the director of the department of business regulation, or his or
18	her designee;
19	(9) One of whom shall be the chief judge of the district court, or his or her designee;
20	(10) One of whom shall be the director of the department of labor and training, or his or
21	her designee;
22	(11) One of whom shall be the director of the Rhode Island commerce corporation, or his
23	or her designee;
24	(12) One of whom shall be the secretary of state, or his or her designee;
25	(13) One of whom shall be the adjutant general of the Rhode Island national guard, or his
26	or her designee; and
27	(14) One of whom shall be a representative for Rhode Island municipal governments.
28	(b) Forthwith upon the passage of this chapter, the members of the advisory committee
29	shall meet at the call of the chairperson and organize. Thereafter, the committee shall meet at the
30	call of the chairperson or three (3) members of the advisory committee.
31	(c) All departments and agencies of the state shall furnish such advice and information,
32	documentation, and otherwise to the committee and its agents as is deemed necessary or desirable
33	by the advisory committee to facilitate the purposes of this chapter.
34	(d) The office of veterans' affairs is hereby directed to provide suitable quarters and staff
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1	for the advisory committee.
2	(e) [Deleted by P.L. 2017, ch. 131, § 1 and P.L. 2017, ch. 152, § 1].
3	(f) The members of the advisory committee shall receive no compensation for their
4	services.
5	30-17.1-11. The duties of the committee.
6	(a) The advisory committee, acting through the office of veterans' affairs, shall work in
7	conjunction with the department of human services executive office of health and human services
8	to develop, maintain, and annually update a five-year (5) statewide veterans' services strategic
9	plan ("VSSP") that includes goals and measurable outcomes to ensure that all departments deliver
10	comprehensive services and supports for veterans and their families.
11	(b) The advisory committee shall conduct an analysis of study toward the development of
12	the "VSSP" that shall include, but not be limited to, the following veterans' issues:
13	(1) Living in poverty;
14	(2) Disability benefits;
15	(3) Employment and training;
16	(4) Education;
17	(5) Family members and caregivers;
18	(6) Financial planning;
19	(7) Homelessness;
20	(8) Legal services;
21	(9) Long-term care;
22	(10) Mortuary affairs;
23	(11) Healthcare;
24	(12) Transitional assistance; and
25	(13) Transportation.
26	(c) The chairperson of the committee shall consult regularly with veterans and
27	community groups that represent diverse interests and viewpoints and the federal department of
28	veterans' affairs, to receive input on all matters pertaining to the preparation or implementation of
29	the veterans' services strategic plan.
30	(d) The "VSSP" shall:
31	(1) Be based upon comprehensive data gained through open and transparent engagement
32	of veterans' stakeholders;
33	(2) Produce veteran-centric policies and procedures informed by forward looking
34	planning;
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1	(3) Realistically assess resource adequacy and capabilities delivered;
2	(4) Ensure that existing resources are aligned to mission critical objectives;
3	(5) Complement, as well as leverage, existing U.S. Veterans' Administration programs
4	and best practices;
5	(6) Foster state, federal, and private partnerships that seamlessly deliver exceptional
6	services to the state's veteran population; and
7	(7) More effectively coordinate the delivery of veterans' services to all current and future
8	veterans in Rhode Island.
9	SECTION 5. Sections 30-24-1, 30-24-2, 30-24-5, 30-24-6, 30-24-9 and 30-24-10 of the
10	General Laws in Chapter 30-24 entitled "Rhode Island Veterans' Home" are hereby amended to
11	read as follows:
12	30-24-1. Management and control.
13	The management and control of the Rhode Island veterans' home, established in this state
14	for those who served in the army, navy, marine corps, coast guard, merchant marines, or air force
15	of the United States in any war or conflict and were honorably discharged therefrom, who shall
16	be in need of such care as is provided at the home, shall be the responsibility of the director of
17	human services secretary of the executive office of health and human services, or his or her
18	designee.
19	30-24-2. Bylaws and regulations -- Supervision by director.
20	(a) The director of human services secretary of the executive office of health and human
21	services, or his or her designee, shall have the general supervision over, and shall prescribe rules
22	for, the government and management of the Rhode Island veterans' home. He or she shall make
23	all needful bylaws and regulations governing the admission, maintenance, and discharge of the
24	residents of the home, which shall not be inconsistent with the spirit and intent of this chapter,
25	and generally may do all things necessary to successfully carry into effect the purposes of this
26	chapter.
27	(b) The director director of human services secretary of the executive office of health and
28	human services shall appoint and employ all subordinate officials and persons needed for the
29	proper management of the home.
30	30-24-6. Acceptance of gifts -- Veterans' home restricted account.
31	(a) The director of human services secretary of the executive office of health and human
32	services is hereby authorized and empowered to take and receive in the name of the state any
33	grant, devise, gift, or bequest of real or personal property that may be made for the use and
34	benefit of the Rhode Island veterans' home or the residents or purposes thereof. All money so
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1	received, and all money received under the provisions of §§ 30-24-9 and 30-24-10, shall be paid
2	over to the general treasurer and shall be kept by him or her as a restricted account to be known as
3	the "veterans' home restricted account". Use of the "veterans' home restricted account" funds may
4	only be made upon prior approval of the house of representatives' finance committee and senate
5	finance committee. The director, secretary of the executive office of health and human services
6	may sell and dispose of any real or personal property received under this section, and any
7	property received under § 30-24-9, and the proceeds of the sale shall be paid over to the general
8	treasurer to be made a part of the restricted account. The restricted account shall be used for the
9	improvement of social, recreational, and educational programs, including the purchase of
10	educational and recreational supplies and equipment for the welfare of members and for
11	operational expenses and capital improvements at the veterans' home and veterans' cemetery, as
12	deemed necessary by the director of human services secretary of the executive office of health
13	and human services.
14	(b) [Deleted by P.L. 1999, ch. 11, section 5.]
15	(c) Notwithstanding the provisions of subsection (a) of this section, there is hereby
16	established a restricted receipt account within the general fund of the state for the sole purpose of
17	the collection and disbursement of any grant, devise, gift, or bequest of real or personal property
18	that may be made for the use and benefit of the design, construction, and furnishing of a new
19	Rhode Island veterans home in Bristol. This account shall be known as "donations -- new
20	veterans' home construction".
21	30-24-9. Property of deceased residents.
22	All goods, chattels, property, money, and effects of a deceased resident of the Rhode
23	Island veterans' home that have not been disposed of by him or her by a completed inter vivos
24	conveyance or gift, or by a valid will, after payment therefrom of the funeral expenses, which
25	shall not exceed ten thousand dollars ($10,000), and after payment therefrom of the reasonable
26	debts and expenses of the deceased resident to be determined by rules and regulations as shall be
27	adopted by the director, shall upon his or her decease become the property of the state, and shall
28	be applied by the director of human services secretary of the executive office of health and human
29	services, or his or her designee, to the uses and purposes of the veterans' restricted account;
30	provided, however, that the director may, in his or her discretion, deliver to any surviving relative
31	of the deceased resident any of the property or effects as may serve as a memento of the deceased
32	resident. For purposes of this section, the provisions of chapter 24 of title 33 shall be applicable.
33	30-24-10. Admissible to home -- Fees.
34	(a) Any person who has served in the army, navy, marine corps, coast guard, or air force
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1	of the United States for a period of ninety (90) days or more and that period began or ended
2	during any foreign war in which the United States shall have been engaged or in any expedition
3	or campaign for which the United States government issues a campaign medal, and who was
4	honorably discharged from it, and who shall be deemed to be in need of care provided at the
5	Rhode Island veterans' home, may be admitted to that facility subject to such rules and
6	regulations as shall be adopted by the director of human services secretary of the executive office
7	of health and human services to govern the admission of applicants to the facility. Any person
8	who has served in the armed forces of the United States designated herein and otherwise
9	qualified, who has served less than the ninety-day (90) period described in this section, and who
10	was honorably discharged from service, and who, as a result of the service, acquired a service-
11	connected disability or disease, may be admitted. No person shall be admitted to the facility
12	unless the person has been accredited to the enlistment or induction quota of the state or has
13	resided in the state for at least two (2) consecutive years next prior to the date of the application
14	for admission to the facility.
15	(b)(1) The director secretary of the executive office of health and human services shall, at
16	the end of each fiscal year, determine the net, per-diem expenses of maintenance of residents in
17	the facility and shall assess against each resident who has "net income", as defined in this section,
18	a fee equal to eighty percent (80%) of the resident's net income, provided that fee shall not exceed
19	the actual cost of care and maintenance for the resident; and provided that an amount equal to
20	twenty percent (20%) of the maintenance fee assessed shall be allocated to, and deposited in, the
21	veterans' restricted account. For the purposes of this section, "net income" is defined as gross
22	income minus applicable federal and state taxes and minus:
23	(i) An amount equal to one hundred fifty dollars ($150) per month of residency and fifty
24	percent (50%) of any sum received due to wounds incurred under battle conditions for which the
25	resident received the purple heart; and
26	(ii) The amount paid by a resident for the support and maintenance of his or her spouse,
27	parent(s), minor child(ren), or child(ren) who is/are blind or permanently and totally disabled as
28	defined in title XVI of the Federal Social Security Act, 42 U.S.C. §§ 1381 -- 1383d, subject to a
29	maximum amount to be determined by rules and regulations as shall be adopted by the director.
30	(2) The fees shall be paid monthly to the home and any failure to make payment when
31	due shall be cause for dismissal from the facility. Prior to dismissal, the resident shall be afforded
32	administrative due process.
33	(c) Admissions to the veterans' home shall be made without discrimination as to race,
34	color, national origin, religion, sex, disability, marital status, age, sexual orientation, gender
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1	identity or expression, assets, or income.
2	(d) Laundry services shall be provided to the residents of the Rhode Island veterans'
3	home at no charge to the residents, with such funds to cover the cost of providing laundry
4	services for residents of the Rhode Island veterans' home derived from monies appropriated to the
5	department of human services executive office of health and human services.
6	SECTION 6. Sections 30-25-8, 30-25-9, 30-25-10, 30-25-11, 30-25-12, 30-25-13 and 30-
7	25-14 of the General Laws in Chapter 30-25 entitled "Burial of Veterans" are hereby amended to
8	read as follows:
9	30-25-8. Maintenance of north cemetery.
10	The director of human services secretary of the executive office of health and human
11	services shall be custodian of the Rhode Island soldiers' burial lots, and the monument and grave
12	markers thereon, located in the north cemetery in the town of Bristol. He or she shall, from time
13	to time, cause such work to be done as may be necessary in keeping the lots, monuments, and
14	markers in good condition and repair.
15	30-25-9. Expenses of north cemetery.
16	The director of human services secretary of the executive office of health and human
17	services, is authorized to make such expenditures as may be necessary in carrying out the
18	purposes of § 30-25-8, and the state controller is hereby authorized and directed upon receipt of
19	proper vouchers approved by the state director of human services secretary of the executive
20	office of health and human services, to draw orders upon the general treasurer for the payment of
21	such sums as may be required, from the funds under the control of the director of human services
22	secretary of the executive office of health and human services, known as the veterans' home,
23	restricted account.
24	30-25-10. Care of neglected graves.
25	The director of human services secretary of the executive office of health and human
26	services is authorized and empowered to undertake the care of any grave of any soldier or sailor
27	who fought in the war of the revolution, or who at any time served the United States in any war,
28	when the grave appears to have been neglected or abandoned. For that purpose, the director
29	secretary, and the agents or employees of the division office, when duly authorized thereunto by
30	the director secretary, may enter into and upon any public or private cemetery or burial place to
31	clear any grave of grass, weeds, brush, briars, or rubbish; to erect, replace, repair, or renovate
32	fences, memorial stones, or markers; and to perform the other tasks as may be necessary to
33	restore and maintain the grave and its surroundings in a decent and orderly condition.
34	30-25-11. Consent of custodian of neglected grave.
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1	When any cemetery or burial place containing a neglected grave is found by the director
2	of human services secretary of the executive office of health and human services, or the agents or
3	employees of the division division executive office, to be under the custody or control of some
4	private owner or public authority, then the director secretary shall obtain permission, in writing,
5	from the person or persons having custody or control before entering into and upon the cemetery
6	or burial place; provided, that if no person or persons can be found having the custody or control
7	of the cemetery or burial place, the director secretary shall assume the right of entry and shall
8	perform the duties specified in § 30-25-10, without further notice.
9	30-25-12. Appropriations for care of graves.
10	The general assembly shall, from time to time, appropriate such sums as it may deem
11	necessary to be expended by the director of human services secretary of the executive office of
12	health and human services in carrying out the purposes of §§ 30-25-10 and 30-25-11, and the
13	state controller is hereby authorized and directed, upon the receipt of the proper vouchers
14	approved by the director director secretary, to draw orders upon the general treasurer for the
15	payment of such sums as may be required, within the amount appropriated therefor.
16	30-25-13. Acceptance and administration of gifts.
17	The director of human services secretary of the executive office of health and humans
18	services may accept in the name of the state, and may administer, any devise, bequest, or gift that
19	is to be expended for the general purposes of this chapter. All sums received by devise, bequest,
20	or gift from any person or corporation shall be deposited with the general treasurer, and by him or
21	her kept in a special fund, to be known as "the veterans' cemetery fund", and held subject to the
22	order of the director.
23	30-25-14. Rhode Island veterans' memorial cemetery.
24	(a) The Rhode Island veterans' memorial cemetery, located on the grounds of the Joseph
25	H. Ladd school in the town of Exeter, shall be under the management and control of the director
26	of the department of human services director of the department of human services secretary of the
27	executive office of health and human services. The director of the department of human services
28	secretary of the executive office of health and human services shall appoint an administrator for
29	the Rhode Island veterans' memorial cemetery who shall be an honorably discharged veteran of
30	the United States Armed Forces and shall have the general supervision over, and shall prescribe
31	rules for, the government and management of the cemetery. He or she shall make all needful rules
32	and regulations governing the operation of the cemetery and generally may do all things
33	necessary to ensure the successful operation thereof. The director secretary shall promulgate rules
34	and regulations, not inconsistent with the provisions of 38 U.S.C. § 2402, to govern the eligibility
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1	for burial in the Rhode Island veterans' memorial cemetery. In addition to all persons eligible for
2	burial pursuant to rules and regulations established by the director, any person who served in the
3	army, navy, air force, or marine corps of the United States for a period of not less than two (2)
4	years and whose service was terminated honorably, shall be eligible for burial in the Rhode Island
5	veterans' memorial cemetery. The director secretary shall appoint and employ all subordinate
6	officials and persons needed for the proper management of the cemetery. National guard
7	members who are killed in the line of duty or who are honorably discharged after completion of
8	at least twenty (20) years' of service in the Rhode Island national guard and their spouse shall be
9	eligible for interment in the Rhode Island veterans' memorial cemetery. For the purpose of
10	computing service under this section, honorable service in the active forces or reserves shall be
11	considered toward the twenty (20) years of national guard service. The general assembly shall
12	make an annual appropriation to the department of human services executive office of health and
13	human services to provide for the operation and maintenance for the cemetery. The director
14	secretary shall charge and collect a grave liner fee per interment of the eligible spouse and/or
15	eligible dependents of the qualified veteran equal to the department's cost for the grave liner.
16	(b) No domestic animal shall be allowed on the grounds of the Rhode Island veterans'
17	memorial cemetery, whether at large or under restraint, except for seeing eye guide dogs, hearing
18	ear signal dogs or any other service animal, as required by federal law or any personal assistance
19	animal, as required by chapter 9.1 of title 40. Any person who violates the provisions of this
20	section shall be subject to a fine of not less than five hundred dollars ($500).
21	(c) The state of Rhode Island office of veterans' affairs shall bear the cost of all tolls
22	incurred by any motor vehicles that are part of a veteran's funeral procession, originating from
23	Aquidneck Island ending at the veterans' memorial cemetery, for burial or internment. The
24	executive director of the turnpike and bridge authority shall assist in the administration and
25	coordination of this toll reimbursement program.
26	SECTION 7. Section 30-27-1 of the General Laws in Chapter 30-27 entitled "Veterans'
27	Organizations" is hereby repealed as follows.
28	30-27-1. Appropriations for annual encampment of Spanish war veterans.
29	The general assembly shall annually appropriate such sum as it may deem necessary to
30	defray the expenses of the annual encampment of the united spanish war veterans, department of
31	Rhode Island, to be expended under the direction of the department of human services or of any
32	other department as the general assembly shall indicate and direct at any future time; and the
33	controller is hereby authorized and directed to draw orders upon the general treasurer for the
34	payment of that sum, or so much thereof as may be necessary from time to time, upon the receipt
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1	by the controller of proper vouchers approved by the director of human services, or such other
2	approving authority as the general assembly may direct.
3	SECTION 8. Section 30-28-10 of the General Laws in Chapter 30-28 entitled
4	"Monuments and Memorials" is hereby amended to read as follows:
5	30-28-10. Rhode Island veterans memorial chapel.
6	The Rhode Island Veterans Memorial Chapel Building Fund, Inc. is hereby authorized to
7	construct a nonsectarian memorial chapel in the Rhode Island veterans cemetery located in
8	Exeter, Rhode Island; provided, however, that the plans for the memorial chapel shall be
9	approved by the director of administration; provided further that the Rhode Island Veterans
10	Memorial Chapel Building Fund, Inc. grant to the state all of its right, title, and interest in the
11	chapel; and provided further that the management and control of the chapel shall be with the
12	director of the department of human services secretary of the executive office of health and
13	human services.
14	SECTION 9. Sections 31-38-7 and 31-38-18 of the General Laws in Chapter 31-38
15	entitled "Inspection of Motor Vehicles" are hereby amended to read as follows:
16	31-38-7. Operation of official stations.
17	(a) No permit for an official station shall be assigned or transferred or used at any
18	location other than designated in it, and the permit shall be posted in a conspicuous place at the
19	designated location.
20	(b) The state certified person operating an official inspection station shall issue a
21	certificate of inspection and approval upon an official form to the owner of a vehicle upon
22	inspection of the vehicle and determining that its equipment required under the provisions of this
23	chapter is in good condition and proper adjustment, otherwise, no certificate shall be issued. A
24	record and report shall be made of every inspection and every certificate issued. The records shall
25	be kept available for review by the motor vehicle inspection station commission or those
26	employees of the department of revenue that the director may designate.
27	(c) The following fees shall be charged for inspection and issuance of certificate of
28	inspection and approval:
29	(1) For every vehicle with a registered gross weight of not more than eight thousand five
30	hundred pounds (8,500 lbs.), the fee shall be included with the fee charged pursuant to § 31-47.1-
31	11;
32	(2) For every vehicle of a registered gross weight of more than eight thousand five
33	hundred pounds (8,500 lbs.) or more, except trailers, fifteen dollars ($15.00);
34	(3) For every motorcycle and electrically powered vehicle, eleven dollars ($11.00);
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1	(4) For every trailer or semi-trailer with a registered gross weight of more than one
2	thousand pounds (1,000 lbs.), eleven dollars ($11.00); and
3	(5) Provided that for the inspection of vehicles used for the transportation of persons for
4	hire, as provided in § 31-22-12, and subject to an inspection pursuant to chapter 47.1 of this title,
5	the fee shall be included with the fee charged pursuant to § 31-47.1-11.
6	(d) The director of the department of revenue may establish a state inspection facility at
7	which any motor vehicle may be reinspected at no cost to the owner. The state inspection facility
8	may inspect all public conveyance vehicles or these inspections may be otherwise provided for by
9	the director, or any other vehicles which in the opinion of the director of revenue, or his or her
10	designee, require specific testing to ensure for the health and safety of the general public.
11	(e) Any other inspections or activities which may be required to be performed at a state
12	inspection facility may be performed at any official inspection station if determined by the
13	director.
14	31-38-18. Conduct of hearings.
15	The director of the department of revenuecommission shall hold and conduct hearings in
16	accordance with § 31-38-17. These hearings shall be governed by rules to be adopted by the
17	director of the department of revenuecommission, and the director of the department of
18	revenuecommission shall not be bound by technical rules of evidence. The director of the
19	department of revenuecommission may subpoena witnesses and require the producing of
20	documental evidence, and shall sit as an impartial independent body in order to make decisions
21	affecting the interest of the motor vehicle inspection owner and/or operator. The concurrence of a
22	majority of the members present and voting of the commission is required for a decision.
23	SECTION 10. Sections 31-38-15 and 31-38-16 of the General Laws in Chapter 31-38
24	entitled "Inspection of Motor Vehicles" are hereby repealed.
25	31-38-15. Motor vehicle inspection commission.
26	(a) Within the department of revenue there shall be a motor vehicle inspection
27	commission, referred to in this chapter as the "commission", which shall function as a unit in the
28	department. The commission shall consist of seven (7) members who shall be appointed by the
29	governor, with the advice and consent of the senate. In making said appointments, the governor
30	shall give due consideration to including in the commission's membership one or more garage
31	keeper(s) and/or inspection station owner(s).
32	(b) The tenure of all members of the commission as of the effective date of this act
33	[March 29, 2006] shall expire on the effective date of this act [March 29, 2006], and the governor
34	shall nominate seven (7) new members as follows:
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1	(1) The governor shall appoint seven (7) members of the commission; three (3) of whom
2	shall serve initial terms of three (3) years; two (2) of whom shall serve an initial term of two (2)
3	years; and two (2) of whom shall serve an initial term of one year.
4	(2) Thereafter, all members of the commission shall be appointed to serve three (3) year
5	terms.
6	(c) The governor shall designate one member of the commission to serve as chairperson.
7	The commission may elect from among its members such other officers as they deem necessary.
8	(d) No person shall be eligible for appointment to the commission after the effective date
9	of this act [March 29, 2006] unless he or she is a resident of this state.
10	(e) Four (4) members of the commission shall constitute a quorum.
11	(f) Members of the commission shall be removable by the governor pursuant to the
12	provisions of § 36-1-7 of the general laws and for cause only, and removal solely for partisan or
13	personal reasons unrelated to capacity of fitness for the office shall be unlawful.
14	(g) Within ninety (90) days after the end of each fiscal year, the commission shall
15	approve and submit an annual report to the governor, the speaker of the house of representatives,
16	the president of the senate, and the secretary of state of its activities during that fiscal year. The
17	report shall provide: an operating statement summarizing meetings or hearings held, including
18	meeting minutes, subjects addressed, decisions rendered, licenses considered and their
19	disposition, rules or regulations promulgated, studies conducted, policies and plans developed,
20	approved or modified and programs administered or initiated; a consolidated financial statement
21	of all funds received and expended including the source of the funds, a listing of any staff
22	supported by these funds and a summary of any clerical, administrative or technical support
23	received; a summary of performance during the previous fiscal year including accomplishments,
24	shortcomings and remedies; a synopsis of hearings, complaints, suspensions or other legal matters
25	related to the authority of the commission; a summary of any training courses held pursuant to the
26	provisions of this section; a briefing on anticipated activities in the upcoming fiscal year; and
27	findings and recommendations for improvements. The report shall be posted electronically on the
28	general assembly and secretary of state's websites as prescribed in § 42-20-8.2. The director of
29	the department of revenue shall be responsible for the enforcement of the provisions of this
30	subsection.
31	(h) To conduct a training course for newly appointed and qualified members within six
32	(6) months of their qualification or designation. The course shall be developed by the chair of the
33	commission, approved by the commission, and conducted by the chair of the commission. The
34	commission may approve the use of any commission or staff members or other individuals to
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1	assist with training. The training course shall include instruction in the following areas: the
2	provisions of chapters 42-46, 36-14, and 38-2; and the commission's rules and regulations. The
3	director of the department of revenue shall, within ninety (90) days of the effective date of this act
4	[March 29, 2006], prepare and disseminate training material relating to the provisions of chapters
5	42-46, 36-14, and 38-2.
6	31-38-16. Meetings -- Compensation.
7	The commission shall meet at least once a month to consider any matters that may be
8	proper before it. The members of the commission shall receive no compensation for their
9	services, but each member shall be reimbursed for traveling or other expenses that are actually
10	incurred in the discharge of the member's duties.
11	SECTION 11. Sections 35-1.1-1 through 35-1.1-5 of the General Laws in Chapter 35-1.1
12	entitled "Office of Management and Budget" are hereby amended to read as follows:
13	35-1.1-1. Statement of intent.
14	The purpose of this chapter is to establish a comprehensive public finance and
15	management system for the State of Rhode Island that manages a data-driven budget process,
16	monitors state departments' and agencies' performance, maximizes the application for and use of
17	federal grants improves the regulatory climate and ensures accountability and transparency
18	regarding the use of public funds and regulatory impact.
19	35-1.1-2. Establishment of the office of management and budget.
20	There is hereby established within the department of administration an office of
21	management and budget. This office shall serve as the principal agency of the executive branch of
22	state government for managing budgetary functions, regulatory review, performance
23	management, internal audit, and federal grants management. In this capacity, the office shall:
24	(1) Establish an in-depth form of data analysis within and between departments and
25	agencies, creating a more informed process for resource allocation to best meet the needs of
26	Rhode Island citizens;
27	(2) Identify federal grant funding opportunities to support the governor's and general
28	assembly's major policy initiatives and provide technical assistance with the application process
29	and post-award grants management;
30	(2) Analyze the impact of proposed regulations on the public and state as required by
31	chapters 42-64.13 and 42-35;
32	(3) Analyze federal budgetary issues and report on potential impacts to the state;
33	(4) Coordinate the budget functions of the state with performance management
34	objectives;
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1	(5) Maximize efficiencies in departments, agencies, advisory councils, and
2	instrumentalities of the state by improving processes and prioritizing programs;
3	(6) Be responsible for the internal audit function of state government and conduct audits
4	of any state department, state agency, or private entity that is a recipient of state funding or state
5	grants; provide management advisory and consulting services; or conduct investigations relative
6	to the financial affairs or the efficiency of management, or both, of any state department or
7	agency.
8	35-1.1-3. Director of management and budget -- Appointment and responsibilities.
9	(a) Within the department of administration there shall be a director of management and
10	budget who shall be appointed by the director of administration with the approval of the
11	governor. The director shall be responsible to the governor and director of administration for
12	supervising the office of management and budget and for managing and providing strategic
13	leadership and direction to the budget officer, the performance management office, and the
14	federal grants management office.
15	(b) The director of management and budget shall be responsible to:
16	(1) Oversee, coordinate, and manage the functions of the budget officer as set forth by
17	chapter 3 of this title; program performance management as set forth by § 35-3-24.1; approval of
18	agreements with federal agencies defined by § 35-3-25; and budgeting, appropriation, and receipt
19	of federal monies as set forth by chapter 41 of title 42;
20	(2) Oversee the director of regulatory reform as set forth by § 42-64.13-6;
21	(2) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse
22	for the application of federal grants;
23	(3) Maximize the indirect cost recoveries by state agencies set forth by § 35-4-23.1; and
24	(4) Undertake a comprehensive review and inventory of all reports filed by the executive
25	office and agencies of the state with the general assembly. The inventory should include, but not
26	be limited to: the type, title, and summary of reports; the author(s) of the reports; the specific
27	audience of the reports; and a schedule of the reports' release. The inventory shall be presented to
28	the general assembly as part of the budget submission on a yearly basis. The office of
29	management and budget shall also make recommendations to consolidate, modernize the reports,
30	and to make recommendations for elimination or expansion of each report.
31	35-1.1-4. Offices and functions assigned to the office of management and budget --
32	Powers and duties.
33	(a) The offices assigned to the office of management and budget include the budget
34	office, the office of regulatory reform, the performance management office, and the office of
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1	internal audit, and the federal grants management office.
2	(b) The offices assigned to the office of management and budget shall:
3	(1) Exercise their respective powers and duties in accordance with their statutory
4	authority and the general policy established by the governor or by the director acting on behalf of
5	the governor or in accordance with the powers and authorities conferred upon the director by this
6	chapter;
7	(2) Provide such assistance or resources as may be requested or required by the governor
8	and/or the director;
9	(3) Provide such records and information as may be requested or required by the
10	governor and/or the director, to the extent allowed under the provisions of any applicable general
11	or public law, regulation, or agreement relating to the confidentiality, privacy, or disclosure of
12	such records or information; and
13	(c) Except as provided herein, no provision of this chapter or application thereof shall be
14	construed to limit or otherwise restrict the budget officer from fulfilling any statutory requirement
15	or complying with any valid rule or regulation.
16	35-1.1-5. Federal grants management.
17	(a) The office of management and budget controller shall be responsible for managing
18	federal grant applications, providing administrative assistance to agencies regarding reporting
19	requirements, providing technical assistance and approving agreements with federal agencies
20	pursuant to § 35-1-1. The director controller shall:
21	(1) Establish state goals and objectives for maximizing the utilization of federal aid
22	programs;
23	(2) Ensure that the state establishes and maintains statewide federally-mandated grants
24	management processes and procedures as mandated by the federal Office of Management and
25	Budget;
26	(3) Promulgate procedures and guidelines for all state departments, agencies, advisory
27	councils, instrumentalities of the state and public higher education institutions covering
28	applications for federal grants;
29	(4) Require, upon request, any state department, agency, advisory council,
30	instrumentality of the state or public higher education institution receiving a grant of money from
31	the federal government to submit a report to the director controller of expenditures and program
32	measures for the fiscal period in question;
33	(5) Ensure state departments and agencies adhere to the requirements of § 42-41-5
34	regarding Legislative appropriation authority and delegation thereof;
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1	(6) Assist the state controller in managing and overseeing overseeingManage and
2	oversee the disbursements of federal funds in accordance with § 35-6-42;
3	(7) Assist the state controller in the preparation of Prepare the statewide cost allocation
4	plan and serve as the monitoring agency to ensure that state departments and agencies are
5	working within the guidelines contained in the plan; and,
6	(8) Provide technical assistance to agencies to ensure resolution and closure of all single
7	state audit findings and recommendations made by the Auditor General related to Federal
8	funding.
9	(b) The office of management and budget Accounts and control shall serve as the Sstate
10	Cclearinghouse for purposes of coordinating federal grants, aid and assistance applied for and/or
11	received by any state department, agency, advisory council or instrumentality of the state. Any
12	state department, agency, advisory council, or instrumentality of the state applying for federal
13	funds, aids, loans, or grants shall file a summary notification of the intended application with the
14	director controller.
15	(1) When as a condition to receiving federal funds, the state is required to match the
16	federal funds, a statement shall be filed with the notice of intent or summary of the application
17	stating:
18	(i) The amount and source of state funds needed for matching purposes;
19	(ii) The length of time the matching funds shall be required;
20	(iii) The growth of the program;
21	(iv) How the program will be evaluated;
22	(v) What action will be necessary should the federal funds be canceled, curtailed, or
23	restricted; and,
24	(vi) Any other financial and program management data required by the office or by law.
25	(2) Except as otherwise required, any application submitted by an executive agency for
26	federal funds, aids, loans, or grants which will require state matching or replacement funds at the
27	time of application or at any time in the future, must be approved by the director of the office of
28	management and budget or their designated agents prior to its filing with the appropriate federal
29	agency. Any application submitted by an executive agency for federal funds, aids, loans, or grants
30	which will require state matching or replacement funds at the time of application or at any time in
31	the future, when funds have not been appropriated for that express purpose, must be approved by
32	the General Assembly in accordance with § 42-41-5. When the general assembly is not in session,
33	the application shall be reported to and reviewed by the Director pursuant to rules and regulations
34	promulgated by the Director.
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1	(3) When any federal funds, aids, loans, or grants are received by any state department,
2	agency, advisory council or instrumentality of the state, a report of the amount of funds received
3	shall be filed with the office; and this report shall specify the amount of funds which would
4	reimburse an agency for indirect costs, as provided for under federal OMB Circular A-
5	87requirements.
6	(4) The director controller may refuse to issue approval for the disbursement of any state
7	or federal funds from the State Treasury as the result of any application which is not approved as
8	provided by this section, or in regard to which the statement or reports required by this section
9	were not filed.
10	(5) The director controller shall be responsible for the orderly administration of this
11	section and for issuing the appropriate guidelines and regulations from each source of funds used.
12	SECTION 12. Section 35-6-1 of the General Laws in Chapter 35-6 entitled "Accounts
13	and Control" is hereby amended to read as follows:
14	35-6-1. Controller -- Duties in general.
15	(a) Within the department of administration there shall be a controller who shall be
16	appointed by the director of administration pursuant to chapter 4 of title 36. The controller shall
17	be responsible for accounting and expenditure control and shall be required to:
18	(1) Administer a comprehensive accounting and recording system which will classify the
19	transactions of the state departments and agencies in accordance with the budget plan;
20	(2) Maintain control accounts for all supplies, materials, and equipment for all
21	departments and agencies except as otherwise provided by law;
22	(3) Prescribe a financial, accounting, and cost accounting system for state departments
23	and agencies;
24	(4) Identify federal grant funding opportunities to support the governor's and general
25	assembly's major policy initiatives and provide technical assistance with the application process
26	and post-award grants management;
27	(5) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse
28	for the application of federal grants;
29	(4)(6) Preaudit all state receipts and expenditures;
30	(5)(7) Prepare financial statements required by the several departments and agencies, by
31	the governor, or by the general assembly;
32	(6) (8) Approve the orders drawn on the general treasurer; provided, that the preaudit of
33	all expenditures under authority of the legislative department and the judicial department by the
34	state controller shall be purely ministerial, concerned only with the legality of the expenditure and
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1	availability of the funds, and in no event shall the state controller interpose his or her judgment
2	regarding the wisdom or expediency of any item or items of expenditure;
3	(7)(9) Prepare and timely file, on behalf of the state, any and all reports required by the
4	United States, including, but not limited to, the internal revenue service, or required by any
5	department or agency of the state, with respect to the state payroll; and
6	(8)(10) Prepare a preliminary closing statement for each fiscal year. The controller shall
7	forward the statement to the chairpersons of the house finance committee and the senate finance
8	committee, with copies to the house fiscal advisor and the senate fiscal and policy advisor, by
9	September 1 following the fiscal year ending the prior June 30 or thirty (30) days after enactment
10	of the appropriations act, whichever is later. The report shall include but is not limited to:
11	(i) A report of all revenues received by the state in the completed fiscal year, together
12	with the estimates adopted for that year as contained in the final enacted budget, and together
13	with all deviations between estimated revenues and actual collections. The report shall also
14	include cash collections and accrual adjustments;
15	(ii) A comparison of actual expenditures with each of the actual appropriations, including
16	supplemental appropriations and other adjustments provided for in the Rhode Island General
17	Laws;
18	(iii) A statement of the opening and closing surplus in the general revenue account; and
19	(iv) A statement of the opening surplus, activity, and closing surplus in the state budget
20	reserve and cash stabilization account and the state bond capital fund.
21	(b) The controller shall provide supporting information on revenues, expenditures, capital
22	projects, and debt service upon request of the house finance committee chairperson, senate
23	finance committee chairperson, house fiscal advisor, or senate fiscal and policy advisor.
24	(c) Upon issuance of the audited annual financial statement, the controller shall provide a
25	report of the differences between the preliminary financial report and the final report as contained
26	in the audited annual financial statement.
27	(d) The controller shall create a special fund not part of the general fund and shall deposit
28	amounts equivalent to all deferred contributions under this act into that fund. Any amounts
29	remaining in the fund on June 15, 2010, shall be transferred to the general treasurer who shall
30	transfer such amounts into the retirement system as appropriate.
31	(e) The controller shall implement a direct deposit payroll system for state employees.
32	(i) There shall be no service charge of any type paid by the state employee at any time
33	which shall decrease the net amount of the employee's salary deposited to the financial institution
34	of the personal choice of the employee as a result of the use of direct deposit.
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1	(ii) Employees hired after September 30, 2014, shall participate in the direct deposit
2	system. At the time the employee is hired, the employee shall identify a financial institution that
3	will serve as a personal depository agent for the employee.
4	(iii) No later than June 30, 2016, each employee hired before September 30, 2014, who is
5	not a participant in the direct deposit system, shall identify a financial institution that will serve as
6	a personal depository agent for the employee.
7	(iv) The controller shall promulgate rules and regulations as necessary for
8	implementation and administration of the direct deposit system, which shall include limited
9	exceptions to required participation.
10	SECTION 13. Chapter 39-3 of the General Laws entitled "Regulatory Powers of
11	Administration" is hereby amended by adding thereto the following section:
12	39-3-45. Transfer of powers, functions and resources from the water resources
13	board. (a) There are hereby transferred to the division of public utilities and carriers those
14	powers and duties formerly administered by the department of administration and/or the
15	employees of the water resources board as provided for in chapter 46-15 (“Water Resources
16	Management”) through 46-15.8 (“Water Use and Efficiency Act”), inclusive, and any other
17	applicable provisions of the general laws.
18	(b) Unless otherwise specified by statute, all resources of the water resources board,
19	including, but not limited to, property, employees and accounts, are hereby transferred to the
20	division of public utilities and carriers effective July 1, 2019.
21	(c) As part of the above transfer, except for the general manager, all employees of the
22	water resources board currently subject to the provisions of chapter 4 of title 36 shall continue to
23	be subject to those provisions.
24	SECTION 14. Sections 40-1-4 and 40-1-6 of the General Laws in Chapter 40-1 entitled
25	"Department of Human Services" are hereby amended to read as follows:
26	40-1-4. Organization of department.
27	All functions, services, and duties of the department of human services shall be organized
28	by the director with the approval of the governor as to:
29	(1) Community services to include generally and specifically the administration of all
30	forms of human services excluding child welfare services, which are the responsibility of the
31	department of children, youth, and families.
32	(2) Management services to include generally and specifically all central management,
33	financial, forms of relief, and other services concerned with the business and servicing operations
34	of the department.
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1	(3) Veterans' affairs to include all forms of services to veterans of the armed forces. There
2	shall be within the department of human services a division of veterans' affairs.
3	40-1-6. Officers required to be veterans.
4	The respective officers appointed by the director of human services secretary of the
5	executive office of health and human services to be in charge of the state's administration of
6	veterans' relief, of graves' registration, and the commandant and the assistant commandant of the
7	Rhode Island veterans' home, in addition to any other qualifications required for their respective
8	positions as already provided in law, shall each be an honorably discharged war veteran of any
9	war in which the United States has been engaged.
10	SECTION 15. Sections 42-6-1, 42-6-2 and 42-6-3 of the General Laws in Chapter 42-6
11	entitled "Departments of State Government" are hereby amended to read as follows:
12	42-6-1. Enumeration of departments.
13	All the administrative powers and duties heretofore vested by law in the several state
14	departments, boards, divisions, bureaus, commissions, and other agencies shall be vested in the
15	following departments and other agencies which are specified in this title:
16	(a) Executive department (chapter 7 of this title);
17	(b) Department of state (chapter 8 of this title);
18	(c) Department of the attorney general (chapter 9 of this title);
19	(d) Treasury department (chapter 10 of this title);
20	(e) Department of administration (chapter 11 of this title);
21	(f) Department of business regulation (chapter 14 of this title);
22	(g) Department of children, youth and families (chapter 72 of this title);
23	(h) Department of corrections (chapter 56 of this title);
24	(i) Department of elderly affairs (chapter 66 of this title);
25	(ji) Department of elementary and secondary education (chapter 60 of title 16);
26	(kj) Department of environmental management (chapter 17.1 of this title);
27	(lk) Department of health (chapter 18 of this title);
28	(ml) Board of governors for higher education (chapter 59 of title 16);
29	(nm) Department of labor and training (chapter 16.1 of this title);
30	(on) Department of behavioral healthcare, developmental disabilities and hospitals
31	(chapter 12.1 of this title);
32	(po) Department of human services (chapter 12 of this title);
33	(qp) Department of transportation (chapter 13 of this title);
34	(rq) Public utilities commission (chapter 14.3 of this title);
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1	(sr) Department of revenue (chapter 142 of title 42);
2	(ts) Department of public safety (chapter 7.3 of this title).
3	42-6-2. Heads of departments.
4	The governor, secretary of state, attorney general, and general treasurer, hereinafter
5	called general officers, shall each be in charge of a department. There shall also be a director of
6	administration, a director of revenue, a director of public safety, a director of human services, a
7	director of behavioral healthcare, developmental disabilities and hospitals, a director of
8	transportation, a director of business regulation, a director of labor and training, a director of
9	environmental management, a director for children, youth and families, a director of elderly
10	affairs, and a director of corrections. Each director shall hold office at the pleasure of the
11	governor and he or she shall serve until his or her successor is duly appointed and qualified unless
12	the director is removed from office by special order of the governor.
13	42-6-3. Appointment of directors.
14	(a) At the January session following his or her election to office, the governor shall
15	appoint a director of administration, a director of revenue, a director of public safety, a director of
16	human services, a director of behavioral healthcare, developmental disabilities and hospitals, a
17	director of transportation, a director of business regulation, a director of labor and training, a
18	director of environmental management, a director for children, youth and families, a director of
19	elderly affairs, and a director of corrections. The governor shall, in all cases of appointment of a
20	director while the senate is in session, notify the senate of his or her appointment and the senate
21	shall, within sixty (60) legislative days after receipt of the notice, act upon the appointment. If the
22	senate shall, within sixty (60) legislative days, vote to disapprove the appointment it shall so
23	notify the governor, who shall forthwith appoint and notify the senate of the appointment of a
24	different person as director and so on in like manner until the senate shall fail to so vote
25	disapproval of the governor's appointment. If the senate shall fail, for sixty (60) legislative days
26	next after notice, to act upon any appointment of which it has been notified by the governor, the
27	person so appointed shall be the director. The governor may withdraw any appointment of which
28	he or she has given notice to the senate, at any time within sixty (60) legislative days thereafter
29	and before action has been taken thereon by the senate.
30	(b) Except as expressly provided in § 42-6-9, no director of any department shall be
31	appointed or employed pursuant to any contract of employment for a period of time greater than
32	the remainder of the governor's current term of office. Any contract entered into in violation of
33	this section after July 1, 1994 is hereby declared null and void.
34	SECTION 16. Sections 42-7.2-2, 42-7.2-4, 42-7.2-5, 42-7.2-6, 42-7.2-6.1, 42-7.2-9, 42-
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1	7.2-15 and 42-7.2-17 of the General Laws in Chapter 42-7.2 entitled "Office of Health and
2	Human Services" are hereby amended to read as follows:
3	42-7.2-2. Executive office of health and human services.
4	There is hereby established within the executive branch of state government an executive
5	office of health and human services to serve as the principal agency of the executive branch of
6	state government for managing the departments of children, youth and families, health, human
7	services, and behavioral healthcare, developmental disabilities and hospitals and offices of elder
8	and veterans’ affairs. In this capacity, the office shall:
9	(a) Lead the state's four (4) health and human services departments and the offices of
10	elder and veterans’ affairs in order to:
11	(1) Improve the economy, efficiency, coordination, and quality of health and human
12	services policy and planning, budgeting, and financing.
13	(2) Design strategies and implement best practices that foster service access, consumer
14	safety, and positive outcomes.
15	(3) Maximize and leverage funds from all available public and private sources, including
16	federal financial participation, grants, and awards.
17	(4) Increase public confidence by conducting independent reviews of health and human
18	services issues in order to promote accountability and coordination across departments.
19	(5) Ensure that state health and human services policies and programs are responsive to
20	changing consumer needs and to the network of community providers that deliver assistive
21	services and supports on their behalf.
22	(6) Administer Rhode Island Medicaid in the capacity of the single state agency
23	authorized under title XIX of the U.S. Social Security Act, 42 U.S.C. § 1396a et seq., and
24	exercise such single state agency authority for such other federal and state programs as may be
25	designated by the governor. Except as provided for herein, nothing in this chapter shall be
26	construed as transferring to the secretary the powers, duties, or functions conferred upon the
27	departments or offices by Rhode Island general laws for the management and operations of
28	programs or services approved for federal financial participation under the authority of the
29	Medicaid state agency.
30	(7) To act in conjunction with the department of behavioral healthcare, developmental
31	disabilities and hospitals as the state's co-designated agency (42 U.S.C. § 300x-30(a)) for
32	administering federal aid and for the purposes of the calculation of expenditures relative to the
33	substance-abuse block grant and federal funding maintenance of effort.
34	42-7.2-4. Responsibilities of the secretary.
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1	(a) The secretary shall be responsible to the governor for supervising the executive office
2	of health and human services and for managing and providing strategic leadership and direction
3	to the four (4) departments and two (2) offices.
4	(b) Notwithstanding the provisions set forth in this chapter, the governor shall appoint the
5	directors of the departments within the executive office of health and human services. Directors
6	appointed to those departments shall continue to be subject to the advice and consent of the senate
7	and shall continue to hold office as set forth in §§ 42-6-1 et seq. and 42-72-1(c).
8	42-7.2-5. Duties of the secretary.
9	The secretary shall be subject to the direction and supervision of the governor for the
10	oversight, coordination and cohesive direction of state administered health and human services
11	and in ensuring the laws are faithfully executed, not withstanding any law to the contrary. In this
12	capacity, the Secretary of Health and Human Services shall be authorized to:
13	(1) Coordinate the administration and financing of health-care benefits, human services
14	and programs including those authorized by the state's Medicaid section 1115 demonstration
15	waiver and, as applicable, the Medicaid State Plan under Title XIX of the U.S. Social Security
16	Act. However, nothing in this section shall be construed as transferring to the secretary the
17	powers, duties or functions conferred upon the departments by Rhode Island public and general
18	laws for the administration of federal/state programs financed in whole or in part with Medicaid
19	funds or the administrative responsibility for the preparation and submission of any state plans,
20	state plan amendments, or authorized federal waiver applications, once approved by the secretary.
21	(2) Serve as the governor's chief advisor and liaison to federal policymakers on Medicaid
22	reform issues as well as the principal point of contact in the state on any such related matters.
23	(3)(a) Review and ensure the coordination of the state's Medicaid section 1115
24	demonstration waiver requests and renewals as well as any initiatives and proposals requiring
25	amendments to the Medicaid state plan or category two (II) or three (III) changes, as described in
26	the special terms and conditions of the state's Medicaid section 1115 demonstration waiver with
27	the potential to affect the scope, amount or duration of publicly-funded health-care services,
28	provider payments or reimbursements, or access to or the availability of benefits and services as
29	provided by Rhode Island general and public laws. The secretary shall consider whether any such
30	changes are legally and fiscally sound and consistent with the state's policy and budget priorities.
31	The secretary shall also assess whether a proposed change is capable of obtaining the necessary
32	approvals from federal officials and achieving the expected positive consumer outcomes.
33	Department and office directors shall, within the timelines specified, provide any information and
34	resources the secretary deems necessary in order to perform the reviews authorized in this
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1	section;
2	(b) Direct the development and implementation of any Medicaid policies, procedures, or
3	systems that may be required to assure successful operation of the state's health and human
4	services integrated eligibility system and coordination with HealthSource RI, the state's health
5	insurance marketplace.
6	(c) Beginning in 2015, conduct on a biennial basis a comprehensive review of the
7	Medicaid eligibility criteria for one or more of the populations covered under the state plan or a
8	waiver to ensure consistency with federal and state laws and policies, coordinate and align
9	systems, and identify areas for improving quality assurance, fair and equitable access to services,
10	and opportunities for additional financial participation.
11	(d) Implement service organization and delivery reforms that facilitate service
12	integration, increase value, and improve quality and health outcomes.
13	(4) Beginning in 2006, prepare and submit to the governor, the chairpersons of the house
14	and senate finance committees, the caseload estimating conference, and to the joint legislative
15	committee for health-care oversight, by no later than March 15 of each year, a comprehensive
16	overview of all Medicaid expenditures outcomes, and utilization rates. The overview shall
17	include, but not be limited to, the following information:
18	(i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended;
19	(ii) Expenditures, outcomes and utilization rates by population and sub-population served
20	(e.g. families with children, persons with disabilities, children in foster care, children receiving
21	adoption assistance, adults ages nineteen (19) to sixty-four (64), and elders);
22	(iii) Expenditures, outcomes and utilization rates by each state department or other
23	municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the
24	Social Security Act, as amended; and
25	(iv) Expenditures, outcomes and utilization rates by type of service and/or service
26	provider.
27	The directors of the departments or offices, as well as local governments and school
28	departments, shall assist and cooperate with the secretary in fulfilling this responsibility by
29	providing whatever resources, information and support shall be necessary.
30	(5) Resolve administrative, jurisdictional, operational, program, or policy conflicts
31	among departments and offices and their executive staffs and make necessary recommendations
32	to the governor.
33	(6) Assure continued progress toward improving the quality, the economy, the
34	accountability and the efficiency of state-administered health and human services. In this
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1	capacity, the secretary shall:
2	(i) Direct implementation of reforms in the human resources practices of the executive
3	office and the departments and offices that streamline and upgrade services, achieve greater
4	economies of scale and establish the coordinated system of the staff education, cross-training, and
5	career development services necessary to recruit and retain a highly-skilled, responsive, and
6	engaged health and human services workforce;
7	(ii) Encourage EOHHS-wide consumer-centered approaches to service design and
8	delivery that expand their capacity to respond efficiently and responsibly to the diverse and
9	changing needs of the people and communities they serve;
10	(iii) Develop all opportunities to maximize resources by leveraging the state's purchasing
11	power, centralizing fiscal service functions related to budget, finance, and procurement,
12	centralizing communication, policy analysis and planning, and information systems and data
13	management, pursuing alternative funding sources through grants, awards and partnerships and
14	securing all available federal financial participation for programs and services provided EOHHS-
15	wide;
16	(iv) Improve the coordination and efficiency of health and human services legal functions
17	by centralizing adjudicative and legal services and overseeing their timely and judicious
18	administration;
19	(v) Facilitate the rebalancing of the long term system by creating an assessment and
20	coordination organization or unit for the expressed purpose of developing and implementing
21	procedures EOHHS-wide that ensure that the appropriate publicly-funded health services are
22	provided at the right time and in the most appropriate and least restrictive setting;
23	(vi) Strengthen health and human services program integrity, quality control and
24	collections, and recovery activities by consolidating functions within the office in a single unit
25	that ensures all affected parties pay their fair share of the cost of services and are aware of
26	alternative financing.
27	(vii) Assure protective services are available to vulnerable elders and adults with
28	developmental and other disabilities by reorganizing existing services, establishing new services
29	where gaps exist and centralizing administrative responsibility for oversight of all related
30	initiatives and programs.
31	(7) Prepare and integrate comprehensive budgets for the health and human services
32	departments and offices and any other functions and duties assigned to the office. The budgets
33	shall be submitted to the state budget office by the secretary, for consideration by the governor,
34	on behalf of the state's health and human services agencies in accordance with the provisions set
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1	forth in § 35-3-4 of the Rhode Island general laws.
2	(8) Utilize objective data to evaluate health and human services policy goals, resource use
3	and outcome evaluation and to perform short and long-term policy planning and development.
4	(9) Establishment of an integrated approach to interdepartmental information and data
5	management that complements and furthers the goals of the unified health infrastructure project
6	initiative and that will facilitate the transition to consumer-centered integrated system of state
7	administered health and human services.
8	(10) At the direction of the governor or the general assembly, conduct independent
9	reviews of state-administered health and human services programs, policies and related agency
10	actions and activities and assist the department and office directors in identifying strategies to
11	address any issues or areas of concern that may emerge thereof. The office and department
12	directors shall provide any information and assistance deemed necessary by the secretary when
13	undertaking such independent reviews.
14	(11) Provide regular and timely reports to the governor and make recommendations with
15	respect to the state's health and human services agenda.
16	(12) Employ such personnel and contract for such consulting services as may be required
17	to perform the powers and duties lawfully conferred upon the secretary.
18	(13) Assume responsibility for complying with the provisions of any general or public
19	law or regulation related to the disclosure, confidentiality and privacy of any information or
20	records, in the possession or under the control of the executive office or the departments and
21	offices assigned to the executive office, that may be developed or acquired or transferred at the
22	direction of the governor or the secretary for purposes directly connected with the secretary's
23	duties set forth herein.
24	(14) Hold the director of each health and human services department and office
25	accountable for their administrative, fiscal and program actions in the conduct of the respective
26	powers and duties of their agencies.
27	42-7.2-6. Departments assigned to the executive office -- Powers and duties.
28	(a) The departments and offices assigned to the secretary shall:
29	(1) Exercise their respective powers and duties in accordance with their statutory
30	authority and the general policy established by the governor or by the secretary acting on behalf
31	of the governor or in accordance with the powers and authorities conferred upon the secretary by
32	this chapter;
33	(2) Provide such assistance or resources as may be requested or required by the governor
34	and/or the secretary; and
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1	(3) Provide such records and information as may be requested or required by the
2	governor and/or the secretary to perform the duties set forth in subsection 6 of this chapter. Upon
3	developing, acquiring or transferring such records and information, the secretary shall assume
4	responsibility for complying with the provisions of any applicable general or public law,
5	regulation, or agreement relating to the confidentiality, privacy or disclosure of such records or
6	information.
7	(4) Forward to the secretary copies of all reports to the governor.
8	(b) Except as provided herein, no provision of this chapter or application thereof shall be
9	construed to limit or otherwise restrict the department of children, youth and families, the
10	department of health, the department of human services, and the department of behavioral
11	healthcare, developmental disabilities and hospitals or the offices of elder and veterans’ affairs
12	from fulfilling any statutory requirement or complying with any valid rule or regulation.
13	42-7.2-6.1. Transfer of powers and functions.
14	(a) There are hereby transferred to the executive office of health and human services the
15	powers and functions of the departments with respect to the following:
16	(1) Fiscal services including budget preparation and review, financial management,
17	purchasing and accounting and any related functions and duties deemed necessary by the
18	secretary;
19	(2) Legal services including applying and interpreting the law, oversight to the rule-
20	making process, and administrative adjudication duties and any related functions and duties
21	deemed necessary by the secretary;
22	(3) Communications including those functions and services related to government
23	relations, public education and outreach and media relations and any related functions and duties
24	deemed necessary by the secretary;
25	(4) Policy analysis and planning including those functions and services related to the
26	policy development, planning and evaluation and any related functions and duties deemed
27	necessary by the secretary;
28	(5) Information systems and data management including the financing, development and
29	maintenance of all data-bases and information systems and platforms as well as any related
30	operations deemed necessary by the secretary;
31	(6) Assessment and coordination for long-term care including those functions related to
32	determining level of care or need for services, development of individual service/care plans and
33	planning, identification of service options, the pricing of service options and choice counseling;
34	and
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1	(7) Program integrity, quality control and collection and recovery functions including any
2	that detect fraud and abuse or assure that beneficiaries, providers, and third-parties pay their fair
3	share of the cost of services, as well as any that promote alternatives to publicly financed
4	services, such as the long-term care health insurance partnership.
5	(8) Protective services including any such services provided to children, elders and adults
6	with developmental and other disabilities;
7	(9) [Deleted by P.L. 2010, ch. 23, art. 7, § 1].
8	(10) The HIV/AIDS care and treatment programs.
9	(11) The Office of Elder Affairs functions, formerly administered by the Department of
10	Human Services, and rules and regulations promulgated by the office.
11	(12) The Office of Veterans’ Affairs functions, formerly administered by the Department
12	of Human Services, and rules and regulations promulgated by the office.
13	(b) The secretary shall determine in collaboration with the department and office
14	directors whether the officers, employees, agencies, advisory councils, committees, commissions,
15	and task forces of the departments and offices who were performing such functions shall be
16	transferred to the office.
17	(c) In the transference of such functions, the secretary shall be responsible for ensuring:
18	(1) Minimal disruption of services to consumers;
19	(2) Elimination of duplication of functions and operations;
20	(3) Services are coordinated and functions are consolidated where appropriate;
21	(4) Clear lines of authority are delineated and followed;
22	(5) Cost-savings are achieved whenever feasible;
23	(6) Program application and eligibility determination processes are coordinated and,
24	where feasible, integrated; and
25	(7) State and federal funds available to the office and the entities therein are allocated and
26	utilized for service delivery to the fullest extent possible.
27	(d) Except as provided herein, no provision of this chapter or application thereof shall be
28	construed to limit or otherwise restrict the departments of children, youth and families, human
29	services, health, and behavioral healthcare, developmental disabilities and hospitals or offices of
30	elder and veterans’ affairs from fulfilling any statutory requirement or complying with any
31	regulation deemed otherwise valid.
32	(e) The secretary shall prepare and submit to the leadership of the house and senate
33	finance committees, by no later than January 1, 2010, a plan for restructuring functional
34	responsibilities across the departments to establish a consumer centered integrated system of
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1	health and human services that provides high quality and cost-effective services at the right time
2	and in the right setting across the life-cycle.
3	42-7.2-9. Appointment of employees.
4	The secretary, subject to the provisions of applicable state law, shall be the appointing
5	authority for all employees of the executive office of health and human services. The secretary
6	may assign this function to such subordinate officers and employees of the executive office as
7	may to him or her seem feasible or desirable. The appointing authority of the secretary provided
8	for herein shall not affect, interfere with, limit, or otherwise restrict the appointing authority
9	vested in the directors for the employees of the departments and offices under applicable general
10	and public laws.
11	42-7.2-15. Applicability.
12	Nothing in this chapter shall change, transfer or interfere with, or limit or otherwise
13	restrict the general assembly's sole authority to appropriate and re-appropriate fiscal resources to
14	the departments and offices; the statutory or regulatory duties of the directors of the departments
15	and offices, or the appointing authority for the employees of the departments and offices vested in
16	the directors under applicable general and public laws.
17	42-7.2-17. Statutory reference to the office of health and human services.
18	Notwithstanding other statutory references to the department of human services,
19	wherever in the general or public laws, or any rule or regulation, any reference shall appear to the
20	"department of human services" or to "department" as it relates to any responsibilities for and/or
21	to Medicaid, the office of elder affairs or the office of veterans’ affairs unless the context
22	otherwise requires, it shall be deemed to mean "the office of health and human services."
23	SECTION 17. Section 42-11-10 of the General Laws in Chapter 42-11 entitled
24	"Department of Administration" is hereby amended to read as follows:
25	42-11-10. Statewide planning program.
26	(a) Findings. The general assembly finds that the people of this state have a fundamental
27	interest in the orderly development of the state; the state has a positive interest and demonstrated
28	need for establishment of a comprehensive, strategic state planning process and the preparation,
29	maintenance, and implementation of plans for the physical, economic, and social development of
30	the state; the continued growth and development of the state presents problems that cannot be met
31	by the cities and towns individually and that require effective planning by the state; and state and
32	local plans and programs must be properly coordinated with the planning requirements and
33	programs of the federal government.
34	(b) Establishment of statewide planning program.
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1	(1) A statewide planning program is hereby established to prepare, adopt, and amend
2	strategic plans for the physical, economic, and social development of the state and to recommend
3	these to the governor, the general assembly, and all others concerned.
4	(2) All strategic planning, as defined in subsection (c) of this section, undertaken by all
5	departments and agencies of the executive branch unless specifically exempted, shall be
6	conducted by or under the supervision of the statewide planning program. The statewide planning
7	program shall consist of a state planning council, and the division of planning, which shall be a
8	division within the department of administration.
9	(c) Strategic planning. Strategic planning includes the following activities:
10	(1) Establishing or identifying general goals.
11	(2) Refining or detailing these goals and identifying relationships between them.
12	(3) Formulating, testing, and selecting policies and standards that will achieve desired
13	objectives.
14	(4) Preparing long-range or system plans or comprehensive programs that carry out the
15	policies and set time schedules, performance measures, and targets.
16	(5) Preparing functional, short-range plans or programs that are consistent with
17	established or desired goals, objectives, and policies, and with long-range or system plans or
18	comprehensive programs where applicable, and that establish measurable, intermediate steps
19	toward their accomplishment of the goals, objectives, policies, and/or long-range system plans.
20	(6) Monitoring the planning of specific projects and designing of specific programs of
21	short duration by the operating departments, other agencies of the executive branch, and political
22	subdivisions of the state to ensure that these are consistent with, and carry out the intent of,
23	applicable strategic plans.
24	(7) Reviewing the execution of strategic plans, and the results obtained, and making
25	revisions necessary to achieve established goals.
26	(d) State guide plan. Components of strategic plans prepared and adopted in accordance
27	with this section may be designated as elements of the state guide plan. The state guide plan shall
28	be comprised of functional elements or plans dealing with land use; physical development and
29	environmental concerns; economic development; housing production; energy supply, including
30	the development of renewable energy resources in Rhode Island, and energy access, use, and
31	conservation; human services; and other factors necessary to accomplish the objective of this
32	section. The state guide plan shall be a means for centralizing, integrating, and monitoring long-
33	range goals, policies, plans, and implementation activities related thereto. State agencies
34	concerned with specific subject areas, local governments, and the public shall participate in the
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1	state guide planning process, which shall be closely coordinated with the budgeting process.
2	(e) Membership of state planning council. The state planning council shall consist of the
3	following members:
4	(1) The director of the department of administration as chairperson;
5	(2) The director, policy office, in the office of the governor, as vice-chairperson;
6	(3) The governor, or his or her designee;
7	(4) The budget officer;
8	(5) The chairperson of the housing resources commission;
9	(6) The highest-ranking administrative officer of the division of planning, as secretary;
10	(7) The president of the Rhode Island League of Cities and Towns or his or her designee
11	and one official of local government who shall be appointed by the governor from a list of not
12	less than three (3) submitted by the Rhode Island League Cities and Towns;
13	(8) The executive director of the Rhode Island League of Cities and Towns;
14	(9) One representative of a nonprofit community development or housing organization
15	appointed by the governor;
16	(10) Six (6) public members, appointed by the governor, one of whom shall be an
17	employer with fewer than fifty (50) employees and one of whom shall be an employer with
18	greater than fifty (50) employees;
19	(11) Two (2) representatives of a private, nonprofit, environmental advocacy
20	organization, both to be appointed by the governor;
21	(12) The director of planning and development for the city of Providence;
22	(13) The director of the department of transportation;
23	(14) The director of the department of environmental management;
24	(15) The director of the department of health;
25	(16) The chief executive officer of the commerce corporation;
26	(17) The commissioner of the Rhode Island office of energy resources;
27	(18) The chief executive officer of the Rhode Island public transit authority;
28	(19) The executive director of Rhode Island housing; and
29	(20) The executive director of the coastal resources management council.
30	(f) Powers and duties of state planning council. The state planning council shall have the
31	following powers and duties:
32	(1) To adopt strategic plans as defined in this section and the long-range state guide plan,
33	and to modify and amend any of these, following the procedures for notification and public
34	hearing set forth in § 42-35-3, and to recommend and encourage implementation of these goals to
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1	the general assembly, state and federal agencies, and other public and private bodies; approval of
2	strategic plans by the governor; and to ensure that strategic plans and the long-range state guide
3	plan are consistent with the findings, intent, and goals set forth in § 45-22.2-3, the "Rhode Island
4	Comprehensive Planning and Land Use Regulation Act";
5	(2) To coordinate the planning and development activities of all state agencies, in
6	accordance with strategic plans prepared and adopted as provided for by this section;
7	(3) To review and comment on the proposed annual work program of the statewide
8	planning program;
9	(4) To adopt rules and standards and issue orders concerning any matters within its
10	jurisdiction as established by this section and amendments to it;
11	(5) To establish advisory committees and appoint members thereto representing diverse
12	interests and viewpoints as required in the state planning process and in the preparation or
13	implementation of strategic plans. The state planning council shall appoint a permanent
14	committee comprised of:
15	(i) Public members from different geographic areas of the state representing diverse
16	interests; and
17	(ii) Officials of state, local, and federal government, who shall review all proposed
18	elements of the state guide plan, or amendment or repeal of any element of the plan, and shall
19	advise the state planning council thereon before the council acts on any such proposal. This
20	committee shall also advise the state planning council on any other matter referred to it by the
21	council; and
22	(6) To establish and appoint members to an executive committee consisting of major
23	participants of a Rhode Island geographic information system with oversight responsibility for its
24	activities.
25	(7) To adopt, amend, and maintain, as an element of the state guide plan or as an
26	amendment to an existing element of the state guide plan, standards and guidelines for the
27	location of eligible, renewable energy resources and renewable energy facilities in Rhode Island
28	with due consideration for the location of such resources and facilities in commercial and
29	industrial areas, agricultural areas, areas occupied by public and private institutions, and property
30	of the state and its agencies and corporations, provided such areas are of sufficient size, and in
31	other areas of the state as appropriate.
32	(8) To act as the single, statewide metropolitan planning organization for transportation
33	planning, and to promulgate all rules and regulations that are necessary thereto.
34	(g) Division of planning.
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1	(1) The division of planning shall be the principal staff agency of the state planning
2	council for preparing and/or coordinating strategic plans for the comprehensive management of
3	the state's human, economic, and physical resources. The division of planning shall recommend
4	to the state planning council specific guidelines, standards, and programs to be adopted to
5	implement strategic planning and the state guide plan and shall undertake any other duties
6	established by this section and amendments thereto.
7	(2) The division of planning shall maintain records (which shall consist of files of
8	complete copies) of all plans, recommendations, rules, and modifications or amendments thereto
9	adopted or issued by the state planning council under this section. The records shall be open to
10	the public.
11	(3) The division of planning shall manage and administer the Rhode Island geographic
12	information system of land-related resources, and shall coordinate these efforts with other state
13	departments and agencies, including the University of Rhode Island, which shall provide
14	technical support and assistance in the development and maintenance of the system and its
15	associated data base.
16	(4) The division of planning shall coordinate and oversee the provision of technical
17	assistance to political subdivisions of the state in preparing and implementing plans to accomplish
18	the purposes, goals, objectives, policies, and/or standards of applicable elements of the state guide
19	plan and shall make available to cities and towns data and guidelines that may be used in
20	preparing comprehensive plans and elements thereof and in evaluating comprehensive plans and
21	elements thereby.
22	(h) [Deleted by P.L. 2011, ch. 215, § 4, and by P.L. 2011, ch. 313, § 4].
23	(i) The division of planning shall be the principal staff agency of the water resources
24	board established pursuant to chapter 15 of title 46 ("Water Resources Board") and the water
25	resources board corporate established pursuant to chapter 15.1 of title 46 ("Water Supply
26	Facilities").
27	SECTION 18. Section 42-11-10.1 of the General Laws in Chapter 42-11 entitled
28	"Department of Administration" is hereby repealed.
29	42-11-10.1. Transfer of powers, functions and resources from the water resources
30	board.
31	(a) There are hereby transferred to the division of planning within the department of
32	administration those powers and duties formerly administered by the employees of the water
33	resources board as provided for in chapter 46-15 ("Water Resources Board") through 46-15.8
34	("Water Use and Efficiency Act"), inclusive, and any other applicable provisions of the general
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1	laws; provided, however, the governor shall submit to the 2012 assembly any recommended
2	statutory changes necessary to facilitate the merger.
3	(b) All resources of the water resources board, including, but not limited to, property,
4	employees and accounts, are hereby transferred to the division of planning.
5	(c) As part of the above transfer, except for the general manager, all employees of the
6	water resources board currently subject to the provisions of chapter 4 of title 36 shall continue to
7	be subject to those provisions.
8	SECTION 19. Sections 42-12-1.3, 42-12-2, 42-12-5 and 42-12-7 of the General Laws in
9	Chapter 42-12 entitled "Department of Human Services" are hereby repealed.
10	42-12-1.3. Transfer of functions from the department of elderly affairs.
11	There is hereby transferred from the department of elderly affairs to the department of
12	human services the following function: to provide and coordinate the "elderly/disabled
13	transportation" program including a passenger cost sharing program as defined and provided for
14	under rules and regulations promulgated by the department.
15	42-12-2. Management of institutions.
16	The department of human services shall have the management, supervision, and control
17	of the adult correctional institutions, training school for boys, training school for girls, Doctor
18	Patrick I. O'Rourke children's center, and Rhode Island veterans' home, and such other functions
19	as have been or may be assigned. The department also shall operate, maintain and repair the
20	buildings, grounds, and other physical property at the institutions, other than the roads and
21	driveways thereof which shall be under the care and supervision of the department of
22	transportation.
23	42-12-5. Assistance on veterans' claims.
24	The department of human services shall also prepare and present before the Veterans
25	Administration of the United States all legal claims of veterans for compensation, disability
26	allowance, insurance and pensions of veterans of World War I, and all other veterans to whom
27	benefits have been extended pursuant to the provisions of chapter 22 of title 30 entitled
28	"Extension of Veterans' Benefits" who had a legal residence in this state at the time of entrance
29	into the service or who have been qualified electors in this state for two (2) years next preceding
30	the application for aid, and their personal representatives or dependents, or both, and shall render
31	to such persons reasonable assistance in the preparation and presentation of any of those claims
32	and shall perform such other duties as may be by law required. The department shall render such
33	assistance without charge to the claimant.
34	42-12-7. Special veterans' funds.
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1	The director of the department of human services shall have control and supervision over
2	any special funds provided for decorating and installing metal markers on the graves of soldiers,
3	sailors, airmen, and marines, for the burial of honorably discharged soldiers, for the assistance of
4	World War I veterans and other expenditures relating to veteran soldiers, sailors, airmen, and
5	marines.
6	SECTION 20. Sections 42-12-23 and 42-12-23.1 of the General Laws in Chapter 42-12
7	entitled "Department of Human Services" are hereby amended to read as follows:
8	42-12-23. Child care -- Planning and coordinating.
9	(a) The department of human services shall be the principal agency of the state for the
10	planning and coordination of state involvement in the area of child care. To accomplish this
11	purpose, the department's duties shall include submitting an annual report to the governor and the
12	general assembly on the status of child care in Rhode Island.
13	(b) The annual report of the department shall include, but not be limited to, the following
14	information:
15	(1) The amount of state and federal funds spent on child care in each of the two (2)
16	preceding years;
17	(2) The number of child care providers licensed; pursuant to the provisions of chapter
18	72.1 of this title;
19	(3) The number of children served in state subsidized programs;
20	(4) The number of taxpayers who have claimed the child care assistance and development
21	tax credit pursuant to chapter 47 of title 44;
22	(5) The average cost for both infant and preschool child care;
23	(6) An estimate of unmet needs for child care;
24	(7) Information on child care staff salaries and training and education programs, and
25	(8) Recommendations for any changes in child care public policy.
26	(c) The department shall cooperate with the unit of the department of children, youth, and
27	families which licenses and monitors child care providers pursuant to the terms of chapter 72.1 of
28	this title.
29	(d)(c) The department is hereby charged with the responsibility of assuring that a
30	statewide child care resource and referral system exists in this state to provide services and
31	consumer information to assist parents in locating and choosing licensed, approved and/or
32	certified providers, and to maintain data necessary for such referrals.
33	42-12-23.1. Quality of early care and education and school-age child care through
34	voluntary quality rating system.
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1	(a) There is hereby established a voluntary quality rating system which will assess quality
2	in early care and education programs and school-age child care. For purposes of this section,
3	early care and education programs and school-age child care shall mean programs licensed under
4	chapter 72.1, title 42 12.5, title 42 and approved under chapter 48, title 16, including without
5	limitation child care centers, family child care homes, group family child care homes, school-age
6	child care programs and preschools, but excluding child placement agencies. The voluntary
7	quality rating system is established to promote continuous quality improvement of programs and
8	to further the goals of Rhode Island's "starting right" initiative.
9	(b) The department of human services, the department of children, youth and families, the
10	department of health, the department of elementary and secondary education and other partners
11	and agencies shall share information and work cooperatively with the Rhode Island quality rating
12	system, a public-private partnership, to ensure that Rhode Island children have access to quality
13	early care and education programs and school-age child care.
14	(c) The voluntary quality rating system shall also provide a mechanism to gather data
15	about program quality, and shall report this information to parents, providers and other persons
16	interested in the quality of early care and education programs and school-age child care services
17	in Rhode Island.
18	SECTION 21. Title 42 of the General Laws entitled "STATE AFFAIRS AND
19	GOVERNMENT" is hereby amended by adding thereto the following chapter:
20	CHAPTER 42-12.5
21	LICENSING AND MONITORING OF CHILD DAY CARE PROVIDERS
22	42-12.5-1. Statement of purpose.
23	(a) The director of the department of human services shall establish within the
24	department a unit to license and monitor child day care service providers to protect the health,
25	safety and wellbeing of children while being cared for as a commercial service and are away from
26	their homes.
27	(b) Services for children requiring licensure under this chapter shall include all child day
28	care providers which offer services within the state, except as defined in § 42-12.5-5
29	42-12.5-2. Definitions.
30	As used in this chapter:
31	(1) "Administrator of licensing" means the director of the licensing unit (or his/her
32	designee) that carries out the provisions of this chapter, hereafter referred to as the
33	"administrator".
34	(2) "Applicant" means a child day care provider that applies for a license to operate.
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1	(3) "Child" means any person less than eighteen (18) years of age;
2	(4) "Child day care" means daily care and/or supervision offered commercially to the
3	public for any part of a twenty-four (24) hour day to children away from their homes.
4	(5) "Child day care center" means any person, firm, corporation, association, or agency
5	who, on a regular or irregular basis, receives any child under the age of sixteen (16) years, for the
6	purpose of care and/or supervision, not in a home or residence, apart from the child's parent or
7	guardian for any part of a twenty-four (24) hour day irrespective of compensation. It shall include
8	child day care programs that are offered to employees at the worksite. It does not include
9	preschool programs operating in schools approved by the commissioner of elementary and
10	secondary education.
11	(6) "Child day care provider" means a person or agency, which offers daily care and/or
12	supervision offered commercially to the public for any part of a twenty-four (24) hour day to
13	children away from their homes.
14	(7) "Department" means the department of human services (DHS).
15	(8) "Director" means the director of the department of human services, or the director's
16	designee.
17	(9) "Family day care home" means any home other than the child's home in which child
18	day care in lieu of parental care and/or supervision is offered at the same time to four (4) or more
19	children who are not relatives of the care giver.
20	(10) "Group family day care home" means a residence occupied by an individual of at
21	least twenty-one (21) years of age who provides care for not less than nine (9) and not more than
22	twelve (12) children, with the assistance of one or more approved adults, for any part of a twenty-
23	four (24) hour day. These programs shall be subject to yearly licensing as addressed in this
24	chapter and shall comply with all applicable state and local fire, health, and zoning regulations.
25	(11) "Licensee" means any person, firm, corporation, association, or agency, which holds
26	a valid license under this chapter.
27	(12) "Regulation" means any requirement for licensure, promulgated pursuant to this
28	chapter having the force of law.
29	(13) "Related" means any of the following relationships, by marriage, blood or adoption,
30	even following the death or divorce of a natural parent: parent, grandparent, brother, sister, aunt,
31	uncle, and first cousin. In a prosecution under this chapter or of any law relating thereto, a
32	defendant who relies for a defense upon the relationship of any child to him or herself, the
33	defendant shall have the burden of proof as to the relationship.
34	42-12.5-3. Powers and scope of activities.
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1	(a) The department shall issue, deny, suspend, and revoke licenses for, and monitor the
2	operation of, facilities and programs by child day care providers, as defined in § 42-12.5-2.
3	(b) The department is hereby authorized and directed to adopt, amend, and rescind
4	regulations in accordance with this chapter and implement its provisions. The regulations shall be
5	promulgated and become effective in accordance with the provisions of the Administrative
6	Procedures Act, chapter 35 of title 42 and shall address, but need not be limited to the following:
7	(1) Financial, administrative and organizational ability, and stability of the applicant;
8	(2) Compliance with specific fire and safety codes and health regulations;
9	(3) Character, health suitability, qualifications of child day care providers;
10	(4) Staff/child ratios and workload assignments of staff providing care or supervision to
11	children;
12	(5) Type and content of records or documents that must be maintained to collect and
13	retain information for the planning and caring for children;
14	(6) Procedures and practices regarding basic child day care to ensure protection to the
15	child;
16	(7) Service to families of children in care;
17	(8) Program activities, including components related to physical growth, social,
18	emotional, educational, and recreational activities;
19	(9) Investigation of previous employment, criminal record check and department records
20	check; and
21	(10) Immunization and testing requirements for communicable diseases, including, but
22	not limited to, tuberculosis, of child day care providers and children at any child day-care center
23	or family day-care home as is specified in regulations promulgated by the director of the
24	department of health. Notwithstanding the foregoing, all licensing and monitoring authority shall
25	remain with the department of human services.
26	(c) The department through its licensing unit shall administer and manage the regulations
27	pertaining to the licensing and monitoring of child day care providers, and shall exercise all
28	statutory and administrative powers necessary to carry out its functions.
29	(d) The administrator shall investigate complaints of noncompliance, and shall take
30	licensing action as may be necessary pursuant to this chapter.
31	(e) The administrator may:
32	(1) Prescribe any forms for reports, statements, notices, and other documents deemed
33	necessary;
34	(2) Prepare and publish manuals and guides explaining this chapter and the regulations to
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1	facilitate compliance with and enforcement of the regulations;
2	(3) Prepare reports and studies to advance the purpose of this chapter;
3	(4) Provide consultation and technical assistance, as requested, to assist licensees in
4	maintaining compliance; and
5	(f) The department may promulgate rules and regulations for the establishment of child
6	day care centers located on the second floor.
7	(g) When the department is otherwise unsuccessful in remedying noncompliance with the
8	provisions of this chapter and the regulations promulgated thereunder it may petition the superior
9	court for an order enjoining the noncompliance or for any order that equity and justice may
10	require.
11	(h) The department shall collaborate with the departments of children, youth, and
12	families, elementary and secondary education, and health to provide monitoring, mentoring,
13	training, technical assistance, and other services which are necessary and appropriate to
14	improving the quality of child day care offered by child day care providers who are certified,
15	licensed, or approved by the department or the department of elementary and secondary education
16	or who are seeking certification, licensure, or approval pursuant to § 42-12.5 or § 16-48-2,
17	including non-English speaking providers.
18	42-12.5-4. License required.
19	(a) No person shall receive or place children in child day care services, including day care
20	arrangements, without a license issued pursuant to this chapter. This requirement does not apply
21	to a person related by blood, marriage, guardianship or adoption to the child, unless that
22	arrangement is for the purposes of day care.
23	(b) The licensing requirement does not apply to shelter operations for parents with
24	children, boarding schools, recreation camps, nursing homes, hospitals, maternity residences, and
25	centers for developmentally disabled children.
26	(c) No person, firm, corporation, association, or agency shall operate a family day care
27	home without a registration certificate issued by the department, unless they hold an unexpired
28	registration certificate issued by the Department of Children, Youth, and Families prior to
29	January 1, 2020.
30	(d) No state, county, city, or political subdivision shall operate a child day care agency or
31	center, program or facility without a license issued pursuant to this chapter.
32	(e) No person shall be exempt from a required license by reason of public or private,
33	sectarian, non-sectarian, child day care program, for profit or non-profit status, or by any other
34	reason of funding, sponsorship, or affiliation.
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1	42-12.5-5. General licensing provisions.
2	The following general licensing provisions shall apply:
3	(1) A license issued under this chapter is not transferable and applies only to the licensee
4	and the location stated in the application and remains the property of the department. A license
5	shall be publicly displayed. A license shall be valid for one year from the date of issue and upon
6	continuing compliance with the regulations, except that a certificate issued to a family day care
7	home shall be valid for two (2) years from the date of issue.
8	(2) Every license application issued pursuant to § 42-12.5-4 shall be accompanied by a
9	nonrefundable application fee paid to the State of Rhode Island as follows:
10	(a) Child day care center license- five hundred dollars ($500);
11	(b) Group family day care home license – two hundred and fifty dollars ($250);
12	(c) Family day care home license- one hundred dollars ($100).
13	(3) All fees collected by the State pursuant to paragraph (2) of this section shall be
14	deposited by the general treasurer as general revenues.
15	(4) A licensee shall comply with applicable state fire and health safety standards.
16	(5) The department may grant a provisional license to an applicant who is not able to
17	demonstrate compliance with all of the regulations because the program or residence is not in full
18	operation; however, the applicant must meet all regulations that can be met in the opinion of the
19	administrator before the program is fully operational. The provisional license shall be granted for
20	a limited period not to exceed six (6) months and shall be subject to review every three (3)
21	months.
22	(6) The department may grant a probationary license to a licensee who is temporarily
23	unable to comply with a rule or rules when the noncompliance does not present an immediate
24	threat to the health and well-being of the children, and when the licensee has obtained a plan
25	approved by the administrator to correct the areas of noncompliance within the probationary
26	period. A probationary license shall be issued for up to twelve (12) months; it may be extended
27	for an additional six (6) months at the discretion of the administrator. A probationary license that
28	states the conditions of probation may be issued by the administrator at any time for due cause.
29	Any prior existing license is invalidated when a probationary license is issued. When the
30	probationary license expires, the administrator may reinstate the original license to the end of its
31	term, issue a new license, suspend, or revoke the license.
32	(7) The administrator will establish criteria and procedure for granting variances as part
33	of the regulations.
34	(8) The above exceptions (probationary and provisional licensing and variances) do not
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1	apply to and shall not be deemed to constitute any variance from state fire and health safety
2	standards. However, if a request for a variance of fire inspection deficiencies has been submitted
3	to the fire safety code board of appeal and review, DHS may grant a provisional license to
4	terminate no later than thirty (30) days following the board's decision on said variance.
5	(9) A license under this chapter shall be granted to a child day care program without the
6	necessity for a separate fire, building, or radon inspection, when said child day care program is
7	conducted at a Rhode Island elementary or secondary school which has already been found in
8	compliance with said inspections, provided that an applicant complies with all other provisions of
9	DHS regulations, or has been granted appropriate variances by the department.
10	42-12.5-6. Violations, suspensions and revocations of license.
11	(a) When a licensee violates the terms of the license, the provisions of this chapter, or any
12	regulation thereunder, the department may pursue the administrative remedies herein provided, in
13	addition to other civil or criminal remedies according to the general laws.
14	(b) After notice and hearing, as provided by the Administrative Procedures Act, chapter
15	35 of title 42, the administrator may revoke the license, or suspend the license for a period not
16	exceeding six (6) months.
17	(c) During a suspension, the facility or program shall cease operation.
18	(d) To end a suspension, the licensee shall, within thirty (30) days of the notice of
19	suspension, submit an acceptable plan of corrective action to the administrator. The plan shall
20	outline the steps and timetables for immediate correction of the areas of noncompliance and is
21	subject to the approval of the administrator.
22	(e) At the end of the suspension, the administrator may reinstate the license for the term
23	of the original license, revoke the license, issue a new license, or deny a reapplication.
24	(f) Upon revocation, the licensed program or facility shall cease operation. The licensee
25	whose license has been revoked may not apply for a similar license within a three (3) year period
26	from the date of revocation.
27	42-12.5-7. Penalties for violations.
28	(a) Any person who violates any of the provisions of this chapter, or any regulations
29	issued pursuant to this chapter, or who shall intentionally make any false statement or reports to
30	the director with reference to the matters contained herein, shall, upon conviction for the first
31	offense, be imprisoned for a term not exceeding six (6) months or be fined not exceeding five
32	hundred dollars ($500), or both, and for a second or subsequent offense, shall be imprisoned for a
33	term not exceeding one year or be fined not exceeding one thousand dollars ($1000), or both the
34	fine and imprisonment.
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1	(b) Anyone who maintains or conducts a program or facility without first having obtained
2	a license pursuant to this chapter, or who maintains or conducts a program or facility after a
3	license has been revoked or suspended, or who shall refuse to permit a reasonable inspection and
4	examination of a program or facility, shall be guilty of a misdemeanor and, upon conviction, shall
5	be fined not more than five hundred dollars ($500) for each week that the program or facility
6	shall have been maintained without a license or for each refusal to permit inspection and
7	examination by the director.
8	(c) Any individual, firm, corporation, or other entity who maintains or conducts a family
9	day care home without first having obtained a registration certificate for the home pursuant to this
10	chapter, shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than
11	twenty-five dollars ($25.00) nor more than one hundred dollars ($100) for each week that the
12	home shall have been maintained without a valid registration certificate.
13	(d) The department shall refer any violations to the attorney general's office for
14	prosecution.
15	42-12.5-8. Open door policy.
16	There shall be an open door policy permitting any custodial parent or legal guardian to
17	have access to a day care facility for any program when their child is in attendance.
18	SECTION 22. The title of Chapter 42-66 of the General Laws entitled "Elderly Affairs
19	Department" is hereby amended to read as follows:
20	CHAPTER 42-66
21	ELDERLY AFFAIRS DEPARTMENT OFFICE
22	SECTION 23. Sections 42-66-2, 42-66-3, 42-66-4, 42-66-5, 42-66-7 and 42-66-8 of the
23	General Laws in Chapter 42-66 entitled "Elderly Affairs Department Office" are hereby amended
24	to read as follows:
25	42-66-2. Establishment of department Office-- Director.
26	There is established within the executive branch of state government an department office
27	of elderly affairs. The head director of the department office of elder affairs shall be the director
28	of elderly affairs, who shall be a person qualified by training and experience to perform the duties
29	of the office. appointed by and report directly to the governor, but the office shall reside within
30	the executive office of health and human services for administrative purposes. The director shall
31	be in the unclassified service, appointed by the governor with the advice and consent of the
32	senate, and shall serve at the pleasure of the governor and until the appointment and qualification
33	of the director's successor. The director shall receive a salary as provided by law.
34	42-66-3. Transfer of functions from the department of community affairs.
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1	There are transferred to the director of the department office of elderly affairs:
2	(1) Those duties with respect to elderly citizens as enacted by former §§ 42-44-9 and 42-
3	44-10;
4	(2) So much of other functions or parts of functions of the director of the department of
5	community affairs; provided, however, that those duties with respect to housing facilities,
6	projects, and programs for the elderly shall be within the jurisdiction of the governor's office of
7	intergovernmental relations; and
8	(3) Whenever in the general laws or in any public law the words "administration of
9	division of aging," "division on aging" and "director and/or department of community affairs"
10	shall appear in relation to elderly affairs, the reference shall be deemed to mean and include the
11	director and the department office of elderly affairs, as the case may be.
12	42-66-4. Duties of the division office.
13	(a) The division office shall be the principal agency of the state to mobilize the human,
14	physical, and financial resources available to plan, develop, and implement innovative programs
15	to ensure the dignity and independence of elderly persons, including the planning, development,
16	and implementation of a home and long-term-care program for the elderly in the communities of
17	the state.
18	(b)(1) The division office shall serve as an advocate for the needs of the adult with a
19	disability as these needs and services overlap the needs and services of elderly persons.
20	(2) The division office shall serve as the state's central agency for the administration and
21	coordination of a long-term-care entry system, using community-based access points, that will
22	provide the following services related to long-term care: information and referral; initial
23	screening for service and benefits eligibility; and a uniform assessment program for state-
24	supported long-term care.
25	(3) The division office shall investigate reports of elder abuse, neglect, exploitation, or
26	self-neglect and shall provide and/or coordinate protective services.
27	(c) To accomplish these objectives, the director is authorized:
28	(1) To provide assistance to communities in solving local problems with regard to elderly
29	persons including, but not limited to, problems in identifying and coordinating local resources to
30	serve the needs of elderly persons;
31	(2) To facilitate communications and the free flow of information between communities
32	and the offices, agencies, and employees of the state;
33	(3) To encourage and assist communities, agencies, and state departments to plan,
34	develop, and implement home- and long-term care programs;
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1	(4) To provide and act as a clearinghouse for information, data, and other materials
2	relative to elderly persons;
3	(5) To initiate and carry out studies and analyses that will aid in solving local, regional,
4	and statewide problems concerning elderly persons;
5	(6) To coordinate those programs of other state agencies designed to assist in the solution
6	of local, regional, and statewide problems concerning elderly persons;
7	(7) To advise and inform the governor on the affairs and problems of elderly persons in
8	the state;
9	(8) To exercise the powers and discharge the duties assigned to the director in the fields
10	of health care, nutrition, homemaker services, geriatric day care, economic opportunity, local and
11	regional planning, transportation, and education and pre-retirement programs;
12	(9) To further the cooperation of local, state, federal, and private agencies and institutions
13	providing for services or having responsibility for elderly persons;
14	(10) To represent and act on behalf of the state in connection with federal grant programs
15	applicable to programs for elderly persons in the functional areas described in this chapter;
16	(11) To seek, accept, and otherwise take advantage of all federal aid available to the
17	division office, and to assist other agencies of the state, local agencies, and community groups in
18	taking advantage of all federal grants and subventions available for elderly persons and to accept
19	other sources of funds with the approval of the director of administration that shall be deposited
20	as general revenues;
21	(12) To render advice and assistance to communities and other groups in the preparation
22	and submission of grant applications to state and federal agencies relative to programs for elderly
23	persons;
24	(13) To review and coordinate those activities of agencies of the state and of any political
25	subdivision of the state at the request of the subdivision, that affect the full and fair utilization of
26	community resources for programs for elderly persons, and initiate programs that will help ensure
27	such utilization;
28	(14) To encourage the formation of councils on aging and to assist local communities in
29	the development of the councils;
30	(15) To promote and coordinate day-care facilities for the frail elderly who are in need of
31	supportive care and supervision during the daytime;
32	(16) To provide and coordinate the delivery of in-home services to the elderly, as defined
33	under the rules and regulations adopted by the division office of elderly affairs;
34	(17) To advise and inform the public of the risks of accidental hypothermia;
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1	(18) To establish a clearinghouse for information and education of the elderly citizens of
2	the state, including, but not limited to, and subject to available funding, a web-based caregiver
3	support information center;
4	(19) To establish and operate, in collaboration with community and aging service
5	agencies, a statewide family-caregiver resource network to provide and coordinate family-
6	caregiver training and support services to include counseling and elder caregiver respite services,
7	which shall be subject to available funding, and include home health/homemaker care, adult day
8	services, assisted living, and nursing facility care;
9	(20) To supervise the citizens' commission for the safety and care of the elderly created
10	pursuant to the provisions of chapter 1.4 of title 12.
11	(d) In order to assist in the discharge of the duties of the division office, the director may
12	request from any agency of the state information pertinent to the affairs and problems of elderly
13	persons.
14	42-66-5. Divisions of department office.
15	There shall be within the department office of elderly affairs a division of program
16	planning, development and operations and a division of community services.
17	42-66-7. Advisory commission on aging.
18	(a) Within the department office of elderly affairs there shall be an advisory commission
19	on aging consisting of twenty-five (25) members, four (4) of whom shall be from the general
20	assembly as hereinafter provided, and twenty-one (21) of whom shall be appointed by the
21	governor, thirteen (13) of whom shall be elderly consumers representative of that segment of the
22	population. In the case of members of the commission appointed by the governor, they shall be
23	chosen and shall hold office for three (3) years, except that in the original appointments, seven (7)
24	members shall be designated to serve for one year, seven (7) members shall be designated to
25	serve for two (2) years and seven (7) members shall be designated to serve for three (3) years,
26	respectively, and until their respective successors are appointed and qualified. In the month of
27	February in each year the governor shall appoint successors to the members of the commission
28	whose terms shall expire in such year to hold office until the first day of March in the third year
29	after their appointment and until their respective successors are appointed and qualified.
30	(b) The four (4) members from the general assembly shall be appointed, two (2) from the
31	house of representatives by the speaker, one from each of the two (2) major political parties, and
32	two (2) from the senate by the president of the senate, one each from the two (2) major political
33	parties, each to serve until the thirty-first day of December in the second year of the term to
34	which the member has been elected. Any vacancy, which may occur in the commission, shall be
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1	filled in like manner as the original appointment, for the remainder of the unexpired term.
2	(c) The members of the commission at the first meeting shall elect a chairperson and such
3	other officers as they may deem necessary. The commission shall meet at the call of the governor
4	or the chairperson and shall make suggestions to and advise the governor or the director
5	concerning the policies and problems confronting the aged and aging of the state. The members
6	of the commission shall serve without compensation but shall be compensated for their necessary
7	and actual traveling expenses in the performance of their official duties.
8	42-66-8. Abuse, neglect, exploitation and self-neglect of elderly persons -- Duty to
9	report.
10	Any person who has reasonable cause to believe that any person sixty (60) years of age or
11	older has been abused, neglected, or exploited, or is self-neglecting, shall make an immediate
12	report to the director of the department office of elderly affairs, or his or her designee, or
13	appropriate law enforcement personnel. In cases of abuse, neglect, or exploitation, any person
14	who fails to make the report shall be punished by a fine of not more than one thousand dollars
15	($1,000). Nothing in this section shall require an elder who is a victim of abuse, neglect,
16	exploitation or who is self-neglecting, to make a report regarding such abuse, neglect,
17	exploitation, or self-neglect to the director or his or her designee or appropriate law enforcement
18	personnel.
19	SECTION 24. Section 42-72-5 of the General Laws in Chapter 42-72 entitled
20	"Department of Children, Youth and Families" is hereby amended to read as follows:
21	42-72-5. Powers and scope of activities.
22	(a) The department is the principal agency of the state to mobilize the human, physical,
23	and financial resources available to plan, develop, and evaluate a comprehensive and integrated
24	statewide program of services designed to ensure the opportunity for children to reach their full
25	potential. The services include prevention, early intervention, outreach, placement, care and
26	treatment, and after-care programs; provided, however, that the department notifies the state
27	police and cooperates with local police departments when it receives and/or investigates a
28	complaint of sexual assault on a minor and concludes that probable cause exists to support the
29	allegations(s). The department also serves as an advocate for the needs of children.
30	(b) To accomplish the purposes and duties, as set forth in this chapter, the director is
31	authorized and empowered:
32	(1) To establish those administrative and operational divisions of the department that the
33	director determines is in the best interests of fulfilling the purposes and duties of this chapter;
34	(2) To assign different tasks to staff members that the director determines best suit the
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1	purposes of this chapter;
2	(3) To establish plans and facilities for emergency treatment, relocation, and physical
3	custody of abused or neglected children that may include, but are not limited to,
4	homemaker/educator child-case aides, specialized foster-family programs, day-care facilities,
5	crisis teams, emergency parents, group homes for teenage parents, family centers within existing
6	community agencies, and counseling services;
7	(4) To establish, monitor, and evaluate protective services for children including, but not
8	limited to, purchase of services from private agencies and establishment of a policy and
9	procedure manual to standardize protective services;
10	(5) To plan and initiate primary- and secondary-treatment programs for abused and
11	neglected children;
12	(6) To evaluate the services of the department and to conduct periodic, comprehensive-
13	needs assessment;
14	(7) To license, approve, monitor, and evaluate all residential and non-residential child
15	care institutions, group homes, foster homes, and programs;
16	(8) To recruit and coordinate community resources, public and private;
17	(9) To promulgate rules and regulations concerning the confidentiality, disclosure, and
18	expungement of case records pertaining to matters under the jurisdiction of the department;
19	(10) To establish a minimum mandatory level of twenty (20) hours of training per year
20	and provide ongoing staff development for all staff; provided, however, all social workers hired
21	after June 15, 1991, within the department shall have a minimum of a bachelor's degree in social
22	work or a closely related field, and must be appointed from a valid, civil-service list;
23	(11) To establish procedures for reporting suspected child abuse and neglect pursuant to
24	chapter 11 of title 40;
25	(12) To promulgate all rules and regulations necessary for the execution of departmental
26	powers pursuant to the Administrative Procedures Act, chapter 35 of title 42;
27	(13) To provide and act as a clearinghouse for information, data, and other materials
28	relative to children;
29	(14) To initiate and carry out studies and analysis that will aid in solving local, regional,
30	and statewide problems concerning children;
31	(15) To represent and act on behalf of the state in connection with federal-grant programs
32	applicable to programs for children in the functional areas described in this chapter;
33	(16) To seek, accept, and otherwise take advantage of all federal aid available to the
34	department, and to assist other agencies of the state, local agencies, and community groups in
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1	taking advantage of all federal grants and subventions available for children;
2	(17) To review and coordinate those activities of agencies of the state, and of any
3	political subdivision of the state, that affect the full and fair utilization of community resources
4	for programs for children, and initiate programs that will help ensure utilization;
5	(18) To administer the pilot, juvenile-restitution program, including the overseeing and
6	coordinating of all local, community-based restitution programs, and the establishment of
7	procedures for the processing of payments to children performing community service;
8	(19) To adopt rules and regulations that:
9	(i) For the twelve-month (12) period beginning on October 1, 1983, and for each
10	subsequent twelve-month (12) period, establish specific goals as to the maximum number of
11	children who will remain in foster care for a period in excess of two (2) years; and
12	(ii) Are reasonably necessary to implement the child-welfare services and foster-care
13	programs;
14	(20) May establish and conduct seminars for the purpose of educating children regarding
15	sexual abuse;
16	(21) To establish fee schedules by regulations for the processing of requests from
17	adoption placement agencies for adoption studies, adoption study updates, and supervision related
18	to interstate and international adoptions. The fee shall equal the actual cost of the service(s)
19	rendered, but in no event shall the fee exceed two thousand dollars ($2,000);
20	(22) To be responsible for the education of all children who are placed, assigned, or
21	otherwise accommodated for residence by the department in a state-operated or -supported
22	community residence licensed by a Rhode Island state agency. In fulfilling this responsibility, the
23	department is authorized to enroll and pay for the education of students in the public schools or,
24	when necessary and appropriate, to itself provide education in accordance with the regulations of
25	the board of regents for elementary and secondary education either directly or through contract;
26	(23) To develop multidisciplinary service plans, in conjunction with the department of
27	health, at hospitals prior to the discharge of any drug-exposed babies. The plan requires the
28	development of a plan using all health-care professionals;
29	(24) To be responsible for the delivery of appropriate mental health services to seriously
30	emotionally disturbed children and children with functional developmental disabilities.
31	Appropriate mental health services may include hospitalization, placement in a residential
32	treatment facility, or treatment in a community-based setting. The department is charged with the
33	responsibility for developing the public policy and programs related to the needs of seriously
34	emotionally disturbed children and children with functional developmental disabilities;
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1	In fulfilling its responsibilities the department shall:
2	(i) Plan a diversified and comprehensive network of programs and services to meet the
3	needs of seriously emotionally disturbed children and children with functional developmental
4	disabilities;
5	(ii) Provide the overall management and supervision of the state program for seriously
6	emotionally disturbed children and children with functional developmental disabilities;
7	(iii) Promote the development of programs for preventing and controlling emotional or
8	behavioral disorders in children;
9	(iv) Coordinate the efforts of several state departments and agencies to meet the needs of
10	seriously emotionally disturbed children and children with functional developmental disabilities
11	and to work with private agencies serving those children;
12	(v) Promote the development of new resources for program implementation in providing
13	services to seriously emotionally disturbed children and children with functional developmental
14	disabilities.
15	The department shall adopt rules and regulations that are reasonably necessary to
16	implement a program of mental health services for seriously emotionally disturbed children.
17	Each community, as defined in chapter 7 of title 16, shall contribute to the department, at
18	least in accordance with rules and regulations to be adopted by the department, at least its average
19	per-pupil cost for special education for the year in which placement commences, as its share of
20	the cost of educational services furnished to a seriously emotionally disturbed child pursuant to
21	this section in a residential treatment program that includes the delivery of educational services.
22	"Seriously emotionally disturbed child" means any person under the age of eighteen (18)
23	years, or any person under the age of twenty-one (21) years, who began to receive services from
24	the department prior to attaining eighteen (18) years of age and has continuously received those
25	services thereafter; who has been diagnosed as having an emotional, behavioral, or mental
26	disorder under the current edition of the Diagnostic and Statistical Manual and that disability has
27	been ongoing for one year or more or has the potential of being ongoing for one year or more;
28	and the child is in need of multi-agency intervention; and the child is in an out-of-home
29	placement or is at risk of placement because of the disability.
30	A child with a "functional developmental disability" means any person under the age of
31	eighteen (18) years or any person under the age of twenty-one (21) years who began to receive
32	services from the department prior to attaining eighteen (18) years of age and has continuously
33	received those services thereafter.
34	The term "functional developmental disability" includes autism spectrum disorders and
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1	means a severe, chronic disability of a person that:
2	(A) Is attributable to a mental or physical impairment or combination of mental physical
3	impairments;
4	(B) Is manifested before the person attains age eighteen (18);
5	(C) Is likely to continue indefinitely;
6	(D) Results in age-appropriate, substantial, functional limitations in three (3) or more of
7	the following areas of major life activity:
8	(I) Self-care;
9	(II) Receptive and expressive language;
10	(III) Learning;
11	(IV) Mobility;
12	(V) Self direction;
13	(VI) Capacity for independent living; and
14	(VII) Economic self-sufficiency; and
15	(E) Reflects the person's need for a combination and sequence of special,
16	interdisciplinary, or generic care, treatment, or other services that are of life-long or extended
17	duration and are individually planned and coordinated.
18	Funding for these clients shall include funds that are transferred to the department of
19	human services as part of the managed health-care-program transfer. However, the expenditures
20	relating to these clients shall not be part of the department of human services' caseload estimated
21	for the semi-annual, caseload-estimating conference. The expenditures shall be accounted for
22	separately;
23	(25) To provide access to services to any person under the age of eighteen (18) years, or
24	any person under the age of twenty-one (21) years who began to receive child-welfare services
25	from the department prior to attaining eighteen (18) years of age, has continuously received those
26	services thereafter, and elects to continue to receive such services after attaining the age of
27	eighteen (18) years. The general assembly has included funding in the FY 2008 DCYF budget in
28	the amount of $10.5 million from all sources of funds and $6.0 million from general revenues to
29	provide a managed system to care for children serviced between 18 to 21 years of age. The
30	department shall manage this caseload to this level of funding;
31	(26) To initiate transition planning in cooperation with the department of behavioral
32	healthcare, developmental disabilities and hospitals and local school departments for any child
33	who receives services through DCYF; is seriously emotionally disturbed or developmentally
34	delayed pursuant to paragraph (b)(24)(v); and whose care may or shall be administered by the
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1	department of behavioral healthcare, developmental disabilities and hospitals after the age of
2	twenty-one (21) years; the transition planning shall commence at least twelve (12) months prior
3	to the person's twenty-first birthday and shall result in a collaborative plan submitted to the family
4	court by both the department of behavioral healthcare, developmental disabilities and hospitals
5	and the department of children, youth and families and shall require the approval of the court
6	prior to the dismissal of the abuse, neglect, dependency, or miscellaneous petition before the
7	child's twenty-first birthday;
8	(27) To develop and maintain, in collaboration with other state and private agencies, a
9	comprehensive continuum of care in this state for children in the care and custody of the
10	department or at risk of being in state care. This continuum of care should be family centered and
11	community based with the focus of maintaining children safely within their families or, when a
12	child cannot live at home, within as close proximity to home as possible based on the needs of the
13	child and resource availability. The continuum should include community-based prevention,
14	family support, and crisis-intervention services, as well as a full array of foster care and
15	residential services, including residential services designed to meet the needs of children who are
16	seriously emotionally disturbed, children who have a functional developmental disability, and
17	youth who have juvenile justice issues. The director shall make reasonable efforts to provide a
18	comprehensive continuum of care for children in the care and custody of DCYF, taking into
19	account the availability of public and private resources and financial appropriations and the
20	director shall submit an annual report to the general assembly as to the status of his or her efforts
21	in accordance with the provisions of § 42-72-4(b)(13);
22	(28) To administer funds under the John H. Chafee Foster Care Independence and
23	Educational and Training Voucher (ETV) Programs of Title IV-E of the Social Security Act [42
24	U.S.C. § 677] and the DCYF higher education opportunity grant program as outlined in chapter
25	72.8 of title 42, in accordance with rules and regulations as promulgated by the director of the
26	department; and
27	(29) To process nationwide, criminal-record checks on prospective foster parents and any
28	household member age 18 or older, prospective adoptive parents and any household member age
29	18 and older, operators of child-care facilities, persons seeking to act as volunteer court-appointed
30	special advocates, persons seeking employment in a child-care facility or at the training school
31	for youth or on behalf of any person seeking employment at DCYF, who are required to submit to
32	nationwide, criminal-background checks as a matter of law.
33	(c) In order to assist in the discharge of his or her duties, the director may request from
34	any agency of the state information pertinent to the affairs and problems of children.
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1	SECTION 25. The title of Chapter 42-72.1 of the General Laws entitled "Licensing and
2	Monitoring of Childcare Providers and Child-Placing Agencies" is hereby amended to read as
3	follows:
4	CHAPTER 42-72.1
5	LICENSING AND MONITORING OF CHILDCARE PROVIDERS AND CHILD-PLACING
6	AGENCIES
7	CHAPTER 42-72.1
8	LICENSING AND MONITORING OF CHILD PLACING AGENCIES, CHILD CARING
9	AGENCIES, FOSTER AND ADOPTIVE HOMES, AND CHILDREN'S BEHAVIORAL
10	HEALTH PROGRAMS
11	SECTION 26. Sections 42-72.1-1, 42-72.1-2, 42-72.1-3, 42-72.1-4, 42-72.1-5, 42-72.1-6
12	and 42-72.1-7 of the General Laws in Chapter 42-72.1 entitled "Licensing and Monitoring of
13	Childcare Providers and Child-Placing Agencies" are hereby amended to read as follows:
14	42-72.1-1. Statement of purpose.
15	(a) The director of the department of children, youth, and families, pursuant to § 42-72-
16	5(b)(7) and § 42-72-5(b)(24), shall establish within the department a unit to license and monitor
17	child care providers and child-placing agencies, child caring agencies, foster and adoptive homes,
18	and children’s behavioral health programs to protect the health, safety and well being of children
19	temporarily separated from or being cared for away from their natural families.
20	(b) Services for children requiring licensure under this chapter shall include all child care
21	providers and child placing agencies, child caring agencies, foster and adoptive homes, and
22	children’s behavioral health programs which offer services within the state, except as defined in §
23	42-72.1-5.
24	42-72.1-2. Definitions.
25	As used in this chapter:
26	(1) "Administrator of licensing" means the director of the licensing unit (or his/her
27	designee) that carries out the provisions of this chapter, hereafter referred to as the
28	"administrator".
29	(2) "Applicant" means a child-placing agency, child caring agencies, foster and adoptive
30	homes, and children’s behavioral health programs or childcare provider that applies for a license
31	to operate.
32	(3) "Child" means any person less than eighteen (18) years of age; provided, that a child
33	over eighteen (18) years of age who is nevertheless subject to continuing jurisdiction of the
34	family court, pursuant to chapter 1 of title 14, or defined as emotionally disturbed according to
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1	chapter 7 of title 40.1, shall be considered a child for the purposes of this chapter.
2	(4) "Childcare provider" means a person or agency, which offers residential or
3	nonresidential care and/or treatment for a child outside of his/her natural home.
4	(5) "Child day care or childcare" means daily care and/or supervision offered
5	commercially to the public for any part of a twenty-four (24) hour day to children away from
6	their homes.
7	(6) "Child day-care center or childcare center" means any person, firm, corporation,
8	association, or agency who, on a regular or irregular basis, receives any child under the age of
9	sixteen (16) years, for the purpose of care and/or supervision, not in a home or residence, apart
10	from the child's parent or guardian for any part of a twenty-four (24) hour day irrespective of
11	compensation or reward. It shall include childcare programs that are offered to employees at the
12	worksite. It does not include nursery schools or other programs of educational services subject to
13	approval by the commissioner of elementary and secondary education.
14	(4) “Child Caring Agency” means any facility that provides residential treatment,
15	residential group home care or semi-independent living, or residential assessment and
16	stabilization.
17	(7)(5) "Child-placing agency" means any private or public agency, which receives
18	children for placement into independent living arrangements, supervised apartment living,
19	residential group care facilities, family foster homes, or adoptive homes.
20	(6) “Children’s Behavioral Health Program” means any private or public agency which
21	provides behavioral health services to children.
22	(8)(7) "Department" means the department of children, youth and families (DCYF).
23	(9)(8) "Director" means the director of the department of children, youth and families, or
24	the director's designee.
25	(9) “Foster and Adoptive Homes” means one or more adults who are licensed to provide
26	foster or adoptive caregiving in a family-based home setting.
27	(10) "Family day-care home" means any home other than the child's home in which child
28	day care in lieu of parental care and/or supervision is offered at the same time to four (4) or more
29	children who are not relatives of the care giver.
30	(11) "Group family day-care home" means a residence occupied by an individual of at
31	least twenty-one (21) years of age who provides care for not less than nine (9) and not more than
32	twelve (12) children, with the assistance of one or more approved adults, for any part of a twenty-
33	four (24) hour day. The maximum of twelve (12) children shall include children under six (6)
34	years of age who are living in the home, school-age children under the age of twelve (12) years
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1	whether they are living in the home or are received for care, and children related to the provider
2	who are received for care. These programs shall be subject to yearly licensing as addressed in this
3	chapter and shall comply with all applicable state and local fire, health, and zoning regulations.
4	(12)(10) "Licensee" means any person, firm, corporation, association, or agency, which
5	holds a valid license under this chapter.
6	(13)(11) "Regulation" means any requirement for licensure, promulgated pursuant to this
7	chapter having the force of law.
8	(14)(12) "Related" means any of the following relationships, by marriage, blood or
9	adoption, even following the death or divorce of a natural parent: parent, grandparent, brother,
10	sister, aunt, uncle, and first cousin. In a prosecution under this chapter or of any law relating
11	thereto, a defendant who relies for a defense upon the relationship of any child to him or herself,
12	the defendant shall have the burden of proof as to the relationship.
13	42-72.1-3. Powers and scope of activities.
14	(a) The department shall issue, deny, and revoke licenses for, and monitor the operation
15	of, facilities and programs by child placing agencies, child caring agencies, foster and adoptive
16	homes, and children’s behavioral health programs and child care providers, as defined in § 42-
17	72.1-2.
18	(b) The department shall adopt, amend, and rescind regulations in accordance with this
19	chapter and implement its provisions. The regulations shall be promulgated and become effective
20	in accordance with the provisions of the Administrative Procedures Act, chapter 35 of this title.
21	(c) The department through its licensing unit shall administer and manage the regulations
22	pertaining to the licensing and monitoring of those agencies, and shall exercise all statutory and
23	administrative powers necessary to carry out its functions.
24	(d) The administrator shall investigate complaints of noncompliance, and shall take
25	licensing action as required.
26	(e) Regulations formulated pursuant to the foregoing authority shall include, but need not
27	be limited to, the following:
28	(1) Financial, administrative and organizational ability, and stability of the applicant;
29	(2) Compliance with specific fire and safety codes and health regulations;
30	(3) Character, health suitability, qualifications of child-placing agencies, child caring
31	agencies, foster and adoptive homes, and children’s behavioral health programs childcare
32	providers;
33	(4) Staff/child ratios and workload assignments of staff providing care or supervision to
34	children;
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1	(5) Type and content of records or documents that must be maintained to collect and
2	retain information for the planning and caring for children;
3	(6) Procedures and practices regarding basic childcare and placing services to ensure
4	protection to the child regarding the manner and appropriateness of placement;
5	(7) Service to families of children in care;
6	(8) Program activities, including components related to physical growth, social,
7	emotional, educational, and recreational activities, social services and habilitative or rehabilitative
8	treatment; and
9	(9) Investigation of previous employment, criminal record check and department records
10	check.; and
11	(10) Immunization and testing requirements for communicable diseases, including, but
12	not limited to, tuberculosis, of childcare providers and children at any child day-care center or
13	family day-care home as is specified in regulations promulgated by the director of the department
14	of health. Notwithstanding the foregoing, all licensing and monitoring authority shall remain with
15	the department of children, youth and families.
16	(f) The administrator may:
17	(1) Prescribe any forms for reports, statements, notices, and other documents deemed
18	necessary;
19	(2) Prepare and publish manuals and guides explaining this chapter and the regulations to
20	facilitate compliance with and enforcement of the regulations;
21	(3) Prepare reports and studies to advance the purpose of this chapter;
22	(4) Provide consultation and technical assistance, as requested, to assist licensees in
23	maintaining compliance; and
24	(5) Refer to the advisory council for children and families for advice and consultation on
25	licensing matters.
26	(g) The department may promulgate rules and regulations for the establishment of child
27	day care centers located on the second floor.
28	(h)(g) When the department is otherwise unsuccessful in remedying noncompliance with
29	the provisions of this chapter and the regulations promulgated under it, it may petition the family
30	court for an order enjoining the noncompliance or for any order that equity and justice may
31	require.
32	(i) The department shall collaborate with the departments of human services, elementary
33	and secondary education, and health to provide monitoring, mentoring, training, technical
34	assistance, and other services which are necessary and appropriate to improving the quality of
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1	childcare offered by childcare providers who are certified, licensed, or approved by the
2	department or the department of elementary and secondary education or who are seeking
3	certification, licensure, or approval pursuant to this chapter or § 16-48-2, including non-English
4	speaking providers.
5	(j)(h) The department shall adopt, amend, and rescind regulations in the same manner as
6	set forth above in order to permit the placement of a pregnant minor in a group residential facility
7	which provides a shelter for pregnant adults as its sole purpose.
8	42-72.1-4. License required.
9	(a) No person shall provide continuing full-time care for a child apart from the child's
10	parents, or receive or place children in child care services, including day care arrangements,
11	without a license issued pursuant to this chapter. This requirement does not apply to a person
12	related by blood, marriage, guardianship or adoption to the child. Licensing requirements for
13	child day care services are governed by §42-12.5-4 et seq. , unless that arrangement is for the
14	purposes of day care.
15	(b) The licensing requirement does not apply to shelter operations for parents with
16	children, boarding schools, recreation camps, nursing homes, hospitals, maternity residences, and
17	centers for developmentally disabled children.
18	(c) No person, firm, corporation, association, or agency, other than a parent shall place,
19	offer to place, or assist in the placement of a child in Rhode Island, for the purpose of adoption,
20	unless the person, firm, corporation, or agency shall have been licensed for those purposes by the
21	department or is a governmental child-placing agency, and that license shall not have been
22	rescinded at the time of placement of a child for the purpose of adoption. The above does not
23	apply when a person, firm, corporation, association, or agency places, offers to place, or assists in
24	the placement of a child in Rhode Island, for the purpose of adoption through a child-placement
25	agency duly licensed for child-placement in the state or through the department of children,
26	youth, and families, nor when the child is placed with a father, sister, brother, aunt, uncle,
27	grandparent, or stepparent of the child.
28	(d) No parent shall assign or otherwise transfer to another not related to him or her by
29	blood or marriage, his or her rights or duties with respect to the permanent care and custody of his
30	or her child under eighteen (18) years of age unless duly authorized so to do by an order or decree
31	of court.
32	(e) No person shall bring or send into the state any child for the purpose of placing him or
33	her out, or procuring his or her adoption, or placing him or her in a foster home without first
34	obtaining the written consent of the director, and that person shall conform to the rules of the
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1	director and comply with the provisions of the Interstate Compact on the Placement of Children,
2	chapter 15 of title 40.
3	(f) No person, firm, corporation, association, or agency shall operate a family day care
4	home without a registration certificate issued by the department.
5	(fg) No state, county, city, or political subdivision shall operate a child placing or child
6	care agency, child caring agency, foster and adoptive home, or children’s behavioral health
7	program or facility without a license issued pursuant to this chapter.
8	(gh) No person shall be exempt from a required license by reason of public or private,
9	sectarian, non-sectarian, court-operated child placement program child-care program, child caring
10	agency, foster and adoptive home, or children’s behavioral health program for profit or non-profit
11	status, or by any other reason of funding, sponsorship, or affiliation.
12	42-72.1-5. General licensing provisions.
13	The following general licensing provisions shall apply:
14	(1) A license issued under this chapter is not transferable and applies only to the licensee
15	and the location stated in the application and remains the property of the department. A license
16	shall be publicly displayed. A license shall be valid for one year from the date of issue and upon
17	continuing compliance with the regulations, except that a certificate issued to a family day care
18	home, a license issued to a foster parent, and/or a license issued to a program for mental health
19	services for "seriously emotionally disturbed children" as defined in § 42-72-5(b)(24) shall be
20	valid for two (2) years from the date of issue.
21	(2) Every license application issued pursuant to § 42-72.1-4 shall be accompanied by a
22	nonrefundable application fee paid to the State of Rhode Island as follows:
23	(a) Adoption and foster care child placing agency license- one thousand dollars ($1000);
24	(b) Child day care center license- five hundred dollars ($500);
25	(c) Group family day care home license -- two hundred and fifty dollars ($250);
26	(d) Family day care home license- one hundred dollars ($100).
