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S T A T E O F R H O D E I S L A N D

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 EDUCATION

10 ARTICLE 10 RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT

11 OF FY 2019

12 ARTICLE 11 RELATING TO HEALTHCARE MARKET STABILITY

13 ARTICLE 12 RELATING TO ECONOMIC DEVELOPMENT

14 ARTICLE 13 RELATING TO HUMAN SERVICES

15 ARTICLE 14 RELATING TO LEASE AGREEMENTS FOR LEASED OFFICE AND

16 OPERATING SPACE

17 ARTICLE 15 RELATING TO MARIJUANA

18 ARTICLE 16 RELATING TO CENTRAL FALLS RETIREES' BENEFICIARIES

19 ARTICLE 17 RELATING TO EFFECTIVE DATE

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1 ARTICLE 1 AS AMENDED

2 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2020

3 SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in

4 this act, the following general revenue amounts are hereby appropriated out of any money in the

5 treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2020.

6 The amounts identified for federal funds and restricted receipts shall be made available pursuant to

7 section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes

8 and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw

9 his or her orders upon the general treasurer for the payment of such sums or such portions thereof

10 as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

11 Administration

12 Central Management

13 General Revenues 2,389,232

14 Legal Services

15 General Revenues 2,294,340

16 Accounts and Control

17 General Revenues 5,412,043

18 Restricted Receipts – OPEB Board Administration 149,966

19 Total – Accounts and Control 5,562,009

20 Office of Management and Budget

21 General Revenues 8,220,142

22 Restricted Receipts 300,000

23 Other Funds 1,321,384

24 Total – Office of Management and Budget 9,841,526

25 Purchasing

26 General Revenues 3,335,156

27 Restricted Receipts 459,389

28 Other Funds 503,353

29 Total – Purchasing 4,297,898

30 Human Resources

1 General Revenues 788,541

2 Personnel Appeal Board

3 General Revenues 151,521

4 Information Technology

5 General Revenues 1,647,418

6 Federal Funds 114,000

7 Restricted Receipts 6,622,092

8 Provided that $343,000 of this amount is for the Division of Motor Vehicles for license

9 plates reissuance initial costs.

10 Total – Information Technology 8,383,510

11 Library and Information Services

12 General Revenues 1,457,501

13 Federal Funds 1,155,921

14 Restricted Receipts 1,404

15 Total – Library and Information Services 2,614,826

16 Planning

17 General Revenues 1,530,465

18 Provided that $500,000 is for the Rhode Island Statewide Complete Count Committee.

19 Federal Funds 15,448

20 Other Funds

21 Air Quality Modeling 24,000

22 Federal Highway – PL Systems Planning 3,775,979

23 FTA – Metro Planning Grant 1,107,450

24 Total – Planning 6,453,342

25 General

26 General Revenues

27 Miscellaneous Grants/Payments 130,000

28 Provided that this amount be allocated to City Year for the Whole School Whole Child

29 Program, which provides individualized support to at-risk students.

30 Torts – Courts/Awards 900,000

31 Resource Sharing and State Library Aid 9,562,072

32 Library Construction Aid 1,937,230

33 Restricted Receipts 700,000

34 Other Funds

Rhode Island Capital Plan Funds

Security Measures State Buildings

500,000

Energy Efficiency Improvements

500,000

Cranston Street Armory

500,000

State House Renovations

2,201,684

Zambarano Utilities & Infrastructure

2,242,000

Replacement of Fueling Tanks

330,000

Environmental Compliance

200,000

Big River Management Area

100,000

Veterans Memorial Auditorium

90,000

Shepard Building

250,000

Pastore Center Water Tanks & Pipes

280,000

RI Convention Center Authority

5,500,000

Dunkin Donuts Center

1,500,000

Pastore Center Power Plant Rehabilitation

2,350,000

Accessibility – Facility Renovations

1,000,000

DoIT Enterprise Operations Center

500,000

BHDDH DD & Community Facilities – Asset Protection

200,000

BHDDH DD & Community Homes – Fire Code

1,600,000

BHDDH DD Regional Facilities – Asset Protection

300,000

BHDDH Substance Abuse Asset Protection

250,000

BHDDH Group Homes

500,000

Expo Center (Springfield)

250,000

Hospital Consolidation

13,132,000

McCoy Stadium

200,000

Statewide Facility Master Plan

250,000

Cannon Building

1,250,000

Old Colony House

25,000

Old State House

500,000

State Office Building

350,000

State Office Reorganization & Relocation

1,750,000

William Powers Building

1,250,000

Pastore Center Utilities Upgrade

387,000

Pastore Center Medical Buildings Asset Protection

3,487,500

1 Pastore Center Non-Medical Buildings Asset Protection 4,350,388

2 Washington County Government Center 1,050,000

3 Chapin Health Laboratory 275,000

4 Total – General 62,629,874

5 Debt Service Payments

6 General Revenues 158,777,282

7 Out of the general revenue appropriations for debt service, the General Treasurer is

8 authorized to make payments for the I-195 Redevelopment District Commission loan up to the

9 maximum debt service due in accordance with the loan agreement.

10 Federal Funds 1,870,830

11 Other Funds

12 Transportation Debt Service 36,322,259

13 Investment Receipts – Bond Funds 100,000

14 Total - Debt Service Payments 197,070,371

15 Energy Resources

16 Federal Funds

17 Federal Funds 547,176

18 Stimulus – State Energy Plan 449,498

19 Restricted Receipts 7,817,428

20 Total – Energy Resources 8,814,102

21 Rhode Island Health Benefits Exchange

22 General Revenues 1,591,498

23 Restricted Receipts 8,361,899

24 Total – Rhode Island Health Benefits Exchange 9,953,397

25 Office of Diversity, Equity & Opportunity

26 General Revenues 1,304,197

27 Other Funds 122,303

28 Total – Office of Diversity, Equity & Opportunity 1,426,500

29 Capital Asset Management and Maintenance

30 General Revenues 9,817,305

31 Statewide Savings Initiatives

32 General Revenues

33 Fraud and Waste Detection (1,950,518)

34 Injured-on-Duty Savings (1,657,000)

1 Overtime Savings (1,000,000)

2 Total – Statewide Savings Initiatives (4,607,518)

3 Grand Total – Administration 327,880,776

4 Business Regulation

5 Central Management

6 General Revenues 2,529,586

7 Banking Regulation

8 General Revenues 1,659,819

9 Restricted Receipts 75,000

10 Total – Banking Regulation 1,734,819

11 Securities Regulation

12 General Revenues 1,083,495

13 Restricted Receipts 15,000

14 Total – Securities Regulation 1,098,495

15 Insurance Regulation

16 General Revenues 3,919,342

17 Restricted Receipts 2,011,929

18 Total – Insurance Regulation 5,931,271

19 Office of the Health Insurance Commissioner

20 General Revenues 1,717,106

21 Federal Funds 376,948

22 Restricted Receipts 478,223

23 Total – Office of the Health Insurance Commissioner 2,572,277

24 Board of Accountancy

25 General Revenues 5,883

26 Commercial Licensing and Gaming and Athletics Licensing

27 General Revenues 1,135,403

28 Restricted Receipts 950,957

29 Total – Commercial Licensing and Gaming and Athletics

30 Licensing 2,086,360

31 Building, Design and Fire Professionals

32 General Revenues 5,846,047

33 Federal Funds 378,840

34 Restricted Receipts 2,267,456

1 Other Funds

2 Quonset Development Corporation 71,199

3 Rhode Island Capital Plan Funds

4 Fire Academy 495,160

5 Total – Building, Design and Fire Professionals 9,058,702

6 Office of Cannabis Regulation

7 Restricted Receipts 1,346,264

8 Grand Total – Business Regulation 26,363,657

9 Executive Office of Commerce

10 Central Management

11 General Revenues 1,921,663

12 Housing and Community Development

13 General Revenues 841,208

14 Federal Funds 17,611,003

15 Restricted Receipts 4,754,319

16 Total – Housing and Community Development 23,206,530

17 Quasi–Public Appropriations

18 General Revenues

19 Rhode Island Commerce Corporation 7,431,022

20 Airport Impact Aid 1,010,036

21 Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be

22 distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the

23 total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%)

24 of the first $1,000,000 shall be distributed based on the share of landings during calendar year 2019

25 at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset Airport,

26 T.F. Green Airport and Westerly Airport, respectively. The Rhode Island Commerce Corporation

27 shall make an impact payment to the towns or cities in which the airport is located based on this

28 calculation. Each community upon which any part of the above airports is located shall receive at

29 least $25,000.

30 STAC Research Alliance 900,000

31 Innovative Matching Grants/Internships 1,000,000

32 I-195 Redevelopment District Commission 761,000

33 Chafee Center at Bryant 476,200

34 Polaris Manufacturing Grant 350,000

1 Urban Ventures 140,000

2 East Providence Waterfront Commission 50,000

3 Other Funds

4 Rhode Island Capital Plan Funds

5 I-195 Redevelopment District Commission 450,000

6 Quonset Piers 5,000,000

7 Quonset Point Infrastructure 4,000,000

8 Total – Quasi–Public Appropriations 21,568,258

9 Economic Development Initiatives Fund

10 General Revenues

11 Innovation Initiative 1,000,000

12 Rebuild RI Tax Credit Fund 10,000,000

13 Competitive Cluster Grants 100,000

14 P-tech 200,000

15 Small Business Promotion 300,000

16 Small Business Assistance 500,000

17 Total – Economic Development Initiatives Fund 12,100,000

18 Commerce Programs

19 General Revenues

20 Wavemaker Fellowship 1,200,000

21 Grand Total – Executive Office of Commerce 59,996,451

22 Labor and Training

23 Central Management

24 General Revenues 797,120

25 Restricted Receipts 222,508

26 Total – Central Management 1,019,628

27 Workforce Development Services

28 General Revenues 6,276,757

29 Provided that $100,000 be allocated to support the Opportunities Industrialization Center.

30 Federal Funds 25,449,292

31 Restricted Receipts 16,843,397

32 Other Funds 197,142

33 Total – Workforce Development Services 48,766,588

34 Workforce Regulation and Safety

1 General Revenues 3,231,560

2 Income Support

3 General Revenues 3,932,826

4 Federal Funds 12,835,359

5 Restricted Receipts 2,383,219

6 Other Funds

7 Temporary Disability Insurance Fund 203,094,524

8 Employment Security Fund 162,735,000

9 Total – Income Support 384,980,928

10 Injured Workers Services

11 Restricted Receipts 10,573,722

12 Labor Relations Board

13 General Revenues 441,669

14 Grand Total – Labor and Training 449,014,095

15 Department of Revenue

16 Director of Revenue

17 General Revenues 2,141,620

18 Office of Revenue Analysis

19 General Revenues 841,407

20 Lottery Division

21 Other Funds 420,149,414

22 Municipal Finance

23 General Revenues 2,465,897

24 Taxation

25 General Revenues 27,326,969

26 Federal Funds 1,424,338

27 Restricted Receipts 990,653

28 Other Funds

29 Motor Fuel Tax Evasion 172,961

30 Temporary Disability Insurance Fund 1,035,798

31 Total – Taxation 30,950,719

32 Registry of Motor Vehicles

33 General Revenues 29,140,414

34 Federal Funds 545,243

1 Restricted Receipts 1,692,587

2 Total – Registry of Motor Vehicles 31,378,244

3 State Aid

4 General Revenues

5 Distressed Communities Relief Fund 12,384,458

6 Payment in Lieu of Tax Exempt Properties 46,089,504

7 Motor Vehicle Excise Tax Payments 94,275,463

8 Property Revaluation Program 688,856

9 Restricted Receipts 922,013

10 Total – State Aid 154,360,294

11 Collections

12 General Revenues 899,649

13 Grand Total – Revenue 643,187,244

14 Legislature

15 General Revenues 43,804,101

16 Restricted Receipts 1,832,014

17 Grand Total – Legislature 45,636,115

18 Lieutenant Governor

19 General Revenues 1,147,816

20 Secretary of State

21 Administration

22 General Revenues 3,875,528

23 Corporations

24 General Revenues 2,291,898

25 State Archives

26 General Revenues 112,670

27 Restricted Receipts 426,672

28 Total – State Archives 539,342

29 Elections and Civics

30 General Revenues 2,117,101

31 Federal Funds 1,016,230

32 Total – Elections and Civics 3,133,331

33 State Library

34 General Revenues 683,490

1 Provided that $125,000 be allocated to support the Rhode Island Historical Society

2 pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the

3 Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.

4 Office of Public Information

5 General Revenues 452,568

6 Receipted Receipts 25,000

7 Total – Office of Public Information 477,568

8 Grand Total – Secretary of State 11,001,157

9 General Treasurer

10 Treasury

11 General Revenues 2,643,533

12 Federal Funds 287,818

13 Other Funds

14 Temporary Disability Insurance Fund 249,940

15 Tuition Savings Program – Administration 413,919

16 Total –Treasury 3,595,210

17 State Retirement System

18 Restricted Receipts

19 Admin Expenses – State Retirement System 9,898,528

20 Retirement – Treasury Investment Operations 1,838,053

21 Defined Contribution – Administration 231,632

22 Total – State Retirement System 11,968,213

23 Unclaimed Property

24 Restricted Receipts 25,350,100

25 Crime Victim Compensation Program

26 General Revenues 394,018

27 Federal Funds 711,156

28 Restricted Receipts 636,944

29 Total – Crime Victim Compensation Program 1,742,118

30 Grand Total – General Treasurer 42,655,641

31 Board of Elections

32 General Revenues 2,748,855

33 Rhode Island Ethics Commission

34 General Revenues 1,845,298

1 Office of Governor

2 General Revenues

3 General Revenues 5,943,211

4 Contingency Fund 150,000

5 Grand Total – Office of Governor 6,093,211

6 Commission for Human Rights

7 General Revenues 1,353,591

8 Federal Funds 563,414

9 Grand Total – Commission for Human Rights 1,917,005

10 Public Utilities Commission

11 Federal Funds 178,002

12 Restricted Receipts 11,204,978

13 Grand Total – Public Utilities Commission 11,382,980

14 Office of Health and Human Services

15 Central Management

16 General Revenues 25,723,262

17 Of this appropriation, $415,860 is for the Medicaid program’s contribution to the per-

18 member/per-month payment to RI Quality Institute for operation of the statewide Health

19 Information Exchange, $120,000 is for upgrades to the Health Information Exchange infrastructure,

20 and $100,000 is for the state share of financing for continued operation of the statewide clinical

21 quality measurement system developed using federal funding from the State Innovation Models

22 (SIM) Initiative. Each of the aforementioned appropriations is subject to the approval of the

23 Secretary of the Executive Office of Health and Human Services and the Director of the Office of

24 Management and Budget prior to being obligated.

25 Federal Funds 141,787,047

26 Of this appropriation, $4,781,599 is for the Medicaid program’s contribution to the per-

27 member/per-month payment to RI Quality Institute for operation of the statewide Health

28 Information Exchange, $1,080,000 is for upgrades to the Health Information Exchange

29 infrastructure, and $900,000 is for financing the state share of the continued operation of the

30 statewide clinical quality measurement system developed using federal funding from the State

31 Innovation Models (SIM) Initiative. Each of the aforementioned appropriations is subject to the

32 approval of the Secretary of the Executive Office of Health and Human Services and the Director

33 of the Office of Management and Budget prior to being obligated.

34 Restricted Receipts 13,834,987

1 Total – Central Management 181,345,296

2 Medical Assistance

3 General Revenues

4 Managed Care 324,386,393

5 Hospitals 92,157,641

6 Nursing Facilities 166,188,054

7 Home and Community Based Services 35,641,620

8 Other Services 92,836,397

9 Pharmacy 74,388,617

10 Rhody Health 190,960,427

11 Federal Funds

12 Managed Care 423,298,954

13 Hospitals 102,772,850

14 Nursing Facilities 186,316,185

15 Home and Community Based Services 39,958,380

16 Other Services 516,507,768

17 Pharmacy (314,978)

18 Rhody Health 211,156,378

19 Other Programs 43,038,580

20 Restricted Receipts 10,094,200

21 Total – Medical Assistance 2,509,387,466

22 Grand Total – Office of Health and Human Services 2,690,732,762

23 Children, Youth, and Families

24 Central Management

25 General Revenues 11,389,069

26 Provided that of this amount, $500,000 is for costs associated with accreditation pursuant

27 to Rhode Island General Law, Section 42-72-5.3 and provided further that all unexpended or

28 unencumbered balances as of June 30, 2020 are hereby reappropriated to fiscal year 2021.

29 Federal Funds 3,729,331

30 Total – Central Management 15,118,400

31 Children's Behavioral Health Services

32 General Revenues 7,185,060

33 Federal Funds 6,563,808

34 Total – Children's Behavioral Health Services 13,748,868

1 Juvenile Correctional Services

2 General Revenues 22,111,978

3 Federal Funds 184,338

4 Restricted Receipts 28,675

5 Other Funds

6 Rhode Island Capital Plan Funds

7 Training School Asset Protection 750,000

8 Training School Generators 610,000

9 Female Residential Facility 1,500,000

10 Total – Juvenile Correctional Services 25,184,991

11 Child Welfare

12 General Revenues

13 General Revenues 123,785,957

14 18 to 21 Year Olds 452,521

15 Federal Funds 49,509,471

16 Restricted Receipts 1,858,882

17 Total – Child Welfare 175,606,831

18 Higher Education Incentive Grants

19 General Revenues 200,000

20 Grand Total – Children, Youth, and

21 Families 229,859,090

22 Health

23 Central Management

24 General Revenues 3,644,060

25 Federal Funds 4,318,002

26 Restricted Receipts 7,258,617

27 Total – Central Management 15,220,679

28 Community Health and Equity

29 General Revenues 645,497

30 Federal Funds 68,387,298

31 Restricted Receipts 38,129,080

32 Total – Community Health and Equity 107,161,875

33 Environmental Health

34 General Revenues 5,441,319

1 Federal Funds 7,433,183

2 Restricted Receipts 341,479

3 Total – Environmental Health 13,215,981

4 Health Laboratories and Medical Examiner

5 General Revenues 10,170,047

6 Federal Funds 2,012,392

7 Other Funds

8 Rhode Island Capital Plan Funds

9 Health Laboratories & Medical Examiner Equipment 400,000

10 Total – Health Laboratories and Medical Examiner 12,582,439

11 Customer Services

12 General Revenues 8,145,908

13 Federal Funds 4,064,441

14 Restricted Receipts 1,369,576

15 Total – Customer Services 13,579,925

16 Policy, Information and Communications

17 General Revenues 924,067

18 Federal Funds 3,238,593

19 Restricted Receipts 2,354,232

20 Total – Policy, Information and Communications 6,516,892

21 Preparedness, Response, Infectious Disease & Emergency Services

22 General Revenues 1,998,023

23 Federal Funds 16,362,030

24 Total – Preparedness, Response, Infectious Disease &

25 Emergency Services 18,360,053

26 Grand Total - Health 186,637,844

27 Human Services

28 Central Management

29 General Revenues 4,676,879

30 Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to provide

31 direct services through the Coalition Against Domestic Violence, $250,000 is to support Project

32 Reach activities provided by the RI Alliance of Boys and Girls Clubs, $217,000 is for outreach and

33 supportive services through Day One, $175,000 is for food collection and distribution through the

34 Rhode Island Community Food Bank, $500,000 for services provided to the homeless at Crossroads

1 Rhode Island, $600,000 for the Community Action Fund and $200,000 is for the Institute for the

2 Study and Practice of Nonviolence’s Reduction Strategy.

3 Federal Funds 4,987,351

4 Restricted Receipts 200,000

5 Total – Central Management 9,864,230

6 Child Support Enforcement

7 General Revenues 2,822,190

8 Federal Funds 6,926,373

9 Total – Child Support Enforcement 9,748,563

10 Individual and Family Support

11 General Revenues 19,421,725

12 Federal Funds 113,244,345

13 Restricted Receipts 25,226,090

14 Other Funds

15 Food Stamp Bonus Funding 170,000

16 Intermodal Surface Transportation Fund 4,428,478

17 Rhode Island Capital Plan Funds

18 Blind Vending Facilities 165,000

19 Total – Individual and Family Support 162,655,638

20 Office of Veterans Services

21 General Revenues 25,478,689

22 Of this amount, $200,000 is to provide support services through Veterans’ organizations

23 and $200 is to pay the Vietnam bonus of James A. Falcon of 50 Jay Street, East Providence, Rhode

24 Island, who served in the United States Navy during the Vietnam Conflict under serial No. 697-61-

25 48.

26 Federal Funds 13,459,517

27 Restricted Receipts 1,152,000

28 Other Funds

29 Rhode Island Capital Plan Funds

30 Veterans Home Asset Protection 250,000

31 Total – Office of Veterans Services 40,340,206

32 Health Care Eligibility

33 General Revenues 1,231,216

34 Federal Funds 10,598,378

1 Total – Health Care Eligibility 11,829,594

2 Supplemental Security Income Program

3 General Revenues 19,487,100

4 Rhode Island Works

5 General Revenues 10,039,632

6 Federal Funds 87,246,054

7 Total – Rhode Island Works 97,285,686

8 Other Programs

9 General Revenues 996,600

10 Of this appropriation, $90,000 shall be used for hardship contingency payments.

11 Federal Funds 265,157,901

12 Total – Other Programs 266,154,501

13 Office of Healthy Aging

14 General Revenues 8,024,596

15 Of this amount, $325,000 is to provide elder services, including respite, through the

16 Diocese of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term

17 Care in accordance with Rhode Island General Laws, Chapter 42-66.7, $85,000 for security for

18 housing for the elderly in accordance with Rhode Island General Law, Section 42-66.1-3, $800,000

19 for Senior Services Support and $580,000 for elderly nutrition, of which $530,000 is for Meals on

20 Wheels.

21 Federal Funds 12,780,657

22 Restricted Receipts 172,609

23 Total – Office of Healthy Aging 20,977,862

24 Grand Total – Human Services 638,343,380

25 Behavioral Healthcare, Developmental Disabilities, and Hospitals

26 Central Management

27 General Revenues 3,495,795

28 Federal Funds 1,316,004

29 Total – Central Management 4,811,799

30 Hospital and Community System Support

31 General Revenues 2,241,946

32 Federal Funds 23,377

33 Total – Hospital and Community System Support 2,265,323

34 Services for the Developmentally Disabled

1 General Revenues 132,870,111

2 Of this general revenue funding, $4.5 million shall be expended on certain community-

3 based BHDDH developmental disability private provider and self-directed consumer direct care

4 service worker raises and associated payroll costs as authorized by the Department of Behavioral

5 Healthcare, Developmental Disabilities and Hospitals. Any increases for direct support staff in

6 residential or other community-based settings must first receive the approval of the Office of

7 Management and Budget and the Executive Office of Health and Human Services.

8 Of this general revenue funding, $750,000 is to support technical and other assistance for

9 community-based agencies to ensure they transition to providing integrated services to adults with

10 developmental disabilities that comply with the consent decree.

11 Federal Funds 162,204,286

12 Of this funding, $841,006 is to support technical and other assistance for community-based

13 agencies to ensure they transition to providing integrated services to adults with developmental

14 disabilities that comply with the consent decree.

15 Restricted Receipts 1,525,800

16 Other Funds

17 Rhode Island Capital Plan Funds

18 DD Residential Development 300,000

19 Total – Services for the Developmentally Disabled 296,900,197

20 Behavioral Healthcare Services

21 General Revenues 3,077,675

22 Federal Funds 34,042,755

23 Of this federal funding, $900,000 shall be expended on the Municipal Substance

24 Abuse Task Forces and $128,000 shall be expended on NAMI of RI. Also included is

25 $250,000 from Social Services Block Grant funds and/or the Mental Health Block Grant funds to

26 be provided to The Providence Center to coordinate with Oasis Wellness and Recovery Center for

27 its supports and services program offered to individuals with behavioral health issues.

28 Restricted Receipts 149,600

29 Total – Behavioral Healthcare Services 37,270,030

30 Hospital and Community Rehabilitative Services

31 General Revenues 54,695,713

32 Federal Funds 62,839,447

33 Restricted Receipts 4,412,947

34 Total - Hospital and Community Rehabilitative Services 121,948,107

1 Grand Total – Behavioral Healthcare, Developmental

2 Disabilities, and Hospitals 463,195,456

3 Office of the Child Advocate

4 General Revenues 986,701

5 Federal Funds 247,356

6 Grand Total – Office of the Child Advocate 1,234,057

7 Commission on the Deaf and Hard of Hearing

8 General Revenues 533,338

9 Restricted Receipts 130,000

10 Grand Total – Comm. On Deaf and Hard of Hearing 663,338

11 Governor’s Commission on Disabilities

12 General Revenues

13 General Revenues 555,672

14 Livable Home Modification Grant Program 499,397

15 Provided that this will be used for home modification and accessibility enhancements to

16 construct, retrofit, and/or renovate residences to allow individuals to remain in community settings.

17 This will be in consultation with the Executive Office of Health and Human Services.

18 Federal Funds 458,689

19 Restricted Receipts 44,901

20 Total – Governor’s Commission on Disabilities 1,558,659

21 Office of the Mental Health Advocate

22 General Revenues 602,411

23 Elementary and Secondary Education

24 Administration of the Comprehensive Education Strategy

25 General Revenues 21,574,338

26 Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s

27 Hospital pursuant to Rhode Island General Law, Section 16-7-20 and that $395,000 be allocated to

28 support child opportunity zones through agreements with the Department of Elementary and

29 Secondary Education to strengthen education, health and social services for students and their

30 families as a strategy to accelerate student achievement.

31 Federal Funds 211,371,326

32 Restricted Receipts

33 Restricted Receipts 3,022,335

34 HRIC Adult Education Grants 3,500,000

1 Total – Admin. of the Comprehensive Ed. Strategy 239,467,999

2 Davies Career and Technical School

3 General Revenues 13,694,981

4 Federal Funds 1,416,084

5 Restricted Receipts 3,784,140

6 Other Funds

7 P-Tech Grant 100,000

8 Rhode Island Capital Plan Funds

9 Davies School HVAC 200,000

10 Davies School Asset Protection 150,000

11 Total – Davies Career and Technical School 19,345,205

12 RI School for the Deaf

13 General Revenues 6,701,193

14 Federal Funds 506,048

15 Restricted Receipts 837,032

16 Other Funds

17 School for the Deaf Transformation Grants 59,000

18 Rhode Island Capital Plan Funds

19 School for the Deaf Asset Protection 50,000

20 Total – RI School for the Deaf 8,153,273

21 Metropolitan Career and Technical School

22 General Revenues 9,342,007

23 Other Funds

24 Rhode Island Capital Plan Funds

25 MET School Asset Protection 250,000

26 Total – Metropolitan Career and Technical School 9,592,007

27 Education Aid

28 General Revenues 954,125,587

29 Provided that the criteria for the allocation of early childhood funds shall prioritize

30 prekindergarten seats and classrooms for four-year-olds whose family income is at or below one

31 hundred eighty-five percent (185%) of federal poverty guidelines and who reside in communities

32 with higher concentrations of low performing schools.

33 Restricted Receipts 26,283,985

34 Other Funds

1 Permanent School Fund 300,000

2 Total – Education Aid 980,709,572

3 Central Falls School District

4 General Revenues 41,476,650

5 School Construction Aid

6 General Revenues

7 School Housing Aid 78,984,971

8 School Building Authority Capital Fund 1,015,029

9 Total – School Construction Aid 80,000,000

10 Teachers' Retirement

11 General Revenues 112,337,502

12 Grand Total – Elementary and Secondary Education 1,491,082,208

13 Public Higher Education

14 Office of Postsecondary Commissioner

15 General Revenues 16,509,011

16 Provided that $355,000 shall be allocated the Rhode Island College Crusade pursuant to

17 the Rhode Island General Law, Section 16-70-5 and that $75,000 shall be allocated to Best Buddies

18 Rhode Island to support its programs for children with developmental and intellectual disabilities.

19 It is also provided that $6,976,425 shall be allocated to the Rhode Island Promise Scholarship

20 program and $147,000 shall be used to support Rhode Island’s membership in the New England

21 Board of Higher Education.

22 Federal Funds

23 Federal Funds 3,600,000

24 Guaranty Agency Administration 400,000

25 Provided that an amount equivalent to not more than ten (10) percent of the guaranty

26 agency operating fund appropriated for direct scholarship and grants in fiscal year 2020 shall be

27 appropriated for guaranty agency administration in fiscal year 2020. This limitation

28 notwithstanding, final appropriations for fiscal year 2020 for guaranty agency administration may

29 also include any residual monies collected during fiscal year 2020 that relate to guaranty agency

30 operations, in excess of the foregoing limitation.

31 Guaranty Agency Operating Fund-Scholarships & Grants 4,000,000

32 Restricted Receipts 3,134,496

33 Other Funds

34 Tuition Savings Program – Dual Enrollment 2,300,000

1 Tuition Savings Program – Scholarships and Grants 5,595,000

2 Nursing Education Center – Operating 3,034,680

3 Rhode Island Capital Plan Funds

4 Higher Education Centers 3,800,000

5 Provided that the state fund no more than 50.0 percent of the total project

6 cost.

7 Asset Protection 341,000

8 Total – Office of Postsecondary Commissioner 42,714,187

9 University of Rhode Island

10 General Revenues

11 General Revenues 83,390,529

12 Provided that in order to leverage federal funding and support economic development,

13 $350,000 shall be allocated to the Small Business Development Center and that $50,000 shall be

14 allocated to Special Olympics Rhode Island to support its mission of providing athletic

15 opportunities for individuals with intellectual and developmental disabilities.

16 Debt Service 30,535,395

17 RI State Forensics Laboratory 1,299,182

18 Other Funds

19 University and College Funds 677,435,028

20 Debt – Dining Services 1,062,129

21 Debt – Education and General 4,830,975

22 Debt – Health Services 792,955

23 Debt – Housing Loan Funds 12,867,664

24 Debt – Memorial Union 323,009

25 Debt – Ryan Center 2,393,006

26 Debt – Alton Jones Services 102,525

27 Debt – Parking Authority 1,126,020

28 Debt – Restricted Energy Conservation 521,653

29 Debt – URI Energy Conservation 2,103,157

30 Rhode Island Capital Plan Funds

31 Asset Protection 8,326,839

32 Fine Arts Center Renovation 7,070,064

33 Biological Resources Lab 2,855,486

34 Total – University of Rhode Island 837,035,616

1 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

2 unencumbered balances as of June 30, 2020 relating to the University of Rhode Island are hereby

3 reappropriated to fiscal year 2021.

4 Rhode Island College

5 General Revenues

6 General Revenues 51,839,615

7 Debt Service 6,180,718

8 Other Funds

9 University and College Funds 132,924,076

10 Debt – Education and General 880,433

11 Debt – Housing 366,667

12 Debt – Student Center and Dining 153,428

13 Debt – Student Union 206,000

14 Debt – G.O. Debt Service 1,642,121

15 Debt Energy Conservation 635,275

16 Rhode Island Capital Plan Funds

17 Asset Protection 3,669,050

18 Infrastructure Modernization 3,000,000

19 Phase III Master Plan 300,000

20 Total – Rhode Island College 201,797,383

21 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

22 unencumbered balances as of June 30, 2020 relating to Rhode Island College are hereby

23 reappropriated to fiscal year 2021.

24 Community College of Rhode Island

25 General Revenues

26 General Revenues 51,998,378

27 Debt Service 1,898,030

28 Restricted Receipts 633,400

29 Other Funds

30 University and College Funds 104,605,016

31 CCRI Debt Service – Energy Conservation 805,312

32 Rhode Island Capital Plan Funds

33 Asset Protection 2,439,076

34 Knight Campus Renewal 3,500,000

1 Data, Cabling, and Power Infrastructure 500,000

2 Total – Community College of RI 166,379,212

3 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

4 unencumbered balances as of June 30, 2020 relating to the Community College of Rhode Island

5 are hereby reappropriated to fiscal year 2021.

6 Grand Total – Public Higher Education 1,247,926,398

7 RI State Council on the Arts

8 General Revenues

9 Operating Support 839,748

10 Grants 1,165,000

11 Provided that $375,000 be provided to support the operational costs of WaterFire

12 Providence art installations.

13 Federal Funds 762,500

14 Restricted Receipts 45,000

15 Other Funds

16 Art for Public Facilities 626,000

17 Grand Total – RI State Council on the Arts 3,438,248

18 RI Atomic Energy Commission

19 General Revenues 1,059,094

20 Restricted Receipts 99,000

21 Other Funds

22 URI Sponsored Research 287,000

23 Rhode Island Capital Plan Funds

24 RINSC Asset Protection 50,000

25 Grand Total – RI Atomic Energy Commission 1,495,094

26 RI Historical Preservation and Heritage Commission

27 General Revenues 1,488,293

28 Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration

29 activities.

30 Federal Funds 557,028

31 Restricted Receipts 421,439

32 Other Funds

33 RIDOT Project Review 128,570

34 Grand Total – RI Historical Preservation and Heritage Comm. 2,595,330

1 Attorney General

2 Criminal

3 General Revenues 17,969,266

4 Federal Funds 3,552,999

5 Restricted Receipts 79,335

6 Total – Criminal 21,601,600

7 Civil

8 General Revenues 5,595,839

9 Restricted Receipts 830,181

10 Total – Civil 6,426,020

11 Bureau of Criminal Identification

12 General Revenues 1,769,535

13 General

14 General Revenues 3,340,563

15 Other Funds

16 Rhode Island Capital Plan Funds

17 Building Renovations and Repairs 150,000

18 Total – General 3,490,563

19 Grand Total – Attorney General 33,287,718

20 Corrections

21 Central Management

22 General Revenues 16,392,761

23 Federal Funds 44,649

24 Total – Central Management 16,437,410

25 Parole Board

26 General Revenues 1,501,549

27 Federal Funds 116,872

28 Total – Parole Board 1,618,421

29 Custody and Security

30 General Revenues 146,044,847

31 Federal Funds 920,960

32 Total – Custody and Security 146,965,807

33 Institutional Support

34 General Revenues 21,166,690

1 Other Funds

2 Rhode Island Capital Plan Funds

3 Asset Protection 8,578,328

4 Correctional Facilities – Renovations 4,875,000

5 Total – Institutional Support 34,620,018

6 Institutional Based Rehab./Population Management

7 General Revenues 14,202,484

8 Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender

9 discharge planning.

10 Federal Funds 844,026

11 Restricted Receipts 44,473

12 Total – Institutional Based Rehab/Population Mgt. 15,090,983

13 Healthcare Services

14 General Revenues 25,497,603

15 Community Corrections

16 General Revenues 17,282,125

17 Federal Funds 84,437

18 Restricted Receipts 14,896

19 Total – Community Corrections 17,381,458

20 Grand Total – Corrections 257,611,700

21 Judiciary

22 Supreme Court

23 General Revenues

24 General Revenues 29,638,091

25 Provided however, that no more than $1,392,326 in combined total shall be offset to the

26 Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the

27 Department of Children, Youth, and Families, and the Department of Public Safety for square-

28 footage occupancy costs in public courthouses and further provided that $230,000 be allocated to

29 the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy

30 project pursuant to Rhode Island General Law, Section 12-29-7 and that $90,000 be allocated to

31 Rhode Island Legal Services, Inc. to provide housing and eviction defense to indigent individuals.

32 Defense of Indigents 4,403,487

33 Federal Funds 133,759

34 Restricted Receipts 3,603,699

1 Other Funds

2 Rhode Island Capital Plan Funds

3 Judicial Complexes - HVAC 1,000,000

4 Judicial Complexes Asset Protection 1,000,000

5 Licht Chillers Replacement 1,200,000

6 Licht Judicial Complex Restoration 750,000

7 Noel Shelled Courtroom Building 2,176,073

8 Total - Supreme Court 43,905,109

9 Judicial Tenure and Discipline

10 General Revenues 154,616

11 Superior Court

12 General Revenues 24,945,630

13 Federal Funds 33,500

14 Restricted Receipts 400,983

15 Total – Superior Court 25,380,113

16 Family Court

17 General Revenues 22,958,064

18 Federal Funds 2,977,481

19 Total – Family Court 25,935,545

20 District Court

21 General Revenues 13,895,597

22 Restricted Receipts 60,000

23 Total - District Court 13,955,597

24 Traffic Tribunal

25 General Revenues 9,218,475

26 Workers' Compensation Court

27 Restricted Receipts 8,943,104

28 Grand Total – Judiciary 127,492,559

29 Military Staff

30 General Revenues 3,219,493

31 Federal Funds 34,354,996

32 Restricted Receipts

33 RI Military Family Relief Fund 55,000

34 Other Funds

1 Rhode Island Capital Plan Funds

2 Asset Protection 700,000

3 Armory of Mounted Command Roof Replacement 536,575

4 Bristol Readiness Center 125,000

5 Joint Force Headquarters Building 2,157,896

6 Grand Total – Military Staff 41,148,960

7 Public Safety

8 Central Management

9 General Revenues 928,740

10 Federal Funds 14,579,673

11 Total – Central Management 15,508,413

12 E-911 Emergency Telephone System

13 General Revenues 1,698,063

14 Restricted Receipts 5,316,198

15 Total – E-911 Emergency Telephone System 7,014,261

16 Security Services

17 General Revenues 26,773,619

18 Municipal Police Training Academy

19 General Revenues 296,254

20 Federal Funds 419,790

21 Total – Municipal Police Training Academy 716,044

22 State Police

23 General Revenues 76,222,276

24 Federal Funds 4,986,942

25 Restricted Receipts 820,000

26 Other Funds

27 Rhode Island Capital Plan Funds

28 DPS Asset Protection 600,000

29 Training Academy Upgrades 425,000

30 Facilities Master Plan 350,000

31 Headquarters Roof Project 2,000,000

32 Airport Corporation Assistance 146,832

33 Road Construction Reimbursement 2,244,969

34 Weight and Measurement Reimbursement 400,000

Total – State Police

88,196,019

Grand Total – Public Safety

138,208,356

3 Office of Public Defender

4 General Revenues 12,824,871

5 Federal Funds 75,665

6 Grand Total – Office of Public Defender 12,900,536

7 Emergency Management Agency

8 General Revenues 2,364,647

9 Federal Funds 9,295,523

10 Restricted Receipts 468,005

11 Other Funds

12 Rhode Island Capital Plan Funds

13 RI Statewide Communications Network 1,494,414

14 Grand Total – Emergency Management Agency 13,622,589

15 Environmental Management

16 Office of the Director

17 General Revenues 6,927,580

18 Of this general revenue amount, $50,000 is appropriated to the Conservation Districts.

19 Federal Funds 212,741

20 Restricted Receipts 3,841,345

21 Total – Office of the Director 10,981,666

22 Natural Resources

23 General Revenues 23,505,888

24 Federal Funds 21,990,427

25 Restricted Receipts 3,977,991

26 Other Funds

27 DOT Recreational Projects 762,000

28 Blackstone Bikepath Design 1,000,000

29 Transportation MOU 10,286

30 Rhode Island Capital Plan Funds

31 Blackstone Valley Park Improvements 800,000

32 Fort Adams Rehabilitation 300,000

33 Recreational Facilities Improvements 2,600,000

34 Recreation Facility Asset Protection 500,000

Galilee Piers Upgrade

2,790,000

Marine Infrastructure and Pier Development

1,275,000

Total – Natural Resources

59,511,592

4 Environmental Protection

5 General Revenues 13,190,507

6 Federal Funds 10,106,352

7 Restricted Receipts 8,241,512

8 Other Funds

9 Transportation MOU 87,269

10 Total – Environmental Protection 31,625,640

11 Grand Total – Environmental Management 102,118,898

12 Coastal Resources Management Council

13 General Revenues 2,883,195

14 Federal Funds 1,557,735

15 Restricted Receipts 250,000

16 Other Funds

17 Rhode Island Capital Plan Funds

18 Rhode Island Coastal Storm Risk Study 500,000

19 Green Hill Pond 30,000

20 Grand Total – Coastal Resources Mgmt. Council 5,220,930

21 Transportation

22 Central Management

23 Federal Funds 5,955,305

24 Other Funds

25 Gasoline Tax 7,643,867

26 Total – Central Management 13,599,172

27 Management and Budget

28 Other Funds

29 Gasoline Tax 2,353,268

30 Infrastructure Engineering

31 Federal Funds 319,120,190

32 Restricted Receipts 3,007,550

1 Toll Revenue 25,000,000

2 Land Sale Revenue 2,595,391

3 Rhode Island Capital Plan Funds

4 Bike Path Facilities Maintenance 400,000

5 Highway Improvement Program 32,451,346

6 RIPTA - College Hill Bus Tunnel 800,000

7 RIPTA - Land and Buildings 390,000

8 RIPTA – Warwick Bus Hub 120,000

9 Total - Infrastructure Engineering 460,869,595

10 Infrastructure Maintenance

11 Other Funds

12 Gasoline Tax 42,305,617

13 Non-Land Surplus Property 50,000

14 Utility Access Permit Fees 500,000

15 Rhode Island Highway Maintenance Account 124,176,515

16 Rhode Island Capital Plan Funds

17 Maintenance Facilities Improvements 1,019,349

18 Welcome Center 150,000

19 Salt Storage Facilities 1,900,000

20 Maintenance - Equipment Replacement 1,500,000

21 Train Station Maintenance and Repairs 350,000

22 Total – Infrastructure Maintenance 171,951,481

23 Grand Total – Transportation 648,773,516

24 Statewide Totals

25 General Revenues 4,077,594,991

26 Federal Funds 3,325,364,065

27 Restricted Receipts 311,382,120

28 Other Funds 2,256,279,162

29 Statewide Grand Total 9,970,620,338

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

31 appropriation.

32 SECTION 3. Upon the transfer of any function of a department or agency to another

1 thereby; provided, however, in accordance with Rhode Island General Law, Section 42-6-5, when

2 the duties or administrative functions of government are designated by law to be performed within

3 a particular department or agency, no transfer of duties or functions and no re-allocation, in whole

4 or part, of appropriations and full-time equivalent positions to any other department or agency shall

5 be authorized.

6 SECTION 4. From the appropriation for contingency shall be paid such sums as may be

7 required at the discretion of the Governor to fund expenditures for which appropriations may not

8 exist. Such contingency funds may also be used for expenditures in the several departments and

9 agencies where appropriations are insufficient, or where such requirements are due to unforeseen

10 conditions or are non-recurring items of an unusual nature. Said appropriations may also be used

11 for the payment of bills incurred due to emergencies or to any offense against public peace and

12 property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as

13 amended. All expenditures and transfers from this account shall be approved by the Governor.

14 SECTION 5. The general assembly authorizes the state controller to establish the internal

15 service accounts shown below, and no other, to finance and account for the operations of state

16 agencies that provide services to other agencies, institutions and other governmental units on a cost

17 reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in

18 a businesslike manner, promote efficient use of services by making agencies pay the full costs

19 associated with providing the services, and allocate the costs of central administrative services

20 across all fund types, so that federal and other non-general fund programs share in the costs of

21 general government support. The controller is authorized to reimburse these accounts for the cost

22 of work or services performed for any other department or agency subject to the following

23 expenditure limitations:

24 Account Expenditure Limit

25 State Assessed Fringe Benefit Internal Service Fund 37,377,620

26 Administration Central Utilities Internal Service Fund 23,055,162

27 State Central Mail Internal Service Fund 6,290,947

28 State Telecommunications Internal Service Fund 3,450,952

29 State Automotive Fleet Internal Service Fund 12,740,920

30 Surplus Property Internal Service Fund 3,000

31 Health Insurance Internal Service Fund 252,444,854

32 State Fleet Revolving Loan Fund 273,786

Corrections Central Distribution Center Internal Service Fund

6,798,359

Correctional Industries Internal Service Fund

8,191,195

Secretary of State Record Center Internal Service Fund

969,729

Human Resources Internal Service Fund

14,847,653

DCAMM Facilities Internal Service Fund

40,091,033

Information Technology Internal Service Fund

44,113,005

7 SECTION 6. Legislative Intent - The General Assembly may provide a written "statement

8 of legislative intent" signed by the chairperson of the House Finance Committee and by the

9 chairperson of the Senate Finance Committee to show the intended purpose of the appropriations

10 contained in Section 1 of this Article. The statement of legislative intent shall be kept on file in the

11 House Finance Committee and in the Senate Finance Committee.

12 At least twenty (20) days prior to the issuance of a grant or the release of funds, which

13 grant or funds are listed on the legislative letter of intent, all department, agency and corporation

14 directors, shall notify in writing the chairperson of the House Finance Committee and the

15 chairperson of the Senate Finance Committee of the approximate date when the funds are to be

16 released or granted.

17 SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby

18 appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds

19 required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund

20 and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2020.

21 SECTION 8. Appropriation of Employment Security Funds -- There is hereby appropriated

22 pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed

23 for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2020.

24 SECTION 9. Appropriation of Lottery Division Funds -- There is hereby appropriated to

25 the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes of

26 paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2020.

27 SECTION 10. Appropriation of CollegeBoundSaver Funds – There is hereby appropriated

28 to the Office of the General Treasurer designated funds received under the CollegeBoundSaver

29 program for transfer to the Division of Higher Education Assistance within the Office of the

30 Postsecondary Commissioner to support student financial aid for the fiscal year ending June 30,

31 2020.

32 SECTION 11. Departments and agencies listed below may not exceed the number of full-

33 time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do

1 exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and

2 twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals

3 engaged in training, the completion of which is a prerequisite of employment. Provided, however,

4 that the Governor or designee, Speaker of the House of Representatives or designee, and the

5 President of the Senate or designee may authorize an adjustment to any limitation. Prior to the

6 authorization, the State Budget Officer shall make a detailed written recommendation to the

7 Governor, the Speaker of the House, and the President of the Senate. A copy of the recommendation

8 and authorization to adjust shall be transmitted to the chairman of the House Finance Committee,

9 Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

10 State employees whose funding is from non-state general revenue funds that are time

11 limited shall receive limited term appointment with the term limited to the availability of non-state

12 general revenue funding source.

13 FY 2020 FTE POSITION AUTHORIZATION

14 Departments and Agencies Full-Time Equivalent

15 Administration 647.7

16 Provided that no more than 417.0 of the total authorization would be limited to positions

17 that support internal service fund programs.

18 Business Regulation 161.0

19 Executive Office of Commerce 14.0

20 Labor and Training 390.7

21 Revenue 602.5

22 Legislature 298.5

23 Office of the Lieutenant Governor 8.0

24 Office of the Secretary of State 59.0

25 Office of the General Treasurer 89.0

26 Board of Elections 13.0

27 Rhode Island Ethics Commission 12.0

28 Office of the Governor 45.0

29 Commission for Human Rights 14.5

30 Public Utilities Commission 52.0

31 Office of Health and Human Services 186.0

32 Children, Youth, and Families 621.5

33 Health 499.6

34 Human Services 755.0

Office of Veterans Services

252.1

Office of Healthy Aging

31.0

Behavioral Healthcare, Developmental Disabilities, and Hospitals

1,189.4

Office of the Child Advocate

10.0

Commission on the Deaf and Hard of Hearing

4.0

Governor’s Commission on Disabilities

4.0

Office of the Mental Health Advocate

4.0

Elementary and Secondary Education

139.1

School for the Deaf

60.0

Davies Career and Technical School

126.0

Office of Postsecondary Commissioner

31.0

12 Provided that 1.0 of the total authorization would be available only for positions that are

13 supported by third-party funds, 8.0 would be available only for positions at the State’s Higher

14 Education Centers located in Woonsocket and Westerly, and 10.0 would be available only for

15 positions at the Nursing Education Center.

16 University of Rhode Island 2,555.0

17 Provided that 622.8 of the total authorization would be available only for positions that are

18 supported by third-party funds.

19 Rhode Island College 949.2

20 Provided that 76.0 of the total authorization would be available only for positions that are

21 supported by third-party funds.

22 Community College of Rhode Island 849.1

23 Provided that 89.0 of the total authorization would be available only for positions that are

24 supported by third-party funds.

25 Rhode Island State Council on the Arts 8.6

26 RI Atomic Energy Commission 8.6

27 Historical Preservation and Heritage Commission 15.6

28 Office of the Attorney General 239.1

29 Corrections 1,411.0

Environmental Management

394.0

Coastal Resources Management Council

30.0

Transportation

755.0

4 Total 15,074.7

5 No agency or department may employ contracted employees or employee services where

6 contract employees would work under state employee supervisors without determination of need

7 by the Director of Administration acting upon positive recommendations of the Budget Officer and

8 the Personnel Administrator and 15 days after a public hearing.

9 Nor may any agency or department contract for services replacing work done by state

10 employees at that time without determination of need by the Director of Administration acting upon

11 the positive recommendations of the Budget Officer and the Personnel Administrator and 30 days

12 after a public hearing.

13 State Employees whose funding is from non-state general revenue funds that are time

14 limited shall receive limited term appointment with the term limited to the availability of the non-

15 state general revenue funding source.

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

DOA – Hospital Consolidation

6,721,495

DOA – Pastore Center Medical Buildings

Asset Protection

1,600,000

2,600,000

3,475,000

4 DOA – Pastore Center Non-Medical Buildings

Asset Protection.

2,000,000

3,412,500

2,775,000

2,275,000

DOA – Security Measures/State Buildings

500,000

DOA – State House Renovations

877,169

428,000

900,000

DOA – State Office Reorganization &

Relocation

900,000

DOA – Washington County Gov. Center

150,000

500,000

DOA – William Powers Building

1,000,000

3,500,000

2,500,000

3,025,000

DOA – Zambarano Utilities & Infrastructu

re 2,750,000

550,000

1,300,000

1,800,000

EOC – Quonset Piers

5,000,000

EOC – Quonset Point Infrastructure

6,000,000

DCYF – Training School Asset Protection

1,250,000

200,000

DHS – Veterans Home Asset Protection

300,000

350,000

400,000

500,000

EL SEC – Davies School Asset Protection

150,000

EL SEC – Davies School HVAC

1,800,000

500,000

EL SEC – Met School Asset Protection

250,000

URI – Asset Protection

8,531,280

8,700,000

8,874,000

9,094,395

RIC – Asset Protection

4,150,000

4,233,000

4,318,000

4,426,657

RIC – Infrastructure Modernization

3,500,000

4,500,000

2,000,000

2,050,327

CCRI – Asset Protection

2,487,857

2,537,615

2,588,000

2,653,124

CCRI – Knight Campus Renewal

3,500,000

CCRI – Flanagan Campus Renewal

2,000,000

6,000,000

2,500,000

CCRI – Knight Campus Lab Renovation

1,300,000

CCRI – Data Cabling and Power Infrastruct

ure1,500,000

3,300,000

3,700,000

4,650,000

DOC – Asset Protection

4,900,000

4,743,022

4,290,000

4,000,000

DOC – Correctional Facilities Renovations

2,000,000

5,000,000

6,000,000

3,000,000

Military Staff – Asset Protection

700,000

800,000

Pier Development

1,000,000

1,250,000

DEM – Recreational Facilities Improv.

2,100,000

2,500,000

3,500,000

3,000,000

DEM – Natural Resources Office &

Visitor’s Center

2,000,000

3,000,000

DOT – Highway Improvement Program

29,951,346

34,951,346

27,200,000

DOT – Capital Equipment Replacement

1,500,000

DOT – Maintenance Facility Improv.

500,000

DOT – Bike Path Facilities Maintenance

400,000

DOT – Salt Storage Facilities Improv.

1,170,775

1,000,000

10 SECTION 13. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects. –

11 Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund project

12 appropriations shall be reappropriated in the ensuing fiscal year and made available for the same

13 purpose. However, any such reappropriations are subject to final approval by the General Assembly

14 as part of the supplemental appropriations act. Any unexpended funds of less than five hundred

15 dollars ($500) shall be reappropriated at the discretion of the State Budget Officer.

16 SECTION 14. For the Fiscal Year ending June 30, 2020, the Rhode Island Housing and

17 Mortgage Finance Corporation shall provide from its resources such sums as appropriate in support

18 of the Neighborhood Opportunities Program. The Corporation shall provide a report detailing the

19 amount of funding provided to this program, as well as information on the number of units of

20 housing provided as a result to the Director of Administration, the Chair of the Housing Resources

21 Commission, the Chair of the House Finance Committee, the Chair of the Senate Finance

22 Committee and the State Budget Officer.

23 SECTION 15. Notwithstanding any general laws to the contrary, the Rhode Island Housing

24 and Mortgage Finance Corporation shall transfer to the State Controller the sum of one million

25 five-hundred thousand dollars ($1,500,000) by June 30, 2020.

26 SECTION 16. Notwithstanding any general laws to the contrary, the Rhode Island

27 Infrastructure Bank shall transfer to the State Controller the sum of four million dollars

28 ($4,000,000) by June 30, 2020.

29 SECTION 17. Notwithstanding any general laws to the contrary, the Rhode Island Student

30 Loan Authority shall transfer to the State Controller the sum of one million five-hundred thousand

31 dollars ($1,500,000) by June 30, 2020.

32 SECTION 18. Notwithstanding any general laws to the contrary, the Quonset Development

33 Corporation shall transfer to the State Controller the sum of one million two hundred thousand

34 dollars ($1,200,000) by June 30, 2020.

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art.002/6/002/5/002/4/002/3/002/2/002/1

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1 ARTICLE 2 AS AMENDED

2 RELATING TO STATE FUNDS

3 SECTION 1. Section 5-20.7-15 of the General Laws in Chapter 5-20.7 entitled "Real Estate

4 Appraiser Certification Act" is hereby amended to read as follows:

5 5-20.7-15. Fees.

6 (a) The director is empowered and directed to establish a fee schedule for the application,

7 review, examination, and re-examination of applicants for certification and licensing and for the

8 issuance and renewal of certificates and for late fees; provided, that the annual fee for a residential

9 or general appraiser certificate is two hundred dollars ($200).

10 (b) There is hereby created a restricted receipt account within the general fund of the state

11 to be known as the real estate appraisers – registration – CLRA account. Fees collected pursuant to

12 § 5-20.7-15(a) shall be deposited into this account and be used to finance costs associated with real

13 estate appraisers registration. The restricted receipt account will be included in the budget of the

14 department of business regulation.

15 SECTION 2. Section 5-20.9-7 of the General Laws in Chapter 5-20.9 entitled "Real Estate

16 Appraisal Management Company Registration Act" is hereby amended to read as follows:

17 5-20.9-7. Initial registration, renewals, forms and fees.

18 (a) An applicant for registration as an appraisal management company shall submit to the

19 department an application on forms prescribed by the department and pay the required fee(s).

20 (b) The fees for initial registration, renewal, and late renewals shall be determined by the

21 director and established by regulation.

22 (c) There is hereby created a restricted receipt account within the general fund of the state

23 to be known as the appraisal management company – registration account. Fees collected pursuant

24 to § 5-20.9-7 shall be deposited into this account and be used to finance costs associated with

25 appraisal management company registration and operations. The restricted receipt account will be

26 included in the budget of the department of business regulation.

27 ~~(c)~~(d) Every appraisal management company that desires to renew a registration for the

28 next term shall apply for the renewal of the registration upon a form furnished by the director and

29 containing information that is required by this chapter. Renewal of a registration is subject to the

30 same provisions as the initial registration.

1 ~~(d)~~(e) The department shall receive applications for registration for initial licensing and

2 renewal and establish administrative procedures for processing applications and issuing and

3 renewing registrations.

4 ~~(e)~~(f) The department shall have the authority to assess and collect from registered entities,

5 the AMC federal registry fee in any amount assessed by the appraisal subcommittee of the Federal

6 Financial Institutions Examination Council or its successor entity, and transmit the fee to the

7 Federal Financial Institutions Examinations Council.

8 ~~(f)~~(g) A federally regulated appraisal management company operating in this state shall

9 report to the department any information necessary for the department to assess, collect, and

10 forward the AMC federal registry fee in any amount assessed by the appraisal subcommittee of the

11 Federal Financial Institutions Examination Council or its successor entity.

12 SECTION 3. Sections 22-13-1 and 22-13-4 of the General Laws in Chapter 22-13 entitled

13 "Auditor General" are hereby amended to read as follows:

14 22-13-1. Appointment -- Qualifications -- Oath -- Bond -- Office space -- Rules and

15 regulations.

16 (a) The auditor general shall be appointed by the joint committee on legislative services,

17 referred to in this chapter as "the committee." At the time of appointment, the auditor general shall

18 have had active experience in general accounting principles and practices in this state for a total

19 period of at least five (5) years. Vacancies in the office shall be filled in the same manner as the

20 original appointment.

21 (b)(1) The committee shall employ qualified persons necessary for the efficient operation

22 of the office and shall fix their duties and compensation and those persons shall be in the

23 unclassified service.

24 (2) No person shall be employed as an auditor who does not have adequate technical

25 training and proficiency, and a baccalaureate degree from a college or university, and no person

26 shall be employed or retained as legal advisor on either a full-time or a part-time basis who is not

27 a member of the Rhode Island bar.

28 (c) The auditor general before entering upon the duties of his or her office, shall take and

29 subscribe to the oath of office required of state officers by the state constitution.

30 (d) The auditor general shall be covered by the state's blanket position bond and

31 conditioned that he or she will well and faithfully discharge the duties of his or her office, promptly

32 report any delinquency or shortage discovered in any accounts and records audited by him or her,

33 and promptly pay over and account for any and all funds that shall come into his or her hands as

34 auditor.

1 (e)(1) All auditors employed by the auditor general shall be covered by a blanket position

2 bond. The bonds or bond shall meet and contain the same conditions as are required in the bond of

3 the auditor general.

4 (2) All bonds shall be filed with the committee. If an auditor is not covered in the blanket

5 position bond, an individual bond shall be filed within thirty (30) days after the employee received

6 notice of his or her employment. The amount of the bond shall be determined by the auditor general.

7 Failure to file an individual bond or to be covered in the blanket position bond shall terminate his

8 or her employment.

9 (f) The annual premium of all bonds shall be paid out of any funds provided for the

10 operation of the office.

11 (g) The auditor general shall be provided with suitable quarters, but to facilitate auditing

12 and to eliminate unnecessary traveling, the joint committee on legislative services may establish

13 divisions, including a performance investigation division, and assign auditors to each division and

14 determine their duties and the areas of the state to be served by the respective divisions. The auditor

15 general shall be provided and furnished with any space that may be necessary to carry out his or

16 her functions in other areas of the state.

17 (h) The auditor general may make and enforce reasonable rules and regulations necessary

18 to facilitate audits and investigations which the joint committee on legislative services authorizes

19 the auditor general to perform. This includes the post-audit of the financial transactions and

20 accounts of the state that is provided for by the finance committee of the house of representatives.

21 (i) No full-time employee of the office of auditor general shall serve as an executive,

22 officer, or employee of any political party committee, organization, or association. Neither the

23 auditor general nor any employee of the auditor general shall become a candidate for election to

24 public office unless he or she shall first resign from his or her office or employment.

25 22-13-4. Definitions -- Duties of auditor general -- Investigations by committee.

26 (a) The following words and phrases have the following meanings unless a different

27 meaning is required by the context:

28 (1) "Performance audit" means an examination of the effectiveness of administration and

29 its efficiency and adequacy in terms of the program of the state agency authorized by law to be

30 performed. The "performance audit" may also include a review of the agency in terms of

31 compliance with federal and state laws and executive orders relating to equal employment

32 opportunities and the set aside for minority businesses.

33 (2) "Political subdivision" means a separate agency or unit of local government created or

34 established by law and includes, but is not limited to, the following and the officers of the following:

1 authority, board, branch, bureau, city, commission, council, consolidated government, county,

2 department, district, institution, metropolitan government, municipality, office, officer, public

3 corporation, town, or village.

4 (3) "Post-audit" means an audit made at some point after the completion of a transaction

5 or a group of transactions.

6 (4) "State agency" means a separate agency or unit of state government created or

7 established by law and includes, but is not limited to, the following and the officers of the following:

8 authority, board, branch, bureau, commission, council, department, division, institution, office,

9 officer, or public corporation, as the case may be, except any agency or unit within the legislative

10 branch of state government.

11 (b) The auditor general shall make post-audits and performance audits of public records

12 and perform related duties as prescribed by the committee. He or she shall perform his or her duties

13 independently but under the general policies established by the committee.

14 (c)(1) The auditor general shall have the power and duty to make post-audits and

15 performance audits of the accounts and records of all state agencies, including the board of

16 governors for higher education and the board of regents for elementary and secondary education,

17 as defined in this section.

18 (2) The auditor general shall have the power, when requested by a majority of the

19 committee, to make post-audits and performance audits of accounts and records of any other public

20 body or political subdivision, or any association or corporation created or established by any

21 general or special law of the general assembly, or any person, association, or corporation to which

22 monies of the state have been appropriated by the general assembly. Nothing in the subdivision

23 shall be construed to apply to public utilities.

24 (3) The auditor general shall perform or have performed annually a complete post-audit of

25 the financial transactions and accounts of the state when approved by the chairperson of the joint

26 committee on legislative services.

27 (d) The committee may at any time, without regard to whether the legislature is then in

28 session or out of session, take under investigation any matter within the scope of an audit either

29 completed or then being conducted by the auditor general, and in connection with that investigation

30 may exercise the powers of subpoena vested by law in a standing committee of the legislature.

31 (e)(1) The auditor general may, when directed by the committee, designate and direct any

32 auditor employed by him or her to audit any accounts or records within the power of the auditor

33 general to audit. The auditor shall report his or her findings for review by the auditor general, who

34 shall prepare the audit report.

1 (2) The audit report shall make special mention of:

2 (i) Any violation of the laws within the scope of the audit; and

3 (ii) Any illegal or improper expenditure, any improper accounting procedures, all failures

4 to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and

5 defalcations.

6 (3) At the conclusion of the audit, the auditor general or his or her designated representative

7 will conduct an exit conference with the official whose office or department is subject to audit and

8 submit to him or her a draft report which includes a list of findings and recommendations. If an

9 official is not available for the exit conference, delivery of the draft report is presumed to be

10 sufficient notice. The official must submit to the auditor general within sixty (60) days after the

11 receipt of the draft report his or her written reply as to:

12 (i) Acceptance and plan of implementation of each recommendation;

13 (ii) Reason(s) for non-acceptance of a recommendation.

14 (4) Should the auditor general determine that the written explanation or rebuttal of the

15 official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable,

16 report his or her findings to the joint committee on legislative services.

17 (f) A copy of the audit report shall be submitted to each member of the committee.

18 (g) If the auditor general discovers any errors, unusual practices, or any other discrepancies

19 in connection with his or her audit or post-audit of a state agency or state officers, the auditor

20 general shall, as soon as practicable, notify in writing the president of the senate and the speaker of

21 the house of representatives, respectively.

22 (h) The auditor general shall annually review the capital development program to

23 determine: (1) the status of all projects included in the program; (2) whether the funds are being

24 properly expended for their intended purposes; (3) the completion date or projected completion

25 date of the projects; (4) which projects require professional services and to determine the identity

26 of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall be

27 annually submitted to the general assembly on the first Wednesday in February.

28 (i) The auditor general shall supervise, coordinate, and/or conduct investigations and

29 inspections or oversight reviews with the purpose of preventing and detecting fraud, waste, abuse

30 and mismanagement in the expenditure of public funds.

31 SECTION 4. Section 23-77-2 of the General Laws in Chapter 23-77 entitled "Healthcare

32 Information Technology and Infrastructure Development Fund" is hereby amended to read as

33 follows:

34 23-77-2. Establishment of the healthcare information technology and infrastructure

1 development fund.

2 (a) There is established in the department of health, the healthcare information technology

3 and infrastructure development fund to be administered by the director of the department of health

4 for the purpose of promoting the development and adoption of healthcare information technologies

5 designed to improve the quality, safety and efficiency of healthcare services and the security of

6 individual patient data.