27	(3) All fees collected by the State pursuant to paragraph (2) of this section shall be
28	deposited by the general treasurer as general revenues.
29	(4) A licensee shall comply with applicable state fire and health safety standards.
30	(5) The department may grant a provisional license to an applicant, excluding any foster
31	parent applicant, who is not able to demonstrate compliance with all of the regulations because
32	the program or residence is not in full operation; however, the applicant must meet all regulations
33	that can be met in the opinion of the administrator before the program is fully operational. The
34	provisional license shall be granted for a limited period not to exceed six (6) months and shall be
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1	subject to review every three (3) months.
2	(6) The department may grant a probationary license to a licensee who is temporarily
3	unable to comply with a rule or rules when the noncompliance does not present an immediate
4	threat to the health and well-being of the children, and when the licensee has obtained a plan
5	approved by the administrator to correct the areas of noncompliance within the probationary
6	period. A probationary license shall be issued for up to twelve (12) months; it may be extended
7	for an additional six (6) months at the discretion of the administrator. A probationary license that
8	states the conditions of probation may be issued by the administrator at any time for due cause.
9	Any prior existing license is invalidated when a probationary license is issued. When the
10	probationary license expires, the administrator may reinstate the original license to the end of its
11	term, issue a new license or revoke the license.
12	(7) The administrator will establish criteria and procedure for granting variances as part
13	of the regulations.
14	(8) The above exceptions (probationary and provisional licensing and variances) do not
15	apply to and shall not be deemed to constitute any variance from state fire and health safety
16	standards. However, if a request for a variance of fire inspection deficiencies has been submitted
17	to the fire safety code board of appeal and review, DCYF may grant a provisional license to
18	terminate no later than thirty (30) days following the board's decision on said variance.
19	(9) A license under this chapter shall be granted to a school age child day care program
20	without the necessity for a separate fire, building, or radon inspection, when said child day care
21	program is conducted at a Rhode Island elementary or secondary school which has already been
22	found in compliance with said inspections, provided that an applicant complies with all other
23	provisions of DCYF regulations, or has been granted appropriate variances by the department.
24	42-72.1-6. Violations, suspensions and revocations of license.
25	(a) When a licensee violates the terms of the license, the provisions of this chapter, or any
26	regulation thereunder, the department may pursue the administrative remedies herein provided, in
27	addition to other civil or criminal remedies according to the general laws.
28	(b) After notice and hearing, as provided by the Administrative Procedures Act, chapter
29	35 of this title, the administrator may revoke the license, or suspend the license for a period not
30	exceeding six (6) months.
31	(c) During a suspension, the agency, facility or program shall cease operation.
32	(d) To end a suspension, the licensee shall, within thirty (30) days of the notice of
33	suspension, submit a plan of corrective action to the administrator. The plan shall outline the
34	steps and timetables for immediate correction of the areas of noncompliance and is subject to the
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1	approval of the administrator.
2	(e) At the end of the suspension, the administrator may reinstate the license for the term
3	of the original license, revoke the license, issue a new license, or deny a reapplication.
4	(f) Upon revocation, the licensed agency, program or facility shall cease operation. The
5	licensee whose license has been revoked may not apply for a similar license within a three (3)
6	year period from the date of revocation.
7	(g) Except in those instances wherein there is a determination that there exists a danger to
8	the public health, safety, or welfare or there is a determination that the childcare provider has
9	committed a serious breach of State law, orders, or regulation, the director shall utilize
10	progressive penalties for noncompliance of any rule, regulation or order relating to childcare
11	providers. Progressive penalties could include written notice of noncompliance, education and
12	training, suspending enrollment to the program, assessing fines, suspension of license, and
13	revocation of license.
14	42-72.1-7. Penalties for violations.
15	(a) Any person who violates any of the provisions of this chapter, or any regulations
16	issued pursuant to this chapter, or who shall intentionally make any false statement or reports to
17	the director with reference to the matters contained herein, shall, upon conviction for the first
18	offense, be imprisoned for a term not exceeding six (6) months or be fined not exceeding five
19	hundred dollars ($500), or both, and for a second or subsequent offense, shall be imprisoned for a
20	term not exceeding one year or be fined not exceeding one thousand dollars ($1000), or both the
21	fine and imprisonment.
22	(b) Anyone who maintains or conducts a program, agency, or facility without first having
23	obtained a license, or who maintains or conducts a program, agency, or facility after a license has
24	been revoked or suspended, or who shall refuse to permit a reasonable inspection and
25	examination of a program, agency, or facility, shall be guilty of a misdemeanor and, upon
26	conviction, shall be fined not more than five hundred dollars ($500) for each week that the
27	program, agency, or facility shall have been maintained without a license or for each refusal to
28	permit inspection and examination by the director.
29	(c) Any individual, firm, corporation, or other entity who maintains or conducts a family
30	day care home without first having obtained a registration certificate for the home, shall be guilty
31	of a misdemeanor and, upon conviction, shall be fined not less than twenty-five dollars ($25.00)
32	nor more than one hundred dollars ($100) for each week that the home shall have been
33	maintained without a valid registration certificate.
34	(c) The department shall refer any violations to the attorney general's office for
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1	prosecution.
2	SECTION 27. Section 42-72.1-8 of the General Laws in Chapter 42-72.1 entitled
3	"Licensing and Monitoring of Childcare Providers and Child-Placing Agencies" is hereby
4	repealed.
5	42-72.1-8. Open door policy.
6	There shall be an open door policy permitting any custodial parent or legal guardian to
7	have access to a day care facility for any program when their child is in attendance.
8	SECTION 28. Section 42-72.11-1 of the General Laws in Chapter 42-72.11 entitled
9	"Administrative Penalties for Childcare Licensing Violations" is hereby amended to read as
10	follows:
11	42-72.11-1. Definitions.
12	As used in this chapter, the following words, unless the context clearly requires
13	otherwise, shall have the following meanings:
14	(1) "Administrative penalty" means a monetary penalty not to exceed the civil penalty
15	specified by statute or, where not specified by statute, an amount not to exceed five hundred
16	dollars ($500).
17	(2) "Director" means the director of the department of children, youth and families
18	human services or his or her duly authorized agent.
19	(3) "Person" means any public or private corporation, individual, partnership, association,
20	or other entity that is licensed as a child day care center, family child day care home, group
21	family child day care home or any officer, employee or agent thereof.
22	(4) "Citation" means a notice of an assessment of an administrative penalty issued by the
23	director or his or her duly authorized agent.
24	(5) “Department” means the department of human services.
25	SECTION 29. Chapter 42-154 of the General Laws entitled "Division of Elderly Affairs"
26	is hereby repealed in its entirety.
27	42-154-1. Establishment of division -- Director.
28	There is hereby established within the executive branch of state government and the
29	department of human services a division of elderly affairs, effective July 1, 2011. The head of the
30	division shall be the director of the division of elderly affairs, who shall be a person qualified
31	through and by training and experience to perform the duties of the division. The director shall be
32	in the unclassified service.
33	42-154-2. Transfer of powers and duties from the department of elderly affairs.
34	There is hereby transferred to the division of elderly affairs within the department of
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1	human services those powers and duties formerly administered by the department of elderly
2	affairs as provided for in chapters 42-66 ("Elderly Affairs Department") through 42-66.10 ("Elder
3	Health Insurance Consumer Assistance Program"), inclusive, and any other applicable provisions
4	of the general laws; provided, however, in order that there is no interruption in the functions of
5	elderly affairs and/or human services the transfer may be postponed until such time as determined
6	by the secretary of the office of health and human services that the transfer may best be put into
7	force and effect; provided, further, the governor shall submit to the 2012 Assembly any
8	recommended statutory changes necessary to facilitate the merger.
9	42-154-3. Construction of references.
10	Effective July 1, 2011, all references in the general laws to the department of elderly
11	affairs established pursuant to chapter 42-66 ("Elderly Affairs Department") shall be deemed to
12	mean and refer to the division of elderly affairs within the department of human services as set
13	forth in this chapter.
14	SECTION 30. Section 46-15.1-19.1 of the General Laws in Chapter 46-15.1 entitled
15	"Water Supply Facilities" is hereby amended to read as follows:
16	46-15.1-19.1. Big River Reservoir -- Administration.
17	The Rhode Island water resources board, established pursuant to this chapter and chapter
18	15 of this title, department of administration shall be the only designated agency which will
19	administer those lands acquired for the Big River Reservoir as established under section 23 of
20	chapter 133 of the Public Laws of 1964. The director of the department of environmental
21	management and the director's authorized agents, employees, and designees shall, together with
22	the water resources board department of administration in accordance with the Big River
23	management area land use plan for the lands, protect the natural resources of the Big River
24	Reservoir lands. The lands of the Big River Reservoir are subject to enforcement authority of the
25	department of environmental management, as provided for in chapter 17.1 of title 42, and as
26	provided for in title 20 of the General Laws.
27	SECTION 31. Effective Date. Sections 1 and 2 of this Article will become effective
28	October 1, 2019. All other section in this Article will become effective upon passage.
29	ARTICLE 5
30	RELATING TO TAXES, REVENUES AND FEES
31	SECTION 1. Effective October 1, 2019, section 11-47-39 of the General Laws in Chapter
32	11-47 entitled "Weapons" is hereby amended to read as follows:
33	11-47-39. Issuance and conditions of dealer's license.
34	The duly constituted licensing authorities of any city, town, or political subdivision of
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1	this state may grant licenses in form prescribed by the attorney general effective for not more than
2	one year from date of issue permitting the licensee to sell pistols and revolvers at retail within this
3	state, subject to the following conditions in addition to those specified in §§ 11-47-35 and 11-47-
4	36, for breach of any of which the license shall be forfeited and the licensee subject to
5	punishment as provided in this chapter:
6	(1) The business shall be carried on only in the building designated in the license.
7	(2) The license or a copy of it, certified by the issuing authority, shall be displayed on the
8	premises where it can easily be read.
9	(3) No pistol or revolver shall be sold in violation of any provision of this chapter, nor
10	shall a pistol or revolver be sold under any circumstances unless the purchaser is personally
11	known to the seller or shall present clear evidence of his or her identity.
12	(4) The fee for issuing the license shall be five dollars ($5.00). The fee charged for the
13	issuing of the license shall be applied for the use and benefit of the city or town.
14	(5) The licensee has demonstrated compliance with the division of taxation, department
15	of revenue, as determined by its tax administrator, carried out and defined by promulgated rules
16	and regulations issued by the division of taxation.
17	SECTION 2. Section 19-14-4 of the General Laws in Chapter 19-14 entitled "Licensed
18	Activities" is hereby amended to read as follows:
19	19-14-4. Annual fee.
20	(a) Each licensee shall pay an annual license fee as follows:
21	(1) Each small-loan lender license and each branch certificate, the sum of five hundred
22	fifty dollars ($550);
23	(2) Each loan-broker license and each branch certificate, the sum of five hundred fifty
24	dollars ($550);
25	(3) Each lender license and each branch certificate, the sum of one thousand one hundred
26	dollars ($1,100);
27	(4) Each sale of checks license, the sum of three hundred sixty dollars ($360);
28	(5) Each check cashing license, the sum of three hundred sixty dollars ($360);
29	(6) Each electronic money transfer license, the sum of three hundred sixty dollars ($360);
30	(7) Each registration to provide debt-management services, the sum of two hundred
31	dollars ($200);
32	(8) Each mortgage-loan originator license, the sum of one four hundred dollars ($100
33	400); and
34	(9) Each third-party loan-servicer license and each branch certificate, the sum of one
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1	thousand one hundred dollars ($1,100).
2	(b) Any licensee who shall not pay the annual fee by December 31 of each year shall be
3	subject to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum of seven
4	hundred fifty dollars ($750). The penalty shall be paid to the director to, and for the use of, the
5	state. The penalty may be waived for good cause by the director, or the director's designee, upon
6	written request.
7	SECTION 3. Section 19-14.9-12 of the General Laws in Chapter 19-14.9 entitled "Rhode
8	Island Fair Debt Collection Practices Act" is hereby amended to read as follows:
9	19-14.9-12. Registration required.
10	(1) After July 1, 2008, no person shall engage within this state in the business of a debt
11	collector, or engage in soliciting the right to collect or receive payment for another of an account,
12	bill, or other indebtedness, or advertise for or solicit in print the right to collect or receive
13	payment for another of an account, bill, or other indebtedness, without first registering with the
14	director, or the director's designee.
15	(2) The application for registration shall be in writing; shall contain information as the
16	director may determine; and shall be accompanied by a registration fee of one five hundred
17	dollars ($100 500).
18	(3) The registration shall be for a period of one year. Each registration shall plainly state
19	the name of the registrant and the city or town with the name of the street and number, if any, of
20	the place where the business is to be carried on; provided that the business shall at all times be
21	conducted in the name of the registrant as it appears on the registration.
22	(4) No person registered to act within this state as a debt collector shall do so under any
23	other name or at any other place of business than that named in the registration. The registration
24	shall be for a single location but may, with notification to the director, be moved to a different
25	location. A registration shall not be transferable or assignable.
26	(5) This section shall not apply:
27	(a) To the servicer of a debt by a mortgage; or
28	(b) To any debt collector located out of this state, provided that the debt collector:
29	(1) Is collecting debts on behalf of an out-of-state creditor for a debt that was incurred out
30	of state; and
31	(2) Only collects debts in this state using interstate communication methods, including
32	telephone, facsimile, or mail.
33	(c) To any regulated institution as defined under § 19-1-1, national banking association,
34	federal savings bank, federal savings and loan association, federal credit union, or any bank, trust
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1	company, savings bank, savings and loan association, or credit union organized under the laws of
2	this state, or any other state of the United States, or any subsidiary of the above; but except as
3	provided herein, this section shall apply to a subsidiary or affiliate, as defined by the director, of
4	an exempted entity and of a bank holding company established in accordance with state or federal
5	law.
6	SECTION 4. Sections 23-1-55, 23-1-56, 23-1-57 and 23-1-58 of the General Laws in
7	Chapter 23-1 entitled "Department of Health" are hereby repealed.
8	23-1-55. Electronic nicotine delivery system distributor, and dealer licenses required
9	-- Definitions.
10	Definitions. Whenever used in §§ 23-1-56 to 23-1-58, unless the context requires
11	otherwise:
12	(1) "Dealer" means any person, whether located within or outside of this state, who sells
13	or distributes electronic nicotine-delivery system products to a consumer in this state;
14	(2) "Distributor" means any person:
15	(i) Whether located within or outside of this state, other than a dealer, who sells or
16	distributes electronic nicotine-delivery system products within or into this state. Such term shall
17	not include any electronic nicotine-delivery system products manufacturer, export warehouse
18	proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-
19	delivery system products in this state only to licensed distributors or to an export warehouse
20	proprietor or another manufacturer with a valid permit;
21	(ii) Selling electronic nicotine-delivery system products directly to consumers in this state
22	by means of at least twenty-five (25) electronic nicotine-delivery system product vending
23	machines;
24	(iii) Engaged in this state in the business of manufacturing electronic nicotine-delivery
25	system products or any person engaged in the business of selling electronic nicotine-delivery
26	system products to dealers, or to other persons, for the purpose of resale only; provided that
27	seventy-five percent (75%) of all electronic nicotine-delivery system products sold by that person
28	in this state are sold to dealers or other persons for resale and selling electronic nicotine-delivery
29	system products directly to at least forty (40) dealers or other persons for resale; or
30	(iv) Maintaining one or more regular places of business in this state for that purpose;
31	provided, that seventy-five percent (75%) of the sold electronic nicotine-delivery system products
32	are purchased directly from the manufacturer and selling electronic nicotine-delivery system
33	products directly to at least forty (40) dealers or other persons for resale;
34	(3) "Electronic nicotine-delivery system" means the products as defined in § 11-9-
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1	13.4(15).
2	23-1-56. License.
3	(a) Each person engaging in the business of selling electronic nicotine-delivery system
4	products in the state, including any distributor or dealer, shall secure a license annually from the
5	department before engaging in that business or continuing to engage in it. A separate application
6	and license is required for each place of business operated by a distributor or dealer. If the
7	applicant for a license does not have a place of business in this state, the license shall be issued
8	for such applicant's principal place of business, wherever located. A licensee shall notify the
9	department within thirty (30) days in the event that it changes its principal place of business. A
10	separate license is required for each class of business if the applicant is engaged in more than one
11	of the activities required to be licensed by this section. No person shall maintain or operate, or
12	cause to be operated, a vending machine for electronic nicotine-delivery systems without
13	procuring a dealer's license for each machine.
14	(b) The director shall have authority to set a reasonable fee not to exceed twenty-five
15	dollars ($25.00) for the issuance of the license.
16	(c) Each issued license shall be prominently displayed on the premises, if any, covered by
17	the license.
18	(d) The director shall create and maintain a website setting forth the identity of all
19	licensed persons under this section, itemized by type of license possessed, and shall update the
20	site no less frequently than six (6) times per year.
21	(e) A manufacturer or importer may sell or distribute electronic nicotine-delivery systems
22	to a person located or doing business within the state only if such person is a licensed distributor.
23	An importer may obtain electronic nicotine-delivery systems only from a licensed manufacturer.
24	A distributor may sell or distribute electronic nicotine-delivery systems to a person located or
25	doing business within this state only if such person is a licensed distributor or dealer. A
26	distributor may obtain electronic nicotine-delivery systems only from a licensed manufacturer,
27	importer, or distributor. A dealer may obtain electronic nicotine-delivery systems only from a
28	licensed distributor.
29	(f)(1) No license under this chapter may be granted, maintained, or renewed if the
30	applicant, or any combination of persons owning directly or indirectly any interests in the
31	applicant:
32	(i) Is delinquent in any tax filings for one month or more; or
33	(ii) Had a license under this chapter revoked within the past two (2) years.
34	(2) No person shall apply for a new license, or renewal of a license and no license shall
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1	be issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to
2	any license held by that person have been paid.
3	(3) No license shall be issued relating to a business at any specific location until all prior
4	licenses relating to that location have been officially terminated and all fines, fees, or charges
5	relating to the prior licenses have been paid or otherwise resolved or if the director has found that
6	the person applying for the new license is not acting as an agent for the prior licensee who is
7	subject to any such related fines, fees, or charges that are still due. Evidence of such agency status
8	includes, but is not limited to, a direct familial relationship and/or employment, contractual, or
9	other formal financial or business relationship with the prior licensee.
10	(4) No person shall apply for a new license pertaining to a specific location in order to
11	evade payment of any fines, fees, or other charges relating to a prior license for that location.
12	(5) No new license shall be issued for a business at a specific location for which a license
13	has already issued unless there is a bona fide, good-faith change in ownership of the business at
14	that location.
15	(6) No license or permit shall be issued, renewed or maintained for any person, including
16	the owners of the business being licensed, who has been convicted of violating any criminal law
17	relating to tobacco products and/or electronic nicotine-delivery system products, the payment of
18	taxes, or fraud, or has been ordered to pay civil fines of more than twenty-five thousand dollars
19	($25,000) for violations of any civil law relating to tobacco products and/or electronic nicotine-
20	delivery system products, the payment of taxes, or fraud.
21	23-1-57. Penalties for unlicensed business.
22	Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,
23	electronic nicotine-delivery system products without a license as provided in § 23-1-56, shall be
24	fined in accordance with the provisions of, and the penalties contained in, § 23-1-58.
25	23-1-58. Penalty for operating without a dealer license.
26	(a) Any individual or business who violates this chapter by selling or conveying an
27	electronic nicotine-delivery system product without a retail license shall be cited for that violation
28	and shall be required to appear in district court for a hearing on the citation.
29	(b) Any individual or business cited for a violation hereunder shall:
30	(1) Either post a five hundred dollar ($500) bond with the district court within ten (10)
31	days of the citation; or
32	(2) Sign and accept the citation indicating a promise to appear in court.
33	(c) An individual or business who or that has accepted the citation may:
34	(1) Pay the five hundred dollar ($500) fine, either by mail or in person, within ten (10)
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1	days after receiving the citation; or
2	(2) If that individual or business has posted a bond, forfeit the bond by not appearing at
3	the scheduled hearing. If the individual or business cited pays the five hundred dollar ($500) fine
4	or forfeits the bond, that individual or business is deemed to have admitted the cited violation and
5	to have waived the right to a hearing on the issue of commission on the violation.
6	(d) The court, after a hearing on a citation, shall make a determination as to whether a
7	violation has been committed. If it is established that the violation did occur, the court shall
8	impose a five hundred dollar ($500) fine in addition to any court costs or fees.
9	SECTION 5. Sections 28-43-8.1 and 28-43-29 of the General Laws in Chapter 28-43
10	entitled "Employment Security - Contributions" are hereby amended to read as follows:
11	28-43-8.1. Time and manner of payment of employer contributions.
12	Contributions and assessments required under this chapter for each year shall be paid by
13	each employer in the manner and at the times that the director may prescribe.
14	28-43-29. Liability for contributions and election of reimbursement.
15	(a) Any nonprofit organization or governmental entity which is or becomes subject to
16	chapters 42 -- 44 of this title on or after January 1, 1978, shall pay contributions under the
17	provisions of chapters 42 -- 44 of this title, unless it elects, in accordance with this section, to pay
18	to the director for the employment security fund the full amount of regular benefits paid plus the
19	full amount of the extended benefits paid, less any federal payments to the state under § 204 of
20	the Federal-State Extended Unemployment Compensation Act of 1970, that are attributable to
21	service in the employ of that nonprofit organization or governmental entity to individuals for
22	weeks of unemployment which begin during the effective period of that election; provided, that
23	for weeks of unemployment beginning on or after January 1, 1979, governmental entities which
24	have elected reimbursement shall be responsible for reimbursing the employment security fund
25	for the full amount of extended benefits paid that is attributable to service in the employ of those
26	entities.
27	(b) Any nonprofit organization or governmental entity which is or becomes subject to
28	chapters 42 -- 44 of this title on January 1, 1978, may elect to become liable for payments in lieu
29	of contributions for a period of not less than the 1978 tax year and the next ensuing tax year
30	provided it files with the director a written notice of its election within the thirty (30) day period
31	immediately following January 1, 1978.
32	(c) Any nonprofit organization or governmental entity which becomes subject to chapters
33	42 -- 44 of this title after January 1, 1978, may elect to become liable for payments in lieu of
34	contributions for a period of not less than the balance of the tax year beginning with the date on
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1	which that subjectivity begins and the next ensuing tax year by filing a written notice of its
2	election with the director not later than thirty (30) days immediately following the date of the
3	determination of that subjectivity.
4	(d) Any nonprofit organization or governmental entity which makes an election in
5	accordance with subsection (b) or (c) of this section will continue to be liable for payments in lieu
6	of contributions until it files with the director a written notice terminating its election not later
7	than thirty (30) days prior to the beginning of the tax year for which that termination shall first be
8	effective. The nonprofit organization or governmental entity shall thereafter be liable for the
9	payment of contributions for not less than that tax year and the next ensuing tax year before
10	another election can be exercised.
11	(e) Any nonprofit organization or governmental entity which has been paying
12	contributions under chapters 42 -- 44 of this title for a period subsequent to January 1, 1978, may
13	change to a reimbursable basis by filing with the director not later than thirty (30) days prior to
14	the beginning of any tax year a written notice of election to become liable for payments in lieu of
15	contributions. That election shall not be terminable by the organization or entity for that tax year
16	and for the next ensuing tax year.
17	(f) The director may for good cause extend the period within which a notice of election,
18	or a notice of termination, must be filed and may permit an election to be retroactive but not any
19	earlier than with respect to benefits paid on or after January 1, 1978.
20	(g) The director, in accordance with any procedures that he or she may prescribe, shall
21	notify each nonprofit organization or governmental entity of any determination which may be
22	made of its status as an employer and of the effective date of any election which it makes and of
23	any termination of that election. Any determination shall be conclusive on the organization or the
24	entity unless within fifteen (15) days after notice of the determination has been mailed or
25	otherwise delivered to it, an appeal is made to the board of review in writing in accordance with
26	the provisions of § 28-43-14.
27	(h) Effective January 1, 2020, notwithstanding the foregoing, any nonprofit organization,
28	not including governmental entities, employing not less than one thousand (1,000) employees
29	shall be subject to the job development assessment as prescribed in § 28-43-8.5. The director is
30	authorized to promulgate regulations to administer this assessment.
31	SECTION 6. Section 31-3-6 of the General Laws in Chapter 31-3 entitled "Registration
32	of Vehicles" is hereby amended to read as follows:
33	31-3-6. List of vehicles on which taxes delinquent -- Denial of registration. [Effective
34	January 1, 2019.]
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1	(a) On or before October 31 in each year, the collector of taxes of each city or town shall
2	may furnish the division of motor vehicles, with a listing showing the registration plate numbers,
3	names, and addresses of the taxpayers of the city or town whose personal property and/or excise
4	tax on motor vehicles, the assessment of which were made the prior December 31 in the case of
5	the property tax, and the tax levied in the current year in the case of the excise tax, remained
6	unpaid as of the date of the list, and shall remit to the division of motor vehicles a five-dollar ($
7	5.00) fee for each taxpayer. Subsequently, the collector of taxes in each city or town shall, at the
8	times and in the manner prescribed by the administrator of the division of motor vehicles, furnish
9	to the division of motor vehicles the names and addresses of those persons whose names appeared
10	on that list who have subsequently paid the personal property, and/or excise taxes on motor
11	vehicles, and the division shall remove from the list the names and addresses of those persons. No
12	city or town treasurer or tax collector shall refuse to accept personal property, and/or excise taxes
13	on a motor vehicle, or refuse to remove the names and addresses of the owners of the vehicle
14	from the list because of any other taxes owing the city or town. No person, corporation,
15	partnership, joint stock company, or association whose name appears on the list and whose name
16	has not been subsequently removed from the list shall be permitted to register any motor vehicle
17	until all the excise and attendant penalties have been paid in full and the payment has been
18	certified to the division of motor vehicles by the tax collector. The provisions of this section shall
19	not be construed so as to prevent the payment of taxes on motor vehicles in quarterly installments
20	as provided in chapter 5 of title 44. The provisions of this section shall apply in all respects in the
21	case of taxes assessed upon motor vehicles by any fire district. The division of motor vehicles
22	shall not add to the list the names and addresses of taxpayers that are received from any city or
23	town with fees payable under this subsection that have been outstanding for more than thirty (30)
24	days until such fees are paid in full.
25	(b) The division of motor vehicles (the "division") shall provide a written notice to those
26	persons or other taxpayers (the "person") whose name appears on the list generated in accordance
27	with the provisions of subsection (a). This notice shall include:
28	(1) The name of the municipality or other entity providing the person's name to the
29	division; and
30	(2) A statement that the person identified on the list shall not be permitted to register any
31	motor vehicle until the tax matter has been resolved and the person's name is removed from the
32	list as provided for under subsection (a).
33	SECTION 7. Effective July 1, 2019, Sections 42-63.1-3 and 42-63.1-12 of the General
34	Laws in Chapter 42-63.1 entitled "Tourism and Development" are hereby amended to read as
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1	follows:
2	42-63.1-3. Distribution of tax.
3	(a) For returns and tax payments received on or before December 31, 2015, except as
4	provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax
5	collected from residential units offered for tourist or transient use through a hosting platform,
6	shall be distributed as follows by the division of taxation and the city of Newport:
7	(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as
8	otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel
9	is located; provided, however, that from the tax generated by the hotels in the city of Warwick,
10	thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district
11	established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater
12	Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided
13	further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)
14	of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau
15	established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the
16	Convention Authority of the city of Providence established pursuant to the provisions of chapter
17	84 of the public laws of January, 1980; provided, however, that the receipts attributable to the
18	district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the
19	receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode
20	Island commerce corporation as established in chapter 64 of title 42.
21	(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where
22	the hotel, which generated the tax, is physically located, to be used for whatever purpose the city
23	or town decides.
24	(3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce
25	corporation established in chapter 64 of title 42, and seven percent (7%) to the Greater
26	Providence-Warwick Convention and Visitors' Bureau.
27	(b) For returns and tax payments received after December 31, 2015, except as provided in
28	§ 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from
29	residential units offered for tourist or transient use through a hosting platform, shall be distributed
30	as follows by the division of taxation and the city of Newport:
31	(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §
32	42-63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district,
33	twenty-five (25%) of the tax shall be given to the city or town where the hotel, which generated
34	the tax, is physically located, five percent (5%) of the tax shall be given to the Greater
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1	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-
2	eight percent (28%) of the tax shall be given to the Rhode Island commerce corporation
3	established in chapter 64 of title 42.
4	(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-
5	5, twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five
6	percent (25%) of the tax shall be given to the city or town where the hotel, which generated the
7	tax, is physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-
8	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of
9	the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title
10	42.
11	(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,
12	twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent
13	(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is
14	physically located, twenty-three percent (23%) of the tax shall be given to the Greater
15	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-
16	four (24%) of the tax shall be given to the Rhode Island commerce corporation established in
17	chapter 64 of title 42.
18	(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,
19	twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which
20	generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater
21	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy
22	percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in
23	chapter 64 of title 42.
24	(5) With respect to the tax generated by hotels in districts other than those set forth in
25	subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the
26	regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five
27	percent (25%) of the tax shall be given to the city or town where the hotel, which generated the
28	tax, is physically located, five percent (5%) of the tax shall be given to the Greater Providence-
29	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of
30	the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title
31	42.
32	(c) The proceeds of the hotel tax collected from residential units offered for tourist or
33	transient use through a hosting platform shall be distributed as follows by the division of taxation
34	and the city of Newport: twenty-five percent (25%) twenty and eight tenths percent (20.8%) of
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1	the tax shall be given to the city or town where the residential unit, which generated the tax, is
2	physically located, sixteen and seven tenths percent (16.7%) of the tax shall be given to general
3	revenue, and seventy-five percent (75%) sixty-two and one half percent (62.5%) of the tax shall
4	be given to the Rhode Island commerce corporation established in chapter 64 of title 42.
5	(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend
6	on the promotion and marketing of Rhode Island as a destination for tourists or businesses an
7	amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this
8	chapter for such fiscal year.
9	(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments
10	received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-
11	63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from
12	residential units offered for tourist or transient use through a hosting platform, shall be distributed
13	in accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of
14	this section by the division of taxation and the city of Newport.
15	(f) For returns and tax payments received on or after July 1, 2018 and on or before June
16	30, 2019, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such
17	portion of the hotel tax collected from residential units offered for tourist or transient use through
18	a hosting platform, shall be distributed as follows by the division of taxation and the city of
19	Newport:
20	(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §
21	42-63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district,
22	twenty- five (25%) of the tax shall be given to the city or town where the hotel, which generated
23	the tax, is physically located, five percent (5%) of the tax shall be given to the Greater
24	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-
25	five percent (25%) of the tax shall be given to the Rhode Island commerce corporation
26	established in chapter 64 of title 42.
27	(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-
28	5, thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent
29	(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is
30	physically located, twenty-four (24%) of the tax shall be given to the Greater Providence-
31	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of
32	the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title
33	42.
34	(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,
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1	thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)
2	of the tax shall be given to the city or town where the hotel, which generated the tax, is physically
3	located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick
4	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax
5	shall be given to the Rhode Island commerce corporation established in chapter 64 of title 42.
6	(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,
7	twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which
8	generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater
9	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy
10	percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in
11	chapter 64 of title 42.
12	(5) With respect to the tax generated by hotels in districts other than those set forth in
13	subdivisions (b)(1) through (b)(4), forty-five percent (45%) of the tax shall be given to the
14	regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five
15	percent (25%) of the tax shall be given to the city or town where the hotel, which generated the
16	tax, is physically located, five percent (5%) of the tax shall be given to the Greater Providence-
17	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of
18	the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title
19	42.
20	(g) For returns and tax payments received on or after July 1, 2019, except as provided in
21	§ 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from
22	residential units offered for tourist or transient use through a hosting platform, shall be distributed
23	as follows by the division of taxation and the city of Newport:
24	(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §
25	42-63.1-5, thirty-seven and one half percent (37.5%) of the tax shall be given to the Aquidneck
26	Island district, twenty and eight tenths percent (20.8%) of the tax shall be given to the city or
27	town where the hotel, which generated the tax, is physically located, four and two tenths percent
28	(4.2%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors
29	Bureau established in § 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be
30	transferred to General Revenue, and twenty and eight tenths percent (20.8%) of the tax shall be
31	given to the Rhode Island commerce corporation established in chapter 64 of title 42.
32	(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-
33	5, twenty-five percent (25%) of the tax shall be given to the Providence district, twenty and eight
34	tenths percent (20.8%) of the tax shall be given to the city or town where the hotel, which
	LC000763 - Page 176 of 541
1	generated the tax, is physically located, twenty percent (20%) of the tax shall be given to the
2	Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11,
3	sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, and
4	seventeen and one half percent (17.5%) of the tax shall be given to the Rhode Island commerce
5	corporation established in chapter 64 of title 42.
6	(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,
7	twenty-five percent (25%) of the tax shall be given to the Warwick District, twenty and eight
8	tenths percent (20.8%) of the tax shall be given to the city or town where the hotel, which
9	generated the tax, is physically located, twenty percent (20%) of the tax shall be given to the
10	Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11,
11	sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, and
12	seventeen and one half percent (17.5%) of the tax shall be given to the Rhode Island commerce
13	corporation established in chapter 64 of title 42.
14	(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,
15	twenty and eight tenths percent (20.8%) of the tax shall be given to the city or town where the
16	hotel, which generated the tax, is physically located, four and two tenths percent (4.2%) of the tax
17	shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in
18	§ 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General
19	Revenue, and fifty-eight and three tenths(58.3%) of the tax shall be given to the Rhode Island
20	commerce corporation established in chapter 64 of title 42.
21	(5) With respect to the tax generated by hotels in districts other than those set forth in
22	subdivisions (g)(1) through (g)(4), thirty-seven and one half percent (37.5%) of the tax shall be
23	given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located,
24	twenty and eight tenths percent (20.8%) of the tax shall be given to the city or town where the
25	hotel, which generated the tax, is physically located, four and two tenths percent (4.2%) of the tax
26	shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in
27	§ 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General
28	Revenue, twenty and eight tenths percent (20.8%) of the tax shall be given to the Rhode Island
29	commerce corporation established in chapter 64 of title 42.
30	42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority.
31	(a) For returns and tax received on or before December 31, 2015, the proceeds of the
32	hotel tax generated by any and all hotels physically connected to the Rhode Island Convention
33	Center shall be distributed as follows: twenty-seven percent (27%) shall be deposited as general
34	revenues; thirty-one percent (31%) shall be given to the convention authority of the city of
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1	Providence; twelve percent (12%) shall be given to the greater Providence-Warwick convention
2	and visitor's bureau; thirty percent (30%) shall be given to the Rhode Island convention center
3	authority to be used in the furtherance of the purposes set forth in § 42-99-4.
4	(b) For returns and tax received after December 31, 2015, the proceeds of the hotel tax
5	generated by any and all hotels physically connected to the Rhode Island Convention Center shall
6	be distributed as follows: twenty-eight percent (28%) shall be given to the convention authority of
7	the city of Providence; twelve percent (12%) shall be given to the greater Providence-Warwick
8	convention and visitor's bureau; and sixty percent (60%) shall be given to the Rhode Island
9	Commerce Corporation established in chapter 64 of title 42.
10	(c) The Rhode Island Convention Center Authority is authorized and empowered to enter
11	into contracts with the Greater Providence-Warwick Convention and Visitors' Bureau in the
12	furtherance of the purposes set forth in this chapter.
13	(d) For returns and tax received on or after July 1, 2018 and on or before June 30, 2019,
14	the proceeds of the hotel tax generated by any and all hotels physically connected to the Rhode
15	Island Convention Center shall be distributed as follows: thirty percent (30%) shall be given to
16	the convention authority of the city of Providence; twenty percent (20%) shall be given to the
17	greater Providence-Warwick convention and visitor's bureau; and fifty percent (50%) shall be
18	given to the Rhode Island Commerce Corporation established in chapter 64 of title 42.
19	(e) For returns and tax received on or after July 1, 2019, the proceeds of the hotel tax
20	generated by any and all hotels physically connected to the Rhode Island Convention Center shall
21	be distributed as follows: twenty-five percent (25%) shall be given to the convention authority of
22	the city of Providence; sixteen and seven tenths percent (16.7%) shall be given to the greater
23	Providence-Warwick convention and visitor's bureau; sixteen and seven tenths percent (16.7%) of
24	the tax shall be given to General Revenue; and forty-one and six tenths percent (41.6%) shall be
25	given to the Rhode Island Commerce Corporation established in chapter 64 of title 42.
26	SECTION 8. Section 42-142-8 of the General Laws in Chapter 42-142 entitled
27	"Department of Revenue" is hereby amended to read as follows:
28	42-142-8. Collection unit.
29	(a) The director of the department of revenue is authorized to establish within the
30	department of revenue a collection unit for the purpose of assisting state agencies in the collection
31	of debts owed to the state. The director of the department of revenue may enter into an agreement
32	with any state agency(ies) to collect any delinquent debt owed to the state.
33	(b) The director of the department of revenue shall initially implement a pilot program to
34	assist the agency(ies) with the collection of delinquent debts owed to the state.
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1	(c) The agency(ies) participating in the pilot program shall refer to the collection unit
2	within the department of revenue, debts owed by delinquent debtors where the nature and amount
3	of the debt owed has been determined and reconciled by the agency and the debt is: (i) The
4	subject of a written settlement agreement and/or written waiver agreement and the delinquent
5	debtor has failed to timely make payments under said agreement and/or waiver and is therefore in
6	violation of the terms of said agreement and/or waiver; (ii) The subject of a final administrative
7	order or decision and the debtor has not timely appealed said order or decision; (iii) The subject
8	of final order, judgment or decision of a court of competent jurisdiction and the debtor has not
9	timely appealed said order, judgment or decision. The collection unit shall not accept a referral of
10	any delinquent debt unless it satisfies subsection (c)(i), (ii) or (iii) of this section.
11	(d) Any agency(ies) entering into an agreement with the department of revenue to allow
12	the collection unit of the department to collect a delinquent debt owed to the state shall indemnify
13	the department of revenue against injuries, actions, liabilities, or proceedings arising from the
14	collection, or attempted collection, by the collection unit of the debt owed to the state.
15	(e) Before referring a delinquent debt to the collection unit, the agency(ies) must notify
16	the debtor of its intention to submit the debt to the collection unit for collection and of the
17	debtor's right to appeal that decision not less than thirty (30) days before the debt is submitted to
18	the collection unit.
19	(f) At such time as the agency(ies) refers a delinquent debt to the collection unit, the
20	agency shall: (i) Represent in writing to the collection unit that it has complied with all applicable
21	state and federal laws and regulations relating to the collection of the debt, including, but not
22	limited to, the requirement to provide the debtor with the notice of referral to the collection unit
23	under subsection (e) of this section; and (ii) Provide the collection unit personnel with all relevant
24	supporting documentation including, but not limited to, notices, invoices, ledgers,
25	correspondence, agreements, waivers, decisions, orders, and judgments necessary for the
26	collection unit to attempt to collect the delinquent debt.
27	(g) The referring agency(ies) shall assist the collection unit by providing any and all
28	information, expertise, and resources deemed necessary by the collection unit to collect the
29	delinquent debts referred to the collection unit.
30	(h) Upon receipt of a referral of a delinquent debt from an agency(ies), the amount of the
31	delinquent debt shall accrue interest at the an annual rate of interest established by law for the
32	referring agency or at an annual rate of 13%, whichever percentage rate is greater. with such rate
33	determined by adding two percent (2%) to the prime rate which was in effect on October 1 of the
34	preceding year; provided however, in no event shall the rate of interest exceed twenty-one percent
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1	(21%) per annum nor be less than eighteen percent (18%) per annum.
2	(i) Upon receipt of a referral of a delinquent debt from the agency(ies), the collection unit
3	shall provide the delinquent debtor with a "Notice of Referral" advising the debtor that:
4	(1) The delinquent debt has been referred to the collection unit for collection; and
5	(2) The collection unit will initiate, in its names, any action that is available under state
6	law for the collection of the delinquent debt, including, but not limited to, referring the debt to a
7	third party to initiate said action.
8	(j) Upon receipt of a referral of a delinquent debt from an agency(ies), the director of the
9	department of revenue shall have the authority to institute, in its name, any action(s) that are
10	available under state law for collection of the delinquent debt and interest, penalties, and/or fees
11	thereon and to, with or without suit, settle the delinquent debt.
12	(k) In exercising its authority under this section, the collection unit shall comply with all
13	state and federal laws and regulations related to the collection of debts.
14	(l) Upon the receipt of payment from a delinquent debtor, whether a full or partial
15	payment, the collection unit shall disburse/deposit the proceeds of said payment in the following
16	order:
17	(1) To the appropriate federal account to reimburse the federal government funds owed to
18	them by the state from funds recovered; and
19	(2) The balance of the amount collected to the referring agency.
20	(m) Notwithstanding the above, the establishment of a collection unit within the
21	department of revenue shall be contingent upon an annual appropriation by the general assembly
22	of amounts necessary and sufficient to cover the costs and expenses to establish, maintain, and
23	operate the collection unit including, but not limited to, computer hardware and software,
24	maintenance of the computer system to manage the system, and personnel to perform work within
25	the collection unit.
26	(n) In addition to the implementation of any pilot program, the collection unit shall
27	comply with the provisions of this section in the collection of all delinquent debts under this
28	section.
29	(o) The department of revenue is authorized to promulgate rules and regulations as it
30	deems appropriate with respect to the collection unit.
31	(p) By September 1, 2020, and each year thereafter, the department of revenue shall
32	specifically assess the performance, effectiveness, and revenue impact of the collections
33	associated with this section, including, but not limited to, the total amounts referred and collected
34	by each referring agency during the previous state fiscal year to the governor, the speaker of the
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1	house of representatives, the president of the senate, the chairpersons of the house and senate
2	finance committees, and the house and senate fiscal advisors. Such report shall include the net
3	revenue impact to the state of the collection unit.
4	(q) No operations of a collection unit pursuant to this chapter shall be authorized after
5	June 30, 2021.
6	SECTION 9. Sections 44-18-7, 44-18-7.1, 44-18-7.3, 44-18-8, 44-18-15, 44-18-15.2, 44-
7	18-20, 44-18-21, 44-18-22, 44-18-23, 44-18-25 and 44-18-30 of the General Laws in Chapter 44-
8	18 entitled "Sales and Use Taxes - Liability and Computation" are hereby amended to read as
9	follows:
10	44-18-7. Sales defined.
11	"Sales" means and includes:
12	(1) Any transfer of title or possession, exchange, barter, lease, or rental, conditional or
13	otherwise, in any manner or by any means of tangible personal property for a consideration.
14	"Transfer of possession", "lease", or "rental" includes transactions found by the tax administrator
15	to be in lieu of a transfer of title, exchange, or barter.
16	(2) The producing, fabricating, processing, printing, or imprinting of tangible personal
17	property for a consideration for consumers who furnish either directly or indirectly the materials
18	used in the producing, fabricating, processing, printing, or imprinting.
19	(3) The furnishing and distributing of tangible personal property for a consideration by
20	social, athletic, and similar clubs and fraternal organizations to their members or others.
21	(4) The furnishing, preparing, or serving for consideration of food, meals, or drinks,
22	including any cover, minimum, entertainment, or other charge in connection therewith.
23	(5) A transaction whereby the possession of tangible personal property is transferred, but
24	the seller retains the title as security for the payment of the price.
25	(6) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate
26	commerce, of tangible personal property from the place where it is located for delivery to a point
27	in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental,
28	conditional or otherwise, in any manner or by any means whatsoever, of the property for a
29	consideration.
30	(7) A transfer for a consideration of the title or possession of tangible personal property,
31	which has been produced, fabricated, or printed to the special order of the customer, or any
32	publication.
33	(8) The furnishing and distributing of electricity, natural gas, artificial gas, steam,
34	refrigeration, and water.
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1	(9)(i) The furnishing for consideration of intrastate, interstate, and international
2	telecommunications service sourced in this state in accordance with §§ 44-18.1-15 and 44-18.1-
3	16 and all ancillary services, and any maintenance services of telecommunication equipment
4	other than as provided for in § 44-18-12(b)(ii). For the purposes of chapters 18 and 19 of this title
5	only, telecommunication service does not include service rendered using a prepaid telephone
6	calling arrangement.
7	(ii) Notwithstanding the provisions of paragraph (i) of this subdivision, in accordance
8	with the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 -- 126), subject to the
9	specific exemptions described in 4 U.S.C. § 116(c), and the exemptions provided in §§ 44-18-8
10	and 44-18-12, mobile telecommunications services that are deemed to be provided by the
11	customer's home service provider are subject to tax under this chapter if the customer's place of
12	primary use is in this state regardless of where the mobile telecommunications services originate,
13	terminate, or pass through. Mobile telecommunications services provided to a customer, the
14	charges for which are billed by or for the customer's home service provider, shall be deemed to be
15	provided by the customer's home service provider.
16	(10) The furnishing of service for transmission of messages by telegraph, cable, or radio
17	and the furnishing of community antenna television, subscription television, and cable television
18	services.
19	(11) The rental of living quarters in any hotel, rooming house, or tourist camp.
20	(12) The transfer for consideration of prepaid telephone calling arrangements and the
21	recharge of prepaid telephone calling arrangements sourced to this state in accordance with §§
22	44-18.1-11 and 44-18.1-15. "Prepaid telephone calling arrangement" means and includes prepaid
23	calling service and prepaid wireless calling service.
24	(13) The sale, storage, use, or other consumption of over-the-counter drugs as defined in
25	§ 44-18-7.1(h)(ii).
26	(14) The sale, storage, use, or other consumption of prewritten computer software
27	delivered electronically or by load and leave as defined in § 44-18-7.1(g)(v).
28	(15) The sale, storage, use, or other consumption of vendor-hosted prewritten computer
29	software as defined in § 44-18-7.1(g)(vii).
30	(16) The sale, storage, use, or other consumption of specified digital products as defined
31	in 44-18-7.1(x).
32	(176) The sale, storage, use, or other consumption of medical marijuana as defined in §
33	21-28.6-3.
34	(187) The furnishing of services in this state as defined in § 44-18-7.3.
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1	44-18-7.1. Additional definitions.
2	(a) "Agreement" means the streamlined sales and use tax agreement.
3	(b) "Alcoholic beverages" means beverages that are suitable for human consumption and
4	contain one-half of one percent (.5%) or more of alcohol by volume.
5	(c) "Bundled transaction" is the retail sale of two or more products, except real property
6	and services to real property, where (1) The products are otherwise distinct and identifiable, and
7	(2) The products are sold for one non-itemized price. A "bundled transaction" does not include
8	the sale of any products in which the "sales price" varies, or is negotiable, based on the selection
9	by the purchaser of the products included in the transaction.
10	(i) "Distinct and identifiable products" does not include:
11	(A) Packaging -- such as containers, boxes, sacks, bags, and bottles -- or other materials -
12	- such as wrapping, labels, tags, and instruction guides -- that accompany the "retail sale" of the
13	products and are incidental or immaterial to the "retail sale" thereof. Examples of packaging that
14	are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and
15	express delivery envelopes and boxes.
16	(B) A product provided free of charge with the required purchase of another product. A
17	product is "provided free of charge" if the "sales price" of the product purchased does not vary
18	depending on the inclusion of the products "provided free of charge."
19	(C) Items included in the member state's definition of "sales price," pursuant to appendix
20	C of the agreement.
21	(ii) The term "one non-itemized price" does not include a price that is separately
22	identified by product on binding sales or other supporting sales-related documentation made
23	available to the customer in paper or electronic form including, but not limited to, an invoice, bill
24	of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and
25	services, rate card, or price list.
26	(iii) A transaction that otherwise meets the definition of a "bundled transaction" as
27	defined above, is not a "bundled transaction" if it is:
28	(A) The "retail sale" of tangible personal property and a service where the tangible
29	personal property is essential to the use of the service, and is provided exclusively in connection
30	with the service, and the true object of the transaction is the service; or
31	(B) The "retail sale" of services where one service is provided that is essential to the use
32	or receipt of a second service and the first service is provided exclusively in connection with the
33	second service and the true object of the transaction is the second service; or
34	(C) A transaction that includes taxable products and nontaxable products and the
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1	"purchase price" or "sales price" of the taxable products is de minimis.
2	1. De minimis means the seller's "purchase price" or "sales price" of the taxable products
3	is ten percent (10%) or less of the total "purchase price" or "sales price" of the bundled products.
4	2. Sellers shall use either the "purchase price" or the "sales price" of the products to
5	determine if the taxable products are de minimis. Sellers may not use a combination of the
6	"purchase price" and "sales price" of the products to determine if the taxable products are de
7	minimis.
8	3. Sellers shall use the full term of a service contract to determine if the taxable products
9	are de minimis; or
10	(D) The "retail sale" of exempt tangible personal property and taxable tangible personal
11	property where:
12	1. The transaction includes "food and food ingredients", "drugs", "durable medical
13	equipment", "mobility enhancing equipment", "over-the-counter drugs", "prosthetic devices" (all
14	as defined in this section) or medical supplies; and
15	2. Where the seller's "purchase price" or "sales price" of the taxable tangible personal
16	property is fifty percent (50%) or less of the total "purchase price" or "sales price" of the bundled
17	tangible personal property. Sellers may not use a combination of the "purchase price" and "sales
18	price" of the tangible personal property when making the fifty percent (50%) determination for a
19	transaction.
20	(d) "Certified automated system (CAS)" means software certified under the agreement to
21	calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to
22	remit to the appropriate state, and maintain a record of the transaction.
23	(e) "Certified service provider (CSP)" means an agent certified under the agreement to
24	perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on
25	its own purchases.
26	(f) Clothing and related items.
27	(i) "Clothing" means all human wearing apparel suitable for general use.
28	(ii) "Clothing accessories or equipment" means incidental items worn on the person or in
29	conjunction with "clothing." "Clothing accessories or equipment" does not include "clothing",
30	"sport or recreational equipment", or "protective equipment."
31	(iii) "Protective equipment" means items for human wear and designed as protection of
32	the wearer against injury or disease or as protections against damage or injury of other persons or
33	property but not suitable for general use. "Protective equipment" does not include "clothing",
34	"clothing accessories or equipment", and "sport or recreational equipment."
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1	(iv) "Sport or recreational equipment" means items designed for human use and worn in
2	conjunction with an athletic or recreational activity that are not suitable for general use. "Sport or
3	recreational equipment" does not include "clothing", "clothing accessories or equipment", and
4	"protective equipment."
5	(g) Computer and related items.
6	(i) "Computer" means an electronic device that accepts information in digital or similar
7	form and manipulates it for a result based on a sequence of instructions.
8	(ii) "Computer software" means a set of coded instructions designed to cause a
9	"computer" or automatic data processing equipment to perform a task.
10	(iii) "Delivered electronically" means delivered to the purchaser by means other than
11	tangible storage media.
12	(iv) "Electronic" means relating to technology having electrical, digital, magnetic,
13	wireless, optical, electromagnetic, or similar capabilities.
14	(v) "Load and leave" means delivery to the purchaser by use of a tangible storage media
15	where the tangible storage media is not physically transferred to the purchaser.
16	(vi) "Prewritten computer software" means "computer software," including prewritten
17	upgrades, that is not designed and developed by the author or other creator to the specifications of
18	a specific purchaser. The combining of two (2) or more "prewritten computer software"
19	programs or prewritten portions thereof does not cause the combination to be other than
20	"prewritten computer software." "Prewritten computer software" includes software designed and
21	developed by the author or other creator to the specifications of a specific purchaser when it is
22	sold to a person other than the specific purchaser. Where a person modifies or enhances
23	"computer software" of which the person is not the author or creator, the person shall be deemed
24	to be the author or creator only of such person's modifications or enhancements. "Prewritten
25	computer software" or a prewritten portion thereof that is modified or enhanced to any degree,
26	where such modification or enhancement is designed and developed to the specifications of a
27	specific purchaser, remains "prewritten computer software"; provided, however, that where there
28	is a reasonable, separately stated charge or an invoice or other statement of the price given to the
29	purchaser for such modification or enhancement, such modification or enhancement shall not
30	constitute "prewritten computer software."
31	(vii) "Vendor-hosted prewritten computer software" means prewritten computer software
32	that is accessed through the internet and/or a vendor-hosted server regardless of whether the
33	access is permanent or temporary and regardless of whether any downloading occurs.
34	(h) Drugs and related items.
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1	(i) "Drug" means a compound, substance, or preparation, and any component of a
2	compound, substance, or preparation, other than "food and food ingredients," "dietary
3	supplements" or "alcoholic beverages":
4	(A) Recognized in the official United States Pharmacopoeia, official Homeopathic
5	Pharmacopoeia of the United States, or official National Formulary, and supplement to any of
6	them; or
7	(B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of
8	disease; or
9	(C) Intended to affect the structure or any function of the body.
10	"Drug" shall also include insulin and medical oxygen whether or not sold on prescription.
11	(ii) "Over-the-counter drug" means a drug that contains a label that identifies the product
12	as a drug as required by 21 C.F.R. § 201.66. The "over-the-counter drug" label includes:
13	(A) A "Drug Facts" panel; or
14	(B) A statement of the "active ingredient(s)" with a list of those ingredients contained in
15	the compound, substance, or preparation.
16	"Over-the-counter drug" shall not include "grooming and hygiene products."
17	(iii) "Grooming and hygiene products" are soaps and cleaning solutions, shampoo,
18	toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the
19	items meet the definition of "over-the-counter drugs."
20	(iv) "Prescription" means an order, formula, or recipe issued in any form of oral, written,
21	electronic, or other means of transmission by a duly licensed practitioner authorized by the laws
22	of the member state.
23	(i) "Delivery charges" means charges by the seller of personal property or services for
24	preparation and delivery to a location designated by the purchaser of personal property or services
25	including, but not limited to: transportation, shipping, postage, handling, crating, and packing.
26	"Delivery charges" shall not include the charges for delivery of "direct mail" if the
27	charges are separately stated on an invoice or similar billing document given to the purchaser.
28	(j) "Direct mail" means printed material delivered or distributed by United States mail or
29	other delivery service to a mass audience or to addressees on a mailing list provided by the
30	purchaser or at the direction of the purchaser when the cost of the items are not billed directly to
31	the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by
32	the purchaser to the direct mail seller for inclusion in the package containing the printed material.
33	"Direct mail" does not include multiple items of printed material delivered to a single address.
34	(k) "Durable medical equipment" means equipment including repair and replacement
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1	parts for same which:
2	(i) Can withstand repeated use; and
3	(ii) Is primarily and customarily used to serve a medical purpose; and
4	(iii) Generally is not useful to a person in the absence of illness or injury; and
5	(iv) Is not worn in or on the body.
6	Durable medical equipment does not include mobility enhancing equipment.
7	(l) Food and related items.
8	(i) "Food and food ingredients" means substances, whether in liquid, concentrated, solid,
9	frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are
10	consumed for their taste or nutritional value. "Food and food ingredients" does not include
11	"alcoholic beverages", "tobacco", "candy", "dietary supplements", and "soft drinks."
12	(ii) "Prepared food" means:
13	(A) Food sold in a heated state or heated by the seller;
14	(B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single
15	item; or
16	(C) Food sold with eating utensils provided by the seller, including: plates, knives, forks,
17	spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used
18	to transport the food.
19	"Prepared food" in (B) does not include food that is only cut, repackaged, or pasteurized
20	by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring
21	cooking by the consumer as recommended by the Food and Drug Administration in chapter 3,
22	part 401.11 of its Food Code so as to prevent food borne illnesses.
23	(iii) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners
24	in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars,
25	drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no
26	refrigeration.
27	(iv) "Soft drinks" means non-alcoholic beverages that contain natural or artificial
28	sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice,
29	or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by
30	volume.
31	(v) "Dietary supplement" means any product, other than "tobacco", intended to
32	supplement the diet that:
33	(A) Contains one or more of the following dietary ingredients:
34	1. A vitamin;
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1	2. A mineral;
2	3. An herb or other botanical;
3	4. An amino acid;
4	5. A dietary substance for use by humans to supplement the diet by increasing the total
5	dietary intake; or
6	6. A concentrate, metabolite, constituent, extract, or combination of any ingredient
7	described above; and
8	(B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or
9	if not intended for ingestion in such a form, is not represented as conventional food and is not
10	represented for use as a sole item of a meal or of the diet; and
11	(C) Is required to be labeled as a dietary supplement, identifiable by the "supplemental
12	facts" box found on the label and as required pursuant to 21 C.F.R. § 101.36.
13	(m) "Food sold through vending machines" means food dispensed from a machine or
14	other mechanical device that accepts payment.
15	(n) "Hotel" means every building or other structure kept, used, maintained, advertised as,
16	or held out to the public to be a place where living quarters are supplied for pay to transient or
17	permanent guests and tenants and includes a motel.
18	(i) "Living quarters" means sleeping rooms, sleeping or housekeeping accommodations,
19	or any other room or accommodation in any part of the hotel, rooming house, or tourist camp that
20	is available for or rented out for hire in the lodging of guests.
21	(ii) "Rooming house" means every house, boat, vehicle, motor court, or other structure
22	kept, used, maintained, advertised, or held out to the public to be a place where living quarters are
23	supplied for pay to transient or permanent guests or tenants, whether in one or adjoining
24	buildings.
25	(iii) "Tourist camp" means a place where tents or tent houses, or camp cottages, or cabins
26	or other structures are located and offered to the public or any segment thereof for human
27	habitation.
28	(o) "Lease or rental" means any transfer of possession or control of tangible personal
29	property for a fixed or indeterminate term for consideration. A lease or rental may include future
30	options to purchase or extend. Lease or rental does not include:
31	(i) A transfer of possession or control of property under a security agreement or deferred
32	payment plan that requires the transfer of title upon completion of the required payments;
33	(ii) A transfer of possession or control of property under an agreement that requires the
34	transfer of title upon completion of required payments and payment of an option price does not
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1	exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or
2	(iii) Providing tangible personal property along with an operator for a fixed or
3	indeterminate period of time. A condition of this exclusion is that the operator is necessary for
4	the equipment to perform as designed. For the purpose of this subsection, an operator must do
5	more than maintain, inspect, or set-up the tangible personal property.
6	(iv) Lease or rental does include agreements covering motor vehicles and trailers where
7	the amount of consideration may be increased or decreased by reference to the amount realized
8	upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).
9	(v) This definition shall be used for sales and use tax purposes regardless if a transaction
10	is characterized as a lease or rental under generally accepted accounting principles, the Internal
11	Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.
12	(vi) This definition will be applied only prospectively from the date of adoption and will
13	have no retroactive impact on existing leases or rentals. This definition shall neither impact any
14	existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from
15	adopting a sale-leaseback exemption or exclusion after the effective date of the agreement.
16	(p) "Mobility enhancing equipment" means equipment, including repair and replacement
17	parts to same, that:
18	(i) Is primarily and customarily used to provide or increase the ability to move from one
19	place to another and that is appropriate for use either in a home or a motor vehicle; and
20	(ii) Is not generally used by persons with normal mobility; and
21	(iii) Does not include any motor vehicle or equipment on a motor vehicle normally
22	provided by a motor vehicle manufacturer.
23	Mobility enhancing equipment does not include durable medical equipment.
24	(q) "Model 1 Seller" means a seller that has selected a CSP as its agent to perform all the
25	seller's sales and use tax functions, other than the seller's obligation to remit tax on its own
26	purchases.
27	(r) "Model 2 Seller" means a seller that has selected a CAS to perform part of its sales
28	and use tax functions, but retains responsibility for remitting the tax.
29	(s) "Model 3 Seller" means a seller that has sales in at least five member states, has total
30	annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary
31	system that calculates the amount of tax due each jurisdiction, and has entered into a performance
32	agreement with the member states that establishes a tax performance standard for the seller. As
33	used in this definition, a seller includes an affiliated group of sellers using the same proprietary
34	system.
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1	(t) "Prosthetic device" means a replacement, corrective, or supportive device including
2	repair and replacement parts for same worn on or in the body to:
3	(i) Artificially replace a missing portion of the body;
4	(ii) Prevent or correct physical deformity or malfunction; or
5	(iii) Support a weak or deformed portion of the body.
6	(u) "Purchaser" means a person to whom a sale of personal property is made or to whom
7	a service is furnished.
8	(v) "Purchase price" applies to the measure subject to use tax and has the same meaning
9	as sales price.
10	(w) "Seller" means a person making sales, leases, or rentals of personal property or
11	services.
12	(x) Specified Digital Products
13	(i) “Specified digital products” means electronically transferred:
14	(A) “Digital Audio-Visual Works” which means a series of related images which, when
15	shown in succession, impart an impression of motion, together with accompanying sounds, if any;
16	(B) “Digital Audio Works” which means works that result from the fixation of a series of
17	musical, spoken, or other sounds, including ringtones, and/or;
18	(C) “Digital Books” which means works that are generally recognized in the ordinary and
19	usual sense as “books”.
20	(ii) For purposes of the definition of “digital audio works”, “ringtones” means digitized
21	sound files that are downloaded onto a device and that may be used to alert the customer with
22	respect to a communication.
23	(iii) For purposes of the definitions of “specified digital products”, “transferred
24	electronically” means obtained by the purchaser by means other than tangible storage media.
25	(xy) "State" means any state of the United States and the District of Columbia.
26	(yz) "Telecommunications" tax base/exemption terms.
27	(i) Telecommunication terms shall be defined as follows:
28	(A) "Ancillary services" means services that are associated with or incidental to the
29	provision of "telecommunications services", including, but not limited to, "detailed
30	telecommunications billing", "directory assistance", "vertical service", and "voice mail services".
31	(B) "Conference bridging service" means an "ancillary service" that links two (2) or more
32	participants of an audio or video conference call and may include the provision of a telephone
33	number. "Conference bridging service" does not include the "telecommunications services" used
34	to reach the conference bridge.
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1	(C) "Detailed telecommunications billing service" means an "ancillary service" of
2	separately stating information pertaining to individual calls on a customer's billing statement.
3	(D) "Directory assistance" means an "ancillary service" of providing telephone number
4	information, and/or address information.
5	(E) "Vertical service" means an "ancillary service" that is offered in connection with one
6	or more "telecommunications services", which offers advanced calling features that allow
7	customers to identify callers and to manage multiple calls and call connections, including
8	"conference bridging services".
9	(F) "Voice mail service" means an "ancillary service" that enables the customer to store,
10	send, or receive recorded messages. "Voice mail service" does not include any "vertical services"
11	that the customer may be required to have in order to utilize the "voice mail service".
12	(G) "Telecommunications service" means the electronic transmission, conveyance, or
13	routing of voice, data, audio, video, or any other information or signals to a point, or between or
14	among points. The term "telecommunications service" includes such transmission, conveyance,
15	or routing in which computer processing applications are used to act on the form, code, or
16	protocol of the content for purposes of transmission, conveyance, or routing without regard to
17	whether such service is referred to as voice over internet protocol services or is classified by the
18	Federal Communications Commission as enhanced or value added. "Telecommunications
19	service" does not include:
20	(1) Data processing and information services that allow data to be generated, acquired,
21	stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where
22	such purchaser's primary purpose for the underlying transaction is the processed data or
23	information;
24	(2) Installation or maintenance of wiring or equipment on a customer's premises;
25	(3) Tangible personal property;
26	(4) Advertising, including, but not limited to, directory advertising;
27	(5) Billing and collection services provided to third parties;
28	(6) Internet access service;
29	(7) Radio and television audio and video programming services, regardless of the
30	medium, including the furnishing of transmission, conveyance, and routing of such services by
31	the programming service provider. Radio and television audio and video programming services
32	shall include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and
33	video programming services delivered by commercial mobile radio service providers as defined
34	in 47 C.F.R. § 20.3;
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1	(8) "Ancillary services"; or
2	(9) Digital products "delivered electronically", including, but not limited to: software,
3	music, video, reading materials, or ring tones.
4	(H) "800 service" means a "telecommunications service" that allows a caller to dial a toll-
5	free number without incurring a charge for the call. The service is typically marketed under the
6	name "800", "855", "866", "877", and "888" toll-free calling, and any subsequent numbers
7	designated by the Federal Communications Commission.
8	(I) "900 service" means an inbound toll "telecommunications service" purchased by a
9	subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded
10	announcement or live service. "900 service" does not include the charge for: collection services
11	provided by the seller of the "telecommunications services" to the subscriber, or service or
12	product sold by the subscriber to the subscriber's customer. The service is typically marketed
13	under the name "900 service," and any subsequent numbers designated by the Federal
14	Communications Commission.
15	(J) "Fixed wireless service" means a "telecommunications service" that provides radio
16	communication between fixed points.
17	(K) "Mobile wireless service" means a "telecommunications service" that is transmitted,
18	conveyed, or routed regardless of the technology used, whereby the origination and/or
19	termination points of the transmission, conveyance, or routing are not fixed, including, by way of
20	example only, "telecommunications services" that are provided by a commercial mobile radio
21	service provider.
22	(L) "Paging service" means a "telecommunications service" that provides transmission of
23	coded radio signals for the purpose of activating specific pagers; such transmissions may include
24	messages and/or sounds.
25	(M) "Prepaid calling service" means the right to access exclusively "telecommunications
26	services", which must be paid for in advance and that enables the origination of calls using an
27	access number or authorization code, whether manually or electronically dialed, and that is sold
28	in predetermined units or dollars of which the number declines with use in a known amount.
29	(N) "Prepaid wireless calling service" means a "telecommunications service" that
30	provides the right to utilize "mobile wireless service", as well as other non-telecommunications
31	services, including the download of digital products "delivered electronically", content and
32	"ancillary services" which must be paid for in advance that is sold in predetermined units of
33	dollars of which the number declines with use in a known amount.
34	(O) "Private communications service" means a telecommunications service that entitles
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1	the customer to exclusive or priority use of a communications channel or group of channels
2	between or among termination points, regardless of the manner in which such channel or
3	channels are connected, and includes switching capacity, extension lines, stations, and any other
4	associated services that are provided in connection with the use of such channel or channels.
5	(P) "Value-added non-voice data service" means a service that otherwise meets the
6	definition of "telecommunications services" in which computer processing applications are used
7	to act on the form, content, code, or protocol of the information or data primarily for a purpose
8	other than transmission, conveyance, or routing.
9	(ii) "Modifiers of Sales Tax Base/Exemption Terms" -- the following terms can be used
10	to further delineate the type of "telecommunications service" to be taxed or exempted. The terms
11	would be used with the broader terms and subcategories delineated above.
12	(A) "Coin-operated telephone service" means a "telecommunications service" paid for by
13	inserting money into a telephone accepting direct deposits of money to operate.
14	(B) "International" means a "telecommunications service" that originates or terminates in
15	the United States and terminates or originates outside the United States, respectively. United
16	States includes the District of Columbia or a U.S. territory or possession.
17	(C) "Interstate" means a "telecommunications service" that originates in one United
18	States state, or a United States territory or possession, and terminates in a different United States
19	state or a United States territory or possession.
20	(D) "Intrastate" means a "telecommunications service" that originates in one United
21	States state or a United States territory or possession, and terminates in the same United States
22	state or a United States territory or possession.
23	(E) "Pay telephone service" means a "telecommunications service" provided through any
24	pay telephone.
25	(F) "Residential telecommunications service" means a "telecommunications service" or
26	"ancillary services" provided to an individual for personal use at a residential address, including
27	an individual dwelling unit such as an apartment. In the case of institutions where individuals
28	reside, such as schools or nursing homes, "telecommunications service" is considered residential
29	if it is provided to and paid for by an individual resident rather than the institution.
30	The terms "ancillary services" and "telecommunications service" are defined as a broad
31	range of services. The terms "ancillary services" and "telecommunications service" are broader
32	than the sum of the subcategories. Definitions of subcategories of "ancillary services" and
33	"telecommunications service" can be used by a member state alone or in combination with other
34	subcategories to define a narrower tax base than the definitions of "ancillary services" and
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1	"telecommunications service" would imply. The subcategories can also be used by a member
2	state to provide exemptions for certain subcategories of the more broadly defined terms.
3	A member state that specifically imposes tax on, or exempts from tax, local telephone or
4	local telecommunications service may define "local service" in any manner in accordance with §
5	44-18.1-28, except as limited by other sections of this Agreement.
6	(zaa) "Tobacco" means cigarettes, cigars, chewing, or pipe tobacco, or any other item that
7	contains tobacco.
8	44-18-7.3. Services defined.
9	(a) "Services" means all activities engaged in for other persons for a fee, retainer,
10	commission, or other monetary charge, which activities involve the performance of a service in
11	this state as distinguished from selling property.
12	(b) “Service charges” means
13	(i) the amount paid for the right or privilege to have access to a place or location where
14	any of the services referenced below are provided; or
15	(ii) dues paid to any association, club, or organization regardless of the purpose for which
16	the dues are paid; and/or
17	(iii) any charges for privileges or facilities, or any initiation fees, defined as any payment,
18	contribution or loan required as a condition precedent to membership in any association, club or
19	organization that facilitate the provision of the services noted below above whether or not any
20	such payment, contribution or loan is evidenced by a certificate of interest or indebtedness or
21	share of stock.
22	(bc) The following businesses and services performed in this state, along with the
23	applicable 2007 2017 North American Industrial Classification System (NAICS) codes, are
24	included, but not limited to in the definition of services and/or service charges:
25	(1) Taxicab and limousine services including but not limited to:
26	(i) Taxicab services including taxi dispatchers (485310); and
27	(ii) Limousine services (485320).
28	(2) Other road transportation service including but not limited to:
29	(i) Charter bus service (485510);
30	(ii) "Transportation network companies" (TNC) defined as an entity that uses a digital
31	network to connect transportation network company riders to transportation network operators
32	who provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-
33	18-15 and is required to file a business application and registration form and obtain a permit to
34	make sales at retail with the tax administrator, to charge, collect, and remit Rhode Island sales
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1	and use tax; and
2	(iii) All other transit and ground passenger transportation (485999).
3	(3) Pet care services (812910) except veterinary and testing laboratories services.
4	(4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in
5	§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as
6	defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the
7	reservation or transfer of which is subject to this chapter, such that the occupant pays all or a
8	portion of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall
9	include, but not be limited to, sellers of travel packages as defined in this section.
10	Notwithstanding the provisions of any other law, where said reservation or transfer of occupancy
11	is done using a room reseller or reseller, the application of the sales and use tax under §§ 44-18-
12	18 and 44-18-20, and the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or
13	reseller is required to register with, and shall collect and pay to, the tax administrator the sales
14	and use and hotel taxes, with said taxes being calculated upon the amount of rental and other fees
15	paid by the occupant to the room reseller or reseller, less the amount of any rental and other fees
16	paid by the room reseller or reseller to the hotel. The hotel shall collect and pay to the tax
17	administrator said taxes upon the amount of rental and other fees paid to the hotel by the room
18	reseller or reseller and/or the occupant. No assessment shall be made by the tax administrator
19	against a hotel because of an incorrect remittance of the taxes under this chapter by a room
20	reseller or reseller. No assessment shall be made by the tax administrator against a room reseller
21	or reseller because of an incorrect remittance of the taxes under this chapter by a hotel. If the
22	hotel has paid the taxes imposed under this chapter, the occupant and/or room reseller or reseller,
23	as applicable, shall reimburse the hotel for said taxes. If the room reseller or reseller has paid said
24	taxes, the occupant shall reimburse the room reseller or reseller for said taxes. Each hotel and
25	room reseller or reseller shall add and collect, from the occupant or the room reseller or the
26	reseller, the full amount of the taxes imposed on the rental and other fees. When added to the
27	rental and other fees, the taxes shall be a debt owed by the occupant to the hotel or room reseller
28	or reseller, as applicable, and shall be recoverable at law in the same manner as other debts. The
29	amount of the taxes collected by the hotel and/or room reseller or reseller from the occupant
30	under this chapter shall be stated and charged separately from the rental and other fees, and shall
31	be shown separately on all records thereof, whether made at the time the transfer of occupancy
32	occurs, or on any evidence of the transfer issued or used by the hotel or the room reseller or the
33	reseller. A room reseller or reseller shall not be required to disclose to the occupant the amount of
34	tax charged by the hotel; provided, however, the room reseller or reseller shall represent to the
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1	occupant that the separately stated taxes charged by the room reseller or reseller include taxes
2	charged by the hotel. No person shall operate a hotel in this state, or act as a room reseller or
3	reseller for any hotel in the state, unless the tax administrator has issued a permit pursuant to §
4	44-19-1.
5	(ii) "Travel package" means a room, or rooms, bundled with one or more other, separate
6	components of travel such as air transportation, car rental, or similar items, which travel package
7	is charged to the customer or occupant for a single, retail price. When the room occupancy is
8	bundled for a single consideration, with other property, services, amusement charges, or any other
9	items, the separate sale of which would not otherwise be subject to tax under this chapter, the
10	entire single consideration shall be treated as the rental or other fees for room occupancy subject
11	to tax under this chapter; provided, however, that where the amount of the rental, or other fees for
12	room occupancy is stated separately from the price of such other property, services, amusement
13	charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant,
14	and such rental and other fees are determined by the tax administrator to be reasonable in relation
15	to the value of such other property, services, amusement charges, or other items, only such
16	separately stated rental and other fees will be subject to tax under this chapter. The value of the
17	transfer of any room, or rooms, bundled as part of a travel package may be determined by the tax
18	administrator from the room reseller's and/or reseller's and/or hotel's books and records that are
19	kept in the regular course of business.
20	(5) Investigation, Guard, and Armored Car Services (56161 561611, 561612 & 561613).
21	(6) Hunting, Trapping, and Shooting Services (114210 & 713990).
22	(i) Exception: Special assessments, as a service charge, that are made for the construction
23	or reconstruction of any capital addition to any such facility are exempt from the sales and use tax
24	except that, in the case of any such amount which is not expended for such construction or
25	reconstruction within three years after the date of payment of the special assessment, the entity
26	that levied the special assessment, including any successors thereto, shall be liable for the sales
27	and use tax owed on the unexpended amount.
28	(7) Lobbying Services as defined in § 42-139.1-3(a)(3) (541820)
29	(i) Lobbying services do not include such activities when directed at the government of
30	the United States, another state of the United States other than Rhode Island, or political
31	subdivision of any other state, or another country.
32	(8) Interior Design Services (541410)
33	(9) Commercial Buildings Services (561710, 561720, 561730, 561740, 561790)
34	(i) “Residential, also referred to as residential unit or dwelling” means a room or rooms,
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1	including a condominium or a room or a dwelling unit that forms part of a single, joint or shared
2	tenant arrangement in any building, or portion thereof, which is designed, built, and leased to be
3	occupied for non-commercial use.
4	(ii) Any entity operating in this state, providing services to real property zoned for and
5	occupied by both residential and non-residential tenants, is a retailer as provided in §44-18-15
6	and is required to file a business application and registration form and obtain a permit to make
7	sales at retail with the tax administrator, and to charge, collect, and remit Rhode Island sales and
8	use tax on service charges if more than half of the square footage of the property is used for
9	commercial purposes.
10	(iii) Building and dwelling services provided to real property exclusively zoned for and
11	occupied solely by residential tenants, including home offices, shall be exempt from sales tax.
12	(cd) All services as defined herein are required to file a business application and
13	registration form and obtain a permit to make sales at retail with the tax administrator, to charge,
14	collect, and remit Rhode Island sales and use tax.
15	(de) The tax administrator is authorized to promulgate rules and regulations in
16	accordance with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and
17	purposes of this chapter.
18	44-18-8. Retail sale or sale at retail defined.
19	A "retail sale" or "sale at retail" means any sale, lease, or rentals of tangible personal
20	property, prewritten computer software delivered electronically or by load and leave, vendor-
21	hosted prewritten computer software, specified digital products, or services as defined in § 44-18-
22	7.3 for any purpose other than resale, sublease, or subrent in the regular course of business. The
23	sale of tangible personal property to be used for purposes of rental in the regular course of
24	business is considered to be a sale for resale. In regard to telecommunications service as defined
25	in § 44-18-7(9), retail sale does not include the purchase of telecommunications service by a
26	telecommunications provider from another telecommunication provider for resale to the ultimate
27	consumer; provided, that the purchaser submits to the seller a certificate attesting to the
28	applicability of this exclusion, upon receipt of which the seller is relieved of any tax liability for
29	the sale.
30	44-18-15. "Retailer" defined.
31	(a) "Retailer" includes:
32	(1) Every person engaged in the business of making sales at retail including prewritten
33	computer software delivered electronically or by load and leave, vendor-hosted prewritten
34	computer software, specified digital products, sales of services as defined in § 44-18-7.3, and
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1	sales at auction of tangible personal property owned by the person or others.
2	(2) Every person making sales of tangible personal property including prewritten
3	computer software delivered electronically or by load and leave, or vendor-hosted prewritten
4	computer software or specified digital products, or sales of services as defined in § 44-18-7.3,
5	through an independent contractor or other representative, if the retailer enters into an agreement
6	with a resident of this state, under which the resident, for a commission or other consideration,
7	directly or indirectly refers potential customers, whether by a link on an internet website or
8	otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to
9	customers in the state who are referred to the retailer by all residents with this type of an
10	agreement with the retailer, is in excess of five thousand dollars ($5,000) during the preceding
11	four (4) quarterly periods ending on the last day of March, June, September and December. Such
12	retailer shall be presumed to be soliciting business through such independent contractor or other
13	representative, which presumption may be rebutted by proof that the resident with whom the
14	retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer
15	that would satisfy the nexus requirement of the United States Constitution during such four (4)
16	quarterly periods.
17	(3) Every person engaged in the business of making sales for storage, use, or other
18	consumption of: (i) tangible personal property, (ii) sales at auction of tangible personal property
19	owned by the person or others, (iii) prewritten computer software delivered electronically or by
20	load and leave, (iv) vendor-hosted prewritten computer software, (v) specified digital products,
21	and (vvi) services as defined in § 44-18-7.3.
22	(4) A person conducting a horse race meeting with respect to horses, which are claimed
23	during the meeting.
24	(5) Every person engaged in the business of renting any living quarters in any hotel as
25	defined in § 42-63.1-2, rooming house, or tourist camp.
26	(6) Every person maintaining a business within or outside of this state who engages in the
27	regular or systematic solicitation of sales of tangible personal property, prewritten computer
28	software delivered electronically or by load and leave, vendor-hosted prewritten computer
29	software, and/or specified digital products in this State by means of:
30	(i) Advertising in newspapers, magazines, and other periodicals published in this state,
31	sold over the counter in this state or sold by subscription to residents of this state, billboards
32	located in this state, airborne advertising messages produced or transported in the airspace above
33	this state, display cards and posters on common carriers or any other means of public conveyance
34	incorporated or operated primarily in this state, brochures, catalogs, circulars, coupons,
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1	pamphlets, samples, and similar advertising material mailed to, or distributed within this state to
2	residents of this state;
3	(ii) Telephone;
4	(iii) Computer assisted shopping networks; and
5	(iv) Television, radio or any other electronic media, which is intended to be broadcast to
6	consumers located in this state.
7	(b) When the tax administrator determines that it is necessary for the proper
8	administration of chapters 18 and 19 of this title to regard any salespersons, representatives,
9	truckers, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, employers,
10	or persons under whom they operate or from whom they obtain the tangible personal property
11	sold by them, irrespective of whether they are making sales on their own behalf or on behalf of
12	the dealers, distributors, supervisors, or employers, the tax administrator may so regard them and
13	may regard the dealers, distributors, supervisors, or employers as retailers for purposes of
14	chapters 18 and 19 of this title.
15	44-18-15.2. "Remote seller" and "remote sale" defined -- Collection of sales and use
16	tax by remote seller.
17	(a) As used in this section:
18	(1) "Remote seller" means a person who makes remote sales in this state. any seller, other
19	than a marketplace facilitator or referrer, who does not have a physical presence in this state and
20	makes retail sales to purchasers.
21	(2) "Remote sale" means a sale into this state for which the seller would not legally be
22	required to pay, collect, or remit state or local sales and use taxes unless provided by federal law.
23	(b) Upon passage of any federal law authorizing states to require remote sellers to collect
24	and remit sales and use taxes, this state will require a remote seller making remote sales in the
25	state to pay, collect, and remit sales and use taxes at the rate imposed under § 44-18-18, and in
26	accordance with the provisions of this article, chapters 18.1 and 19 of this title, and applicable
27	federal law.
28	44-18-20. Use tax imposed.
29	(a) An excise tax is imposed on the storage, use, or other consumption in this state of
30	tangible personal property; prewritten computer software delivered electronically or by load and
31	leave; vendor-hosted prewritten computer software; specified digital products; or services as
32	defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from
33	any retailer at the rate of six percent (6%) of the sale price of the property.
34	(b) An excise tax is imposed on the storage, use, or other consumption in this state of a
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1	motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle
2	dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent
3	(6%) of the sale price of the motor vehicle, boat, airplane, or trailer.
4	(c) The word "trailer," as used in this section and in § 44-18-21, means and includes those
5	defined in § 31-1-5(a) -- (f) and also includes boat trailers, camping trailers, house trailers, and
6	mobile homes.
7	(d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to
8	the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in
9	any casual sale:
10	(1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child
11	of the transferor or seller;
12	(2) When the transfer or sale is made in connection with the organization, reorganization,
13	dissolution, or partial liquidation of a business entity, provided:
14	(i) The last taxable sale, transfer, or use of the article being transferred or sold was
15	subjected to a tax imposed by this chapter;
16	(ii) The transferee is the business entity referred to or is a stockholder, owner, member, or
17	partner; and
18	(iii) Any gain or loss to the transferor is not recognized for income tax purposes under the
19	provisions of the federal income tax law and treasury regulations and rulings issued thereunder;
20	(3) When the sale or transfer is of a trailer, other than a camping trailer, of the type
21	ordinarily used for residential purposes and commonly known as a house trailer or as a mobile
22	home; or
23	(4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or
24	other general law of this state or special act of the general assembly of this state.
25	(e) The term "casual" means a sale made by a person other than a retailer, provided, that
26	in the case of a sale of a motor vehicle, the term means a sale made by a person other than a
27	licensed motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed
28	under the provisions of subsections (a) and (b) of this section on the storage, use, or other
29	consumption in this state of a used motor vehicle less than the product obtained by multiplying
30	the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable
31	tax rate; provided, that where the amount of the sale price exceeds the amount of the retail dollar
32	value, the tax is based on the sale price. The tax administrator shall use as his or her guide the
33	retail dollar value as shown in the current issue of any nationally recognized, used-vehicle guide
34	for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after
	LC000763 - Page 200 of 541
1	payment of the tax, if the tax administrator determines that the retail dollar value as stated in this
2	subsection is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable
3	opportunity to be heard, re-determine the tax.
4	(f) Every person making more than five (5) retail sales of tangible personal property or
5	prewritten computer software delivered electronically or by load and leave, or vendor-hosted
6	prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3
7	during any twelve-month (12) period, including sales made in the capacity of assignee for the
8	benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the
9	provisions of this chapter.
10	(g)(1) "Casual sale" includes a sale of tangible personal property not held or used by a
11	seller in the course of activities for which the seller is required to hold a seller's permit or permits
12	or would be required to hold a seller's permit or permits if the activities were conducted in this
13	state, provided that the sale is not one of a series of sales sufficient in number, scope, and
14	character (more than five (5) in any twelve-month (12) period) to constitute an activity for which
15	the seller is required to hold a seller's permit or would be required to hold a seller's permit if the
16	activity were conducted in this state.
17	(2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by
18	nonprofit organizations, that are organized for charitable, educational, civic, religious, social,
19	recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6)
20	days duration each calendar year. Each event requires the issuance of a permit by the division of
21	taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a
22	nonprofit organization, the sales are in the regular course of business and are not exempt as casual
23	sales.
24	(h) The use tax imposed under this section for the period commencing July 1, 1990, is at
25	the rate of seven percent (7%). In recognition of the work being performed by the streamlined
26	sales and use tax governing board, upon passage of any federal law that authorizes states to
27	require remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the
28	first (1st) state fiscal quarter following the change, the rate imposed under § 44-18-18 shall be
29	reduced from seven percent (7.0%) to six and one-half percent (6.5%). The six and one- half
30	percent (6.5%) rate shall take effect on the date that the state requires remote sellers to collect and
31	remit sales and use taxes.
32	44-18-21. Liability for use tax.
33	(a) Every person storing, using, or consuming in this state tangible personal property,
34	including a motor vehicle, boat, airplane, or trailer, purchased from a retailer, and a motor
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1	vehicle, boat, airplane, or trailer, purchased from other than a licensed motor vehicle dealer or
2	other than a retailer of boats, airplanes, or trailers respectively; or storing, using or consuming
3	specified prewritten computer software delivered electronically or by load and leave, or vendor-
4	hosted prewritten computer software, or specified digital products, or services as defined in § 44-
5	18-7.3 is liable for the use tax. The person's liability is not extinguished until the tax has been
6	paid to this state, except that a receipt from a retailer engaging in business in this state or from a
7	retailer who is authorized by the tax administrator to collect the tax under rules and regulations
8	that he or she may prescribe, given to the purchaser pursuant to the provisions of § 44-18-22, is
9	sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.
10	(b) Each person before obtaining an original or transferral registration for any article or
11	commodity in this state, which article or commodity is required to be licensed or registered in the
12	state, shall furnish satisfactory evidence to the tax administrator that any tax due under this
13	chapter with reference to the article or commodity has been paid, and for the purpose of effecting
14	compliance, the tax administrator, in addition to any other powers granted to him or her, may
15	invoke the provisions of § 31-3-4 in the case of a motor vehicle. The tax administrator, when he
16	or she deems it to be for the convenience of the general public, may authorize any agency of the
17	state concerned with the licensing or registering of these articles or commodities to collect the use
18	tax on any articles or commodities which the purchaser is required by this chapter to pay before
19	receiving an original or transferral registration. The general assembly shall annually appropriate a
20	sum that it deems necessary to carry out the purposes of this section. Notwithstanding the
21	provisions of §§ 44-18-19, 44-18-22, and 44-18-24, the sales or use tax on any motor vehicle
22	and/or recreational vehicle requiring registration by the administrator of the division of motor
23	vehicles shall not be added by the retailer to the sale price or charge but shall be paid directly by
24	the purchaser to the tax administrator, or his or her authorized deputy or agent as provided in this
25	section.
26	(c) In cases involving total loss or destruction of a motor vehicle occurring within one
27	hundred twenty (120) days from the date of purchase and upon which the purchaser has paid the
28	use tax, the amount of the tax constitutes an overpayment. The amount of the overpayment may
29	be credited against the amount of use tax on any subsequent vehicle which the owner acquires to
30	replace the lost or destroyed vehicle or may be refunded, in whole or in part.
31	44-18-22. Collection of use tax by retailer.
32	Every retailer engaging in business in this state and making sales of tangible personal
33	property or prewritten computer software delivered electronically or by load and leave, or vendor-
34	hosted prewritten computer software, or specified digital products, or services as defined in § 44-
	LC000763 - Page 202 of 541
1	18-7.3, for storage, use, or other consumption in this state, not exempted under this chapter shall,
2	at the time of making the sales, or if the storage, use, or other consumption of the tangible
3	personal property, prewritten computer software delivered electronically or by load and leave,
4	vendor-hosted prewritten computer software, or specified digital products, or services as defined
5	in § 44-18-7.3, is not then taxable under this chapter, at the time the storage, use, or other
6	consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a
7	receipt in the manner and form prescribed by the tax administrator.
8	44-18-23. "Engaging in business" defined.
9	As used in §§ 44-18-21 and 44-18-22 the term "engaging in business in this state" means
10	the selling or delivering in this state, or any activity in this state related to the selling or delivering
11	in this state of tangible personal property or prewritten computer software delivered electronically
12	or by load and leave, or vendor-hosted prewritten computer software, or specified digital
13	products, for storage, use, or other consumption in this state; or services as defined in § 44-18-7.3
14	in this state. This term includes, but is not limited to, the following acts or methods of transacting
15	business:
16	(1) Maintaining, occupying, or using in this state permanently or temporarily, directly or
17	indirectly or through a subsidiary, representative, or agent by whatever name called and whether
18	or not qualified to do business in this state, any office, place of distribution, sales or sample room
19	or place, warehouse or storage place, or other place of business;
20	(2) Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor
21	permanently or temporarily, and whether or not the subsidiary, representative, or agent is
22	qualified to do business in this state, operate in this state for the purpose of selling, delivering, or
23	the taking of orders for any tangible personal property, or prewritten computer software delivered
24	electronically or by load and leave, or vendor-hosted prewritten computer software, or specified
25	digital products, or services as defined in § 44-18-7.3;
26	(3) The regular or systematic solicitation of sales of tangible personal property, or
27	prewritten computer software delivered electronically or by load and leave, or vendor-hosted
28	prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,
29	in this state by means of:
30	(i) Advertising in newspapers, magazines, and other periodicals published in this state,
31	sold over the counter in this state or sold by subscription to residents of this state, billboards
32	located in this state, airborne advertising messages produced or transported in the air space above
33	this state, display cards and posters on common carriers or any other means of public conveyance
34	incorporated or operating primarily in this state, brochures, catalogs, circulars, coupons,
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1	pamphlets, samples, and similar advertising material mailed to, or distributed within this state to
2	residents of this state;
3	(ii) Telephone;
4	(iii) Computer-assisted shopping networks; and
5	(iv) Television, radio or any other electronic media, which is intended to be broadcast to
6	consumers located in this state.
7	44-18-25. Presumption that sale is for storage, use, or consumption -- Resale
8	certificate.
9	It is presumed that all gross receipts are subject to the sales tax, and that the use of all
10	tangible personal property, or prewritten computer software delivered electronically or by load
11	and leave, or vendor-hosted prewritten computer software, or specified digital products, or
12	services as defined in § 44-18-7.3, are subject to the use tax, and that all tangible personal
13	property, or prewritten computer software delivered electronically or by load and leave, or
14	vendor-hosted prewritten computer software, or specified digital products, or services as defined
15	in § 44-18-7.3, sold or in processing or intended for delivery or delivered in this state is sold or
16	delivered for storage, use, or other consumption in this state, until the contrary is established to
17	the satisfaction of the tax administrator. The burden of proving the contrary is upon the person
18	who makes the sale and the purchaser, unless the person who makes the sale takes from the
19	purchaser a certificate to the effect that the purchase was for resale. The certificate shall contain
20	any information and be in the form that the tax administrator may require.
21	SECTION 10. Section 44-18-36.1 of the General Laws in Chapter 44-18 entitled "Sales
22	and Use Taxes - Liability and Computation" is hereby amended to read as follows:
23	44-18-36.1. Hotel tax.
24	(a) There is imposed a hotel tax of five percent (5%) six percent (6%) upon the total
25	consideration charged for occupancy of any space furnished by any hotel, travel packages, or
26	room reseller or reseller as defined in § 44-18-7.3(b) in this state. A house, condominium, or
27	other resident dwelling shall be exempt from the five percent (5%) six percent (6%) hotel tax
28	under this subsection if the house, condominium, or other resident dwelling is rented in its
29	entirety. The hotel tax is in addition to any sales tax imposed. This hotel tax is administered and
30	collected by the division of taxation and unless provided to the contrary in this chapter, all the
31	administration, collection, and other provisions of chapters 18 and 19 of this title apply. Nothing
32	in this chapter shall be construed to limit the powers of the convention authority of the city of
33	Providence established pursuant to the provisions of chapter 84 of the public laws of 1980, except
34	that distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than
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1	chapter 84 of the public laws of 1980.
2	(b) There is hereby levied and imposed, upon the total consideration charged for
3	occupancy of any space furnished by any hotel in this state, in addition to all other taxes and fees
4	now imposed by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be
5	administered and collected in accordance with subsection (a).
6	(c) All sums received by the division of taxation from the local hotel tax, penalties or
7	forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid
8	by the state treasurer to the city or town where the space for occupancy that is furnished by the
9	hotel is located. Unless provided to the contrary in this chapter, all of the administration,
10	collection, and other provisions of chapters 18 and 19 of this title shall apply.
11	(d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport
12	shall have the authority to collect from hotels located in the city of Newport the tax imposed by
13	subsection (a) of this section.
14	(1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the
15	tax as provided in § 42-63.1-3. No later than the first day of March and the first day of September
16	in each year in which the tax is collected, the city of Newport shall submit to the division of
17	taxation a report of the tax collected and distributed during the six (6) month period ending thirty
18	(30) days prior to the reporting date.
19	(2) The city of Newport shall have the same authority as the division of taxation to
20	recover delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty
21	and interest imposed by the city of Newport until collected constitutes a lien on the real property
22	of the taxpayer.
23	In recognition of the work being performed by the Streamlined Sales and Use Tax
24	Governing Board, upon any federal law which requires remote sellers to collect and remit taxes,
25	effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate
26	imposed under § 44-18-36.1(b) shall be one and one-half percent (1.5%).
27	SECTION 11. Effective upon passage unless otherwise specified herein, the title of
28	Chapter 44-18.2 of the General Laws entitled “Sales and Use Tax – Non-Collecting Retailers,
29	Referrers, and Retail Sale Facilitators Act” and Sections 44-18.2-2, 44-18.2-3, 44-18.2-4, 44-
30	18.2-5, and 44-18.2-6 of the General Laws in Chapter 44-18.2 entitled “Sales and Use Tax – Non-
31	Collecting Retailers, Referrers, and Retail Sale Facilitators Act” is hereby amended to read as
32	follows: are hereby amended to read as follows:
33	CHAPTER 44-18.2
34	Sales and Use Tax – Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act
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1	CHAPTER 44-18.2
2	SALES AND USE TAXES – REMOTE SELLERS, REFERRERS, AND
3	MARKETPLACE FACILITATORS ACT
4	44-18.2-2. Definitions.
5	For the purposes of this chapter:
6	(1) "Division of taxation" means the Rhode Island department of revenue, division of
7	taxation. The division may also be referred to in this chapter as the "division of taxation", "tax
8	division", or "division."
9	(2) "In-state customer" means a person or persons who makes a purchase of tangible
10	personal property, prewritten computer software delivered electronically or by load and leave as
11	defined in § 44-18-7.1(g)(v), vendor-hosted prewritten computer software, specified digital
12	products, and/or taxable services as defined under § 44-18-1 et seq. for use, storage, and/or other
13	consumption in this state.
14	(3) "In-state software" means software used by in-state customers on their computers,
15	smartphones, and other electronic and/or communication devices, including information or
16	software such as cached files, cached software, or "cookies", or other data tracking tools, that are
17	stored on property in this state or distributed within this state, for the purpose of purchasing
18	tangible personal property, prewritten computer software delivered electronically or by load and
19	leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable
20	services.
21	(4) “Marketplace” means a physical or electronic place including, but not limited to, a
22	store,
23	booth, Internet website, catalog, television or radio broadcast, or a dedicated sales
24	software application where tangible personal property, prewritten computer software delivered
25	electronically or by load and leave, vendor-hosted prewritten computer software, specified digital
26	products, and/or taxable services is/are sold or offered for sale for delivery in this state regardless
27	of whether the tangible personal property, prewritten computer software delivered electronically
28	or by load and leave, vendor-hosted prewritten computer software, or specified digital products
29	have a physical presence in the state.
30	(5) “Marketplace facilitator” means any person or persons that contracts or otherwise
31	agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as
32	fees from the transaction, the sale of the marketplace seller’s products through a physical or
33	electronic marketplace operated by the person or persons, and engages:
34	(a) Directly or indirectly, through one or more affiliated persons in any of the following:
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1	(i) Transmitting or otherwise communicating the offer or acceptance between the buyer
2	and seller;
3	(ii) Owning or operating the infrastructure, electronic or physical, or technology that
4	brings buyers and sellers together;
5	(iii) Providing a virtual currency that buyers are allowed or required to use to purchase
6	products from the seller; or
7	(iv) Software development or research and development activities related to any of the
8	activities described in (b) of this subsection (5), if such activities are directly related to a physical
9	or electronic marketplace operated by the person or an affiliated person; and
10	(b) In any of the following activities with respect to the seller’s products:
11	(i) Payment processing services;
12	(ii) Fulfillment or storage services;
13	(iii) Listing products for sale;
14	(iv) Setting prices;
15	(v) Branding sales as those of the marketplace facilitator;
16	(vi) Order taking;
17	(vii) Advertising or promotion; or
18	(viii) Providing customer service or accepting or assisting with returns or exchanges.
19	(6) “Marketplace seller” means a person, not a related party to a marketplace facilitator,
20	who has an agreement with a marketplace facilitator and makes retail sales of tangible personal
21	property, prewritten computer software delivered electronically or by load and leave, vendor-
22	hosted prewritten computer software, specified digital products, and/or taxable services through a
23	marketplace owned, operated, or controlled by a marketplace facilitator, whether or not such
24	person is required to register to collect and remit sales tax.
25	(47) "Non-collecting retailer" means any person or persons who meets at least one of the
26	following criteria:
27	(A) Uses in-state software to make sales at retail of tangible personal property, prewritten
28	computer software delivered electronically or by load and leave, and/or taxable services; or
29	(B) Sells, leases, or delivers in this state, or participates in any activity in this state in
30	connection with the selling, leasing, or delivering in this state, of tangible personal property,
31	prewritten computer software delivered electronically or by load and leave, and/or taxable
32	services for use, storage, distribution, or consumption within this state. This includes, but shall
33	not be limited to, any of the following acts or methods of transacting business:
34	(i) Engaging in, either directly or indirectly through a referrer, retail sale facilitator, or
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1	other third party, direct response marketing targeted at in-state customers. For purposes of this
2	subsection, direct response marketing includes, but is not limited to, sending, transmitting, or
3	broadcasting via flyers, newsletters, telephone calls, targeted electronic mail, text messages,
4	social media messages, targeted mailings; collecting, analyzing and utilizing individual data on
5	in-state customers; using information or software, including cached files, cached software, or
6	"cookies", or other data tracking tools, that are stored on property in or distributed within this
7	state; or taking any other action(s) that use persons, tangible property, intangible property, digital
8	files or information, or software in this state in an effort to enhance the probability that the
9	person's contacts with a potential in-state customer will result in a sale to that in-state customer;
10	(ii) Entering into one or more agreements under which a person or persons who has
11	physical presence in this state refers, either directly or indirectly, potential in-state customers of
12	tangible personal property, prewritten computer software delivered electronically or by load and
13	leave, and/or taxable services to the non-collecting retailer for a fee, commission, or other
14	consideration whether by an internet-based link or an internet website, or otherwise. An
15	agreement under which a non-collecting retailer purchases advertisements from a person or
16	persons in this state to be delivered in this state on television, radio, in print, on the internet or by
17	any other medium in this state, shall not be considered an agreement under this subsection (ii),
18	unless the advertisement revenue or a portion thereof paid to the person or persons in this state
19	consists of a fee, commission, or other consideration that is based in whole or in part upon sales
20	of tangible personal property, prewritten computer software delivered electronically or by load
21	and leave, and/or taxable services; or
22	(iii) Using a retail sale facilitator to sell, lease, or deliver in this state, or participate in any
23	activity in this state in connection with the selling, leasing, or delivering in this state, of tangible
24	personal property, prewritten computer software delivered electronically or by load and leave,
25	and/or taxable services for use, storage, or consumption in this state.
26	(C) Uses a sales process that includes listing, branding, or selling tangible personal
27	property, prewritten computer software delivered electronically or by load and leave, and/or
28	taxable services for sale, soliciting, processing orders, fulfilling orders, providing customer
29	service and/or accepting or assisting with returns or exchanges occurring in this state, regardless
30	of whether that part of the process has been subcontracted to an affiliate or third party. The sales
31	process for which the in-state customer is charged not more than the basic charge for shipping
32	and handling as used in this subsection shall not include shipping via a common carrier or the
33	United States mail;
34	(D) Offers its tangible personal property, prewritten computer software delivered
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1	electronically or by load and leave, and/or taxable services for sale through one or more retail sale
2	facilitators that has physical presence in this state;
3	(E) Is related to a person that has physical presence in this state, and such related person
4	with a physical presence in this state:
5	(i) Sells tangible personal property, prewritten computer software delivered electronically
6	or by load and leave, and/or taxable services that are the same or substantially similar to that sold
7	by a non-collecting retailer under a business name that is the same or substantially similar to that
8	of the non-collecting retailer;
9	(ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or
10	other similar place of business in this state to facilitate the delivery of tangible personal property,
11	prewritten computer software delivered electronically or by load and leave, and/or taxable
12	services sold by the non-collecting retailer;
13	(iii) Uses, with consent or knowledge of the non-collecting retailer, trademarks, service
14	marks, or trade names in this state that are the same or substantially similar to those used by the
15	non-collecting retailer;
16	(iv) Delivers or has delivered (except for delivery by common carrier or United States
17	mail for which the in-state customer is charged not more than the basic charge for shipping and
18	handling), installs, or assembles tangible personal property in this state, or performs maintenance
19	or repair services on tangible personal property in this state, which tangible personal property is
20	sold to in-state customers by the non-collecting retailer;
21	(v) Facilitates the delivery of tangible personal property purchased from a non-collecting
22	retailer but delivered in this state by allowing an in-state customer to pick up the tangible personal
23	property at an office distribution facility, salesroom, warehouse, storage place, or other similar
24	place of business maintained in this state; or
25	(vi) Shares management, business systems, business practices, computer resources,
26	communication systems, payroll, personnel, or other such business resources and activities with
27	the non-collecting retailer, and/or engages in intercompany transactions with the non-collecting
28	retailer, either or both of which relate to the activities that establish or maintain the non-collecting
29	retailer's market in this state.
30	(F) Any person or persons who meets at least one of the criteria in subsections (47)(A) --
31	(47)(E) above shall be presumed to be a non-collecting retailer.
32	(G) The term “non-collecting retailer” will no longer apply to any entity that meets the
33	definition of this subsection on or after July 1, 2019, at which time such entity shall be classified
34	as a “remote seller” as referenced in R.I. Gen. Laws § 44-18-15.2.
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1	(58) "Person" means person as defined in § 44-18-6.
2	(69) "Referrer" means every person who:
3	(A) Contracts or otherwise agrees with a retailer to list and/or advertise for sale in this
4	state tangible personal property, prewritten computer software delivered electronically or by load
5	and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable
6	services in any forum, including, but not limited to, a catalog or internet website;
7	(B) Receives a fee, commission, and/or other consideration from a retailer for the listing
8	and/or advertisement;
9	(C) Transfers, via in-state software, internet link, or otherwise, an in-state customer to the
10	retailer or the retailer's employee, affiliate, or website to complete a purchase; and
11	(D) Does not collect payments from the in-state customer for the transaction.
12	(E) A person or persons who engages in the activity set forth in all of the activities set
13	forth in subsections (69)(A) -- (69)(D) above shall be presumed to be a referrer.
14	(710) "Related" means:
15	(A) Having a relationship with the non-collecting retailer within the meaning of the
16	internal revenue code of 1986 as amended; or
17	(B) Having one or more ownership relationships and a purpose of having the ownership
18	relationship is to avoid the application of this chapter.
19	(811) A "retail sale" or "sale at retail" means any retail sale or sale at retail as defined in §
20	44-18-8.
21	(912) "Retail sale facilitator" means any person or persons that facilitates a sale by a
22	retailer by engaging in the following types of activities:
23	(A) Using in-state software to make sales at retail of tangible personal property,
24	prewritten computer software delivered electronically or by load and leave, and/or taxable
25	services; or
26	(B) Contracting or otherwise agreeing with a retailer to list and/or advertise for sale
27	tangible personal property, prewritten computer software delivered electronically or by load and
28	leave, and/or taxable services in any forum, including, but not limited to, a catalog or internet
29	website; and
30	(C) Either directly or indirectly through agreements or arrangements with third parties,
31	collecting payments from the in-state customer and transmitting those payments to a retailer. A
32	person or persons may be a retail sale facilitator regardless of whether they deduct any fees from
33	the transaction. The division may define in regulation circumstances under which a retail sale
34	facilitator shall be deemed to facilitate a retail sale.
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1	(D) A person or persons who engages in the type of activity set forth in subsection
2	(912)(A) above or both of the types of activities set forth in subsections (912)(B) and (912)(C)
3	above shall be presumed to be a retail sale facilitator.
4	(E) The term “retail sale facilitator” will no longer apply to any entity that meets the
5	definition of this subsection on or after July 1, 2019, at which time such entity shall be classified
6	as a “marketplace facilitator” as referenced above in R.I. Gen. Laws § 44-18.2-2(5).
7	(130) A "retailer" means retailer as defined in § 44-18-15.
8	(14) “Specified digital products” refers to the same term as defined in R.I. Gen. Laws §
9	44-18-7.1(x) effective July 1, 2019.
10	(151) "State" means the State of Rhode Island and Providence Plantations.
11	(162) "Streamlined agreement" means the Streamlined Sales and Use Tax Agreement as
12	referenced in § 44-18.1-1 et seq.
13	(17) “Vendor-hosted prewritten computer software” refers to the same term as defined in
14	R.I. Gen. Laws § 44-18-7.1(g)(vii) effective October 1, 2018.
15	44-18.2-3. Requirements for non-collecting retailers, referrers, and retail sale
16	facilitators.
17	(A) Except as otherwise provided below in § 44-18.2-4, beginning on the later of July 15,
18	2017, or two (2) weeks after the enactment of this chapter, and for each tax year thereafter prior
19	to July 1, 2019, or the effective date of the amendment of this chapter, any non-collecting retailer,
20	referrer, or retail sale facilitator, as defined in this chapter, that in the immediately preceding
21	calendar year either:
22	(i) Has gross revenue from the sale of tangible personal property, prewritten computer
23	software delivered electronically or by load and leave, and/or has taxable services delivered into
24	this state equal to or exceeding one hundred thousand dollars ($100,000); or
25	(ii) Has sold tangible personal property, prewritten computer software delivered
26	electronically or by load and leave, and/or taxable services for delivery into this state in two
27	hundred (200) or more separate transactions shall comply with the requirements in subsections
28	(EF), (FG), and (GH) as applicable.
29	(B) A non-collecting retailer, as defined in this chapter, shall comply with subsection
30	(EF) below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.
31	(C) A referrer, as defined in this chapter, shall comply with subsection (FG) below if it
32	meets the criteria of either subsection (A)(i) or (A)(ii) above.
33	(D) A retail sale facilitator, as defined in this chapter, shall comply with subsection (GH)
34	below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.
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1	(E) Any noncollecting retailer, retail sale facilitator, and/or referrer that is collecting and
2	remitting sales tax into this state prior to the enactment of this amended chapter, date to be
3	inserted after enactment, shall be deemed a remote seller and/or a marketplace seller and/or
4	marketplace facilitator and/or referrer upon amendment of this chapter and shall continue to
5	collect and remit sales tax. Beginning on ninety (90) days after the enactment of this amended
6	chapter, date to be inserted after enactment, any remote seller, marketplace seller, marketplace
7	facilitator, and/or referrer, as defined in this chapter, who is not collecting and remitting sales tax
8	shall comply with the requirements in subsection (I) if that remote seller, marketplace seller,
9	marketplace facilitator, and/or referrer, as defined in this chapter has not been collecting or
10	remitting sales tax in this state and, in the immediately preceding calendar year either:
11	(i) Has gross revenue from the sale of tangible personal property, prewritten computer
12	software delivered electronically or by load and leave, vendor-hosted prewritten computer
13	software, specified digital products, and/or has taxable services delivered into this state equal to
14	or exceeding one hundred thousand dollars ($100,000); or
15	(ii) Has sold tangible personal property, prewritten computer software delivered
16	electronically or by load and leave, vendor-hosted prewritten computer software, specified digital
17	products, and/or taxable services for delivery into this state in two hundred (200) or more separate
18	transactions shall comply with the requirements in subsection (I).
19	(EF) Non-collecting retailer. A non-collecting retailer shall either register in this state for
20	a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the
21	state or:
22	(1) Post a conspicuous notice on its website that informs in-state customers that sales or
23	use tax is due on certain purchases made from the non-collecting retailer and that this state
24	requires the in-state customer to file a sales or use tax return;
25	(2) At the time of purchase, notify in-state customers that sales or use tax is due on
26	taxable purchases made from the non-collecting retailer and that the state of Rhode Island
27	requires the in-state customer to file a sales or use tax return;
28	(3) Within forty-eight (48) hours of the time of purchase, notify in-state customers in
29	writing that sales or use tax is due on taxable purchases made from the non-collecting retailer and
30	that this state requires the in-state customer to file a sales or use tax return reflecting said
31	purchase;
32	(4) On or before January 31 of each year, including January 31, 2018, for purchases made
33	in calendar year 2017, send a written notice to all in-state customers who have cumulative annual
34	taxable purchases from the non-collecting retailer totaling one hundred dollars ($100) or more for
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1	the prior calendar year. The notification shall show the name of the non-collecting retailer, the
2	total amount paid by the in-state customer to the non-collecting retailer in the previous calendar
3	year, and, if available, the dates of purchases, the dollar amount of each purchase, and the
4	category or type of the purchase, including, whether the purchase is exempt or not exempt from
5	taxation in Rhode Island. The notification shall include such other information as the division
6	may require by rule and regulation. The notification shall state that the state of Rhode Island
7	requires a sales or use tax return to be filed and sales or use tax to be paid on certain categories or
8	types of purchases made by the in-state customer from the non-collecting retailer. The
9	notification shall be sent separately to all in-state customers by first-class mail and shall not be
10	included with any other shipments or mailings. The notification shall include the words
11	"Important Tax Document Enclosed" on the exterior of the mailing; and
12	(5) Beginning on February 15, 2018, and not later than each February 15 thereafter, a
13	non-collecting retailer that has not registered in this state for a permit to make sales at retail and
14	collect and remit sales and use tax on all taxable sales into the state for any portion of the prior
15	calendar year, shall file with the division on such form and/or in such format as the division
16	prescribes an attestation that the non-collecting retailer has complied with the requirements of
17	subsections (EF)(1) – (EF)(4) herein.
18	(GF) Referrer. At such time during any calendar year, or any portion thereof, that a
19	referrer receives more than ten thousand dollars ($10,000) from fees, commissions, and/or other
20	compensation paid to it by retailers with whom it has a contract or agreement to list and/or
21	advertise for sale tangible personal property, prewritten computer software delivered
22	electronically or by load and leave, and/or taxable services, said referrer shall within thirty (30)
23	days provide written notice to all such retailers that the retailers' sales may be subject to this
24	state's sales and use tax.
25	(GH) Retail sale facilitator. Beginning January 15, 2018, and each year thereafter, a retail
26	sale facilitator shall provide the division of taxation with:
27	(i) A list of names and addresses of the retailers for whom during the prior calendar year
28	the retail sale facilitator collected Rhode Island sales and use tax; and
29	(ii) A list of names and addresses of the retailers who during the prior calendar year used
30	the retail sale facilitator to serve in-state customers but for whom the retail sale facilitator did not
31	collect Rhode Island sales and use tax.
32	(I) Remote sellers, referrers, and marketplace facilitators. A remote seller, referrer, and
33	marketplace facilitator shall register in this state for a permit to make sales at retail and collect
34	and remit sales and use tax on all taxable sales into the state.
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1	(i) A marketplace facilitator shall collect sales and use tax on all sales made through the
2	marketplace to purchasers in this state whether or not the marketplace seller (1) has or is required
3	to have a permit to make sales at retail or (2) would have been required to collect and remit sales
4	and use tax had the sale not been made through the marketplace provider.
5	(ii) A marketplace facilitator shall certify to its marketplace sellers that it will collect and
6	remit sales and use tax on sales of taxable items made through the marketplace. A marketplace
7	seller that accepts a marketplace provider’s collection certificate in good faith may exclude sales
8	made through the marketplace from the marketplace seller’s returns under Chapters 18 and 19 of
9	Title 44 of the Rhode Island General Laws.
10	(iii) A marketplace facilitator with respect to a sale of tangible personal property it
11	facilitates:
12	(A) shall have all the obligations and rights of a retailer under Chapters 18 and 19 of Title
13	44 of the Rhode Island General Laws and under any regulations adopted pursuant thereto,
14	including, but not limited to, the duty to obtain a certificate of authority, to collect tax, file
15	returns, remit tax, and the right to accept a certificate or other documentation from a customer
16	substantiating an exemption or exclusion from tax, the right to receive a refund or credit allowed
17	by law; and (B) shall keep such records and information and cooperate with the tax administrator
18	to ensure the proper collection and remittance of tax imposed, collected, or required to be
19	collected under Chapters 18 and 19 of Title 44 of the Rhode Island General Laws.
20	(iv) A marketplace facilitator shall be subject to audit by the tax administrator with
21	respect to all retail sales for which it is required to collect and pay the tax imposed under Chapters
22	18 and 19 of Title 44 of the Rhode Island General Laws. Where the tax administrator audits the
23	marketplace facilitator, the tax administrator is prohibited from auditing the marketplace seller for
24	the same retail sales unless the marketplace facilitator seeks relief under this subsection (iv).
25	(v) If the marketplace facilitator demonstrates to the tax administrator’s satisfaction that
26	the marketplace facilitator has made a reasonable effort to obtain accurate information from the
27	marketplace seller about a retail sale and that the failure to collect and pay the correct amount of
28	tax imposed under Chapters 18 and 19 of Title 44 of the Rhode Island General Laws was due to
29	incorrect information provided to the marketplace facilitator by the marketplace seller, then the
30	marketplace facilitator shall be relieved of liability of the tax for that retail sale. This subsection
31	(v) does not apply with regard to a retail sale for which the marketplace facilitator is the seller or
32	if the marketplace facilitator and seller are affiliates. Where the marketplace facilitator is relieved
33	under this subsection (v), the seller is liable for the tax imposed under Chapters 18 and 19 of Title
34	44 of the Rhode Island General Laws.
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1	(vi) A class action may not be brought against a marketplace facilitator on behalf of
2	purchasers arising from or in any way related to an overpayment of sales or use tax collected by
3	the marketplace facilitator, regardless of whether such action is characterized as a tax refund
4	claim. Nothing in this subsection (vi) shall affect a purchaser's right to seek a refund as otherwise
5	allowed by law.
6	(HJ) Any person or entity that engages in any activity or activities of a non-collecting
7	retailer, referrer, and/or retail sale facilitator as defined herein shall be presumed to be a non-
8	collecting retailer, referrer, and/or retail sale facilitator as applicable even if referred to by another
9	name or designation. Said person or entity shall be subject to the terms and conditions set forth in
10	this chapter.
11	44-18.2-4. Exceptions for referrers and retail sale facilitators.
12	(A)(i) Notwithstanding the provisions of § 44-18.2-3, no retail sale facilitator shall be
13	required to comply with the provisions of § 44-18.2-3(GH), for any sale where the retail sale
14	facilitator within ninety (90) days of the date of the sale has been provided either:
15	(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this
16	state or its resale certificate as applicable; or
17	(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use
18	tax exemption certificate.
19	(ii) Notwithstanding the provisions of § 44-18.2-3, no referrer shall be required to comply
20	with the provisions of § 44-18.2-3(FG) for any referral where the referrer within ninety (90) days
21	of the date of the sale has been provided either:
22	(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this
23	state or its resale certificate as applicable; or
24	(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use
25	tax exemption certificate.
26	(B) Nothing in this section shall be construed to interfere with the ability of a non-
27	collecting retailer, referrer, or retail sale facilitator and a retailer to enter into agreements with
28	each other; provided, however, the terms of said agreements shall not in any way be inconsistent
29	with or contravene the requirements of this chapter.
30	(C) The provisions of subsections (A) and (B) herein will not be applicable as of July 1,
31	2019 or the effective date of the amendment of this chapter.
32	44-18.2-5. Penalties.