7 (b) Moneys in the fund shall be used for projects authorized by the director of health and

8 may be expended by contract, loan, or grant, to develop, maintain, expand, and improve the state's

9 healthcare information technology infrastructure and to assist healthcare facilities and health

10 service providers in adopting healthcare information technologies shown to improve healthcare

11 quality, safety or efficiency. Such projects shall incorporate the goal of maintaining the security

12 and confidentiality of individual patient data, and separate projects for that purpose may also be

13 authorized from the fund. The director of health shall develop criteria for the selection of projects

14 to be funded from the fund in consultation with the healthcare information technology and

15 infrastructure advisory committee created in § 23-77-4.

16 (c) Any moneys provided by loan shall be disbursed for periods not exceeding twenty-five

17 (25) years and at an annual rate of interest not exceeding five percent (5%).

18 (d) The director of the department of health, in consultation with the state healthcare

19 information technology advisory committee, shall establish criteria for eligible healthcare

20 information technology and infrastructure projects to be funded under this chapter.

21 (e) The healthcare information technology and infrastructure development fund, as herein

22 described, shall constitute a restricted receipt account within the general fund of the state and

23 housed within the budget of the department of health. The short title of the restricted receipt

24 account shall henceforth be designated as “health information technology”.

25 SECTION 5. ~~Section~~ Sections 35-3-8 and 35-3-24 of the General Laws in Chapter 35-3

26 entitled "State Budget" is hereby amended to read as follows:

27 35-3-8. Recommendations to meet deficiencies -- Submission of appropriation bills.

28 (a) The budget shall also contain the recommendations of the governor to the general

29 assembly for new taxes, loans, or other appropriate actions to meet any estimated deficiency for

30 the ensuing fiscal year. It shall also be accompanied by a bill or bills for all proposed appropriations.

31 (b) In the event that any departments of state government are expected to incur a deficiency

32 within the current fiscal year, the governor shall, on or before the third Thursday in January each

33 year, submit a request for supplemental appropriations on their behalf. Provided, however, in those

34 years that a new governor is inaugurated, the new governor shall submit the request on or before

1 the first Thursday in February. In the event that, prior to or subsequent to the request, the governor

2 determines that additional deficiencies are expected to be incurred, the governor shall submit

3 requests for additional appropriations upon notice of these deficiencies.

4 (c) The request presented to the general assembly shall identify the proposed increases and

5 decreases to the original amounts provided in the annual appropriation act provided, that no action

6 shall be taken which will cause an excess of appropriations for revenue expenditures over expected

7 revenue receipts.

8 35-3-24. Control of state spending.

9 (a) All department and agency heads and their employees are responsible for ensuring that

10 financial obligations and expenditures for which they have responsibility do not exceed amounts

11 appropriated and are spent in accordance with state laws.

12 (b) Persons with the authority to obligate the state contractually for goods and services

13 shall be designated in writing by department and agency heads.

14 (c) In the event of an obligation, encumbrance, or expenditure in excess of amounts

15 appropriated, the department or agency head with oversight responsibility shall make a written

16 determination of the amount and the cause of the overobligation or overexpenditure, the person(s)

17 responsible, and corrective actions taken to prevent reoccurrence. The plan of corrective actions

18 contained within the report shall detail an appropriate plan to include, but not limited to, such issues

19 as the implementation of waiting lists, pro-rata reduction in payments and changes in eligibility

20 criteria as methods to address the shortfall. The report will be filed within thirty (30) days of the

21 discovery of the overobligation or overexpenditure with the budget officer, the controller, the

22 auditor general, and the chairpersons of the house and senate finance committees.

23 (d) In the event a quarterly report demonstrates an obligation, encumbrance, or expenditure

24 in excess of amounts appropriated, the department or agency head with oversight responsibility

25 shall file monthly budget reports with the chairpersons of the house and senate finance committees

26 for the remainder of the fiscal year. The monthly budget reports shall detail steps taken towards

27 corrective actions and other measures to bring spending in line with appropriations. In addition, the

28 budget officer and controller shall ensure that the department’s or agency’s obligations,

29 encumbrances, and expenditures for the remainder of the fiscal year result in the department or

30 agency ending the fiscal year within amounts appropriated.

31 (e) The controller shall not authorize payments for additional staff, contracts, or purchases

32 for any department or agency not projected to end a fiscal year within amounts appropriated unless

33 necessitated by immediate health and safety reasons, which shall be documented upon discovery

34 and reported, along with anticipated or actual expenditures, to the chairpersons of the house and

1 senate finance committees within fifteen (15) days.

2 ~~(d)~~(f) A state employee who has knowingly and willingly encumbered, obligated, or

3 authorized the expenditure of state funds in excess of amounts appropriated for those purposes or

4 entered into contracts without proper authorization may be placed on disciplinary suspension

5 without pay for up to thirty (30) days in accordance with § 36-4-36.

6 ~~(e)~~(g) A state employee who knowingly, willfully, and repeatedly authorizes actions

7 resulting in encumbrances or spending of state funds in excess of amounts appropriated may be

8 fined up to one thousand dollars ($1,000) and/or terminated from employment.

9 (h) Upon receipt of any budgetary information indicating an obligation, encumbrance, or

10 expenditure in excess of the amounts appropriated, the chairperson of the house or senate finance

11 committee may request a written report to be submitted by the director of administration within ten

12 (10) calendar days. The report shall indicate if the obligation, encumbrance, or expenditure in

13 excess of the amounts appropriated resulted in any disciplinary action or other penalty in

14 accordance with subsection (f) or (g). If not, the report shall explain why no disciplinary action or

15 other penalty was imposed in accordance subsection (f) or (g).

16 SECTION 6. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"

17 is hereby amended to read as follows:

18 35-4-27. Indirect cost recoveries on restricted receipt accounts.

19 Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all

20 restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there

21 shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions

22 from non-profit charitable organizations; (2) From the assessment of indirect cost-recovery rates

23 on federal grant funds; or (3) Through transfers from state agencies to the department of

24 administration for the payment of debt service. These indirect cost recoveries shall be applied to all

25 accounts, unless prohibited by federal law or regulation, court order, or court settlement. The

26 following restricted receipt accounts shall not be subject to the provisions of this section:

27 Executive Office of Health and Human Services

28 Organ Transplant Fund

29 HIV Care Grant Drug Rebates

30 Health System Transformation Project

31 Department of Human Services

32 Veterans' home -- Restricted account

33 Veterans' home -- Resident benefits

34 Pharmaceutical Rebates Account

1 Demand Side Management Grants

2 Veteran's Cemetery Memorial Fund

3 Donations -- New Veterans' Home Construction

4 Department of Health

5 Pandemic medications and equipment account

6 Miscellaneous Donations/Grants from Non-Profits

7 State Loan Repayment Match

8 Healthcare Information Technology

9 Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

10 Eleanor Slater non-Medicaid third-party payor account

11 Hospital Medicare Part D Receipts

12 RICLAS Group Home Operations

13 Commission on the Deaf and Hard of Hearing

14 Emergency and public communication access account

15 Department of Environmental Management

16 National heritage revolving fund

17 Environmental response fund II

18 Underground storage tanks registration fees

19 De Coppet Estate Fund

20 Rhode Island Historical Preservation and Heritage Commission

21 Historic preservation revolving loan fund

22 Historic Preservation loan fund -- Interest revenue

23 Department of Public Safety

24 E-911 Uniform Emergency Telephone System

25 Forfeited property -- Retained

26 Forfeitures -- Federal

27 Forfeited property -- Gambling

28 Donation -- Polygraph and Law Enforcement Training

29 Rhode Island State Firefighter's League Training Account

30 Fire Academy Training Fees Account

31 Attorney General

32 Forfeiture of property

33 Federal forfeitures

34 Attorney General multi-state account

1 Forfeited property -- Gambling

2 Department of Administration

3 OER Reconciliation Funding

4 Health Insurance Market Integrity Fund

5 RI Health Benefits Exchange

6 Information Technology Investment Fund

7 Restore and replacement -- Insurance coverage

8 Convention Center Authority rental payments

9 Investment Receipts -- TANS

10 OPEB System Restricted Receipt Account

11 Car Rental Tax/Surcharge-Warwick Share

12 Executive Office of Commerce

13 Housing Resources Commission Restricted Account

14 Department of Revenue

15 DMV Modernization Project

16 Jobs Tax Credit Redemption Fund

17 Legislature

18 Audit of federal assisted programs

19 Department of Children, Youth and Families

20 Children's Trust Accounts -- SSI

21 Military Staff

22 RI Military Family Relief Fund

23 RI National Guard Counterdrug Program

24 Treasury

25 Admin. Expenses -- State Retirement System

26 Retirement -- Treasury Investment Options

27 Defined Contribution -- Administration - RR

28 Violent Crimes Compensation -- Refunds

29 Treasury Research Fellowship

30 Business Regulation

31 Banking Division Reimbursement Account

32 Office of the Health Insurance Commissioner Reimbursement Account

33 Securities Division Reimbursement Account

34 Commercial Licensing and Racing and Athletics Division Reimbursement Account

1 Insurance Division Reimbursement Account

2 Historic Preservation Tax Credit Account

3 Judiciary

4 Arbitration Fund Restricted Receipt Account

5 Third-Party Grants

6 RI Judiciary Technology Surcharge Account

7 Department of Elementary and Secondary Education

8 Statewide Student Transportation Services Account

9 School for the Deaf Fee-for-Service Account

10 School for the Deaf -- School Breakfast and Lunch Program

11 Davies Career and Technical School Local Education Aid Account

12 Davies -- National School Breakfast & Lunch Program

13 School Construction Services

14 Office of the Postsecondary Commissioner

15 Higher Education and Industry Center

16 Department of Labor and Training

17 Job Development Fund

18 SECTION 7. Section 39-1-62 of the General Laws in Chapter 39-1 entitled "Public Utilities

19 Commission" is hereby repealed.

20 ~~39-1-62. Geographic information system (GIS) and technology fund.~~

21 ~~(a) Preamble. To allow Rhode Island emergency and first response agencies to associate~~

22 ~~latitude and longitude coordinates provided by wireless carriers with physical locations throughout~~

23 ~~the state, the agency must establish and maintain a GIS database of street addresses and landmarks.~~

24 ~~The database will allow local emergency response personnel to dispatch police, fire, and rescue~~

25 ~~personnel to a specific address or landmark of a cellular caller in the event the caller is unaware of~~

26 ~~his or her location, or is physically unable to communicate it. Because more than half of the 530,000~~

27 ~~9-1-1 phone calls received in 2003 came from cellular phones, it is critical that the GIS database~~

28 ~~be developed and maintained in order to improve caller location identification and reduce~~

29 ~~emergency personnel response times.~~

30 ~~(b) Definitions. As used in this section, the following terms have the following meanings:~~

31 ~~(1) "System" means emergency 911 uniform telephone system.~~

32 ~~(2) "Agency" means Rhode Island 911 emergency telephone system.~~

33 ~~(3) "Division" means the division of public utilities and carriers.~~

34 ~~(4) "GIS and technology fund" means the programs and funding made available to the~~

1 ~~emergency 911 uniform telephone system to assist in paying the costs of the GIS database~~

2 ~~development project and GIS systems maintenance, which will enable the system to locate cellular~~

3 ~~phone callers by geocoding all addresses and landmarks in cities and towns throughout the state.~~

4 ~~GIS and technology fund also includes programs and funding to create system redundancy, fund~~

5 ~~the construction of a new E-911 facility, and operate and maintain other state-of-the-art equipment~~

6 ~~in public safety agencies.~~

7 ~~(5) "Prepaid wireless telecommunications service" means a wireless telecommunications~~

8 ~~service that allows a caller to dial 911 to access the 911 system, which service must be paid for in~~

9 ~~advance and is sold in predetermined units or dollars of which the number declines with use in a~~

10 ~~known amount.~~

11 ~~(c) Purpose. The purpose of the GIS and technology fund shall be to:~~

12 ~~(1) Implement and maintain a geographic information system database to assist in locating~~

13 ~~wireless phone callers for emergency purposes in a manner consistent and in coordination with the~~

14 ~~Rhode Island geographic information system administered by the division of planning as provided~~

15 ~~for in § 42-11-10(g)(3);~~

16 ~~(2) Create system redundancy to ensure the reliability of 9-1-1 service to the public;~~

17 ~~(3) Operate and maintain other state-of-the-art equipment in public safety agencies;~~

18 ~~(4) Fund the construction of a new E-911 facility; and~~

19 ~~(5) Encourage the development of opportunities for and agreements on the sharing and~~

20 ~~integration of services across municipalities in the implementation of the E-911 uniform emergency~~

21 ~~telephone system.~~

22 ~~(d) Authority. The agency shall establish, by rule or regulation, an appropriate funding~~

23 ~~mechanism to recover from the general body of ratepayers the costs of funding GIS and technology~~

24 ~~projects.~~

25 ~~(1) The general assembly shall determine the amount of a monthly surcharge to be levied~~

26 ~~upon each wireless instrument, device, or means including cellular, telephony, internet, voice over~~

27 ~~internet protocol (VoIP), satellite, computer, radio, communication, data, or any other wireless~~

28 ~~instrument, device, or means that has access to, connects with, interfaces with, or is capable of~~

29 ~~delivering two-way interactive communications services to the Rhode Island uniform emergency~~

30 ~~telephone system. Prepaid wireless E911 telecommunications services shall not be included in this~~

31 ~~act, but shall be governed by chapter 21.2 of this title. The agency will provide the general assembly~~

32 ~~with information and recommendations regarding the necessary level of funding to effectuate the~~

33 ~~purposes of this article. The surcharge shall be billed monthly by each wireless telecommunications~~

34 ~~services provider as defined in § 39-21.1-3, which shall not include prepaid wireless~~

1 ~~telecommunications service, and shall be payable to the wireless telecommunications services~~

2 ~~provider by the subscriber of the telecommunications services. Each telecommunication services~~

3 ~~provider shall establish a special (escrow) account to which it shall deposit on a monthly basis the~~

4 ~~amounts collected as a surcharge under this section. The money collected by each wireless~~

5 ~~telecommunication services provider shall be transferred within sixty (60) days after its inception~~

6 ~~of wireless, cellular, telephony, voice over internet protocol (VoIP), satellite, computer, internet,~~

7 ~~or communications, information, or data services in this state and every month thereafter. Any~~

8 ~~money not transferred in accordance with this paragraph shall be assessed interest at the rate set~~

9 ~~forth in § 44-1-7 from the date the money should have been transferred. State, local, and quasi-~~

10 ~~governmental agencies shall be exempt from the surcharge. The surcharge shall be deposited in a~~

11 ~~restricted receipt account, hereby created within the agency and known as the GIS and technology~~

12 ~~fund, to pay any and all costs associated with the provisions of subsection (c). Beginning July 1,~~

13 ~~2007, the surcharge shall be deposited in the general fund as general revenues to pay any and all~~

14 ~~costs associated with the provisions of subsection (c). The GIS and technology fund restricted-~~

15 ~~receipt account shall be terminated June 30, 2008. The amount of the surcharge under this section~~

16 ~~shall not exceed thirty-five cents ($.35) per wireless phone.~~

17 ~~(2) The surcharge is hereby determined to be twenty-six cents ($.26) per wireless phone,~~

18 ~~cellular, telephony, voice over internet protocol (VoIP), satellite, computer, data or data only~~

19 ~~wireless lines or internet communication or data instrument, device, or means that has access to,~~

20 ~~connects with, activates or interfaces with or any combination of the above, with the Rhode Island~~

21 ~~E-911 uniform emergency telephone system per month and shall be in addition to the wireless~~

22 ~~surcharge charged under § 39-21.1-14. The twenty-six cents ($.26) is to be billed to all wireless~~

23 ~~telecommunication service providers' subscribers upon the inception of services.~~

24 ~~(3) The amount of the surcharge shall not be subject to the sales and use tax imposed under~~

25 ~~chapter 18 of title 44 nor be included within the gross earnings of the telecommunications~~

26 ~~corporation providing telecommunications service for the purpose of computing the tax under~~

27 ~~chapter 13 of title 44.~~

28 ~~(4) [Deleted by P.L. 2010, ch. 23, art. 9, § 10].~~

29 ~~(e) Administration. The division of taxation shall collect monthly from the wireless~~

30 ~~telecommunications service providers as defined in § 39-21.1-3, and which shall not include~~

31 ~~prepaid wireless telecommunications service, the amounts of the surcharge collected from their~~

32 ~~subscribers. The division of taxation shall deposit such collections in the general fund as general~~

33 ~~revenues for use in developing and maintaining the geographic information system database,~~

34 ~~creating system redundancy, funding the construction of a new E-911 facility, and operating and~~

1 ~~maintaining other state-of-the-art equipment for public safety agencies. The agency is further~~

2 ~~authorized and encouraged to seek matching funds from all local, state, and federal public or private~~

3 ~~entities and shall coordinate its activities and share all information with the state division of~~

4 ~~planning.~~

5 ~~(f) Effective date. The effective date of assessment for the GIS and technology fund shall~~

6 ~~be July 1, 2004.~~

7 ~~(g) Nothing in this section shall be construed to constitute rate regulation of wireless~~

8 ~~communications services carriers, nor shall this section be construed to prohibit wireless~~

9 ~~communications services carriers from charging subscribers for any wireless service or feature.~~

10 ~~(h) Except as otherwise provided by law, the agency shall not use, disclose, or otherwise~~

11 ~~make available call location information for any purpose other than as specified in subsection (c).~~

12 ~~(i) The attorney general shall, at the request of the E-911 uniform emergency telephone~~

13 ~~system division, or any other agency that may replace it, or on its own initiative, commence judicial~~

14 ~~proceedings in the superior court against any telecommunication services provider as defined in §~~

15 ~~39-21.1-3(12) providing communication services to enforce the provisions of this chapter.~~

16 SECTION 8. Section 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911

17 Emergency Telephone Number Act" is hereby amended to read as follows:

18 39-21.1-14. ~~Emergency services and first response surcharge Emergency services~~ E-

19 911 surcharge and first response surcharge.

20 (a)(i) A monthly E-911 surcharge of ~~one dollar ($1.00)~~ fifty cents ($.50) cents is hereby

21 levied upon each residence and business telephone line or trunk or path and data, telephony,

22 internet, voice over internet protocol (VoIP) wireline, line, trunk or path in the state including PBX

23 trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface

24 number or extension number or similarly identifiable line, trunk, or path to or from a digital network

25 (such as, but not exclusive of, integrated services digital network (ISDN), Flexpath, or comparable

26 digital private branch exchange, or connecting to or from a customer-based or dedicated telephone

27 switch site (such as, but not exclusive of, a private branch exchange (PBX)), or connecting to or

28 from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system

29 but exclusive of trunks and lines provided to wireless communication companies) that can access

30 to, connect with, or interface with the Rhode Island E-911 uniform emergency telephone system

31 (RI E-911). In each instance where a surcharge is levied pursuant to this subsection (a)(i) above

32 there shall also be a monthly first response surcharge of fifty cents ($.50). The ~~surcharge~~ surcharges

33 shall be billed by each telecommunication services provider at the inception of services and shall

34 be payable to the telecommunication services provider by the subscriber of the services.

1 (ii) A monthly E-911 surcharge of ~~one dollar ($1.00)~~ fifty cents ($.50) is hereby levied

2 ~~effective July 1, 2002~~, on each wireless instrument, device, or means including prepaid, cellular,

3 telephony, internet, voice over internet protocol (VoIP), satellite, computer, radio, communication,

4 data or data only wireless lines or any other wireless instrument, device, or means that has access

5 to, connects with, or activates or interfaces or any combination thereof with the E 9-1-1 uniform

6 emergency telephone system. In each instance where a surcharge is levied pursuant to this

7 subsection (a)(ii) above there shall also be a monthly first response surcharge of seventy-five cents

8 ($.75). The ~~surcharge~~ surcharges ~~shall be in addition to the surcharge collected under § 39-1-62~~

9 ~~and~~ shall be billed by each telecommunication services provider and shall be payable to the

10 telecommunication services provider by the subscriber. Prepaid wireless telecommunications

11 services shall not be included in this act, but shall be governed by chapter 21.2 of this title. The E-

12 911 uniform emergency telephone system shall establish, by rule or regulation, an appropriate

13 funding mechanism to recover from the general body of ratepayers this surcharge.

14 (b) The amount of the ~~surcharge~~ surcharges shall not be subject to the tax imposed under

15 chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for the

16 purpose of computing the tax under chapter 13 of title 44.

17 (c) Each telephone common carrier and each telecommunication services provider shall

18 establish a special account to which it shall deposit on a monthly basis the amounts collected as a

19 ~~surcharge~~ surcharges under this section.

20 (d) The money collected by each telecommunication services provider shall be transferred

21 within sixty (60) days after its inception of wireline, wireless, prepaid, cellular, telephony, voice

22 over internet protocol (VoIP), satellite, computer, internet, or communications services in this state

23 and every month thereafter, to the division of taxation, together with the accrued interest ~~, and~~. The

24 E-911 surcharge shall be deposited in ~~the general fund as general revenue~~ a restricted receipt

25 account and used solely for the operation of the E 9-1-1 uniform emergency telephone system;. The

26 first response surcharge shall be deposited in the general fund; provided, however, that ~~beginning~~

27 ~~July 1,~~ ~~2015~~, ten percent (10%) of ~~such~~ money collected from the first response surcharge shall be

28 deposited in the information technology investment fund established pursuant to § 42-11-2.5. Any

29 money not transferred in accordance with this paragraph shall be assessed interest at the rate set

30 forth in § 44-1-7 from the date the money should have been transferred.

31 (e) Every billed subscriber-user shall be liable for any surcharge imposed under this section

32 until it has been paid to the telephone common carrier or telecommunication services provider. Any

33 surcharge shall be added to and ~~may~~ shall be stated separately in the billing by the telephone

34 common carrier or telecommunication services provider and shall be collected by the telephone

1 common carrier or telecommunication services provider.

2 (f) Each telephone common carrier and telecommunication services provider shall annually

3 provide the E 9-1-1 uniform emergency telephone system division or any other agency that may

4 replace it, with a list of amounts uncollected together with the names and addresses of its

5 subscriber-users who can be determined by the telephone common carrier or telecommunication

6 services provider to have not paid the E-911 surcharge.

7 (g) Included within, but not limited to, the purposes for which the money collected from

8 the E-911 surcharge may be used are rent, lease, purchase, improvement, construction,

9 maintenance, repair, and utilities for the equipment and site or sites occupied by the ~~state's first~~

10 ~~responder and emergency services agencies~~ E-911 uniform emergency telephone system; salaries,

11 benefits, and other associated personnel costs; acquisition, upgrade, or modification of PSAP

12 equipment to be capable of receiving E 9-1-1 information, including necessary computer hardware,

13 software, and database provisioning, addressing, and non-recurring costs of establishing emergency

14 services; network development, operation, and maintenance; database development, operation, and

15 maintenance; on-premise equipment maintenance and operation; training emergency service

16 personnel regarding use of E 9-1-1; educating consumers regarding the operations, limitations, role,

17 and responsible use of E 9-1-1; reimbursement to telephone common carriers or telecommunication

18 services providers of rates or recurring costs associated with any services, operation,

19 administration, or maintenance of E 9-1-1 services as approved by the division; reimbursement to

20 telecommunication services providers or telephone common carriers of other costs associated with

21 providing E 9-1-1 services, including the cost of the design, development, and implementation of

22 equipment or software necessary to provide E 9-1-1 service information to PSAP's, as approved by

23 the division.

24 (h) [Deleted by P.L. 2000, ch. 55, art. 28, § 1.]

25 (i) Nothing in this section shall be construed to constitute rate regulation of wireless

26 communication services carriers, nor shall this section be construed to prohibit wireless

27 communication services carriers from charging subscribers for any wireless service or feature.

28 (j) [Deleted by P.L. 2006, ch. 246, art. 4, § 1].

29 SECTION 9. Sections 39-21.2-2, 39-21.2-4 and 39-21.2-5 of the General Laws in Chapter

30 39-21.2 entitled "Prepaid Wireless Charge Act" are hereby amended to read as follows:

31 39-21.2-2. Findings.

32 The legislature finds that:

33 (1) Maintaining effective and efficient emergency services ~~and first responder agencies~~

34 across the state benefits all citizens;

1 (2) 911 fees imposed upon the consumers of telecommunications services that have the

2 ability to dial 911 are an important funding mechanism to assist state and local governments with

3 the deployment of emergency services to the citizens of this state;

4 (3) Prepaid wireless telecommunication services are an important segment of the

5 telecommunications industry and have proven particularly attractive to low-income, low-volume

6 consumers;

7 (4) Unlike traditional telecommunications services, prepaid wireless telecommunications

8 services are not sold or used pursuant to term contracts or subscriptions, and monthly bills are not

9 sent to consumers by prepaid wireless telecommunication services providers or retail vendors;

10 (5) Prepaid wireless consumers have the same access to emergency 911 services from their

11 wireless devices as wireless consumers on term contracts, and prepaid wireless consumers benefit

12 from the ability to access the 911 system by dialing 911;

13 (6) Consumers purchase prepaid wireless telecommunication services at a wide variety of

14 general retail locations and other distribution channels, not just through service providers;

15 (7) Such purchases are made on a "cash-and-carry" or "pay-as-you-go" basis from retailers;

16 and

17 (8) To ensure equitable contributions to the funding of emergency systems from consumers

18 of prepaid wireless telecommunication services, the collection and payment obligation of charges

19 to support ~~the state's first responder and emergency services~~ E-911 should be imposed upon the

20 consumer's retail purchase of the prepaid wireless telecommunication service and should be in the

21 form of a single, statewide charge that is collected once at the time of purchase directly from the

22 consumer, remitted to the state, and distributed to E911 authorities pursuant to state law.

23 39-21.2-4. ~~Emergency services and first response surcharge~~ E-911 surcharge.

24 (a) Amount of charge. The prepaid wireless E-911 charge is hereby levied at the rate of

25 two and one-half percent (2.5%) per retail transaction or, on and after the effective date of an

26 adjusted amount per retail transaction that is established under subsection (f) of this section, such

27 adjusted amount.

28 (b) Collection of charge. The prepaid wireless charge shall be collected by the seller from

29 the consumer with respect to each retail transaction occurring in this state. The amount of the

30 prepaid wireless charge shall be either separately stated on an invoice, receipt, or other similar

31 document that is provided to the consumer by the seller, or otherwise disclosed to the consumer.

32 (c) Application of charge. For purposes of subsection (b) of this section, a retail transaction

33 that is effected in person by a consumer at a business location of the seller shall be treated as

34 occurring in this state if that business location is in this state, and any other retail transaction shall

1 be treated as occurring in this state if the retail transaction is treated as occurring in this state for

2 purposes of chapter 18 of title 44.

3 (d) Liability for charge. The prepaid wireless charge is the liability of the consumer and

4 not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless

5 charges that the seller collects from consumers as provided in § 39-21.2-5, including all such

6 charges that the seller is deemed to collect where the amount of the charge has not been separately

7 stated on an invoice, receipt, or other similar document provided to the consumer by the seller.

8 (e) Exclusion of charge from base of other taxes and fees. The amount of the prepaid

9 wireless charge that is collected by a seller from a consumer, if such amount is separately stated on

10 an invoice, receipt, or other similar document provided to the consumer by the seller, shall not be

11 included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this

12 state, any political subdivision of this state, or any intergovernmental agency, including, but not

13 limited to, the tax imposed under chapter 18 of title 44 nor be included within the telephone

14 common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

15 ~~(f) Re-setting of charge. The prepaid wireless charge shall be proportionately increased or~~

16 ~~reduced, as applicable, upon any change to the state charge on postpaid wireless~~

17 ~~telecommunications service under § 39-21.1-14 or § 39-1-62(d)(2). The adjusted amount shall be~~

18 ~~determined by dividing the sum of the surcharges imposed under § 39-21.1-14 and § 39-1-62(d)(2)~~

19 ~~by fifty dollars ($50.00). Such increase or reduction shall be effective on the effective date of the~~

20 ~~change to the postpaid charge or, if later, the first day of the first calendar month to occur at least~~

21 ~~sixty (60) days after the enactment of the change to the postpaid charge. The division shall provide~~

22 ~~not less than thirty (30) days of advance notice of such increase or reduction on the division's~~

23 ~~website.~~

24 ~~(g)~~(f) Bundled transactions. When prepaid wireless telecommunications service is sold

25 with one or more other products or services for a single, non-itemized price, then the percentage

26 specified in subsection (a) of this section shall apply to the entire non-itemized prices unless the

27 seller elects to apply such percentage (1) If the amount of prepaid wireless telecommunications

28 service is disclosed to the consumer as a dollar amount, such dollar amount, or (2) If the retailer

29 can identify the portion of the price that is attributable to the prepaid wireless telecommunications

30 service, by reasonable and verifiable standards from its books and records that are kept in the

31 regular course of business for other purposes, including, but not limited to, non-tax purposes, such

32 portion.

33 However, if a minimal amount of prepaid wireless telecommunications service is sold with

34 a prepaid wireless device for a single, non-itemized price, then the seller may elect not to apply the

1 percentage specified in subsection (a) of this section to such transaction. For purposes of this

2 paragraph, an amount of service denominated as ten (10) minutes or less, or five dollars ($5.00) or

3 less, is minimal.

4 39-21.2-5. Administration of E911 charge.

5 (a) Time and manner of payment. Prepaid wireless E911 charges collected by sellers shall

6 be remitted to the division at the times and in the manner provided by the streamlined sales and use

7 tax as described in § 44-18.1-34. The division shall establish registration and payment procedures

8 that substantially coincide with the registration and payment procedures that apply to the

9 streamlined sales and use tax.

10 (b) Seller administrative deduction. A seller shall be permitted to deduct and retain one

11 percent (1%) of prepaid wireless E911 charges that are collected by the seller from consumers.

12 (c) Audit and appeal procedures. The audit and appeal procedures applicable to sales and

13 use tax under § 44-19-18 of the general laws shall apply to prepaid wireless E911 charges.

14 (d) Exemption documentation. The division shall establish procedures by which a seller of

15 prepaid wireless telecommunications service may document that a sale is not a retail transaction,

16 which procedures shall substantially coincide with the procedures form documenting sale for resale

17 transactions for sales tax purposes under § 44-19-18 of the general laws.

18 (e) All E-911 fees collected pursuant to this section shall be deposited ~~as general revenues~~

19 in a restricted receipt account and used solely for the operation of the E 9-1-1 uniform emergency

20 telephone system.

21 SECTION 10. Section 42-7.2-10 of the General Laws in Chapter 42-7.2 entitled "Office of

22 Health and Human Services" is hereby amended to read as follows:

23 42-7.2-10. Appropriations and disbursements.

24 (a) The general assembly shall annually appropriate such sums as it may deem necessary

25 for the purpose of carrying out the provisions of this chapter. The state controller is hereby

26 authorized and directed to draw his or her orders upon the general treasurer for the payment of such

27 sum or sums, or so much thereof as may from time to time be required, upon receipt by him or her

28 of proper vouchers approved by the secretary of the executive office of health and human services,

29 or his or her designee.

30 (b) For the purpose of recording federal financial participation associated with qualifying

31 healthcare workforce development activities at the state’s public institutions of higher education,

32 and pursuant to the Rhode Island Designated State Health Programs (DSHP), as approved by CMS

33 October 20, 2016 in the 11-W-00242/1 amendment to Rhode Island’s section 1115 Demonstration

34 Waiver, there is hereby established a restricted receipt account entitled “Health System

1 Transformation Project” in the general fund of the state and included in the budget of the office of

2 health and human services.

3 SECTION 11. Section 42-9-19 of the General Laws in Chapter 42-19 entitled "Department

4 of Attorney General" is hereby amended to read as follows:

5 42-9-19. Acceptance of settlements - Attorney General settlement restricted account.

6 (a) The attorney general is hereby authorized and empowered to accept in the name of the

7 state any settlement resulting from a multi-state initiative. The attorney general is additionally

8 authorized and empowered to recover attorneys' fees and costs which shall be considered settlement

9 proceeds for purposes of this chapter.

10 (b) Such settlement proceeds shall be transferred to the general treasurer for deposit in the

11 general fund. The general treasurer shall transfer ten percent (10%) of such proceeds, up to sixty

12 five thousand dollars ($65,000) in any fiscal year, to the "attorney general multi-state initiative

13 restricted receipt account." The restricted receipt account shall be used ~~solely~~ to pay for ~~any fees or~~

14 ~~membership dues~~ staff, operational, and litigation costs associated with multi-state initiatives.

15 (c) Expenditure of all settlement proceeds accepted by the attorney general as part of the

16 terms of the relevant master settlement agreement shall be subject to the annual appropriation

17 process and approval by the general assembly.

18 SECTION 12. Section 42-11-2.5 of the General Laws in Chapter 42-11 entitled

19 "Department of Administration" is hereby amended to read as follows:

20 42-11-2.5. Information technology investment fund.

21 (a) All sums from the sale of any land and the buildings and improvements thereon, and

22 other real property, title to which is vested in the state, except as provided in §§ 37-7-15(b) and 37-

23 7-15(c), shall be transferred to an information technology investment fund restricted-receipt

24 account that is hereby established. This fund shall consist of such sums from the sale of any land

25 and the buildings and improvements thereon, and other real property, title to which is vested in the

26 state, except as provided in §§ 37-7-15(b) and 37-7-15(c), as well as a share of ~~emergency services~~

27 ~~and~~ first response surcharge revenues collected under the provisions of § 39-21.1-14. This fund

28 may also consist of such sums as the state may from time to time appropriate; as well as money

29 received from the disposal of information technology equipment, loan, interest, and service charge

30 payments from benefiting state agencies; as well as interest earnings, money received from the

31 federal government, gifts, bequest, donations, or otherwise from any public or private source. Any

32 such funds shall be exempt from the indirect cost recovery provisions of § 35-4-27.

33 (b) This fund shall be used for the purpose of acquiring information technology

34 improvements, including, but not limited to: hardware, software, consulting services, and ongoing

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1 ARTICLE 3 AS AMENDED

2 RELATING TO GOVERNMENT REFORM

3 SECTION 1. Sections 1-6-1 and 1-6-3 of the General Laws in Chapter 1-6 entitled

4 "Warwick Airport Parking District" are hereby amended to read as follows:

5 1-6-1. Definitions.

6 As used in this chapter:

7 (1) "Administrator" means the state tax administrator.

8 (2) "District" means the Warwick airport parking district, being the district that runs from

9 a point on Main Avenue in the city of Warwick at the southerly boundary of T.F. Green state airport,

10 and westerly along Main Avenue to a point one-third (1/3) mile west of the intersection of Main

11 Avenue with Post Road; turning thence northerly running along a line parallel to and one-third (1/3)

12 mile west of Post Road to a point one mile north of the line of Airport Road; thence turning east

13 running along a line parallel to and one-third (1/3) mile north of the line of Airport Road to Warwick

14 Avenue; thence turning south along Warwick Avenue to Airport Road; thence turning west along

15 Airport Road to the boundary of T.F. Green state airport; thence running southerly along the

16 boundary of T.F. Green state airport to the point of beginning. If any parking facility (including

17 entrances, driveways, or private access roads) is constructed partly within the district as so defined,

18 the entire facility shall be treated as though within the district.

19 (3) "Operator" means any person providing transient parking within the district.

20 (4) "Permit fee" means the fee payable annually by an operator to the tax administrator in

21 ~~an amount equal to ten dollars ($10.00) for each space made, or to be made, available by the~~

22 ~~operator for transient parking during the period of a permit's effectiveness, but not more than two~~

23 ~~hundred fifty dollars ($250) for each permit~~.

24 (5) "Transient parking" means any parking for motor vehicles at a lot, garage, or other

25 parking facility within the district for which a fee is collected by the operator, but excludes:

26 (i) Parking for which the fee is charged and paid on a monthly or less frequent basis;

27 (ii) Parking for any employee of the operator of the facility;

28 (iii) Parking provided by any hotel or motel for registered guests;

29 (iv) Parking provided by validation or having a validated rate, where the person providing

30 the validation does not maintain a place of business at T.F. Green state airport.

1 (6) "Transient parking receipts" means the gross receipts collected by an operator

2 (excluding the surcharge imposed by this chapter) in consideration of the provision of transient

3 parking.

4 1-6-3. Permits for parking operations in district.

5 (a) Every person desiring to provide transient parking in the district shall file with the tax

6 administrator an application for a permit for each place of business where transient parking will be

7 provided. The application shall be in a form, include information, and bear any signatures that the

8 tax administrator may require. There shall be no fee for this permit. ~~At the time of making an~~

9 ~~application, the applicant shall pay to the tax administrator the permit fee.~~ Every permit issued

10 under this chapter shall expire on June 30 of each year. Every permit holder desiring to renew a

11 permit shall annually, on or before February 1 of each year, apply for renewal of its permit ~~and file~~

12 ~~with it the appropriate permit fee~~. The renewal permit shall be valid for the period of July 1 of that

13 calendar year through June 30 of the subsequent calendar year, unless sooner canceled, suspended,

14 or revoked. Upon receipt of the required application ~~and permit fee~~, the tax administrator shall issue

15 to the applicant a permit. Provided, that if the applicant, at the time of making the application, owes

16 any fee, surcharge, penalty, or interest imposed under the authority of this chapter, the applicant

17 shall pay the amount owed. ~~An operator whose permit has been previously suspended or revoked~~

18 ~~shall pay to the tax administrator a permit fee for the renewal or issuance of a permit.~~

19 (b) Whenever any person fails to comply with any provision of this chapter, the tax

20 administrator upon hearing, after giving the person at least five (5) days notice in writing,

21 specifying the time and place of hearing and requiring the person to show cause why his or her

22 permit or permits should not be revoked, may revoke or suspend any one or more of the permits

23 held by the person. The notice may be served personally or by mail. The tax administrator shall not

24 issue a new permit after the revocation of a permit unless the administrator is satisfied that the

25 former holder of the permit will comply with the provisions of the ordinance.

26 (c) The superior court of this state has jurisdiction to restrain and enjoin any person from

27 engaging in business as an operator of a transient parking facility in the district without a parking

28 operator's permit or permits or after a transient parking facility operator's permit has been

29 suspended or revoked. The tax administrator may institute proceedings to prevent and restrain

30 violations of this chapter. In any proceeding instituted under this section, proof that a person

31 continues to operate a transient parking facility from the location to which a revoked parking

32 operator's permit was assigned, is prima facie evidence that the person is engaging in business as a

33 parking operator without a parking operator's permit.

34 (d) Permit fees collected under the authority of this section shall be deposited into the

1 general fund of the state.

2 SECTION 2. Section 11-18-12 of the General Laws in Chapter 11-18 entitled "Fraud and

3 False Dealing" is hereby amended to read as follows:

4 11-18-12. Injunction of false advertising.

5 (a) Except as provided in subsection (b) of this section, when ~~When~~ it appears to the

6 director of business regulation of the state of Rhode Island that any person, firm, corporation, or

7 association is violating any of the provisions of § 11-18-10, the director of business regulation may

8 cause to be instituted an action, commenced in the name of the director of business regulation in

9 his or her capacity as director of business regulation, to enjoin the violation in the superior court

10 and the court shall have jurisdiction to enjoin and/or restrain any person, firm, corporation or

11 association from violating any of the provisions of § 11-18-10 without regard to whether criminal

12 proceedings have been or may be instituted.

13 (b) When it appears to the director of labor and training of the state of Rhode Island that

14 any person, firm, corporation, or association is violating any of the provisions of § 11-18-10 with

15 respect to the offer or sale of liquid fuels, lubricating oils or other similar products, the director of

16 labor and training may cause to be instituted an action, commenced in the name of the director of

17 labor and training in his or her capacity as director of labor and training, to enjoin the violation in

18 the superior court and the court shall have jurisdiction to enjoin and/or restrain any person, firm,

19 corporation, or association from violating any of the provisions of § 11-18-10 with respect to the

20 offer or sale of liquid fuels, lubricating oils or other similar products without regard to whether

21 criminal proceedings have been or may be instituted.

22 SECTION 3. Section 31-36.1-3 of the General Laws in Chapter 31-36.1 entitled "Fuel Use

23 Reporting Law" is hereby amended to read as follows:

24 31-36.1-3. Motor carrier license and identification -- Temporary licenses.

25 (a) Each carrier operating a qualified motor vehicle in two (2) or more jurisdictions shall

26 apply to the administrator for a motor carrier fuel use license upon forms approved by the

27 administrator and there shall be no fee for this license ~~be shall upon application, pay a license fee~~

28 ~~of ten dollars ($10.00)~~. The license shall remain in effect until surrendered or revoked under the

29 provisions of § 31-36.1-4. The tax administrator shall, in addition, provide identification devices in

30 the quantity requested to each licensed motor carrier. One such device must be displayed on the

31 exterior portion of each side of the cab of each qualified motor vehicle. ~~The fee for such~~

32 ~~identification device shall be ten dollars ($10.00) per qualified motor vehicle~~. Identification devices

33 shall be issued each year by the administrator and shall be displayed on or before March 1.

34 (b) The administrator may refuse to issue a license if the application for it:

1 (1) Is filed by a motor carrier whose license at any time theretofore has been revoked by

2 the administrator.

3 (2) Contains any misrepresentation, misstatement, or omission of material information

4 required by the application.

5 (3) Is filed by some other motor carrier as a subterfuge of the real motor carrier in interest

6 whose license or registration previously has been revoked for cause by the administrator.

7 (4) Is filed by any motor carrier who is delinquent in the payment of any fee, tax, penalty,

8 or other amount due the administrator for its account.

9 The finding may be made by the administrator after granting the applicant a hearing of

10 which the applicant shall be given ten (10) days notice in writing, and in which the applicant shall

11 have the right to appear in person or by counsel and present testimony.

12 (c) Temporary license. Upon application to the administrator ~~and payment of a fee of ten~~

13 ~~dollars ($10.00)~~, an unlicensed motor carrier may obtain a temporary license which will authorize

14 one qualified motor vehicle to be operated on the highways of this state, for a period not to exceed

15 ten (10) days, without compliance with the fees imposed in this section, the tax imposed in § 31-

16 36.1-5, and the bond required in § 31-36.1-6. There shall be no fee for this license.

17 (d) The administrator may adopt rules and regulations specifying the conditions under

18 which temporary licenses will be issued and providing for their issuance.

19 SECTION 4. Sections 31-37-10 and 31-37-21 of the General Laws in Chapter 31-37

20 entitled "Retail Sale of Gasoline" are hereby amended to read as follows:

21 31-37-10. Term of licenses -- Fee.

22 (a) Any license issued by the tax administrator to an owner for the operation of a retail

23 filling station, or to a peddler of gasoline, shall, from the date of the issuance of the license, be and

24 remain in full force and effect until or unless:

25 (1) Suspended or revoked by the tax administrator,

26 (2) The business with respect to which the license was issued shall change ownership, or

27 (3) The owner or peddler shall cease to transact the business for which the license was

28 issued.

29 (b) In any of which cases the license shall expire and terminate, and its holder shall

30 immediately return the license to the tax administrator. There shall be no fee for this license.

31 ~~The charge or fee for the license shall be five dollars ($5.00).~~

32 31-37-21. Enforcement.

33 The tax administrator shall enforce the provisions of this chapter and chapter 36 of this

34 title, except that the director of ~~business regulation~~ labor and training shall enforce the provisions

1 of §§ 31-37-11 -- 31-37-17 and §§ 11-18-13 -- 11-18-18. The department of ~~business regulation~~

2 labor and training shall cause any violation subject to its jurisdiction under this chapter to be

3 referred to law enforcement officials in the city or town where the violation has or is occurring for

4 prosecution.

5 SECTION 5. Effective September 1, 2019, Section 36-3-5 of the General Laws in Chapter

6 36-3 entitled "Division of Personnel Administration" is hereby amended to read as follows:

7 36-3-5. Powers and duties of the administrator.

8 In addition to the duties imposed upon the personnel administrator elsewhere in the law

9 and the personnel rules, it shall be the duty of the personnel administrator:

10 (1) As executive head of the division of personnel administration, to direct, supervise,

11 develop, and authorize all personnel related administrative and technical activities including

12 personnel administration and personnel management.

13 (2) To prepare and recommend to the director of administration such rules as are deemed

14 necessary to carry out the provisions of the law.

15 (3) To supervise the operation of the classification plan and to recommend to the director

16 amendments and additions thereto.

17 (4) To supervise the operation of the pay plan and to recommend to the director

18 amendments and additions thereto.

19 (5) To establish and supervise the maintenance of employment lists, promotion lists, and

20 reemployment lists; to develop recruitment procedures, monitor agency recruitment processes for

21 compliance with the statutes and policies, and make available to state agencies qualified candidates

22 as vacancies occur; direct and supervise equal opportunity programs; manage employee benefit

23 plans including the coordination of health insurance, prescription/vision care, group life insurance,

24 dental care, prepaid legal services, deferred compensation and cancer programs, and any other

25 programs established by the legislature related to employee benefits; and to manage career awards

26 programs and state and local enforcement firefighters incentive training programs.

27 (6) To perform any other lawful act which he or she may consider necessary or desirable

28 to carry out the purposes and provisions of this chapter, and chapter 4 of this title, and the rules and

29 to conduct innovative demonstration projects to improve state personnel management.

30 (7) To facilitate and/or coordinate state and national background checks for applicants

31 and/or employees in state positions with access to federal tax information, as defined in § 36-3-

32 16(a)(6).

33 SECTION 6. Effective September 1, 2019, Chapter 36-3 of the General Laws entitled

34 "Division of Personnel Administration" is hereby amended by adding thereto the following section:

1 36-3-16. Authority to conduct state and national background checks for applicants

2 and employees in state positions with access to federal tax information.

3 (a) Definitions. As used in this section, the following terms are hereby defined as follows:

4 (1) “Access,” shall mean the direct use, contact, handling or viewing of federal tax

5 information, as defined herein, in paper or electronic form, regardless of the frequency, likelihood

6 or extent of such access.

7 (2) “Agency” or “state agency,” shall mean a Rhode Island state agency within the

8 executive branch.

9 (3) “Agency head,” shall mean the director or designee of a state agency holding the

10 position with access (as defined herein).

11 (4) “Applicant for employment,” shall mean an individual who has applied for or may be

12 offered employment, transfer or promotional opportunities with a state agency, including

13 employment as a full-time or part-time employee, intern, temporary or seasonal employee, or

14 volunteer, in a position with access (as defined herein).

15 (5) “Current agency employee,” shall mean a full-time or part-time state employee, intern,

16 temporary or seasonal employee or volunteer in a position with access (as defined herein).

17 (6) “Federal tax information” or “FTI” shall mean:

18 i) Federal tax returns or information created or derived from federal tax returns that is in

19 an agency’s possession or control, which is covered by the confidentiality protections of the Internal

20 Revenue Code and subject to 26 U.S.C. section 6103 (p)(4) safeguarding requirements, including

21 oversight by the Internal Revenue Service (“IRS”); and received directly from the IRS or obtained

22 through an authorized secondary source, such as the Social Security Administration (SSA), Federal

23 Office of Child Support Enforcement (OCSE), Bureau of the Fiscal Service (BFS), Centers for

24 Medicare and Medicaid Services (CMS), or another entity acting on behalf of the IRS pursuant to

25 an Internal Revenue Code (“IRC”) 6103(p)(2)(B) agreement; and

26 (ii) FTI shall expressly not include federal tax returns or information created or derived

27 from federal tax returns received from taxpayers or other third-parties.

28 (7) “Law enforcement authorized agency” shall mean a government entity authorized to

29 conduct national background checks using the federal bureau of investigation’s fingerprinting

30 national background check system.

31 (b) The personnel administrator or designee shall require to be obtained a state and national

32 fingerprint-based criminal background check initially and at least every ten years, as authorized by

33 Public Law 92-544, to determine the suitability of an applicant for employment prior to hiring or a

34 current agency employee, if the position applied for or held requires or includes access to FTI.

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 in

3 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 through

10 the office attorney general or other law enforcement authorized agency to conduct state and national

11 background checks. However, applicants for employment shall be required to pay the fee charged

12 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 the

14 office of the attorney general or other law enforcement authorized agency to assist the personnel

15 administrator authorized pursuant to this section to ensure the continued suitability of an applicant

16 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 for

30 and assignment to duties in a position that requires or includes, or may require or include, access

31 to FTI.

32 (e) If the office of the attorney general or other law enforcement authorized agency receives

33 criminal record information from the state or national fingerprint-based criminal background

34 checks that includes no disposition or is otherwise incomplete, the office of the attorney general or

1 other law enforcement authorized agency shall notify the personnel administrator and the subject

2 person. The applicant for employment or the current agency employee shall be responsible for

3 resolving any issues in other jurisdictions causing an incomplete background check. Within fifteen

4 (15) business days from being notified, the applicant for employment or current agency employee

5 must resolve any incomplete background check. For the purposes of this chapter, the personnel

6 administrator, in his or her sole discretion, may extend the amount of time to resolve an incomplete

7 report. Once resolved, the applicant’s suitability for employment in a position requiring or

8 involving, or which may require or involve, access to FTI shall be determined in accordance with

9 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 incomplete

14 background check by the deadline provided herein, along with any extension, the employee may

15 be terminated or discharged from employment; provided, however, that a current agency employee

16 may be placed on administrative leave or reassigned to a position that does not require access to

17 FTI if that position is available and subject to the business needs of the agency at the discretion of

18 the personnel administrator and agency head. Any such employment action shall be subject to same

19 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 administrator

24 or designee may consult with the agency head and consider mitigating factors relevant to the current

25 agency employee’s employment and the nature of any disqualifying offense.

26 (1) In the event that an applicant for employment receives a final determination that the

27 person is unsuitable, the person shall no longer be considered for employment into a position with

28 access.

29 (2) A current employee may appeal a determination of unsuitability to the personnel

30 administrator. While the appeal is pending, the employee may be placed on administrative leave in

31 the discretion of the personnel administrator. A final determination of unsuitability after appeal

32 may result in termination or discharge from employment; provided, however, that subject to the

33 discretion of the personnel administrator and the agency head, a current agency employee may be

34 reassigned to a position that does not require access to FTI if that position is available and subject

1 to the business needs of the agency. Any such employment action shall be subject to further appeal

2 or grievance procedures as normally authorized.

3 (g) Nothing in this section shall limit or preclude an agency’s right to carry on a background

4 investigation of an applicant for employment or a current agency employee using other authorized

5 means.

6 (h) The Department of Administration is hereby authorized to promulgate and adopt

7 regulations necessary to carry out this section.

8 (i) The judicial branch is hereby authorized to comply with the provisions herein related to

9 employees with access to FTI.

10 SECTION 7. Effective September 1, 2019, Chapter 37-2 of the General Laws entitled

11 "State Purchases" is hereby amended by adding thereto the following section:

12 37-2-81. Authority to conduct state and national background checks for vendors with

13 access to federal tax information.

14 (a) Definitions. As used in this section, the following terms shall be defined as follows:

15 (1) “Access,” shall mean the direct and indirect use, contact, handling or viewing of federal

16 tax information, as defined herein, in paper or electronic form, regardless of the frequency,

17 likelihood or extent of such access or whether the access is intentional or inadvertent.

18 (2) “Agency” or “state agency,” shall mean a Rhode Island state department within the

19 executive branch.

20 (3) “Agency head” shall mean the director or designee of a state department for which the

21 vendor is providing services.

22 (4) “Division” shall mean the division of purchases.

23 (5) “Federal tax information” or “FTI” shall mean:

24 (i) Federal tax returns or information created or derived from federal tax returns that is in

25 an agency’s possession or control, which is covered by the confidentiality protections of the Internal

26 Revenue Code and subject to 26 U.S.C. section 6103 (p)(4) safeguarding requirements, including

27 oversight by the Internal Revenue Service (“IRS”); and is received directly from the IRS or

28 obtained through an authorized secondary source, such as the Social Security Administration

29 (SSA), Federal Office of Child Support Enforcement (OCSE), Bureau of the Fiscal Service (BFS),

30 Centers for Medicare and Medicaid Services (CMS), or another entity acting on behalf of the IRS

31 pursuant to an Internal Revenue Code (“IRC”) 6103(p)(2)(B) agreement; and

32 (ii) Shall not include federal tax returns or information created or derived from federal tax

33 returns received directly from taxpayers or other third-parties.

34 (6) “Vendor” shall mean any individual, firm, corporation, partnership or other corporate

1 entity, including employees, subcontractors, who are performing services for the state and has

2 access, as defined herein, to FTI.

3 (b) The agency head shall require a vendor to complete a state and national fingerprint-

4 based criminal background check, as authorized by Public Law 92-544, to determine the suitability

5 of a vendor's employees and subcontractors if the services to the state requires or includes, or may

6 require or include, access to FTI. This requirement for a vendor shall be incorporated by reference

7 into the vendor’s agreement with the state. No new vendor employee or subcontractor who has or

8 may have access to FTI shall perform services for the State until the person is deemed suitable by

9 the agency head. Existing vendor employees and subcontractors, as of the effective date of this

10 statute, shall complete the background check requirement within a reasonable time as approved by

11 the agency head.

12 (c) The national fingerprint-based criminal background check shall be facilitated through

13 the Rhode Island office of the attorney general or other law enforcement authorized agency, using

14 the same criteria established under § 36-3-16 for applicants and current state employees. The

15 information shall be forwarded to the Federal Bureau of Investigation (FBI) for a national criminal

16 history check, according to the policies, procedures, and/or regulations established by the office of

17 the attorney general or other law enforcement authorized agency. The office of the attorney general

18 or other law enforcement authorized agency may disseminate the results of the national criminal

19 background checks to the Department of Administration and/or the agency head where the services

20 are being provided.

21 (d) Reciprocity. Nothing herein shall prevent the agency head, at his or her discretion, from

22 accepting a recent national fingerprint-based criminal background check for a vendor related to FTI

23 access conducted in another suitable jurisdiction.

24 (e) The agency head may receive criminal offender record information to the extent

25 required by federal law and the results of checks of national criminal history information databases

26 under Public Law 92-544. Upon receipt of the results of state and national criminal background

27 checks, the agency head shall treat the information as non-public and exempt from disclosure in

28 accordance with the Rhode Island Access to Public Records Act, R.I. Gen. Laws 38-2-2(4)(B).

29 Information acquired by any agency in the background check process pursuant to this section shall

30 be used solely for the purpose of making a determination as to the suitability of a vendor in a

31 position which requires or includes, or may require or include, access to FTI.

32 (f) The state shall not be responsible for any fees charged through the office attorney

33 general, other law enforcement authorized agency or other jurisdiction to conduct the state and

34 national background check for vendor.

1 (g) A vendor who refuses to comply with the fingerprint-based background check

2 requirement shall be considered unsuitable for services requiring or involving, or which may

3 require or involve, access to FTI. Refusal to comply by the vendor may result in termination of the

4 contract with the State and/or other procurement sanctions if appropriate. Nothing herein shall

5 prevent the vendor from replacing an employee or subcontractor who refuses to comply with this

6 requirement, subject to written approval by the agency head.

7 (h) Upon receipt of the results of a state and national criminal background check for the

8 vendor the agency head shall review the results and determine the suitability of the person with

9 regard to service in a position requiring or involving, or which may require or involve, access to

10 FTI. In making a determination of suitability, the agency head may consider mitigating factors

11 relevant to the vendor’s scope of work and the nature of any disqualifying offense. Unsuitability of

12 a vendor may result in termination of the contract with the State and/or a requirement that the

13 vendor to replace the employee or subcontractor, with a suitable person, subject to written approval

14 by the agency head.

15 (i) If the office of the attorney general or other law enforcement authorized agency receives

16 criminal record information from the state or national fingerprint-based criminal background

17 checks that includes no disposition or is otherwise incomplete, the subject person shall be

18 responsible for resolving any issues in other jurisdictions causing an incomplete background check.

19 The vendor shall immediately notify the state in writing the name and circumstances of any

20 employees or subcontractors who have received an incomplete background check. Failure to

21 establish suitability of a vendor employee, subcontractor or other agent may result in termination

22 of the contract with the State and/or a requirement that the vendor to replace the employee,

23 subcontractor or other agent with a suitable person, subject to written approval by the agency head.

24 (j) Nothing in this section shall limit or preclude an agency’s right to carry on a background

25 investigation of a vendor using other authorized means.

26 (k) The department of administration is hereby authorized to promulgate and adopt

27 regulations necessary to carry out this section.

28 (l) The judicial branch is hereby authorized to comply with the provisions herein related to

29 vendors working on behalf of the judiciary receiving access to FTI.

30 SECTION 8. Effective September 1, 2019, sections 40-13.2-2, 40-13.2-4 and 40-13.2-5 in

31 Chapter 40-13.2 entitled "Certification of Child Care and Youth Serving Agency Workers" are

32 hereby amended to read as follows:

33 40-13.2-2. Qualification for childcare employment.

34 Notwithstanding any other provisions of law to the contrary, any person seeking to operate

1 or seeking employment in any facility which is, or is required to be, licensed or registered with the

2 department of children youth and families, the department of human services, or seeking

3 employment at the training school for youth if that employment involves supervisory or disciplinary

4 power over a child or children or involves routine contact with a child or children without the

5 presence of other employees, shall undergo an employment background check, a CANTS (child

6 abuse and neglect tracking system) check of substantiated complaints, and criminal records check

7 as provided for in this chapter. The director of the department of children, youth, and families and

8 the director of the department of human services may by rule identify those positions requiring

9 background checks, CANTS checks and criminal records checks.

10 40-13.2-4. Criminal records check -- Operators of child care facilities which must be

11 licensed or registered with the department.

12 Any person seeking to operate a facility, that is, or is required to be, licensed or registered

13 with the department of human services or the department of children, youth and families, shall

14 apply to the Rhode Island bureau of criminal identification, attorney general’s office, or the

15 department of children, youth and families or the state or local police department, for a nationwide,

16 criminal-records check. The check will conform to the applicable federal standards, including the

17 taking of fingerprints to identify the applicant, and any expense associated with providing the

18 criminal-records check shall be paid by the applicant and/or requesting agency. The director of the

19 department of human services or the department of children, youth and families will determine by

20 rule those items of information appearing on a criminal-records check, which constitute

21 disqualifying information because that information would indicate that the employment could

22 endanger the health or welfare of a child or children. Upon the discovery of any disqualifying

23 information with respect to a proposed operator, the Rhode Island bureau of criminal identification

24 will inform the director of the department of human services or the department of children, youth

25 and families, in writing, of the nature of the disqualifying information.

26 40-13.2-5. Criminal-records check – Employees of child day care, day care centers,

27 family day care homes, group family day care homes, child placing agencies and residential

28 child-care facilities which must be licensed by the department.

29 (a) Any person seeking employment in a “child day care” program, a “family day care

30 home”, “group family day care home”, or in a “child day care center” as defined in section 42-12.5-

31 2 of the general laws, if that employment involves supervisory or disciplinary power over a child

32 or children or involves routine contact with a child or children without the presence of other

33 employees~~, in any facility that is, or is required to be, licensed or registered with the department,~~,

34 or any adult household member of any operator of a “family day-care home” and “group family

1 day-care home,”, or seeking that employment or to volunteer at the training school for youth, shall,

2 after acceptance by the employer of the affidavit required by § 40-13.2-3, apply to the bureau of

3 criminal identification of the state police or the local police department, or the office of the attorney

4 general, or the department of children, youth and families, for a nationwide, criminal-records check.

5 The check will conform to applicable federal standards including the taking of fingerprints to

6 identify the applicant. Further, any person seeking employment in a “child day care” program, in a

7 “child day care center”, and/or in a “child day care provider” as defined in section 42-12.5-2 of the

8 general laws, if that employment involves supervisory or disciplinary power over a child or children

9 or involves routine contact with a child or children without the presence of other employees shall

10 apply to the bureau of criminal identification of the state police or the local police department or

11 the office of the attorney general to conduct all necessary criminal background checks as required

12 by the Child Care and Development Block Grant of 2014 (CCDBGA), Pub. L. 113-186. The

13 criminal record checks as required by this section shall be conducted for every five (5) years of

14 continuous child care employment from the date of the previous criminal background check.

15 (b) Any person seeking employment in a “child placing agency” as defined in section 42-

16 72.1-2 of the general laws, if that employment involves supervisory or disciplinary power over a

17 child or children or involves routine contact with a child or children without the presence of other

18 employees, shall, after acceptance by the employer of the affidavit required by § 40-13.2-3, apply

19 to the bureau of criminal identification of the state police or the local police department, or the

20 office of the attorney general or the department of children, youth and families, for a nationwide,

21 criminal-records check. The check will conform to applicable federal standards including the taking

22 of fingerprints to identify the applicant.

23 (c) Any person seeking employment in a “child caring agency”, “children’s behavioral

24 health program”, or in a “foster and adoptive home” as defined in section 42-72.1-2 of the general

25 laws, that is, or is required to be, licensed or registered with the department of children, youth and

26 families, shall, after acceptance by the employer of the affidavit required by § 40-13.2-3, apply to

27 the bureau of criminal identification of the state police or the local police department, or the office

28 of the attorney general, or the department of children, youth and families, for a nationwide,

29 criminal-records check. The check will conform to applicable federal standards including the taking

30 of fingerprints to identify the applicant.

31 ~~(b)~~(d) Upon the discovery of any disqualifying information as defined in accordance with

32 the rule promulgated by the director, the bureau of criminal identification of the state police or the

33 local police department or the office of the attorney general or the department of children, youth

34 and families will inform the applicant, in writing, of the nature of the disqualifying information. In

1 addition, the bureau of criminal identification of the state police or the office of the attorney general,

2 or department of children, youth and families, or the local police department will inform the

3 relevant employer, in writing, without disclosing the nature of the disqualifying information, that

4 an item of disqualifying information has been discovered.

5 (e)~~(c)~~ In those situations in which no disqualifying information has been found, the bureau

6 of criminal identification of the state police or the local police department or the office of the

7 attorney general, or the department of children, youth and families will inform both the applicant

8 and the employer, in writing, ~~of this fact~~ that no disqualifying information has been found.

9 ~~(d) The employer will maintain on file, subject to inspection by the department, evidence~~

10 ~~that criminal-records checks have been initiated on all employees seeking employment after August~~

11 ~~1, 1985, and the results of the checks.~~

12 (f)~~(e)~~ Failure to ~~maintain that evidence on file~~ show proof that the employer has initiated

13 requests for background checks required by this section will be prima facie grounds to revoke the

14 license or registration of the operator of the facility.

15 (g)~~or(f)~~ It will be the responsibility of the bureau of criminal identification of the state

16 police or the office of the attorney general, or the local police department, or the department of

17 children, youth and families, to conduct the nationwide, criminal-records check pursuant to this

18 section. The nationwide, criminal-records check will be provided to the applicant for employment

19 ~~without charge~~. Any expense associated for providing the criminal-records check shall be paid by

20 the applicant and/or the requesting agency.

21 SECTION 9. Section 42-56-10 of the General Laws in Chapter 42-56 entitled "Corrections

22 Department" is hereby amended to read as follows:

23 42-56-10. Powers of the director.

24 In addition to exercising the powers and performing the duties, which are otherwise given

25 to him or her by law, the director of the department of corrections shall:

26 (1) Designate, establish, maintain, and administer those state correctional facilities that he

27 or she deems necessary, and may discontinue the use of those state correctional facilities that he or

28 she deems appropriate for that action;

29 (2) Maintain security, safety, and order at all state correctional facilities, utilize the

30 resources of the department to prevent escapes from any state correctional facility, take all

31 necessary precautions to prevent the occurrence or spread of any disorder, riot, or insurrection of

32 any state correctional facility, including, but not limited to, the development, planning, and

1 (4) Supervise and/or approve the administration by the assistant directors of the

2 department;

3 (5) Manage, direct, and supervise the operations of the department;

4 (6) Direct employees in the performance of their official duties;

5 (7) Hire, promote, transfer, assign, and retain employees and suspend, demote, discharge,

6 or take other necessary disciplinary action;

7 (8) Maintain the efficiency of the operations of the department;

8 (9) Determine the methods, means, and personnel by which those operations of the

9 department are to be conducted;

10 (10) Relieve employees from duties because of lack of work or for other legitimate reasons;

11 (11) Establish, maintain, and administer programs, including, but not limited to, education,

12 training, and employment, of persons committed to the custody of the department, designed as far

13 as practicable to prepare and assist each person to assume the responsibilities and exercise the rights

14 of a citizen of this state;

15 (12) Establish a system of classification of persons committed to the custody of the

16 department for the purpose of developing programs for each person in order to effectively develop

17 an individualized program for each sentenced inmate that will address each offender's individual

18 treatment and rehabilitative needs, the department of corrections is authorized to receive, with the

19 express consent of the inmate, and upon request to the department of children, youth and families,

20 the offender's juvenile arrest and/or adjudication records. Information related to the juvenile's

21 family members and other third parties, excluding law enforcement personnel, shall be redacted

22 from the records provided prior to their release to the department. The records will be disclosed to

23 only those department personnel directly responsible for, and only for the purpose of, developing

24 the individualized program for the offender.

25 (13) Determine at the time of commitment, and from time to time thereafter, the custody

26 requirements and program needs of each person committed to the custody of the department and

27 assign or transfer those persons to appropriate facilities and programs;

28 (14) Establish training programs for employees of the department, including the use of an

29 application system for the Department's Correctional Officer Training Academy that leverages

30 other law enforcement entity recruiting and the establishment of any fee associated with such

31 system, provided that a state application process compliant with § 28-6.3-1 also be provided.

32 (15) Investigate grievances and inquire into alleged misconduct within the department;

1 studies relating to correctional programs and responsibilities of the department;

2 (18) Utilize, as far as practicable, the services and resources of specialized community

3 agencies and other local community groups in the development of programs, recruitment of

4 volunteers, and dissemination of information regarding the work and needs of the department;

5 (19) Make and enter into any contracts and agreements necessary or incidental to the

6 performance of the duties and execution of the powers of the department, including, but not limited

7 to, contracts to render services to committed offenders, and to provide for training or education for

8 correctional officers and staff;

9 (20) Seek to develop civic interest in the work of the department and educate the public to

10 the needs and goals of the corrections process;

11 (21) Expend annually in the exercise of his or her powers, performance of his or her duties,

12 and for the necessary operations of the department those sums that may be appropriated by the

13 general assembly; and

14 (22) Make and promulgate necessary rules and regulations incident to the exercise of his

15 or her powers and the performance of his or her duties, including, but not limited to, rules and

16 regulations regarding nutrition, sanitation, safety, discipline, recreation, religious services,

17 communication, and visiting privileges, classification, education, training, employment, care, and

18 custody for all persons committed to correctional facilities.

19 (23) Make and promulgate regulations to provide:

20 (a) Written notice to licensed nursing facilities, licensed assisted living residences, and

21 housing for the elderly whenever a person seeking to reside in one of these facilities or residences

22 is being released on parole for any of the following offenses: murder, voluntary manslaughter,

23 involuntary manslaughter, first degree sexual assault, second degree sexual assault, third degree

24 sexual assault, assault on persons sixty (60) years of age or older, assault with intent to commit

25 specified felonies (murder, robbery, rape, or burglary), felony assault, patient abuse, neglect or

26 mistreatment of patients, burglary, first degree arson, felony larceny or robbery;

27 (b) A risk assessment process to identify and recommend safety or security measures

28 necessary for the protection of other residents or clients including whether the parolee should be

29 prohibited from residing in any such facility or residence or segregated from other residents or

30 clients to protect the security and safety of other residents;

31 (c) The written notice to licensed nursing facilities, assisted living residences, or housing

32 for the elderly shall include charge information and disposition about the offense for which the

33 resident or client has been paroled, contact information for the resident's or client's parole

1 security measures. A copy of the written notice shall be provided to the parolee; and

2 (d) A process for notifying the appropriate state regulatory agency and the state long-term

3 care ombudsman whenever notice as required in subdivision 42-56-10(23)(a) above has been given.

4 (24) Notwithstanding the enumeration of the powers of the director as set forth in this

5 section, and notwithstanding any other provision of the general laws, the validity and enforceability

6 of the provisions of a collective bargaining agreement shall not be contested, affected, or

7 diminished, nor shall any arbitration award be vacated, remanded or set aside on the basis of an

8 alleged conflict with this section or with any other provision of the general laws.

9 SECTION 10. Chapter 44-1 of the General Laws entitled "State Tax Officials" is hereby

10 amended by adding thereto the following section:

11 44-1-40. Tax Administrator to prepare list of licensed taxpayers - Notice - Public

12 inspection.

13 (a) Notwithstanding any other provision of law, the tax administrator may, on a periodic

14 basis:,

15 (1) Prepare and publish for public distribution a list of entities and their active licenses

16 administered under Title 44.

17 (2) Prepare and publish for public distribution a list of entities and licenses for the current

18 year, as administered by a city or town under Chapter 5 of Title 3 of the Rhode Island General

19 Laws.

20 (3) Prepare and publish for public distribution a list of entities and licenses for the

21 upcoming year, as administered by a city or town under Chapter 5 of Title 3 of the Rhode Island

22 General Laws.

23 (4) Each list may contain the license type, name, and address of each registered entity with

24 a license.

25 (b) The tax administrator shall not list any taxpayers that do not have an active license.

26 (c) Any such list prepared by the tax division shall be available to the public for inspection

27 by any person and may be published by the tax administrator on the tax division website.

28 SECTION 11. Section 44-5.2-4 of the General Laws in Chapter 44-5.2 entitled "Powers

29 and Duties of Fire Districts in the Town of Coventry" is hereby repealed.

30 ~~44-5.2-4. Compliance.~~

31 ~~Unless otherwise provided, the division of municipal finance in the department of revenue~~

32 ~~shall monitor fire district compliance with this chapter and issue periodic reports to the general~~

33 ~~assembly on compliance.~~

34 SECTION 12. Section 45-19-1 of the General Laws in chapter 45-19 entitled “Relief of

1 Injured and Deceased Fire Fighters and Police Officers” is hereby amended to read as follows:

2 45-19-1. Salary payment during line of duty illness or injury.

3 (a) Whenever any police officer of the Rhode Island Airport Corporation or whenever any

4 police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or

5 deputy fire marshal of any city, town, fire district, or the state of Rhode Island is wholly or partially

6 incapacitated by reason of injuries received or sickness contracted in the performance of his or her

7 duties or due to their rendering of emergency assistance within the physical boundaries of the state

8 of Rhode Island at any occurrence involving the protection or rescue of human life which

9 necessitates that they respond in a professional capacity when they would normally be considered

10 by their employer to be officially off-duty, the respective city, town, fire district, state of Rhode

11 Island or Rhode Island Airport Corporation by which the police officer, fire fighter, crash rescue

12 crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, is employed, shall,

13 during the period of the incapacity, pay the police officer, fire fighter, crash rescue crewperson, fire

14 marshal, chief deputy fire marshal, or deputy fire marshal, the salary or wage and benefits to which

15 the police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or

16 deputy fire marshal, would be entitled had he or she not been incapacitated, and shall pay the

17 medical, surgical, dental, optical, or other attendance, or treatment, nurses, and hospital services,

18 medicines, crutches, and apparatus for the necessary period, except that if any city, town, fire

19 district, the state of Rhode Island or Rhode Island Airport Corporation provides the police officer,

20 fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal,

21 with insurance coverage for the related treatment, services, or equipment, then the city, town, fire

22 district, the state of Rhode Island or Rhode Island Airport Corporation is only obligated to pay the

23 difference between the maximum amount allowable under the insurance coverage and the actual

24 cost of the treatment, service, or equipment. In addition, the cities, towns, fire districts, the state of

25 Rhode Island or Rhode Island Airport Corporation shall pay all similar expenses incurred by a

26 member who has been placed on a disability pension and suffers a recurrence of the injury or illness

27 that dictated his or her disability retirement, subject to the provisions of subsection (j) herein.

28 (b) As used in this section, "police officer" means and includes any chief or other member

29 of the police department of any city or town regularly employed at a fixed salary or wage and any

30 deputy sheriff, member of the fugitive task force, or capitol police officer, permanent

31 environmental police officer or criminal investigator of the department of environmental

32 management, or airport police officer.

33 (c) As used in this section, "fire fighter" means and includes any chief or other member of

34 the fire department or rescue personnel of any city, town, or fire district, and any person employed

1 as a member of the fire department of the town of North Smithfield, or fire department or district

2 in any city or town.

3 (d) As used in this section, "crash rescue crewperson" means and includes any chief or

4 other member of the emergency crash rescue section, division of airports, or department of

5 transportation of the state of Rhode Island regularly employed at a fixed salary or wage.

6 (e) As used in this section, "fire marshal," "chief deputy fire marshal", and "deputy fire

7 marshal" mean and include the fire marshal, chief deputy fire marshal, and deputy fire marshals

8 regularly employed by the state of Rhode Island pursuant to the provisions of chapter 28.2 of title

9 23.

10 (f) Any person employed by the state of Rhode Island, except for sworn employees of the

11 Rhode Island State Police, who is otherwise entitled to the benefits of chapter 19 of this title shall

12 be subject to the provisions of chapters 29 – 38 of title 28 for all case management procedures and

13 dispute resolution for all benefits.

14 (g) In order to receive the benefits provided for under this section, a police officer or

15 firefighter must prove to their employer that he or she had reasonable grounds to believe that there

16 was an emergency which required an immediate need for their assistance for the protection or

17 rescue of human life.

18 (h) Any claims to the benefits provided for under this section resulting from the rendering

19 of emergency assistance in the state of Rhode Island at any occurrence involving the protection or

20 rescue of human life while off-duty, shall first require those covered by this section to submit a

21 sworn declaration to their employer attesting to the date, time, place and nature of the event

22 involving the protection or rescue of human life causing the professional assistance to be rendered

23 and the cause and nature of any injuries sustained in the protection or rescue of human life. Sworn

24 declarations shall also be required from any available witness to the alleged emergency involving

25 the protection or rescue of human life.

26 (i) All declarations required under this section shall contain the following language:

27 "Under penalty of perjury, I declare and affirm that I have examined this declaration,

28 including any accompanying schedules and statements, and that all statements contained herein are

29 true and correct."

30 (j) Any person, not employed by the state of Rhode Island, receiving injured on-duty

31 benefits pursuant to this section, and subject to the jurisdiction of the state retirement board for

32 accidental retirement disability, for an injury occurring on or after July 1, 2011, shall apply for an

33 accidental disability retirement allowance from the state retirement board not later than the later of

34 eighteen (18) months after the date of the person's injury that resulted in said person's injured on

1 duty status or sixty (60) days from the date on which the treating physician certifies that the person

2 has reached maximum medical improvement. Nothing herein shall be construed to limit or alter

3 any and all rights of the parties with respect to independent medical examination or otherwise, as

4 set forth in the applicable collective bargaining agreement. Notwithstanding the forgoing, any

5 person receiving injured on duty benefits as the result of a static and incapacitating injury whose

6 permanent nature is readily obvious and ascertainable shall be required to apply for an accidental

7 disability retirement allowance within sixty (60) days from the date on which the treating physician

8 certifies that the person's injury is permanent, or sixty (60) days from the date on which such

9 determination of permanency is made in accordance with the independent medical examination

10 procedures as set forth in the applicable collective bargaining agreement.

11 (1) If a person with injured on duty status fails to apply for an accidental disability

12 retirement allowance from the state retirement board within the time frame set forth above, that

13 person's injured on duty payment shall terminate. Further, any person suffering a static and

14 incapacitating injury as set forth in subsection (j) above and who fails to apply for an accidental

15 disability benefit allowance as set forth in subsection (j) shall have his or her injured on duty

16 payment terminated.

17 (2) A person who so applies shall continue to receive injured on duty payments, and the

18 right to continue to receive IOD payments of a person who so applies shall terminate in the event

19 of a final ruling of the workers compensation court allowing accidental disability benefits. Nothing

20 herein shall be construed to limit or alter any and all rights of the parties with respect to independent

21 medical examination or otherwise, as set forth in the applicable collective bargaining agreement.

22 (k) Any person employed by the state of Rhode Island who is currently receiving injured

23 on-duty benefits or any person employed by the state of Rhode Island who in the future is entitled

24 to injured on-duty benefits pursuant to chapter 19, and subject to the jurisdiction of the state

25 retirement board for accidental retirement disability, shall apply for an accidental disability

26 retirement allowance from the state retirement board not later than sixty (60) days from the date on

27 which a treating physician or an independent medical examiner certifies that the person has reached

28 maximum medical improvement, and in any event not later than eighteen (18) months after the date

29 of the person’s injury that resulted in said person being on injured on-duty. Nothing herein shall be

30 construed to limit or alter any and all rights of the parties with respect to independent medical

31 examination or otherwise, as set forth in the applicable collective bargaining agreement.

32 Notwithstanding the forgoing, any person receiving injured on duty benefits as the result of a static

33 and incapacitating injury whose permanent nature is readily obvious and ascertainable shall be

34 required to apply for an accidental disability retirement allowance within sixty (60) days from the

1 date on which a treating physician or an independent medical examiner certifies that the person's

2 injury is permanent, or sixty (60) days from the date on which such determination of permanency

3 is made in accordance with the independent medical examination procedures as set forth in the

4 applicable collective bargaining agreement.

5 (1) If a person employed by the state of Rhode Island with injured on duty status fails to

6 apply for an accidental disability retirement allowance from the state retirement board within the

7 time frame set forth in subsection (k) above, that person's injured on duty payment shall terminate.

8 Further, any person employed by the state of Rhode Island suffering a static and incapacitating

9 injury as set forth in subsection (k) above and who fails to apply for an accidental disability benefit

10 allowance as set forth in subsection (k) shall have his or her injured on duty payment terminated.

11 (2) A person employed by the state of Rhode Island who so applies shall continue to receive

12 injured on duty payments, and the right to continue to receive injured on-duty payments of a person

13 who so applies shall terminate upon final adjudication by the state retirement board approving or

14 denying either ordinary or accidental disability payments and, notwithstanding 45-31.2-9, this

15 termination of injured on duty benefits shall not be stayed.

16 (3)(a) Notwithstanding any other provision of law, all persons employed by the state of

17 Rhode Island entitled to benefits under this section who were injured prior to July 1, 2019 and who

18 have been receiving injured on duty benefits pursuant to this section for a period of eighteen (18)

19 months or longer as of July 1, 2019 shall have up to ninety (90) days from July 1, 2019 to apply for

20 an accidental disability retirement benefit allowance. Any person employed by the state of Rhode

21 Island receiving injured on-duty benefits for a period less than eighteen (18) months as of July 1,

22 2019 shall apply for an accidental disability retirement benefit allowance within eighteen (18)

23 months of the date of injury that resulted in said person receiving injured on-duty pay, provided

24 however, said person shall have a minimum of ninety (90) days to apply.

25 Applications for disability retirement received by the state retirement board by any person

26 employed by the State of Rhode Island receiving injured on-duty payments that shall be deemed

27 untimely pursuant to §36-10-14(b) shall have ninety (90) days from July 1, 2019 to apply for an

28 accidental disability retirement benefit allowance. Failure to apply for an accidental disability

29 retirement benefit allowance within the timeframe set forth herein shall result in the termination of

30 injured on duty benefits.

31 (b) Any person employed by the state of Rhode Island receiving injured on-duty payments

32 who has been issued a final adjudication of the state retirement board on an application for an

33 ordinary or accidental disability benefit, either approving or denying said application, shall have

34 his/her injured on-duty payments terminated.

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art.004/11/004/9/004/8/004/7/004/6/004/5/004/4/004/3/004/2/004/1

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1 ARTICLE 4

2 RELATING TO GOVERNMENT REORGANIZATION

3 SECTION 1. 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

4 of the General Laws in Chapter 5-65 entitled "Contractors' Registration and Licensing Board" are

5 hereby amended to read as follows:

6 5-65-1. Definitions.

7 As used in this chapter:

8 (1) "Board" means the contractors' registration and licensing board established pursuant to

9 the provisions of § 5-65-14 or its designees.

10 (2) "Claim for retainage" means an allegation that a person seeking payment of retainage

11 breached the person's contract for the project; provided, however, that a "claim" related to a project

12 with a contract value of not less than two hundred fifty thousand dollars ($250,000) shall be subject

13 to the applicable dispute resolution procedure, notice, and other requirements in the contract for

14 construction.

15 ~~(3) "Commission" means the building code commission supportive of the contractors'~~

16 ~~registration and licensing board.~~

17 ~~(4)~~(3)(i) "Contractor" means a person who, in the pursuit of an independent business,

18 undertakes or offers to undertake or submits a bid, or for compensation and with or without the

19 intent to sell the structure arranges to construct, alter, repair, improve, move over public highways,

20 roads, or streets or demolish a structure or to perform any work in connection with the construction,

21 alteration, repair, improvement, moving over public highways, roads, or streets or demolition of a

22 structure, and the appurtenances thereto. For the purposes of this chapter, "appurtenances" includes

23 the installation, alteration, or repair of wells connected to a structure consistent with chapter 13.2

24 of title 46. "Contractor" includes, but is not limited to, any person who purchases or owns property

25 and constructs, or for compensation arranges for the construction of, one or more structures.

26 (ii) A certificate of registration is necessary for each "business entity" regardless of the fact

27 that each entity may be owned by the same individual.

28 ~~(5)~~(4) "Contract for construction" means a contract for which a lien may be established

29 under chapter 28 of title 34 or for state or municipal public works projects as defined in title 37 on

30 a project for which the person on whose contract with the project owner has an original contract

1 price of not less than two hundred fifty thousand dollars ($250,000); provided, however, that

2 "contract for construction" shall not include a project containing, or designed to contain, at least

3 one, but not more than four (4), dwelling units.

4 ~~(6)~~(5) "Deliverable" means a project close-out document that shall be submitted by the

5 person seeking payment of retainage under the person's contract for construction; provided,

6 however, that a lien waiver or release, which is a deliverable, shall comply with chapter 28 of title

7 34; provided, further, that "deliverable" shall not include any document affirming, certifying, or

8 confirming completion or correction of labor, materials, or other items furnished or incomplete or

9 defective work.

10 ~~(7)~~(6) "Dwelling unit" means a single unit providing complete independent living facilities

11 for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and

12 sanitation.

13 ~~(8)~~(7) "Hearing officer" means a person designated by the ~~executive director~~ director of

14 the department of business regulation or the director’s designee to hear contested claims or cases,

15 contested enforcement proceedings, and contested administrative fines, in accordance with the

16 "administrative procedures act", chapter 35 of title 42.

17 ~~(9)~~(8) "Incomplete or defective work" means labor, materials, or any other item required

18 for full performance by a person seeking payment of retainage that remains to be furnished by the

19 person under the person's contract for construction or that has been furnished by the person but

20 requires correction, repair, further completion, revision, or replacement; provided, however, that

21 "incomplete or defective work" shall not include deliverables or labor, materials, or any other item

22 to be repaired or replaced after substantial or final completion pursuant to a warranty, guarantee,

23 or other contractual obligation to correct defective work after substantial or final completion.

24 ~~(10)~~(9) "Monetary damages" means the dollar amount required in excess of the contract

25 amount necessary to provide the claimant with what was agreed to be provided under the terms of

26 the contract reduced by any amount due and unpaid to the respondent inclusive of any and all

27 awards and restitution.

28 (10) "Office" means the state building office.

29 (11) "Person" means any natural person, joint venture, partnership, corporation, or other

30 business or legal entity who or that enters into a contract for construction.

31 (12) "Prime contractor" means a person who or that enters into a contract for construction

32 with the project owner.

33 (13) "Retainage" means a portion or percentage of a payment due pursuant to a contract

34 for construction that is withheld to ensure full performance of the contract for construction.

1 (14) "Staff" means ~~the executive director for the contractors' registration and licensing~~

2 ~~board, and~~ any ~~other~~ staff necessary to carry out the powers, functions, and duties of the board

3 including inspectors, hearing officers, and other supportive staff.

4 (15) "State" means the state of Rhode Island.

5 (16) "Structure" means (i) Any commercial building; or (ii) Any building containing one

6 or more residences and their appurtenances. The board's dispute resolution process shall apply only

7 to residential structures containing dwelling units, as defined in the state building code, or

8 residential portions of other types of buildings without regard to how many units any structure may

9 contain. The board retains jurisdiction and may conduct hearings regarding violations against all

10 contractors required to be registered or licensed by the board.

11 (17) "Substantially" means any violation that affects the health, safety, and welfare of the

12 general public.

13 (18) "Substantial completion" means the stage in the progress of the project when the work

14 required by the contract for construction with the project owner is sufficiently complete in

15 accordance with the contract for construction so that the project owner may occupy or utilize the

16 work for its intended use; provided, further, that "substantial completion" may apply to the entire

17 project or a phase of the entire project if the contract for construction with the project owner

18 expressly permits substantial completion to apply to defined phases of the project.

19 5-65-3. Registration for work on a structure required of contractor -- Issuance of

20 building permits to unregistered or unlicensed contractors prohibited -- Evidence of activity

21 as a contractor -- Duties of contractors.

22 (a) A person shall not undertake, offer to undertake, or submit a bid to do work as a

23 contractor on a structure or arrange to have work done unless that person has a current, valid

24 certificate of registration for all construction work issued by the board. A partnership, corporation,

25 or joint venture may do the work; offer to undertake the work; or submit a bid to do the work only

26 if that partnership, corporation, or joint venture is registered for the work. In the case of registration

27 by a corporation or partnership, an individual shall be designated to be responsible for the

28 corporation's or partnership's work. The corporation or partnership and its designee shall be jointly

29 and severally liable for the payment of the registration fee, as required in this chapter, and for

30 violations of any provisions of this chapter. Disciplinary action taken on a registration held by a

31 corporation, partnership, or sole proprietor may affect other registrations held by the same

32 corporation, partnership, or sole proprietorship, and may preclude future registration by the

33 principal of that business entity.

34 (b) A registered partnership or corporation shall notify the board in writing immediately

1 upon any change in partners or corporate officers.

2 (c) A city, town, or the state shall not issue a building permit to anyone required to be

3 registered under this chapter who does not have a current, valid certificate of registration

4 identification card or valid license that shall be presented at the time of issuance of a permit and

5 shall become a condition of a valid permit. Each city, town, or the state that requires the issuance

6 of a permit as a condition precedent to construction, alteration, improvement, demolition,

7 movement, or repair of any building or structure or the appurtenance to the structure shall also

8 require that each applicant for the permit ~~file,~~ as a condition to issuing the permit, ~~a written affidavit~~

9 ~~subject to the penalties of perjury, subscribed by the applicant, that the applicant~~ is registered under

10 the provisions of this chapter, giving the number of the registration and stating that the registration

11 is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, listing

12 the basis for the exemption. The city, town, or the state shall list the contractor's registration number

13 on the permit obtained by that contractor, and if a homeowner is issued a permit, the building

14 inspector or official must ascertain registration numbers of each contractor on the premises and

15 shall inform the registration board of any non-registered contractors performing work at the site.

16 (d) Every city and town that requires the issuance of a business license as a condition

17 precedent to engaging, within the city or town, in a business that is subject to regulation under this

18 chapter, shall require that each licensee and each applicant for issuance or renewal of the license

19 file, or has on file, with the city or town a signed statement that the licensee or applicant is registered

20 under the provisions of this chapter and stating that the registration is in full force and effect.

21 (e) It shall be prima facie evidence of doing business as a contractor when a person for that

22 person's own use performs, employs others to perform, or for compensation and with the intent to

23 sell the structure, arranges to have performed any work described in § 5-65-1(4) if within any one

24 twelve-month (12) period that person offers for sale one or more structures on which that work was

25 performed.

26 (f) Registration under this chapter shall be prima facie evidence that the registrant conducts

27 a separate, independent business.

28 (g) The provisions of this chapter shall be exclusive and no city or town shall require or

29 shall issue any registrations or licenses nor charge any fee for the regulatory registration of any

30 contractor registered with the board. Nothing in this subsection shall limit or abridge the authority

31 of any city or town to license and levy and collect a general and nondiscriminatory license fee

32 levied upon all businesses, or to levy a tax based upon business conducted by any firm within the

33 city or town's jurisdiction, if permitted under the laws of the state.

34 (h)(1) Every contractor shall maintain a list that shall include the following information

1 about all subcontractors or other contractors performing work on a structure for that contractor:

2 (i) Names and addresses; and

3 (ii) Registration numbers or other license numbers.

4 (2) The list referred to in subsection (h)(1) of this section shall be delivered to the board

5 within twenty-four (24) hours after a request is made during reasonable working hours, or a fine of

6 twenty-five dollars ($25.00) may be imposed for each offense.

7 (i) The following subcontractors who are not employees of a registered contractor must

8 obtain a registration certificate prior to conducting any work: (1) Carpenters, including finish

9 carpenters and framers; (2) Siding installers; (3) Roofers; (4) Foundation installers, including

10 concrete installers and form installers; (5) Drywall installers; (6) Plasterers; (7) Insulation installers;

11 (8) Ceramic tile installers; (9) Floor covering installers; (10) Swimming pool installers, both above

12 ground and in ground; (11) Masons, including chimney installers, fireplace installers, and general

13 masonry erectors. This list is not all inclusive and shall not be limited to the above-referenced

14 contractors. No subcontractor licensed by another in-state agency pursuant to § 5-65-2 shall be

15 required to register, provided that said work is performed under the purview of that license.

16 (j) A contractor including, but not limited to, a general contractor, shall not hire any

17 subcontractor or other contractor to work on a structure unless the contractor is registered under

18 this chapter or exempt from registration under the provisions of § 5-65-2.

19 (k) A summary of this chapter, prepared by the board and provided at cost to all registered

20 contractors, shall be delivered by the contractor to the owner when the contractor begins work on

21 a structure; failure to comply may result in a fine.

22 (l) The registration number of each contractor shall appear in any advertising by that

23 contractor. Advertising in any form by an unregistered contractor shall be prohibited, including

24 alphabetical or classified directory listings, vehicles, business cards, and all other forms of

25 advertisements. The violations could result in a penalty being assessed by the board per

26 administrative procedures established.

27 (i) The board may publish, revoke, or suspend registrations and the date the registration

28 was suspended or revoked on a quarterly basis.

29 (ii) Use of the word "license" in any form of advertising when only registered may subject

30 the registrant or those required to be registered to a fine of one hundred dollars ($100) for each

31 offense at the discretion of the board.

32 (m) The contractor must see that permits required by the state building code are secured on

33 behalf of the owner prior to commencing the work involved. The contractor's registration number

34 must be affixed to the permit as required by the state building code.

1 (n) The board may assess an interest penalty of twelve percent (12%) annually when a

2 monetary award is ordered by the board.

3 (o) All work performed, including labor and materials, in excess of one thousand dollars

4 ($1,000) shall be accompanied by a contract in writing. Contracts required pursuant to this

5 subsection shall include a location on or near the signature line location on or in which the parties

6 to the contract shall initial to evidence the receipt of certain consumer education materials or

7 information approved and provided by the board to the contractor. The educational materials and/or

8 information shall include, but not be limited to, the following notice and shall be provided by the

9 contractor to the homeowner:

10 NOTICE OF POSSIBLE MECHANIC'S LIEN

11 To: Insert name of owner, lessee or tenant, or owner of less than the simple fee.

12 The undersigned is about to perform work and/or furnish materials for the construction,

13 erection, alterations or repair upon the land at (INSERT ADDRESS) under contract with you. This

14 is a notice that the undersigned and any other persons who provide labor and materials for the

15 improvement under contract with the undersigned may file a mechanic's lien upon the land in the

16 event of nonpayment to them. It is your responsibility to assure yourself that those other persons

17 under contract with the undersigned receive payment for their work performed and materials

18 furnished for the construction, erection, alteration or repair upon the land. Failure to adhere to the

19 provisions of this subsection may result in a one-thousand-dollar ($1,000) fine against the

20 contractor and shall not affect the right of any other person performing work or furnishing materials

21 of claiming a lien pursuant to chapter 28 of title 34. However, such person failing to provide such

22 notice shall indemnify and hold harmless any owner, lessee or tenant, or owner of less than the fee

23 simple from any payment or costs incurred on account of any liens claims by those not in privity

24 with them, unless such owner, lessee or tenant, or owner of less than the fee simple shall not have

25 paid such person.

26 (p) Contracts entered into must contain notice of right of rescission as stipulated in all

27 pertinent Rhode Island consumer protection laws and/or § 5-65-27 if applicable.

28 (q) The contractor must stipulate whether or not all the proper insurances are in effect for

29 each job contracted.

30 (r) Contractors who are in compliance with the provisions of this subsection shall be

31 exempt from the requirements of § 34-28-4.1.

32 (s) In addition to the requirements of this chapter, contractors engaged in well drilling

33 activities shall also be subject to regulations pertaining to licensing and registration promulgated

34 by the contractors' registration and licensing board pursuant to chapter 65.2 of this title and § 46-

1 13.2-4.

2 5-65-7.1. Notice of cancellation or failure to renew policies.

3 Upon the cancellation or failure to renew, the insurance company having written a liability

4 policy, as described in § 5-65-7, shall notify ~~the director of~~ the contractors' registration and

5 licensing board of the cancellation or failure to renew. The policy shall continue in effect until ten

6 (10) days after written notice of the cancellation is given to ~~the director of~~ the contractors'

7 registration and licensing board of the cancellation or termination of the liability policy by the

8 issuing insurance company or companies in addition to any other notices which may be required

9 by law. Any insurance company that fails to notify the ~~director~~ contractors’ registration and

10 licensing board, as required in this section shall be subject to prosecution for a misdemeanor and

11 upon conviction of that offense may be punished by a fine of not more than two hundred fifty

12 dollars ($250) for each offense and shall be responsible for any claims, fines or penalties from any

13 parties resulting from lack of notice. All criminal actions for any violation of this section shall be

14 prosecuted by the attorney general. The attorney general shall prosecute actions to enforce the

15 payment penalties and fines at the request of the director of the department of business regulation

16 or the director’s designee.

17 5-65-10. Grounds for discipline -- Injunctions.

18 (a) The board or ~~commission~~ office may revoke, suspend, or refuse to issue, reinstate, or

19 reissue a certificate of registration if the board or ~~commission~~ office determines after notice and

20 opportunity for a hearing:

21 (1) That the registrant or applicant has violated § 5-65-3.

22 (2) That the insurance required by § 5-65-7 is not currently in effect.

23 (3) That the registrant, licensee or applicant has engaged in conduct as a contractor that is

24 dishonest or fraudulent that the board finds injurious to the welfare of the public.

25 (4) Has violated a rule or order of the board.

26 (5) That the registrant has knowingly assisted an unregistered person to act in violation of

27 this chapter.

28 (6) That a lien was filed on a structure under chapter 28 of title 34 because the registrant or

29 applicant wrongfully failed to perform a contractual duty to pay money to the person claiming the

30 lien.

31 (7) That the registrant has substantially violated state or local building codes.

32 (8) That the registrant has made false or fraudulent statements on his or her application.

33 (9) That a registrant has engaged in repeated acts in violation of this chapter and the board's

34 rules and regulations inclusive of substandard workmanship and any misuse of registration.

1 (10) The board may take disciplinary action against a contractor who performed work or

2 arranged to perform, while the registration was suspended, invalidated or revoked. Deposits

3 received by a contractor and ordered returned are not considered a monetary award when no

4 services or supplies have been received.

5 (11) That the registrant breached a contract.

6 (12) That the registrant performed negligent and/or improper work.

7 (13) That the registrant has advertised with a license number instead of using a registration

8 number.

9 (14) That the registrant has failed to complete a project(s) for construction or a willful

10 failure to comply with the terms of a contract or written warranty.

11 (15) That the registrant has misrepresented his registration status as valid when said

12 registration is suspended, revoked, invalidated, inactive or unregistered as required by the board.

13 (16) That the registrant has failed to pay a fine or comply with any order issued by the

14 board.

15 (17) That the registrant has failed to obtain or maintain the required continuing

16 education/units required by the board, or failed to sign the ~~affidavit~~ statement required by the board

17 for registration or renewal.

18 (18) When a violation for hiring a non-registered contractor, working as a non-registered

19 contractor, or not maintaining the insurance required is issued, the registration may become

20 invalidated until the violation is resolved or hearing is requested on this offense.

21 (19) That the registrant has violated any of the provisions of chapters 25-3, 28-3, 28-12,

22 28-14, 28-36, 28-50, and/or 37-13. A finding that the registrant has violated any of those chapters

23 shall not be grounds for imposition of a monetary penalty under subsection (c) below.

24 (b) In addition to all other remedies, when it appears to the board that a person has engaged

25 in, or is engaging in, any act, practice or transaction which violates the provisions of this chapter,

26 the board may direct the attorney general to apply to the court for an injunction restraining the

27 person from violating the provisions of this chapter. An injunction shall not be issued for failure to

28 maintain the list provided for in § 5-65-3(h) unless the court determines that the failure is

29 intentional.

30 (c)(1) For each first violation of a particular section of this chapter or any rule or regulation

31 promulgated by the board, a fine not to exceed five thousand dollars ($5,000) may be imposed after

32 a hearing by the board. Provided, further, that the board at its discretion may, after a hearing, impose

33 an additional fine up to but not to exceed the face value of the contract or the actual damages caused

34 by the contractor, whichever shall be greater. Where the claim is for actual damages the board shall

1 require proof satisfactory to the board indicating said damages. Where corrective work is completed

2 as ordered by the board, the fine assessed may be reduced as determined by the board. Fines and

3 decisions on claims or violations inclusive of monetary awards can be imposed against registered

4 as well as contractors required to be registered by the board.

5 (2) For each subsequent violation of a particular subsection of this chapter or of a rule or

6 regulation promulgated by the board, a fine not to exceed ten thousand dollars ($10,000) may be

7 imposed after a hearing by the board. All fines collected by the board shall be deposited as general

8 revenues until June 30, 2008 to be used to enforce the provisions of this chapter. Beginning July 1,

9 2008, all fines collected by the board shall be deposited into a restricted receipt account to be used

10 to enforce the provisions of this chapter.

11 (3) For the first violation of § 5-65-3, only for non-registered contractors, a fine of up to

12 five thousand dollars ($5,000) for a first offense and up to ten thousand dollars ($10,000) for each

13 subsequent offense shall be imposed.

14 (d) The hearing officer, upon rendering a conclusion may require the registrant, in lieu of

15 a fine, to attend continuing education courses as appropriate. Failure to adhere to the requirement

16 could result in immediate revocation of registration.

17 (e) The expiration of a registration by operation of law or by order or decision of the board

18 or a court, or the voluntary surrender of registration by the registrant, does not deprive the board of

19 jurisdiction, an action or disciplinary proceeding against the registrant or to render a decision

20 suspending or revoking a registration.

21 (f) In emergency situations, when a registrant is acting to the detriment of the health,

22 welfare and safety of the general public, the ~~board's executive~~ director of the department of business

23 regulation or the director’s designee may revoke or suspend a registration without a hearing for just

24 cause for a period of thirty (30) days.

25 (g) A registrant may petition the board to partially or completely expunge his or her record

26 provided that notice of said expungement proceedings has been provided to the claimant who was

27 the subject of the violation. For purposes of this subsection "notice" shall consist of a mailing to

28 the last known address of the claimant and need not be actual notice.

29 (h) Any person or contractor, registered or not, who uses another contractor's registration,

30 contractor's registration identification card, or allows another person to use their contractor's

31 registration fraudulently in any way, will be subject to a fine not exceeding ten thousand dollars

32 ($10,000).

1 (j) It shall be unlawful to retain a social security number or copy of the driver's license from

2 a registrant by a building official as a condition of obtaining a permit.

3 (k) The board is further authorized upon certain findings or violations to:

4 (1) Put a lien on property held by a contractor.

5 (2) Take action on registrant when the continuing education requirements have failed to be

6 attained as required in rules and regulations.

7 (3) When upon investigation a complaint reveals: serious code infractions; unsatisfied

8 mechanic's liens; abandonment of a job for a substantial period of time without apparent cause; or

9 any other conduct detrimental to the public, the board can double the fines.

10 (4) Suspend, revoke or refuse to issue, reinstate or reissue a certificate of registration to

11 any registrant who has contracted, advertised, offered to contract or submitted a bid when the

12 contractor's registration is suspended, revoked, invalidated or inactive or unregistered as required

13 by the board.

14 (l) No person shall register as a contractor with the contractors' registration board for the

15 purpose of deceiving or circumventing the registration process by enabling a person whose

16 registration has been suspended or revoked to conduct business. Provided, further, that any person

17 who, in good faith relies on the board or the contractor's registration website for information

18 regarding registration status of another shall be exempt from violations pursuant to this section if

19 the information is not correct. Violators of this section shall be jointly and individually liable for

20 damages resulting from their activities as contractors pursuant to this chapter. Violations of this

21 subsection may result in a revocation of registration and/or fines not to exceed ten thousand dollars

22 ($10,000) and/or up to one year in jail. Furthermore, the director of the department of business

23 regulation or the director’s designee shall require that all applicants for registration shall ~~swear by~~

24 ~~way of affidavit~~ sign a statement that they are aware of this provision and its implications.

25 (m) Upon receipt of notice of a final determination, after the exhaustion of all appeals, by

26 the department of labor and training, consent agreement, or court order that a registered contractor

27 violated any of the provisions of chapters 25-3, 28-3, 28-12, 28-14, 28-36, 28-50, and/or 37-13 and

28 owes any wages, benefits or other sums arising out of such violation, the board shall immediately

29 suspend the contractor's registration of such contractor in accordance with this subsection. The

30 suspension shall continue until all wages, benefits, or other sums owed have been paid or the

1 reinstated as the case may be. The foregoing sanction is mandatory, but shall not be grounds for

2 imposition of a monetary penalty under subsection (c) above.

3 (n) When the registration of a contractor has been revoked or suspended, neither the

4 contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same

5 principals or officers as the partnership, limited partnership, limited liability partnership, joint

6 venture, limited liability company, corporation, or sole proprietorship as the subject contractor; and

7 (2) Is engaged in the same or equivalent trade or activity shall be qualified to register or retain a

8 registration as a contractor under this chapter, unless and until the board shall determine that the

9 basis of the revocation or suspension has been satisfied or removed and that the registrant or

10 applicant otherwise satisfies the requirements for registration under this chapter. Notwithstanding

11 the foregoing, a natural person may obtain relief from the application and enforcement of this

12 subsection as to him or her, if he or she can establish that he or she was not responsible for, and did

13 not acquiesce to the misconduct which is the basis of the revocation, suspension or denial of

14 registration.

15 5-65-15. Officers -- Quorum -- Compensation and expenses.

16 (a) The board shall select from among its members a chairperson, a vice chairperson and

17 any other officers for the terms and with the duties and powers necessary for the performance of

18 their duties that the board determines.

19 (b) A majority of the members of the board shall constitute a quorum for the transaction of

20 business.

21 (c) The board shall have ~~an executive director~~ a member of staff who shall attend all

22 meetings and shall direct the conduct of any investigation which may be necessary in the

23 preparation of any hearing. ~~The executive director shall be a member of the classified service on~~

24 ~~the staff of the state building commissioner and shall be compensated as appropriate for the required~~

25 ~~expertise.~~

26 5-65-15.1. Staff.

27 (a) The ~~state building code commission~~ office shall provide the board with appropriate

28 staff, ~~including hearing officials and investigators,~~ who shall perform their duties under the

29 administrative supervision of the ~~executive~~ director of the department of business regulation or the

30 director’s designee.

1 35 of title 42, and the administrative regulations promulgated by the board, by the hearings

2 officer(s) assigned by the ~~executive~~ director of the department of business regulation or the

3 director’s designee ~~of the board~~.

4 (b) The board has jurisdiction to hear appeals from decisions of the hearing officer(s), and

5 may by regulation impose a filing fee, not to exceed twenty dollars ($20.00), for any appeal.

6 (c) Notwithstanding the preceding, the ~~executive~~ director of the department of business

7 regulation or the director’s designee ~~for the board~~ is authorized to resolve contested enforcement

8 or claim proceedings through informal disposition pursuant to regulations promulgated by the

9 board.

10 SECTION 2. Effective January 1, 2020, Section 5-84-3 of the General Laws in Chapter 5-

11 84 entitled "Division of Building, Design and Fire Professionals" is hereby amended to read as

12 follows:

13 5-84-3. Division membership.

14 The division consists of the membership of the office of the state fire marshal, the fire

15 safety code board of review and appeal, and the ~~office of the~~ state building office. ~~commissioner,~~

16 ~~the board of registration for professional engineers, board of registration for professional land~~

17 ~~surveyors, board of examination and registration of architects, the board of examiners of landscape~~

18 ~~architects, and the contractors' registration and licensing board.~~

19 SECTION 3. Effective January 1, 2020, Section 5-84 of the General Laws entitled

20 "Division of Building, Design and Fire Professionals" is hereby amended by adding thereto the

21 following section:

22 5-84-3. 1. Establishment of the state building office.

23 (a) There shall be the state building office within the department of business regulation's

24 division of building, design and fire professionals which shall consist of the office of the state

25 building commissioner, the board of registration for professional engineers, the board of

26 registration for professional land surveyors, the board of examination and registration of architects,

27 the board of examiners of landscape architects, and the contractors' registration and licensing board.

28 (b) The department of business regulation is hereby designated as the administrative entity

29 responsible for the operation of the state building office. In the discretion of the director of business

30 regulation, the department shall provide appropriate staff support to the state building office, and

31 any such staff may be shared within the state building office as necessary.

1 hereby amended to read as follows:

2 23-27.3-100.1.3. Creation of the state building code standards committee.

3 (a) There is created as an agency of state government a state building code standards

4 committee that shall adopt, promulgate, and administer a state building code for the purpose of

5 regulating the design, construction, and use of buildings or structures previously erected, in

6 accordance with a rehabilitation building and fire code for existing buildings and structures

7 developed pursuant to chapter 29.1 of this title, and to make any amendments to them as they, from

8 time to time, deem necessary or desirable, the building code to include any code, rule, or regulation

9 incorporated in the code by reference.

10 (b) A standing subcommittee is made part of the state building code standards committee

11 to promulgate and administer a state housing and property maintenance code for the purpose of

12 establishing minimum requirements and standards and to regulate the occupancy and use of existing

13 premises, structures, buildings, equipment, and facilities, and to make amendments to them as

14 deemed necessary.

15 (c) A joint committee, with membership as set forth in § 23-29.1-2(a) from the state

16 building code standards committee, shall develop and recommend for adoption and promulgation,

17 a rehabilitation building and fire code for existing buildings and structures, which code shall include

18 building code elements to be administered by the state building code standards committee as the

19 authority having jurisdiction over the elements.

20 (d) The state building code standards committee shall be housed within the ~~office of the~~

21 state building ~~commissioner~~ office.

22 23-27.3-100.1.4. Appointment and qualifications of the committee.

23 (a) The building code standards committee shall be composed of twenty-five (25)

24 members, residents of the state who shall be appointed by the governor with the advice and consent

25 of the senate. Eight (8) members are to be appointed for terms of one year each, seven (7) for a

26 term of two (2) years each, and ten (10) for terms of three (3) years each. Annually, thereafter, the

27 governor, with the advice and consent of the senate, shall appoint members to the committee to

28 succeed those whose terms expired; the members to serve for terms of three (3) years each and until

29 their successors are appointed and qualified. Two (2) members shall be architects registered in the

30 state; three (3) shall be professional engineers registered in the state, one specializing in

31 mechanical, one specializing in structural, and one specializing in electrical engineering; one

32 landscape architect, registered in the state; one full-time certified electrical inspector; two (2) shall

1 two (2) shall be from the Rhode Island Builders Association; one shall be a holder of Class "A"

2 electrician's license; one shall be a master plumber; two (2) shall be from the general public; three

3 (3) shall be building officials in office, one from a municipality with a population of sixty thousand

4 (60,000) persons or more, one from a municipality with a population of over twenty thousand

5 (20,000) persons but less than sixty thousand (60,000), and one from a municipality with a

6 population of less than twenty thousand (20,000) persons; one shall be a minimum housing official

7 in office from one of the local municipalities; and two (2) residents of the state who shall be persons

8 with disabilities as defined in § 42-87-1.

9 (b) All members shall have no less than five (5) years practical experience in their

10 profession or business. The committee shall elect its own chairperson and may elect from among

11 its members such other officers as it deems necessary. Thirteen (13) members of the board shall

12 constitute a quorum and the vote of a majority vote of those present shall be required for action.

13 The committee shall adopt rules and regulations for procedure. The state building commissioner

14 shall serve as the executive secretary to the committee. The committee shall have the power, within

15 the limits of appropriations provided therefor, to employ such assistance as may be necessary to

16 conduct business.

17 (c) Members of the ~~commission~~ committee shall be removable by the governor pursuant to

18 § 36-1-7 and for cause only, and removal solely for partisan or personal reasons unrelated to

19 capacity or fitness for the office shall be unlawful.

20 (d) The state housing and property maintenance code subcommittee shall be composed of

21 nine (9) members, residents of the state. Five (5) of these members are to be current members of

22 the state building code standards committee and are to be appointed by that committee. The four

23 (4) remaining members are to be appointed by the governor, with the advice and consent of the

24 senate. The four (4) appointed by the governor, with the advice and consent of the senate, shall

25 initially be appointed on a staggered term basis, one for one year, one for two (2) years, and two

26 (2) for three (3) years. Annually thereafter, the building code standards committee, and the

27 governor, with the advice and consent of the senate, shall appoint the subcommittee members, for

28 which they are respectively responsible, to succeed those whose terms have expired; the members

29 to serve for terms of three (3) years each and until their successors are appointed and qualified. Of

30 the members appointed by the committee, one shall be a full-time certified electrical inspector; one

31 shall be a master plumber and mechanical equipment expert; one shall be a builder or

32 superintendent of building construction; one member shall be a qualified state fire code official;

33 one shall be a property manager; and one shall be a current minimum housing official from a local

1 of the senate, shall all be current minimum housing officials from local municipalities. One shall

2 be from a municipality with a population of sixty thousand (60,000) persons or more, two (2) from

3 municipalities with a population of over twenty thousand (20,000) persons but less than sixty

4 thousand (60,000), and one from a municipality with a population of less than twenty thousand

5 (20,000) persons.

6 23-27.3-100.1.5.1. Housing and maintenance code -- Powers and duties of the building

7 code standards committee.

8 (a) The committee shall have the authority to adopt and promulgate a housing and

9 maintenance code which shall be reasonably consistent with recognized and accepted standards

10 and codes promoted by national model code organizations. The code shall be submitted to the

11 legislature for adoption and amendments as required. Once adopted by the legislature, the law shall

12 not be amended by the cities and towns. The committee shall have the singular authority to submit

13 further amendments to the legislature as required. These new provisions shall replace, and/or amend

14 the existing provisions of the Minimum Housing Standards, chapter 24.2 of title 45, and the

15 Housing, Maintenance and Occupancy Code, chapter 24.3 of title 45. Once adopted by the

16 legislature, the laws shall not be amended by the cities and towns without prior approval of the

17 committee and subsequently the legislature. The state housing and property maintenance code

18 subcommittee shall carry out its responsibilities to the building code standards committee by acting

19 as an entity of the committee in administering the code, by recommending needed code

20 amendments, by promulgating the code, and by serving as the board of standards and appeals for

21 the code.

22 (b) The subcommittee shall also have a recording secretary who shall attend all meetings

23 and direct the conduct of any investigation which may be necessary in the preparation of any

24 hearing. The recording secretary shall be a member of the classified service on the staff of the state

25 building ~~commissioner~~ office and shall be compensated as appropriate for the expertise required.

26 The administration and appeals procedures pertaining to these laws shall remain in the prerogatives

27 of the local municipalities and the legislature.

28 (c) Within ninety (90) days after the end of each fiscal year, the committee shall approve

29 and submit an annual report to the governor, the speaker of the house of representatives, the

30 president of the senate, and the secretary of state, of its activities during that fiscal year. The report

31 shall provide: an operating statement summarizing meetings or hearings held, including meeting

32 minutes, subjects addressed, decisions rendered, applications considered and their disposition, rules

33 or regulations promulgated, studies conducted, policies and plans developed, approved, or

34 modified, and programs administered or initiated; a consolidated financial statement of all funds

1 received and expended including the source of the funds, a listing of any staff supported by these

2 funds, and a summary of any clerical, administrative or technical support received; a summary of

3 performance during the previous fiscal year including accomplishments, shortcomings and

4 remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

5 authority of the committee; a summary of any training courses held pursuant to this chapter; a

6 briefing on anticipated activities in the upcoming fiscal year, and findings and recommendations

7 for improvements. The report shall be posted electronically on the websites of the general assembly

8 and the secretary of state pursuant to the provisions of § 42-20-8.2. The director of the department

9 of administration shall be responsible for the enforcement of the provisions of this section.

10 (d) To conduct a training course for newly appointed and qualified members within six (6)

11 months of their qualification or designation. The course shall be developed by the chair of the

12 committee, be approved by the committee, and be conducted by the chair of the committee. The

13 committee may approve the use of any committee and/or staff members and/or individuals to assist

14 with training. The training course shall include instruction in the following areas: the provisions of

15 chapters 42-46, 36-14 and 38-2; and the committee's rules and regulations. The director of the

16 department of administration shall, within ninety (90) days of June 16, 2006, prepare and

17 disseminate training materials relating to the provisions of chapters 42-46, 36-14, and 38-2.

18 23-27.3-107.2. Alternate local building official.

19 The appropriate local authority shall appoint an alternate building official to act on behalf

20 of the building official during any period of disability caused by, but not limited to, illness, absence,

21 or conflict of interest. The alternate building official shall meet the qualifications of § 23-27.3-

22 107.5. The appropriate local authority shall appoint an alternate local building official within ten

23 (10) calendar days or request the ~~commissioner's~~ state building office's services as allowed in § 23-

24 27.3-107.3. When the ~~state building commissioner's~~ office's services are used due to the lack of a

25 local building official, the salary and operating expenses of the commissioner or his or her designee

26 shall be reimbursed to the ~~commissioner's account~~ state as allowed by § 23-27.3-108.2(c).

27 23-27.3-107.8. Restriction on employees' activities.

28 Neither the building commissioner, nor any full-time building officials, or full-time local

29 inspectors, as defined in this code, shall be engaged in, or directly or indirectly connected with, the

30 furnishing of labor, materials, or appliances for the construction, alteration, or maintenance of any

31 building or structure, or the preparation of plans or specifications therefor for the state, in the case

32 of the building commissioner, or within the municipality in which he or she is respectively

33 employed in the case of a building official or local inspector unless the individual is the owner of

34 the building or structure; nor shall any officer or employee associated with the state building office

1 ~~department of the state~~ or municipality engage in any work which conflicts with his or her official

2 duties or with the interests of the department of business regulation.

3 23-27.3-107.9. Relief from personal responsibility.

4 The state building commissioner, the members and staff of the building code standards

5 committee and the board of standards and appeals, the building official, officer, or employee

6 charged with the enforcement, administration and/or review of this code, while acting for the state

7 or a municipality, shall not thereby render himself or herself liable personally, and he or she is

8 hereby relieved from all personal liability for any damages that may accrue to persons or property

9 as a result of any act required or permitted in the discharge of his or her official duties. Any suit

10 instituted against any of these officers or employees because of an act performed by him or her in

11 the lawful discharge of his or her duties and under the provisions of this code shall be defended by

12 the legal representative of the state in the case of the members and staff of the building code

13 standards committee and the board of standards and appeals, and the building commissioner or his

14 or her agents or by the legal representative of the municipality, in the case of the building official,

15 officer, or employee, until the final determination of the proceedings. In no case shall members and

16 staff of the building code standards committee and the board of standards and appeals, the state

17 building commissioner, building official, or any of their subordinates be liable for costs or damages

18 in any action, suit, or proceeding that may be instituted pursuant to the provisions of this code and

19 the members and staff of the building code standards committee and the board of standards and

20 appeals, the state building commissioner or his or her agents or an officer of the ~~department of~~ state

21 building ~~inspection~~ office, acting in good faith and without malice and within the scope of their

22 employment, is free from liability for acts performed under any of its provisions or by reason of

23 any act or omission in the performance of his or her official duties in connection with this code.

24 23-27.3-108.1.3.1. Test results.

25 Copies of the results of all the tests shall be forwarded to the committee after completion

26 of the tests within ten (10) days, and shall be kept on file in the permanent records of the state

27 building ~~department~~ office.

28 23-27.3-108.2. State building commissioner's duties.

29 (a) This code shall be enforced by the state building commissioner as to any structures or

30 buildings or parts thereof that are owned or are temporarily or permanently under the jurisdiction

31 of the state or any of its departments, commissions, agencies, or authorities established by an act

32 of the general assembly, and as to any structures or buildings or parts thereof that are built upon

33 any land owned by or under the jurisdiction of the state.

34 (b) Permit fees for the projects shall be established by the committee. The fees shall be

1 deposited as general revenues.

2 (c)(1) The local cities and towns shall charge each permit applicant an additional .1 (.001)

3 percent levy of the total construction cost for each permit issued. The levy shall be limited to a

4 maximum of fifty dollars ($50.00) for each of the permits issued for one and two (2) family

5 dwellings. This additional levy shall be transmitted monthly to the state building ~~commission~~ office

6 at the department of business regulation, and shall be used to staff and support the purchase or lease

7 and operation of a web-accessible service and/or system to be utilized by the state and

8 municipalities for uniform, statewide electronic plan review, permit management and inspection

9 system and other programs described in this chapter. The fee levy shall be deposited as general

10 revenues.

11 (2) On or before July 1, 2013, the building commissioner shall develop a standard statewide

12 process for electronic plan review, permit management and inspection.

13 (3) On or before December 1, 2013, the building commissioner, with the assistance of the

14 office of regulatory reform, shall implement the standard statewide process for electronic plan

15 review, permit management and inspection. In addition, the building commissioner shall develop

16 a technology and implementation plan for a standard web-accessible service or system to be utilized

17 by the state and municipalities for uniform, statewide electronic plan review, permit management

18 and inspection.

19 (d) The building commissioner shall, upon request by any state contractor described in §

20 37-2-38.1, review, and when all conditions for certification have been met, certify to the state

21 controller that the payment conditions contained in § 37-2-38.1 have been met.

22 (e) The building commissioner shall coordinate the development and implementation of

23 this section with the state fire marshal to assist with the implementation of § 23-28.2-6.

24 (f) The building commissioner shall submit, in coordination with the state fire marshal, a

25 report to the governor and general assembly on or before April 1, 2013, and each April 1st

26 thereafter, providing the status of the web-accessible service and/or system implementation and

27 any recommendations for process or system improvement.

28 23-27.3-118.1. Special fees.

29 The payment of the fee for construction, alteration, removal, or demolition, and for all work

30 done in connection with, or concurrently with, the work contemplated by a building permit, shall

31 not relieve the applicant or holder of the permit from the payment of other fees that may be

32 prescribed in accordance with § 23-27.3-119.0 for water taps, sewer connections, electrical and

33 plumbing permits, erection of signs and display structures, marquees, or other appurtenant

34 structures, or fees for inspections, certificates of use and occupancy for other privileges or

1 requirements, both within and without the jurisdiction of the state building ~~department~~ office.

2 SECTION 5. Section 30-17.1-6 of the General Laws in Chapter 30-17.1 entitled "Veterans'

3 Affairs" is hereby amended to read as follows:

4 30-17.1-6. Establishment of the office of veterans' affairs; director.

5 (a) There is hereby established within the executive branch of government an office of

6 veterans' affairs. The director of the office of veterans' affairs shall be a person qualified through

7 experience and training and shall be an honorably discharged war veteran of the United States

8 armed forces. The director of the office of veterans' affairs shall be appointed by and report directly

9 to the governor, but the office shall reside within the department of human services for

10 administrative purposes.

11 (b) The director of veterans' affairs shall have all such powers, consistent with law, as are

12 necessary and/or convenient to effectuate the purposes of this chapter and to administer its

13 functions, including, but, not limited to, the power to promulgate and adopt regulations. The

14 director shall have authority to apply for, receive, and administer grants and funds from the federal

15 government and all other public and private entities to accomplish the purposes of the office.

16 (c) Effective July 1, 2019, the office of veterans' affairs, as established pursuant to

17 subsection (a) of this section, shall be henceforth referred to and renamed as "the office of veterans

18 services" and the director of veterans' affairs, established pursuant to subsection (a) of this section

19 shall henceforth be referred to and renamed as the "director of veterans services."

20 (d) Effective July 1, 2019, all references in the general laws to the office of veterans' affairs

21 established pursuant to subsection (a) of this section and to the director of veterans' affairs

22 established pursuant to subsection (a) of this section shall be deemed to mean and refer,

23 respectively, to the office of veterans services and the director of veterans services.

24 SECTION 6. Section 30-27-1 of the General Laws in Chapter 30-27 entitled "Veterans'

25 Organizations" is hereby repealed as follows.

26 ~~30-27-1. Appropriations for annual encampment of Spanish war veterans.~~

27 ~~The general assembly shall annually appropriate such sum as it may deem necessary to~~

28 ~~defray the expenses of the annual encampment of the united spanish war veterans, department of~~

29 ~~Rhode Island, to be expended under the direction of the department of human services or of any~~

30 ~~other department as the general assembly shall indicate and direct at any future time; and the~~

31 ~~controller is hereby authorized and directed to draw orders upon the general treasurer for the~~

32 ~~payment of that sum, or so much thereof as may be necessary from time to time, upon the receipt~~

33 ~~by the controller of proper vouchers approved by the director of human services, or such other~~

34 ~~approving authority as the general assembly may direct.~~

1 SECTION 7. Sections 31-38-7 and 31-38-18 of the General Laws in Chapter 31-38 entitled

2 "Inspection of Motor Vehicles" are hereby amended to read as follows:

3 31-38-7. Operation of official stations.

4 (a) No permit for an official station shall be assigned or transferred or used at any location

5 other than designated in it, and the permit shall be posted in a conspicuous place at the designated

6 location.

7 (b) The state certified person operating an official inspection station shall issue a certificate

8 of inspection and approval upon an official form to the owner of a vehicle upon inspection of the

9 vehicle and determining that its equipment required under the provisions of this chapter is in good

10 condition and proper adjustment, otherwise, no certificate shall be issued. A record and report shall

11 be made of every inspection and every certificate issued. The records shall be kept available for

12 review by ~~the motor vehicle inspection station commission or~~ those employees of the department

13 of revenue that the director may designate.

14 (c) The following fees shall be charged for inspection and issuance of certificate of

15 inspection and approval:

16 (1) For every vehicle with a registered gross weight of not more than eight thousand five

17 hundred pounds (8,500 lbs.), the fee shall be included with the fee charged pursuant to § 31-47.1-

18 11;

19 (2) For every vehicle of a registered gross weight of more than eight thousand five hundred

20 pounds (8,500 lbs.) or more, except trailers, fifteen dollars ($15.00);

21 (3) For every motorcycle and electrically powered vehicle, eleven dollars ($11.00);

22 (4) For every trailer or semi-trailer with a registered gross weight of more than one

23 thousand pounds (1,000 lbs.), eleven dollars ($11.00); and

24 (5) Provided that for the inspection of vehicles used for the transportation of persons for

25 hire, as provided in § 31-22-12, and subject to an inspection pursuant to chapter 47.1 of this title,

26 the fee shall be included with the fee charged pursuant to § 31-47.1-11.

27 (d) The director of the department of revenue may establish a state inspection facility at

28 which any motor vehicle may be reinspected at no cost to the owner. The state inspection facility

29 may inspect all public conveyance vehicles or these inspections may be otherwise provided for by

30 the director, or any other vehicles which in the opinion of the director of revenue, or his or her

31 designee, require specific testing to ensure for the health and safety of the general public.

32 (e) Any other inspections or activities which may be required to be performed at a state

33 inspection facility may be performed at any official inspection station if determined by the director.

34 31-38-18. Conduct of hearings.

1 The director of the department of revenue~~commission~~ shall hold and conduct hearings in

2 accordance with § 31-38-17. These hearings shall be governed by rules to be adopted by the director

3 of the department of revenue~~commission~~, and the director of the department of revenue~~commission~~

4 shall not be bound by technical rules of evidence. The director of the department of

5 revenue~~commission~~ may subpoena witnesses and require the producing of documental evidence,

6 ~~and shall sit as an impartial independent body~~ in order to make decisions affecting the interest of

7 the motor vehicle inspection owner and/or operator. ~~The concurrence of a majority of the members~~

8 ~~present and voting of the commission is required for a decision.~~

9 SECTION 8. Sections 31-38-15 and 31-38-16 of the General Laws in Chapter 31-38

10 entitled "Inspection of Motor Vehicles" are hereby repealed.

11 ~~31-38-15. Motor vehicle inspection commission.~~

12 ~~(a) Within the department of revenue there shall be a motor vehicle inspection commission,~~

13 ~~referred to in this chapter as the "commission", which shall function as a unit in the department.~~

14 ~~The commission shall consist of seven (7) members who shall be appointed by the governor, with~~

15 ~~the advice and consent of the senate. In making said appointments, the governor shall give due~~

16 ~~consideration to including in the commission's membership one or more garage keeper(s) and/or~~

17 ~~inspection station owner(s).~~

18 ~~(b) The tenure of all members of the commission as of the effective date of this act [March~~

19 ~~29, 2006] shall expire on the effective date of this act [March 29, 2006], and the governor shall~~

20 ~~nominate seven (7) new members as follows:~~

21 ~~(1) The governor shall appoint seven (7) members of the commission; three (3) of whom~~

22 ~~shall serve initial terms of three (3) years; two (2) of whom shall serve an initial term of two (2)~~

23 ~~years; and two (2) of whom shall serve an initial term of one year.~~

24 ~~(2) Thereafter, all members of the commission shall be appointed to serve three (3) year~~

25 ~~terms.~~

26 ~~(c) The governor shall designate one member of the commission to serve as chairperson.~~

27 ~~The commission may elect from among its members such other officers as they deem necessary.~~

28 ~~(d) No person shall be eligible for appointment to the commission after the effective date~~

29 ~~of this act [March 29, 2006] unless he or she is a resident of this state.~~

30 ~~(e) Four (4) members of the commission shall constitute a quorum.~~

31 ~~(f) Members of the commission shall be removable by the governor pursuant to the~~

32 ~~provisions of § 36-1-7 of the general laws and for cause only, and removal solely for partisan or~~

33 ~~personal reasons unrelated to capacity of fitness for the office shall be unlawful.~~

34 ~~(g) Within ninety (90) days after the end of each fiscal year, the commission shall approve~~

1 ~~and submit an annual report to the governor, the speaker of the house of representatives, the~~

2 ~~president of the senate, and the secretary of state of its activities during that fiscal year. The report~~

3 ~~shall provide: an operating statement summarizing meetings or hearings held, including meeting~~

4 ~~minutes, subjects addressed, decisions rendered, licenses considered and their disposition, rules or~~

5 ~~regulations promulgated, studies conducted, policies and plans developed, approved or modified~~

6 ~~and programs administered or initiated; a consolidated financial statement of all funds received and~~

7 ~~expended including the source of the funds, a listing of any staff supported by these funds and a~~

8 ~~summary of any clerical, administrative or technical support received; a summary of performance~~

9 ~~during the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis~~

10 ~~of hearings, complaints, suspensions or other legal matters related to the authority of the~~

11 ~~commission; a summary of any training courses held pursuant to the provisions of this section; a~~

12 ~~briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations~~

13 ~~for improvements. The report shall be posted electronically on the general assembly and secretary~~

14 ~~of state's websites as prescribed in § 42-20-8.2. The director of the department of revenue shall be~~

15 ~~responsible for the enforcement of the provisions of this subsection.~~

16 ~~(h) To conduct a training course for newly appointed and qualified members within six (6)~~

17 ~~months of their qualification or designation. The course shall be developed by the chair of the~~

18 ~~commission, approved by the commission, and conducted by the chair of the commission. The~~

19 ~~commission may approve the use of any commission or staff members or other individuals to assist~~

20 ~~with training. The training course shall include instruction in the following areas: the provisions of~~

21 ~~chapters 42-46, 36-14, and 38-2; and the commission's rules and regulations. The director of the~~

22 ~~department of revenue shall, within ninety (90) days of the effective date of this act [March 29,~~

23 ~~2006], prepare and disseminate training material relating to the provisions of chapters 42-46, 36-~~

24 ~~14, and 38-2.~~

25 ~~31-38-16. Meetings -- Compensation.~~

26 ~~The commission shall meet at least once a month to consider any matters that may be proper~~

27 ~~before it. The members of the commission shall receive no compensation for their services, but~~

28 ~~each member shall be reimbursed for traveling or other expenses that are actually incurred in the~~

29 ~~discharge of the member's duties.~~

30 SECTION 9. Sections 35-1.1-1 through 35-1.1-5 of the General Laws in Chapter 35-1.1

31 entitled "Office of Management and Budget" are hereby amended to read as follows:

32 35-1.1-1. Statement of intent.