33	Prior to the effective date of the enactment of the amendment of this chapter, date to be
34	inserted upon enactment, Aany non-collecting retailer, referrer, or retail sale facilitator that fails
	LC000763 - Page 215 of 541
1	to comply with any of the requirements of this chapter shall be subject to a penalty of ten dollars
2	($10.00) for each such failure, but not moreless than a total penalty of ten thousand dollars
3	($10,000) per calendar year. As of July 1, 2019, or prior to the effective date of the enactment of
4	the amendment of this chapter, date to be inserted upon enactment, any remote seller, referrer, or
5	marketplace facilitator that fails to comply with any of the requirements of this chapter shall be
6	subject to a penalty of ten dollars ($10.00) for each such failure, but not less than a total penalty
7	of ten thousand dollars ($10,000) per calendar year. Each instance of failing to comply with the
8	requirements of this chapter shall constitute a separate violation for purposes of calculating the
9	penalty under this section. This penalty shall be in addition to any other applicable penalties
10	under title 44.
11	44-18.2-6. Other obligations.
12	(A) Nothing in this section affects the obligation of any in-state customer to remit use tax
13	as to any applicable transaction in which the seller, non-collecting retailer, or retail sale
14	facilitator, remote seller, marketplace seller, marketplace facilitator or referrer has not collected
15	and remitted the sales tax for said transaction.
16	(B) Nothing in this chapter shall be construed as relieving any other person or entity
17	otherwise required to collect and remit sales and use tax under applicable Rhode Island law from
18	continuing to do so.
19	(C) In the event that any section of this chapter is later determined to be unlawful, no
20	person, persons, or entity shall have a cause of action against the person that collected and
21	remitted the sales and use tax pursuant to this chapter.
22	SECTION 12. Effective October 1, 2019, Section 44-19-7 of the General Laws in
23	Chapter 44-19 entitled "Sales and Use Taxes - Enforcement and Collection" is hereby amended to
24	read as follows:
25	44-19-7. Registration of retailers.
26	Every retailer selling tangible personal property or prewritten computer software
27	delivered electronically or by load and leave or vendor-hosted prewritten computer software or
28	specified digital products for storage, use, or other consumption in this state, as well as services
29	as defined in § 44-18-7.3, in this state, or renting living quarters in any hotel as defined in § 42-
30	63.1-2, rooming house, or tourist camp in this state must register with the tax administrator and
31	give the name and address of all agents operating in this state, the location of all distribution or
32	sales houses or offices, or of any hotel as defined in § 42-63.1-2, rooming house, or tourist camp
33	or other places of business in this state, and other information that the tax administrator may
34	require.
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1	SECTION 13. The title and Sections 44-20-1, 44-20-2, 44-20-3, 44-20-4, 44-20-5, and
2	44-20-8.2 of the General Laws in Chapter 44-20 entitled “Cigarette and Other Tobacco Products
3	Tax” are hereby amended to read as follows:
4	CHAPTER 20
5	CIGARETTE, OTHER TOBACCO PRODUCTS, AND E-LIQUID PRODUCTS TAX
6	44-20-1. Definitions.
7	Whenever used in this chapter, unless the context requires otherwise:
8	(1) "Administrator" means the tax administrator;
9	(2) "Cigarettes" means and includes any cigarettes suitable for smoking in cigarette form,
10	and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow
11	cylinder or cone, made with paper or any other material, with or without a filter suitable for use in
12	making cigarettes;
13	(3) "Dealer" means any person whether located within or outside of this state, who sells
14	or distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
15	products to a consumer in this state;
16	(4) “E-liquid” and “e-liquid products” mean: any liquid or substance placed in or sold for
17	use in an electronic nicotine-delivery system which generally utilizes a heating element that
18	vaporizes or combusts a liquid or other substance containing nicotine or nicotine derivative:
19	(a) whether the liquid or substance contains nicotine or a nicotine derivative; or,
20	(b) whether sold separately or sold in combination with a personal vaporizer, electronic
21	nicotine delivery system or an electronic inhaler.
22	(5) "Electronic nicotine-delivery system products" means an electronic device that may
23	be used to simulate smoking in the delivery of nicotine or other substance to a person inhaling
24	from the device, and includes, but is not limited to, an electronic cigarette, electronic cigar,
25	electronic cigarillo, electronic pipe, electronic hookah, or e-liquid, or any related device or any
26	cartridge or other component of such device. Electronic nicotine-delivery system products shall
27	not include Hemp-derived consumable CBD products as defined in 44-49.1-2.
28	(46) "Distributor" means any person:
29	(A) Whether located within or outside of this state, other than a dealer, who sells or
30	distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
31	products within or into this state. Such term shall not include any cigarette or other tobacco
32	product manufacturer, export warehouse proprietor, or importer with a valid permit under 26
33	U.S.C. § 5712, if such person sells or distributes cigarettes and/or other tobacco products and/or
34	electronic nicotine-delivery system products in this state only to licensed distributors, or to an
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1	export warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;
2	(B) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery
3	system products directly to consumers in this state by means of at least twenty-five (25) vending
4	machines;
5	(C) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco
6	products and/or electronic nicotine-delivery system products and/or any person engaged in the
7	business of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery
8	system products to dealers, or to other persons, for the purpose of resale only; provided, that
9	seventy-five percent (75%) of all cigarettes and/or other tobacco products and/or electronic
10	nicotine-delivery system products sold by that person in this state are sold to dealers or other
11	persons for resale and selling cigarettes and/or other tobacco products and/or electronic nicotine-
12	delivery system products directly to at least forty (40) dealers or other persons for resale; or
13	(D) Maintaining one or more regular places of business in this state for that purpose;
14	provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products
15	and/or electronic nicotine-delivery system products are purchased directly from the manufacturer
16	and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
17	products directly to at least forty (40) dealers or other persons for resale;
18	(57) "Importer" means any person who imports into the United States, either directly or
19	indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system
20	product for sale or distribution;
21	(68) "Licensed", when used with reference to a manufacturer, importer, distributor or
22	dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for
23	the type of business being engaged in. When the term "licensed" is used before a list of entities,
24	such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term shall be
25	deemed to apply to each entity in such list;
26	(79) "Manufacturer" means any person who manufactures, fabricates, assembles,
27	processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-
28	delivery system products;
29	(810) "Other tobacco products" (OTP) means any cigars (excluding Little Cigars, as
30	defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco
31	(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco
32	suitable for smoking in a pipe or otherwise), chewing tobacco (including Cavendish, twist, plug,
33	scrap and any other kinds and forms of tobacco suitable for chewing), any and all forms of
34	hookah, shisha and "mu'assel" tobacco, snuff, and shall include any other articles or products
	LC000763 - Page 218 of 541
1	made of or containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;
2	(911) "Person" means any individual, including an employee or agent, firm, fiduciary,
3	partnership, corporation, trust, or association, however formed;
4	(1012) "Pipe" means an apparatus made of any material used to burn or vaporize products
5	so that the smoke or vapors can be inhaled or ingested by the user;
6	(1113) "Place of business" means any location where cigarettes and/or other tobacco
7	products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,
8	but not limited to; any storage room, attic, basement, garage or other facility immediately
9	adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or
10	vending machine;
11	(1214) "Sale" or "sell" means gifts, exchanges, and barter of cigarettes and/or other
12	tobacco products and/or electronic nicotine-delivery system products. The act of holding, storing,
13	or keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
14	products at a place of business for any purpose shall be presumed to be holding the cigarettes
15	and/or other tobacco products and/or electronic nicotine-delivery system products for sale.
16	Furthermore, any sale of cigarettes and/or other tobacco products and/or electronic nicotine-
17	delivery system products by the servants, employees, or agents of the licensed dealer during
18	business hours at the place of business shall be presumed to be a sale by the licensee;
19	(1315) "Stamp" means the impression, device, stamp, label, or print manufactured,
20	printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as
21	evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are
22	intended for a sale or distribution in this state that is exempt from state tax under the provisions of
23	state law; and also includes impressions made by metering machines authorized to be used under
24	the provisions of this chapter.
25	44-20-2. Importer, distributor, and dealer licenses required -- Licenses required.
26	Each person engaging in the business of selling cigarette and/or any tobacco products
27	and/or any electronic nicotine-delivery system products in this state, including any distributor or
28	dealer, shall secure a license from the administrator before engaging in that business, or
29	continuing to engage in it. A separate application and license is required for each place of
30	business operated by a distributor or dealer; provided, that an operator of vending machines for
31	cigarette products is not required to obtain a distributor's license for each machine. If the
32	applicant for a license does not have a place of business in this state, the license shall be issued
33	for such applicant's principal place of business, wherever located. A licensee shall notify the
34	administrator within thirty (30) days in the event that it changes its principal place of business. A
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1	separate license is required for each class of business if the applicant is engaged in more than one
2	of the activities required to be licensed by this section. No person shall maintain or operate or
3	cause to be operated a vending machine for cigarette products without procuring a dealer's license
4	for each machine.
5	44-20-3. Penalties for unlicensed business.
6	Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,
7	cigarettes and/or any other tobacco products and/or any electronic nicotine-delivery system
8	products without a license as provided in § 44-20-2, shall be guilty of a misdemeanor, and shall
9	be fined not more than ten thousand dollars ($10,000) for each offense, or be imprisoned for a
10	term not to exceed one (1) year, or be punished by both a fine and imprisonment. Any electronic
11	nicotine-delivery system products distributor or dealer licensed by the Department of Health
12	pursuant to Chapter 1 of Title 23 of the Rhode Island General Laws as of the effective date of the
13	transfer of licensing of electronic nicotine-delivery system products distributors and dealers under
14	this chapter shall be considered licensed for purposes of compliance with this chapter until the
15	renewal of that license immediately following the enactment of this chapter.
16	44-20-4. Application for license -- Display.
17	All licenses are issued by the tax administrator upon approval of application, stating, on
18	forms prescribed by the tax administrator, the information he or she may require for the proper
19	administration of this chapter. Each application for an importer's, or distributor's license shall be
20	accompanied by a fee of one thousand dollars ($1,000); provided, that for a distributor who does
21	not affix stamps, the fee shall be one two hundred fifty dollars ($100250.00); each application for
22	a dealer's license shall be accompanied by an application fee of twenty-seventy-five dollars
23	($275.00) and a license fee of two-hundred and fifty dollars ($250.00). Each issued license shall
24	be prominently displayed on the premises within this state, if any, covered by the license. In the
25	instance of an application for a distributor's license, the administrator shall require, in addition to
26	other information as may be deemed necessary, the filing of affidavits from three (3) cigarette
27	manufacturers with national distribution stating that the manufacturer will supply the distributor if
28	the applicant is granted a license.
29	44-20-5. Duration of importer's and dealer's licenses -- Renewal.
30	(a) Any importer license and any license issued by the tax administrator authorizing a
31	dealer to sell cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
32	products in this state shall expire at midnight on June 30 next succeeding the date of issuance
33	unless (1) suspended or revoked by the tax administrator, (2) the business with respect to which
34	the license was issued changes ownership, (3) the importer or dealer ceases to transact the
	LC000763 - Page 220 of 541
1	business for which the license was issued, or (4) after a period of time set by the administrator;
2	provided such period of time shall not be longer than three (3) years, in any of which cases the
3	license shall expire and terminate and the holder shall immediately return the license to the tax
4	administrator.
5	(b) Every holder of a dealer's license shall annually, on or before February 1 of each year,
6	renew its license by filing an application for renewal along with twenty-five two hundred fifty
7	dollars ($25.00) ($250.00) renewal fee. The renewal license is valid for the period July 1 of that
8	calendar year through June 30 of the subsequent calendar year.
9	44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,
10	and dealers.
11	A manufacturer or importer may sell or distribute cigarettes and/or other tobacco
12	products, electronic nicotine-delivery system products and/or e-liquid products to a person
13	located or doing business within this state, only if such person is a licensed importer or
14	distributor. An importer may obtain cigarettes and/or other tobacco products and/or e-liquid
15	products only from a licensed manufacturer. A distributor may sell or distribute cigarettes and/or
16	other tobacco products and/or e-liquid products to a person located or doing business within this
17	state, only if such person is a licensed distributor or dealer. A distributor may obtain cigarettes
18	and/or other tobacco products and/or e-liquid products only from a licensed manufacturer,
19	importer, or distributor. A dealer may obtain cigarettes and/or other tobacco products and/or e-
20	liquid products only from a licensed distributor. Any smoking bar as defined in 23-20.10-2(20)
21	shall be exempt from the requirement in this section only with respect to other tobacco products.
22	SECTION 14. Effective August 1, 2019, Sections 44-20-12, 44-20-12.7, and, 44-20-13 of
23	the General Laws in Chapter 44-20 entitled "Cigarette and Other Tobacco Products Tax" are
24	hereby amended to read as follows:
25	44-20-12. Tax imposed on cigarettes sold.
26	A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax
27	to be evidenced by stamps, which may be affixed only by licensed distributors to the packages
28	containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this
29	chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under
30	this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) two hundred
31	twenty-five (225) mills for each cigarette.
32	44-20-12.7. Floor stock tax on cigarettes and stamps.
33	(a) Each person engaging in the business of selling cigarettes at retail in this state shall
34	pay a tax or excise to the state for the privilege of engaging in that business during any part of the
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1	calendar year 2019. In calendar year 2019, the tax shall be measured by the number of cigarettes
2	held by the person in this state at 12:01 a.m. on August 1, 2019 and is computed at the rate of
3	twelve and one half (12.5) mills for each cigarette on August 1, 2019.
4	(b) Each distributor licensed to do business in this state pursuant to this chapter shall pay
5	a tax or excise to the state for the privilege of engaging in that business during any part of the
6	calendar year 2019. The tax is measured by the number of stamps, whether affixed or to be
7	affixed to packages of cigarettes, as required by § 44-20-28. In calendar year 2019 the tax is
8	measured by the number of stamps, whether affixed or to be affixed, held by the distributor at
9	12:01 a.m. on August 1, 2019, and is computed at the rate of twelve and one half (12.5) mills per
10	cigarette in the package to which the stamps are affixed or to be affixed.
11	(c) Each person subject to the payment of the tax imposed by this section shall, on or
12	before August 15, 2019, file a return, under oath or certified under the penalties of perjury, with
13	the tax administrator on forms furnished by him or her, showing the amount of cigarettes and the
14	number of stamps in that person's possession in this state at 12:01 a.m. on August 1, 2019, as
15	described in this section above, and the amount of tax due, and shall at the time of filing the
16	return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the
17	failure to make a return containing the information required by the tax administrator.
18	(d) The tax administrator may prescribe rules and regulations, not inconsistent with law
19	regarding the assessment and collection of the tax imposed by this section.
20	44-20-13. Tax imposed on unstamped cigarettes.
21	A tax is imposed at the rate of two hundred twelve and one-half (212.5) two hundred
22	twenty-five (225) mills for each cigarette upon the storage or use within this state of any
23	cigarettes not stamped in accordance with the provisions of this chapter in the possession of any
24	consumer within this state.
25	SECTION 15. Effective August 1, 2019 unless otherwise specified herein, Section 44-20-
26	13.2 of the General Laws in Chapter 44-20 entitled "Cigarette and Other Tobacco Products Tax"
27	is hereby amended to read as follows:
28	44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and
29	pipe tobacco products, and e-liquid products.
30	(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe
31	tobacco products, and e-liquid products sold, or held for sale in the state by any person, the
32	payment of the tax to be accomplished according to a mechanism established by the
33	administrator, division of taxation, department of revenue. The tax imposed by this section shall
34	be as follows:
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1	(1) At the rate of eighty percent (80%) of the wholesale cost of other tobacco products,
2	cigars, pipe tobacco products, and smokeless tobacco other than snuff.
3	(2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of
4	cigars, the tax shall not exceed fifty eighty cents ($.850) for each cigar.
5	(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like
6	rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net
7	weight as listed by the manufacturer; provided, however, that any product listed by the
8	manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a
9	net weight of 1.2 ounces.
10	(4) Effective September 1, 2019, at the rate of forty percent (40%) of the wholesale cost
11	of e-liquid products as defined herein.
12	(b) Any dealer having in his or her possession any other tobacco products with respect to
13	the storage or use of which a tax is imposed by this section shall, within five (5) days after
14	coming into possession of the other tobacco products in this state, file a return with the tax
15	administrator in a form prescribed by the tax administrator. The return shall be accompanied by a
16	payment of the amount of the tax shown on the form to be due. Any smoking bar as defined in
17	23-20.10-2(20) having in his or her possession any other tobacco products with respect to the
18	storage or use of which a tax is imposed by this section shall, within five (5) days after coming
19	into possession of the other tobacco products in this state, file a return with the tax administrator
20	in a form prescribed by the tax administrator. The return shall be accompanied by a payment of
21	the amount of the tax shown on the form to be due. Records required under this section shall be
22	preserved on the premises described in the relevant license in such a manner as to ensure
23	permanency and accessibility for inspection at reasonable hours by authorized personnel of the
24	administrator.
25	(c) The proceeds collected are paid into the general fund.
26	SECTION 16. Effective September 1, 2019, Sections 44-20-15, 44-20-33, 44-20-35, 44-
27	20-40, 44-20-40.1, 44-20-43, 44-20-45, 44-20-47 and 44-20-51.1 of the General Laws in Chapter
28	44-20 entitled "Cigarette and Other Tobacco Products Tax" are hereby amended to read as
29	follows:
30	44-20-15. Confiscation of contraband cigarettes, other tobacco products, e-liquid
31	products, and other property.
32	(a) All cigarettes, and other tobacco products, and/or e-liquid products that are held for
33	sale or distribution within the borders of this state in violation of the requirements of this chapter
34	are declared to be contraband goods and may be seized by the tax administrator or his or her
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1	agents, or employees, or by any sheriff, or his or her deputy, or any police officer when directed
2	by the tax administrator to do so, without a warrant. All contraband goods seized by the state
3	under this chapter shall be destroyed.
4	(b) All fixtures, equipment, and all other materials and personal property on the premises
5	of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any
6	record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report,
7	or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts
8	in any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.
9	44-20-33. Sale of contraband cigarettes, or contraband other tobacco products or
10	contraband e-liquid products prohibited.
11	No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or
12	possess with intent to sell any contraband other tobacco products without written record of the
13	payment of tax imposed by this chapter, or contraband e-liquid products without written record of
14	the payment of tax imposed by this chapter or contraband cigarettes, the packages or boxes of
15	which do not bear stamps evidencing the payment of the tax imposed by this chapter.
16	44-20-35. Penalties for violations as to unstamped contraband cigarettes, or
17	contraband other tobacco products, or contraband e-liquid products..
18	(a) Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined or
19	imprisoned, or both fined and imprisoned, as follows:
20	(1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10)
21	times the retail value of the contraband cigarettes, contraband e-liquid products and/or contraband
22	other tobacco products, or be imprisoned not more than one (1) year, or be both fined and
23	imprisoned;
24	(2) For a second or subsequent offense in a twenty-four-month (24) period, fined not
25	more than twenty-five (25) times the retail value of the contraband cigarettes, contraband e-liquid
26	products and/or contraband other tobacco products, or be imprisoned not more than three (3)
27	years, or be both fined and imprisoned.
28	(b) When determining the amount of a fine sought or imposed under this section,
29	evidence of mitigating factors, including history, severity, and intent shall be considered.
30	44-20-40. Records -- Investigation and inspection of books, premises and stock.
31	(a) Each manufacturer, importer, distributor, and dealer shall maintain copies of invoices
32	or equivalent documentation for, or itemized for, each of its facilities for each transaction (other
33	than a retail transaction with a consumer) involving the sale, purchase, transfer, consignment, or
34	receipt of cigarettes, other tobacco products and e-liquid products. The invoices or documentation
	LC000763 - Page 224 of 541
1	shall show the name and address of the other party and the quantity by brand style of the
2	cigarettes, other tobacco products and contraband e-liquid products involved in the transaction.
3	All records and invoices required under this section must be safely preserved for three (3) years in
4	a manner to insure permanency and accessibility for inspection by the administrator or his or her
5	authorized agents.
6	(b) Records required under this section shall be preserved on the premises described in
7	the relevant license in such a manner as to ensure permanency and accessibility for inspection at
8	reasonable hours by authorized personnel of the administrator. With the administrator's
9	permission, persons with multiple places of business may retain centralized records, but shall
10	transmit duplicates of the invoices or the equivalent documentation to each place of business
11	within twenty-four (24) hours upon the request of the administrator or his or her designee.
12	(c) The administrator or his or her authorized agents may examine the books, papers,
13	reports and records of any manufacturer, importer, distributor or dealer in this state for the
14	purpose of determining whether taxes imposed by this chapter have been fully paid, and may
15	investigate the stock of cigarettes, other tobacco products and/or electronic nicotine-delivery
16	system products in or upon any premises for the purpose of determining whether the provisions of
17	this chapter are being obeyed. The administrator in his or her sole discretion may share the
18	records and reports required by such sections with law enforcement officials of the federal
19	government or other states.
20	44-20-40.1. Inspections.
21	(a) The administrator or his or her duly authorized agent shall have authority to enter and
22	inspect, without a warrant during normal business hours, and with a warrant during nonbusiness
23	hours, the facilities and records of any manufacturer, importer, distributor, or dealer.
24	(b) In any case where the administrator or his or her duly authorized agent, or any police
25	officer of this state, has knowledge or reasonable grounds to believe that any vehicle is
26	transporting cigarettes, or other tobacco products or contraband e-liquid products in violation of
27	this chapter, the administrator, such agent, or such police officer, is authorized to stop such
28	vehicle and to inspect the same for contraband cigarettes, or contraband other tobacco products or
29	contraband e-liquid products.
30	44-20-43. Violations as to reports and records.
31	Any person who fails to submit the reports required in this chapter or by the tax
32	administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who
33	refuses to permit the tax administrator or his or her authorized agent to examine any books,
34	records, papers, or stocks of cigarettes, or other tobacco products or electronic nicotine-delivery
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1	system products as provided in this chapter, or who refuses to supply the tax administrator with
2	any other information which the tax administrator requests for the reasonable and proper
3	enforcement of the provisions of this chapter, shall be guilty of a misdemeanor punishable by
4	imprisonment up to one (1) year, or a fine of not more than five thousand dollars ($5,000), or
5	both, for the first offense, and for each subsequent offense, shall be fined not more than ten
6	thousand dollars ($10,000), or be imprisoned not more than five (5) years, or both.
7	44-20-45. Importation of cigarettes, and/or other tobacco products, and/or e-liquid
8	products with intent to evade tax.
9	Any person, firm, corporation, club, or association of persons who or that orders any
10	cigarettes, and/or other tobacco products, and/or electronic nicotine-delivery system products for
11	another; or pools orders for cigarettes, and/or other tobacco products, and/or electronic nicotine-
12	delivery system products from any persons; or conspires with others for pooling orders; or
13	receives in this state any shipment of contraband cigarettes, and/or contraband other tobacco
14	products, and/or contraband e-liquid products on which the tax imposed by this chapter has not
15	been paid, for the purpose and intention of violating the provisions of this chapter or to avoid
16	payment of the tax imposed in this chapter, is guilty of a felony and shall be fined one hundred
17	thousand dollars ($100,000) or five (5) times the retail value of the cigarettes, other tobacco
18	products, and/or e-liquid products involved, whichever is greater, or imprisoned not more than
19	fifteen (15) years, or both.
20	44-20-47. Hearings by tax administrator.
21	Any person aggrieved by any action under this chapter of the tax administrator or his or
22	her authorized agent for which a hearing is not elsewhere provided may apply to the tax
23	administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons
24	why the hearing should be granted and the manner of relief sought. The tax administrator shall
25	notify the applicant of the time and place fixed for the hearing. After the hearing, the tax
26	administrator may make the order in the premises as may appear to the tax administrator just and
27	lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice
28	in writing, at any time, order a hearing on his or her own initiative and require the taxpayer or any
29	other individual whom the tax administrator believes to be in possession of information
30	concerning any manufacture, importation, or sale of; cigarettes, other tobacco products, and/or e-
31	liquid products to appear before the tax administrator or his or her authorized agent with any
32	specific books of account, papers, or other documents, for examination relative to the hearing.
33	44-20-51.1. Civil penalties.
34	(a) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her
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1	by this chapter, or to do, or cause to be done, any of the things required by this chapter, or does
2	anything prohibited by this chapter, shall, in addition to any other penalty provided in this
3	chapter, be liable as follows:
4	(1) For a first offense in a twenty-four-month (24) period, a penalty of not more than ten
5	(10) times the retail value of the cigarettes, and/or other tobacco products and/or e-liquid products
6	involved; and
7	(2) For a second or subsequent offense in a twenty-four-month (24) period, a penalty of
8	not more than twenty-five (25) times the retail value of the cigarettes, and/or other tobacco
9	products and/or contraband e-liquid products involved.
10	(b) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or
11	regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty
12	of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid,
13	whichever is greater.
14	(c) When determining the amount of a penalty sought or imposed under this section,
15	evidence of mitigating or aggravating factors, including history, severity, and intent, shall be
16	considered.
17	SECTION 17. Sections 44-44-3 and 44-44-3.7 of the General Laws in Chapter 44-44
18	entitled "Taxation of Beverage Containers, Hard-to-Dispose Material and Litter Control
19	Participation Permittee" are hereby amended to read as follows:
20	44-44-3. Imposition of tax on beverage containers.
21	There shall be levied and imposed a tax of four cents ($0.04) eight cents ($0.08) on each
22	case of beverage containers sold by a beverage wholesaler to a beverage retailer or consumer
23	within this state. The tax shall be collected by the beverage wholesaler. The tax provided for in
24	this section shall not be levied, imposed, or collected on reusable and refillable beverage
25	containers.
26	44-44-3.7. Imposition of tax on hard-to-dispose material.
27	(a) There shall be levied and imposed a tax of five cents ($0.05) ten cents ($0.10) per
28	quart (32 oz.) or five and 3/10th cents ($0.053) ten and 6/10 cents ($0.106) per liter on lubricating
29	oils, ten cents ($0.10) twenty cents ($0.20) per gallon or two and 64/100th cents ($0.0264) five
30	and 28/100th cents ($0.0528) per liter on antifreeze, one fourth of one cent ($.0025) one half cent
31	($0.005) per gallon or 66/10,000ths cents ($.00066) one hundred thirty two thousandths
32	($0.00132) per liter on organic solvents, and fifty cents ($.50) one dollar ($1.00) per tire as
33	defined above. The tax shall be separately stated and collected upon the sale by the hard-to-
34	dispose material wholesalers to a hard-to-dispose material retailer. In the case of new motor
	LC000763 - Page 227 of 541
1	vehicles, a fee of three dollars ($3.00) six dollars ($6.00) per vehicle shall be levied and paid to
2	the division of motor vehicles in conjunction with titling of the vehicle. Every hard-to-dispose
3	material retailer selling, using, or otherwise consuming in this state any hard-to-dispose material
4	is liable for the tax imposed by this section. Its liability is not extinguished until the tax has been
5	paid to the state, except that a receipt from a hard-to-dispose material wholesaler engaging in
6	business in this state or from a hard-to-dispose material wholesaler who is authorized by the tax
7	administrator to collect the tax under rules and regulations that he or she may prescribe given to
8	the hard-to-dispose material retailer is sufficient to relieve the hard-to-dispose material retailer
9	from further liability for the tax to which the receipt refers.
10	(b) In the event that a person purchases hard-to-dispose material for its own use or
11	consumption and not for resale from a hard-to-dispose material wholesaler or retailer not engaged
12	in business in this state or not authorized by the tax administrator to collect the tax, that person
13	shall be liable for the tax imposed by this section.
14	SECTION 18. Effective October 1, 2019, Title 44 of the General Laws entitled
15	"TAXATION" is hereby amended by adding thereto the following chapter:
16	CHAPTER 70
17	FIREARMS AND FIREARM AMMUNITION EXCISE TAX
18	44-70-1. Short title.
19	Chapter 70 of this title may be known and cited as the "Firearm and Firearm Ammunition
20	Excise Tax Act".
21	44-70-2. Definitions.
22	The following words, terms, and phrases, when used in this chapter, shall have the
23	meanings ascribed to them in this Section, except where the context clearly indicates a different
24	meaning:
25	(a) “Firearm” shall have the same meaning as set forth in 18 U.S. Code § 921(a)(3).
26	(b) “Firearm ammunition” shall have the same meaning as “Ammunition” as set forth in
27	18 U.S. Code § 921(a)(17)(A).
28	(c) "State" means the State of Rhode Island and Providence Plantations.
29	(d) Tax Administrator means the tax administrator within the department of revenue for
30	the State
31	(e) "Person" means person as defined in § 44-18-6.
32	(f) “Purchaser” means any person who purchases a firearm or firearm ammunition in a
33	retail purchase in the State of Rhode Island.
34	(g) “Retail dealer” or “retailer” means any person who engages in the business of selling
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1	firearms or firearm ammunition on a retail level in the State or to a person in the State, as defined
2	in § 44-18-15
3	(h) “Retail purchase” means any transaction in which a person in the State acquires
4	ownership by tendering consideration on a retail level.
5	44-70-3. Rules and Regulations.
6	The tax administrator may promulgate rules and regulations, not inconsistent with law, to
7	carry into effect the provisions of this chapter.
8	44-70-4. Collection of tax by retailer.
9	Every retailer engaging in business in this state and making sales of Firearms or Firearm
10	Ammunition, for storage, use, or other consumption in this state, not exempted under this chapter
11	shall, at the time of making the sales, or if the storage, use, or other consumption of the tangible
12	personal property is not then taxable under this chapter, at the time the storage, use, or other
13	consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a
14	receipt in the manner and form prescribed by the tax administrator.
15	44-70-5. Exemptions.
16	(a) Notwithstanding any other provision of this chapter, in accordance with rules that may
17	be promulgated by the tax administrator in regard to tax exempt purchases, retail dealers shall not
18	collect the firearms or firearm ammunition tax when the firearms and/or firearm ammunition is
19	being sold to the following:
20	(1) An office, division, or agency of the United States, the State of Rhode Island, or any
21	municipal corporation or political subdivision, including the Armed Forces of the United States or
22	National Guard.
23	(2) A bona fide veterans’ organization which receive firearms and/or firearm ammunition
24	directly from the Armed Forces of the United States and uses said firearms and/or firearm
25	ammunition strictly and solely for ceremonial purposes with blank ammunition.
26	(3) Any active sworn law enforcement officer purchasing a firearm and/or firearm
27	ammunition for official or training related purposes presenting an official law enforcement
28	identification card at the time of purchase.
29	(b) In accordance with rules to be promulgated by the tax administrator, an active
30	member of the Armed Forces of the United States, National Guard or deputized law enforcement
31	officer may apply for a refund from the department for the tax paid on a firearm and/or firearm
32	ammunition that was purchased for official use or training related purposes.
33	(c) Notwithstanding any other provision in this chapter, in accordance with rules that may
34	be promulgated by the tax administrator in regard to tax-exempt purchases, retail dealers shall not
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1	collect firearm ammunition tax on blank ammunition.
2	44-70-6. Tax Imposed.
3	The retailer shall add the tax imposed by this chapter to the sale price or charge, and
4	when added the tax constitutes a part of the price or charge, is a debt from the consumer or user to
5	the retailer, and is recoverable at law in the same manner as other debts; provided, that the
6	amount of tax that the retailer collects from the consumer or user is as follows:
7	Amount of Fair Market Value, as Tax
8	$0.01 to $ .09 inclusive No Tax
9	.10 to .19 inclusive .01
10	.20 to .29 inclusive .02
11	.30 to .39 inclusive .03
12	.40 to .49 inclusive .04
13	.50 to .59 inclusive .05
14	.60 to .69 inclusive .06
15	.70 to .79 inclusive .07
16	.80 to .89 inclusive .08
17	.90 to .99 inclusive .09
18	.100 to .109 inclusive .10
19	and where the amount of the sale is more than one dollar and nine cents ($1.09) the
20	amount of the tax is computed at the rate of ten percent (10%)
21	Tax Included in Sales Price.
22	It shall be deemed a violation of this chapter for a retail dealer to fail to separately state
23	the tax imposed in this chapter and instead include it in the sale price of firearms and/or firearm
24	ammunition. The tax levied in this article shall be imposed in addition to all other taxes imposed
25	by the State, or any municipal corporation or political subdivision of any of the foregoing.
26	(b) Any person who shall receive firearms or firearm ammunition in any form and under
27	any circumstances that shall preclude the collection of the tax provided for in this chapter, and
28	shall then sell or use the firearm or Firearm ammunition in any manner and under any
29	circumstances that shall render the sale or use subject to the tax, shall use the same form, pay the
30	same taxes, and be subject to all other provisions of this chapter relating to tax.
31	44-70-7. Tax Collection.
32	(a) Tax Collection.
33	Any retail dealer shall collect the taxes imposed by this chapter from any purchaser to
34	whom the sale of said firearms or firearm ammunition is made within the State and shall remit to
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1	the State the tax levied by this chapter.
2	(b) Tax Remittance.
3	It shall be the duty of every retail dealer to remit the tax due on the sales of firearms or
4	firearm ammunition purchased in the State, on forms prescribed by the tax administrator, on or
5	before the 20th day of the month following the month in which the firearm or firearm ammunition
6	sale occurred on a form and in the manner required by the tax administrator.
7	(c) If for any reason a retail dealer fails to collect the tax imposed by this chapter from the
8	purchaser, the purchaser shall file a return and pay the tax directly to the State, on or before the
9	date required by Subsection (b) of this Section.
10	44-70-8. Penalties.
11	(a) Failure to file tax returns or to pay tax. In the case of failure:
12	(1) To file the tax return on or before the prescribed date, unless it is shown that the
13	failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made
14	equal to ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax
15	required to be reported shall be reduced by an amount of the tax paid on or before the date
16	prescribed for payment and by the amount of any credit against the tax which may properly be
17	claimed upon the return;
18	(2) To pay the amount shown as tax on the personal income tax return on or before the
19	prescribed date for payment of the tax unless it is shown that the failure is due to reasonable cause
20	and not due to willful neglect, there shall be added to the amount shown as tax on the return ten
21	percent (10%) of the amount of the tax.
22	(b) Negligence. If any part of a deficiency is due to negligence or intentional disregard of
23	the Rhode Island General Laws or rules or regulations under this chapter (but without intent to
24	defraud), five percent (5%) of that part of the deficiency shall be added to the tax.
25	(c) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of
26	the deficiency shall be added to the tax. This amount shall be in lieu of any other additional
27	amounts imposed by subsections (a) and (b) of this section.
28	(d) Failure to collect and pay over tax. Any person required to collect, truthfully account
29	for, and pay over the firearm and Firearm ammunition tax who willfully fails to collect the tax or
30	truthfully account for and pay over the tax or willfully attempts in any manner to evade or defeat
31	the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a
32	civil penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and
33	paid over.
34	(e) Additions and penalties treated as tax. The additions to the tax and civil penalties
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1	provided by this section shall be paid upon notice and demand and shall be assessed, collected,
2	and paid in the same manner as taxes.
3	(g) Bad checks. If any check or money order in payment of any amount receivable under
4	this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as
5	a penalty by the person who tendered the check, upon notice and demand by the tax administrator
6	or his or her delegate, in the same manner as tax, an amount equal to one percent (1%) of the
7	amount of the check, except that if the amount of the check is less than five hundred dollars
8	($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply
9	if the person tendered the check in good faith and with reasonable cause to believe that it would
10	be duly paid.
11	(h) Misuse of Trust Funds Any retailer and any officer, agent, servant, or employee of
12	any corporate retailer responsible for either the collection or payment of the tax, who appropriates
13	or converts the tax collected to his or her own use or to any use other than the payment of the tax
14	to the extent that the money required to be collected is not available for payment on the due date
15	as prescribed in this chapter, shall upon conviction for each offense be fined not more than ten
16	thousand dollars ($10,000), or be imprisoned for one year, or by both fine and imprisonment,
17	both fine and imprisonment to be in addition to any other penalty provided by this chapter.
18	(i) Operating without a Firearm License A person who engages in business as a firearm
19	or firearm ammunition retailer in this state without a license as defined in § 11-47-38 or after said
20	license has been suspended or revoked, and each officer of any corporation which engages in
21	business as a firearm or firearm ammunition retailer in this state without a license as defined in §
22	11-47-38 or after said license has been suspended or revoked, is guilty of a misdemeanor, and
23	shall be fined not more than five thousand dollars ($5,000) for each offense, or be imprisoned not
24	exceeding one year, or be punished by both fine and imprisonment. Each day in which the person
25	engages in business constitutes a separate offense.
26	44-70-9. Claim for Refund.
27	Whenever the tax administrator determines that any person is entitled to a refund of any
28	moneys paid by a person under the provisions of this chapter, or whenever a court of competent
29	jurisdiction orders a refund of any moneys paid, the general treasurer shall, upon certification by
30	the tax administrator and with the approval of the director of administration, pay the refund from
31	any moneys in the treasury not appropriated without any further act or resolution making
32	appropriation for the refund. No refund is allowed unless a claim is filed with the tax
33	administrator within three (3) years from the fifteenth (15th) day after the close of the month for
34	which the overpayment was made.
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1	44-70-10. Enforcement.
2	(a) General. The tax administrator shall administer and enforce this chapter and may
3	require any facts and information to be reported that he or she may deem necessary to enforce the
4	provisions of this chapter.
5	(b) Examination of books and witnesses. For the purpose of ascertaining the correctness
6	of any filing or notice or for the purpose of compliance with the terms of this chapter, the tax
7	administrator shall have the power to examine or to cause to have examined, by any agent or
8	representative designated by the tax administrator for that purpose, any books, papers, records, or
9	memoranda bearing upon said matters and may require the attendance of the person rendering the
10	return or any officer or employee of the person, or the attendance of any other person having
11	knowledge of the correctness of any filing or notice or compliance with the terms of this chapter,
12	and may take testimony and require proof material for its information, with power to administer
13	oaths to the person or persons.
14	44-70-12. Appeal.
15	If the tax administrator issues a final determination hereunder, an appeal may be made
16	pursuant to the provisions of chapter 19 of title 44.
17	44-70-13. Severability.
18	If any provision of this chapter or the application thereof is held invalid, such invalidity
19	shall not affect the provisions or applications of this chapter which can be given effect without the
20	invalid provisions or applications.
21	SECTION 19. Sections 46-12.7-4.1 and 46-12.7-5.1 of the General Laws in Chapter 46-
22	12.7 entitled "Oil Spill Prevention, Administration and Response Fund" are hereby amended to
23	read as follows:
24	46-12.7-4.1. Uniform oil response and prevention fee.
25	(a) A uniform oil spill response and prevention fee in an amount not exceeding five cents
26	($.05) ten cents ($.10) for each barrel of petroleum products, as set by the director pursuant to
27	subsection (d) of this section, shall be imposed upon every person owning petroleum products at
28	the time the petroleum products are received at a marine terminal within this state by means of a
29	vessel from a point of origin outside this state. The fee shall be remitted to the division of taxation
30	on the 30th day of each month based upon the number of barrels of petroleum products received
31	during the preceding month.
32	(b) Every owner of petroleum products shall be liable for the fee until it has been paid to
33	the state, except that payment to a marine terminal operator registered under this chapter is
34	sufficient to relieve the owner from further liability for the fee; provided, however, that the fee for
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1	asphalt products and asphalt derivatives shall be one cent ($.01) per barrel of asphalt products or
2	derivatives.
3	(c) Whenever the director, in consultation with the department and the division of
4	taxation, estimates that the amount in the fund will reach the amount specified in subsection (e) of
5	this section, and the money in the fund is not required for the purposes specified in § 46-12.7-5.1,
6	the director shall instruct the division of taxation to cease collecting the fee.
7	(d) The director shall set the amount of the oil spill prevention and response fees. The
8	administrator, except for the fee set out in subsection (b), shall not set the amount of the fee at
9	less than five cents ($0.05) ten cents ($.10) for each barrel of petroleum products or crude oil,
10	unless the director finds that the assessment of a lesser fee will cause the fund to reach the
11	designated amount within six (6) months.
12	(e) For the purposes of this chapter, "designated amount" means an amount equal to ten
13	million dollars ($10,000,000), adjusted for inflation after January 1, 1998, according to an index
14	which the director may reasonably choose.
15	(f) All fees collected pursuant to this section shall be deposited in the oil spill prevention,
16	administration, and response fund, and shall be disbursed according to the purposes expressed in
17	§ 46-12.7-5.1.
18	(g) Notwithstanding the provisions of subsection (f) of this section, each July 1st, two
19	hundred and fifty thousand dollars ($250,000) of the fees collected under this section shall be
20	deposited into the coastal and estuarine habitat restoration trust fund (the "trust").
21	46-12.7-5.1. Purposes of the fund.
22	The director may use money from the fund to:
23	(1) Provide funds to cover promptly the costs of response, containment, and cleanup of
24	oil spills into marine or estuarine waters, including, but not limited to, damage assessment costs,
25	and wildlife rehabilitation as defined in this section.
26	(2) Provide funds to cover the costs of site evaluation activities. These activities shall
27	include, but not be limited to, site mapping, installation of wells, collection, monitoring, and
28	analysis of samples of air, soil, and/or water, and evaluation of the impacts of contamination on
29	maritime and terrestrial shore line environments, production of the reports, and installation and
30	the maintenance of necessary technology, and equipment for complete remedial action;
31	(3) Provide emergency loans and to cover response and cleanup costs and other damages
32	suffered by the state or other persons or entities from oil spills or threatened oil spills;
33	(4) To pay for claims for damages, which cannot otherwise be compensated by
34	responsible parties or the federal government, pursuant to § 46-12.7-8.1;
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1	(5) Provide emergency loans to affected workers ineligible for unemployment insurance;
2	(6) Pay for structural improvements to vulnerable coastal features, including the
3	Providence River Shipping Canal, in order to reduce the risk of oil tanker collisions, grounding,
4	and spills;
5	(7) Pay for the restoration of natural resources damaged by an oil spill, where necessary
6	and appropriate;
7	(8) Pay for response training and equipment;
8	(9) Pay for large-scale personnel drills and exercises;
9	(10) Pay for research, development, and monitoring activities as outlined in § 46-12.7-13;
10	and
11	(11) Pay for the expenditures related to the Rhode Island coastal and estuarine habitat
12	restoration trust fund pursuant to chapter 23.1 of this title, subject to appropriation.; and
13	(12) Pay for the expenditures related to compliance and monitoring activities for storm
14	water management and brownfields remediation.
15	SECTION 20. Effective Date. Section 7 shall take effect July 1, 2019. Sections 14 and
16	15 of this article shall take effect August 1, 2019. Section 16 shall take effect September 1, 2019.
17	Sections 1, 9, 12 and 18 of this article shall take effect October 1, 2019. The remaining sections
18	of this article shall take effect upon passage.
19	ARTICLE 6
20	RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
21	SECTION 1. This article shall serve as joint resolution required pursuant to Rhode Island
22	General Law § 35-18-1, et seq.
23	SECTION 2. University of Rhode Island – Memorial Union – Auxiliary Enterprise
24	WHEREAS, the Council on Postsecondary Education and the University have a long-
25	standing commitment to the overall development of their students; and
26	WHEREAS, the University believes that the Memorial Union celebrates life at URI and
27	acts as the nexus for campus community, student engagement, and leadership. It is an intersection
28	connecting the academic core of campus and the campus’s socially active residential community.
29	The student union at the University is an integral part of the educational ecosystem that shapes
30	the student experience; and
31	WHEREAS, the Council on Postsecondary Education and the University of Rhode Island
32	are proposing a project which involves the renovation and expansion of the Memorial Union to meet
33	the ongoing and growing needs of their students; and
34	WHEREAS, the University engaged a qualified architectural firm, which has completed
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1	an advanced planning study for this renovation; and
2	WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
3	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
4	and other public agencies of certain obligations including financing guarantees or other agreements;
5	and
6	WHEREAS, the design and construction associated with this work of an Auxiliary
7	Enterprise building will be financed through the Rhode Island Health and Educational Building
8	Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and
9	WHEREAS, the total project costs associated with completion of the project through the
10	proposed financing method is fifty-one million five hundred thousand dollars ($51,500,000),
11	including cost of issuance. Debt service payments would be supported by revenues derived from
12	student fees and retail lease payments associated with the respective Auxiliary Enterprises of the
13	University of Rhode Island occupying said facility. Total debt service on the bonds is not
14	expected to exceed one hundred twelve million three hundred thousand dollars ($112,300,000) in
15	the aggregate based on an average interest rate of six (6%) percent; now, therefore be it
16	RESOLVED, that this General Assembly hereby approves financing in an amount not to
17	exceed fifty-one million five hundred thousand dollars ($51,500,000) for the Memorial Union
18	project for the auxiliary enterprise building on the University of Rhode Island campus; and be it
19	further
20	RESOLVED, that this Joint Resolution shall take effect upon passage by this General
21	Assembly.
22	SECTION 3. University of Rhode Island – Fraternity Circle Master Plan Implementation
23	WHEREAS, the Rhode Island Council on Postsecondary Education and the University of
24	Rhode Island are proposing a project which involves improvements to the sector of the Kingston
25	Campus devoted to fraternity and sorority houses, referred to as Fraternity Circle, on the Kingston
26	Campus; and
27	WHEREAS, the University of Rhode Island is underway with a utility and infrastructure
28	project to replace, improve, and reorganize aged, incrementally developed utility and paved
29	infrastructure in Fraternity Circle, referred to in the University’s Capital Improvement Plan as
30	“Fraternity Circle Improvements” project, including improvements to water, wastewater,
31	electrical, telecommunications, natural gas connections, and storm water management systems, as
32	well as roadways, walkways, and parking lots as a first phase of improvements reflected in a
33	“master plan” for this unique neighborhood of on-campus residences serving organizations of
34	students; and
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1	WHEREAS, the second phase of the overall improvements to Fraternity Circle, referred
2	to on the University’s Capital Improvement Plan as the “Fraternity Circle Master Plan
3	Implementation” project is needed to complete this district of campus; and
4	WHEREAS, the design and execution of this project will improve student life and the
5	campus's environmental impact; and
6	WHEREAS, these timely project commitments serve the objectives of both the University
7	and the local community; and
8	WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
9	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
10	and other public agencies of certain obligations including financing guarantees or other agreements;
11	and
12	WHEREAS, the design and construction will be financed through Rhode Island Health
13	and Educational Building Corporation revenue bonds, with an expected term of twenty (20) years;
14	and
15	WHEREAS, the project costs associated with completion of the project and proposed
16	financing method is two million one hundred thousand dollars ($2,100,000), including cost of
17	issuance. Debt Service payments would be supported by the University's unrestricted general
18	fund. Total debt service on the bonds is not expected to exceed three million seven hundred
19	thousand dollars ($3,700,000) in the aggregate based on an average interest rate of six percent
20	(6%); now, therefore be it
21	RESOLVED, that this General Assembly hereby approves financing in an amount not to
22	exceed two million one hundred thousand dollars ($2,100,000) for the Fraternity Circle Master
23	Plan Implementation project at the University of Rhode Island; and be it further
24	RESOLVED, that, this Joint Resolution shall take effect upon passage by this General
25	Assembly.
26	SECTION 4. University of Rhode Island – Combined Health & Counseling Center –
27	Auxiliary Enterprise
28	WHEREAS, the Council on Postsecondary Education and the University have a long-
29	standing commitment to the health and wellness of their students; and
30	WHEREAS, the University has a desire to create a one-stop center to address the
31	physical, emotional, and mental health of its students; and
32	WHEREAS, the Council on Postsecondary Education and the University of Rhode Island
33	are proposing a project which involves the construction of a new Combined Health & Counseling
34	Center to meet the ongoing and growing health needs of their students; and
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1	WHEREAS, the University engaged a qualified architectural firm, which has completed
2	an advanced planning study for this new building; and
3	WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
4	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
5	and other public agencies of certain obligations including financing guarantees or other agreements;
6	and
7	WHEREAS, the design and construction associated with this work of an Auxiliary
8	Enterprise building will be financed through the Rhode Island Health and Educational Building
9	Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and
10	WHEREAS, the total project costs associated with completion of the project through the
11	proposed financing method is twenty-six million nine hundred thousand dollars
12	($26,900,000), including cost of issuance. Debt service payments would be supported by
13	revenues derived from student fees associated with the respective Auxiliary Enterprises of the
14	University of Rhode Island occupying said facility. Total debt service on the bonds is not
15	expected to exceed fifty-eight million seven hundred thousand dollars ($58,700,000) in the
16	aggregate based on an average interest rate of six (6%) percent; now, therefore be it
17	RESOLVED, that this General Assembly hereby approves financing in an amount not to
18	exceed twenty-six million nine hundred thousand dollars ($26,900,000) for the Combined
19	Health & Counseling Center project for the auxiliary enterprise building on the University of
20	Rhode Island campus; and be it further
21	RESOLVED, that, this Joint Resolution shall take effect upon passage by this General
22	Assembly.
23	SECTION 5. Department of Corrections – High Security Center Renovation
24	WHEREAS, the High Security Center was opened in 1981 to manage the state’s most
25	dangerous offenders as well as those requiring protection from inmate general protection and
26	has a residential treatment unit to treat inmates with mental health crisis or more intensive
27	mental health issues; and
28	WHEREAS, the High Security Center’s capacity is listed at 138 inmates within 6
29	housing modules, but its current census is 86; and
30	WHEREAS, the High Security Center per inmate cost in the facility is $240,000,
31	which ranks among the highest in the nation due to poor physical design, specifically the small
32	housing modules and the number of staff required to supervise the inmates; and
33	WHEREAS, the poor physical designed housing structure results in a 0.85 inmate to 1
34	staff ratio; and
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1	WHEREAS, due to the age and poorly designed housing units, the High Security
2	Center requires significant infrastructure upgrades including new housing units featuring
3	operational improvements. The funding requested will be utilized to renovate the existing
4	housing units, with potential expansion to achieve operational efficiencies which will improve
5	programming space, alter facility design to reduce correctional officer – inmate ratios, provide
6	energy/maintenance efficiencies and increase the safety of correctional officers; and
7	WHEREAS, the capital costs associated with completion of the project are estimated to
8	be sixty million dollars ($60,000,000). This includes $15,000,000 from the Rhode Island
9	Capital Plan Fund for the renovation of the High Security Center and $45,000,000 from the
10	issuance of Certificates of Participation. The total issuance would be $45,000,000, with lease
11	payments over fifteen (15) years on the $45,000,000 projected to be $66,156,044 assuming an
12	average coupon of five percent (5.0%). The lease payments would be financed within the
13	Department of Administration from general revenue appropriations, therefore be it
14	RESOLVED, that a renovation of the High Security Center as part of the Department
15	of Corrections is critical to provide operations that are efficient, effective and safe for
16	Correctional staff; and be it further
17	RESOLVED, that this General Assembly hereby approves the issuance of certificate of
18	participation in an amount not to exceed $45,000,000 for the renovation of High Security, part
19	of the Department of Corrections, and be it further
20	RESOLVED, that, this Joint Resolution shall take effect upon passage by this General
21	Assembly.
22	SECTION 6. This Article shall take effect upon passage.
23	ARTICLE 7
24	RELATING TO MOTOR VEHICLES
25	SECTION 1. Section 31-2-27 of the General Laws in Chapter 31-2 entitled "Division of
26	Motor Vehicles" is hereby amended to read as follows:
27	31-2-27. Technology surcharge fee.
28	(a) The division of motor vehicles shall collect a technology surcharge fee of one dollar
29	and fifty cents ($1.50) two dollars and fifty cents ($2.50) per transaction for every division of
30	motor vehicles' fee transaction, except as otherwise provided by law. One dollar and fifty cents
31	($1.50) of each two dollars and fifty cents ($2.50) All technology surcharge fees collected
32	pursuant to this section shall be deposited into the information technology investment fund
33	established pursuant to § 42-11-2.5 and shall be used for project-related payments and/or ongoing
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1	maintenance of and enhancements to the division of motor vehicles' computer system and to
2	reimburse the information technology investment fund for advances made to cover project-related
3	payments. The remaining one dollar ($1.00) shall be deposited in accordance with (b).
4	Additionally, deposits to the information technology investment fund shall continue until June 30,
5	2022 and thereafter such deposits shall be made in accordance with subsection (b).
6	(b) Authorization to collect the technology surcharge fee provided for in subsection (a)
7	shall sunset and expire on June 30, 2022.
8	(b) The remaining one dollar ($1.00) of each two dollars and fifty cents ($2.50) collected
9	pursuant to subsection (a) shall be deposited into an account managed by the division of motor
10	vehicles and restricted to the project-related payments and/or ongoing maintenance of and
11	enhancements to the division of motor vehicles’ computer system. Beginning July 1, 2022, the
12	full two dollars and fifty cents ($2.50) shall be deposited into that the division of motor vehicles
13	restricted account on an ongoing basis.
14	SECTION 2. Section 31-3-33 of the General Laws in Chapter 31-3 entitled "Registration
15	of Vehicles" is hereby amended to read as follows:
16	31-3-33. Renewal of registration.
17	(a) Application for renewal of a vehicle registration shall be made by the owner on a
18	proper application form and by payment of the registration fee for the vehicle as provided by law.
19	(b) The division of motor vehicles may receive applications for renewal of registration,
20	and may grant the renewal and issue new registration cards and plates at any time prior to
21	expiration of registration.
22	(c) Upon renewal, owners will be issued a renewal sticker for each registration plate that
23	shall be placed at the bottom, right-hand corner of the plate. Owners shall be issued a new, fully
24	reflective plate beginning January 1, 2020, at the time of initial registration or at the renewal of an
25	existing registration and reissuance will be conducted no less than every ten (10) years.
26	SECTION 3. Section 31-3.1-38 of the General Laws in Chapter 31-3.1 entitled
27	"Certificates of Title and Security Interests" is hereby amended to read as follows:
28	31-3.1-38. Effective dates -- Applicability.
29	This chapter shall apply to all model vehicles designated as 2001 models and all
30	subsequent model year vehicles. All vehicles designated as model years prior to 2001 shall be
31	excluded from these provisions, provided that no title certificate shall be required once a vehicle
32	is twenty (20) years old.
33	SECTION 4. This article shall take effect upon passage.
34	ARTICLE 8
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1	RELATING TO TRANSPORTATION
2	SECTION 1. Section 31-25-21 of the General Laws in Chapter 31-25 entitled "Size,
3	Weight, and Load Limits" is hereby amended to read as follows:
4	31-25-21. Power to permit excess size or weight of loads. [Effective January 1, 2019.]
5	(a) The department of transportation, with respect to highways under its jurisdiction,
6	may, in its discretion, upon application in writing and good cause being shown for it, approve the
7	issuance of a special permit in writing by the division of motor vehicles authorizing the applicant
8	to operate or move a vehicle, or combination of vehicles, of a size or weight of vehicle or load
9	exceeding eighty thousand pounds (80,000 lbs.) or otherwise not in conformity with the
10	provisions of chapters 1 -- 27 of this title upon any highway under the jurisdiction of the party
11	granting the permit and for the maintenance of which the party is responsible. Permits that have
12	been issued for a full year shall not be required to be renewed for the period of time for which
13	payment has been made and the application and other required documentation has been
14	completed and filed. Provided, that neither the department of transportation nor the local
15	authorities may approve the issuance of permits for divisible loads weighing in excess of one
16	hundred four thousand-eight hundred pounds (104,800 lbs.), gross vehicle weight, for five-axle
17	(5) vehicles and seventy-six thousand six hundred fifty pounds (76,650 lbs.), gross vehicle
18	weight, for three-axle (3) vehicles.
19	(1) Provided, however, that for milk products, any vehicle carrying fluid milk products
20	shall be considered a load that cannot be easily dismantled or divided.
21	(b) The director of the department of transportation may enter into agreements with other
22	states, the District of Columbia, and Canadian provinces providing for the reciprocal enforcement
23	of the overweight or over-dimensional vehicle permit laws of those jurisdictions entering into the
24	agreement.
25	(c) Trip permit fee. A fee of twenty dollars ($20.00) forty dollars ($40.00) shall be paid to
26	the division of motor vehicles for the issuance of each non-reducible vehicle or load permit.;
27	provided, however, applicants seeking a permit for a non-divisible load exceeding one hundred
28	thirty thousand pounds (130,000 lbs.) shall pay a fee of three hundred dollars ($300.00) to the
29	division of motor vehicles for consideration of a special trip permit approved by the department
30	of transportation pursuant to subsection (e).
31	(d) Annual fee. An annual fee of three hundred dollars ($300) four hundred dollars
32	($400) paid to the division of motor vehicles shall exempt the payor from the necessity of paying
33	trip permit fees for non-divisible loads of less than one hundred thirty thousand pounds (130,000
34	lbs.) as found in subsection (c). However, payment of the fee shall not be deemed to authorize
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1	non-compliance with the rules and regulations promulgated by the department of transportation
2	entitled "State of Rhode Island Manual for Overweight and Oversize Vehicle Permits".
3	(e) Blanket construction equipment permits may be issued, as determined by the
4	department of transportation, for intrastate movement of non-reducible loads upon payment of the
5	fee set forth in subsection (d). The duration of the blanket permit may not exceed one year, and
6	the construction equipment permit load shall be limited to a minimum overall length of fifty-five
7	feet (55'), a maximum overall length of eighty feet (80'), and a maximum width of twelve feet
8	four inches (12' 4"), provided that neither the division of motor vehicles nor local authorities may
9	issue blanket permits for non-divisible loads weighing in excess of one hundred thirty thousand
10	pounds (130,000 lbs.) on less than six (6) axles, with individual axle weights exceeding twenty-
11	five thousand pounds (25,000 lbs.); provided, further, that the department of transportation, with
12	respect to highways under its jurisdiction, may, in its discretion and upon application and for
13	good cause shown, approve the issuance of a special trip permit authorizing the applicant to
14	exceed one hundred thirty thousand pounds (130,000 lbs.) for non-divisible loads. A flashing
15	amber light shall be in operation above the highest point of the vehicle and shall be visible from
16	both the front and rear of the vehicle; and signs and red warning flags shall be affixed to all
17	extremities. All blanket permits issued in accordance with this section shall be effective during
18	daylight and night-time hours for all over-dimensional moves made and travel shall be allowed on
19	state highways. The following restrictions on travel times shall apply to:
20	(1) Freeways -- in general.
21	No travel will be allowed between the hours of 7:00 am and 9:00 am or between 3:00 pm
22	and 7:00 pm on any day of the week.
23	(2) Arterial roadways.
24	No travel will be allowed between the hours of 7:00 am and 9:00 am or between 3:00 pm
25	and 7:00 pm, Monday through Friday.
26	(3) Holidays.
27	Memorial Day, Victory Day, Labor Day and Columbus Day -- No Saturday, Sunday, or
28	Monday day or night travel.
29	Thanksgiving Day -- No Wednesday night or Thursday day or night travel. No travel on
30	Wednesday through Sunday of Thanksgiving week in any calendar year.
31	Independence Day, Veterans Day, Christmas Day -- No day or night travel and no travel
32	the previous night.
33	Easter Sunday. No Saturday night or Sunday travel.
34	(f) Construction equipment blanket permits shall not be granted for travel over the
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1	following bridges:
2	Blackstone River Viaduct 750 carrying I-295 northbound and southbound over the
3	Blackstone River;
4	Kingston Road Bridge No. 403 carrying I-95 northbound and southbound over Kingston
5	Road.
6	(g) Travel of blanket permitted construction equipment through zones with reductions in
7	lane width such as construction zones will not be allowed. Prior to travel, blanket permit holders
8	are responsible to verify the location of construction zones and lane width reductions. Locations
9	of lane width reduction zones are available through the state department of transportation's
10	construction office.
11	SECTION 2. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor
12	Fuel Tax" is hereby amended to read as follows:
13	31-36-20. Disposition of proceeds.
14	(a) Notwithstanding any other provision of law to the contrary, all moneys paid into the
15	general treasury under the provisions of this chapter or chapter 37 of this title, and title 46 shall be
16	applied to and held in a separate fund and be deposited in any depositories that may be selected
17	by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal
18	Surface Transportation Fund; provided, that in fiscal year 2004 for the months of July through
19	April six and eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing
20	for the liability under the provisions of § 31-36-7, less refunds and credits, shall be transferred to
21	the Rhode Island public transit authority as provided under § 39-18-21. For the months of May
22	and June in fiscal year 2004, the allocation shall be five and five hundredth cents ($0.0505).
23	Thereafter, until fiscal year 2006, the allocation shall be six and twenty-five hundredth cents
24	($0.0625). For fiscal years 2006 through FY 2008, the allocation shall be seven and twenty-five
25	hundredth cents ($0.0725); provided, that expenditures shall include the costs of a market survey
26	of non-transit users and a management study of the agency to include the feasibility of moving
27	the Authority into the Department of Transportation, both to be conducted under the auspices of
28	the state budget officer. The state budget officer shall hire necessary consultants to perform the
29	studies, and shall direct payment by the Authority. Both studies shall be transmitted by the
30	Budget Officer to the 2006 session of the General Assembly, with comments from the Authority.
31	For fiscal year 2009, the allocation shall be seven and seventy-five hundredth cents ($0.0775), of
32	which one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental
33	protection fee pursuant to § 46-12.9-11. For fiscal years 2010 and thereafter, the allocation shall
34	be nine and seventy-five hundredth cents ($0.0975), of which of one-half cent ($0.005) shall be
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1	derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-
2	11. For fiscal years 2020 and thereafter, to the extent that the gasoline tax is adjusted in
3	accordance with § 31-36-7, the allocation shall be ten and twenty-five hundredth cents ($0.1025),
4	of which one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon
5	environmental protection fee pursuant to § 46-12.9-11. One cent ($0.01) per gallon shall be
6	transferred to the Elderly/Disabled Transportation Program of the department of human services,
7	and the remaining cents per gallon shall be available for general revenue as determined by the
8	following schedule:
9	(i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for
10	general revenue.
11	(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for
12	general revenue.
13	(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general
14	revenue.
15	(iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for
16	general revenue.
17	(v) For the months of July through April in fiscal year 2004, one and four-tenths cents
18	($0.014) shall be available for general revenue. For the months of May through June in fiscal year
19	2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,
20	until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year
21	2006 through fiscal year 2009 one cent ($0.01) shall be available for general revenue.
22	(2) All deposits and transfers of funds made by the tax administrator under this section,
23	including those to the Rhode Island public transit authority, the department of human services, the
24	Rhode Island turnpike and bridge authority, and the general fund, shall be made within twenty-
25	four (24) hours of receipt or previous deposit of the funds in question.
26	(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of
27	Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined
28	by the Director of the Rhode Island Department of Transportation, or his or her designee, or at the
29	election of the Director of the Rhode Island Department of Transportation, with the approval of
30	the Director of the Department of Administration, to an indenture trustee, administrator, or other
31	third party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax
32	imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint
33	Resolution and Enactment Approving the Financing of Various Department of Transportation
34	Projects adopted during the 2003 session of the General Assembly, and approved by the
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1	Governor.
2	(4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be
3	transferred to the Rhode Island Turnpike and Bridge Authority to be used for maintenance,
4	operations, capital expenditures and debt service on any of its projects as defined in chapter 12 of
5	title 24 in lieu of a toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge
6	authority is authorized to remit to an indenture trustee, administrator, or other third-party
7	fiduciary any or all of the foregoing transfers in order to satisfy and/or secure its revenue bonds
8	and notes and/or debt service payments thereon, including, but not limited to, the bonds and notes
9	issued pursuant to the Joint Resolution set forth in Section 3 of Article 6 of Chapter 23 of the
10	Public Laws of 2010. Notwithstanding any other provision of said Joint Resolution, the Rhode
11	Island turnpike and bridge authority is expressly authorized to issue bonds and notes previously
12	authorized under said Joint Resolution for the purpose of financing all expenses incurred by it for
13	the formerly authorized tolling of the Sakonnet River Bridge and the termination thereof.
14	(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund
15	shall be dedicated to the department of transportation, subject to annual appropriation by the
16	general assembly. The director of transportation shall submit to the general assembly, budget
17	office and office of the governor annually an accounting of all amounts deposited in and credited
18	to the fund together with a budget for proposed expenditures for the succeeding fiscal year in
19	compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state
20	controller is authorized and directed to draw his or her orders upon the general treasurer for the
21	payments of any sum or portion of the sum that may be required from time to time upon receipt
22	of properly authenticated vouchers.
23	(c) At any time the amount of the fund is insufficient to fund the expenditures of the
24	department of transportation, not to exceed the amount authorized by the general assembly, the
25	general treasurer is authorized, with the approval of the governor and the director of
26	administration, in anticipation of the receipts of monies enumerated in § 31-36-20 to advance
27	sums to the fund, for the purposes specified in § 31-36-20, any funds of the state not specifically
28	held for any particular purpose. However, all the advances made to the fund shall be returned to
29	the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt
30	of monies to the extent of the advances.
31	SECTION 3. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled
32	"Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as
33	follows:
34	39-18.1-5. Allocation of funds.
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1	(a) The monies in the highway maintenance fund to be directed to the department of
2	transportation pursuant to subsection (a)(1) of this section shall be allocated through the
3	transportation improvement program process to provide the state match for federal transportation
4	funds, in place of borrowing, as approved by the state planning council. The expenditure of
5	moneys in the highway maintenance fund shall only be authorized for projects that appear in the
6	state's transportation improvement program.
7	(b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the
8	department of transportation will allocate necessary funding to programs that are designed to
9	eliminate structural deficiencies of the state's bridge, road, and maintenance systems and
10	infrastructure.
11	(c) Provided, further, that beginning July 1, 2015, five percent (5%) of available proceeds
12	in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island
13	public transit authority for operating expenditures.
14	(d) Provided, further, that from July 1, 2017, through June 30, 2019 June 30, 2020, in
15	addition to the amount above, the Rhode Island public transit authority shall receive an amount of
16	not less than five million dollars ($5,000,000) each fiscal year.
17	(e) Provided, further, that the Rhode Island public transit authority shall convene a
18	coordinating council consisting of those state agencies responsible for meeting the needs of low-
19	income seniors and persons with disabilities, along with those stakeholders that the authority
20	deems appropriate and are necessary to inform, develop, and implement the federally required
21	Coordinated Public Transit Human Services Transportation Plan.
22	The council shall develop, as part of the state's federally required plan, recommendations
23	for the appropriate and sustainable funding of the free-fare program for low-income seniors and
24	persons with disabilities, while maximizing the use of federal funds available to support the
25	transportation needs of this population.
26	The council shall report these recommendations to the governor, the speaker of the house
27	of representatives, and the president of the senate no later than November 1, 2018.
28	(f) Provided, further, that beginning July 1, 2019, the department of transportation shall
29	reimburse the division of motor vehicles for the cost of salaries and benefits for customer service
30	representatives (I & II) or equivalent positions incurred for collecting monies described in § 39-
31	18.1-4 (b).
32	SECTION 4. This article shall take effect upon passage.
33	ARTICLE 9
34	RELATING TO LOCAL AID
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1	SECTION 1. Section 44-3-3 of the General Laws in Chapter 44-3 entitled "Property
2	Subject to Taxation" is hereby amended to read as follows:
3	44-3-3. Property exempt.
4	(a) The following property is exempt from taxation:
5	(1) Property belonging to the state, except as provided in § 44-4-4.1;
6	(2) Lands ceded or belonging to the United States;
7	(3) Bonds and other securities issued and exempted from taxation by the government of
8	the United States or of this state;
9	(4) Real estate, used exclusively for military purposes, owned by chartered or
10	incorporated organizations approved by the adjutant general and composed of members of the
11	national guard, the naval militia, or the independent, chartered-military organizations;
12	(5) Buildings for free public schools, buildings for religious worship, and the land upon
13	which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so
14	far as the buildings and land are occupied and used exclusively for religious or educational
15	purposes;
16	(6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or
17	the minimum lot size for zone in which the dwelling house is located, whichever is the greater,
18	owned by, or held in trust for, any religious organization and actually used by its officiating
19	clergy; provided, further, that in the town of Charlestown, where the property previously
20	described in this paragraph is exempt in total, along with dwelling houses and the land on which
21	they stand in Charlestown, not exceeding one acre in size, or the minimum lot size for zone in
22	which the dwelling house is located, whichever is the greater, owned by, or held in trust for, any
23	religious organization and actually used by its officiating clergy, or used as a convent, nunnery, or
24	retreat center by its religious order;
25	(7) Intangible personal property owned by, or held in trust for, any religious or charitable
26	organization, if the principal or income is used or appropriated for religious or charitable
27	purposes;
28	(8) Buildings and personal estate owned by any corporation used for a school, academy,
29	or seminary of learning, and of any incorporated public charitable institution, and the land upon
30	which the buildings stand and immediately surrounding them to an extent not exceeding one acre,
31	so far as they are used exclusively for educational purposes, but no property or estate whatever is
32	hereafter exempt from taxation in any case where any part of its income or profits, or of the
33	business carried on there, is divided among its owners or stockholders; provided, however, that
34	unless any private nonprofit corporation organized as a college or university located in the town
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1	of Smithfield reaches a memorandum of agreement with the town of Smithfield, the town of
2	Smithfield shall bill the actual costs for police, fire, and rescue services supplied, unless
3	otherwise reimbursed, to said corporation commencing March 1, 2014;
4	(9) Estates, persons, and families of the president and professors for the time being of
5	Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer's
6	estate, person, and family included, but only to the extent that any person had claimed and
7	utilized the exemption prior to, and for a period ending, either on or after December 31, 1996;
8	(10) Property especially exempt by charter unless the exemption has been waived in
9	whole or in part;
10	(11) Lots of land exclusively for burial grounds;
11	(12) Property, real and personal, held for, or by, an incorporated library, society, or any
12	free public library, or any free public library society, so far as the property is held exclusively for
13	library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor
14	generally, or for a nonprofit hospital for the sick or disabled so far as the property is used
15	exclusively for the purpose for which the nonprofit hospital is incorporated, and provided that
16	where part of a property owned by a nonprofit hospital is used exclusively for hospital purposes
17	and part of said property is not used exclusively for hospital purposes, then the part of said
18	property used exclusively for hospital purposes shall be exempt from taxation, and the personal
19	property located within said property used exclusively for hospital purposes shall be exempt from
20	taxation;
21	(13) Real or personal estate belonging to, or held in trust for, the benefit of incorporated
22	organizations of veterans of any war in which the United States has been engaged, the parent
23	body of which has been incorporated by act of Congress, to the extent of four hundred thousand
24	dollars ($400,000) if actually used and occupied by the association; provided, that the city council
25	of the city of Cranston may by ordinance exempt the real or personal estate as previously
26	described in this subdivision located within the city of Cranston to the extent of five hundred
27	thousand dollars ($500,000);
28	(14) Property, real and personal, held for, or by, the fraternal corporation, association, or
29	body created to build and maintain a building or buildings for its meetings or the meetings of the
30	general assembly of its members, or subordinate bodies of the fraternity, and for the
31	accommodation of other fraternal bodies or associations, the entire net income of which real and
32	personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or
33	asylums, a home or homes, a school or schools, for the free education or relief of the members of
34	the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity,
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1	their wives, widows, or orphans, and any fund given or held for the purpose of public education,
2	almshouses, and the land and buildings used in connection therewith;
3	(15) Real estate and personal property of any incorporated volunteer fire engine company
4	or incorporated volunteer ambulance or rescue corps in active service;
5	(16) The estate of any person who, in the judgment of the assessors, is unable from
6	infirmity or poverty to pay the tax; provided, that in the towns of Burrillville and West
7	Greenwich, the tax shall constitute a lien for five (5) years on the property where the owner is
8	entitled to the exemption. At the expiration of five (5) years, the lien shall be abated in full.
9	Provided, if the property is sold or conveyed, or if debt secured by the property is refinanced
10	during the five-year (5) period, the lien immediately becomes due and payable; any person
11	claiming the exemption aggrieved by an adverse decision of an assessor shall appeal the decision
12	to the local board of tax review and thereafter according to the provisions of § 44-5-26;
13	(17) Household furniture and family stores of a housekeeper in the whole, including
14	clothing, bedding, and other white goods, books, and all other tangible personal property items
15	that are common to the normal household;
16	(18) Improvements made to any real property to provide a shelter and fallout protection
17	from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided,
18	that the improvements meet applicable standards for shelter construction established, from time to
19	time, by the Rhode Island emergency management agency. The improvements are deemed to
20	comply with the provisions of any building code or ordinance with respect to the materials or the
21	methods of construction used and any shelter or its establishment is deemed to comply with the
22	provisions of any zoning code or ordinance;
23	(19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator;
24	(20) Manufacturer's inventory.
25	(i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to
26	be a manufacturer within a city or town within this state if that person uses any premises, room,
27	or place in it primarily for the purpose of transforming raw materials into a finished product for
28	trade through any or all of the following operations: adapting, altering, finishing, making, and
29	ornamenting; provided, that public utilities; non-regulated power producers commencing
30	commercial operation by selling electricity at retail or taking title to generating facilities on or
31	after July 1, 1997; building and construction contractors; warehousing operations, including
32	distribution bases or outlets of out-of-state manufacturers; and fabricating processes incidental to
33	warehousing or distribution of raw materials, such as alteration of stock for the convenience of a
34	customer; are excluded from this definition;
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1	(ii) For the purposes of this section and §§ 44-4-10 and 44-5-38, the term "manufacturer's
2	inventory", or any similar term, means and includes the manufacturer's raw materials, the
3	manufacturer's work in process, and finished products manufactured by the manufacturer in this
4	state, and not sold, leased, or traded by the manufacturer or its title or right to possession
5	divested; provided, that the term does not include any finished products held by the manufacturer
6	in any retail store or other similar selling place operated by the manufacturer whether or not the
7	retail establishment is located in the same building in which the manufacturer operates the
8	manufacturing plant;
9	(iii) For the purpose of § 44-11-2, a "manufacturer" is a person whose principal business
10	in this state consists of transforming raw materials into a finished product for trade through any or
11	all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be
12	principally engaged if the gross receipts that person derived from the manufacturing operations in
13	this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than
14	fifty percent (50%) of the total gross receipts that person derived from all the business activities
15	in which that person engaged in this state during the taxable year. For the purpose of computing
16	the percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished
17	products manufactured by the manufacturer in this state, even though the manufacturer's store or
18	other selling place may be at a different location from the location of the manufacturer's
19	manufacturing plant in this state, are deemed to have been derived from manufacturing;
20	(iv) Within the meaning of the preceding paragraphs of this subdivision, the term
21	"manufacturer" also includes persons who are principally engaged in any of the general activities
22	coded and listed as establishments engaged in manufacturing in the Standard Industrial
23	Classification Manual prepared by the Technical Committee on Industrial Classification, Office
24	of Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as
25	revised from time to time, but eliminating as manufacturers those persons, who, because of their
26	limited type of manufacturing activities, are classified in the manual as falling within the trade
27	rather than an industrial classification of manufacturers. Among those thus eliminated, and
28	accordingly also excluded as manufacturers within the meaning of this paragraph, are persons
29	primarily engaged in selling, to the general public, products produced on the premises from which
30	they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and
31	custom tailors, except, that a person who manufactures bakery products for sale primarily for
32	home delivery, or through one or more non-baking retail outlets, and whether or not retail outlets
33	are operated by the person, is a manufacturer within the meaning of this paragraph;
34	(v) The term "Person" means and includes, as appropriate, a person, partnership, or
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1	corporation; and
2	(vi) The department of revenue shall provide to the local assessors any assistance that is
3	necessary in determining the proper application of the definitions in this subdivision;
4	(21) Real and tangible personal property acquired to provide a treatment facility used
5	primarily to control the pollution or contamination of the waters or the air of the state, as defined
6	in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been
7	constructed, reconstructed, erected, installed, or acquired in furtherance of federal or state
8	requirements or standards for the control of water or air pollution or contamination, and certified
9	as approved in an order entered by the director of environmental management. The property is
10	exempt as long as it is operated properly in compliance with the order of approval of the director
11	of environmental management; provided, that any grant of the exemption by the director of
12	environmental management in excess of ten (10) years is approved by the city or town in which
13	the property is situated. This provision applies only to water and air pollution control properties
14	and facilities installed for the treatment of waste waters and air contaminants resulting from
15	industrial processing; furthermore, it applies only to water or air pollution control properties and
16	facilities placed in operation for the first time after April 13, 1970;
17	(22) New manufacturing machinery and equipment acquired or used by a manufacturer
18	and purchased after December 31, 1974. Manufacturing machinery and equipment is defined as:
19	(i) Machinery and equipment used exclusively in the actual manufacture or conversion of
20	raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision
21	(20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and
22	development or for quality assurance of its manufactured products;
23	(ii) Machinery and equipment that is partially used in the actual manufacture or
24	conversion of raw materials or goods in process of manufacture by a manufacturer, as defined in
25	subdivision (20), and machinery, fixtures, and equipment used by a manufacturer for research and
26	development or for quality assurance of its manufactured products, to the extent to which the
27	machinery and equipment is used for the manufacturing processes, research and development, or
28	quality assurance. In the instances where machinery and equipment is used in both manufacturing
29	and/or research and development and/or quality assurance activities and non-manufacturing
30	activities, the assessment on machinery and equipment is prorated by applying the percentage of
31	usage of the equipment for the manufacturing, research and development, and quality-assurance
32	activity to the value of the machinery and equipment for purposes of taxation, and the portion of
33	the value used for manufacturing, research and development, and quality assurance is exempt
34	from taxation. The burden of demonstrating this percentage usage of machinery and equipment
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1	for manufacturing and for research and development and/or quality assurance of its manufactured
2	products rests with the manufacturer; and
3	(iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was
4	purchased after July 1, 1997; provided that the city or town council of the city or town in which
5	the machinery and equipment is located adopts an ordinance exempting the machinery and
6	equipment from taxation. For purposes of this subsection, city councils and town councils of any
7	municipality may, by ordinance, wholly or partially exempt from taxation the machinery and
8	equipment discussed in this subsection for the period of time established in the ordinance and
9	may, by ordinance, establish the procedures for taxpayers to avail themselves of the benefit of
10	any exemption permitted under this section; provided, that the ordinance does not apply to any
11	machinery or equipment of a business, subsidiary, or any affiliated business that locates or
12	relocates from a city or town in this state to another city or town in the state;
13	(23) Precious metal bullion, meaning any elementary metal that has been put through a
14	process of melting or refining, and that is in a state or condition that its value depends upon its
15	content and not its form. The term does not include fabricated precious metal that has been
16	processed or manufactured for some one or more specific and customary industrial, professional,
17	or artistic uses;
18	(24) Hydroelectric power-generation equipment, which includes, but is not limited to,
19	turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers,
20	protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The
21	hydroelectric power-generation equipment must have been purchased after July 1, 1979, and
22	acquired or used by a person or corporation who or that owns or leases a dam and utilizes the
23	equipment to generate hydroelectric power;
24	(25) Subject to authorization by formal action of the council of any city or town, any real
25	or personal property owned by, held in trust for, or leased to an organization incorporated under
26	chapter 6 of title 7, as amended, or an organization meeting the definition of "charitable trust" set
27	out in § 18-9-4, as amended, or an organization incorporated under the not-for-profits statutes of
28	another state or the District of Columbia, the purpose of which is the conserving of open space, as
29	that term is defined in chapter 36 of title 45, as amended, provided the property is used
30	exclusively for the purposes of the organization;
31	(26) Tangible personal property, the primary function of which is the recycling, reuse, or
32	recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from,
33	or the treatment of "hazardous wastes", as defined in § 23-19.1-4, where the "hazardous wastes"
34	are generated primarily by the same taxpayer and where the personal property is located at, in, or
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1	adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order
2	from the director of the department of environmental management certifying that the tangible
3	personal property has this function, which order effects a conclusive presumption that the tangible
4	personal property qualifies for the exemption under this subdivision. If any information relating
5	to secret processes or methods of manufacture, production, or treatment is disclosed to the
6	department of environmental management only to procure an order, and is a "trade secret" as
7	defined in § 28-21-10(b), it shall not be open to public inspection or publicly disclosed unless
8	disclosure is otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23;
9	(27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4
10	has been paid;
11	(28) Real and personal property of the Providence Performing Arts Center, a non-
12	business corporation as of December 31, 1986;
13	(29) Tangible personal property owned by, and used exclusively for the purposes of, any
14	religious organization located in the city of Cranston;
15	(30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit
16	corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited
17	liability company that is formed in connection with, or to facilitate the acquisition of, the
18	Providence YMCA Building;
19	(31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-
20	for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited
21	liability company that is formed in connection with, or to facilitate the acquisition of, the
22	properties designated as the Meeting Street National Center of Excellence on Eddy Street in
23	Providence, Rhode Island;
24	(32) The buildings, personal property, and land upon which the buildings stand, located
25	on Pomham Island, East Providence, currently identified as Assessor's Map 211, Block 01, Parcel
26	001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet
27	and is located approximately eight hundred sixty feet (860'), more or less, from the shore, and
28	limited exclusively to these said buildings, personal estate and land, provided that said property is
29	owned by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is
30	used exclusively for a lighthouse;
31	(33) The Stadium Theatre Performing Arts Centre building located in Monument Square,
32	Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by
33	the Stadium Theatre Foundation, a Rhode Island nonprofit corporation;
34	(34) Real and tangible personal property of St. Mary Academy -- Bay View, located in
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1	East Providence, Rhode Island;
2	(35) Real and personal property of East Bay Community Action Program and its
3	predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt
4	corporation under § 501(c)(3) of the United States Internal Revenue Code;
5	(36) Real and personal property located within the city of East Providence of the
6	Columbus Club of East Providence, a Rhode Island charitable nonprofit corporation;
7	(37) Real and personal property located within the city of East Providence of the
8	Columbus Club of Barrington, a Rhode Island charitable nonprofit corporation;
9	(38) Real and personal property located within the city of East Providence of Lodge 2337
10	BPO Elks, a Rhode Island nonprofit corporation;
11	(39) Real and personal property located within the city of East Providence of the St.
12	Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation;
13	(40) Real and personal property located within the city of East Providence of the Trustees
14	of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island
15	nonprofit corporation;
16	(41) Real and personal property located on the first floor of 90 Leonard Avenue within
17	the city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation;
18	(42) Real and personal property located within the city of East Providence of the Cape
19	Verdean Museum Exhibit, a Rhode Island nonprofit corporation;
20	(43) The real and personal property owned by a qualified 501(c)(3) organization that is
21	affiliated and in good standing with a national, congressionally chartered organization and
22	thereby adheres to that organization's standards and provides activities designed for recreational,
23	educational, and character building purposes for children from ages six (6) years to seventeen
24	(17) years;
25	(44) Real and personal property of the Rhode Island Philharmonic Orchestra and Music
26	School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3)
27	of the United States Internal Revenue Code;
28	(45) The real and personal property located within the town of West Warwick at 211
29	Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven
30	hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East
31	Greenwich, a Rhode Island nonprofit corporation;
32	(46) Real and personal property of the Comprehensive Community Action Program, a
33	qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
34	(47) Real and personal property located at 52 Plain Street, within the city of Pawtucket of
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1	the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation;
2	(48) Renewable energy resources, as defined in § 39-26-5, used in residential systems
3	and associated equipment used therewith in service after December 31, 2015;
4	(49) Renewable energy resources, as defined in § 39-26-5, if employed by a
5	manufacturer, as defined in subsection (a) of this section, shall be exempt from taxation in
6	accordance with subsection (a) of this section;
7	(50) Real and personal property located at 415 Tower Hill Road within the town of North
8	Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under §
9	501(c)(3) of the United States Internal Revenue Code;
10	(51) As an effort to promote business growth, tangible business or personal property, in
11	whole or in part, within the town of Charlestown's community limits, subject to authorization by
12	formal action of the town council of the town of Charlestown;
13	(52) All real and personal property located at 1300 Frenchtown Road, within the town of
14	East Greenwich, identified as assessor's map 027, plat 019, lot 071, and known as the New
15	England Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3)
16	of the United States Internal Revenue Code;
17	(53) Real and tangible personal property of Mount Saint Charles Academy located within
18	the city of Woonsocket, specifically identified as the following assessor's plats and lots: Logee
19	Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310;
20	Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47;
21	(54) Real and tangible personal property of Steere House, a Rhode Island nonprofit
22	corporation, located in Providence, Rhode Island;
23	(55) Real and personal property located within the town of West Warwick of Tides
24	Family Services, Inc., a Rhode Island nonprofit corporation;
25	(56) Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit
26	corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444;
27	(57) Real and personal property located within the town of Middletown of Lucy's Hearth,
28	a Rhode Island nonprofit corporation;
29	(58) Real and tangible personal property of Habitat for Humanity of Rhode Island--
30	Greater Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode
31	Island;
32	(59) Real and personal property of the Artic Playhouse, a Rhode Island nonprofit
33	corporation, located in the town of West Warwick at 1249 Main Street;
34	(60) Real and personal property located at 321 Main Street, within the town of South
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1	Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under §
2	501(c)(3) of the United States Internal Revenue Code;
3	(61) Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit §
4	501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city
5	council of Pawtucket may from time to time determine;
6	(62) Real and personal property of North Kingstown, Exeter Animal Protection League,
7	Inc., dba "Pet Refuge," 500 Stony Lane, a Rhode Island nonprofit corporation, located in North
8	Kingstown, Rhode Island;
9	(63) Real and personal property located within the city of East Providence of Foster
10	Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable
11	nonprofit corporation; and
12	(64) Real and personal property located at 54 Kelly Avenue within the town of East
13	Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island
14	nonprofit corporation.
15	(b) Except as provided below, when a city or town taxes a for-profit hospital facility, the
16	value of its real property shall be the value determined by the most recent full revaluation or
17	statistical property update performed by the city or town; provided, however, in the year a
18	nonprofit hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-
19	profit hospital facility is initially established, the value of the real property and personal property
20	of the for-profit hospital facility shall be determined by a valuation performed by the assessor for
21	the purpose of determining an initial assessed value of real and personal property, not previously
22	taxed by the city or town, as of the most recent date of assessment pursuant to § 44-5-1, subject to
23	a right of appeal by the for-profit hospital facility which shall be made to the city or town tax
24	assessor with a direct appeal from an adverse decision to the Rhode Island superior court business
25	calendar.
26	A "for-profit hospital facility" includes all real and personal property affiliated with any
27	hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23.
28	Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-
29	profit hospital facility under § 44-3-9 or other laws specific to the particular city or town relating
30	to stabilization agreements. In a year in which a nonprofit hospital facility converts to, or
31	otherwise becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise
32	established, in that year only the amount levied by the city or town and/or the amount payable
33	under the stabilization agreement for that year related to the for-profit hospital facility shall not be
34	counted towards determining the maximum tax levy permitted under § 44-5-2.
	LC000763 - Page 256 of 541
1	(c) Cities and towns. Authorization to impose taxes on certain properties of nonprofit
2	entities.
3	(1) Any laws or acts that incorporate, restate or amend the articles of incorporation of
4	nonprofit institutions of higher education or nonprofit hospitals and, which exempt real and
5	personal property from taxation are hereby amended to be consistent with subsections (a) through
6	(d) below as follows:
7	(a) All real and personal property shall be exempt from taxation so far as said property is
8	used exclusively for educational purposes by nonprofit institutions of higher education or hospital
9	purposes by nonprofit hospitals.
10	(b) Where part of a property owned by a nonprofit institution of higher education is used
11	exclusively for educational purposes and part of said property is not used exclusively for
12	educational purposes, then the part of said property used exclusively for educational purposes
13	shall be exempt from taxation, and the personal property located within said property used
14	exclusively for educational purposes shall be exempt from taxation.
15	(c) Where part of a property owned by a nonprofit hospital is used exclusively for
16	hospital purposes and part of said property is not used exclusively for hospital purposes, then the
17	part of said property used exclusively for hospital purposes shall be exempt from taxation, and the
18	personal property located within said property used exclusively for hospital purposes shall be
19	exempt from taxation.
20	(d) Notwithstanding §44-3-3(c)(1)(a), vacant lots, improved or unimproved, shall not be
21	exempt from taxation.
22	(2) In the event that a nonprofit institution of higher education or a nonprofit hospital has
23	made one or more voluntary payments in lieu of taxation during a tax year to a city or town with
24	respect to all or any portion of real or personal property, said payments shall be credited against
25	and shall reduce any taxes owed and due to the city or town for said tax year.
26	(3) Notwithstanding the exemption from taxation pursuant to §44-3-3(c)(1), cities and
27	towns are authorized to waive, or reduce taxes levied against real and personal property owned by
28	nonprofit institutions of higher education or nonprofit hospitals in the event the nonprofit
29	institutions of higher education or nonprofit hospitals agree to make payments in lieu of taxes.
30	(4) Cities and towns may use December 31st of the year prior to the effective date of this
31	section as the date of assessment for any property that first becomes subject to taxation as a result
32	of §44-3-3(c)(1) above.
33	(5) As used in this section, "nonprofit institution of higher education" means any
34	institution engaged primarily in education beyond the high school level, and "nonprofit hospital"
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1	means any nonprofit hospital licensed by the state and which is used for the purpose of general
2	medical, surgical, or psychiatric care and treatment.
3	SECTION 2. Section 44-34-11 of the General Laws in Chapter 44-34 entitled "Excise on
4	Motor Vehicles and Trailers" is hereby amended to read as follows:
5	44-34-11. Rhode Island vehicle value commission.
6	(a) There is hereby authorized, created, and established the "Rhode Island vehicle value
7	commission" whose function it is to establish presumptive values of vehicles and trailers subject
8	to the excise tax.
9	(b) The commission shall consist of the following seven (7) members as follows:
10	(1) The director of the department of revenue or his/her designee from the department of
11	revenue;
12	(2) Five (5) local tax officials named by the governor, at least one of whom shall be from
13	a city or town under ten thousand (10,000) population and at least one of whom is from a city or
14	town over fifty thousand (50,000) population. In making these appointments, the governor shall
15	give due consideration to the recommendations submitted by the President of the Rhode Island
16	League of Cities and Towns and each appointment shall be subject to the advice and consent of
17	the senate; and
18	(3) One motor vehicle dealer appointed by the governor upon giving due consideration to
19	the recommendation of the director of revenue and subject to the advice and consent of the
20	senate.
21	(4) All members shall serve for a term of three (3) years.
22	(5) Current legislative appointees shall cease to be members of the commission upon the
23	effective date of this act. Non-legislative appointees to the commission may serve out their terms
24	whereupon their successors shall be appointed in accordance with this act. No one shall be
25	eligible for appointment to the commission unless he or she is a resident of this state.
26	(6) Public members of the commission shall be removable by the governor pursuant to §
27	36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to capacity or
28	fitness for the office shall be unlawful.
29	(7) The governor shall appoint a chairperson from the commission's members. The
30	commission shall elect from among its members other officers as it may deem appropriate.
31	(c) The commission shall annually determine the presumptive values of vehicles and
32	trailers subject to the excise tax in the following manner:
33	(1) Not earlier than September 30 and not later than December 31 of each year, the
34	commission shall by rule adopt a methodology for determining the presumptive value of vehicles
	LC000763 - Page 258 of 541
1	and trailers subject to the excise tax that shall give consideration to the following factors:
2	(i) The average retail price of similar vehicles of the same make, model, type, and year of
3	manufacture as reported by motor vehicle dealers or by official used car guides, such as that of
4	the National Automobile Dealers Association for New England. Where regional guides are not
5	available, the commission shall use other publications deemed appropriate; and
6	(ii) Other information concerning the average retail prices for make, model, type, and
7	year of manufacture of motor vehicles as the director and the Rhode Island vehicle value
8	commission may deem appropriate to determine fair values.
9	(iii) Notwithstanding the foregoing, the presumptive value of vehicles and trailers subject
10	to the excise tax shall not exceed the following percentage of clean retail value for those vehicles
11	reported by the National Automobile Dealers Association Official Used Car Guide New England
12	Edition:
13	FISCAL YEAR PERCENTAGE
14	2018 95%
15	2019 90%
16	2020 85% 87.5%
17	2021 80% 84%
18	2022 75% 79%
19	2023 70% 67.5%
20	In the event that no such clean retail value is reported, the presumptive value shall not
21	exceed the above percentages of the following:
22	(A) Manufacturer's suggested retail price (MSRP) for new model year vehicles as
23	reported by the National Automobile Dealers Association Guides; or
24	(B) Average retail value for those vehicles reported by the National Automobile Dealers
25	Association Official Used Car Guide National Edition and
26	Motorcycle/Snowmobile/ATV/Personal Watercraft Appraisal Guide; or
27	(C) Used retail value for those vehicles reported in the National Association of
28	Automobile Dealers Recreational Vehicle Appraisal Guide; or
29	(D) Low value for those vehicles reported in the National Automobile Dealers
30	Association Classic, Collectible, Exotic and Muscle Car Appraisal Guide & Directory.
31	(2) On or before February 1 of each year, it shall adopt a list of values for vehicles and
32	trailers of the same make, model, type, and year of manufacture as of the preceding December 31
33	in accordance with the methodology adopted between September 30 and December 31; the list
34	shall be subject to a public hearing at least five (5) business days prior to the date of its adoption.
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1	(3) Nothing in this section shall be deemed to require the commission to determine the
2	presumptive value of vehicles and trailers that are unique, to which special equipment has been
3	added or to which special modifications have been made, or for which adequate information is
4	not available from the sources referenced in subdivision (1) of this subsection; provided, that the
5	commission may consider those factors in its lists or regulations.
6	(4) The commission shall annually provide the list of presumptive values of vehicles and
7	trailers to each tax assessor on or before February 15 of each year.
8	(d) The commission shall adopt rules governing its organization and the conduct of its
9	business; prior to the adoption of the rules, the chair shall have the power to call meetings, and a
10	simple majority of the members of the commission, as provided for in subsection (b) of this
11	section, is necessary for a quorum, which quorum by majority vote shall have the power to
12	conduct business in the name of the commission. The commission may adopt rules and elect from
13	among its members such other officers as it deems necessary.
14	(e) The commission shall have the power to contract for professional services that it
15	deems necessary for the development of the methodology for determining presumptive values; for
16	calculating presumptive values according to the methodology; and for preparing the list of
17	presumptive values in a form and format that is generally usable by cities and towns in their
18	preparation of tax bills. The commission shall also have the power to incur reasonable expenses
19	in the conduct of its business as required by this chapter and to authorize payments for the
20	expenses.
21	(f) Commission members shall receive no compensation for the performance of their
22	duties but may be reimbursed for their reasonable expenses incurred in carrying out such duties.
23	(g) The commission shall respond to petitions of appeal by local boards of review in
24	accordance with the provisions of § 44-34-9.
25	(h) The commission shall establish, by rule, procedures for adopting an annual budget
26	and for administering its finances. After July 1, 1986, one-half (1/2) of the cost of the
27	commission's operations shall be borne by the state and one-half (1/2) shall be borne by cities and
28	towns within the state, with the city and town share distributed among cities and towns on a per
29	capita basis.
30	(i) Within ninety (90) days after the end of each fiscal year, the commission shall approve
31	and submit an annual report to the governor, the speaker of the house of representatives, the
32	president of the senate, and the secretary of state of its activities during that fiscal year. The report
33	shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if
34	requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies
	LC000763 - Page 260 of 541
1	conducted, policies and plans developed, approved, or modified, and programs administered or
2	initiated; a consolidated financial statement of all funds received and expended including the
3	source of the funds, a listing of any staff supported by these funds, and a summary of any clerical,
4	administrative or technical support received; a summary of performance during the previous
5	fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings,
6	complaints, suspensions, or other legal matters related to the authority of the commission; a
7	summary of any training courses held pursuant to this subsection, a briefing on anticipated
8	activities in the upcoming fiscal year; and findings and recommendations for improvements. The
9	report shall be posted electronically on the general assembly and the secretary of state's websites
10	as prescribed in § 42-20-8.2. The director of the department of revenue shall be responsible for
11	the enforcement of this provision.
12	SECTION 3. Section 44-34.1-1 of the General Laws in Chapter 44-34.1 entitled "Motor
13	Vehicle and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read as follows:
14	44-34.1-1. Excise tax phase-out.
15	(a)(1) Notwithstanding the provisions of chapter 34 of this title or any other provisions to
16	the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 may be phased out.
17	The phase-out shall apply to all motor vehicles and trailers, including leased vehicles.
18	(2) Lessors of vehicles that pay excise taxes directly to municipalities shall provide
19	lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes
20	payable throughout the term of the lease. In the event the actual excise tax is less than the
21	estimated excise tax, the lessor shall annually rebate to the lessee the difference between the
22	actual excise tax and the estimated excise tax.
23	(b) Pursuant to the provisions of this section, all motor vehicles shall be assessed a value
24	by the vehicle value commission. That value shall be assessed according to the provisions of §
25	44-34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section;
26	provided, however, that the maximum taxable value percentage applicable to model year values
27	as of December 31, 1997, shall continue to be applicable in future year valuations aged by one
28	year in each succeeding year.
29	(c)(1) The motor vehicle excise tax phase-out shall commence with the excise tax bills
30	mailed to taxpayers for the fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be
31	subject to annual review and appropriation by the general assembly. The tax assessors of the
32	various cities and towns and fire districts shall reduce the average retail value of each vehicle
33	assessed by using the prorated exemptions from the following table:
34	Local Fiscal Year Exempt from value Local Exemption State fiscal year Reimbursement
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1	fiscal year 1999 0 $1,500
2	fiscal year 2000 $1,500 $2,500
3	fiscal year 2001 $2,500 $3,500
4	fiscal year 2002 $3,500 $4,500
5	fiscal years 2003, 2004 and 2005 $4,500 $4,500
6	for fiscal year 2006 and $5,000 $5,000
7	for fiscal year 2007 $6,000 $6,000
8	for fiscal years 2008, 2009 and 2010 the exemption and the state fiscal year
9	reimbursement shall be increased, at a minimum, to the maximum amount to the nearest two
10	hundred and fifty dollar ($250) increment within the allocation of one and twenty-two hundredths
11	percent (l.22%) of net terminal income derived from video lottery games pursuant to the
12	provisions of § 42-61-15, and in no event shall the exemption in any fiscal year be less than the
13	prior fiscal year.
14	(i) For fiscal year 2011 through fiscal year 2017, the exemption shall be five hundred
15	dollars ($500). Cities and towns may provide an additional exemption; provided, however, any
16	such additional exemption shall not be subject to reimbursement.
17	(ii) For fiscal year 2018, cities, towns, and fire districts shall provide an exemption equal
18	to the greater of one thousand dollars ($1,000) or the exemption in effect in fiscal year 2017.
19	(iii) For fiscal year 2019, cities, towns, and fire districts shall provide an exemption equal
20	to the greater of two thousand dollars ($2,000) or the exemption in effect in fiscal year 2017.
21	(iv) For fiscal year 2020, cities, towns, and fire districts shall provide an exemption equal
22	to the greater of three thousand dollars ($3,000) two thousand eight hundred dollars ($2,800) (or
23	the exemption in effect in fiscal year 2017.
24	(v) For fiscal year 2021, cities, towns, and fire districts shall provide an exemption equal
25	to the greater of four thousand dollars ($4,000) three thousand eight hundred dollars ($3,800) or
26	the exemption in effect in fiscal year 2017.
27	(vi) For fiscal year 2022, cities, towns, and fire districts shall provide an exemption equal
28	to the greater of five thousand dollars ($5,000) four thousand eight hundred dollars ($4,800) or
29	the exemption in effect in fiscal year 2017.
30	(vii) For fiscal year 2023, cities, towns, and fire districts shall provide an exemption
31	equal to the greater of six thousand dollars ($6,000) or the exemption in effect in fiscal year 2017.
32	(viii) For fiscal year 2024 and thereafter, no tax shall be levied.
33	(2) The excise tax phase-out shall provide levels of assessed value reductions until the tax
34	is eliminated or reduced as provided in this chapter.
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1	(3) Current exemptions shall remain in effect as provided in this chapter.
2	(4) The excise tax rates and ratios of assessment shall be maintained at a level identical to
3	the level in effect for fiscal year 1998 for each city, town, and fire district; provided, in the town
4	of Johnston, the excise tax rate and ratios of assessment shall be maintained at a level identical to
5	the level in effect for fiscal year 1999 levels and the levy of a city, town, or fire district shall be
6	limited to the lesser of the maximum taxable value or net assessed value for purposes of
7	collecting the tax in any given year. Provided, however, for fiscal year 2011 through fiscal year
8	2017, the rates and ratios of assessment may be less than but not more than the rates described in
9	this subsection (4).
10	(5) For fiscal year 2018 and thereafter, the excise tax rate applied by a city, town, or fire
11	district, shall not exceed the rate in effect in fiscal year 2017 and shall not exceed the rate set
12	forth below:
13	Fiscal Year Tax Rate (Per $1,000 of Value)
14	2018 $60.00
15	2019 $50.00
16	2020 $35.00 $40.00
17	2021 $35.00
18	2022 $30.00
19	2023 $20.00 $25.00
20	(6) In no event shall a taxpayer be billed more than the prior year for a vehicle owned up
21	to the same number of days unless an increased bill is the result of no longer being eligible for a
22	local tax exemption.
23	(d) Definitions.
24	(1) "Maximum taxable value" means the value of vehicles as prescribed by § 44-34-11
25	reduced by the percentage of assessed value applicable to model year values as determined by the
26	Rhode Island vehicle value commission as of December 31, 1997, for the vehicles valued by the
27	commission as of December 31, 1997. For all vehicle value types not valued by the Rhode Island
28	vehicle value commission as of December 31, 1997, the maximum taxable value shall be the
29	latest value determined by a local assessor from an appropriate pricing guide, multiplied by the
30	ratio of assessment used by that city, town, or fire district for a particular model year as of
31	December 31, 1997. The maximum taxable value shall be determined in such a manner as to
32	incorporate the application of the percentage corresponding with the appropriate fiscal year as
33	specified in § 44-34-11(c)(1)(iii).
34	(2) "Net assessed value" means the motor vehicle values as determined in accordance
	LC000763 - Page 263 of 541
1	with § 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state
2	of Rhode Island exemption value as provided for in subsection (c)(1) of this section.
3	(e) If any provision of this chapter shall be held invalid by any court of competent
4	jurisdiction, the remainder of this chapter and the applications of the provisions hereof shall not
5	be effected thereby.
6	SECTION 4. This article shall take effect upon passage.
7	ARTICLE 10
8	RELATING TO UNIVERSAL PREKINDERGARTEN
9	SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled "The
10	Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
11	16-7.2-6. Categorical programs, state funded expenses.
12	In addition to the foundation education aid provided pursuant to § 16-7.2-3, the
13	permanent foundation education-aid program shall provide direct state funding for:
14	(a) Excess costs associated with special education students. Excess costs are defined
15	when an individual special education student's cost shall be deemed to be "extraordinary".
16	Extraordinary costs are those educational costs that exceed the state-approved threshold based on
17	an amount above five times the core foundation amount (total of core-instruction amount plus
18	student success amount). The department of elementary and secondary education shall prorate the
19	funds available for distribution among those eligible school districts if the total approved costs for
20	which school districts are seeking reimbursement exceed the amount of funding appropriated in
21	any fiscal year; and the department of elementary and secondary education shall also collect data
22	on those educational costs that exceed the state-approved threshold based on an amount above
23	two (2), three (3), and four (4) times the core-foundation amount;
24	(b) Career and technical education costs to help meet initial investment requirements
25	needed to transform existing, or create new, comprehensive, career and technical education
26	programs and career pathways in critical and emerging industries and to help offset the higher-
27	than-average costs associated with facilities, equipment maintenance and repair, and supplies
28	necessary for maintaining the quality of highly specialized programs that are a priority for the
29	state. The department shall develop criteria for the purpose of allocating any and all career and
30	technical education funds as may be determined by the general assembly on an annual basis. The
31	department of elementary and secondary education shall prorate the funds available for
32	distribution among those eligible school districts if the total approved costs for which school
33	districts are seeking reimbursement exceed the amount of funding available in any fiscal year;
34	(c) Programs to increase access to voluntary, free, high-quality pre-kindergarten
	LC000763 - Page 264 of 541
1	programs. The department shall recommend criteria for the purpose of allocating any and all early
2	childhood program funds as may be determined by the general assembly consistent with chapter
3	16-87;
4	(d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure
5	that appropriate funding is available to support their students. Additional support for Central Falls
6	is needed due to concerns regarding the city's capacity to meet the local share of education costs.
7	This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs
8	outside the permanent foundation education-aid formula, including, but not limited to,
9	transportation, facility maintenance, and retiree health benefits shall be shared between the state
10	and the city of Central Falls. The fund shall be annually reviewed to determine the amount of the
11	state and city appropriation. The state's share of this fund may be supported through a reallocation
12	of current state appropriations to the Central Falls school district. At the end of the transition
13	period defined in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24.
14	Additional support for the Davies and the Met Center is needed due to the costs associated with
15	running a stand-alone high school offering both academic and career and technical coursework.
16	The department shall recommend criteria for the purpose of allocating any and all stabilization
17	funds as may be determined by the general assembly;
18	(e) Excess costs associated with transporting students to out-of-district non-public
19	schools. This fund will provide state funding for the costs associated with transporting students to
20	out-of-district non-public schools, pursuant to chapter 21.1 of this title. The state will assume the
21	costs of non-public out-of-district transportation for those districts participating in the statewide
22	system. The department of elementary and secondary education shall prorate the funds available
23	for distribution among those eligible school districts if the total approved costs for which school
24	districts are seeking reimbursement exceed the amount of funding available in any fiscal year;
25	(f) Excess costs associated with transporting students within regional school districts.
26	This fund will provide direct state funding for the excess costs associated with transporting
27	students within regional school districts, established pursuant to chapter 3 of this title. This fund
28	requires that the state and regional school district share equally the student transportation costs
29	net any federal sources of revenue for these expenditures. The department of elementary and
30	secondary education shall prorate the funds available for distribution among those eligible school
31	districts if the total approved costs for which school districts are seeking reimbursement exceed
32	the amount of funding available in any fiscal year;
33	(g) Public school districts that are regionalized shall be eligible for a regionalization
34	bonus as set forth below:
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1	(1) As used herein, the term "regionalized" shall be deemed to refer to a regional school
2	district established under the provisions of chapter 3 of this title, including the Chariho Regional
3	School district;
4	(2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus
5	shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the
6	regionalization bonus shall commence in the first fiscal year following the establishment of a
7	regionalized school district as set forth in chapter 3 of this title, including the Chariho Regional
8	School District;
9	(3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the
10	state's share of the foundation education aid for the regionalized district as calculated pursuant to
11	§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;
12	(4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the
13	state's share of the foundation education aid for the regionalized district as calculated pursuant to
14	§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;
15	(5) The regionalization bonus shall cease in the third fiscal year;
16	(6) The regionalization bonus for the Chariho regional school district shall be applied to
17	the state share of the permanent foundation education aid for the member towns; and
18	(7) The department of elementary and secondary education shall prorate the funds
19	available for distribution among those eligible regionalized school districts if the total, approved
20	costs for which regionalized school districts are seeking a regionalization bonus exceed the
21	amount of funding appropriated in any fiscal year;
22	(h) Additional state support for English learners (EL). The amount to support EL students
23	shall be determined by multiplying an EL factor of ten percent (10%) by the core-instruction per-
24	pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of additional state support to
25	EL students identified using widely adopted, independent standards and assessments identified by
26	the commissioner. All categorical funds distributed pursuant to this subsection must be used to
27	provide high-quality, research-based services to EL students and managed in accordance with
28	requirements set forth by the commissioner of elementary and secondary education. The
29	department of elementary and secondary education shall collect performance reports from
30	districts and approve the use of funds prior to expenditure. The department of elementary and
31	secondary education shall ensure the funds are aligned to activities that are innovative and
32	expansive and not utilized for activities the district is currently funding. The department of
33	elementary and secondary education shall prorate the funds available for distribution among
34	eligible recipients if the total calculated costs exceed the amount of funding available in any fiscal
	LC000763 - Page 266 of 541
1	year;
2	(i) State support for school resource officers. For purposes of this subsection, a school
3	resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority
4	who is deployed by an employing police department or agency in a community-oriented policing
5	assignment to work in collaboration with one or more schools. School resource officers should
6	have completed at least forty (40) hours of specialized training in school policing, administered
7	by an accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3)
8	years, school districts or municipalities that choose to employ school resource officers shall
9	receive direct state support for costs associated with employing such officers at public middle and
10	high schools. Districts or municipalities shall be reimbursed an amount equal to one-half (1/2) of
11	the cost of salaries and benefits for the qualifying positions. Funding will be provided for school
12	resource officer positions established on or after July 1, 2018, provided that:
13	(1) Each school resource officer shall be assigned to one school:
14	(i) Schools with enrollments below one thousand twelve hundred (1,200) students shall
15	require one school resource officer;
16	(ii) Schools with enrollments of one thousand twelve hundred (1,200) or more students
17	shall require two school resource officers;
18	(2) School resource officers hired in excess of the requirement noted above shall not be
19	eligible for reimbursement; and
20	(3) Schools that eliminate existing school resource officer positions and create new
21	positions under this provision shall not be eligible for reimbursement; and
22	(j) Categorical programs defined in (a) through (g) shall be funded pursuant to the
23	transition plan in § 16-7.2-7.
24	SECTION 2. Sections 16-87-2 and 16-87-4 of the General Laws in Chapter 16-87
25	entitled "Rhode Island Prekindergarten Education Act" are hereby amended to read as follows:
26	16-87-2. Findings.
27	(a) The general assembly hereby finds that attending high quality early childhood
28	education programs help children develop important social and cognitive skills and knowledge
29	that prepares children to succeed in school. Research has shown long-lasting benefits for children
30	who participate in very high quality, educationally focused early childhood programs. The
31	benefits to children can also generate substantial government cost savings, including reduced
32	need for special education services, reduced need for cash assistance and other public benefits,
33	and reduced rates of incarceration.
34	(b) The general assembly finds that there are substantial numbers of children in Rhode
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1	Island entering kindergarten who are not adequately prepared to succeed in school. Early school
2	failure may ultimately contribute to such children dropping out of school at an early age, failing
3	to achieve their full potential, becoming dependent upon public assistance, or becoming involved
4	in criminal activities.
5	(c) Furthermore, the general assembly finds that there is an existing infrastructure of early
6	childhood programs in Rhode Island serving preschool age children in full-day and half-day
7	programs that is supported through state and federal investments in child care, Head Start and
8	special education. It is the goal of the general assembly to support a system of publicly-funded,
9	high quality prekindergarten education programs that are operated through a diverse delivery
10	network, including child care, Head Start and public school districts.
11	(d) By enacting this law, the general assembly acknowledges the need to adequately
12	prepare all children to succeed in school by providing access to publicly-funded high quality
13	prekindergarten education programs.
14	(e) Since 2008, Rhode Island’s state prekindergarten program has expanded to offer more
15	than one thousand high-quality prekindergarten seats to four-year-olds across eleven
16	communities. Rhode Island’s mixed delivery prekindergarten model has been nationally
17	recognized as one of the highest quality state prekindergarten programs in the United States.
18	16-87-4. Early childhood workforce development.
19	The Rhode Island department of elementary and secondary education and the department
20	of human services shall work with other state departments and private philanthropy to establish a
21	statewide, comprehensive, research-based early childhood workforce development scholarship
22	program to expand the numbers of early childhood educators who have an associate's or
23	bachelor's degree in early childhood education and who work with children from birth to age five
24	(5).
25	SECTION 3. Chapter 16-87 of the General Laws entitled "Rhode Island Prekindergarten
26	Education Act" is hereby amended by adding thereto the following section:
27	16-87-6. High Quality, Universal Prekindergarten.
28	(a) The general assembly acknowledges the need to adequately prepare all children to
29	succeed in school by providing access to publicly funded, high quality prekindergarten education
30	programs for all four-year-olds.
31	(b) Access to Rhode Island’s mixed delivery system of high-quality prekindergarten
32	classrooms in child care centers, public school districts, and Head Start centers shall be expanded
33	across all communities in Rhode Island.
34	(c) Expansion shall continue until every family who wants a high quality, prekindergarten
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1	seat for their four-year-old has one. Universal access will be considered achieved when seventy
2	percent of four-year-olds are enrolled in high-quality prekindergarten programs.
3	16-87-7. Prekindergarten Facilities.
4	The Rhode Island department of elementary and secondary education and the department
5	of human services shall work with other state departments and private philanthropy to research
6	and establish programs to improve, expand, and renovate facilities to ensure providers meet
7	licensing and facilities standards to expand access to high-quality prekindergarten learning
8	environments.
9	16-87-8. High quality elements.
10	(a) To expand access to high-quality prekindergarten education programs, it is essential
11	to invest in expanding high-quality early learning in order to meaningfully increase children’s
12	school readiness.
13	(b) The Rhode Island department of elementary and secondary education is hereby
14	authorized to promulgate and adopt regulations for the implementation of high quality, universal
15	prekindergarten. The following quality standards shall be established in regulation by the Rhode
16	Island department of elementary and secondary education:
17	(i) Teacher education and certification;
18	(ii) Class size and staff ratios;
19	(iii) Learning time;
20	(iv) Learning standards;
21	(v) Curriculum;
22	(vi) Support for students with special needs;
23	(vii) Support for dual English language learners;
24	(viii) Professional development;
25	(ix) Child assessments; and
26	(x) Observations to improve practice
27	16-87-9. Successful transitions.
28	(a) Successful coordination between Rhode Island’s high-quality prekindergarten and
29	kindergarten programs is essential for setting a solid foundation for all students. In order to have a
30	seamless pathway from prekindergarten to third grade, standards, curriculum, instruction and
31	assessments shall be aligned.
32	(b) Effective transition programs and practices to help students and families move
33	successfully from one setting to another shall be established.
34	(c) All Local Education Agencies (LEAs) in Rhode Island shall develop a transition plan
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1	to kindergartens for all incoming students and families. These plans must contain two parts --
2	student and family transition strategies, and program-level transition planning strategies:
3	(1) For student and family transition the following strategies shall be considered:
4	(i) Student visits to their future kindergarten classroom;
5	(ii) Kindergarten teacher visits to the prekindergarten classrooms;
6	(iii) Workshops for families of incoming kindergarten children; and
7	(iiv) Kindergarten orientation sessions the summer before school starts.
8	(2) For program-level transition planning the following strategies shall be considered;
9	(i) Creation of transition teams and liaisons between prekindergarten programs and
10	district schools;
11	(ii) Joint professional development and data sharing for prekindergarten to third grade
12	teachers; and
13	(iii) Teacher-to-teacher conferences.
14	16-87-10. Early childhood education governance and data system.
15	(a) The Rhode Island department of elementary and secondary education and the
16	department of human services shall work with other state departments that comprise the
17	Children’s Cabinet including, but not limited to, Rhode Island’s department of health, department
18	of children, youth and families, and the executive office of health and human services to facilitate
19	the coordination of federal, state, and local policies concerning early learning and care, as well as
20	seeking, applying for and encouraging the use of any federal funds for early learning and care.
21	These departments shall work together to identify ways to streamline decision-making, eliminate
22	inefficiencies, and ensure that all state systems are coordinated and aligned to the same goals.
23	(b) In order to support a successful early learning system, including the expansion of
24	high-quality prekindergarten programs, the Early Childhood and Education Data System
25	(ECEDS) shall receive continued investment, development and support. ECEDS is an integrated
26	data system to facilitate the sharing of information and data-driven decision-making. ECEDS has
27	become the centralized source for much our early learning data across multiple state agencies. It
28	also has the capability to share essential child level data with state agencies and early childhood
29	programs and key information about early learning providers and programs with families.
30	SECTION 4. Sections 16-87-3 and 16-87-5 of the General Laws in Chapter 16-87
31	entitled "Rhode Island Prekindergarten Education Act" are hereby repealed.
32	16-87-3. Planning phase for a prekindergarten program.
33	(a) The Rhode Island department of elementary and secondary education shall begin
34	planning an initial, pilot prekindergarten program that meets high quality standards, builds on the
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1	existing early childhood education infrastructure in the state (including child care, Head Start and
2	public schools) and serves children ages three (3) and four (4) who reside in communities with
3	concentrations of low performing schools. This planning phase will develop specific goals to
4	expand the pilot prekindergarten program over time and will also identify opportunities to
5	strengthen care and learning programs for infants and toddlers.