33 The purpose of this chapter is to establish a comprehensive public finance and management

34 system for the State of Rhode Island that manages a data-driven budget process, monitors state

1 departments' and agencies' performance, ~~maximizes the application for and use of federal grants~~

2 improves the regulatory climate and ensures accountability and transparency regarding the use of

3 public funds and regulatory impact.

4 35-1.1-2. Establishment of the office of management and budget.

5 There is hereby established within the department of administration an office of

6 management and budget. This office shall serve as the principal agency of the executive branch of

7 state government for managing budgetary functions, regulatory review, performance management,

8 internal audit, and federal grants management. In this capacity, the office shall:

9 (1) Establish an in-depth form of data analysis within and between departments and

10 agencies, creating a more informed process for resource allocation to best meet the needs of Rhode

11 Island citizens;

12 ~~(2) Identify federal grant funding opportunities to support the governor's and general~~

13 ~~assembly's major policy initiatives and provide technical assistance with the application process~~

14 ~~and post-award grants management;~~

15 (2) Analyze the impact of proposed regulations on the public and state as required by

16 chapters 42-64.13 and 42-35;

17 (3) Analyze federal budgetary issues and report on potential impacts to the state;

18 (4) Coordinate the budget functions of the state with performance management objectives;

19 (5) Maximize efficiencies in departments, agencies, advisory councils, and

20 instrumentalities of the state by improving processes and prioritizing programs;

21 (6) Be responsible for the internal audit function of state government and conduct audits of

22 any state department, state agency, or private entity that is a recipient of state funding or state

23 grants; provide management advisory and consulting services; or conduct investigations relative to

24 the financial affairs or the efficiency of management, or both, of any state department or agency.

25 35-1.1-3. Director of management and budget -- Appointment and responsibilities.

26 (a) Within the department of administration there shall be a director of management and

27 budget who shall be appointed by the director of administration with the approval of the governor.

28 The director shall be responsible to the governor and director of administration for supervising the

29 office of management and budget and for managing and providing strategic leadership and direction

30 to the budget officer, the performance management office, and the federal grants management

31 office.

32 (b) The director of management and budget shall be responsible to:

33 (1) Oversee, coordinate, and manage the functions of the budget officer as set forth by

1 agreements with federal agencies defined by § 35-3-25; and budgeting, appropriation, and receipt

2 of federal monies as set forth by chapter 41 of title 42;

3 (2) Oversee the director of regulatory reform as set forth by § 42-64.13-6;

4 ~~(2) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse for~~

5 ~~the application of federal grants;~~

6 (3) Maximize the indirect cost recoveries by state agencies set forth by § 35-4-23.1; and

7 (4) Undertake a comprehensive review and inventory of all reports filed by the executive

8 office and agencies of the state with the general assembly. The inventory should include, but not

9 be limited to: the type, title, and summary of reports; the author(s) of the reports; the specific

10 audience of the reports; and a schedule of the reports' release. The inventory shall be presented to

11 the general assembly as part of the budget submission on a yearly basis. The office of management

12 and budget shall also make recommendations to consolidate, modernize the reports, and to make

13 recommendations for elimination or expansion of each report.

14 35-1.1-4. Offices and functions assigned to the office of management and budget --

15 Powers and duties.

16 (a) The offices assigned to the office of management and budget include the budget office,

17 the office of regulatory reform, the performance management office, and the office of internal audit,

18 ~~and the federal grants management office~~.

19 (b) The offices assigned to the office of management and budget shall:

20 (1) Exercise their respective powers and duties in accordance with their statutory authority

21 and the general policy established by the governor or by the director acting on behalf of the

22 governor or in accordance with the powers and authorities conferred upon the director by this

23 chapter;

24 (2) Provide such assistance or resources as may be requested or required by the governor

25 and/or the director;

26 (3) Provide such records and information as may be requested or required by the governor

27 and/or the director, to the extent allowed under the provisions of any applicable general or public

28 law, regulation, or agreement relating to the confidentiality, privacy, or disclosure of such records

29 or information; and

30 (c) Except as provided herein, no provision of this chapter or application thereof shall be

31 construed to limit or otherwise restrict the budget officer from fulfilling any statutory requirement

32 or complying with any valid rule or regulation.

33 35-1.1-5. Federal grants management.

1 federal grant applications, providing administrative assistance to agencies regarding reporting

2 requirements, providing technical assistance and approving agreements with federal agencies

3 pursuant to § 35-1-1. The ~~director~~ controller shall:

4 (1) Establish state goals and objectives for maximizing the utilization of federal aid

5 programs;

6 (2) Ensure that the state establishes and maintains statewide federally-mandated grants

7 management processes and procedures as mandated by the federal Office of Management and

8 Budget;

9 (3) Promulgate procedures and guidelines for all state departments, agencies, advisory

10 councils, instrumentalities of the state and public higher education institutions covering

11 applications for federal grants;

12 (4) Require, upon request, any state department, agency, advisory council, instrumentality

13 of the state or public higher education institution receiving a grant of money from the federal

14 government to submit a report to the ~~director~~ controller of expenditures and program measures for

15 the fiscal period in question;

16 (5) Ensure state departments and agencies adhere to the requirements of § 42-41-5

17 regarding Legislative appropriation authority and delegation thereof;

18 (6) ~~Assist the state controller in managing and overseeing overseeing~~ Manage and oversee

19 the disbursements of federal funds in accordance with § 35-6-42;

20 (7) ~~Assist the state controller in the preparation of~~ Prepare the statewide cost allocation

21 plan and serve as the monitoring agency to ensure that state departments and agencies are working

22 within the guidelines contained in the plan; and,

23 (8) Provide technical assistance to agencies to ensure resolution and closure of all single

24 state audit findings and recommendations made by the Auditor General related to Federal funding.

25 (b) ~~The office of management and budget~~ Accounts and control shall serve as the Sstate

26 Cclearinghouse for purposes of coordinating federal grants, aid and assistance applied for and/or

27 received by any state department, agency, advisory council or instrumentality of the state. Any state

28 department, agency, advisory council, or instrumentality of the state applying for federal funds,

29 aids, loans, or grants shall file a summary notification of the intended application with the ~~director~~

30 controller.

31 (1) When as a condition to receiving federal funds, the state is required to match the federal

32 funds, a statement shall be filed with the notice of intent or summary of the application stating:

33 (i) The amount and source of state funds needed for matching purposes;

34 (ii) The length of time the matching funds shall be required;

1 (iii) The growth of the program;

2 (iv) How the program will be evaluated;

3 (v) What action will be necessary should the federal funds be canceled, curtailed, or

4 restricted; and,

5 (vi) Any other financial and program management data required by the office or by law.

6 (2) Except as otherwise required, any application submitted by an executive agency for

7 federal funds, aids, loans, or grants which will require state matching or replacement funds at the

8 time of application or at any time in the future, must be approved by the director of the office of

9 management and budget or their designated agents prior to its filing with the appropriate federal

10 agency. Any application submitted by an executive agency for federal funds, aids, loans, or grants

11 which will require state matching or replacement funds at the time of application or at any time in

12 the future, when funds have not been appropriated for that express purpose, must be approved by

13 the General Assembly in accordance with § 42-41-5. When the general assembly is not in session,

14 the application shall be reported to and reviewed by the Director pursuant to rules and regulations

15 promulgated by the Director.

16 (3) When any federal funds, aids, loans, or grants are received by any state department,

17 agency, advisory council or instrumentality of the state, a report of the amount of funds received

18 shall be filed with the office; and this report shall specify the amount of funds which would

19 reimburse an agency for indirect costs, as provided for under federal ~~OMB Circular A-~~

20 87requirements.

21 (4) The ~~director~~ controller may refuse to issue approval for the disbursement of any state

22 or federal funds from the State Treasury as the result of any application which is not approved as

23 provided by this section, or in regard to which the statement or reports required by this section were

24 not filed.

25 (5) The ~~director~~ controller shall be responsible for the orderly administration of this section

26 and for issuing the appropriate guidelines and regulations from each source of funds used.

27 SECTION 10. Section 35-6-1 of the General Laws in Chapter 35-6 entitled "Accounts and

28 Control" is hereby amended to read as follows:

29 35-6-1. Controller -- Duties in general.

30 (a) Within the department of administration there shall be a controller who shall be

31 appointed by the director of administration pursuant to chapter 4 of title 36. The controller shall be

32 responsible for accounting and expenditure control and shall be required to:

33 (1) Administer a comprehensive accounting and recording system which will classify the

34 transactions of the state departments and agencies in accordance with the budget plan;

1 (2) Maintain control accounts for all supplies, materials, and equipment for all departments

2 and agencies except as otherwise provided by law;

3 (3) Prescribe a financial, accounting, and cost accounting system for state departments and

4 agencies;

5 (4) Identify federal grant funding opportunities to support the governor's and general

6 assembly's major policy initiatives and provide technical assistance with the application process

7 and post-award grants management;

8 (5) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse for

9 the application of federal grants;

10 ~~(4)~~(6) Preaudit all state receipts and expenditures;

11 ~~(5)~~(7) Prepare financial statements required by the several departments and agencies, by

12 the governor, or by the general assembly;

13 ~~(6)~~ (8) Approve the orders drawn on the general treasurer; provided, that the preaudit of all

14 expenditures under authority of the legislative department and the judicial department by the state

15 controller shall be purely ministerial, concerned only with the legality of the expenditure and

16 availability of the funds, and in no event shall the state controller interpose his or her judgment

17 regarding the wisdom or expediency of any item or items of expenditure;

18 ~~(7)~~(9) Prepare and timely file, on behalf of the state, any and all reports required by the

19 United States, including, but not limited to, the internal revenue service, or required by any

20 department or agency of the state, with respect to the state payroll; and

21 ~~(8)~~(10) Prepare a preliminary closing statement for each fiscal year. The controller shall

22 forward the statement to the chairpersons of the house finance committee and the senate finance

23 committee, with copies to the house fiscal advisor and the senate fiscal and policy advisor, by

24 September 1 following the fiscal year ending the prior June 30 or thirty (30) days after enactment

25 of the appropriations act, whichever is later. The report shall include but is not limited to:

26 (i) A report of all revenues received by the state in the completed fiscal year, together with

27 the estimates adopted for that year as contained in the final enacted budget, and together with all

28 deviations between estimated revenues and actual collections. The report shall also include cash

29 collections and accrual adjustments;

30 (ii) A comparison of actual expenditures with each of the actual appropriations, including

31 supplemental appropriations and other adjustments provided for in the Rhode Island General Laws;

32 (iii) A statement of the opening and closing surplus in the general revenue account; and

33 (iv) A statement of the opening surplus, activity, and closing surplus in the state budget

34 reserve and cash stabilization account and the state bond capital fund.

1 (b) The controller shall provide supporting information on revenues, expenditures, capital

2 projects, and debt service upon request of the house finance committee chairperson, senate finance

3 committee chairperson, house fiscal advisor, or senate fiscal and policy advisor.

4 (c) Upon issuance of the audited annual financial statement, the controller shall provide a

5 report of the differences between the preliminary financial report and the final report as contained

6 in the audited annual financial statement.

7 (d) The controller shall create a special fund not part of the general fund and shall deposit

8 amounts equivalent to all deferred contributions under this act into that fund. Any amounts

9 remaining in the fund on June 15, 2010, shall be transferred to the general treasurer who shall

10 transfer such amounts into the retirement system as appropriate.

11 (e) The controller shall implement a direct deposit payroll system for state employees.

12 (i) There shall be no service charge of any type paid by the state employee at any time

13 which shall decrease the net amount of the employee's salary deposited to the financial institution

14 of the personal choice of the employee as a result of the use of direct deposit.

15 (ii) Employees hired after September 30, 2014, shall participate in the direct deposit

16 system. At the time the employee is hired, the employee shall identify a financial institution that

17 will serve as a personal depository agent for the employee.

18 (iii) No later than June 30, 2016, each employee hired before September 30, 2014, who is

19 not a participant in the direct deposit system, shall identify a financial institution that will serve as

20 a personal depository agent for the employee.

21 (iv) The controller shall promulgate rules and regulations as necessary for implementation

22 and administration of the direct deposit system, which shall include limited exceptions to required

23 participation.

24 SECTION 11. Section 36-4-34.1 of the General Laws in Chapter 36-4 entitled "Merit

25 System" is hereby amended to read as follows:

26 36-4-34.1. Transfer of state employees.

27 (a) The director of the department of administration (the "director") is hereby authorized

28 to transfer any employee within the executive branch who is not covered by a collective bargaining

29 unit as provided in chapter 11 of this title. Any employee may be transferred to a comparable

30 position upon the approval of the director of the department of administration and the personnel

31 administrator. The transfers may be initially authorized for a period up to one year's duration and

1 duration of a transfer ~~as provided by subsection (a)~~, the director making the transfer or the personnel

2 administrator extending the transfer shall file a written report with the speaker of the house, the

3 senate president, and the chairpersons of the house and senate finance committees, for each

4 employee to be transferred. This report shall include:

5 (1) The identity of the employee;

6 (2) The employee's current work position and location, and the proposed new work position

7 and location;

8 (3) The reason(s) for the employee transfer;

9 (4) The specific task(s) to be assigned to and completed by the transferred employee;

10 (5) An explanation of how the task(s) to be completed by the transferred employee relates

11 to the mission of the transferee department, division or agency; and

12 (6) The anticipated duration of the employee's transfer.

13 SECTION 12. Sections 42-6-1, 42-6-2 and 42-6-3 of the General Laws in Chapter 42-6

14 entitled "Departments of State Government" are hereby amended to read as follows:

15 42-6-1. Enumeration of departments.

16 All the administrative powers and duties heretofore vested by law in the several state

17 departments, boards, divisions, bureaus, commissions, and other agencies shall be vested in the

18 following departments and other agencies which are specified in this title:

19 (a) Executive department (chapter 7 of this title);

20 (b) Department of state (chapter 8 of this title);

21 (c) Department of the attorney general (chapter 9 of this title);

22 (d) Treasury department (chapter 10 of this title);

23 (e) Department of administration (chapter 11 of this title);

24 (f) Department of business regulation (chapter 14 of this title);

25 (g) Department of children, youth and families (chapter 72 of this title);

26 (h) Department of corrections (chapter 56 of this title);

27 ~~(i) Department of elderly affairs (chapter 66 of this title);~~

28 (ji) Department of elementary and secondary education (chapter 60 of title 16);

29 (kj) Department of environmental management (chapter 17.1 of this title);

30 (lk) Department of health (chapter 18 of this title);

31 (ml) Board of governors for higher education (chapter 59 of title 16);

1 (po) Department of human services (chapter 12 of this title);

2 (qp) Department of transportation (chapter 13 of this title);

3 (rq) Public utilities commission (chapter 14.3 of this title);

4 (sr) Department of revenue (chapter 142 of title 42);

5 (ts) Department of public safety (chapter 7.3 of this title).

6 42-6-2. Heads of departments.

7 The governor, secretary of state, attorney general, and general treasurer, hereinafter called

8 general officers, shall each be in charge of a department. There shall also be a director of

9 administration, a director of revenue, a director of public safety, a director of human services, a

10 director of behavioral healthcare, developmental disabilities and hospitals, a director of

11 transportation, a director of business regulation, a director of labor and training, a director of

12 environmental management, a director for children, youth and families, ~~a director of elderly affairs~~,

13 and a director of corrections. Each director shall hold office at the pleasure of the governor and he

14 or she shall serve until his or her successor is duly appointed and qualified unless the director is

15 removed from office by special order of the governor.

16 42-6-3. Appointment of directors.

17 (a) At the January session following his or her election to office, the governor shall appoint

18 a director of administration, a director of revenue, a director of public safety, a director of human

19 services, a director of behavioral healthcare, developmental disabilities and hospitals, a director of

20 transportation, a director of business regulation, a director of labor and training, a director of

21 environmental management, a director for children, youth and families, ~~a director of elderly affairs~~,

22 and a director of corrections. The governor shall, in all cases of appointment of a director while the

23 senate is in session, notify the senate of his or her appointment and the senate shall, within sixty

24 (60) legislative days after receipt of the notice, act upon the appointment. If the senate shall, within

25 sixty (60) legislative days, vote to disapprove the appointment it shall so notify the governor, who

26 shall forthwith appoint and notify the senate of the appointment of a different person as director

27 and so on in like manner until the senate shall fail to so vote disapproval of the governor's

28 appointment. If the senate shall fail, for sixty (60) legislative days next after notice, to act upon any

29 appointment of which it has been notified by the governor, the person so appointed shall be the

30 director. The governor may withdraw any appointment of which he or she has given notice to the

31 senate, at any time within sixty (60) legislative days thereafter and before action has been taken

32 thereon by the senate.

1 the remainder of the governor's current term of office. Any contract entered into in violation of this

2 section after July 1, 1994 is hereby declared null and void.

3 SECTION 13. Section 42-11-10 of the General Laws in Chapter 42-11 entitled

4 "Department of Administration" is hereby amended to read as follows:

5 42-11-10. Statewide planning program.

6 (a) Findings. The general assembly finds that the people of this state have a fundamental

7 interest in the orderly development of the state; the state has a positive interest and demonstrated

8 need for establishment of a comprehensive, strategic state planning process and the preparation,

9 maintenance, and implementation of plans for the physical, economic, and social development of

10 the state; the continued growth and development of the state presents problems that cannot be met

11 by the cities and towns individually and that require effective planning by the state; and state and

12 local plans and programs must be properly coordinated with the planning requirements and

13 programs of the federal government.

14 (b) Establishment of statewide planning program.

15 (1) A statewide planning program is hereby established to prepare, adopt, and amend

16 strategic plans for the physical, economic, and social development of the state and to recommend

17 these to the governor, the general assembly, and all others concerned.

18 (2) All strategic planning, as defined in subsection ( c) of this section, undertaken by all

19 departments and agencies of the executive branch unless specifically exempted, shall be conducted

20 by or under the supervision of the statewide planning program. The statewide planning program

21 shall consist of a state planning council, and the division of statewide planning, which shall be a

22 division within the department of administration.

23 (c) Strategic planning. Strategic planning includes the following activities:

24 (1) Establishing or identifying general goals.

25 (2) Refining or detailing these goals and identifying relationships between them.

26 (3) Formulating, testing, and selecting policies and standards that will achieve desired

27 objectives.

28 (4) Preparing long-range or system plans or comprehensive programs that carry out the

29 policies and set time schedules, performance measures, and targets.

30 (5) Preparing functional, short-range plans or programs that are consistent with established

31 or desired goals, objectives, and policies, and with long-range or system plans or comprehensive

32 programs where applicable, and that establish measurable, intermediate steps toward their

33 accomplishment of the goals, objectives, policies, and/or long-range system plans.

1 duration by the operating departments, other agencies of the executive branch, and political

2 subdivisions of the state to ensure that these are consistent with, and carry out the intent of,

3 applicable strategic plans.

4 (7) Reviewing the execution of strategic plans, and the results obtained, and making

5 revisions necessary to achieve established goals.

6 (d) State guide plan. Components of strategic plans prepared and adopted in accordance

7 with this section may be designated as elements of the state guide plan. The state guide plan shall

8 be comprised of functional elements or plans dealing with land use; physical development and

9 environmental concerns; economic development; housing production; energy supply, including the

10 development of renewable energy resources in Rhode Island, and energy access, use, and

11 conservation; human services; climate change and resiliency, and other factors necessary to

12 accomplish the objective of this section. The state guide plan shall be a means for centralizing,

13 integrating, and monitoring long-range goals, policies, plans, and implementation activities related

14 thereto. State agencies concerned with specific subject areas, local governments, and the public

15 shall participate in the state guide planning process, which shall be closely coordinated with the

16 budgeting process.

17 (e) Membership of state planning council. The state planning council shall consist of the

18 following members:

19 (1) The director of the department of administration as chairperson;

20 (2) The director, policy office, in the office of the governor, as vice-chairperson;

21 (3) The governor, or his or her designee;

22 ~~(4) The budget officer;~~

23 ~~(5)~~(4) The chairperson of the housing resources commission;

24 ~~(6)~~(5) The highest-ranking administrative officer of the division of statewide planning, as

25 secretary;

26 ~~(7)~~(6) The president of the Rhode Island League of Cities and Towns or his or her designee

27 ~~and one official of local government who shall be appointed by the governor from a list of not less~~

28 ~~than three~~;

29 ~~(3) submitted by the Rhode Island League Cities and Towns;~~

30 ~~(8)~~(7) The executive director of the Rhode Island League of Cities and Towns;

31 (8) Three (3) chief elected officials of cities and towns appointed by the governor after

32 consultation with the Rhode Island League of Cities and Towns, one of whom shall be from a

33 community with a population greater than 40,000 persons; one of whom shall be from a community

34 with a population of between 20,000 and 40,000 persons; and one of whom shall be from a

1 community with a population less than 20,000 persons;

2 (9) One representative of a nonprofit community development or housing organization

3 appointed by the governor;

4 (10) ~~Six (6)~~ Four (4) public members, appointed by the governor, one of whom shall be an

5 employer with fewer than fifty (50) employees; ~~and~~ one of whom shall be an employer with greater

6 than fifty (50) employees; one of whom shall represent a professional planning or engineering

7 organization in Rhode Island; and one of whom shall represent a chamber of commerce or

8 economic development organization;

9 (11) Two (2) representatives of a private, nonprofit, environmental or environmental justice

10 advocacy organizations, both to be appointed by the governor;

11 (12) The director of planning and development for the city of Providence;

12 (13) The director of the department of transportation;

13 (14) The director of the department of environmental management;

14 (15) The director of the department of health;

15 (16) The chief executive officer of the commerce corporation;

16 (17) The commissioner of the Rhode Island office of energy resources;

17 (18) The chief executive officer of the Rhode Island public transit authority;

18 (19) The executive director of Rhode Island housing; ~~and~~

19 (20) The executive director of the coastal resources management council.; and

20 (21) The director of the Rhode Island emergency management agency.

21 (t) Powers and duties of state planning council. The state planning council shall have the

22 following powers and duties:

23 (1) To adopt strategic plans as defined in this section and the long-range state guide plan,

24 and to modify and amend any of these, following the procedures for notification and public hearing

25 set forth in § 42-35-3, and to recommend and encourage implementation of these goals to the

26 general assembly, state and federal agencies, and other public and private bodies; approval of

27 strategic plans by the governor; and to ensure that strategic plans and the long-range state guide

28 plan are consistent with the findings, intent, and goals set forth in§ 45-22.2-3, the "Rhode Island

29 Comprehensive Planning and Land Use Regulation Act";

30 (2) To coordinate the planning and development activities of all state agencies, in

31 accordance with strategic plans prepared and adopted as provided for by this section;

32 (3) To review and comment on the proposed annual work program of the statewide

33 planning program;

34 (4) To adopt rules and standards and issue orders concerning any matters within its

1 jurisdiction as established by this section and amendments to it;

2 (5) To establish advisory committees and appoint members thereto representing diverse

3 interests and viewpoints as required in the state planning process and in the preparation or

4 implementation of strategic plans. At minimum, tThe state planning council shall appoint a ~~three~~

5 ~~(3)~~ permanent committees ~~comprised of:~~

6 (i) A technical committee. comprised of pPublic members from different geographic areas

7 of the state representing diverse interests~~; and~~ along with

8 ~~(ii) O~~officials of state, local, and federal government, who shall review all proposed

9 elements of the state guide plan, or amendment or repeal of any element of the plan, and shall

10 advise the state planning council thereon before the council acts on any such proposal. This

11 committee shall also advise the state planning council on any other matter referred to it by the

12 council; and

13 ~~(6)~~(ii) ~~To establish and appoint members to a~~ An executive committee consisting of major

14 participants of a Rhode Island geographic infonnation system with oversight responsibility for its

15 activities.; and

16 (iii) A transportation advisory committee, made up of diverse representation, including but

17 not limited to municipal elected and appointed officials; representatives of various transportation

18 sectors, departments, and agencies; and other groups and agencies with an interest in transportation

19 operations, maintenance, construction, and policy, who shall review transportation-related plans

20 and amendments and recommend action to the state planning council.

21 ~~(7)~~(6) To adopt, amend, and maintain, as an element of the state guide plan or as an

22 amendment to an existing element of the state guide plan, standards and guidelines for the location

23 of eligible, renewable energy resources and renewable energy facilities in Rhode Island with due

24 consideration for the location of such resources and facilities in commercial and industrial areas,

25 agricultural areas, areas occupied by public and private institutions, and property of the state and

26 its agencies and corporations, provided such areas are of sufficient size, and in other areas of the

27 state as appropriate.

28 ~~(8)~~(7) To act as the single, statewide metropolitan planning organization for transportation

29 planning, and to promulgate all rules and regulations that are necessary thereto.

30 (g) Division of statewide planning.

31 (1) The division of statewide planning shall be the principal staff agency of the state

32 planning council for preparing and/or coordinating strategic plans for the comprehensive

33 management of the state's human, economic, and physical resources. The division of statewide

34 planning shall recommend to the state planning council specific guidelines, standards, and

1 programs to be adopted to implement strategic planning and the state guide plan and shall undertake

2 any other duties established by this section and amendments thereto.

3 (2) The division of statewide planning shall maintain records (which shall consist of files

4 of complete copies) of all plans, recommendations, rules, and modifications or amendments thereto

5 adopted or issued by the state planning council under this section. The records shall be open to the

6 public.

7 (3) The division of statewide planning shall manage and administer the Rhode Island

8 geographic information system of land-related resources, and shall coordinate these efforts with

9 other state departments and agencies, including the University of Rhode Island, which shall provide

10 technical support and assistance in the development and maintenance of the system and its

11 associated data base.

12 (4) The division of statewide planning shall coordinate and oversee the provision of

13 technical assistance to political subdivisions of the state in preparing and implementing plans to

14 accomplish the purposes, goals, objectives, policies, and/or standards of applicable elements of the

15 state guide plan and shall make available to cities and towns data and guidelines that may be used

16 in preparing comprehensive plans and elements thereof and in evaluating comprehensive plans and

17 elements thereby.

18 (h) [Deleted by P.L. 2011, ch. 215, § 4, and by P.L. 2011, ch. 313, § 4].

19 (i) The division of planning shall be the principal staff agency of the water resources board

20 established pursuant to chapter 15 of title 46 ("Water Resources Board") and the water resources

21 board corporate established pursuant to chapter 15.1 of title 46 ("Water Supply Facilities").

22 SECTION 14. Sections 42-12-23 and 42-12-23.1 of the General Laws in Chapter 42-12

23 entitled "Department of Human Services" are hereby amended to read as follows:

24 42-12-23. Child care -- Planning and coordinating.

25 (a) The department of human services shall be the principal agency of the state for the

26 planning and coordination of state involvement in the area of child care. To accomplish this

27 purpose, the department's duties shall include submitting an annual report to the governor and the

28 general assembly on the status of child care in Rhode Island.

29 (b) The annual report of the department shall include, but not be limited to, the following

30 information:

31 (1) The amount of state and federal funds spent on child care in each of the two (2)

32 preceding years;

33 (2) The number of child care providers licensed; ~~pursuant to the provisions of chapter 72.1~~

34 ~~of this title;~~

1 (3) The number of children served in state subsidized programs;

2 (4) The number of taxpayers who have claimed the child care assistance and development

3 tax credit pursuant to chapter 47 of title 44;

4 (5) The average cost for both infant and preschool child care;

5 (6) An estimate of unmet needs for child care;

6 (7) Information on child care staff salaries and training and education programs, and

7 (8) Recommendations for any changes in child care public policy.

8 ~~(c) The department shall cooperate with the unit of the department of children, youth, and~~

9 ~~families which licenses and monitors child care providers pursuant to the terms of chapter 72.1 of~~

10 ~~this title.~~

11 ~~(d)~~(c) The department is hereby charged with the responsibility of assuring that a statewide

12 child care resource and referral system exists in this state to provide services and consumer

13 information to assist parents in locating and choosing licensed, approved and/or certified providers,

14 and to maintain data necessary for such referrals.

15 42-12-23.1. Quality of early care and education and school-age child care through

16 voluntary quality rating system.

17 (a) There is hereby established a voluntary quality rating system which will assess quality

18 in early care and education programs and school-age child care. For purposes of this section, early

19 care and education programs and school-age child care shall mean programs licensed under chapter

20 ~~72.1, title 42~~ 12.5, title 42 and approved under chapter 48, title 16, including without limitation

21 child care centers, family child care homes, group family child care homes, school-age child care

22 programs and preschools, but excluding child placement agencies. The voluntary quality rating

23 system is established to promote continuous quality improvement of programs and to further the

24 goals of Rhode Island's "starting right" initiative.

25 (b) The department of human services, the department of children, youth and families, the

26 department of health, the department of elementary and secondary education and other partners and

27 agencies shall share information and work cooperatively with the Rhode Island quality rating

28 system, a public-private partnership, to ensure that Rhode Island children have access to quality

29 early care and education programs and school-age child care.

30 (c) The voluntary quality rating system shall also provide a mechanism to gather data about

31 program quality, and shall report this information to parents, providers and other persons interested

32 in the quality of early care and education programs and school-age child care services in Rhode

33 Island.

34 SECTION 15. Title 42 of the General Laws entitled "STATE AFFAIRS AND

1 GOVERNMENT" is hereby amended by adding thereto the following chapter:

2 CHAPTER 42-12.5

3 LICENSING AND MONITORING OF CHILD DAY CARE PROVIDERS

4 42-12.5-1. Statement of purpose.

5 (a) The director of the department of human services shall establish within the department

6 a unit to license and monitor child day care service providers to protect the health, safety and

7 wellbeing of children while being cared for as a commercial service and are away from their homes.

8 (b) Services for children requiring licensure under this chapter shall include all child day

9 care providers which offer services within the state, except as defined in § 42-12.5-5.

10 42-12.5-2. Definitions.

11 As used in this chapter:

12 (1) "Administrator of licensing" means the director of the licensing unit (or his/her

13 designee) that carries out the provisions of this chapter, hereafter referred to as the "administrator".

14 (2) "Applicant" means a child day care provider that applies for a license to operate.

15 (3) "Child" means any person less than eighteen (18) years of age;

16 (4) "Child day care" means daily care and/or supervision offered commercially to the

17 public for any part of a twenty-four (24) hour day to children away from their homes.

18 (5) "Child day care center" means any person, firm, corporation, association, or agency

19 who, on a regular or irregular basis, receives any child under the age of sixteen (16) years, for the

20 purpose of care and/or supervision, not in a home or residence, apart from the child's parent or

21 guardian for any part of a twenty-four (24) hour day irrespective of compensation. It shall include

22 child day care programs that are offered to employees at the worksite. It does not include preschool

23 programs operating in schools approved by the commissioner of elementary and secondary

24 education.

25 (6) "Child day care provider" means a person or agency, which offers daily care and/or

26 supervision offered commercially to the public for any part of a twenty-four (24) hour day to

27 children away from their homes.

28 (7) "Department" means the department of human services (DHS).

29 (8) "Director" means the director of the department of human services, or the director's

30 designee.

31 (9) "Family day care home" means any home other than the child's home in which child

32 day care in lieu of parental care and/or supervision is offered at the same time to four (4) or more

33 children who are not relatives of the care giver.

34 (10) "Group family day care home" means a residence occupied by an individual of at least

1 twenty-one (21) years of age who provides care for not less than nine (9) and not more than twelve

2 (12) children, with the assistance of one or more approved adults, for any part of a twenty-four (24)

3 hour day. These programs shall be subject to yearly licensing as addressed in this chapter and shall

4 comply with all applicable state and local fire, health, and zoning regulations.

5 (11) "Licensee" means any person, firm, corporation, association, or agency, which holds

6 a valid license under this chapter.

7 (12) "Regulation" means any requirement for licensure, promulgated pursuant to this

8 chapter having the force of law.

9 (13) "Related" means any of the following relationships, by marriage, blood or adoption,

10 even following the death or divorce of a natural parent: parent, grandparent, brother, sister, aunt,

11 uncle, and first cousin. In a prosecution under this chapter or of any law relating thereto, a defendant

12 who relies for a defense upon the relationship of any child to him or herself, the defendant shall

13 have the burden of proof as to the relationship.

14 42-12.5-3. Powers and scope of activities.

15 (a) The department shall issue, deny, suspend, and revoke licenses for, and monitor the

16 operation of, facilities and programs by child day care providers, as defined in § 42-12.5-2.

17 (b) The department is hereby authorized and directed to adopt, amend, and rescind

18 regulations in accordance with this chapter and implement its provisions. The regulations shall be

19 promulgated and become effective in accordance with the provisions of the Administrative

20 Procedures Act, chapter 35 of title 42 and shall address, but need not be limited to the following:

21 (1) Financial, administrative and organizational ability, and stability of the applicant;

22 (2) Compliance with specific fire and safety codes and health regulations;

23 (3) Character, health suitability, qualifications of child day care providers;

24 (4) Staff/child ratios and workload assignments of staff providing care or supervision to

25 children;

26 (5) Type and content of records or documents that must be maintained to collect and retain

27 information for the planning and caring for children;

28 (6) Procedures and practices regarding basic child day care to ensure protection to the child;

29 (7) Service to families of children in care;

30 (8) Program activities, including components related to physical growth, social, emotional,

31 educational, and recreational activities;

1 limited to, tuberculosis, of child day care providers and children at any child day-care center or

2 family day-care home as is specified in regulations promulgated by the director of the department

3 of health. Notwithstanding the foregoing, all licensing and monitoring authority shall remain with

4 the department of human services.

5 (c) The department through its licensing unit shall administer and manage the regulations

6 pertaining to the licensing and monitoring of child day care providers, and shall exercise all

7 statutory and administrative powers necessary to carry out its functions.

8 (d) The administrator shall investigate complaints of noncompliance, and shall take

9 licensing action as may be necessary pursuant to this chapter.

10 (e) The administrator may:

11 (1) Prescribe any forms for reports, statements, notices, and other documents deemed

12 necessary;

13 (2) Prepare and publish manuals and guides explaining this chapter and the regulations to

14 facilitate compliance with and enforcement of the regulations;

15 (3) Prepare reports and studies to advance the purpose of this chapter;

16 (4) Provide consultation and technical assistance, as requested, to assist licensees in

17 maintaining compliance; and

18 (f) The department may promulgate rules and regulations for the establishment of child day

19 care centers located on the second floor.

20 (g) When the department is otherwise unsuccessful in remedying noncompliance with the

21 provisions of this chapter and the regulations promulgated thereunder it may petition the superior

22 court for an order enjoining the noncompliance or for any order that equity and justice may require.

23 (h) The department shall collaborate with the departments of children, youth, and families,

24 elementary and secondary education, and health to provide monitoring, mentoring, training,

25 technical assistance, and other services which are necessary and appropriate to improving the

26 quality of child day care offered by child day care providers who are certified, licensed, or approved

27 by the department or the department of elementary and secondary education or who are seeking

28 certification, licensure, or approval pursuant to § 42-12.5 or § 16-48-2, including non-English

29 speaking providers.

30 (i) Notwithstanding the transfer of licensing to and the licensing and monitoring of day and

1 paid or otherwise, including managerial or contract personnel, or visitor may be appealed to the

2 Rhode Island Family Court.

3 42-12.5-4. License required.

4 (a) No person shall receive or place children in child day care services, including day care

5 arrangements, without a license issued pursuant to this chapter. This requirement does not apply to

6 a person related by blood, marriage, guardianship or adoption to the child, unless that arrangement

7 is for the purposes of day care.

8 (b) The licensing requirement does not apply to shelter operations for parents with children,

9 boarding schools, recreation camps, nursing homes, hospitals, maternity residences, and centers for

10 developmentally disabled children.

11 (c) No person, firm, corporation, association, or agency shall operate a family day care

12 home without a registration certificate issued by the department, unless they hold an unexpired

13 registration certificate issued by the Department of Children, Youth, and Families prior to January

14 1, 2020.

15 (d) No state, county, city, or political subdivision shall operate a child day care agency or

16 center, program or facility without a license issued pursuant to this chapter.

17 (e) No person shall be exempt from a required license by reason of public or private,

18 sectarian, non-sectarian, child day care program, for profit or non-profit status, or by any other

19 reason of funding, sponsorship, or affiliation.

20 42-12.5-5. General licensing provisions.

21 The following general licensing provisions shall apply:

22 (1) A license issued under this chapter is not transferable and applies only to the licensee

23 and the location stated in the application and remains the property of the department. A license

24 shall be publicly displayed. A license shall be valid for one year from the date of issue and upon

25 continuing compliance with the regulations, except that a certificate issued to a family day care

26 home shall be valid for two (2) years from the date of issue.

27 (2) Every license application issued pursuant to § 42-12.5-4 shall be accompanied by a

28 nonrefundable application fee paid to the State of Rhode Island as follows:

29 (a) Child day care center license- five hundred dollars ($500);

30 (b) Group family day care home license – two hundred and fifty dollars ($250);

1 (5) The department may grant a provisional license to an applicant who is not able to

2 demonstrate compliance with all of the regulations because the program or residence is not in full

3 operation; however, the applicant must meet all regulations that can be met in the opinion of the

4 administrator before the program is fully operational. The provisional license shall be granted for

5 a limited period not to exceed six (6) months and shall be subject to review every three (3) months.

6 (6) The department may grant a probationary license to a licensee who is temporarily

7 unable to comply with a rule or rules when the noncompliance does not present an immediate threat

8 to the health and well-being of the children, and when the licensee has obtained a plan approved

9 by the administrator to correct the areas of noncompliance within the probationary period. A

10 probationary license shall be issued for up to twelve (12) months; it may be extended for an

11 additional six (6) months at the discretion of the administrator. A probationary license that states

12 the conditions of probation may be issued by the administrator at any time for due cause. Any prior

13 existing license is invalidated when a probationary license is issued. When the probationary license

14 expires, the administrator may reinstate the original license to the end of its term, issue a new

15 license, suspend, or revoke the license.

16 (7) The administrator will establish criteria and procedure for granting variances as part of

17 the regulations.

18 (8) The above exceptions (probationary and provisional licensing and variances) do not

19 apply to and shall not be deemed to constitute any variance from state fire and health safety

20 standards. However, if a request for a variance of fire inspection deficiencies has been submitted

21 to the fire safety code board of appeal and review, DHS may grant a provisional license to terminate

22 no later than thirty (30) days following the board's decision on said variance.

23 (9) A license under this chapter shall be granted to a child day care program without the

24 necessity for a separate fire, building, or radon inspection, when said child day care program is

25 conducted at a Rhode Island elementary or secondary school which has already been found in

26 compliance with said inspections, provided that an applicant complies with all other provisions of

27 DHS regulations, or has been granted appropriate variances by the department.

28 42-12.5-6. Violations, suspensions and revocations of license.

29 (a) When a licensee violates the terms of the license, the provisions of this chapter, or any

30 regulation thereunder, the department may pursue the administrative remedies herein provided, in

31 addition to other civil or criminal remedies according to the general laws.

1 (c) During a suspension, the facility or program shall cease operation.

2 (d) To end a suspension, the licensee shall, within thirty (30) days of the notice of

3 suspension, submit an acceptable plan of corrective action to the administrator. The plan shall

4 outline the steps and timetables for immediate correction of the areas of noncompliance and is

5 subject to the approval of the administrator.

6 (e) At the end of the suspension, the administrator may reinstate the license for the term of

7 the original license, revoke the license, issue a new license, or deny a reapplication.

8 (f) Upon revocation, the licensed program or facility shall cease operation. The licensee

9 whose license has been revoked may not apply for a similar license within a three (3) year period

10 from the date of revocation.

11 (g) Except in those instances wherein there is a determination that there exists a danger to

12 the public health, safety, or welfare or there is a determination that the childcare provider has

13 committed a serious breach of state law, orders, or regulation, the director shall utilize progressive

14 penalties for noncompliance of any rule, regulation or order relating to childcare providers.

15 Progressive penalties could include written notice of noncompliance, education and training,

16 suspending enrollment to the program, assessing fines, suspension of license, and revocation of

17 license.

18 (h) Any child day care provider, as defined in this chapter, who has exhausted all

19 administrative remedies within the department of human services and who aggrieved by a final

20 order of the department of human services, may file for judicial review in the superior court of

21 Providence county pursuant to § 42-35-15.

22 (i) The Rhode Island Family Court shall retain jurisdiction over those complaints

23 investigated by the department of children, youth and families, pursuant to chapter 72.1, regardless

24 of whether licensing and monitoring is performed under chapter 12.5 of this title or chapter 72.1 of

25 this title.

26 42-12.5-7. Penalties for violations.

27 (a) Any person who violates any of the provisions of this chapter, or any regulations issued

28 pursuant to this chapter, or who shall intentionally make any false statement or reports to the

29 director with reference to the matters contained herein, shall, upon conviction for the first offense,

30 be imprisoned for a term not exceeding six (6) months or be fined not exceeding five hundred

31 dollars ($500), or both, and for a second or subsequent offense, shall be imprisoned for a term not

32 exceeding one year or be fined not exceeding one thousand dollars ($1000), or both the fine and

1 a license pursuant to this chapter, or who maintains or conducts a program or facility after a license

2 has been revoked or suspended, or who shall refuse to permit a reasonable inspection and

3 examination of a program or facility, shall be guilty of a misdemeanor and, upon conviction, shall

4 be fined not more than five hundred dollars ($500) for each week that the program or facility shall

5 have been maintained without a license or for each refusal to permit inspection and examination by

6 the director.

7 (c) Any individual, firm, corporation, or other entity who maintains or conducts a family

8 day care home without first having obtained a registration certificate for the home pursuant to this

9 chapter, shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than twenty-

10 five dollars ($25.00) nor more than one hundred dollars ($100) for each week that the home shall

11 have been maintained without a valid registration certificate.

12 (d) The department shall refer any violations to the attorney general's office for

13 prosecution.

14 42-12.5-8. Open door policy.

15 There shall be an open door policy permitting any custodial parent or legal guardian to

16 have access to a day care facility for any program when their child is in attendance.

17 SECTION 16. Section 42-35.1-5 of the General Laws in Chapter 42-35.1 entitled "Small

18 Business Regulatory Fairness in Administrative Procedures" are hereby amended to read as

19 follows:

20 42-35.1-5. Small business enforcement ombudsman.

21 (a) The director of the ~~office of regulatory reform~~ department of business regulation shall

22 designate an existing staff member as a "small business regulatory enforcement ombudsman,", who

23 shall report ~~directly~~ to the director of business regulation.

24 (b) The ombudsman shall:

25 (1) Work with each agency with regulatory authority over small businesses to ensure that

26 small business concerns that receive or are subject to an audit, on-site inspection, compliance

27 assistance effort, or other enforcement related communication or contact by agency personnel are

28 provided with a means to comment on the enforcement activity conducted by such personnel;

29 (2) Establish means to receive comments from small business concerns regarding actions

30 by agency employees conducting compliance or enforcement activities;

31 (3) Within six (6) months of appointment, work with each regulating entity to develop and

32 publish reporting policies;

33 (4) Based on substantiated comments received from small business concerns the

1 enforcement activities of agency personnel including a rating of the responsiveness of the

2 regulatory agencies policies;

3 (5) Coordinate and report annually on the activities, findings and recommendations to the

4 general assembly and the directors of affected agencies; and

5 (6) Provide the affected agency with an opportunity to comment on reports prepared

6 pursuant to this chapter, and include a section of the final report in which the affected agency may

7 make such comments as are not addressed by the ombudsman.

8 SECTION 17. Sections 42-66-2 of the General Laws in Chapter 42-66 entitled "Elderly

9 Affairs Department" are hereby amended to read as follows:

10 42-66-2. Establishment of department -- Director.

11 There is established within the executive branch of state government a department of

12 elderly affairs. The ~~head~~ director of the department shall be the director of elderly affairs, ~~who shall~~

13 ~~be a person qualified by training and experience to perform the duties of the office~~ appointed by

14 and reporting directly to the governor, with the advice and consent of the senate. ~~The director shall~~

15 ~~be in the unclassified service, appointed by the governor with the advice and consent of the senate,~~

16 ~~and shall serve at the pleasure of the governor and until the appointment and qualification of the~~

17 ~~director's successor. The director shall receive a salary as provided by law.~~

18 SECTION 18. Section 42-64.13-8 of the General Laws in Chapter 42-64.13 entitled

19 "Rhode Island Regulatory Reform Act" is hereby amended to read as follows:

20 42-64.13-8. Regulatory analysis responsibilities.

21 The office of regulatory reform shall have the following regulatory analysis and reporting

22 responsibilities:

23 (1) The office of regulatory reform shall, upon the conclusion of each fiscal year, prepare

24 and publish a report on the regulatory processes of state and municipal agencies and permitting

25 authorities through a review and an analysis of proposed and existing rules and regulations to: (i)

26 Encourage agencies to eliminate, consolidate, simplify, expedite or otherwise improve permits,

27 permitting procedures and paperwork burdens affecting businesses, municipal government

28 undertakings, industries and other matters of economic development impact in the state; (ii)

29 Analyze the impact of proposed and existing rules and regulations on matters such as public health,

30 safety and welfare, including job creation, and make recommendations for simplifying regulations

31 and regulatory processes of state and municipal agencies and permitting authorities; (iii) Propose

32 to any state or municipal agency consideration for amendment or repeal of any existing rules or

33 procedures which may be obsolete, harmful to the economy or job growth in the state, or

34 excessively burdensome with respect to any state or federal statutes or regulations; and (iv) Assist

1 and coordinate with all agencies during the periodic review of rules required by § 42-35-3.4 of the

2 Administrative Procedures Act.

3 (2) The ombudsman of the ~~office~~ department of business regulation ~~regulatory reform~~ shall

4 implement the provisions of § 42-35.1-1 of the general laws entitled Small Business Regulatory

5 Fairness and Administrative Procedures, and shall be the small business regulatory enforcement

6 office pursuant to § 42-35.1-5 of the general laws.

7 SECTION 19. Section 42-72-5 of the General Laws in Chapter 42-72 entitled "Department

8 of Children, Youth and Families" is hereby amended to read as follows:

9 42-72-5. Powers and scope of activities.

10 (a) The department is the principal agency of the state to mobilize the human, physical, and

11 financial resources available to plan, develop, and evaluate a comprehensive and integrated

12 statewide program of services designed to ensure the opportunity for children to reach their full

13 potential. The services include prevention, early intervention, outreach, placement, care and

14 treatment, and after-care programs; provided, however, that the department notifies the state police

15 and cooperates with local police departments when it receives and/or investigates a complaint of

16 sexual assault on a minor and concludes that probable cause exists to support the allegations(s).

17 The department also serves as an advocate for the needs of children.

18 (b) To accomplish the purposes and duties, as set forth in this chapter, the director is

19 authorized and empowered:

20 (1) To establish those administrative and operational divisions of the department that the

21 director determines is in the best interests of fulfilling the purposes and duties of this chapter;

22 (2) To assign different tasks to staff members that the director determines best suit the

23 purposes of this chapter;

24 (3) To establish plans and facilities for emergency treatment, relocation, and physical

25 custody of abused or neglected children that may include, but are not limited to,

26 homemaker/educator child-case aides, specialized foster-family programs, day-care facilities, crisis

27 teams, emergency parents, group homes for teenage parents, family centers within existing

28 community agencies, and counseling services;

29 (4) To establish, monitor, and evaluate protective services for children including, but not

30 limited to, purchase of services from private agencies and establishment of a policy and procedure

31 manual to standardize protective services;

32 (5) To plan and initiate primary- and secondary-treatment programs for abused and

33 neglected children;

34 (6) To evaluate the services of the department and to conduct periodic, comprehensive-

1 needs assessment;

2 (7) To license, approve, monitor, and evaluate all residential and non-residential ~~child care~~

3 ~~institutions,~~ group homes, foster homes, and programs;

4 (8) To recruit and coordinate community resources, public and private;

5 (9) To promulgate rules and regulations concerning the confidentiality, disclosure, and

6 expungement of case records pertaining to matters under the jurisdiction of the department;

7 (10) To establish a minimum mandatory level of twenty (20) hours of training per year and

8 provide ongoing staff development for all staff; provided, however, all social workers hired after

9 June 15, 1991, within the department shall have a minimum of a bachelor's degree in social work

10 or a closely related field, and must be appointed from a valid, civil-service list;

11 (11) To establish procedures for reporting suspected child abuse and neglect pursuant to

12 chapter 11 of title 40;

13 (12) To promulgate all rules and regulations necessary for the execution of departmental

14 powers pursuant to the Administrative Procedures Act, chapter 35 of title 42;

15 (13) To provide and act as a clearinghouse for information, data, and other materials

16 relative to children;

17 (14) To initiate and carry out studies and analysis that will aid in solving local, regional,

18 and statewide problems concerning children;

19 (15) To represent and act on behalf of the state in connection with federal-grant programs

20 applicable to programs for children in the functional areas described in this chapter;

21 (16) To seek, accept, and otherwise take advantage of all federal aid available to the

22 department, and to assist other agencies of the state, local agencies, and community groups in taking

23 advantage of all federal grants and subventions available for children;

24 (17) To review and coordinate those activities of agencies of the state, and of any political

25 subdivision of the state, that affect the full and fair utilization of community resources for programs

26 for children, and initiate programs that will help ensure utilization;

27 (18) To administer the pilot, juvenile-restitution program, including the overseeing and

28 coordinating of all local, community-based restitution programs, and the establishment of

29 procedures for the processing of payments to children performing community service;

30 (19) To adopt rules and regulations that:

31 (i) For the twelve-month (12) period beginning on October 1, 1983, and for each

32 subsequent twelve-month (12) period, establish specific goals as to the maximum number of

33 children who will remain in foster care for a period in excess of two (2) years; and

34 (ii) Are reasonably necessary to implement the child-welfare services and foster-care

1 programs;

2 (20) May establish and conduct seminars for the purpose of educating children regarding

3 sexual abuse;

4 (21) To establish fee schedules by regulations for the processing of requests from adoption

5 placement agencies for adoption studies, adoption study updates, and supervision related to

6 interstate and international adoptions. The fee shall equal the actual cost of the service(s) rendered,

7 but in no event shall the fee exceed two thousand dollars ($2,000);

8 (22) To be responsible for the education of all children who are placed, assigned, or

9 otherwise accommodated for residence by the department in a state-operated or -supported

10 community residence licensed by a Rhode Island state agency. In fulfilling this responsibility, the

11 department is authorized to enroll and pay for the education of students in the public schools or,

12 when necessary and appropriate, to itself provide education in accordance with the regulations of

13 the board of regents for elementary and secondary education either directly or through contract;

14 (23) To develop multidisciplinary service plans, in conjunction with the department of

15 health, at hospitals prior to the discharge of any drug-exposed babies. The plan requires the

16 development of a plan using all health-care professionals;

17 (24) To be responsible for the delivery of appropriate mental health services to seriously

18 emotionally disturbed children and children with functional developmental disabilities.

19 Appropriate mental health services may include hospitalization, placement in a residential

20 treatment facility, or treatment in a community-based setting. The department is charged with the

21 responsibility for developing the public policy and programs related to the needs of seriously

22 emotionally disturbed children and children with functional developmental disabilities;

23 In fulfilling its responsibilities the department shall:

24 (i) Plan a diversified and comprehensive network of programs and services to meet the

25 needs of seriously emotionally disturbed children and children with functional developmental

26 disabilities;

27 (ii) Provide the overall management and supervision of the state program for seriously

28 emotionally disturbed children and children with functional developmental disabilities;

29 (iii) Promote the development of programs for preventing and controlling emotional or

30 behavioral disorders in children;

31 (iv) Coordinate the efforts of several state departments and agencies to meet the needs of

32 seriously emotionally disturbed children and children with functional developmental disabilities

33 and to work with private agencies serving those children;

34 (v) Promote the development of new resources for program implementation in providing

1 services to seriously emotionally disturbed children and children with functional developmental

2 disabilities.

3 The department shall adopt rules and regulations that are reasonably necessary to

4 implement a program of mental health services for seriously emotionally disturbed children.

5 Each community, as defined in chapter 7 of title 16, shall contribute to the department, at

6 least in accordance with rules and regulations to be adopted by the department, at least its average

7 per-pupil cost for special education for the year in which placement commences, as its share of the

8 cost of educational services furnished to a seriously emotionally disturbed child pursuant to this

9 section in a residential treatment program that includes the delivery of educational services.

10 "Seriously emotionally disturbed child" means any person under the age of eighteen (18)

11 years, or any person under the age of twenty-one (21) years, who began to receive services from

12 the department prior to attaining eighteen (18) years of age and has continuously received those

13 services thereafter; who has been diagnosed as having an emotional, behavioral, or mental disorder

14 under the current edition of the Diagnostic and Statistical Manual and that disability has been

15 ongoing for one year or more or has the potential of being ongoing for one year or more; and the

16 child is in need of multi-agency intervention; and the child is in an out-of-home placement or is at

17 risk of placement because of the disability.

18 A child with a "functional developmental disability" means any person under the age of

19 eighteen (18) years or any person under the age of twenty-one (21) years who began to receive

20 services from the department prior to attaining eighteen (18) years of age and has continuously

21 received those services thereafter.

22 The term "functional developmental disability" includes autism spectrum disorders and

23 means a severe, chronic disability of a person that:

24 (A) Is attributable to a mental or physical impairment or combination of mental physical

25 impairments;

26 (B) Is manifested before the person attains age eighteen (18);

27 (C) Is likely to continue indefinitely;

28 (D) Results in age-appropriate, substantial, functional limitations in three (3) or more of

29 the following areas of major life activity:

30 (I) Self-care;

31 (II) Receptive and expressive language;

32 (III) Learning;

33 (IV) Mobility;

34 (V) Self direction;

1 (VI) Capacity for independent living; and

2 (VII) Economic self-sufficiency; and

3 (E) Reflects the person's need for a combination and sequence of special, interdisciplinary,

4 or generic care, treatment, or other services that are of life-long or extended duration and are

5 individually planned and coordinated.

6 Funding for these clients shall include funds that are transferred to the department of human

7 services as part of the managed health-care-program transfer. However, the expenditures relating

8 to these clients shall not be part of the department of human services' caseload estimated for the

9 semi-annual, caseload-estimating conference. The expenditures shall be accounted for separately;

10 (25) To provide access to services to any person under the age of eighteen (18) years, or

11 any person under the age of twenty-one (21) years who began to receive child-welfare services

12 from the department prior to attaining eighteen (18) years of age, has continuously received those

13 services thereafter, and elects to continue to receive such services after attaining the age of eighteen

14 (18) years. The general assembly has included funding in the FY 2008 DCYF budget in the amount

15 of $10.5 million from all sources of funds and $6.0 million from general revenues to provide a

16 managed system to care for children serviced between 18 to 21 years of age. The department shall

17 manage this caseload to this level of funding;

18 (26) To initiate transition planning in cooperation with the department of behavioral

19 healthcare, developmental disabilities and hospitals and local school departments for any child who

20 receives services through DCYF; is seriously emotionally disturbed or developmentally delayed

21 pursuant to paragraph (b)(24)(v); and whose care may or shall be administered by the department

22 of behavioral healthcare, developmental disabilities and hospitals after the age of twenty-one (21)

23 years; the transition planning shall commence at least twelve (12) months prior to the person's

24 twenty-first birthday and shall result in a collaborative plan submitted to the family court by both

25 the department of behavioral healthcare, developmental disabilities and hospitals and the

26 department of children, youth and families and shall require the approval of the court prior to the

27 dismissal of the abuse, neglect, dependency, or miscellaneous petition before the child's twenty-

28 first birthday;

29 (27) To develop and maintain, in collaboration with other state and private agencies, a

30 comprehensive continuum of care in this state for children in the care and custody of the department

31 or at risk of being in state care. This continuum of care should be family centered and community

32 based with the focus of maintaining children safely within their families or, when a child cannot

33 live at home, within as close proximity to home as possible based on the needs of the child and

34 resource availability. The continuum should include community-based prevention, family support,

1 and crisis-intervention services, as well as a full array of foster care and residential services,

2 including residential services designed to meet the needs of children who are seriously emotionally

3 disturbed, children who have a functional developmental disability, and youth who have juvenile

4 justice issues. The director shall make reasonable efforts to provide a comprehensive continuum of

5 care for children in the care and custody of DCYF, taking into account the availability of public

6 and private resources and financial appropriations and the director shall submit an annual report to

7 the general assembly as to the status of his or her efforts in accordance with the provisions of § 42-

8 72-4(b)(13);

9 (28) To administer funds under the John H. Chafee Foster Care Independence and

10 Educational and Training Voucher (ETV) Programs of Title IV-E of the Social Security Act [42

11 U.S.C. § 677] and the DCYF higher education opportunity grant program as outlined in chapter

12 72.8 of title 42, in accordance with rules and regulations as promulgated by the director of the

13 department; and

14 (29) To process nationwide, criminal-record checks on prospective foster parents and any

15 household member age 18 or older, prospective adoptive parents and any household member age

16 18 and older, operators of child-care facilities, persons seeking to act as volunteer court-appointed

17 special advocates, persons seeking employment in a child-care facility or at the training school for

18 youth or on behalf of any person seeking employment at DCYF, who are required to submit to

19 nationwide, criminal-background checks as a matter of law.

20 (c) In order to assist in the discharge of his or her duties, the director may request from any

21 agency of the state information pertinent to the affairs and problems of children.

22 SECTION 20. The title of Chapter 42-72.1 of the General Laws entitled "Licensing and

23 Monitoring of Childcare Providers and Child-Placing Agencies" is hereby amended to read as

24 follows:

25 ~~CHAPTER 42-72.1~~

26 ~~LICENSING AND MONITORING OF CHILDCARE PROVIDERS AND CHILD-PLACING~~

27 ~~AGENCIES~~

28 CHAPTER 42-72.1

29 LICENSING AND MONITORING OF CHILD PLACING AGENCIES, CHILD CARING

30 AGENCIES, FOSTER AND ADOPTIVE HOMES, AND CHILDREN'S BEHAVIORAL

31 HEALTH PROGRAMS

32 SECTION 21. 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

33 and 42-72.1-7 of the General Laws in Chapter 42-72.1 entitled "Licensing and Monitoring of

34 Childcare Providers and Child-Placing Agencies" are hereby amended to read as follows:

1 42-72.1-1. Statement of purpose.

2 (a) The director of the department of children, youth, and families, pursuant to § 42-72-

3 5(b)(7) and § 42-72-5(b)(24), shall establish within the department a unit to license and monitor

4 ~~child care providers and~~ child-placing agencies, child caring agencies, foster and adoptive homes,

5 and children’s behavioral health programs to protect the health, safety and well being of children

6 temporarily separated from or being cared for away from their natural families.

7 (b) Services for children requiring licensure under this chapter shall include all ~~child care~~

8 ~~providers and~~ child placing agencies, child caring agencies, foster and adoptive homes, and

9 children’s behavioral health programs which offer services within the state, except as defined in §

10 42-72.1-5.

11 42-72.1-2. Definitions.

12 As used in this chapter:

13 (1) "Administrator of licensing" means the director of the licensing unit (or his/her

14 designee) that carries out the provisions of this chapter, hereafter referred to as the "administrator".

15 (2) "Applicant" means a child-placing agency, child caring agencies, foster and adoptive

16 homes, and children’s behavioral health programs ~~or childcare provider~~ that applies for a license to

17 operate.

18 (3) "Child" means any person less than eighteen (18) years of age; provided, that a child

19 over eighteen (18) years of age who is nevertheless subject to continuing jurisdiction of the family

20 court, pursuant to chapter 1 of title 14, or defined as emotionally disturbed according to chapter 7

21 of title 40.1, shall be considered a child for the purposes of this chapter.

22 ~~(4) "Childcare provider" means a person or agency, which offers residential or~~

23 ~~nonresidential care and/or treatment for a child outside of his/her natural home.~~

24 ~~(5) "Child day care or childcare" means daily care and/or supervision offered commercially~~

25 ~~to the public for any part of a twenty-four (24) hour day to children away from their homes.~~

26 ~~(6) "Child day-care center or childcare center" means any person, firm, corporation,~~

27 ~~association, or agency who, on a regular or irregular basis, receives any child under the age of~~

28 ~~sixteen (16) years, for the purpose of care and/or supervision, not in a home or residence, apart~~

29 ~~from the child's parent or guardian for any part of a twenty-four (24) hour day irrespective of~~

30 ~~compensation or reward. It shall include childcare programs that are offered to employees at the~~

31 ~~worksite. It does not include nursery schools or other programs of educational services subject to~~

32 ~~approval by the commissioner of elementary and secondary education.~~

33 (4) “Child Caring Agency” means any facility that provides residential treatment,

34 residential group home care or semi-independent living, or residential assessment and stabilization.

1 ~~(7)~~(5) "Child-placing agency" means any private or public agency, which receives children

2 for placement into independent living arrangements, supervised apartment living, residential group

3 care facilities, family foster homes, or adoptive homes.

4 (6) “Children’s Behavioral Health Program” means any private or public agency which

5 provides behavioral health services to children.

6 ~~(8)~~(7) "Department" means the department of children, youth and families (DCYF).

7 ~~(9)~~(8) "Director" means the director of the department of children, youth and families, or

8 the director's designee.

9 (9) “Foster and Adoptive Homes” means one or more adults who are licensed to provide

10 foster or adoptive caregiving in a family-based home setting.

11 ~~(10) "Family day-care home" means any home other than the child's home in which child~~

12 ~~day care in lieu of parental care and/or supervision is offered at the same time to four (4) or more~~

13 ~~children who are not relatives of the care giver.~~

14 ~~(11) "Group family day-care home" means a residence occupied by an individual of at least~~

15 ~~twenty-one (21) years of age who provides care for not less than nine (9) and not more than twelve~~

16 ~~(12) children, with the assistance of one or more approved adults, for any part of a twenty-four (24)~~

17 ~~hour day. The maximum of twelve (12) children shall include children under six (6) years of age~~

18 ~~who are living in the home, school-age children under the age of twelve (12) years whether they~~

19 ~~are living in the home or are received for care, and children related to the provider who are received~~

20 ~~for care. These programs shall be subject to yearly licensing as addressed in this chapter and shall~~

21 ~~comply with all applicable state and local fire, health, and zoning regulations.~~

22 ~~(12)~~(10) "Licensee" means any person, firm, corporation, association, or agency, which

23 holds a valid license under this chapter.

24 ~~(13)~~(11) "Regulation" means any requirement for licensure, promulgated pursuant to this

25 chapter having the force of law.

26 ~~(14)~~(12) "Related" means any of the following relationships, by marriage, blood or

27 adoption, even following the death or divorce of a natural parent: parent, grandparent, brother,

28 sister, aunt, uncle, and first cousin. In a prosecution under this chapter or of any law relating thereto,

29 a defendant who relies for a defense upon the relationship of any child to him or herself, the

30 defendant shall have the burden of proof as to the relationship.

31 42-72.1-3. Powers and scope of activities.

32 (a) The department shall issue, deny, and revoke licenses for, and monitor the operation of,

33 facilities and programs by child placing agencies, child caring agencies, foster and adoptive homes,

34 and children’s behavioral health programs ~~and child care providers,~~ as defined in § 42-72.1-2.

1 (b) The department shall adopt, amend, and rescind regulations in accordance with this

2 chapter and implement its provisions. The regulations shall be promulgated and become effective

3 in accordance with the provisions of the Administrative Procedures Act, chapter 35 of this title.

4 (c) The department through its licensing unit shall administer and manage the regulations

5 pertaining to the licensing and monitoring of those agencies, and shall exercise all statutory and

6 administrative powers necessary to carry out its functions.

7 (d) The administrator shall investigate complaints of noncompliance, and shall take

8 licensing action as required.

9 (e) Regulations formulated pursuant to the foregoing authority shall include, but need not

10 be limited to, the following:

11 (1) Financial, administrative and organizational ability, and stability of the applicant;

12 (2) Compliance with specific fire and safety codes and health regulations;

13 (3) Character, health suitability, qualifications of child-placing agencies, child caring

14 agencies, foster and adoptive homes, and children’s behavioral health programs ~~childcare~~

15 ~~providers~~;

16 (4) Staff/child ratios and workload assignments of staff providing care or supervision to

17 children;

18 (5) Type and content of records or documents that must be maintained to collect and retain

19 information for the planning and caring for children;

20 (6) Procedures and practices regarding ~~basic childcare and~~ placing services to ensure

21 protection to the child regarding the manner and appropriateness of placement;

22 (7) Service to families of children in care;

23 (8) Program activities, including components related to physical growth, social, emotional,

24 educational, and recreational activities, social services and habilitative or rehabilitative treatment;

25 and

26 (9) Investigation of previous employment, criminal record check and department records

27 check.~~; and~~

28 ~~(10) Immunization and testing requirements for communicable diseases, including, but not~~

29 ~~limited to, tuberculosis, of childcare providers and children at any child day-care center or family~~

30 ~~day-care home as is specified in regulations promulgated by the director of the department of health.~~

31 ~~Notwithstanding the foregoing, all licensing and monitoring authority shall remain with the~~

32 ~~department of children, youth and families.~~

33 (f) The administrator may:

34 (1) Prescribe any forms for reports, statements, notices, and other documents deemed

1 necessary;

2 (2) Prepare and publish manuals and guides explaining this chapter and the regulations to

3 facilitate compliance with and enforcement of the regulations;

4 (3) Prepare reports and studies to advance the purpose of this chapter;

5 (4) Provide consultation and technical assistance, as requested, to assist licensees in

6 maintaining compliance; and

7 (5) Refer to the advisory council for children and families for advice and consultation on

8 licensing matters.

9 ~~(g) The department may promulgate rules and regulations for the establishment of child~~

10 ~~day care centers located on the second floor.~~

11 ~~(h)~~(g) When the department is otherwise unsuccessful in remedying noncompliance with

12 the provisions of this chapter and the regulations promulgated under it, it may petition the family

13 court for an order enjoining the noncompliance or for any order that equity and justice may require.

14 ~~(i) The department shall collaborate with the departments of human services, elementary~~

15 ~~and secondary education, and health to provide monitoring, mentoring, training, technical~~

16 ~~assistance, and other services which are necessary and appropriate to improving the quality of~~

17 ~~childcare offered by childcare providers who are certified, licensed, or approved by the department~~

18 ~~or the department of elementary and secondary education or who are seeking certification,~~

19 ~~licensure, or approval pursuant to this chapter or § 16-48-2, including non-English speaking~~

20 ~~providers.~~

21 ~~(j)~~(h) The department shall adopt, amend, and rescind regulations in the same manner as

22 set forth above in order to permit the placement of a pregnant minor in a group residential facility

23 which provides a shelter for pregnant adults as its sole purpose.

24 (i) Notwithstanding the transfer of licensing to and the licensing and monitoring of day and

25 child care facilities to the department of human services, pursuant to chapter 42-12.5, the

26 department of children, youth and families will continue to be the agency responsible for

27 investigating any complaint of abuse and neglect that is alleged to have occurred at a day care or

28 child care facility. Any appeal of an investigative finding of abuse or neglect against a staff member,

29 paid or otherwise, including managerial or contract personnel, or visitor may be appealed to the

30 Rhode Island Family Court.

31 (j) The Rhode Island Family Court shall retain jurisdiction over those complaints

32 investigated by the department of children, youth and families, pursuant to this chapter, regardless

33 of whether licensing and monitoring is performed under chapter 12.5 of this title or chapter 72.1 of

34 this title.

1 42-72.1-4. License required.

2 (a) No person shall provide continuing full-time care for a child apart from the child's

3 parents~~, or receive or place children in child care services, including day care arrangements,~~ without

4 a license issued pursuant to this chapter. This requirement does not apply to a person related by

5 blood, marriage, guardianship or adoption to the child. Licensing requirements for child day care

6 services are governed by §42-12.5-4 et seq. ~~, unless that arrangement is for the purposes of day~~

7 ~~care.~~

8 (b) The licensing requirement does not apply to shelter operations for parents with children,

9 boarding schools, recreation camps, nursing homes, hospitals, maternity residences, and centers for

10 developmentally disabled children.

11 (c) No person, firm, corporation, association, or agency, other than a parent shall place,

12 offer to place, or assist in the placement of a child in Rhode Island, for the purpose of adoption,

13 unless the person, firm, corporation, or agency shall have been licensed for those purposes by the

14 department or is a governmental child-placing agency, and that license shall not have been

15 rescinded at the time of placement of a child for the purpose of adoption. The above does not apply

16 when a person, firm, corporation, association, or agency places, offers to place, or assists in the

17 placement of a child in Rhode Island, for the purpose of adoption through a child-placement agency

18 duly licensed for child-placement in the state or through the department of children, youth, and

19 families, nor when the child is placed with a father, sister, brother, aunt, uncle, grandparent, or

20 stepparent of the child.

21 (d) No parent shall assign or otherwise transfer to another not related to him or her by blood

22 or marriage, his or her rights or duties with respect to the permanent care and custody of his or her

23 child under eighteen (18) years of age unless duly authorized so to do by an order or decree of

24 court.

25 (e) No person shall bring or send into the state any child for the purpose of placing him or

26 her out, or procuring his or her adoption, or placing him or her in a foster home without first

27 obtaining the written consent of the director, and that person shall conform to the rules of the

28 director and comply with the provisions of the Interstate Compact on the Placement of Children,

29 chapter 15 of title 40.

30 ~~(f) No person, firm, corporation, association, or agency shall operate a family day care~~

31 ~~home without a registration certificate issued by the department.~~

32 (fg) No state, county, city, or political subdivision shall operate a child placing ~~or child~~

33 ~~care~~ agency, child caring agency, foster and adoptive home, or children’s behavioral health

34 program or facility without a license issued pursuant to this chapter.

1 (gh) No person shall be exempt from a required license by reason of public or private,

2 sectarian, non-sectarian, court-operated child placement program ~~child-care program~~, child caring

3 agency, foster and adoptive home, or children’s behavioral health program for profit or non-profit

4 status, or by any other reason of funding, sponsorship, or affiliation.

5 42-72.1-5. General licensing provisions.

6 The following general licensing provisions shall apply:

7 (1) A license issued under this chapter is not transferable and applies only to the licensee

8 and the location stated in the application and remains the property of the department. A license

9 shall be publicly displayed. A license shall be valid for one year from the date of issue and upon

10 continuing compliance with the regulations, ~~except that a certificate issued to a family day care~~

11 ~~home~~, a license issued to a foster parent, and/or a license issued to a program for mental health

12 services for "seriously emotionally disturbed children" as defined in § 42-72-5(b)(24) shall be valid

13 for two (2) years from the date of issue.

14 (2) Every license application issued pursuant to § 42-72.1-4 shall be accompanied by a

15 nonrefundable application fee paid to the State of Rhode Island as follows:

16 (a) Adoption and foster care child placing agency license- one thousand dollars ($1000);

17 ~~(b) Child day care center license- five hundred dollars ($500);~~

18 ~~(c) Group family day care home license -- two hundred and fifty dollars ($250);~~

19 ~~(d) Family day care home license- one hundred dollars ($100).~~

20 (3) All fees collected by the State pursuant to paragraph (2) of this section shall be

21 deposited by the general treasurer as general revenues.

22 (4) A licensee shall comply with applicable state fire and health safety standards.

23 (5) The department may grant a provisional license to an applicant, excluding any foster

24 parent applicant, who is not able to demonstrate compliance with all of the regulations because the

25 program or residence is not in full operation; however, the applicant must meet all regulations that

26 can be met in the opinion of the administrator before the program is fully operational. The

27 provisional license shall be granted for a limited period not to exceed six (6) months and shall be

28 subject to review every three (3) months.

29 (6) The department may grant a probationary license to a licensee who is temporarily

30 unable to comply with a rule or rules when the noncompliance does not present an immediate threat

31 to the health and well-being of the children, and when the licensee has obtained a plan approved

32 by the administrator to correct the areas of noncompliance within the probationary period. A

33 probationary license shall be issued for up to twelve (12) months; it may be extended for an

34 additional six (6) months at the discretion of the administrator. A probationary license that states

1 the conditions of probation may be issued by the administrator at any time for due cause. Any prior

2 existing license is invalidated when a probationary license is issued. When the probationary license

3 expires, the administrator may reinstate the original license to the end of its term, issue a new

4 license or revoke the license.

5 (7) The administrator will establish criteria and procedure for granting variances as part of

6 the regulations.

7 (8) The above exceptions (probationary and provisional licensing and variances) do not

8 apply to and shall not be deemed to constitute any variance from state fire and health safety

9 standards. However, if a request for a variance of fire inspection deficiencies has been submitted

10 to the fire safety code board of appeal and review, DCYF may grant a provisional license to

11 terminate no later than thirty (30) days following the board's decision on said variance.

12 ~~(9) A license under this chapter shall be granted to a school age child day care program~~

13 ~~without the necessity for a separate fire, building, or radon inspection, when said child day care~~

14 ~~program is conducted at a Rhode Island elementary or secondary school which has already been~~

15 ~~found in compliance with said inspections, provided that an applicant complies with all other~~

16 ~~provisions of DCYF regulations, or has been granted appropriate variances by the department.~~

17 42-72.1-6. Violations, suspensions and revocations of license.

18 (a) When a licensee violates the terms of the license, the provisions of this chapter, or any

19 regulation thereunder, the department may pursue the administrative remedies herein provided, in

20 addition to other civil or criminal remedies according to the general laws.

21 (b) After notice and hearing, as provided by the Administrative Procedures Act, chapter 35

22 of this title, the administrator may revoke the license, or suspend the license for a period not

23 exceeding six (6) months.

24 (c) During a suspension, the agency, facility or program shall cease operation.

25 (d) To end a suspension, the licensee shall, within thirty (30) days of the notice of

26 suspension, submit a plan of corrective action to the administrator. The plan shall outline the steps

27 and timetables for immediate correction of the areas of noncompliance and is subject to the

28 approval of the administrator.

29 (e) At the end of the suspension, the administrator may reinstate the license for the term of

30 the original license, revoke the license, issue a new license, or deny a reapplication.

31 (f) Upon revocation, the licensed agency, program or facility shall cease operation. The

32 licensee whose license has been revoked may not apply for a similar license within a three (3) year

33 period from the date of revocation.

34 ~~(g) Except in those instances wherein there is a determination that there exists a danger to~~

1 ~~the public health, safety, or welfare or there is a determination that the childcare provider has~~

2 ~~committed a serious breach of State law, orders, or regulation, the director shall utilize progressive~~

3 ~~penalties for noncompliance of any rule, regulation or order relating to childcare providers.~~

4 ~~Progressive penalties could include written notice of noncompliance, education and training,~~

5 ~~suspending enrollment to the program, assessing fines, suspension of license, and revocation of~~

6 ~~license.~~

7 42-72.1-7. Penalties for violations.

8 (a) Any person who violates any of the provisions of this chapter, or any regulations issued

9 pursuant to this chapter, or who shall intentionally make any false statement or reports to the

10 director with reference to the matters contained herein, shall, upon conviction for the first offense,

11 be imprisoned for a term not exceeding six (6) months or be fined not exceeding five hundred

12 dollars ($500), or both, and for a second or subsequent offense, shall be imprisoned for a term not

13 exceeding one year or be fined not exceeding one thousand dollars ($1000), or both the fine and

14 imprisonment.

15 (b) Anyone who maintains or conducts a program, agency, or facility without first having

16 obtained a license, or who maintains or conducts a program, agency, or facility after a license has

17 been revoked or suspended, or who shall refuse to permit a reasonable inspection and examination

18 of a program, agency, or facility, shall be guilty of a misdemeanor and, upon conviction, shall be

19 fined not more than five hundred dollars ($500) for each week that the program, agency, or facility

20 shall have been maintained without a license or for each refusal to permit inspection and

21 examination by the director.

22 ~~(c) Any individual, firm, corporation, or other entity who maintains or conducts a family~~

23 ~~day care home without first having obtained a registration certificate for the home, shall be guilty~~

24 ~~of a misdemeanor and, upon conviction, shall be fined not less than twenty-five dollars ($25.00)~~

25 ~~nor more than one hundred dollars ($100) for each week that the home shall have been maintained~~

26 ~~without a valid registration certificate.~~

27 ~~(d)~~ (c) The department shall refer any violations to the attorney general's office for

28 prosecution.

29 SECTION 22. Section 42-72.1-8 of the General Laws in Chapter 42-72.1 entitled

30 "Licensing and Monitoring of Childcare Providers and Child-Placing Agencies" is hereby repealed.

31 ~~42-72.1-8. Open door policy.~~

32 ~~There shall be an open door policy permitting any custodial parent or legal guardian to~~

33 ~~have access to a day care facility for any program when their child is in attendance.~~

1 "Administrative Penalties for Childcare Licensing Violations" is hereby amended to read as

2 follows:

3 42-72.11-1. Definitions.

4 As used in this chapter, the following words, unless the context clearly requires otherwise,

5 shall have the following meanings:

6 (1) "Administrative penalty" means a monetary penalty not to exceed the civil penalty

7 specified by statute or, where not specified by statute, an amount not to exceed five hundred dollars

8 ($500).

9 (2) "Director" means the director of the department of ~~children, youth and families~~ human

10 services or his or her duly authorized agent.

11 (3) "Person" means any public or private corporation, individual, partnership, association,

12 or other entity that is licensed as a child day care center, family child day care home, group family

13 child day care home or any officer, employee or agent thereof.

14 (4) "Citation" means a notice of an assessment of an administrative penalty issued by the

15 director or his or her duly authorized agent.

16 (5) “Department” means the department of human services.

17 SECTION 24. Sections 42-154-1 and 42-154-3 of the General Laws in Chapter 42-154

18 entitled "Division of Elderly Affairs" are hereby amended to read as follows:

19 42-154-1. Establishment of division -- Director.

20 (a) There is hereby established within the executive branch of state government and the

21 department of human services a division of elderly affairs, effective July 1, 2011. The division shall

22 reside within the department of human services for administrative purposes only. The head of the

23 division shall be the director of the division of elderly affairs, appointed by and reporting directly

24 to the governor, with the advice and consent of the senate. ~~who shall be a person qualified through~~

25 ~~and by training and experience to perform the duties of the division. The director shall be in the~~

26 ~~unclassified service.~~

27 (b) Effective July 1, 2019, the division of elderly affairs, as established pursuant to

28 subsection (a) of this section, shall be henceforth referred to and renamed as the "office of healthy

29 aging."

30 42-154-3. Construction of references.

31 Effective July 1, 2011, all references in the general laws to the department of elderly affairs

32 established pursuant to chapter 42-66 ("Elderly Affairs Department") shall be deemed to mean and

33 refer to the division of elderly affairs within the department of human services as set forth in this

34 chapter. Effective July 1, 2019, all references in the general laws to either the department of elderly

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art.005/9/005/8/005/7/005/6/005/5/005/4/005/3/005/2/005/1

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1 ARTICLE 5 AS AMENDED

2 RELATING TO TAXES, REVENUES AND FEES

3 SECTION 1. Section 19-14-4 of the General Laws in Chapter 19-14 entitled "Licensed

4 Activities" is hereby amended to read as follows:

5 19-14-4. Annual fee.

6 (a) Each licensee shall pay an annual license fee as follows:

7 (1) Each small-loan lender license and each branch certificate, the sum of five hundred fifty

8 dollars ($550);

9 (2) Each loan-broker license and each branch certificate, the sum of five hundred fifty

10 dollars ($550);

11 (3) Each lender license and each branch certificate, the sum of one thousand one hundred

12 dollars ($1,100);

13 (4) Each sale of checks license, the sum of three hundred sixty dollars ($360);

14 (5) Each check cashing license, the sum of three hundred sixty dollars ($360);

15 (6) Each electronic money transfer license, the sum of three hundred sixty dollars ($360);

16 (7) Each registration to provide debt-management services, the sum of two hundred dollars

17 ($200);

18 (8) Each mortgage-loan originator license, the sum of ~~one~~ four hundred dollars ($~~100~~ 400);

19 and

20 (9) Each third-party loan-servicer license and each branch certificate, the sum of one

21 thousand one hundred dollars ($1,100).

22 (b) Any licensee who shall not pay the annual fee by December 31 of each year shall be

23 subject to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum of seven

24 hundred fifty dollars ($750). The penalty shall be paid to the director to, and for the use of, the

25 state. The penalty may be waived for good cause by the director, or the director's designee, upon

26 written request.

27 SECTION 2. Section 19-14.9-12 of the General Laws in Chapter 19-14.9 entitled "Rhode

28 Island Fair Debt Collection Practices Act" is hereby amended to read as follows:

29 19-14.9-12. Registration required.

30 (1) After July 1, 2008, no person shall engage within this state in the business of a debt

1 collector, or engage in soliciting the right to collect or receive payment for another of an account,

2 bill, or other indebtedness, or advertise for or solicit in print the right to collect or receive payment

3 for another of an account, bill, or other indebtedness, without first registering with the director, or

4 the director's designee.

5 (2) The application for registration shall be in writing; shall contain information as the

6 director may determine; and shall be accompanied by a registration fee of ~~one~~ seven hundred fifty

7 dollars ($~~100~~ 750).

8 (3) The registration shall be for a period of one year. Each registration shall plainly state

9 the name of the registrant and the city or town with the name of the street and number, if any, of

10 the place where the business is to be carried on; provided that the business shall at all times be

11 conducted in the name of the registrant as it appears on the registration.

12 (4) No person registered to act within this state as a debt collector shall do so under any

13 other name or at any other place of business than that named in the registration. The registration

14 shall be for a single location but may, with notification to the director, be moved to a different

15 location. A registration shall not be transferable or assignable.

16 (5) This section shall not apply:

17 (a) To the servicer of a debt by a mortgage; or

18 (b) To any debt collector located out of this state, provided that the debt collector:

19 (1) Is collecting debts on behalf of an out-of-state creditor for a debt that was incurred out

20 of state; and

21 (2) Only collects debts in this state using interstate communication methods, including

22 telephone, facsimile, or mail.

23 (c) To any regulated institution as defined under § 19-1-1, national banking association,

24 federal savings bank, federal savings and loan association, federal credit union, or any bank, trust

25 company, savings bank, savings and loan association, or credit union organized under the laws of

26 this state, or any other state of the United States, or any subsidiary of the above; but except as

27 provided herein, this section shall apply to a subsidiary or affiliate, as defined by the director, of an

28 exempted entity and of a bank holding company established in accordance with state or federal law.

29 SECTION 3. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing

30 of Health-Care Facilities" is hereby amended to read as follows:

31 23-17-38.1. Hospitals -- Licensing fee.

32 ~~(a) There is also imposed a hospital licensing fee at the rate of five and eight hundred fifty-~~

33 ~~six thousandths percent (5.856%) upon the net patient-services revenue of every hospital for the~~

34 ~~hospital's first fiscal year ending on or after January 1, 2016, except that the license fee for all~~

1 ~~hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent~~

2 ~~(37%). The discount for Washington County hospitals is subject to approval by the Secretary of the~~

3 ~~U.S. Department of Health and Human Services of a state plan amendment submitted by the~~

4 ~~executive office of health and human services for the purpose of pursuing a waiver of the uniformity~~

5 ~~requirement for the hospital license fee. This licensing fee shall be administered and collected by~~

6 ~~the tax administrator, division of taxation within the department of revenue, and all the~~

7 ~~administration, collection, and other provisions of chapter 51 of title 44 shall apply. Every hospital~~

8 ~~shall pay the licensing fee to the tax administrator on or before July 10, 2018, and payments shall~~

9 ~~be made by electronic transfer of monies to the general treasurer and deposited to the general fund.~~

10 ~~Every hospital shall, on or before June 14, 2018, make a return to the tax administrator containing~~

11 ~~the correct computation of net patient-services revenue for the hospital fiscal year ending~~

12 ~~September 30, 2016, and the licensing fee due upon that amount. All returns shall be signed by the~~

13 ~~hospital's authorized representative, subject to the pains and penalties of perjury.~~

14 ~~(b)~~(a) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon

15 the net patient-services revenue of every hospital for the hospital's first fiscal year ending on or

16 after January 1, 2017, except that the license fee for all hospitals located in Washington County,

17 Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington

18 County hospitals is subject to approval by the Secretary of the U.S. Department of Health and

19 Human Services of a state plan amendment submitted by the executive office of health and human

20 services for the purpose of pursuing a waiver of the uniformity requirement for the hospital license

21 fee. This licensing fee shall be administered and collected by the tax administrator, division of

22 taxation within the department of revenue, and all the administration, collection, and other

23 provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax

24 administrator on or before July 10, 2019, and payments shall be made by electronic transfer of

25 monies to the general treasurer and deposited to the general fund. Every hospital shall, on or before

26 June 14, 2019, make a return to the tax administrator containing the correct computation of net

27 patient-services revenue for the hospital fiscal year ending September 30, 2017, and the licensing

28 fee due upon that amount. All returns shall be signed by the hospital's authorized representative,

29 subject to the pains and penalties of perjury.

30 (b) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon the

31 net patient-services revenue of every hospital for the hospital's first fiscal year ending on or after

32 January 1, 2018, except that the license fee for all hospitals located in Washington County, Rhode

33 Island shall be discounted by thirty-seven percent (37%). The discount for Washington County

34 hospitals is subject to approval by the Secretary of the U.S. Department of Health and Human

1 Services of a state plan amendment submitted by the executive office of health and human services

2 for the purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This

3 licensing fee shall be administered and collected by the tax administrator, division of taxation

4 within the department of revenue, and all the administration, collection, and other provisions of

5 chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator

6 on or before July 13, 2020, and payments shall be made by electronic transfer of monies to the

7 general treasurer and deposited to the general fund. Every hospital shall, on or before June 15,

8 2020, make a return to the tax administrator containing the correct computation of net patient-

9 services revenue for the hospital fiscal year ending September 30, 2018, and the licensing fee due

10 upon that amount. All returns shall be signed by the hospital's authorized representative, subject to

11 the pains and penalties of perjury.

12 (c) There is also imposed a hospital licensing fee for state fiscal year 2021 against each

13 hospital in the state. The hospital licensing fee is equal to five percent (5.0%) of the net patient-

14 services revenue of every hospital for the hospital's first fiscal year ending on or after January 1,

15 2018, except that the license fee for all hospitals located in Washington County, Rhode Island shall

16 be discounted by thirty-seven percent (37%). The discount for Washington County hospitals is

17 subject to approval by the Secretary of the U.S. Department of Health and Human Services of a

18 state plan amendment submitted by the executive office of health and human services for the

19 purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This

20 licensing fee shall be administered and collected by the tax administrator, division of taxation

21 within the department of revenue, and all the administration, collection, and other provisions of

22 chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator

23 on or before July 13, 2021, and payments shall be made by electronic transfer of monies to the

24 general treasurer and deposited to the general fund. Every hospital shall, on or before June 15,

25 2020, make a return to the tax administrator containing the correct computation of net patient-

26 services revenue for the hospital fiscal year ending September 30, 2018, and the licensing fee due

27 upon that amount. All returns shall be signed by the hospital's authorized representative, subject to

28 the pains and penalties of perjury.

29 ~~(c)~~(d) For purposes of this section the following words and phrases have the following

30 meanings:

31 (1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,

32 licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on

33 that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital

34 conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient

1 and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness,

2 disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid

3 managed care payment rates for a court-approved purchaser that acquires a hospital through

4 receivership, special mastership, or other similar state insolvency proceedings (which court-

5 approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly

6 negotiated rates between the court-approved purchaser and the health plan, and such rates shall be

7 effective as of the date that the court-approved purchaser and the health plan execute the initial

8 agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital

9 payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2),

10 respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12)

11 period as of July 1 following the completion of the first full year of the court-approved purchaser's

12 initial Medicaid managed care contract.

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

14 services.

15 (3) "Net patient-services revenue" means the charges related to patient care services less

16 (i) charges attributable to charity care; (ii) bad debt expenses; and (iii) contractual allowances.

17 ~~(d)~~(e) The tax administrator shall make and promulgate any rules, regulations, and

18 procedures not inconsistent with state law and fiscal procedures that he or she deems necessary for

19 the proper administration of this section and to carry out the provisions, policy, and purposes of

20 this section.

21 ~~(e)~~(f) The licensing fee imposed by ~~this~~ section (b) shall apply to hospitals as defined herein

22 that are duly licensed on July 1, ~~2018~~ 2019, and shall be in addition to the inspection fee imposed

23 by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

24 (g) The licensing fee imposed by section (c) shall apply to hospitals as defined herein that

25 are duly licensed on July 1, 2020 and shall be in addition to the inspection fee imposed by § 23-17-

26 38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

27 SECTION 4. Section 42-17.1-9.1 of the General Laws in Chapter 42-17.1 entitled

28 "Department of Environmental Management" is hereby amended to read as follows:

29 42-17.1-9.1. User fees at state beaches, parks, and recreation areas.

30 (a) The department of environmental management in pursuance of its administrative duties

31 and responsibilities may charge a user fee for any state beach, or recreational area under its

32 jurisdiction, and fees for the use of its services or facilities.

33 (b) The fee may be on a daily or annual basis, or both, and may be based on vehicle parking

34 or other appropriate means. The fees may recognize the contribution of Rhode Island taxpayers to

1 support the facilities in relation to other users of the state's facilities. The fee structure may

2 acknowledge the need to provide for all people, regardless of circumstances.

3 (c) An additional fee for camping and other special uses may be charged where appropriate.

4 Rates so charged should be comparable to equivalent commercial facilities.

5 (d) All such fees shall be established after a public hearing.

6 (e) All daily fees from beach parking, which shall also include fees charged and collected

7 at Ninigret conservation area and Charlestown breachway, shall be shared with the municipality in

8 which the facility is located on the basis of seventy-three percent (73%) retained by the state and

9 twenty-seven percent (27%) remitted to the municipality; provided, further, from July 1, 2016, until

10 October 1, ~~2016~~ 2021, the beach fees charged and collected under this subsection shall be equal to

11 those in effect on June 30, 2011. ~~Further, purchasers of season passes between May 14, 2016, and~~

12 ~~June 30, 2016, shall be eligible to receive a credit for the difference between the amount of the July~~

13 ~~1, 2016, fee and the amount originally paid. Said credits may be applied against the purchase of a~~

14 ~~season pass in 2017.~~

15 (f) Fifty percent (50%) of all user and concession fees received by the state shall be

16 deposited as general revenues. For the year beginning July 1, 1979, the proportion of user and

17 concession fees to be received by the state shall be sixty-five percent (65%); for the year beginning

18 July 1, 1980, eighty-five percent (85%); and for the year beginning July 1, 1981, and all years

19 thereafter, one hundred percent (100%). The general revenue monies appropriated are hereby

20 specifically dedicated to meeting the costs of development, renovation of, and acquisition of state-

21 owned recreation areas and for regular maintenance, repair and operation of state owned recreation

22 areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred

23 thousand dollars ($400,000) annually. Notwithstanding the provisions of § 37-1-1 or any other

24 provision of the general laws, the director of the department of environmental management is

25 hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money,

26 bonds, or other valuable securities for deposit in the same manner as provided above for user and

27 concession fees retained by the state.

28 (g) No fee shall be charged to any school or other nonprofit organization provided that a

29 representative of the school or other organization gives written notice of the date and time of their

30 arrival to the facility.

31 SECTION 5. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism

32 and Development" is hereby amended to read as follows:

33 42-63.1-3. Distribution of tax.

1 provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax

2 collected from residential units offered for tourist or transient use through a hosting platform, shall

3 be distributed as follows by the division of taxation and the city of Newport:

4 (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

5 otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

6 is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

7 thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

8 established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

9 Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

10 further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

11 of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

12 established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

13 Convention Authority of the city of Providence established pursuant to the provisions of chapter

14 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

15 district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts

16 attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island

17 commerce corporation as established in chapter 64 of title 42.

18 (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the

19 hotel, which generated the tax, is physically located, to be used for whatever purpose the city or

20 town decides.

21 (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

22 corporation established in chapter 64 of title 42, and seven percent (7%) to the Greater Providence-

23 Warwick Convention and Visitors' Bureau.

24 (b) For returns and tax payments received after December 31, 2015, except as provided in

25 § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

26 residential units offered for tourist or transient use through a hosting platform, shall be distributed

27 as follows by the division of taxation and the city of Newport:

28 (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

29 63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-

30 five (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

31 physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

32 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of

33 the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

1 (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

2 twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent

3 (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

4 physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick

5 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

6 be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

7 (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

8 twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

9 (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

10 physically located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-

11 Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of

12 the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

13 42.

14 (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

15 twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

16 generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

17 Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

18 percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

19 chapter 64 of title 42.

20 (5) With respect to the tax generated by hotels in districts other than those set forth in

21 subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the regional

22 tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%)

23 of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

24 located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention

25 and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax shall be given

26 to the Rhode Island commerce corporation established in chapter 64 of title 42.

27 (c) ~~The~~ For returns and tax payments received before July 1, 2019, the proceeds of the hotel

28 tax collected from residential units offered for tourist or transient use through a hosting platform

29 shall be distributed as follows by the division of taxation and the city of Newport: twenty-five

30 percent (25%) of the tax shall be given to the city or town where the residential unit, which

31 generated the tax, is physically located, and seventy-five percent (75%) of the tax shall be given to

32 the Rhode Island commerce corporation established in chapter 64 of title 42.

33 (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

1 amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

2 chapter for such fiscal year.

3 (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

4 received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-

5 12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from residential

6 units offered for tourist or transient use through a hosting platform, shall be distributed in

7 accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this

8 section by the division of taxation and the city of Newport.

9 (f) For returns and tax payments received on or after July 1, 2018, except as provided in §

10 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

11 residential units offered for tourist or transient use through a hosting platform, shall be distributed

12 as follows by the division of taxation and the city of Newport:

13 (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

14 63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-

15 five (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

16 physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

17 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the

18 tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

19 (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

20 thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%)

21 of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

22 located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick

23 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

24 be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

25 (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

26 thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)

27 of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

28 located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

29 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

30 be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

31 (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

32 twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

33 generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

34 Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

1 percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

2 chapter 64 of title 42.

3 (5) With respect to the tax generated by hotels in districts other than those set forth in

4 subdivisions (b)(1) through (b)(4), forty-five percent (45%) of the tax shall be given to the regional

5 tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%)

6 of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

7 located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention

8 and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall be given to

9 the Rhode Island commerce corporation established in chapter 64 of title 42.

10 (g) For returns and tax payments received on or after July 1, 2019, except as provided in §

11 42-63.1-12, the proceeds of the hotel tax, including 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 as follows by the division of taxation and the city of Newport:

14 (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-

15 five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent

16 (25%) of the tax shall be given to the city or town where the hotel or residential unit, which

17 generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

18 Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five

19 percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in

20 chapter 64 of title 42.

21 (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent

22 (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall

23 be given to the city or town where the hotel or residential unit, which generated the tax, is physically

24 located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

25 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

26 tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

27 (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent

28 (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall

29 be given to the city or town where the hotel or residential unit, which generated the tax, is physically

30 located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

31 Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

32 tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

33 (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five

34 percent (25%) of the tax shall be given to the city or town where the hotel or residential unit, which

1 generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

2 Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

3 percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

4 chapter 64 of title 42.

5 (5) With respect to the tax generated in districts other than those set forth in subsections

6 (g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional

7 tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-

8 five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit,

9 which generated the tax, is physically located, five percent (5%) of the tax shall be given to the

10 Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and

11 twenty-five percent (25%) of the tax shall be given to the Rhode Island commerce corporation

12 established in chapter 64 of title 42.

13 SECTION 6. Section 42-142-8 of the General Laws in Chapter 42-142 entitled

14 "Department of Revenue" is hereby amended to read as follows:

15 42-142-8. Collection unit.

16 (a) The director of the department of revenue is authorized to establish within the

17 department of revenue a collection unit for the purpose of assisting state agencies in the collection

18 of debts owed to the state. The director of the department of revenue may enter into an agreement

19 with any state agency(ies) to collect any delinquent debt owed to the state.

20 (b) The director of the department of revenue shall initially implement a pilot program to

21 assist the agency(ies) with the collection of delinquent debts owed to the state.

22 (c) The agency(ies) participating in the pilot program shall refer to the collection unit

23 within the department of revenue, debts owed by delinquent debtors where the nature and amount

24 of the debt owed has been determined and reconciled by the agency and the debt is: (i) The subject

25 of a written settlement agreement and/or written waiver agreement and the delinquent debtor has

26 failed to timely make payments under said agreement and/or waiver and is therefore in violation of

27 the terms of said agreement and/or waiver; (ii) The subject of a final administrative order or

28 decision and the debtor has not timely appealed said order or decision; (iii) The subject of final

29 order, judgment or decision of a court of competent jurisdiction and the debtor has not timely

30 appealed said order, judgment or decision. The collection unit shall not accept a referral of any

31 delinquent debt unless it satisfies subsection (c)(i), (ii) or (iii) of this section.

32 (d) Any agency(ies) entering into an agreement with the department of revenue to allow

33 the collection unit of the department to collect a delinquent debt owed to the state shall indemnify

34 the department of revenue against injuries, actions, liabilities, or proceedings arising from the

1 collection, or attempted collection, by the collection unit of the debt owed to the state.

2 (e) Before referring a delinquent debt to the collection unit, the agency(ies) must notify the

3 debtor of its intention to submit the debt to the collection unit for collection and of the debtor's right

4 to appeal that decision not less than thirty (30) days before the debt is submitted to the collection

5 unit.

6 (f) At such time as the agency(ies) refers a delinquent debt to the collection unit, the agency

7 shall: (i) Represent in writing to the collection unit that it has complied with all applicable state and

8 federal laws and regulations relating to the collection of the debt, including, but not limited to, the

9 requirement to provide the debtor with the notice of referral to the collection unit under subsection

10 (e) of this section; and (ii) Provide the collection unit personnel with all relevant supporting

11 documentation including, but not limited to, notices, invoices, ledgers, correspondence,

12 agreements, waivers, decisions, orders, and judgments necessary for the collection unit to attempt

13 to collect the delinquent debt.

14 (g) The referring agency(ies) shall assist the collection unit by providing any and all

15 information, expertise, and resources deemed necessary by the collection unit to collect the

16 delinquent debts referred to the collection unit.

17 (h) Upon receipt of a referral of a delinquent debt from an agency(ies), the amount of the

18 delinquent debt shall accrue interest at the an annual rate of interest established by law for the

19 referring agency or at an annual rate of 13%, whichever percentage rate is greater. ~~with such rate~~

20 ~~determined by adding two percent (2%) to the prime rate which was in effect on October 1 of the~~

21 ~~preceding year; provided however, in no event shall the rate of interest exceed twenty-one percent~~

22 ~~(21%) per annum nor be less than eighteen percent (18%) per annum.~~

23 (i) Upon receipt of a referral of a delinquent debt from the agency(ies), the collection unit

24 shall provide the delinquent debtor with a "Notice of Referral" advising the debtor that:

25 (1) The delinquent debt has been referred to the collection unit for collection; and

26 (2) The collection unit will initiate, in its names, any action that is available under state law

27 for the collection of the delinquent debt, including, but not limited to, referring the debt to a third

28 party to initiate said action.

29 (j) Upon receipt of a referral of a delinquent debt from an agency(ies), the director of the

30 department of revenue shall have the authority to institute, in its name, any action(s) that are

31 available under state law for collection of the delinquent debt and interest, penalties, and/or fees

32 thereon and to, with or without suit, settle the delinquent debt.

33 (k) In exercising its authority under this section, the collection unit shall comply with all

34 state and federal laws and regulations related to the collection of debts.

1 (l) Upon the receipt of payment from a delinquent debtor, whether a full or partial payment,

2 the collection unit shall disburse/deposit the proceeds of said payment in the following order:

3 (1) To the appropriate federal account to reimburse the federal government funds owed to

4 them by the state from funds recovered; and

5 (2) The balance of the amount collected to the referring agency.

6 (m) Notwithstanding the above, the establishment of a collection unit within the department

7 of revenue shall be contingent upon an annual appropriation by the general assembly of amounts

8 necessary and sufficient to cover the costs and expenses to establish, maintain, and operate the

9 collection unit including, but not limited to, computer hardware and software, maintenance of the

10 computer system to manage the system, and personnel to perform work within the collection unit.

11 (n) In addition to the implementation of any pilot program, the collection unit shall comply

12 with the provisions of this section in the collection of all delinquent debts under this section.

13 (o) The department of revenue is authorized to promulgate rules and regulations as it deems

14 appropriate with respect to the collection unit.

15 (p) By September 1, 2020, and each year thereafter, the department of revenue shall

16 specifically assess the performance, effectiveness, and revenue impact of the collections associated

17 with this section, including, but not limited to, the total amounts referred and collected by each

18 referring agency during the previous state fiscal year to the governor, the speaker of the house of

19 representatives, the president of the senate, the chairpersons of the house and senate finance

20 committees, and the house and senate fiscal advisors. Such report shall include the net revenue

21 impact to the state of the collection unit.

22 (q) No operations of a collection unit pursuant to this chapter shall be authorized after June

23 30, 2021.

24 SECTION 7. Sections 44-11-2.2 and 44-11-19 of the General Laws in Chapter 44-11

25 entitled "Business Corporation Tax" are hereby amended to read as follows:

26 44-11-2.2. Pass-through entities -- Definitions -- Withholding -- Returns.

27 (a) Definitions.

28 (1) “Administrative Adjustment Request” means an administrative adjustment request filed

29 by a partnership under IRC section 6227.

30 (2) “Audited Partnership” means a partnership or an entity taxed as a partnership federally

31 subject to a partnership level audit resulting in a federal adjustment.

32 (3) “Direct Partner” means a partner that holds an interest directly in a partnership or pass-

33 through entity.

34 (4) “Federal Adjustment” means a change to an item or amount determined under the

1 Internal Revenue Code (IRC) that is used by a taxpayer to compute Rhode Island tax owed whether

2 that change results from action by the IRS, including a partnership level audit, or the filing of an

3 amended federal return, federal refund claim, or an administrative adjustment request by the

4 taxpayer. A federal adjustment is positive to the extent that it increases state taxable income as

5 determined under Rhode Island state laws and is negative to the extent that it decreases state taxable

6 income as determined under Rhode Island state laws.

7 (5) “Final Determination Date” means if the federal adjustment arises from an IRS audit or

8 other action by the IRS, the final determination date is the first day on which no federal adjustments

9 arising from that audit or other action remain to be finally determined, whether by IRS decision

10 with respect to which all rights of appeal have been waived or exhausted, by agreement, or, if

11 appealed or contested, by a final decision with respect to which all rights of appeal have been

12 waived or exhausted. For agreements required to be signed by the IRS and the taxpayer, the final

13 determination date is the date on which the last party signed the agreement.

14 (6) “Final Federal Adjustment” means a federal adjustment after the final determination

15 date for that federal adjustment has passed.

16 (7) “Indirect Partner” means a partner in a partnership or pass-through entity that itself

17 holds an interest directly, or through another indirect partner, in a partnership or pass-through

18 entity.

19 ~~(1) "Pass-through entity" means a corporation that for the applicable tax year is treated as~~

20 ~~an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership, limited~~

21 ~~partnership, limited liability partnership, trust, or limited liability company that for the applicable~~

22 ~~tax year is not taxed as a corporation for federal tax purposes under the state's check-the-box~~

23 ~~regulation.~~

24 ~~(2)~~(8) "Member" means an individual who is a shareholder of an S corporation; a partner

25 in a general partnership, a limited partnership, or a limited liability partnership; a member of a

26 limited liability company; or a beneficiary of a trust;

27 ~~(3)~~(9) "Nonresident" means an individual who is not a resident of or domiciled in the state,

28 a business entity that does not have its commercial domicile in the state, and a trust not organized

29 in the state.

30 (10) “Partner” means a person that holds an interest directly or indirectly in a partnership

31 or other pass-through entity.

32 (11) “Partnership” means an entity subject to taxation under Subchapter K of the IRC.

33 (12) “Partnership Level Audit” means an examination by the IRS at the partnership level

34 pursuant to Subchapter C of Title 26, Subtitle F, Chapter 63 of the IRC, as enacted by the Bipartisan

1 Budget Act of 2015, Public Law 114-74, which results in Federal Adjustments.

2 (13) "Pass-through entity" means a corporation that for the applicable tax year is treated as

3 an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership, limited

4 partnership, limited liability partnership, trust, or limited liability company that for the applicable

5 tax year is not taxed as a corporation for federal tax purposes under the state's check-the-box

6 regulation.

7 (14) “Tiered Partner” means any partner that is a partnership or pass-through entity.

8 (b) Withholding.

9 (1) A pass-through entity shall withhold income tax at the highest Rhode Island

10 withholding tax rate provided for individuals or seven percent (7%) for corporations on the

11 member's share of income of the entity that is derived from or attributable to sources within this

12 state distributed to each nonresident member and pay the withheld amount in the manner prescribed

13 by the tax administrator. The pass-through entity shall be liable for the payment of the tax required

14 to be withheld under this section and shall not be liable to such member for the amount withheld

15 and paid over in compliance with this section. A member of a pass-through entity that is itself a

16 pass-through entity (a "lower-tier pass-through entity") shall be subject to this same requirement to

17 withhold and pay over income tax on the share of income distributed by the lower-tier pass-through

18 entity to each of its nonresident members. The tax administrator shall apply tax withheld and paid

19 over by a pass-through entity on distributions to a lower-tier pass-through entity to the withholding

20 required of that lower-tier pass-through entity.

21 (2) A pass-through entity shall, at the time of payment made pursuant to this section, deliver

22 to the tax administrator a return upon a form prescribed by the tax administrator showing the total

23 amounts paid or credited to its nonresident members, the amount withheld in accordance with this

24 section, and any other information the tax administrator may require. A pass-through entity shall

25 furnish to its nonresident member annually, but not later than the fifteenth day of the third month

26 after the end of its taxable year, a record of the amount of tax withheld on behalf of such member

27 on a form prescribed by the tax administrator.

28 (c) Notwithstanding subsection (b), a pass-through entity is not required to withhold tax

29 for a nonresident member if:

30 (1) The member has a pro rata or distributive share of income of the pass-through entity

31 from doing business in, or deriving income from sources within, this state of less than $1,000 per

32 annual accounting period;

33 (2) The tax administrator has determined by regulation, ruling, or instruction that the

34 member's income is not subject to withholding;

1 (3) The member elects to have the tax due paid as part of a composite return filed by the

2 pass-through entity under subsection (d); or

3 (4) The entity is a publicly traded partnership as defined by 26 U.S.C. § 7704(b) that is

4 treated as a partnership for the purposes of the Internal Revenue Code and that has agreed to file

5 an annual information return reporting the name, address, taxpayer identification number and other

6 information requested by the tax administrator of each unitholder with an income in the state in

7 excess of $500.

8 (d) Composite return.

9 (1) A pass-through entity may file a composite income tax return on behalf of electing

10 nonresident members reporting and paying income tax at the state's highest marginal rate on the

11 members' pro rata or distributive shares of income of the pass-through entity from doing business

12 in, or deriving income from sources within, this State.

13 (2) A nonresident member whose only source of income within a state is from one or more

14 pass-through entities may elect to be included in a composite return filed pursuant to this section.

15 (3) A nonresident member that has been included in a composite return may file an

16 individual income tax return and shall receive credit for tax paid on the member's behalf by the

17 pass-through entity.

18 (e) Partnership Level Audit

19 (1) A partnership shall report final federal adjustments pursuant to IRC section 6225(a)(2)

20 arising from a partnership level audit or an administrative adjustment request and make payments

21 by filing the applicable supplemental return as prescribed under § 44-11-2.2(e)(1)(ii), and as

22 required under § 44-11-19(b), in lieu of taxes owed by its direct and indirect partners.

23 (i) Failure of the audited partnership or tiered partner to report final federal adjustments

24 pursuant to IRC section 6225(a) and 6225(c) or pay does not prevent the Ttax Aadministrator from

25 assessing the audited partnership, direct partners or indirect partners for taxes they owe, using the

26 best information available, in the event that a partnership or tiered partner fails to timely make any

27 report or payment required by § 44-11-19(b) for any reason.

28 (ii) The tax administrator may promulgate rules and regulations, not inconsistent with law,

29 to carry into effect the provisions of this chapter.

30 44-11-19. Supplemental returns -- Additional tax or refund.

31 (a) Any taxpayer which fails to include in its return any items of income or assets or any

32 other information required by this chapter or by regulations prescribed in pursuance of this chapter

33 shall make a supplemental return disclosing these facts. Except in the case of final federal

34 adjustments that are required to be reported by a partnership and its partners using the procedures

1 under section (b) below, Aany taxpayer whose return to the collector of internal revenue, or whose

2 net income returned, shall be changed or corrected by any official of the United States government

3 in any respect affecting a tax imposed by this chapter including a return or other similar report filed

4 pursuant to IRC section 6225(c)(2), shall, within sixty (60) days after receipt of a notification of

5 the final adjustment and determination of the change or correction, make the supplemental return

6 required by this section (a).

7 (b) Except for the distributive share of adjustments that have been reported as required

8 under section (a), partnerships and partners shall, within one hundred and eighty (180) days after

9 receipt of notification of the final federal adjustments arising from a partnership level audit or an

10 administrative adjustment, make the supplemental return and make payments as required by this

11 section (b).

12 ~~(b)~~(c) Upon the filing of a supplemental return the tax administrator shall examine the

13 return and shall determine any additional tax or refund that may be due and shall notify the taxpayer.

14 Any additional tax shall be paid within fifteen (15) days after the notification together with interest

15 at the annual rate provided by § 44-1-7 from the original due date of the return for the taxable year

16 to the date of payment of the additional tax. Any refund shall be made by the tax administrator

17 together with interest at the annual rate provided by § 44-1-7.1 from the date of payment of the tax

18 to the date of the refund.

19 SECTION 8. Chapter 44-11 of the General Laws entitled "Business Corporation Tax" is

20 hereby amended by adding thereto the following section:

21 44-11-2.3. Pass-through entities -- Election to pay state income tax at the entity level.

22 (a) Definitions. As used in this section:

23 (1) "Election" means the annual election to be made by the pass-through entity by filing

24 the prescribed tax form and remitting the appropriate tax.

25 (2) "Net income" means the net ordinary income, net rental real estate income, other net

26 rental income, guaranteed payments, and other business income less specially allocated

27 depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26

28 U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income

29 for purposes of this section does not include specially allocated investment income or any other

30 types of deductions.

31 (3) "Owner" means an individual who is a shareholder of an S Corporation; a partner in a

32 general partnership, a limited partnership, or a limited liability partnership; a member of a limited

33 liability company, a beneficiary of a trust; or a sole proprietor.

34 (4) "Pass-through entity" means a corporation that for the applicable tax year is treated as

1 an S Corporation under I.R.C. 1362(a) (26 U.S.C. § 1362(a)), or a general partnership, limited

2 partnership, limited liability partnership, trust, limited liability company or unincorporated sole

3 proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes

4 under the state’s regulations.

5 (5) "State tax credit" means the amount of tax paid by the pass-through entity at the entity

6 level which is passed through to an owner on a pro rata basis.

7 (b) Elections.

8 (1) For tax years beginning on or after January 1, 2019, a pass-through entity may elect to

9 pay the state tax at the entity level at the rate of five and ninety-nine hundredths percent (5.99%).

10 (2) If a pass-through entity elects to pay an entity tax under this subsection, the entity shall

11 not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident

12 owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2

13 regarding withholding on non-resident owners.

14 (c) Reporting.

15 (1) The pass-through entity shall report the pro rata share of the state income taxes paid by

16 the entity which sums will be allowed as a state tax credit for an owner on his or her personal

17 income tax return.

18 (2) The pass-through entity shall also report the pro rata share of the state income taxes

19 paid by the entity as an income (addition) modification to be reported by an owner on his or her

20 personal income tax returns.

21 (d) State tax credit shall be the amount of tax paid by the pass-through entity, at the entity

22 level, which is passed through to the owners, on a pro rata basis.

23 (e) A similar type of tax imposed by another state on the owners' income paid at the state

24 entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in

25 accordance with the provisions of § 44-30-18.

26 (f) "Combined reporting" as set forth in § 44-11-4.1 shall not apply to reporting under this

27 section.

28 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-

29 18-18, 44-18-18.1, 44-18-20, 44-18-21, 44-18-22, 44-18-23, 44-18-25 and 44-18-36.1 of the

30 General Laws in Chapter 44-18 entitled "Sales and Use Taxes - Liability and Computation" are

31 hereby amended to read as follows:

32 44-18-7. Sales defined.

33 "Sales" means and includes:

34 (1) Any transfer of title or possession, exchange, barter, lease, or rental, conditional or

1 otherwise, in any manner or by any means of tangible personal property for a consideration.

2 "Transfer of possession", "lease", or "rental" includes transactions found by the tax administrator

3 to be in lieu of a transfer of title, exchange, or barter.

4 (2) The producing, fabricating, processing, printing, or imprinting of tangible personal

5 property for a consideration for consumers who furnish either directly or indirectly the materials

6 used in the producing, fabricating, processing, printing, or imprinting.

7 (3) The furnishing and distributing of tangible personal property for a consideration by

8 social, athletic, and similar clubs and fraternal organizations to their members or others.

9 (4) The furnishing, preparing, or serving for consideration of food, meals, or drinks,

10 including any cover, minimum, entertainment, or other charge in connection therewith.

11 (5) A transaction whereby the possession of tangible personal property is transferred, but

12 the seller retains the title as security for the payment of the price.

13 (6) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate

14 commerce, of tangible personal property from the place where it is located for delivery to a point

15 in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental,

16 conditional or otherwise, in any manner or by any means whatsoever, of the property for a

17 consideration.

18 (7) A transfer for a consideration of the title or possession of tangible personal property,

19 which has been produced, fabricated, or printed to the special order of the customer, or any

20 publication.

21 (8) The furnishing and distributing of electricity, natural gas, artificial gas, steam,

22 refrigeration, and water.

23 (9)(i) The furnishing for consideration of intrastate, interstate, and international

24 telecommunications service sourced in this state in accordance with §§ 44-18.1-15 and 44-18.1-16

25 and all ancillary services, and any maintenance services of telecommunication equipment other

26 than as provided for in § 44-18-12(b)(ii). For the purposes of chapters 18 and 19 of this title only,

27 telecommunication service does not include service rendered using a prepaid telephone calling

28 arrangement.

29 (ii) Notwithstanding the provisions of paragraph (i) of this subdivision, in accordance with

30 the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 -- 126), subject to the specific

31 exemptions described in 4 U.S.C. § 116(c), and the exemptions provided in §§ 44-18-8 and 44-18-

32 12, mobile telecommunications services that are deemed to be provided by the customer's home

33 service provider are subject to tax under this chapter if the customer's place of primary use is in this

34 state regardless of where the mobile telecommunications services originate, terminate, or pass

1 through. Mobile telecommunications services provided to a customer, the charges for which are

2 billed by or for the customer's home service provider, shall be deemed to be provided by the

3 customer's home service provider.

4 (10) The furnishing of service for transmission of messages by telegraph, cable, or radio

5 and the furnishing of community antenna television, subscription television, and cable television

6 services.

7 (11) The rental of living quarters in any hotel, rooming house, or tourist camp.

8 (12) The transfer for consideration of prepaid telephone calling arrangements and the

9 recharge of prepaid telephone calling arrangements sourced to this state in accordance with §§ 44-

10 18.1-11 and 44-18.1-15. "Prepaid telephone calling arrangement" means and includes prepaid

11 calling service and prepaid wireless calling service.

12 (13) The sale, storage, use, or other consumption of over-the-counter drugs as defined in §

13 44-18-7.1(h)(ii).

14 (14) The sale, storage, use, or other consumption of prewritten computer software delivered

15 electronically or by load and leave as defined in § 44-18-7.1(g)(v).

16 (15) The sale, storage, use, or other consumption of vendor-hosted prewritten computer

17 software as defined in § 44-18-7.1(g)(vii).

18 (16) The sale, storage, use, or other consumption of specified digital products as defined in

19 44-18-7.1(x).

20 (176) The sale, storage, use, or other consumption of medical marijuana as defined in § 21-

21 28.6-3.

22 (187) The furnishing of services in this state as defined in § 44-18-7.3.

23 44-18-7.1. Additional definitions.

24 (a) "Agreement" means the streamlined sales and use tax agreement.

25 (b) "Alcoholic beverages" means beverages that are suitable for human consumption and

26 contain one-half of one percent (.5%) or more of alcohol by volume.

27 (c) "Bundled transaction" is the retail sale of two or more products, except real property

28 and services to real property, where (1) The products are otherwise distinct and identifiable, and

29 (2) The products are sold for one non-itemized price. A "bundled transaction" does not include the

30 sale of any products in which the "sales price" varies, or is negotiable, based on the selection by

31 the purchaser of the products included in the transaction.

32 (i) "Distinct and identifiable products" does not include:

33 (A) Packaging -- such as containers, boxes, sacks, bags, and bottles -- or other materials --

34 such as wrapping, labels, tags, and instruction guides -- that accompany the "retail sale" of the

1 products and are incidental or immaterial to the "retail sale" thereof. Examples of packaging that

2 are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and

3 express delivery envelopes and boxes.

4 (B) A product provided free of charge with the required purchase of another product. A

5 product is "provided free of charge" if the "sales price" of the product purchased does not vary

6 depending on the inclusion of the products "provided free of charge."

7 (C) Items included in the member state's definition of "sales price," pursuant to appendix

8 C of the agreement.

9 (ii) The term "one non-itemized price" does not include a price that is separately identified

10 by product on binding sales or other supporting sales-related documentation made available to the

11 customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt,

12 contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or

13 price list.

14 (iii) A transaction that otherwise meets the definition of a "bundled transaction" as defined

15 above, is not a "bundled transaction" if it is:

16 (A) The "retail sale" of tangible personal property and a service where the tangible personal

17 property is essential to the use of the service, and is provided exclusively in connection with the

18 service, and the true object of the transaction is the service; or

19 (B) The "retail sale" of services where one service is provided that is essential to the use or

20 receipt of a second service and the first service is provided exclusively in connection with the

21 second service and the true object of the transaction is the second service; or

22 (C) A transaction that includes taxable products and nontaxable products and the "purchase

23 price" or "sales price" of the taxable products is de minimis.

24 1. De minimis means the seller's "purchase price" or "sales price" of the taxable products

25 is ten percent (10%) or less of the total "purchase price" or "sales price" of the bundled products.

26 2. Sellers shall use either the "purchase price" or the "sales price" of the products to

27 determine if the taxable products are de minimis. Sellers may not use a combination of the

28 "purchase price" and "sales price" of the products to determine if the taxable products are de

29 minimis.

30 3. Sellers shall use the full term of a service contract to determine if the taxable products

31 are de minimis; or

32 (D) The "retail sale" of exempt tangible personal property and taxable tangible personal

33 property where:

1 equipment", "mobility enhancing equipment", "over-the-counter drugs", "prosthetic devices" (all

2 as defined in this section) or medical supplies; and

3 2. Where the seller's "purchase price" or "sales price" of the taxable tangible personal

4 property is fifty percent (50%) or less of the total "purchase price" or "sales price" of the bundled

5 tangible personal property. Sellers may not use a combination of the "purchase price" and "sales

6 price" of the tangible personal property when making the fifty percent (50%) determination for a

7 transaction.

8 (d) "Certified automated system (CAS)" means software certified under the agreement to

9 calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit

10 to the appropriate state, and maintain a record of the transaction.

11 (e) "Certified service provider (CSP)" means an agent certified under the agreement to

12 perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on

13 its own purchases.

14 (f) Clothing and related items.

15 (i) "Clothing" means all human wearing apparel suitable for general use.

16 (ii) "Clothing accessories or equipment" means incidental items worn on the person or in

17 conjunction with "clothing." "Clothing accessories or equipment" does not include "clothing",

18 "sport or recreational equipment", or "protective equipment."

19 (iii) "Protective equipment" means items for human wear and designed as protection of the

20 wearer against injury or disease or as protections against damage or injury of other persons or

21 property but not suitable for general use. "Protective equipment" does not include "clothing",

22 "clothing accessories or equipment", and "sport or recreational equipment."

23 (iv) "Sport or recreational equipment" means items designed for human use and worn in

24 conjunction with an athletic or recreational activity that are not suitable for general use. "Sport or

25 recreational equipment" does not include "clothing", "clothing accessories or equipment", and

26 "protective equipment."

27 (g) Computer and related items.

28 (i) "Computer" means an electronic device that accepts information in digital or similar

29 form and manipulates it for a result based on a sequence of instructions.

30 (ii) "Computer software" means a set of coded instructions designed to cause a "computer"

31 or automatic data processing equipment to perform a task.

32 (iii) "Delivered electronically" means delivered to the purchaser by means other than

33 tangible storage media.

1 optical, electromagnetic, or similar capabilities.

2 (v) "Load and leave" means delivery to the purchaser by use of a tangible storage media

3 where the tangible storage media is not physically transferred to the purchaser.

4 (vi) "Prewritten computer software" means "computer software," including prewritten

5 upgrades, that is not designed and developed by the author or other creator to the specifications of

6 a specific purchaser. The combining of two (2) or more "prewritten computer software" programs

7 or prewritten portions thereof does not cause the combination to be other than "prewritten computer

8 software." "Prewritten computer software" includes software designed and developed by the author

9 or other creator to the specifications of a specific purchaser when it is sold to a person other than

10 the specific purchaser. Where a person modifies or enhances "computer software" of which the

11 person is not the author or creator, the person shall be deemed to be the author or creator only of

12 such person's modifications or enhancements. "Prewritten computer software" or a prewritten

13 portion thereof that is modified or enhanced to any degree, where such modification or

14 enhancement is designed and developed to the specifications of a specific purchaser, remains

15 "prewritten computer software"; provided, however, that where there is a reasonable, separately

16 stated charge or an invoice or other statement of the price given to the purchaser for such

17 modification or enhancement, such modification or enhancement shall not constitute "prewritten

18 computer software."

19 (vii) "Vendor-hosted prewritten computer software" means prewritten computer software

20 that is accessed through the internet and/or a vendor-hosted server regardless of whether the access

21 is permanent or temporary and regardless of whether any downloading occurs.

22 (h) Drugs and related items.

23 (i) "Drug" means a compound, substance, or preparation, and any component of a

24 compound, substance, or preparation, other than "food and food ingredients," "dietary

25 supplements" or "alcoholic beverages":

26 (A) Recognized in the official United States Pharmacopoeia, official Homeopathic

27 Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them;

28 or

29 (B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease;

30 or

31 (C) Intended to affect the structure or any function of the body.

32 "Drug" shall also include insulin and medical oxygen whether or not sold on prescription.

33 (ii) "Over-the-counter drug" means a drug that contains a label that identifies the product

34 as a drug as required by 21 C.F.R. § 201.66. The "over-the-counter drug" label includes:

1 (A) A "Drug Facts" panel; or

2 (B) A statement of the "active ingredient(s)" with a list of those ingredients contained in

3 the compound, substance, or preparation.

4 "Over-the-counter drug" shall not include "grooming and hygiene products."

5 (iii) "Grooming and hygiene products" are soaps and cleaning solutions, shampoo,

6 toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the

7 items meet the definition of "over-the-counter drugs."

8 (iv) "Prescription" means an order, formula, or recipe issued in any form of oral, written,

9 electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of

10 the member state.

11 (i) "Delivery charges" means charges by the seller of personal property or services for

12 preparation and delivery to a location designated by the purchaser of personal property or services

13 including, but not limited to: transportation, shipping, postage, handling, crating, and packing.

14 "Delivery charges" shall not include the charges for delivery of "direct mail" if the charges

15 are separately stated on an invoice or similar billing document given to the purchaser.

16 (j) "Direct mail" means printed material delivered or distributed by United States mail or

17 other delivery service to a mass audience or to addressees on a mailing list provided by the

18 purchaser or at the direction of the purchaser when the cost of the items are not billed directly to

19 the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by

20 the purchaser to the direct mail seller for inclusion in the package containing the printed material.

21 "Direct mail" does not include multiple items of printed material delivered to a single address.

22 (k) "Durable medical equipment" means equipment including repair and replacement parts

23 for same which:

24 (i) Can withstand repeated use; and

25 (ii) Is primarily and customarily used to serve a medical purpose; and

26 (iii) Generally is not useful to a person in the absence of illness or injury; and

27 (iv) Is not worn in or on the body.

28 Durable medical equipment does not include mobility enhancing equipment.

29 (l) Food and related items.

30 (i) "Food and food ingredients" means substances, whether in liquid, concentrated, solid,

31 frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are

32 consumed for their taste or nutritional value. "Food and food ingredients" does not include

33 "alcoholic beverages", "tobacco", "candy", "dietary supplements", and "soft drinks."

34 (ii) "Prepared food" means:

1 (A) Food sold in a heated state or heated by the seller;

2 (B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single

3 item; or

4 (C) Food sold with eating utensils provided by the seller, including: plates, knives, forks,

5 spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used

6 to transport the food.

7 "Prepared food" in (B) does not include food that is only cut, repackaged, or pasteurized

8 by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring

9 cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part

10 401.11 of its Food Code so as to prevent food borne illnesses.

11 (iii) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners

12 in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars,

13 drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no

14 refrigeration.

15 (iv) "Soft drinks" means non-alcoholic beverages that contain natural or artificial

16 sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice,

17 or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume.