6	(b) During this planning phase, the Rhode Island department of elementary and
7	secondary education will quantify the resources needed to achieve and maintain high quality
8	standards in prekindergarten programs and identify incentives and supports to develop a qualified
9	early education workforce, including opportunities for experienced early childhood educators and
10	paraprofessionals to acquire college degrees and earn early childhood teacher certification.
11	(c) The Rhode Island department of elementary and secondary education will begin to
12	develop plans to collect and analyze data regarding the impact of the pilot prekindergarten
13	program on participating children's school readiness and school achievement.
14	16-87-5. Reporting.
15	The Rhode Island department of elementary and secondary education shall report back to
16	the general assembly and the governor on the progress of the pilot planning phase no later than
17	October 31, 2008.
18	SECTION 5. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child
19	Care - State Subsidies" is hereby amended to read as follows:
20	40-6.2-1.1. Rates established.
21	(a) Through June 30, 2015, subject to the payment limitations in subsection (c), the
22	maximum reimbursement rates to be paid by the departments of human services and children,
23	youth and families for licensed childcare centers and licensed family-childcare providers shall be
24	based on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted
25	for the average of the 75th percentile of the 2002 and the 2004 weekly market rates:
26	LICENSED CHILDCARE CENTERS 75th PERCENTILE OF WEEKLY
27	MARKET RATE
28	INFANT $182.00
29	PRESCHOOL $150.00
30	SCHOOL-AGE $135.00
31	LICENSED FAMILY CHILDCARE 75th PERCENTILE OF WEEKLY
32	PROVIDERS MARKET RATE
33	INFANT $150.00
34	PRESCHOOL $150.00
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1	SCHOOL-AGE $135.00
2	Effective July 1, 2015, subject to the payment limitations in subsection (c), the maximum
3	reimbursement rates to be paid by the departments of human services and children, youth and
4	families for licensed childcare centers and licensed family-childcare providers shall be based on
5	the above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the
6	average of the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be
7	increased by ten dollars ($10.00) per week for infant/toddler care provided by licensed family-
8	childcare providers and license-exempt providers and then the rates for all providers for all age
9	groups shall be increased by three percent (3%). For the fiscal year ending June 30, 2018,
10	licensed childcare centers shall be reimbursed a maximum weekly rate of one hundred ninety-
11	three dollars and sixty-four cents ($193.64) for infant/toddler care and one hundred sixty-one
12	dollars and seventy-one cents ($161.71) for preschool-age children.
13	(b) Effective July l, 2018, subject to the payment limitations in subsection (c), the
14	maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of
15	human services and children, youth and families for licensed childcare centers shall be
16	implemented in a tiered manner, reflective of the quality rating the provider has achieved within
17	the state's quality rating system outlined in § 42-12-23.1.
18	(1) For infant/toddler childcare, tier one shall be reimbursed two and one-half percent
19	(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above
20	the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY
21	2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018
22	weekly amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018
23	weekly amount.
24	(2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half
25	(2.5%) three and two-tenths percent (3.2%) above the FY 2018 weekly amount, tier two shall be
26	reimbursed five percent (5%) and eight-tenths percent (5.8%) above the FY 2018 weekly amount,
27	tier three shall be reimbursed ten percent (10%) thirteen percent (13%) above the FY 2018
28	weekly amount, tier four shall be reimbursed thirteen percent (13%) fifteen percent (15%) above
29	the FY 2018 weekly amount, and tier five shall be reimbursed twenty-one percent (21%) thirty-
30	three percent (33%) above the FY 2018 weekly amount.
31	(c) The departments shall pay childcare providers based on the lesser of the applicable
32	rate specified in subsection (a), or the lowest rate actually charged by the provider to any of its
33	public or private childcare customers with respect to each of the rate categories, infant, preschool
34	and school-age.
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1	(d) (c) By June 30, 2004, and biennially through June 30, 2014, the department of labor
2	and training shall conduct an independent survey or certify an independent survey of the then
3	current weekly market rates for childcare in Rhode Island and shall forward such weekly market
4	rate survey to the department of human services. The next survey shall be conducted by June 30,
5	2016, and triennially thereafter. The departments of human services and labor and training will
6	jointly determine the survey criteria including, but not limited to, rate categories and sub-
7	categories.
8	(e) (d) In order to expand the accessibility and availability of quality childcare, the
9	department of human services is authorized to establish by regulation alternative or incentive
10	rates of reimbursement for quality enhancements, innovative or specialized childcare and
11	alternative methodologies of childcare delivery, including non-traditional delivery systems and
12	collaborations.
13	(f) Effective January 1, 2007, all childcare providers have the option to be paid every two
14	(2) weeks and have the option of automatic direct deposit and/or electronic funds transfer of
15	reimbursement payments.
16	SECTION 6. This article shall take effect upon passage.
17	ARTICLE 11
18	RELATING TO RHODE ISLAND PROMISE
19	SECTION 1. The title of Chapter 16-107 of the General Laws entitled "Rhode Island
20	Promise Scholarship" is hereby amended to read as follows:
21	CHAPTER 16-107
22	RHODE ISLAND PROMISE SCHOLARSHIP
23	CHAPTER 16-107
24	RHODE ISLAND PROMISE
25	SECTION 2. Sections 16-107-1, 16-107-2, 16-107-3, 16-107-4, 16-107-5, 16-107-6, 16-
26	107-7 and 16-107-8 of the General Laws in Chapter 16-107 entitled "Rhode Island Promise
27	Scholarship" are hereby amended to read as follows:
28	16-107-1. Short title.
29	This chapter shall be known and may be cited as the "Rhode Island Promise" Scholarship
30	Act."
31	16-107-2. Legislative findings and purpose.
32	(a) The general assembly finds and declares that:
33	(1) Education is critical for the state's young people to achieve their dreams and develop
34	their talents;
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1	(2) The state's economic success depends on a highly educated and skilled workforce,
2	which is made all the more urgent by the impending need for the state to increase its state
3	postsecondary attainment rate to at least seventy percent (70%) by 2025 to keep pace with
4	projections of the percentage of state jobs that will require a postsecondary degree or certificate;
5	and
6	(3) The state's future prosperity depends upon its ability to make educational
7	opportunities beyond high school available for all students, including adults, as part of a free
8	public education.
9	(b) In order to address the findings set forth in subsection (a), the purpose of this chapter
10	is to Rhode Island Promise is a promise and commitment on behalf of:
11	(1) The state to promise to support its students’ higher education ambitions by making a
12	higher education affordable and part of a free public education for all students;
13	(2) The students to promise to complete a degree in a timely manner and to give back to
14	Rhode Island after graduation; and
15	(3) the state’s public postsecondary institutions to promise to accomplish the following:
16	(i) increase Increase the number of students enrolling in and completing degrees and
17	certificates on time from eligible postsecondary institutions; from the community college of
18	Rhode Island.
19	(ii) Align their postsecondary degrees and certificates with emerging workforce demands;
20	(iii) Adopt policies and practices that support positive outcomes for all student learners;
21	(iv) Reduce and eliminate achievement gaps for students from groups that are
22	underrepresented at the state’s public postsecondary institutions, including, but not limited to,
23	students from low-income families; students of underrepresented races and ethnicities; and
24	students who are adults, current or former foster youths, with disabilities, formerly incarcerated,
25	undocumented immigrants, and veterans; and
26	(v) Increase the number of graduates who live, work, or continue their education in
27	Rhode Island after graduation.
28	16-107-3. Establishment of scholarship program.
29	Beginning with the high school graduating class of 2017, it is hereby established the
30	Rhode Island promise scholarship program that will end with the high school graduating class of
31	2020. The general assembly shall annually appropriate the funds necessary to implement the
32	purposes of this chapter. Additional funds beyond the scholarships may be appropriated to
33	support and advance the Rhode Island promise scholarship program. In addition to appropriation
34	by the general assembly, charitable donations may be accepted into the scholarship program.
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1	16-107-4. Definitions.
2	When used in this chapter, the following terms shall have the following meanings:
3	(1) “Adult Student” means any student who is twenty-five (25) years of age or older by
4	the start of the semester in which he or she is seeking to enroll.
5	(2) “Certificate” means any certificate program with labor market value as defined by the
6	Postsecondary Commissioner.
7	(3) “College-level credit” means credit awarded by a college or university for
8	completion of its own courses or other academic work.
9	(4) “Eligible postsecondary institution” means Rhode Island College or the Community
10	College of Rhode Island;
11	(1) (5) "FAFSA" means the Free Application for Federal Student Aid form;
12	(6) “General Education Coursework” means the educational foundation of knowledge,
13	skills, and attitudes that prepare students for success in their majors and their personal and
14	professional lives after graduation. It includes but is not limited to the required coursework of all
15	degrees developed by each eligible postsecondary institution that is approved by the council on
16	postsecondary education that is intended to ensure that all graduates of a state institution have a
17	balanced core of competencies and knowledge. This does not necessarily include coursework
18	specifically required for one’s major.
19	(2) (7) "Mandatory fees and tuition" are the costs that every student is required to pay in
20	order to enroll in classes, and does not include room and board, textbooks, program fees that may
21	exist in some majors, course fees that may exist for some specific courses, meal plans, or travel;
22	(3) (8) "On track to graduate on time" means the standards determined by the community
23	college of Rhode Island eligible postsecondary institutions in establishing the expectation of a
24	student to graduate with (i) an associate's degree within two (2) years of enrollment in case of a
25	student attending the Community College of Rhode Island full-time or within four (4) years in the
26	case of adult students attending part-time; or (ii) a bachelor’s degree within four (4) years of
27	enrollment in the case of a student attending Rhode Island College, or the prescribed completion
28	time for a student completing a certificate at the eligible postsecondary institution (recognizing
29	that some students, including students who require developmental education, are double majors,
30	or are enrolled in certain professional programs may require an extended time period for degree
31	completion);
32	(9) “Receiving Institution” means the eligible postsecondary institution attended by a
33	transfer student after transfer;
34	(4) (10) " Recipient student" means a student attending the community college of Rhode
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1	Island who qualifies to receive the Rhode Island promise scholarship pursuant to § 16-107-6 or §
2	16-107-9;
3	(5) (11) "Scholarship program" means the Rhode Island promise scholarship program
4	that is established pursuant to § 16-107-3; and
5	(12) “Sending Institution” means the eligible postsecondary institution attended by a
6	transfer student before transfer;
7	(6) (13) "State" means the State of Rhode Island and Providence Plantations.
8	(14) “Transfer student” means any student who attends an eligible postsecondary
9	institution and holds any college-level credit hours for courses or other academic work at a
10	previously attended eligible postsecondary institution.
11	16-107-5. Administration of scholarship program.
12	(a) The financial aid office, in conjunction with the office of enrollment management or
13	their respective equivalent offices, at an eligible postsecondary institution the community college
14	of Rhode Island, shall administer the scholarship program for state residents seeking associate
15	degrees, bachelor’s degrees, or certificates who meet the eligibility requirements in this chapter.
16	(b) An award of the scholarship program shall cover up to the cost of two (2) years of
17	tuition and mandatory fees, or in the case of an adult student sixty (60) credit hours of tuition and
18	mandatory fees over a duration of no more than four (4) years, less federal and all other financial
19	aid monies available to the recipient student. None of any grants received by students from the
20	Department of Children, Youth and Families’ Higher Education Opportunity Incentive Grant as
21	established by § 42-72.8 or the College Crusade Scholarship Act as established in § 16-70 shall
22	be considered federal or financial aid for the purposes of this Chapter.
23	(c) The scholarship program is limited to one award per student as required by § 16-107-
24	6(a)(7).
25	A student may continue to receive an award towards a degree following completion of a
26	certificate program, provided that the student remains on track to graduate on time.
27	(d) If a recipient student is eligible to receive employer-sponsored tuition assistance, the
28	eligible postsecondary institution shall enter into an agreement with the recipient student and/or
29	the student’s employer stipulating that student’s home institution would provide an upfront
30	scholarship award and the student’s employer would submit corresponding tuition assistance
31	reimbursements to the student’s home institution upon the student’s completion of applicable
32	courses, consistent with the agreement and any applicable policy of the student’s employer.
33	16-107-6. Eligibility for scholarship at the Community College of Rhode Island.
34	(a) Beginning with the students who enroll at the community college of Rhode Island
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1	directly after high school in fall of 2017 and adult students who enroll at the community college
2	of Rhode Island in fall of 2019 ending with students who enroll at the community college of
3	Rhode Island in the fall of 2020, to be considered for the scholarship, a student:
4	(1) Must qualify for in-state tuition and fees pursuant to the residency policy adopted by
5	the council on postsecondary education, as amended, supplemented, restated, or otherwise
6	modified from time to time ("residency policy"); provided, that, the student must have either:
7	(i) have satisfied the high school graduation/equivalency diploma condition prior to
8	reaching nineteen (19) years of age; provided, further, that in addition to the option of meeting the
9	requirement by receiving a high school equivalency diploma as described in the residency policy,
10	the student can satisfy the condition by receiving other certificates or documents of equivalent
11	nature from the state or its municipalities as recognized by applicable regulations promulgated by
12	the council on elementary and secondary education; or
13	(ii) be qualified as an adult student;
14	(2) Must Other than an adult student, must be admitted to, and must enroll and attend the
15	community college of Rhode Island on a full-time basis by the semester immediately following
16	high school graduation or the semester immediately following receipt of a high school
17	equivalency diploma;
18	(3) Must complete the FAFSA and any required FAFSA verification by the deadline
19	prescribed by the community college of Rhode Island for each year in which the student seeks to
20	receive funding under the scholarship program;
21	(4) Must either:
22	(i) continue to be enrolled on a full-time basis; or
23	(ii) if qualified as an adult student, continue to be enrolled in courses corresponding to at
24	least eighteen (18) credit hours or more on an annual basis.
25	(5) Must maintain an average annual cumulative grade point average (GPA) of 2.5 or
26	greater, as determined by the community college of Rhode Island;
27	(6) Must remain on track to graduate on time as determined by the community college of
28	Rhode Island;
29	(7) Must not have already received an award under this scholarship program; and
30	(8) Must commit to live, work, or continue their education in Rhode Island after
31	graduation.
32	The community college of Rhode Island shall develop a policy that will secure this
33	commitment from recipient students.
34	(b) Notwithstanding the eligibility requirements under subsection (a) of this section
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1	("specified conditions"):
2	(i) In the case of a recipient student who has an approved medical or personal leave of
3	absence or is unable to satisfy one or more specified conditions because of the student's medical
4	or personal circumstances, the student may continue to receive an award under the scholarship
5	program upon resuming the student's education so long as the student continues to meet all other
6	applicable eligibility requirements; and
7	(ii) In the case of a recipient student who is a member of the national guard or a member
8	of a reserve unit of a branch of the United States military and is unable to satisfy one or more
9	specified conditions because the student is or will be in basic or special military training, or is or
10	will be participating in a deployment of the student's guard or reserve unit, the student may
11	continue to receive an award under the scholarship program upon completion of the student's
12	basic or special military training or deployment.
13	16-107-7. Reporting and disbursement.
14	(a) On or before November 10 and May 10 of each fiscal year following fiscal year 2017,
15	the community college of Rhode Island eligible postsecondary institutions shall each shall submit
16	a report to the director of the office of management and budget, the state budget officer, the house
17	fiscal advisor, the senate fiscal advisor, the commissioner of postsecondary education, and the
18	chair of the council on postsecondary education detailing the number of students eligible to
19	participate in the scholarship program, the amount of federal and institutional financial aid
20	anticipated to be received by recipient students, the aggregate tuition and mandatory fee costs
21	attributable to recipient students, and the resulting total cost of the scholarship program to the
22	state. The report shall contain such data for both the current fiscal year and the most up-to-date
23	forecast for the following fiscal year. Data reported shall be subdivided by student-year cohort
24	and shall be accompanied by a written explanation detailing the estimating methodology utilized
25	and any impact(s) the forecasted data may present to institutional capacity, operational costs, and
26	the tuition/fee revenue base of the institution.
27	(b) On or before July 1, 2020, and annually thereafter, all eligible postsecondary
28	institutions the community college of Rhode Island and the commissioner of postsecondary
29	education shall submit a report evaluating the program based on the first two cohorts to the
30	governor, speaker of the house, and the president of the senate. This evaluation shall include the
31	following:
32	(1) The number of students who started in each cohort;
33	(2) The number of students in each cohort who have attained a degree or certification in
34	an on-time manner;
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1	(3) The number of students in each cohort who have not attained a degree or certification
2	in an on-time manner and an analysis of why that has happened;
3	(4) The number of students in each cohort who began the program but have been unable
4	to continue or complete the program and an analysis of why that has happened;
5	(5) The costs of the program and the costs of continuing the program;
6	(6) Suggestions for ways to increase the success of the program;
7	(7) Recommendations as to modifying, continuing, expanding, curtailing, or
8	discontinuing the program; and
9	(8) Any such other recommendations or information as the community college of Rhode
10	Island eligible postsecondary institutions and the commissioner of postsecondary education deem
11	appropriate to include in the evaluation; and.
12	(9) An update on the implementation of requirements pursuant to § 16-107-10.
13	(c) The office of management and budget, in consultation with the office of the
14	postsecondary commissioner, shall oversee the apportionment and disbursement of all funds
15	appropriated for the purpose of the scholarship program.
16	16-107-8. Rules and procedures.
17	The council on postsecondary education is hereby authorized to promulgate rules to
18	effectuate the purposes of this chapter and the community college of Rhode Island eligible
19	postsecondary institutions shall each establish appeal procedures for the award, denial, or
20	revocation of funding under the scholarship program. The rules shall be promulgated in
21	accordance with § 16-59-4.
22	SECTION 3. Chapter 16-107 of the General Laws entitled "Rhode Island Promise
23	Scholarship" is hereby amended by adding thereto the following section:
24	16-107-9. Eligibility for scholarship at Rhode Island College.
25	(a) Beginning with the students who enrolled at Rhode Island College in the Fall of 2017
26	a student:
27	(1) Must qualify for in-state tuition and fees pursuant to the residency policy adopted by
28	the council on postsecondary education, as amended, supplemented, restated, or otherwise
29	modified from time to time ("residency policy");
30	(2) Must be a currently enrolled full-time student who has declared a major and earned a
31	minimum of 60 credit hours towards an eligible program of study, as determined by Rhode Island
32	College;
33	(3) Must complete the FAFSA and any required FAFSA verification by the deadline
34	prescribed by Rhode Island College for each year in which the student seeks to receive funding
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1	under the scholarship program;
2	(4) Must enroll full-time as a freshman as a first-time student and continue to be enrolled
3	on a full-time basis;
4	(5) Must maintain an average annual cumulative grade point average (GPA) of 2.5 or
5	greater, as determined by Rhode Island College;
6	(6) Must remain on track to graduate on time as determined by Rhode Island College;
7	(7) Must not have already received an award under this scholarship program; and
8	(8) Must commit to live, work, or continue their education in Rhode Island after
9	graduation.
10	Rhode Island College shall develop a policy that will secure this commitment from
11	recipient students.
12	(b) Notwithstanding the eligibility requirements under subsection (a) of this section
13	("specified conditions"):
14	(i) In the case of a recipient student who has an approved medical or personal leave of
15	absence or is unable to satisfy one or more specified conditions because of the student's medical
16	or personal circumstances, the student may continue to receive an award under the scholarship
17	program upon resuming the student's education so long as the student continues to meet all other
18	applicable eligibility requirements; and
19	(ii) In the case of a recipient student who is a member of the national guard or a member
20	of a reserve unit of a branch of the United States military and is unable to satisfy one or more
21	specified conditions because the student is or will be in basic or special military training, or is or
22	will be participating in a deployment of the student's guard or reserve unit, the student may
23	continue to receive an award under the scholarship program upon completion of the student's
24	basic or special military training or deployment.
25	16-107-10. Requirements of the Eligible Postsecondary Institutions of Higher
26	Education and the Council on Postsecondary Education.
27	The requirements of the eligible postsecondary institutions and council on postsecondary
28	education shall advance the goals outlined in Section § 16-107-2 and shall include all of the
29	following:
30	(a) The council on postsecondary education shall adopt a policy by January 1, 2020 that
31	reduces an eligible postsecondary institution’s performance incentive funding pursuant to § 16-
32	106 for every student who begins their course of study or transfers into an eligible postsecondary
33	institution and who completes more than 135 credit hours to achieve a bachelor’s degree or more
34	than 75 credit hours to complete an associate degree. Exceptions may be made in the policy for
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1	programs that require more than 135 credit hours to achieve a bachelor’s degree or more than 75
2	credit hours to complete an associate degree. The institution’s performance incentive funding
3	must be reduced by an amount determined by the council per credit hour beyond the thresholds
4	established in the immediately preceding sentence on an annual basis based on the immediately
5	prior year’s student data.
6	(b) Each eligible postsecondary institution shall offer credit courses during summer and
7	winter intersessions by January 1, 2020. Summer and winter intersessions shall have the
8	following characteristics:
9	(1) Enrollment shall be open to all current students of the eligible postsecondary
10	institution.
11	(2) Coursework shall be available in at least the most in-demand courses of study so as to
12	allow students to matriculate more easily through their eligible postsecondary institution as
13	determined by the institution.
14	(c) The council on postsecondary education shall revise its Transfer and Articulation
15	policies by July 1, 2021 to include the following requirements:
16	(1) All eligible postsecondary institutions shall accept all college-level credit hours
17	earned with a passing grade taken at any eligible postsecondary institution by any student to be
18	applied in the same way by each eligible postsecondary institution as they would be if they were
19	taken at that institution. All eligible postsecondary institutions shall uniformly determine which
20	courses are college-level on the basis of whether the courses are not remedial or developmental,
21	whether the courses carry one or more credit hours, and whether the credit hours are eligible to be
22	counted toward graduation at the sending institution. If any non-remedial course is not
23	determined to be college-level, that institution must improve the course to meet the agreed-upon
24	standard and ensure transferability.
25	(2) Transfer students shall not be required to take additional assessments or evaluations if
26	this is not required for home institution students. If assessments or evaluations are required for
27	specific programs, then they shall be used at every eligible postsecondary institution in applicable
28	courses.
29	(3) The direction of student transfer from any eligible postsecondary institution to another
30	eligible postsecondary institution, from a two-year to a four-year college or university, four-year
31	to a two-year, or four-year to four-year, shall not affect the transferability of credit hours.
32	(4) The numerical value of credit hours shall be maintained in a transfer from any eligible
33	postsecondary institution to another eligible postsecondary institution. The receiving institution
34	shall grant the same total number of credits as originally assigned by the sending institution. In
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1	some cases there may be a difference in the number of credits assigned to the course by each
2	institution. In those cases, the course will receive the number of credits assigned by the sending
3	institution with any remaining number of credits assigned as elective credits.
4	(5) Whenever possible, college-level credit earned in a transferable course will be granted
5	without regard to the date when the course was completed. Exceptions may be granted under a
6	process detailed in the council’s policy.
7	(6) All eligible postsecondary institutions shall establish a common curriculum of general
8	education coursework that contains a minimum of [30-32] college-level credits. Students at
9	eligible postsecondary institutions who complete the common curriculum of general education
10	coursework shall be able to transfer each college-level credit contained within the curriculum
11	from an eligible postsecondary institution to another eligible postsecondary institution and have
12	each college-level credit from the common curriculum be counted towards the student’s degree
13	requirements at any eligible postsecondary institution. Students completing the common
14	curriculum of general education coursework shall not be required to take any additional lower-
15	division general education courses upon transfer. The council on postsecondary education is
16	hereby directed to adopt at least one common curriculum of general education coursework
17	described in this section that is available for use by students by the beginning of the 2020-2021
18	academic year. Any lower division courses available at the Community College of Rhode Island
19	must articulate to Rhode Island College and the University of Rhode Island as meeting general
20	education, major prerequisite, or major requirements. Courses developed to meet major
21	requirements for career and technical programs may be exempt from this requirement if an
22	articulated bachelor’s degree is not available.
23	(7) All undergraduate courses at each eligible postsecondary institution shall utilize the
24	same course numbering system with equivalent courses offered throughout the institutions. To be
25	assigned a new and unique course number, the proposed course content must be unique and not
26	found in a current or pending course. The council on postsecondary education shall adopt this
27	common course numbering system for use by all eligible postsecondary institutions by July 1,
28	2021, with the system being implemented by the beginning of the 2021/2022 school year.
29	(8) Each eligible postsecondary institution shall collaborate to develop a unified
30	statewide transfer agreement, aligned with the common curriculum of general education
31	coursework established under paragraph (c)(7) of this section for each course of study. The
32	council on postsecondary education shall be responsible for adopting the agreements. The council
33	shall adopt a unified statewide transfer agreement for at least three major courses of study per
34	year until all courses of study have a unified statewide transfer agreement. The first three unified
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1	statewide transfer agreements must be adopted by the council by January 1, 2020. Each unified
2	statewide transfer agreement developed under this section must:
3	(i) Enable a student to transfer from each eligible postsecondary institution to any other
4	eligible postsecondary institution without the loss of college-level credit or the requirement to
5	retake a course at a public institution that the student has successfully completed at any other
6	eligible postsecondary institution, provided that the grade in each course that is transferred meets
7	the degree requirements established by the unified statewide transfer agreement;
8	(ii) Contain provisions that identify the optimal number of college-level credit hours,
9	including credit hours in the major course of study, that the student should have when the student
10	transfers from any eligible postsecondary institution to another eligible postsecondary institution
11	in order for the student to efficiently receive a bachelor’s degree; and
12	(iii) Define the classes and completion standards for the optimal number of college-level
13	credit hours identified in paragraph (ii) of this subsection that may be taken at each eligible
14	postsecondary institution;
15	(iv) Ensure that if a student at any eligible postsecondary institution has completed 60
16	college-level credit hours of coursework in conformity with the completion standards identified in
17	paragraph (iii) of this subsection and transfers to any eligible postsecondary institution, the
18	student will receive junior status in the major course of study at the eligible postsecondary
19	institution and be able to receive a bachelor’s degree in the major course of study by completing
20	the additional college-level credits identified in the unified statewide transfer agreement after the
21	transfer, based on the total number of college-level credit hours and standards approved by the
22	accrediting body for the eligible postsecondary institution; and
23	(v) For unified statewide transfer agreements that specify an optimal number of college-
24	level credit hours for transfer students other than 60, ensure that if a student at any eligible
25	postsecondary institution has completed the specified number of college-level credit hours of
26	coursework in conformity with the completion standards identified in this subsection and
27	transfers to another eligible postsecondary institution, the student will receive status at the eligible
28	postsecondary institution based on the number of academic credit hours referenced in the
29	applicable transfer agreement that is comparable to the status of students with the same number of
30	college-level credit hours in the major course of study who began their postsecondary studies at
31	the receiving institution, and be able to receive a bachelor’s degree in the major course of study
32	by completing the additional college-level credit hours specified in the unified statewide transfer
33	agreement after the transfer based on the total number of college-level credits and standards
34	approved by the accrediting body for the eligible postsecondary institution.
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1	(d) Each eligible postsecondary institution shall submit policies and procedures for
2	students to earn college-level credit hours for prior learning to the council on postsecondary
3	education by July 1, 2021. At a minimum, these procedures shall include:
4	(1) A listing of the types of documentation acceptable to the institution and the dates of
5	inclusion for which prior learning is acceptable;
6	(2) Guidelines for student requests for awards of college-level credit hours for prior
7	learning. Institutions must establish a written record of their decisions and the basis for that
8	decision in accepting or declining a Prior Learning Assessment (“PLA”) for academic credit
9	hours. Institutional policies should ensure the transparency of the award or denial of PLA credit
10	hours;
11	(3) A process for appealing PLA decisions; and
12	(4) A process for assessing every enrolling student for college-level credit hours for prior
13	learning;
14	Credit hours earned through PLA will be transferable in accordance with this chapter.
15	(e) Each eligible postsecondary institution shall complete an Academic Program
16	Prioritization Process approved by the council on postsecondary education by September 1, 2021.
17	This process shall include the following and shall not take more than one year to complete after
18	the process is approved by the Council:
19	(1) An analysis of the postsecondary and workforce needs of the state;
20	(2) Identification of a plan for program expansion, consolidation, and closure based on
21	that analysis;
22	(3) Participation of, but not limited to, faculty, the business community, and the
23	community at large.
24	(f) The council on postsecondary education shall approve a policy by January 1, 2020
25	that sets standards for making course offerings at the eligible postsecondary institutions
26	predictable, structured, and more flexible to meet student scheduling needs. The policy shall
27	facilitate opportunities for students to take required courses in a timely manner. The policy shall
28	also encourage the institutions to enable students to begin courses outside of the traditional
29	academic schedules in order to improve time to completion. The policy shall further make
30	courses accessible to working students and consistently available outside of regular work hours.
31	(g) Each eligible postsecondary institution shall establish and submit to the council on
32	postsecondary education for approval a work plan to implement with an effective date no later
33	than September 1, 2020 a clearly structured, coherent and guided pathway program available to
34	all entering students for purposes of improving students’ outcomes and reducing time to attain
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1	degrees. Work plans submitted by all eligible postsecondary institutions shall do the following:
2	(1) Simplify students’ choices with default program maps developed by faculty and
3	advisors for all academic and vocational programs that show students a clear pathway to
4	completion within two (2) academic years for an associate degree program and four (4) years for
5	a bachelor’s degree program;
6	(2) Ensure student advising and support services are available to help students
7	transitioning from high school, exploring academic fields, choosing a major, and developing a
8	comprehensive academic plan so as to remain on track to graduate on time;
9	(3) Redesign traditional remediation to become an “on-ramp” to a program of study,
10	which helps students explore academic and career options from the beginning of their college
11	experience, to align math and other foundational coursework with a student’s program of study,
12	and to integrate and contextualize instructions to build academic and nonacademic foundation
13	skills throughout the college-level curriculum, particularly in program “gateway” courses;
14	(4) Implement procedures and systems, supported by appropriate technology, to monitor
15	students’ progress toward completing their academic plans, to identify students who are at risk of
16	not progressing in a program, and to intervene promptly with advising and other academic
17	supports to help students resume their progress or revise their plans; and
18	(5) Embed academic and nonacademic supports throughout student programs to promote
19	student learning and persistence.
20	(h) Each eligible postsecondary institution shall utilize evidence-based assessment and
21	placement practices that incorporate multiple student performance measures to improve outcomes
22	for underprepared students, which measures shall include, but not be limited to, overall grade
23	point averages and grades in high school courses.
24	(i) The Office of the Postsecondary Commissioner shall maintain and publish data on the
25	state’s postsecondary system. The eligible postsecondary institutions shall, on a quarterly basis,
26	transmit the following data elements, disaggregated by institution, race/ethnicity, program/major
27	enrollment, enrollment status, and income level, including Pell status, to the Office:
28	(1) Average net cost of attendance;
29	(2) Retention by term or year;
30	(3) Short- and long-term wage effects;
31	(4) Cumulative college-level credit hours attempted and earned;
32	(5) Remedial and gateway course enrollment and completion;
33	(6) Transfer credit(s) earned by students transferring into the institution;
34	(7) Graduation rates;
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1	(8) Time and Credits to earning a credential; and
2	(9) Any other data as determined necessary for regular review and analysis by the council
3	on postsecondary education to accomplish the goals articulated in § 16-107-2. This data should be
4	regularly available on the Postsecondary Commissioner’s website for public use.
5	16-107-11. Eligibility for child care assistance.
6	(a) Recipient students may qualify for child care assistance administered by the
7	department of human services for appropriate child care pursuant to §40-5.2-20 (b).
8	(b) The department of human services shall promulgate rules, regulations and procedures
9	to facilitate access to child care assistance for recipient students who are eligible pursuant to §40-
10	5.2-20(b).
11	SECTION 4. Section 16-56-6 of the General Laws in Chapter 16-56 entitled
12	"Postsecondary Student Financial Assistance" is hereby amended to read as follows:
13	16-56-6. Need-based grants.
14	(a) Amount of funds allocated. The commissioner of postsecondary education shall
15	allocate annually the appropriation for need-based scholarships and grants. Of the total amount
16	appropriated for need-based scholarship and grants, the lesser of twenty percent (20%) or two
17	million dollars ($2,000,000) shall be distributed to qualified students attending participating,
18	independent, non-profit, higher education institutions in Rhode Island. The remainder of funds
19	shall be limited to public higher education institutions in Rhode Island. As part of the annual
20	budget submission, the office of postsecondary commissioner shall include a plan of how the
21	need-based scholarship and grant funds will be allocated to each public institution receiving funds
22	pursuant to this chapter and how the funds will be distributed to students attending independent,
23	non-profit institutions.
24	(b) Eligibility of individuals. Eligibility for need-based grants and scholarships shall be
25	determined by the office of the postsecondary commissioner.
26	(c) Number and terms of awards. The number of awards to be granted in any one fiscal
27	year shall be contingent upon the funds allocated to this section.
28	SECTION 5. This article shall take effect upon passage.
29	ARTICLE 12
30	RELATING TO ECONOMIC DEVELOPMENT
31	SECTION 1. Section 42-64.10-6 of the General Laws in Chapter 42-64.10 entitled
32	"Quonset Development Corporation" is hereby amended to read as follows:
33	42-64.10-6. Additional general powers and duties.
34	In addition to the powers enumerated in § 42-64.10-5, except to the extent inconsistent
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1	with any specific provision of this chapter, the corporation shall have and may exercise additional
2	general powers:
3	(a) As set forth in § 42-64-7 necessary or convenient to effect its purposes; provided,
4	however, that the corporation shall not have the power to issue bonds or notes or exercise eminent
5	domain;
6	(b) As a subsidiary of the Rhode Island commerce corporation as provided for in § 42-64-
7	7.1;
8	(c) As the Rhode Island commerce corporation's true and lawful attorney as agent and
9	attorney-in-fact and in the name, place and stead of the Rhode Island commerce corporation with
10	respect to all property of the Rhode Island commerce corporation at Quonset Business Park
11	(hereinafter referred to as "the Property") and for the purposes hereinafter set forth:
12	(1) To ask, demand, recover, collect, receive, hold, and possess all sums of money, debts,
13	dues, goods, wares, merchandise, chattels, effects, bonds, notes, checks, drafts, accounts,
14	deposits, safe deposit boxes, interests, dividends, stock certificates, certificates of deposit,
15	insurance benefits and proceeds, documents of title, personal and real property, tangible and
16	intangible property, and property rights, liquidated or unliquidated, that now are, or hereafter,
17	shall be, or become, due, owing, or payable in respect to the property, and upon receipt thereof, or
18	of any part thereof, to make, sign, execute, and deliver such receipts, releases, or other discharges
19	for the same as the corporation shall deem proper.
20	(2) To lease, purchase, exchange and acquire, and to bargain, contract, and agree for the
21	lease, purchase, exchange, and acquisition of, and to take, receive, possess, and manage any real
22	or personal property related in any way to the property, tangible and intangible, or any interest
23	therein.
24	(3) To enter into and upon all and each of the real properties constituting a part of, or
25	related in any way, to the property, and to let, manage, and improve the real property or any part
26	thereof, and to repair or otherwise improve or alter, and to insure any buildings or structures
27	thereon.
28	(4) To market and sell, either at public or private sale, or exchange any part or parts of the
29	real or personal properties, including indebtedness or evidence thereof, constituting a part of or
30	related in any way to the property, including sales on credit, and for that purpose to execute and
31	receive all promissory notes, bonds, mortgages, deeds of trust, security agreements, and other
32	instruments that may be necessary or proper, and to bargain, contract, and agree with respect to
33	the sale or exchange of such properties; and to execute and deliver good and sufficient deeds,
34	bills of sale, assignments, or other instruments or endorsements for the conveyance or transfer of
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1	the same; and to give receipts for all or any part of the purchase price or other consideration.
2	(5) To sign, endorse, execute, acknowledge, deliver, receive, and possess such
3	applications, contracts, agreements, options, covenants, deeds, conveyances, trust deeds,
4	mortgagees deeds, security agreements, bills of sale, leases, mortgages, assignments, insurance
5	policies, bills of lading, warehouse receipts, documents of title, bills, bonds, debentures, checks,
6	drafts, bills of exchange, notes, stock certificates, proxies, warrants, commercial paper, receipts,
7	withdrawal receipts, and deposit instruments relating to accounts or deposits in, or certificates of
8	deposit of, banks, savings and loan or other institutions or associations, proofs of loss, evidences
9	of debts, releases, and satisfactions of mortgages, judgments, liens, security agreements, and other
10	debts and obligations, and other instruments in writing of whatever kind and nature as be
11	necessary or proper in the exercise of the rights and powers herein granted.
12	(6) To enter into subordination agreements, inter-creditor agreements, reinstatement
13	agreements, "stand still" and "stand-by" agreements, modification agreements, forbearance
14	agreements, and other contracts having the effect of subordinating, modifying, renewing,
15	restructuring or otherwise altering the rights, obligations, or liabilities of the commerce
16	corporation, under or with respect to any indebtedness, property, or other assets constituting or
17	securing any property.
18	(7) To make demands, give notices of default, notices of intention to accelerate, notices
19	of acceleration, or such other notices as the corporation deems necessary or appropriate, and to
20	take other actions and exercise other rights that may be taken under the terms of any loan
21	agreements, security agreements, guaranties, or other documents or agreements evidencing, or
22	otherwise relating to, the property, including foreclosure, lease, sale, taking possession of,
23	realization upon, or any other disposition of any property or any collateral therefor or guarantee
24	thereof.
25	(8) To exercise any powers and any duties vested in the commerce corporation as a
26	partner, joint venturer, participant, or other joint-interest holder with respect to any property, or to
27	concur (or not) with persons jointly interested with the commerce corporation in any property.
28	(9) With respect to the property: (i) To sue on, or otherwise prosecute, any claim or cause
29	of action, or commence or seek any legal, equitable, or administrative or other remedy in any
30	legal, administrative, arbitration, mediation, or other proceeding whatsoever (including, non-
31	judicial repossessions and foreclosures or similar actions to recover collateral); (ii) To defend, or
32	otherwise participate for, or in the name of, the commerce corporation in any legal,
33	administrative, arbitration, mediation, or other proceedings; (iii) To process, determine, or
34	adjudge any claim or cause of action for, or in the name of, the commerce corporation; (iv) To
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1	compromise, settle, discharge or resolve, or make, execute, or deliver any endorsements,
2	acquittances, releases, receipts, or other discharges of any claim, cause of action, determination,
3	judgment, or other proceeding for, or in the name of, the commerce corporation; and (v) To
4	prepare, execute, and file ad valorem, franchise and other tax returns, protests and suits against
5	taxing authorities, and to prepare, execute, and file other governmental or quasi-governmental
6	reports, declarations, applications, requests and documents in connection with any property, and
7	to pay taxes in connection with the property as the corporation deems necessary or appropriate, or
8	as otherwise required by law.
9	(10) Any third party shall be entitled to rely on a writing signed by the corporation to
10	conclusively establish the identity of a particular Property as property for all purposes hereof.
11	(d) To own, hold, improve, operate, manage, and regulate utilities at the Quonset
12	Business Park and to establish rates, fees, and charges, to adopt regulations, and to impose
13	penalties for any services or utilities it provides, or causes to have available, and to have functions
14	and exercise powers as necessary and appropriate under the provisions of §§ 42-64-4, 42-64-7.4,
15	42-64-7.8, 42-64-7.9 and 42-64-9.1 -- 42-64-9.10, inclusive.
16	(e) To enter into agreements with any city, town, district, or public corporation with
17	regard to application and/or administration of zoning or other land use ordinances, codes, plans,
18	or regulations, and cities, towns, districts, and public corporations are hereby authorized and
19	empowered, notwithstanding any other law to the contrary, to enter into such agreements with the
20	corporation and to do all things necessary to carry out their obligations under such agreements; in
21	the absence of any such agreement the corporation shall act in accordance with the provisions of
22	§ 42-64-13.
23	(f) To enter into agreements, including with any state agency, city, town, district, or
24	public corporation, for the provision of police, security, fire, sanitation, health protection, and
25	other public services.
26	(g) To be exempt from taxation and to enter into agreements for payments in lieu of taxes
27	as provided for in § 42-64-20.
28	(h) To establish a stormwater management and conveyance system and regulate
29	connections, user fees, charges and assessments in connection therewith. In particular, the
30	corporation shall have full and complete power and authority to:
31	(1) Limit, deny, or cause appropriate direct or indirect connections to be made between
32	any building or property located in the Quonset Business Park, or from any location outside the
33	boundaries of the Quonset Business Park and discharging into the corporation's stormwater
34	management and conveyance systems. The corporation may prescribe those rules and regulations
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1	for stormwater runoff, that in the opinion of the corporation, are necessary and appropriate for the
2	maintenance and operation of the stormwater management and conveyance systems, and may
3	establish, from time to time, rules and regulations relating to stormwater management in the
4	Quonset Business Park. Any person or entity having an existing connection to the stormwater
5	management and conveyance systems or currently discharging into such systems, will obtain a
6	permit from the corporation in accordance with its rules and regulations. No person or entity
7	shall, without first being granted a written permit from the corporation in accordance with its
8	rules and regulations, make any future connection or permit any runoff from any structure or
9	property to any stormwater management and conveyance systems, or any appurtenance thereto,
10	without first being granted a written permit from the corporation in accordance with its rules and
11	regulations.
12	(2) Compel any person or entity within the Quonset Business Park, for the purpose of
13	stormwater runoff, to establish a direct connection on the property of the person or entity, or at
14	the boundary thereof, to the corporation's stormwater management and conveyance systems.
15	These connections shall be made at the expense of such person or entity. The term
16	"appurtenance" as used herein shall be construed to include adequate pumping facilities,
17	whenever the pumping facilities shall be necessary to deliver the stormwater runoff to the
18	stormwater management and conveyance systems.
19	(3) Assess any person or entity having a direct or indirect connection (including, without
20	limitation, via runoff) to the Quonset Business Park stormwater management and conveyance
21	systems the reasonable charges for the use, operation, maintenance, and improvements to the
22	systems. The corporation shall also be entitled, in addition to any other remedies available, to
23	assess fines for violations of the rules and regulations established by the corporation with respect
24	to stormwater management.
25	(4) Collect the fees, charges, and assessments from any person or entity so assessed. Each
26	person or entity so assessed shall pay the fees, charges, or assessments within the time frame
27	prescribed by the rules and regulations of the corporation. The corporation may collect the fees,
28	charges, and assessments in the same manner in which taxes are collected by municipalities, with
29	no additional fees, charges, assessments, or penalties (other than those provided for in chapter 9
30	of title 44). All unpaid charges shall be a lien upon the real estate of the person or entity. The lien
31	shall be filed in the records of land evidence for the city or town in which the property is located
32	and the corporation shall simultaneously, with the filing of the lien, give notice to the property
33	owner. Owners of property subject to a lien for unpaid charges are entitled to a hearing within
34	fourteen (14) days of the recording of the lien.
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1	(5) Notwithstanding the provisions of subsection (h)(4) of this section, the corporation is
2	authorized to terminate the water supply service or prohibit the use of the corporation's
3	stormwater management and conveyance systems of any person or entity for the nonpayment of
4	storm water management user fees, charges, and assessments. The corporation shall notify the
5	user of termination of water supply or use of the stormwater management and conveyance
6	systems at least forty-eight (48) hours prior to ceasing service. The corporation may assess any
7	person or entity any fees, charges, and assessments affiliated with the shut off and restoration of
8	service.
9	(6) Without in any way limiting the foregoing powers and authority, the corporation is
10	also hereby empowered to: (i) Establish a fee system and raise funds for administration and
11	operation of the stormwater management and conveyance systems; (ii) Prepare long-range,
12	stormwater management master plans; (iii) Implement a stormwater management district; (iv)
13	Retrofit existing structures to improve water quality or alleviate downstream flooding or erosion;
14	(v) Properly maintain existing stormwater management and conveyance systems; (vi) Hire
15	personnel to carry out the functions of the stormwater management and conveyance systems; (vii)
16	Receive grants, loans, or funding from state and federal water-quality programs; (viii) Grant
17	credits to property owners who maintain retention and detention basins or other filtration
18	structures on their property; (ix) Make grants for implementation of stormwater management
19	plans; (x) Purchase, acquire, sell, transfer, or lease real or personal property; (xi) Impose liens;
20	(xii) Levy fines and sanctions for noncompliance; (xiii) Provide for an appeals process; and (xiv)
21	Contract for services in order to carry out the function of the stormwater management and
22	conveyance systems.
23	(i) To purchase and obtain water supply and water service from any city, town, water
24	district, or other water supply authority. In particular, the corporation is authorized to:
25	(1) Enter into agreements or contracts with any city, town, county, water district, or other
26	water supply authority to purchase, acquire, and receive water supply and water service.
27	(2) Enter into cooperative agreements with cities, towns, counties, water districts, or other
28	water supply authorities for the interconnection of facilities or for any other lawful corporate
29	purposes necessary or desirable to effect the purposes of this chapter.
30	(3) Connect the water supply system at Quonset Business Park with any city, town,
31	county, water district, or other water supply authority that receives or has a connection with the
32	city of Providence and/or the Providence Water Supply Board (or any successor thereof) and
33	purchase, connect to, receive, and enter into agreements to receive water supply from any city,
34	town, county, water district, or other water supply authority regardless of the origin of such water
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1	supply. The city of Providence and the Providence Water Supply Board (and any successor
2	thereof) are authorized and directed to supply water to the Quonset Business Park either directly
3	or via connections between the Quonset Development Corporation and any city, town, county,
4	water district, or other water supply authority, notwithstanding any terms to the contrary in any
5	agreement, including, without limitation, any agreement between any city, town, county, water
6	district, or other water supply authority and the city of Providence and/or the Providence Water
7	Supply Board (or its or their predecessors), or the provisions of chapter 16 of title 39. In addition,
8	the provisions of § 18 of chapter 1278 of the public laws of Rhode Island of 1915 as amended,
9	and any other public law that would conflict with the terms hereof, are hereby amended to
10	authorize the provision of water supply by the city of Providence and the Providence Water
11	Supply Board (or any successor thereof) to the Quonset Business Park and to authorize any
12	additional connections in accordance herewith. There shall be no requirement that the corporation
13	demonstrate public necessity before entering into such agreements, connecting to such water
14	supplies, or receiving such water as described in this subsection, but the corporation shall be
15	subject to the other applicable provisions of chapter 15 of title 46.
16	(d) The corporation shall have and may exercise all powers set forth in general laws § 42-
17	64.33-6, § 42-64.33-7 and § 42-64.33-9 in the place and stead of the state and local partnership
18	council but only to the extent the state and local partnership council has not exercised jurisdiction
19	with respect to the subject matter or project over which the corporation intends to act, and upon
20	the exercise of such powers in relation to a municipality or a project therein, notice of which shall
21	be provided to the state and local partnership council of the exercise of jurisdiction by the
22	corporation. The corporation shall have exclusive jurisdiction and authority of the subject matter
23	thereof to the exclusion of the state and local partnership council, unless otherwise agreed to in
24	writing by the corporation.
25	SECTION 2. Section 42-64.10-7 of the General Laws in Chapter 42-64.10 entitled
26	"Quonset Development Corporation" is hereby amended to read as follows:
27	42-64.10-7. Directors, officers and employees.
28	(a) Directors.
29	(1) Except in the exercise of the powers conferred under § 42-64.10-6(d), Tthe powers of
30	the corporation shall be vested in a board of directors consisting of eleven (11) members. The
31	membership of the board shall consist of the executive director of the Rhode Island economic
32	development corporation as chairperson, (who shall vote only in the event of a tie), six (6)
33	members appointed by the governor, with the advice and consent of the senate, two (2) members
34	appointed by the town council of the town of North Kingstown, one member appointed by the
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1	town council of the town of Jamestown, and one member appointed by the town council of the
2	town of East Greenwich. The initial members of the board shall be divided into three (3) classes
3	and shall serve initial terms on the board of directors as follows: two (2) of the directors
4	appointed by the governor; one of the directors appointed by the town council of the town of
5	North Kingstown shall be appointed for an initial term of one year; two (2) of the directors
6	appointed by the governor, one director appointed by the town council of the town of North
7	Kingstown and the director appointed by the town of East Greenwich shall be appointed for an
8	initial term of two (2) years; and two (2) of the directors appointed by the governor and one
9	director appointed by the town of Jamestown shall be appointed for an initial term of three (3)
10	years. Upon expiration of each initial term and upon the expiration of each term thereafter, a
11	successor shall be appointed by the same authority that made the initial appointment, and in the
12	case of appointments by the governor with the advice and consent of the senate, to serve for a
13	term of three (3) years so that members of the board of directors shall serve for staggered terms of
14	three (3) years each. A vacancy on the board, other than by expiration, shall be filled in the same
15	manner as an original appointment, but only for the unexpired portion of the term. If a vacancy
16	occurs with respect to one of the directors appointed by the governor when the senate is not in
17	session, the governor shall appoint a person to fill the vacancy, but only until the senate shall next
18	convene and give its advice and consent to a new appointment. A member shall be eligible to
19	succeed himself or herself. Appointed directors shall not serve more than two (2) successive three
20	(3) year terms but may be reappointed after not being a director for a period of at least twelve
21	(12) months. Each appointed director shall hold office for the term for which the director is
22	appointed and until the director's successor shall have been appointed and qualified, or until the
23	director's earlier death, resignation or removal. Except for members of the town council of the
24	town of North Kingstown, who may serve as members of the board of directors, no director shall
25	be an elected official of any governmental entity. In the exercise of the powers conferred under §
26	42-64.10-6(d) and only with respect to actions taken consistent with the program established
27	under chapter 64.33 of title 42, which actions may not involve land in the Quonset Business Park,
28	the powers of the corporation shall be vested in a board of directors consisting of seven (7)
29	members, including the chairperson, who shall be the secretary of commerce and vote only in the
30	event of a tie, and six members to be appointed by the governor with the advice and consent of
31	the senate, provided that the number of board members shall be increased in instances where a
32	project is situated in one or more municipalities. Such powers conferred under § 42-64.10-6(d)
33	may only be exercised in connection with carrying out the program established under chapter
34	64.33 of title 42. In the exercise of the powers conferred under § 42-64.10-6(d), the board shall
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1	add, and the total number of directors shall be increased by (i) two (2) new members appointed by
2	the governing body of the municipality in which the project is located when a project is located in
3	a single municipality or (ii) new members appointed by the governing body of each municipality
4	in which the project is located when a project is located in more than one municipality, with each
5	municipality appointing one member to the board.
6	SECTION 3. Section 42-64.20-3 of the General Laws in Chapter 42-64.20 entitled
7	"Rebuild Rhode Island Tax Credit Act" is hereby amended to read as follows:
8	42-64.20-3. Definitions.
9	(1) "Adaptive reuse" means the conversion of an existing structure from the use for which
10	it was constructed to a new use by maintaining elements of the structure and adapting such
11	elements to a new use.
12	(2) "Affiliate" means an entity that directly or indirectly controls, is under common
13	control with, or is controlled by the business. Control exists in all cases in which the entity is a
14	member of a controlled group of corporations as defined pursuant to § 1563 of the Internal
15	Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of
16	organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
17	Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and
18	convincing evidence, as determined by the tax administrator, that control exists in situations
19	involving lesser percentages of ownership than required by those statutes. An affiliate of a
20	business may contribute to meeting either the capital investment or full-time employee
21	requirements of a business that applies for a credit under this chapter.
22	(3) "Affordable housing" means housing for sale or rent with combined rental costs or
23	combined mortgage loan debt service, property taxes, and required insurance that do not exceed
24	thirty percent (30%) of the gross annual income of a household earning up to eighty percent
25	(80%) of the area median income, as defined annually by the United States Department of
26	Housing and Urban Development.
27	(4) "Applicant" means a developer applying for a rebuild Rhode Island tax credit under
28	this chapter.
29	(5) "Business" means a corporation as defined in § 44-11-1(4), or a partnership, an S
30	corporation, a non-profit corporation, a sole proprietorship, or a limited liability corporation. A
31	business shall include an affiliate of the business if that business applies for a credit based upon
32	any capital investment made by an affiliate.
33	(6) "Capital investment" in a real estate project means expenses by a developer incurred
34	after application for:
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1	(i) Site preparation and construction, repair, renovation, improvement, equipping, or
2	furnishing on real property or of a building, structure, facility, or improvement to real property;
3	(ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,
4	including but not limited to material goods for the operation of a business on real property or in a
5	building, structure, facility, or improvement to real property.
6	In addition to the foregoing, if a developer acquires or leases a qualified development
7	project, the capital investment made or acquired by the seller or owner, as the case may be, if
8	pertaining primarily to the premises of the qualified development project, shall be considered a
9	capital investment by the developer and, if pertaining generally to the qualified development
10	project being acquired or leased, shall be allocated to the premises of the qualified development
11	project on the basis of the gross leasable area of the premises in relation to the total gross leasable
12	area in the qualified development project. The capital investment described herein shall be
13	defined through rules and regulations promulgated by the commerce corporation.
14	(7) "Certified historic structure" means a property which is located in the state of Rhode
15	Island and is
16	(i) Listed individually on the national register of historic places; or
17	(ii) Listed individually in the state register of historic places; or
18	(iii) Located in a registered historic district and certified by either the Rhode Island
19	historical preservation and heritage commission created pursuant to § 42-45-2 or the Secretary of
20	the Interior as being of historic significance to the district.
21	(8) "Commerce corporation" means the Rhode Island commerce corporation established
22	pursuant to § 42-64-1 et seq.
23	(9) "Commercial" shall mean non-residential development.
24	(10) "Developer" means a person, firm, business, partnership, association, political
25	subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
26	into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
27	land or existing structures, which division, building, or improvement qualifies for benefits under
28	this chapter.
29	(11) "Development" means the improvement of land through the carrying out of building,
30	engineering, or other operations in, on, over, or under land, or the making of any material change
31	in the use of any buildings or land for the purposes of accommodating land uses.
32	(12) "Eligibility period" means the period in which a developer may claim a tax credit
33	under this act, beginning with the tax period in which the commerce corporation accepts
34	certification from the developer that it has met the requirements of the act and extending
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1	thereafter for a term of five (5) years.
2	(13) "Full-time employee" means a person who is employed by a business for
3	consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other
4	standard of service generally accepted by custom or practice as full-time employment, or who is
5	employed by a professional employer organization pursuant to an employee leasing agreement
6	between the business and the professional employer organization for a minimum of thirty-five
7	(35) hours per week, or who renders any other standard of service generally accepted by custom
8	or practice as full-time employment, and whose wages are subject to withholding.
9	(14) "Hope community" means a municipality for which the five-year (5) average
10	percentage of families with income below the federal poverty level exceeds the state five-year (5)
11	average percentage, both as most recently reported by the U.S. Department of Commerce, Bureau
12	of the Census.
13	(15) “Manufacturer” shall mean any entity that:
14	(a) Uses any premises within the state primarily for the purpose of transforming raw
15	materials into a finished product for trade through any or all of the following operations:
16	adapting, altering, finishing, making, processing, refining, metalworking, and ornamenting, but
17	shall not include fabricating processes incidental to warehousing or distribution of raw materials,
18	such as alteration of stock for the convenience of a customer; or
19	(b) Is described in codes 31-33 of the North American Industry Classification System, as
20	revised from time to time.
21	(16) "Mixed use" means a development comprising both commercial and residential
22	components.
23	(176) "Partnership" means an entity classified as a partnership for federal income tax
24	purposes.
25	(187) "Placed in service" means the earlier of i) substantial construction or rehabilitation
26	work has been completed which would allow for occupancy of an entire structure or some
27	identifiable portion of a structure, as established in the application approved by the commerce
28	corporation board or ii) receipt by the developer of a certificate, permit or other authorization
29	allowing for occupancy of the project or some identifiable portion of the project by the municipal
30	authority having jurisdiction.
31	(198) "Project" means qualified development project as defined under subsection (22).
32	(2019) "Project area" means land or lands under common ownership or control in which a
33	qualified development project is located.
34	(210) "Project cost" means the costs incurred in connection with the qualified
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1	development project or qualified residential or mixed use project by the applicant until the
2	issuance of a permanent certificate of occupancy, or until such other time specified by the
3	commerce corporation, for a specific investment or improvement, as defined through rules and
4	regulations promulgated by the commerce corporation.
5	(221) "Project financing gap" means
6	(i) The part of the total project cost that remains to be financed after all other sources of
7	capital have been accounted for (such sources will include, but not be limited to, developer-
8	contributed capital), which shall be defined through rules and regulations promulgated by the
9	commerce corporation, or
10	(ii) The amount of funds that the state may invest in a project to gain a competitive
11	advantage over a viable and comparable location in another state by means described in this
12	chapter.
13	(232) "Qualified development project" means a specific construction project or
14	improvement, including lands, buildings, improvements, real and personal property or any
15	interest therein, including lands under water, riparian rights, space rights and air rights, acquired,
16	owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved,
17	undertaken by a developer, owner or tenant, or both, within a specific geographic area, meeting
18	the requirements of this chapter, as set forth in an application made to the commerce corporation.
19	(243) "Recognized historical structure" means a property which is located in the state of
20	Rhode Island and is commonly considered to be of historic or cultural significance as determined
21	by the commerce corporation in consultation with the state historic preservation officer.
22	(25) "Residential" means a development of residential dwelling units.
23	(265) "Targeted industry" means any advanced, promising, or otherwise prioritized
24	industry identified in the economic development vision and policy promulgated pursuant to § 42-
25	64.17-1 or, until such time as any such economic development vision and policy is promulgated,
26	as identified by the commerce corporation.
27	(276) "Transit oriented development area" means an area in proximity to transit
28	infrastructure that will be further defined by regulation of the commerce corporation in
29	consultation with the Rhode Island department of transportation.
30	(287) "Workforce housing" means housing for sale or rent with combined rental costs or
31	combined mortgage loan debt service, property taxes, and required insurance that do not exceed
32	thirty percent (30%) of the gross annual income of a household earning between eighty percent
33	(80%) and one hundred and forty percent (140%) of the area median income, as defined annually
34	by the United States Department of Housing and Urban Development.
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1	SECTION 4. Section 42-64.20-5 of the General Laws in Chapter 42-64.20 entitled
2	"Rebuild Rhode Island Tax Credit" is hereby amended to read as follows:
3	42-64.20-5. Tax credits.
4	(a) An applicant meeting the requirements of this chapter may be allowed a credit as set
5	forth hereinafter against taxes imposed upon such person under applicable provisions of title 44
6	of the general laws for a qualified development project.
7	(b) To be eligible as a qualified development project entitled to tax credits, an applicant's
8	chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the
9	time of application, that:
10	(1) The applicant has committed capital investment or owner equity of not less than
11	twenty percent (20%) of the total project cost;
12	(2) There is a project financing gap in which after taking into account all available private
13	and public funding sources, the project is not likely to be accomplished by private enterprise
14	without the tax credits described in this chapter; and
15	(3) The project fulfills the state's policy and planning objectives and priorities in that:
16	(i) The applicant will, at the discretion of the commerce corporation, obtain a tax
17	stabilization agreement from the municipality in which the real estate project is located on such
18	terms as the commerce corporation deems acceptable;
19	(ii) It (A) is a commercial development consisting of at least 25,000 square feet occupied
20	by at least one business employing at least 25 full-time employees after construction or such
21	additional full-time employees as the commerce corporation may determine; (B) is a multi-family
22	residential development in a new, adaptive reuse, certified historic structure, or recognized
23	historical structure consisting of at least 20,000 square feet and having at least 20 residential units
24	in a hope community; or (C) is a mixed-use development in a new, adaptive reuse, certified
25	historic structure, or recognized historical structure consisting of at least 25,000 square feet
26	occupied by at least one business, subject to further definition through rules and regulations
27	promulgated by the commerce corporation; and
28	(iii) Involves a total project cost of not less than $5,000,000, except for a qualified
29	development project located in a hope community or redevelopment area designated under § 45-
30	32-4 in which event the commerce corporation shall have the discretion to modify the minimum
31	project cost requirement.
32	(c) The commerce corporation shall develop separate, streamlined application processes
33	for the issuance of Rebuild RI tax credits for each of the following:
34	(1) Qualified development projects that involve certified historic structures;
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1	(2) Qualified development projects that involve recognized historical structures;
2	(3) Qualified development projects that involved at least one manufacturer; and
3	(4) Qualified development projects that include affordable housing or workforce housing.
4	(d) Applications made for a historic structure or recognized historic structure tax credit
5	under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division
6	of taxation, at the expense of the commerce corporation, shall provide communications from the
7	commerce corporation to those who have applied for and are in the queue awaiting the offer of
8	tax credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the Rebuild
9	RI Tax Credit program.
10	(e) Applicants (i) who have received the notice referenced in subsection (d) above and
11	who may be eligible for a tax credit pursuant to chapter 33.6 of title 44, (ii) whose application
12	involves a certified historic structure or recognized historical structure, or (iii) whose project is
13	occupied by at least one manufacturer shall be exempt from the requirements of subparagraphs
14	(b)(3)(ii) and (b)(3)(iii) of this section. The following procedure shall apply to such applicants:
15	(1) The division of taxation shall remain responsible for determining the eligibility of an
16	applicant for tax credits awarded under chapter 33.6 of title 44;
17	(2) The commerce corporation shall retain sole authority for determining the eligibility of
18	an applicant for tax credits awarded under this chapter; and
19	(3) The commerce corporation shall not award in excess of fifteen percent (15%) of the
20	annual amount appropriated authorized in any fiscal year to applicants seeking tax credits
21	pursuant to this subsection (ce).
22	(df) Maximum project credit.
23	(i) For qualified development projects, the maximum tax credit allowed under this
24	chapter shall be the lesser of (1) thirty percent (30%) of the total project cost; or (2) the amount
25	needed to close a project financing gap (after taking into account all other private and public
26	funding sources available to the project), as determined by the commerce corporation.
27	(ii) The credit allowed pursuant to this chapter shall not exceed fifteen million dollars
28	($15,000,000) for any qualified development project under this chapter. No building or qualified
29	development project to be completed in phases or in multiple projects shall exceed the maximum
30	project credit of fifteen million dollars ($15,000,000) for all phases or projects involved in the
31	rehabilitation of such building. Provided, however, that for purposes of this subsection and no
32	more than once in a given fiscal year, the commerce corporation may consider the development
33	of land and buildings by a developer on the "I-195 land" (as defined in § 42-64.24-3(6) of the
34	general laws) as a separate, qualified development project from a qualified development project
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1	by a tenant or owner of a commercial condominium or similar legal interest including leasehold
2	improvement, fit out, and capital investment. Such qualified development project by a tenant or
3	owner of a commercial condominium or similar legal interest on the I-195 land may be exempted
4	from subparagraph (fd)(i)(1). Separate buildings on the I-195 land may be considered to be
5	separate qualified development projects when determining eligibility under this chapter.
6	(eg) Credits available under this chapter shall not exceed twenty percent (20%) of the
7	project cost, provided, however, that the applicant shall be eligible for additional tax credits of not
8	more than ten percent (10%) of the project cost, if the qualified development project meets any of
9	the following criteria or other additional criteria determined by the commerce corporation from
10	time to time in response to evolving economic or market conditions:
11	(1) The project includes adaptive reuse or development of a recognized historical
12	structure;
13	(2) The project is undertaken by or for a targeted industry;
14	(3) The project is located in a transit-oriented development area;
15	(4) The project includes residential development of which at least twenty percent (20%)
16	of the residential units are designated as affordable housing or workforce housing;
17	(5) The project includes the adaptive reuse of property subject to the requirements of the
18	industrial property remediation and reuse act, § 23-19.14-1 et seq.; or
19	(6) The project includes commercial facilities constructed in accordance with the
20	minimum environmental and sustainability standards, as certified by the commerce corporation
21	pursuant to Leadership in Energy and Environmental Design or other equivalent standards.
22	(fh) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter
23	shall not exceed one two hundred and fifty million dollars ($150250,000,000), and the commerce
24	corporation shall promulgate guidelines regarding the amounts to be authorized for certified
25	historic structures, recognized historical structures, and residential projects.
26	(gi) Tax credits shall not be allowed under this chapter prior to the taxable year in which
27	the project is placed in service.
28	(hj) The amount of a tax credit allowed under this chapter shall be allowable to the
29	taxpayer in up to five, annual increments; no more than thirty percent (30%) and no less than
30	fifteen percent (15%) of the total credits allowed to a taxpayer under this chapter may be
31	allowable for any taxable year.
32	(ik) If the portion of the tax credit allowed under this chapter exceeds the taxpayer's total
33	tax liability for the year in which the relevant portion of the credit is allowed, the amount that
34	exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for
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1	the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits
2	allowed to a partnership, a limited liability company taxed as a partnership, or multiple owners of
3	property shall be passed through to the persons designated as partners, members, or owners
4	respectively pro rata or pursuant to an executed agreement among such persons designated as
5	partners, members, or owners documenting an alternate distribution method without regard to
6	their sharing of other tax or economic attributes of such entity.
7	(jl) The commerce corporation in consultation with the division of taxation shall
8	establish, by regulation, the process for the assignment, transfer, or conveyance of tax credits.
9	(km) For purposes of this chapter, any assignment or sales proceeds received by the
10	taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be
11	exempt from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the
12	seller's tax calculation for the year of revocation or adjustment shall be increased by the total
13	amount of the sales proceeds, without proration, as a modification under chapter 30 of title 44. In
14	the event that the seller is not a natural person, the seller's tax calculation under chapters 11, 13,
15	14, or 17 of title 44 of the general laws, as applicable, for the year of revocation, or adjustment,
16	shall be increased by including the total amount of the sales proceeds without proration.
17	(ln) The tax credit allowed under this chapter may be used as a credit against corporate
18	income taxes imposed under chapters 11, 13, 14, or 17, of title 44, or may be used as a credit
19	against personal income taxes imposed under chapter 30 of title 44 for owners of pass-through
20	entities such as a partnership, a limited liability company taxed as a partnership, or multiple
21	owners of property.
22	(mo) In the case of a corporation, this credit is only allowed against the tax of a
23	corporation included in a consolidated return that qualifies for the credit and not against the tax of
24	other corporations that may join in the filing of a consolidated tax return.
25	(np) Upon request of a taxpayer and subject to annual appropriation, the state shall
26	redeem such credit, in whole or in part, for ninety percent (90%) of the value of the tax credit.
27	The division of taxation, in consultation with the commerce corporation, shall establish by
28	regulation a redemption process for tax credits.
29	(oq) Projects eligible to receive a tax credit under this chapter may, at the discretion of
30	the commerce corporation, be exempt from sales and use taxes imposed on the purchase of the
31	following classes of personal property only to the extent utilized directly and exclusively in such
32	project: (1) Furniture, fixtures and equipment, except automobiles, trucks, or other motor
33	vehicles; or (2) Such other materials, including construction materials and supplies, that are
34	depreciable and have a useful life of one year or more and are essential to the project.
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1	(pr) The commerce corporation shall promulgate rules and regulations for the
2	administration and certification of additional tax credit under subsection (e), including criteria for
3	the eligibility, evaluation, prioritization, and approval of projects that qualify for such additional
4	tax credit.
5	(qs) The commerce corporation shall not have any obligation to make any award or grant
6	any benefits under this chapter.
7	SECTION 5. Section 42-64.20-7 of the General Laws in Chapter 42-64.20 entitled
8	"Rebuild Rhode Island Tax Credit Act" is hereby amended to read as follows:
9	42-64.20-7. Rebuild Rhode Island tax credit fund.
10	(a) There is hereby established at the commerce corporation a restricted account known
11	as the rebuild Rhode Island tax-credit fund (the "Fundfund") in which all amounts appropriated
12	for the program created under this chapter shall be deposited. The fund shall be used (i) to pay for
13	the redemption of tax credits or reimbursement to the state for tax credits applied against a
14	taxpayer's liability. The commerce corporation may pledge and reserve amounts deposited into
15	the fund for the purpose of securing payment for the redemption of tax credits or for making
16	reimbursements to municipalities pursuant to chapter 64.22 of title 42 of the general laws. The
17	fund shall be exempt from attachment, levy, or any other process at law or in equity. The director
18	of the department of revenue shall make a requisition to the commerce corporation for funding
19	during any fiscal year as may be necessary to pay for the redemption of tax credits presented for
20	redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The
21	commerce corporation shall pay from the fund such amounts as requested by the director of the
22	department of revenue necessary for redemption or reimbursement in relation to tax credits
23	granted under this chapter; provided, however, that the commerce corporation shall not be
24	required to pay from the fund such sums pledged and reserved by the commerce corporation, as
25	permitted in this section, except for redemption of tax credits.
26	(b) Notwithstanding anything in this chapter to the contrary, the commerce corporation
27	may make a loan or equity investment as an alternative incentive in lieu of the provision of tax
28	credits so long as the applicant otherwise qualifies for tax credits under this chapter. In addition to
29	the qualification requirements of this chapter, any loan or equity investment shall be subject to the
30	provisions of §§ 42-64.20-5(b), (d), (e), (f), (g), (n), (o), (ph), (j), (q), (r), and (s), and (q), 42-
31	64.20-7, 42-64.20-8, 42-64.20-9, and 42-64.20-10 as if such loan or equity investment were a tax
32	credit. The commerce corporation may pay, reserve, and/or pledge monies for a loan or equity
33	investment from the fund.
34	(c) The commerce corporation may provide appropriate technical assistance to an
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1	applicant for tax credits for projects under this chapter, including projects involving historic
2	structures and recognized historical structures to enable the applicant to provide all information
3	and data necessary for the consideration of its application by the commerce corporation. The cost
4	of technical assistance provided to applicants can be paid from the fund in an amount not to
5	exceed $250,000 per year.
6	SECTION 6. Section 42-64.20-10 of the General Laws in Chapter 42-64.20 entitled
7	“Rebuild Rhode Island Tax Credit Act” is hereby amended to read as follows:
8	42-64.20-10. Sunset
9	No credits shall be authorized to be reserved pursuant to this chapter after June 30,
10	2020.December 31, 2023.
11	SECTION 7. Section 42-64.21-5 of the General Laws in Chapter 42-64.21 entitled
12	"Rhode Island Tax Increment Financing" is hereby amended to read as follows:
13	42-64.21-5. Financing.
14	(a) Up to the limits established in subsection (b) of this section and in accordance with a
15	TIF agreement, the division of taxation shall pay to the developer incremental state revenues
16	directly realized from projects or businesses operating in the qualifying TIF area from the taxes
17	assessed and collected under chapters 11, 13, 14, 17, 18, 19, and 30 of Title 44 of the general
18	laws or realized from such venue ticket sales or parking taxes as may be established and levied
19	under state law.
20	(b) Up to 75 percent of the projected annual incremental revenues may be allocated under
21	a TIF agreement. The incremental revenue for the revenues listed in subsection (a) of this section
22	shall be calculated as the difference between the amount collected in any fiscal year from any
23	eligible revenue source included in the TIF agreement, less the revenue increment base for that
24	eligible revenue.
25	(c) The division of taxation is hereby authorized and empowered to segregate the annual
26	incremental revenues allocated under a TIF agreement and transfer such amounts to the general
27	treasurer for deposit in a restricted account known as the TIF fund. The TIF fund shall be used
28	solely to pay for the incentives granted under this chapter. The director of the department of
29	revenue shall annually determine if a surplus exists in the TIF fund over amounts necessary to
30	fund incentives under this chapter in a fiscal year and may authorize the general treasurer to
31	transfer any surplus to the general fund. The unexpended balance of such sum of money received
32	and appropriated for the TIF fund remaining in the treasury at the close of each fiscal year, shall
33	be continued to and is hereby annually appropriated for the same account for the ensuing year.
34	(d) Under conditions defined by the commerce corporation and in consultation with the
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1	department of revenue, those all taxes eligible for inclusion in this TIF programidentified in § 42-
2	64.21-5(a) that would otherwise comprise 75% of the incremental revenue available for allocation
3	under § 42-64.21-5(b), may instead be exempted by the commerce corporation up to the levels
4	permitted by this act in cases of significant taxpayers or for transactions occurring within a
5	qualifying TIF area. Any incremental tax revenue exempted by the commerce corporation
6	pursuant to this act shall not be assessed and/or collected as a tax from any person or entity. Such
7	significant taxpayers, and any other person or entity entering into a contract with the commerce
8	corporation consummating a transaction giving rise to the exemptions provided pursuant to this
9	subsection, may shall instead be required to contribute payments in lieu of taxes (PILOTs) into a
10	dedicated fund established by the commerce corporation. Such payments shall be up to 75 percent
11	of equal to the amount that would otherwise be due to the state in the form of taxation in the
12	absence of such exemption as per the provisions of this statute. Such dedicated funds must be
13	used for the purposes described in this act. The balance of said state revenue not subject to an
14	exemption under this act shall be deposited in the general fund in the ordinary course by the
15	division of taxation. The commerce corporation and any other person or entity entering into
16	transactions pursuant to this act shall provide to the division of taxation in a format it may
17	reasonably require, such information that will allow it to confirm compliance with this act, the
18	terms of the documents related to the transactions giving rise to the exemptions, and all applicable
19	state law. The commerce corporation may issue revenue bonds secured by this dedicated fund.
20	Such bonds shall not be a general obligation of the state. (e) The commerce corporation shall
21	promulgate an application form and procedure for the program.
22	SECTION 8. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled
23	“Rhode Island Tax Increment Financing” is hereby amended as follows:
24	42-64.21-9. Sunset.
25	No credits shall be authorized to be reserved pursuant to this chapter after December 31,
26	2023June 30, 2020.
27	SECTION 9. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled “Tax
28	Stabilization Incentive” is hereby amended as follows:
29	42-64.22-15. Sunset.
30	The commerce corporation shall enter into no agreement under this chapter after
31	December 31, 2023June 30, 2020.
32	SECTION 10. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled
33	“First Wave Closing Fund Act” is hereby amended as follows:
34	42-64.23-8. Sunset.
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1	No financing shall be authorized to be reserved pursuant to this chapter after December
2	31, 2023June 30, 2020.
3	SECTION 11. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled “I-
4	195 Redevelopment Project Fund Act” is hereby amended as follows:
5	42-64.24-8. Sunset.
6	No funding, credits, or incentives shall be authorized or authorized to be reserved
7	pursuant to this chapter after December 31, 2023June 30, 2020.
8	SECTION 12. Section 42-64.25-14 of the General Laws in Chapter 42-64.25 entitled
9	“Small Business Assistance Program Act” is hereby repealed:
10	42-64.25-14. Sunset.
11	No grants, funding, or incentives shall be authorized pursuant to this chapter after June
12	30, 2020.
13	SECTION 13. Section 42-64.26-3 of the General Laws in Chapter 42-64.26 entitled
14	“Stay Invested in RI Wavemaker Fellowship” is hereby amended to read as follows:
15	42-64.26-3. Definitions.
16	As used in this chapter:
17	(1) “Eligible graduate” means an individual who meets the eligibility requirements under
18	this chapter.
19	(2) “Applicant” means an eligible graduate who applies for a tax credit for education loan
20	repayment expenses under this chapter.
21	(3) “Award” means a tax credit awarded by the commerce corporation to an applicant as
22	provided under this chapter.
23	(4) “Business” means any applicant that is a corporation, state bank, federal savings bank,
24	trust company, national banking association, bank holding company, loan and investment
25	company, mutual savings bank, credit union, building and loan association, insurance company,
26	investment company, broker-dealer company or surety company, limited liability company,
27	partnership, sole proprietorship, or federal agency or subsidiaries thereof.
28	(54) “Taxpayer” means an applicant who receives a tax credit under this chapter.
29	(65) “Commerce corporation” means the Rhode Island commerce corporation established
30	pursuant to chapter 64 of title 42.
31	(76) “Eligible expenses” or “education loan repayment expenses” means annual higher
32	education loan repayment expenses, including, without limitation, principal, interest and fees, as
33	may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to
34	repay for attendance at a post-secondary institution of higher learning.
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1	(87) “Eligibility period” means a term of up to four (4) consecutive service periods
2	beginning with the date that an eligible graduate receives initial notice of award under this
3	chapter and expiring at the conclusion of the fourth service period after such date specified.
4	(98) “Eligibility requirements” means the following qualifications or criteria required for
5	an applicant to claim an award under this chapter:
6	(i) That the applicant shall have graduated from an accredited two (2) year, four (4) year
7	or graduate post-secondary institution of higher learning with an associate's, bachelor's, graduate,
8	or post-graduate degree and at which the applicant incurred education loan repayment expenses;
9	(ii) That the applicant shall be a full-time employee with a Rhode Island-based employer
10	located in this state throughout the eligibility period, whose employment is for work in one or
11	more of the following covered fields: life, natural or environmental sciences; computer,
12	information or software technology; advanced mathematics or finance; engineering; industrial
13	design or other commercially related design field; or medicine or medical device technology.
14	(109) “Full-time employee” means a person who is employed in Rhode Island by a
15	business for consideration for a minimum of at least thirty-five (35) hours per week, or who
16	renders any other standard of service generally accepted by custom or practice as full-time
17	employment, or who is employed by a professional employer organization pursuant to an
18	employee leasing agreement between the business and the professional employer organization for
19	a minimum of thirty-five (35) hours per week, or who renders any other standard of service
20	generally accepted by custom or practice as full-time employment and whose earnings are subject
21	to Rhode Island income tax, and whose wages are subject to withholding.
22	(110) “Service period” means a twelve (12) month period beginning on the date that an
23	eligible graduate receives initial notice of award under this chapter.
24	(121) “Student loan” means a loan to an individual by a public authority or private lender
25	to assist the individual to pay for tuition, books, and living expenses in order to attend a post-
26	secondary institution of higher learning.
27	(132) “Rhode Island-based employer” means (i) an employer having a principal place of
28	business or at least fifty-one percent (51%) of its employees located in this state; or (ii) an
29	employer registered to conduct business in this state that reported Rhode Island tax liability in the
30	previous tax year.
31	(143) “Fund” refers to the “Stay Invested in RI Wavemaker Fellowship Fund” established
32	pursuant to § 42-64.26-4.
33	SECTION 14. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled
34	“Stay Invested in RI Wavemaker Fellowship” is hereby amended to read as follows:
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1	42-64.26-12. Sunset.
2	No incentives or credits shall be authorized pursuant to this chapter after December 31,
3	2023June 30, 2020.
4	SECTION 15. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled
5	“Main Street Rhode Island Streetscape Improvement Fund” is hereby amended as follows:
6	42-64.27-6. Sunset.
7	No incentives shall be authorized pursuant to this chapter after December 31, 2023June
8	30, 2020.
9	SECTION 16. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled
10	“Innovation Initiative” is hereby amended as follows:
11	42-64.28-10. Sunset.
12	No vouchers, grants, or incentives shall be authorized pursuant to this chapter after
13	December 31, 2023June 30, 2020.
14	SECTION 17. Section 42-64.29-8 of the General Laws in Chapter 42-64.29 entitled
15	“Industry Cluster Grants” is hereby amended as follows:
16	42-64.29-8. Sunset.
17	No grants or incentives shall be authorized to be reserved pursuant to this chapter after
18	December 31, 2023June 30, 2020.
19	SECTION 18. Section 42-64.31-4 of the General Laws in Chapter 42-64.31 entitled
20	“High School, College, and Employer Partnerships” is hereby amended as follows:
21	42-64.31-4. Sunset.
22	No grants shall be authorized pursuant to this chapter after December 31, 2023June 30,
23	2020.
24	SECTION 19. Section 42-64.32-6 of the General Laws in Chapter 42-64.32 entitled “Air
25	Service Development Fund” is hereby amended as follows:
26	42-64.32-6. Sunset.
27	No grants, credits, or incentives shall be authorized or authorized to be reserved pursuant
28	to this chapter after December 31, 2023June 30, 2020.
29	SECTION 20. It is hereby enacted as follows:
30	42-64.33-1. Legislative findings.
31	(a) It is found and declared that:
32	(1) Rhode Island is home to a growing economy and municipalities are partners in the
33	state’s economic growth;
34	(2) The state seeks to work in even closer partnership with cities and towns to support
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1	economic development throughout the state;
2	(3) The state seeks to serve as resource and partner for best practices and technical
3	assistance to enable the continued growth of cities and towns;
4	(4) Cities and towns have achieved great progress over the past four years through
5	initiatives such as LEAN programs, e-permitting, and other process improvement programs and
6	these successes should be built upon and expanded;
7	(5) Expanding statewide efforts in land-assembly and site-preparation is a core
8	recommendation of the 2015 Brookings report “Rhode Island Innovates”;
9	(6) Rhode Island lacks readily developable land and this lack of shovel ready sites can
10	prevent manufacturers and other firms from locating in Rhode Island.
11	(7) Rhode Island can create a national model that integrates economic development
12	processes across the state in a mutually accountable partnership with cities and towns and Rhode
13	Island can develop an attractive portfolio of pre-permitted sites.
14	(8) This approach is premised upon cities and towns opting in – participating in ways that
15	are of the greatest value to the local community involved.
16	42-64.33-2. Short title.
17	This chapter shall be known as "The State and Local Partnership Council Act."
18	42-64.33-3. Creation.
19	(a) There is authorized, created, and established a public corporation of the state having a
20	distinct legal existence from the state and not constituting a department of state government,
21	which is a governmental agency and public instrumentality of the state, to be known as the "state
22	and local partnership council" with those powers and purposes that are set forth in this chapter,
23	with the objectives of providing and promoting and encouraging the preservation, expansion and
24	sound development of new and existing industry, business, commerce, and related tourism and
25	recreational facilities, attracting and retaining "high value added" employment opportunities, and
26	promoting thereby the economic development of the state and the general welfare of its citizens.
27	(b) The exercise by the council of the powers conferred by this chapter shall be deemed
28	and held to be the performance of an essential governmental function of the state for public
29	purposes. It is the intent of the general assembly by the passage of this chapter to vest in the
30	council all powers, authority, rights, privileges, and titles which may be necessary to enable it to
31	accomplish the purposes herein set forth, and this chapter and the powers granted hereby shall be
32	liberally construed in conformity with those purposes.
33	(c) The council and its corporate existence shall continue until terminated by law or until
34	the council shall cease entirely and continuously to conduct or be involved in any business
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1	whatsoever in furtherance of its purposes; provided, that no termination shall take effect, so long
2	as the council shall have bonds, notes, or other obligations outstanding, unless adequate provision
3	shall have been made for the payment thereof pursuant to the documents securing the obligations
4	or to the terminating law. Upon termination of the existence of the council, all of its rights and
5	properties shall pass to and be vested in the commerce corporation, established pursuant to
6	chapter 64 of this title, or its successor or, if the commerce corporation is terminated and there is
7	no successor, in the state. At no time shall the assets or other property of the council inure to the
8	benefit of any person or other corporation or entity.
9	42-64.33-4. Purposes.
10	The council is authorized and established to carry out the program for the following
11	purposes:
12	(a) To foster and maintain strong collaborations with municipalities in the state.
13	(b) To provide all manner of support and assistance to municipalities in order to foster
14	economic development in Rhode Island .
15	(c) To promote site readiness in the state, including developing an inventory of vetted,
16	pad-ready sites in the state capable of supporting economic development and establishing a
17	professional capacity to develop, manage, and market lands to foster economic development in
18	Rhode Island.
19	(d) To establish, implement, and maintain high standards for design, improvement,
20	operation, and use of property in order to provide sites and related amenities for high quality
21	businesses that create high value-added jobs in Rhode Island.
22	(e) To plan, construct, reconstruct, rehabilitate, alter, improve, develop, maintain, operate
23	and/or acquire or convey any parcels, tracts, areas or projects within participating municipalities.
24	42-64.33-5. Definitions.
25	(a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-64-
26	3 unless this chapter provides a different meaning or unless the context indicates a different
27	meaning or intent.
28	(b) Within this chapter, the following words and terms shall have the following meanings
29	unless the context indicates a different meaning or intent:
30	(1) "Board" means the board of directors of the state and local partnership council.
31	(2) "Chairperson" means the chair of the board of the state and local partnership council.
32	(3) “Council” means the state and local partnership council.
33	(4) “Program” means the state and local partnership program to be carried out by the state
34	and local partnership council consistent with the provisions of this chapter.
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1	42-64.33-6. Assistance to municipalities.
2	(a) Upon appropriate authorization by a municipality regarding participation in the
3	program, the council is authorized and empowered, in its discretion, to provide all manner of
4	support and assistance to municipalities in connection with fostering economic development
5	including, but not limited to, aiding in (i) the preparation, adoption or implementation of laws,
6	regulations, or processes related to development; and (ii) the planning and development of any
7	parcels, tracts, areas or projects within the municipality. Notwithstanding state and municipal law
8	or regulation to the contrary, such authorization, if needed, shall require a single vote of the
9	governing body of the municipality and the approval of the chief elected official, if any.
10	(b) In carrying out the program, the council is authorized and empowered to enter into
11	contractual agreements with municipalities, which contracts may include, among other things, for
12	the council to provide all manner of support and assistance to municipalities in connection with
13	fostering economic development including, but not limited to, aiding in the (i) preparation,
14	adoption or implementation of laws, regulations, or processes related to development; and (ii) the
15	planning and development of any parcels, tracts, areas or projects within the municipality; and
16	municipalities are authorized and empowered, notwithstanding any other law to the contrary, to
17	enter into any contractual agreements with the council and to do all things necessary to carry out
18	their obligations under the agreements.
19	(c)(1) Notwithstanding anything to the contrary in chapter 64.22 of title 42 of the general
20	laws or any regulations adopted in connection with the program created under chapter 64.22 of
21	title 42, if a qualifying community or hope community participating in the program grants a
22	qualifying tax stabilization agreement in connection with a qualifying development project, upon
23	recommendation by the council to the commerce corporation of eligibility of an enhanced award
24	and subject to availability of appropriated funds, the commerce corporation may provide a partial
25	reimbursement of no more than fifty percent (50%) of the qualifying community and/or hope
26	community's forgone tax revenue. The qualification for reimbursement shall cease upon any
27	termination or cessation of the underlying tax stabilization agreement or upon exhaustion of funds
28	appropriated pursuant to this section.
29	(2) Terms used in this subsection that are defined in chapter 64.22 of title 42, shall have
30	the meaning as assigned in chapter 64.22 of title 42.
31	(3) The council shall provide no more than five (5) certifications in any calendar year
32	under this subsection.
33	(d) Any department, agency, council, board or other instrumentality of the state shall
34	cooperate with the council in relation to the implementation, execution and administration of the
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1	program created under this chapter.
2	42-64.33-7. General powers.
3	(a)(1) Except to the extent inconsistent with any specific provision of this chapter, the
4	council shall have and may exercise all general powers set forth in this chapter and the following
5	additional general powers:
6	(2) As set forth in § 42-64.10-5, § 42-64.10-6 and necessary or convenient to effect its
7	purposes; provided, that the council shall exercise the powers enumerated in § 42-64.10-6(c) in its
8	own name and stead with respect to the program and shall not have the powers set forth in §§ 42-
9	64.10-6(d), 42-64.10-6(h) and 42-64.10-6(i)(3); and
10	(3) To grant, loan or provide other financial assistance in relation to the implementation,
11	execution or administration of the program.
12	42-64.33-8. Regulations.
13	The council may adopt implementation guidelines, directives, criteria, rules and
14	regulations pursuant to § 42-35-1, et seq. as are necessary for the implementation and
15	administration of the program, including provisions for the imposition of fees or other charges in
16	relation to the administration of the program.
17	42-64.33-9. Site readiness.
18	(a) To promote site readiness within the state, the council is authorized and empowered
19	to:
20	(1) Develop a comprehensive, expedited permitting process in relation to parcels, tracts
21	or areas as authorized by a municipality participating in the program or provide support and
22	assistance consistent with applicable municipal law;
23	(2) Develop a pre-permitting process to allow for pre-permitted parcels, tracts or areas as
24	authorized by a municipality participating in the program or provide support and assistance
25	consistent with applicable municipal law;
26	(3) Issue any and all permits, licenses or other authorizations appropriate to carry-out the
27	program; and
28	(4) Plan, construct, reconstruct, rehabilitate, alter, improve, develop, operate, maintain,
29	any parcels, tracts, or projects owned by the council or other state instrumentality. To the extent
30	provided by the authorization for participation of a municipality in the program, such parcels,
31	tracts and projects shall be exempt from the zoning or other land use ordinances, codes, including
32	building and fire codes, plans, or regulations of any municipality or political subdivision. Parcels,
33	tracts, areas or projects which are planned, constructed, reconstructed, rehabilitated, altered,
34	improved, or developed by the council in accordance with the exemption provisions of this
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1	subsection may be maintained and operated by lessees from and successors in interest to the
2	council in the same manner as if such parcel, tract, area or project had been in existence prior to
3	the enactment of the zoning or other land use ordinances, codes, plans, or regulations which, but
4	for this chapter, would otherwise be applicable.
5	(6) Notwithstanding any provision in this chapter to the contrary, in those instances in
6	which the department of environmental management exercises a permitting or licensing function
7	under the delegated authority of federal law, including, but not limited to, the Federal Clean
8	Water Act (33 U.S.C. § 1251 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §
9	6901 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), Coastal Zone Management Act of
10	1972 (16 U.S.C. § 1451 et seq.), and those state laws and regulations which implement those
11	federal laws, the department of environmental management shall be the licensing and permitting
12	authority. Further, notwithstanding any provision in this chapter to the contrary, in those
13	instances in which the coastal resources management council exercises a permitting, licensing or
14	other regulatory function under the delegated authority of federal law, including, but not limited
15	to, the Coastal Zone Management Act (16 U.S.C. § 1451 et seq.), and those state laws and
16	regulations which implement those federal laws, the coastal resources management council shall
17	be the licensing, permitting and regulatory authority. Moreover, the authority of the department
18	of environmental management and the coastal resources management council authorities under
19	state law, including but not limited to issuing licenses and permits delegated to the department of
20	environmental management pursuant to chapter 1 of title 2 and to the coastal resources
21	management council pursuant to chapter 23 of title 46, shall remain with those agencies.
22	(c) The council shall, in planning, constructing, reconstructing, rehabilitating, altering, or
23	improving any parcel, tract, area or project, comply with all requirements of federal laws, codes,
24	or regulations applicable to that planning, construction, reconstruction, rehabilitation, alteration,
25	or improvement. Except as otherwise specifically provided to the contrary in the authorization
26	allowing participation by a municipality in the program or a contract entered into between the
27	council and such municipality pursuant to § 42-64.33-5(b) of this section, no municipality or
28	other political subdivision of the state shall have the power to modify or change in whole or in
29	part the drawings, plans, or specifications for any parcel, tract, area or project adopted by the
30	council; nor to require that any person, firm, or council employed with respect to that parcel,
31	tract, area or project perform work in any other or different manner than that provided by those
32	drawings, plans, and specifications; nor to require that any such person, firm, or council obtain
33	any approval, permit, or certificate from the municipality or political subdivision in relation to the
34	parcel, tract, area or project; and the doing of that work by any person, firm, or council in
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1	accordance with the terms of those drawings, plans, specifications, or contracts shall not subject
2	the person, firm, or council to any civil liability or penalty, other than as may be stated in the
3	contracts or may be incidental to the proper enforcement thereof; nor shall any municipality or
4	political subdivision have the power to require the council, or any lessee or successor in interest,
5	to obtain any approval, permit, or certificate from the municipality or political subdivision as a
6	condition of owning, using, maintaining, operating, or occupying any parcel, tract, area or project
7	acquired, constructed, reconstructed, rehabilitated, altered, or improved by the council or pursuant
8	to drawings, plans, and specifications made or approved by the council; provided, however, that
9	nothing contained in this subsection shall be deemed to relieve any person, firm, or council from
10	the necessity of obtaining from any municipality or other political subdivision of the state any
11	license which, but for the provisions of this chapter, would be required in connection with the
12	rendering of personal services or sale at retail of tangible personal property.
13	(f) Except to the extent that the council shall expressly otherwise agree, a municipality or
14	political subdivision, including, but not limited to, a county, city, town, or district, in which a
15	project of the council is located, shall provide for the project, whether then owned by the council
16	or any successor in interest, police, fire, sanitation, health protection, and other municipal services
17	of the same character and to the same extent as those provided for other residents of that
18	municipality or political subdivision, but nothing contained in this section shall be deemed to
19	require any municipality or political subdivision to make capital expenditures for the sole purpose
20	of providing any of these services for that project.
21	42-64.33-10. Directors, officers and employees.
22	(a)(1) Directors. The powers of the council shall be vested in a board of directors
23	consisting of nine (9) members. The membership of the board shall consist of the chief executive
24	officer of the Rhode Island commerce corporation as chairperson, (who shall vote only in the
25	event of a tie), and eight (8) members appointed by the governor. The initial members of the
26	board appointed by the governor shall be divided into three (3) classes and shall serve initial
27	terms on the board of directors as follows: three (3) of the directors shall be appointed for an
28	initial term of one year; three (3) of the directors, shall be appointed for an initial term of two (2)
29	years; and two (2) of the directors shall be appointed for an initial term of three (3) years. Upon
30	expiration of each initial term and upon the expiration of each term thereafter, a successor shall
31	be appointed by the governor, to serve for a term of three (3) years so that members of the board
32	of directors shall serve for staggered terms of three (3) years each. Two (2) members of the board
33	shall be representatives of the municipalities of Rhode Island. A vacancy on the board, other than
34	by expiration, shall be filled in the same manner as an original appointment, but only for the
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1	unexpired portion of the term. A member shall be eligible to succeed himself or herself.
2	Appointed directors shall not serve more than two (2) successive three (3) year terms but may be
3	reappointed after not being a director for a period of at least twelve (12) months. Each appointed
4	director shall hold office for the term for which the director is appointed and until the director's
5	successor shall have been appointed and qualified, or until the director's earlier death, resignation
6	or removal.
7	(2) The directors shall receive no compensation for the performance of their duties under
8	this chapter, but each director shall be reimbursed for his or her reasonable expenses incurred in
9	carrying out those duties. A director may engage in private employment, or in a profession or
10	business.
11	(3) Regular meetings of the directors shall be held at least once in each calendar quarter,
12	at the call of the chairperson or secretary, or in accordance with an annual schedule of meetings
13	adopted by the board. Special meetings may be called for any purposes by the chairperson or the
14	secretary and as provided for in the bylaws of the council.
15	(4) A majority of the directors then in office, but not less than three (3) directors, shall
16	constitute a quorum, and any action to be taken by the council under the provisions of this
17	chapter, may be authorized by resolution approved by a majority of the directors present and
18	entitled to a vote at any regular or special meeting at which a quorum is present. A vacancy in the
19	membership of the board of directors shall not impair the right of a quorum to exercise all of the
20	rights and perform all of the duties of the council. Any action taken by the council under the
21	provisions of this chapter may be authorized by a vote at any regular or special meeting, and each
22	vote shall take effect immediately, unless otherwise provided in the vote or approving resolution
23	of the board.
24	(b) Officers. The officers of the council shall include a chairperson, a secretary, and such
25	other officers as the board may from time to time establish.
26	(1) Chairperson. The governor shall appoint the chairperson of the board who shall, with
27	the concurrence of the board, appoint committee members, and preside at meetings of the board.
28	(2) Presiding Officer. The chairperson shall, from time to time, designate a presiding
29	officer from amongst the members of the board who shall preside at a given meeting in the
30	absence of the chairperson.
31	(3) Other officers. The board shall appoint a secretary, the duties of whom shall be
32	prescribed in the bylaws of the council.
33	(4) With the exception of the chairperson, any number of offices may be held by the same
34	person, unless the bylaws provide otherwise.
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1	42-64.33-11. Liability of the Council.
2	The council is, subject to the period of limitations set forth in § 9-1-25, liable in actions
3	of tort only to the extent that those actions do not arise from the performance of any functions
4	found or deemed to be essential or discretionary governmental functions. Any recovery in an
5	action or any recovery by any person in one or more of any actions against the council, its
6	directors, employees, or agents, shall not exceed one hundred thousand dollars ($100,000) per
7	plaintiff in the absence of fraud or willful misconduct. In the absence of fraud or willful
8	misconduct, the directors are not personally liable to any party on account of any action (whether
9	tort or otherwise) arising from or related to the manner or terms of the disposition of the council's
10	assets, nor shall the manner or terms of the disposition constitute a defense to any obligation
11	owed to the council.
12	42-64.33-12. Compliance.
13	The council shall comply with the following laws:
14	(a) Code of ethics, chapter 14 of title 36;
15	(b) Opening meetings, chapter 46 of this title;
16	(c) Access to public records, chapter 2 of title 38;
17	(d) Administrative procedures, chapter 35 of this title; and
18	(e) Governance and financial management of quasi-public corporations, as provided in
19	chapter 18 of title 35 with regard to obligations, financing leases, and guarantees and chapter 2 of
20	title 37 with regard to purchasing principles, policies, and practices, and by §§ 35-3-17.1, 35-6-
21	37, 35-7-13, 35-7-14, 35-20-6, 35-20-9, 42-11.3-2 and 42-11.3-4(A).
22	42-64.33-13. Consistency with other statutes.
23	(a) The Rhode Island Commerce Corporation Act. Except as otherwise expressly
24	provided by this chapter, the council shall have the powers necessary to accomplish the purposes
25	set forth in chapter 64 of this title. The council shall be, in the manner set forth in this chapter, a
26	subsidiary of the commerce corporation notwithstanding the requirements of § 42-64-7.1, and this
27	chapter shall be deemed fully satisfactory for purposes of § 42-64-7.1 as necessary to effectuate
28	the provisions of this chapter.
29	(b) Other state laws. Nothing contained in this chapter shall restrict or limit the powers of
30	the council arising under any laws of this state except where those powers are expressly contrary
31	to the provisions of this chapter; provided, however, that the council shall not have any power to
32	create, empower, or otherwise establish any corporation, subsidiary corporation, corporate body,
33	any form of partnership, or any other separate entity, without the express approval and
34	authorization of the general assembly. Except as otherwise provided, this chapter shall be
	LC000763 - Page 315 of 541
1	construed to provide a complete additional and alternative method for doing the things authorized
2	hereby and shall be regarded as supplemental and in addition to the powers conferred by other
3	laws.
4	42-64.33-14. Inconsistent provisions.
5	Insofar as the provisions of this chapter are inconsistent with the provisions of any other
6	law or ordinance, general, special or local, the provisions of this chapter shall be controlling.
7	42-64.33-15. Construction – Liberal construction.
8	This chapter, being necessary for the welfare of the state and its inhabitants, shall be
9	liberally construed so as to effectuate its purposes.
10	42-64.33-16. Severability.
11	If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by
12	any court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or
13	invalidate the remainder of the chapter but shall be confined in its operation to the clause,
14	sentence, paragraph, section, or part directly involved in the controversy in which that judgment
15	shall have been rendered.
16	42-64.33-17. Reporting requirements.
17	The council shall publish a report summarizing municipality participation in the program
18	within sixty (60) days after the end of each fiscal year. The report shall contain information on the
19	commitment, disbursement, and use of funds expended by the council in relation to assistance to
20	municipalities.
21	SECTION 21. Section 44-11-11 of the General Laws in Chapter 44-11 entitled "Business
22	Corporation Tax" is hereby amended to read as follows:
23	44-11-11. "Net income" defined.
24	(a)(1) “Net income” means, for any taxable year and for any corporate taxpayer, the
25	taxable income of the taxpayer for that taxable year under the laws of the United States, plus:
26	(i) Any interest not included in the taxable income;
27	(ii) Any specific exemptions;
28	(iii) The tax imposed by this chapter; and minus
29	(iv) Interest on obligations of the United States or its possessions, and other interest
30	exempt from taxation by this state; and
31	(v) The federal net operating loss deduction.
32	(2) All binding federal elections made by or on behalf of the taxpayer applicable either
33	directly or indirectly to the determination of taxable income shall be binding on the taxpayer
34	except where this chapter or its attendant regulations specifically modify or provide otherwise.
	LC000763 - Page 316 of 541
1	Rhode Island taxable income shall not include the "gross-up of dividends" required by the federal
2	Internal Revenue Code to be taken into taxable income in connection with the taxpayer's election
3	of the foreign tax credit.
4	(b) A net operating loss deduction shall be allowed which shall be the same as the net
5	operating loss deduction allowed under 26 U.S.C. § 172, except that:
6	(1) Any net operating loss included in determining the deduction shall be adjusted to
7	reflect the inclusions and exclusions from entire net income required by subsection (a) of this
8	section and § 44-11-11.1;
9	(2) The deduction shall not include any net operating loss sustained during any taxable
10	year in which the taxpayer was not subject to the tax imposed by this chapter; and
11	(3) The deduction shall not exceed the deduction for the taxable year allowable under 26
12	U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other
13	taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for
14	the five (5) succeeding taxable years.
15	(c) “Domestic international sales corporations” (referred to as DISCs), for the purposes of
16	this chapter, will be treated as they are under federal income tax law and shall not pay the amount
17	of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in
18	the same manner as it is treated under federal income tax law as it exists on December 31, 1984.
19	(d) A corporation which qualifies as a “foreign sales corporation” (FSC) under the
20	provisions of subchapter N, 26 U.S.C. § 861 et seq., and which has in effect for the entire taxable
21	year a valid election under federal law to be treated as a FSC, shall not pay the amount of the tax
22	computed under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same
23	manner as it is treated under federal income tax law as it exists on January 1, 1985.
24	(e) For purposes of a corporation’s state tax liability, any deduction to income allowable
25	under 26 U.S.C. 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer
26	for at least seven years. The division of taxation shall promulgate, in its discretion, rules and
27	regulations relative to the accelerated application of deductions under 12 U.S.C. 1400Z-2(c).
28	SECTION 22. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal
29	Income Tax" is hereby amended to read as follows:
30	44-30-2.6. Rhode Island taxable income -- Rate of tax.
31	(a) "Rhode Island taxable income" means federal taxable income as determined under the
32	Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-
33	deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax
34	Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act
	LC000763 - Page 317 of 541
1	of 2001 (EGTRRA), and as modified by the modifications in § 44-30-12.
2	(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on
3	or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island
4	taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-
5	five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year
6	2002 and thereafter of the federal income tax rates, including capital gains rates and any other
7	special rates for other types of income, except as provided in § 44-30-2.7, which were in effect
8	immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of
9	2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax administrator
10	beginning in taxable year 2002 and thereafter in the manner prescribed for adjustment by the
11	commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or
12	after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate provided in § 44-30-
13	2.10 to calculate his or her personal income tax liability.
14	(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative
15	minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode
16	Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by
17	multiplying the federal tentative minimum tax without allowing for the increased exemptions
18	under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal
19	form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%)
20	for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing
21	the product to the Rhode Island tax as computed otherwise under this section. The excess shall be
22	the taxpayer's Rhode Island alternative minimum tax.
23	(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption
24	amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by
25	the tax administrator in the manner prescribed for adjustment by the commissioner of Internal
26	Revenue in 26 U.S.C. § 1(f).
27	(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode
28	Island taxable income shall be determined by deducting from federal adjusted gross income as
29	defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island
30	itemized-deduction amount and the Rhode Island exemption amount as determined in this
31	section.
32	(A) Tax imposed.
33	(1) There is hereby imposed on the taxable income of married individuals filing joint
34	returns and surviving spouses a tax determined in accordance with the following table:
	LC000763 - Page 318 of 541
1	If taxable income is: The tax is:
2	Not over $53,150 3.75% of taxable income
3	Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150
4	Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500
5	Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850
6	Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700
7	(2) There is hereby imposed on the taxable income of every head of household a tax
8	determined in accordance with the following table:
9	If taxable income is: The tax is:
10	Not over $42,650 3.75% of taxable income
11	Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650
12	Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100
13	Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350
14	Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700
15	(3) There is hereby imposed on the taxable income of unmarried individuals (other than
16	surviving spouses and heads of households) a tax determined in accordance with the following
17	table:
18	If taxable income is: The tax is:
19	Not over $31,850 3.75% of taxable income
20	Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850
21	Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100
22	Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850
23	Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700
24	(4) There is hereby imposed on the taxable income of married individuals filing separate
25	returns and bankruptcy estates a tax determined in accordance with the following table:
26	If taxable income is: The tax is:
27	Not over $26,575 3.75% of taxable income
28	Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575
29	Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250
30	Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925
31	Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850
32	(5) There is hereby imposed a taxable income of an estate or trust a tax determined in
33	accordance with the following table:
34	If taxable income is: The tax is:
	LC000763 - Page 319 of 541
1	Not over $2,150 3.75% of taxable income
2	Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150
3	Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000
4	Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650
5	Over $10,450 $737.50 plus 9.90% of the excess over $10,450
6	(6) Adjustments for inflation.
7	The dollars amount contained in paragraph (A) shall be increased by an amount equal to:
8	(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;
9	(b) The cost-of-living adjustment determined under section (J) with a base year of 1993;
10	(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making
11	adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall
12	be determined under section (J) by substituting "1994" for "1993."
13	(B) Maximum capital gains rates.
14	(1) In general.
15	If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax
16	imposed by this section for such taxable year shall not exceed the sum of:
17	(a) 2.5 % of the net capital gain as reported for federal income tax purposes under section
18	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b).
19	(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
20	§ 1(h)(1)(c).
21	(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26
22	U.S.C. § 1(h)(1)(d).
23	(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
24	§ 1(h)(1)(e).
25	(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital
26	gain shall be determined under subdivision 44-30-2.6(c)(2)(A).
27	(C) Itemized deductions.
28	(1) In general.
29	For the purposes of section (2), "itemized deductions" means the amount of federal
30	itemized deductions as modified by the modifications in § 44-30-12.
31	(2) Individuals who do not itemize their deductions.
32	In the case of an individual who does not elect to itemize his deductions for the taxable
33	year, they may elect to take a standard deduction.
34	(3) Basic standard deduction.
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1	The Rhode Island standard deduction shall be allowed in accordance with the following
2	table:
3	Filing status Amount
4	Single $5,350
5	Married filing jointly or qualifying widow(er) $8,900
6	Married filing separately $4,450
7	Head of Household $7,850
8	(4) Additional standard deduction for the aged and blind. An additional standard
9	deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of
10	$1,300 for individuals who are not married and $1,050 for individuals who are married.
11	(5) Limitation on basic standard deduction in the case of certain dependents.
12	In the case of an individual to whom a deduction under section (E) is allowable to another
13	taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater
14	of:
15	(a) $850;
16	(b) The sum of $300 and such individual's earned income;
17	(6) Certain individuals not eligible for standard deduction.
18	In the case of:
19	(a) A married individual filing a separate return where either spouse itemizes deductions;
20	(b) Nonresident alien individual;
21	(c) An estate or trust;
22	The standard deduction shall be zero.
23	(7) Adjustments for inflation.
24	Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an
25	amount equal to:
26	(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988,
27	multiplied by
28	(b) The cost-of-living adjustment determined under section (J) with a base year of 1988.
29	(D) Overall limitation on itemized deductions.
30	(1) General rule.
31	In the case of an individual whose adjusted gross income as modified by § 44-30-12
32	exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the
33	taxable year shall be reduced by the lesser of:
34	(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12
	LC000763 - Page 321 of 541
1	over the applicable amount; or
2	(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable
3	for such taxable year.
4	(2) Applicable amount.
5	(a) In general.
6	For purposes of this section, the term "applicable amount" means $156,400 ($78,200 in
7	the case of a separate return by a married individual)
8	(b) Adjustments for inflation.
9	Each dollar amount contained in paragraph (a) shall be increased by an amount equal to:
10	(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by
11	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
12	(3) Phase-out of Limitation.
13	(a) In general.
14	In the case of taxable year beginning after December 31, 2005, and before January 1,
15	2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which
16	would be the amount of such reduction.
17	(b) Applicable fraction.
18	For purposes of paragraph (a), the applicable fraction shall be determined in accordance
19	with the following table:
20	For taxable years beginning in calendar year The applicable fraction is
21	2006 and 2007 2/3
22	2008 and 2009 1/3
23	(E) Exemption amount.
24	(1) In general.
25	Except as otherwise provided in this subsection, the term "exemption amount" means
26	$3,400.
27	(2) Exemption amount disallowed in case of certain dependents.
28	In the case of an individual with respect to whom a deduction under this section is
29	allowable to another taxpayer for the same taxable year, the exemption amount applicable to such
30	individual for such individual's taxable year shall be zero.
31	(3) Adjustments for inflation.
32	The dollar amount contained in paragraph (1) shall be increased by an amount equal to:
33	(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by
34	(b) The cost-of-living adjustment determined under section (J) with a base year of 1989.
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1	(4) Limitation.
2	(a) In general.
3	In the case of any taxpayer whose adjusted gross income as modified for the taxable year
4	exceeds the threshold amount shall be reduced by the applicable percentage.
5	(b) Applicable percentage.
6	In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the
7	threshold amount, the exemption amount shall be reduced by two (2) percentage points for each
8	$2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year
9	exceeds the threshold amount. In the case of a married individual filing a separate return, the
10	preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the
11	applicable percentage exceed one hundred percent (100%).
12	(c) Threshold Amount.
13	For the purposes of this paragraph, the term "threshold amount" shall be determined with
14	the following table:
15	Filing status Amount
16	Single $156,400
17	Married filing jointly of qualifying widow(er) $234,600
18	Married filing separately $117,300
19	Head of Household $195,500
20	(d) Adjustments for inflation.
21	Each dollar amount contained in paragraph (b) shall be increased by an amount equal to:
22	(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by
23	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
24	(5) Phase-out of limitation.
25	(a) In general.
26	In the case of taxable years beginning after December 31, 2005, and before January 1,
27	2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which
28	would be the amount of such reduction.
29	(b) Applicable fraction.
30	For the purposes of paragraph (a), the applicable fraction shall be determined in
31	accordance with the following table:
32	For taxable years beginning in calendar year The applicable fraction is
33	2006 and 2007 2/3
34	2008 and 2009 1/3
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1	(F) Alternative minimum tax.
2	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
3	subtitle) a tax equal to the excess (if any) of:
4	(a) The tentative minimum tax for the taxable year, over
5	(b) The regular tax for the taxable year.
6	(2) The tentative minimum tax for the taxable year is the sum of:
7	(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus
8	(b) 7.0 percent of so much of the taxable excess above $175,000.
9	(3) The amount determined under the preceding sentence shall be reduced by the
10	alternative minimum tax foreign tax credit for the taxable year.
11	(4) Taxable excess. For the purposes of this subsection the term "taxable excess" means
12	so much of the federal alternative minimum taxable income as modified by the modifications in §
13	44-30-12 as exceeds the exemption amount.
14	(5) In the case of a married individual filing a separate return, subparagraph (2) shall be
15	applied by substituting "$87,500" for $175,000 each place it appears.
16	(6) Exemption amount.
17	For purposes of this section "exemption amount" means:
18	Filing status Amount
19	Single $39,150
20	Married filing jointly or qualifying widow(er) $53,700
21	Married filing separately $26,850
22	Head of Household $39,150
23	Estate or trust $24,650
24	(7) Treatment of unearned income of minor children
25	(a) In general.
26	In the case of a minor child, the exemption amount for purposes of section (6) shall not
27	exceed the sum of:
28	(i) Such child's earned income, plus
29	(ii) $6,000.
30	(8) Adjustments for inflation.
31	The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount
32	equal to:
33	(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied
34	by
	LC000763 - Page 324 of 541
1	(b) The cost-of-living adjustment determined under section (J) with a base year of 2004.
2	(9) Phase-out.
3	(a) In general.
4	The exemption amount of any taxpayer shall be reduced (but not below zero) by an
5	amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable
6	income of the taxpayer exceeds the threshold amount.
7	(b) Threshold amount.
8	For purposes of this paragraph, the term "threshold amount" shall be determined with the
9	following table:
10	Filing status Amount
11	Single $123,250
12	Married filing jointly or qualifying widow(er) $164,350
13	Married filing separately $82,175
14	Head of Household $123,250
15	Estate or Trust $82,150
16	(c) Adjustments for inflation
17	Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:
18	(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by
19	(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.
20	(G) Other Rhode Island taxes.
21	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
22	subtitle) a tax equal to twenty-five percent (25%) of:
23	(a) The Federal income tax on lump-sum distributions.
24	(b) The Federal income tax on parents' election to report child's interest and dividends.
25	(c) The recapture of Federal tax credits that were previously claimed on Rhode Island
26	return.
27	(H) Tax for children under 18 with investment income.
28	(1) General rule. There is hereby imposed a tax equal to twenty-five percent
29	(25%) of:
30	(a) The Federal tax for children under the age of 18 with investment income.
31	(I) Averaging of farm income.
32	(1) General rule. At the election of an individual engaged in a farming business or fishing
33	business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:
34	(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C.
	LC000763 - Page 325 of 541
1	§ 1301].
2	(J) Cost-of-living adjustment.
3	(1) In general.
4	The cost-of-living adjustment for any calendar year is the percentage (if any) by which:
5	(a) The CPI for the preceding calendar year exceeds
6	(b) The CPI for the base year.
7	(2) CPI for any calendar year.
8	For purposes of paragraph (1), the CPI for any calendar year is the average of the
9	consumer price index as of the close of the twelve (12) month period ending on August 31 of
10	such calendar year.
11	(3) Consumer price index.
12	For purposes of paragraph (2), the term "consumer price index" means the last consumer
13	price index for all urban consumers published by the department of labor. For purposes of the
14	preceding sentence, the revision of the consumer price index that is most consistent with the
15	consumer price index for calendar year 1986 shall be used.
16	(4) Rounding.
17	(a) In general.
18	If any increase determined under paragraph (1) is not a multiple of $50, such increase
19	shall be rounded to the next lowest multiple of $50.
20	(b) In the case of a married individual filing a separate return, subparagraph (a) shall be
21	applied by substituting "$25" for $50 each place it appears.
22	(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer
23	entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled
24	to a credit against the Rhode Island tax imposed under this section:
25	(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5].
26	(2) Child and dependent care credit;
27	(3) General business credits;
28	(4) Credit for elderly or the disabled;
29	(5) Credit for prior year minimum tax;
30	(6) Mortgage interest credit;
31	(7) Empowerment zone employment credit;
32	(8) Qualified electric vehicle credit.
33	(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, a
34	taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode
	LC000763 - Page 326 of 541
1	Island tax imposed under this section if the adopted child was under the care, custody, or
2	supervision of the Rhode Island department of children, youth and families prior to the adoption.
3	(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits
4	provided there shall be no deduction based on any federal credits enacted after January 1, 1996,
5	including the rate reduction credit provided by the federal Economic Growth and Tax
6	Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be
7	reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax
8	purposes shall determine the Rhode Island amount to be recaptured in the same manner as
9	prescribed in this subsection.
10	(N) Rhode Island earned-income credit .
11	(1) In general.
12	For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-
13	income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent
14	(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode
15	Island income tax.
16	For tax years beginning on or after January 1, 2015, and before January 1, 2016, a
17	taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-
18	income credit equal to ten percent (10%) of the federal earned-income credit. Such credit shall
19	not exceed the amount of the Rhode Island income tax.
20	For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal
21	earned-income credit shall be allowed a Rhode Island earned-income credit equal to twelve and
22	one-half percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the
23	amount of the Rhode Island income tax.
24	For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal
25	earned-income credit shall be allowed a Rhode Island earned-income credit equal to fifteen
26	percent (15%) of the federal earned-income credit. Such credit shall not exceed the amount of the
27	Rhode Island income tax.
28	(2) Refundable portion.
29	In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of
30	this section exceeds the amount of Rhode Island income tax, a refundable earned-income credit
31	shall be allowed as follows.
32	(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2)
33	refundable earned-income credit means fifteen percent (15%) of the amount by which the Rhode
34	Island earned-income credit exceeds the Rhode Island income tax.
	LC000763 - Page 327 of 541
1	(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2)
2	refundable earned-income credit means one hundred percent (100%) of the amount by which the
3	Rhode Island earned-income credit exceeds the Rhode Island income tax.
4	(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs
5	(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years
6	thereafter for inclusion in the statute.
7	(3) For the period January 1, 2011, through December 31, 2011, and thereafter, "Rhode
8	Island taxable income" means federal adjusted gross income as determined under the Internal
9	Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to §
10	44-30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to
11	subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to
12	subparagraph 44-30-2.6(c)(3)(C).
13	(A) Tax imposed.
14	(I) There is hereby imposed on the taxable income of married individuals filing joint
15	returns, qualifying widow(er), every head of household, unmarried individuals, married
16	individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the
17	following table:
18	RI Taxable Income RI Income Tax
19	Over But not over Pay +% on Excess on the amount over
20	$0 - $ 55,000 $ 0 + 3.75% $0
21	55,000 - 125,000 2,063 + 4.75% 55,000
22	125,000 - 5,388 + 5.99% 125,000
23	(II) There is hereby imposed on the taxable income of an estate or trust a tax determined
24	in accordance with the following table:
25	RI Taxable Income RI Income Tax
26	Over But not over Pay + % on Excess on the amount over
27	$0 - $ 2,230 $ 0 + 3.75% $0
28	2,230 - 7,022 84 + 4.75% 2,230
29	7,022 - 312 + 5.99% 7,022
30	(B) Deductions:
31	(I) Rhode Island Basic Standard Deduction. Only the Rhode Island standard deduction
32	shall be allowed in accordance with the following table:
33	Filing status: Amount
34	Single $7,500
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1	Married filing jointly or qualifying widow(er) $15,000
2	Married filing separately $7,500
3	Head of Household $11,250
4	(II) Nonresident alien individuals, estates and trusts are not eligible for standard
5	deductions.
6	(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode
7	Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five
8	thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable
9	percentage. The term "applicable percentage" means twenty (20) percentage points for each five
10	thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for
11	the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
12	(C) Exemption Amount:
13	(I) The term "exemption amount" means three thousand five hundred dollars ($3,500)
14	multiplied by the number of exemptions allowed for the taxable year for federal income tax
15	purposes. For tax years beginning on or after 2018, the term "exemption amount" means the same
16	as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and
17	Jobs Act (Pub. L. 115-97) on December 22, 2017.
18	(II) Exemption amount disallowed in case of certain dependents. In the case of an
19	individual with respect to whom a deduction under this section is allowable to another taxpayer
20	for the same taxable year, the exemption amount applicable to such individual for such
21	individual's taxable year shall be zero.
22	(III) Identifying information required.
23	(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be
24	allowed under this section with respect to any individual unless the Taxpayer Identification
25	Number of such individual is included on the federal return claiming the exemption for the same
26	tax filing period.
27	(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event
28	that the Taxpayer Identification Number for each individual is not required to be included on the
29	federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer
30	Identification Number must be provided on the Rhode Island tax return for the purpose of
31	claiming said exemption(s).
32	(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode
33	Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five
34	thousand dollars ($175,000), the exemption amount shall be reduced by the applicable
	LC000763 - Page 329 of 541
1	percentage. The term "applicable percentage" means twenty (20) percentage points for each five
2	thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for
3	the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
4	(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-
5	2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount
6	equal to:
7	(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-
8	2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000,
9	multiplied by;
10	(II) The cost-of-living adjustment with a base year of 2000.
11	(III) For the purposes of this section, the cost-of-living adjustment for any calendar year
12	is the percentage
13	(if any) by which the consumer price index for the preceding calendar year exceeds the
14	consumer price index for the base year. The consumer price index for any calendar year is the
15	average of the consumer price index as of the close of the twelve-month (12) period ending on
16	August 31, of such calendar year.
17	(IV) For the purpose of this section the term "consumer price index" means the last
18	consumer price index for all urban consumers published by the department of labor. For the
19	purpose of this section the revision of the consumer price index that is most consistent with the
20	consumer price index for calendar year 1986 shall be used.
21	(V) If any increase determined under this section is not a multiple of fifty dollars
22	($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
23	case of a married individual filing separate return, if any increase determined under this section is
24	not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
25	multiple of twenty-five dollars ($25.00).
26	(F) Credits against tax.
27	(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on
28	or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be
29	as follows:
30	(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit
31	pursuant to subparagraph 44-30-2.6(c)(2)(N).
32	(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided
33	in § 44-33-1 et seq.
34	(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax
	LC000763 - Page 330 of 541
1	credit as provided in § 44-30.3-1 et seq.
2	(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to
3	other states pursuant to § 44-30-74.
4	(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax
5	credit as provided in § 44-33.2-1 et seq.
6	(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture
7	production tax credit as provided in § 44-31.2-1 et seq.
8	(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of
9	the federal child and dependent care credit allowable for the taxable year for federal purposes;
10	provided, however, such credit shall not exceed the Rhode Island tax liability.
11	(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for
12	contributions to scholarship organizations as provided in chapter 62 of title 44.
13	(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be
14	taxable as if no withholding were required, but any amount of Rhode Island personal income tax
15	actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax
16	administrator on behalf of the person from whom withheld, and the person shall be credited with
17	having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable
18	year of less than twelve (12) months, the credit shall be made under regulations of the tax
19	administrator.
20	(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested
21	in RI wavemaker fellowship program as provided in § 42-64.26-1 et seq.
22	(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in
23	§ 42-64.20-1 et seq.
24	(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode
25	Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq.
26	(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter,
27	unused carryforward for such credit previously issued shall be allowed for the historic
28	homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already
29	issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits
30	under the historic homeownership assistance act.
31	(n) Credit for Qualified Research Expenses: Effective for tax year 2019 and thereafter
32	credit for qualified research expenses generated or awarded under § 44-32-3.1 shall be allowed.
33	(2) Except as provided in section 1 above, no other state and federal tax credit shall be
34	available to the taxpayers in computing tax liability under this chapter.
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1	SECTION 23. Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal
2	Income Tax" is hereby amended to read as follows:
3	44-30-12. Rhode Island income of a resident individual.
4	(a) General. The Rhode Island income of a resident individual means his or her adjusted
5	gross income for federal income tax purposes, with the modifications specified in this section.
6	(b) Modifications increasing federal adjusted gross income. There shall be added to
7	federal adjusted gross income:
8	(1) Interest income on obligations of any state, or its political subdivisions, other than
9	Rhode Island or its political subdivisions;
10	(2) Interest or dividend income on obligations or securities of any authority, commission,
11	or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the
12	extent exempted by the laws of the United States from federal income tax but not from state
13	income taxes;
14	(3) The modification described in § 44-30-25(g);
15	(4)(i) The amount defined below of a nonqualified withdrawal made from an account in
16	the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified
17	withdrawal is:
18	(A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal
19	Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-
20	6.1; and
21	(B) A withdrawal or distribution which is:
22	(I) Not applied on a timely basis to pay "qualified higher education expenses" as defined
23	in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;
24	(II) Not made for a reason referred to in § 16-57-6.1(e); or
25	(III) Not made in other circumstances for which an exclusion from tax made applicable
26	by Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,
27	withdrawal or distribution is made within two (2) taxable years following the taxable year for
28	which a contributions modification pursuant to subdivision (c)(4) of this section is taken based on
29	contributions to any tuition savings program account by the person who is the participant of the
30	account at the time of the contribution, whether or not the person is the participant of the account
31	at the time of the transfer, rollover, withdrawal or distribution;
32	(ii) In the event of a nonqualified withdrawal under subparagraphs (i)(A) or (i)(B) of this
33	subdivision, there shall be added to the federal adjusted gross income of that person for the
34	taxable year of the withdrawal an amount equal to the lesser of:
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1	(A) The amount equal to the nonqualified withdrawal reduced by the sum of any
2	administrative fee or penalty imposed under the tuition savings program in connection with the
3	nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the
4	person's federal adjusted gross income for the taxable year; and
5	(B) The amount of the person's contribution modification pursuant to subdivision (c)(4)
6	of this section for the person's taxable year of the withdrawal and the two (2) prior taxable years
7	less the amount of any nonqualified withdrawal for the two (2) prior taxable years included in
8	computing the person's Rhode Island income by application of this subsection for those years.
9	Any amount added to federal adjusted gross income pursuant to this subdivision shall constitute
10	Rhode Island income for residents, nonresidents and part-year residents; and
11	(5) The modification described in § 44-30-25.1(d)(3)(i).
12	(6) The amount equal to any unemployment compensation received but not included in
13	federal adjusted gross income.
14	(7) The amount equal to the deduction allowed for sales tax paid for a purchase of a
15	qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6).
16	(c) Modifications reducing federal adjusted gross income. There shall be subtracted from
17	federal adjusted gross income:
18	(1) Any interest income on obligations of the United States and its possessions to the
19	extent includible in gross income for federal income tax purposes, and any interest or dividend
20	income on obligations, or securities of any authority, commission, or instrumentality of the
21	United States to the extent includible in gross income for federal income tax purposes but exempt
22	from state income taxes under the laws of the United States; provided, that the amount to be
23	subtracted shall in any case be reduced by any interest on indebtedness incurred or continued to
24	purchase or carry obligations or securities the income of which is exempt from Rhode Island
25	personal income tax, to the extent the interest has been deducted in determining federal adjusted
26	gross income or taxable income;
27	(2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);
28	(3) The amount of any withdrawal or distribution from the "tuition savings program"
29	referred to in § 16-57-6.1 which is included in federal adjusted gross income, other than a
30	withdrawal or distribution or portion of a withdrawal or distribution that is a nonqualified
31	withdrawal;
32	(4) Contributions made to an account under the tuition savings program, including the
33	"contributions carryover" pursuant to paragraph (iv) of this subdivision, if any, subject to the
34	following limitations, restrictions and qualifications:
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1	(i) The aggregate subtraction pursuant to this subdivision for any taxable year of the
2	taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint
3	return;
4	(ii) The following shall not be considered contributions:
5	(A) Contributions made by any person to an account who is not a participant of the
6	account at the time the contribution is made;
7	(B) Transfers or rollovers to an account from any other tuition savings program account
8	or from any other "qualified tuition program" under section 529 of the Internal Revenue Code, 26
9	U.S.C. § 529; or
10	(C) A change of the beneficiary of the account;
11	(iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer's federal
12	adjusted gross income to less than zero (0);
13	(iv) The contributions carryover to a taxable year for purpose of this subdivision is the
14	excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition
15	savings program for all preceding taxable years for which this subsection is effective over the
16	sum of:
17	(A) The total of the subtractions under this subdivision allowable to the taxpayer for all
18	such preceding taxable years; and
19	(B) That part of any remaining contribution carryover at the end of the taxable year
20	which exceeds the amount of any nonqualified withdrawals during the year and the prior two (2)
21	taxable years not included in the addition provided for in this subdivision for those years. Any
22	such part shall be disregarded in computing the contributions carryover for any subsequent
23	taxable year;
24	(v) For any taxable year for which a contributions carryover is applicable, the taxpayer
25	shall include a computation of the carryover with the taxpayer's Rhode Island personal income
26	tax return for that year, and if for any taxable year on which the carryover is based the taxpayer
27	filed a joint Rhode Island personal income tax return but filed a return on a basis other than
28	jointly for a subsequent taxable year, the computation shall reflect how the carryover is being
29	allocated between the prior joint filers; and
30	(5) The modification described in § 44-30-25.1(d)(1).
31	(6) Amounts deemed taxable income to the taxpayer due to payment or provision of
32	insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36
33	or other coverage plan.
34	(7) Modification for organ transplantation.
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1	(i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted
2	gross income if he or she, while living, donates one or more of his or her human organs to another
3	human being for human organ transplantation, except that for purposes of this subsection, "human
4	organ" means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract
5	modification that is claimed hereunder may be claimed in the taxable year in which the human
6	organ transplantation occurs.
7	(ii) An individual may claim that subtract modification hereunder only once, and the
8	subtract modification may be claimed for only the following unreimbursed expenses that are
9	incurred by the claimant and related to the claimant's organ donation:
10	(A) Travel expenses.
11	(B) Lodging expenses.
12	(C) Lost wages.
13	(iii) The subtract modification hereunder may not be claimed by a part-time resident or a
14	nonresident of this state.
15	(8) Modification for taxable Social Security income.
16	(i) For tax years beginning on or after January 1, 2016:
17	(A) For a person who has attained the age used for calculating full or unreduced social
18	security retirement benefits who files a return as an unmarried individual, head of household or
19	married filing separate whose federal adjusted gross income for such taxable year is less than
20	eighty thousand dollars ($80,000); or
21	(B) A married individual filing jointly or individual filing qualifying widow(er) who has
22	attained the age used for calculating full or unreduced social security retirement benefits whose
23	joint federal adjusted gross income for such taxable year is less than one hundred thousand
24	dollars ($100,000), an amount equal to the social security benefits includable in federal adjusted
25	gross income.
26	(ii) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-
27	12(c)(8)(i)(A) and 44-30-12(c)(8)(i)(B) shall be increased annually by an amount equal to:
28	(A) Such dollar amount contained in subparagraphs 44-30-12(c)(8)(i)(A) and 44-30-
29	12(c)(8)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;
30	(B) The cost-of-living adjustment with a base year of 2000.
31	(iii) For the purposes of this section the cost-of-living adjustment for any calendar year is
32	the percentage (if any) by which the consumer price index for the preceding calendar year
33	exceeds the consumer price index for the base year. The consumer price index for any calendar
34	year is the average of the consumer price index as of the close of the twelve (12) month period
	LC000763 - Page 335 of 541
1	ending on August 31, of such calendar year.
2	(iv) For the purpose of this section the term "consumer price index" means the last
3	consumer price index for all urban consumers published by the department of labor. For the
4	purpose of this section the revision of the consumer price index which is most consistent with the
5	consumer price index for calendar year 1986 shall be used.
6	(v) If any increase determined under this section is not a multiple of fifty dollars
7	($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
8	case of a married individual filing separate return, if any increase determined under this section is
9	not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
10	multiple of twenty-five dollars ($25.00).
11	(9) Modification for up to fifteen thousand dollars ($15,000) of taxable retirement
12	income from certain pension plans or annuities.
13	(i) For tax years beginning on or after January 1, 2017, a modification shall be allowed
14	for up to fifteen thousand dollars ($15,000) of taxable pension and/or annuity income that is
15	included in federal adjusted gross income for the taxable year:
16	(A) For a person who has attained the age used for calculating full or unreduced social
17	security retirement benefits who files a return as an unmarried individual, head of household, or
18	married filing separate whose federal adjusted gross income for such taxable year is less than the
19	amount used for the modification contained in § 44-30-12(c)(8)(i)(A) an amount not to exceed
20	$15,000 of taxable pension and/or annuity income includable in federal adjusted gross income; or
21	(B) For a married individual filing jointly or individual filing qualifying widow(er) who
22	has attained the age used for calculating full or unreduced social security retirement benefits
23	whose joint federal adjusted gross income for such taxable year is less than the amount used for
24	the modification contained in § 44-30-12(c)(8)(i)(B) an amount not to exceed $15,000 of taxable
25	pension and/or annuity income includable in federal adjusted gross income.
26	(ii) Adjustment for inflation. The dollar amount contained by reference in §§ 44-30-
27	12(c)(9)(i)(A) and 44-30-12(c)(9)(i)(B) shall be increased annually for tax years beginning on or
28	after January 1, 2018 by an amount equal to:
29	(A) Such dollar amount contained by reference in §§ 44-30-12(c)(9)(i)(A) and 44-30-
30	12(c)(9)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;
31	(B) The cost-of-living adjustment with a base year of 2000.
32	(iii) For the purposes of this section, the cost-of-living adjustment for any calendar year is
33	the percentage (if any) by which the consumer price index for the preceding calendar year
34	exceeds the consumer price index for the base year. The consumer price index for any calendar
	LC000763 - Page 336 of 541
1	year is the average of the consumer price index as of the close of the twelve-month (12) period
2	ending on August 31, of such calendar year.
3	(iv) For the purpose of this section, the term "consumer price index" means the last
4	consumer price index for all urban consumers published by the department of labor. For the
5	purpose of this section, the revision of the consumer price index which is most consistent with the
6	consumer price index for calendar year 1986 shall be used.
7	(v) If any increase determined under this section is not a multiple of fifty dollars
8	($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
9	case of a married individual filing a separate return, if any increase determined under this section
10	is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
11	multiple of twenty-five dollars ($25.00).
12	(10) Modification for Rhode Island investment in opportunity zones. For purposes of a
13	taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by
14	the taxpayer for at least seven (7) years, a modification to income shall be allowed for the
15	incremental difference between the benefit allowed under 26 U.S.C. 1400Z-2(b)(2)(B)(iv) and the
16	federal benefit allowed under 12 U.S.C. 1400Z-2(c).
17	(d) Modification for Rhode Island fiduciary adjustment. There shall be added to, or
18	subtracted from, federal adjusted gross income (as the case may be) the taxpayer's share, as
19	beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-
20	30-17.
21	(e) Partners. The amounts of modifications required to be made under this section by a
22	partner, which relate to items of income or deduction of a partnership, shall be determined under
23	§ 44-30-15.
24	SECTION 24. Section 44-32-3 of the General Laws in Chapter 44-32 entitled "Elective
25	Deduction for Research and Development Facilities" is hereby amended to read as follows:
26	44-32-3. Credit for qualified research expenses.
27	(a) A taxpayer shall be allowed a credit against the tax imposed by chapters 11, 17 or 30
28	of this title. The amount of the credit shall be five percent (5%)(and in the case of amounts paid
29	or accrued after January 1, 1998, twenty-two and one-half percent (22.5%) for the first twenty-
30	five thousand dollars ($25,000) worth of credit and sixteen and nine-tenths percent (16.9%) for
31	the amount of credit above twenty-five thousand dollars ($25,000)) of the excess, if any, of:
32	(1) The qualified research expenses for the taxable year, over
33	(2) The base period research expenses.
34	(b)(1) "Qualified research expenses" and "base period research expenses" have the same
	LC000763 - Page 337 of 541
1	meaning as defined in 26 U.S.C. § 41; provided, that the expenses have been incurred in this state
2	after July 1, 1994.
3	(2) Notwithstanding the provisions of subdivision (1) of this subsection, "qualified
4	research expenses" also includes amounts expended for research by property and casualty
5	insurance companies into methods and ways of preventing or reducing losses from fire and other
6	perils.
7	(c) The credit allowed under this section for any taxable year shall not reduce the tax due
8	for that year by more than fifty percent (50%) of the tax liability that would be payable, and in the
9	case of corporations, to less than the minimum fixed by § 44-11-2(e). If the amount of credit
10	allowable under this section for any taxable year is less than the amount of credit available to the
11	taxpayer any amount of credit not credited in that taxable year may be carried over to the
12	following year or years, and may be credited against the taxpayer’s tax liability for that year or
13	years up to a maximum of seven (7) years;, and may be credited against the taxpayer's tax for that
14	year or years provided, however, that tax credits generated pursuant to this section on or after July
15	1, 2019 may be carried over to the following year or years, and may be credited against the
16	taxpayer’s tax liability for that year or years up to a maximum of fifteen (15) years. For purposes
17	of chapter 30 of this title, if the credit allowed under this section for any taxable year exceeds the
18	taxpayer's tax for that year, the amount of credit not credited in that taxable year may be carried
19	over to the following year or years, up to a maximum of seven (7) years, and may be credited
20	against the taxpayer's tax for that year or years. For purposes of determining the order in which
21	carry-overs are taken into consideration, the credit allowed by § 44-32-2 is taken into account
22	before the credit allowed under this section.
23	(d) The investment tax credit allowed by § 44-31-1 shall be taken into account before the
24	credit allowed under this section.
25	(e) The credit allowed under this section shall only be allowed against the tax of that
26	corporation included in a consolidated return that qualifies for the credit and not against the tax of
27	other corporations that may join in the filing of a consolidated return.
28	(f) In the event the taxpayer is a partnership, joint venture or small business corporation,
29	the credit is divided in the same manner as income.
30	SECTION 25. Section 44-32 of the General Laws entitled "Elective Deduction for
31	Research and Development Facilities" is hereby amended by adding thereto the following
32	section:
33	44-32-3.1. Transferable credit for qualified research expenses.
34	(a) On or after July 1, 2019, a taxpayer that is an early stage company or a company
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1	substantially increasing its investment in research and development in this state may apply to the
2	commerce corporation for a tax credit of up to twenty-two and one-half percent (22.5%) of
3	qualified research expenses.
4	(b) The tax credits awarded under this section shall not exceed one million three hundred
5	thousand dollars annually.
6	(c) For purposes of this section the following definitions apply:
7	(1) Commerce corporation means the Rhode Island commerce corporation established
8	pursuant to § 42-64-1 et seq.
9	(2) “Company substantially increasing its investment in research and development in the
10	state” has the meaning prescribed to it in the regulations promulgated pursuant to subsection (e).
11	(3) “Early stage company” has the meaning prescribed to it in the regulations
12	promulgated pursuant to subsection (e).
13	(4) “Qualified research expenses” has the same meaning prescribed to it in § 44-32-
14	3(b)(1).
15	(5) “Substantially increase” or “substantially increasing” means (i) an increase in
16	qualifying expenditures in the state in an amount that the commerce corporation prescribes
17	pursuant to the regulations promulgated pursuant to subsection (e); and (ii) those additional
18	qualifications that the commerce corporation prescribes pursuant to the regulations promulgated
19	pursuant to subsection (e).
20	(d) If a taxpayer is awarded a tax credit pursuant to this section, the taxpayer may either
21	(1) apply the tax credit, in whole or in part, to the taxpayer’s tax liability; or (2) if the taxpayer
22	has not claimed in whole or in part, the taxpayer awarded the tax credit may sell, assign, transfer,
23	or convey the tax credit consistent with the regulations promulgated pursuant to subsection (e). If
24	the taxpayer applies the tax credit to the taxpayer’s tax liability and the amount of credit applied
25	for any taxable year is less than the amount of credit available to the taxpayer, any amount of
26	credit not credited in that taxable year may be carried over to the following year or years, up to a
27	maximum of fifteen (15) years, and may be credited against the taxpayer's tax for that year or
28	years.
29	(e) The commerce corporation shall promulgate rules and regulations necessary for the
30	award of tax credits pursuant to this section. Further, the commerce corporation, in consultation
31	with the division of taxation, shall establish, by regulation, the process for the assignment,
32	transfer, or conveyance of tax credits. The commerce corporation shall consider applications for
33	tax credits under this section on a competitive basis, which the commerce corporation shall
34	determine in its sole discretion. Any assignment or sales proceeds received by the taxpayer for its
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1	assignment or sale of the tax credits allowed pursuant to subsection (d) shall be exempt from
2	taxation under title 44.
3	(f) Taxpayers who are awarded and claim tax credits under this section are ineligible for
4	any tax credits that may also be available to the taxpayer under 44-32-3 for qualified research
5	expenses incurred on or after July 1, 2019.
6	(g) Any tax credit approved by the commerce corporation pursuant to this section and
7	used by the taxpayer pursuant to subsection (d) shall be taken into account after the credit allowed
8	under § 44-32-3 if such credit is claimed by the taxpayer.
9	(h) The commerce corporation shall annually submit a report regarding the awards made
10	and accepted pursuant to section to the governor, the speaker of the house of representatives, the
11	president of the senate, the chairpersons of the house and senate finance committees, the house
12	and senate fiscal advisors, the division of taxation and the department of revenue.
13	(i) Any taxpayer receiving tax credits pursuant to section shall make annual reports to the
14	commerce corporation as the commerce corporation prescribes in the regulations promulgated
15	pursuant to subsection (e).
16	(j) No tax credits shall be authorized under section after December 31, 2023.
17	SECTION 26. Section 44-48.3-3 of the General Laws in Chapter 44-48.3 entitled "Rhode
18	Island Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:
19	44-48.3-3. Definitions.
20	As used in this chapter, unless the context clearly indicates otherwise, the following
21	words and phrases shall have the following meanings:
22	(1) "Affiliate" or "affiliated entity" means an entity that directly or indirectly controls, is
23	under common control with, or is controlled by the business. Control exists in all cases in which
24	the entity is a member of an affiliated group of corporations as defined pursuant to § 1504 of the
25	Internal Revenue Code of 1986 (26 U.S.C. § 1504) or the entity is an organization in a group of
26	organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
27	Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and
28	convincing evidence, as determined by the commerce corporation, that control exists in situations
29	involving lesser percentages of ownership than required by those statutes. An affiliate of a
30	business may contribute to meeting full-time employee requirements of a business that applies for
31	a credit under this chapter.
32	(2) "Business" means an applicant that is a corporation, state bank, federal savings bank,
33	trust company, national banking association, bank holding company, loan and investment
34	company, mutual savings bank, credit union, building and loan association, insurance company,
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1	investment company, broker-dealer company or surety company, limited liability company,
2	partnership or sole proprietorship.
3	(3) "Commerce corporation" means the Rhode Island commerce corporation established
4	pursuant to chapter 64 of title 42.
5	(4) "Commitment period" means the period of time that at a minimum is twenty percent
6	(20%) greater than the eligibility period.
7	(5) "Eligibility period" means the period in which a business may claim a tax credit under
8	the program, beginning at the end of the tax period in which the commerce corporation issues a
9	certification for the business that it has met the employment requirements of the program and
10	extending thereafter for a term of not more than ten (10) years.
11	(6) "Eligible position" or "full-time job" means a full-time position in a business which
12	has been filled with a full-time employee who earns no less than the median hourly wage as
13	reported by the United States Bureau of Labor Statistics for the state of Rhode Island, provided,
14	that for economically fragile industries such as manufacturing, the commerce corporation may
15	reduce the wage threshold. An economically fragile industry shall not include retail.
16	(7) "Full-time employee" means a person who is employed by a business for
17	consideration for at least thirty-five (35) hours a week, or who is employed by a professional
18	employer organization pursuant to an employee leasing agreement between the business and the
19	professional employer organization for at least thirty-five (35) hours a week, and whose wages
20	are subject to withholding.
21	(8) "Hope community" means municipalities with a percentage of families below the
22	poverty level that is greater than the percentage of families below the poverty level for the state as
23	a whole as determined by the United States Census Bureau's most recent American Community
24	Survey.
25	(9) "Incentive agreement" means the contract between the business and the commerce
26	corporation, which sets forth the terms and conditions under which the business shall be eligible
27	to receive the incentives authorized pursuant to the program.
28	(10) "Incentive effective date" means the date the commerce corporation issues a
29	certification for issuance of tax credit based on documentation submitted by a business pursuant
30	to § 44-48.3-7.
31	(11) “Major economic development opportunity” means the expansion or relocation of a
32	business in a targeted industry where at least fifty-one percent of new full-time jobs are classified
33	as high wage as defined by the commerce corporation and where the expansion or relocation
34	meets additional criteria established by the commerce corporation which shall include but not be
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1	limited to: (i) the creation of a minimum of 100 new full-time jobs in the state; or (ii) the
2	relocation or establishment of a regional or national headquarters or other major corporate hub in
3	the state.
4	(121) "New full-time job" means an eligible position created by the business that did not
5	previously exist in this state and which is created after approval of an application to the
6	commerce corporation under the program. Such job position cannot be the result of an acquisition
7	of an existing company located in Rhode Island by purchase, merger, or otherwise. For the
8	purposes of determining the number of new full-time jobs, the eligible positions of an affiliate
9	shall be considered eligible positions of the business so long as such eligible position(s) otherwise
10	meets the requirements of this section.
11	(132) "Partnership" means an entity classified as a partnership for federal income tax
12	purposes.
13	(143) "Program" means the incentive program established pursuant to this chapter.
14	(15) "Targeted industry" means any industry identified in the economic development
15	vision and policy promulgated under § 42-64.17-1 or, until such time as any economic
16	development vision and policy is promulgated, as identified by the commerce corporation.
17	(165) "Taxpayer" means a business granted a tax credit under this chapter or such person
18	entitled to the tax credit because the business is a pass through entity such as a partnership, S
19	corporation, sole proprietorship or limited liability company taxed as a partnership.
20	(176) "Transit oriented development area" means an area in proximity to mass-transit
21	infrastructure including, but not limited to, an airport, rail or intermodal facility that will be
22	further defined by regulation of the commerce corporation in consultation with the Rhode Island
23	department of transportation.
24	SECTION 27. Section 44-48.3-6 of the General Laws in Chapter 44-48.3 entitled "Rhode
25	Island Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:
26	44-48.3-6. Total amount of tax credit for eligible business.
27	(a) The base amount of the tax credit for an eligible business for each new full-time job
28	shall be up to two thousand five hundred dollars ($2,500) annually.
29	(b) The total tax credit amount shall be calculated and credited to the business annually
30	for each year of the eligibility period after the commerce corporation, in consultation with the
31	division of taxation, has verified that the jobs covered by the tax credit have generated sufficient
32	personal income taxes to comply with subsection (e) of this section.
33	(c) In addition to the base amount of the tax credit, the amount of the tax credit to be
34	awarded for each new full-time job may be increased, pursuant to the provisions of subsection (d)
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1	of this section, if the business meets any of the following criteria or such other additional criteria
2	determined by the commerce corporation from time to time in response to evolving economic or
3	market conditions:
4	(1) For a business located within a hope community;
5	(2) For a targeted industry;
6	(3) For a business located within a transit oriented development area; and
7	(4) For an out-of-state business that relocates a business unit or units or creates a
8	significant number of new full-time jobs during the commitment period.
9	(d) For any application made to the commerce corporation from 2015 through June 30,
10	20189, the tax credit for an eligible business for each new full-time job shall not exceed seven
11	thousand five hundred dollars ($7,500) annually. For any application made to the commerce
12	corporation on or after July 1, 2019, the tax credit for an eligible business for each new full-time
13	job shall not exceed six thousand five hundred dollars ($6,500) annually; provided, however, that
14	a tax credit awarded to an eligible business for each full-time job may exceed such maximum up
15	to $7,500 annually so long as the commerce corporation, in its discretion, considers the eligible
16	business a major economic development opportunity.
17	(e) Notwithstanding the provisions of subsections (a) through (d) of this section, for each
18	application approved by the commerce corporation, the amount of tax credits available to be
19	obtained by the business annually shall not exceed the reasonable W-2 withholding received by
20	the state for each new full-time job created by a business for applications received by the
21	commerce corporation in 2015 through 2018.
22	(f) The commerce corporation shall establish regulations regarding the conditions under
23	which a business may submit more than one application for tax credits over time. The commerce
24	corporation may place limits on repeat applications.
25	SECTION 28. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled
26	"Rhode Island Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:
27	44-48.3-14. Sunset.
28	No credits shall be authorized to be reserved pursuant to this chapter after December 31,
29	2023 June 30, 2020.
30	ARTICLE 13
31	RELATING TO MINIMUM WAGES
32	SECTION 1. Section 28-12-3 of the General Laws in Chapter 28-12 entitled "Minimum
33	Wages" is hereby amended to read as follows:
34	28-12-3. Minimum wages.
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1	(a) Every employer shall pay to each of his or her employees: commencing July 1, 1999,
2	at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing
3	September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour.
4	(b) Commencing January 1, 2004, the minimum wage is six dollars and seventy-five
5	cents ($6.75) per hour.
6	(c) Commencing March 1, 2006, the minimum wage is seven dollars and ten cents
7	($7.10) per hour.
8	(d) Commencing January 1, 2007, the minimum wage is seven dollars and forty cents
9	($7.40) per hour.
10	(e) Commencing January 1, 2013, the minimum wage is seven dollars and seventy-five
11	cents ($7.75) per hour.
12	(f) Commencing January 1, 2014, the minimum wage is eight dollars ($8.00) per hour.
13	(g) Commencing January 1, 2015, the minimum wage is nine dollars ($9.00) per hour.
14	(h) Commencing January 1, 2016, the minimum wage is nine dollars and sixty cents
15	($9.60) per hour.
16	(i) Commencing January 1, 2018, the minimum wage is ten dollars and ten cents ($10.10)
17	per hour.
18	(j) Commencing January 1, 2019, the minimum wage is ten dollars and fifty cents
19	($10.50) per hour.
20	(k) Commencing January 1, 2020, the minimum wage is eleven dollars and ten cents
21	($11.10) per hour.
22	SECTION 2. This article shall take effect upon passage.
23	ARTICLE 14
24	RELATING TO HEALTHCARE MARKET STABILITY
25	SECTION 1. Section 27-18.5-2 of the General Laws in Chapter 27-18.5 entitled
26	"Individual Health Insurance Coverage" is hereby amended to read as follows:
27	27-18.5-2. Definitions.
28	The following words and phrases as used in this chapter have the following meanings
29	unless a different meaning is required by the context:
30	(1) "Bona fide association" means, with respect to health insurance coverage offered in
31	this state, an association which:
32	(i) Has been actively in existence for at least five (5) years;
33	(ii) Has been formed and maintained in good faith for purposes other than obtaining
34	insurance;
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1	(iii) Does not condition membership in the association on any health status-related factor
2	relating to an individual (including an employee of an employer or a dependent of an employee);
3	(iv) Makes health insurance coverage offered through the association available to all
4	members regardless of any health status-related factor relating to the members (or individuals
5	eligible for coverage through a member);
6	(v) Does not make health insurance coverage offered through the association available
7	other than in connection with a member of the association;
8	(vi) Is composed of persons having a common interest or calling;
9	(vii) Has a constitution and bylaws; and
10	(viii) Meets any additional requirements that the director may prescribe by regulation;
11	(2) "COBRA continuation provision" means any of the following:
12	(i) Section 4980(B) of the Internal Revenue Code of 1986, 26 U.S.C. § 4980B, other than
13	subsection (f)(1) of that section insofar as it relates to pediatric vaccines;
14	(ii) Part 6 of subtitle B of Title I of the Employee Retirement Income Security Act of
15	1974, 29 U.S.C. § 1161 et seq., other than Section 609 of that act, 29 U.S.C. § 1169; or
16	(iii) Title XXII of the United States Public Health Service Act, 42 U.S.C. § 300bb-1 et
17	seq.;
18	(3) "Creditable coverage" has the same meaning as defined in the United States Public
19	Health Service Act, Section 2701(c), 42 U.S.C. § 300gg(c), as added by P.L. 104-191;
20	(4) "Director" means the director of the department of business regulation;
21	(5) "Eligible individual" means an individual:
22	(i) For whom, as of the date on which the individual seeks coverage under this chapter,
23	the aggregate of the periods of creditable coverage is eighteen (18) or more months and whose
24	most recent prior creditable coverage was under a group health plan, a governmental plan
25	established or maintained for its employees by the government of the United States or by any of
26	its agencies or instrumentalities, or church plan (as defined by the Employee Retirement Income
27	Security Act of 1974, 29 U.S.C. § 1001 et seq.);
28	(ii) Who is not eligible for coverage under a group health plan, part A or part B of title
29	XVIII of the Social Security Act, 42 U.S.C. § 1395c et seq. or 42 U.S.C. § 1395j et seq., or any
30	state plan under title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (or any successor
31	program), and does not have other health insurance coverage;
32	(iii) With respect to whom the most recent coverage within the coverage period was not
33	terminated based on a factor described in § 27-18.5-4(b)(relating to nonpayment of premiums or
34	fraud);
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1	(iv) If the individual had been offered the option of continuation coverage under a
2	COBRA continuation provision, or under chapter 19.1 of this title or under a similar state
3	program of this state or any other state, who elected the coverage; and
4	(v) Who, if the individual elected COBRA continuation coverage, has exhausted the
5	continuation coverage under the provision or program;
6	(6) "Group health plan" means an employee welfare benefit plan as defined in section
7	3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1), to the extent
8	that the plan provides medical care and including items and services paid for as medical care to
9	employees or their dependents as defined under the terms of the plan directly or through
10	insurance, reimbursement or otherwise;
11	(7) "Health insurance carrier" or "carrier" means any entity subject to the insurance laws
12	and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to
13	contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care
14	services, including, without limitation, an insurance company offering accident and sickness
15	insurance, a health maintenance organization, a nonprofit hospital, medical or dental service
16	corporation, or any other entity providing a plan of health insurance or health benefits by which
17	health care services are paid or financed for an eligible individual or his or her dependents by
18	such entity on the basis of a periodic premium, paid directly or through an association, trust, or
19	other intermediary, and issued, renewed, or delivered within or without Rhode Island to cover a
20	natural person who is a resident of this state, including a certificate issued to a natural person
21	which evidences coverage under a policy or contract issued to a trust or association;
22	(8)(i) "Health insurance coverage" means a policy, contract, certificate, or agreement
23	offered by a health insurance carrier to provide, deliver, arrange for, pay for or reimburse any of
24	the costs of health care services. Health insurance coverage include short-term limited duration
25	policies and any policy that pays on a cost-incurred basis, except as otherwise specifically
26	exempted by subsections (ii), (iii), (iv), or (v) of this section.
27	(ii) "Health insurance coverage" does not include one or more, or any combination of, the
28	following:
29	(A) Coverage only for accident, or disability income insurance, or any combination of
30	those;
31	(B) Coverage issued as a supplement to liability insurance;
32	(C) Liability insurance, including general liability insurance and automobile liability
33	insurance;
34	(D) Workers' compensation or similar insurance;
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1	(E) Automobile medical payment insurance;
2	(F) Credit-only insurance;
3	(G) Coverage for on-site medical clinics; AND
4	(H) Other similar insurance coverage, specified in federal regulations issued pursuant to
5	P.L. 104-191, under which benefits for medical care are secondary or incidental to other
6	insurance benefits; and
7	(I) Short term limited duration insurance;
8	(iii) "Health insurance coverage" does not include the following benefits if they are
9	provided under a separate policy, certificate, or contract of insurance or are not an integral part of
10	the coverage:
11	(A) Limited scope dental or vision benefits;
12	(B) Benefits for long-term care, nursing home care, home health care, community-based
13	care, or any combination of these;
14	(C) Any other similar, limited benefits that are specified in federal regulation issued
15	pursuant to P.L. 104-191;
16	(iv) "Health insurance coverage" does not include the following benefits if the benefits
17	are provided under a separate policy, certificate, or contract of insurance, there is no coordination
18	between the provision of the benefits and any exclusion of benefits under any group health plan
19	maintained by the same plan sponsor, and the benefits are paid with respect to an event without
20	regard to whether benefits are provided with respect to the event under any group health plan
21	maintained by the same plan sponsor:
22	(A) Coverage only for a specified disease or illness; or
23	(B) Hospital indemnity or other fixed indemnity insurance; and
24	(v) "Health insurance coverage" does not include the following if it is offered as a
25	separate policy, certificate, or contract of insurance:
26	(A) Medicare supplemental health insurance as defined under section 1882(g)(1) of the
27	Social Security Act, 42 U.S.C. § 1395ss(g)(1);
28	(B) Coverage supplemental to the coverage provided under 10 U.S.C. § 1071 et seq.; and
29	(C) Similar supplemental coverage provided to coverage under a group health plan;
30	(9) "Health status-related factor" means any of the following factors:
31	(i) Health status;
32	(ii) Medical condition, including both physical and mental illnesses;
33	(iii) Claims experience;
34	(iv) Receipt of health care;
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1	(v) Medical history;
2	(vi) Genetic information;
3	(vii) Evidence of insurability, including conditions arising out of acts of domestic
4	violence; and
5	(viii) Disability;
6	(10) "Individual market" means the market for health insurance coverage offered to
7	individuals other than in connection with a group health plan;
8	(11) "Network plan" means health insurance coverage offered by a health insurance
9	carrier under which the financing and delivery of medical care including items and services paid
10	for as medical care are provided, in whole or in part, through a defined set of providers under
11	contract with the carrier;
12	(12) "Preexisting condition" means, with respect to health insurance coverage, a
13	condition (whether physical or mental), regardless of the cause of the condition, that was present
14	before the date of enrollment for the coverage, for which medical advice, diagnosis, care, or
15	treatment was recommended or received within the six (6) month period ending on the enrollment
16	date. Genetic information shall not be treated as a preexisting condition in the absence of a
17	diagnosis of the condition related to that information; and
18	(13) "High-risk individuals" means those individuals who do not pass medical
19	underwriting standards, due to high health care needs or risks;
20	(14) "Wellness health benefit plan" means that health benefit plan offered in the
21	individual market pursuant to § 27-18.5-8; and
22	(15) "Commissioner" means the health insurance commissioner.
23	SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
24	is hereby amended to read as follows:
25	35-4-27. Indirect cost recoveries on restricted receipt accounts.
26	Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all
27	restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there
28	shall be no transfer from cash receipts with restrictions received exclusively: (1) From
29	contributions from non-profit charitable organizations; (2) From the assessment of indirect cost-
30	recovery rates on federal grant funds; or (3) Through transfers from state agencies to the
31	department of administration for the payment of debt service. These indirect cost recoveries shall
32	be applied to all accounts, unless prohibited by federal law or regulation, court order, or court
33	settlement. The following restricted receipt accounts shall not be subject to the provisions of this
34	section:
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1	Executive Office of Health and Human Services
2	Organ Transplant Fund
3	HIV Care Grant Drug Rebates
4	Department of Human Services
5	Veterans' home -- Restricted account
6	Veterans' home -- Resident benefits
7	Pharmaceutical Rebates Account
8	Demand Side Management Grants
9	Veteran's Cemetery Memorial Fund
10	Donations -- New Veterans' Home Construction
11	Department of Health
12	Pandemic medications and equipment account
13	Miscellaneous Donations/Grants from Non-Profits
14	State Loan Repayment Match
15	Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
16	Eleanor Slater non-Medicaid third-party payor account
17	Hospital Medicare Part D Receipts
18	RICLAS Group Home Operations
19	Commission on the Deaf and Hard of Hearing
20	Emergency and public communication access account
21	Department of Environmental Management
22	National heritage revolving fund
23	Environmental response fund II
24	Underground storage tanks registration fees
25	Rhode Island Historical Preservation and Heritage Commission
26	Historic preservation revolving loan fund
27	Historic Preservation loan fund -- Interest revenue
28	Department of Public Safety
29	Forfeited property -- Retained
30	Forfeitures -- Federal
31	Forfeited property -- Gambling
32	Donation -- Polygraph and Law Enforcement Training
33	Rhode Island State Firefighter's League Training Account
34	Fire Academy Training Fees Account
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1	Attorney General
2	Forfeiture of property
3	Federal forfeitures
4	Attorney General multi-state account
5	Forfeited property -- Gambling
6	Department of Administration
7	OER Reconciliation Funding
8	Health Insurance Market Integrity Fund
9	RI Health Benefits Exchange
10	Information Technology Investment Fund
11	Restore and replacement -- Insurance coverage
12	Convention Center Authority rental payments
13	Investment Receipts -- TANS
14	OPEB System Restricted Receipt Account
15	Car Rental Tax/Surcharge-Warwick Share
16	Executive Office of Commerce
17	Housing Resources Commission Restricted Account
18	Department of Revenue
19	DMV Modernization Project
20	Jobs Tax Credit Redemption Fund
21	Legislature
22	Audit of federal assisted programs
23	Department of Children, Youth and Families
24	Children's Trust Accounts -- SSI
25	Military Staff
26	RI Military Family Relief Fund
27	RI National Guard Counterdrug Program
28	Treasury
29	Admin. Expenses -- State Retirement System
30	Retirement -- Treasury Investment Options
31	Defined Contribution -- Administration - RR
32	Violent Crimes Compensation -- Refunds
33	Treasury Research Fellowship
34	Business Regulation
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1	Banking Division Reimbursement Account
2	Office of the Health Insurance Commissioner Reimbursement Account
3	Securities Division Reimbursement Account
4	Commercial Licensing and Racing and Athletics Division Reimbursement Account
5	Insurance Division Reimbursement Account
6	Historic Preservation Tax Credit Account
7	Judiciary
8	Arbitration Fund Restricted Receipt Account
9	Third-Party Grants
10	RI Judiciary Technology Surcharge Account
11	Department of Elementary and Secondary Education
12	Statewide Student Transportation Services Account
13	School for the Deaf Fee-for-Service Account
14	School for the Deaf -- School Breakfast and Lunch Program
15	Davies Career and Technical School Local Education Aid Account
16	Davies -- National School Breakfast & Lunch Program
17	School Construction Services
18	Office of the Postsecondary Commissioner
19	Higher Education and Industry Center
20	Department of Labor and Training
21	Job Development Fund
22	SECTION 3. Chapter 44-30 of the General Laws entitled “Personal Income Tax” is
23	hereby amended by adding thereto the following sections:
24	44-30-101. Requirements concerning qualifying health insurance coverage.
25	(a) Definitions. For purposes of this section:
26	(1) “Applicable individual” has the same meaning as set forth in 26 U.S.C. § 5000A(d).
27	(2) “Minimum essential coverage” has the same meaning as set forth in 26 U.S. C. §
28	5000A(f).
29	(3) “Shared Responsibility Payment Penalty” means the penalty imposed pursuant to
30	subsection (c) of this section.
31	(4) “Taxpayer” means any resident individual, as defined in section 44-30-5 of the
32	general laws.
33	(b) Requirement to maintain minimum essential coverage. Every applicable individual
34	must maintain minimum essential coverage for each month beginning after December 31, 2019.
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1	(c) Shared Responsibility Payment Penalty imposed for failing to maintain minimum
2	essential coverage. As of January 1, 2020, every applicable individual required to file a personal
3	income tax return pursuant to section 44-30-51 of the general laws, shall indicate on the return, in
4	a manner to be prescribed by the tax administrator, whether and for what period of time during
5	the relevant tax year the individual and his or her spouse and dependents who are applicable
6	individuals were covered by minimum essential coverage. If a return submitted pursuant to this
7	subsection fails to indicate that such coverage was in force or indicates that any applicable
8	individuals did not have such coverage in force, a Shared Responsibility Payment Penalty shall
9	hereby be assessed as a tax on the return.
10	(d) Shared Responsibility Payment Penalty calculation. Except as provided in subsection
11	(e), the Shared Responsibility Payment Penalty imposed shall be equal to a taxpayer’s federal
12	shared responsibility payment for the taxable year under section 5000A of the Internal Revenue
13	Code of 1986, as amended, and as in effect on the 15th day of December 2017.
14	(e) Exceptions.
15	(1) Penalty cap. The amount of the Shared Responsibility Payment Penalty imposed
16	under this section shall be determined, if applicable, using the statewide average premium for
17	bronze-level plans offered through the Rhode Island health benefits exchange rather than the
18	national average premium for bronze-level plans.
19	(2) Hardship exemption determinations. Determinations as to hardship exemptions shall
20	be made by the exchange under section 42-157-11 of the general laws.
21	(3) Religious conscience exemption determinations. Determinations as to religious
22	conscience exemptions shall be made by the exchange under section 42-157-11 of the general
23	laws.
24	(4) Taxpayers with gross income below state filing threshold. No penalty shall be
25	imposed under this section with respect to any applicable individual for any month during a
26	calendar year if the taxpayer’s household income for the taxable year as described in section
27	1412(b)(1)(B) of the Patient Protection and Affordable Care Act is less than the amount of gross
28	income requiring the taxpayer to file a return as set forth in section 44-30-51 of the general laws.
29	(5) Out of State Residents. No penalty shall be imposed by this section with respect to
30	any applicable individual for any month during which the individual is a bona fide resident of
31	another state.
32	(f) Health Insurance Market Integrity Fund. The tax administrator is authorized to
33	withhold from any state tax refund due to the taxpayer an amount equal to the calculated Shared
34	Responsibility Payment Penalty and shall place such amounts in the Health Insurance Market
	LC000763 - Page 352 of 541
1	Integrity Fund created pursuant to section 42-157.1-5 of the general laws.
2	(g) Deficiency. If, upon examination of a taxpayer’s return, the tax administrator
3	determines there is a deficiency because any refund due to the taxpayer is insufficient to satisfy
4	the Shared Responsibility Penalty or because there was no refund due, the tax administrator may
5	notify the taxpayer of such deficiency in accordance with section 44-30-81 and interest shall
6	accrue on such deficiency as set forth in section 44-30-84. All monies collected on said
7	deficiency shall be placed in the Health Insurance Market Integrity Fund created pursuant to
8	section 42-157.1-5 of the general laws.
9	(h) Data Sharing.
10	(1) The tax administrator, upon written request from the exchange pursuant to section 42-
11	157-13 of the general laws, shall disclose to officers, employees, and contractors of the exchange,
12	the name, age, mailing address, income and penalty amount of any such applicable individual
13	who, for the applicable year, did not have the minimum essential coverage required by subsection
14	44-30-101(b).
15	(2) Definition of applicable year. For purposes of this subsection, the term “applicable
16	year” means the most recent taxable year for which information is available in the Rhode Island
17	Department of Revenue’s taxpayer data information systems, or, if there is no return filed for
18	such taxpayer for such year, the prior taxable year.
19	(3) Restriction on use of disclosed information. Taxpayer information disclosed under
20	this subsection may be used only for the purposes authorized by section 42-157-13 of the general
21	laws.
22	(4) Privacy and Security. The exchange and the tax administrator shall develop a detailed
23	set of data privacy and data security safeguards to govern the conveyance of data between their
24	agencies under this section. With respect to information disclosed by the tax administrator to the
25	exchange pursuant to this subsection, the exchange its officers, employees and contractors shall
26	be subject to R.I. Gen. Laws subsection 44-30-95(c).
27	(i) Application of Federal law. The Shared Responsibility Payment Penalty shall be
28	assessed and collected as set forth in this chapter and, where applicable, consistent with
29	regulations promulgated by the federal government, the exchange and/or the tax administrator.
30	Any federal regulation implementing section 5000A of the Internal Revenue Code of 1986, as
31	amended, and in effect on the 15th day of December 2017, shall apply as though incorporated
32	into the Rhode Island Code of Regulations. Federal guidance interpreting these federal
33	regulations shall similarly apply. Except as provided in subsections (j) and (k), all references to
34	federal law shall be construed as references to federal law as in effect on December 15, 2017,
	LC000763 - Page 353 of 541
1	including applicable regulations and administrative guidance that were in effect as of that date.
2	(j) Unavailability of Federal premium tax credits. For any taxable year in which federal
3	premium tax credits available pursuant to 26 U.S.C. section 36B become unavailable due to the
4	federal government repealing that section or failing to fund the premium tax credits, the Shared
5	Responsibility Payment Penalty under this section shall not be enforced.
6	(k) Imposition of Federal shared responsibility payment. For any taxable year in which a
7	federal penalty under section 5000A of the Internal Revenue Code of 1986 is imposed on a
8	taxpayer in an amount comparable to the Shared Responsibility Payment Penalty assessed under
9	this section, the state penalty shall not be enforced.
10	(m) Agency Coordination. Where applicable, the tax administrator shall implement this
11	section in consultation with the office of the health insurance commissioner, the office of
12	management and budget, the executive office of health and human services, and the Rhode Island
13	health benefits exchange.
14	44-30-102. Reporting Requirement for Applicable Entities providing Minimum
15	Essential Coverage.
16	(a) Findings.
17	(1) Ensuring the health of insurance markets is a responsibility reserved for states under
18	the McCarran-Ferguson Act and other federal law.
19	(2) There is substantial evidence that being uninsured causes health problems and
20	unnecessary deaths.
21	(3) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of
22	the general laws is necessary to protect the health and welfare of the state’s residents.
23	(4) The reporting requirement provided for in this section is necessary for the successful
24	implementation of the Shared Responsibility Payment Penalty imposed by subsection 44-30-
25	101(c) of the general laws. This requirement provides the only widespread source of third-party
26	reporting to help taxpayers and the tax administrator verify whether an applicable individual
27	maintains minimum essential coverage. There is compelling evidence that third-party reporting is
28	crucial for ensuring compliance with tax provisions.
29	(5) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of
30	the general laws, and therefore the reporting requirement in this section, is necessary to ensure a
31	stable and well-functioning health insurance market. There is compelling evidence that, without
32	an effective Shared Responsibility Payment Penalty in place for those who go without coverage,
33	there would be substantial instability in health insurance markets, including higher prices and the
34	possibility of areas without any insurance available.
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1	(6) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of
2	the general laws, and therefore the reporting requirement in this section, is also necessary to
3	foster economic stability and growth in the state.
4	(7) The reporting requirement in this section has been narrowly tailored to support
5	compliance with the Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c)
6	of the general laws, while imposing only an incidental burden on reporting entities. In particular,
7	the information that must be reported is limited to the information that must already be reported
8	under a similar federal reporting requirement under section 6055 of the Internal Revenue Code of
9	1986. In addition, this section provides that its reporting requirement may be satisfied by
10	providing the same information that is currently reported under such federal requirement.
11	(b) Definitions. For purposes of this section:
12	(1) “Applicable entity” means:
13	(i) An employer or other sponsor of an employment-based health plan that offers
14	employment-based minimum essential coverage to any resident of Rhode Island.
15	(ii) The Rhode Island Medicaid single state agency providing Medicaid or Children’s
16	Health Insurance Program (CHIP) coverage.
17	(iii) Carriers licensed or otherwise authorized by the Rhode Island office of the health
18	insurance commissioner to offer health coverage providing coverage that is not described in
19	subparagraphs (i) or (ii).
20	(2) “Minimum essential coverage” has the meaning given such term by section 44-30-
21	101(a)(2) of the general laws.
22	(c) For purposes of administering the Shared Responsibility Payment Penalty to
23	individuals who do not maintain minimum essential coverage under subsection 44-30-101(b) of
24	the general laws, every applicable entity that provides minimum essential coverage to an
25	individual during a calendar year shall, at such time as the tax administrator may prescribe, file a
26	form in a manner prescribed by the tax administrator.
27	(d) Form and manner of return.
28	(1) A return, in such form as the tax administrator may prescribe, contains the following
29	information:
30	(i) the name, address and TIN of the primary insured and the name and TIN of each other
31	individual obtaining coverage under the policy;
32	(ii) the dates during which such individual was covered under minimum essential
33	coverage during the calendar year, and
34	(iii) such other information as the tax administrator may require.
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1	(2) Sufficiency of information submitted for federal reporting. Notwithstanding the
2	requirements of paragraph (1), a return shall not fail to be a return described in this section if it
3	includes the information contained in a return described in section 6055 of the Internal Revenue
4	Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.
5	(e) Statements to be furnished to individuals with respect to whom information is
6	reported.
7	(1) Any applicable entity providing a return under the requirements of this section shall
8	also provide to each individual whose name is included in such return a written statement
9	containing the name, address and contact information of the person required to provide the return
10	to the tax administrator and the information included in the return with respect to the individuals
11	listed thereupon. Such written statement must be provided on or before January 31 of the year
12	following the calendar year for which the return was required to be made or by such date as may
13	be determined by the tax administrator.
14	(2) Sufficiency of federal statement. Notwithstanding the requirements of paragraph (1),
15	the requirements of this subsection (e) may be satisfied by a written statement provided to an
16	individual under section 6055 of the Internal Revenue Code of 1986, as that section is in effect
17	and interpreted on the 15th day of December 2017.
18	(f) Reporting responsibility.
19	(1) Coverage provided by governmental units. In the case of coverage provided by an
20	applicable entity that is any governmental unit or any agency or instrumentality thereof, the
21	officer or employee who enters into the agreement to provide such coverage (or the person
22	appropriately designated for purposes of this section) shall be responsible for the returns and
23	statements required by this section.
24	(2) Delegation. An applicable entity may contract with third-party service providers,
25	including insurance carriers, to provide the returns and statements required by this section.
26	SECTION 4. Chapter 42-157 of the General Laws entitled "Rhode Island Health Benefit
27	Exchange" is hereby amended by adding thereto the following section:
28	42-157-11. Exemptions from the shared responsibility payment penalty.
29	(a) Establishment of program. The exchange shall establish a program for determining
30	whether to grant a certification that an individual is entitled to an exemption from the Shared
31	Responsibility Payment Penalty set forth in section 44-30-101(c) of the general laws by reason of
32	religious conscience or hardship.
33	(b) Eligibility determinations. The exchange shall make determinations as to whether to
34	grant a certification described in subsection (a). The exchange shall notify the individual and the
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1	tax administrator for the Rhode Island Department of Revenue of any such determination in such
2	a time and manner as the exchange, in consultation with the tax administrator, shall prescribe. In
3	notifying the tax administrator, the exchange shall adhere to the data privacy and data security
4	standards adopted in accordance with section 44-30-101(i)(4) of the general laws and 45 C.F.R.
5	155.260. The exchange shall only be required to notify the tax administrator to the extent that the
6	exchange determines such disclosure is permitted under 45 C.F.R. 155.260.
7	(c) Appeals. Any person aggrieved by the exchange’s determination of eligibility for an
8	exemption under this section has the right to an appeal in accordance with the procedures
9	contained within chapter 35 of title 42.
10	42-157-12. Special enrollment period for qualified individuals assessed a shared
11	responsibility payment penalty.
12	(a) Definitions. The following definition shall apply for purposes of this section:
13	(1) “Special enrollment period” means a period during which a qualified individual who
14	is assessed a penalty in accordance with section 44-30-101 may enroll in a qualified health plan
15	through the exchange outside of the annual open enrollment period.
16	(b) In the case of a qualified individual who is assessed a shared responsibility payment
17	in accordance with section 44-30-101 of the general laws and who is not enrolled in a qualified
18	health plan, the exchange must provide a special enrollment period consistent with this section
19	and the Federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by
20	the Federal Care and Reconciliation Act of 2010 (Public Law 111-152), and any amendments to,
21	or regulations or guidance issued under, those acts.
22	(c) Effective Date. The exchange must ensure that coverage is effective for a qualified
23	individual who is eligible for a special enrollment period under this section on the first day of the
24	month after the qualified individual completes enrollment in a qualified health plan through the
25	exchange.
26	(d) Availability and length of special enrollment period. A qualified individual has sixty
27	(60) days from the date he or she is assessed a penalty in accordance with section 44-30-101 of
28	the general laws to complete enrollment in a qualified health plan through the exchange. The date
29	of assessment shall be determined in accordance with section 44-30-82 of the general laws.
30	42-157-13. Outreach to Rhode Island residents and individuals assessed a shared
31	responsibility payment penalty.
32	Outreach. The exchange, in consultation with the Office of the Health Insurance
33	Commissioner and the Division of Taxation, is authorized to engage in coordinated outreach
34	efforts to educate Rhode Island residents about the importance of health insurance coverage, their
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1	responsibilities to maintain minimum essential coverage as defined in section 44-30-101 of the
2	general laws, the penalties for failure to maintain such coverage, and information on the services
3	available through the exchange.
4	42-157-14. Regulatory authority.
5	(a) Regulatory Authority. The exchange may promulgate regulations as necessary to
6	carry out the purposes of this chapter.
7	SECTION 5. Sections 42-157.1-1 and 42-157.1-5 of the General Laws in Chapter 42-
8	157.1 entitled "Rhode Island Market Stability and Reinsurance Act" are hereby amended to read
9	as follows:
10	42-157.1-1. Short title and purpose.
11	(a) This chapter shall be known and may be cited as the "Rhode Island Market Stability
12	and Reinsurance Act."
13	(b) The purpose of this chapter is to authorize the director to create the Rhode Island
14	reinsurance program to stabilize health insurance rates and premiums in the individual market and
15	provide greater financial certainty to consumers of health insurance in this state.
16	(c) Nothing in this chapter shall be construed as obligating the state to appropriate funds
17	or make payments to carriers.
18	42-157.1-5. Establishment of program fund.
19	(a) A fund shall be The Health Insurance Market Integrity Fund is hereby established to
20	provide funding for the operation and administration of the program in carrying out the purposes
21	of the program under this chapter.
22	(b) The director is authorized to administer the fund.
23	(c) The fund shall consist of:
24	(1) Any pass-through funds received from the federal government under a waiver
25	approved under 42 U.S.C. § 18052;
26	(2) Any funds designated by the federal government to provide reinsurance to carriers
27	that offer individual health benefit plans in the state;
28	(3) Any funds designated by the state to provide reinsurance to carriers that offer
29	individual health benefit plans in the state; and
30	(4) Any other money from any other source accepted for the benefit of the fund.
31	(d) Nothing in this chapter shall be construed as obligating the state to appropriate funds
32	or make payments to carriers.
33	(d) A restricted receipt account shall be established for the fund which may be used for
34	the purposes set forth in this section and shall be exempt from the indirect cost recovery
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1	provisions of section 35-4-27 of the general laws.
2	(e) Monies in the fund shall be used to provide reinsurance to health insurance carriers as
3	set forth in this chapter and its implementing regulations, and to support the personnel costs,
4	operating costs and capital expenditures of the exchange and the division of taxation that are
5	necessary to carry out the provisions of this chapter, sections 44-30-101 through 44-30-102 and
6	sections 42-157-11 through 42-157-14 of the general laws.
7	(f) Any excess monies remaining in the fund, not including any monies received from the
8	federal government pursuant to paragraphs (1) or (2) and after making the payments required by
9	subsection (f), may be used for preventative health care programs for vulnerable populations in
10	consultation with the executive office of health and human services.
11	42-157.1-7. Program contingent on federal waiver and appropriation of state
12	funding.
13	If the state innovation waiver request in § 42-157.1-6 is not approved, the director shall
14	not implement the program or provide reinsurance payments to eligible carriers.
15	SECTION 6. This article shall take effect upon passage.
16	ARTICLE 15
17	RELATING TO CHILDREN AND FAMILIES
18	SECTION 1. Sections 16-8-10 and 16-8-10.1 of the General Laws in Chapter 16-8
19	entitled "Federal Aid [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" are
20	hereby amended to read as follows:
21	16-8-10. Mandatory school lunch programs.
22	(a) All public elementary and secondary schools shall be required to make type A lunches
23	available to students attending those schools in accordance with rules and regulations adopted
24	from time to time by the department of elementary and secondary education. To the extent that
25	federal, state, and other funds are available, free and reduced price type A lunches shall be
26	provided to all students from families that meet the current specific criteria established by federal
27	and state regulations. The requirement that type A lunches be provided shall apply to locally
28	managed school lunch programs, and school lunch programs administered directly by the
29	department of elementary and secondary education or by any other public agency whether using
30	school facilities or a commercial catering service. The department of elementary and secondary
31	education is further authorized to expand the school lunch program to the extent that federal,
32	state, and/or local funds are available by the utilization of one or more food preparation centers
33	for delivery to participating schools for the purpose of providing meals to students on a more
34	economical basis than could be provided by a community acting individually.
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1	(b) Beginning in the 2020-2021 school year, and each year thereafter, all public schools
2	that have been eligible for the community eligibility provision under section 104(a) of the federal
3	Healthy, Hunger-Free Kids Act of 2010 for two consecutive years or longer shall be required to
4	implement the provision. Any school subject to the requirement in the preceding sentence may
5	apply to the department of elementary and secondary education (“the department”) for a waiver
6	from the requirement. Such waiver may be granted by the department upon the demonstration
7	that adoption of the program would cause economic hardship for the school. All public schools
8	eligible for the community eligibility provision in any year are encouraged to participate even if
9	not required to do so under this paragraph. To facilitate implementation of this program, the
10	department shall:
11	(1) Notify schools on or before March 1 each year if they are required to adopt the
12	community eligibility provision for the school year that begins after September 1 of that year.
13	(2) Develop and distribute procedures and guidelines for the implementation of the
14	program.
15	16-8-10.1. Mandatory school breakfast programs.
16	(a) All public schools shall make a breakfast program available to students attending the
17	school. The breakfast meal shall meet any rules and regulations that are adopted by the
18	commissioner.
19	(b) The state of Rhode Island shall provide school districts a per breakfast subsidy for
20	each breakfast served to students. The general assembly shall annually appropriate some sum and
21	distribute it based on each district's proportion of the number of breakfasts served in the prior
22	school year relative to the statewide total in the same year. This subsidy shall augment the
23	nonprofit school food service account and be used for expenses incurred in providing nutritious
24	breakfast meals to students.
25	(c) Beginning in the 2020-2021 school year, and each year thereafter, all public schools
26	that have an enrollment of seventy percent (70%) or more of students eligible for free or reduced-
27	price meals in the prior school year according to the federal school meals program shall offer a
28	school breakfast program to each student in the school after the instructional day has officially
29	begun. The department of elementary and secondary education (“the department”) shall
30	determine eligible service models, which shall include, but are not limited to, breakfast in the
31	classroom, grab and go breakfast, and second chance breakfast. The breakfast shall be served at a
32	time to be determined by the school so long as it occurs after the beginning of the instructional
33	day. If a public school falls below the seventy percent threshold established in this section, it has
34	the option to continue offering the school breakfast program after the instructional day has
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1	officially begun but is not required to do so. Any school subject to the requirement in the first
2	sentence of this paragraph may apply to the department for a waiver from the requirement. Such
3	waiver may be granted upon the demonstration that providing a school breakfast program after
4	the instructional day has begun would cause financial hardship for the school. To facilitate
5	implementation of this program, the department shall:
6	(1) Notify schools on or before March 1 each year if they are required to implement a
7	school breakfast program after the instructional day has begun beginning that fall.
8	(2) Develop and distribute procedures and guidelines for the implementation of the
9	program, which must be in compliance with federal regulations governing the School Breakfast
10	Program.
11	(3) Annually collect information on eligible delivery models implemented at each school
12	and make the information publicly available.
13	SECTION 2. Section 16-64-1.1 of the General Laws in Chapter 16-64 entitled
14	"Residence of Children for School Purposes" is hereby amended to read as follows:
15	16-64-1.1. Payment and reimbursement for educational costs of children placed in
16	foster care, group homes, or other residential facility by a Rhode Island state agency.
17	(a) Children placed in foster care by a Rhode Island-licensed child-placing agency or a
18	Rhode Island governmental agency shall be entitled to the same free, appropriate public education
19	provided to all other residents of the city or town where the child is placed. The city or town shall
20	pay the cost of the education of the child during the time the child is in foster care in the city or
21	town.
22	(b) Children placed by the department of children, youth and families (DCYF) in a group
23	home or other residential facility that does not include the delivery of educational services are to
24	be educated by the community in which the group home or other residential facility is located,
25	and those children shall be entitled to the same free, appropriate public education provided to all
26	other residents of the city or town where the child is placed. For purposes of payment and
27	reimbursement for educational costs under this chapter, the term "group home or other residential
28	facility" shall not include independent-living programs. Each city and town that contains one or
29	more group homes or other residential facilities that do not include delivery of educational
30	services will receive funds as part of state aid to education in accordance with the following
31	provisions:
32	(1) On December 31 of each year, the DCYF shall provide the department of elementary
33	and secondary education with a precise count of how many group home or other residential
34	facility "beds" exist in each Rhode Island city or town, counting only those "beds" in facilities
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1	that do not include the delivery of educational services. The number of "beds" in each group
2	home or other residential facility shall be equal to the maximum number of children who may be
3	placed in that group home or other residential facility on any given night according to the
4	applicable licensure standards of the DCYF.
5	(2) For the fiscal year beginning July 1, 2007, if the number of beds certified by DCYF
6	for a school district by December 31, 2007, is greater than the number certified March 14, 2007,
7	upon which the education aid for FY 2008 was appropriated, the education aid for that district
8	will be increased by the number of increased beds multiplied by fifteen thousand dollars
9	($15,000). Notwithstanding the provisions of this section or any law to the contrary, the education
10	aid for all group home or other residential facility "beds" located or associated with the Children's
11	Residential and Family Treatment (CRAFT) program located on the East Providence campus of
12	Bradley Hospital shall be twenty-two thousand dollars ($22,000) per bed. The Department of
13	Elementary and Secondary Education shall include the additional aid in equal payments in March,
14	April, May, and June, and the Governor's budget recommendations pursuant to § 35-3-8 shall
15	include the amounts required to provide the increased aid.
16	For all fiscal years beginning after June 30, 2016, education aid for each school district
17	shall include seventeen thousand dollars ($17,000) for each bed certified by DCYF by the
18	preceding December 31. Notwithstanding the provisions of this section or any law to the contrary,
19	the education aid for all group home or other residential facility "beds" located or associated with
20	the Children's Residential and Family Treatment (CRAFT) program located on the East
21	Providence campus of Bradley Hospital shall be twenty-six thousand dollars ($26,000) per bed.
22	For all fiscal years beginning after June 30, 2008, whenever the number of beds certified by
23	DCYF for a school district by December 31 is greater than the number certified the prior
24	December 31 upon which the education aid for that fiscal year was appropriated, the education
25	aid for that district as enacted by the assembly during the prior legislative session for that fiscal
26	year will be increased by the number of increased beds multiplied by the amount per bed
27	authorized for that fiscal year. The Department of Elementary and Secondary Education shall
28	include the additional aid in equal payments in March, April, May, and June, and the Governor's
29	budget recommendations pursuant to § 35-3-8 shall include the amounts required to provide the
30	increased aid.
31	(c) Children placed by DCYF in a residential-treatment program, group home, or other
32	residential facility, except for those listed in subsection (d) of this section, whether or not located
33	in the state of Rhode Island, which includes the delivery of educational services provided by that
34	facility (excluding facilities where students are taught on grounds for periods of time by teaching
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1	staff provided by the school district in which the facility is located), shall have the cost of their
2	education paid for as provided for in subsection (d) and § 16-64-1.2. The city or town determined
3	to be responsible to DYCF for a per-pupil special-education cost pursuant to § 16-64-1.2 shall
4	pay its share of the cost of educational services to DCYF or to the facility providing educational
5	services.
6	(d) Children placed by DCYF in group homes, child-caring facilities, community
7	residences, or other residential facilities shall have the entire cost of their education paid for by
8	DCYF if:
9	(1) The facility is operated by the state of Rhode Island or the facility has a contract with
10	DCYF to fund a pre-determined number of placements or part of the facility's program;
11	(2) The facility is state licensed; and
12	(3) The facility operates an approved, on-grounds educational program, whether or not
13	the child attends the on-grounds program.
14	For each child ordered by the family court to be detained or sentenced to the Thomas C.
15	Slater Training School, the city or town determined to be the child’s residence under §16-64-1.2
16	shall be responsible for payment of a city’s or town’s per pupil special education cost to DCYF
17	for the delivery of education services during the youth’s incarceration at the Training School.
18	SECTION 3. Section 16-64-1.1 of the General Laws in Chapter 16-64 entitled
19	"Residence of Children for School Purposes" is hereby amended to read as follows:
20	16-64-1.3. Educational responsibility for children in group homes and other
21	residential placements.
22	(a) The city or town in which a foster home, group home, or other residential facility that
23	does not include the delivery of educational services is located shall be responsible for the free
24	appropriate public education of any child residing in those placements, including all procedural
25	safeguards, evaluation, and instruction in accordance with regulations under chapter 24 of this
26	title, for any period during which a child is residing in the city or town. The city or town shall
27	coordinate its efforts with any other city or town to which a child moves when exiting the city or
28	town responsible under this subsection.
29	(b) The city or town responsible for payment under § 16-64-1.1(c) and (d) for payment of
30	a city’s or town's per pupil special education cost to DCYF for a child placed in a residential
31	facility, group home, or other residential facility that includes the delivery of educational services
32	shall be responsible for the free, appropriate public education, including all procedural
33	safeguards, evaluation and instruction in accordance with regulations under chapter 24 of this
34	title.
	LC000763 - Page 363 of 541
1	SECTION 4. Sections 23-24.6-14 and 23-24.6-14.1 of the General Laws in Chapter 23-
2	24.6 entitled "Lead Poisoning Prevention Act" is hereby amended to read as follows:
3	23-24.6-14. Inspection of child care facilities.
4	(a) The director shall promulgate regulations requiring that as a condition of licensure all
5	preschools, day care facilities, nursery schools, group family child care homes, family child care
6	homes, child care centers, residential facilities, and public and private elementary schools and
7	schoolyards, and public playgrounds, and shelters and foster homes serving children under the
8	age of six (6) years in Rhode Island:
9	(1) Receive comprehensive environmental lead inspections at specified intervals; and
10	(2) Demonstrate that they are either lead free or lead safe.
11	(b) The director, shall, using state inspectors, conduct comprehensive environmental lead
12	inspections for all these facilities at the specified intervals.
13	23-24.6-14.1. Inspection of foster homes.
14	(a) The director shall promulgate regulations requiring that as a condition of licensure
15	foster homes be subject to, at a minimum, a visual lead inspection to assess whether there are any
16	potential lead hazards in the home. The department of health shall review the results of all lead
17	inspections of foster homes and shall ensure that owners receive all information needed to
18	remediate the lead hazards identified in the inspection.
19	SECTION 5. Sections 40-5.2-8, 40-5.2-10 and 40-5.2-20 of the General Laws in Chapter
20	40-5.2 entitled "The Rhode Island Works Program" are hereby amended to read as follows:
21	40-5.2-8. Definitions.
22	(a) As used in this chapter, the following terms having the meanings set forth herein,
23	unless the context in which such terms are used clearly indicates to the contrary:
24	(1) "Applicant" means a person who has filed a written application for assistance for
25	herself/himself and her/his dependent child(ren). An applicant may be a parent or non parent
26	caretaker relative.
27	(2) "Assistance" means cash and any other benefits provided pursuant to this chapter.
28	(3) "Assistance unit" means the assistance filing unit consisting of the group of persons,
29	including the dependent child(ren), living together in a single household who must be included in
30	the application for assistance and in the assistance payment if eligibility is established. An
31	assistance unit may be the same as a family.
32	(4) "Benefits" shall means assistance received pursuant to this chapter.
33	(5) "Community service programs" means structured programs and activities in which
34	cash assistance recipients RI Works participants perform work for the direct benefit of the
	LC000763 - Page 364 of 541
1	community under the auspices of public or nonprofit organizations. Community service programs
2	are designed to improve the employability of recipients not otherwise able to obtain paid
3	employment. (6) "Department" means the department of human services.
4	(7) "Dependent child" means an individual, other than an individual with respect to
5	whom foster care maintenance payments are made, who is: (A) under the age of eighteen (18); or
6	(B) under the age of nineteen (19) and a full-time student in a secondary school (or in the
7	equivalent level of vocational or educational training), if before he or she attains age nineteen
8	(19), he or she may reasonably be expected to complete the program of such secondary school (or
9	such training).
10	(8) "Director" means the director of the department of human services.
11	(9) "Earned income" means income in cash or the equivalent received by a person
12	through the receipt of wages, salary, commissions, or profit from activities in which the person is
13	self-employed or as an employee and before any deductions for taxes.
14	(10) "Earned income tax credit" means the credit against federal personal income tax
15	liability under § 32 of the Internal Revenue Code of 1986, 26 U.S.C. § 32, or any successor
16	section, the advanced payment of the earned income tax credit to an employee under § 3507 of
17	the code, 26 U.S.C. § 3507, or any successor section and any refund received as a result of the
18	earned income tax credit, as well as any refundable state earned income tax credit.
19	(11) "Education directly related to employment" means education, in the case of a
20	participant who has not received a high school diploma or a certificate of high school
21	equivalency, related to a specific occupation, job, or job offer.
22	(12) "Family" means: (A) a pregnant woman from and including the seventh month of
23	her pregnancy; or (B) a child and the following eligible persons living in the same household as
24	the child: (C) each biological, adoptive or stepparent of the child, or in the absence of a parent,
25	any adult relative who is responsible, in fact, for the care of such child; and (D) the child's minor
26	siblings (whether of the whole or half blood); provided, however, that the term "family" shall not
27	include any person receiving benefits under title XVI of the Social Security Act, 42 U.S.C. §
28	1381 et seq. A family may be the same as the assistance unit.
29	(13) "Gross earnings" means earnings from employment and self-employment further
30	described in the department of human services rules and regulations.
31	(14) "Individual employment plan" means a written, individualized plan for employment
32	developed jointly by the applicant and the department of human services that specifies the steps
33	the participant shall take toward long-term economic independence developed in accordance with
34	subsection 40-5.2-10(e). A participant must comply with the terms of the individual employment
	LC000763 - Page 365 of 541
1	plan as a condition of eligibility in accordance with subsection 40-5.2-10(e) of this chapter.
2	(15) "Job search and job readiness" means the mandatory act of seeking or obtaining
3	employment by the participant, or the preparation to seek or obtain employment.
4	In accord with federal requirements, job search activities must be supervised by the
5	department of labor and training and must be reported to the department of human services in
6	accordance with TANF work verification requirements.
7	Except in the context of rehabilitation employment plans, and special services provided
8	by the department of children, youth and families, job search and job readiness activities are
9	limited to four (4) consecutive weeks, or for a total of six (6) weeks in a twelve (12) month
10	period, with limited exceptions as defined by the department. The department of human services
11	in consultation with the department of labor and training shall extend job search, and job
12	readiness assistance for up to twelve (12) weeks in a fiscal year if a state has an unemployment
13	rate at least fifty percent (50%) greater than the United States unemployment rate if the state
14	meets the definition of a "needy state" under the contingency fund provisions of federal law.
15	Preparation to seek employment, or job readiness, may include, but may not be limited to,
16	the participant obtaining life skills training, homelessness services, domestic violence services,
17	special services for families provided by the department of children youth and families, substance
18	abuse treatment, mental health treatment, or rehabilitation activities as appropriate for those who
19	are otherwise employable. Such services, treatment or therapy must be determined to be
20	necessary and certified by a qualified medical or mental health professional. Intensive work
21	readiness services may include work-based literacy, numeracy, hands-on training, work
22	experience and case management services. Nothing in this section shall be interpreted to mean
23	that the department of labor and training shall be the sole provider of job readiness activities
24	described herein.
25	(16) "Job skills training directly related to employment" means training or education for
26	job skills required by an employer to provide an individual with the ability to obtain employment
27	or to advance or adapt to the changing demands of the workplace. Job skills training directly
28	related to employment must be supervised on an ongoing basis.
29	(17) "Net income" means the total gross income of the assistance unit less allowable
30	disregards and deductions as described in subsection 40-5.2-10(g).
31	(18) "Minor parent" means a parent under the age of eighteen (18). A minor parent may,
32	at the discretion of the department, be an applicant or recipient with his or her dependent
33	child(ren) in his/her own case or a member of an assistance unit with his or her dependent
34	child(ren) in a case established by the minor parent's parent apply as a separate assistance unit in
	LC000763 - Page 366 of 541
1	certain circumstances if he or she is otherwise unable to be included, along with his or her child,
2	as part of the assistance unit of a parent or caretaker relative in accordance with § 40-5.2-10(k).
3	(19) "On-the-job-training" means training in the public or private sector that is given to a
4	paid employee while he or she is engaged in productive work and That provides knowledge and
5	skills essential to the full and adequate performance of the job. On-the-job training must be
6	supervised by under the supervision of an employer, work site sponsor, or other designee of the
7	department of human services on an ongoing basis.
8	(20) "Participant" means a person who has been found eligible for assistance in
9	accordance with this chapter and who must comply with all requirements of this chapter, and has
10	entered into an individual employment plan. A participant may be a parent or non-parent
11	caretaker relative included in the cash assistance payment assistance unit.
12	(21) “Personal Responsibility and Work Opportunity Reconciliation Act of 1996” or
13	“PRWORA,” means the federal law enacted in 1996, as amended, that established TANF and sets
14	forth the eligibility requirements governing access to federal means-tested benefits applicable to
15	non-citizens residing in the United States.
16	(22) Recipient" means a “participant” person who has been found eligible and receives
17	cash assistance for assistance through RI Works in accordance with this chapter.
18	(22)(23) "Relative" means a parent, stepparent, grandparent, great grandparent, great-
19	great grandparent, aunt, great aunt, great-great aunt, uncle, great-uncle, great-great uncle, sister,
20	brother, stepbrother, stepsister, half-brother, half-sister, first cousin, first cousin once removed,
21	niece, great niece, great-great niece, nephew, great nephew, or great-great nephew.
22	(23)(24) "Resident" means a person who maintains residence by his or her continuous
23	physical presence in the state.
24	(25) “RI Works lifetime limit” means the total number of months an adult applicant or
25	beneficiary is eligible to receive cash assistance provided through RI Works and/or any other
26	state or territorial program operating under the auspices of the TANF block grant. The RI Works
27	lifetime limit is forty-eight (48) months and is calculated in accordance with §40-5.2-10(h).
28	Children in a family or assistance unit are not subject to the RI Works life-time limit.
29	(26) "Self-employment income" means the total profit from a business enterprise,
30	farming, etc., resulting from a comparison of the gross receipts with the business expenses, i.e.,
31	expenses directly related to producing the goods or services and without which the goods or
32	services could not be produced. However, items such as depreciation, personal business and
33	entertainment expenses, and personal transportation are not considered business expenses for the
34	purposes of determining eligibility for cash assistance in accordance with this chapter.
	LC000763 - Page 367 of 541
1	(25)(27) "State" means the State of Rhode Island and Providence Plantations.
2	(26) (28) "Subsidized employment" means public or private employment in the private or
3	public sectors for which the employer receives a government subsidy from TANF or other public
4	funds another public program to offset some or all of the wages and costs of employing an
5	recipient RI Works participant. It includes work in which all or a portion of the wages paid to the
6	recipient are provided to The subsidy is paid to the employer either as a reimbursement for the
7	extra costs of training or as an incentive to hire the recipient, including, but not limited to, grant
8	diversion
9	(27) (29) "Subsidized housing" means housing for a family whose rent is restricted to a
10	percentage of its income.
11	(30) “Supplemental Nutrition Assistance Program or “SNAP” means the federally funded
12	program, formerly known as Food Stamps, authorized under the “Food and Nutrition Act of
13	2008”, 7 U.S.C. § 2011 et. seq., and administered by the State, that provides food-purchasing
14	assistance to low and no-income individuals and families who meet certain eligibility
15	requirements.
16	(31) Temporary Assistance of Needy Families or “TANF” is the federal block grant
17	program [Title IV-A of the U.S. Social Security Act 42 U.S.C. § 601 et seq.] authorized by the
18	Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. States
19	receive TANF block grant funds to operate their own cash assistance programs for low-income
20	families within the parameters established in federal law and regulations. RI Works is Rhode
21	Island’s TANF program.
22	(28) (32) "Unsubsidized employment" means full or part-time employment in the public
23	or private sector that is not subsidized by TANF or any other public program.
24	(29) (33) "Vocational educational training" means organized educational programs, not to
25	exceed twelve (12) months with respect to any participant, that are directly related to the
26	preparation of participants for employment in current or emerging occupations. Vocational
27	educational training must be supervised.
28	(30) (34) "Work experience" means a work activity that provides a participant with an
29	opportunity to acquire the general skills, training, knowledge, and work habits necessary to obtain
30	employment. The purpose of work experience is to improve the employability of those who
31	cannot find unsubsidized employment. An employer, work site sponsor, and/or other appropriate
32	designee of the department must supervise this activity.
33	(31) (35) "Work supplementation" also known as "grant diversion" means the use of all
34	or a portion of a participant's cash assistance grant and food stamp grant SNAP as a wage
	LC000763 - Page 368 of 541
1	supplement to an employer. Such a supplement shall be limited to a maximum period of twelve
2	(12) months. An employer must agree to continue the employment of the participant as part of the
3	regular work force, beyond the supplement period, if the participant demonstrates satisfactory
4	performance.
5	(32) (36)"Work activities" mean the specific work requirements which must be defined in
6	the individual employment plan and must be complied with by the participant as a condition of
7	eligibility for the receipt of cash assistance for single and two (2) family households outlined in §
8	40-5.2-12 of this chapter.
9	40-5.2-10. Necessary requirements and conditions.
10	An applicant for RI Works must meet The the following requirements and conditions
11	shall be necessary to establish to be eligible for the RI Works eligibility for the program.
12	(a) Citizenship, alienage and residency requirements.
13	(1) A person shall be a resident of the State of Rhode Island.
14	(2) Effective [July 1, 2019,October 1, 2008], a person seeking eligibility for assistance
15	under this section to must be a United States citizens, or shall or a qualified non-citizen who
16	meets the applicable requirements established in § 402(b) of the Personal Responsibility and
17	Work Opportunity Reconciliation Act of 1996, PRWORA,, Public Laws No. 104-193 and as that
18	section may be hereafter be amended from time to time, [8 U.S.C. § 1612] pertaining to non-
19	citizen and alien eligibility for federal benefits provided through the TANF program; a person
20	who is not a United States citizen and does not meet the alienage requirements established in
21	PRWORA, as amended, is not eligible for cash assistance in accordance with this chapter.
22	(b) The family/assistance unit must meet any other requirements established by the
23	department of human services by rules and regulations adopted pursuant to the Administrative
24	Procedures Act, as necessary to promote the purpose and goals of this chapter.
25	(c) Receipt of cash assistance is conditional upon compliance with all program
26	requirements.
27	(d) All individuals domiciled in this state shall be exempt from the application of
28	subdivision 115(d)(1)(A) of Public Law 104-193, the Personal Responsibility and Work
29	Opportunity Reconciliation Act of 1996, PRWORA [21 U.S.C. § 862a], which makes any
30	individual ineligible for certain state and federal assistance if that individual has been convicted
31	under federal or state law of any offense which is classified as a felony by the law of the
32	jurisdiction and which has as an element the possession, use, or distribution of a controlled
33	substance as defined in § 102(6) of the Controlled Substances Act (21 U.S.C. § 802(6)).
34	(e) Individual employment plan as a condition of eligibility.
	LC000763 - Page 369 of 541
1	(1) Following receipt of an application, the department of human services shall assess the
2	financial conditions of the family, including the non-parent caretaker relative who is applying for
3	cash assistance for himself or herself as well as for the minor child(ren),in the context of an
4	eligibility determination. If a parent or non parent caretaker relative is unemployed or under-
5	employed, the department shall conduct an initial assessment, taking into account: (A) the
6	physical capacity, skills, education, work experience, health, safety, family responsibilities and
7	place of residence of the individual; and (B) the child care and supportive services required by the
8	applicant to avail himself or herself of employment opportunities and/or work readiness
9	programs; and (C) preparation to seek employment, or job readiness, including but not limited to,
10	the need for obtaining life skills training, homelessness services, domestic violence services,
11	special services for families provided by the department of children youth and families, substance
12	abuse treatment, mental health treatment, or rehabilitation activities as appropriate for those who
13	are otherwise employable. Such services, treatment or therapy must be determined to be
14	necessary and certified by a qualified medical or mental health professional. Intensive work
15	readiness services may include work-based literacy, numeracy, hands-on training, work
16	experience and case management services.
17	(2) On the basis of such assessment, the department of human services and the
18	department of labor and training, as appropriate, in consultation with the applicant, shall develop
19	an individual employment plan for the family which requires the individual to participate in the
20	intensive employment services. Intensive employment services shall be defined as the work
21	requirement activities in subsections 40-5.2-12(g) and (i).
22	(3) The director, or his/her designee, may assign a case manager to an
23	applicant/participant, as appropriate.
24	(4) The department of labor and training and the department of human services in
25	conjunction with the participant shall develop a revised individual employment plan which shall
26	identify employment objectives, taking into consideration factors above, and shall include a
27	strategy for immediate employment and for preparing for, finding, and retaining employment
28	consistent, to the extent practicable, with the individual's career objectives. Preparation to seek
29	employment, or job readiness, may include, but may not be limited to, the participant obtaining
30	life skills training, homelessness services, domestic violence services, special services for
31	families provided by the department of children youth and families, substance abuse treatment,
32	mental health treatment, or rehabilitation activities as appropriate for those who are otherwise
33	employable. Such services, treatment or therapy must be determined to be necessary and certified
34	by a qualified medical or mental health professional. Intensive work readiness services may
	LC000763 - Page 370 of 541
1	include work-based literacy, numeracy, hands-on training, work experience and case management
2	services. Nothing in this section shall be interpreted to mean that the department of labor and
3	training shall be the sole provider of job readiness activities described herein
4	(5) The individual employment plan must include the provision for the participant to
5	engage in work requirements as outlined in § 40-5.2-12 of this chapter.
6	(6)(A) The participant shall attend and participate immediately in intensive assessment
7	and employment services as the first step in the individual employment plan, unless temporarily
8	exempt from this requirement in accordance with this chapter. Intensive assessment and
9	employment services shall be defined as the work requirement activities in subsections 40-5.2-
10	12(g) and (i).
11	(B) Parents under age twenty (20) without a high school diploma or General Equivalency
12	Diploma (GED) shall be referred to special teen parent programs which will provide intensive
13	services designed to assist teen parent to complete high school education or GED, and to continue
14	approved work plan activities in accord with Works program requirements.
15	(7) The applicant shall become a participant in accordance with this chapter at the time
16	the individual employment plan is signed and entered into. An applicant is not considered an RI
17	Works participant until the individual employment plan is completed and signed. Such a signature
18	indicates that the applicant agrees (8) Applicants and participants of the Rhode Island Work
19	Program shall agree to comply with the terms of the individual employment plan and shall
20	cooperate fully with the steps established in the individual employment plan, including the work
21	requirements. (8) Applicants and participants of the Rhode Island Work Program shall agree to
22	comply with the terms of the individual employment plan, and shall cooperate fully with the steps
23	established in the individual employment plan, including the work requirements.
24	(9) (8) The department of human services has the authority under the chapter to requires,
25	as a condition of eligibility, that attendance by the applicant/participant, either at the department
26	of human services or at the department of labor and training, applicants and participants attend
27	appointments deemed necessary for the purpose of having the applicant enter into and become
28	eligible for obtaining or retaining assistance through the Rhode Island RI Works Pprogram. Said
29	appointments include, but are not limited to, the initial interview, orientation and assessment; job
30	readiness and job search. Attendance is required as a condition of eligibility for cash assistance in
31	accordance with rules and regulations established by the department.
32	(10) As a condition of eligibility for assistance pursuant to this chapter, the
33	applicant/participant shall be obligated to keep appointments, attend orientation meetings at the
34	department of human services and/or the Rhode Island department of labor and training,
	LC000763 - Page 371 of 541
1	participate in any initial assessments or appraisals and comply with all the terms of the individual
2	employment plan in accordance with department of human service rules and regulations.
3	(11) (10) A participant, including a parent or non-parent caretaker relative included in the
4	cash assistance payment, shall not voluntarily quit a job or refuse a job unless there is good cause
5	as defined in this chapter or the department's rules and regulations.
6	(12) A participant who voluntarily quits or refuses a job without good cause, as defined in
7	subsection 40-5.2-12(l), while receiving cash assistance in accordance with this chapter, shall be
8	sanctioned in accordance with rules and regulations promulgated by the department.
9	(f) Resources.
10	(1) The combined value of the family or assistance unit's available countable resources,
11	shall be less than the allowable resource limit established by the department in accordance with
12	this chapter.
13	(2) No family or assistance unit shall be eligible for assistance payments if the combined
14	value of its available resources once reduced by any obligations or debts, shall not with respect to
15	such resources) must not exceeds one thousand dollars ($1,000).
16	(3) (2) For purposes of this subsection, the following shall not be counted as resources of
17	the family/assistance unit in the determination of eligibility for the works RI Works program:
18	(A) The home owned and occupied by a child, parent, relative or other individual;
19	(B) Real property owned by a husband and wife as tenants by the entirety, if the property
20	is not the home of the family and if the spouse of the applicant refuses to sell his or her interest in
21	the property;
22	(C) Real property other than any as identified in § 40-5.2-10(f)(2)(A) and (B) of which
23	the family is making a good faith effort through a sale or other means to dispose of, however, any
24	cash assistance payable to the family for any such period shall be conditioned upon such disposal
25	of the real property within for the period of up to six (6) months s of from the date of application.
26	and any Eligibility during this period is contingent upon the disposal of the property. Any
27	payments of assistance for that period shall (at the time of disposal) be considered overpayments
28	once the family no longer owns the real property unless to the extent that they would not have
29	occurred at the beginning of the period for which the payments were made the family would
30	have been eligible for assistance at the start of the payment period even if the property had not
31	been disposed. All overpayments are debts subject to recovery in accordance with the provisions
32	of the chapter;
33	(D) Income producing property other than real estate including, but not limited to,
34	equipment such as farm tools, carpenter's tools and vehicles used in the production of goods or
	LC000763 - Page 372 of 541
1	services which the department determines are necessary for the family to earn a living;
2	(E) One vehicle for each adult household member, but not to exceed two (2) vehicles per
3	household, and in addition, a vehicle used primarily for income producing purposes such as, but
4	not limited to, a taxi, truck or fishing boat; a vehicle used as a family's home; a vehicle which
5	annually produces income consistent with its fair market value, even if only used on a seasonal
6	basis; a vehicle necessary to transport a family member with a disability where the vehicle is
7	specially equipped to meet the specific needs of the person with a disability or if the vehicle is a
8	special type of vehicle that makes it possible to transport the person with a disability;
9	(F) Household furnishings and appliances, clothing, personal effects and keepsakes of
10	limited value;
11	(G) Burial plots (one for each child, relative, and other individual in the assistance unit),
12	and funeral arrangements;
13	(H) For the month of receipt and the following month, any refund of federal income taxes
14	made to the family by reason of § 32 of the Internal Revenue Code of 1986, 26 U.S.C. § 32
15	(relating to earned income tax credit), and any payment made to the family by an employer under
16	§ 3507 of the Internal Revenue Code of 1986, 26 U.S.C. § 3507 (relating to advance payment of
17	such earned income credit);
18	(I) The resources of any family member receiving supplementary security income (SSI)
19	assistance under Title XVI of the Social Security Act, 42 U.S.C. § 1381.
20	(g) Income.
21	(1) Except as otherwise provided for herein, in determining eligibility for and the amount
22	of cash assistance to which a family is entitled under this chapter, the income of a family includes
23	all of the money, goods, and services received or actually available to any member of the family.
24	(2) In determining the eligibility for and the amount of cash assistance to which a
25	family/assistance unit is entitled under this chapter, income in any month shall not include the
26	first one hundred seventy dollars ($170) of gross earnings plus fifty percent (50%) of the gross
27	earnings of the family in excess of one hundred seventy dollars ($170) earned during the month.
28	(3) The income of a family shall not include:
29	(A) The first fifty dollars ($50.00) in child support received in any month from each non-
30	custodial parent of a child plus any arrearages in child support (to the extent of the first fifty
31	dollars ($50.00) per month multiplied by the number of months in which the support has been in
32	arrears) which are paid in any month by a non-custodial parent of a child;
33	(B) Earned income of any child;
34	(C) Income SSI received by a family member who is receiving supplemental security
	LC000763 - Page 373 of 541
1	income (SSI) assistance under Title XVI of the Social Security Act, 42 U.S.C. § 1381 et seq;
2	(D) The value of assistance provided by state or federal government or private agencies
3	to meet nutritional needs, including the value of: USDA donated foods; value of supplemental
4	food assistance received under the Child Nutrition Act of 1966, as amended and the special food
5	service program for children under Title VII, ;nutrition program for the elderly, of the Older
6	Americans Act of 1965 as amended, and the value of food stamps SNAP benefits;
7	(E) Value of certain assistance provided to undergraduate students, including any grant or
8	loan for an undergraduate student for educational purposes made or insured under any loan
9	program administered by the U.S. Commissioner Department of Education (or the Rhode Island
10	council on postsecondary education or the Rhode Island division of higher education assistance);
11	and the value of any withdrawals from a 529 or similar educational savings account recognized
12	by federal and state law when the withdrawals are used for qualified education expenses of a
13	family member;
14	(F) Foster Care Payments;
15	(G) Home energy assistance funded by state or federal government or by a nonprofit
16	organization;
17	(H) Payments for supportive services or reimbursement of out-of-pocket expenses made
18	to foster grandparents, senior health aides or senior companions and to persons serving in SCORE
19	and ACE and any other program under Title II and Title III of the Domestic Volunteer Service
20	Act of 1973, 42 U.S.C. § 5000 et seq.;
21	(I) Payments to volunteers under AmeriCorps VISTA as defined in the department's rules
22	and regulations;
23	(J) Certain payments to native Americans; payments distributed per capita to, or held in
24	trust for, members of any Indian Tribe under P.L. 92-254, 25 U.S.C. § 1261 et seq., P.L. 93-134,
25	25 U.S.C. § 1401 et seq., or P.L. 94-540; receipts distributed to members of certain Indian tribes
26	which are referred to in § 5 of P.L. 94-114, 25 U.S.C. § 459d, that became effective October 17,
27	1975;
28	(K) Refund from the federal and state earned income tax credit;
29	(L) The value of any state, local, or federal government rent or housing subsidy, provided
30	that this exclusion shall not limit the reduction in benefits provided for in the payment standard
31	section of this chapter.
32	(4) The receipt of a lump sum of income shall affect participants for cash assistance in
33	accordance with rules and regulations promulgated by the department.
34	(h) Time limit on the receipt of cash assistance.
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1	(1) On and after January 1, 2020, the RI Works lifetime limit for adults is forty-eight (48)
2	months. No cash assistance shall be provided, pursuant to this chapter, to a family or assistance
3	unit which includes an adult member who has received cash assistance in excess of this time limit
4	without regard to whether cash assistance was received by the adult member, either for
5	him/herself or on behalf of his/her children, for a total of twenty-four (24) months, (whether or
6	not consecutive) within any sixty (60) continuous months after July 1, 2008 to include any time
7	receiving any type of cash assistance in this State or any other state or territory of the United
8	States of America as defined herein. Provided further, in no circumstances other than provided for
9	in section (3) below with respect to certain minor children, shall cash assistance be provided
10	pursuant to this chapter to a family or assistance unit which includes an adult member who has
11	received cash assistance for a total of a lifetime limit of forty-eight (48) months.
12	(2) Cash benefits RI Works cash assistance received by a minor dependent child shall not
13	be counted toward their his or her lifetime time limit for receiving benefits under this chapter
14	should that minor child apply this chapter or a successor TANF-cash assistance program
15	administered by the State when applying for eligibility for cash benefits as an adult. (3) Certain
16	minor children not subject to time limit. This section regarding the lifetime time limit for the
17	receipt of cash assistance, shall not apply only in the instances of a minor child(ren) living with a
18	parent who receives SSI benefits and a minor child(ren) living with a responsible adult non-parent
19	caretaker relative who is not in the case assistance payment. The lifetime time limit under this
20	section does not apply to minor dependent children who are living with either a parent who is
21	receiving SSI or a responsible adult non-parent caretaker relative who is not receiving RI Works
22	cash assistance.
23	(4) Receipt of family cash assistance in any other state or territory of the United States of
24	America shall be determined by the The department of human services and shall determine
25	whether any months of receiving include family cash assistance funded in whole or in part by
26	Temporary Assistance for Needy Families (TANF) funds [Title IV-A of the Federal Social
27	Security Act 42 U.S.C. § 601 et seq.] TANF and/or family cash assistance provided under a
28	program similar to the Rhode Island Families Work and Opportunity Program or the federal
29	TANF program RI Works program administered in another state or territory shall count toward
30	the lifetime time limit of an adult applying for or receiving cash assistance under this chapter.
31	(5)(A) The department of human service shall mail a notice to each assistance unit when
32	the assistance unit has every month beginning when there are six (6) months of cash assistance
33	remaining in the lifetime time limit. and each month thereafter until the time limit has expired.
34	The notice must be developed by the department of human services and must contain information
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1	about the lifetime time limit. , the number of months the participant has remaining, the hardship
2	extension policy, the availability of a post-employment-and-closure bonus, and any other
3	information pertinent to a family or an assistance unit nearing either the twenty-four (24) month
4	or the end of the forty-eight (48) month lifetime time limit.
5	(B) For applicants who have less than six (6) months remaining in either the twenty-four
6	(24) month or the forty-eight (48) month lifetime time limit because the family or assistance unit
7	previously received cash assistance in Rhode Island or in another state, the department shall
8	notify the applicant of the number of months remaining when the application is approved and
9	begin the notice process required in paragraph (A) above.
10	(6) If a cash assistance recipient family closed pursuant to Rhode Island's Temporary
11	Assistance for Needy Families Program, (federal TANF described in Title IV A of the Federal
12	Social Security Act, 42 U.S.C. § 601 et seq.) formerly entitled the Rhode Island Family
13	Independence Program, more specifically under subdivision 40-5.1-9(2)(c), due to sanction
14	because of failure to comply with the cash assistance program requirements; and that recipients
15	family received forty-eight (48) months of cash benefits in accordance with the Family
16	Independence Program, than that recipient family is not able to receive further cash assistance for
17	his/her family, under this chapter, except under hardship exceptions.
18	(7) The months of state All months of State or federally funded cash assistance received
19	by a recipient family since May 1, 1997 under Rhode Island's Temporary Assistance for Needy
20	Families Program, (federal TANF described in Title IV A of the Federal Social Security Act, 42
21	U.S.C. § 601 et seq.) formerly entitled the Rhode Island Family Independence Program, through
22	RI Works and any of its predecessors, such as the Rhode Island Family Independence Program,
23	shall be countable toward the time limited cash assistance described in this chapter unless exempt
24	due to hardship exceptions.
25	(i) Time limit on the receipt of cash assistance.
26	(1)(A) No cash assistance shall be provided, pursuant to this chapter, to a family
27	assistance unit in which an adult member has received cash assistance for a total of sixty (60)
28	months forty-eight (48) months (whether or not consecutive) to include any time receiving any
29	type of cash assistance in any other state or territory of the United States since as defined herein
30	effective August 1, 2008May 1, 1997. Provided further, that no cash assistance shall be provided
31	to a family in which an adult member has received assistance for twenty-four (24) consecutive
32	months unless the adult member has a rehabilitation employment plan as provided in subsection
33	40-5.2-12(g)(5).
34	(B) Effective August 1, 2008 Furthermore, no cash assistance shall be provided pursuant
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1	to this chapter to a family in which a child has received cash assistance for a total of sixty (60)
2	months forty-eight (48) months (whether or not consecutive) if the parent is a non-citizen
3	ineligible for assistance under this chapter pursuant to subdivision §40-5.2-10 (a) (2) to include
4	any time for which the parent receivesd any type of cash assistance in any other state or territory
5	of the United States as defined herein.
6	(j) Hardship Exceptions.
7	(1) The department may extend an assistance unit's or family's cash assistance beyond the
8	lifetime time limit, by reason of hardship.; provided, however, that the The number of such
9	families to be exempted by the department with respect to their time limit under this subsection
10	granted hardship exemptions under this subsection shall not exceed twenty percent (20%) of the
11	average monthly number of families to which assistance is provided for receiving cash assistance
12	under this chapter in a fiscal year; provided, however, that to the extent now or hereafter
13	permitted by federal law, excluding any families any waiver granted a waiver from the time limits
14	established under herein under the authority of § 40-5.2-35, for domestic violence reason, shall
15	not be counted in determining the twenty percent (20%) maximum under this section.
16	(2) Parents who receive extensions to the time limit due to hardship must have and
17	comply with employment plans designed to remove or ameliorate the conditions that warranted
18	the extension.
19	(k) Parents under eighteen (18) years of age.
20	(1) A family consisting of a parent who is under the age of eighteen (18), and who has
21	never been married, and who has a child; or a family which consists of a woman under the age of
22	eighteen (18) who is at least six (6) months pregnant, shall be eligible for cash assistance only if
23	such family resides in the home of an adult parent, legal guardian or other adult relative. Such
24	assistance shall be provided to the adult parent, legal guardian, or other adult relative on behalf of
25	the individual and child unless otherwise authorized by the department.
26	(2) This subsection shall not apply if the minor parent or pregnant minor has no parent,
27	legal guardian or other adult relative who is living and/or whose if the whereabouts of such an
28	adult are is unknown; or the department determines that the physical or emotional health or safety
29	of the minor parent, or his or her child, or the pregnant minor, would be jeopardized if he or she
30	was required to live in the same residence as his or her parent, legal guardian or other adult
31	relative (refusal of a parent, legal guardian or other adult relative to allow the minor parent or his
32	or her child, or a pregnant minor, to live in his or her home shall constitute a presumption that the
33	health or safety would be so jeopardized); or the minor parent or pregnant minor has lived apart
34	from his or her own parent or legal guardian for a period of at least one year before either the
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1	birth of any child to a minor parent or the onset of the pregnant minor's pregnancy; or there is
2	good cause, under departmental regulations, for waiving the subsection; and the individual resides
3	in supervised supportive living arrangement to the extent available.
4	(3) For purposes of this section "supervised supportive living arrangement" means an
5	arrangement which requires minor parents to enroll and make satisfactory progress in a program
6	leading to a high school diploma or a general education development certificate, and requires
7	minor parents to participate in the adolescent parenting program designated by the department, to
8	the extent the program is available; and provides rules and regulations which ensure regular adult
9	supervision.
10	(l) Assignment and Cooperation. As a condition of eligibility for cash and medical
11	assistance under this chapter, each adult member, parent or caretaker relative of the
12	family/assistance unit must:
13	(1) Assign to the state any rights to support for children within the family from any
14	person which the family member has at the time the assignment is executed or may have while
15	receiving assistance under this chapter;
16	(2) Consent to and cooperate with the state in establishing the paternity and in
17	establishing and/or enforcing child support and medical support orders for all children in the
18	family or assistance unit in accordance with Title 15 of the general laws, as amended, unless the
19	parent or caretaker relative is found to have good cause for refusing to comply with the
20	requirements of this subsection.
21	(3) Absent good cause, as defined by the department of human services through the rule
22	making process, for refusing to comply with the requirements of (1) and (2) above, cash
23	assistance to the family shall be reduced by twenty-five percent (25%) until the adult member of
24	the family who has refused to comply with the requirements of this subsection consents to and
25	cooperates with the state in accordance with the requirements of this subsection.
26	(4) As a condition of eligibility for cash and medical assistance under this chapter, each
27	adult member, parent or caretaker relative of the family/assistance unit must consent to and
28	cooperate with the state in identifying and providing information to assist the state in pursuing
29	any third-party who may be liable to pay for care and services under Title XIX of the Social
30	Security Act, 42 U.S.C. § 1396 et seq.
31	40-5.2-20. Child-care assistance.
32	Families or assistance units eligible for child-care assistance.
33	(a) The department shall provide appropriate child care to for every participant child who
34	is eligible for cash assistance and who requires child care in order to assure the parents, relative
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1	caretakers, or other legally responsible adults whom they are living with are able to either obtain
2	or maintain employment or, if participating in RI Works, meet the work requirements of their
3	individual employment plans in accordance with this chapter
4	(b) Low-income child care. The department shall provide child care to all other working
5	families with incomes at or below one hundred eighty percent (180%) of the federal poverty level
6	if, and to the extent, such other families require child care in order to work at paid employment as
7	defined in the department's rules and regulations. Beginning October 1, 2013 July 1, 2019, the
8	department shall also provide child care to families with incomes below one hundred eighty
9	percent (180%) of the federal poverty level if, and to the extent, such families require child care
10	to pursue an educational degree or vocational, technical, or professional certification directly
11	related to employment in an appropriately accredited post-secondary educational institution
12	either on a full-time basis, or in combination with employment activities approved by the
13	department, or participate on a short-term basis, as defined in the department's rules and
14	regulations, in training, apprenticeship, internship, on-the-job training, work experience, work
15	immersion, or other job-readiness/job-attachment program sponsored or funded by the human
16	resource investment council (governor's workforce board), or state agencies that are part of the
17	coordinated program system pursuant to § 42-102-11. ) .
18	(c) No family/assistance unit shall be eligible for child-care assistance under this chapter
19	if the combined value of its liquid resources exceeds ten thousand dollars ($10,000) one million
20	dollars ($1,000,000), which corresponds to the amount permitted by the federal government
21	under the state plan and set forth in the administrative rule-making process by the department.
22	Liquid resources are defined as any interest(s) in property in the form of cash or other financial
23	instruments or accounts that are readily convertible to cash or cash equivalents. These include,
24	but are not limited to: cash, bank, credit union, or other financial institution savings, checking,
25	and money market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual
26	funds; and other similar financial instruments or accounts. These do not include educational
27	savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held
28	jointly with another adult, not including a spouse. The department is authorized to promulgate
29	rules and regulations to determine the ownership and source of the funds in the joint account.
30	(d) As a condition of eligibility for child-care assistance under this chapter, the parent or
31	caretaker relative of the family must consent to, and must cooperate with, the department in
32	establishing paternity, and in establishing and/or enforcing child support and medical support
33	orders for all any children in the family receiving appropriate child care under this section in the
34	family in accordance with the applicable sections of Title 15 of the State’s general laws, as
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1	amended, unless the parent or caretaker relative is found to have good cause for refusing to
2	comply with the requirements of this subsection.
3	(e) For purposes of this section, "appropriate child care" means child care, including
4	infant, toddler, pre-school, nursery school, school-age, that is provided by a person or
5	organization qualified, approved, and authorized to provide such care by the department of
6	children, youth and families, or by the department of elementary and secondary education, or
7	such other lawful providers as determined by the department of human services, in cooperation
8	with the department of children, youth and families and the department of elementary and
9	secondary education the State agency or agencies designated to make such determinations in
10	accordance with the provisions set forth herein.
11	(f)(1) Families with incomes below one hundred percent (100%) of the applicable federal
12	poverty level guidelines shall be provided with free child care. Families with incomes greater
13	than one hundred percent (100%) and less than one hundred eighty percent (180%) of the
14	applicable federal poverty guideline shall be required to pay for some portion of the child care
15	they receive, according to a sliding-fee scale adopted by the department in the department's rules.
16	(2) Families who are receiving child-care assistance and who become ineligible for child-
17	care assistance as a result of their incomes exceeding one hundred eighty percent (180%) of the
18	applicable federal poverty guidelines shall continue to be eligible for child-care assistance until
19	their incomes exceed two hundred twenty-five percent (225%) of the applicable federal poverty
20	guidelines. To be eligible, such families must continue to pay for some portion of the child care
21	they receive, as indicated in a sliding-fee scale adopted in the department's rules and in
22	accordance with all other eligibility standards.
23	(g) In determining the type of child care to be provided to a family, the department shall
24	take into account the cost of available child-care options; the suitability of the type of care
25	available for the child; and the parent's preference as to the type of child care.
26	(h) For purposes of this section, "income" for families receiving cash assistance under §
27	40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in
28	§§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned
29	and unearned income as determined by departmental regulations.
30	(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast
31	the expenditures for child care in accordance with the provisions of § 35-17-1.
32	(j) In determining eligibility for child-care assistance for children of members of reserve
33	components called to active duty during a time of conflict, the department shall freeze the family
34	composition and the family income of the reserve component member as it was in the month prior
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1	to the month of leaving for active duty. This shall continue until the individual is officially
2	discharged from active duty.
3	SECTION 6. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child
4	Care - State Subsidies" is hereby amended to read as follows:
5	40-6.2-1.1. Rates established.
6	(a) Through June 30, 2015, subject to the payment limitations in subsection (c), the
7	maximum reimbursement rates to be paid by the departments of human services and children,
8	youth and families for licensed childcare centers and licensed family-childcare providers shall be
9	based on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted
10	for the average of the 75th percentile of the 2002 and the 2004 weekly market rates:
11	LICENSED CHILDCARE CENTERS 75th PERCENTILE OF WEEKLY
12	MARKET RATE
13	INFANT $182.00
14	PRESCHOOL $150.00
15	SCHOOL-AGE $135.00
16	LICENSED FAMILY CHILDCARE 75th PERCENTILE OF WEEKLY
17	PROVIDERS MARKET RATE
18	INFANT $150.00
19	PRESCHOOL $150.00
20	SCHOOL-AGE $135.00
21	Effective July 1, 2015, subject to the payment limitations in subsection (c), the maximum
22	reimbursement rates to be paid by the departments of human services and children, youth and
23	families for licensed childcare centers and licensed family-childcare providers shall be based on
24	the above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the
25	average of the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be
26	increased by ten dollars ($10.00) per week for infant/toddler care provided by licensed family-
27	childcare providers and license-exempt providers and then the rates for all providers for all age
28	groups shall be increased by three percent (3%). For the fiscal year ending June 30, 2018,
29	licensed childcare centers shall be reimbursed a maximum weekly rate of one hundred ninety-
30	three dollars and sixty-four cents ($193.64) for infant/toddler care and one hundred sixty-one
31	dollars and seventy-one cents ($161.71) for preschool-age children.
32	(b) Effective July l, 2018, subject to the payment limitations in subsection (c), the
33	maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of
34	human services and children, youth and families for licensed childcare centers shall be
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1	implemented in a tiered manner, reflective of the quality rating the provider has achieved within
2	the state's quality rating system outlined in § 42-12-23.1.
3	(1) For infant/toddler childcare, tier one shall be reimbursed two and one-half percent
4	(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above
5	the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY
6	2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018
7	weekly amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018
8	weekly amount.
9	(2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half
10	(2.5%) percent above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)
11	above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY
12	2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018
13	weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018
14	weekly amount.
15	(c) The departments shall pay childcare providers based on the lesser of the applicable
16	rate specified in subsection (a), or the lowest rate actually charged by the provider to any of its
17	public or private childcare customers with respect to each of the rate categories, infant, preschool
18	and school-age.
19	(cd) By June 30, 2004, and biennially through June 30, 2014, the department of labor and
20	training shall conduct an independent survey or certify an independent survey of the then current
21	weekly market rates for childcare in Rhode Island and shall forward such weekly market rate
22	survey to the department of human services. The next survey shall be conducted by June 30,
23	2016, and triennially thereafter. The departments of human services and labor and training will
24	jointly determine the survey criteria including, but not limited to, rate categories and sub-
25	categories.
26	(de) In order to expand the accessibility and availability of quality childcare, the
27	department of human services is authorized to establish by regulation alternative or incentive
28	rates of reimbursement for quality enhancements, innovative or specialized childcare and
29	alternative methodologies of childcare delivery, including non-traditional delivery systems and
30	collaborations.
31	(ef) Effective January 1, 2007, all childcare providers licensed childcare centers and
32	licensed family-childcare have the option to be paid every two (2) weeks and have the option of
33	automatic direct deposit and/or electronic funds transfer of reimbursement payments.
34	(f) Effective July 1, 2019, the maximum infant/toddler and preschool-age reimbursement
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1	rates to be paid by the departments of human services and children, youth and families for
2	licensed family childcare providers shall be implemented in a tiered manner, reflective of the
3	quality rating the provider has achieved within the state's quality rating system outlined in § 42-
4	12-23.1. Tier one shall be reimbursed two (2) percent above the state fiscal year 2018 weekly
5	amount, tier two shall be reimbursed five (5) percent above the state fiscal year 2018 weekly
6	amount, tier three shall be reimbursed eleven (11) percent above the state fiscal year 2018 weekly
7	amount, tier four shall be reimbursed fourteen (14) percent above the state fiscal year 2018
8	weekly amount, and tier five shall be reimbursed twenty-three (23) percent above the state fiscal
9	year 2018 weekly amount.
10	SECTION 7. This article shall take effect upon passage.
11	ARTICLE 16
12	RELATING TO MEDICAL ASSISTANCE
13	SECTION 1. Sections 40-6-27 and 40-6-27.2 of the General Laws in Chapter 40-6
14	entitled "Public Assistance Act" are hereby amended to read as follows:
15	40-6-27. Supplemental security income.
16	(a)(1) The director of the department is hereby authorized to enter into agreements on
17	behalf of the state with the secretary of the Department of Health and Human Services or other
18	appropriate federal officials, under the supplementary and security income (SSI) program
19	established by title XVI of the Social Security Act, 42 U.S.C. § 1381 et seq., concerning the
20	administration and determination of eligibility for SSI benefits for residents of this state, except
21	as otherwise provided in this section. The state's monthly share of supplementary assistance to the
22	supplementary security income program shall be as follows:
23	(i) Individual living alone: $39.92
24	(ii) Individual living with others: $51.92
25	(iii) Couple living alone: $79.38
26	(iv) Couple living with others: $97.30
27	(v) Individual living in state licensed assisted living residence: $332.00
28	(vi) Individual eligible to receive Medicaid-funded long-term services and supports and
29	living in a Medicaid certified state licensed assisted living residence or adult supportive care
30	residence, as defined in § 23-17.24-1, participating in the program authorized under § 40-8.13-12
31	or an alternative, successor, or substitute program or delivery option designated for such purposes
32	by the Secretary of the Executive Office of Health and Human Services:
33	(a) with countable income above one hundred and twenty (120) percent of poverty: up to
34	$465.00;
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1	(b) with countable income at or below one hundred and twenty (120) percent of poverty:
2	up to the total amount established in (v) and $465: $797
3	(vii) Individual living in state licensed supportive residential care settings that, depending
4	on the population served, meet the standards set by the department of human services in
5	conjunction with the department(s) of children, youth and families, elderly affairs and/or
6	behavioral healthcare, developmental disabilities and hospitals: $300.00.