18 (v) "Dietary supplement" means any product, other than "tobacco", intended to supplement

19 the diet that:

20 (A) Contains one or more of the following dietary ingredients:

21 1. A vitamin;

22 2. A mineral;

23 3. An herb or other botanical;

24 4. An amino acid;

25 5. A dietary substance for use by humans to supplement the diet by increasing the total

26 dietary intake; or

27 6. A concentrate, metabolite, constituent, extract, or combination of any ingredient

28 described above; and

29 (B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or

30 if not intended for ingestion in such a form, is not represented as conventional food and is not

31 represented for use as a sole item of a meal or of the diet; and

32 (C) Is required to be labeled as a dietary supplement, identifiable by the "supplemental

33 facts" box found on the label and as required pursuant to 21 C.F.R. § 101.36.

34 (m) "Food sold through vending machines" means food dispensed from a machine or other

1 mechanical device that accepts payment.

2 (n) "Hotel" means every building or other structure kept, used, maintained, advertised as,

3 or held out to the public to be a place where living quarters are supplied for pay to transient or

4 permanent guests and tenants and includes a motel.

5 (i) "Living quarters" means sleeping rooms, sleeping or housekeeping accommodations, or

6 any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is

7 available for or rented out for hire in the lodging of guests.

8 (ii) "Rooming house" means every house, boat, vehicle, motor court, or other structure

9 kept, used, maintained, advertised, or held out to the public to be a place where living quarters are

10 supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings.

11 (iii) "Tourist camp" means a place where tents or tent houses, or camp cottages, or cabins

12 or other structures are located and offered to the public or any segment thereof for human

13 habitation.

14 (o) "Lease or rental" means any transfer of possession or control of tangible personal

15 property for a fixed or indeterminate term for consideration. A lease or rental may include future

16 options to purchase or extend. Lease or rental does not include:

17 (i) A transfer of possession or control of property under a security agreement or deferred

18 payment plan that requires the transfer of title upon completion of the required payments;

19 (ii) A transfer of possession or control of property under an agreement that requires the

20 transfer of title upon completion of required payments and payment of an option price does not

21 exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or

22 (iii) Providing tangible personal property along with an operator for a fixed or

23 indeterminate period of time. A condition of this exclusion is that the operator is necessary for the

24 equipment to perform as designed. For the purpose of this subsection, an operator must do more

25 than maintain, inspect, or set-up the tangible personal property.

26 (iv) Lease or rental does include agreements covering motor vehicles and trailers where the

27 amount of consideration may be increased or decreased by reference to the amount realized upon

28 sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).

29 (v) This definition shall be used for sales and use tax purposes regardless if a transaction

30 is characterized as a lease or rental under generally accepted accounting principles, the Internal

31 Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.

32 (vi) This definition will be applied only prospectively from the date of adoption and will

33 have no retroactive impact on existing leases or rentals. This definition shall neither impact any

34 existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from

1 adopting a sale-leaseback exemption or exclusion after the effective date of the agreement.

2 (p) "Mobility enhancing equipment" means equipment, including repair and replacement

3 parts to same, that:

4 (i) Is primarily and customarily used to provide or increase the ability to move from one

5 place to another and that is appropriate for use either in a home or a motor vehicle; and

6 (ii) Is not generally used by persons with normal mobility; and

7 (iii) Does not include any motor vehicle or equipment on a motor vehicle normally

8 provided by a motor vehicle manufacturer.

9 Mobility enhancing equipment does not include durable medical equipment.

10 (q) "Model 1 Seller" means a seller that has selected a CSP as its agent to perform all the

11 seller's sales and use tax functions, other than the seller's obligation to remit tax on its own

12 purchases.

13 (r) "Model 2 Seller" means a seller that has selected a CAS to perform part of its sales and

14 use tax functions, but retains responsibility for remitting the tax.

15 (s) "Model 3 Seller" means a seller that has sales in at least five member states, has total

16 annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary

17 system that calculates the amount of tax due each jurisdiction, and has entered into a performance

18 agreement with the member states that establishes a tax performance standard for the seller. As

19 used in this definition, a seller includes an affiliated group of sellers using the same proprietary

20 system.

21 (t) "Prosthetic device" means a replacement, corrective, or supportive device including

22 repair and replacement parts for same worn on or in the body to:

23 (i) Artificially replace a missing portion of the body;

24 (ii) Prevent or correct physical deformity or malfunction; or

25 (iii) Support a weak or deformed portion of the body.

26 (u) "Purchaser" means a person to whom a sale of personal property is made or to whom a

27 service is furnished.

28 (v) "Purchase price" applies to the measure subject to use tax and has the same meaning as

29 sales price.

30 (w) "Seller" means a person making sales, leases, or rentals of personal property or

31 services.

32 (x) Specified Digital Products

33 (i) “Specified digital products” means electronically transferred:

34 (A) “Digital Audio-Visual Works” which means a series of related images which, when

1 shown in succession, impart an impression of motion, together with accompanying sounds, if any;

2 (B) “Digital Audio Works” which means works that result from the fixation of a series of

3 musical, spoken, or other sounds, including ringtones, and/or;

4 (C) “Digital Books” which means works that are generally recognized in the ordinary and

5 usual sense as “books”.

6 (ii) For purposes of the definition of “digital audio works”, “ringtones” means digitized

7 sound files that are downloaded onto a device and that may be used to alert the customer with

8 respect to a communication.

9 (iii) For purposes of the definitions of “specified digital products”, “transferred

10 electronically” means obtained by the purchaser by means other than tangible storage media.

11 (xy) "State" means any state of the United States and the District of Columbia.

12 (yz) "Telecommunications" tax base/exemption terms.

13 (i) Telecommunication terms shall be defined as follows:

14 (A) "Ancillary services" means services that are associated with or incidental to the

15 provision of "telecommunications services", including, but not limited to, "detailed

16 telecommunications billing", "directory assistance", "vertical service", and "voice mail services".

17 (B) "Conference bridging service" means an "ancillary service" that links two (2) or more

18 participants of an audio or video conference call and may include the provision of a telephone

19 number. "Conference bridging service" does not include the "telecommunications services" used

20 to reach the conference bridge.

21 (C) "Detailed telecommunications billing service" means an "ancillary service" of

22 separately stating information pertaining to individual calls on a customer's billing statement.

23 (D) "Directory assistance" means an "ancillary service" of providing telephone number

24 information, and/or address information.

25 (E) "Vertical service" means an "ancillary service" that is offered in connection with one

26 or more "telecommunications services", which offers advanced calling features that allow

27 customers to identify callers and to manage multiple calls and call connections, including

28 "conference bridging services".

29 (F) "Voice mail service" means an "ancillary service" that enables the customer to store,

30 send, or receive recorded messages. "Voice mail service" does not include any "vertical services"

31 that the customer may be required to have in order to utilize the "voice mail service".

32 (G) "Telecommunications service" means the electronic transmission, conveyance, or

33 routing of voice, data, audio, video, or any other information or signals to a point, or between or

34 among points. The term "telecommunications service" includes such transmission, conveyance, or

1 routing in which computer processing applications are used to act on the form, code, or protocol of

2 the content for purposes of transmission, conveyance, or routing without regard to whether such

3 service is referred to as voice over internet protocol services or is classified by the Federal

4 Communications Commission as enhanced or value added. "Telecommunications service" does

5 not include:

6 (1) Data processing and information services that allow data to be generated, acquired,

7 stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where

8 such purchaser's primary purpose for the underlying transaction is the processed data or

9 information;

10 (2) Installation or maintenance of wiring or equipment on a customer's premises;

11 (3) Tangible personal property;

12 (4) Advertising, including, but not limited to, directory advertising;

13 (5) Billing and collection services provided to third parties;

14 (6) Internet access service;

15 (7) Radio and television audio and video programming services, regardless of the medium,

16 including the furnishing of transmission, conveyance, and routing of such services by the

17 programming service provider. Radio and television audio and video programming services shall

18 include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video

19 programming services delivered by commercial mobile radio service providers as defined in 47

20 C.F.R. § 20.3;

21 (8) "Ancillary services"; or

22 (9) Digital products "delivered electronically", including, but not limited to: software,

23 music, video, reading materials, or ring tones.

24 (H) "800 service" means a "telecommunications service" that allows a caller to dial a toll-

25 free number without incurring a charge for the call. The service is typically marketed under the

26 name "800", "855", "866", "877", and "888" toll-free calling, and any subsequent numbers

27 designated by the Federal Communications Commission.

28 (I) "900 service" means an inbound toll "telecommunications service" purchased by a

29 subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded

30 announcement or live service. "900 service" does not include the charge for: collection services

31 provided by the seller of the "telecommunications services" to the subscriber, or service or product

32 sold by the subscriber to the subscriber's customer. The service is typically marketed under the

33 name "900 service," and any subsequent numbers designated by the Federal Communications

34 Commission.

1 (J) "Fixed wireless service" means a "telecommunications service" that provides radio

2 communication between fixed points.

3 (K) "Mobile wireless service" means a "telecommunications service" that is transmitted,

4 conveyed, or routed regardless of the technology used, whereby the origination and/or termination

5 points of the transmission, conveyance, or routing are not fixed, including, by way of example only,

6 "telecommunications services" that are provided by a commercial mobile radio service provider.

7 (L) "Paging service" means a "telecommunications service" that provides transmission of

8 coded radio signals for the purpose of activating specific pagers; such transmissions may include

9 messages and/or sounds.

10 (M) "Prepaid calling service" means the right to access exclusively "telecommunications

11 services", which must be paid for in advance and that enables the origination of calls using an

12 access number or authorization code, whether manually or electronically dialed, and that is sold in

13 predetermined units or dollars of which the number declines with use in a known amount.

14 (N) "Prepaid wireless calling service" means a "telecommunications service" that provides

15 the right to utilize "mobile wireless service", as well as other non-telecommunications services,

16 including the download of digital products "delivered electronically", content and "ancillary

17 services" which must be paid for in advance that is sold in predetermined units of dollars of which

18 the number declines with use in a known amount.

19 (O) "Private communications service" means a telecommunications service that entitles the

20 customer to exclusive or priority use of a communications channel or group of channels between

21 or among termination points, regardless of the manner in which such channel or channels are

22 connected, and includes switching capacity, extension lines, stations, and any other associated

23 services that are provided in connection with the use of such channel or channels.

24 (P) "Value-added non-voice data service" means a service that otherwise meets the

25 definition of "telecommunications services" in which computer processing applications are used to

26 act on the form, content, code, or protocol of the information or data primarily for a purpose other

27 than transmission, conveyance, or routing.

28 (ii) "Modifiers of Sales Tax Base/Exemption Terms" -- the following terms can be used to

29 further delineate the type of "telecommunications service" to be taxed or exempted. The terms

30 would be used with the broader terms and subcategories delineated above.

31 (A) "Coin-operated telephone service" means a "telecommunications service" paid for by

32 inserting money into a telephone accepting direct deposits of money to operate.

1 includes the District of Columbia or a U.S. territory or possession.

2 (C) "Interstate" means a "telecommunications service" that originates in one United States

3 state, or a United States territory or possession, and terminates in a different United States state or

4 a United States territory or possession.

5 (D) "Intrastate" means a "telecommunications service" that originates in one United States

6 state or a United States territory or possession, and terminates in the same United States state or a

7 United States territory or possession.

8 (E) "Pay telephone service" means a "telecommunications service" provided through any

9 pay telephone.

10 (F) "Residential telecommunications service" means a "telecommunications service" or

11 "ancillary services" provided to an individual for personal use at a residential address, including an

12 individual dwelling unit such as an apartment. In the case of institutions where individuals reside,

13 such as schools or nursing homes, "telecommunications service" is considered residential if it is

14 provided to and paid for by an individual resident rather than the institution.

15 The terms "ancillary services" and "telecommunications service" are defined as a broad

16 range of services. The terms "ancillary services" and "telecommunications service" are broader

17 than the sum of the subcategories. Definitions of subcategories of "ancillary services" and

18 "telecommunications service" can be used by a member state alone or in combination with other

19 subcategories to define a narrower tax base than the definitions of "ancillary services" and

20 "telecommunications service" would imply. The subcategories can also be used by a member state

21 to provide exemptions for certain subcategories of the more broadly defined terms.

22 A member state that specifically imposes tax on, or exempts from tax, local telephone or

23 local telecommunications service may define "local service" in any manner in accordance with §

24 44-18.1-28, except as limited by other sections of this Agreement.

25 (zaa) "Tobacco" means cigarettes, cigars, chewing, or pipe tobacco, or any other item that

26 contains tobacco.

27 44-18-7.3. Services defined.

28 (a) "Services" means all activities engaged in for other persons for a fee, retainer,

29 commission, or other monetary charge, which activities involve the performance of a service in this

30 state as distinguished from selling property.

31 (b) The following businesses and services performed in this state, along with the applicable

32 ~~2007~~ 2017 North American Industrial Classification System (NAICS) codes, are included in the

1 (i) Taxicab services including taxi dispatchers (485310); and

2 (ii) Limousine services (485320).

3 (2) Other road transportation service including but not limited to:

4 (i) Charter bus service (485510);

5 (ii) "Transportation network companies" (TNC) defined as an entity that uses a digital

6 network to connect transportation network company riders to transportation network operators who

7 provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15

8 and is required to file a business application and registration form and obtain a permit to make sales

9 at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and

10 (iii) All other transit and ground passenger transportation (485999).

11 (3) Pet care services (812910) except veterinary and testing laboratories services.

12 (4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in

13 § 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as

14 defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the

15 reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion

16 of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include,

17 but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the

18 provisions of any other law, where said reservation or transfer of occupancy is done using a room

19 reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and

20 the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to

21 register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes,

22 with said taxes being calculated upon the amount of rental and other fees paid by the occupant to

23 the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller

24 or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the

25 amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant.

26 No assessment shall be made by the tax administrator against a hotel because of an incorrect

27 remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be

28 made by the tax administrator against a room reseller or reseller because of an incorrect remittance

29 of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter,

30 the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes.

31 If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller

32 or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the

33 occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and

1 to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same

2 manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or

3 reseller from the occupant under this chapter shall be stated and charged separately from the rental

4 and other fees, and shall be shown separately on all records thereof, whether made at the time the

5 transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the

6 room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the

7 occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller

8 shall represent to the occupant that the separately stated taxes charged by the room reseller or

9 reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a

10 room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit

11 pursuant to § 44-19-1.

12 (ii) "Travel package" means a room, or rooms, bundled with one or more other, separate

13 components of travel such as air transportation, car rental, or similar items, which travel package

14 is charged to the customer or occupant for a single, retail price. When the room occupancy is

15 bundled for a single consideration, with other property, services, amusement charges, or any other

16 items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire

17 single consideration shall be treated as the rental or other fees for room occupancy subject to tax

18 under this chapter; provided, however, that where the amount of the rental, or other fees for room

19 occupancy is stated separately from the price of such other property, services, amusement charges,

20 or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such

21 rental and other fees are determined by the tax administrator to be reasonable in relation to the

22 value of such other property, services, amusement charges, or other items, only such separately

23 stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any

24 room, or rooms, bundled as part of a travel package may be determined by the tax administrator

25 from the room reseller's and/or reseller's and/or hotel's books and records that are kept in the regular

26 course of business.

27 (5) Investigation, Guard, and Armored Car Services (~~56161~~ 561611, 561612 & 561613).

28 (c) All services as defined herein are required to file a business application and registration

29 form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and

30 remit Rhode Island sales and use tax.

31 (d) The tax administrator is authorized to promulgate rules and regulations in accordance

32 with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of

33 this chapter.

34 44-18-8. Retail sale or sale at retail defined.

1 A "retail sale" or "sale at retail" means any sale, lease, or rentals of tangible personal

2 property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

3 prewritten computer software, specified digital products, or services as defined in § 44-18-7.3 for

4 any purpose other than resale, sublease, or subrent in the regular course of business. The sale of

5 tangible personal property to be used for purposes of rental in the regular course of business is

6 considered to be a sale for resale. In regard to telecommunications service as defined in § 44-18-

7 7(9), retail sale does not include the purchase of telecommunications service by a

8 telecommunications provider from another telecommunication provider for resale to the ultimate

9 consumer; provided, that the purchaser submits to the seller a certificate attesting to the

10 applicability of this exclusion, upon receipt of which the seller is relieved of any tax liability for

11 the sale.

12 44-18-15. "Retailer" defined.

13 (a) "Retailer" includes:

14 (1) Every person engaged in the business of making sales at retail including prewritten

15 computer software delivered electronically or by load and leave, vendor-hosted prewritten

16 computer software, specified digital products, sales of services as defined in § 44-18-7.3, and sales

17 at auction of tangible personal property owned by the person or others.

18 (2) Every person making sales of tangible personal property including prewritten computer

19 software delivered electronically or by load and leave, or vendor-hosted prewritten computer

20 software or specified digital products, or sales of services as defined in § 44-18-7.3, through an

21 independent contractor or other representative, if the retailer enters into an agreement with a

22 resident of this state, under which the resident, for a commission or other consideration, directly or

23 indirectly refers potential customers, whether by a link on an internet website or otherwise, to the

24 retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state

25 who are referred to the retailer by all residents with this type of an agreement with the retailer, is

26 in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending

27 on the last day of March, June, September and December. Such retailer shall be presumed to be

28 soliciting business through such independent contractor or other representative, which presumption

29 may be rebutted by proof that the resident with whom the retailer has an agreement did not engage

30 in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of

31 the United States Constitution during such four (4) quarterly periods.

32 (3) Every person engaged in the business of making sales for storage, use, or other

33 consumption of: (i) tangible personal property, (ii) sales at auction of tangible personal property

34 owned by the person or others, (iii) prewritten computer software delivered electronically or by

1 load and leave, (iv) vendor-hosted prewritten computer software, (v) specified digital products, and

2 (vvi) services as defined in § 44-18-7.3.

3 (4) A person conducting a horse race meeting with respect to horses, which are claimed

4 during the meeting.

5 (5) Every person engaged in the business of renting any living quarters in any hotel as

6 defined in § 42-63.1-2, rooming house, or tourist camp.

7 (6) Every person maintaining a business within or outside of this state who engages in the

8 regular or systematic solicitation of sales of tangible personal property, prewritten computer

9 software delivered electronically or by load and leave, vendor-hosted prewritten computer

10 software, and/or specified digital products in this State by means of:

11 (i) Advertising in newspapers, magazines, and other periodicals published in this state, sold

12 over the counter in this state or sold by subscription to residents of this state, billboards located in

13 this state, airborne advertising messages produced or transported in the airspace above this state,

14 display cards and posters on common carriers or any other means of public conveyance

15 incorporated or operated primarily in this state, brochures, catalogs, circulars, coupons, pamphlets,

16 samples, and similar advertising material mailed to, or distributed within this state to residents of

17 this state;

18 (ii) Telephone;

19 (iii) Computer assisted shopping networks; and

20 (iv) Television, radio or any other electronic media, which is intended to be broadcast to

21 consumers located in this state.

22 (b) When the tax administrator determines that it is necessary for the proper administration

23 of chapters 18 and 19 of this title to regard any salespersons, representatives, truckers, peddlers, or

24 canvassers as the agents of the dealers, distributors, supervisors, employers, or persons under whom

25 they operate or from whom they obtain the tangible personal property sold by them, irrespective of

26 whether they are making sales on their own behalf or on behalf of the dealers, distributors,

27 supervisors, or employers, the tax administrator may so regard them and may regard the dealers,

28 distributors, supervisors, or employers as retailers for purposes of chapters 18 and 19 of this title.

29 44-18-15.2. "Remote seller" and "remote sale" defined -- Collection of sales and use

30 tax by remote seller.

31 (a) As used in this section:

32 (1) "Remote seller" means any seller, other than a marketplace facilitator or referrer, who

1 ~~and remit sales and use taxes, this state will require a remote seller making remote sales in the state~~

2 ~~to pay, collect, and remit sales and use taxes at the rate imposed under § 44-18-18, and in~~

3 ~~accordance with the provisions of this article, chapters 18.1 and 19 of this title, and applicable~~

4 ~~federal law.~~

5 44-18-18. Sales tax imposed.

6 A tax is imposed upon sales at retail in this state including charges for rentals of living

7 quarters in hotels as defined in § 42-63.1-2, rooming houses, or tourist camps, at the rate of six

8 percent (6%) of the gross receipts of the retailer from the sales or rental charges; provided, that the

9 tax imposed on charges for the rentals applies only to the first period of not exceeding thirty (30)

10 consecutive calendar days of each rental; provided, further, that for the period commencing July 1,

11 1990, the tax rate is seven percent (7%). The tax is paid to the tax administrator by the retailer at

12 the time and in the manner provided. Excluded from this tax are those living quarters in hotels,

13 rooming houses, or tourist camps for which the occupant has a written lease for the living quarters

14 which lease covers a rental period of twelve (12) months or more. ~~In recognition of the work being~~

15 ~~performed by the streamlined sales and use tax governing board, upon passage of any federal law~~

16 ~~that authorizes states to require remote sellers to collect and remit sales and use taxes, the rate~~

17 ~~imposed under this section shall be reduced from seven percent (7%) to six and one-half percent~~

18 ~~(6.5%). The six and one-half percent (6.5%) rate shall take effect on the date that the state requires~~

19 ~~remote sellers to collect and remit sale and use taxes.~~

20 44-18-18.1. Local meals and beverage tax.

21 (a) There is hereby levied and imposed, upon every purchaser of a meal and/or beverage,

22 in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon

23 each and every meal and/or beverage sold within the state of Rhode Island in or from an eating

24 and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not

25 and whether consumed at the premises or not, at a rate of one percent of the gross receipts. The tax

26 shall be paid to the tax administrator by the retailer at the time and in the manner provided.

27 (b) All sums received by the division of taxation under this section as taxes, penalties, or

28 forfeitures, interest, costs of suit, and fines shall be distributed at least quarterly and credited and

29 paid by the state treasurer to the city or town where the meals and beverages are delivered.

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

31 (1) "Beverage" means all nonalcoholic beverages, as well as alcoholic beverages, beer,

32 lager beer, ale, porter, wine, similar fermented malt, or vinous liquor.

1 chip places, fried chicken places, pizzerias, food-and-drink concessions, or similar facilities in

2 amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks,

3 shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other

4 like places of business that furnish or provide facilities for immediate consumption of food at tables,

5 chairs, or, counters or from trays, plates, cups, or other tableware, or in parking facilities provided

6 primarily for the use of patrons in consuming products purchased at the location. Ordinarily, eating

7 establishment does not mean and include food stores and supermarkets. Eating establishments does

8 not mean "vending machines," a self-contained automatic device that dispenses for sale foods,

9 beverages, or confection products. Retailers selling prepared foods in bulk, either in customer-

10 furnished containers or in the seller's containers, for example "Soup and Sauce" establishments, are

11 deemed to be selling prepared foods ordinarily for immediate consumption and, as such, are

12 considered eating establishments.

13 (3) "Meal" means any prepared food or beverage offered or held out for sale by an eating

14 and/or drinking establishment for the purpose of being consumed by any person to satisfy the

15 appetite and that is ready for immediate consumption. All such food and beverage, unless otherwise

16 specifically exempted or excluded herein shall be included, whether intended to be consumed on

17 the seller's premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper, or

18 by some other name, and without regard to the manner, time, or place of service.

19 (d) This local meals and beverage tax shall be administered and collected by the division

20 of taxation, and unless provided to the contrary in this chapter, all of the administration, collection,

21 and other provisions of chapters 18 and 19 of this title apply.

22 ~~In recognition of the work being performed by the streamlined sales and use tax governing~~

23 ~~board, upon passage of any federal law that authorizes states to require remote sellers to collect and~~

24 ~~remit sales and use taxes, the rate imposed under this section shall be increased from one percent~~

25 ~~(1%) to one and one-half percent (1.5%). The one and one-half percent (1.5%) rate shall take effect~~

26 ~~on the date that the state requires remote sellers to collect and remit sales and use taxes.~~

27 44-18-20. Use tax imposed.

28 (a) An excise tax is imposed on the storage, use, or other consumption in this state of

29 tangible personal property; prewritten computer software delivered electronically or by load and

30 leave; vendor-hosted prewritten computer software; specified digital products; or services as

31 defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from

32 any retailer at the rate of six percent (6%) of the sale price of the property.

33 (b) An excise tax is imposed on the storage, use, or other consumption in this state of a

1 dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent

2 (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

3 (c) The word "trailer," as used in this section and in § 44-18-21, means and includes those

4 defined in § 31-1-5(a) -- (f) and also includes boat trailers, camping trailers, house trailers, and

5 mobile homes.

6 (d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to

7 the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any

8 casual sale:

9 (1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child

10 of the transferor or seller;

11 (2) When the transfer or sale is made in connection with the organization, reorganization,

12 dissolution, or partial liquidation of a business entity, provided:

13 (i) The last taxable sale, transfer, or use of the article being transferred or sold was subjected

14 to a tax imposed by this chapter;

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

16 partner; and

17 (iii) Any gain or loss to the transferor is not recognized for income tax purposes under the

18 provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

19 (3) When the sale or transfer is of a trailer, other than a camping trailer, of the type

20 ordinarily used for residential purposes and commonly known as a house trailer or as a mobile

21 home; or

22 (4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other

23 general law of this state or special act of the general assembly of this state.

24 (e) The term "casual" means a sale made by a person other than a retailer, provided, that in

25 the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed

26 motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the

27 provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in

28 this state of a used motor vehicle less than the product obtained by multiplying the amount of the

29 retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided,

30 that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is

31 based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as

32 shown in the current issue of any nationally recognized, used-vehicle guide for appraisal purposes

33 in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax

34 administrator determines that the retail dollar value as stated in this subsection is inequitable or

1 unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-

2 determine the tax.

3 (f) Every person making more than five (5) retail sales of tangible personal property or

4 prewritten computer software delivered electronically or by load and leave, or vendor-hosted

5 prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3

6 during any twelve-month (12) period, including sales made in the capacity of assignee for the

7 benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions

8 of this chapter.

9 (g)(1) "Casual sale" includes a sale of tangible personal property not held or used by a

10 seller in the course of activities for which the seller is required to hold a seller's permit or permits

11 or would be required to hold a seller's permit or permits if the activities were conducted in this

12 state, provided that the sale is not one of a series of sales sufficient in number, scope, and character

13 (more than five (5) in any twelve-month (12) period) to constitute an activity for which the seller

14 is required to hold a seller's permit or would be required to hold a seller's permit if the activity were

15 conducted in this state.

16 (2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by

17 nonprofit organizations, that are organized for charitable, educational, civic, religious, social,

18 recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6)

19 days duration each calendar year. Each event requires the issuance of a permit by the division of

20 taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a

21 nonprofit organization, the sales are in the regular course of business and are not exempt as casual

22 sales.

23 (h) The use tax imposed under this section for the period commencing July 1, 1990, is at

24 the rate of seven percent (7%). ~~In recognition of the work being performed by the streamlined sales~~

25 ~~and use tax governing board, upon passage of any federal law that authorizes states to require~~

26 ~~remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st)~~

27 ~~state fiscal quarter following the change, the rate imposed under § 44-18-18 shall be reduced from~~

28 ~~seven percent (7.0%) to six and one-half percent (6.5%). The six and one- half percent (6.5%) rate~~

29 ~~shall take effect on the date that the state requires remote sellers to collect and remit sales and use~~

30 ~~taxes.~~

31 44-18-21. Liability for use tax.

32 (a) Every person storing, using, or consuming in this state tangible personal property,

33 including a motor vehicle, boat, airplane, or trailer, purchased from a retailer, and a motor vehicle,

34 boat, airplane, or trailer, purchased from other than a licensed motor vehicle dealer or other than a

1 retailer of boats, airplanes, or trailers respectively; or storing, using or consuming specified

2 prewritten computer software delivered electronically or by load and leave, or vendor-hosted

3 prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 is

4 liable for the use tax. The person's liability is not extinguished until the tax has been paid to this

5 state, except that a receipt from a retailer engaging in business in this state or from a retailer who

6 is authorized by the tax administrator to collect the tax under rules and regulations that he or she

7 may prescribe, given to the purchaser pursuant to the provisions of § 44-18-22, is sufficient to

8 relieve the purchaser from further liability for the tax to which the receipt refers.

9 (b) Each person before obtaining an original or transferral registration for any article or

10 commodity in this state, which article or commodity is required to be licensed or registered in the

11 state, shall furnish satisfactory evidence to the tax administrator that any tax due under this chapter

12 with reference to the article or commodity has been paid, and for the purpose of effecting

13 compliance, the tax administrator, in addition to any other powers granted to him or her, may invoke

14 the provisions of § 31-3-4 in the case of a motor vehicle. The tax administrator, when he or she

15 deems it to be for the convenience of the general public, may authorize any agency of the state

16 concerned with the licensing or registering of these articles or commodities to collect the use tax

17 on any articles or commodities which the purchaser is required by this chapter to pay before

18 receiving an original or transferral registration. The general assembly shall annually appropriate a

19 sum that it deems necessary to carry out the purposes of this section. Notwithstanding the

20 provisions of §§ 44-18-19, 44-18-22, and 44-18-24, the sales or use tax on any motor vehicle and/or

21 recreational vehicle requiring registration by the administrator of the division of motor vehicles

22 shall not be added by the retailer to the sale price or charge but shall be paid directly by the

23 purchaser to the tax administrator, or his or her authorized deputy or agent as provided in this

24 section.

25 (c) In cases involving total loss or destruction of a motor vehicle occurring within one

26 hundred twenty (120) days from the date of purchase and upon which the purchaser has paid the

27 use tax, the amount of the tax constitutes an overpayment. The amount of the overpayment may be

28 credited against the amount of use tax on any subsequent vehicle which the owner acquires to

29 replace the lost or destroyed vehicle or may be refunded, in whole or in part.

30 44-18-22. Collection of use tax by retailer.

31 Every retailer engaging in business in this state and making sales of tangible personal

32 property or prewritten computer software delivered electronically or by load and leave, or vendor-

33 hosted prewritten computer software, or specified digital products, or services as defined in § 44-

34 18-7.3, for storage, use, or other consumption in this state, not exempted under this chapter shall,

1 at the time of making the sales, or if the storage, use, or other consumption of the tangible personal

2 property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

3 prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

4 is not then taxable under this chapter, at the time the storage, use, or other consumption becomes

5 taxable, collect the tax from the purchaser and give to the purchaser a receipt in the manner and

6 form prescribed by the tax administrator.

7 44-18-23. "Engaging in business" defined.

8 As used in §§ 44-18-21 and 44-18-22 the term "engaging in business in this state" means

9 the selling or delivering in this state, or any activity in this state related to the selling or delivering

10 in this state of tangible personal property or prewritten computer software delivered electronically

11 or by load and leave, or vendor-hosted prewritten computer software, or specified digital products,

12 for storage, use, or other consumption in this state; or services as defined in § 44-18-7.3 in this

13 state. This term includes, but is not limited to, the following acts or methods of transacting business:

14 (1) Maintaining, occupying, or using in this state permanently or temporarily, directly or

15 indirectly or through a subsidiary, representative, or agent by whatever name called and whether or

16 not qualified to do business in this state, any office, place of distribution, sales or sample room or

17 place, warehouse or storage place, or other place of business;

18 (2) Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor

19 permanently or temporarily, and whether or not the subsidiary, representative, or agent is qualified

20 to do business in this state, operate in this state for the purpose of selling, delivering, or the taking

21 of orders for any tangible personal property, or prewritten computer software delivered

22 electronically or by load and leave, or vendor-hosted prewritten computer software, or specified

23 digital products, or services as defined in § 44-18-7.3;

24 (3) The regular or systematic solicitation of sales of tangible personal property, or

25 prewritten computer software delivered electronically or by load and leave, or vendor-hosted

26 prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

27 in this state by means of:

28 (i) Advertising in newspapers, magazines, and other periodicals published in this state, sold

29 over the counter in this state or sold by subscription to residents of this state, billboards located in

30 this state, airborne advertising messages produced or transported in the air space above this state,

31 display cards and posters on common carriers or any other means of public conveyance

32 incorporated or operating primarily in this state, brochures, catalogs, circulars, coupons, pamphlets,

33 samples, and similar advertising material mailed to, or distributed within this state to residents of

34 this state;

1 (ii) Telephone;

2 (iii) Computer-assisted shopping networks; and

3 (iv) Television, radio or any other electronic media, which is intended to be broadcast to

4 consumers located in this state.

5 44-18-25. Presumption that sale is for storage, use, or consumption -- Resale

6 certificate.

7 It is presumed that all gross receipts are subject to the sales tax, and that the use of all

8 tangible personal property, or prewritten computer software delivered electronically or by load and

9 leave, or vendor-hosted prewritten computer software, or specified digital products, or services as

10 defined in § 44-18-7.3, are subject to the use tax, and that all tangible personal property, or

11 prewritten computer software delivered electronically or by load and leave, or vendor-hosted

12 prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

13 sold or in processing or intended for delivery or delivered in this state is sold or delivered for

14 storage, use, or other consumption in this state, until the contrary is established to the satisfaction

15 of the tax administrator. The burden of proving the contrary is upon the person who makes the sale

16 and the purchaser, unless the person who makes the sale takes from the purchaser a certificate to

17 the effect that the purchase was for resale. The certificate shall contain any information and be in

18 the form that the tax administrator may require.

19 44-18-30. Gross receipts exempt from sales and use taxes.

20 There are exempted from the taxes imposed by this chapter the following gross receipts:

21 (1) Sales and uses beyond constitutional power of state. From the sale and from the storage,

22 use, or other consumption in this state of tangible personal property the gross receipts from the sale

23 of which, or the storage, use, or other consumption of which, this state is prohibited from taxing

24 under the Constitution of the United States or under the constitution of this state.

25 (2) Newspapers.

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

27 newspaper.

28 (ii) "Newspaper" means an unbound publication printed on newsprint that contains news,

29 editorial comment, opinions, features, advertising matter, and other matters of public interest.

30 (iii) "Newspaper" does not include a magazine, handbill, circular, flyer, sales catalog, or

31 similar item unless the item is printed for, and distributed as, a part of a newspaper.

32 (3) School meals. From the sale and from the storage, use, or other consumption in this

33 state of meals served by public, private, or parochial schools, school districts, colleges, universities,

34 student organizations, and parent-teacher associations to the students or teachers of a school,

1 college, or university whether the meals are served by the educational institutions or by a food

2 service or management entity under contract to the educational institutions.

3 (4) Containers.

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

5 (A) Non-returnable containers, including boxes, paper bags, and wrapping materials that

6 are biodegradable and all bags and wrapping materials utilized in the medical and healing arts,

7 when sold without the contents to persons who place the contents in the container and sell the

8 contents with the container.

9 (B) Containers when sold with the contents if the sale price of the contents is not required

10 to be included in the measure of the taxes imposed by this chapter.

11 (C) Returnable containers when sold with the contents in connection with a retail sale of

12 the contents or when resold for refilling.

13 (D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage

14 producers who place the alcoholic beverages in the containers.

15 (ii) As used in this subdivision, the term "returnable containers" means containers of a kind

16 customarily returned by the buyer of the contents for reuse. All other containers are "non-returnable

17 containers".

18 (5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined

19 in this section, and from the storage, use, and other consumption in this state, or any other state of

20 the United States of America, of tangible personal property by hospitals not operated for a profit;

21 "educational institutions" as defined in subdivision (18) not operated for a profit; churches,

22 orphanages, and other institutions or organizations operated exclusively for religious or charitable

23 purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting

24 leagues and associations and bands for boys and girls under the age of nineteen (19) years; the

25 following vocational student organizations that are state chapters of national vocational student

26 organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of

27 America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers

28 of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of

29 America (VICA); organized nonprofit golden age and senior citizens clubs for men and women;

30 and parent-teacher associations; and from the sale, storage, use, and other consumption in this state,

31 of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation.

32 (ii) In the case of contracts entered into with the federal government, its agencies, or

33 instrumentalities, this state, or any other state of the United States of America, its agencies, any

34 city, town, district, or other political subdivision of the states; hospitals not operated for profit;

1 educational institutions not operated for profit; churches, orphanages, and other institutions or

2 organizations operated exclusively for religious or charitable purposes, the contractor may purchase

3 such materials and supplies (materials and/or supplies are defined as those that are essential to the

4 project) that are to be utilized in the construction of the projects being performed under the contracts

5 without payment of the tax.

6 (iii) The contractor shall not charge any sales or use tax to any exempt agency, institution,

7 or organization but shall in that instance provide his or her suppliers with certificates in the form

8 as determined by the division of taxation showing the reason for exemption and the contractor's

9 records must substantiate the claim for exemption by showing the disposition of all property so

10 purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax

11 on the property used.

12 (6) Gasoline. From the sale and from the storage, use, or other consumption in this state of:

13 (i) gasoline and other products taxed under chapter 36 of title 31 and (ii) fuels used for the

14 propulsion of airplanes.

15 (7) Purchase for manufacturing purposes.

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

17 software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and

18 water, when the property or service is purchased for the purpose of being manufactured into a

19 finished product for resale and becomes an ingredient, component, or integral part of the

20 manufactured, compounded, processed, assembled, or prepared product, or if the property or

21 service is consumed in the process of manufacturing for resale computer software, tangible personal

22 property, electricity, natural gas, artificial gas, steam, refrigeration, or water.

23 (ii) "Consumed" means destroyed, used up, or worn out to the degree or extent that the

24 property cannot be repaired, reconditioned, or rendered fit for further manufacturing use.

25 (iii) "Consumed" includes mere obsolescence.

26 (iv) "Manufacturing" means and includes: manufacturing, compounding, processing,

27 assembling, preparing, or producing.

28 (v) "Process of manufacturing" means and includes all production operations performed in

29 the producing or processing room, shop, or plant, insofar as the operations are a part of and

30 connected with the manufacturing for resale of tangible personal property, electricity, natural gas,

31 artificial gas, steam, refrigeration, or water and all production operations performed insofar as the

32 operations are a part of and connected with the manufacturing for resale of computer software.

33 (vi) "Process of manufacturing" does not mean or include administration operations such

34 as general office operations, accounting, collection, or sales promotion, nor does it mean or include

1 distribution operations that occur subsequent to production operations, such as handling, storing,

2 selling, and transporting the manufactured products, even though the administration and

3 distribution operations are performed by, or in connection with, a manufacturing business.

4 (8) State and political subdivisions. From the sale to, and from the storage, use, or other

5 consumption by, this state, any city, town, district, or other political subdivision of this state. Every

6 redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of

7 the municipality where it is located.

8 (9) Food and food ingredients. From the sale and storage, use, or other consumption in this

9 state of food and food ingredients as defined in § 44-18-7.1(l).

10 For the purposes of this exemption "food and food ingredients" shall not include candy,

11 soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending

12 machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is:

13 (i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311,

14 except sub-sector 3118 (bakeries);

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

16 (iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries,

17 donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and

18 is not sold with utensils provided by the seller, including: plates, knives, forks, spoons,

19 glasses, cups, napkins, or straws.

20 (10) Medicines, drugs, and durable medical equipment. From the sale and from the storage,

21 use, or other consumption in this state, of:

22 (i) "Drugs" as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and

23 insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include

24 over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii).

25 (ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including,

26 but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent

27 chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug

28 delivery pumps that are sold on prescription to individuals to be used by them to dispense or

29 administer prescription drugs, and related ancillary dressings and supplies used to dispense or

30 administer prescription drugs, shall also be exempt from tax.

31 (11) Prosthetic devices and mobility enhancing equipment. From the sale and from the

32 storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t),

33 sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses,

34 and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription;

1 and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches,

2 and canes.

3 (12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the

4 storage, use, or other consumption in this state of coffins, or caskets, ~~and~~ urns, shrouds or and other

5 burial garments that are ordinarily sold by a funeral director as part of the business of funeral

6 directing.

7 (13) Motor vehicles sold to nonresidents.

8 (i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident

9 of this state who does not register the motor vehicle in this state, whether the sale or delivery of the

10 motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle

11 sold to a bona fide nonresident whose state of residence does not allow a like exemption to its

12 nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide

13 nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed

14 in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-

15 20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and

16 collect the tax required under this subdivision and remit the tax to the tax administrator under the

17 provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer

18 is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide

19 nonresident as provided in this section, the dealer in computing the tax takes into consideration the

20 law of the state of the nonresident as it relates to the trade-in of motor vehicles.

21 (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may

22 require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the

23 tax administrator deems reasonably necessary to substantiate the exemption provided in this

24 subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the

25 motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle

26 registration or a valid out-of-state driver's license.

27 (iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of

28 the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or

29 other consumption in this state, and is subject to, and liable for, the use tax imposed under the

30 provisions of § 44-18-20.

31 (14) Sales in public buildings by blind people. From the sale and from the storage, use, or

32 other consumption in all public buildings in this state of all products or wares by any person

1 consumption in this state of tangible personal property or supplies acquired for incorporation into

2 or used and consumed in the operation of a facility, the primary purpose of which is to aid in the

3 control of the pollution or contamination of the waters or air of the state, as defined in chapter 12

4 of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that

5 purpose by the director of environmental management. The director of environmental management

6 may certify to a portion of the tangible personal property or supplies acquired for incorporation

7 into those facilities or used and consumed in the operation of those facilities to the extent that that

8 portion has as its primary purpose the control of the pollution or contamination of the waters or air

9 of this state. As used in this subdivision, "facility" means any land, facility, device, building,

10 machinery, or equipment.

11 (16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping

12 accommodations at camps or retreat houses operated by religious, charitable, educational, or other

13 organizations and associations mentioned in subsection (5), or by privately owned and operated

14 summer camps for children.

15 (17) Certain institutions. From the rental charged for living or sleeping quarters in an

16 institution licensed by the state for the hospitalization, custodial, or nursing care of human beings.

17 (18) Educational institutions. From the rental charged by any educational institution for

18 living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations

19 to any student or teacher necessitated by attendance at an educational institution. "Educational

20 institution" as used in this section means an institution of learning not operated for profit that is

21 empowered to confer diplomas, educational, literary, or academic degrees; that has a regular

22 faculty, curriculum, and organized body of pupils or students in attendance throughout the usual

23 school year; that keeps and furnishes to students and others records required and accepted for

24 entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of

25 which inures to the benefit of any individual.

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

27 (i) From the sale of: (A) Special adaptations; (B) The component parts of the special

28 adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax

29 administrator an affidavit of a licensed physician to the effect that the specially adapted motor

30 vehicle is necessary to transport a family member with a disability or where the vehicle has been

31 specially adapted to meet the specific needs of the person with a disability. This exemption applies

32 to not more than one motor vehicle owned and registered for personal, noncommercial use.

1 controls, steering devices, extensions, relocations, and crossovers of operator controls, power-

2 assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices

3 to auditory signals.

4 (iii) From the sale of: (a) Special adaptations, (b) The component parts of the special

5 adaptations, for a "wheelchair accessible taxicab" as defined in § 39-14-1, and/or a "wheelchair

6 accessible public motor vehicle" as defined in § 39-14.1-1.

7 (iv) For the purpose of this subdivision the exemption for a "specially adapted motor

8 vehicle" means a use tax credit not to exceed the amount of use tax that would otherwise be due on

9 the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special

10 adaptations, including installation.

11 (20) Heating fuels. From the sale and from the storage, use, or other consumption in this

12 state of every type of heating fuel.

13 (21) Electricity and gas. From the sale and from the storage, use, or other consumption in

14 this state of electricity and gas.

15 (22) Manufacturing machinery and equipment.

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

17 molds, machinery, equipment (including replacement parts), and related items to the extent used in

18 an industrial plant in connection with the actual manufacture, conversion, or processing of tangible

19 personal property, or to the extent used in connection with the actual manufacture, conversion, or

20 processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373

21 in the standard industrial classification manual prepared by the Technical Committee on Industrial

22 Classification, Office of Statistical Standards, Executive Office of the President, United States

23 Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment

24 used in the furnishing of power to an industrial manufacturing plant. For the purposes of this

25 subdivision, "industrial plant" means a factory at a fixed location primarily engaged in the

26 manufacture, conversion, or processing of tangible personal property to be sold in the regular

27 course of business;

28 (ii) Machinery and equipment and related items are not deemed to be used in connection

29 with the actual manufacture, conversion, or processing of tangible personal property, or in

30 connection with the actual manufacture, conversion, or processing of computer software as that

31 term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification

32 manual prepared by the Technical Committee on Industrial Classification, Office of Statistical

33 Standards, Executive Office of the President, United States Bureau of the Budget, as revised from

1 (iii) Machinery and equipment and related items used in connection with the actual

2 manufacture, conversion, or processing of any computer software or any tangible personal property

3 that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased

4 from a vendor or machinery and equipment and related items used during any manufacturing,

5 converting, or processing function is exempt under this subdivision even if that operation, function,

6 or purpose is not an integral or essential part of a continuous production flow or manufacturing

7 process;

8 (iv) Where a portion of a group of portable or mobile machinery is used in connection with

9 the actual manufacture, conversion, or processing of computer software or tangible personal

10 property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under

11 this subdivision even though the machinery in that group is used interchangeably and not otherwise

12 identifiable as to use.

13 (23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other

14 consumption in this state of so much of the purchase price paid for a new or used automobile as is

15 allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of

16 the proceeds applicable only to the automobile as are received from the manufacturer of

17 automobiles for the repurchase of the automobile whether the repurchase was voluntary or not

18 towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision,

19 the word "automobile" means a private passenger automobile not used for hire and does not refer

20 to any other type of motor vehicle.

21 (24) Precious metal bullion.

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

23 metal bullion, substantially equivalent to a transaction in securities or commodities.

24 (ii) For purposes of this subdivision, "precious metal bullion" means any elementary

25 precious metal that has been put through a process of smelting or refining, including, but not limited

26 to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value

27 depends upon its content and not upon its form.

28 (iii) The term does not include fabricated precious metal that has been processed or

29 manufactured for some one or more specific and customary industrial, professional, or artistic uses.

30 (25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of

31 fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the

32 repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use

33 of the vessels including provisions, supplies, and material for the maintenance and/or repair of the

34 vessels.

1 (26) Commercial fishing vessels. From the sale and from the storage, use, or other

2 consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and

3 that are used exclusively for "commercial fishing", as defined in this subdivision, and from the

4 repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property

5 purchased for the use of those vessels and other watercraft including provisions, supplies, and

6 material for the maintenance and/or repair of the vessels and other watercraft and the boats nets,

7 cables, tackle, and other fishing equipment appurtenant to or used in connection with the

8 commercial fishing of the vessels and other watercraft. "Commercial fishing" means taking or

9 attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for

10 profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence

11 fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include

12 vessels and other watercraft with a Rhode Island party and charter boat license issued by the

13 department of environmental management pursuant to § 20-2-27.1 that meet the following criteria:

14 (i) The operator must have a current U.S.C.G. license to carry passengers for hire; (ii) U.S.C.G.

15 vessel documentation in the coast wide fishery trade; (iii) U.S.C.G. vessel documentation as to

16 proof of Rhode Island home port status or a Rhode Island boat registration to prove Rhode Island

17 home port status; and (iv) The vessel must be used as a commercial passenger carrying fishing

18 vessel to carry passengers for fishing. The vessel must be able to demonstrate that at least fifty

19 percent (50%) of its annual gross income derives from charters or provides documentation of a

20 minimum of one hundred (100) charter trips annually; and (v) The vessel must have a valid Rhode

21 Island party and charter boat license. The tax administrator shall implement the provisions of this

22 subdivision by promulgating rules and regulations relating thereto.

23 (27) Clothing and footwear. From the sales of articles of clothing, including footwear,

24 intended to be worn or carried on or about the human body for sales prior to October 1, 2012.

25 Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including

26 footwear, intended to be worn or carried on or about the human body up to two hundred and fifty

27 dollars ($250) of the sales price per item. For the purposes of this section, "clothing or footwear"

28 does not include clothing accessories or equipment or special clothing or footwear primarily

29 designed for athletic activity or protective use as these terms are defined in section 44-18-7.1(f). In

30 recognition of the work being performed by the streamlined sales and use tax governing board,

31 upon passage of any federal law that authorizes states to require remote sellers to collect and remit

32 sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The

33 unlimited exemption on sales of clothing and footwear shall take effect on the date that the state

34 requires remote sellers to collect and remit sales and use taxes.

1 (28) Water for residential use. From the sale and from the storage, use, or other

2 consumption in this state of water furnished for domestic use by occupants of residential premises.

3 (29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes

4 to Decisions.] From the sale and from the storage, use, or other consumption in the state of any

5 canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited

6 to, the Old Testament and the New Testament versions.

7 (30) Boats.

8 (i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not

9 register the boat or vessel in this state or document the boat or vessel with the United States

10 government at a home port within the state, whether the sale or delivery of the boat or vessel is

11 made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30)

12 days after delivery by the seller outside the state for use thereafter solely outside the state.

13 (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may

14 require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the

15 tax administrator deems reasonably necessary to substantiate the exemption provided in this

16 subdivision, including the affidavit of the seller that the buyer represented himself or herself to be

17 a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state.

18 (31) Youth activities equipment. From the sale, storage, use, or other consumption in this

19 state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island

20 eleemosynary organizations, for the purposes of youth activities that the organization is formed to

21 sponsor and support; and by accredited elementary and secondary schools for the purposes of the

22 schools or of organized activities of the enrolled students.

23 (32) Farm equipment. From the sale and from the storage or use of machinery and

24 equipment used directly for commercial farming and agricultural production; including, but not

25 limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors,

26 balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment,

27 greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and

28 other farming equipment, including replacement parts appurtenant to or used in connection with

29 commercial farming and tools and supplies used in the repair and maintenance of farming

30 equipment. "Commercial farming" means the keeping or boarding of five (5) or more horses or the

31 production within this state of agricultural products, including, but not limited to, field or orchard

32 crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production

33 provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator,

34 whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July

1 1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I

2 shall be based on proof of annual, gross sales from commercial farming of at least twenty-five

3 hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this

4 subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or

5 greater. Level II shall be based on proof of annual gross sales from commercial farming of at least

6 ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption

7 provided in this subdivision including motor vehicles with an excise tax value of five thousand

8 dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount

9 of annual gross sales from commercial farming shall be required for the prior year; for any renewal

10 of an exemption granted in accordance with this subdivision at either level I or level II, proof of

11 gross annual sales from commercial farming at the requisite amount shall be required for each of

12 the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly

13 indicate the level of the exemption and be valid for four (4) years after the date of issue. This

14 exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for

15 a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after

16 July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for

17 registration displaying farm plates as provided for in § 31-3-31.

18 (33) Compressed air. From the sale and from the storage, use, or other consumption in the

19 state of compressed air.

20 (34) Flags. From the sale and from the storage, consumption, or other use in this state of

21 United States, Rhode Island or POW-MIA flags.

22 (35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor

23 vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or

24 the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service

25 connected or not. The motor vehicle must be purchased by and especially equipped for use by the

26 qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or

27 regulations that the tax administrator may prescribe.

28 (36) Textbooks. From the sale and from the storage, use, or other consumption in this state

29 of textbooks by an "educational institution", as defined in subsection (18) of this section, and any

30 educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor.

31 (37) Tangible personal property and supplies used in on-site hazardous waste recycling,

32 reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible

33 personal property or supplies used or consumed in the operation of equipment, the exclusive

34 function of which is the recycling, reuse, or recovery of materials (other than precious metals, as

1 defined in subdivision (24)(ii) of this section) from the treatment of "hazardous wastes", as defined

2 in § 23-19.1-4, where the "hazardous wastes" are generated in Rhode Island solely by the same

3 taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the

4 taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department

5 of environmental management certifying that the equipment and/or supplies as used or consumed,

6 qualify for the exemption under this subdivision. If any information relating to secret processes or

7 methods of manufacture, production, or treatment is disclosed to the department of environmental

8 management only to procure an order, and is a "trade secret" as defined in § 28-21-10(b), it is not

9 open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of

10 title 28 or chapter 24.4 of title 23.

11 (38) Promotional and product literature of boat manufacturers. From the sale and from the

12 storage, use, or other consumption of promotional and product literature of boat manufacturers

13 shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii)

14 Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to

15 customers at no charge.

16 (39) Food items paid for by food stamps. From the sale and from the storage, use, or other

17 consumption in this state of eligible food items payment for which is properly made to the retailer

18 in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977,

19 7 U.S.C. § 2011 et seq.

20 (40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-

21 12-2(l) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed with

22 the Rhode Island public utilities commission on the number of miles driven or by the number of

23 hours spent on the job.

24 (41) Trade-in value of boats. From the sale and from the storage, use, or other consumption

25 in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-

26 in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only

27 to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards

28 the purchase of a new or used boat by the buyer.

29 (42) Equipment used for research and development. From the sale and from the storage,

30 use, or other consumption of equipment to the extent used for research and development purposes

31 by a qualifying firm. For the purposes of this subsection, "qualifying firm" means a business for

32 which the use of research and development equipment is an integral part of its operation and

33 "equipment" means scientific equipment, computers, software, and related items.

34 (43) Coins. From the sale and from the other consumption in this state of coins having

1 numismatic or investment value.

2 (44) Farm structure construction materials. Lumber, hardware, and other materials used in

3 the new construction of farm structures, including production facilities such as, but not limited to:

4 farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses,

5 fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms,

6 machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos,

7 feed storage sheds, and any other structures used in connection with commercial farming.

8 (45) Telecommunications carrier access service. Carrier access service or

9 telecommunications service when purchased by a telecommunications company from another

10 telecommunications company to facilitate the provision of telecommunications service.

11 (46) Boats or vessels brought into the state exclusively for winter storage, maintenance,

12 repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax

13 imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in

14 any year up to and including the 30th day of April next succeeding with respect to the use of any

15 boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in

16 this state for storage, including dry storage and storage in water by means of apparatus preventing

17 ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or

18 repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel.

19 (47) Jewelry display product. From the sale and from the storage, use, or other consumption

20 in this state of tangible personal property used to display any jewelry product; provided that title to

21 the jewelry display product is transferred by the jewelry manufacturer or seller and that the jewelry

22 display product is shipped out of state for use solely outside the state and is not returned to the

23 jewelry manufacturer or seller.

24 (48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax

25 imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage,

26 use, or other consumption in this state of any new or used boat. The exemption provided for in this

27 subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten

28 percent (10%) surcharge on luxury boats is repealed.

29 (49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding

30 the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of

31 interstate and international, toll-free terminating telecommunication service that is used directly

32 and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided

33 that an eligible company employs on average during the calendar year no less than five hundred

34 (500) "full-time equivalent employees" as that term is defined in § 42-64.5-2. For purposes of this

1 section, an "eligible company" means a "regulated investment company" as that term is defined in

2 the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is

3 provided, directly or indirectly, to or on behalf of a regulated investment company, an employee

4 benefit plan, a retirement plan or a pension plan, or a state-chartered bank.

5 (50) Mobile and manufactured homes generally. From the sale and from the storage, use,

6 or other consumption in this state of mobile and/or manufactured homes as defined and subject to

7 taxation pursuant to the provisions of chapter 44 of title 31.

8 (51) Manufacturing business reconstruction materials.

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

10 hardware, and other building materials used in the reconstruction of a manufacturing business

11 facility that suffers a disaster, as defined in this subdivision, in this state. "Disaster" means any

12 occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of

13 an operating manufacturing business facility within this state. "Disaster" does not include any

14 damage resulting from the willful act of the owner of the manufacturing business facility.

15 (ii) Manufacturing business facility includes, but is not limited to, the structures housing

16 the production and administrative facilities.

17 (iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty

18 percent (60%) provision applies to the damages suffered at that one site.

19 (iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance,

20 this exemption does not apply.

21 (52) Tangible personal property and supplies used in the processing or preparation of floral

22 products and floral arrangements. From the sale, storage, use, or other consumption in this state of

23 tangible personal property or supplies purchased by florists, garden centers, or other like producers

24 or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are

25 ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements

26 or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers,

27 plants, floral products, or natural and artificial floral arrangements, including descriptive labels,

28 stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers,

29 spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers.

30 (53) Horse food products. From the sale and from the storage, use, or other consumption

31 in this state of horse food products purchased by a person engaged in the business of the boarding

32 of horses.

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

34 (i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to

1 a bona fide nonresident of this state who does not register the non-motorized recreational vehicle

2 in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this

3 state or at the place of residence of the nonresident; provided that a non-motorized recreational

4 vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to

5 its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in

6 that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate

7 that would be imposed in his or her state of residence not to exceed the rate that would have been

8 imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized

9 recreational vehicle dealer shall add and collect the tax required under this subdivision and remit

10 the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided,

11 that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and

12 collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide

13 nonresident as provided in this section, the dealer in computing the tax takes into consideration the

14 law of the state of the nonresident as it relates to the trade-in of motor vehicles.

15 (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may

16 require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide

17 nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption

18 provided in this subdivision, including the affidavit of a licensed, non-motorized recreational

19 vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and

20 had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or

21 a valid out-of-state driver's license.

22 (iii) Any nonresident who registers a non-motorized recreational vehicle in this state within

23 ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized

24 recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable

25 for, the use tax imposed under the provisions of § 44-18-20.

26 (iv) "Non-motorized recreational vehicle" means any portable dwelling designed and

27 constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use

28 that is eligible to be registered for highway use, including, but not limited to, "pick-up coaches" or

29 "pick-up campers," "travel trailers," and "tent trailers" as those terms are defined in chapter 1 of

30 title 31.

31 (55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of

32 sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials

33 necessary and attendant to the installation of those systems that are required in buildings and

34 occupancies existing therein in July 2003 in order to comply with any additional requirements for

1 such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003

2 and that are not required by any other provision of law or ordinance or regulation adopted pursuant

3 to that act. The exemption provided in this subdivision shall expire on December 31, 2008.

4 (56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18-

5 18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other consumption

6 in this state of any new or used aircraft or aircraft parts.

7 (57) Renewable energy products. Notwithstanding any other provisions of Rhode Island

8 general laws, the following products shall also be exempt from sales tax: solar photovoltaic

9 modules or panels, or any module or panel that generates electricity from light; solar thermal

10 collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic,

11 sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and

12 water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold

13 by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and

14 manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not

15 to include materials that could be fabricated into such racks; monitoring and control equipment, if

16 specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind

17 energy systems or if required by law or regulation for such systems but not to include pumps, fans

18 or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral

19 part of, another item specified on this list; and solar storage tanks that are part of a solar domestic

20 hot water system or a solar space heating system. If the tank comes with an external heat exchanger

21 it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax.

22 (58) Returned property. The amount charged for property returned by customers upon

23 rescission of the contract of sale when the entire amount exclusive of handling charges paid for the

24 property is refunded in either cash or credit, and where the property is returned within one hundred

25 twenty (120) days from the date of delivery.

26 (59) Dietary supplements. From the sale and from the storage, use, or other consumption

27 of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions.

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

29 (61) Agricultural products for human consumption. From the sale and from the storage,

30 use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute

31 food for human consumption and of livestock of the kind the products of which ordinarily constitute

32 fibers for human use.

33 (62) Diesel emission control technology. From the sale and use of diesel retrofit technology

34 that is required by § 31-47.3-4.

1 (63) Feed for certain animals used in commercial farming. From the sale of feed for animals

2 as described in subsection (61) of this section.

3 (64) Alcoholic beverages. From the sale and storage, use, or other consumption in this state

4 by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and malt

5 beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to the

6 contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum markup.

7 (65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use,

8 or other consumption in this state of seeds and plants used to grow food and food ingredients as

9 defined in § 44-18-7.1(l)(i). "Seeds and plants used to grow food and food ingredients" shall not

10 include marijuana seeds or plants.

11 (66) Feminine hygiene products. From the sale and from the storage, use, or other

12 consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products

13 the principal use of which is feminine hygiene in connection with the menstrual cycle.

14 44-18-36.1. Hotel tax.

15 (a) There is imposed a hotel tax of five percent (5%) upon the total consideration charged

16 for occupancy of any space furnished by any hotel, travel packages, or room reseller or reseller as

17 defined in § 44-18-7.3(b) in this state. A house, condominium, or other resident dwelling shall be

18 exempt from the five percent (5%) hotel tax under this subsection if the house, condominium, or

19 other resident dwelling is rented in its entirety. The hotel tax is in addition to any sales tax imposed.

20 This hotel tax is administered and collected by the division of taxation and unless provided to the

21 contrary in this chapter, all the administration, collection, and other provisions of chapters 18 and

22 19 of this title apply. Nothing in this chapter shall be construed to limit the powers of the convention

23 authority of the city of Providence established pursuant to the provisions of chapter 84 of the public

24 laws of 1980, except that distribution of hotel tax receipts shall be made pursuant to chapter 63.1

25 of title 42 rather than chapter 84 of the public laws of 1980.

26 (b) There is hereby levied and imposed, upon the total consideration charged for occupancy

27 of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed

28 by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and

29 collected in accordance with subsection (a).

30 (c) All sums received by the division of taxation from the local hotel tax, penalties or

31 forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid

32 by the state treasurer to the city or town where the space for occupancy that is furnished by the

33 hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection,

34 and other provisions of chapters 18 and 19 of this title shall apply.

1 (d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport

2 shall have the authority to collect from hotels located in the city of Newport the tax imposed by

3 subsection (a) of this section.

4 (1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax

5 as provided in § 42-63.1-3. No later than the first day of March and the first day of September in

6 each year in which the tax is collected, the city of Newport shall submit to the division of taxation

7 a report of the tax collected and distributed during the six (6) month period ending thirty (30) days

8 prior to the reporting date.

9 (2) The city of Newport shall have the same authority as the division of taxation to recover

10 delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and

11 interest imposed by the city of Newport until collected constitutes a lien on the real property of the

12 taxpayer.

13 ~~In recognition of the work being performed by the Streamlined Sales and Use Tax~~

14 ~~Governing Board, upon any federal law which requires remote sellers to collect and remit taxes,~~

15 ~~effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate~~

16 ~~imposed under § 44-18-36.1(b) shall be one and one-half percent (1.5%).~~

17 SECTION 10. Sections 44-18.2-2 and 44-18.2-3 of the General Laws in Chapter 44-18.2

18 entitled "Sales and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act"

19 are hereby amended to read as follows:

20 44-18.2-2. Definitions.

21 For the purposes of this chapter:

22 (1) "Division of taxation" means the Rhode Island department of revenue, division of

23 taxation. The division may also be referred to in this chapter as the "division of taxation", "tax

24 division", or "division."

25 (2) "In-state customer" means a person or persons who makes a purchase of tangible

26 personal property, prewritten computer software delivered electronically or by load and leave as

27 defined in § 44-18-7.1(g)(v), vendor-hosted prewritten computer software, specified digital

28 products, and/or taxable services as defined under § 44-18-1 et seq. for use, storage, and/or other

29 consumption in this state.

30 (3) "In-state software" means software used by in-state customers on their computers,

31 smartphones, and other electronic and/or communication devices, including information or

32 software such as cached files, cached software, or "cookies", or other data tracking tools, that are

33 stored on property in this state or distributed within this state, for the purpose of purchasing tangible

34 personal property, prewritten computer software delivered electronically or by load and leave,

1 vendor-hosted prewritten computer software, specified digital products, and/or taxable services.

2 (4) "Marketplace" means a physical or electronic place including, but not limited to, a store,

3 booth, Internet website, catalog, television or radio broadcast, or a dedicated sales software

4 application where tangible personal property, prewritten computer software delivered

5 electronically or by load and leave, vendor-hosted prewritten computer software, specified digital

6 products, and/or taxable services is/are sold or offered for sale for delivery in this state regardless

7 of whether the tangible personal property, prewritten computer software delivered electronically or

8 by load and leave, or vendor-hosted prewritten computer software, or specified digital products

9 have a physical presence in the state.

10 (5) "Marketplace facilitator" means any person or persons that contracts or otherwise

11 agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as

12 fees from the transaction, the sale of the marketplace seller's products through a physical or

13 electronic marketplace operated by the person or persons, and engages:

14 (a) Directly or indirectly, through one or more affiliated persons in any of the following:

15 (i) Transmitting or otherwise communicating the offer or acceptance between the buyer

16 and seller;

17 (ii) Owning or operating the infrastructure, electronic or physical, or technology that brings

18 buyers and sellers together;

19 (iii) Providing a virtual currency that buyers are allowed or required to use to purchase

20 products from the seller; or

21 (iv) Software development or research and development activities related to any of the

22 activities described in (b) of this subsection (5), if such activities are directly related to a physical

23 or electronic marketplace operated by the person or an affiliated person; and

24 (b) In any of the following activities with respect to the seller's products:

25 (i) Payment processing services;

26 (ii) Fulfillment or storage services;

27 (iii) Listing products for sale;

28 (iv) Setting prices;

29 (v) Branding sales as those of the marketplace facilitator;

30 (vi) Order taking;

31 (vii) Advertising or promotion; or

32 (viii) Providing customer service or accepting or assisting with returns or exchanges.

33 (6) "Marketplace seller" means a person, not a related party to a marketplace facilitator,

34 who has an agreement with a marketplace facilitator and makes retail sales of tangible personal

1 property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

2 prewritten computer software, specified digital products, and/or taxable services through a

3 marketplace owned, operated, or controlled by a marketplace facilitator, whether or not such person

4 is required to register to collect and remit sales tax.

5 (7) "Non-collecting retailer" means any person or persons who meets at least one of the

6 following criteria:

7 (A) Uses in-state software to make sales at retail of tangible personal property, prewritten

8 computer software delivered electronically or by load and leave, and/or taxable services; or

9 (B) Sells, leases, or delivers in this state, or participates in any activity in this state in

10 connection with the selling, leasing, or delivering in this state, of tangible personal property,

11 prewritten computer software delivered electronically or by load and leave, and/or taxable services

12 for use, storage, distribution, or consumption within this state. This includes, but shall not be limited

13 to, any of the following acts or methods of transacting business:

14 (i) Engaging in, either directly or indirectly through a referrer, retail sale facilitator, or other

15 third party, direct response marketing targeted at in-state customers. For purposes of this

16 subsection, direct response marketing includes, but is not limited to, sending, transmitting, or

17 broadcasting via flyers, newsletters, telephone calls, targeted electronic mail, text messages, social

18 media messages, targeted mailings; collecting, analyzing and utilizing individual data on in-state

19 customers; using information or software, including cached files, cached software, or "cookies", or

20 other data tracking tools, that are stored on property in or distributed within this state; or taking any

21 other action(s) that use persons, tangible property, intangible property, digital files or information,

22 or software in this state in an effort to enhance the probability that the person's contacts with a

23 potential in-state customer will result in a sale to that in-state customer;

24 (ii) Entering into one or more agreements under which a person or persons who has

25 physical presence in this state refers, either directly or indirectly, potential in-state customers of

26 tangible personal property, prewritten computer software delivered electronically or by load and

27 leave, and/or taxable services to the non-collecting retailer for a fee, commission, or other

28 consideration whether by an internet-based link or an internet website, or otherwise. An agreement

29 under which a non-collecting retailer purchases advertisements from a person or persons in this

30 state to be delivered in this state on television, radio, in print, on the internet or by any other medium

31 in this state, shall not be considered an agreement under this subsection (ii), unless the

32 advertisement revenue or a portion thereof paid to the person or persons in this state consists of a

33 fee, commission, or other consideration that is based in whole or in part upon sales of tangible

34 personal property, prewritten computer software delivered electronically or by load and leave,

1 and/or taxable services; or

2 (iii) Using a retail sale facilitator to sell, lease, or deliver in this state, or participate in any

3 activity in this state in connection with the selling, leasing, or delivering in this state, of tangible

4 personal property, prewritten computer software delivered electronically or by load and leave,

5 and/or taxable services for use, storage, or consumption in this state.

6 (C) Uses a sales process that includes listing, branding, or selling tangible personal

7 property, prewritten computer software delivered electronically or by load and leave, and/or taxable

8 services for sale, soliciting, processing orders, fulfilling orders, providing customer service and/or

9 accepting or assisting with returns or exchanges occurring in this state, regardless of whether that

10 part of the process has been subcontracted to an affiliate or third party. The sales process for which

11 the in-state customer is charged not more than the basic charge for shipping and handling as used

12 in this subsection shall not include shipping via a common carrier or the United States mail;

13 (D) Offers its tangible personal property, prewritten computer software delivered

14 electronically or by load and leave, and/or taxable services for sale through one or more retail sale

15 facilitators that has physical presence in this state;

16 (E) Is related to a person that has physical presence in this state, and such related person

17 with a physical presence in this state:

18 (i) Sells tangible personal property, prewritten computer software delivered electronically

19 or by load and leave, and/or taxable services that are the same or substantially similar to that sold

20 by a non-collecting retailer under a business name that is the same or substantially similar to that

21 of the non-collecting retailer;

22 (ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or other

23 similar place of business in this state to facilitate the delivery of tangible personal property,

24 prewritten computer software delivered electronically or by load and leave, and/or taxable services

25 sold by the non-collecting retailer;

26 (iii) Uses, with consent or knowledge of the non-collecting retailer, trademarks, service

27 marks, or trade names in this state that are the same or substantially similar to those used by the

28 non-collecting retailer;

29 (iv) Delivers or has delivered (except for delivery by common carrier or United States mail

30 for which the in-state customer is charged not more than the basic charge for shipping and

31 handling), installs, or assembles tangible personal property in this state, or performs maintenance

32 or repair services on tangible personal property in this state, which tangible personal property is

33 sold to in-state customers by the non-collecting retailer;

1 retailer but delivered in this state by allowing an in-state customer to pick up the tangible personal

2 property at an office distribution facility, salesroom, warehouse, storage place, or other similar

3 place of business maintained in this state; or

4 (vi) Shares management, business systems, business practices, computer resources,

5 communication systems, payroll, personnel, or other such business resources and activities with

6 the non-collecting retailer, and/or engages in intercompany transactions with the non-collecting

7 retailer, either or both of which relate to the activities that establish or maintain the non-collecting

8 retailer's market in this state.

9 (F) Any person or persons who meets at least one of the criteria in subsections (7)(A) --

10 (7)(E) above shall be presumed to be a non-collecting retailer.

11 (G) The term "non-collecting retailer" will no longer apply to any entity that meets the

12 definition of this subsection effective ninety (90) days after the enactment of this amended chapter,

13 at which time such entity shall be classified as a "remote seller" as referenced in R.I. Gen. Laws §

14 44-18-15.2.

15 (8) "Person" means person as defined in § 44-18-6.

16 (9) "Referrer" means every person who:

17 (A) Contracts or otherwise agrees with a retailer to list and/or advertise for sale in this state

18 tangible personal property, prewritten computer software delivered electronically or by load and

19 leave, vendor-hosted prewritten computer software, and/or taxable services in any forum,

20 including, but not limited to, a catalog or internet website;

21 (B) Receives a fee, commission, and/or other consideration from a retailer for the listing

22 and/or advertisement;

23 (C) Transfers, via in-state software, internet link, or otherwise, an in-state customer to the

24 retailer or the retailer's employee, affiliate, or website to complete a purchase; and

25 (D) Does not collect payments from the in-state customer for the transaction.

26 (E) A person or persons who engages in the activity set forth in all of the activities set forth

27 in subsections (9)(A) -- (9)(D) above shall be presumed to be a referrer.

28 (10) "Related" means:

29 (A) Having a relationship with the non-collecting retailer within the meaning of the internal

30 revenue code of 1986 as amended; or

31 (B) Having one or more ownership relationships and a purpose of having the ownership

32 relationship is to avoid the application of this chapter.

33 (11) A "retail sale" or "sale at retail" means any retail sale or sale at retail as defined in §

1 (12) "Retail sale facilitator" means any person or persons that facilitates a sale by a retailer

2 by engaging in the following types of activities:

3 (A) Using in-state software to make sales at retail of tangible personal property, prewritten

4 computer software delivered electronically or by load and leave, and/or taxable services; or

5 (B) Contracting or otherwise agreeing with a retailer to list and/or advertise for sale

6 tangible personal property, prewritten computer software delivered electronically or by load and

7 leave, and/or taxable services in any forum, including, but not limited to, a catalog or internet

8 website; and

9 (C) Either directly or indirectly through agreements or arrangements with third parties,

10 collecting payments from the in-state customer and transmitting those payments to a retailer. A

11 person or persons may be a retail sale facilitator regardless of whether they deduct any fees from

12 the transaction. The division may define in regulation circumstances under which a retail sale

13 facilitator shall be deemed to facilitate a retail sale.

14 (D) A person or persons who engages in the type of activity set forth in subsection (12) (A)

15 above or both of the types of activities set forth in subsections (12) (B) and (12) (C) above shall be

16 presumed to be a retail sale facilitator.

17 (E) The term "retail sale facilitator" will no longer apply to any entity that meets the

18 definition of this subsection effective ninety (90) days after the enactment of this amended chapter,

19 at which time such entity shall be classified as a "marketplace facilitator" as referenced above in

20 R.I. Gen. Laws § 44-18.2-2(5).

21 (13) A "retailer" means retailer as defined in § 44-18-15.

22 (14) Specified digital products refers to the same term as defined in § 44-18-7.1(x) effective

23 July 1, 2019.

24 ~~(14)~~(15) "State" means the State of Rhode Island and Providence Plantations.

25 ~~(15)~~(16) "Streamlined agreement" means the Streamlined Sales and Use Tax Agreement

26 as referenced in § 44-18.1-1 et seq.

27 ~~(16)~~(17) "Vendor-hosted prewritten computer software" refers to the same term as defined

28 in R.I. Gen. Laws § 44-18-7.1(g)(vii) effective October 1, 2018.

29 44-18.2-3. Requirements for non-collecting retailers, referrers, and retail sale

30 facilitators.

31 (A) Except as otherwise provided below in § 44-18.2-4, beginning on the later of July 15,

32 2017, or two (2) weeks after the enactment of this chapter, and for each tax year thereafter prior to

33 ninety (90) days after the effective date of the amendment of this chapter, any non-collecting

34 retailer, referrer, or retail sale facilitator, as defined in this chapter, that in the immediately

1 preceding calendar year either:

2 (i) Has gross revenue from the sale of tangible personal property, prewritten computer

3 software delivered electronically or by load and leave, and/or has taxable services delivered into

4 this state equal to or exceeding one hundred thousand dollars ($100,000); or

5 (ii) Has sold tangible personal property, prewritten computer software delivered

6 electronically or by load and leave, and/or taxable services for delivery into this state in two

7 hundred (200) or more separate transactions shall comply with the requirements in subsections (F),

8 (G), and (H) as applicable.

9 (B) A non-collecting retailer, as defined in this chapter, shall comply with subsection (F)

10 below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.

11 (C) A referrer, as defined in this chapter, shall comply with subsection (G) below if it meets

12 the criteria of either subsection (A)(i) or (A)(ii) above.

13 (D) A retail sale facilitator, as defined in this chapter, shall comply with subsection (H)

14 below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.

15 (E) Any noncollecting retailer, retail sale facilitator and/or referrer that is collecting and

16 remitting sales tax into this state prior to the enactment of this amended chapter, date to be inserted

17 after enactment, shall be deemed a remote seller and/or marketplace facilitator and/or referrer and

18 shall continue to collect and remit sales tax.

19 Beginning on ninety (90) days after the enactment of this amended chapter, date to be

20 inserted after enactment, any remote seller, marketplace seller, marketplace facilitator, and/or

21 referrer, as defined in this chapter, who is not collecting and remitting sales tax shall comply with

22 the requirements in subsection (I) if that remote seller, marketplace seller, marketplace facilitator,

23 and/or referrer, as defined in this chapter: (i) has not been collecting or remitting sales tax in this

24 state and, in the immediately preceding calendar year either:

25 (i) Has gross revenue from the sale of tangible personal property, prewritten computer

26 software delivered electronically or by load and leave, vendor-hosted prewritten computer

27 software, specified digital products, and/or has taxable services delivered into this state equal to or

28 exceeding one hundred thousand dollars ($100,000); or

29 (ii) Has sold tangible personal property, prewritten computer software delivered

30 electronically or by load and leave, vendor-hosted prewritten computer software, specified digital

31 products, and/or taxable services for delivery into this state in two hundred (200) or more separate

32 transactions.

1 state or:

2 (1) Post a conspicuous notice on its website that informs in-state customers that sales or

3 use tax is due on certain purchases made from the non-collecting retailer and that this state requires

4 the in-state customer to file a sales or use tax return;

5 (2) At the time of purchase, notify in-state customers that sales or use tax is due on taxable

6 purchases made from the non-collecting retailer and that the state of Rhode Island requires the in-

7 state customer to file a sales or use tax return;

8 (3) Within forty-eight (48) hours of the time of purchase, notify in-state customers in

9 writing that sales or use tax is due on taxable purchases made from the non-collecting retailer and

10 that this state requires the in-state customer to file a sales or use tax return reflecting said purchase;

11 (4) On or before January 31 of each year, including January 31, 2018, for purchases made

12 in calendar year 2017, send a written notice to all in-state customers who have cumulative annual

13 taxable purchases from the non-collecting retailer totaling one hundred dollars ($100) or more for

14 the prior calendar year. The notification shall show the name of the non-collecting retailer, the total

15 amount paid by the in-state customer to the non-collecting retailer in the previous calendar year,

16 and, if available, the dates of purchases, the dollar amount of each purchase, and the category or

17 type of the purchase, including, whether the purchase is exempt or not exempt from taxation in

18 Rhode Island. The notification shall include such other information as the division may require by

19 rule and regulation. The notification shall state that the state of Rhode Island requires a sales or use

20 tax return to be filed and sales or use tax to be paid on certain categories or types of purchases made

21 by the in-state customer from the non-collecting retailer. The notification shall be sent separately

22 to all in-state customers by first-class mail and shall not be included with any other shipments or

23 mailings. The notification shall include the words "Important Tax Document Enclosed" on the

24 exterior of the mailing; and

25 (5) Beginning on February 15, 2018, and not later than each February 15 thereafter, a non-

26 collecting retailer that has not registered in this state for a permit to make sales at retail and collect

27 and remit sales and use tax on all taxable sales into the state for any portion of the prior calendar

28 year, shall file with the division on such form and/or in such format as the division prescribes an

29 attestation that the non-collecting retailer has complied with the requirements of subsections (F)

30 (1) -- (F) (4) herein.

31 (G) Referrer. At such time during any calendar year, or any portion thereof, that a referrer

32 receives more than ten thousand dollars ($10,000) from fees, commissions, and/or other

1 load and leave, and/or taxable services, said referrer shall within thirty (30) days provide written

2 notice to all such retailers that the retailers' sales may be subject to this state's sales and use tax.

3 (H) Retail sale facilitator. Beginning January 15, 2018, and each year thereafter, a retail

4 sale facilitator shall provide the division of taxation with:

5 (i) A list of names and addresses of the retailers for whom during the prior calendar year

6 the retail sale facilitator collected Rhode Island sales and use tax; and

7 (ii) A list of names and addresses of the retailers who during the prior calendar year used

8 the retail sale facilitator to serve in-state customers but for whom the retail sale facilitator did not

9 collect Rhode Island sales and use tax.

10 (I) Remote sellers, referrers, and marketplace facilitators. A remote seller, referrer, and

11 marketplace facilitator shall register in this state for a permit to make sales at retail and collect and

12 remit sales and use tax on all taxable sales into the state.

13 (i) A marketplace facilitator shall collect sales and use tax on all sales made through the

14 marketplace to purchasers in this state whether or not the marketplace seller (1) has or is required

15 to have a permit to make sales at retail or (2) would have been required to collect and remit sales

16 and use tax had the sale not been made through the marketplace ~~provider~~ facilitator.

17 (ii) A marketplace facilitator shall certify to its marketplace sellers that it will collect and

18 remit sales and use tax on sales of taxable items made through the marketplace. A marketplace

19 seller that accepts a marketplace ~~provider's~~ facilitator's collection certificate in good faith may

20 exclude sales made through the marketplace from the marketplace seller's returns under Chapters

21 18 and 19 of Title 44 of the Rhode Island General Laws.

22 (iii) A marketplace facilitator with respect to a sale of tangible personal property,

23 prewritten computer software delivered electronically by load and leave, vendor-hosted prewritten

24 software, and/or taxable services it facilitates:

25 ~~(A)~~ (a) shall have all the obligations and rights of a retailer under Chapters 18 and 19 of

26 Title 44 of the Rhode Island General Laws and under any regulations adopted pursuant thereto,

27 including, but not limited to, the duty to obtain a certificate of authority, to collect tax, file returns,

28 remit tax, and the right to accept a certificate or other documentation from a customer substantiating

29 an exemption or exclusion from tax, the right to receive a refund or credit allowed by law; and ~~(B)~~

30 (b) shall keep such records and information and cooperate with the tax administrator to ensure the

31 proper collection and remittance of tax imposed, collected, or required to be collected under

32 Chapters 18 and 19 of Title 44 of the Rhode Island General Laws.

1 19 of Title 44 of the Rhode Island General Laws. Where the tax administrator audits the

2 marketplace facilitator, the tax administrator is prohibited from auditing the marketplace seller for

3 the same retail sales unless the marketplace facilitator seeks relief under ~~this subsection (iv)~~

4 subsection (v).

5 (v) If the marketplace facilitator demonstrates to the tax administrator's satisfaction that the

6 marketplace facilitator has made a reasonable effort to obtain accurate information from the

7 marketplace seller about a retail sale and that the failure to collect and pay the correct amount of

8 tax imposed under Chapters 18 and 19 of Title 44 of the Rhode Island General Laws was due to

9 incorrect information provided to the marketplace facilitator by the marketplace seller, then the

10 marketplace facilitator shall be relieved of liability of the tax for that retail sale. This subsection (v)

11 does not apply with regard to a retail sale for which the marketplace facilitator is the seller or if the

12 marketplace facilitator and seller are affiliates. Where the marketplace facilitator is relieved under

13 this subsection (v), the seller is liable for the tax imposed under Chapters 18 and 19 of Title 44 of

14 the Rhode Island General Laws.

15 (vi) A class action may not be brought against a marketplace facilitator on behalf of

16 purchasers arising from or in any way related to an overpayment of sales or use tax collected by

17 the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim.

18 Nothing in this subsection (vi) shall affect a purchaser's right to seek a refund as otherwise allowed

19 by law.

20 (J) Any person or entity that engages in any activity or activities of a non-collecting retailer,

21 referrer, and/or retail sale facilitator as defined herein shall be presumed to be a non-collecting

22 retailer, referrer, and/or retail sale facilitator as applicable even if referred to by another name or

23 designation. Said person or entity shall be subject to the terms and conditions set forth in this

24 chapter.

25 SECTION 11. Section 44-19-7 of the General Laws in Chapter 44-19 entitled "Sales and

26 Use Taxes - Enforcement and Collection" is hereby amended to read as follows:

27 44-19-7. Registration of retailers.

28 Every retailer selling tangible personal property or prewritten computer software delivered

29 electronically or by load and leave or vendor-hosted prewritten computer software or specified

30 digital products for storage, use, or other consumption in this state, as well as services as defined

31 in § 44-18-7.3, in this state, or renting living quarters in any hotel as defined in § 42-63.1-2, rooming

32 house, or tourist camp in this state must register with the tax administrator and give the name and

33 address of all agents operating in this state, the location of all distribution or sales houses or offices,

1 in this state, and other information that the tax administrator may require.

2 SECTION 12. Sections 44-30-59, 44-30-71.2, 44-30-71.4 and 44-30-84 of the General

3 Laws in Chapter 44-30 entitled "Personal Income Tax" are hereby amended to read as follows:

4 44-30-59. Report of change in federal taxable income.

5 (a) Subject to regulations of the tax administrator, if the amount of a taxpayer's federal

6 taxable income reported on his or her federal income tax return for any taxable year beginning on

7 or after January 1, 1971, is changed or corrected by the United States Internal Revenue Service or

8 other competent authority, or as the result of a renegotiation of a contract or subcontract with the

9 United States, the taxpayer shall report the change or correction in federal taxable income within

10 ninety (90) days after the final determination of the change, correction, or renegotiation, or as

11 otherwise required by the tax administrator, and shall concede the accuracy of the determination or

12 state wherein it is erroneous. Any taxpayer filing an amended federal income tax return shall also

13 file within ninety (90) days thereafter an amended Rhode Island personal income tax return and

14 shall give any information that the tax administrator may require.

15 (b) In the case of a partnership level audit pursuant to § 44-11-2.2(e)(1), partners shall,

16 within one hundred and eighty days (180) days after receipt of notification of the final federal

17 adjustments arising from a partnership level audit or an administrative adjustment, make the

18 supplemental return and make payments as required by this subsection (b).

19 44-30-71.2. ~~Withholding of tax from lottery and pari-mutuel betting winnings~~

20 Withholding of tax from lottery, pari-mutuel betting, video lottery terminal games and casino

21 gaming winnings.

22 (a) Consistent with federal rules and regulations and procedures related to W-2G

23 withholdings, the ~~The~~ director of lotteries shall:

24 (1) Deduct ~~deduct~~ and withhold from the prize money, of any person winning a prize from

25 the state lottery; and

26 (2) Require the deduction and withholding from winnings from video lottery terminal

27 games and casino gaming as defined in § 42-61.2-1 a tax computed in such a manner as to result,

28 so far as practicable, in an amount substantially equivalent to the tax reasonably estimated to be

29 due resulting from the inclusion in the individual's Rhode Island income of his or her prize money

30 received during the calendar year. The method of determining the amount to be withheld shall be

31 prescribed by regulations of the tax administrator, which regulations and amounts shall be based

32 upon the federal rules, regulations and procedures.

33 (b) Every licensee conducting or operating events upon which pari-mutuel betting is

34 allowed shall deduct and withhold from the winnings of any person a tax computed in such manner

1 as to result, so far as practicable, in an amount substantially equivalent to the tax reasonably

2 estimated to be due resulting from the inclusion in the individual's Rhode Island income of his or

3 her winnings received during the calendar year. The method of determining the amount to be

4 withheld shall be prescribed by regulations of the tax administrator, which regulations and the

5 amounts shall be based upon the federal rules, regulations and procedures.

6 44-30-71.4. Employee leasing companies -- Payroll companies.

7 (a) Employee leasing company certification.

8 (1) Every "employee leasing company", defined in this section as any individual, firm,

9 partnership or corporation engaged in providing workers to employers or firms under a contract or

10 leasing arrangement, shall, as a condition of doing business in this state, be certified by the division

11 of taxation each year, that the company has complied with the withholding provisions of chapter

12 30 of this title.

13 (2) Employee leasing companies must apply to the division of taxation during the month

14 of July of each year on forms prescribed by the tax administrator for a certificate executed by the

15 tax administrator certifying that all taxes withheld from employees, or subject to withholding from

16 employees have been remitted to the division of taxation including the withholding provisions of

17 chapter 30 of this title and the contribution, interest, and penalty provisions pursuant to the

18 Employment Security Act, chapters 42 -- 44 of title 28, and the Temporary Disability Insurance

19 Act, chapters 39 -- 41 of title 28 have been remitted to the department of labor and training. No

20 certificate shall be issued if taxes subject to withholding or contributions have not been withheld

21 and remitted.

22 (3) No employee leasing firm may conduct business in this state without the certification

23 prescribed in subdivision (2) of this subsection. Any employer or firm that engages any employee

24 leasing company that is not certified by the tax administrator shall be jointly and severally liable

25 for the taxes required to be withheld and remitted under § 44-30-71 or chapters 39 -- 44 of title 28.

26 (b) Payroll companies -- Joint liability. Every payroll company, herein defined as any

27 individual, firm, partnership or corporation engaging in providing payroll services to employers

28 which services include the withholding of tax including the withholding provisions of chapter 30

29 of this title and the contribution, interest, and penalty provisions pursuant to the Employment

30 Security Act, chapters 42 -- 44 of title 28, and the Temporary Disability Insurance Act, chapters 39

31 -- 41 of title 28 from employee wages and which receives moneys from a customer or employer for

32 Rhode Island withholding from the wages of the customer's employees, and who fails to remit said

33 withholding to the division of taxation or contributions to the department of labor and training on

34 a timely basis, shall be jointly and severally liable with the customer or employer for said

1 withholdings.

2 44-30-84. Interest on underpayment.

3 (a) General.

4 (1) If any amount of Rhode Island personal income tax, including any amount of the tax

5 withheld by an employer, is not paid on or before the due date, interest on the amount at the annual

6 rate provided by § 44-1-7 shall be paid for the period from the due date to the date paid, whether

7 or not any extension of time for payment was granted. The interest shall not be paid if its amount

8 is less than two dollars ($2.00).

9 (2) Interest prescribed under this section may be waived by the tax administrator in the

10 event the underpayment results from the state's closing of banks and credit unions in which the

11 taxpayer's monies are deposited and the taxpayer has no other funds from which to pay his or her

12 tax.

13 (b) Estimated tax. If an individual fails to file a declaration of estimated Rhode Island

14 personal income tax as required by § 44-30-55, or to pay any installment of the tax as required by

15 § 44-30-56, the individual shall pay interest at the annual rate provided by § 44-1-7 for the period

16 the failure continues, until the fifteenth day of the fourth month following the close of the taxable

17 year. The interest in respect of any unpaid installment shall be computed on the amount by which

18 his or her actual payments and credits in respect of the tax are less than eighty percent (80%) of the

19 installment at the time it is due. Notwithstanding the foregoing, no interest shall be payable if one

20 of the exceptions specified in 26 U.S.C. § 6654(d)(1) or (2) would apply if the exceptions referred

21 to the corresponding Rhode Island tax amounts and returns.

22 (c) Payment prior to notice of deficiency. If, prior to the mailing to the taxpayer of notice

23 of deficiency under § 44-30-81, the tax administrator mails to the taxpayer a notice of proposed

24 increase of tax and within thirty (30) days after the date of the notice of the proposed increase the

25 taxpayer pays all amounts shown on the notice to be due to the tax administrator, no interest under

26 this section on the amount so paid shall be imposed for the period after the date of the notice of

27 proposed increase.

28 (d) Payment within ten (10) days after notice and demand. If notice and demand is made

29 for payment of any amount, and the amount is paid within ten (10) days after the effective date of

30 the notice and demand under § 44-30-81(b), interest under this section on the amount so paid shall

31 not be imposed for the period after the date of the notice and demand.

32 (e) Suspension of interest on deficiencies. If a waiver of restrictions on assessment of a

33 deficiency has been filed by the taxpayer, and if notice and demand by the tax administrator for

34 payment of the deficiency is not made within thirty (30) days after the filing of the waiver, interest

1 shall thereupon cease to accrue until the date of notice and demand.

2 (f) Interest treated as tax. Interest under this section shall be paid upon notice and demand

3 and shall be assessed, collected, and paid in the same manner as the tax, except that interest under

4 subsection (b) of this section may be assessed without regard to the restrictions of § 44-30-81.

5 (g) No interest on interest. No interest shall be imposed on any interest provided in this

6 section.

7 (h) Interest on civil penalties and additions to tax. Interest shall be imposed under

8 subsection (a) of this section in respect of any assessable civil penalty or addition to tax only if the

9 assessable penalty or addition to tax is not paid within fifteen (15) days from the effective date of

10 notice and demand therefor under § 44-30-81(b), and in that case interest shall be imposed only for

11 the period from the effective date of the notice and demand to the date of payment.

12 (i) Tax reduced by carryback. If the amount of tax for any taxable year is reduced by reason

13 of a carryback of a net operating loss, the reduction in tax shall not affect the computation of interest

14 under this section for the period ending with the last day of the taxable year in which the net

15 operating loss arises.

16 (j) Limitation on assessment or collection. Interest prescribed under this section may be

17 assessed or collected at any time during the period within which the tax or other amount to which

18 the interest relates may be assessed or collected.

19 (k) Interest on erroneous refund. Any portion of tax or other amount which has been

20 erroneously refunded, and which is recoverable by the tax administrator, shall bear interest at the

21 annual rate provided by § 44-1-7 from the date of the payment of the refund.

22 (l) Timely Deposits for Withheld Tax. If an entity fails to remit withheld tax at the times

23 prescribed by the tax administrator, there may be interest assessed at the annual rate provided by §

24 44-1-7 for the period the failure continues, until the thirty-first day of the first month following the

25 close of the taxable year. The interest with respect to any failed remittances shall be computed as

26 prescribed by the tax administrator.

27 SECTION 13. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby

28 amended by adding thereto the following section:

29 44-30-85.1. Electronic filing of withholding tax returns and penalties.

30 (1) Beginning on January 1, 2020, every employer required to deduct and withhold tax

31 under this chapter, who had an average tax amount of two hundred dollars ($200) or more per

32 month for the previous calendar year, shall file a return and remit said payments by electronic funds

33 transfer or other electronic means as defined by the tax administrator. The tax administrator shall

34 adopt any rules necessary to administer a program of electronic funds transfer or other electronic

1 filing system.

2 (2) Beginning on January 1, 2020, if any person fails to pay said taxes by electronic funds

3 transfer or other electronic means defined by the tax administrator as required hereunder, there shall

4 be added to the amount of tax the lesser of five percent (5%) of the withheld tax payment amount

5 that was not filed electronically or five hundred dollars ($500), whichever is less, unless there was

6 reasonable cause for the failure and such failure was not due to negligence or willful neglect.

7 (3) Notwithstanding the provisions of § 44-30-85.1(2), beginning on January 1, 2020, if

8 any person fails to file a return by electronic means defined by the tax administrator as required

9 hereunder, there shall be added to the amount of tax equal to fifty dollars ($50), unless there was

10 reasonable cause for the failure and such failure was not due to negligence or willful neglect.

11 SECTION 14. Section 44-33.6-7 of the General Laws in Chapter 44-33.6 entitled "Historic

12 Preservation Tax Credits 2013" is hereby amended to read as follows:

13 44-33.6-7. Timing and reapplication.

14 (a) Taxpayers shall have twelve (12) months from the approval of Part 2 application to

15 commence substantial construction activities related to the subject substantial rehabilitation. Upon

16 commencing substantial construction activities, the taxpayer shall submit an affidavit of

17 commencement of substantial construction to the commission, together with evidence of such

18 requirements having been satisfied. Furthermore, after commencement of substantial construction

19 activities, no project shall remain idle prior to completion for a period of time exceeding six (6)

20 months. In the event that a taxpayer does not commence substantial construction activities within

21 twelve (12) months from the approval of Part 2 application, or in the event that a project remains

22 idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall

23 forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed

24 null and void, and shall terminate without need for further action or documentation. Upon any such

25 forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter, however,

26 notwithstanding anything contained herein to the contrary, one hundred percent (100%) of the fees

27 required shall be paid upon reapplication and such fees shall be non-refundable. Additionally, any

28 taxpayer reapplying for tax credits pursuant to this § 44-33.6-7 shall be required to submit evidence

29 with its application establishing the reason for delay in commencement or the project sitting idle,

30 as the case may be, and provide evidence, reasonably satisfactory to the commission, that such

31 condition or event causing same has been resolved. All taxpayers shall submit a reasonably detailed

32 project timeline to the commission together with the Part 2 application. The provisions of this

33 section shall be further detailed and incorporated into the form of contract for tax credits used in

34 connection with this chapter.

1 (b) Notwithstanding any other provision of law to the contrary, projects that have been

2 approved for historic preservation tax credits and have been funded through the cultural arts and

3 the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and whose tax credits

4 expire on December 31, 2019, shall remain in full force and effect until December 31, 2022.

5 SECTION 15. Sections 44-44-3 and 44-44-3.7 of the General Laws in Chapter 44-44

6 entitled "Taxation of Beverage Containers, Hard-to-Dispose Material and Litter Control

7 Participation Permittee" are hereby amended to read as follows:

8 44-44-3. Imposition of tax on beverage containers.

9 There shall be levied and imposed a tax of ~~four cents ($0.04)~~ eight cents ($0.08) on each

10 case of beverage containers sold by a beverage wholesaler to a beverage retailer or consumer within

11 this state. The tax shall be collected by the beverage wholesaler. The tax provided for in this section

12 shall not be levied, imposed, or collected on reusable and refillable beverage containers.

13 44-44-3.7. Imposition of tax on hard-to-dispose material.

14 (a) There shall be levied and imposed a tax of ~~five cents ($0.05)~~ ten cents ($0.10) per quart

15 (32 oz.) or ~~five and 3/10th cents ($0.053)~~ ten and 6/10 cents ($0.106) per liter on lubricating oils,

16 ~~ten cents ($0.10)~~ twenty cents ($0.20) per gallon or ~~two and 64/100th cents ($0.0264)~~ five and

17 28/100th cents ($0.0528) per liter on antifreeze, ~~one fourth of one cent ($.0025)~~ one half cent

18 ($0.005) per gallon or ~~66/10,000ths cents ($.00066)~~ one hundred thirty two thousandths ($0.00132)

19 per liter on organic solvents, and ~~fifty cents ($.50)~~ one dollar ($1.00) per tire as defined above. The

20 tax shall be separately stated and collected upon the sale by the hard-to-dispose material

21 wholesalers to a hard-to-dispose material retailer. In the case of new motor vehicles, a fee of ~~three~~

22 ~~dollars ($3.00)~~ six dollars ($6.00) per vehicle shall be levied and paid to the division of motor

23 vehicles in conjunction with titling of the vehicle. Every hard-to-dispose material retailer selling,

24 using, or otherwise consuming in this state any hard-to-dispose material is liable for the tax imposed

25 by this section. Its liability is not extinguished until the tax has been paid to the state, except that a

26 receipt from a hard-to-dispose material wholesaler engaging in business in this state or from a hard-

27 to-dispose material wholesaler who is authorized by the tax administrator to collect the tax under

28 rules and regulations that he or she may prescribe given to the hard-to-dispose material retailer is

29 sufficient to relieve the hard-to-dispose material retailer from further liability for the tax to which

30 the receipt refers.

31 (b) In the event that a person purchases hard-to-dispose material for its own use or

32 consumption and not for resale from a hard-to-dispose material wholesaler or retailer not engaged

33 in business in this state or not authorized by the tax administrator to collect the tax, that person

34 shall be liable for the tax imposed by this section.

2 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

3 SECTION 1. This article shall serve as joint resolution required pursuant to Rhode Island

4 General Law § 35-18-1, et seq.

5 SECTION 2. University of Rhode Island – Memorial Union – Auxiliary Enterprise

6 WHEREAS, The Council on Postsecondary Education and the University have a long-

7 standing commitment to the overall development of their students; and

8 WHEREAS, The University believes that the Memorial Union celebrates life at URI and

9 acts as the nexus for campus community, student engagement, and leadership. It is an intersection

10 connecting the academic core of campus and the campus’s socially active residential community.

11 The student union at the University is an integral part of the educational ecosystem that shapes the

12 student experience; and

13 WHEREAS, The Council on Postsecondary Education and the University of Rhode Island

14 are proposing a project which involves the renovation and expansion of the Memorial Union to meet

15 the ongoing and growing needs of their students; and

16 WHEREAS, The University engaged a qualified architectural firm, which has completed

17 an advanced planning study for this renovation; and

18 WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

19 General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

20 and other public agencies of certain obligations including financing guarantees or other agreements;

21 and

22 WHEREAS, The design and construction associated with this work of an Auxiliary

23 Enterprise building will be financed through the Rhode Island Health and Educational Building

24 Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and

25 WHEREAS, The total project costs associated with completion of the project through the

26 proposed financing method is fifty-one million five hundred thousand dollars ($51,500,000),

27 including cost of issuance. Debt service payments would be supported by revenues derived from

28 student fees and retail lease payments associated with the respective Auxiliary Enterprises of the

29 University of Rhode Island occupying said facility. Total debt service on the bonds is not expected

30 to exceed one hundred twelve million three hundred thousand dollars ($112,300,000) in the

1 aggregate based on an average interest rate of six (6%) percent; now, therefore be it

2 RESOLVED, That this General Assembly hereby approves financing in an amount not to

3 exceed fifty-one million five hundred thousand dollars ($51,500,000) for the Memorial Union

4 project for the auxiliary enterprise building on the University of Rhode Island campus; and be it

5 further

6 RESOLVED, That this Joint Resolution shall take effect upon passage.

7 SECTION 3. University of Rhode Island – Fraternity Circle Master Plan Implementation

8 WHEREAS, The Rhode Island Council on Postsecondary Education and the University of

9 Rhode Island are proposing a project which involves improvements to the sector of the Kingston

10 Campus devoted to fraternity and sorority houses, referred to as Fraternity Circle, on the Kingston

11 Campus; and

12 WHEREAS, The University of Rhode Island is underway with a utility and infrastructure

13 project to replace, improve, and reorganize aged, incrementally developed utility and paved

14 infrastructure in Fraternity Circle, referred to in the University’s Capital Improvement Plan as

15 “Fraternity Circle Improvements” project, including improvements to water, wastewater, electrical,

16 telecommunications, natural gas connections, and storm water management systems, as well as

17 roadways, walkways, and parking lots as a first phase of improvements reflected in a “master plan”

18 for this unique neighborhood of on-campus residences serving organizations of students; and

19 WHEREAS, The second phase of the overall improvements to Fraternity Circle, referred

20 to on the University’s Capital Improvement Plan as the “Fraternity Circle Master Plan

21 Implementation” project is needed to complete this district of campus; and

22 WHEREAS, The design and execution of this project will improve student life and the

23 campus's environmental impact; and

24 WHEREAS, These timely project commitments serve the objectives of both the University

25 and the local community; and

26 WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

27 General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

28 and other public agencies of certain obligations including financing guarantees or other agreements;

29 and

30 WHEREAS, The design and construction will be financed through Rhode Island Health

31 and Educational Building Corporation revenue bonds, with an expected term of twenty (20) years;

32 and

33 WHEREAS, The project costs associated with completion of the project and proposed

34 financing method is two million one hundred thousand dollars ($2,100,000), including cost of

1 issuance. Debt Service payments would be supported by the University's unrestricted general

2 fund. Total debt service on the bonds is not expected to exceed three million seven hundred

3 thousand dollars ($3,700,000) in the aggregate based on an average interest rate of six percent

4 (6%); now, therefore be it

5 RESOLVED, That this General Assembly hereby approves financing in an amount not to

6 exceed two million one hundred thousand dollars ($2,100,000) for the Fraternity Circle Master Plan

7 Implementation project at the University of Rhode Island; and be it further

8 RESOLVED, That, this Joint Resolution shall take effect upon passage.

9 SECTION 4. University of Rhode Island – Combined Health & Counseling Center –

10 Auxiliary Enterprise

11 WHEREAS, The Council on Postsecondary Education and the University have a long-

12 standing commitment to the health and wellness of their students; and

13 WHEREAS, The University has a desire to create a one-stop center to address the physical,

14 emotional, and mental health of its students; and

15 WHEREAS, The Council on Postsecondary Education and the University of Rhode Island

16 are proposing a project which involves the construction of a new Combined Health & Counseling

17 Center to meet the ongoing and growing health needs of their students; and

18 WHEREAS, The University engaged a qualified architectural firm, which has completed

19 an advanced planning study for this new building; and

20 WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

21 General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

22 and other public agencies of certain obligations including financing guarantees or other agreements;

23 and

24 WHEREAS, The design and construction associated with this work of an Auxiliary

25 Enterprise building will be financed through the Rhode Island Health and Educational Building

26 Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and

27 WHEREAS, The total project costs associated with completion of the project through the

28 proposed financing method is twenty-six million nine hundred thousand dollars ($26,900,000),

29 including cost of issuance. Debt service payments would be supported by revenues derived from

30 student fees associated with the respective Auxiliary Enterprises of the University of Rhode Island

31 occupying said facility. Total debt service on the bonds is not expected to exceed fifty-eight million

32 seven hundred thousand dollars ($58,700,000) in the aggregate based on an average interest rate of

33 six (6%) percent; now, therefore be it

34 RESOLVED, That this General Assembly hereby approves financing in an amount not to

1 exceed t w e n t y - six million n i n e hundred thousand dollars ($26,900,000) for the Combined

2 Health & Counseling Center project for the auxiliary enterprise building on the University of Rhode

3 Island campus; and be it further

4 RESOLVED, That, this Joint Resolution shall take effect upon passage.

5 SECTION 5. Rhode Island Turnpike and Bridge Authority Project

6 WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "authority") is a public

7 corporation of the state of Rhode Island (the "state"), constituting a public instrumentality and

8 agency exercising public and essential governmental functions of the state, created by the general

9 assembly pursuant to chapter 12 of title 24 (as enacted, reenacted and amended, the "act"); and

10 WHEREAS, The state recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge,

11 the Mount Hope Bridge, the Sakonnet River Bridge and other facilities of or within the control of

12 the authority are an essential part of the state's transportation system and facilitates the tourism

13 industry; and it is the policy of the state that the public welfare and the further economic

14 development and the prosperity of the state requires the maintenance of such facilities and the

15 financing thereof; and

16 WHEREAS, The act provides that the authority shall have the power to charge and collect

17 tolls for the use of its facilities; and

18 WHEREAS, Pursuant to § 31-36-20, three and one-half cents ($0.035) per gallon of the

19 motor fuel tax is transferred to the authority to be used for maintenance, operations, capital

20 expenditures and debt service on any of its projects as defined in chapter 12 of title 24; and

21 WHEREAS, The act also provides that the authority shall have the power to acquire, hold

22 and dispose of real and personal property in the exercise of its powers and performance of its duties;

23 and

24 WHEREAS, The act authorizes the authority to make and enter into all contracts and

25 agreements necessary or incidental to the performance of its duties and the execution of its powers

26 under the act, to issue revenue bonds of the authority for any of its purposes and to refund its bonds,

27 borrow money in anticipation of the issuance of its bonds, and secure its bonds and notes by the

28 pledge of its tolls and other revenues; and

29 WHEREAS, In furtherance of its corporate purposes, the authority is authorized to issue

30 from time to time its negotiable revenue bonds and notes in one or more series in such principal

31 amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

32 by the act, making provision for working capital and a reserve for interest; and

33 WHEREAS, Pursuant to §§ 35-18-3 and 35-18-4 of the Rhode Island Public Corporation

34 Debt Management Act (as enacted, reenacted and amended, the "Debt Management Act"), the

1 authority hereby requests the approval of the general assembly of the authority's issuance of not

2 more than fifty million dollars ($50,000,000) Rhode Island Turnpike and Bridge Authority

3 Revenue Bonds with a term not to exceed thirty (30) years and six (6) months (together with any

4 notes issued in anticipation of the issuance of bonds, the "bonds") to be secured by toll, transfers

5 of motor fuel taxes and/or other revenues, in any combination, for the purpose of providing funds

6 to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading and improvement

7 of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge, Mount Hope

8 Bridge, and other projects authorized under the act, replacement of the components thereof,

9 working capital, capitalized interest, a debt service reserve and the costs of issuing and insuring the

10 bonds (the "project"); and

11 WHEREAS, The project constitutes essential public facilities directly benefiting the state;

12 and

13 WHEREAS, The authority is authorized pursuant to § 24-12-28 of the act to secure its

14 bonds by a pledge of the tolls and other revenues received by the authority; and

15 WHEREAS, The state shall directly benefit economically from the project by the repair,

16 maintenance and improvement of the state transportation infrastructure; and

17 WHEREAS, In the event that not all of the bond proceeds are used to carry out the specified

18 project, the authority will use any remaining funds to pay debt service on the bonds; now, therefore,

19 be it

20 RESOLVED AND ENACTED, That this general assembly finds that the project is an

21 essential public facility and is of a type and nature consistent with the purposes and within the

22 powers of the authority to undertake, and hereby approves the authority's issuance of not more than

23 fifty million dollars ($50,000,000) in bonds, which amount is in addition to all prior authorizations;

24 and be further

25 RESOLVED, That the bonds will be special obligations of the authority payable from

26 funds received by the authority from tolls, transfers of motor fuel taxes and other revenues received

27 by the authority, in any combination or priority as may be designated in the proceedings of the

28 authority authorizing the issuance of such debt. The total debt service on the bonds is estimated to

29 average approximately three million five hundred ninety-four thousand dollars ($3,594,000) per

30 year or approximately one hundred nine million three hundred sixteen thousand dollars

31 ($109,316,000) in the aggregate, prior to the receipt of any federal subsidy and/or assistance, at an

32 average interest rate of approximately six percent (6%) and approximately a thirty (30) year

33 maturity; and be it further

34 RESOLVED, That the authority may issue interest bearing or discounted notes from time

1 to time in anticipation of the authorization or issue of bonds or in anticipation of the receipt of

2 federal aid for the purposes of this joint resolution, the amount of original notes issued in

3 anticipation of bonds may not exceed the amount of bonds which may be issued under this joint

4 resolution and the amount of original notes issued in anticipation of federal aid may not exceed the

5 amount of available federal aid as estimated by the authority, any such notes issued hereunder shall

6 be payable within five (5) years from their respective dates, but the principal of and interest on

7 notes issued for a shorter period may be renewed or paid from time to time by the issue of other

8 notes hereunder, provided the period from the date of an original note to the maturity of any note

9 issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years, and any

10 such refunding of notes with notes or bonds may be effected without complying with § 35-18-3(5);

11 and be it further

12 RESOLVED, That the bonds will not constitute indebtedness of the state or any of its

13 subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is

14 pledged.

15 RESOLVED, That, this Joint Resolution shall take effect upon passage.

16 SECTION 6. Issuance of GARVEE Bonds

17 WHEREAS, The Rhode Island department of transportation ("the department") has

18 completed a detailed review of available funding sources for transportation reconstruction,

19 maintenance, and repair and has determined that the funding available to carry out an immediate

20 program of bridge reconstruction and preventative maintenance (the "program") is insufficient; and

21 WHEREAS, The limitation in funding has occurred, in part, due to the absence of a state•

22 funded capital investment program in transportation infrastructure, and the level funding of federal

23 appropriations to the state, along with a reduction in federal funding through the elimination of

24 federal earmarks and expiration of additional special federal funds; and

25 WHEREAS, Congress has enacted the Fixing America's Surface Transportation (FAST)

26 Act, which provides an increase in available federal funding; and

27 WHEREAS, The department has explored various options to finance the costs of a robust

28 infrastructure program and concluded that the federal-aid financing program authorized in federal

29 law by Section 311 of the National Highway System Designation Act of 1995 and commonly

30 referred to as the Grant Anticipation Revenue Vehicle Program ("GARVEE program") represents

31 the best financing mechanism for the state of Rhode Island inasmuch as the GARVEE program

32 accelerates the funding available to ensure that more Rhode Island bridges do not become

33 structurally deficient; and

34 WHEREAS, The GARVEE program allows a state to issue bonds ("GARVEE Bonds") or

1 other debt instruments backed by future appropriations for federal-aid transportation projects

2 whereby such amounts are used to cover an assortment of bond-related costs, including principal

3 and interest payments, issuance costs, insurance, and other costs incidental to financing; and

4 WHEREAS, Among other advantages, GARVEE Bonds may be issued as special revenue

5 bonds without a full faith and credit pledge by the state of Rhode Island; and

6 WHEREAS, This general assembly finds that the reconstruction, maintenance, and repair

7 of the transportation infrastructure of the state is critical for economic development and the general

8 welfare of both businesses and residents; and

9 WHEREAS, The general assembly has studied the issue of sustainable transportation

10 funding and has determined that no single approach, instrument or method is able to provide

11 sufficient revenue to maintain the state transportation system in a state of good repair; and

12 WHEREAS, The department has determined that GARVEE Bonds should be utilized to

13 fund the bridge replacement, reconstruction, and maintenance component of the ten (10) year

14 capital program known as RhodeWorks; and

15 WHEREAS, In connection with the issuance of GARVEE Bonds, the state of Rhode

16 Island, acting by and through RIDOT, may elect to receive in lieu of certain monies which would

17 otherwise have been received as reimbursement from FHWA for project costs for bridges in the

18 RhodeWorks program, debt service payments to repay indebtedness in the form of bonds or notes

19 issued to finance the costs of the construction and financing bridges in the RhodeWorks program;

20 and

21 WHEREAS, The Rhode Island Public Corporation Debt Management Act (chapter 8 of

22 title 35) requires the general assembly to provide its consent to the issuance of certain obligations

23 for essential public facilities of the type referenced herein; and

24 WHEREAS, The design, construction, equipping and completion of these improvements

25 will be financed in whole or in part through revenue bonds issued pursuant to the GARVEE

26 program by the Rhode Island commerce corporation ("commerce corporation") or through revenue

27 bonds issued pursuant to the GARVEE program by another agency, instrumentality or quasi-public

28 corporation established by the state of Rhode Island now or hereafter and otherwise authorized and

29 empowered pursuant to law to issue bonds of the type referenced herein for the types of projects

30 enumerated herein, with such issuance having an expected term of fifteen (15) years, and annual

31 revenues for the operation and maintenance of the bridges to be included in the annual operating

32 budget of RIDOT; and

33 WHEREAS, The capital costs and anticipated bond issuance amounts associated with these

34 projects are estimated to be two hundred million dollars ($200,000,000); now, therefore, be it

1 RESOLVED AND ENACTED, That the bridges in the RhodeWorks program are each

2 essential public facilities and critical to ensure the economic viability of the citizens, businesses,

3 transportation, marine trades and port facilities of the state of Rhode Island and otherwise in the

4 best interests of the state of Rhode Island, and that this general assembly hereby approves financing

5 not to exceed two hundred million dollars ($200,000,000) in principal amount of GARVEE Bonds,

6 the repayment of which shall be derived from and supported by FHWA funds due the state of

7 Rhode Island. The term of the GARVEE Bonds shall not exceed fifteen (15) years and the total

8 debt service on the GARVEE Bonds shall not exceed two hundred seventy-five million dollars

9 ($275,000,000); and be it further

10 RESOLVED, That the governor of the state of Rhode Island or the director of the

11 department of transportation or the director of the department of administration or the chief

12 executive officer or the chief operating officer of the commerce corporation each be and each

13 hereafter are, acting singly, authorized and empowered by the general assembly to enter into a

14 financing lease, guarantee, loan and trust agreement, indenture or other obligations or contracts or

15 agreements and to take such other actions as such official shall deem necessary or appropriate in

16 order to issue or facilitate the issuance of the GARVEE Bonds and to provide the commerce

17 corporation or any subsidiary thereof or other instrumentality, agency or quasi-public corporation

18 otherwise authorized and empowered to issue the bonds specified in this Joint Resolution for the

19 RhodeWorks program with the necessary debt service payments up to the amount specified above

20 and the necessary security for such bonds consistent with the provisions of this Joint Resolution,

21 including any action to pledge, assign or otherwise transfer the right to receive all or any portion

22 of future FHWA appropriations for federal-aid transportation projects or other revenues permitted

23 by the laws of the state of Rhode Island to secure or provide for the payment of any such GARVEE

24 Bonds; and be it further

25 RESOLVED, That, this Joint Resolution shall take effect upon passage.

26 SECTION 7. This Article shall take effect upon passage.

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art.007/6/007/5/007/4/007/3/007/2/007/1

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1 ARTICLE 7

2 RELATING TO MOTOR VEHICLES

3 SECTION 1. Section 31-2-27 of the General Laws in Chapter 31-2 entitled "Division of

4 Motor Vehicles" is hereby amended to read as follows:

5 31-2-27. Technology surcharge fee.

6 (a) The division of motor vehicles shall collect a technology surcharge fee of ~~one dollar~~

7 ~~and fifty cents ($1.50)~~ two dollars and fifty cents ($2.50) per transaction for every division of motor

8 vehicles' fee transaction, except as otherwise provided by law and provided no surcharge fee is

9 assessed on motor vehicle inspection transactions conducted pursuant to § 31-38-4. One dollar and

10 fifty cents ($1.50) of each two dollars and fifty cents ($2.50) ~~All technology surcharge fees~~

11 collected pursuant to this section shall be deposited into the information technology investment

12 fund established pursuant to § 42-11-2.5 and shall be used for project-related payments and/or

13 ongoing maintenance of and enhancements to the division of motor vehicles' computer system and

14 to reimburse the information technology investment fund for advances made to cover project-

15 related payments. The remaining one dollar ($1.00) shall be deposited into a restricted receipt

16 account managed by the division of motor vehicles and restricted to the project-related payments

17 and/or ongoing maintenance of and enhancements to the division of motor vehicles’ computer

18 system.

19 ~~(b) Authorization to collect the technology surcharge fee provided for in subsection (a)~~

20 ~~shall sunset and expire on June 30, 2022.~~

21 (b) Beginning July 1, 2022, the full two dollars and fifty cents ($2.50) shall be deposited

22 into the division of motor vehicles restricted account and restricted to the project-related payments

23 and/or ongoing maintenance of and enhancements to the division of motor vehicles’ computer

24 system.

25 SECTION 2. Section 31-3-33 of the General Laws in Chapter 31-3 entitled "Registration

26 of Vehicles" is hereby amended to read as follows:

27 31-3-33. Renewal of registration.

28 (a) Application for renewal of a vehicle registration shall be made by the owner on a proper

29 application form and by payment of the registration fee for the vehicle as provided by law.

30 (b) The division of motor vehicles may receive applications for renewal of registration, and

1 may grant the renewal and issue new registration cards and plates at any time prior to expiration of

2 registration.

3 (c) Upon renewal, owners will be issued a renewal sticker for each registration plate that

4 shall be placed at the bottom, right-hand corner of the plate. Owners shall be issued a new, fully

5 reflective plate beginning ~~January 1, 2020~~ June 1, 2020, at the time of initial registration or at the

6 renewal of an existing registration and reissuance will be conducted no less than every ten (10)

7 years.

8 (d) No later than August 15, 2019, and every fifteenth day of the month through August

9 15, 2020, the division of motor vehicles shall submit a report outlining the previous month's activity

10 and progress towards the implementation of the license plate reissuance to the chairpersons of the

11 house finance and senate finance committee, the house fiscal advisor, and the senate fiscal advisor.

12 The report shall include, but not be limited to, information on the status of project plans, obstacles

13 to implementation, and actions taken toward implementation.

14 SECTION 3. Section 31-6-1 of the General Laws in Chapter 31-6 entitled "Registration

15 Fees" is hereby amended to read as follows:

16 31-6-1. Amount of registration and miscellaneous fees.

17 (a) The following registration fees shall be paid to the division of motor vehicles for the

18 registration of motor vehicles, trailers, semi-trailers, and school buses subject to registration for

19 each year of registration:

20 (1) For the registration of every automobile, when equipped with pneumatic tires, the gross

21 weight of which is not more than four thousand pounds (4,000 lbs.): thirty dollars ($30.00).

22 (2) For the registration of every motor truck or tractor when equipped with pneumatic tires,

23 the gross weight of which is not more than four thousand pounds (4,000 lbs.): thirty-four dollars

24 ($34.00).

25 (3) For the registration of every automobile, motor truck or tractor, when equipped with

26 pneumatic tires, the gross weight of which is:

27 (i) More than four thousand pounds (4,000 lbs.), but not more than five thousand pounds

28 (5,000 lbs.): forty dollars ($40.00);

29 (ii) More than five thousand pounds (5,000 lbs.), but not more than six thousand pounds

30 (6,000 lbs.): forty-eight dollars ($48.00);

31 (iii) More than six thousand pounds (6,000 lbs.), but not more than seven thousand pounds

32 (7,000 lbs.): fifty-six dollars ($56.00);

33 (iv) More than seven thousand pounds (7,000 lbs.), but not more than eight thousand

34 pounds (8,000 lbs.): sixty-four dollars ($64.00);

1 (v) More than eight thousand pounds (8,000 lbs.), but not more than nine thousand pounds

2 (9,000 lbs.): seventy dollars ($70.00);

3 (vi) More than nine thousand pounds (9,000 lbs.), but not more than ten thousand pounds

4 (10,000 lbs.): seventy-eight dollars ($78.00);

5 (vii) More than ten thousand pounds (10,000 lbs.), but not more than twelve thousand

6 pounds (12,000 lbs.): one hundred six dollars ($106);

7 (viii) More than twelve thousand pounds (12,000 lbs.), but not more than fourteen thousand

8 pounds (14,000 lbs.): one hundred twenty-four dollars ($124);

9 (ix) More than fourteen thousand pounds (14,000 lbs.), but not more than sixteen thousand

10 pounds (16,000 lbs.): one hundred forty dollars ($140);

11 (x) More than sixteen thousand pounds (16,000 lbs.), but not more than eighteen thousand

12 pounds (18,000 lbs.): one hundred fifty-eight dollars ($158);

13 (xi) More than eighteen thousand pounds (18,000 lbs.), but not more than twenty thousand

14 pounds (20,000 lbs.): one hundred seventy-six dollars ($176);

15 (xii) More than twenty thousand pounds (20,000 lbs.), but not more than twenty-two

16 thousand pounds (22,000 lbs.): one hundred ninety-four dollars ($194);

17 (xiii) More than twenty-two thousand pounds (22,000 lbs.), but not more than twenty-four

18 thousand pounds (24,000 lbs.): two hundred ten dollars ($210);

19 (xiv) More than twenty-four thousand pounds (24,000 lbs.), but not more than twenty-six

20 thousand pounds (26,000 lbs.): two hundred thirty dollars ($230);

21 (xv) More than twenty-six thousand pounds (26,000 lbs.), but not more than twenty-eight

22 thousand pounds (28,000 lbs.): two hundred ninety-six dollars ($296);

23 (xvi) More than twenty-eight thousand pounds (28,000 lbs.), but not more than thirty

24 thousand pounds (30,000 lbs.): three hundred sixteen dollars ($316);

25 (xvii) More than thirty thousand pounds (30,000 lbs.), but not more than thirty-two

26 thousand pounds (32,000 lbs.): four hundred and twenty-two dollars ($422);

27 (xviii) More than thirty-two thousand pounds (32,000 lbs.), but not more than thirty-four

28 thousand pounds (34,000 lbs.): four hundred and forty-eight dollars ($448);

29 (xix) More than thirty-four thousand pounds (34,000 lbs.), but not more than thirty-six

30 thousand pounds (36,000 lbs.): four hundred and seventy-six dollars ($476);

31 (xx) More than thirty-six thousand pounds (36,000 lbs.), but not more than thirty-eight

32 thousand pounds (38,000 lbs.): five hundred and two dollars ($502);

33 (xxi) More than thirty-eight thousand pounds (38,000 lbs.), but not more than forty

34 thousand pounds (40,000 lbs.): five hundred and twenty-eight dollars ($528);

1 (xxii) More than forty thousand pounds (40,000 lbs.), but not more than forty-two thousand

2 pounds (42,000 lbs.): five hundred and fifty-four dollars ($554);

3 (xxiii) More than forty-two thousand pounds (42,000 lbs.), but not more than forty-six

4 thousand pounds (46,000 lbs.): six hundred and eight dollars ($608);

5 (xxiv) More than forty-six thousand pounds (46,000 lbs.), but not more than fifty thousand

6 pounds (50,000 lbs.): six hundred and sixty dollars ($660);

7 (xxv) More than fifty thousand pounds (50,000 lbs.), but not more than fifty-four thousand

8 pounds (54,000 lbs.): seven hundred and twelve dollars ($712);

9 (xxvi) More than fifty-four thousand pounds (54,000 lbs.), but not more than fifty-eight

10 thousand pounds (58,000 lbs.): seven hundred and sixty-eight dollars ($768);

11 (xxvii) More than fifty-eight thousand pounds (58,000 lbs.), but not more than sixty-two

12 thousand pounds (62,000 lbs.): eight hundred and sixteen dollars ($816);

13 (xxviii) More than sixty-two thousand pounds (62,000 lbs.), but not more than sixty-six

14 thousand pounds (66,000 lbs.): eight hundred and seventy-six dollars ($876);

15 (xxix) More than sixty-six thousand pounds (66,000 lbs.), but not more than seventy

16 thousand pounds (70,000 lbs.): nine hundred and twenty-four dollars ($924);

17 (xxx) More than seventy thousand pounds (70,000 lbs.), but not more than seventy-four

18 thousand pounds (74,000 lbs.): nine hundred and seventy-two dollars ($972);

19 (xxxi) Over seventy-four thousand pounds (74,000 lbs.): nine hundred and seventy-two

20 dollars ($972), plus twenty-four dollars ($24.00) per two thousand pounds (2,000 lbs.) gross

21 weight.

22 (4) For the registration of every semi-trailer to be used with a truck-tractor, as defined in §

23 31-1-4(f), shall be as follows: an annual fee of twelve dollars ($12.00) for a one-year registration;

24 for multi-year registrations the fee of fifty dollars ($50.00) for a five-year (5) registration; and

25 eighty dollars ($80.00) for an eight-year (8) registration. However, when in use, the weight of the

26 resulting semi-trailer unit and its maximum carrying capacity shall not exceed the gross weight of

27 the original semi-trailer unit from which the gross weight of the tractor was determined. A

28 registration certificate and registration plate shall be issued for each semi-trailer so registered.

29 There shall be no refund of payment of such fee, except that when a plate is returned prior to ninety

30 (90) days before the effective date of that year's registration, the pro rate amount, based on the

31 unused portion of the multi-year registration plate period at time of surrender, shall be refunded. A

32 multi-year semi-trailer registration may be transferred to another semi-trailer subject to the

33 provisions and fee set forth in § 31-6-11. Thirty percent (30%) of the semi-trailer registration fee

34 shall be retained by the division of motor vehicles to defray the costs of implementation of the

1 international registration plan (IRP) and fleet registration section.

2 (5) For the registration of every automobile, motor truck, or tractor, when equipped with

3 other than pneumatic tires, there shall be added to the above gross weight fees a charge of ten cents

4 (10¢) for each one hundred pounds (100 lbs.) of gross weight.

5 (6) For the registration of every public bus, the rates provided for motor vehicles for hire

6 plus two dollars ($2.00) for each passenger that bus is rated to carry, the rating to be determined by

7 the administrator of the division of motor vehicles.

8 (7) For the registration of every motorcycle, or motor-driven cycle, thirteen dollars

9 ($13.00). Three dollars ($3.00) from that sum shall be turned over to the department of education

10 to assist in the payment of the cost of the motorcycle driver's education program as enumerated in

11 § 31-10.1-1.1.

12 (8) For the registration of every trailer, not including semi-trailers used with a truck-tractor

13 as defined in § 31-1-4(d), with a gross weight of three thousand pounds (3,000 lbs.) or less, five

14 dollars ($5.00). Trailers with a gross weight of more than three thousand pounds (3,000 lbs.) shall

15 be assessed a registration fee of one dollar and fifty cents ($1.50) per thousand pounds (1,000 lbs.).

16 (9) The annual registration fee for a motor vehicle, commonly described as a boxcar and/or

17 locomotive, and used only by La Societe Des 40 Hommes et 8 Chevaux for civic demonstration,

18 parades, convention purposes, or social welfare work, shall be two dollars ($2.00).

19 (10) For the registration of every motor vehicle, trailer, or semi-trailer owned by any

20 department or agency of any city or town or district, provided the name of the city or town or

21 district or state department or agency owning the same shall be plainly printed on two (2) sides of

22 the vehicle, two dollars ($2.00).

23 (11) For the registration of motor vehicles used for racing, fifteen dollars ($15.00).

24 (12) For every duplicate registration certificate, seventeen dollars ($17.00).

25 (13) For every certified copy of a registration certificate or application, ten dollars ($10.00).

26 (14) For every certificate assigning a special identification number or mark as provided in

27 § 31-3-37, one dollar ($1.00).