7	Provided, however, that the department of human services shall by regulation reduce,
8	effective January 1, 2009, the state's monthly share of supplementary assistance to the
9	supplementary security income program for each of the above listed payment levels, by the same
10	value as the annual federal cost of living adjustment to be published by the federal social security
11	administration in October 2008 and becoming effective on January 1, 2009, as determined under
12	the provisions of title XVI of the federal social security act [42 U.S.C. § 1381 et seq.]; and
13	provided further, that it is the intent of the general assembly that the January 1, 2009 reduction in
14	the state's monthly share shall not cause a reduction in the combined federal and state payment
15	level for each category of recipients in effect in the month of December 2008; provided further,
16	that the department of human services is authorized and directed to provide for payments to
17	recipients in accordance with the above directives.
18	(2) As of July 1, 2010, state supplement payments shall not be federally administered and
19	shall be paid directly by the department of human services to the recipient.
20	(3) Individuals living in institutions shall receive a twenty dollar ($20.00) per month
21	personal needs allowance from the state which shall be in addition to the personal needs
22	allowance allowed by the Social Security Act, 42 U.S.C. § 301 et seq.
23	(4) Individuals living in state licensed supportive residential care settings and assisted
24	living residences who are receiving SSI supplemental payments under this section who are
25	participating in the program under § 40-8.13-12 or an alternative, successor, or substitute program
26	or delivery option, or otherwise shall be allowed to retain a minimum personal needs allowance
27	of fifty-five dollars ($55.00) per month from their SSI monthly benefit prior to payment of any
28	monthly fees in addition to any amounts established in an administrative rule promulgated by the
29	secretary of the executive office of health and human services for persons eligible to receive
30	Medicaid-funded long-term services and supports in the settings identified in subsection (a)(1)(v)
31	and (a)(1)(vi).
32	(5) Except as authorized for the program authorized under § 40-8.13-12 or an alternative,
33	successor, or substitute program, or delivery option designated by the secretary to ensure that
34	supportive residential care or an assisted living residence is a safe and appropriate service setting,
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1	the department is authorized and directed to make a determination of the medical need and
2	whether a setting provides the appropriate services for those persons who: (i) Have applied for or
3	are receiving SSI, and who apply for admission to supportive residential care setting and assisted
4	living residences on or after October 1, 1998; or
5	(ii) Who are residing in supportive residential care settings and assisted living residences,
6	and who apply for or begin to receive SSI on or after October 1, 1998.
7	(6) The process for determining medical need required by subsection (5) of this section
8	shall be developed by the office of health and human services in collaboration with the
9	departments of that office and shall be implemented in a manner that furthers the goals of
10	establishing a statewide coordinated long-term care entry system as required pursuant to the
11	Medicaid section 1115 waiver demonstration.
12	(7) To assure access to high quality coordinated services, the executive office of health
13	and human services is further authorized and directed to establish certification or contract
14	standards that must be met by those state licensed supportive residential care settings, including
15	adult supportive care homes and assisted living residences admitting or serving any persons
16	eligible for state-funded supplementary assistance under this section or the program established
17	under § 40-8.13-12. Such certification or contract standards shall define:
18	(i) The scope and frequency of resident assessments, the development and
19	implementation of individualized service plans, staffing levels and qualifications, resident
20	monitoring, service coordination, safety risk management and disclosure, and any other related
21	areas;
22	(ii) The procedures for determining whether the certifications or contract standards have
23	been met; and
24	(iii) The criteria and process for granting a one time, short-term good cause exemption
25	from the certification or contract standards to a licensed supportive residential care setting or
26	assisted living residence that provides documented evidence indicating that meeting or failing to
27	meet said standards poses an undue hardship on any person eligible under this section who is a
28	prospective or current resident.
29	(8) The certification or contract standards required by this section or § 40-8.13-12 or an
30	alternative, successor, or substitute program, or delivery option designated by the secretary shall
31	be developed in collaboration by the departments, under the direction of the executive office of
32	health and human services, so as to ensure that they comply with applicable licensure regulations
33	either in effect or in development.
34	(b) The department is authorized and directed to provide additional assistance to
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1	individuals eligible for SSI benefits for:
2	(1) Moving costs or other expenses as a result of an emergency of a catastrophic nature
3	which is defined as a fire or natural disaster; and
4	(2) Lost or stolen SSI benefit checks or proceeds of them; and
5	(3) Assistance payments to SSI eligible individuals in need because of the application of
6	federal SSI regulations regarding estranged spouses; and the department shall provide such
7	assistance in a form and amount, which the department shall by regulation determine.
8	40-6-27.2. Supplementary cash assistance payment for certain supplemental security
9	income recipients.
10	There is hereby established a $206 monthly payment for disabled and elderly individuals
11	who, on or after July 1, 2012, receive the state supplementary assistance payment for an
12	individual in state licensed assisted living residence under § 40-6-27 and further reside in an
13	assisted living facility that is not eligible to receive funding under Title XIX of the Social
14	Security Act, 42 U.S.C. § 1381 et seq. or reside in any assisted living facility financed by the
15	Rhode Island housing and mortgage finance corporation prior to January 1, 2006, and receive a
16	payment under § 40-6-27. Such a monthly payment shall not be made on behalf of persons
17	participating in the program authorized under § 40-8.13-12 or an alternative, successor, or
18	substitute program, or delivery option designated for such purposes by the Secretary of the
19	Executive Office of Health and Human Services.
20	SECTION 2. Sections 40-8-13.4 and 40-8-19 of the General Laws in Chapter 40-8
21	entitled "Medical Assistance" are hereby amended to read as follows:
22	40-8-13.4. Rate methodology for payment for in state and out of state hospital
23	services.
24	(a) The executive office of health and human services ("executive office") shall
25	implement a new methodology for payment for in-state and out-of-state hospital services in order
26	to ensure access to, and the provision of, high-quality and cost-effective hospital care to its
27	eligible recipients.
28	(b) In order to improve efficiency and cost effectiveness, the executive office shall:
29	(1)(i) With respect to inpatient services for persons in fee-for-service Medicaid, which is
30	non-managed care, implement a new payment methodology for inpatient services utilizing the
31	Diagnosis Related Groups (DRG) method of payment, which is a patient-classification method
32	that provides a means of relating payment to the hospitals to the type of patients cared for by the
33	hospitals. It is understood that a payment method based on DRG may include cost outlier
34	payments and other specific exceptions. The executive office will review the DRG-payment
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1	method and the DRG base price annually, making adjustments as appropriate in consideration of
2	such elements as trends in hospital input costs; patterns in hospital coding; beneficiary access to
3	care; and the Centers for Medicare and Medicaid Services national CMS Prospective Payment
4	System (IPPS) Hospital Input Price index. For the twelve-month (12) period beginning July 1,
5	2015, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall not exceed
6	ninety-seven and one-half percent (97.5%) of the payment rates in effect as of July 1, 2014. For
7	the twelve (12) month period beginning July 1, 2019, there shall be no increase in the DRG base
8	rate for Medicaid fee-for-service inpatient hospital services.
9	(ii) With respect to inpatient services, (A) It is required as of January 1, 2011 until
10	December 31, 2011, that the Medicaid managed care payment rates between each hospital and
11	health plan shall not exceed ninety and one tenth percent (90.1%) of the rate in effect as of June
12	30, 2010. Increases in inpatient hospital payments for each annual twelve-month (12) period
13	beginning January 1, 2012 may not exceed the Centers for Medicare and Medicaid Services
14	national CMS Prospective Payment System (IPPS) Hospital Input Price index for the applicable
15	period; (B) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the
16	Medicaid managed care payment rates between each hospital and health plan shall not exceed the
17	payment rates in effect as of January 1, 2013, and for the twelve-month (12) period beginning
18	July 1, 2015, the Medicaid managed-care payment inpatient rates between each hospital and
19	health plan shall not exceed ninety-seven and one-half percent (97.5%) of the payment rates in
20	effect as of January 1, 2013; (C) Increases in inpatient hospital payments for each annual twelve-
21	month (12) period beginning July 1, 2017, shall be the Centers for Medicare and Medicaid
22	Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less
23	Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively
24	to July 1; (D) Provided, however, for the twelve (12) month period beginning July 1, 2019, the
25	Medicaid managed care payment rates between each hospital and health plan shall not exceed the
26	payment rates in effect as of January 1, 2019. The executive office will develop an audit
27	methodology and process to assure that savings associated with the payment reductions will
28	accrue directly to the Rhode Island Medicaid program through reduced managed-care-plan
29	payments and shall not be retained by the managed-care plans; (E) All hospitals licensed in
30	Rhode Island shall accept such payment rates as payment in full; and (F) For all such hospitals,
31	compliance with the provisions of this section shall be a condition of participation in the Rhode
32	Island Medicaid program.
33	(2) With respect to outpatient services and notwithstanding any provisions of the law to
34	the contrary, for persons enrolled in fee-for-service Medicaid, the executive office will reimburse
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1	hospitals for outpatient services using a rate methodology determined by the executive office and
2	in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare
3	payments for similar services. Notwithstanding the above, there shall be no increase in the
4	Medicaid fee-for-service outpatient rates effective on July 1, 2013, July 1, 2014, or July 1, 2015.
5	For the twelve-month (12) period beginning July 1, 2015, Medicaid fee-for-service outpatient
6	rates shall not exceed ninety-seven and one-half percent (97.5%) of the rates in effect as of July 1,
7	2014. Increases in the outpatient hospital payments for the twelve-month (12) period beginning
8	July 1, 2016, may not exceed the CMS national Outpatient Prospective Payment System (OPPS)
9	Hospital Input Price Index. For the twelve-month (12) period beginning July 1, 2019, Medicaid
10	fee-for-service outpatient rates shall not exceed the rates in effect as of July 1, 2018. With
11	respect to the outpatient rate, (i) It is required as of January 1, 2011, until December 31, 2011,
12	that the Medicaid managed-care payment rates between each hospital and health plan shall not
13	exceed one hundred percent (100%) of the rate in effect as of June 30, 2010; (ii) Increases in
14	hospital outpatient payments for each annual twelve-month (12) period beginning January 1,
15	2012 until July 1, 2017, may not exceed the Centers for Medicare and Medicaid Services national
16	CMS Outpatient Prospective Payment System OPPS hospital price index for the applicable
17	period; (iii) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the
18	Medicaid managed-care outpatient payment rates between each hospital and health plan shall not
19	exceed the payment rates in effect as of January 1, 2013, and for the twelve-month (12) period
20	beginning July 1, 2015, the Medicaid managed-care outpatient payment rates between each
21	hospital and health plan shall not exceed ninety-seven and one-half percent (97.5%) of the
22	payment rates in effect as of January 1, 2013; (iv) Increases in outpatient hospital payments for
23	each annual twelve-month (12) period beginning July 1, 2017, shall be the Centers for Medicare
24	and Medicaid Services national CMS OPPS Hospital Input Price Index, less Productivity
25	Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1.
26	For the twelve (12) month period beginning July 1, 2019, the Medicaid managed-care outpatient
27	payment rates between each hospital and health plan shall not exceed the payment rates in effect
28	as of January 1, 2019.
29	(3) "Hospital", as used in this section, shall mean the actual facilities and buildings in
30	existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter
31	any premises included on that license, regardless of changes in licensure status pursuant to
32	chapter 17.14 of title 23 (hospital conversions) and § 23-17-6(b) (change in effective control),
33	that provides short-term, acute inpatient and/or outpatient care to persons who require definitive
34	diagnosis and treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the
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1	preceding language, the Medicaid managed care payment rates for a court-approved purchaser
2	that acquires a hospital through receivership, special mastership or other similar state insolvency
3	proceedings (which court-approved purchaser is issued a hospital license after January 1, 2013)
4	shall be based upon the new rates between the court-approved purchaser and the health plan, and
5	such rates shall be effective as of the date that the court-approved purchaser and the health plan
6	execute the initial agreement containing the new rates. The rate-setting methodology for
7	inpatient-hospital payments and outpatient-hospital payments set forth in subdivisions
8	(b)(1)(ii)(C) and (b)(2), respectively, shall thereafter apply to increases for each annual twelve-
9	month (12) period as of July 1 following the completion of the first full year of the court-
10	approved purchaser's initial Medicaid managed care contract.
11	(c) It is intended that payment utilizing the DRG method shall reward hospitals for
12	providing the most efficient care, and provide the executive office the opportunity to conduct
13	value-based purchasing of inpatient care.
14	(d) The secretary of the executive office is hereby authorized to promulgate such rules
15	and regulations consistent with this chapter, and to establish fiscal procedures he or she deems
16	necessary, for the proper implementation and administration of this chapter in order to provide
17	payment to hospitals using the DRG-payment methodology. Furthermore, amendment of the
18	Rhode Island state plan for Medicaid, pursuant to Title XIX of the federal Social Security Act, is
19	hereby authorized to provide for payment to hospitals for services provided to eligible recipients
20	in accordance with this chapter.
21	(e) The executive office shall comply with all public notice requirements necessary to
22	implement these rate changes.
23	(f) As a condition of participation in the DRG methodology for payment of hospital
24	services, every hospital shall submit year-end settlement reports to the executive office within one
25	year from the close of a hospital's fiscal year. Should a participating hospital fail to timely submit
26	a year-end settlement report as required by this section, the executive office shall withhold
27	financial-cycle payments due by any state agency with respect to this hospital by not more than
28	ten percent (10%) until said report is submitted. For hospital fiscal year 2010 and all subsequent
29	fiscal years, hospitals will not be required to submit year-end settlement reports on payments for
30	outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not
31	be required to submit year-end settlement reports on claims for hospital inpatient services.
32	Further, for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include
33	only those claims received between October 1, 2009, and June 30, 2010.
34	(g) The provisions of this section shall be effective upon implementation of the new
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1	payment methodology set forth in this section and § 40-8-13.3, which shall in any event be no
2	later than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-19-14, 27-19-15, and
3	27-19-16 shall be repealed in their entirety.
4	40-8-19. Rates of payment to nursing facilities.
5	(a) Rate reform.
6	(1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of
7	title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to
8	Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be
9	incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. §
10	1396a(a)(13). The executive office of health and human services ("executive office") shall
11	promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1,
12	2011, to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq.,
13	of the Social Security Act.
14	(2) The executive office shall review the current methodology for providing Medicaid
15	payments to nursing facilities, including other long-term-care services providers, and is
16	authorized to modify the principles of reimbursement to replace the current cost-based
17	methodology rates with rates based on a price-based methodology to be paid to all facilities with
18	recognition of the acuity of patients and the relative Medicaid occupancy, and to include the
19	following elements to be developed by the executive office:
20	(i) A direct-care rate adjusted for resident acuity;
21	(ii) An indirect-care rate comprised of a base per diem for all facilities;
22	(iii) A rearray of costs for all facilities every three (3) years beginning October, 2015, that
23	may or may not result in automatic per diem revisions;
24	(iv) Application of a fair-rental value system;
25	(v) Application of a pass-through system; and
26	(vi) Adjustment of rates by the change in a recognized national nursing home inflation
27	index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will
28	not occur on October 1, 2013, October 1, 2014 or October 1, 2015, but will occur on April 1,
29	2015. The adjustment of rates will also not occur on October 1, 2017, or October 1, 2018 and
30	October 1, 2019. Effective July 1, 2018, rates paid to nursing facilities from the rates approved
31	by the Centers for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-
32	for-service and managed care, will be increased by one and one-half percent (1.5%) and further
33	increased by one percent (1%) on October 1, 2018, and further increased by one percent (1%) on
34	October 1, 2019. Said inflation index shall be applied without regard for the transition factors in
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1	subsections (b)(1) and (b)(2). For purposes of October 1, 2016, adjustment only, any rate
2	increase that results from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii)
3	shall be dedicated to increase compensation for direct-care workers in the following manner: Not
4	less than 85% of this aggregate amount shall be expended to fund an increase in wages, benefits,
5	or related employer costs of direct-care staff of nursing homes. For purposes of this section,
6	direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs), certified
7	nursing assistants (CNAs), certified medical technicians, housekeeping staff, laundry staff,
8	dietary staff, or other similar employees providing direct care services; provided, however, that
9	this definition of direct-care staff shall not include: (i) RNs and LPNs who are classified as
10	"exempt employees" under the Federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.); or (ii)
11	CNAs, certified medical technicians, RNs, or LPNs who are contracted, or subcontracted, through
12	a third-party vendor or staffing agency. By July 31, 2017, nursing facilities shall submit to the
13	secretary, or designee, a certification that they have complied with the provisions of subsections
14	(a)(2)(vi) with respect to the inflation index applied on October 1, 2016. Any facility that does not
15	comply with terms of such certification shall be subjected to a clawback, paid by the nursing
16	facility to the state, in the amount of increased reimbursement subject to this provision that was
17	not expended in compliance with that certification.
18	(b) Transition to full implementation of rate reform. For no less than four (4) years after
19	the initial application of the price-based methodology described in subsection (a)(2) to payment
20	rates, the executive office of health and human services shall implement a transition plan to
21	moderate the impact of the rate reform on individual nursing facilities. Said transition shall
22	include the following components:
23	(1) No nursing facility shall receive reimbursement for direct-care costs that is less than
24	the rate of reimbursement for direct-care costs received under the methodology in effect at the
25	time of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-
26	care costs under this provision will be phased out in twenty-five-percent (25%) increments each
27	year until October 1, 2021, when the reimbursement will no longer be in effect; and
28	(2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate
29	the first year of the transition. An adjustment to the per diem loss or gain may be phased out by
30	twenty-five percent (25%) each year; except, however, for the years beginning October 1, 2015,
31	there shall be no adjustment to the per diem gain or loss, but the phase out shall resume
32	thereafter; and
33	(3) The transition plan and/or period may be modified upon full implementation of
34	facility per diem rate increases for quality of care-related measures. Said modifications shall be
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1	submitted in a report to the general assembly at least six (6) months prior to implementation.
2	(4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning
3	July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section
4	shall not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent
5	with the other provisions of this chapter, nothing in this provision shall require the executive
6	office to restore the rates to those in effect on April 1, 2015, at the end of this twelve-month (12)
7	period.
8	SECTION 3. Section 40-8.3-10 of the General Laws in Chapter 40-8.3 entitled
9	"Uncompensated Care" is hereby amended to read as follows:
10	40-8.3-10. Hospital adjustment payments.
11	Effective July 1, 2012 and for each subsequent year, the executive office of health and
12	human services is hereby authorized and directed to amend its regulations for reimbursement to
13	hospitals for inpatient and outpatient services as follows:
14	(a) Each hospital in the state of Rhode Island, as defined in subdivision 23-17-38.1(c)(1),
15	shall receive a quarterly outpatient adjustment payment each state fiscal year of an amount
16	determined as follows:
17	(1) Determine the percent of the state's total Medicaid outpatient and emergency
18	department services (exclusive of physician services) provided by each hospital during each
19	hospital's prior fiscal year;
20	(2) Determine the sum of all Medicaid payments to hospitals made for outpatient and
21	emergency department services (exclusive of physician services) provided during each hospital's
22	prior fiscal year;
23	(3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a
24	percentage defined as the total identified upper payment limit for all hospitals divided by the sum
25	of all Medicaid payments as determined in subdivision (2); and then multiply that result by each
26	hospital's percentage of the state's total Medicaid outpatient and emergency department services
27	as determined in subdivision (1) to obtain the total outpatient adjustment for each hospital to be
28	paid each year;
29	(4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one
30	quarter (1/4) of its total outpatient adjustment as determined in subdivision (3) above.
31	(b) Each hospital in the state of Rhode Island, as defined in subdivision 3-17-38.19(b)(1),
32	shall receive a quarterly inpatient adjustment payment each state fiscal year of an amount
33	determined as follows:
34	(1) Determine the percent of the state's total Medicaid inpatient services (exclusive of
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1	physician services) provided by each hospital during each hospital's prior fiscal year;
2	(2) Determine the sum of all Medicaid payments to hospitals made for inpatient services
3	(exclusive of physician services) provided during each hospital's prior fiscal year;
4	(3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a
5	percentage defined as the total identified upper payment limit for all hospitals divided by the sum
6	of all Medicaid payments as determined in subdivision (2); and then multiply that result by each
7	hospital's percentage of the state's total Medicaid inpatient services as determined in subdivision
8	(1) to obtain the total inpatient adjustment for each hospital to be paid each year;
9	(4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one
10	quarter (1/4) of its total inpatient adjustment as determined in subdivision (3) above.
11	(c)(b) The amounts determined in subsections (a) and (b) are in addition to Medicaid
12	inpatient and outpatient payments and emergency services payments (exclusive of physician
13	services) paid to hospitals in accordance with current state regulation and the Rhode Island Plan
14	for Medicaid Assistance pursuant to Title XIX of the Social Security Act and are not subject to
15	recoupment or settlement.
16	SECTION 4. Effective October 1, 2019, Chapter 40-8.4 of the General Laws entitled
17	"Health Care For Families" is hereby amended by adding thereto the following section:
18	40-8.4-21. Employer Public Assistance Assessment.
19	(a) Employer Assessment. Each employer employing no less than three hundred (300)
20	employees within the state of Rhode Island, shall pay quarterly an assessment for each employee
21	who is a Medicaid beneficiary for every day of the quarter, whether full- or part-time; provided,
22	however, no nonprofit organization or governmental entity shall be considered an employer for
23	the purposes of this section. The assessment shall be computed by multiplying the wages the
24	employer paid any such employee by ten per cent (10%), up to an annual maximum assessment
25	of one thousand five hundred dollars ($1,500) per Medicaid beneficiary employee. Working
26	adults with disabilities, as further defined by regulation authorized in subsection (g), are
27	exempted employees for whom the employer will not be charged an employer assessment under
28	this section.
29	(b) Wages. For the purposes of this section, “wages” means all compensation due to an
30	employee by reason of his or her employment.
31	(c) Appeal. An employer notified of a liability determination under this section may
32	request a hearing with the department of labor and training to appeal the liability determination.
33	The request for a hearing shall be filed not more than fifteen (15) days after the receipt of notice
34	of the determination. The decision rendered at the conclusion of the hearing shall be considered a
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1	final agency order.
2	(d) Eligibility inquiries. Notwithstanding the appeal right in subsection (c), an employer
3	may issue to the department of human services a request for review of the Medicaid eligibility of
4	any employee for whom the employer is charged an assessment. Except where prohibited by
5	federal law, the State is authorized to make a limited disclosure to the inquiring employer
6	regarding the name of any Medicaid beneficiary employee for whom the employer is being
7	assessed under subsection (a).
8	(e) Discrimination prohibited. No employer may take any adverse action against any
9	employee or potential employee on the basis of the employee’s status as a Medicaid beneficiary.
10	Any employer found to have discriminated on this basis shall be subject to a penalty prescribed in
11	regulations promulgated pursuant to this section.
12	(f) Data sharing. The departments of administration, revenue, human services, and labor
13	and training, and the executive office of health and human services are authorized to share data
14	and information to implement this section. Data collected by the departments of administration,
15	revenue, human services, labor and training, or the executive office of health and human services
16	for the implementation of this section shall not be a public record.
17	(g) Regulations. The departments of labor and training and human services are authorized
18	to promulgate regulations to implement the provisions of this section, including additional
19	parameters on which employees cause the assessment and the definition of working disabled
20	adults exempted from the employer assessment contained in subsection (a), in consultation with
21	the executive office of health and human services and department of revenue.
22	SECTION 5. Section 40-8.9-9 of the General Laws in Chapter 40-8.9 entitled "Medical
23	Assistance - Long-Term Care Service and Finance Reform" is hereby amended to read as
24	follows:
25	40-8.9-9. Long-term-care rebalancing system reform goal.
26	(a) Notwithstanding any other provision of state law, the executive office of health and
27	human services is authorized and directed to apply for, and obtain, any necessary waiver(s),
28	waiver amendment(s), and/or state-plan amendments from the secretary of the United States
29	Department of Health and Human Services, and to promulgate rules necessary to adopt an
30	affirmative plan of program design and implementation that addresses the goal of allocating a
31	minimum of fifty percent (50%) of Medicaid long-term-care funding for persons aged sixty-five
32	(65) and over and adults with disabilities, in addition to services for persons with developmental
33	disabilities, to home- and community-based care; provided, further, the executive office shall
34	report annually as part of its budget submission, the percentage distribution between institutional
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1	care and home- and community-based care by population and shall report current and projected
2	waiting lists for long-term-care and home- and community-based care services. The executive
3	office is further authorized and directed to prioritize investments in home- and community-based
4	care and to maintain the integrity and financial viability of all current long-term-care services
5	while pursuing this goal.
6	(b) The reformed long-term-care system rebalancing goal is person centered and
7	encourages individual self-determination, family involvement, interagency collaboration, and
8	individual choice through the provision of highly specialized and individually tailored home-
9	based services. Additionally, individuals with severe behavioral, physical, or developmental
10	disabilities must have the opportunity to live safe and healthful lives through access to a wide
11	range of supportive services in an array of community-based settings, regardless of the
12	complexity of their medical condition, the severity of their disability, or the challenges of their
13	behavior. Delivery of services and supports in less costly and less restrictive community settings,
14	will enable children, adolescents, and adults to be able to curtail, delay, or avoid lengthy stays in
15	long-term care institutions, such as behavioral health residential-treatment facilities, long-term-
16	care hospitals, intermediate-care facilities, and/or skilled nursing facilities.
17	(c) Pursuant to federal authority procured under § 42-7.2-16, the executive office of
18	health and human services is directed and authorized to adopt a tiered set of criteria to be used to
19	determine eligibility for services. Such criteria shall be developed in collaboration with the state's
20	health and human services departments and, to the extent feasible, any consumer group, advisory
21	board, or other entity designated for such purposes, and shall encompass eligibility
22	determinations for long-term-care services in nursing facilities, hospitals, and intermediate-care
23	facilities for persons with intellectual disabilities, as well as home- and community-based
24	alternatives, and shall provide a common standard of income eligibility for both institutional and
25	home- and community-based care. The executive office is authorized to adopt clinical and/or
26	functional criteria for admission to a nursing facility, hospital, or intermediate-care facility for
27	persons with intellectual disabilities that are more stringent than those employed for access to
28	home- and community-based services. The executive office is also authorized to promulgate rules
29	that define the frequency of re-assessments for services provided for under this section. Levels of
30	care may be applied in accordance with the following:
31	(1) The executive office shall continue to apply the level of care criteria in effect on June
32	30, 2015, for any recipient determined eligible for and receiving Medicaid-funded, long-term
33	services in supports in a nursing facility, hospital, or intermediate-care facility for persons with
34	intellectual disabilities on or before that date, unless:
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1	(a) The recipient transitions to home- and community-based services because he or she
2	would no longer meet the level of care criteria in effect on June 30, 2015; or
3	(b) The recipient chooses home- and community-based services over the nursing facility,
4	hospital, or intermediate-care facility for persons with intellectual disabilities. For the purposes of
5	this section, a failed community placement, as defined in regulations promulgated by the
6	executive office, shall be considered a condition of clinical eligibility for the highest level of care.
7	The executive office shall confer with the long-term-care ombudsperson with respect to the
8	determination of a failed placement under the ombudsperson's jurisdiction. Should any Medicaid
9	recipient eligible for a nursing facility, hospital, or intermediate-care facility for persons with
10	intellectual disabilities as of June 30, 2015, receive a determination of a failed community
11	placement, the recipient shall have access to the highest level of care; furthermore, a recipient
12	who has experienced a failed community placement shall be transitioned back into his or her
13	former nursing home, hospital, or intermediate-care facility for persons with intellectual
14	disabilities whenever possible. Additionally, residents shall only be moved from a nursing home,
15	hospital, or intermediate-care facility for persons with intellectual disabilities in a manner
16	consistent with applicable state and federal laws.
17	(2) Any Medicaid recipient eligible for the highest level of care who voluntarily leaves a
18	nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities shall
19	not be subject to any wait list for home- and community-based services.
20	(3) No nursing home, hospital, or intermediate-care facility for persons with intellectual
21	disabilities shall be denied payment for services rendered to a Medicaid recipient on the grounds
22	that the recipient does not meet level of care criteria unless and until the executive office has:
23	(i) Performed an individual assessment of the recipient at issue and provided written
24	notice to the nursing home, hospital, or intermediate-care facility for persons with intellectual
25	disabilities that the recipient does not meet level of care criteria; and
26	(ii) The recipient has either appealed that level of care determination and been
27	unsuccessful, or any appeal period available to the recipient regarding that level of care
28	determination has expired.
29	(d) The executive office is further authorized to consolidate all home- and community-
30	based services currently provided pursuant to 42 U.S.C. § 1396n into a single system of home-
31	and community-based services that include options for consumer direction and shared living. The
32	resulting single home- and community-based services system shall replace and supersede all 42
33	U.S.C. § 1396n programs when fully implemented. Notwithstanding the foregoing, the resulting
34	single program home- and community-based services system shall include the continued funding
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1	of assisted-living services at any assisted-living facility financed by the Rhode Island housing and
2	mortgage finance corporation prior to January 1, 2006, and shall be in accordance with chapter
3	66.8 of title 42 as long as assisted-living services are a covered Medicaid benefit.
4	(e) The executive office is authorized to promulgate rules that permit certain optional
5	services including, but not limited to, homemaker services, home modifications, respite, and
6	physical therapy evaluations to be offered to persons at risk for Medicaid-funded, long-term care
7	subject to availability of state-appropriated funding for these purposes.
8	(f) To promote the expansion of home- and community-based service capacity, the
9	executive office is authorized to pursue payment methodology reforms that increase access to
10	homemaker, personal care (home health aide), assisted living, adult supportive-care homes, and
11	adult day services, as follows:
12	(1) Development of revised or new Medicaid certification standards that increase access
13	to service specialization and scheduling accommodations by using payment strategies designed to
14	achieve specific quality and health outcomes.
15	(2) Development of Medicaid certification standards for state-authorized providers of
16	adult-day services, excluding such providers of services authorized under § 40.1-24-1(3), assisted
17	living, and adult supportive care (as defined under chapter 17.24 of title 23) that establish for
18	each, an acuity-based, tiered service and payment methodology tied to: licensure authority; level
19	of beneficiary needs; the scope of services and supports provided; and specific quality and
20	outcome measures.
21	The standards for adult-day services for persons eligible for Medicaid-funded, long-term
22	services may differ from those who do not meet the clinical/functional criteria set forth in § 40-
23	8.10-3.
24	(3) As the state's Medicaid program seeks to assist more beneficiaries requiring long-term
25	services and supports in home- and community-based settings, the demand for home care workers
26	has increased, and wages for these workers has not kept pace with neighboring states, leading to
27	high turnover and vacancy rates in the state's home-care industry, the executive office shall
28	institute a one-time increase in the base-payment rates for home-care service providers to
29	promote increased access to and an adequate supply of highly trained home health care
30	professionals, in amount to be determined by the appropriations process, for the purpose of
31	raising wages for personal care attendants and home health aides to be implemented by such
32	providers.
33	(4) A prospective base adjustment, effective not later than July 1, 2018, of ten percent
34	(10%) of the current base rate for home care providers, home nursing care providers, and hospice
	LC000763 - Page 397 of 541
1	providers contracted with the executive office of health and human services and its subordinate
2	agencies to deliver Medicaid fee-for-service personal care attendant services.
3	(5) A prospective base adjustment, effective not later than July l, 2018, of twenty percent
4	(20%) of the current base rate for home care providers, home nursing care providers, and hospice
5	providers contracted with the executive office of health and human services and its subordinate
6	agencies to deliver Medicaid fee-for-service skilled nursing and therapeutic services and hospice
7	care.
8	(6) Effective July 1, 2019, the rate for hospice providers delivering hospice care in a
9	skilled nursing facility shall not exceed ninety-five percent (95%) of the rate paid for non-hospice
10	care in a skilled nursing facility.
11	(6) (7) On the first of July in each year, beginning on July l, 2019, the executive office of
12	health and human services will initiate an annual inflation increase to the base rate for home care
13	providers, home nursing care providers, and hospice providers, except those providing hospice
14	care in skilled nursing facilities, contracted with the executive office and its subordinate agencies
15	to deliver Medicaid fee-for-service skilled nursing and therapeutic services and hospice care. The
16	base rate increase shall be by a percentage amount equal to the New England Consumer Price
17	Index card as determined by the United States Department of Labor for medical care and for
18	compliance with all federal and state laws, regulations, and rules, and all national accreditation
19	program requirements. (g) The executive office shall implement a long-term-care options
20	counseling program to provide individuals, or their representatives, or both, with long-term-care
21	consultations that shall include, at a minimum, information about: long-term-care options,
22	sources, and methods of both public and private payment for long-term-care services and an
23	assessment of an individual's functional capabilities and opportunities for maximizing
24	independence. Each individual admitted to, or seeking admission to, a long-term-care facility,
25	regardless of the payment source, shall be informed by the facility of the availability of the long-
26	term-care options counseling program and shall be provided with long-term-care options
27	consultation if they so request. Each individual who applies for Medicaid long-term-care services
28	shall be provided with a long-term-care consultation.
29	(h) The executive office is also authorized, subject to availability of appropriation of
30	funding, and federal, Medicaid-matching funds, to pay for certain services and supports necessary
31	to transition or divert beneficiaries from institutional or restrictive settings and optimize their
32	health and safety when receiving care in a home or the community. The secretary is authorized to
33	obtain any state plan or waiver authorities required to maximize the federal funds available to
34	support expanded access to such home- and community-transition and stabilization services;
	LC000763 - Page 398 of 541
1	provided, however, payments shall not exceed an annual or per-person amount.
2	(i) To ensure persons with long-term-care needs who remain living at home have
3	adequate resources to deal with housing maintenance and unanticipated housing-related costs, the
4	secretary is authorized to develop higher resource eligibility limits for persons or obtain any state
5	plan or waiver authorities necessary to change the financial eligibility criteria for long-term
6	services and supports to enable beneficiaries receiving home and community waiver services to
7	have the resources to continue living in their own homes or rental units or other home-based
8	settings.
9	(j) The executive office shall implement, no later than January 1, 2016, the following
10	home- and community-based service and payment reforms:
11	(1) Community-based, supportive-living program established in § 40-8.13-12 or an
12	alternative, successor, or substitute program, or delivery option designated for such purposes by
13	the Secretary of the Executive Office of Health and Human Services;
14	(2) Adult day services level of need criteria and acuity-based, tiered-payment
15	methodology; and
16	(3) Payment reforms that encourage home- and community-based providers to provide
17	the specialized services and accommodations beneficiaries need to avoid or delay institutional
18	care.
19	(k) The secretary is authorized to seek any Medicaid section 1115 waiver or state-plan
20	amendments and take any administrative actions necessary to ensure timely adoption of any new
21	or amended rules, regulations, policies, or procedures and any system enhancements or changes,
22	for which appropriations have been authorized, that are necessary to facilitate implementation of
23	the requirements of this section by the dates established. The secretary shall reserve the discretion
24	to exercise the authority established under §§ 42-7.2-5(6)(v) and 42-7.2-6.1, in consultation with
25	the governor, to meet the legislative directives established herein.
26	SECTION 6. Section 40-8.13-12 of the General Laws in Chapter 40-8.13 entitled "Long-
27	Term Managed Care Arrangements" is hereby amended to read as follows:
28	40-8.13-12. Community-based supportive living program.
29	(a) To expand the number of community-based service options, the executive office of
30	health and human services shall establish a program for beneficiaries opting to participate in
31	managed care long-term care arrangements under this chapter who choose to receive Medicaid-
32	funded assisted living, adult supportive care home, or shared living long-term care services and
33	supports. As part of the program, the executive office shall implement Medicaid certification or,
34	as appropriate, managed care contract standards for state authorized providers of these services
	LC000763 - Page 399 of 541
1	that establish an acuity-based, tiered service and payment system that ties reimbursements to:
2	beneficiary's clinical/functional level of need; the scope of services and supports provided; and
3	specific quality and outcome measures. Such standards shall set the base level of Medicaid state
4	plan and waiver services that each type of provider must deliver, the range of acuity-based service
5	enhancements that must be made available to beneficiaries with more intensive care needs, and
6	the minimum state licensure and/or certification requirements a provider must meet to
7	participate in the pilot at each service/payment level. The standards shall also establish any
8	additional requirements, terms or conditions a provider must meet to ensure beneficiaries have
9	access to high quality, cost effective care.
10	(b) Room and board. The executive office shall raise the cap on the amount Medicaid
11	certified assisted living and adult supportive home care providers are permitted to charge
12	participating beneficiaries for room and board. In the first year of the program, the monthly
13	charges for a beneficiary living in a single room who has income at or below three hundred
14	percent (300%) of the Supplemental Security Income (SSI) level shall not exceed the total of both
15	the maximum monthly federal SSI payment and the monthly state supplement authorized for
16	persons requiring long-term services under § 40-6-27.2(a)(1)(vi), less the specified personal need
17	allowance. For a beneficiary living in a double room, the room and board cap shall be set at
18	eighty-five percent (85%) of the monthly charge allowed for a beneficiary living in a single room.
19	(c) Program cost-effectiveness. The total cost to the state for providing the state
20	supplement and Medicaid-funded services and supports to beneficiaries participating in the
21	program in the initial year of implementation shall not exceed the cost for providing Medicaid-
22	funded services to the same number of beneficiaries with similar acuity needs in an institutional
23	setting in the initial year of the operations. The program shall be terminated if the executive
24	office determines that the program has not met this target. The State shall expand access to the
25	program to qualified beneficiaries who opt out of an LTSS arrangement, in accordance with §40-
26	8.13-2, or are required to enroll in an alternative, successor, or substitute program, or delivery
27	option designated for such purposes by the Secretary of the Executive Office of Health and
28	Human Services if the enrollment in an LTSS plan is no longer an option.
29	SECTION 7. Section 40.1-22-13 of the General Laws in Chapter 40.1-22 entitled
30	"Developmental Disabilities" is hereby amended to read as follows:
31	40.1-22-13. Visits.
32	No public or private developmental disabilities facility shall restrict the visiting of a
33	client by anyone at any time of the day or night; however, in special circumstances when the
34	client is ill or incapacitated and a visit would not be in his or her best interest, visitation may be
	LC000763 - Page 400 of 541
1	restricted temporarily during the illness or incapacity when documented in the client’s
2	individualized program plan, as defined in §40.1-21-4.3(7) of the general laws.
3	SECTION 8. Section 40.1-26-3 of the General Laws in Chapter 40.1-26 entitled "Rights
4	for Persons with Developmental Disabilities" is hereby amended to read as follows:
5	40.1-26-3. Participants' rights.
6	In addition to any other rights provided by state or federal laws, a participant as defined
7	in this chapter shall be entitled to the following rights:
8	(1) To be treated with dignity, respect for privacy and have the right to a safe and
9	supportive environment;
10	(2) To be free from verbal and physical abuse;
11	(3)(i) To engage in any activity including employment, appropriate to his or her age, and
12	interests in the most integrated community setting;
13	(ii) No participant shall be required to perform labor, which involves the essential
14	operation and maintenance of the agency or the regular supervision or care of other participants.
15	Participants may however, be requested to perform labor involving normal housekeeping and
16	home maintenance functions if such responsibilities are documented in the participant's
17	individualized plan;
18	(4) To participate in the development of his or her individualized plan and to provide
19	informed consent to its implementation or to have an advocate provide informed consent if the
20	participant is not competent to do so;
21	(5) To have access to his or her individualized plan and other medical, social, financial,
22	vocational, psychiatric, or other information included in the file maintained by the agency;
23	(6) To give written informed consent prior to the imposition of any plan designed to
24	modify behavior, including those which utilizes aversive techniques or impairs the participant's
25	liberty or to have an advocate provide written informed consent if the participant is not competent
26	to do so. Provided, however, that if the participant is competent to provide consent but cannot
27	provide written consent, the agency shall accept an alternate form of consent and document in the
28	participant's record how such consent was obtained;
29	(7) To register a complaint regarding an alleged violation of rights through the grievance
30	procedure delineated in § 40.1-26-5;
31	(8) To be free from unnecessary restraint. Restraints shall not be employed as
32	punishment, for the convenience of the staff, or as a substitute for an individualized plan.
33	Restraints shall impose the least possible restrictions consistent with their purpose and shall be
34	removed when the emergency ends. Restraints shall not cause physical injury to the participant
	LC000763 - Page 401 of 541
1	and shall be designed to allow the greatest possible comfort. Restraints shall be subject to the
2	following conditions:
3	(i) Physical restraint shall be employed only in emergencies to protect the participant or
4	others from imminent injury or when prescribed by a physician, when necessary, during the
5	conduct of a specific medical or surgical procedure or if necessary for participant protection
6	during the time that a medical condition exists;
7	(ii) Chemical restraint shall only be used when prescribed by a physician in extreme
8	emergencies in which physical restraint is not possible and the harmful effects of the emergency
9	clearly outweigh the potential harmful effects of the chemical restraints;
10	(iii) No participant shall be placed in seclusion;
11	(iv) The agency shall have a written policy that defines the use of restraints, the staff
12	members who may authorize their use, and a mechanism for monitoring and controlling their use;
13	(v) All orders for restraint as well as the required frequency of staff observation of the
14	participant shall be written;
15	(9) To have reasonable, at any time, access to telephone communication;
16	(10) To receive visitors of a participant's choosing at all reasonable hours any time;
17	(11) To keep and be allowed to spend a reasonable amount of one's own money;
18	(12) To be provided advance written notice explaining the reason(s) why the participant
19	is no longer eligible for service from the agency;
20	(13) To religious freedom and practice;
21	(14) To communicate by sealed mail or otherwise with persons of one's choosing;
22	(15) To select and wear one's own clothing and to keep and use one's own personal
23	possessions;
24	(16) To have reasonable, prompt access to current newspapers, magazines and radio and
25	television programming;
26	(17) To have opportunities for physical exercise and outdoor recreation;
27	(18)(i) To provide informed consent prior to the imposition of any invasive medical
28	treatment including any surgical procedure or to have a legal guardian, or in the absence of a legal
29	guardian, a relative as defined in this chapter, provide informed consent if the participant is not
30	competent to do so. Information upon which a participant shall make necessary treatment and/or
31	surgery decisions shall be presented to the participant in a manner consistent with his or her
32	learning style and shall include, but not be limited to:
33	(A) The nature and consequences of the procedure(s);
34	(B) The risks, benefits and purpose of the procedure(s); and
	LC000763 - Page 402 of 541
1	(C) Alternate procedures available;
2	(ii) The informed consent of a participant or his or her legal guardian or, in the absence of
3	a legal guardian, a relative as defined in this chapter, may be withdrawn at any time, with or
4	without cause, prior to treatment. The absence of informed consent notwithstanding, a licensed
5	and qualified physician may render emergency medical care or treatment to any participant who
6	has been injured or who is suffering from an acute illness, disease, or condition if, within a
7	reasonable degree of medical certainty, delay in initiation of emergency medical care or treatment
8	would endanger the health of the participant;
9	(19) Each participant shall have a central record. The record shall include data pertaining
10	to admissions and such other information as may be required under regulations by the
11	department;
12	(20) Admissions -- As part of the procedure for the admission of a participant to an
13	agency, each participant or applicant, or advocate if the participant or applicant is not competent,
14	shall be fully informed, orally and in writing, of all rules, regulations, and policies governing
15	participant conduct and responsibilities, including grounds for dismissal, procedures for
16	discharge, and all anticipated financial charges, including all costs not covered under federal
17	and/or state programs, by other third party payors or by the agency's basic per diem rate. The
18	written notice shall include information regarding the participant's or applicant's right to appeal
19	the admission or dismissal decisions of the agency;
20	(21) Upon termination of services to or death of a participant, a final accounting shall be
21	made of all personal effects and/or money belonging to the participant held by the agency. All
22	personal effects and/or money including interest shall be promptly released to the participant or
23	his or her heirs;
24	(22) Nothing in this chapter shall preclude intervention in the form of appropriate and
25	reasonable restraint should it be necessary to protect individuals from physical injury to
26	themselves or others.
27	SECTION 9. Section 42-12.4-7 of the General Laws in Chapter 42-12.4 entitled "The
28	Rhode Island Medicaid Reform Act of 2008" is hereby amended to read as follows:
29	42-12.4-7. Demonstration implementation -- Restrictions.
30	The executive office of health and human services and the department of human services
31	may implement the global consumer choice section 1115 demonstration ("the demonstration"),
32	project number 11W-00242/1, subject to the following restrictions:
33	(1) Notwithstanding the provisions of the demonstration, any change that requires the
34	implementation of a rule or regulation or modification of a rule or regulation in existence prior to
	LC000763 - Page 403 of 541
1	the demonstration shall require prior approval of the general assembly;
2	(2) Notwithstanding the provisions of the demonstration, any Category II change or
3	Category III change formal waiver amendments, as defined in the demonstration, shall require the
4	prior approval of the general assembly.
5	SECTION 10. Section 42-14.6-4 of the General Laws in Chapter 42-14.6 entitled "Rhode
6	Island All-Payer Patient-Centered Medical Home Act" is hereby amended to read as follows:
7	42-14.6-4. Promotion of the patient-centered medical home.
8	(a) Care coordination payments.
9	(1) The commissioner and the secretary shall convene a patient-centered medical home
10	collaborative consisting of the entities described in subdivision 42-14.6-3(7). The commissioner
11	shall require participation in the collaborative by all of the health insurers described above. The
12	collaborative shall propose, by January 1, 2012, a payment system, to be adopted in whole or in
13	part by the commissioner and the secretary, that requires all health insurers to make per-person
14	care coordination payments to patient-centered medical homes, for providing care coordination
15	services and directly managing on-site or employing care coordinators as part of all health
16	insurance plans offered in Rhode Island. The collaborative shall provide guidance to the state
17	health-care program as to the appropriate payment system for the state health-care program to the
18	same patient-centered medical homes; the state health-care program must justify the reasons for
19	any departure from this guidance to the collaborative.
20	(2) The care coordination payments under this shall be consistent across insurers and
21	patient-centered medical homes and shall be in addition to any other incentive payments such as
22	quality incentive payments. In developing the criteria for care coordination payments, the
23	commissioner shall consider the feasibility of including the additional time and resources needed
24	by patients with limited English-language skills, cultural differences, or other barriers to health
25	care. The commissioner may direct the collaborative to determine a schedule for phasing in care
26	coordination fees.
27	(3) The care coordination payment system shall be in place through July 1, 2016. Its
28	continuation beyond that point shall depend on results of the evaluation reports filed pursuant to §
29	42-14.6-6.
30	(4)(3) Examination of other payment reforms. By January 1, 2013, the commissioner and
31	the The secretary shall direct the collaborative to consider additional payment reforms to be
32	implemented to support patient-centered medical homes including, but not limited to, payment
33	structures (to medical home or other providers) that:
34	(i) Reward high-quality, low-cost providers;
	LC000763 - Page 404 of 541
1	(ii) Create enrollee incentives to receive care from high-quality, low-cost providers;
2	(iii) Foster collaboration among providers to reduce cost shifting from one part of the
3	health continuum to another; and
4	(iv) Create incentives that health care be provided in the least restrictive, most
5	appropriate setting.
6	(v) Constitute alternatives to fee for service payment, such as partial and full capitation.
7	(5)(4) The patient-centered medical home collaborative shall examine and make
8	recommendations to the secretary regarding the designation of patient-centered medical homes, in
9	order to promote diversity in the size of practices designated, geographic locations of practices
10	designated and accessibility of the population throughout the state to patient-centered medical
11	homes.
12	(b) The patient-centered medical home collaborative shall propose to the secretary for
13	adoption, standards for the patient-centered medical home to be used in the payment system. In
14	developing these standards, the existing standards by the national committee for quality
15	assurance, or other independent accrediting organizations may be considered where feasible.
16	SECTION 11. Section 15 of Article 5 of Chapter 141 of the Public Laws of 2015 is
17	hereby repealed.
18	A pool is hereby established of up to $4.0 million to support Medicaid Graduate
19	Education funding for Academic Medical Centers who provide care to the state’s critically ill and
20	indigent populations. The office of Health and Human Services shall utilize this pool to provide
21	up to $5 million per year in additional Medicaid payments to support Graduate Medical
22	Education programs to hospitals meeting all of the following criteria:
23	(a) Hospital must have a minimum of 25,000 inpatient discharges per year for all patients
24	regardless of coverage.
25	(b) Hospital must be designated as Level I Trauma Center.
26	(c) Hospital must provide graduate medical education training for at least 250 interns and
27	residents per year.
28	The Secretary of the Executive Office of Health and Human Services shall determine the
29	appropriate Medicaid payment mechanism to implement this program and amend any state plan
30	documents required to implement the payments.
31	Payments for Graduate Medical Education programs shall be made annually.
32	SECTION 12. Effective Date. Section of this article shall take effect October 1, 2019.
33	The remaining sections of this article shall take effect upon passage.
34	ARTICLE 17
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1	RELATING TO MEDICAID REFORM ACT OF 2008 RESOLUTION
2	SECTION 1. Rhode Island Medicaid Reform Act of 2008 Resolution.
3	WHEREAS, , the General Assembly enacted Chapter 12.4 of Title 42 entitled “The
4	Rhode Island Medicaid Reform Act of 2008”; and
5	WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws
6	42-12.4-1, et seq.; and
7	WHEREAS, Rhode Island General Law 42-7.2-5(3)(a) provides that the Secretary of the
8	Executive Office of Health and Human Services (“Executive Office”) is responsible for the
9	review and coordination of any Rhode Island’s Medicaid section 1115 demonstration waiver
10	requests and renewals as well as any initiatives and proposals requiring amendments to the
11	Medicaid state plan or changes as described in the demonstration, “with potential to affect the
12	scope, amount, or duration of publicly-funded health care services, provider payments or
13	reimbursements, or access to or the availability of benefits and services provided by Rhode Island
14	general and public laws”; and
15	WHEREAS, in pursuit of a more cost-effective consumer choice system of care that is
16	fiscally sound and sustainable, the Secretary of the Executive Office requests legislative approval
17	of the following proposals to amend the Rhode Island’s Medicaid section 1115 demonstration:
18	(a) Provider rates – Adjustments. The Executive Office proposes to:
19	(i) reduce in-patient and out-patient hospital payment rates by maintaining state fiscal
20	year 2019 levels;
21	(ii) increase nursing home rates by one percent (1%) on October 1, 2019;
22	(iii) establish, effective July 1, 2019, that the rate for hospice providers delivering hospice
23	care in a skilled nursing facility will not exceed ninety-five percent (95%) of the rate paid for
24	non-hospice care in a skilled nursing facility; and
25	(iv) reduce the rates for Medicaid managed care plan.
26	Implementation of adjustments may require amendments to the Rhode Island’s Medicaid
27	state plan and/or section 1115 demonstration waiver under applicable terms and conditions.
28	Further, adoption of new or amended rules, regulations and procedures may also be required.
29	(b) Fiscal Intermediary for Self-Direction Programs. The Executive Office proposes
30	to seek a waiver of freedom of choice of providers under Title XIX of the Social Security Act, as
31	amended, to utilize one fiscal intermediary for the Medicaid self-direction programs currently
32	being implemented by the state. Authority for the waiver requires amendments to the Rhode
33	Island’s Section 1115 demonstration waiver and may also necessitate the adoption of new or
34	amended rules, regulations and procedures.
	LC000763 - Page 406 of 541
1	(c) Expansion of Home and Community Care Co-Pay Program. The Executive
2	Office, in conjunction with the Division of Elderly Affairs, proposes to implement the authorities
3	approved under the section 1115 waiver demonstration to increase the maximum income limit for
4	all co-pay program eligibility from two hundred percent (200%) of the Federal Poverty Level to
5	two hundred and fifty percent (250%) of the Federal Poverty Level. Implementation of these
6	waiver authorities requires adoption of new or amended rules, regulations and procedures.
7	(d) Increase in the Department of Behavioral Healthcare, Developmental Disabilities
8	and Hospitals (BHDDH) Direct Care Service Workers Wages. To further the long-term care
9	system rebalancing goal of improving access to high quality services in the least restrictive
10	setting, the Executive Office proposes to establish a targeted wage increase for certain
11	community-based BHDDH developmental disability private providers and self-directed consumer
12	direct care service workers. Implementation of the program may require amendments to the
13	Medicaid State Plan and/or Section 1115 demonstration waiver due to changes in payment
14	methodologies.
15	(e) Federal Financing Opportunities. The Executive Office proposes to review
16	Medicaid requirements and opportunities under the U.S. Patient Protection and Affordable Care
17	Act of 2010, as amended, and various other recently enacted federal laws and pursue any changes
18	in the Rhode Island Medicaid program that promote service quality, access and cost-effectiveness
19	that may warrant a Medicaid state plan amendment or amendment under the terms and conditions
20	of Rhode Island’s section 1115 waiver, its successor, or any extension thereof. Any such actions
21	by the Executive Office shall not have an adverse impact on beneficiaries and shall not cause an
22	increase in expenditures beyond the amount appropriated for state fiscal year 2020.
23	Now, therefore, be it
24	RESOLVED, the General Assembly hereby approves the proposals under paragraphs (a)
25	through (e) above; and be it further;
26	RESOLVED, the Secretary of the Executive Office is authorized to pursue and
27	implement any Rhode Island’s Medicaid section 1115 demonstration waiver amendments,
28	Medicaid state plan amendments, and/or changes to the applicable department’s rules, regulations
29	and procedures approved herein and as authorized by 42-12.4; and be it further
30	RESOLVED, that this Joint Resolution shall take effect upon passage.
31	ARTICLE 18
32	RELATING TO HOSPITAL UNCOMPENSATED CARE
33	SECTION 1. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3
34	entitled "Uncompensated Care" are hereby amended to read as follows:
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1	40-8.3-2. Definitions.
2	As used in this chapter:
3	(1) "Base year" means, for the purpose of calculating a disproportionate share payment
4	for any fiscal year ending after September 30, 2017 2018, the period from October 1, 2015 2016,
5	through September 30, 2016 2017, and for any fiscal year ending after September 30, 2018 2019,
6	the period from October 1, 2016, through September 30, 2017.
7	(2) "Medicaid inpatient utilization rate for a hospital" means a fraction (expressed as a
8	percentage), the numerator of which is the hospital's number of inpatient days during the base
9	year attributable to patients who were eligible for medical assistance during the base year and the
10	denominator of which is the total number of the hospital's inpatient days in the base year.
11	(3) "Participating hospital" means any nongovernment and nonpsychiatric hospital that:
12	(i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base
13	year and shall mean the actual facilities and buildings in existence in Rhode Island, licensed
14	pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that
15	license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital
16	conversions) and § 23-17-6(b) (change in effective control), that provides short-term, acute
17	inpatient and/or outpatient care to persons who require definitive diagnosis and treatment for
18	injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated
19	Medicaid managed-care payment rates for a court-approved purchaser that acquires a hospital
20	through receivership, special mastership, or other similar state insolvency proceedings (which
21	court-approved purchaser is issued a hospital license after January 1, 2013) shall be based upon
22	the newly negotiated rates between the court-approved purchaser and the health plan, and such
23	rates shall be effective as of the date that the court-approved purchaser and the health plan
24	execute the initial agreement containing the newly negotiated rate. The rate-setting methodology
25	for inpatient hospital payments and outpatient hospital payments set forth in §§ 40-8-
26	13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases
27	for each annual twelve-month (12) period as of July 1 following the completion of the first full
28	year of the court-approved purchaser's initial Medicaid managed-care contract;
29	(ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)
30	during the base year; and
31	(iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during
32	the payment year.
33	(4) "Uncompensated-care costs" means, as to any hospital, the sum of: (i) The cost
34	incurred by such hospital during the base year for inpatient or outpatient services attributable to
	LC000763 - Page 408 of 541
1	charity care (free care and bad debts) for which the patient has no health insurance or other third-
2	party coverage less payments, if any, received directly from such patients; and (ii) The cost
3	incurred by such hospital during the base year for inpatient or out-patient services attributable to
4	Medicaid beneficiaries less any Medicaid reimbursement received therefor; multiplied by the
5	uncompensated care index.
6	(5) "Uncompensated-care index" means the annual percentage increase for hospitals
7	established pursuant to § 27-19-14 for each year after the base year, up to and including the
8	payment year; provided, however, that the uncompensated-care index for the payment year
9	ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent
10	(5.38%), and that the uncompensated-care index for the payment year ending September 30,
11	2008, shall be deemed to be five and forty-seven hundredths percent (5.47%), and that the
12	uncompensated-care index for the payment year ending September 30, 2009, shall be deemed to
13	be five and thirty-eight hundredths percent (5.38%), and that the uncompensated-care index for
14	the payment years ending September 30, 2010, September 30, 2011, September 30, 2012,
15	September 30, 2013, September 30, 2014, September 30, 2015, September 30, 2016, September
16	30, 2017, and September 30, 2018, September 30, 2019, and September 30, 2020 shall be deemed
17	to be five and thirty hundredths percent (5.30%).
18	40-8.3-3. Implementation.
19	(a) For federal fiscal year 2017, commencing on October 1, 2016, and ending September
20	30, 2017, the executive office of health and human services shall submit to the Secretary of the
21	U.S. Department of Health and Human Services a state plan amendment to the Rhode Island
22	Medicaid DSH Plan to provide:
23	(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of
24	$139.7 million, shall be allocated by the executive office of health and human services to the Pool
25	D component of the DSH Plan; and
26	(2) That the Pool D allotment shall be distributed among the participating hospitals in
27	direct proportion to the individual, participating hospital's uncompensated-care costs for the base
28	year, inflated by the uncompensated-care index to the total uncompensated-care costs for the base
29	year inflated by uncompensated-care index for all participating hospitals. The disproportionate-
30	share payments shall be made on or before July 11, 2017, and are expressly conditioned upon
31	approval on or before July 5, 2017, by the Secretary of the U.S. Department of Health and Human
32	Services, or his or her authorized representative, of all Medicaid state plan amendments necessary
33	to secure for the state the benefit of federal financial participation in federal fiscal year 2017 for
34	the disproportionate share payments.
	LC000763 - Page 409 of 541
1	(b)(a) For federal fiscal year 2018, commencing on October 1, 2017, and ending
2	September 30, 2018, the executive office of health and human services shall submit to the
3	Secretary of the U.S. Department of Health and Human Services a state plan amendment to the
4	Rhode Island Medicaid DSH Plan to provide:
5	(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of
6	$138.6 million, shall be allocated by the executive office of health and human services to the Pool
7	D component of the DSH Plan; and
8	(2) That the Pool D allotment shall be distributed among the participating hospitals in
9	direct proportion to the individual participating hospital's uncompensated care costs for the base
10	year, inflated by the uncompensated care index to the total uncompensated care costs for the base
11	year inflated by uncompensated care index for all participating hospitals. The disproportionate
12	share payments shall be made on or before July 10, 2018, and are expressly conditioned upon
13	approval on or before July 5, 2018, by the Secretary of the U.S. Department of Health and Human
14	Services, or his or her authorized representative, of all Medicaid state plan amendments necessary
15	to secure for the state the benefit of federal financial participation in federal fiscal year 2018 for
16	the disproportionate share payments.
17	(c)(b) For federal fiscal year 2019, commencing on October 1, 2018, and ending
18	September 30, 2019, the executive office of health and human services shall submit to the
19	Secretary of the U.S. Department of Health and Human Services a state plan amendment to the
20	Rhode Island Medicaid DSH Plan to provide:
21	(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of
22	$139.7 million, shall be allocated by the executive office of health and human services to the Pool
23	D component of the DSH Plan; and
24	(2) That the Pool D allotment shall be distributed among the participating hospitals in
25	direct proportion to the individual participating hospital's uncompensated care costs for the base
26	year, inflated by the uncompensated care index to the total uncompensated care costs for the base
27	year inflated by uncompensated care index for all participating hospitals. The disproportionate
28	share payments shall be made on or before July 10, 2019, and are expressly conditioned upon
29	approval on or before July 5, 2019, by the Secretary of the U.S. Department of Health and Human
30	Services, or his or her authorized representative, of all Medicaid state plan amendments necessary
31	to secure for the state the benefit of federal financial participation in federal fiscal year 2018 2019
32	for the disproportionate share payments.
33	(c) For federal fiscal year 2020, commencing on October 1, 2019, and ending September
34	30, 2020, the executive office of health and human services shall submit to the Secretary of the
	LC000763 - Page 410 of 541
1	U.S. Department of Health and Human Services a state plan amendment to the Rhode Island
2	Medicaid DSH Plan to provide:
3	(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of
4	$139.7 million, shall be allocated by the executive office of health and human services to the Pool
5	D component of the DSH Plan; and
6	(2) That the Pool D allotment shall be distributed among the participating hospitals in
7	direct proportion to the individual participating hospital's uncompensated care costs for the base
8	year, inflated by the uncompensated care index to the total uncompensated care costs for the base
9	year inflated by uncompensated care index for all participating hospitals. The disproportionate
10	share payments shall be made on or before July 13, 2020, and are expressly conditioned upon
11	approval on or before July 6, 2020, by the Secretary of the U.S. Department of Health and Human
12	Services, or his or her authorized representative, of all Medicaid state plan amendments necessary
13	to secure for the state the benefit of federal financial participation in federal fiscal year 2020 for
14	the disproportionate share payments.
15	(d) No provision is made pursuant to this chapter for disproportionate-share hospital
16	payments to participating hospitals for uncompensated-care costs related to graduate medical
17	education programs.
18	(e) The executive office of health and human services is directed, on at least a monthly
19	basis, to collect patient-level uninsured information, including, but not limited to, demographics,
20	services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island.
21	(f) Beginning with federal FY 2016, Pool D DSH payments will be recalculated by the
22	state based on actual hospital experience. The final Pool D payments will be based on the data
23	from the final DSH audit for each federal fiscal year. Pool D DSH payments will be redistributed
24	among the qualifying hospitals in direct proportion to the individual, qualifying hospital's
25	uncompensated-care to the total uncompensated-care costs for all qualifying hospitals as
26	determined by the DSH audit. No hospital will receive an allocation that would incur funds
27	received in excess of audited uncompensated-care costs.
28	SECTION 2. This article shall take effect as of July 1, 2019.
29	ARTICLE 19
30	RELATING TO LICENSING OF HOSPITAL FACILITIES
31	SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled
32	"Licensing of Health-Care Facilities" is hereby amended to read as follows:
33	23-17-38.1. Hospitals -- Licensing fee.
34	(a) There is also imposed a hospital licensing fee at the rate of five and eight hundred
	LC000763 - Page 411 of 541
1	fifty-six thousandths percent (5.856%) upon the net patient-services revenue of every hospital for
2	the hospital's first fiscal year ending on or after January 1, 2016, except that the license fee for all
3	hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent
4	(37%). The discount for Washington County hospitals is subject to approval by the Secretary of
5	the U.S. Department of Health and Human Services of a state plan amendment submitted by the
6	executive office of health and human services for the purpose of pursuing a waiver of the
7	uniformity requirement for the hospital license fee. This licensing fee shall be administered and
8	collected by the tax administrator, division of taxation within the department of revenue, and all
9	the administration, collection, and other provisions of chapter 51 of title 44 shall apply. Every
10	hospital shall pay the licensing fee to the tax administrator on or before July 10, 2018, and
11	payments shall be made by electronic transfer of monies to the general treasurer and deposited to
12	the general fund. Every hospital shall, on or before June 14, 2018, make a return to the tax
13	administrator containing the correct computation of net patient-services revenue for the hospital
14	fiscal year ending September 30, 2016, and the licensing fee due upon that amount. All returns
15	shall be signed by the hospital's authorized representative, subject to the pains and penalties of
16	perjury.
17	(b)(a) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon
18	the net patient-services revenue of every hospital for the hospital's first fiscal year ending on or
19	after January 1, 2017, except that the license fee for all hospitals located in Washington County,
20	Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington
21	County hospitals is subject to approval by the Secretary of the U.S. Department of Health and
22	Human Services of a state plan amendment submitted by the executive office of health and
23	human services for the purpose of pursuing a waiver of the uniformity requirement for the
24	hospital license fee. This licensing fee shall be administered and collected by the tax
25	administrator, division of taxation within the department of revenue, and all the administration,
26	collection, and other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the
27	licensing fee to the tax administrator on or before July 10, 2019, and payments shall be made by
28	electronic transfer of monies to the general treasurer and deposited to the general fund. Every
29	hospital shall, on or before June 14, 2019, make a return to the tax administrator containing the
30	correct computation of net patient-services revenue for the hospital fiscal year ending September
31	30, 2017, and the licensing fee due upon that amount. All returns shall be signed by the hospital's
32	authorized representative, subject to the pains and penalties of perjury.
33	(b) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon the
34	net patient-services revenue of every hospital for the hospital's first fiscal year ending on or after
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1	January 1, 2017, except that the license fee for all hospitals located in Washington County, Rhode
2	Island shall be discounted by thirty-seven percent (37%). The discount for Washington County
3	hospitals is subject to approval by the Secretary of the U.S. Department of Health and Human
4	Services of a state plan amendment submitted by the executive office of health and human
5	services for the purpose of pursuing a waiver of the uniformity requirement for the hospital
6	license fee. This licensing fee shall be administered and collected by the tax administrator,
7	division of taxation within the department of revenue, and all the administration, collection, and
8	other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to
9	the tax administrator on or before July 13, 2020, and payments shall be made by electronic
10	transfer of monies to the general treasurer and deposited to the general fund. Every hospital shall,
11	on or before June 15, 2020, make a return to the tax administrator containing the correct
12	computation of net patient-services revenue for the hospital fiscal year ending September 30,
13	2017, and the licensing fee due upon that amount. All returns shall be signed by the hospital's
14	authorized representative, subject to the pains and penalties of perjury.
15	(c) For purposes of this section the following words and phrases have the following
16	meanings:
17	(1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,
18	licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on
19	that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23
20	(hospital conversions) and § 23-17-6(b) (change in effective control), that provides short-term
21	acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment
22	for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the
23	negotiated Medicaid managed care payment rates for a court-approved purchaser that acquires a
24	hospital through receivership, special mastership, or other similar state insolvency proceedings
25	(which court-approved purchaser is issued a hospital license after January 1, 2013) shall be based
26	upon the newly negotiated rates between the court-approved purchaser and the health plan, and
27	such rates shall be effective as of the date that the court-approved purchaser and the health plan
28	execute the initial agreement containing the newly negotiated rate. The rate-setting methodology
29	for inpatient hospital payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and
30	40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases for each annual
31	twelve-month (12) period as of July 1 following the completion of the first full year of the court-
32	approved purchaser's initial Medicaid managed care contract.
33	(2) "Gross patient-services revenue" means the gross revenue related to patient care
34	services.
	LC000763 - Page 413 of 541
1	(3) "Net patient-services revenue" means the charges related to patient care services less
2	(i) charges attributable to charity care; (ii) bad debt expenses; and (iii) contractual allowances.
3	(d) The tax administrator shall make and promulgate any rules, regulations, and
4	procedures not inconsistent with state law and fiscal procedures that he or she deems necessary
5	for the proper administration of this section and to carry out the provisions, policy, and purposes
6	of this section.
7	(e) The licensing fee imposed by this section shall apply to hospitals as defined herein
8	that are duly licensed on July 1, 2018 2019, and shall be in addition to the inspection fee imposed
9	by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.
10	SECTION 2. This article shall take effect as of July 1, 2019.
11	ARTICLE 20
12	RELATING TO MARIJUANA
13	SECTION 1. Sections 2-26-1, 2-26-3, 2-26-4, 2-26-5, 2-26-6 and 2-26-7 of the General
14	Laws in Chapter 2-26 entitled "Hemp Growth Act" are hereby amended to read as follows:
15	2-26-1. Short title.
16	This chapter shall be known and may be cited as the "Industrial Hemp Growth Act."
17	2-26-3. Definitions.
18	When used in this chapter, the following terms shall have the following meanings:
19	(1) "Applicant" means any person, firm, corporation, or other legal entity who or that, on
20	his, her, or its own behalf, or on behalf of another, has applied for permission to engage in any act
21	or activity that is regulated under the provisions of this chapter.
22	(2) “Cannabis” means all parts of the plant of the genus marijuana, also known as
23	marijuana sativa L, whether growing or not; the seeds thereof; the resin extracted from any
24	part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation
25	of the plant, its seeds, or resin regardless of cannabinoid content or cannabinoid potency
26	including “marijuana” and “industrial hemp” or “industrial hemp products” which satisfy the
27	requirements of this chapter.
28	(3) “Cannabidiol” or “CBD” means cannabidiol (CBD) derived from a hemp plant as
29	defined in § 2-26-3(8), not including products derived from exempt cannabis plant material as
30	defined in 21 C.F.R. § 1308.35.
31	(2) (4) "Department" means the office of cannabis regulation within the department of
32	business regulation.
33	(3) (5) "Division" means the division of agriculture in the department of environmental
34	management.
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1	(4) (6) "Grower" means a person or entity who or that produces hemp for commercial
2	purposes.
3	(5) (7) "Handler" means a person or entity who or that produces hemp for processing into
4	commodities, products, or agricultural hemp seed.
5	(6) (8) "Hemp" or “industrial hemp” means the plant of the genus cannabis and any part
6	of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that
7	does not exceed three-tenths percent (0.3%) on a dry-weight basis of any part of the plant
8	cannabis, or per volume or weight of marijuana product or the combined percent of delta-9
9	tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant cannabis regardless
10	of the moisture content. Hemp is also commonly referred to in this context as "industrial hemp."
11	means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all
12	derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or
13	not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry
14	weight or per volume basis regardless of moisture content, and which satisfies the requirements
15	of this chapter.
16	(9) “Hemp-derived consumable CBD product” means any product meant for ingestion,
17	including but not limited to concentrates, extracts, and cannabis-infused foods and products,
18	which contains cannabidiol derived from a hemp plant as defined in § 2-26-3(8), not including
19	products derived from exempt cannabis plant material as defined in 21 C.F.R. § 1308.35.
20	(7) (10) "Hemp products" or “industrial hemp products” means all products made from
21	the plants, including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, hemp-
22	derived consumable CBD products, paint, paper, construction materials, plastics, seed, seed meal,
23	seed oil, and seed certified for cultivation., which satisfy the requirements of this chapter.
24	(11) “Licensed CBD distributor” means a person licensed to distribute hemp-derived
25	consumable CBD products pursuant to this chapter.
26	(12) “Licensed CBD retailer” means a person licensed to sell hemp-derived consumable
27	CBD products pursuant to this chapter.
28	(8) (13) "THC" means tetrahydrocannabinol, the principal psychoactive constituent of
29	cannabis.
30	(9) (14) "THCA" means tetrahydrocannabinol acid.
31	2-26-4. Hemp an agricultural product.
32	Hemp is an agricultural product that may be grown as a crop, produced, possessed,
33	distributed, sold at retail, and commercially traded pursuant to the provisions of this chapter.
34	Hemp is subject to primary regulation by the department. The division may assist the department
	LC000763 - Page 415 of 541
1	in the regulation of hemp growth and production.
2	2-26-5. Authority over licensing and sales.
3	(a) The department shall promulgate rules and regulations for the licensing and regulation
4	of hemp growers, and handlers, licensed CBD distributors, and licensed CBD retailers and or
5	persons otherwise employed by the applicant and shall be responsible for the enforcement of such
6	licensing and regulation.
7	(b) All growers and handlers, and licensed CBD distributors, and licensed CBD retailers
8	must have a hemp license issued by the department.
9	(c) The application for a hemp license shall include, but not be limited to, the following:
10	(1)(i) The name and address of the applicant who will supervise, manage, or direct the
11	growing and handling of hemp and the names and addresses of any person or entity partnering or
12	providing consulting services regarding the growing or handling of hemp. ; and
13	(ii) The name and address of the applicant who will supervise, manage, or direct the
14	distribution or sale of hemp-derived consumable CBD products, and names and addresses of any
15	person or entity partnering or providing consulting services regarding the distribution or sale of
16	hemp-derived CBD products.
17	(2) A certificate of analysis that the seeds or plants obtained for cultivation are of a type
18	and variety that do not exceed the maximum concentration of delta-9 THC, as set forth in § 2-26-
19	3(8); any seeds that are obtained from a federal agency are presumed not to exceed the maximum
20	concentration and do not require a certificate of analysis.
21	(3)(i) The location of the facility, including the Global Positioning System location, and
22	other field reference information as may be required by the department with a tracking program
23	and security layout to ensure that all hemp grown is tracked and monitored from seed to
24	distribution outlets. ; and
25	(ii) The location of the facility and other information as may be required by the
26	department as to where the distribution or sale of hemp-derived consumable CBD products will
27	occur.
28	(4) An explanation of the seed to sale tracking, cultivation method, extraction method,
29	and certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if
30	required by the department.
31	(5) Verification, prior to planting any seed, that the plant to be grown is of a type and
32	variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of
33	one percent (0.3%) on a dry-weight basis.
34	(6) Documentation that the licensee and/or its agents have entered into a purchase
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1	agreement with a hemp handler or processor, distributor or retailer, if required by the department.
2	(7) All applicants:
3	(i) Shall apply to the state police, attorney general, or local law enforcement for a
4	National Criminal Identification records check that shall include fingerprints submitted to the
5	Federal Bureau of Investigation. Upon the discovery of a disqualifying conviction defined in
6	paragraph (iv) and (v), and in accordance with the rules promulgated by the department, the state
7	police shall inform the applicant, in writing, of the nature of the conviction, and the state police
8	shall notify the department, in writing, without disclosing the nature of the conviction, that a
9	conviction has been found;
10	(ii) In those situations in which no conviction has been found, the state police shall
11	inform the applicant and the department, in writing, of this fact;
12	(iii) All applicants shall be responsible for any expense associated with the criminal
13	background check with fingerprints.
14	(iv) Any applicant who has been convicted of any felony offense under chapter 28 of title
15	21, or any person who has been convicted of murder, manslaughter, first-degree sexual assault,
16	second-degree sexual assault, first-degree child molestation, second-degree child molestation,
17	kidnapping, first-degree arson, second-degree arson, mayhem, robbery, burglary, breaking and
18	entering, assault with a dangerous weapon, or any assault and battery punishable as a felony or
19	assault with intent to commit any offense punishable as a felony, shall be disqualified from
20	holding any license or permit under this chapter. The department shall notify any applicant, in
21	writing, of for a denial of a license pursuant to this subsection.
22	(v) For purposes of this section, "conviction" means, in addition to judgments of
23	conviction entered by a court subsequent to a finding of guilty, or plea of guilty, those instances
24	where the defendant has entered a plea of nolo contendere and has received a jail sentence or a
25	suspended jail sentence, or those instances wherein the defendant has entered into a deferred
26	sentence agreement with the Rhode Island attorney general and the period of deferment has not
27	been completed.
28	(8) Any other information as set forth in rules and regulations as required by the
29	department.
30	(d) All employees of the applicant shall register with the Rhode Island state police.
31	(e) (d) The department shall issue a hemp license to the grower or handler applicant if he,
32	she, or it meets the requirements of this chapter, upon the applicant paying a licensure fee of two
33	thousand five hundred dollars ($2,500). Said license shall be renewed every two (2) years upon
34	payment of a two thousand five hundred dollar ($2,500) renewal fee. Any licensee convicted of
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1	any disqualifying offense described in subsection (c)(7)(iv) shall have his, her, or its license
2	revoked. All license fees shall be directed to the department to help defray the cost of
3	enforcement. The department shall collect a nonrefundable application fee of two hundred fifty
4	dollars ($250) for each application to obtain a license.
5	(e) Any grower or handler license applicant or license holder may also apply for, and be
6	issued a CBD distributor and/or CBD retailer license at no additional cost provided their grower
7	or handler license is issued or renewed. CBD distributor and CBD retailer licenses shall be
8	renewed each year at no additional fee provided the applicant also holds or renews a grower
9	and/or handler license.
10	(f) For applicants who do not hold, renew, or receive a grower or handler license, CBD
11	handler and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500). Said
12	licenses shall be renewed each year upon approval by the department and payment of a five
13	hundred dollars ($500) renewal fee.
14	2-26-6. Rulemaking authority.
15	(a) The department shall adopt rules to provide for the implementation of this chapter,
16	which shall include rules to require hemp to be tested during growth for THC levels and to
17	require inspection of hemp during sowing, growing season, harvest, storage, and processing.
18	Included in these rules should be a system requiring the licensee to submit crop samples to an
19	approved testing facility, as determined by the department for testing and verification of
20	compliance with the limits on delta-9 THC concentration.
21	(b) The department shall adopt rules and regulations for all operational requirements for
22	licensed growers, handlers, CBD distributors and retailers.
23	(b) (c) The department shall not adopt under this or any other section, a rule that would
24	prohibit a person or entity to grow, or distribute or sell hemp based solely on the legal status of
25	hemp under federal law.
26	(d) The department may adopt rules and regulations based on federal law provided those
27	rules and regulations are designed to comply with federal guidance and mitigate federal
28	enforcement against the licenses issued under this chapter.
29	2-26-7. Registration Licensure.
30	(a) Except as provided in this section, beginning sixty (60) days after the effective date of
31	this chapter, the department shall accept the application for licensure to cultivate hemp submitted
32	by the applicant.
33	(b) A person or entity registered with licensed by the department pursuant to this chapter
34	shall allow hemp crops, throughout sowing, year-long growing seasons, harvest storage, and
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1	processing, to be inspected and tested by and at the discretion of the department.
2	SECTION 2. Chapter 2-26 of the General Laws entitled "Hemp Growth Act" is hereby
3	amended by adding thereto the following Sections 2-26-10; 2-26-11 and 2-26-12:
4	2-26-10. Tax obligations; enforcement.
5	Licensees under this chapter shall comply with provisions of chapter 44-49.1 of the
6	general laws, and upon the failure of a licensee to comply with its obligations under chapter 44-
7	49.1 the department may revoke or suspend a license upon the request of the tax administrator.
8	2-26-11. Enforcement of violations of chapter.
9	(a) (1) Notwithstanding any other provision of this chapter, if the director of the
10	department or his or her designee has cause to believe that a violation of any provision of this
11	chapter 2-26 or any regulations promulgated hereunder has occurred by a licensee that is under
12	the department’s jurisdiction pursuant to this chapter, or that any person or entity is conducting
13	any activities requiring licensure by the department under this chapter or the regulations
14	promulgated hereunder without such licensure, the director or his or her designee may, in
15	accordance with the requirements of the administrative procedures act, chapter 35 of title 42:
16	(i) Revoke or suspend a license;
17	(ii) Levy an administrative penalty in an amount established pursuant to regulations
18	promulgated by the department ;
19	(iii) Order the violator to cease and desist such actions;
20	(iv) Require a licensee or person or entity conducting any activities requiring licensure
21	under this chapter 2-26 to take such actions as are necessary to comply with such chapter and the
22	regulations promulgated thereunder; or
23	(v) Any combination of the above penalties.
24	(2) If the director of the department finds that public health, safety, or welfare requires
25	emergency action, and incorporates a finding to that effect in his or her order, summary
26	suspension of license and/or cease and desist may be ordered pending proceedings for revocation
27	or other action. These proceedings shall be promptly instituted and determined.
28	21-26-12. Revenue.
29	There is created within the general fund a restricted receipt account to be known as the
30	“industrial hemp licensing” or “industrial hemp licensing program” account. Fees collected
31	pursuant to this chapter shall be deposited into this account and be used to finance costs of
32	administering this chapter, including but not limited to licensing, inspections, and enforcement.
33	The restricted receipt account will be housed within the budgets of the departments of business
34	regulation, health, revenue and public safety, and the executive office of health and human
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1	services. All amounts deposited into the industrial hemp licensing account shall be exempt from
2	the indirect cost recovery provisions of § 35-4-27.
3	SECTION 3. Section 21-28-1.02 of the General Laws in Chapter 21-28 entitled "Uniform
4	Controlled Substances Act" is hereby amended to read as follows:
5	21-28-1.02. Definitions. [Effective until January 1, 2023.]
6	Unless the context otherwise requires, the words and phrases as defined in this section are
7	used in this chapter in the sense given them in the following definitions:
8	(1) "Administer" refers to the direct application of controlled substances to the body of a
9	patient or research subject by:
10	(i) A practitioner, or, in his or her presence by his or her authorized agent; or
11	(ii) The patient or research subject at the direction and in the presence of the practitioner
12	whether the application is by injection, inhalation, ingestion, or any other means.
13	(2) "Agent" means an authorized person who acts on behalf of, or at the direction of, a
14	manufacturer, wholesaler, distributor, or dispenser; except that these terms do not include a
15	common or contract carrier or warehouse operator, when acting in the usual and lawful course of
16	the carrier's or warehouse operator's business.
17	(3) "Apothecary" means a registered pharmacist as defined by the laws of this state and,
18	where the context requires, the owner of a licensed pharmacy or other place of business where
19	controlled substances are compounded or dispensed by a registered pharmacist; and includes
20	registered assistant pharmacists as defined by existing law, but nothing in this chapter shall be
21	construed as conferring on a person who is not registered as a pharmacist any authority, right, or
22	privilege that is not granted to him or her by the pharmacy laws of the state.
23	(4) "Automated data processing system" means a system utilizing computer software and
24	hardware for the purposes of record keeping.
25	(5) "Certified law enforcement prescription drug diversion investigator" means a certified
26	law enforcement officer assigned by his or her qualified law enforcement agency to investigate
27	prescription drug diversion.
28	(6) "Computer" means programmable electronic device capable of multi-functions,
29	including, but not limited to: storage, retrieval, and processing of information.
30	(7) "Control" means to add a drug or other substance or immediate precursor to a
31	schedule under this chapter, whether by transfer from another schedule or otherwise.
32	(8) "Controlled substance" means a drug, substance, immediate precursor, or synthetic
33	drug in schedules I -- V of this chapter. The term shall not include distilled spirits, wine, or malt
34	beverages, as those terms are defined or used in chapter 1 of title 3, nor tobacco.
	LC000763 - Page 420 of 541
1	(9) "Co-prescribing" means issuing a prescription for an opioid antagonist along with a
2	prescription for an opioid analgesic.
3	(10) "Counterfeit substance" means a controlled substance that, or the container or
4	labeling of which, without authorization bears the trademark, trade name, or other identifying
5	mark, imprint, number, or device, or any likeness of them, of a manufacturer, distributor, or
6	dispenser, other than the person or persons who in fact manufactured, distributed, or dispensed
7	the substance and that thereby falsely purports or is represented to be the product of, or to have
8	been distributed by, the other manufacturer, distributor, or dispenser, or which substance is
9	falsely purported to be or represented to be one of the controlled substances by a manufacturer,
10	distributor, or dispenser.
11	(11) "CRT" means cathode ray tube used to impose visual information on a screen.
12	(12) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a
13	controlled substance or imitation controlled substance, whether or not there exists an agency
14	relationship.
15	(13) "Department" means the department of health of this state.
16	(14) "Depressant or stimulant drug" means:
17	(i) A drug that contains any quantity of:
18	(A) Barbituric acid or derivatives, compounds, mixtures, or preparations of barbituric
19	acid; and
20	(B) "Barbiturate" or "barbiturates" includes all hypnotic and/or somnifacient drugs,
21	whether or not derivatives of barbituric acid, except that this definition shall not include bromides
22	and narcotics.
23	(ii) A drug that contains any quantity of:
24	(A) Amphetamine or any of its optical isomers;
25	(B) Any salt of amphetamine and/or desoxyephedrine or any salt of an optical isomer of
26	amphetamine and/or desoxyephedrine, or any compound, mixture, or preparation of them.
27	(iii) A drug that contains any quantity of coca leaves. "Coca leaves" includes cocaine, or
28	any compound, manufacture, salt, derivative, mixture, or preparation of coca leaves, except
29	derivatives of coca leaves, that do not contain cocaine, ecgonine, or substance from which
30	cocaine or ecgonine may be synthesized or made.
31	(iv) Any other drug or substance that contains any quantity of a substance that the
32	attorney general of the United States, or the director of health, after investigation, has found to
33	have, or by regulation designates as having, a potential for abuse because of its depressant or
34	stimulant effect on the central nervous system.
	LC000763 - Page 421 of 541
1	(15) "Director" means the director of health.
2	(16) "Dispense" means to deliver, distribute, leave with, give away, or dispose of a
3	controlled substance to the ultimate user or human research subject by or pursuant to the lawful
4	order of a practitioner, including the packaging, labeling, or compounding necessary to prepare
5	the substance for that delivery.
6	(17) "Dispenser" is a practitioner who delivers a controlled substance to the ultimate user
7	or human research subject.
8	(18) "Distribute" means to deliver (other than by administering or dispensing) a
9	controlled substance or an imitation controlled substance and includes actual constructive, or
10	attempted transfer. "Distributor" means a person who so delivers a controlled substance or an
11	imitation controlled substance.
12	(19) "Downtime" means that period of time when a computer is not operable.
13	(20) "Drug addicted person" means a person who exhibits a maladaptive pattern of
14	behavior resulting from drug use, including one or more of the following: impaired control over
15	drug use; compulsive use; and/or continued use despite harm, and craving.
16	(21) "Drug Enforcement Administration" means the Drug Enforcement Administration
17	United States Department of Justice or its successor.
18	(22) "Federal law" means the Comprehensive Drug Abuse Prevention and Control Act of
19	1970, (84 stat. 1236) (see generally 21 U.S.C. § 801 et seq.), and all regulations pertaining to that
20	federal act.
21	(23) "Hardware" means the fixed component parts of a computer.
22	(24) "Hospital" means an institution as defined in chapter 17 of title 23.
23	(25) "Imitation controlled substance" means a substance that is not a controlled
24	substance, that by dosage unit, appearance (including color, shape, size, and markings), or by
25	representations made, would lead a reasonable person to believe that the substance is a controlled
26	substance and, which imitation controlled substances contain substances that if ingested, could be
27	injurious to the health of a person. In those cases when the appearance of the dosage unit is not
28	reasonably sufficient to establish that the substance is an "imitation controlled substance" (for
29	example in the case of powder or liquid), the court or authority concerned should consider, in
30	addition to all other logically relevant factors, the following factors as related to "representations
31	made" in determining whether the substance is an "imitation controlled substance":
32	(i) Statement made by an owner, possessor, transferor, recipient, or by anyone else in
33	control of the substance concerning the nature of the substance, or its use or effect.
34	(ii) Statements made by the owner, possessor, or transferor, to the recipient that the
	LC000763 - Page 422 of 541
1	substance may be resold for substantial profit.
2	(iii) Whether the substance is packaged in a manner reasonably similar to packaging of
3	illicit controlled substances.
4	(iv) Whether the distribution or attempted distribution included an exchange of or
5	demand for money or other property as consideration, and whether the amount of the
6	consideration was substantially greater than the reasonable value of the non-controlled substance.
7	(26) "Immediate precursor" means a substance:
8	(i) That the director of health has found to be and by regulation designated as being the
9	principal compound used, or produced primarily for use, in the manufacture of a controlled
10	substance;
11	(ii) That is an immediate chemical intermediary used or likely to be used in the
12	manufacture of those controlled substances; and
13	(iii) The control of which is necessary to prevent, curtail, or limit the manufacture of that
14	controlled substance.
15	(27) "Laboratory" means a laboratory approved by the department of health as proper to
16	be entrusted with controlled substances and the use of controlled substances for scientific and
17	medical purposes and for the purposes of instruction.
18	(28) "Manufacture" means the production, preparation, propagation, cultivation,
19	compounding, or processing of a drug or other substance, including an imitation controlled
20	substance, either directly or indirectly or by extraction from substances of natural origin, or
21	independently by means of chemical synthesis or by a combination of extraction and chemical
22	synthesis and includes any packaging or repackaging of the substance or labeling or relabeling of
23	its container in conformity with the general laws of this state except by a practitioner as an
24	incident to his or her administration or dispensing of the drug or substance in the course of his or
25	her professional practice.
26	(29) "Manufacturer" means a person who manufactures but does not include an
27	apothecary who compounds controlled substances to be sold or dispensed on prescriptions.
28	(30) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
29	the seeds of the plant; the resin extracted from any part of the plant; and every compound,
30	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not
31	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
32	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
33	mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the
34	plant which is incapable of germination. Marijuana shall not include “industrial hemp” or”
	LC000763 - Page 423 of 541
1	industrial hemp products” which satisfy the requirements of chapter 2-26 of the general laws and
2	the regulations promulgated thereunder.
3	(31) "Narcotic drug" means any of the following, whether produced directly or indirectly
4	by extraction from substances of vegetable origin, or independently by means of chemical
5	synthesis or by a combination of extraction and chemical synthesis:
6	(i) Opium and opiates.
7	(ii) A compound, manufacture, salt, derivative, or preparation of opium or opiates.
8	(iii) A substance (and any compound, manufacture, salt, derivative, or preparation of it)
9	that is chemically identical with any of the substances referred to in paragraphs (i) and (ii) of this
10	subdivision.
11	(iv) Any other substance that the attorney general of the United States, or his or her
12	successor, or the director of health, after investigation, has found to have, and by regulation
13	designates as having, a potential for abuse similar to opium and opiates.
14	(32) "Official written order" means an order written on a form provided for that purpose
15	by the Drug Enforcement Administration under any laws of the United States making provision
16	for an official form, if order forms are authorized and required by federal law, and if no order
17	form is provided then on an official form provided for that purpose by the director of health.
18	(33) "Opiate" means any substance having an addiction-forming or addiction-sustaining
19	liability similar to morphine or being capable of conversion into a drug having addiction-forming
20	or addiction-sustaining liability.
21	(34) "Opioid analgesics" means and includes, but is not limited to, the medicines
22	buprenophine, butorphanol, codeine, hydrocodone, hydromorphone, levorphanol, meperidine,
23	methadone, morphine, nalbuphine, oxycodone, oxymorphone, pentazocine, propoxyphene as well
24	as their brand names, isomers, and combinations, or other medications approved by the
25	department.
26	(35) "Opioid antagonist" means naloxone hydrochloride and any other drug approved by
27	the United States Food and Drug Administration for the treatment of opioid overdose.
28	(36) "Opium poppy" means the plant of the species papaver somniferum L., except the
29	seeds of the plant.
30	(37) "Ounce" means an avoirdupois ounce as applied to solids and semi-solids, and a
31	fluid ounce as applied to liquids.
32	(38) "Person" means any corporation, association, partnership, or one or more
33	individuals.
34	(39) "Physical dependence" means a state of adaptation that is manifested by a drug class
	LC000763 - Page 424 of 541
1	specific withdrawal syndrome that can be produced by abrupt cessation, rapid dose reduction,
2	decreasing blood level of the drug, and/or administration of an antagonist.
3	(40) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.
4	(41) "Practitioner" means:
5	(i) A physician, osteopath, dentist, chiropodist, veterinarian, scientific investigator, or
6	other person licensed, registered or permitted to distribute, dispense, conduct research with
7	respect to or to administer a controlled substance in the course of professional practice or research
8	in this state.
9	(ii) A pharmacy, hospital, or other institution licensed, registered or permitted to
10	distribute, dispense, conduct research with respect to, or to administer a controlled substance in
11	the course of professional practice or research in this state.
12	(42) "Printout" means a hard copy produced by computer that is readable without the aid
13	of any special device.
14	(43) "Production" includes the manufacture, planting, cultivation, growing, or harvesting
15	of a controlled substance.
16	(44) "Qualified law enforcement agency" means the U.S. Food and Drug Administration,
17	Drug Enforcement Administration, Federal Bureau of Investigation, Office of Inspector General
18	of the U.S. Department of Health & Human Services, or the Medicaid Fraud and Patient Abuse
19	Unit in the Office of the Attorney General.
20	(45) "Researcher" means a person authorized by the director of health to conduct a
21	laboratory as defined in this chapter.
22	(46) "Sell" includes sale, barter, gift, transfer, or delivery in any manner to another, or to
23	offer or agree to do the same.
24	(47) "Software" means programs, procedures and storage of required information data.
25	(48) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic
26	cathinones as provided for in schedule I.
27	(49) "Ultimate user" means a person who lawfully possesses a controlled substance for
28	his or her own use or for the use of a member of his or her household, or for administering to an
29	animal owned by him or her or by a member of his or her household.
30	(50) "Wholesaler" means a person who sells, vends, or distributes at wholesale, or as a
31	jobber, broker agent, or distributor, or for resale in any manner in this state any controlled
32	substance.
33	21-28-1.02. Definitions. [Effective January 1, 2023.]
34	Unless the context otherwise requires, the words and phrases as defined in this section are
	LC000763 - Page 425 of 541
1	used in this chapter in the sense given them in the following definitions:
2	(1) "Administer" refers to the direct application of controlled substances to the body of a
3	patient or research subject by:
4	(i) A practitioner, or, in his or her presence by his or her authorized agent; or
5	(ii) The patient or research subject at the direction and in the presence of the practitioner
6	whether the application is by injection, inhalation, ingestion, or any other means.
7	(2) "Agent" means an authorized person who acts on behalf of, or at the direction of, a
8	manufacturer, wholesaler, distributor, or dispenser; except that these terms do not include a
9	common or contract carrier or warehouse operator, when acting in the usual and lawful course of
10	the carrier's or warehouse operator's business.
11	(3) "Apothecary" means a registered pharmacist as defined by the laws of this state and,
12	where the context requires, the owner of a licensed pharmacy or other place of business where
13	controlled substances are compounded or dispensed by a registered pharmacist; and includes
14	registered assistant pharmacists as defined by existing law, but nothing in this chapter shall be
15	construed as conferring on a person who is not registered as a pharmacist any authority, right, or
16	privilege that is not granted to him or her by the pharmacy laws of the state.
17	(4) "Automated data processing system" means a system utilizing computer software and
18	hardware for the purposes of record keeping.
19	(5) "Computer" means programmable electronic device capable of multi-functions,
20	including, but not limited to: storage, retrieval, and processing of information.
21	(6) "Control" means to add a drug or other substance or immediate precursor to a
22	schedule under this chapter, whether by transfer from another schedule or otherwise.
23	(7) "Controlled substance" means a drug, substance, immediate precursor, or synthetic
24	drug in schedules I -- V of this chapter. The term shall not include distilled spirits, wine, or malt
25	beverages, as those terms are defined or used in chapter 1 of title 3, nor tobacco.
26	(8) "Co-prescribing" means issuing a prescription for an opioid antagonist along with a
27	prescription for an opioid analgesic.
28	(9) "Counterfeit substance" means a controlled substance that, or the container or labeling
29	of which, without authorization bears the trademark, trade name, or other identifying mark,
30	imprint, number, or device, or any likeness of them, of a manufacturer, distributor, or dispenser,
31	other than the person or persons who in fact manufactured, distributed, or dispensed the substance
32	and that thereby falsely purports or is represented to be the product of, or to have been distributed
33	by, the other manufacturer, distributor, or dispenser, or which substance is falsely purported to be
34	or represented to be one of the controlled substances by a manufacturer, distributor, or dispenser.
	LC000763 - Page 426 of 541
1	(10) "CRT" means cathode ray tube used to impose visual information on a screen.
2	(11) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a
3	controlled substance or imitation controlled substance, whether or not there exists an agency
4	relationship.
5	(12) "Department" means the department of health of this state.
6	(13) "Depressant or stimulant drug" means:
7	(i) A drug that contains any quantity of:
8	(A) Barbituric acid or derivatives, compounds, mixtures, or preparations of barbituric
9	acid; and
10	(B) "Barbiturate" or "barbiturates" includes all hypnotic and/or somnifacient drugs,
11	whether or not derivatives of barbituric acid, except that this definition shall not include bromides
12	and narcotics.
13	(ii) A drug that contains any quantity of:
14	(A) Amphetamine or any of its optical isomers;
15	(B) Any salt of amphetamine and/or desoxyephedrine or any salt of an optical isomer of
16	amphetamine and/or desoxyephedrine, or any compound, mixture, or preparation of them.
17	(iii) A drug that contains any quantity of coca leaves. "Coca leaves" includes cocaine, or
18	any compound, manufacture, salt, derivative, mixture, or preparation of coca leaves, except
19	derivatives of coca leaves, that do not contain cocaine, ecgonine, or substance from which
20	cocaine or ecgonine may be synthesized or made.
21	(iv) Any other drug or substance that contains any quantity of a substance that the
22	attorney general of the United States, or the director of health, after investigation, has found to
23	have, or by regulation designates as having, a potential for abuse because of its depressant or
24	stimulant effect on the central nervous system.
25	(14) "Director" means the director of health.
26	(15) "Dispense" means to deliver, distribute, leave with, give away, or dispose of a
27	controlled substance to the ultimate user or human research subject by or pursuant to the lawful
28	order of a practitioner, including the packaging, labeling, or compounding necessary to prepare
29	the substance for that delivery.
30	(16) "Dispenser" is a practitioner who delivers a controlled substance to the ultimate user
31	or human research subject.
32	(17) "Distribute" means to deliver (other than by administering or dispensing) a
33	controlled substance or an imitation controlled substance and includes actual constructive, or
34	attempted transfer. "Distributor" means a person who so delivers a controlled substance or an
	LC000763 - Page 427 of 541
1	imitation controlled substance.
2	(18) "Downtime" means that period of time when a computer is not operable.
3	(19) "Drug addicted person" means a person who exhibits a maladaptive pattern of
4	behavior resulting from drug use, including one or more of the following: impaired control over
5	drug use; compulsive use; and/or continued use despite harm, and craving.
6	(20) "Drug Enforcement Administration" means the Drug Enforcement Administration
7	United States Department of Justice or its successor.
8	(21) "Federal law" means the Comprehensive Drug Abuse Prevention and Control Act of
9	1970, (84 stat. 1236) (see generally 21 U.S.C. § 801 et seq.), and all regulations pertaining to that
10	federal act.
11	(22) "Hardware" means the fixed component parts of a computer.
12	(23) "Hospital" means an institution as defined in chapter 17 of title 23.
13	(24) "Imitation controlled substance" means a substance that is not a controlled
14	substance, that by dosage unit, appearance (including color, shape, size, and markings), or by
15	representations made, would lead a reasonable person to believe that the substance is a controlled
16	substance and, which imitation controlled substances contain substances that if ingested, could be
17	injurious to the health of a person. In those cases when the appearance of the dosage unit is not
18	reasonably sufficient to establish that the substance is an "imitation controlled substance" (for
19	example in the case of powder or liquid), the court or authority concerned should consider, in
20	addition to all other logically relevant factors, the following factors as related to "representations
21	made" in determining whether the substance is an "imitation controlled substance":
22	(i) Statement made by an owner, possessor, transferor, recipient, or by anyone else in
23	control of the substance concerning the nature of the substance, or its use or effect.
24	(ii) Statements made by the owner, possessor, or transferor, to the recipient that the
25	substance may be resold for substantial profit.
26	(iii) Whether the substance is packaged in a manner reasonably similar to packaging of
27	illicit controlled substances.
28	(iv) Whether the distribution or attempted distribution included an exchange of or
29	demand for money or other property as consideration, and whether the amount of the
30	consideration was substantially greater than the reasonable value of the non-controlled substance.
31	(25) "Immediate precursor" means a substance:
32	(i) That the director of health has found to be and by regulation designated as being the
33	principal compound used, or produced primarily for use, in the manufacture of a controlled
34	substance;
	LC000763 - Page 428 of 541
1	(ii) That is an immediate chemical intermediary used or likely to be used in the
2	manufacture of those controlled substances; and
3	(iii) The control of which is necessary to prevent, curtail, or limit the manufacture of that
4	controlled substance.
5	(26) "Laboratory" means a laboratory approved by the department of health as proper to
6	be entrusted with controlled substances and the use of controlled substances for scientific and
7	medical purposes and for the purposes of instruction.
8	(27) "Manufacture" means the production, preparation, propagation, cultivation,
9	compounding, or processing of a drug or other substance, including an imitation controlled
10	substance, either directly or indirectly or by extraction from substances of natural origin, or
11	independently by means of chemical synthesis or by a combination of extraction and chemical
12	synthesis and includes any packaging or repackaging of the substance or labeling or relabeling of
13	its container in conformity with the general laws of this state except by a practitioner as an
14	incident to his or her administration or dispensing of the drug or substance in the course of his or
15	her professional practice.
16	(28) "Manufacturer" means a person who manufactures but does not include an
17	apothecary who compounds controlled substances to be sold or dispensed on prescriptions.
18	(29) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
19	the seeds of the plant; the resin extracted from any part of the plant; and every compound,
20	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not
21	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
22	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
23	mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the
24	plant which is incapable of germination. Marijuana shall not include “industrial hemp” or”
25	industrial hemp products” which satisfy the requirements of chapter 2-26 of the general laws and
26	the regulations promulgated thereunder.
27	(30) "Narcotic drug" means any of the following, whether produced directly or indirectly
28	by extraction from substances of vegetable origin, or independently by means of chemical
29	synthesis or by a combination of extraction and chemical synthesis:
30	(i) Opium and opiates.
31	(ii) A compound, manufacture, salt, derivative, or preparation of opium or opiates.
32	(iii) A substance (and any compound, manufacture, salt, derivative, or preparation of it)
33	that is chemically identical with any of the substances referred to in paragraphs (i) and (ii) of this
34	subdivision.
	LC000763 - Page 429 of 541
1	(iv) Any other substance that the attorney general of the United States, or his or her
2	successor, or the director of health, after investigation, has found to have, and by regulation
3	designates as having, a potential for abuse similar to opium and opiates.
4	(31) "Official written order" means an order written on a form provided for that purpose
5	by the Drug Enforcement Administration under any laws of the United States making provision
6	for an official form, if order forms are authorized and required by federal law, and if no order
7	form is provided then on an official form provided for that purpose by the director of health.
8	(32) "Opiate" means any substance having an addiction-forming or addiction-sustaining
9	liability similar to morphine or being capable of conversion into a drug having addiction-forming
10	or addiction-sustaining liability.
11	(33) "Opioid analgesics" means and includes, but is not limited to, the medicines
12	buprenophine, butorphanol, codeine, hydrocodone, hydromorphone, levorphanol, meperidine,
13	methadone, morphine, nalbuphine, oxycodone, oxymorphone, pentazocine, propoxyphene as well
14	as their brand names, isomers, and combinations, or other medications approved by the
15	department.
16	(34) "Opioid antagonist" means naloxone hydrochloride and any other drug approved by
17	the United States Food and Drug Administration for the treatment of opioid overdose.
18	(35) "Opium poppy" means the plant of the species papaver somniferum L., except the
19	seeds of the plant.
20	(36) "Ounce" means an avoirdupois ounce as applied to solids and semi-solids, and a
21	fluid ounce as applied to liquids.
22	(37) "Person" means any corporation, association, partnership, or one or more
23	individuals.
24	(38) "Physical dependence" means a state of adaptation that is manifested by a drug class
25	specific withdrawal syndrome that can be produced by abrupt cessation, rapid dose reduction,
26	decreasing blood level of the drug, and/or administration of an antagonist.
27	(39) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.
28	(40) "Practitioner" means:
29	(i)(ii) A physician, osteopath, dentist, chiropodist, veterinarian, scientific investigator, or
30	other person licensed, registered or permitted to distribute, dispense, conduct research with
31	respect to or to administer a controlled substance in the course of professional practice or research
32	in this state.
33	(41) "Printout" means a hard copy produced by computer that is readable without the aid
34	of any special device.
	LC000763 - Page 430 of 541
1	(42) "Production" includes the manufacture, planting, cultivation, growing, or harvesting
2	of a controlled substance.
3	(43) "Researcher" means a person authorized by the director of health to conduct a
4	laboratory as defined in this chapter.
5	(44) "Sell" includes sale, barter, gift, transfer, or delivery in any manner to another, or to
6	offer or agree to do the same.
7	(45) "Software" means programs, procedures and storage of required information data.
8	(46) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic
9	cathinones as provided for in schedule I.
10	(47) "Ultimate user" means a person who lawfully possesses a controlled substance for
11	his or her own use or for the use of a member of his or her household, or for administering to an
12	animal owned by him or her or by a member of his or her household.
13	(48) "Wholesaler" means a person who sells, vends, or distributes at wholesale, or as a
14	jobber, broker agent, or distributor, or for resale in any manner in this state any controlled
15	substance.
16	SECTION 4. Section 21-28.5-2 of the General Laws in Chapter 21-28.5 entitled "Sale of
17	Drug Paraphernalia" is hereby amended to read as follows:
18	21-28.5-2. Manufacture or delivery of drug paraphernalia -- Penalty.
19	It is unlawful for any person to deliver, sell, possess with intent to deliver, or sell, or
20	manufacture with intent to deliver, or sell drug paraphernalia, knowing that it will be used to
21	plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process,
22	prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or introduce into
23	the human body a controlled substance in violation of chapter 28 of this title. A violation of this
24	section shall be punishable by a fine not exceeding five thousand dollars ($5,000) or
25	imprisonment not exceeding two (2) years, or both.
26	Notwithstanding any other provision of the general laws, the sale, manufacture, or
27	delivery of drug paraphernalia to a person acting in accordance with chapters 21-28.6, 21-28.10,
28	or 21-28.11 of the general laws shall not be considered a violation of this chapter.
29	SECTION 5. Sections 21-28.6-3, 21-28.6-4, 21-28.6-5, 21-28.6-6, 21-28.6-7, 21-28.6-8,
30	21-28.6-9, 21-28.6-12, 21-28.6-14, 21-28.6-15, 21-28.6-16, 21-28.6-16.2, 21-28.6-16.3, and 21-
31	28.6-17 of the General Laws in Chapter 21-28.6 entitled “The Edward O. Hawkins and Thomas
32	C. Slater Medical Marijuana Act” are hereby amended as follows:
33	21-28.6-3. Definitions.
34	For the purposes of this chapter:
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1	(1) "Authorized purchaser" means a natural person who is at least twenty-one (21) years
2	old and who is registered with the department of health for the purposes of assisting a qualifying
3	patient in purchasing marijuana from a compassion center. An authorized purchaser may assist no
4	more than one patient, and is prohibited from consuming marijuana obtained for the use of the
5	qualifying patient. An authorized purchaser shall be registered with the department of health and
6	shall possesses a valid registry identification card.
7	(2) “Cannabis” means all parts of the plant of the genus marijuana, also known as
8	marijuana sativa L, whether growing or not; the seeds thereof; the resin extracted from any
9	part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation
10	of the plant, its seeds, or resin regardless of cannabinoid content or cannabinoid potency
11	including “marijuana”, and “industrial hemp” or “industrial hemp products” which satisfy the
12	requirements of chapter 2-26 of the general laws and the regulations promulgated thereunder.
13	(15)(3) "Medical marijuana Cannabis testing laboratory" means a third-party analytical
14	testing laboratory licensed by the department of health, in coordination with the department of
15	business regulation, to collect and test samples of cannabis marijuana pursuant to regulations
16	promulgated by the departments.
17	(2)(4) "Cardholder" means a person who has been registered or licensed with the
18	department of health or the department of business regulation pursuant to this chapter and
19	possesses a valid registry identification card or license.
20	(3)(5) "Commercial unit" means a building, office, suite, or room other space within a
21	commercial or industrial building as authorized by the department of business regulation, for use
22	by one business or person and is rented or owned by that business or person.
23	(4)(i) "Compassion center" means a not-for-profit corporation, subject to the provisions
24	of chapter 6 of title 7, and registered under § 21-28.6-12, that acquires, possesses, cultivates,
25	manufactures, delivers, transfers, transports, supplies, or dispenses marijuana, and/or related
26	supplies and educational materials, to patient cardholders and/or their registered caregiver
27	cardholder or authorized purchaser in accordance with regulations promulgated by the department
28	of business regulation.
29	(ii) "Compassion center cardholder" means a principal officer, board member, employee,
30	volunteer, or agent of a compassion center who has registered with the department of health or
31	the department of business regulation and has been issued and possesses a valid, registry
32	identification card.
33	(5)(7) "Debilitating medical condition" means:
34	(i) Cancer, glaucoma, positive status for human immunodeficiency virus, acquired
	LC000763 - Page 432 of 541
1	immune deficiency syndrome, Hepatitis C, post-traumatic stress disorder, or the treatment of
2	these conditions;
3	(ii) A chronic or debilitating disease or medical condition, or its treatment, that produces
4	one or more of the following: cachexia or wasting syndrome; severe, debilitating, chronic pain;
5	severe nausea; seizures, including but not limited to, those characteristic of epilepsy; or severe
6	and persistent muscle spasms, including but not limited to, those characteristic of multiple
7	sclerosis or Crohn's disease; or agitation of Alzheimer's Disease; or
8	(iii) Any other medical condition or its treatment approved by the department of health,
9	as provided for in § 21-28.6-5.
10	(6)(8) "Department of business regulation" means the Rhode Island department of
11	business regulation or its successor agency.
12	(7)(9) "Department of health" means the Rhode Island department of health or its
13	successor agency.
14	(8)(10) "Department of public safety" means the Rhode Island department of public
15	safety or its successor agency.
16	(9)(11) "Dried, useable marijuana" means the dried leaves and flowers of the marijuana
17	plant as defined by regulations promulgated by the departments of health business regulation.
18	(10)(12) "Dwelling unit" means the room, or group of rooms, within a residential
19	dwelling used or intended for use by one family or household, or by no more than three (3)
20	unrelated individuals, with facilities for living, sleeping, sanitation, cooking, and eating.
21	(11)(13) "Equivalent amount" means the portion of usable marijuana, be it in extracted,
22	edible, concentrated, or any other form, found to be equal to a portion of dried, usable marijuana,
23	as defined by regulations promulgated by the departments of health and business regulation.
24	(14) “Immature marijuana plant” means a marijuana plant, rooted or unrooted, with no
25	observable flowers or buds.
26	(12)(15) "Licensed medical marijuana cultivator" means a person or entity, as identified
27	in § 43-3-6, who has been licensed by the department of business regulation to cultivate medical
28	marijuana pursuant to § 21-28.6-16.
29	(16) “Licensed medical marijuana processor” means a person or entity, as identified in §
30	43-3-6, who has been licensed by the department of business regulation to manufacture medical
31	marijuana products and/or process medical marijuana products pursuant to § 21-28.6-16.1.
32	(13)(17) "Marijuana" has the meaning given that term in § 21-28-1.02(30).
33	(18) “Marijuana establishment licensee” means any person or entity licensed by the
34	department of business regulation under chapters 21-28.6 or 21-28.11 whose license permits it to
	LC000763 - Page 433 of 541
1	engage in or conduct activities in connection with the medical marijuana program or adult use
2	marijuana industry. “Marijuana establishment licensees” shall include but not be limited to,
3	compassion centers, medical marijuana cultivators, medical marijuana processors, marijuana
4	retailers, marijuana cultivators, marijuana processors, cannabis testing laboratories, and the holder
5	of any other license issued by the department of business regulation under chapters 21-28.6 or
6	21-28.11 of the Rhode Island General Laws and/or as specified and defined in regulations
7	promulgated by the department of business regulation.
8	(14)(19) "Mature marijuana plant" means a marijuana plant that has flowers or buds that
9	are readily observable by an unaided visual examination.
10	(20) “Medical marijuana emporium” means any establishment, facility or club, whether
11	operated for-profit or nonprofit, or any commercial unit or other premises as further defined
12	through regulations promulgated by the department of business regulation, at which the sale,
13	distribution, transfer or use of medical marijuana or medical marijuana products is proposed
14	and/or occurs to, by or among registered patients, registered caregivers, authorized purchaser
15	cardholders or other persons as further defined through regulations promulgated by the
16	department of business regulation. This shall not include a compassion center regulated and
17	licensed by the department of business regulation pursuant to the terms of this chapter.
18	(21) “Medical marijuana plant tag set” or “plant tag” means any tag, identifier,
19	registration, certificate, or inventory tracking system authorized or issued by the department or
20	which the department requires be used for the lawful possession and cultivation of medical
21	marijuana plants in accordance with this chapter.
22	(16)(22) "Medical use" means the acquisition, possession, cultivation, manufacture, use,
23	delivery, transfer, or transportation of marijuana or paraphernalia relating to the consumption of
24	marijuana to alleviate a patient cardholder's debilitating medical condition or symptoms
25	associated with the medical condition in accordance with the provisions of this chapter.
26	(17)(23) Practitioner" means a person who is licensed with authority to prescribe drugs
27	pursuant to chapters 34, 37, and 54 of title 5 or a physician licensed with authority to prescribe
28	drugs in Massachusetts or Connecticut, who may provide a qualifying patient with a written
29	certification in accordance with regulations promulgated by the department of health.
30	(18)(24) "Primary caregiver" means a natural person who is at least twenty-one (21) years
31	old who is registered under this chapter in order to, and who. A primary caregiver may, assist one
32	(1) qualifying patient, or upon a demonstration of need in accordance with regulations
33	promulgated by the department of business regulation, up to but no more than five (5) qualifying
34	patients with their medical use of marijuana in accordance with regulations promulgated by the
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1	department of business regulation, provided that a qualified patient may also serve as their own
2	primary caregiver subject to the registration and requirements set forth in § 21-28.6-4 and any
3	regulations promulgated thereunder.
4	(19)(25) "Qualifying patient" means a person who has been diagnosed certified by a
5	practitioner as having a debilitating medical condition and is a resident of Rhode Island.
6	(20)(26) Registry identification card" means a document issued by the department of
7	health or the department of business regulation, as applicable, that identifies a person as a
8	registered qualifying patient, a registered primary caregiver, or authorized purchaser, or a
9	document issued by the department of business regulation or department of health that identifies a
10	person as a registered principal officer, board member, employee, volunteer, or agent of a
11	compassion center, licensed medical marijuana cultivator, medical marijuana processor, cannabis
12	testing lab, or any other medical marijuana licensee or marijuana establishment.
13	(21) "Seedling" means a marijuana plant with no observable flowers or buds.
14	(22)(27) "Unusable marijuana" means marijuana seeds, stalks, seedlings and unusable
15	roots and shall not count towards any weight based possession limits established in the act.
16	(23)(28) "Usable marijuana" means the dried leaves and flowers of the marijuana plant,
17	of the plant.
18	(24)(29) "Wet marijuana" means the harvested leaves and flowers of the marijuana plant
19	before they have reached a dry useable state, as defined by regulations promulgated by the
20	departments of health and business regulation.
21	(25)(30) "Written certification" means the qualifying patient's medical records, and a
22	statement signed by a practitioner, stating that, in the practitioner's professional opinion, the
23	potential benefits of the medical use of marijuana would likely outweigh the health risks for the
24	qualifying patient. A written certification shall be made only in the course of a bona fide,
25	practitioner-patient relationship after the practitioner has completed a full assessment of the
26	qualifying patient's medical history. The written certification shall specify the qualifying patient's
27	debilitating medical condition or conditions and include any other information required by
28	regulations promulgated by the department of health which may include the qualifying patient’s
29	medical records.
30	21-28.6-4. Protections for the medical use of marijuana.
31	(a) A qualifying patient cardholder who has in his or her possession a registry
32	identification card shall not be subject to arrest, prosecution, or penalty in any manner, or denied
33	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
34	business or occupational or professional licensing board or bureau, solely for the medical use of
	LC000763 - Page 435 of 541
1	marijuana; provided;
2	(1) Before July 1, 2019, tThe qualifying patient cardholder possesses an amount of
3	marijuana that does not exceed twelve (12) mature marijuana plants and twelve (12) immature
4	marijuana plants that are accompanied by valid medical marijuana tags (provided that if a
5	qualifying patient cardholder has valid medical marijuana tags that were ordered and issued prior
6	to July 1, 2019, and such tags have an expiration date that is on or after July 1, 2019, the plant
7	possession limits set forth in this subsection shall apply to such qualifying patient until the
8	expiration date of the issued tags), two and one-half (2.5) three (3) ounces of dried usable
9	marijuana, or its equivalent amount, and an amount of wet marijuana to be set by regulations
10	promulgated by the departments of health and business regulation. Said plants shall be stored in
11	an indoor facility.
12	Marijuana plants and the marijuana they produce shall only be grown, stored,
13	manufactured, and processed in accordance with regulations promulgated by the department of
14	business regulation; and
15	(2) On and after July 1, 2019, the qualifying patient cardholder possesses an amount of
16	marijuana that does not exceed six (6) mature marijuana plants and six (6) immature marijuana
17	plants that are accompanied by valid medical marijuana tags (provided that if a qualifying patient
18	cardholder has valid medical marijuana tags that were ordered and issued prior to July 1, 2019,
19	and such tags have an expiration date that is on or after July 1, 2019, the plant possession limits
20	set forth in subsection (1) above shall apply to such qualifying patient until the expiration date of
21	the issued tags), three (3) ounces of dried marijuana, or its equivalent amount, and an amount of
22	wet marijuana to be set by regulations promulgated by the department of business regulation.
23	Said plants shall be stored in an indoor facility. Marijuana plants and the marijuana they produce
24	shall be grown, stored, manufactured, and processed in accordance with regulations promulgated
25	by the department of business regulation and;
26	(3) On and after July 1, 2019, in order to lawfully possess and grow marijuana plants, a
27	qualifying patient cardholder, prior to applying for, or renewing medical marijuana plant grow
28	tags, must first apply for and be issued a caregiver registration card by the department of business
29	regulation. The department of business regulation may issue a caregiver registration card and
30	plant tags to any qualified patient cardholder who qualifies to serve as their own caregiver
31	through a demonstration of need in accordance with regulations promulgated by the department
32	of business regulation.
33	(b) An authorized purchaser who has in his or her possession a registry identification card
34	shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or
	LC000763 - Page 436 of 541
1	privilege, including, but not limited to, civil penalty or disciplinary action by a business or
2	occupational or professional licensing board or bureau, for the possession of marijuana; provided
3	that the authorized purchaser possesses an amount of marijuana that does not exceed two and
4	one-half (2.5) three (3) ounces of dried usable marijuana, or its equivalent amount, and this
5	marijuana was purchased legally from a compassion center for the use of their designated
6	qualifying patient.
7	(c) A qualifying patient cardholder, who has in his or her possession a registry
8	identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied
9	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
10	business or occupational or professional licensing board or bureau, for selling, giving, or
11	distributing, on or before December 31, 2016, to a compassion center cardholder, marijuana of
12	the type, and in an amount not to exceed, that set forth in subsection (a), that he or she has
13	cultivated or manufactured pursuant to this chapter.
14	(d) No school, employer, or landlord may refuse to enroll, employ, or lease to, or
15	otherwise penalize, a person solely for his or her status as a cardholder. Provided, however, due to
16	the safety and welfare concern for other tenants, the property, and the public, as a whole, a
17	landlord may have the discretion not to lease, or continue to lease, to a cardholder who cultivates,
18	manufactures, processes, smokes, or vaporizes marijuana in the leased premises.
19	(e) A primary caregiver cardholder, who has in his or her possession a registry
20	identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied
21	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
22	business or occupational or professional licensing board or bureau, for assisting a patient
23	cardholder, to whom he or she is connected through the department of health or department of
24	business regulation’s registration process, with the medical use of marijuana; provided, that;
25	(1)Before July 1, 2019, the primary caregiver cardholder possesses an amount of
26	marijuana that does not exceed twelve (12) mature marijuana plants and twelve (12) immature
27	marijuana plants that are accompanied by valid medical marijuana tags (provided that if a primary
28	caregiver cardholder has valid medical marijuana tags that were ordered and processed prior to
29	July 1, 2019, and such tags have an expiration date that is on or after July 1, 2019, the plant
30	possession limits set forth in this subsection shall apply to such primary caregiver until the
31	expiration date of the issued tags), two and one-half (2.5) three (3) ounces of dried usable
32	marijuana, or its equivalent amount, and an amount of wet marijuana set in regulations
33	promulgated by the departments of health and business regulation for each qualified patient
34	cardholder to whom he or she is connected through the department of health business regulation’s
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1	registration process. Said plants shall be stored in an indoor facility. Marijuana plants and the
2	marijuana they produce shall be grown, stored, manufactured, processed, and distributed to
3	qualified patient cardholders to whom the primary caregiver is connected and in accordance with
4	regulations promulgated by the department of business regulation; and
5	(2) On and after July 1, 2019, the primary caregiver cardholder possesses an amount of
6	marijuana that does not exceed six (6) mature marijuana plants and six (6) immature marijuana
7	plants that are accompanied by valid medical marijuana tags (provided that if a primary caregiver
8	cardholder has valid medical marijuana tags that were ordered and processed prior to July 1,
9	2019, and such tags have an expiration date that is on or after July 1, 2019, the plant possession
10	limits set forth in subsection (1) above shall apply to such primary caregiver until the expiration
11	date of the issued tags), three (3) ounces of dried marijuana, or its equivalent amount, and an
12	amount of wet marijuana set in regulations promulgated by the department of business regulation
13	for each qualified patient cardholder to whom he or she is connected through the department of
14	business regulation’s registration process. Said plants shall be stored in an indoor facility.
15	Marijuana plants and the marijuana they produce shall be grown, stored, manufactured,
16	processed, and distributed to qualified patient cardholders to whom the primary caregiver is
17	connected and in accordance with regulations promulgated by the department of business
18	regulation.
19	(f) A qualifying patient cardholder shall be allowed to possess a reasonable amount of
20	unusable marijuana, including up to twelve (12) seedlings that are accompanied by valid medical
21	marijuana tags. A primary caregiver cardholder shall be allowed to possess a reasonable amount
22	of unusable marijuana, including up to twenty-four (24) seedlings that are accompanied by valid
23	medical marijuana tags and an amount of wet marijuana set in regulations promulgated by the
24	departments of health and business regulation.
25	(g)(f) There shall exist a presumption that a cardholder is engaged in the medical use of
26	marijuana if the cardholder:
27	(1) Is in possession of a registry identification card; and
28	(2) Is in possession of an amount of marijuana that does not exceed the amount permitted
29	under this chapter. Such presumption may be rebutted by evidence that conduct related to
30	marijuana was not for the purpose of alleviating the qualifying patient's debilitating medical
31	condition or symptoms associated with the medical condition.
32	(h)(g) A primary caregiver cardholder may receive reimbursement for costs associated
33	with assisting a qualifying patient cardholder's medical use of marijuana A primary caregiver
34	cardholder may only receive reimbursement for the actual costs of goods, materials, services or
	LC000763 - Page 438 of 541
1	utilities for which they have incurred expenses. A primary caregiver may not receive
2	reimbursement or compensation for their time, knowledge, or expertise. Compensation shall not
3	constitute sale of controlled substances under state law. The department of business regulation
4	may promulgate regulations for the documentation and tracking of reimbursements and the
5	transfer of marijuana between primary caregivers and their registered patients.
6	(i)(h) A primary caregiver cardholder, who has in his or her possession a registry
7	identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied
8	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
9	business or occupational or professional licensing board or bureau, for selling, giving, or
10	distributing, on or before December 31, 2016, to a compassion center cardholder, marijuana, of
11	the type, and in an amount not to exceed that set forth in subsection (e), if:
12	(1) The primary caregiver cardholder cultivated the marijuana pursuant to this chapter,
13	not to exceed the limits of subsection (e); and
14	(2) Each qualifying patient cardholder the primary caregiver cardholder is connected with
15	through the department of health's registration process has been provided an adequate amount of
16	the marijuana to meet his or her medical needs, not to exceed the limits of subsection (a).
17	(j)(i) A practitioner shall not be subject to arrest, prosecution, or penalty in any manner,
18	or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action
19	by the Rhode Island board of medical licensure and discipline, or by any other business an or
20	occupational or professional licensing board or bureau solely for providing written certifications
21	in accordance with this chapter and regulations promulgated by the department of health, or for
22	otherwise stating that, in the practitioner's professional opinion, the potential benefits of the
23	medical marijuana would likely outweigh the health risks for a patient.
24	(k)(j) Any interest in, or right to, property that is possessed, owned, or used in connection
25	with the lawful medical use of marijuana, or acts incidental to such use, shall not be forfeited.
26	(l)(k) No person shall be subject to arrest or prosecution for constructive possession, conspiracy,
27	aiding and abetting, being an accessory, or any other offense, for simply being in the presence or
28	vicinity of the medical use of marijuana as permitted under this chapter, or for assisting a
29	qualifying patient cardholder with using or administering marijuana.
30	(m)(l) A practitioner, licensed with authority to prescribed drugs pursuant to chapters 34,
31	37, and 54 of title 5, or pharmacist, licensed under chapter 19.1 of title 5, or certified school nurse
32	teacher, shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right
33	or privilege, including, but not limited to, civil penalty or disciplinary action by an employer
34	business or occupational or professional licensing board or bureau solely for:
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1	(i) discussing the benefits or health risks of medical marijuana or its interaction with
2	other substances with a patient. or;
3	(ii) administering a non-smokable and non-vaporized form of medical marijuana in a
4	school setting to a qualified patient registered in accordance with chapter 21-28.6 of the general
5	laws.
6	(n)(m) A qualifying patient or primary caregiver registry identification card, or its
7	equivalent, issued under the laws of another state, U.S. territory, or the District of Columbia, to
8	permit the medical use of marijuana by a patient with a debilitating medical condition, or to
9	permit a person to assist with the medical use of marijuana by a patient with a debilitating
10	medical condition, shall have the same force and effect as a registry identification card.
11	(o)(n) Notwithstanding the provisions of subsection (e), no primary caregiver cardholder
12	shall;
13	(1) Before July 1, 2019, pPossess an amount of marijuana in excess of twenty-four (24)
14	mature marijuana plants and twenty-four (24) immature marijuana plants that are accompanied by
15	valid medical marijuana tags (provided that if a primary caregiver cardholder has valid medical
16	marijuana tags that were ordered and processed prior to July 1, 2019, and such tags have an
17	expiration date that is on or after July 1, 2019, the plant possession limits set forth in this
18	subsection (1) shall apply to such primary caregiver until the expiration date of the issued tags)
19	and five (5) six (6) ounces of dried usable marijuana, or its equivalent, and an amount of wet
20	marijuana set in regulations promulgated by the departments of health and business regulation for
21	patient cardholders to whom he or she is connected through the department of health department
22	of business regulation’s registration process.
23	(2) On or after July 1, 2019, possess an amount of marijuana in excess of twelve (12)
24	mature marijuana plants and twelve (12) immature marijuana plants that are accompanied by
25	valid medical marijuana tags (provided that if a primary caregiver cardholder has valid medical
26	marijuana tags that were ordered and processed prior to July 1, 2019, and such tags have an
27	expiration date that is on or after July 1, 2019, the plant possession limits set forth in subsection
28	(1) above shall apply to such primary caregiver until the expiration date of the issued tags) and
29	six (6) ounces of dried marijuana, or its equivalent, and an amount of wet marijuana set in
30	regulations promulgated by the department of business regulation for patient cardholders to
31	whom he or she is connected through the department of business regulation’s registration process.
32	(p) A qualifying patient or primary caregiver cardholder may give marijuana to another
33	qualifying patient or primary caregiver cardholder to whom they are not connected by the
34	department's registration process, provided that no consideration is paid for the marijuana, and
	LC000763 - Page 440 of 541
1	that the recipient does not exceed the limits specified in this section.
2	(o) Except as expressly authorized under this chapter, a qualifying patient or primary
3	caregiver shall not deliver or otherwise transfer marijuana to any other person or entity.
4	(q)(p) Qualifying patient cardholders and primary caregiver cardholders who are
5	authorized to grow marijuana shall only grow at one premises, and this premises shall be
6	registered with the department of health business regulation. Except for licensed compassion
7	centers, licensed cooperative cultivations, licensed medical marijuana processors and licensed
8	medical marijuana cultivators, no more than twenty-four (24) twelve (12) mature marijuana
9	plants and twelve (12) immature marijuana plants that are accompanied by valid medical
10	marijuana tags shall be grown or otherwise located at any one dwelling unit or commercial unit
11	(provided that if a qualifying patient cardholder or a primary caregiver cardholder has valid
12	medical marijuana tags for the plants grown at such registered premises that were ordered and
13	processed prior to July 1, 2019, and such tags have an expiration date that is on or after July 1,
14	2019, the plant possession limit of twenty-four (24) mature marijuana plants and twenty-four (24)
15	immature marijuana plants shall apply to such qualifying patient or primary caregiver until the
16	expiration date of the issued tags). The number of qualifying patients or primary caregivers
17	residing, owning, renting, growing, or otherwise operating at a dwelling or commercial unit does
18	not affect this limit. The department of health business regulation shall promulgate regulations to
19	enforce this provision.
20	(r)(q) For the purposes of medical care, including organ transplants, a patient cardholder's
21	authorized use of marijuana shall be considered the equivalent of the authorized use of any other
22	medication used at the direction of a physician, and shall not constitute the use of an illicit
23	substance.
24	(s)(r) Notwithstanding any other provisions of the general laws, the manufacture of
25	marijuana using a solvent extraction process that includes the use of a compressed, flammable gas
26	as a solvent by a patient cardholder or primary caregiver cardholder shall not be subject to the
27	protections of this chapter.
28	(t)(s) Notwithstanding any provisions to the contrary, nothing in this chapter or the
29	general laws shall restrict or otherwise affect the manufacturing, distribution, transportation, sale,
30	prescribing and dispensing of a product that has been approved for marketing as a prescription
31	medication by the U.S. Food and Drug Administration and legally prescribed, nor shall hemp, as
32	defined in in accordance with chapter 26 of title 2 § 2-26-3, be defined as marijuana or marihuana
33	pursuant to this chapter, chapter 28 of this title or elsewhere in the general laws.
34	21-28.6-5. Departments of health and business regulation to issue regulations.
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1	(a) Not later than ninety (90) days after the effective date of this chapter, the department
2	of health shall promulgate regulations governing the manner in which it shall consider petitions
3	from the public to add debilitating medical conditions to those included in this chapter. In
4	considering such petitions, the department of health shall include public notice of, and an
5	opportunity to comment in a public hearing, upon such petitions. The department of health shall,
6	after hearing, approve or deny such petitions within one hundred eighty (180) days of submission.
7	The approval or denial of such a petition shall be considered a final department of health action,
8	subject to judicial review. Jurisdiction and venue for judicial review are vested in the superior
9	court. The denial of a petition shall not disqualify qualifying patients with that condition, if they
10	have a debilitating medical condition as defined in § 21-28.6-3(56). The denial of a petition shall
11	not prevent a person with the denied condition from raising an affirmative defense.
12	(b) Not later than ninety (90) days after the effective date of this chapter, the department
13	of health shall promulgate regulations governing the manner in which it shall consider
14	applications for, and renewals of, registry identification cards for qualifying patients, primary
15	caregivers, and authorized purchasers. The department of health's regulations shall establish
16	application and renewal fees that generate revenues sufficient to offset all expenses of
17	implementing and administering this chapter. The department of health may vary the application
18	and renewal fees along a sliding scale that accounts for a qualifying patient's or caregiver's
19	income. The department of health may accept donations from private sources in order to reduce
20	the application and renewal fees.
21	(c) Not later than October 1, 2019, the department of business regulation shall
22	promulgate regulations governing the manner in which it shall consider applications for, and
23	renewals of, registry identification cards for primary caregivers which may include criteria for
24	eligibility or a demonstration of need. The department of business regulation’s regulations shall
25	establish application and renewal fees. The department of business regulation may vary the
26	application and renewal fees along a sliding scale that accounts for a qualifying patient's or
27	caregiver's income. The department of business regulation may accept donations from private
28	sources in order to reduce the application and renewal fees.
29	21-28.6-6. Administration of departments of health and business regulation
30	regulations.
31	(a) The department of health shall issue registry identification cards to qualifying patients
32	who submit the following, in accordance with the department's regulations. Applications shall
33	include but not be limited to:
34	(1) Written certification as defined in § 21-28.6-3(2530) of this chapter;
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1	(2) Application fee, as applicable;
2	(3) Name, address, and date of birth of the qualifying patient; provided, however, that if
3	the patient is homeless, no address is required;
4	(4) Name, address, and telephone number of the qualifying patient's practitioner;
5	(5) Whether the patient elects to apply to the department of business regulation to serve
6	as their own caregiver and grow medical marijuana plants for himself or herself; and
7	(6) Name, address, and date of birth of one primary caregiver of the qualifying patient
8	and any authorized purchasers for the qualifying patient, if any primary caregiver or authorized
9	purchaser is chosen by the patient or allowed in accordance with regulations promulgated by the
10	departments of health or business regulation.
11	(b) The department of health shall not issue a registry identification card to a qualifying
12	patient under the age of eighteen (18) unless:
13	(1) The qualifying patient's practitioner has explained the potential risks and benefits of
14	the medical use of marijuana to the qualifying patient and to a parent, guardian, or person having
15	legal custody of the qualifying patient; and
16	(2) A parent, guardian, or person having legal custody consents in writing to:
17	(i) Allow the qualifying patient's medical use of marijuana;
18	(ii) Serve as the qualifying patient's primary caregiver or authorized purchaser; and
19	(iii) Control the acquisition of the marijuana, the dosage, and the frequency of the
20	medical use of marijuana by the qualifying patient.
21	(c) The department of health shall renew registry identification cards to qualifying
22	patients in accordance with regulations promulgated by the department of health and subject to
23	payment of any applicable renewal fee.
24	(d) The department of health shall not issue a registry identification card to a qualifying
25	patient seeking treatment for post-traumatic stress disorder (PTSD) under the age of eighteen
26	(18).
27	(e) The department of health shall verify the information contained in an application or
28	renewal submitted pursuant to this section, and shall approve or deny an application or renewal
29	within thirty-five (35) days of receiving it. The department may deny an application or renewal
30	only if the applicant did not provide the information required pursuant to this section, or if the
31	department determines that the information provided was falsified, or that the renewing applicant
32	has violated this chapter under their previous registration. Rejection of an application or renewal
33	is considered a final department action, subject to judicial review. Jurisdiction and venue for
34	judicial review are vested in the superior court.
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1	(f) If the qualifying patient's practitioner notifies the department of health in a written
2	statement that the qualifying patient is eligible for hospice care or chemotherapy, the department
3	of health and department of business regulation, as applicable, shall give priority to these
4	applications when verifying the information in accordance with subsection (e) and issue a registry
5	identification card to these qualifying patients, primary caregivers and authorized purchasers
6	within seventy-two (72) hours of receipt of the completed application. The departments shall not
7	charge a registration fee to the patient, caregivers or authorized purchasers named in the
8	application. The department of health may identify through regulation a list of other conditions
9	qualifying a patient for expedited application processing.
10	(g) Following the promulgation of regulations pursuant to 21-28.6-5 (c), Tthe department
11	of health shall department of business regulation may issue or renew a registry identification card
12	to the qualifying patient cardholder's primary caregiver, if any, who is named in the qualifying
13	patient's approved application provided the qualifying patient is eligible to appoint a primary
14	caregiver, or serve as their own primary caregiver pursuant to regulations promulgated by the
15	department of business regulation and the caregiver applicant has submitted all necessary
16	application or renewal materials and fees pursuant to regulations promulgated by the department
17	of business regulation. The department of business regulation shall verify the information
18	contained in applications and renewal forms submitted pursuant to this chapter prior to issuing
19	any registry identification card. The department of business regulation may deny an application or
20	renewal if the applicant or appointing patient did not provide the information required pursuant to
21	this section, or if the department determines that the information provided was falsified, or if the
22	applicant or appointing patient has violated this chapter under their previous registration or has
23	otherwise failed to satisfy the application or renewal requirements.
24	(1) Any qualifying patient who qualifies to grow medical marijuana for themselves and
25	serve as their own caregiver shall not be allowed to appoint a caregiver unless said qualifying
26	patient is able to demonstrate the necessity of appointing a caregiver in accordance with
27	regulations promulgated by the department of business regulation.
28	(2) A primary caregiver shall only be registered with and assist one patient cardholder
29	with their medical use of marijuana except as allowed in subdivision (g)(3) of this section.
30	(3) A primary caregiver may be registered with more than one patient cardholder
31	provided that any additional patient is an immediate family member of the primary caregiver or is
32	able to demonstrate the necessity of appointing the caregiver in accordance with regulations
33	promulgated by the department of business regulation.
34	(1)(4) A primary caregiver applicant or an authorized purchaser applicant shall apply to
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1	the bureau of criminal identification of the department of attorney general, department of public
2	safety division of state police, or local police department for a national criminal records check
3	that shall include fingerprints submitted to the Federal Bureau of Investigation. Upon the
4	discovery of any disqualifying information as defined in subdivision (g) (4)(8), and in
5	accordance with the rules promulgated by the director, the bureau of criminal identification of the
6	department of attorney general, department of public safety division of state police, or the local
7	police department shall inform the applicant, in writing, of the nature of the disqualifying
8	information; and, without disclosing the nature of the disqualifying information, shall notify the
9	department of business regulation or department of health, as applicable, in writing, that
10	disqualifying information has been discovered.
11	(2)(5) In those situations in which no disqualifying information has been found, the
12	bureau of criminal identification of the department of attorney general, department of public
13	safety division of state police, or the local police shall inform the applicant and the department of
14	business regulation or department of health, as applicable, in writing, of this fact.
15	(3)(6) The department of health or department of business regulation, as applicable, shall
16	maintain on file evidence that a criminal records check has been initiated on all applicants
17	seeking a primary caregiver registry identification card or an authorized purchaser registry
18	identification card and the results of the checks. The primary caregiver cardholder shall not be
19	required to apply for a national criminal records check for each patient he or she is connected to
20	through the department's registration process, provided that he or she has applied for a national
21	criminal records check within the previous two (2) years in accordance with this chapter. The
22	department of health and department of business regulation, as applicable, shall not require a
23	primary caregiver cardholder or an authorized purchaser cardholder to apply for a national
24	criminal records check more than once every two (2) years.
25	(7) Notwithstanding any other provision of this chapter, the department of business
26	regulation or department of health may revoke or refuse to issue any class or type of registry
27	identification card or license if it determines that failing to do so would conflict with any federal
28	law or guidance pertaining to regulatory, enforcement and other systems that states, businesses, or
29	other institutions may implement to mitigate the potential for federal intervention or enforcement.
30	This provision shall not be construed to prohibit the overall implementation and administration of
31	this chapter on account of the federal classification of marijuana as a schedule I substance or any
32	other federal prohibitions or restrictions.
33	(4)(8) Information produced by a national criminal records check pertaining to a
34	conviction for any felony offense under chapter 28 of title 21 ("Rhode Island Controlled
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1	Substances Act"), murder, manslaughter, rape, first-degree sexual assault, second-degree sexual
2	assault, first-degree child molestation, second-degree child molestation, kidnapping, first-degree
3	arson, second-degree arson, mayhem, robbery, burglary, breaking and entering, assault with a
4	dangerous weapon, assault or battery involving grave bodily injury, and/or assault with intent to
5	commit any offense punishable as a felony or a similar offense from any other jurisdiction shall
6	result in a letter to the applicant and the department of health or department of business
7	regulation, as applicable, disqualifying the applicant. If disqualifying information has been found,
8	the department of health or department of business regulation, as applicable may use its discretion
9	to issue a primary caregiver registry identification card or an authorized purchaser registry
10	identification card if the applicant's connected patient is an immediate family member and the
11	card is restricted to that patient only.
12	(5)(9) The primary caregiver or authorized purchaser applicant shall be responsible for
13	any expense associated with the national criminal records check.
14	(6)(10) For purposes of this section, "conviction" means, in addition to judgments of
15	conviction entered by a court subsequent to a finding of guilty or a plea of guilty, those instances
16	where the defendant has entered a plea of nolo contendere and has received a sentence of
17	probation and those instances where a defendant has entered into a deferred sentence agreement
18	with the attorney general.
19	(h)(i) On or before December 31, 2016, the department of health shall issue registry
20	identification cards within five (5) business days of approving an application or renewal that shall
21	expire two (2) years after the date of issuance.
22	(ii) Effective January 1, 2017, and thereafter, the department of health or the department
23	of business regulation, as applicable, shall issue registry identification cards within five (5)
24	business days of approving an application or renewal that shall expire one year after the date of
25	issuance.
26	(iii) Registry identification cards shall contain:
27	(1) The date of issuance and expiration date of the registry identification card;
28	(2) A random registry identification number;
29	(3) A photograph; and
30	(4) Any additional information as required by regulation of the department of health or
31	business regulation as applicable.
32	(i) Persons issued registry identification cards by the department of health or department
33	of business regulation shall be subject to the following:
34	(1) A qualifying patient cardholder shall notify the department of health of any change in
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1	his or her name, address, primary caregiver, or authorized purchaser; or if he or she ceases to
2	have his or her debilitating medical condition, within ten (10) days of such change.
3	(2) A qualifying patient cardholder who fails to notify the department of health of any of
4	these changes is responsible for a civil infraction, punishable by a fine of no more than one
5	hundred fifty dollars ($150). If the patient cardholder has ceased to suffer from a debilitating
6	medical condition, the card shall be deemed null and void and the person shall be liable for any
7	other penalties that may apply to the person's nonmedical use of marijuana.
8	(3) A primary caregiver cardholder or authorized purchaser shall notify the issuing
9	department of health of any change in his or her name or address within ten (10) days of such
10	change. A primary caregiver cardholder or authorized purchaser who fails to notify the
11	department of any of these changes is responsible for a civil infraction, punishable by a fine of no
12	more than one hundred fifty dollars ($150).
13	(4) When a qualifying patient cardholder or primary caregiver cardholder notifies the
14	department of health or department of business regulation, as applicable, of any changes listed in
15	this subsection, the department of health or department of business regulation, as applicable, shall
16	issue the qualifying patient cardholder and each primary caregiver cardholder a new registry
17	identification card within ten (10) days of receiving the updated information and a ten-dollar
18	($10.00) fee.
19	(5) When a qualifying patient cardholder changes his or her primary caregiver or
20	authorized purchaser, the department of health or department of business regulation, as applicable
21	shall notify the primary caregiver cardholder or authorized purchaser within ten (10) days. The
22	primary caregiver cardholder's protections as provided in this chapter as to that patient shall
23	expire ten (10) days after notification by the issuing department. If the primary caregiver
24	cardholder or authorized purchaser is connected to no other qualifying patient cardholders in the
25	program, he or she must return his or her registry identification card to the issuing department.
26	(6) If a cardholder or authorized purchaser loses his or her registry identification card, he
27	or she shall notify the department that issued the card and submit a ten-dollar ($10.00) fee within
28	ten (10) days of losing the card. Within five (5) days, the department of health or department of
29	business regulation shall issue a new registry identification card with new random identification
30	number.
31	(7) Effective January 1, 2019, if a patient cardholder chooses to alter his or her
32	registration with regard to the growing of medical marijuana for himself or herself, he or she shall
33	notify the department prior to the purchase of medical marijuana tags or the growing of medical
34	marijuana plants.
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1	(8)(7) If a cardholder or authorized purchaser willfully violates any provision of this
2	chapter as determined by the department of health or the department of business regulation, his or
3	her registry identification card may be revoked.
4	(j) Possession of, or application for, a registry identification card shall not constitute
5	probable cause or reasonable suspicion, nor shall it be used to support the search of the person or
6	property of the person possessing or applying for the registry identification card, or otherwise
7	subject the person or property of the person to inspection by any governmental agency.
8	(k)(1) Applications and supporting information submitted by qualifying patients,
9	including information regarding their primary caregivers, authorized purchaser, and practitioners,
10	are confidential and protected under in accordance with the federal Health Insurance Portability
11	and Accountability Act of 1996, as amended, and shall be exempt from the provisions of chapter
12	2 of title 38 et seq. (Rhode Island access to public records act) and not subject to disclosure,
13	except to authorized employees of the departments of health and business regulation as necessary
14	to perform official duties of the departments, and pursuant to subsections (l) and (m).
15	(2) The application for qualifying patient's registry identification card shall include a
16	question asking whether the patient would like the department of health to notify him or her of
17	any clinical studies about marijuana's risk or efficacy. The department of health shall inform
18	those patients who answer in the affirmative of any such studies it is notified of, that will be
19	conducted in Rhode Island. The department of health may also notify those patients of medical
20	studies conducted outside of Rhode Island.
21	(3) The department of health and the department of business regulation, as applicable,
22	shall maintain a confidential list of the persons to whom the department of health or department
23	of business regulation has issued authorized patient, primary caregiver, and authorized purchaser
24	registry identification cards. Individual names and other identifying information on the list shall
25	be confidential, exempt from the provisions of Rhode Island access to public information, chapter
26	2 of title 38, and not subject to disclosure, except to authorized employees of the departments of
27	health and business regulation as necessary to perform official duties of the departments and
28	pursuant to subsections (l) and (m).
29	(l) Notwithstanding subsections (k) and (m), the departments of health and business
30	regulation, as applicable, shall verify to law enforcement personnel whether a registry
31	identification card is valid and may provide additional information to confirm whether a
32	cardholder is compliant with the provisions of this chapter and the regulations promulgated
33	hereunder. solely by confirming the random registry identification number or name. The
34	department of business regulation shall verify to law enforcement personnel whether a registry
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1	identification card is valid and may confirm whether the cardholder is compliant with the
2	provisions of this chapter and the regulations promulgated hereunder. This verification may occur
3	through the use of a shared database, provided that any medical records or confidential
4	information in this database related to a cardholder’s specific medical condition is protected in
5	accordance with subdivision (k)(1).
6	(m) It shall be a crime, punishable by up to one hundred eighty (180) days in jail and a
7	one thousand dollar ($1,000) fine, for any person, including an employee or official of the
8	departments of health, business regulation, public safety, or another state agency or local
9	government, to breach the confidentiality of information obtained pursuant to this chapter.
10	Notwithstanding this provision, the department of health and department of business regulation
11	employees may notify law enforcement about falsified or fraudulent information submitted to the
12	department or violations of this chapter. Nothing in this act shall be construed as to prohibit law
13	enforcement, public safety, fire, or building officials from investigating violations of, or enforcing
14	state law.
15	(n) On or before the fifteenth day of the month following the end of each quarter of the
16	fiscal year, the department of health and the department of business regulation shall report to the
17	governor, the speaker of the house of representatives, and the president of the senate on
18	applications for the use of marijuana for symptom relief. The report shall provide:
19	(1) The number of applications for registration as a qualifying patient, primary caregiver,
20	or authorized purchaser that have been made to the department of health and the department of
21	business regulation during the preceding quarter, the number of qualifying patients, primary
22	caregivers, and authorized purchasers approved, the nature of the debilitating medical conditions
23	of the qualifying patients, the number of registrations revoked, and the number and
24	specializations, if any, of practitioners providing written certification for qualifying patients.
25	(o) On or before September 30 of each year, the department of health and the department
26	of business regulation, as applicable, shall report to the governor, the speaker of the house of
27	representatives, and the president of the senate on the use of marijuana for symptom relief. The
28	report shall provide:
29	(1) The total number of applications for registration as a qualifying patient, primary
30	caregiver, or authorized purchaser that have been made to the department of health and the
31	department of business regulation, the number of qualifying patients, primary caregivers, and
32	authorized purchasers approved, the nature of the debilitating medical conditions of the
33	qualifying patients, the number of registrations revoked, and the number and specializations, if
34	any, of practitioners providing written certification for qualifying patients;
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1	(2) The number of active qualifying patient, primary caregiver, and authorized purchaser
2	registrations as of June 30 of the preceding fiscal year;
3	(3) An evaluation of the costs permitting the use of marijuana for symptom relief,
4	including any costs to law enforcement agencies and costs of any litigation;
5	(4) Statistics regarding the number of marijuana-related prosecutions against registered
6	patients and caregivers, and an analysis of the facts underlying those prosecutions;
7	(5) Statistics regarding the number of prosecutions against physicians for violations of
8	this chapter; and
9	(6) Whether the United States Food and Drug Administration has altered its position
10	regarding the use of marijuana for medical purposes or has approved alternative delivery systems
11	for marijuana.
12	(p) After June 30, 2018, the department of business regulation shall report to the speaker
13	of the house, senate president, the respective fiscal committee chairpersons, and fiscal advisors
14	within 60 days of the close of the prior fiscal year. The report shall provide:
15	(1) The number of applications for registry identification cards to compassion center
16	staff, the number approved, denied and the number of registry identification cards revoked, and
17	the number of replacement cards issued;
18	(2) The number of applications for compassion centers and licensed cultivators;
19	(3) The number of marijuana plant tag sets ordered, delivered, and currently held within
20	the state;
21	(4) The total revenue collections of any monies related to its regulator activities for the
22	prior fiscal year, by the relevant category of collection, including enumerating specifically the
23	total amount of revenues foregone or fees paid at reduced rates pursuant to this chapter.
24	21-28.6-7. Scope of chapter.
25	(a) This chapter shall not permit:
26	(1) Any person to undertake any task under the influence of marijuana, when doing so
27	would constitute negligence or professional malpractice;
28	(2) The smoking of marijuana:
29	(i) In a school bus or other form of public transportation;
30	(ii) On any school grounds;
31	(iii) In any correctional facility;
32	(iv) In any public place;
33	(v) In any licensed drug treatment facility in this state; or
34	(vi) Where exposure to the marijuana smoke significantly adversely affects the health,
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1	safety, or welfare of children.
2	(3) Any person to operate, navigate, or be in actual physical control of any motor vehicle,
3	aircraft, or motorboat while under the influence of marijuana. However, a registered qualifying
4	patient shall not be considered to be under the influence solely for having marijuana metabolites
5	in his or her system.
6	(4) The operation of a medical marijuana emporium is prohibited in this state without a
7	license issued by the department of business regulation.
8	(b) Nothing in this chapter shall be construed to require:
9	(1) A government medical assistance program or private health insurer to reimburse a
10	person for costs associated with the medical use of marijuana; or
11	(2) An employer to accommodate the medical use of marijuana in any workplace.
12	(c) Fraudulent representation to a law enforcement official of any fact or circumstance
13	relating to the medical use of marijuana to avoid arrest or prosecution shall be punishable by a
14	fine of five hundred dollars ($500) which shall be in addition to any other penalties that may
15	apply for making a false statement for the nonmedical use of marijuana.
16	21-28.6-8. Affirmative defense and dismissal.
17	(a) Except as provided in § 21-28.6-7, a qualifying patient may assert the medical
18	purpose for using marijuana as a defense to any prosecution involving marijuana, and such
19	defense shall be presumed valid where the evidence shows that:
20	(1) The qualifying patient's practitioner has stated that, in the practitioner's professional
21	opinion, after having completed a full assessment of the person's medical history and current
22	medical condition made in the course of a bona fide practitioner-patient relationship, the potential
23	benefits of using marijuana for medical purposes would likely outweigh the health risks for the
24	qualifying patient; and
25	(2) The qualifying patient was compliant with this chapter and all regulations
26	promulgated hereunder and was in possession of a quantity of marijuana that was not more than
27	what is permitted under this chapter to ensure the uninterrupted availability of marijuana for the
28	purpose of alleviating the person's medical condition or symptoms associated with the medical
29	condition.
30	(b) A person may assert the medical purpose for using marijuana in a motion to dismiss,
31	and the charges shall be dismissed following an evidentiary hearing where the defendant shows
32	the elements listed in subsection (a) of this section.
33	(c) Any interest in, or right to, property that was possessed, owned, or used in connection
34	with a qualifying patient's use of marijuana for medical purposes shall not be forfeited if the
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1	qualifying patient demonstrates the qualifying patient's medical purpose for using marijuana
2	pursuant to this section.
3	21-28.6-9. Enforcement.
4	(a) If the department of health fails to adopt regulations to implement this chapter within
5	one hundred twenty (120) days of the effective date of this act, a qualifying patient may
6	commence an action in a court of competent jurisdiction to compel the department to perform the
7	actions mandated pursuant to the provisions of this chapter.
8	(b) If the department of health or the department of business regulation fails to issue a
9	valid registry identification card in response to a valid application submitted pursuant to this
10	chapter within thirty-five (35) days of its submission, the registry identification card shall be
11	deemed granted and a copy of the registry identification application shall be deemed a valid
12	registry identification card.
13	(c) The department of health and the department of business regulation shall revoke and
14	shall not reissue, the registry identification card of any cardholder or licensee who is convicted of;
15	placed on probation; whose case is filed pursuant to § 12-10-12 where the defendant pleads nolo
16	contendere; or whose case is deferred pursuant to § 12-19-19 where the defendant pleads nolo
17	contendere for any felony offense under chapter 28 of title 21 ("Rhode Island Controlled
18	Substances Act") or a similar offense from any other jurisdiction.
19	(d) If a cardholder exceeds the possession limits set forth in §§ 21-28.6-4 or 21-28.6-14,
20	or is in violation of any other section of this chapter or the regulations promulgated hereunder, he
21	or she shall may be subject to arrest and prosecution under chapter 28 of title 21 ("Rhode Island
22	Controlled Substances Act").
23	(e) (1) Notwithstanding any other provision of this chapter, if the director of the
24	department of business regulation or his or her designee has cause to believe that a violation of
25	any provision of chapter 21-28.6 or the regulations promulgated thereunder has occurred by a
26	licensee or registrant under the department’s jurisdiction, or that any person or entity is
27	conducting any activities requiring licensure or registration by the department of business
28	regulation under chapter 21-28.6 or the regulations promulgated thereunder without such
29	licensure or registration, the director or his or her designee may, in accordance with the
30	requirements of the administrative procedures act, chapter 35 of title 42:
31	(i) Revoke or suspend a license or registration;
32	(ii) Levy an administrative penalty in an amount established pursuant to regulations
33	promulgated by the department of business regulation;
34	(iii) Order the violator to cease and desist such actions;
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1	(iv) Require a licensee or registrant or person or entity conducting any activities requiring
2	licensure or registration under chapter 21-28.6 to take such actions as are necessary to comply
3	with such chapter and the regulations promulgated thereunder; or
4	(v) Any combination of the above penalties.
5	(2) If the director of the department of business regulation finds that public health, safety,
6	or welfare imperatively requires emergency action, and incorporates a finding to that effect in his
7	or her order, summary suspension of license or registration and/or cease and desist may be
8	ordered pending proceedings for revocation or other action. These proceedings shall be promptly
9	instituted and determined.
10	(f) All medical marijuana products that are held for sale or distribution within the borders
11	of this state in violation of the requirements of this chapter are declared to be contraband goods
12	and may be seized by the department of business regulation, the tax administrator or his or her
13	agents, or employees, or by any sheriff, or his or her deputy, or any police officer when requested
14	by the tax administrator or the department of business regulation to do so, without a warrant. All
15	contraband goods seized by the state under this chapter may be destroyed.
16	21-28.6-12. Compassion centers.
17	(a) A compassion center registered licensed under this section may acquire, possess,
18	cultivate, manufacture, deliver, transfer, transport, supply, or dispense marijuana, or related
19	supplies and educational materials, to registered qualifying patients and their registered primary
20	caregivers or authorized purchasers, out of state patient cardholders, or other marijuana business
21	license holders, in accordance with regulations promulgated by the department of business
22	regulation. Except as specifically provided to the contrary, all provisions of the Edward O.
23	Hawkins and Thomas C. Slater Medical Marijuana Act, §§ 21-28.6-1 et seq., apply to a
24	compassion center unless they conflict with a provision contained in § 21-28.6-12.
25	(b) Registration License of compassion centers--authority of the departments of health
26	and business regulation:
27	(1) Not later than ninety (90) days after the effective date of this chapter, the department
28	of health shall promulgate regulations governing the manner in which it shall consider
29	applications for registration certificates licenses for compassion centers, including regulations
30	governing:
31	(i) The form and content of registration license and renewal applications;
32	(ii) Minimum oversight requirements for compassion centers;
33	(iii) Minimum record-keeping requirements for compassion centers;
34	(iv) Minimum security requirements for compassion centers; and
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1	(v) Procedures for suspending, revoking, or terminating the registration license of
2	compassion centers that violate the provisions of this section or the regulations promulgated
3	pursuant to this subsection.
4	(2) Within ninety (90) days of the effective date of this chapter, the department of health
5	shall begin accepting applications for the operation of a single compassion center.
6	(3) Within one hundred fifty (150) days of the effective date of this chapter, the
7	department of health shall provide for at least one public hearing on the granting of an application
8	to a single compassion center.
9	(4) Within one hundred ninety (190) days of the effective date of this chapter, the
10	department of health shall grant a single registration certificate license to a single compassion
11	center, providing at least one applicant has applied who meets the requirements of this chapter.
12	(5) If at any time after fifteen (15) months after the effective date of this chapter, there is
13	no operational compassion center in Rhode Island, the department of health shall accept
14	applications, provide for input from the public, and issue a registration certificate license for a
15	compassion center if a qualified applicant exists.
16	(6) Within two (2) years of the effective date of this chapter, the department of health
17	shall begin accepting applications to provide registration certificates licenses for two (2)
18	additional compassion centers. The department shall solicit input from the public, and issue
19	registration certificates licenses if qualified applicants exist.
20	(7)(i) Any time a compassion center registration certificate license is revoked, is
21	relinquished, or expires on or before December 31, 2016, the department of health shall accept
22	applications for a new compassion center.
23	(ii) Any time a compassion center registration certificate license is revoked, is
24	relinquished, or expires on or after January 1, 2017, the department of business regulation shall
25	accept applications for a new compassion center.
26	(8) (i) If at any time after three (3) years after the effective date of this chapter and on or
27	before December 31, 2016, fewer than three (3) compassion centers are holding valid registration
28	certificates licenses in Rhode Island, the department of health shall accept applications for a new
29	compassion center. If at any time on or after January 1, 2019, fewer than three (3) nine (9)
30	compassion centers are holding valid registration certificates licenses in Rhode Island, or are
31	approved by the department of business regulation, the department of business regulation shall
32	accept applications for a new compassion center. No more than nine (9) three (3) compassion
33	centers may hold valid registration certificates licenses at one time.
34	(ii) Before September 1, 2019 the department of business regulation shall not accept
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1	applications for additional compassion centers except for those submitted by a compassion center
2	that is licensed by the department. A compassion center that holds a license in good standing by
3	the department and whose application meets the requirements of this chapter including the
4	payment of all applicable fees, shall be issued a second compassion center license for the retail
5	sale of medical marijuana.
6	(iii) On and after September 1, 2019 the department of business regulation shall accept
7	applications from all other applicants.
8	(9) Any compassion center application selected for approval by the department of health
9	on or before December 31, 2016, or selected for approval by the department of business
10	regulation on or after January 1, 2017, shall remain in full force and effect, notwithstanding any
11	provisions of this chapter to the contrary, and shall be subject to state law adopted herein and
12	rules and regulations adopted by the departments of health and business regulation subsequent to
13	passage of this legislation.
14	(c) Compassion center and agent applications and registration license:
15	(1) Each application for a compassion center shall include be submitted in accordance
16	with regulations promulgated by the department of business regulation and shall include but not
17	be limited to:
18	(i) A non-refundable application fee paid to the department in the amount of two hundred
19	fifty dollars ($250) ten thousand dollars ($10,000);
20	(ii) The proposed legal name and proposed articles of incorporation of the compassion
21	center;
22	(iii) The proposed physical address of the compassion center, if a precise address has
23	been determined, or, if not, the general location where it would be located. This may include a
24	second location for the a second compassion center retail location in accordance with 21-28.6-12
25	(b)(8)(ii) cultivation of medical marijuana;
26	(iv) A description of the enclosed, locked facility that would be used in the cultivation of
27	marijuana;
28	(v) The name, address, and date of birth of each principal officer and board member of
29	the compassion center;
30	(vi)(v) Proposed security and safety measures that shall include at least one security
31	alarm system for each location, planned measures to deter and prevent the unauthorized entrance
32	into areas containing marijuana and the theft of marijuana, as well as a draft, employee-
33	instruction manual including security policies, safety and security procedures, personal safety,
34	and crime-prevention techniques; and
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1	(vii)(vi) Proposed procedures to ensure accurate record keeping;
2	(2)(i) For applications submitted on or before December 31, 2016, any time one or more
3	compassion center registration license applications are being considered, the department of health
4	shall also allow for comment by the public and shall solicit input from registered qualifying
5	patients, registered primary caregivers; and the towns or cities where the applicants would be
6	located;
7	(ii) For applications submitted on or after January 1, 2017, any time one or more
8	compassion center registration license applications are being considered, the department of
9	business regulation shall also allow for comment by the public and shall solicit input from
10	registered qualifying patients, registered primary caregivers; and the towns or cities where the
11	applicants would be located.
12	(3) Each time a new compassion center certificate license is granted issued, the decision
13	shall be based upon the overall health needs of qualified patients and the safety of the public,
14	including, but not limited to, the following factors:
15	(i) Convenience to patients from underserved areas throughout the state of Rhode Island
16	to the compassion centers if the applicant were approved;
17	(ii) The applicant's ability to provide a steady supply to the registered qualifying patients
18	in the state;
19	(iii) The applicant's experience running a non-profit or business;
20	(iv) The interests of qualifying patients regarding which applicant be granted a
21	registration certificate license;
22	(v) The interests of the city or town where the dispensary would be located;
23	(vi) The sufficiency of the applicant's plans for record keeping and security, which
24	records shall be considered confidential health-care information under Rhode Island law and are
25	intended to be deemed protected health-care information for purposes of the Federal Health
26	Insurance Portability and Accountability Act of 1996, as amended; and
27	(vii) The sufficiency of the applicant's plans for safety and security, including proposed
28	location, security devices employed, and staffing;
29	(4) A compassion center approved by the department of health on or before December
30	31, 2016, shall submit the following to the department before it may begin operations:
31	(i) A fee paid to the department in the amount of five thousand dollars ($5,000);
32	(ii) The legal name and articles of incorporation of the compassion center;
33	(iii) The physical address of the compassion center; this may include a second address for
34	the secure cultivation of marijuana;
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1	(iv) The name, address, and date of birth of each principal officer and board member of
2	the compassion center; and
3	(v) The name, address, and date of birth of any person who will be an agent of, employee,
4	or volunteer of the compassion center at its inception.
5	(5) A compassion center approved or renewed by the department of business regulation
6	on or after January 1, 2017, shall submit materials pursuant to regulations promulgated by the
7	department of business regulation the following to the department before it may begin operations
8	which shall include but not be limited to:
9	(i) A fee paid to the department in the amount of five fifty thousand dollars ($550,000);
10	(ii) The legal name and articles of incorporation of the compassion center;
11	(iii) The physical address of the compassion center; this may include a second address for
12	the secure cultivation of marijuana
13	(iv) The name, address, and date of birth of each principal officer and board member of
14	the compassion center;
15	(v) The name, address, and date of birth of any person who will be an agent of, employee,
16	or volunteer of the compassion center at its inception.
17	(6) Except as provided in subdivision (7), the department of health or the department of
18	business regulation shall issue each principal officer, board member, agent, volunteer, and
19	employee of a compassion center a registry identification card or renewal card after receipt of the
20	person's name, address, date of birth; a fee in an amount established by the department of health
21	or the department of business regulation; and, except in the case of an employee, notification to
22	the department of health or the department of business regulation by the department of public
23	safety division of state police, attorney general’s office, or local law enforcement that the registry
24	identification card applicant has not been convicted of a felony drug offense or has not entered a
25	plea of nolo contendere for a felony drug offense and received a sentence of probation. Each card
26	shall specify that the cardholder is a principal officer, board member, agent, volunteer, or
27	employee of a compassion center and shall contain the following:
28	(i) The name, address, and date of birth of the principal officer, board member, agent,
29	volunteer, or employee;
30	(ii) The legal name of the compassion center to which the principal officer, board
31	member, agent, volunteer, or employee is affiliated;
32	(iii) A random identification number that is unique to the cardholder;
33	(iv) The date of issuance and expiration date of the registry identification card; and
34	(v) A photograph, if the department of health or the department of business regulation
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1	decides to require one; and
2	(vi) Any other information or card classification that the department of business
3	regulation requires.
4	(7) Except as provided in this subsection, neither the department of health nor the
5	department of business regulation shall issue a registry identification card to any principal officer,
6	board member, or agent, volunteer, or employee of a compassion center who has been convicted
7	of a felony drug offense or has entered a plea of nolo contendere for a felony drug offense and
8	received a sentence of probation. If a registry identification card is denied, the compassion center
9	will be notified in writing of the purpose for denying the registry identification card. A registry
10	identification card may be granted if the offense was for conduct that occurred prior to the
11	enactment of the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act or that was
12	prosecuted by an authority other than the state of Rhode Island and for which the Edward O.
13	Hawkins and Thomas C. Slater Medical Marijuana Act would otherwise have prevented a
14	conviction.
15	(i) All registry identification card applicants shall apply to the department of public safety
16	division of state police, the attorney general’s office, or local law enforcement for a national
17	criminal identification records check that shall include fingerprints submitted to the federal
18	bureau of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo
19	contendere for a felony drug offense with a sentence of probation, and in accordance with the
20	rules promulgated by the department of health and the department of business regulation, the
21	department of public safety division of state police, the attorney general’s office, or local law
22	enforcement shall inform the applicant, in writing, of the nature of the felony and the department
23	of public safety division of state police shall notify the department of health or the department of
24	business regulation, in writing, without disclosing the nature of the felony, that a felony drug
25	offense conviction or a plea of nolo contendere for a felony drug offense with probation has been
26	found.
27	(ii) In those situations in which no felony drug offense conviction or plea of nolo
28	contendere for a felony drug offense with probation has been found, the department of public
29	safety division of state police, the attorney general’s office, or local law enforcement shall inform
30	the applicant and the department of health or the department of business regulation, in writing, of
31	this fact.
32	(iii) All registry identification card applicants except for employees with no ownership,
33	equity, financial interest, or managing control of a marijuana establishment license shall be
34	responsible for any expense associated with the criminal background check with fingerprints.
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1	(8) A registry identification card of a principal officer, board member, agent, volunteer,
2	or employee, or any other designation required by the department of business regulation shall
3	expire one year after its issuance, or upon the expiration of the registered licensed organization's
4	registration certificate license, or upon the termination of the principal officer, board member,
5	agent, volunteer or employee's relationship with the compassion center, whichever occurs first.
6	(9) A compassion center cardholder shall notify and request approval from the
7	department of business regulation of any change in his or her name or address within ten
8	(10) days of such change. A compassion center cardholder who fails to notify the department of
9	business regulation of any of these changes is responsible for a civil infraction, punishable by a
10	fine of no more than one hundred fifty dollars ($150).
11	(10) When a compassion center cardholder notifies the department of health or the
12	department of business regulation of any changes listed in this subsection, the department shall
13	issue the cardholder a new registry identification card within ten (10) days of receiving the
14	updated information and a ten-dollar ($10.00) fee.
15	(11) If a compassion center cardholder loses his or her registry identification card, he or
16	she shall notify the department of health or the department of business regulation and submit a
17	ten-dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the
18	department shall issue a new registry identification card with new random identification number.
19	(12) On or before December 31, 2016, a compassion center cardholder shall notify the
20	department of health of any disqualifying criminal convictions as defined in subdivision (c)(7).
21	The department of health may choose to suspend and/or revoke his or her registry identification
22	card after such notification.
23	(13) On or after January 1, 2017, a compassion center cardholder shall notify the
24	department of business regulation of any disqualifying criminal convictions as defined in
25	subdivision (c)(7). The department of business regulation may choose to suspend and/or revoke
26	his or her registry identification card after such notification.
27	(14) If a compassion center cardholder violates any provision of this chapter or
28	regulations promulgated hereunder as determined by the departments of health and business
29	regulation, his or her registry identification card may be suspended and/or revoked.
30	(d) Expiration or termination of compassion center:
31	(1) On or before December 31, 2016, a compassion center's registration license shall
32	expire two (2) years after its registration certificate license is issued. On or after January 1, 2017,
33	a compassion center's registration license shall expire one year after its registration certificate
34	license is issued. The compassion center may submit a renewal application beginning sixty (60)
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1	days prior to the expiration of its registration certificate license;
2	(2) The department of health or the department of business regulation shall grant a
3	compassion center's renewal application within thirty (30) days of its submission if the following
4	conditions are all satisfied:
5	(i) The compassion center submits the materials required under subdivisions (c)(4) and
6	(c)(5), including a two hundred fifty thousand dollar fifty thousand dollar ($25050,000) fee;
7	(ii) The compassion center's registration license has never been suspended for violations
8	of this chapter or regulations issued pursuant to this chapter; and
9	(iii) The department of health and the department of business regulation find that the
10	compassion center is adequately providing patients with access to medical marijuana at
11	reasonable rates;
12	(3) If the department of health or the department of business regulation determines that
13	any of the conditions listed in paragraphs (d)(2)(i) -- (iii) have not been met, the department shall
14	may begin an open application process for the operation of a compassion center. In granting a
15	new registration certificate license, the department of health or the department of business
16	regulation shall consider factors listed in subdivision (c)(3);
17	(4) The department of health or the department of business regulation shall issue a
18	compassion center one or more thirty-day (30) temporary registration certificates licenses after
19	that compassion center's registration license would otherwise expire if the following conditions
20	are all satisfied:
21	(i) The compassion center previously applied for a renewal, but the department had not
22	yet come to a decision;
23	(ii) The compassion center requested a temporary registration certificate license; and
24	(iii) The compassion center has not had its registration certificate license suspended or
25	revoked due to violations of this chapter or regulations issued pursuant to this chapter.
26	(5) A compassion center's registry identification card license shall be subject to
27	revocation if the compassion center:
28	(i) Possesses an amount of marijuana exceeding the limits established by this chapter;
29	(ii) Is in violation of the laws of this state;
30	(iii) Is in violation of other departmental regulations; or
31	(iv) Employs or enters into a business relationship with a medical practitioner who
32	provides written certification of a qualifying patient's medical condition.
33	(e) Inspection. Compassion centers are subject to reasonable inspection by the department
34	of health, division of facilities regulation and the department of business regulation. During an
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1	inspection, the departments may review the compassion center's confidential records, including
2	its dispensing records, which shall track transactions according to qualifying patients' registry
3	identification numbers to protect their confidentiality.
4	(f) Compassion center requirements:
5	(1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit
6	of its patients. A compassion center need not be recognized as a tax-exempt organization by the
7	Internal Revenue Service;. A compassion center shall be subject to regulations promulgated by
8	the department of business regulation for general operations and record keeping which shall
9	include but not be limited to:
10	(i) Minimum security and surveillance requirements;
11	(ii) Minimum requirements for workplace safety and sanitation;
12	(iii) Minimum requirements for product safety and testing;
13	(iv) Minimum requirements for inventory tracking and monitoring;
14	(v) Minimum requirements for the secure transport and transfer of medical marijuana;
15	(vi) Minimum requirements to address odor mitigation;
16	(vii) Minimum requirements for product packaging and labeling;
17	(viii) Minimum requirements for advertising;
18	(ix) Minimum requirements for the testing and destruction of marijuana. Wherever
19	destruction of medical marijuana and medical marijuana product is required to bring a person or
20	entity into compliance with any provision of chapter 21-28.6, any rule or regulation promulgated
21	thereunder, or any administrative order issued in accordance therewith, the director of the
22	department of business regulation may designate his or her employees or agents to facilitate said
23	destruction;
24	(x) A requirement that if a compassion center violates this chapter, or any regulation
25	thereunder, and the department of business regulation determines that violation does not pose an
26	immediate threat to public health or public safety, the compassion center shall pay to the
27	department of business regulation a fine of no less than five-hundred dollars ($500); and
28	(xi) A requirement that if f a compassion center violates this chapter, or any regulation
29	promulgated hereunder, and the department of business regulation determines that the violation
30	poses an immediate threat to public health or public safety, the compassion center shall pay to the
31	department of business regulation a fine of no less than two-thousand dollars ($2,000) and the
32	department shall be entitled to pursue any other enforcement action provided for under this
33	chapter and the regulations.
34	(2) A compassion center may not be located within one thousand feet (1,000') of the
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1	property line of a preexisting public or private school;
2	(3) On or before December 31, 2016, a compassion center shall notify the department of
3	health within ten (10) days of when a principal officer, board member, agent, volunteer, or
4	employee ceases to work at the compassion center. On or after January 1, 2017, a compassion
5	center shall notify the department of business regulation within ten (10) days of when a principal
6	officer, board member, agent, volunteer, or employee ceases to work at the compassion center.
7	His or her card shall be deemed null and void and the person shall be liable for any penalties that
8	may apply to any nonmedical possession or use of marijuana by the person;
9	(4)(i) On or before December 31, 2016, a compassion center shall notify the department
10	of health in writing of the name, address, and date of birth of any new principal officer, board
11	member, agent, volunteer or employee and shall submit a fee in an amount established by the
12	department for a new registry identification card before that person begins his or her relationship
13	with the compassion center;
14	(ii) On or after January 1, 2017, a compassion center shall notify the department of
15	business regulation, in writing, of the name, address, and date of birth of any new principal
16	officer, board member, agent, volunteer, or employee and shall submit a fee in an amount
17	established by the department of business regulation for a new registry identification card before
18	that person begins his or her relationship with the compassion center;
19	(5) A compassion center shall implement appropriate security measures to deter and
20	prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and
21	shall insure that each location has an operational security alarm system. Each compassion center
22	shall request that the department of public safety division of state police visit the compassion
23	center to inspect the security of the facility and make any recommendations regarding the security
24	of the facility and its personnel within ten (10) days prior to the initial opening of each
25	compassion center. Said recommendations shall not be binding upon any compassion center, nor
26	shall the lack of implementation of said recommendations delay or prevent the opening or
27	operation of any center. If the department of public safety division of state police does not inspect
28	the compassion center within the ten-day (10) period, there shall be no delay in the compassion
29	center's opening.
30	(6) The operating documents of a compassion center shall include procedures for the
31	oversight of the compassion center and procedures to ensure accurate record keeping.
32	(7) A compassion center is prohibited from acquiring, possessing, cultivating,
33	manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any
34	purpose except to assist registered qualifying patient cardholders with the medical use of
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1	marijuana directly or through the qualifying patient's primary caregiver or authorized purchaser,
2	unless otherwise authorized by the department of business regulations in accordance with
3	regulations promulgated by the department.
4	(8) All principal officers and board members of a compassion center must be residents of
5	the state of Rhode Island.
6	(9) Each time a new, registered, qualifying patient visits a compassion center, it shall
7	provide the patient with a frequently asked questions sheet, designed by the department, that
8	explains the limitations on the right to use medical marijuana under state law.
9	(10) Effective July 1, 20167, each compassion center shall be subject to any regulations
10	promulgated by the department of health and business regulation that specify how usable
11	marijuana must be tested for items included but not limited to cannabinoid profile and
12	contaminants.
13	(11) Effective January 1, 2017, each compassion center shall be subject to any product
14	labeling requirements promulgated by the department of business regulation.
15	(12) Each compassion center shall develop, implement, and maintain on the premises
16	employee, volunteer, and agent policies and procedures to address the following requirements:
17	(i) A job description or employment contract developed for all employees and agents, and
18	a volunteer agreement for all volunteers, that includes duties, authority, responsibilities,
19	qualifications, and supervision; and
20	(ii) Training in, and adherence to, state confidentiality laws.
21	(13) Each compassion center shall maintain a personnel record for each employee, agent,
22	and volunteer that includes an application and a record of any disciplinary action taken.
23	(14) Each compassion center shall develop, implement, and maintain on the premises an
24	on-site training curriculum, or enter into contractual relationships with outside resources capable
25	of meeting employee training needs, that includes, but is not limited to, the following topics:
26	(i) Professional conduct, ethics, and patient confidentiality; and
27	(ii) Informational developments in the field of medical use of marijuana.
28	(15) Each compassion center entity shall provide each employee, agent, and volunteer, at
29	the time of his or her initial appointment, training in the following:
30	(i) The proper use of security measures and controls that have been adopted; and
31	(ii) Specific procedural instructions on how to respond to an emergency, including
32	robbery or violent accident.
33	(16) All compassion centers shall prepare training documentation for each employee and
34	volunteer and have employees and volunteers sign a statement indicating the date, time, and place
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1	the employee and volunteer received said training and topics discussed, to include name and title
2	of presenters. The compassion center shall maintain documentation of an employee's and a
3	volunteer's training for a period of at least six (6) months after termination of an employee's
4	employment or the volunteer's volunteering.
5	(g) Maximum amount of usable marijuana to be dispensed:
6	(1) A compassion center or principal officer, board member, agent, volunteer, or
7	employee of a compassion center may not dispense more than two and one half ounces (2.5 three
8	(3oz.) of dried usable marijuana, or its equivalent, to a patient cardholder or qualifying patient
9	directly or through a qualifying patient's primary caregiver or authorized purchaser during a
10	fifteen-day (15) period;
11	(2) A compassion center or principal officer, board member, agent, volunteer, or
12	employee of a compassion center may not dispense an amount of usable marijuana, or its
13	equivalent, seedlings, or mature marijuana plants, to a patient cardholder, qualifying patient, a
14	qualifying patient's primary caregiver, or a qualifying patient's authorized purchaser that the
15	compassion center, principal officer, board member, agent, volunteer, or employee knows would
16	cause the recipient to possess more marijuana than is permitted under the Edward O. Hawkins
17	and Thomas C. Slater Medical Marijuana Act.
18	(3) Compassion centers shall utilize a database administered by the departments of health
19	and business regulation. The database shall contains all compassion centers' transactions
20	according to qualifying patients' cardholders, authorized purchasers', and primary caregivers'
21	registry identification numbers, or other means as specified by the department(s) to protect the
22	confidentiality of patient personal and medical information. Compassion centers will not have
23	access to any applications or supporting information submitted by qualifying patients, authorized
24	purchasers or primary caregivers. Before dispensing marijuana to any patient, caregiver, or
25	authorized purchaser, the compassion center must utilize the database to ensure that a qualifying
26	patient cardholder is not dispensed more than two and one half ounces (2.5 three (3) ounces of
27	dried usable marijuana or its equivalent directly or through the qualifying patient's primary
28	caregiver or authorized purchaser during a fifteen-day (15) period.
29	(h) Immunity:
30	(1) No registered licensed compassion center shall be subject to prosecution; search,
31	except by the departments pursuant to subsection (e); seizure; or penalty in any manner, or denied
32	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
33	business, occupational, or professional licensing board or entity, solely for acting in accordance
34	with this section to assist registered qualifying patients.
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1	(2) No registered licensed compassion center shall be subject to prosecution, seizure, or
2	penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty
3	or disciplinary action, by a business, occupational, or professional licensing board or entity, for
4	selling, giving, or distributing marijuana in whatever form, and within the limits established by,
5	the department of health or the department of business regulation to another registered
6	compassion center.
7	(3) No principal officers, board members, agents, volunteers, or employees of a registered
8	compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in any
9	manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary
10	action by a business, occupational, or professional licensing board or entity, solely for working
11	for or with a compassion center to engage in acts permitted by this section.
12	(4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or
13	denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,
14	termination, or loss of employee or pension benefits, for any and all conduct that occurs within
15	the scope of his or her employment regarding the administration, execution and/or enforcement of
16	this act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.
17	(i) Prohibitions:
18	(1) A compassion center must limit its inventory of seedlings, plants, and usable
19	marijuana to reflect the projected needs of qualifying patients; (i) A compassion center may not
20	cultivate marijuana or manufacture or process marijuana products pursuant to its compassion
21	center registration, provided that cultivation, processing and manufacture may be conducted
22	under a medical marijuana cultivator license and/or a medical marijuana processor license which
23	may be issued to a compassion center by the department of business regulation pursuant to
24	regulations promulgated by the department.
25	(ii) A compassion center which was approved by the department of health or renewed by
26	the department of business regulation prior to July 1, 2019 may also hold a medical marijuana
27	cultivator license and a medical marijuana processor license and shall be issued said license or
28	licenses in accordance with regulations promulgated by the department of business regulation,
29	provided that the class or classes of said medical marijuana cultivator license and medical
30	marijuana processor license shall correspond to the size and scope of any growing,
31	manufacturing, or processing facility or facilities which were in operation or were approved prior
32	to July 1, 2019.
33	(iii) A compassion center which is first approved by the department of business
34	regulation on or after July 1, 2019 may also hold a medical marijuana cultivator license and a
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1	medical marijuana processor license in accordance with regulations promulgated by the
2	department of business regulation, provided the class or classes of said medical marijuana
3	cultivator license and medical marijuana processor license shall correspond to the size of any
4	growing, manufacturing, or processing facility or facilities which were licensed or approved by
5	the department of business regulation prior to July 1, 2019.
6	(2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a
7	person other than a patient cardholder or to such qualified patient's primary caregiver or
8	authorized purchaser;
9	(3) A compassion center may not procure, purchase, transfer or sell marijuana to or from
10	any entity other than a marijuana establishment licensee in accordance with regulations
11	promulgated by the department of business regulation.
12	(34) A person found to have violated paragraph (2) or (3) this subsection may not be an
13	employee, agent, volunteer, principal officer, or board member of any compassion center;
14	(45) An employee, agent, volunteer, principal officer or board member of any
15	compassion center found in violation of paragraph (2) or (3) shall have his or her registry
16	identification revoked immediately; and
17	(56) No person who has been convicted of a felony drug offense or has entered a plea of
18	nolo contendere for a felony drug offense with a sentence or probation may be the principal
19	officer, board member, or agent, volunteer, or employee of a compassion center unless the
20	department has determined that the person's conviction was for the medical use of marijuana or
21	assisting with the medical use of marijuana in accordance with the terms and conditions of this
22	chapter. A person who is employed by or is an agent, volunteer, principal officer, or board
23	member of a compassion center in violation of this section is guilty of a civil violation punishable
24	by a fine of up to one thousand dollars ($1,000). A subsequent violation of this section is a
25	misdemeanor.
26	(j) Legislative oversight committee:
27	(1) The general assembly shall appoint a nine-member (9) oversight committee
28	comprised of: one member of the house of representatives; one member of the senate; one
29	physician to be selected from a list provided by the Rhode Island medical society; one nurse to be
30	selected from a list provided by the Rhode Island state nurses association; two (2) registered
31	qualifying patients; one registered primary caregiver; one patient advocate to be selected from a
32	list provided by the Rhode Island patient advocacy coalition; and the superintendent of the
33	department of public safety, or his/her designee.
34	(2) The oversight committee shall meet at least six (6) times per year for the purpose of
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1	evaluating and making recommendations to the general assembly regarding:
2	(i) Patients' access to medical marijuana;
3	(ii) Efficacy of compassion centers;
4	(iii) Physician participation in the Medical Marijuana Program;
5	(iv) The definition of qualifying medical condition; and
6	(v) Research studies regarding health effects of medical marijuana for patients.
7	(3) On or before January 1 of every even numbered year, the oversight committee shall
8	report to the general assembly on its findings.
9	(k) License required. No person or entity shall engage in activities described in this § 21-
10	28.6-12 without a compassion center license issued by the department of business regulation.
11	21-28.6-14. Cooperative cultivations.
12	(a) Two (2) or more qualifying cardholders may cooperatively cultivate marijuana in
13	residential or non-residential locations subject to the following restrictions:
14	(1) Effective January 1, 2017, cooperative cultivations shall apply to the department of
15	business regulation for a license to operate;
16	(2) A registered patient or primary caregiver cardholder can only cultivate in one
17	location, including participation in a cooperative cultivation;
18	(3) No single location may have more than one cooperative cultivation. For the purposes
19	of this section, location means one structural building, not units within a structural building;
20	(4) The cooperative cultivation shall not be visible from the street or other public areas;
21	(5) A written acknowledgement of the limitations of the right to use and possess
22	marijuana for medical purposes in Rhode Island that is signed by each cardholder and is
23	displayed prominently in the premises cooperative cultivation;
24	(6) Cooperative cultivations are restricted to the following possession limits:
25	(i) A non-residential, cooperative cultivation may have no more than ten (10) ounces of
26	dried usable marijuana, or its equivalent, and an amount of wet marijuana set in regulations
27	promulgated by the department of business regulation, forty-eight (48) mature marijuana plants,
28	and forty-eight (48) seedlings;
29	(ii) A residential, cooperative cultivation may have no more than ten (10) ounces of dried
30	usable marijuana, or its equivalent, and an amount of wet marijuana set in regulations
31	promulgated by the departments of health and business regulation, twenty-four (24) mature
32	marijuana plants, and twenty-four (24) seedlings;
33	(iii) A non-residential or residential, cooperative cultivation must have displayed
34	prominently on the premises its license issued by the department of business regulation;
	LC000763 - Page 467 of 541
1	(iv) Every marijuana plant possessed by a cooperative cultivation must be accompanied
2	by a valid medical marijuana tag issued by the department of business regulation pursuant to §
3	21-28.6-15. Each cooperative cultivation must purchase at least one medical marijuana tag in
4	order to remain a licensed cooperative cultivation; and
5	(v) Cooperative cultivations are subject to reasonable inspection by the department of
6	business regulation for the purposes of enforcing regulations promulgated pursuant to this chapter
7	and all applicable Rhode Island general laws.
8	(7) Cooperative cultivations must be inspected as follows:
9	(i) A non-residential, cooperative cultivation must have displayed prominently on the
10	premises documentation from the municipality where the single location is located that the
11	location and the cultivation has been inspected by the municipal building and/or zoning official
12	and the municipal fire department and is in compliance with any applicable state or municipal
13	housing and zoning codes; and
14	(ii) A residential, cooperative cultivation must have displayed prominently on the
15	premises an affidavit by a licensed electrician that the cultivation has been inspected and is in
16	compliance with any applicable state or municipal housing and zoning codes for the municipality
17	where the cooperative cultivation is located.
18	(8) Cooperative cultivations must report the location of the cooperative cultivation to the
19	department of public safety.
20	(9) The reports provided to the department of public safety in subsection (8) of this
21	section shall be confidential, but locations may be confirmed for law enforcement purposes. The
22	report of the location of the cooperative cultivation alone shall not constitute probable cause for a
23	search of the cooperative cultivation.
24	(10) The department of business regulation shall promulgate regulations governing the
25	licensing and operation of cooperative cultivations, and may promulgate regulations that set a fee
26	for a cooperative cultivation license.
27	(b) Any violation of any provision of this chapter or regulations promulgated hereunder
28	as determined by the department of business regulation may result in the revocation/suspension of
29	the cooperative cultivation license.
30	(c) License required. No person or entity shall engage in activities described in this § 21-
31	28.6-14 without a cooperative cultivation license issued by the department of business regulation.
32	(d) Effective July 1, 2019, except as to cooperative cultivator licenses issued by the
33	department of business regulation before July 1, 2019, the department of business regulation shall
34	no longer accept applications or renewals for licensed cooperative cultivations and cooperative
	LC000763 - Page 468 of 541
1	cultivations shall no longer be permitted.
2	(e) Effective July 1, 2019, except as permitted in regulations promulgated by the
3	department of business regulation, not more than one registered cardholder shall be permitted to
4	grow marijuana in a dwelling unit or commercial unit, except for two (2) or more qualifying
5	patient or primary caregiver cardholder(s) who are primary residents of the same dwelling unit
6	where the medical marijuana plants are grown and in all instances subject to the plant limits in §
7	21-28.6-4(p).
8	21-28.6-15. Medical marijuana plant tags.
9	(a) Effective January 1, 2017, the department of business regulation shall make medical
10	marijuana tag sets available for purchase. Effective April 1, 2017, every marijuana plant, either
11	mature or seedling immature, grown by a registered patient or primary caregiver, must be
12	accompanied by a physical medical marijuana tag purchased through the department of business
13	regulation and issued by the department of health department of business regulation to qualifying
14	patients and primary caregivers or by the department of business regulation to licensed
15	cultivators.
16	(1) The department of business regulation shall charge an annual fee for each medical
17	marijuana tag set, which shall include one tag for a mature medical marijuana plant and one tag
18	for a seedling an immature plant. If the required fee has not been paid, those medical marijuana
19	tags shall be considered expired and invalid. The fee established by the department of business
20	regulation shall be in accordance with the following requirements:
21	(i) For patient cardholders authorized to grow medical marijuana by the department of
22	health department of business regulation, the fee per tag set shall not exceed twenty-five dollars
23	($25);
24	(ii) For primary caregivers, the fee per tag set shall not exceed twenty-five dollars ($25);
25	(iii) For patients who qualify for reduced registration due to income or disability status,
26	there shall be no fee per tag set;
27	(iv) For caregivers who provide care for a patient cardholder who qualifies for reduced-
28	registration due to income or disability status, there shall be no fee per tag set for such qualifying
29	patient; and
30	(v) For licensed medical marijuana cultivators, the fee per tag set shall be established in
31	regulations promulgated by the department of business regulation.
32	(2) Effective January 1, 2017, tThe department of business regulation shall verify with
33	the department of health that all medical marijuana tag purchases are made by qualifying patient
34	cardholders or primary caregiver cardholders as applicable. The department of health shall
	LC000763 - Page 469 of 541
1	provide this verification according to qualifying patients' and primary caregivers' registry
2	identification numbers and without providing access to any applications or supporting
3	information submitted by qualifying patients to protect patient confidentiality;
4	(3) Effective January July 1, 20179, and thereafter, the department of business regulation
5	shall verify with the department of health that all medical marijuana tag purchases are made by
6	registered patient cardholders, who have notified the department of health of their election to
7	grow medical marijuana, or primary caregiver cardholders in accordance with regulations
8	promulgated by the department. The department of health shall provide this verification
9	according to qualifying patients' and primary caregivers' registry identification numbers and
10	without providing access to any applications or supporting information submitted by qualifying
11	patients to protect patient confidentiality;
12	(4) The department of business regulation shall maintain information pertaining to
13	medical marijuana tags and shall share that information with the department of health.
14	(5) All primary caregivers shall purchase at least one medical marijuana tag set for each
15	patient under their care and all patients growing medical marijuana for themselves or serving as
16	their own caregiver shall purchase at least one medical marijuana tag set.
17	(6) All licensed medical marijuana cultivators shall purchase at least one medical
18	marijuana tag set or utilize a seed to sale tracking system in accordance with regulations
19	promulgated by the department of business regulation.
20	(7) The departments of business regulation and health shall jointly promulgate
21	regulations to establish a process by which medical marijuana tags may be returned to either
22	department. The department of business regulation may choose to reimburse a portion or the
23	entire amount of any fees paid for medical marijuana tags that are subsequently returned.
24	(b) Enforcement:
25	(1) If a patient cardholder, primary caregiver cardholder, licensed medical marijuana
26	processor, compassion center, or licensed medical marijuana cultivator violates any provision of
27	this chapter or the regulations promulgated hereunder as determined by the departments of
28	business regulation and or health, his or her medical marijuana tags may be revoked. In addition,
29	the department that issued the cardholder's registration or the license may revoke the cardholder's
30	registration or license pursuant to § 21-28.6-9.
31	(2) The department of business regulation may revoke and not reissue, pursuant to
32	regulations, medical marijuana tags to any cardholder or licensee who is convicted of; placed on
33	probation; whose case is filed pursuant to § 12-10-12 where the defendant pleads nolo
34	contendere; or whose case is deferred pursuant to § 12-19-19 where the defendant pleads nolo
	LC000763 - Page 470 of 541
1	contendere for any felony offense under chapter 28 of title 21 ("Rhode Island Controlled
2	Substances Act") or a similar offense from any other jurisdiction.
3	(3) If a patient cardholder, primary caregiver cardholder, licensed cooperative cultivation,
4	compassion center, licensed medical marijuana processor licensed medical marijuana cultivator
5	or any other person or entity is found to have mature marijuana plants, or marijuana material
6	without valid medical marijuana tags sets or which are not tracked in accordance with regulation,
7	the department or health or department of business regulation shall impose an administrative
8	penalty in accordance with regulations promulgated by the department on such the patient
9	cardholder, primary caregiver cardholder, licensed cooperative cultivation, compassion center,
10	licensed medical marijuana processor, or licensed medical marijuana cultivator or other person or
11	entity for each untagged mature marijuana plant or unit of untracked marijuana material not in
12	excess of the limits set forth in § 21-28.6-4, § 21-28.6-14 and § 21-28.6-16 of no more than the
13	total fee that would be paid by a cardholder or licensee who purchased medical marijuana tags for
14	such plants in compliance with this chapter.
15	(4) If a patient cardholder, primary caregiver cardholder, or licensed cooperative
16	cultivation is found to have mature marijuana plants exceeding the limits set forth in § 21-28.6-4,
17	§ 21-28.6-14, and § 21-28.6-16 in addition to any penalties that may be imposed pursuant to § 21-
18	28.6-9, the department of health or department of business regulation may impose an
19	administrative penalty on that cardholder or license holder for each mature marijuana plant in
20	excess of the applicable statutory limit of no less than the total fee that would be paid by a
21	cardholder who purchased medical marijuana tags for such plants in compliance with this chapter.
22	21-28.6-16. Licensed medical marijuana cultivators.
23	(a) A licensed medical marijuana cultivator licensed under this section may acquire,
24	possess, cultivate, deliver, or transfer marijuana to licensed compassion centers, to a licensed
25	medical marijuana processor, to another licensed medical marijuana cultivator, or to any other
26	marijuana establishment licensee, in accordance with regulations promulgated by the department
27	of business regulation. A licensed medical marijuana cultivator shall not be a primary caregiver
28	cardholder and shall not hold a cooperative cultivation license. Except as specifically provided to
29	the contrary, all provisions of the Edward O. Hawkins and Thomas C. Slater Medical Marijuana
30	Act, §§ 21-28.6-1 -- 21-28.6-15, apply to a licensed medical marijuana cultivator unless they
31	conflict with a provision contained in § 21-28.6-16.
32	(b) Licensing of medical marijuana cultivators -- Department of business regulation
33	authority. The department of business regulation shall promulgate regulations governing the
34	manner in which it shall consider applications for the licensing of medical marijuana cultivators,
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1	including regulations governing:
2	(1) The form and content of licensing and renewal applications;
3	(2) Minimum oversight requirements for licensed medical marijuana cultivators;
4	(3) Minimum record-keeping requirements for cultivators;
5	(4) Minimum security requirements for cultivators; and
6	(5) Procedures for suspending, revoking, or terminating the license of cultivators that
7	violate the provisions of this section or the regulations promulgated pursuant to this subsection.
8	(c) A licensed medical marijuana cultivator license issued by the department of business
9	regulation shall expire one year after it was issued and the licensed medical marijuana cultivator
10	may apply for renewal with the department in accordance with its regulations pertaining to
11	licensed medical marijuana cultivators.
12	(d) The department of business regulation shall promulgate regulations that govern how
13	many marijuana plants, how many marijuana seedlings mature and immature, how much wet
14	marijuana, and how much usable marijuana a licensed medical marijuana cultivator may possess.
15	Every marijuana plant possessed by a licensed medical marijuana cultivator must be accompanied
16	by valid medical marijuana tag issued by the department of business regulation pursuant to § 21-
17	28.6-15 or catalogued in a seed to sale inventory tracking system in accordance with regulations
18	promulgated by the department of business regulation. Each cultivator must purchase at least one
19	medical marijuana tag in order to remain a licensed cultivator.
20	(e) Medical marijuana cultivators shall only sell marijuana to compassion centers, a
21	licensed medical marijuana processor, another licensed medical marijuana cultivator, or other
22	marijuana establishment licensee, in accordance with regulations promulgated by the department
23	of business regulation. All marijuana possessed by a cultivator in excess of the possession limit
24	established pursuant to subsection (d) shall be under formal agreement to be purchased by a
25	marijuana establishment in accordance with regulations promulgated by the department of
26	business regulation compassion center. If such excess marijuana is not under formal agreement to
27	be purchased, the cultivator will have a period of time, specified in regulations promulgated by
28	the department of business regulation, to sell or destroy that excess marijuana. The department
29	may suspend and/or revoke the cultivator's license and the license of any officer, director,
30	employee, or agent of such cultivator and/or impose an administrative penalty in accordance with
31	such regulations promulgated by the department for any violation of this section or the
32	regulations. In addition, any violation of this section or the regulations promulgated pursuant to
33	this subsection and subsection (d) shall cause a licensed medical marijuana cultivator to lose the
34	protections described in subsection (m) and may subject the licensed medical marijuana cultivator
	LC000763 - Page 472 of 541
1	to arrest and prosecution under Chapter 28 of title 21 (the Rhode Island Controlled Substances
2	Act).
3	(f) Medical marijuana cultivators shall be subject to any regulations promulgated by the
4	department of health or department of business regulation that specify how marijuana must be
5	tested for items, including, but not limited to, potency, cannabinoid profile, and contaminants.
6	(g) Medical marijuana cultivators shall be subject to any product labeling requirements
7	promulgated by the department of business regulation and the department of health.
8	(h) Notwithstanding any other provisions of the general laws, the manufacture or
9	processing of marijuana using a solvent extraction process that includes the use of a compressed,
10	flammable gas as a solvent by a licensed medical marijuana cultivator shall not be subject to the
11	protections of this chapter.
12	(i) Medical marijuana cultivators shall only be licensed to grow marijuana at a single
13	location, registered with the department of business regulation and the department of public
14	safety unless the cultivator’s license is held by a compassion center which was approved by the
15	department of health or renewed by the department of business regulation prior to July 1, 2019.
16	The department of business regulation may promulgate regulations governing where cultivators
17	are allowed to grow. Medical marijuana cultivators must abide by all local ordinances, including
18	zoning ordinances.
19	(j) Inspection. Medical marijuana cultivators shall be subject to reasonable inspection by
20	the department of business regulation or the department of health for the purposes of enforcing
21	regulations promulgated pursuant to this chapter and all applicable Rhode Island general laws.
22	(k) The cultivator applicant, unless they are an employee with no equity, ownership,
23	financial interest, or managing control, shall apply to the bureau of criminal identification of the
24	department of attorney general, department of public safety division of state police, or local
25	police department for a national criminal records check that shall include fingerprints submitted
26	to the Federal Bureau of Investigation. Upon the discovery of any disqualifying information as
27	defined in subdivision (k)(2), and in accordance with the rules promulgated by the director of the
28	department of business regulation, the bureau of criminal identification of the department of
29	attorney general, department of public safety division of state police, or the local police
30	department shall inform the applicant, in writing, of the nature of the disqualifying information;
31	and, without disclosing the nature of the disqualifying information, shall notify the department of
32	business regulation, in writing, that disqualifying information has been discovered.
33	(1) In those situations in which no disqualifying information has been found, the bureau
34	of criminal identification of the department of attorney general, department of public safety
	LC000763 - Page 473 of 541
1	division of state police, or the local police department shall inform the applicant and the
2	department of business regulation, in writing, of this fact.
3	(2) Information produced by a national criminal records check pertaining to a conviction
4	for a felony drug offense or a plea of nolo contendere for a felony drug offense and received a
5	sentence of probation shall result in a letter to the applicant and the department of business
6	regulation disqualifying the applicant.
7	(3) The except for employees, cultivator applicant shall be responsible for any expense
8	associated with the national criminal records check.
9	(l) Persons issued medical marijuana cultivator licenses shall be subject to the following:
10	(1) A licensed medical marijuana cultivator cardholder shall notify and request approval
11	from the department of business regulation of any change in his or her name or address within ten
12	(10) days of such change. A cultivator cardholder who fails to notify the department of business
13	regulation of any of these changes is responsible for a civil infraction, punishable by a fine of no
14	more than one hundred fifty dollars ($150).
15	(2) When a licensed medical marijuana cultivator cardholder notifies the department of
16	business regulation of any changes listed in this subsection, the department of business regulation
17	shall issue the cultivator cardholder a new license registry identification card after the department
18	approves the changes and receives from the licensee payment of a fee specified in regulation.
19	(3) If a licensed medical marijuana cultivator cardholder loses his or her license card, he
20	or she shall notify the department of business regulation and submit a fee specified in regulation
21	within ten (10) days of losing the license card. The department of business regulation shall issue a
22	new license card with a new random identification number.
23	(4) A licensed medical marijuana cultivator cardholder shall notify the department of
24	business regulation of any disqualifying criminal convictions as defined in subdivision (k)(2).
25	The department of business regulation may choose to suspend and/or revoke his or her license
26	license card after such notification.
27	(5) If a licensed medical marijuana cultivator or cultivator cardholder violates any
28	provision of this chapter or regulations promulgated hereunder as determined by the department
29	of business regulation, his or her card and the issued license may be suspended and/or revoked.
30	(m) Immunity:
31	(1) No licensed medical marijuana cultivator shall be subject to prosecution; search,
32	except by the departments pursuant to subsection (j); seizure; or penalty in any manner, or denied
33	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
34	business, occupational, or professional licensing board or entity, solely for acting in accordance
	LC000763 - Page 474 of 541
1	with this section to assist registered qualifying;
2	(2) No licensed medical marijuana cultivator shall be subject to prosecution, seizure, or
3	penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty
4	or disciplinary action by a business, occupational, or professional licensing board or entity, for
5	selling, giving, or distributing marijuana in whatever form and within the limits established by the
6	department of business regulation to a licensed medical marijuana processor or registered
7	compassion center.
8	(3) No principal officers, board members, agents, volunteers, or employees of a licensed
9	medical marijuana cultivator shall be subject to arrest, prosecution, search, seizure, or penalty in
10	any manner, or denied any right or privilege, including, but not limited to, civil penalty or
11	disciplinary action by a business, occupational, or professional licensing board or entity, solely
12	for working for or with a licensed medical marijuana cultivator to engage in acts permitted by this
13	section.
14	(4) No state employee shall be subject to arrest, prosecution, or penalty in any manner, or
15	denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,
16	termination, or loss of employee or pension benefits, for any and all conduct that occurs within
17	the scope of his or her employment regarding the administration, execution, and/or enforcement
18	of this act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.
19	(n) License required. No person or entity shall engage in activities described in this § 21-
20	28.6-16 without a medical marijuana cultivator license issued by the department of business
21	regulation.
22	21-28.6-16.2. Medical marijuana testing laboratories -- Immunity.
23	(a) No medical marijuana cannabis testing laboratory shall be subject to prosecution;
24	search (except by the departments pursuant to regulations); seizure; or penalty in any manner, or
25	denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
26	business, occupational, or professional licensing board or entity, solely for acting in accordance
27	with the act and regulations promulgated hereunder to assist licensees.
28	(b) No medical marijuana cannabis testing laboratory shall be subject to prosecution,
29	search (except by the departments pursuant to regulations), seizure, or penalty in any manner, or
30	denied any right or privilege, including, but not limited to, civil penalty or disciplinary action, by
31	a business, occupational, or professional licensing board or entity, for selling, giving, or
32	distributing marijuana in whatever form, and within the limits established by, the department of
33	health to another medical marijuana cannabis testing laboratory.
34	(c) No principal officers, board members, agents, volunteers, or employees of a medical
	LC000763 - Page 475 of 541
1	marijuana cannabis testing laboratory shall be subject to arrest, prosecution, search, seizure, or
2	penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty
3	or disciplinary action by a business, occupational, or professional licensing board or entity, solely
4	for working for or with a medical marijuana cannabis testing laboratory to engage in acts
5	permitted by the act and the regulations promulgated hereunder.
6	(d) No state employee shall be subject to arrest, prosecution or penalty in any manner, or
7	denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,
8	termination, or loss of employee or pension benefits, for any and all conduct that occurs within
9	the scope of his or her employment regarding the administration, execution and/or enforcement of
10	this act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.
11	21-28.6-17. Revenue.
12	(a) Effective July 1, 2016, all fees collected by the departments of health and business
13	regulation from applicants, registered patients, primary caregivers, authorized purchasers,
14	licensed medical marijuana cultivators, licensed medical marijuana processors, cooperative
15	cultivations, compassion centers, other licensees licensed pursuant to this chapter, and
16	compassion-center and other registry identification cardholders shall be placed in restricted-
17	receipt accounts to support the state's medical marijuana program, including but not limited to,
18	payment of expenses incurred by the departments of health and business regulation for the
19	administration of the program. The restricted receipt account will be known as the “medical
20	marijuana licensing account” or the “medical marijuana licensing program” account and will be
21	housed within the budgets of the departments of business regulation, health, revenue and public
22	safety, and the executive office of health and human services. All amounts deposited into the
23	medical marijuana licensing account or the marijuana licensing program account shall be exempt
24	from the indirect cost recovery provisions of § 35-4-27.
25	(b) All revenues remaining in the restricted-receipt accounts after payments specified in
26	subsection (a) of this section shall first be paid to cover any existing deficit in the department of
27	health's restricted-receipt account or the department of business regulation's restricted-receipt
28	account. These transfers shall be made annually on the last business day of the fiscal year.
29	(c) All revenues remaining in the restricted-receipt accounts after payments specified in
30	subsections (a) and (b) shall be paid into the state's general fund. These payments shall be made
31	annually on the last business day of the fiscal year.
32	SECTION 6. Chapter 21-28.6 of the General Laws entitled “The Edward O. Hawkins and
33	Thomas C. Slater Medical Marijuana Act” is hereby amended by adding thereto the following
34	sections:
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1	21-28.6-16.1 Licensed medical marijuana processors.
2	(a) A medical marijuana processor licensed under this section may acquire marijuana
3	from licensed medical marijuana cultivators, another licensed medical marijuana processor,
4	compassion centers, or another marijuana establishment licensee, in accordance with regulations
5	promulgated by the department of business regulation. A licensed medical marijuana processor
6	may possess, manufacture, or process marijuana into marijuana products in accordance with
7	regulations promulgated by the department of business regulation. A licensed medical marijuana
8	processor may deliver, or transfer marijuana products to licensed compassion centers or another
9	licensed medical marijuana processor, or any other marijuana establishment licensee, in
10	accordance with regulations promulgated by the department of business regulation. A licensed
11	medical marijuana processor shall not be a primary caregiver cardholder and shall not hold a
12	cooperative cultivation license. A licensed medical marijuana processor shall not grow, cultivate,
13	sell, or dispense medical marijuana unless the licensed medical marijuana processor has also been
14	issued a medical marijuana cultivator license or compassion center registration by the department
15	of business regulation and pursuant to regulations promulgated by the department of business
16	regulation. The department of business regulation may restrict the number, types, and classes of
17	medical marijuana licenses an applicant may be issued through regulations promulgated by the
18	department. Except as specifically provided to the contrary, all provisions of the Edward O.
19	Hawkins and Thomas C. Slater Medical Marijuana Act, §§ 21-28.6-1 et seq., apply to a licensed
20	medical marijuana processor unless they conflict with a provision contained in this § 21-28.6-
21	16.1.
22	(b) Licensing of medical marijuana processor – Department of business regulation
23	authority. The department of business regulation shall promulgate regulations governing the
24	manner in which it shall consider applications for the licensing of medical marijuana processors,
25	including but not limited to regulations governing:
26	(1) The form and content of licensing and renewal applications;
27	(2) Minimum oversight requirements for licensed medical marijuana processors;
28	(3) Minimum record-keeping requirements for medical marijuana processors;
29	(4) Minimum security requirements for medical marijuana processors; and
30	(5) Procedures for suspending, revoking, or terminating the license of medical marijuana
31	processors that violate any provisions of this chapter or the regulations promulgated hereunder.
32	(6) Applicable application and license fees.
33	(c) A medical marijuana processor license issued by the department of business
34	regulation shall expire one year after it was issued and the licensed medical marijuana processor
	LC000763 - Page 477 of 541
1	may apply for renewal with the department in accordance with its regulations pertaining to
2	licensed medical marijuana processors.
3	(d) The department of business regulation may promulgate regulations that govern how
4	much marijuana a licensed medical marijuana processor may possess. All marijuana possessed by
5	a licensed medical marijuana processor must be catalogued in a seed to sale inventory tracking
6	system in accordance with regulations promulgated by the department of business regulation.
7	(e) Medical marijuana processors shall only sell processed or manufactured marijuana
8	products to licensed compassion centers, another licensed medical marijuana processor or a
9	marijuana establishment licensee, in accordance with regulations promulgated by the department
10	of business regulation. The department may suspend and/or revoke the medical marijuana
11	processor's license and the license of any officer, director, employee, or agent of such medical
12	marijuana processor and/or impose an administrative penalty in accordance with such regulations
13	promulgated by the department for any violation of this section or the regulations. In addition,
14	any violation of this section or the regulations promulgated pursuant to this subsection and
15	subsection (d) shall cause a licensed medical marijuana processor to lose the protections
16	described in subsection (m) and may subject the licensed medical marijuana processor to arrest
17	and prosecution under Chapter 28 of title 21 (the Rhode Island Controlled Substances Act).
18	(f) Medical marijuana processors shall be subject to any regulations promulgated by the
19	department of health or department of business regulation that specify how marijuana must be
20	tested for items, including, but not limited to, potency, cannabinoid profile, and contaminants;
21	(g) Medical marijuana processors shall be subject to any product labeling requirements
22	promulgated by the department of business regulation and the department of health;
23	(h) Medical marijuana processors shall only be licensed to manufacture and process
24	marijuana at a single location, registered with the department of business regulation and the
25	department of public safety unless the medical marijuana processor license is held by a registered
26	compassion center which was approved by the department of health or renewed by the
27	department of business regulation prior to July 1, 2019. The department of business regulation
28	may promulgate regulations governing where medical marijuana processors are allowed to
29	operate. Medical marijuana processors must abide by all local ordinances, including zoning
30	ordinances.
31	(i) Inspection. Medical marijuana processors shall be subject to reasonable inspection by
32	the department of business regulation or the department of health for the purposes of enforcing
33	regulations promulgated pursuant to this chapter and all applicable Rhode Island general laws.
34	(j) The medical marijuana processor applicant, unless they are an employee with no
	LC000763 - Page 478 of 541
1	equity, ownership, financial interest, or managing control, shall apply to the bureau of criminal
2	identification of the department of attorney general, department of public safety division of state
3	police, or local police department for a national criminal records check that shall include
4	fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any
5	disqualifying information as defined in subdivision (j)(2), and in accordance with the rules
6	promulgated by the director of the department of business regulation, the bureau of criminal
7	identification of the department of attorney general, department of public safety division of state
8	police, or the local police department shall inform the applicant, in writing, of the nature of the
9	disqualifying information; and, without disclosing the nature of the disqualifying information,
10	shall notify the department of business regulation, in writing, that disqualifying information has
11	been discovered.
12	(1) In those situations in which no disqualifying information has been found, the bureau
13	of criminal identification of the department of attorney general, department of public safety
14	division of state police, or the local police department shall inform the applicant and the
15	department of business regulation, in writing, of this fact.
16	(2) Information produced by a national criminal records check pertaining to a conviction
17	for a felony drug offense or a plea of nolo contendere for a felony drug offense and received a
18	sentence of probation shall result in a letter to the applicant and the department of business
19	regulation disqualifying the applicant.
20	(3) The medical marijuana processor applicant, unless an employee, shall be responsible
21	for any expense associated with the national criminal records check.
22	(k) Persons issued medical marijuana processor licenses or registration card shall be
23	subject to the following:
24	(1) A licensed medical marijuana processor cardholder shall notify and request approval
25	from the department of business regulation of any change in his or her name or address within ten
26	(10) days of such change. A medical marijuana processor cardholder who fails to notify the
27	department of business regulation of any of these changes is responsible for a civil infraction,
28	punishable by a fine of no more than one hundred fifty dollars ($150).
29	(2) When a licensed medical marijuana processor cardholder notifies the department of
30	business regulation of any changes listed in this subsection, the department of business regulation
31	shall issue the medical marijuana processor cardholder a new license or registry identification
32	card after the department approves the changes and receives from the licensee payment of a fee
33	specified in regulation.
34	(3) If a licensed medical marijuana processor cardholder loses his or her registry
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1	identification card, he or she shall notify the department of business regulation and submit a fee
2	specified in regulation within ten (10) days of losing the registry identification cared. The
3	department of business regulation shall issue a new registry identification card with a new
4	random identification number.
5	(4) A licensed medical marijuana processor cardholder shall notify the department of
6	business regulation of any disqualifying criminal convictions as defined in subdivision (j)(2). The
7	department of business regulation may choose to suspend and/or revoke his or her card after such
8	notification.
9	(5) If a licensed medical marijuana processor or medical marijuana processor cardholder
10	violates any provision of this chapter or regulations promulgated hereunder as determined by the
11	department of business regulation, his or her card or the issued license may be suspended and/or
12	revoked.
13	(l) Immunity:
14	(1) No licensed medical marijuana processor shall be subject to prosecution; search,
15	except by the departments pursuant to subsection (j); seizure; or penalty in any manner, or denied
16	any right or privilege, including, but not limited to, civil penalty or disciplinary action by a
17	business, occupational, or professional licensing board or entity, solely for acting in accordance
18	with this chapter;
19	(2) No licensed medical marijuana processor shall be subject to prosecution, seizure, or
20	penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty
21	or disciplinary action by a business, occupational, or professional licensing board or entity, for
22	selling, giving, or distributing marijuana in whatever form and within the limits established by the
23	department of business regulation to another licensed medical marijuana processor or registered
24	compassion center;
25	(3) No principal officers, board members, agents, volunteers, or employees of a licensed
26	medical marijuana processor shall be subject to arrest, prosecution, search, seizure, or penalty in
27	any manner, or denied any right or privilege, including, but not limited to, civil penalty or
28	disciplinary action by a business, occupational, or professional licensing board or entity, solely
29	for working for or with a licensed medical marijuana processor to engage in acts permitted by this
30	section.
31	(4) No state employee shall be subject to arrest, prosecution, or penalty in any manner, or
32	denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,
33	termination, or loss of employee or pension benefits, for any and all conduct that occurs within
34	the scope of his or her employment regarding the administration, execution, and/or enforcement
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1	of this act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.
2	(m) License required. No person or entity shall engage in activities described in this §
3	21-28.6-16.1 without a medical marijuana processor license issued by the department of business
4	regulation.
5	21-28.6-16.3. Other Supporting Medical Marijuana Licenses.
6	(a) The department of business regulation shall have the authority to promulgate
7	regulations to create and implement additional types and classes of commercial medical
8	marijuana licenses, including but not limited to, licenses for businesses to engage in marijuana
9	destruction, delivery, disposal, research and development, transportation or any other commercial
10	activity needed to support licensed medical marijuana cultivators, licensed medical marijuana
11	processors, compassion centers, licensed cannabis testing facilities and patient need; provided no
12	license created by the department shall allow for the retail sale of medical marijuana to registered
13	cardholders.
14	(b) The department of business regulation shall promulgate regulations governing the
15	manner in which it shall consider applications for issuing additional medical marijuana licenses,
16	including but not limited to, regulations governing:
17	(1) The form and content of licensing and renewal applications;
18	(2) Minimum oversight requirements for additional medical marijuana license holders;
19	(3) Minimum record-keeping requirements for additional medical marijuana license
20	holders;
21	(4) Minimum security requirements for additional medical marijuana license holders;
22	(5) Procedures for suspending, revoking, or terminating the licenses of licensees that
23	violate the provisions of this chapter or the regulations promulgated pursuant to this chapter; and
24	(6) Applicable application and license fees.
25	(c) Any applicant, employee, officer, director, manager, member or agent of a holder of a
26	license issued by the department of business regulation pursuant to this section and the
27	regulations shall be required to obtain a registry identification card from the division subject to
28	the requirements and fees set by the department pursuant to the regulations provided that
29	employees with no ownership, equity stake, financial interest, or managing control shall not be
30	required to submit to a criminal background check to obtain a registry identification card.
31	(d) With respect to any licenses and registrations issued by the department of business
32	regulation pursuant to this chapter, the department of business regulation shall be entitled to
33	charge application, license and registration fees as set by the department of business regulation
34	and set forth in regulations promulgated here under.
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1	SECTION 7. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby
2	amended by adding thereto the following chapters 28.10 and 28.11:
3	CHAPTER 28.10
4	ADULT USE OF MARIJUANA ACT
5	21-28.10-1. Short title.
6	This chapter shall be known and may be cited as the "Adult Use of Marijuana Act."
7	21-28.10-2. Legislative Findings.
8	The general assembly finds and declares that:
9	(1) Prohibiting the possession, cultivation, and sale of cannabis to adults has proven to be
10	an ineffective policy for the State of Rhode Island. In the absence of a legal, tightly regulated
11	market, an illicit cannabis industry has thrived, undermining the public health, safety and welfare
12	of Rhode Islanders.
13	(2) Regional and national shifts in cannabis policy are providing Rhode Island adults with
14	easy access to cannabis and marijuana products manufactured and sold from other states,
15	contributing to the funds these states use to safeguard public health, safety and welfare within
16	their borders, while providing no funds to the State of Rhode Island to address the public health,
17	safety and welfare externalities that come with increased access to cannabis, including marijuana.
18	(3) It is in the best interests of the of the State of Rhode Island to implement a new
19	regulatory framework and tax structure for the commercial production and sale of cannabis and
20	cannabis products, all aspects of which shall be tightly regulated and controlled by the provisions
21	of this act and the office of cannabis regulation created herein, the revenue from which is to be
22	used to tightly regulate cannabis and cannabis products and to study and mitigate the risks and
23	deleterious impacts that cannabis and marijuana use may have on the citizens and State of Rhode
24	Island.
25	21-28.10-3. Definitions.
26	For purposes of this chapter:
27	(1) “Cannabis” means all parts of the plant of the genus marijuana, also known as
28	marijuana sativa L, whether growing or not; the seeds thereof; the resin extracted from any
29	part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation
30	of the plant, its seeds, or resin regardless of cannabinoid content or cannabinoid potency
31	including “marijuana”, and “industrial hemp” or “industrial hemp products” which satisfy the
32	requirements of chapter 2-26 of the general laws and the regulations promulgated thereunder.
33	(2) “Department” or “department of business regulation” means the office of cannabis
34	regulation within the department of business regulation or its successor agency.
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1	(3) "Dwelling unit" means a room or group of rooms within a residential dwelling
2	used or intended for use by one family or household, or by no more than three (3) unrelated
3	individuals, with facilities for living, sleeping, sanitation, cooking, and eating.
4	(4) "Industrial Hemp" means the plant of the genus cannabis and any part of such plant,
5	whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed
6	three-tenths percent (0.3%) on a dry-weight basis of any part of the plant cannabis, or per volume
7	or weight of cannabis product or the combined percent of delta-9 tetrahydrocannabinol and
8	tetrahydrocannabinolic acid in any part of the plant cannabis regardless of the moisture content,
9	which satisfy the requirements of chapter 2-26 of the general laws and the regulations
10	promulgated thereunder.
11	(5) "Industrial Hemp products" means all products made from industrial hemp plants,
12	including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, paint, paper,
13	construction materials, plastics, seed, seed meal, seed oil, and certified for cultivation which
14	satisfy the requirements of chapter 2-26 of the general laws and the regulations promulgated
15	thereunder.
16	(6) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
17	the seeds of the plant; the resin extracted from any part of the plant; and every compound,
18	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not
19	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
20	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
21	mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the
22	plant which is incapable of germination. Marijuana shall not include “industrial hemp” or”
23	industrial hemp products” which satisfy the requirements of chapter 2-26 of the general laws and
24	the regulations promulgated thereunder.
25	(7) "Marijuana cultivation facility" means an entity that is licensed pursuant to
26	chapter 21-28.11 of title 21, to be exempt from state penalties for cultivating, preparing,
27	packaging, and selling or transferring marijuana to a marijuana retailer, marijuana processor,
28	another marijuana cultivation facility, cannabis testing laboratory, or another marijuana
29	establishment licensed by the office of cannabis regulation, in accordance with regulations
30	promulgated by the office of cannabis regulation but not for manufacturing, processing or
31	selling marijuana products or selling marijuana at retail or otherwise to the general public.
32	(8) "Marijuana establishment" and “marijuana establishment licensee” means any
33	person or entity licensed by the office of cannabis regulation under chapter 21-28.11 or chapter
34	21-28.6 whose license permits it to engage in or conduct activities in connection with the adult
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1	use marijuana industry or medical marijuana program and includes but is not limited to a
2	licensed marijuana cultivation facility, marijuana processor, marijuana retailer, marijuana
3	testing facility, compassion center, medical marijuana cultivator, medical marijuana processor, or
4	any other license issued by the office of cannabis regulation under chapter 21-28.11 or chapter
5	21-28.6 and/or as specified and defined in regulations promulgated by the office of cannabis
6	regulation.
7	(9) "Marijuana paraphernalia" means equipment, products, and materials which are
8	used or intended for use in planting, propagating, cultivating, growing, harvesting,
9	manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing,
10	packaging, repackaging, storing, containing, concealing, ingesting, or inhaling marijuana, or
11	otherwise introducing marijuana into the human body.
12	(10) "Marijuana processor" means an entity licensed pursuant to chapter 21-28.11 of
13	title 21 to be exempt from state penalties for purchasing marijuana from marijuana
14	cultivation facilities, other marijuana processors, or other marijuana establishments, in
15	accordance with regulations promulgated by the office of cannabis regulation; and manufacturing
16	or processing marijuana products, selling, giving, or transferring marijuana products to a
17	marijuana retailer, marijuana testing facility, or other marijuana establishments, in accordance
18	with regulations promulgated by the office of cannabis regulation but not for selling marijuana or
19	marijuana products at retail or otherwise to the general public.
20	(11) "Marijuana products" means any form of marijuana, including concentrated
21	marijuana and products that are comprised of marijuana and other ingredients that are
22	intended for use or consumption, such as, but not limited to, extracts, infusions, edible
23	products, ointments, and tinctures, as further defined in regulations promulgated by the office of
24	cannabis regulation.
25	(12) "Marijuana retailer" means an entity that is licensed pursuant to chapter 21-28.11
26	of title 21 to be exempt from state penalties for purchasing marijuana from marijuana
27	cultivation facilities, marijuana processors, or other marijuana establishments in accordance with
28	regulations promulgated by the office of cannabis regulation, and selling marijuana, marijuana
29	products, and marijuana paraphernalia to customers who are twenty-one (21) years of age or older
30	in accordance with the provisions of this chapter, chapter 21-28.11 and rules and regulations
31	promulgated by the office of cannabis regulation.
32	(13) "Marijuana testing facility" and “cannabis testing laboratory” means a third party
33	analytical testing laboratory licensed by the departments of health and office of cannabis
34	regulation to collect and test samples of cannabis pursuant to regulations promulgated by the
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1	departments.
2	(14) “Office of cannabis regulation” means the office of cannabis regulation within the
3	department of business regulation.
4	(15) "Public place" means any street, alley, park, sidewalk, public building other
5	than individual dwellings, or any place of business or assembly open to or frequented by
6	the public, and any other place to which the public has access.
7	(16) "Smoke" or "smoking" means heating to at least the point of combustion,
8	causing plant material to burn, inhaling, exhaling, burning, or carrying any lighted or heated
9	cigarette, pipe, weed, plant, other marijuana product in any manner or in any form intended for
10	inhalation in any manner or form and includes but is not limited to the use of electronic cigarettes,
11	electronic pipes, electronic marijuana delivery system products, or other similar products that rely
12	on vaporization or aerosolization.
13	. (17) "State prosecution" means prosecution initiated or maintained by the state of
14	Rhode Island or an agency or political subdivision of the state of Rhode Island.
15	(18) “Vaporize” or “vape” means heating below the point of combustion and resulting
16	in a vapor or mist.
17	(19) "Equivalent amount" means the portion of usable marijuana, be it in extracted,
18	edible, concentrated, or any other form, found to be equal to a portion of dried, marijuana, as
19	defined by regulations promulgated by the office of cannabis regulation.
20	(20) “Cannabis plant” means a cannabis plant, rooted or unrooted, mature, or immature,
21	with or without flowers or buds.
22	21-28.10-4. Exempt activities.
23	Effective from and after January 1, 2020, except as otherwise provided in this chapter:
24	(1) A person who is twenty-one (21) years of age or older is exempt from arrest, civil
25	or criminal penalty, seizure or forfeiture of assets, discipline by any state or local
26	licensing board, and state prosecution for solely engaging in the following acts:
27	(i) Actually or constructively using, obtaining, purchasing, transporting, or
28	possessing one ounce (1 oz.) or less of marijuana plant material, or an equivalent amount of
29	marijuana product as determined by regulations promulgated by the office of cannabis regulation,
30	provided that a person who is twenty-one (21) years of age or older may only purchase one
31	ounce (1 oz.) of marijuana plant material, or an equivalent amount of marijuana product as
32	determined by regulations promulgated by the department of office of cannabis regulation per
33	day;
34	(ii) Possessing in the person’s primary residence in secured and locked storage five
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1	ounces (5 oz) or less of marijuana plant material or an equivalent amount of marijuana product as
2	determined by regulations promulgated by the office of cannabis regulation, or possessing in any
3	dwelling unit used as the a primary residence by two or more persons who are each twenty-one
4	(21) years of age or older in secured and locked storage ten ounces (10 oz.) or less of
5	marijuana plant material or an equivalent amount of marijuana product as determined by
6	regulations promulgated by the office of cannabis regulation;
7	(iii) Controlling any premises or vehicle where persons who are twenty-one (21)
8	years of age or older possess, process, or store amounts of marijuana plant material and
9	marijuana products that are legal under state law under subsections (1)(i) and (1)(ii) of this
10	section, provided that any and all marijuana plant material and/or marijuana products in a vehicle
11	are sealed, unused, and in their original unopened packaging;
12	(iv) Giving away, without consideration, the amounts of marijuana and marijuana
13	products that are legal under state law under subsection (1)(i) of this section, if the recipient is
14	a person who is twenty-one (21) years of age or older, provided the gift or transfer of marijuana
15	is not advertised or promoted to the public and the gift or transfer of marijuana is not in
16	conjunction with the sale or transfer of any money, consideration or value, or another item or any
17	other services in an effort to evade laws governing the sale of marijuana;
18	(v) Aiding and abetting another person who is twenty-one (21) years of age or older
19	in the actions allowed under this chapter; and
20	(vi) Any combination of the acts described within subsections (1)(i) through (1)(v) of
21	this section, inclusive.
22	(2) Except as provided in this chapter and chapter 28.11 of title 21, a marijuana
23	retailer or any person who is twenty-one (21) years of age or older and acting in their
24	capacity as an owner, principal officer, partner, board member, employee, or agent of a retailer is
25	exempt from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline by
26	any state or local licensing board, and state prosecution for solely engaging in the following
27	acts:
28	(i) Actually or constructively transporting or possessing marijuana or marijuana
29	products that were purchased from a marijuana cultivation facility, a marijuana processor,
30	another marijuana retailer, or any other marijuana establishment in accordance with regulations
31	promulgated by the office of cannabis regulation;
32	(ii) Manufacturing, possessing, producing, obtaining, or purchasing marijuana
33	paraphernalia;
34	(iii) Selling, delivering, or transferring marijuana or marijuana products to another
	LC000763 - Page 486 of 541
1	retailer in accordance with regulations promulgated by the office of cannabis regulation;
2	(iv) Selling, transferring, or delivering, no more than, one ounce (1 oz.) of marijuana,
3	or an equivalent amount of marijuana product per day, or marijuana paraphernalia to any person
4	who is twenty-one (21) years of age or older, in accordance with regulations promulgated by the
5	office of cannabis regulation and within the transaction limits of this chapter, chapter 21-28.11
6	and transactions limits specified in regulations promulgated by the office of cannabis regulation;
7	(v) Transferring or delivering marijuana or marijuana products to a cannabis
8	testing facility in accordance with regulations promulgated by the office of cannabis regulation;
9	(vi) Controlling any premises or vehicle where marijuana, marijuana products,
10	and marijuana paraphernalia are possessed, sold, or deposited in a manner that is not in
11	conflict with this chapter or the regulations pursuant thereto; and
12	(vii) Any combination of the acts described within subsections (2)(i) through
13	(2)(vi) of this section, inclusive.
14	(3) Except as provided in this chapter and chapter 28.11 of title 21, a marijuana
15	cultivation facility or any person who is twenty-one (21) years of age or older and acting in
16	their capacity as an owner, principal officer, partner, board member, employee, or agent of a
17	marijuana cultivation facility is exempt from arrest, civil or criminal penalty, seizure or
18	forfeiture of assets, discipline by any state or local licensing board, and state prosecution for
19	solely engaging in the following acts:
20
21	(i) Cultivating, packing, processing, transporting, or manufacturing marijuana,
22	but not marijuana products, in accordance with regulations promulgated by the office of
23	cannabis regulation;
24	(ii) Transporting or possessing marijuana that was produced by the marijuana
25	cultivation facility or another marijuana establishment, in accordance with regulations
26	promulgated by the office of cannabis regulation;
27	(iii) Selling, delivering, or transferring marijuana to a marijuana retailer,
28	marijuana processor, a marijuana cultivation facility, or any other marijuana establishment, in
29	accordance with regulations promulgated by the office of cannabis regulation;
30	(iv) Purchasing marijuana from a marijuana cultivation facility;
31	(v) Delivering or transferring marijuana to a marijuana testing facility;
32	(vi) Controlling any premises or vehicle where marijuana is possessed,
33	manufactured, sold, or deposited, in accordance with regulations promulgated by the office of
34	cannabis regulation; and
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1	(vii) Any combination of the acts described within subsections (3)(i) through (3)(vi)
2	of this section, inclusive.
3	(4) Except as provided in this chapter and chapter 28.11 of title 21, a marijuana
4	processor facility or any person who is twenty-one (21) years of age or older and acting in
5	their capacity as an owner, principal officer, partner, board member, employee, or agent of a
6	marijuana processor facility is exempt from arrest, civil or criminal penalty, seizure or
7	forfeiture of assets, discipline by any state or local licensing board, and state prosecution for
8	solely engaging in the following acts:
9	(i) Producing, manufacturing, packing, processing, or transporting marijuana
10	products, in accordance with regulations promulgated by the office of cannabis regulation;
11	(ii) Packing, processing, possessing, or transporting marijuana that was produced by a
12	marijuana cultivation center in accordance with regulations promulgated by the office of
13	cannabis regulation;
14	(iii) Possessing, transporting, or producing marijuana paraphernalia;
15	(iv) Manufacturing, possessing, or producing marijuana products, in accordance with
16	regulations promulgated by the office of cannabis regulation;
17	(v) Selling, delivering, or transferring marijuana products to a marijuana retailer,
18	another marijuana processor, or any other marijuana establishment, in accordance with
19	regulations promulgated by the office of cannabis regulation;
20	(vi) Purchasing marijuana from a marijuana cultivation facility, or another
21	marijuana processor, or any other marijuana establishment, in accordance with regulations
22	promulgated by the office of cannabis regulation;
23	(vii) Delivering or transferring marijuana or marijuana products to a cannabis
24	testing facility;
25
26	(viii) Controlling any premises or vehicle where marijuana products and
27	marijuana paraphernalia are possessed, manufactured, sold, or deposited;
28	(ix) Controlling any premises or vehicle where marijuana is possessed,
29	processed packaged, or deposited; and
30	(x) Any combination of the acts described within subsections (4)(i) through (4)(ix)
31	of this section, inclusive.
32	(5) Except as provided in this chapter and chapter 28.11 of title 21, a cannabis
33	testing facility or any person who is twenty-one (21) years of age or older and acting in their
34	capacity as an owner, principal officer, owner, partner, board member, employee, or agent
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1	of a cannabis testing facility shall not be subject to state prosecution; search, except by
2	the department of business regulation or department of health pursuant to §21-28.11-8;
3	seizure; or penalty in any manner or be denied any right or privilege, including, but
4	not limited to, civil penalty or disciplinary action by a court or business licensing board
5	or entity solely engaging in for the following acts:
6	(i) Acquiring, transporting, storing, or possessing marijuana or marijuana products, in
7	accordance with regulations promulgated by the office of cannabis regulation;
8	(ii) Returning marijuana and marijuana products to marijuana cultivation facilities,
9	marijuana processor facilities, marijuana retailers, other marijuana establishment licensees and
10	industrial hemp license holders, in accordance with regulations promulgated by the office of
11	cannabis regulation ;
12	(iii) Receiving compensation for analytical testing, including but not limited
13	to testing for contaminants and potency; and
14	(iv) Any combination of the acts described within subsections (4)(i) through
15	(4)(iii) of this section, inclusive.
16	(6) The acts listed in subsections (1) through (5) of this section, when undertaken
17	in compliance with the provisions of this chapter and regulations promulgated hereunder, are
18	lawful under Rhode Island law.
19	(7) Except as provided in this chapter and chapter 28.11 of title 21, a marijuana
20	establishment licensee or any person who is twenty-one (21) years of age or older and
21	acting in their capacity as an owner, principal officer, partner, board member, employee, or
22	agent of a marijuana establishment licensee created by the office of cannabis regulation is exempt
23	from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline by any state
24	or local licensing board, and state prosecution solely for possessing, transferring, dispensing, or
25	delivering marijuana in accordance with the corresponding marijuana establishment license
26	regulations promulgated by the office of cannabis regulation, or otherwise engaging in activities
27	permitted under the specific marijuana establishment license it holds as issued by the office of
28	cannabis regulation and the regulations promulgated by the office of cannabis regulation.
29	(8) Except for the exemption set forth in subsection (2)(iv) of this section which shall
30	be effective from and after January 1, 2020, the exemptions set forth in subsections (2), (3), (4)
31	and (5) of this section shall be effective as to a marijuana establishment licensee from and after
32	the date of issuance of a license by the office of cannabis regulation.
33	21-28.10-5. Authorized activities; paraphernalia.
34	(a) Any person who is twenty-one (21) years of age or older is authorized to
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1	manufacture, produce, use, obtain, purchase, transport, or possess, actually or constructively,
2	marijuana paraphernalia in accordance with all applicable laws.
3	(b) Any person who is twenty-one (21) years of age or older is authorized to
4	distribute or sell marijuana paraphernalia to marijuana establishments or persons who are
5	twenty-one (21) years of age or older in accordance with all applicable laws.
6	21-28.10-6. Unlawful activities; penalties.
7	(a) Except as expressly provided in this chapter and chapters 2-26 and 21-28.11, no
8	person or entity shall cultivate, grow, manufacture, process, or otherwise produce cannabis,
9	cannabis plants or cannabis products.
10	(b) Any person who cultivates, grows, manufactures, processes, or otherwise produces
11	cannabis, cannabis plants or cannabis products in violation of this chapter and chapters 2-26, 21-
12	28.6, 21-28.11, and/or the regulations promulgated hereunder shall be subject to imposition of an
13	administrative penalty and order by the office of cannabis regulation as follows:
14	(i) for a violation of this section involving one (1) to five (5) cannabis plants, an
15	administrative penalty of $2,000 per plant and an order requiring forfeiture and/or destruction of
16	said plants;
17	(ii) for a violation of this section involving six (6) to ten (10) cannabis plants, an
18	administrative penalty of $3,000 per plant and an order requiring forfeiture and/or destruction of
19	said plants;
20	(iii) for a violation of this section involving eleven (11) to twenty (20) cannabis plants, an
21	administrative penalty of $4,000 per plant and an order requiring forfeiture and/or destruction of
22	said plants;
23	(iv) for a violation of this section involving more than twenty (20) cannabis plants, an
24	administrative penalty of $5,000 per plant and an order requiring forfeiture and/or destruction of
25	said plants;
26	(v) for any violation of this section involving more than twenty (20) cannabis plants, such
27	person and, in the case of an entity such entity’s principal officers and other key persons, shall
28	also be guilty of a felony, and upon conviction shall be punished by imprisonment and a fine as
29	provided in chapter 21-28 of the general laws and the attorney general shall prosecute such
30	criminal violation; and
31	(vi) for any violation of this section involving possession of marijuana material or
32	marijuana products over the legal possession limits of this chapter, there shall be an
33	administrative penalty of $2,000 per ounce of equivalent marijuana material over the legal
34	possession limit and an order requiring forfeiture and/or destruction of said marijuana.
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1	21-28.10-7. Activities not exempt.
2	The provisions of this chapter do not exempt any person from arrest, civil or
3	criminal penalty, seizure or forfeiture of assets, discipline by any state or local licensing
4	board or authority, and state prosecution for, nor may they establish an affirmative defense
5	based on this chapter to charges arising from, any of the following acts:
6	(1) Driving, operating, or being in actual physical control of a vehicle or a vessel
7	under power or sail while impaired by marijuana or marijuana products;
8	(2) Possessing marijuana or marijuana products if the person is a prisoner;
9	(3) Possessing marijuana or marijuana products in any local detention facility,
10	county jail, state prison, reformatory, or other correctional facility, including, without
11	limitation, any facility for the detention of juvenile offenders; or
12	(4) Manufacturing or processing of marijuana products with the use of prohibited
13	solvents, in violation of § 21-28.10-12.
14	21-28.10-8. Marijuana use prohibitions.
15	(a) No person shall smoke, vaporize or otherwise consume or use cannabis in a public
16	place. A person who violates this section shall be subject to imposition of an administrative
17	penalty by the office of cannabis regulation of one hundred fifty dollars ($150) per violation, in
18	addition to and not in lieu of any applicable penalty or fine by the municipality where the public
19	consumption or use occurred.
20	(b) No person shall smoke or vaporize cannabis in, on or about the premises of any
21	housing that is subject to regulation or otherwise within the purview of chapters 45-25, 45-26, 45-
22	53 or 45-60 of the general laws and any regulations promulgated thereunder. A person who
23	smokes or vaporizes cannabis in, on or about such housing premises shall be subject to imposition
24	of an administrative penalty by the office of cannabis regulation of one hundred fifty dollars
25	($150) per violation, in addition to and not in lieu of any applicable penalty, access prohibition or
26	restriction, eviction or other action that may lawfully be taken by the owner and/or applicable
27	authority with respect to said housing.
28	(c) No person shall smoke or vaporize cannabis in, on or about the premises of any multi-
29	unit housing complex or building without the written permission of the owner of such property
30	and/or any applicable governing body of the housing complex or building. A person who smokes
31	or vaporizes cannabis in, on or about any multi-unit housing complex or building premises
32	without such written permission shall be subject to imposition of an administrative penalty by the
33	office of cannabis regulation of one hundred fifty dollars ($150) per violation, in addition to and
34	not in lieu of any applicable penalty, access prohibition or restriction, eviction or other action that
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1	may lawfully be taken by the owner and/or any applicable authority with respect to such multi-
2	unit housing complex or building.
3	(d) No person may smoke, vaporize or otherwise consume or use, sell, distribute or
4	otherwise transfer or propose any such sale, distribution or transfer, cannabis or cannabis
5	products in, on or about the premises of any place of business, establishment, or club, whether
6	public or private, and whether operated for-profit or nonprofit, or any commercial property or
7	other premises as further defined through regulations promulgated by the office of cannabis
8	regulation, unless a cannabis social use license or temporary cannabis social use permit has been
9	issued by the office of cannabis regulation with respect to such business, establishment, club or
10	commercial property premises in accordance with regulations promulgated by the office of
11	cannabis regulation. Any person who violates this section shall be subject to imposition of
12	administrative fine and/or other penalty as prescribed by the office of cannabis regulation in such
13	regulations.
14	21-28.10-9. Places of employment.
15	(a) The provisions of this chapter do not require employers to accommodate the
16	use or possession of marijuana, or being under the influence of marijuana, in any workplace.
17	(b) Employers may implement drug use policies which prohibit the use or possession of
18	marijuana in the workplace or working under the influence of marijuana, provided that unless
19	such use is prohibited pursuant to the terms of a collective bargaining agreement, an employer
20	shall not fire or take disciplinary action against an employee solely for an employee’s private,
21	lawful use of marijuana outside the workplace and so long as the employee has not and is not
22	working under the influence of marijuana except to the extent that the employer is a federal
23	contractor or otherwise subject to federal law or regulations such that failure to take such action
24	would cause the employer to lose a monetary or licensing related benefit thereunder.
25	21-28.10-10. Private property.
26	(a) Except as provided in this section, the provisions of this chapter do not
27	require any person, corporation, or any other entity that occupies, owns, or controls a
28	property to allow the consumption, or transfer of marijuana on or in that property.
29	(b) Except as provided in this section, in the case of the rental of a residential
30	dwelling unit governed by chapter 18 of title 34, a landlord may not prohibit the
31	consumption of cannabis by non-smoked or non-vaporized means, or the transfer without
32	compensation of cannabis by the tenant as defined in § 34-18-11, provided the tenant is in
33	compliance with the possession and transfer limits and other requirements set forth in § 21-28.10-
34	4(1)(i) and (iv), and provided any such consumption or transfer by the tenant is done within
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1	the tenant’s dwelling unit and is not visible from outside of the individual residential
2	dwelling unit. A landlord may prohibit the consumption, display, and transfer of cannabis
3	by a roomer as defined in §34-18-11 and by any other person who is not a tenant.
4	21-28.10-11. False age representation.
5	(a) Any person who falsely represents themselves to be twenty-one (21) years of age or
6	older in order to obtain any marijuana, marijuana products, or marijuana paraphernalia
7	pursuant to this chapter is guilty of a civil violation.
8	(b) Any person who violates this section shall be subject to the following penalties
9	which shall be enforced by the division of motor vehicles in accordance with chapter 11 of title
10	31 of the general laws and any regulations promulgated thereunder or hereunder:
11	(i) for the first offense, imposition of a mandatory fine of not less than one
12	hundred dollars ($100) nor more than five hundred dollars ($500), the requirement to
13	perform thirty (30) hours of community service and suspension of his/her motor vehicle
14	operator's license or permit and driving privileges for a period of thirty (30) days;
15	(ii) for the second offense, imposition of a mandatory fine of not less than five
16	hundred dollars ($500) nor more than seven hundred fifty dollars ($750), the requirement to
17	perform forty (40) hours of community service and suspension of his/her motor vehicle
18	operator's license or permit and driving privileges for a period of three (3) months; and
19	(iii) for the third and subsequent offenses, imposition of a mandatory fine for each
20	offense of not less than seven hundred fifty dollars ($750) nor more than one thousand
21	dollars ($1,000), the requirement to perform by fifty (50) hours of community service and
22	suspension of his/her motor vehicle operator's license or permit and driving privileges for a
23	period of one (1) year.
24	(c) In addition to and not in lieu of the penalties described in subsection (b), the
25	department of elementary and secondary education and, with the prior approval of the
26	department, any city, town or school district under its authority, may adopt and implement
27	marijuana drug use policies which require students to face disciplinary actions including but not
28	limited to, suspension, expulsion, community service, and prohibition from participation in
29	school sanctioned events, for any violation of this section or for the possession or use of
30	marijuana. The department of elementary and secondary education shall have the authority to
31	adopt rules and regulations as are necessary and proper to carry out the foregoing.
32	21-28.10-12. Unlawful distribution to minors; penalties.
33	(a) Except as expressly provided in chapters 21-28.6 of the general laws, no person or
34	entity shall sell, deliver or otherwise transfer to any person who is under twenty-one (21) years
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1	of age marijuana, marijuana plants or marijuana products.
2	(b) Any person or entity who sells, delivers or otherwise transfers marijuana, marijuana
3	plants or marijuana products to any person who is under twenty-one (21) years of age violation of
4	this chapter and chapter 21-28.11 and/or the regulations promulgated hereunder shall be subject
5	to imposition of an administrative penalty by the office of cannabis regulation in the amount of
6	$10,000 per violation.
7	(c) As to any violation of this section, such person, and in the case of an entity such
8	entity’s principal officers and other key persons, shall also be guilty of a felony, and upon
9	conviction shall be punished by imprisonment and a fine as provided in chapter 21-28 of the
10	general laws and the attorney general shall prosecute such criminal violation.
11	21-28.10-13. Unlawful marijuana extraction, penalties.
12	(a) No person, other than a licensed processor who is in compliance with this
13	chapter, chapter 28.11 and accompanying regulations or an agent of a processor acting in
14	that capacity, may extract compounds from marijuana using solvents other than water,
15	glycerin, propylene glycol, vegetable oil, or food grade ethanol (ethyl alcohol). No person
16	may extract compounds from marijuana using ethanol in the presence or vicinity of open
17	flame.
18	(b) A person who violates this section shall be subject to imposition of an
19	administrative penalty by the office of cannabis regulation of up to five thousand dollars
20	($5,000) per violation.
21	(c) A person who violates this section shall also be guilty of a felony punishable by
22	imprisonment and a fine in accordance with chapter 21-28 of the general laws and the attorney
23	general shall prosecute such criminal violation.
24	CHAPTER 28.11
25	MARIJUANA REGULATION, CONTROL, AND TAXATION ACT
26	21-28.11-1. Short title.
27	This chapter shall be known and may be cited as the "Marijuana Regulation, Control,
28	and Taxation Act."
29	21-28.11-2. Definitions.
30	For purposes of this chapter:
31	(1) “Cannabis” means all parts of the plant of the genus marijuana, also known as
32	marijuana sativa L, whether growing or not; the seeds thereof; the resin extracted from any
33	part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation
34	of the plant, its seeds, or resin regardless of cannabinoid content or cannabinoid potency
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1	including “marijuana”, and “industrial hemp” or “industrial hemp products” which satisfy the
2	requirements of chapter 2-26 of the general laws and the regulations promulgated thereunder.
3	(2) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
4	the seeds of the plant; the resin extracted from any part of the plant; and every compound,
5	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not
6	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
7	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
8	mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the
9	plant which is incapable of germination. Marijuana shall not include “industrial hemp or”
10	industrial hemp products” which satisfy the requirements of chapter 2-26 of the general laws and
11	the regulations promulgated thereunder.
12	(3) "Marijuana cultivation facility" means an entity that is licensed pursuant to
13	chapter 28.11 of title 21, to be exempt from state penalties for cultivating, preparing,
14	packaging, and selling marijuana to a marijuana retailer, a marijuana processor, another
15	marijuana cultivation facility, cannabis testing laboratory, or another marijuana establishment
16	licensed by the office of cannabis regulation, in accordance with regulations promulgated by the
17	office of cannabis regulation; but not for manufacturing, processing or selling marijuana
18	products or selling marijuana at retail or otherwise to the general public.
19	(4) "Marijuana establishment" and “marijuana establishment licensee” means any
20	person or entity licensed by the office of cannabis regulation under this chapter or chapter 21-28.6
21	whose license permits it to engage in or conduct activities in connection with the adult use
22	marijuana industry or medical marijuana program and includes but is not limited to a licensed
23	marijuana cultivation facility, marijuana processor, marijuana retailer, cannabis testing facility,
24	compassion center, medical marijuana cultivator, medical marijuana processor or any other
25	license issued by the office of cannabis regulation under this chapter or chapter 21-28.6 and/or as
26	specified and defined in regulations promulgated by the office of cannabis regulation.
27	(5) "Marijuana paraphernalia" means equipment, products, and materials which are
28	used or intended for use in planting, propagating, cultivating, growing, harvesting,
29	manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing,
30	packaging, repackaging, storing, containing, concealing, ingesting, or inhaling marijuana, or
31	otherwise introducing marijuana into the human body.
32	(6) "Marijuana processor" means an entity licensed pursuant to chapter 28.11 of title
33	21 to be exempt from state penalties for purchasing marijuana from marijuana cultivation
34	facilities, other marijuana processors, or other marijuana establishments, in accordance with
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1	regulations promulgated by the office of cannabis regulation and manufacturing or processing
2	marijuana products, selling, giving, or transferring marijuana products to a marijuana
3	retailer, marijuana testing facility, or other marijuana establishments, in accordance with
4	regulations promulgated by the office of cannabis regulation but not for selling marijuana or
5	marijuana products at retail or otherwise to the general public.
6	(7) "Marijuana products" means any form of marijuana, including concentrated
7	marijuana and products that are comprised of marijuana and other ingredients that are
8	intended for use or consumption, such as, but not limited to, extracts, infusions, edible
9	products, ointments, and tinctures, as further defined in regulations promulgated by the office of
10	cannabis regulation.
11	(8) "Marijuana testing facility" or “cannabis testing laboratory” means a third party
12	analytical testing laboratory licensed by the departments of health and office of cannabis
13	regulation to collect and test samples of cannabis pursuant to regulations promulgated by the
14	departments.
15	(9) "Marijuana retailer" means an entity that is licensed pursuant to chapter 28.11 of
16	title 21, to be exempt from state penalties for purchasing marijuana from marijuana
17	cultivation facilities, marijuana processors, or other marijuana establishments in accordance
18	with regulations promulgated by the office of cannabis regulation, and selling marijuana,
19	marijuana products, and marijuana paraphernalia to customers who are twenty-one (21) years of
20	age or older in accordance with the provisions of this chapter, chapter 21-28.11 and rules and
21	regulations promulgated by the office of cannabis regulation.
22	(10) "Smoke" or "smoking" means heating to at least the point of combustion,
23	causing plant material to burn, inhaling, exhaling, burning, or carrying any lighted or heated
24	cigarette, pipe, weed, plant, other marijuana product in any manner or in any form intended for
25	inhalation in any manner or form and includes but is not limited to the use of electronic cigarettes,
26	electronic pipes, electronic marijuana delivery system products, or other similar products that rely
27	on vaporization or aerosolization.
28	(11) "State prosecution" means prosecution initiated or maintained by the state of
29	Rhode Island or an agency or political subdivision of the state of Rhode Island.
30	(12) “Vaporize” or “vape” means heating below the point of combustion and
31	resulting in a vapor or mist.
32	(13) "Equivalent amount" means the portion of usable marijuana, be it in extracted,
33	edible, concentrated, or any other form, found to be equal to a portion of dried marijuana, as
34	defined by regulations promulgated by the office of cannabis regulation.
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1	21-28.11-3. Office of Cannabis Regulation.
2	(a) Within the department of business regulation there shall be an office of cannabis
3	regulation that oversees the regulation, licensing and control of cannabis, including marijuana,
4	medical marijuana and industrial hemp, and such other matters within the jurisdiction of the
5	department as determined by the director. An associate director or other designee of the director
6	who reports to the director shall be in charge of all matters relating to cannabis regulation and
7	control.
8	(b) Whenever in chapters 2-26, 21-28.6, 21-28.10, 21-28.11 and 44-49.1 of the general
9	laws the words “department of business regulation” shall appear, the words shall be deemed to
10	mean the office of cannabis regulation within the department of business regulation. Whenever
11	in chapters 2-26, 21-28.6, 21-28.10, 21-28.11 and 44-49.1 of the general laws the words “office
12	of cannabis regulation” shall appear, the words shall be deemed to mean the office of cannabis
13	regulation within the department of business regulation.
14	(c) The office of cannabis regulation shall coordinate the executive branch response
15	to the regulation and control of cannabis including, but not limited to, strategic
16	planning, coordination and approval of regulations, educational content, planning and
17	implementation, community engagement, budget coordination, data collection and analysis
18	functions, and any other duties deemed necessary and appropriate by the office of cannabis
19	regulation to carry out the provisions of this chapter.
20	(d) In furtherance of coordinating the oversight of cannabis, including marijuana,
21	medical marijuana and industrial hemp, across state agencies, the office of cannabis regulation
22	shall:
23	(1) Coordinate with the staff designated by the respective directors of each state
24	agency regarding the agency's promulgation and implementation of rules and regulations
25	regarding adult use of marijuana, medical marijuana and industrial hemp with the objective of
26	producing positive economic, public safety, and health outcomes for the state and its citizens;
27	(2) Offer guidance to and communicate with municipal officials regarding
28	the implementation and enforcement of this chapter and chapters 28.6 and 28.10;
29	(3) Align all policy objectives and the promulgation of rules and regulations across
30	state agencies to increase efficiency and eliminate unintended negative impacts on the state
31	and its citizens;
32	(4) Communicate with regulatory officials from other states that allow marijuana for
33	adult use, medical marijuana use and industrial hemp production to learn from the experiences of
34	those states;
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1	(5) Anticipate, prioritize, and respond to emerging issues with the regulation of
2	marijuana;
3	(6) Coordinate the collection of data on adult use of marijuana and medical
4	marijuana use from state agencies and report to the governor and legislature no later than
5	January 1, 2021, and every year thereafter. The report shall include, but is not limited to:
6	(i) The number and geographic distribution of all licensed marijuana establishments;
7	(ii) Data on the total amount of sales of marijuana and the total amount of revenue
8	raised from taxes and fees levied on marijuana;
9	(iii) Projected estimate of the total marijuana revenue that will be raised in the
10	proceeding year;
11	(iv) The distribution of funds to programs and agencies from revenue raised from
12	fees and taxes levied on marijuana; and
13	(v) Any findings from the departments of health and public safety related to changes in
14	marijuana use rates and the impact, if any, of marijuana use on public health and public safety.
15	21-28.11-4. Marijuana Advisory Board.
16	(a) The leaders of the general assembly shall establish a marijuana advisory board to
17	study and make recommendations on the regulation of marijuana and marijuana products.
18	(b) The marijuana advisory board shall consist of fourteen (14) members,
19	seven (7) appointed by the speaker of the house, and seven (7) appointed the senate
20	president. Both the speaker of the house and the senate president shall appoint one member
21	of the general assembly, one expert in law enforcement, one expert in public health, one
22	expert in the legal marijuana business community, one attorney with experience in
23	marijuana law and policy, one expert in social welfare or social justice, and one individual
24	who represents marijuana consumers.
25	(c) Members of the marijuana advisory board shall serve terms of two (2) years.
26	(d) Members of the board shall serve without compensation but shall be reimbursed
27	for their expenses actually and necessarily incurred in the discharge of their official duties.
28	Eight (8) or more members of the board present and voting shall constitute a quorum.
29	(e) The marijuana advisory board’s duties shall include:
30	(1) Advising the legislature on matters related to marijuana cultivation,
31	processing, manufacture, transport, distribution, testing and sale;
32	(2) On its own initiative, recommending to the office of cannabis regulation
33	guidelines, rules and regulations and any changes to guidelines, rules and
34	regulations that the board considers important or necessary; and
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1	(3) Holding public hearings to take testimony from experts and members of the
2	general public on issues related to the regulation and taxation of marijuana.
3	(f) All records of the marijuana advisory board shall be public records.
4	(g) The chairs of the marijuana advisory board shall issue public notice at least
5	fourteen (14) days prior to each meeting of the marijuana advisory board.
6	21-28.11-5. Licensing of marijuana establishments.
7	(a) Except as otherwise provided in this chapter:
8	(1) A person or an entity may apply, in accordance with the provisions of this chapter
9	and regulations adopted by the office of cannabis regulation, for the issuance of a license
10	authorizing the applicant to engage in licensed marijuana activities as a marijuana retailer,
11	marijuana cultivator, marijuana processor, cannabis testing facility, or any other marijuana
12	establishment licensee, pursuant to the provisions of this chapter and regulations promulgated
13	by the office of cannabis regulation provided that a majority of equity in and/or ownership of any
14	license is held by a Rhode Island resident, or Rhode Island residents, as defined in regulations
15	promulgated by the office of cannabis regulation.
16	(2) The office of cannabis regulation shall have authority to issue a license or
17	licenses to marijuana cultivators, marijuana retailers, marijuana processors, and any other
18	category of marijuana establishment licensee established through this chapter or the regulations
19	promulgated hereunder.
20	(3) The department of health, in coordination with the office of cannabis regulation,
21	shall have authority to promulgate regulations to create and implement all licenses involving
22	cannabis reference testing requirements including approval, laboratory proficiency programs and
23	proficiency sample providers, quality assurance sample providers, round robin testing and
24	regulations establishing quality control and test standardization, and create and implement
25	additional types and classes of licensed cannabis testing facilities in accordance with regulations
26	promulgated hereunder.
27	(b) The office of cannabis regulation shall have the authority to promulgate regulations
28	to create and implement additional types and classes of commercial marijuana establishment
29	licenses, including but not limited to, licenses for businesses to engage in marijuana destruction,
30	delivery, disposal, research and development, transportation, social use licenses, or any other
31	commercial activity needed to support licensed marijuana cultivators, licensed marijuana
32	processors, compassion centers, licensed cannabis testing facilities, provided no license created
33	by the department shall allow for the retail sale of marijuana.
34	(c) The office of cannabis regulation shall promulgate regulations governing the manner
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1	in which it shall consider applications for issuing additional classes of marijuana establishment
2	licenses, in accordance with this section.
3	(d) The office of cannabis regulation shall promulgate regulations governing the manner
4	in which it shall consider applications for the licensing and renewal of each type of marijuana
5	establishment license necessary and proper to enforce the provisions of and carry out the duties
6	assigned to it under this chapter and chapter 28.10, including but not limited to regulations
7	governing:
8	(1) The form and content of licensing and renewal applications;
9	(2) Application and licensing fees for marijuana establishment licensees;
10	(3) Procedures for the approval or denial of a license, and procedures for suspension or
11	revocation of the license of any marijuana establishment licensee that violates the provisions of
12	this chapter, chapter 28.10 or the regulations promulgated thereunder in accordance with the
13	provisions of chapter 42-35 of the general laws; and
14	(4) Compliance with municipal zoning restrictions, if any, which comply with 21-28.11-
15	10 of this chapter.
16	(e) The department of health or the office of cannabis regulation, as applicable, shall
17	issue each principal officer, board member, agent, volunteer, and employee of a marijuana
18	establishment license a registry identification card or renewal card after receipt of the person's
19	name, address, date of birth; a fee in an amount established by the department of health or the
20	office of cannabis regulation; and, when the applicant holds an ownership, equity, controlling, or
21	managing stake in the marijuana establishment license as defined in regulations promulgated by
22	the office of cannabis regulation, notification to the department of health or the office of cannabis
23	regulation by the department of public safety division of state police, attorney general’s office, or
24	local law enforcement that the registry identification card applicant has not been convicted of a
25	felony drug offense or has not entered a plea of nolo contendere for a felony drug offense and
26	received a sentence of probation. Each card shall specify that the cardholder is a principal officer,
27	board member, agent, volunteer, employee, or other designation required by the departments of
28	marijuana establishment license and shall contain the following:
29	(i) The name, address, and date of birth of card applicant;
30	(ii) The legal name of the marijuana establishment licensee to which the applicant is
31	affiliated;
32	(iii) A random identification number that is unique to the cardholder;
33	(iv) The date of issuance and expiration date of the registry identification card; and
34	(v) A photograph, if the department of health or the office of cannabis regulation decides
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1	to require one; and
2	(vi) Any other information or card classification that the office of cannabis regulation or
3	department of health requires.
4	(f) Except as provided in subsection (e), neither the department of health nor the office of
5	cannabis regulation shall issue a registry identification card to any card applicant who holds an
6	ownership, equity, controlling, or managing stake in the marijuana establishment license as
7	defined in regulations promulgated by the office of cannabis regulation, who has been convicted
8	of a felony drug offense or has entered a plea of nolo contendere for a felony drug offense and
9	received a sentence of probation or who the department has otherwise deemed unsuitable. If a
10	registry identification card is denied, the applicant will be notified in writing of the purpose for
11	denying the registry identification card. A registry identification card may be granted if the
12	offense was for conduct that occurred prior to the enactment of this chapter or that was
13	prosecuted by an authority other than the state of Rhode Island and for which the enactment of
14	this chapter would otherwise have prevented a conviction.
15	(g) (i) All registry identification card applicants who hold an ownership, equity,
16	controlling, or managing stake in the marijuana establishment license as defined in regulations
17	promulgated by the office of cannabis regulation shall apply to the department of public safety
18	division of state police, the attorney general’s office, or local law enforcement for a national
19	criminal identification records check that shall include fingerprints submitted to the federal
20	bureau of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo
21	contendere for a felony drug offense with a sentence of probation, and in accordance with the
22	rules promulgated by the department of health and the office of cannabis regulation, the
23	department of public safety division of state police, the attorney general’s office, or local law
24	enforcement shall inform the applicant, in writing, of the nature of the felony and the department
25	of public safety division of state police shall notify the department of health or the office of
26	cannabis regulation, in writing, without disclosing the nature of the felony, that a felony drug
27	offense conviction or a plea of nolo contendere for a felony drug offense with probation has been
28	found.
29	(ii) In those situations in which no felony drug offense conviction or plea of nolo
30	contendere for a felony drug offense with probation has been found, the department of public
31	safety division of state police, the attorney general’s office, or local law enforcement shall inform
32	the applicant and the department of health or the office of cannabis regulation, in writing, of this
33	fact.
34	(iii) All registry identification card applicants shall be responsible for any expense
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1	associated with the criminal background check with fingerprints.
2	(h) A registry identification card of a principal officer, board member, agent, volunteer,
3	or employee, or any other designation required by the office of cannabis regulation shall expire
4	one year after its issuance, or upon the termination of the principal officer, board member, agent,
5	volunteer or employee's relationship with the marijuana establishment licensee, or upon the
6	termination or revocation of the affiliated marijuana establishment’s license, whichever occurs
7	first.
8	(i) A registration identification card holder shall notify and request approval from the
9	office of cannabis regulation or department of health of any change in his or her name or address
10	within ten (10) days of such change. A cardholder who fails to notify the office of cannabis
11	regulation or health of any of these changes is responsible for a civil infraction, punishable by a
12	fine of no more than one hundred fifty dollars ($150).
13	(j) When a cardholder notifies the department of health or the office of cannabis
14	regulation of any changes listed in this subsection, the department shall issue the cardholder a
15	new registry identification after receiving the updated information and a ten dollar ($10.00) fee.
16	(k) If a cardholder loses his or her registry identification card, he or she shall notify the
17	department of health or the office of cannabis regulation and submit a ten dollar ($10.00) fee
18	within ten (10) days of losing the card and the department shall issue a new card.
19	(l) Registry identification cardholders shall notify the office of cannabis regulation or
20	health of any disqualifying criminal convictions as defined in subdivision (c)(7). The applicable
21	department may choose to suspend and/or revoke his or her registry identification card after such
22	notification.
23	(m) If a registry identification cardholder violates any provision of this chapter or
24	regulations promulgated hereunder as determined by the departments of health and office of
25	cannabis regulation, his or her registry identification card may be suspended and/or revoked.
26	(n) The department of business regulation shall have the authority to adopt
27	regulations governing the allowable size of marijuana establishment licensees. The
28	department of business regulation shall have the authority to adopt regulations governing
29	the allowable size of marijuana cultivations, and whether indoor or outdoor cultivation is
30	permitted.
31	(o) The department of business regulation may establish pursuant to regulations
32	different classifications or schedules for marijuana establishment licensee facilities based on
33	their physical size, scope, or authorized activities permitted under the class or schedule of
34	marijuana establishment license.
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1	(p) In order to create an open, accessible, and stable industry, the office of cannabis
2	regulation shall have the authority to promulgate regulations which limit the number of marijuana
3	establishment licenses or classes of marijuana establishment licenses that an applicant may be
4	issued.
5	(q) In order to create an open, accessible, and stable industry, the office of cannabis
6	regulation shall have the authority to promulgate regulations which sets market-based criteria for
7	the issuance or renewal of cultivation licenses.
8	(r) The department of business regulation may not issue a marijuana cultivation
9	facility, marijuana processor, or marijuana retailer to any entity that operates or exercises
10	ownership, management, or other control over a marijuana testing facility.
11	(s) The department of health and department of office of cannabis regulation may not
12	issue a marijuana testing facility license to any applicant that operates or exercises
13	ownership, management, or other control over another marijuana establishment license or
14	license issued under chapter 2-26 of the general laws.
15	(t) The office of cannabis regulation shall determine an annual license and renewal fee
16	for each type and/or class of marijuana establishment licensee. The license fee must be paid
17	upon the initial issuance of the license and every twelve (12) months thereafter. If the
18	license fee is not remitted to the state in a timely manner, the license shall be revoked. The
19	department of health shall determine the annual license fee for cannabis testing laboratories and
20	employee registration cards.
21	(u) The office of cannabis regulation shall set forth procedures to require all owners,
22	officers, investors, employees or agents with operational or managing control of a marijuana
23	establishment license applicant to undergo a national background check conducted by the
24	office of the attorney general, the state police, a local police department, or some other
25	agency approved by the office of cannabis regulation. An application for a marijuana
26	establishment license may be rejected if a background check of an owner, officer, investor or
27	employee or agent with operational or managing control reveals past offenses or actions that the
28	office of cannabis regulation deems to be disqualifying,
29	(v) Whenever an entity seeks to renew a license as a marijuana establishment, the
30	office of cannabis regulation shall require the renewal application to include a question
31	regarding any Occupational Safety and Health Administration actions. The office of
32	cannabis regulation may issue regulations as are necessary to ensure licensee compliance to
33	address any such Occupational Safety and Health Administration actions in light of worker
34	safety concerns.
	LC000763 - Page 503 of 541
1	(w) Medical marijuana cultivators and compassion centers in good standing with the
2	office of cannabis regulation may also apply for and be issued adult use marijuana establishment
3	licenses, in accordance with regulations promulgated by the office of cannabis regulation,
4	provided the medical marijuana establishment licensee continues to hold any valid medical
5	marijuana license approved or issued prior to July 1, 2019.
6	(x) The office of cannabis regulation may limit or prohibit a medical marijuana
7	establishment’s operation under an adult use marijuana establishment license if the office of
8	cannabis regulation determines that failure to do so would threaten medical marijuana patients’
9	access to marijuana products needed to treat qualifying conditions.
10	(y) Licensees may hold a medical marijuana establishment license and an adult use
11	marijuana establishment license in accordance with regulations promulgated by the office of
12	cannabis regulation.
13	(z) The office of cannabis regulation shall prioritize the review of applications for adult
14	use marijuana establishment licenses submitted by medical marijuana establishments that hold a
15	license, in good standing, that was issued by the department prior to the effective date of this
16	chapter.
17	(aa) The office of cannabis regulation may create a streamlined application for medical
18	marijuana establishment licensees who apply for adult use marijuana establishment licenses
19	provided the applicant holds a license, in good standing, that was issued by the department.
20	21-28.11-6. Ineligibility for license.
21	A marijuana establishment may not operate, and a prospective marijuana
22	establishment may not apply for a license, if any of the following are true:
23	(1) The person or entity is applying for a license to operate as a marijuana retailer in a
24	location that is within five hundred (500) feet of the property line of a preexisting public or
25	private school, or the person or entity is applying for a license to operate as a marijuana
26	establishment other than a marijuana retailer and the establishment would operate in a
27	location that is within one thousand (1,000) feet of the property line of a preexisting public or
28	private school; or
29	(2) The establishment would be located at a site where the use is not permitted by
30	applicable zoning classification or by special use permit or other zoning approval, or if the
31	proposed location would otherwise violate a municipality's zoning ordinance; or
32	(3) The establishment would be located in a municipality in which residents
33	have approved, by a simple majority referendum, a ban on the kind of marijuana
34	establishment being proposed. For purpose of illustration but not limitation, a marijuana
	LC000763 - Page 504 of 541
1	retailer may not operate in a municipality in which residents have approved by a
2	simple majority referendum a ban on marijuana retailers.
3	(4) If any marijuana business establishment license applicant is deemed unsuitable or
4	21-28.11-7. License Required.
5	No person or entity shall engage in any activities in which a licensed marijuana
6	establishment licensee may engage pursuant to chapters 28.6, 28.10 or 28.11 of title 21 and the
7	regulations promulgated thereunder, without the license that is required in order to engage in such
8	activities issued by the office of cannabis regulation and compliance with all provisions of such
9	chapters 28.6, 28.10 and 28.11 or title 21 and the regulations promulgated thereunder.
10	21-28.11-8. Enforcement.
11	(a) (1) Notwithstanding any other provision of this chapter, if the director of the
12	department of business regulation or his or her designee has cause to believe that a violation of
13	any provision of chapters 21-28.6, 21-28.10 or 28.11 or any regulations promulgated thereunder
14	has occurred by a licensee that is under the department’s jurisdiction pursuant to chapters 21-
15	28.6, 21-28.10 or 28.11, or that any person or entity is conducting any activities requiring
16	licensure or registration by the office of cannabis regulation under chapters 21-28.6, 21-28.10 or
17	28.11 or the regulations promulgated thereunder without such licensure or registration, the
18	director or his or her designee may, in accordance with the requirements of the administrative
19	procedures act, chapter 35 of title 42:
20	(i) With the exception of patients and authorized purchasers, revoke or suspend a license
21	or registration;
22	(ii) Levy an administrative penalty in an amount established pursuant to regulations
23	promulgated by the office of cannabis regulation;
24	(iii) Order the violator to cease and desist such actions;
25	(iv) Require a licensee or registrant or person or entity conducting any activities requiring
26	licensure or registration under chapters 21-28.6, 21-28.10 or 28.11 to take such actions as are
27	necessary to comply with such chapter and the regulations promulgated thereunder; or
28	(v) Any combination of the above penalties.
29	(2) If the director of the department of business regulation finds that public health, safety,
30	or welfare imperatively requires emergency action, and incorporates a finding to that effect in his
31	or her order, summary suspension of license or registration and/or cease and desist may be
32	ordered pending proceedings for revocation or other action. These proceedings shall be promptly
33	instituted and determined.
34	(b) If a person exceeds the possession limits set forth in chapters 21-28.6, 21-28.10 or 21-
	LC000763 - Page 505 of 541
1	28.11, or is in violation of any other section of chapters 21-28.6, 21-28.10 or 28.11 or the
2	regulations promulgated thereunder, he or she may also be subject to arrest and prosecution under
3	chapter 28 of title 21 of the general laws.
4	(c) All marijuana establishment licensees are subject to inspection by the office of
5	cannabis regulation including but not limited to, the licensed premises, all marijuana and
6	marijuana products located on the licensed premises, personnel files, training materials, security
7	footage, all business records and business documents including but not limited to purchase
8	orders, transactions, sales, and any other financial records or financial statements whether located
9	on the licensed premises or not.
10	(d) All marijuana products that are held within the borders of this state in violation of the
11	provisions of chapters 21-28.6, 21-28.10 or 21-28.11 or the regulations promulgated thereunder
12	are declared to be contraband goods and may be seized by the office of cannabis regulation, the
13	tax administrator or his or her agents, or employees, or by any sheriff, or his or her deputy, or any
14	police or other law enforcement officer when requested by the tax administrator or office of
15	cannabis regulation to do so, without a warrant. All contraband goods seized by the state under
16	this chapter may be destroyed.
17	(e) Notwithstanding any other provision of law, the office of cannabis regulation may
18	make available to law enforcement and public safety personnel, any information that the
19	department’s director or his or her designee may consider proper contained in licensing records,
20	inspection reports and other reports and records maintained by the office of cannabis regulation,
21	as necessary or appropriate for purposes of ensuring compliance with state laws and regulations.
22	Nothing in this act shall be construed to prohibit law enforcement, public safety, fire, or building
23	officials from investigating violations of, or enforcing state law.
24	21-28.11-9. Regulation and control of marijuana establishments.
25	(a) The department of business regulation shall adopt all rules and regulations
26	necessary and convenient to carry out and administer the provisions in this chapter and chapter
27	28.10 including operational requirements applicable to licensees and regulations as are necessary
28	and proper to enforce the provisions of and carry out the duties assigned to it under this chapter
29	and chapter 28.10, including but not limited to regulations governing:
30	(1) Record-keeping requirements for marijuana establishment licensees;
31	(2) Security requirements for marijuana establishment licensees including but not limited
32	to the use of:
33	(i) An alarm system, with a backup power source, that alerts security personnel and local
34	law enforcement officials of any unauthorized breach;
	LC000763 - Page 506 of 541
1	(ii) Perpetual video surveillance system, with a backup power source, that records video
2	surveillance must be stored for at least two (2) months and be accessible to the office of cannabis
3	regulation via remote access and to law enforcement officials upon request;
4	(iii) Protocols that ensure the secure transport, delivery, and storage of cannabis and
5	cannabis products;
6	(iv) Additional security measures to protect against diversion or theft of cannabis from
7	cannabis cultivation facilities that cultivate cannabis outdoors; and
8	(v) any additional requirements deemed necessary by the office of cannabis regulation;
9	(3) Requirements for inventory tracking and the use of seed to sale monitoring system(s)
10	approved by the state which tracks all cannabis from its origin up to and including the point of
11	sale;
12	(4) Permitted forms of advertising and advertising content, including but not limited to:
13	(i) A marijuana establishment licensee may not advertise through any means
14	unless at least 85% of the audience is reasonably expected to be 21 years of age or older,
15	as determined by reliable, current audience composition data;
16	(ii) a marijuana establishment licensee may not engage in the use of pop up digital
17	advertisements;
18	(iii) a marijuana establishment licensee may not display any marijuana product pricing
19	through any advertising other than their establishment website which must be registered with the
20	office of cannabis regulation, or through opt in subscription services such as email alerts or sms
21	text messages, provided the licensee has verified the person attempting to view their webpage or
22	opt in to advertising alerts is over the age of 21;
23	(iv) a marijuana establishment licensee may not use any billboard advertisements within
24	the state of Rhode Island;
25	(v) A marijuana establishment licensee may display signage outside its
26	facility displaying the name of the establishment, provided the signage conforms to all
27	applicable local guidelines and rules and does not display imagery of a marijuana leaf or the
28	use of marijuana or use neon signage;
29	(vi) a marijuana establishment licensee may be listed in public phonebooks and
30	directories;
31	(vii) A marijuana establishment licensee and its logo may be listed as a sponsor of a
32	charitable event, provided the logo does not contain imagery of a cannabis leaf or the use of
33	cannabis;
34	(viii) a marijuana establishment license shall not use, except, or offer any coupons,
	LC000763 - Page 507 of 541
1	discounts, samples, giveaways, or any other mechanism to sell marijuana at prices below market
2	value which may or may not circumvent the payment and collection of marijuana taxes; and
3	(viii) any other restrictions deemed appropriate by the office of cannabis regulation; and
4	(5) Permitted forms of marijuana products including, but not limited to, regulations
5	which:
6	(i) prohibit any form of marijuana product which is in the shape or form of an animal,
7	human, vehicle, or other shape or form which may be attractive to children;
8	(ii) prohibit any marijuana “additives” which could be added, mixed, sprayed on, or
9	applied to an existing food product without a person’s knowledge; and
10	(iii) include any other requirements deemed necessary by the office of cannabis
11	regulation; and
12	(6) Limits for marijuana product serving sizes, doses, and potency including but not
13	limited to regulations which:
14	(i) limit all servings of edible forms of marijuana to no more than five milligrams (5 mg)
15	of THC per serving;
16	(ii) limits the total maximum amount of THC per edible product package to one hundred
17	milligrams (100 mg) of THC;
18	(iii) limits the THC potency of any product to no more than fifty percent (50%) THC
19	unless otherwise authorized by the office of cannabis regulation;
20	(iv) may establish product or package limits based on the total milligrams of THC; and
21	(v) include any additional requirements or limitations deemed necessary by the office of
22	cannabis regulation:
23	(7) Product restrictions including but not limited to regulations which:
24	(i) establish a review process for the office of cannabis regulation to approve or deny
25	forms of marijuana products which may require marijuana establishment licensees to submit a
26	proposal, which includes photographs of the proposed product properly packaged and
27	labeled and any other materials deemed necessary by the office of cannabis regulation, to the
28	office of cannabis regulation for each line of cannabis products;
29	(ii) place additional restrictions on marijuana products to safeguard public health and
30	safety, as determined by the office of cannabis regulation in consultation with the executive
31	branch state agencies;
32	(iii) require all servings of edible products to be marked, imprinted, molded, or otherwise
33	display a symbol chosen by the department to alert consumers that the product contains
34	marijuana;
	LC000763 - Page 508 of 541
1	(iv) standards to prohibit cannabis products that pose public health risks, that are easily
2	confused with existing non-cannabis products, or that are especially attractive to youth; and
3	(v) any other requirements deemed suitable by the department;
4	(8) Limits and restrictions for marijuana transactions and sales including but not limited
5	to regulations which:
6	(i) establish processes and procedures to ensure all transactions and sales are properly
7	tracked through the use of a seed to sale inventory tracking and monitoring system;
8	(ii) establish rules and procedures for customer age verification;
9	(iii) establish rules and procedures to ensure retailers to no dispense, and customers to not
10	purchase amounts of marijuana in excess of the one ounce (1 oz) marijuana or equivalent amount
11	per transaction and/or per day;
12	(iv) establish rules and procedures to ensure no marijuana is dispensed to anyone under
13	the age of 21; and
14	(v) include any additional requirements deemed necessary by the office of cannabis
15	regulation;
16	(9) The testing and safety of marijuana and marijuana products including but not limited
17	to regulations promulgated by the office of cannabis regulation or department of health, as
18	applicable which:
19	(i) license and regulate the operation of cannabis testing facilities, including requirements
20	for equipment, training, and qualifications for personnel;
21	(ii) set forth procedures that require random sample testing to ensure quality control,
22	including, but not limited to, ensuring that cannabis and cannabis products are accurately labeled
23	for tetrahydrocannabinol (THC) content and any other product profile;
24	(iii) testing for residual solvents, poisons, or toxins; harmful chemicals; dangerous molds
25	or mildew; filth; and harmful microbials such as E. coli or salmonella and pesticides, and any
26	other compounds, elements, or contaminants;
27	(iv) require all cannabis and cannabis products must undergo random sample testing at a
28	registered cannabis testing facility or other laboratory equipped to test cannabis and cannabis
29	products that has been approved by the office of cannabis regulation;
30	(v) require any products which fail testing be quarantined and/or recalled and destroyed
31	in accordance with regulations;
32	(vi) allow for the establishment of other quality assurance mechanisms which may
33	include but not be limited to the designation or creation of a reference laboratory, creation of a
34	secret shopper program, round robin testing , or any other mechanism to ensure the accuracy of
	LC000763 - Page 509 of 541
1	product testing and labeling;
2	(vii) require marijuana establishment licensees and marijuana products to comply with
3	any applicable food safety requirements determined by the office of cannabis regulation and/or
4	the department of health;
5	(viii) include any additional requirements deemed necessary by the office of cannabis
6	regulation and the department of health; and
7	(ix) allow the office of cannabis regulation, in coordination with the department of health,
8	at their discretion, to temporarily remove, or phase in, any requirement for laboratory testing if it
9	finds that there is not sufficient laboratory capacity for the market.
10	(10) Online sales;
11	(11) Transport and delivery;
12	(12) Marijuana and marijuana product packaging including but not limited to
13	requirements that packaging be:
14	(i) opaque;
15	(ii) constructed to be significantly difficult for children under five (5) years of age to
16	open and not difficult for normal adults to use properly as defined by 16 C.F.R. 1700.20 (1995) or
17	another approval standard or process approved by the office of cannabis regulation;
18	(iii) be designed in a way that is not deemed as especially appealing to children; and
19	(iv) any other regulations required by the office of cannabis regulation; and
20	(13) Regulations for the quarantine and/or destruction of unauthorized materials;
21	(14) Industry and licensee production limitations;
22	(15) Procedures for the approval or denial of a license, and procedures for suspension or
23	revocation of the license of any marijuana establishment licensee that violates the provisions of
24	this chapter, chapter 28.10 or the regulations promulgated thereunder in accordance with the
25	provisions of chapter 42-35 of the general laws;
26	(16) Compliance with municipal zoning restrictions, if any, which comply with § 21-
27	28.11-10 of this chapter;
28	(17) Standards and restrictions for marijuana manufacturing and processing which shall
29	include but not be limited to requirements that marijuana processors;
30	(i) comply with all applicable building and fire codes;
31	(ii) receive approval from the state fire marshal’s office for all forms of manufacturing
32	that use a heat source or flammable solvent;
33	(iii) require any marijuana processor that manufactures edibles of marijuana infused food
34	products to comply with all applicable requirements and regulations issued by the department of
	LC000763 - Page 510 of 541
1	health’s office of food safety; and
2	(iv) comply with any other requirements deemed suitable by the office of cannabis
3	regulation.
4	(18) Standards for employee and workplace safety and sanitation;
5	(19) Standards for employee training including but not limited to:
6	(i) requirements that all employees of cannabis establishments must participate in a
7	comprehensive training on standard operating procedures, security protocols, health and
8	sanitation standards, workplace safety, and the provisions of this chapter prior to working at the
9	establishment. Employees must be retrained on an annual basis or if state officials discover a
10	cannabis establishment in violation of any rule, regulation, or guideline in the course of regular
11	inspections or audits; and
12	(ii) any other requirements deemed appropriate by the office of cannabis regulation; and
13	(20) Mandatory labeling that must be affixed to all packages containing cannabis or
14	cannabis products including but not limited to requirements that the label display:
15	(i) the name of the establishment that cultivated the cannabis or produced the cannabis
16	product;
17	(ii) the tetrahydrocannabinol (THC) content of the product;
18	(iii) a "produced on" date;
19	(iv) warnings that state: "Consumption of cannabis impairs your ability to drive a car or
20	operate machinery” and "Keep away from children” and, unless federal law has changed to
21	accommodate cannabis possession, "Possession of cannabis is illegal under federal law and in
22	many states outside of Rhode Island";
23	(v) a symbol that reflects these products are not safe for children which contains poison
24	control contact information; and
25	(vi) any other information required by the office of cannabis regulation; and
26	(21) Standards for the use of pesticides; and
27	(22) General operating requirements, minimum oversight, and any other activities,
28	functions, or aspects of a marijuana establishment licensee in furtherance of creating a stable,
29	regulated cannabis industry and mitigating its impact on public health and safety.
30	21-28.11-10. Municipal authority.
31	(a) Municipalities shall:
32	(i) Have the authority to enact local zoning and use ordinances not in conflict with
33	this chapter or with rules and regulations adopted by the office of cannabis regulation
34	regulating the time, place, and manner of marijuana establishments' operations,
	LC000763 - Page 511 of 541
1	provided that no local authority may prohibit any type of marijuana establishments'
2	operation altogether, either expressly or through the enactment of ordinances or regulations
3	which make any type of marijuana establishments' operation impracticable and;
4	(ii) Adopt all zoning and other applicable ordinances in accordance with subsection (a)(i)
5	before January 1, 2020.
6	(b) Zoning ordinances enacted by a local authority shall not require a marijuana
7	establishment licensee or marijuana establishment applicant to enter into a community host
8	agreement or pay any consideration to the municipality other than reasonable zoning and
9	permitting fees as determined by the office of cannabis regulation. The office of cannabis
10	regulation is the sole licensing authority for marijuana establishment licensees. A municipality
11	shall not enact any local zoning ordinances or permitting requirements that establishes a de facto
12	local license or licensing process unless explicitly enabled by this chapter or ensuing regulations
13	promulgated by the office of cannabis regulation.
14	(c) Notwithstanding subsection (a) of this section;
15	(i) Municipalities may prohibit specific classes of marijuana establishment licenses,
16	or all classes of marijuana establishment licenses from being issued within their jurisdiction if
17	the residents of the municipality have approved, by a simple majority of the electors
18	voting, a referendum to ban marijuana cultivation facilities, retailers, processors or
19	marijuana testing facilities, provided such referendum must be conducted on or before
20	November 5, 2019, and any ordinances related thereto must be adopted before January 1, 2020;
21	(ii) Municipalities must put forth a separate referendum question to ban each class of
22	marijuana establishment. A single question to ban all classes of marijuana establishments
23	shall not be permitted; and
24	(iii) Municipalities which ban the licensure of marijuana establishments located within
25	their jurisdiction pursuant to c(i), and/or adopt local zoning and other ordinances pursuant to a(ii),
26	before January 1, 2020, in accordance with this section, may hold future referenda to prohibit
27	previously allowed licenses, or allow previously prohibited licenses, provided those subsequent
28	referenda are held on the first Tuesday after the first Monday in the month of November.
29	(d) Notwithstanding subsections (a), (b) or (c) of this section, a municipality may not
30	prohibit a medical marijuana establishment licensee from continuing to operate under a marijuana
31	establishment license issued by the office of cannabis regulation if that marijuana establishment
32	licensee was approved or licensed prior to the passage of this chapter.
33	(e) Notwithstanding any other provision of this chapter, no municipality or local authority
34	shall restrict the transport or delivery of marijuana through their jurisdiction, or to local residents,
	LC000763 - Page 512 of 541
1	provided all transport and/or delivery is in accordance with this chapter.
2	(f) Municipalities may impose civil and criminal penalties for the violation of
3	ordinances enacted pursuant to and in accordance with this section.
4	21-28.11-11. Transportation of marijuana.
5	The office of cannabis regulation shall promulgate regulations regarding secure
6	transportation of marijuana for eligible retailers delivering products to purchasers in
7	accordance with this chapter and shipments of marijuana or marijuana products between
8	marijuana establishment licensees.
9	21-28.11-12. No minors on the premises of marijuana establishments.
10	A marijuana establishment shall not allow any person who is under twenty-one
11	(21) years of age to be present inside any room where marijuana or marijuana products
12	are stored, produced, or sold by the marijuana establishment unless the person who is under
13	twenty-one (21) years of age is:
14	(1) A government employee performing their official duties; or
15	(2) If the marijuana establishment is a retailer, a medical marijuana patient
16	registered pursuant to chapter 28.6 of title 21, if the retailer premises are also licensed as
17	a compassion center pursuant to §21-28.6-12 and the individual under twenty-one (21)
18	years of age is a qualifying patient registered under chapter 28.6 of title 21.
19	21-28.11-13. Contracts enforceable.
20	It is the public policy of the state that contracts related to the operation of a
21	marijuana establishment, compassion center, or a licensee under chapter 2-26 in accordance
22	with Rhode Island law shall be enforceable. It is the public policy of the state that no contract
23	entered into by a licensed marijuana establishment, compassion center, hemp cultivator or
24	other licensee under chapter 2-26 of the general laws or its employees or agents as permitted
25	pursuant to a valid license issued by the office of cannabis regulation, or by those who allow
26	property to be used by an establishment, its employees, or its agents as permitted pursuant
27	to a valid license, shall be unenforceable solely on the basis that cultivating, obtaining,
28	manufacturing, distributing, dispensing, transporting, selling, possessing, testing or using
29	marijuana or hemp is prohibited by federal law.
30	21-28.11-14. Compassion centers and medical marijuana cultivators.
31	(a) Any compassion center or medical marijuana cultivator that holds a license in good
32	standing with the office of cannabis regulation prior to July 1, 2019 shall be issued a marijuana
33	retailer license, marijuana cultivation license, marijuana processor license, and any other
34	applicable marijuana establishment license(s) for which it applies including but not limited to a
	LC000763 - Page 513 of 541
1	marijuana delivery license, in accordance with this chapter, provided the compassion center or
2	medical marijuana cultivator has been licensed or approved to engage in those corresponding
3	activities under their current compassion center or medical marijuana license.
4	(b) Any compassion center that holds a license in good standing with the office of
5	cannabis regulation prior to July 1, 2019 shall be issued corresponding marijuana
6	establishment(s) license in accordance with this chapter as provided in subsection (a) for each
7	location where they have been licensed or approved to engage in medical marijuana cultivation,
8	manufacturing, and/or dispensing of medical marijuana by the office of cannabis regulation prior
9	to January 1, 2019.
10	(c) Notwithstanding any other provision of this chapter, only a holder of a compassion
11	center license in good standing with the office of cannabis regulation prior to July 1, 2019, may
12	be issued or hold a marijuana cultivation license, and a marijuana processor license, and
13	marijuana retail license, inclusive, at the same time before to January 1, 2023.
14	(d) Notwithstanding any other provision of the general laws, a licensed compassion
15	center that also holds a license as a marijuana retailer, marijuana cultivator, or marijuana
16	processor shall be exempt from the requirements of § 21-28.6-3(5), and shall not be required to
17	register as a not for profit corporation under chapter 6 of title 7 of the general laws, provided they
18	maintain operation and licensure as a licensed marijuana retailer, marijuana cultivator, or
19	marijuana processor. The office of cannabis regulation may promulgate regulations or issue
20	guidance to facilitate the transition from a not for profit corporation to a for profit corporation or
21	other entity including but not limited to the requirement that the compassion center must update
22	and/or resubmit licensing and application documents which reflect this transfer.
23	21-28.11-15. Establishment of marijuana trust fund.
24	(a) There is created with the general fund a restricted receipt accounts collectively known
25	as the “marijuana trust fund”, otherwise known as the “adult use marijuana licensing” or “adult
26	use marijuana licensing program” accounts. Taxes collected pursuant to § 44-49.1 and fees
27	collected pursuant to 21-28.11 shall be deposited into this account. The state share of trust fund
28	revenue will be used to fund programs and activities related to program administration; revenue
29	collection and enforcement; substance use disorder prevention for adults and youth; education
30	and public awareness campaigns; treatment and recovery support services; public health
31	monitoring, research, data collection, and surveillance; law enforcement training and technology
32	improvements including grants to local law enforcement; and such other related uses that may be
33	deemed necessary by the office of management and budget. The restricted receipt account will be
34	housed within the budgets of the departments of business regulation, health, revenue and public
	LC000763 - Page 514 of 541
1	safety, and the executive office of health and human services. All amounts deposited into the
2	marijuana trust fund shall be exempt from the indirect cost recovery provisions of § 35-4-27. The
3	allocation of the marijuana trust fund shall be:
4	(1) Twenty-five percent (25%) of trust fund revenue to the departments of business
5	regulation, health, revenue and public safety, and the executive office of health and human
6	services, except that in fiscal year 2020 the office of management and budget may allocate up to
7	an additional three million eight hundred thousand dollars ($3,800,000) from trust fund revenues
8	to these agencies;
9	(2) Fifteen percent (15%) of trust fund revenue to cities and towns; and
10	(3) Sixty percent (60%) of trust fund revenue to the general fund.
11	(b) All revenue allocated to cities and towns under subsection (a)(2) shall be distributed
12	at least quarterly by the division of taxation and department of business regulation, credited and
13	paid by the state treasurer to the city or town based on the following allocation:
14	(1) One-quarter based in an equal distribution to each city or town in the state;
15	(2) One-quarter based on the share of total licensed marijuana cultivators, licensed
16	marijuana processors, and licensed marijuana retailers found in each city or town at the end of the
17	quarter that corresponds to the distribution, with licensed marijuana retailers assigned a weight
18	twice that of the other license types; and
19	(3) One-half based on the volume of sales of adult use marijuana products that occurred
20	in each city or town in the quarter of the distribution.
21	(c) The division of taxation and the department of business regulation shall jointly
22	promulgate regulations to effectuate the distribution under subsection (a)(2).
23	21-28.11-16. Transfer of revenue to the marijuana trust fund.
24	The department of business regulation shall transfer all revenue collected pursuant to this
25	chapter, including penalties or forfeitures, interest, costs of suit and fines, to the marijuana trust
26	fund established by § 21-28.11-15.
27	21-28.11-17. Severability.
28	If any provision of this chapter or its application thereof to any person or
29	circumstance is held invalid, such invalidity shall not affect other provisions or
30	applications of this chapter, which can be given effect without the invalid provision or
31	application, and to this end the provisions of this chapter are declared to be severable.
32	SECTION 8. Sections 31-27-2, 31-27-2.1 and 31-27-2.9 of the General Laws in Chapter
33	31-27 entitled "Motor Vehicle Offenses" are hereby amended to read as follows:
34	31-27-2. Driving under influence of liquor or drugs.
	LC000763 - Page 515 of 541
1	(a) Whoever drives or otherwise operates any vehicle in the state while under the
2	influence of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in
3	chapter 28 of title 21, or any combination of these, shall be guilty of a misdemeanor, except as
4	provided in subsection (d)(3), and shall be punished as provided in subsection (d).
5	(b)(1) Any person charged under subsection (a), whose blood alcohol concentration is
6	eight one-hundredths of one percent (.08%) or more by weight, as shown by a chemical analysis
7	of a blood, breath, or urine sample, shall be guilty of violating subsection (a). This provision shall
8	not preclude a conviction based on other admissible evidence, including the testimony of a drug
9	recognition expert or evaluator, certified pursuant to training approved by the Rhode Island
10	Department of Transportation Office on Highway Safety. Proof of guilt under this section may
11	also be based on evidence that the person charged was under the influence of intoxicating liquor,
12	drugs, toluene, or any controlled substance defined in chapter 28 of title 21, or any combination
13	of these, to a degree that rendered the person incapable of safely operating a vehicle. The fact that
14	any person charged with violating this section is, or has been, legally entitled to use alcohol or a
15	drug shall not constitute a defense against any charge of violating this section.
16	(2) Whoever drives, or otherwise operates, any vehicle in the state with a blood presence
17	of any scheduled controlled substance as defined within chapter 28 of title 21, as shown by
18	analysis of a blood or urine sample, shall be guilty of a misdemeanor and shall be punished as
19	provided in subsection (d).
20	(c) In any criminal prosecution for a violation of subsection (a), evidence as to the
21	amount of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of
22	title 21, or any combination of these, in the defendant's blood at the time alleged as shown by a
23	chemical analysis of the defendant's breath, blood, saliva or urine or other bodily substance, shall
24	be admissible and competent, provided that evidence is presented that the following conditions
25	have been complied with:
26	(1) The defendant has consented to the taking of the test upon which the analysis is made.
27	Evidence that the defendant had refused to submit to the test shall not be admissible unless the
28	defendant elects to testify.
29	(2) A true copy of the report of the test result was mailed within seventy-two (72) hours
30	of the taking of the test to the person submitting to a breath test.
31	(3) Any person submitting to a chemical test of blood, urine, saliva or other body fluids
32	shall have a true copy of the report of the test result mailed to him or her within thirty (30) days
33	following the taking of the test.
34	(4) The test was performed according to methods and with equipment approved by the
	LC000763 - Page 516 of 541
1	director of the department of health of the state of Rhode Island and by an authorized individual.
2	(5) Equipment used for the conduct of the tests by means of breath analysis had been
3	tested for accuracy within thirty (30) days preceding the test by personnel qualified as
4	hereinbefore provided, and breathalyzer operators shall be qualified and certified by the
5	department of health within three hundred sixty-five (365) days of the test.
6	(6) The person arrested and charged with operating a motor vehicle while under the
7	influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of
8	title 21 or any combination of these in violation of subsection (a), was afforded the opportunity to
9	have an additional chemical test. The officer arresting or so charging the person shall have
10	informed the person of this right and afforded him or her a reasonable opportunity to exercise this
11	right, and a notation to this effect is made in the official records of the case in the police
12	department. Refusal to permit an additional chemical test shall render incompetent and
13	inadmissible in evidence the original report.
14	(d)(1)(i) Every person found to have violated subsection (b)(1) shall be sentenced as
15	follows: for a first violation whose blood alcohol concentration is eight one-hundredths of one
16	percent (.08%), but less than one-tenth of one percent (.1%), by weight, or who has a blood
17	presence of any scheduled controlled substance as defined in subsection (b)(2), shall be subject to
18	a fine of not less than one hundred dollars ($100), nor more than three hundred dollars ($300);
19	shall be required to perform ten (10) to sixty (60) hours of public community restitution, and/or
20	shall be imprisoned for up to one year. The sentence may be served in any unit of the adult
21	correctional institutions in the discretion of the sentencing judge and/or shall be required to attend
22	a special course on driving while intoxicated or under the influence of a controlled substance;
23	provided, however, that the court may permit a servicemember or veteran to complete any court-
24	approved counseling program administered or approved by the Veterans' Administration, and his
25	or her driver's license shall be suspended for thirty (30) days up to one hundred eighty (180) days.
26	The sentencing judge or magistrate may prohibit that person from operating a motor vehicle that
27	is not equipped with an ignition interlock system as provided in § 31-27-2.8.
28	(ii) Every person convicted of a first violation whose blood alcohol concentration is one-
29	tenth of one percent (.1%) by weight or above, but less than fifteen hundredths of one percent
30	(.15%), or whose blood alcohol concentration is unknown, shall be subject to a fine of not less
31	than one hundred ($100) dollars, nor more than four hundred dollars ($400), and shall be required
32	to perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned
33	for up to one year. The sentence may be served in any unit of the adult correctional institutions in
34	the discretion of the sentencing judge. The person's driving license shall be suspended for a
	LC000763 - Page 517 of 541
1	period of three (3) months to twelve (12) months. The sentencing judge shall require attendance
2	at a special course on driving while intoxicated or under the influence of a controlled substance
3	and/or alcoholic or drug treatment for the individual; provided, however, that the court may
4	permit a servicemember or veteran to complete any court-approved counseling program
5	administered or approved by the Veterans' Administration. The sentencing judge or magistrate
6	may prohibit that person from operating a motor vehicle that is not equipped with an ignition
7	interlock system as provided in § 31-27-2.8.
8	(iii) Every person convicted of a first offense whose blood alcohol concentration is
9	fifteen hundredths of one percent (.15%) or above, or who is under the influence of a drug,
10	toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to a fine of
11	five hundred dollars ($500) and shall be required to perform twenty (20) to sixty (60) hours of
12	public community restitution and/or shall be imprisoned for up to one year. The sentence may be
13	served in any unit of the adult correctional institutions in the discretion of the sentencing judge.
14	The person's driving license shall be suspended for a period of three (3) months to eighteen (18)
15	months. The sentencing judge shall require attendance at a special course on driving while
16	intoxicated or under the influence of a controlled substance and/or alcohol or drug treatment for
17	the individual; provided, however, that the court may permit a servicemember or veteran to
18	complete any court-approved counseling program administered or approved by the Veterans'
19	Administration. The sentencing judge or magistrate shall prohibit that person from operating a
20	motor vehicle that is not equipped with an ignition interlock system as provided in § 31-27-2.8.
21	(2)(i) Every person convicted of a second violation within a five-year (5) period with a
22	blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, but less than
23	fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is unknown, or
24	who has a blood presence of any controlled substance as defined in subsection (b)(2), and every
25	person convicted of a second violation within a five-year (5) period, regardless of whether the
26	prior violation and subsequent conviction was a violation and subsequent conviction under this
27	statute or under the driving under the influence of liquor or drugs statute of any other state, shall
28	be subject to a mandatory fine of four hundred dollars ($400). The person's driving license shall
29	be suspended for a period of one year to two (2) years, and the individual shall be sentenced to
30	not less than ten (10) days, nor more than one year, in jail. The sentence may be served in any
31	unit of the adult correctional institutions in the discretion of the sentencing judge; however, not
32	less than forty-eight (48) hours of imprisonment shall be served consecutively. The sentencing
33	judge shall require alcohol or drug treatment for the individual; provided, however, that the court
34	may permit a servicemember or veteran to complete any court-approved counseling program
	LC000763 - Page 518 of 541
1	administered or approved by the Veterans' Administration and shall prohibit that person from
2	operating a motor vehicle that is not equipped with an ignition interlock system as provided in §
3	31-27-2.8.
4	(ii) Every person convicted of a second violation within a five-year (5) period whose
5	blood alcohol concentration is fifteen hundredths of one percent (.15%) or above, by weight as
6	shown by a chemical analysis of a blood, breath, or urine sample, or who is under the influence of
7	a drug, toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to
8	mandatory imprisonment of not less than six (6) months, nor more than one year; a mandatory
9	fine of not less than one thousand dollars ($1,000); and a mandatory license suspension for a
10	period of two (2) years from the date of completion of the sentence imposed under this
11	subsection. The sentencing judge shall require alcohol or drug treatment for the individual;
12	provided, however, that the court may permit a servicemember or veteran to complete any court
13	approved counseling program administered or approved by the Veterans' Administration. The
14	sentencing judge or magistrate shall prohibit that person from operating a motor vehicle that is
15	not equipped with an ignition interlock system as provided in § 31-27-2.8
16	(3)(i) Every person convicted of a third or subsequent violation within a five-year (5)
17	period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or
18	above, but less than fifteen hundredths of one percent (.15%), or whose blood alcohol
19	concentration is unknown or who has a blood presence of any scheduled controlled substance as
20	defined in subsection (b)(2), regardless of whether any prior violation and subsequent conviction
21	was a violation and subsequent conviction under this statute or under the driving under the
22	influence of liquor or drugs statute of any other state, shall be guilty of a felony and be subject to
23	a mandatory fine of four hundred ($400) dollars. The person's driving license shall be suspended
24	for a period of two (2) years to three (3) years, and the individual shall be sentenced to not less
25	than one year and not more than three (3) years in jail. The sentence may be served in any unit of
26	the adult correctional institutions in the discretion of the sentencing judge; however, not less than
27	forty-eight (48) hours of imprisonment shall be served consecutively. The sentencing judge shall
28	require alcohol or drug treatment for the individual; provided, however, that the court may permit
29	a servicemember or veteran to complete any court-approved counseling program administered or
30	approved by the Veterans' Administration, and shall prohibit that person from operating a motor
31	vehicle that is not equipped with an ignition interlock system as provided in § 31-27-2.8.
32	(ii) Every person convicted of a third or subsequent violation within a five-year (5) period
33	whose blood alcohol concentration is fifteen hundredths of one percent (.15%) above by weight
34	as shown by a chemical analysis of a blood, breath, or urine sample, or who is under the influence
	LC000763 - Page 519 of 541
1	of a drug, toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to
2	mandatory imprisonment of not less than three (3) years, nor more than five (5) years; a
3	mandatory fine of not less than one thousand dollars ($1,000), nor more than five thousand
4	dollars ($5,000); and a mandatory license suspension for a period of three (3) years from the date
5	of completion of the sentence imposed under this subsection. The sentencing judge shall require
6	alcohol or drug treatment for the individual. The sentencing judge or magistrate shall prohibit that
7	person from operating a motor vehicle that is not equipped with an ignition interlock system as
8	provided in § 31-27-2.8.
9	(iii) In addition to the foregoing penalties, every person convicted of a third or
10	subsequent violation within a five-year (5) period, regardless of whether any prior violation and
11	subsequent conviction was a violation and subsequent conviction under this statute or under the
12	driving under the influence of liquor or drugs statute of any other state, shall be subject, in the
13	discretion of the sentencing judge, to having the vehicle owned and operated by the violator
14	seized and sold by the state of Rhode Island, with all funds obtained by the sale to be transferred
15	to the general fund.
16	(4) Whoever drives or otherwise operates any vehicle in the state while under the
17	influence of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in
18	chapter 28 of title 21, or any combination of these, when his or her license to operate is
19	suspended, revoked, or cancelled for operating under the influence of a narcotic drug or
20	intoxicating liquor, shall be guilty of a felony punishable by imprisonment for not more than three
21	(3) years and by a fine of not more than three thousand dollars ($3,000). The court shall require
22	alcohol and/or drug treatment for the individual; provided, the penalties provided for in this
23	subsection (d)(4) shall not apply to an individual who has surrendered his or her license and
24	served the court-ordered period of suspension, but who, for any reason, has not had his or her
25	license reinstated after the period of suspension, revocation, or suspension has expired; provided,
26	further, the individual shall be subject to the provisions of subdivision (d)(2)(i), (d)(2)(ii),
27	(d)(3)(i), (d)(3)(ii), or (d)(3)(iii) regarding subsequent offenses, and any other applicable
28	provision of this section.
29	(5)(i) For purposes of determining the period of license suspension, a prior violation shall
30	constitute any charge brought and sustained under the provisions of this section or § 31-27-2.1.
31	(ii) Any person over the age of eighteen (18) who is convicted under this section for
32	operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of
33	these, while a child under the age of thirteen (13) years was present as a passenger in the motor
34	vehicle when the offense was committed shall be subject to immediate license suspension
	LC000763 - Page 520 of 541
1	pending prosecution. Any person convicted of violating this section shall be guilty of a
2	misdemeanor for a first offense and may be sentenced to a term of imprisonment of not more than
3	one year and a fine not to exceed one thousand dollars ($1,000). Any person convicted of a
4	second or subsequent offense shall be guilty of a felony offense and may be sentenced to a term
5	of imprisonment of not more than five (5) years and a fine not to exceed five thousand dollars
6	($5,000). The sentencing judge shall also order a license suspension of up to two (2) years,
7	require attendance at a special course on driving while intoxicated or under the influence of a
8	controlled substance, and alcohol or drug education and/or treatment. The individual may also be
9	required to pay a highway assessment fee of no more than five hundred dollars ($500) and the
10	assessment shall be deposited in the general fund.
11	(6)(i) Any person convicted of a violation under this section shall pay a highway
12	assessment fine of five hundred dollars ($500) that shall be deposited into the general fund. The
13	assessment provided for by this subsection shall be collected from a violator before any other
14	fines authorized by this section.
15	(ii) Any person convicted of a violation under this section shall be assessed a fee of
16	eighty-six dollars ($86).
17	(7)(i) If the person convicted of violating this section is under the age of eighteen (18)
18	years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of
19	public community restitution and the juvenile's driving license shall be suspended for a period of
20	six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing
21	judge shall also require attendance at a special course on driving while intoxicated or under the
22	influence of a controlled substance and alcohol or drug education and/or treatment for the
23	juvenile. The juvenile may also be required to pay a highway assessment fine of no more than
24	five hundred dollars ($500) and the assessment imposed shall be deposited into the general fund.
25	(ii) If the person convicted of violating this section is under the age of eighteen (18)
26	years, for a second or subsequent violation regardless of whether any prior violation and
27	subsequent conviction was a violation and subsequent under this statute or under the driving
28	under the influence of liquor or drugs statute of any other state, he or she shall be subject to a
29	mandatory suspension of his or her driving license until such time as he or she is twenty-one (21)
30	years of age and may, in the discretion of the sentencing judge, also be sentenced to the Rhode
31	Island training school for a period of not more than one year and/or a fine of not more than five
32	hundred dollars ($500).
33	(8) Any person convicted of a violation under this section may undergo a clinical
34	assessment at the community college of Rhode Island's center for workforce and community
	LC000763 - Page 521 of 541
1	education. Should this clinical assessment determine problems of alcohol, drug abuse, or
2	psychological problems associated with alcoholic or drug abuse, this person shall be referred to
3	an appropriate facility, licensed or approved by the department of behavioral healthcare,
4	developmental disabilities and hospitals, for treatment placement, case management, and
5	monitoring. In the case of a servicemember or veteran, the court may order that the person be
6	evaluated through the Veterans' Administration. Should the clinical assessment determine
7	problems of alcohol, drug abuse, or psychological problems associated with alcohol or drug
8	abuse, the person may have their treatment, case management, and monitoring administered or
9	approved by the Veterans' Administration.
10	(e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol
11	per one hundred (100) cubic centimeters of blood.
12	(f)(1) There is established an alcohol and drug safety unit within the division of motor
13	vehicles to administer an alcohol safety action program. The program shall provide for placement
14	and follow-up for persons who are required to pay the highway safety assessment. The alcohol
15	and drug safety action program will be administered in conjunction with alcohol and drug
16	programs licensed by the department of behavioral healthcare, developmental disabilities and
17	hospitals.
18	(2) Persons convicted under the provisions of this chapter shall be required to attend a
19	special course on driving while intoxicated or under the influence of a controlled substance,
20	and/or participate in an alcohol or drug treatment program, which course and programs must meet
21	the standards established by the Rhode Island department of behavioral healthcare, developmental
22	disabilities and hospitals; provided, however, that the court may permit a servicemember or
23	veteran to complete any court-approved counseling program administered or approved by the
24	Veterans' Administration. The course shall take into consideration any language barrier that may
25	exist as to any person ordered to attend, and shall provide for instruction reasonably calculated to
26	communicate the purposes of the course in accordance with the requirements of the subsection.
27	Any costs reasonably incurred in connection with the provision of this accommodation shall be
28	borne by the person being retrained. A copy of any violation under this section shall be forwarded
29	by the court to the alcohol and drug safety unit. In the event that persons convicted under the
30	provisions of this chapter fail to attend and complete the above course or treatment program, as
31	ordered by the judge, then the person may be brought before the court, and after a hearing as to
32	why the order of the court was not followed, may be sentenced to jail for a period not exceeding
33	one year.
34	(3) The alcohol and drug safety action program within the division of motor vehicles
	LC000763 - Page 522 of 541
1	shall be funded by general revenue appropriations.
2	(g) The director of the health department of the state of Rhode Island is empowered to
3	make and file with the secretary of state regulations that prescribe the techniques and methods of
4	chemical analysis of the person's body fluids or breath and the qualifications and certification of
5	individuals authorized to administer this testing and analysis.
6	(h) Jurisdiction for misdemeanor violations of this section shall be with the district court
7	for persons eighteen (18) years of age or older and to the family court for persons under the age
8	of eighteen (18) years. The courts shall have full authority to impose any sentence authorized and
9	to order the suspension of any license for violations of this section. All trials in the district court
10	and family court of violations of the section shall be scheduled within thirty (30) days of the
11	arraignment date. No continuance or postponement shall be granted except for good cause shown.
12	Any continuances that are necessary shall be granted for the shortest practicable time. Trials in
13	superior court are not required to be scheduled within thirty (30) days of the arraignment date.
14	(i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on
15	driving while intoxicated or under the influence of a controlled substance, public community
16	restitution, or jail provided for under this section can be suspended.
17	(j) An order to attend a special course on driving while intoxicated that shall be
18	administered in cooperation with a college or university accredited by the state, shall include a
19	provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars
20	($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into
21	the general fund.
22	(k) For the purposes of this section, any test of a sample of blood, breath, or urine for the
23	presence of alcohol that relies in whole or in part upon the principle of infrared light absorption is
24	considered a chemical test.
25	(l) If any provision of this section, or the application of any provision, shall for any
26	reason be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of
27	the section, but shall be confined in this effect to the provision or application directly involved in
28	the controversy giving rise to the judgment.
29	(m) For the purposes of this section, "servicemember" means a person who is presently
30	serving in the armed forces of the United States, including the Coast Guard, a reserve component
31	thereof, or the National Guard. "Veteran" means a person who has served in the armed forces,
32	including the Coast Guard of the United States, a reserve component thereof, or the National
33	Guard, and has been discharged under other than dishonorable conditions.
34	31-27-2.1. Refusal to submit to chemical test.
	LC000763 - Page 523 of 541
1	(a) Any person who operates a motor vehicle within this state shall be deemed to have
2	given his or her consent to chemical tests of his or her breath, blood, saliva and/or urine for the
3	purpose of determining the chemical content of his or her body fluids or breath. No more than
4	two (2) complete tests, one for the presence of intoxicating liquor and one for the presence of
5	toluene or any controlled substance, as defined in § 21-28-1.02(8), shall be administered at the
6	direction of a law enforcement officer having reasonable grounds to believe the person to have
7	been driving a motor vehicle within this state while under the influence of intoxicating liquor,
8	toluene, or any controlled substance, as defined in chapter 28 of title 21, or any combination of
9	these. The director of the department of health is empowered to make and file, with the secretary
10	of state, regulations that prescribe the techniques and methods of chemical analysis of the
11	person's body fluids or breath and the qualifications and certification of individuals authorized to
12	administer the testing and analysis.
13	(b) If a person, for religious or medical reasons, cannot be subjected to blood tests, the
14	person may file an affidavit with the division of motor vehicles stating the reasons why he or she
15	cannot be required to take blood tests and a notation to this effect shall be made on his or her
16	license. If that person is asked to submit to chemical tests as provided under this chapter, the
17	person shall only be required to submit to chemical tests of his or her breath, saliva or urine.
18	When a person is requested to submit to blood tests, only a physician or registered nurse, or a
19	medical technician certified under regulations promulgated by the director of the department of
20	health, may withdraw blood for the purpose of determining the alcoholic content in it. This
21	limitation shall not apply to the taking of breath, saliva or urine specimens. The person tested
22	shall be permitted to have a physician of his or her own choosing, and at his or her own expense,
23	administer chemical tests of his or her breath, saliva blood, and/or urine in addition to the tests
24	administered at the direction of a law enforcement officer. If a person, having been placed under
25	arrest, refuses upon the request of a law enforcement officer to submit to the tests, as provided in
26	§ 31-27-2, none shall be given, but a judge or magistrate of the traffic tribunal or district court
27	judge or magistrate, upon receipt of a report of a law enforcement officer: that he or she had
28	reasonable grounds to believe the arrested person had been driving a motor vehicle within this
29	state under the influence of intoxicating liquor, toluene, or any controlled substance, as defined in
30	chapter 28 of title 21, or any combination of these; that the person had been informed of his or her
31	rights in accordance with § 31-27-3; that the person had been informed of the penalties incurred
32	as a result of noncompliance with this section; and that the person had refused to submit to the
33	tests upon the request of a law enforcement officer; shall promptly order that the person's
34	operator's license or privilege to operate a motor vehicle in this state be immediately suspended,
	LC000763 - Page 524 of 541
1	however, said suspension shall be subject to the hardship provisions enumerated in § 31-27-2.8.
2	A traffic tribunal judge or magistrate, or a district court judge or magistrate, pursuant to the terms
3	of subsection (c), shall order as follows:
4	(1) Impose, for the first violation, a fine in the amount of two hundred dollars ($200) to
5	five hundred dollars ($500) and shall order the person to perform ten (10) to sixty (60) hours of
6	public community restitution. The person's driving license in this state shall be suspended for a
7	period of six (6) months to one year. The traffic tribunal judge or magistrate shall require
8	attendance at a special course on driving while intoxicated or under the influence of a controlled
9	substance and/or alcohol or drug treatment for the individual. The traffic tribunal judge or
10	magistrate may prohibit that person from operating a motor vehicle that is not equipped with an
11	ignition interlock system as provided in § 31-27-2.8.
12	(2) Every person convicted of a second violation within a five-year (5) period, except
13	with respect to cases of refusal to submit to a blood test, shall be guilty of a misdemeanor; shall
14	be imprisoned for not more than six (6) months; shall pay a fine in the amount of six hundred
15	dollars ($600) to one thousand dollars ($1,000); perform sixty (60) to one hundred (100) hours of
16	public community restitution; and the person's driving license in this state shall be suspended for
17	a period of one year to two (2) years. The judge or magistrate shall require alcohol and/or drug
18	treatment for the individual. The sentencing judge or magistrate shall prohibit that person from
19	operating a motor vehicle that is not equipped with an ignition interlock system as provided in §
20	31-27-2.8.
21	(3) Every person convicted for a third or subsequent violation within a five-year (5)
22	period, except with respect to cases of refusal to submit to a blood test, shall be guilty of a
23	misdemeanor; and shall be imprisoned for not more than one year; fined eight hundred dollars
24	($800) to one thousand dollars ($1,000); shall perform not less than one hundred (100) hours of
25	public community restitution; and the person's operator's license in this state shall be suspended
26	for a period of two (2) years to five (5) years. The sentencing judge or magistrate shall prohibit
27	that person from operating a motor vehicle that is not equipped with an ignition interlock system
28	as provided in § 31-27-2.8. The judge or magistrate shall require alcohol or drug treatment for
29	the individual. Provided, that prior to the reinstatement of a license to a person charged with a
30	third or subsequent violation within a three-year (3) period, a hearing shall be held before a judge
31	or magistrate. At the hearing, the judge or magistrate shall review the person's driving record, his
32	or her employment history, family background, and any other pertinent factors that would
33	indicate that the person has demonstrated behavior that warrants the reinstatement of his or her
34	license.
	LC000763 - Page 525 of 541
1	(4) For a second violation within a five-year (5) period with respect to a case of a refusal
2	to submit to a blood test, a fine in the amount of six hundred dollars ($600) to one thousand
3	dollars ($1,000); the person shall perform sixty (60) to one hundred (100) hours of public
4	community restitution; and the person's driving license in this state shall be suspended for a
5	period of two (2) years. The judicial officer shall require alcohol and/or drug treatment for the
6	individual. The sentencing judicial officer shall prohibit that person from operating a motor
7	vehicle that is not equipped with an ignition interlock system as provided in § 31-27-2.8. Such a
8	violation with respect to refusal to submit to a chemical blood test shall be a civil offense.
9	(5) For a third or subsequent violation within a five-year (5) period with respect to a case
10	of a refusal to submit to a blood test, a fine in the amount of eight hundred dollars ($800) to one
11	thousand dollars ($1,000); the person shall perform not less than one hundred (100) hours of
12	public community restitution; and the person's driving license in this state shall be suspended for
13	a period of two (2) to five (5) years. The sentencing judicial officer shall prohibit that person from
14	operating a motor vehicle that is not equipped with an ignition interlock system as provided in §
15	31-27-2.8. The judicial officer shall require alcohol and/or drug treatment for the individual. Such
16	a violation with respect to refusal to submit to a chemical test of blood shall be a civil offense.
17	Provided, that prior to the reinstatement of a license to a person charged with a third or
18	subsequent violation within a three-year (3) period, a hearing shall be held before a judicial
19	officer. At the hearing, the judicial officer shall review the person's driving record, his or her
20	employment history, family background, and any other pertinent factors that would indicate that
21	the person has demonstrated behavior that warrants the reinstatement of their license.
22	(6) For purposes of determining the period of license suspension, a prior violation shall
23	constitute any charge brought and sustained under the provisions of this section or § 31-27-2.
24	(7) In addition to any other fines, a highway safety assessment of five hundred dollars
25	($500) shall be paid by any person found in violation of this section, the assessment to be
26	deposited into the general fund. The assessment provided for by this subsection shall be collected
27	from a violator before any other fines authorized by this section.
28	(8) In addition to any other fines and highway safety assessments, a two-hundred-dollar
29	($200) assessment shall be paid by any person found in violation of this section to support the
30	department of health's chemical testing programs outlined in § 31-27-2(4), that shall be deposited
31	as general revenues, not restricted receipts.
32	(9) No fines, suspensions, assessments, alcohol or drug treatment programs, course on
33	driving while intoxicated or under the influence of a controlled substance, or public community
34	restitution provided for under this section can be suspended.
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1	the traffic tribunal or district court shall immediately notify the person involved in writing, and
2	upon his or her request, within fifteen (15) days, shall afford the person an opportunity for a
3	hearing as early as practical upon receipt of a request in writing. Upon a hearing, the judge may
4	administer oaths and may issue subpoenas for the attendance of witnesses and the production of
5	relevant books and papers. If the judge finds after the hearing that:
6	(1) The law enforcement officer making the sworn report had reasonable grounds to
7	believe that the arrested person had been driving a motor vehicle within this state while under the
8	influence of intoxicating liquor, toluene, or any controlled substance, as defined in chapter 28 of
9	title 21, or any combination of these;
10	(2) The person, while under arrest, refused to submit to the tests upon the request of a law
11	enforcement officer;
12	(3) The person had been informed of his or her rights in accordance with § 31-27-3; and
13	(4) The person had been informed of the penalties incurred as a result of noncompliance
14	with this section, the judge shall sustain the violation. The judge shall then impose the penalties
15	set forth in subsection (b). Action by the judge must be taken within seven (7) days after the
16	hearing or it shall be presumed that the judge has refused to issue his or her order of suspension.
17	(d) For the purposes of this section, any test of a sample of blood, breath, or urine for the
18	presence of alcohol that relies, in whole or in part, upon the principle of infrared light absorption
19	is considered a chemical test.
20	(e) If any provision of this section, or the application of any provision, shall, for any
21	reason, be judged invalid, the judgment shall not affect, impair, or invalidate the remainder of the
22	section, but shall be confined in this effect to the provisions or application directly involved in the
23	controversy giving rise to the judgment.
24	31-27-2.9. Administration of chemical test.
25	(a) Notwithstanding any provision of § 31-27-2.1, if an individual refuses to consent to a
26	chemical test as provided in § 31-27-2.1, and a peace officer, as defined in § 12-7-21, has
27	probable cause to believe that the individual has violated one or more of the following sections:
28	31-27-1, 31-27-1.1, 31-27-2.2, or 31-27-2.6 and that the individual was operating a motor vehicle
29	under the influence of any intoxicating liquor, toluene or any controlled substance as defined in
30	chapter 21-28, or any combination thereof, a chemical test may be administered without the
31	consent of that individual provided that the peace officer first obtains a search warrant authorizing
32	administration of the chemical test. The chemical test shall determine the amount of the alcohol
33	or the presence of a controlled substance in that person's blood, saliva or breath.
34	(b) The chemical test shall be administered in accordance with the methods approved by
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1	the director of the department of health as provided for in subdivision 31-27-2(c)(4). The
2	individual shall be afforded the opportunity to have an additional chemical test as established in
3	subdivision 31-27-2(c)(6).
4	(c) Notwithstanding any other law to the contrary, including, but not limited to, chapter
5	5-37.3, any health care provider who, as authorized by the search warrant in subsection (a):
6	(i) Takes a blood, saliva or breath sample from an individual; or
7	(ii) Performs the chemical test; or
8	(iii) Provides information to a peace officer pursuant to subsection (a) above and who
9	uses reasonable care and accepted medical practices shall not be liable in any civil or criminal
10	proceeding arising from the taking of the sample, from the performance of the chemical test or
11	from the disclosure or release of the test results.
12	(d) The results of a chemical test performed pursuant to this section shall be admissible as
13	competent evidence in any civil or criminal prosecution provided that evidence is presented in
14	compliance with the conditions set forth in subdivisions 31-27-2(c)(3), 31-27-2(c)(4) and 31-27-
15	2(c)(6).
16	(e) All chemical tests administered pursuant to this section shall be audio and video
17	recorded by the law enforcement agency which applied for and was granted the search warrant
18	authorizing the administration of the chemical test.
19	SECTION 9. Sections 44-49-1, 44-49-2, 44-49-4, 44-49-5, 44-49-7, 44-49-8, 44-49-9,
20	44-49-9.1, 44-49-10, 44-49-11 and 44-49-12 of the General Laws in Chapter 44-49 entitled
21	"Taxation of Marijuana and Controlled Substances" are hereby amended to read as follows:
22	44-49-1. Short title.
23	This chapter shall be known as the "Marijuana and Controlled Substances Taxation Act".
24	44-49-2. Definitions.
25	(a) "Controlled substance" means any drug or substance, whether real or counterfeit, as
26	defined in § 21-28-1.02(8), that is held, possessed, transported, transferred, sold, or offered to be
27	sold in violation of Rhode Island laws. "Controlled substance" does not include marijuana.
28	(b) "Dealer" means a person who in violation of Rhode Island law manufactures,
29	produces, ships, transports, or imports into Rhode Island or in any manner acquires or possesses
30	more than forty-two and one half (42.5) grams of marijuana, or seven (7) or more grams of any
31	controlled substance, or ten (10) or more dosage units of any controlled substance which is not
32	sold by weight. A quantity of marijuana or a controlled substance is measured by the weight of
33	the substance whether pure or impure or dilute, or by dosage units when the substance is not sold
34	by weight, in the dealer's possession. A quantity of a controlled substance is dilute if it consists of
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1	a detectable quantity of pure controlled substance and any excipients or fillers.
2	(c) "Marijuana" means any marijuana, whether real or counterfeit, as defined in § 21-28-
3	1.02(30), that is held, possessed, transported, transferred, sold, or offered to be sold in violation of
4	Rhode Island laws.
5	44-49-4. Rules.
6	The tax administrator may adopt rules necessary to enforce this chapter. The tax
7	administrator shall adopt a uniform system of providing, affixing, and displaying official stamps,
8	official labels, or other official indicia for marijuana and controlled substances on which a tax is
9	imposed.
10	44-49-5. Tax payment required for possession.
11	No dealer may possess any marijuana or controlled substance upon which a tax is
12	imposed under this chapter unless the tax has been paid on the marijuana or a controlled
13	substance as evidenced by a stamp or other official indicia.
14	44-49-7. Pharmaceuticals.
15	Nothing in this chapter shall require persons lawfully in possession of marijuana or a
16	controlled substance to pay the tax required under this chapter.
17	44-49-8. Measurement.
18	For the purpose of calculating this tax, a quantity of marijuana or a controlled substance
19	is measured by the weight of the substance whether pure or impure or dilute, or by dosage units
20	when the substance is not sold by weight, in the dealer's possession. A quantity of a controlled
21	substance is dilute if it consists of a detectable quantity of pure controlled substance and any
22	excipients or fillers.
23	44-49-9. Tax rate.
24	A tax is imposed on marijuana and controlled substances as defined in § 44-49-2 at the
25	following rates:
26	(1) On each gram of marijuana, or each portion of a gram, three dollars and fifty cents
27	($3.50); and
28	(2)(1) On each gram of controlled substance, or portion of a gram, two hundred dollars
29	($200); or
30	(3)(2) On each ten (10) dosage units of a controlled substance that is not sold by weight,
31	or portion of the dosage units, four hundred dollars ($400).
32	44-49-9.1. Imposition of tax, interest and liens.
33	(a) Any law enforcement agency seizing marijuana and/or controlled substances as
34	defined in § 44-49-2 in the quantities set forth in that section shall report to the division of
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1	taxation no later than the twenty-fifth (25th) of each month, the amount of all marijuana and
2	controlled substances seized during the previous month and the name and address of each dealer
3	from whom the marijuana and controlled substances were seized.
4	(b) The tax administrator shall assess the dealer for any tax due at the rate provided by §
5	44-49-9. The tax shall be payable within fifteen (15) days after its assessment and, if not paid
6	when due, shall bear interest from the date of its assessment at the rate provided in § 44-1-7 until
7	paid.
8	(c) The tax administrator may file a notice of tax lien upon the real property of the dealer
9	located in this state immediately upon mailing a notice of assessment to the dealer at the address
10	listed in the report of the law enforcement agency. The tax administrator may discharge the lien
11	imposed upon the filing of a bond satisfactory to the tax administrator in an amount equal to the
12	tax, interest and penalty imposed under this chapter.
13	44-49-10. Penalties -- Criminal provisions.
14	(a) Penalties. Any dealer violating this chapter is subject to a penalty of one hundred
15	percent (100%) of the tax in addition to the tax imposed by § 44-49-9. The penalty will be
16	collected as part of the tax.
17	(b) Criminal penalty; sale without affixed stamps. In addition to the tax penalty imposed,
18	a dealer distributing or possessing marijuana or controlled substances without affixing the
19	appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be
20	sentenced to imprisonment for not more than five (5) years, or to payment of a fine of not more
21	than ten thousand dollars ($10,000), or both.
22	(c) Statute of limitations. An indictment may be found and filed, or a complaint filed,
23	upon any criminal offense specified in this section, in the proper court within six (6) years after
24	the commission of this offense.
25	44-49-11. Stamp price.
26	Official stamps, labels, or other indicia to be affixed to all marijuana or controlled
27	substances shall be purchased from the tax administrator. The purchaser shall pay one hundred
28	percent (100%) of face value for each stamp, label, or other indicia at the time of the purchase.
29	44-49-12. Payment due.
30	(a) Stamps affixed. When a dealer purchases, acquires, transports, or imports into this
31	state marijuana or controlled substances on which a tax is imposed by § 44-49-9, and if the
32	indicia evidencing the payment of the tax have not already been affixed, the dealer shall have
33	them permanently affixed on the marijuana or controlled substance immediately after receiving
34	the substance. Each stamp or other official indicia may be used only once.
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1	(b) Payable on possession. Taxes imposed upon marijuana or controlled substances by
2	this chapter are due and payable immediately upon acquisition or possession in this state by a
3	dealer.
4	SECTION 10. Title 44 of the General Laws entitled "TAXATION" is hereby amended by
5	adding thereto the following chapter:
6	44-49.1-1. Short title.
7	This chapter shall be known as the "Cannabis Taxation Act.”
8	44-49.1-2. Definitions.
9	As used in this chapter, unless the context clearly indicates otherwise, the following
10	words and phrases shall have the following meanings:
11	(1) "Administrator" means the tax administrator.
12	(2) “Department of business regulation” means the office of cannabis regulation with the
13	department of business regulation or its successor agency.
14	(3) “Cannabis” means all parts of the plant of the genus marijuana, also known as
15	marijuana sativa L, whether growing or not; the seeds thereof; the resin extracted from any
16	part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation
17	of the plant, its seeds, or resin regardless of cannabinoid content or cannabinoid potency
18	including “marijuana”, and “industrial hemp” or “industrial hemp products” which satisfy the
19	requirements of this chapter.
20	(4) “Cannabidiol” or “CBD” means cannabidiol (CBD) derived from a hemp plant as
21	defined in § 2-26-3(7), not including products derived from exempt cannabis plant material as
22	defined in C.F.R. § 1308.35.
23	(5) “Licensee” means any licensed cultivator, licensed processor, and licensed retailer, as
24	defined below.
25	(6) “Licensed cultivator” means a person who has been licensed by the department of
26	business regulation to cultivate marijuana pursuant to chapters 28.6 or 28.11 of title 21.
27	(7) “Licensed processor” means a person who has been licensed by the department of
28	business regulation to process marijuana pursuant to chapters 28.6 or 28.11 of title 21.
29	(8) “Licensed retailer” means a compassion center who has been licensed by the
30	department of business regulation pursuant to chapter 28.6 of title 21, or a a marijuana retailer
31	who has been licensed by the department of business regulation pursuant to chapter 28.11 of title
32	21.
33	(9) “Licensed marijuana cultivator” means a person who has been licensed to cultivate
34	marijuana by the department of business regulation pursuant to chapter 28.11 of title 21.
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1	(10) “Licensed marijuana processor” means a person who has been licensed to process
2	marijuana by the by the department of business regulation pursuant to chapter 28.11 of title 21.
3	(11) “Licensed marijuana retailer” means a person who has been licensed to sell
4	marijuana by the department of business regulation pursuant to chapter 28.11 of title 21.
5	(12) “Marijuana” has the meaning given that term in § 21-28-1.02(30).
6	(13) “Marijuana flower” means the flower or bud from a marijuana plant.
7	(14) “Marijuana products” means any form of marijuana, including concentrated
8	marijuana and products that are comprised of marijuana and other ingredients that are intended
9	for use or consumption, such as, but not limited to, extracts, infusions, edible products, ointments,
10	and tinctures, as further defined in regulations promulgated by the department of business
11	regulation.
12	(15) “Marijuana trim” means any part of the marijuana plant other than marijuana flower.
13	(16) "Hemp products" or “industrial hemp products” means all products made from the
14	plants, including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, hemp-
15	derived consumable CBD products, paint, paper, construction materials, plastics, seed, seed meal,
16	seed oil, and certified for cultivation., which satisfy the requirements of chapter 26 of title 2.
17	(17) “Hemp-derived consumable CBD product” means any product meant for ingestion,
18	including but not limited to concentrates, extracts, and cannabis-infused products, which contains
19	cannabidiol (CBD) derived from a hemp plant as defined in § 2-26-3(7), not including products
20	derived from exempt cannabis plant material as defined in C.F.R. § 1308.35.
21	(18) “Licensed CBD distributor” means a person licensed to distribute hemp-derived
22	consumable CBD products pursuant to chapter 26 of title 2.
23	(19) “Licensed CBD retailer” means a person licensed to sell hemp-derived consumable
24	CBD products pursuant to chapter 26 of title 2.
25	(20) "Person" means any individual, including an employee or agent, firm, fiduciary,
26	partnership, corporation, trust, or association, however formed.
27	(21) “Transfer” means the change of possession of marijuana between the operations of a
28	licensed cultivator and either a licensed processor or licensed retailer, even if any of those
29	licenses are held by the same person. Transfers do not have to include compensation and do not
30	have to involve the physical relocation of marijuana to be taxable under this chapter.
31	44-49.1-3. Cultivator, retailer licenses required.
32	Each person engaging in the business of cultivating marijuana, selling marijuana
33	products, or selling hemp-derived consumable CBD products in this state, shall secure a license
34	from the department of business regulation before engaging in that business, or continuing to
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1	engage in it. A separate application and license is required for each place of business operated by
2	the retailer. A licensee shall notify the department of business regulation and tax administrator
3	simultaneously within thirty (30) days in the event that it changes its principal place of business.
4	A separate license is required for each type of business if the applicant is engaged in more than
5	one of the activities required to be licensed by this section.
6	44-49.1-4. Marijuana cultivator excise tax.
7	(a) An excise tax is imposed on all marijuana cultivated by licensed cultivators pursuant
8	to chapter 28.6 of title 21 and chapter 28.11 of title 21. The rate of taxation is as follows:
9	(1) Three dollars ($3.00) for every dried ounce of marijuana trim and a proportionate tax
10	at the like rate on all fractional parts of an ounce thereof, and
11	(2) Ten dollars ($10.00) for every dried ounce of marijuana flower and a proportionate
12	tax at the like rate on all fractional parts of an ounce thereof.
13	(b) Marijuana trim and marijuana flower that has not reach a dried state will be taxed
14	using equivalent amounts as established by regulations promulgated by the department of taxation
15	and the department of business regulation.
16	(c) The excise tax is assessed and levied upon the sale or transfer of marijuana by a
17	licensed cultivator to any other licensee.
18	(d) This section is effective as of October 1, 2019.
19	44-49.1-5. Adult use marijuana retail excise tax.
20	(a) An excise tax is imposed on all marijuana sold by licensed marijuana retailers
21	pursuant to chapter 28.11 of title 21 at a rate of ten percent (10%) of the gross sales of marijuana
22	products. This excise tax is in addition to taxes imposed by chapter 18 of title 44.
23	(b) Any marijuana retailer shall collect the taxes imposed by this section from any
24	purchaser to whom the sale of marijuana products is made and shall remit to the state the tax
25	levied by this section.
26	(c) The marijuana retailer shall add the tax imposed by this chapter to the sale price or
27	charge, and when added the tax constitutes a part of the price or charge, is a debt from the
28	consumer or user to the retailer, and is recoverable at law in the same manner as other debts;
29	provided, that the amount of tax that the retailer collects from the consumer or user is as follows:
30	Amount of Fair Market Value, as Tax
31	$0.01 to $ .09 inclusive No Tax
32	.10 to .19 inclusive .01
33	.20 to .29 inclusive .02
34	.30 to .39 inclusive .03
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1	.40 to .49 inclusive .04
2	.50 to .59 inclusive .05
3	.60 to .69 inclusive .06
4	.70 to .79 inclusive .07
5	.80 to .89 inclusive .08
6	.90 to .99 inclusive .09
7	.100 to .109 inclusive .10
8	and where the amount of the sale is more than one dollar and nine cents ($1.09) the
9	amount of the tax is computed at the rate of ten percent (10%)
10	(d) It shall be deemed a violation of this section for a marijuana retailer to fail to
11	separately state the tax imposed in this section and instead include it in the sale price of marijuana
12	products. The tax levied in this article shall be imposed is in addition to all other taxes imposed
13	by the state, or any municipal corporation or political subdivision of any of the foregoing.
14	44-49.1-6. Hemp-derived consumable CBD products tax.
15	(a) A tax is imposed on all hemp-derived consumable CBD products sold, or held for
16	sale in the state by any person, the payment of the tax to be accomplished according to a
17	mechanism established by the tax administrator. The tax imposed by this section shall be as
18	follows at the rate of eighty percent (80%) of the wholesale cost of hemp-derived consumable
19	CBD products.
20	(b) Any licensed CBD retailer who purchases hemp-derived consumable CBD products
21	from a distributor who does not possess a valid Rhode Island distributor’s license shall, with
22	respect to the storage or use of which a tax is imposed by this section shall, within five (5) days
23	after coming into possession of the hemp-derived consumable CBD products in this state, file a
24	return with the tax administrator in a form prescribed by the tax administrator. The return shall be
25	accompanied by a payment of the amount of the tax shown on the form to be due. Records
26	required under this section shall be preserved on the premises described in the relevant license in
27	such a manner as to ensure permanency and accessibility for inspection at reasonable hours by
28	authorized personnel of the administrator.
29	(c) The proceeds collected are paid into the general fund.
30	(d) This section shall be effective commencing on the first month following thirty (30)
31	days after promulgation of the final regulations issued by the department of business regulation
32	that establish the CBD distributor and CBD retailer licenses.
33	44-49.1-7. Returns.
34	(a) Every licensed cultivator shall, on or before the twentieth (20th) day of the month
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1	following the sale or transfer of marijuana, make a return to the tax administrator for taxes due
2	under § 44-49.1-4. Licensed cultivators shall file their returns on a form as prescribed by the tax
3	administrator.
4	(b) Every licensed marijuana retailer shall, on or before the twentieth (20th) day of the
5	month following the sale of marijuana products, make a return to the tax administrator for taxes
6	due under § 44-49.1-5. Licensed retailers shall file their returns on a form as prescribed by the tax
7	administrator.
8	(c) If for any reason an marijuana retailer fails to collect the tax imposed § 44-49.1-5
9	from the purchaser, the purchaser shall file a return and pay the tax directly to the state, on or
10	before the date required by subsection (b) of this section.
11	(d) Every licensed CBD distributor shall, on or before the tenth (10th) day of the month
12	following the sale of hemp-derived consumable CBD products, make a return to the tax
13	administrator for taxes due under § 44-49.1-6. Licensed CBD retailers shall file their returns on a
14	form as prescribed by the tax administrator.
15	(e) There is created with the general fund a restricted receipt account to be known as the
16	“marijuana cash use surcharge” account. Surcharge collected pursuant to subsection (f) shall be
17	deposited into this account and be used to finance costs associated with processing and handling
18	cash payments for taxes paid under this chapter. The restricted receipt account will be housed
19	within the budget of the department of revenue. All amounts deposited into the marijuana cash
20	use surcharge account shall be exempt from the indirect cost recovery provisions of § 35-4-27.
21	(f) Any licensee who makes a payment in cash for taxes due under this chapter, or taxes
22	due under chapters 18 or 67 of this title, shall pay a ten percent (10%) penalty on the amount of
23	that payment to the division of taxation. Payment of a tax return with less than one thousand
24	dollars ($1,000) in taxes due per month, on average, shall not be subject to the penalty.
25	(g) Notwithstanding any other provision of law, the name of the licensee and the amount
26	of tax paid under this chapter shall be available to the public for inspection by any person.
27	44-49.1-8. Sale of contraband products prohibited.
28	(a) No person shall sell, offer for sale, display for sale, or possess with intent to sell any
29	contraband marijuana, marijuana products, or hemp-derived consumable CBD products.
30	(b) Any marijuana, marijuana products, or hemp-derived consumable CBD products
31	exchanged in which one of the two entities does not have a license or exchanged between a non-
32	licensed entity and a consumer shall be considered contraband.
33	(c) Any marijuana, marijuana products, or hemp-derived consumable CBD products for
34	which applicable taxes have not been paid as specified in title 44 shall be considered contraband.
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1	(d) Failure to comply with the provisions of this chapter may result in the imposition of
2	the applicable civil penalties in title 44; however, the possession of marijuana, marijuana
3	products, or hemp-derived consumable CBD products as described in this chapter do not
4	constitute contraband for purposes of imposing a criminal penalty under chapter 28 of title 21.
5	44-49.1-9. Recordkeeping.
6	(a) Each licensee shall maintain copies of invoices or equivalent documentation for, or
7	itemized for, each of its facilities for each involving the sale or transfer of marijuana, marijuana
8	products, or hemp-derived consumable CBD products. All records and invoices required under
9	this section must be safely preserved for three (3) years in a manner to insure permanency and
10	accessibility for inspection by the administrator or his or her authorized agents.
11	(b) Records required under this section shall be preserved on the premises described in
12	the relevant license in such a manner as to ensure permanency and accessibility for inspection at
13	reasonable hours by authorized personnel of the administrator. With the tax administrator's
14	permission, persons with multiple places of business may retain centralized records but shall
15	transmit duplicates of the invoices or the equivalent documentation to each place of business
16	within twenty-four (24) hours upon the request of the administrator or his or her designee.
17	(c) Any person who fails to submit the reports required in this chapter or by the tax
18	administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who
19	refuses to permit the tax administrator or his or her authorized agent to examine any books,
20	records, papers, or stocks of marijuana, marijuana products, or hemp-derived consumable CBD
21	products as provided in this chapter, or who refuses to supply the tax administrator with any other
22	information which the tax administrator requests for the reasonable and proper enforcement of the
23	provisions of this chapter, shall be guilty of a misdemeanor punishable by imprisonment up to
24	one (1) year, or a fine of not more than five thousand dollars ($5,000), or both, for the first
25	offense, and for each subsequent offense, shall be fined not more than ten thousand dollars
26	($10,000), or be imprisoned not more than five (5) years, or both.
27	44-49.1-10. Inspections and investigations.
28	(a) The tax administrator or his or her duly authorized agent shall have authority to enter
29	and inspect, without a warrant during normal business hours, and with a warrant during
30	nonbusiness hours, the facilities and records of any licensee.
31	(b) In any case where the administrator or his or her duly authorized agent, or any police
32	officer of this state, has knowledge or reasonable grounds to believe that any vehicle is
33	transporting marijuana, marijuana products, or hemp-derived consumable CBD products in
34	violation of this chapter, the administrator, such agent, or such police officer, is authorized to stop
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1	such vehicle and to inspect the same for contraband marijuana, marijuana products, or hemp-
2	derived consumable CBD products.
3	(c) For the purpose of determining the correctness of any return, determining the amount
4	of tax that should have been paid, determining whether or not the licensee should have made a
5	return or paid taxes, or collecting any taxes under this chapter, the tax administrator may
6	examine, or cause to be examined, any books, papers, records, or memoranda, that may be
7	relevant to making those determinations, whether the books, papers, records, or memoranda, are
8	the property of or in the possession of the dealer of another person. The tax administrator may
9	require the attendance of any person having knowledge or information that may be relevant,
10	compel the production of books, papers, records, or memoranda by persons required to attend,
11	take testimony on matters material to the determination, and administer oaths or affirmations.
12	Upon demand of the tax administrator or any examiner or investigator, the court administrator of
13	any court shall issue a subpoena for the attendance of a witness or the production of books,
14	papers, records, and memoranda. The tax administrator may also issue subpoenas. Disobedience
15	of subpoenas issued under this chapter is punishable by the superior court of the district in which
16	the subpoena is issued, or, if the subpoena is issued by the tax administrator, by the superior court
17	or the county in which the party served with the subpoena is located, in the same manner as
18	contempt of superior court.
19	44-49.1-11. Suspension or revocation of license.
20	The tax administrator may request the department of business regulation to, and upon
21	such request the department shall be authorized to, suspend or revoke any license under this
22	chapter for failure of the licensee to comply with any provision of this chapter or with any
23	provision of any other law or ordinance relative to the sale or transfer of marijuana, marijuana
24	products, or hemp-derived consumable CBD products.
25	44-49.1-12. Seizure and destruction.
26	Any marijuana, marijuana products, or hemp-derived consumable CBD products found in
27	violation of this chapter shall be declared to be contraband goods and may be seized by the tax
28	administrator, his or her agents, or employees, or by any deputy sheriff, or police officer when
29	directed by the tax administrator to do so, without a warrant. For the purposes of seizing and
30	destroying contraband marijuana, employees of the department of business regulation may act as
31	agents of the tax administrator. The seizure and/or destruction of any marijuana, marijuana
32	products, or hemp-derived consumable CBD products under the provisions of this section does
33	not relieve any person from a fine or other penalty for violation of this chapter. The tax
34	administrator may promulgate rules and regulations for the destruction of contraband goods
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1	pursuant to this section. These rules and regulations may be promulgated jointly with the
2	department of business regulation.
3	44-49.1-13. Penalties.
4	(a) Failure to file tax returns or to pay tax. In the case of failure:
5	(1) To file. The tax return on or before the prescribed date, unless it is shown that the
6	failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made
7	equal to ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax
8	required to be reported shall be reduced by an amount of the tax paid on or before the date
9	prescribed for payment and by the amount of any credit against the tax which may properly be
10	claimed upon the return;
11	(2) To pay. The amount shown as tax on the return on or before the prescribed date for
12	payment of the tax unless it is shown that the failure is due to reasonable cause and not due to
13	willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%)
14	of the amount of the tax.
15	(b) Negligence. If any part of a deficiency is due to negligence or intentional disregard of
16	the Rhode Island General Laws or rules or regulations under this chapter (but without intent to
17	defraud), five percent (5%) of that part of the deficiency shall be added to the tax.
18	(c) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of
19	the deficiency shall be added to the tax. This amount shall be in lieu of any other additional
20	amounts imposed by subsections (a) and (b) of this section.
21	(d) Failure to collect and pay over tax. Any person required to collect, truthfully account
22	for, and pay over any tax under this title who willfully fails to collect the tax or truthfully account
23	for and pay over the tax or willfully attempts in any manner to evade or defeat the tax or the
24	payment thereof, shall, in addition to other penalties provided by law, be liable to a civil penalty
25	equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
26	(e) Additions and penalties treated as tax. The additions to the tax and civil penalties
27	provided by this section shall be paid upon notice and demand and shall be assessed, collected,
28	and paid in the same manner as taxes.
29	(f) Bad checks. If any check or money order in payment of any amount receivable under
30	this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as
31	a penalty by the person who tendered the check, upon notice and demand by the tax administrator
32	or his or her delegate, in the same manner as tax, an amount equal to one percent (1%) of the
33	amount of the check, except that if the amount of the check is less than five hundred dollars
34	($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply
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1	if the person tendered the check in good faith and with reasonable cause to believe that it would
2	be duly paid.
3	(g) Misuse of Trust Funds. Any retailer and any officer, agent, servant, or employee of
4	any corporate retailer responsible for either the collection or payment of the tax, who appropriates
5	or converts the tax collected to his or her own use or to any use other than the payment of the tax
6	to the extent that the money required to be collected is not available for payment on the due date
7	as prescribed in this chapter, shall upon conviction for each offense be fined not more than ten
8	thousand dollars ($10,000), or be imprisoned for one year, or by both fine and imprisonment,
9	both fine and imprisonment to be in addition to any other penalty provided by this chapter.
10	(h) Whoever fails to pay any tax imposed by § 44-49.1-4 or § 44-49.1-6 at the time
11	prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter,
12	be liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due
13	but unpaid, whichever is greater.
14	(i) When determining the amount of a penalty sought or imposed under this section,
15	evidence of mitigating or aggravating factors, including history, severity, and intent, shall be
16	considered.
17	44-49.1-14. Claim for refund.
18	Whenever the tax administrator determines that any person is entitled to a refund of any
19	moneys paid by a person under the provisions of this chapter, or whenever a court of competent
20	jurisdiction orders a refund of any moneys paid, the general treasurer shall, upon certification by
21	the tax administrator and with the approval of the director of administration, pay the refund from
22	any moneys in the treasury not appropriated without any further act or resolution making
23	appropriation for the refund. No refund is allowed unless a claim is filed with the tax
24	administrator within three (3) years from the fifteenth (15th) day after the close of the month for
25	which the overpayment was made.
26	44-49.1-15. Hearings and appeals.
27	(a) Any person aggrieved by any action under this chapter of the tax administrator or his
28	or her authorized agent for which a hearing is not elsewhere provided may apply to the tax
29	administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons
30	why the hearing should be granted and the manner of relief sought. The tax administrator shall
31	notify the applicant of the time and place fixed for the hearing. After the hearing, the tax
32	administrator may make the order in the premises as may appear to the tax administrator just and
33	lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice
34	in writing, at any time, order a hearing on his or her own initiative and require the taxpayer or any
	LC000763 - Page 539 of 541
1	other individual whom the tax administrator believes to be in possession of information
2	concerning any manufacture, importation, or sale of cigarettes to appear before the tax
3	administrator or his or her authorized agent with any specific books of account, papers, or other
4	documents, for examination relative to the hearing.
5	(b) Appeals from administrative orders or decisions made pursuant to any provisions of
6	this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The
7	taxpayer's right to appeal under this section shall be expressly made conditional upon prepayment
8	of all taxes, interest, and penalties, unless the taxpayer moves for and is granted an exemption
9	from the prepayment requirement pursuant to § 8-8-26.
10	44-49.1-16. Disclosure of information to the office of cannabis regulation.
11	Notwithstanding any other provision of law, the tax administrator may make available to
12	an officer or employee of the office of cannabis regulation of the Rhode Island department of
13	business regulation, any information that the administrator may consider proper contained in tax
14	reports or returns or any audit or the report of any investigation made with respect to them, filed
15	pursuant to the tax laws of this state, to whom disclosure is necessary for the purposes ensuring
16	compliance with state law and regulations.
17	44-49.1-17. Transfer of revenue to the marijuana trust fund.
18	(a) The division of taxation shall transfer all collections from marijuana cultivator excise
19	tax and the adult use marijuana retail excise tax, including penalties or forfeitures, interest, costs
20	of suit and fines, to the marijuana trust fund established by § 21-28.11-18.
21	(b) The division of taxation shall transfer all collections remitted by licensed retailers
22	pursuant to § 44-18-18 due to the net revenue of marijuana products. The tax administrator may
23	base this transfer on an estimate of the net revenue of marijuana products derived from any other
24	tax data collected under title 44 or data shared by the department of business regulation.
25	44-49.1-18. Rules and regulations.
26	The tax administrator is authorized to promulgate rules and regulations to carry out the
27	provisions, policies, and purposes of this chapter.
28	44-49.1-19. Severability.
29	If any provision of this chapter or the application of this chapter to any person or
30	circumstances is held invalid, that invalidity shall not affect other provisions or applications of
31	the chapter that can be given effect without the invalid provision or application, and to this end
32	the provisions of this chapter are declared to be severable.
33	SECTION 11. This article shall take effect upon passage.
34	ARTICLE 21
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1	RELATING TO EFFECTIVE DATE
2	SECTION 1. This article shall take effect as of July 1, 2019, except as otherwise
3	provided herein.
4	SECTION 2. This article shall take effect upon passage.
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