28 (15) For every replacement of number plates or additional pair of number plates, without

29 changing the number, thirty dollars ($30.00).

30 (16) For the registration of every farm vehicle, used in farming as provided in § 31-3-31:

31 ten dollars ($10.00).

32 (17) For the registration of antique motor vehicles, five dollars ($5.00).

33 (18) For the registration of a suburban vehicle, when used as a pleasure vehicle and the

34 gross weight of which is not more than four thousand pounds (4,000 lbs.), the same rates as charged

1 in subdivision (1) of this subsection shall be applicable and when used as a commercial vehicle and

2 the gross weight of which is not more than four thousand pounds (4,000 lbs.), the same rates as

3 provided in subdivision (2) of this subsection shall be applicable. The rates in subdivision (3) of

4 this subsection shall be applicable when the suburban vehicle has a gross weight of more than four

5 thousand pounds (4,000 lbs.), regardless of the use of the vehicle.

6 (19) For the registration of every motor bus that is used exclusively under contract with a

7 political subdivision or school district of the state for the transportation of school children, twenty-

8 five dollars ($25); provided that the motor bus may also be used for the transportation of persons

9 to and from church and Sunday school services, and for the transportation of children to and from

10 educational or recreational projects sponsored by a city or town or by any association or

11 organization supported wholly or in part by public or private donations for charitable purposes,

12 without the payment of additional registration fee.

13 (20) For the registration of every motorized bicycle, ten dollars ($10.00).

14 (21) For the registration of every motorized tricycle, ten dollars ($10.00).

15 (22) For the replacement of number plates with a number change, twenty dollars ($20.00).

16 (23) For the initial issuance and each reissuance of fully reflective plates, as required by §§

17 31-3-10 ~~and~~, 31-3-32, and 31-3-33, an additional ~~six dollars ($6.00)~~ eight dollars ($8.00).

18 (24) For the issuance of a trip permit under the International Registration Plan, twenty-five

19 dollars ($25.00) per vehicle. The division of motor vehicles is authorized to issue seventy-two-hour

20 (72) trip permits for vehicles required to be registered in the International Registration Plan that

21 have not been apportioned with the state of Rhode Island.

22 (25) For the issuance of a hunter's permit under the International Registration Plan, twenty-

23 five dollars ($25.00) per vehicle. The division of motor vehicles is authorized to issue hunter's

24 permits for motor vehicles based in the state of Rhode Island and otherwise required to be registered

25 in the International Registration Plan. These permits are valid for thirty (30) days.

26 (26) For the registration of a specially adapted motor vehicle necessary to transport a family

27 member with a disability for personal, noncommercial use, a fee of thirty dollars ($30.00) assessed.

28 SECTION 4. Section 31-3.1-38 of the General Laws in Chapter 31-3.1 entitled

29 "Certificates of Title and Security Interests" is hereby amended to read as follows:

30 31-3.1-38. Effective dates -- Applicability.

31 This chapter shall apply to all model vehicles designated as 2001 models and all subsequent

32 model year vehicles. All vehicles designated as model years prior to 2001 shall be excluded from

33 these provisions~~, provided that no title certificate shall be required once a vehicle is twenty (20)~~

34 ~~years old.~~

2 RELATING TO TRANSPORTATION

3 SECTION 1. Section 31-25-21 of the General Laws in Chapter 31-25 entitled "Size,

4 Weight, and Load Limits" is hereby amended to read as follows:

5 31-25-21. Power to permit excess size or weight of loads. [Effective January 1, 2019.]

6 (a) The department of transportation, with respect to highways under its jurisdiction, may,

7 in its discretion, upon application in writing and good cause being shown for it, approve the

8 issuance of a special permit in writing by the division of motor vehicles authorizing the applicant

9 to operate or move a vehicle, or combination of vehicles, of a size or weight of vehicle or load

10 exceeding eighty thousand pounds (80,000 lbs.) or otherwise not in conformity with the provisions

11 of chapters 1 -- 27 of this title upon any highway under the jurisdiction of the party granting the

12 permit and for the maintenance of which the party is responsible. Permits that have been issued for

13 a full year shall not be required to be renewed for the period of time for which payment has been

14 made and the application and other required documentation has been completed and filed. Provided,

15 that neither the department of transportation nor the local authorities may approve the issuance of

16 permits for divisible loads weighing in excess of one hundred four thousand-eight hundred pounds

17 (104,800 lbs.), gross vehicle weight, for five-axle (5) vehicles and seventy-six thousand six hundred

18 fifty pounds (76,650 lbs.), gross vehicle 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 of

30 transportation pursuant to subsection (e).

1 (d) Annual fee. An annual fee of ~~three hundred dollars ($300)~~ four hundred dollars ($400)

2 paid to the division of motor vehicles shall exempt the payor from the necessity of paying trip

3 permit fees for non-divisible loads of less than one hundred thirty thousand pounds (130,000 lbs.)

4 as found in subsection (c). However, payment of the fee shall not be deemed to authorize non-

5 compliance with the rules and regulations promulgated by the department of transportation entitled

6 "State of Rhode Island Manual for Overweight and Oversize Vehicle Permits".

7 (e) Blanket construction equipment permits may be issued, as determined by the

8 department of transportation, for intrastate movement of non-reducible loads upon payment of the

9 fee set forth in subsection (d). The duration of the blanket permit may not exceed one year, and the

10 construction equipment permit load shall be limited to a minimum overall length of fifty-five feet

11 (55'), a maximum overall length of eighty feet (80'), and a maximum width of twelve feet four

12 inches (12' 4"), provided that neither the division of motor vehicles nor local authorities may issue

13 blanket permits for non-divisible loads weighing in excess of one hundred thirty thousand pounds

14 (130,000 lbs.) on less than six (6) axles, with individual axle weights exceeding twenty-five

15 thousand pounds (25,000 lbs.); provided, further, that the department of transportation, with respect

16 to highways under its jurisdiction, may, in its discretion and upon application and for good cause

17 shown, approve the issuance of a special trip permit authorizing the applicant to exceed one hundred

18 thirty thousand pounds (130,000 lbs.) for non-divisible loads. A flashing amber light shall be in

19 operation above the highest point of the vehicle and shall be visible from both the front and rear of

20 the vehicle; and signs and red warning flags shall be affixed to all extremities. All blanket permits

21 issued in accordance with this section shall be effective during daylight and night-time hours for

22 all over-dimensional moves made and travel shall be allowed on state highways. The following

23 restrictions on travel times shall apply to:

24 (1) Freeways -- in general.

25 No travel will be allowed between the hours of 7:00 am and 9:00 am or between 3:00 pm

26 and 7:00 pm on any day of the week.

27 (2) Arterial roadways.

28 No travel will be allowed between the hours of 7:00 am and 9:00 am or between 3:00 pm

29 and 7:00 pm, Monday through Friday.

30 (3) Holidays.

31 Memorial Day, Victory Day, Labor Day and Columbus Day -- No Saturday, Sunday, or

32 Monday day or night travel.

33 Thanksgiving Day -- No Wednesday night or Thursday day or night travel. No travel on

34 Wednesday through Sunday of Thanksgiving week in any calendar year.

1 Independence Day, Veterans Day, Christmas Day -- No day or night travel and no travel

2 the previous night.

3 Easter Sunday. No Saturday night or Sunday travel.

4 (f) Construction equipment blanket permits shall not be granted for travel over the

5 following bridges:

6 Blackstone River Viaduct 750 carrying I-295 northbound and southbound over the

7 Blackstone River;

8 Kingston Road Bridge No. 403 carrying I-95 northbound and southbound over Kingston

9 Road.

10 (g) Travel of blanket permitted construction equipment through zones with reductions in

11 lane width such as construction zones will not be allowed. Prior to travel, blanket permit holders

12 are responsible to verify the location of construction zones and lane width reductions. Locations of

13 lane width reduction zones are available through the state department of transportation's

14 construction office.

15 SECTION 2. Sections 39-18.1-4 and 39-18.1-5 of the General Laws in Chapter 39-18.1

16 entitled "Transportation Investment and Debt Reduction Act of 2011" are hereby amended to read

17 as follows:

18 39-18.1-4. Rhode Island highway maintenance account created.

19 (a) There is hereby created a special account in the intermodal surface transportation fund

20 as established in § 31-36-20 that is to be known as the Rhode Island highway maintenance account.

21 (b) The fund shall consist of all those moneys that the state may from time to time direct

22 to the fund, including, but not necessarily limited to, moneys derived from the following sources:

23 (1) There is imposed a surcharge of thirty dollars ($30.00) per vehicle or truck, other than

24 those with specific registrations set forth below in subsection (b)(1)(i). Such surcharge shall be paid

25 by each vehicle or truck owner in order to register that owner's vehicle or truck and upon each

26 subsequent biennial registration. This surcharge shall be phased in at the rate of ten dollars ($10.00)

27 each year. The total surcharge will be ten dollars ($10.00) from July 1, 2013, through June 30,

28 2014, twenty dollars ($20.00) from July 1, 2014, through June 30, 2015, and thirty dollars ($30.00)

29 from July 1, 2015, through June 30, 2016, and each year thereafter.

30 (i) For owners of vehicles or trucks with the following plate types, the surcharge shall be

31 as set forth below and shall be paid in full in order to register the vehicle or truck and upon each

32 subsequent renewal:

33 Plate Type Surcharge

34 Antique $5.00

Farm

$10.00

Motorcycle

$13.00

3 (ii) For owners of trailers, the surcharge shall be one-half (1/2) of the biennial registration

4 amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.

5 (2) There is imposed a surcharge of fifteen dollars ($15.00) per vehicle or truck, other than

6 those with specific registrations set forth in subsection (b)(2)(i) below, for those vehicles or trucks

7 subject to annual registration, to be paid annually by each vehicle or truck owner in order to register

8 that owner's vehicle or truck and upon each subsequent annual registration. This surcharge will be

9 phased in at the rate of five dollars ($5.00) each year. The total surcharge will be five dollars ($5.00)

10 from July 1, 2013, through June 30, 2014, ten dollars ($10.00) from July 1, 2014, through June 30,

11 2015, and fifteen dollars ($15.00) from July 1, 2015, through June 30, 2016, and each year

12 thereafter.

13 (i) For registrations of the following plate types, the surcharge shall be as set forth below

14 and shall be paid in full in order to register the plate, and upon each subsequent renewal:

15 Plate Type Surcharge

16 Boat Dealer $6.25

17 Cycle Dealer $6.25

18 In-transit $5.00

19 Manufacturer $5.00

20 New Car Dealer $5.00

21 Used Car Dealer $5.00

22 Racer Tow $5.00

23 Transporter $5.00

24 Bailee $5.00

25 (ii) For owners of trailers, the surcharge shall be one-half (1/2) of the annual registration

26 amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.

27 (iii) For owners of school buses, the surcharge will be phased in at the rate of six dollars

28 and twenty-five cents ($6.25) each year. The total surcharge will be six dollars and twenty-five

29 cents ($6.25) from July 1, 2013, through June 30, 2014, and twelve dollars and fifty cents ($12.50)

30 from July 1, 2014, through June 30, 2015, and each year thereafter.

31 (3) There is imposed a surcharge of thirty dollars ($30.00) per license to operate a motor

32 vehicle to be paid every five (5) years by each licensed operator of a motor vehicle. This surcharge

33 will be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will be ten dollars

34 ($10.00) from July 1, 2013, through June 30, 2014, twenty dollars ($20.00) from July 1, 2014,

1 through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015, through June 30, 2016, and

2 each year thereafter. In the event that a license is issued or renewed for a period of less than five

3 (5) years, the surcharge will be prorated according to the period of time the license will be valid;

4 (4) All fees assessed pursuant to § 31-47.1-11, and chapters 3, 6, 10, and 10.1 of title 31,

5 except for fees assessed pursuant to §§ 31-10-31(6) and (8), shall be deposited into the Rhode Island

6 highway maintenance account, provided that for fiscal years 2016, 2017, and 2018 these fees be

7 transferred as follows:

8 (i) From July 1, 2015, through June 30, 2016, twenty-five percent (25%) will be deposited;

9 (ii) From July 1, 2016, through June 30, 2017, fifty percent (50%) will be deposited; and

10 (iii) From July 1, 2017, through June 30, 2018, sixty percent (60%) will be deposited;

11 (iv) From July 1, 2018, and each year thereafter, one hundred percent (100%) will be

12 deposited;

13 (5) All remaining funds from previous general obligation bond issues that have not

14 otherwise been allocated.

15 (c) Effective July 1, 2019, ninety-five percent (95%) of ~~All~~ all funds collected pursuant to

16 this section shall be deposited in the Rhode Island highway maintenance account and shall be used

17 only for the purposes set forth in this chapter. The remaining funds shall be retained as general

18 revenues to partially offset cost of collections.

19 (d) Unexpended balances and any earnings thereon shall not revert to the general fund but

20 shall remain in the Rhode Island highway maintenance account. There shall be no requirement that

21 monies received into the Rhode Island highway maintenance account during any given calendar

22 year or fiscal year be expended during the same calendar year or fiscal year.

23 (e) The Rhode Island highway maintenance account shall be administered by the director,

24 who shall allocate and spend monies from the fund only in accordance with the purposes and

25 procedures set forth in this chapter.

26 39-18.1-5. Allocation of funds.

27 (a) The monies in the highway maintenance fund to be directed to the department of

28 transportation pursuant to subsection (a)(1) of this section shall be allocated through the

29 transportation improvement program process to provide the state match for federal transportation

30 funds, in place of borrowing, as approved by the state planning council. The expenditure of moneys

31 in the highway maintenance fund shall only be authorized for projects that appear in the state's

32 transportation improvement program.

33 (b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the

34 department of transportation will allocate necessary funding to programs that are designed to

1 eliminate structural deficiencies of the state's bridge, road, and maintenance systems and

2 infrastructure.

3 (c) Provided, further, that beginning July 1, 2015, five percent (5%) of available proceeds

4 in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island

5 public transit authority for operating expenditures.

6 (d) Provided, further, that from July 1, 2017, ~~through June 30, 2019~~ and annually thereafter,

7 in addition to the amount above, the Rhode Island public transit authority shall receive an amount

8 of not less than five million dollars ($5,000,000) each fiscal year.

9 (e) Provided, further, that the Rhode Island public transit authority shall convene a

10 coordinating council consisting of those state agencies responsible for meeting the needs of low-

11 income seniors and persons with disabilities, along with those stakeholders that the authority deems

12 appropriate and are necessary to inform, develop, and implement the federally required

13 Coordinated Public Transit Human Services Transportation Plan.

14 The council shall develop, as part of the state's federally required plan, recommendations

15 for the appropriate and sustainable funding of the free-fare program for low-income seniors and

16 persons with disabilities, while maximizing the use of federal funds available to support the

17 transportation needs of this population.

18 The council shall report these recommendations to the governor, the speaker of the house

19 of representatives, and the president of the senate no later than November 1, 2018.

20 SECTION 3. This article shall take effect upon passage.

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art.009/10/009/9/009/8/009/7/009/6/009/5/009/4/009/3/009/2

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1 ARTICLE 9

2 RELATING TO EDUCATION

3 SECTION 1. Sections 16-7-20 and 16-7-21 of the General Laws in Chapter 16-7 entitled

4 "Foundation Level School Support [See Title 16 Chapter 97 - The Rhode Island Board of Education

5 Act]" are hereby amended to read as follows:

6 16-7-20. Determination of state's share.

7 (a) For each community the state's share shall be computed as follows: Let

8 R = state share ratio for the community.

9 v = adjusted equalized weighted assessed valuation for the community, as defined in

10 § 16-7-21(3).

11 V = sum of the values of v for all communities.

12 m = average daily membership of pupils in the community as defined in§ 16-7-22(3).

13 M = total average daily membership of pupils in the state.

14 E = approved reimbursable expenditures for the community for the reference year minus

15 the excess costs of special education, tuitions, federal and state receipts, and other

16 income.

17 Then the state share entitlement for the community shall be RE where

18 R = 1 - 0.5vM/(Vm) through June 30, 2011, and R = 1 - 0.475 vM/(Vm) beginning on July

19 1, 2011 and thereafter.

20 Except that in no case shall R be less than zero percent (0%).

21 (b) Whenever any funds are appropriated for educational purposes, the funds shall be used

22 for educational purposes only and all state funds appropriated for educational purposes must be

23 used to supplement any and all money allocated by a city or town for educational purposes and in

24 no event shall state funds be used to supplant, directly or indirectly, any money allocated by a city

25 or town for educational purposes. The courts of this state shall enforce this section by writ of

26 mandamus.

27 (c) Notwithstanding the calculations in subsection (a), the hospital school at the Hasbro

28 Children's Hospital shall be reimbursed one hundred percent (100%) of all expenditures approved

29 by the board of regents for elementary and secondary education in accordance with currently

30 existing rules and regulations for administering state aid, and subject to annual appropriations by

1 the general assembly including, but not limited to, expenditures for educational personnel, supplies,

2 and materials in the prior fiscal year.

3 (d) In the event the computation of the state's share for any local education agency as

4 outlined in subsection (a) is determined to have been calculated incorrectly after the state budget

5 for that fiscal year has been enacted, the commissioner of elementary of secondary education shall

6 notify affected local education agencies, the senate president and the speaker of the house within

7 fifteen (15) days of the determination.

8 (e) Realignment of aid payments to the affected local education agencies pursuant to

9 subsection (d) shall occur in the following fiscal year:

10 (1) If the determination shows aid is underpaid to the local education agency, any amounts

11 owed shall be paid in equal monthly installments.

12 (2) If the determination shows aid was overpaid, the department of elementary and

13 secondary education shall recapture some amount of the aid from the overpaid local education

14 agency. The amount to be withheld shall be equal to the amount of the overpayment prorated to the

15 number of full months remaining in the fiscal year when the notification required in subsection (d)

16 was made.

17 16-7-21. Determination and adjustment of equalized weighted assessed valuation.

18 On or before August 1 of each year the division of property valuation within the department

19 of revenue shall determine and certify to the commissioner of elementary and secondary education

20 the equalized weighted assessed valuation for each city and town in the following manner:

21 (1) The total assessed valuations of real and tangible personal property for each city and

22 town as of December 31 of the third preceding calendar year shall be weighted by bringing the

23 valuation to the true and market value of real and tangible personal property. The total assessed

24 valuations of real and tangible personal property for all cities and towns shall be applied to the true

25 and market valuations of the property for all cities and towns and the resulting percentage shall

26 determine the average throughout the state. This percentage applied to the sum of the total true and

27 market value of real and tangible personal property of each city and town shall be the equalized

28 weighted assessed valuation of each city and town.

29 (2) The equalized weighted assessed valuation for each city and town shall be allocated to

30 the particular city or town, and in the case of a regional school district which does not service all

31 grades, except the Chariho regional high school district, the commissioner of elementary and

32 secondary education shall apportion that proportion of the equalized weighted assessed valuation

1 of the member cities and towns shall be appropriately reduced.

2 (3) The equalized weighted assessed valuation for each community as allocated or

3 apportioned in accordance with subdivision (2) of this section shall be adjusted by the ratio which

4 the median family income of a city or town bears to the statewide median family income as reported

5 in the latest available federal census data. The total state adjusted equalized weighted assessed

6 valuation shall be the same as the total state equalized weighted assessed valuation.

7 (4) In the event that certified data is later determined to be incorrect, the division of

8 property valuation in conjunction with the commissioner of elementary and secondary education,

9 shall inform local education agencies, the senate president and the speaker of the house of the

10 issue(s) within five (5) days of the determination.

11 SECTION 2. Legislative findings and intent. The general assembly hereby finds and

12 declares that:

13 (1) The University of Rhode Island has become a public research university educating more

14 than eighteen thousand (18,000) students annually, and offering opportunities to study in more than

15 ninety (90) bachelor’s degree, more than seventy (70) graduate degree, and more than twenty (20)

16 certificate and non-degree programs.

17 (2) The aspirations of high school graduates and their families require the continuous

18 innovation and transformation of the university and its academic programs.

19 (3) The shrinking and shifting demographics of high school graduates in the region coupled

20 with the increased competitiveness of the higher education marketplace requires the university to

21 be strategic, nimble and innovative in its recruitment, financial aid and academic offerings in order

22 to be successful.

23 (4) The University of Rhode Island’s peer institutions and aspirational competitor

24 institutions have governing bodies solely dedicated to the success of their mission and focus on

25 these higher education trends and best practices for their public research university, and

26 (5) The University of Rhode Island would benefit from having a Board of Trustees entirely

27 committed to exploring opportunities, addressing challenges, and creating new economic

28 opportunities and partnerships for the university.

29 (6) The general assembly finds that the establishment of a University of Rhode Island board

30 of trustees is necessary to effectuate these goals for the governance and support of the University

31 of Rhode Island.

32 SECTION 3. Sections 16-32-2, 16-32-2.1, 16-32-5, 16-32-9, 16-32-10, 16-32-11, 16-32-

1 amended to read as follows:

2 16-32-2. ~~Continuation of powers of board.~~ Board of Trustees established.

3 ~~The change in name shall in no way affect the powers and duties of the board of governors~~

4 ~~for higher education defined in chapter 59 of this title; and the board of governors for higher~~

5 ~~education shall be responsible for the control, management, and operation of the University of~~

6 ~~Rhode Island in the same manner as previously it was responsible for the control, management, and~~

7 ~~operation of it under the name of Rhode Island State College.~~

8 (a) There is hereby created a board of trustees for the University of Rhode Island,

9 sometimes referred to as the "board" or "board of trustees", which shall be and is constituted a

10 public corporation, empowered to sue and be sued in its own name, to borrow money, to

11 compromise and settle claims, to have a seal, and to make and execute contracts and other

12 instruments necessary or convenient to the exercise of its powers, and to exercise all the powers, in

13 addition to those specifically enumerated in this chapter, usually appertaining to public corporations

14 entrusted with control of postsecondary educational institutions and functions. Upon its

15 organization, the board shall be vested with the legal title to all property, real and personal, now

16 owned by and/or under the control or in custody of the council on postsecondary education for the

17 use of the University of Rhode Island including all its departments, divisions, and branches,

18 sometimes referred to as the property.

19 (b) The board is empowered to hold and operate the property in trust for the state; to

20 acquire, hold, and dispose of the property and other like property as deemed necessary for the

21 execution of its corporate purposes. The board is made successor to all powers, rights, duties, and

22 privileges for the University of Rhode Island formerly belonging to the council on postsecondary

23 education pertaining to postsecondary education and the board of governors for higher education.

24 (c) The board shall be the employer of record for the university. It shall retain all authority

25 formerly vested in the council on postsecondary education and the board of education regarding

26 the employment of faculty and staff at the University of Rhode Island. The board shall appoint the

27 president of the university and shall review their performance on an annual basis.

28 (1) The board is empowered to enter into contracts and agreements with the council on

29 postsecondary education and/or the department of administration related to employee benefits,

30 including but not limited to retirement benefits, health, dental, vision and life insurance, disability

31 insurance, workers’ compensation, and tuition waivers to maximize the state’s and university’s

32 purchasing and investment portfolio and educational opportunities for the benefit of its employees.

1 established pursuant to § 16-32-2.2 shall be transferred from the council on postsecondary

2 education to the board.

3 (d) The board shall make rules and regulations for the control and use of all public

4 properties and highways under its care, and for violations of those rules and regulations; penalties,

5 up to one hundred dollars ($100) and costs for any one offense, may be imposed by any district

6 court or police court in the city or town where the violation occurs; and, in general, the board shall

7 take all actions necessary for the proper execution of the powers and duties granted to, and imposed

8 upon, the board by the terms of this chapter.

9 (e) The board shall make rules and regulations pursuant to chapter 2 of title 37 to implement

10 its responsibilities as a public agency for procurement purposes as defined in § 37-2-7(16).

11 (f) The board shall evaluate data on which to base performance of the university as

12 described in subsection (g) of this section which shall be defined by the president of the university.

13 These measures may include and incorporate outcomes or goals from multiple, previous years. The

14 lack of information from previous years, however, will not affect the use of performance-based

15 measures.

16 (g) The University of Rhode Island shall have unique measures consistent with its purpose,

17 role, scope, and mission. The board shall provide faculty and students an opportunity to provide

18 input on the development of performance measures.

19 (1) The performance-based measures shall include, but not be limited to, the following

20 metrics:

21 (i) The number and percentage, including growth in relation to enrollment and prior years

22 of bachelor's degrees awarded to first-time, full-time students within four (4) years and six (6)

23 years, including summer graduates;

24 (ii) The number of degrees awarded that are tied to Rhode Island's high demand, high-wage

25 employment opportunities consistent with the institution's mission;

26 (iii) One metric that applies only to the university, in consultation with the president, which

27 shall consider faculty, staff and student input; and

28 (iv) Any other metrics that are deemed appropriate by the board.

29 (2) Weight may be assigned to any of the aforementioned metrics to reinforce the mission

30 of the university, the economic needs of the state, and the socio-economic status of the students.

31 (h) The board shall hold the university accountable for developing and implementing

32 transfer pathways for students from the Community College of Rhode Island and Rhode Island

33 College.

1 (2) A detailed report on current student enrollments for each class at the university by race

2 and gender, by academic department, and by outreach program (e.g. talent development),

3 guaranteed admissions program, and the current levels of funding and staff support for each of

4 these programs.

5 ~~(3) A report on the current status of the African and Afro-American studies programs at~~

6 ~~the university and a five (5) year budgetary history of the programs along with projections for~~

7 ~~budgetary support for the next two (2) years.~~

8 ~~(4)~~(3) A plan for recruitment of African American and Hispanic faculty into tenure track

9 positions at the university with specific reference to and planned involvement with the New

10 England higher education's minority faculty recruitment and development plan.

11 ~~(5)~~(4) Copies of the report shall be furnished to the ~~council of postsecondary education and~~

12 ~~the board of education~~ board of trustees.

13 (f) To assist the board of trustees in preparation and maintenance of a three (3) year

14 strategic funding plan for the university; to assist the board in the preparation and presentation

15 annually to the state budget officer in accordance with § 35-3-4 of a total university budget.

16 (g) To monitor, publish, and report to the board of trustees the level of performance on all

17 metrics of the universities set forth in § 16-32-2 and in accordance with this chapter. The president

18 shall revise the metrics at a time when performance has reached a level pre-defined by the board.

19 Future metrics may further goals identified by the board, the board of education and the governor's

20 workforce board, and the purpose and mission of the university. The university shall publish its

21 performance on all of its associated metrics prescribed in this chapter on its website.

22 16-32-5. Authority over experiment station.

23 The ~~board of governors for higher education~~ board of trustees shall have authority over the

24 experiment station of the university located in the town of South Kingstown.

25 16-32-9. Annual appropriations.

26 (a) The general assembly shall annually appropriate any sum as it may deem sufficient for

27 the purpose of defraying the expenses of the university, the appropriation to be expended under the

28 direction of the trustees and officers of the university. The state controller is authorized and directed

29 to draw his or her orders upon the general treasurer for the payment of the appropriations or so

30 much of the sums that are necessary for the purposes appropriated, upon the receipt by him or her

31 of proper vouchers as the board of trustees may by rule provide. The board shall receive, review,

32 and adjust the budget for the university and present the budget under the requirements of § 35-3-4.

33 (b) Any tuition or fee increase schedules in effect for the university shall be received by

34 the board of trustees for allocation for the fiscal year for which state appropriations are made to the

1 board by the general assembly; provided that no further increases may be made by the board for

2 the year for which appropriations are made.

3 (c) All housing, dining, and other auxiliary facilities at the university shall be self-

4 supporting and no funds shall be appropriated by the general assembly to pay operating expenses,

5 including principal and interest on debt services, and overhead expenses for the facilities. Any debt

6 service costs on general obligation bonds presented to the voters in November 2000 and November

7 2004 or appropriated funds from the Rhode Island Capital Plan Fund for the housing auxiliaries at

8 the University of Rhode Island shall not be subject to this self-supporting requirement in order to

9 provide funds for the building construction and rehabilitation program.

10 (d) The additional costs to achieve self-supporting status shall be by the implementation of

11 a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,

12 operating expenses, principal, and interest on debt services, and overhead expenses.

13 (e) Notwithstanding paragraphs (a) and (c) of this section or any provisions of title 16, to

14 the extent necessary to comply with the provisions of any outstanding bonds issued by the Rhode

15 Island Health and Educational Building Corporation or outstanding Lease Certificates of

16 Participation, in either case, issued for the benefit of the University of Rhode Island, the

17 Community College of Rhode Island, and/or Rhode Island College, to the extent necessary to

18 comply with the provisions of any such bonds or certificates of participation, the general assembly

19 shall annually appropriate any such sums it deems necessary from educational and general revenues

20 (including, but not limited to tuition) and auxiliary enterprise revenues derived from the University

21 of Rhode Island, the Community College of Rhode Island and Rhode Island College, to be allocated

22 by the council on postsecondary education or by the board of trustees, as appropriate, in accordance

23 with the terms of the contracts with such bondholders or certificate holders.

24 16-32-10. Award of degrees -- Curriculum and government.

25 The board of trustees, with the approval of the president and a committee of the faculty of

26 the university, shall award academic degrees and diplomas and confer honors in the same manner

27 as is customary in American colleges. It shall also be the duty of the president and a committee of

28 the faculty, with the approval of the ~~board of governors for higher education~~ board of trustees, to

29 arrange courses of study conforming to all acts of Congress, and prescribe any qualifications for

30 the admission of students and any rules of study, exercise, discipline, and government as the

31 president and committee may deem proper.

32 16-32-11. Power to guarantee loans.

33 The ~~board of governors for higher education~~ board of trustees is authorized and empowered

34 to carry out the provisions of §§ 16-32-12 through 16-32-14 in regard to the guaranty of loans made

1 to societies and students at the university.

2 16-32-12. Acquisition of land -- Guaranty of loans to societies of students.

3 The ~~board of governors for higher education~~ board of trustees is authorized and empowered

4 on behalf of the University of Rhode Island to acquire land and also to guarantee in the name of

5 the state approved loans made to societies of students at the university, for the purchase or

6 construction, upon lands owned by the university, of society houses which shall serve as student

7 dormitories. Any loans approved, upon default, shall become state obligations in the same manner

8 as any state bond.

9 16-32-15. Assumption of defaulted obligations -- Lien on property.

10 Whenever default is made on the part of a society in the payment of loans guaranteed under

11 the provisions of § 16-32-12, or any part of them, the ~~board of governors for higher education~~ board

12 of trustees is authorized to assume the obligation and to make required payments on principal and

13 interest from any of the appropriations available for the University of Rhode Island. In the event of

14 a default, in cases where that board assumes the obligation of a society, the state shall have a lien

15 subject to any mortgages or encumbrances existing at the time on any and all property of the society.

16 The lien may be released after the reimbursement to the state of all payments made on behalf of the

17 society, plus accrued interest.

18 16-32-25. Establishment of college of pharmacy fund.

19 All money received pursuant to the provisions of chapter 3644 of the Public Laws of 1956

20 shall be deemed to be trust funds to be held by the general treasurer or by the University of Rhode

21 Island Foundation, as provided in § 16-32-26, in a special fund the income of which shall be made

22 available to the ~~board of governors for higher education~~ board of trustees to be applied by it solely

23 for use as scholarship grants in the field of pharmacy and allied sciences, in any manner and under

24 any conditions as the board of governors for higher education may determine. The board of

25 governors for higher education is authorized and empowered, from time to time, as occasion may

26 require, to draw on the general treasurer or on the University of Rhode Island Foundation, for the

27 annual income of the fund, or so much of this amount as may be necessary, to carry out this

28 objective.

29 16-32-26. Management of college of pharmacy fund.

30 (a) The general treasurer shall have the care and management of the fund with full power

31 to regulate the custody and safekeeping of all money and evidences of property belonging to the

32 fund. The treasurer shall deposit, subject to his or her order, to the use of this fund, all dividends,

33 interest, or income arising from it, in any bank or banks, trust company or trust companies, in which

34 funds of the state may be lawfully kept. The treasurer may invest and reinvest, in his or her

1 discretion, the money in the fund at any time and the dividends, interest, and income in any

2 securities or investments in which the deposits in savings banks and participation deposits in banks

3 and trust companies may be legally invested. The treasurer may change and vary the investments

4 from time to time, and he or she may sell and dispose of any investments made, when necessary to

5 meet the draft of the ~~board of governors for higher education~~ board of trustees as provided in § 16-

6 32-25.

7 (b) The general treasurer shall, upon the order of the governor to do so, transfer to the

8 University of Rhode Island Foundation created by act of the general assembly at its January 1957

9 session all money and evidences of property comprising the fund, and then his or her duties with

10 respect to the fund shall cease, and the foundation shall after this hold and administer the fund with

11 all the powers and subject to all the duties imposed upon it by the act of the general assembly with

12 respect to other funds held by the foundation; provided, that the fund shall be held by the foundation

13 as a special fund and shall not be mingled with other funds held by the foundation, and the net

14 income of the fund shall be devoted exclusively to the object specified in § 16-32-25.

15 SECTION 4. Sections 16-32.1-2 and 16-32.1-8 of the General Laws in Chapter 16-32.1

16 entitled "The University of Rhode Island Research Foundation Act [See Title 16 Chapter 97 - The

17 Rhode Island Board of Education Act]" are hereby amended to read as follows:

18 16-32.1-2. Creation and powers.

19 (a) There is hereby authorized, created and established a public corporation having a legal

20 existence distinct from the state and not constituting a department of state government, to be known

21 as the University of Rhode Island Research Foundation, with such powers as are set forth in this

22 chapter, for the purposes of the development of scientific research, technology, commercialization

23 of intellectual property and such other purposes as may be necessary to develop, promote and

24 enhance scientific research and technology at the University of Rhode Island.

25 (b) The research foundation is authorized, created and established for the benefit of the

26 University of Rhode Island and shall be organized exclusively for charitable, educational and

27 scientific purposes of the University of Rhode Island within the meaning of § 501(c)(3) of the

28 Internal Revenue Code with the following powers and purposes:

29 (1) To aid and assist the University of Rhode Island in the establishment, development and

30 fostering of scientific research and technology which will further the learning opportunities,

31 programs, services and enterprises of the University and of the state of Rhode Island;

32 (2) To assist in providing research programs at the University of Rhode Island which will

33 provide for the advancement of education and educational programs at the University of Rhode

34 Island and which will provide for opportunities to individuals for learning and training in subjects

1 useful to the individual and beneficial to the community;

2 (3) To promote, encourage and foster the education and training services, scientific

3 investigations, technology development and technology commercialization at the University of

4 Rhode Island;

5 (4) To pursue, obtain and protect intellectual property rights (including patents, trademarks,

6 tangible materials and copyrights) in and to all valuable intellectual property flowing from or

7 belonging to the University of Rhode Island and to administer such intellectual property in

8 conformity with applicable state and federal laws;

9 (5) To carry on any other lawful purpose within the meaning of § 501(c)(3) of the Internal

10 Revenue Code in connection with its purposes.

11 (c) The research foundation and its corporate existence shall continue until terminated by

12 law or until the corporation shall cease entirely and continuously to conduct or be involved in any

13 business or transactions in furtherance of its purposes. Upon termination of the research foundation

14 and its corporate existence, all of its rights, assets and properties shall pass to and be vested in the

15 ~~board of governors for higher education~~ board of trustees for the benefit of the University of Rhode

16 Island.

17 16-32.1-8. Annual report and audit.

18 The research foundation shall submit to the ~~board of governors for higher education~~ board

19 of trustees an audited report of its activities for the preceding fiscal year. The report shall set forth

20 a complete operating and financial statement covering the research foundation operations during

21 the preceding fiscal year. The research foundation shall cause an independent audit of its books and

22 accounts to be made at least once each fiscal year.

23 SECTION 5. Chapter 16-32 of the General Laws entitled "University of Rhode Island [See

24 Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby amended by adding

25 thereto the following sections:

26 16-32-2.2. Appointment and removal of the board of trustees.

27 (a) There is hereby established a board of trustees for the University of Rhode Island

28 consisting of seventeen (17) members. The governor shall appoint the members, with the advice

29 and consent of the senate, to serve on the board of trustees, until the expiration of their term and

30 their successor is appointed. In making these appointments the governor shall give due

31 consideration to recommendations from the president of the University of Rhode Island and at least

32 three (3) of those members appointed by the governor shall be residents of the State of Rhode

33 Island, at least one of those members shall be selected from a list of names of at least five (5)

34 individuals submitted by the speaker of the house of representatives, and at least one of those

1 members shall be selected from a list of names of at least five (5) individuals submitted by the

2 president of the senate. In addition, the president of the University of Rhode Island shall appoint

3 one faculty member and one student member who shall be a full-time student in good standing at

4 the university and who shall both serve in a non-voting, ex officio capacity for a single two (2) year

5 term. The chair of the board of education and the chair of the council on postsecondary education

6 shall serve in a non-voting, ex-officio capacity on the board of trustees. Six (6) of the members

7 initially appointed pursuant to this section shall serve terms of three (3) years; seven (7) members

8 initially appointed pursuant to this section shall serve terms of two (2) years, including the member

9 appointed from the list submitted by the speaker of the house of representatives and the member

10 appointed from the list submitted by the president of the senate; and, four (4) members initially

11 appointed pursuant to this section shall serve terms of one year. Thirteen (13) voting members of

12 the board shall constitute a quorum and the vote of a majority of those present and voting shall be

13 required for action.

14 (b) After the initial terms of appointment have expired, the governor shall appoint nine (9)

15 members with the advice and consent of the senate to serve as members of the board of trustees

16 with two (2) members appointed for a term of three (3) years; with two (2) members appointed for

17 a term of two (2) years, including the member appointed from the list submitted by the speaker of

18 the house of representatives and the member appointed from the list submitted by the president of

19 the senate; and with two (2) members appointed for a term of one year and shall be eligible to be

20 reappointed to a term of two (2) years. In making these appointments the governor shall give due

21 consideration to recommendations from the president of the University of Rhode Island and at least

22 three (3) of those members appointed by the governor shall be residents of the State of Rhode

23 Island, at least one of those members shall be selected from a list of names of at least five (5)

24 individuals submitted by the speaker of the house of representatives, and at least one of those

25 members shall be selected from a list of names of at least five (5) individuals submitted by the

26 president of the senate. The remaining eight (8) voting members shall be self-perpetuating members

27 appointed by the board pursuant to rules adopted by the board regarding the nomination and

28 appointment of members and shall serve terms as defined by the board pursuant to the adopted

29 rules and be eligible for reappointment. In making these appointments the board shall give due

30 consideration to recommendations from the president of the University of Rhode Island.

31 (c) A majority of the board shall elect the chair of the board from among the seventeen (17)

32 voting board members pursuant to rules and regulations adopted by the board establishing the

33 procedure for electing a chair.

34 (d) Public members of the board shall be removable by the appointing authority of the

1 member for cause only, and removal solely for partisan or personal reasons unrelated to capacity

2 or fitness for the office shall be unlawful. No removal shall be made for any cause except after ten

3 (10) days' notice in writing of specific charges, with opportunity for the member to be present in

4 person and with counsel at a public hearing before the appointing authority, to introduce witnesses

5 and documentary evidence in his or her own defense, and to confront and cross-examine adversary

6 witnesses; and appeal shall lie to the superior court from the governor's determination.

7 16-32-32. Exemption from provisions of administrative procedures act.

8 The provisions of the administrative procedures act, chapter 35 of title 42, shall not apply

9 to this chapter.

10 16-32-33. Receipts from sources other than appropriations.

11 (a) Notwithstanding any general laws to the contrary, all receipts from all sources other

12 than state appropriations shall not be deposited into the general fund of the state, but shall be

13 deposited by the general treasurer of the state into a restricted account for the benefit of the board

14 of trustees, and shall be paid out by the treasurer upon the order of the board, without the necessity

15 of appropriation or re-appropriation by the general assembly.

16 (b) The board of trustees shall ensure that the university has a structure in place to prohibit

17 the university from accepting funds that would interfere with or restrict academic freedom at the

18 university. Nothing contained in this subsection shall be construed in a way as to prohibit a donor

19 from earmarking funds for a particular purpose or use including, but not limited to, research,

20 scholarships, construction, or development.

21 16-32-34. Fiscal accounts -- Receipts -- Petty cash funds.

22 (a) The treasurer of the University of Rhode Island, as appointed by the board of trustees,

23 shall:

24 (1) Keep an accurate account of his or her receipts and expenditures, which shall be audited

25 by the state controller; and

26 (2) Turn over to the general treasurer at monthly intervals all sums of money received by

27 him or her during the preceding month which shall be credited to the proper accounts and funds by

28 the general treasurer.

29 (b) The state controller shall establish an imprest fund or petty cash fund for the use of the

30 treasurer of the university for expenditures of any nature as may be approved by the state controller.

31 16-32-35. Audit of expenditures.

32 The pre-audit of all expenditures under authority of the board by the state controller

33 provided for in § 35-6-1 shall be purely ministerial, concerned only with the legality of the

34 expenditure and the availability of the funds, and in no event shall the state controller interpose his

1 or her judgment regarding the wisdom or expediency of any item or items of expenditure.

2 16-32-36. Freedom from budget and lease control by other agencies.

3 In order that the board of trustees may control the personnel and equipment of the

4 university in the interest of educational efficiency, the board and the university are exempt from

5 the provisions of § 35-3-1(a)(5) relating to the employment of personnel, and from any provision

6 of § 42-20-8 which relates to the director of administration.

7 16-32-37. Applicability of merit system -- Teacher certification -- List of positions

8 transferable to classified service.

9 (a) The appointment, promotion, salaries, tenure, and dismissal of administrative,

10 instructional, and research employees, and secretarial employees not exceeding ten (10) in number,

11 and armed university police officers shall not be subject in any manner or degree to control by the

12 state personnel administrator or by any officer or board other than the board of trustees. The

13 certification of teachers at the University of Rhode Island is abolished, except for teachers who

14 elect to come or remain under it.

15 (b) All positions that are exempt from the merit system law, chapter 4 of title 36, which

16 become vacant or that are to be established, must be forwarded to the state personnel administrator,

17 who shall determine whether the position(s) in question shall remain in the board of trustees non-

18 classified service or be established in the classified service of the state.

19 (c) No position presently in the classified service of the state subject to the merit system

20 law, chapter 4 of title 36, shall be changed or modified so as to establish the position in the board

21 of trustees non-classified service.

22 (d) Faculty positions, presidents, vice presidents, deans, assistant deans, and student

23 employees of the university shall not be covered by the preceding provisions and shall remain in

24 the non-classified service of the board.

25 16-32-38. Permanent status for non-classified employees.

26 All non-classified employees of the board of trustees who shall have twenty (20) years, not

27 necessarily consecutive, of service credit, these credits having been earned in either the classified,

28 non-classified, or unclassified service or any combination of these, shall be deemed to have

29 acquired full status in their positions as the status is defined by § 36-4-59 with the base entry date

30 prior to August 8, 1996; provided, that this provision shall not apply to faculty employed by the

31 board nor shall it apply to non-classified employees who have acquired tenure as faculty.

32 16-32-39. Longevity payments -- Non-classified employees.

1 longevity payment in the amount of five percent (5%) of base salary after ten (10) years of service

2 and increasing to a total of ten percent (10%) of base salary after twenty (20) years of service. The

3 provisions of this section will apply only to employees with a pay grade under nineteen (19). The

4 longevity payments shall not be included in base salary.

5 (b) The board of trustees is authorized to promulgate regulations implementing the

6 provisions of this section.

7 (c) Beginning on July 1, 2011, notwithstanding any rule, regulation, or provision of the

8 public laws or general laws to the contrary, there shall be no further longevity increases for

9 employees of the board of trustees; provided, however, for employees with longevity provisions

10 pursuant to a collective bargaining agreement in effect on June 1, 2011, longevity increases shall

11 cease beginning on July 1, 2011 or beginning upon the expiration of the applicable collective

12 bargaining agreement, whichever occurs later. To the extent an employee has previously accrued

13 longevity payments, the amount of the longevity payment earned by the employee for the last pay

14 period in June, 2011 shall be added to the employee's base salary as of June 30, 2011, or in the case

15 of an employee with longevity provisions pursuant to a collective bargaining agreement in effect

16 on June 1, 2011, the amount of the longevity payment earned by the employee for the latter of the

17 last pay period in June or the last pay period prior to the expiration of the applicable collective

18 bargaining agreement shall be added to the employee's base salary as of June 30, 2011 or upon the

19 expiration of the applicable collective bargaining agreement, whichever occurs later.

20 16-32-40. Appointment of campus police.

21 (a) The board of trustees may appoint one or more persons who may act as police officers

22 upon the property and highways of the university subject to the control of the board and upon the

23 streets and highways immediately adjacent to those lands. The campus police officers shall protect

24 the property of the university, suppress nuisances and disturbances and breaches of the peace, and

25 enforce laws and regulations for the preservation of good order. They shall have the same powers

26 and authority as that conferred upon municipal police officers, including the power to arrest persons

27 for violations of state criminal statutes or for violations of city or town ordinances of the city or

28 town in which the institution is located. They shall be required to attend and successfully complete

29 the municipal police training academy before they shall be allowed to carry firearms. Additionally,

30 any campus police officer observing the violation of any rule or regulation of the board adopted

31 pursuant to this chapter, including, but not limited to, parking and traffic regulations, may issue a

32 summons in the manner and form set forth in §§ 31-27-12 or 31-41.1-1 returnable to the district

1 (b) Notwithstanding any other provision of law, all fines and penalties recovered for

2 violation of rules and regulations made under authority of this section shall be accounted for by the

3 appropriate authority, which shall forward all fines or penalties for nonmoving traffic violations to

4 the general treasurer for use by the college or university on whose campus the citation or violation

5 was issued in accordance with § 16-32-27.

6 16-32-41. Conflicts of interest.

7 No member of the board of trustees shall be employed in any position under the jurisdiction

8 of the board, nor contract in any manner for any purpose with the board; nor shall the board

9 purchase, sell, or lease any land, property, or supplies from or to any firm or business association

10 of which any member of the board is owner, part owner, or officer or director. No person related

11 by consanguinity or affinity in the first degree to any member of the board shall be employed in

12 any capacity under the board's jurisdiction.

13 16-32-42. Existing Bond Debt.

14 The board of trustees is authorized to take all actions, and execute and deliver all

15 agreements or instruments, necessary or convenient for the board to assume all of the obligations

16 on behalf of, and in replacement of, or jointly with the council on postsecondary education under

17 outstanding bonds issued by the Rhode Island Health and Educational Building Corporation or

18 outstanding Lease Certificates of Participation, in either case, issued for the benefit of the

19 University of Rhode Island, the Community College of Rhode Island, and/or Rhode Island College

20 as may be necessary to ensure, among other items, that the university continues to meet its

21 obligations under such bonds or certificates.

22 SECTION 6. Sections 16-59-1, 16-59-6, 16-59-9, 16-59-13, 16-59-18, 16-59-19, 16-59-22

23 and 16-59-26 of the General Laws in Chapter 16-59 entitled "Council on Postsecondary Education

24 [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" are hereby amended to read

25 as follows:

26 16-59-1. Council on Postsecondary Education established.

27 (a) There is created a council on postsecondary education, sometimes referred to as the

28 "council", which shall be and is constituted a public corporation, empowered to sue and be sued in

29 its own name, and to exercise all the powers, in addition to those specifically enumerated in this

30 chapter, usually appertaining to public corporations entrusted with control of postsecondary

31 educational institutions and functions. Upon its organization the council shall be invested with the

32 legal title (in trust for the state) to all property, real and personal, now owned by and/or under the

33 control or in custody of the board of regents for education for the use of ~~the University of Rhode~~

1 colleges of Rhode Island including all departments, divisions, and branches of these.

2 (b) The council is empowered to hold and operate the property in trust for the state; to

3 acquire, hold, and dispose of the property and other like property as deemed necessary for the

4 execution of its corporate purposes. The council is made successor to all powers, rights, duties, and

5 privileges formerly belonging to the board of regents for education pertaining to postsecondary

6 education and the board of governors for higher education.

7 (c) The council shall be the employer of record for ~~higher education~~ Rhode Island College

8 and the Community College of Rhode Island and the office of postsecondary education. It shall

9 retain all authority formerly vested in the board of education regarding the employment of faculty

10 and staff at ~~the public higher education institutions~~ Rhode Island College and the Community

11 College of Rhode Island.

12 (d) The council shall be the governing body for the Rhode Island division of higher

13 education assistance and shall retain all authority formerly vested in the higher education assistance

14 authority board of directors pursuant to § 16-57-7; however, any debts, liabilities, or obligations of

15 the council that result from its status as such governing body shall be payable solely from the

16 revenues or assets of reserve funds set forth and established by the prior Rhode Island higher

17 education assistance authority and/or the Rhode Island division of higher education assistance

18 created pursuant to chapter 57 of this title, and not from any assets or property held by the council

19 on public higher education pursuant to this chapter.

20 (e) The council on postsecondary education shall be the employer of record for the division

21 of higher education assistance.

22 (f) The council on postsecondary education, simultaneous with the transfer of authority to

23 the University of Rhode Island board of trustees pursuant to § 16-32-2, shall enter into a sublease

24 with the University of Rhode Island board of trustees for the space the University currently occupies

25 at the Rhode Island Nursing Education Center in Providence Rhode Island, such sublease being

26 coterminous with the Lease and incorporating the same terms, conditions and space allocations

27 currently in effect under the Lease, and R.I. Public Law 2014, Chapter 145, Article 4, Section 8,

28 and that certain Memorandum of Understanding dated January 7, 2017 among the Rhode Island

29 Office of Postsecondary Commissioner, the University of Rhode Island and Rhode Island College.

30 (g) The council is empowered to enter into contracts and agreements with the board of

31 trustees for the University of Rhode Island and/or the department of administration related to public

32 higher education employee benefits, including but not limited to retirement benefits, health, dental,

33 vision and life insurance, disability insurance, workers’ compensation, and tuition waivers to

34 maximize the state’s and council’s purchasing and investment portfolio and educational

1 opportunities for the benefit of its employees.

2 16-59-6. Commissioner of postsecondary education.

3 The council on postsecondary education, with approval of the board, shall appoint a

4 commissioner of postsecondary education, who shall serve at the pleasure of the council, provided

5 that his or her initial engagement by the council shall be for a period of not more than three (3)

6 years. For the purpose of appointing, retaining, or dismissing a commissioner of postsecondary

7 education, the governor shall serve as an additional voting member of the council. The position of

8 commissioner shall be in the unclassified service of the state and he or she shall serve as the chief

9 executive officer of the council on postsecondary education, the chief administrative officer of the

10 office of postsecondary commissioner, and the executive director of the division of higher

11 education assistance. The commissioner of postsecondary education shall have any duties that are

12 defined in this section and in this title and other additional duties as may be determined by the

13 council, and shall perform any other duties as may be vested in him or her by law. In addition to

14 these duties and general supervision of the office of postsecondary commissioner and the

15 appointment of the several officers and employees of the office, it shall be the duty of the

16 commissioner of postsecondary education:

17 (1) To develop and implement a systematic program of information gathering, processing,

18 and analysis addressed to every aspect of higher education in the state, especially as that

19 information relates to current and future educational needs.

20 (2) To prepare a strategic plan for higher education in the state aligned with the goals of

21 the board of education's strategic plan; to coordinate the goals and objectives of the higher public

22 education sector with the goals of the council on elementary and secondary education and activities

23 of the independent higher education sector where feasible.

24 (3) To communicate with, and seek the advice of those concerned with, and affected by the

25 board of education's and council's determinations.

26 (4) To implement broad policy as it pertains to the goals and objectives established by the

27 board of education and council on postsecondary education; to promote better coordination

28 between higher public education in the state, independent higher education in the state as provided

29 in subdivision (10) of this section, and pre k-12 education; to assist in the preparation of the budget

30 for public higher education; and to be responsible, upon direction of the council, for the allocation

31 of appropriations, the acquisition, holding, disposition of property.

32 (5) To be responsible for the coordination of the various higher educational functions of

33 the state so that maximum efficiency and economy can be achieved.

1 strategic funding plan for higher education; to assist the council in the preparation and presentation

2 annually to the state budget officer in accordance with § 35-3-4 of a total, public higher educational

3 budget.

4 (7) To recommend to the council on postsecondary education, after consultation with the

5 presidents, a clear and definitive mission for each ~~public institution of higher learning~~ college.

6 (8) To annually recommend to the council on postsecondary education, after consultation

7 with the presidents, the creation, abolition, retention, or consolidation of departments, divisions,

8 programs, and courses of study within the public colleges ~~and universities~~ to eliminate unnecessary

9 duplication in public higher education, to address the future needs of public higher education in the

10 state, and to advance proposals recommended by the presidents of the public colleges ~~and~~

11 ~~universities~~ pursuant to §§ ~~16-32-2.1,~~ 16-33-2.1 and 16-33.1-2.1.

12 (9) To supervise the operations of the office of postsecondary commissioner, including the

13 division of higher education assistance, and any other additional duties and responsibilities that

14 may be assigned by the council.

15 (10) To perform the duties vested in the council with relation to independent higher

16 educational institutions within the state under the terms of chapter 40 of this title and any other

17 laws that affect independent higher education in the state.

18 (11) To be responsible for the administration of policies, rules, and regulations of the

19 council on postsecondary education with relation to the entire field of higher education within the

20 state, not specifically granted to any other department, board, or agency and not incompatible with

21 law.

22 (12) To prepare standard accounting procedures for public higher education and all public

23 colleges ~~and universities~~.

24 (13) To carry out the policies and directives of the board of education and the council on

25 postsecondary education through the office of postsecondary commissioner and through utilization

26 of the resources of the public ~~institutions of higher learning~~ colleges.

27 (14) To enter into interstate reciprocity agreements regarding the provision of

28 postsecondary distance education; to administer such agreements; to approve or disapprove

29 applications to voluntarily participate in such agreements from postsecondary institutions that have

30 their principal place of business in Rhode Island; and to establish annual fees, with the approval of

31 the council on postsecondary education, for aforesaid applications to participate in an interstate

32 postsecondary distance education reciprocity agreement.

33 (15) To the extent necessary for participation, and to the extent required and stated in any

1 from out-of-state students in connection with, or related to, any Rhode Island postsecondary

2 institution, public or private, that has been approved to participate in said reciprocity agreement.

3 (16) To exercise all powers and duties of the division of higher education assistance as set

4 forth under the terms of chapter 57 of this title.

5 16-59-9. Educational budget and appropriations.

6 (a) The general assembly shall annually appropriate any sums it deems necessary for

7 support and maintenance of higher education in the state and the state controller is authorized and

8 directed to draw his or her orders upon the general treasurer for the payment of the appropriations

9 or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him

10 or her of proper vouchers as the council on postsecondary education may by rule provide. The

11 council shall receive, review, and adjust the budget for the office of postsecondary commissioner

12 and present the budget as part of the budget for higher education under the requirements of § 35-3-

13 4.

14 (b) The office of postsecondary commissioner and the institutions of public higher

15 education shall establish working capital accounts.

16 (c) Any tuition or fee increase schedules in effect for the institutions of public higher

17 education shall be received by the council on postsecondary education for allocation for the fiscal

18 year for which state appropriations are made to the council by the general assembly; provided that

19 no further increases may be made by the board of education or the council on postsecondary

20 education for the year for which appropriations are made. Except that these provisions shall not

21 apply to the revenues of housing, dining, and other auxiliary facilities at the university of Rhode

22 Island, Rhode Island college, and the community colleges including student fees as described in

23 P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch. 257

24 as amended.

25 (d) All housing, dining, and other auxiliary facilities at all public institutions of higher

26 learning shall be self-supporting and no funds shall be appropriated by the general assembly to pay

27 operating expenses, including principal and interest on debt services, and overhead expenses for

28 the facilities, with the exception of the mandatory fees covered by the Rhode Island promise

29 scholarship program as established by § 16-107-3. Any debt-service costs on general obligation

30 bonds presented to the voters in November 2000 and November 2004 or appropriated funds from

31 the Rhode Island capital plan for the housing auxiliaries at the university of Rhode Island and

32 Rhode Island college shall not be subject to this self-supporting requirement in order to provide

33 funds for the building construction and rehabilitation program. The institutions of public higher

34 education will establish policies and procedures that enhance the opportunity for auxiliary facilities

1 to be self-supporting, including that all faculty provide timely and accurate copies of booklists for

2 required textbooks to the public higher educational institution's bookstore.

3 (e) The additional costs to achieve self-supporting status shall be by the implementation of

4 a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,

5 operating expenses, principal, and interest on debt services, and overhead expenses.

6 (f) The board of education is authorized to establish a restricted-receipt account for the

7 Higher Education and Industry Centers established throughout the state to collect lease payments

8 from occupying companies, and fees from room and service rentals, to support the operation and

9 maintenance of the facilities. All such revenues shall be deposited to the restricted-receipt account.

10 (g) Notwithstanding paragraphs (a) and (d) of this section or any provisions of title 16, to

11 the extent necessary to comply with the provisions of any outstanding bonds issued by the Rhode

12 Island Health and Educational Building Corporation or outstanding Lease Certificates of

13 Participation, in either case, issued for the benefit of the University of Rhode Island, the

14 Community College of Rhode Island, and/or Rhode Island College, to the extent necessary to

15 comply with the provisions of any such bonds or certificates of participation, the general assembly

16 shall annually appropriate any such sums it deems necessary from educational and general revenues

17 (including, but not limited to, tuition) and auxiliary enterprise revenues derived from the University

18 of Rhode Island, the Community College of Rhode Island and Rhode Island College, to be allocated

19 by the council on postsecondary education or by the board of trustees of the University of Rhode

20 Island, as appropriate, in accordance with the terms of the contracts with such bondholders or

21 certificate holders.

22 16-59-13. Definitions.

23 Where in this chapter the phrase "public colleges" or "public institutions of higher learning"

24 or "public tax supported institutions of higher learning" or words of similar import are used they

25 shall be taken to mean ~~the University of Rhode Island,~~ Rhode Island College, and Community

26 College of Rhode Island, or any other of these public colleges, public institutions of higher learning,

27 or public tax supported institutions of higher learning other than the University of Rhode Island,

28 which may be created, individually or collectively, as appropriate.

29 16-59-18. Receipts from sources other than appropriations.

30 (a) All receipts from all sources other than state appropriations shall not be covered into

31 the general fund of the state, but shall be kept by the general treasurer of the state in a separate fund

32 for the board of governors for higher education, and shall be paid out by the treasurer upon the

33 order of the board, without the necessity of appropriation or re-appropriation by the general

34 assembly.

1 (b) The board of governors of higher education shall ensure that state colleges ~~and~~

2 ~~universities~~ have a structure in place to prohibit these colleges ~~and universities~~ from accepting

3 funds that would interfere with or restrict academic freedom at the state colleges ~~and universities~~.

4 Nothing contained in this subsection shall be construed in a way as to prohibit a donor from

5 earmarking funds for a particular purpose or use including but not limited to research, scholarships,

6 construction, or development.

7 16-59-19. Fiscal accounts -- Receipts -- Petty cash funds.

8 The treasurer of ~~the University of Rhode Island, and the treasurer of the~~ Rhode Island

9 College to be appointed by the board of governors for higher education, shall ~~each~~ keep an accurate

10 account of his or her receipts and expenditures which shall be audited by the state controller in

11 accordance with law. The treasurer of each college shall turn over to the general treasurer at

12 monthly intervals all sums of money received by him or her during the preceding month which

13 shall be credited to the proper accounts and funds by the general treasurer. The state controller shall

14 establish an imprest fund or petty cash fund for the use of the treasurer of each of the colleges for

15 expenditures of any nature as may be approved by the state controller.

16 16-59-22. Applicability of merit system -- Teacher certification -- List of positions

17 transferable to classified service.

18 (a) The appointment, promotion, salaries, tenure, and dismissal of administrative,

19 instructional, and research employees, and secretarial employees not exceeding ten (10) in number,

20 and armed college ~~and university~~ police officers of the state colleges shall not be subject in any

21 manner or degree to control by the personnel administrator or by any officer or board other than

22 the council on postsecondary education. ~~The certification of teachers at the University of Rhode~~

23 ~~Island is abolished, except for teachers who elect to come or remain under it.~~

24 (b) All positions that are exempt from the merit system law, chapter 4 of title 36, which

25 become vacant or that are to be established, must be forwarded to the personnel administrator, who,

26 in consultation with the deputy assistant commissioner of education in charge of personnel and

27 labor relations, shall determine whether the position(s) in question shall remain in the council on

28 postsecondary education non-classified service or be established in the classified service of the

29 state.

30 (c) No position presently in the classified service of the state subject to the merit system

31 law, chapter 4 of title 36, shall be changed or modified so as to establish the position in the council

32 on postsecondary education non-classified service.

33 (d) Faculty positions, presidents, vice presidents, deans, assistant deans, and student

34 employees of the higher-education institutions shall not be covered by the preceding provisions and

1 shall remain in the council on postsecondary education non-classified service.

2 16-59-26. The public and private partnership in education.

3 (a) Purpose. The state of Rhode Island recognizes that research is a primary mission of an

4 institution of higher education. While carrying out its research mission, the state further recognizes

5 that inventions of value to the public will be made by persons working in its public institutions of

6 higher education. The marketing of these inventions will contribute to job creation and to the

7 overall economic well-being of the state of Rhode Island and the nation. It is accordingly the policy

8 of the state to encourage such inventors and inventions and to take appropriate steps to aid the

9 inventor and ensure that the public receives the benefit. In facilitating this policy, the state

10 recognizes the need for cooperation between governmental agencies, private industries, and the

11 inventors themselves.

12 (b) Definitions. The following words and phrases used in § 16-59-26 have the following

13 meaning:

14 (1) "Conflict of interest policies and procedures relating to research and development"

15 refers to policies and procedures adopted by the Rhode Island board of governors for higher

16 education, or as it pertains to the University of Rhode Island, the board of trustees in consultation

17 with the Rhode Island ethics commission, and approved by the Rhode Island ethics commission;

18 (2) "Relationship" includes any interest, service, employment, gift, or other benefit or

19 relationship;

20 (3) "Research or development" means basic or applied research or development, including:

21 (i) The development or marketing of university-owned technology;

22 (ii) The acquisition of services of an official or employee, by an entity for research and

23 development purposes;

24 (iii) Participation in state economic development programs; or

25 (iv) The development or marketing of any technology on the premises of a public

26 institution of higher education by an official or employee of the institution.

27 (c) Policy.

28 (1) The Rhode Island board of governors for higher education, or as it pertains to the

29 University of Rhode Island, the board of trustees shall develop conflict of interest policies and

30 procedures based on the purposes expressed in art. 3, § 7 of the Constitution of the State of Rhode

31 Island, § 36-14-1, and in this section.

32 (2) The Rhode Island board of governors for higher education, or as it pertains to the

33 University of Rhode Island, the board of trustees shall consult with the Rhode Island ethics

34 commission in developing these policies and procedures and shall submit them to the Rhode Island

1 ethics commission for approval in order to insure conformity with the purposes expressed in art. 3,

2 § 7 of the Constitution of the State of Rhode Island, § 36-14-1, and in this section.

3 (d) Policy standards. The policies and procedures adopted by the board of governors for

4 higher education, or as it pertains to the University of Rhode Island, the board of trustees under

5 subsection (c) of this section shall:

6 (1) Require disclosure of any interest in, or employment by, or other relationship with an

7 entity for which an exemption under this section is claimed, on a form filed with the ethics

8 commission and the Rhode Island board of governors for higher education, or as it pertains to the

9 University of Rhode Island, the board of trustees and maintained as a public record at the

10 commission offices, the office of higher education, and at the interested public institution of higher

11 education;

12 (2) Require review of all disclosures by a designated official or officials, who shall

13 determine what further information must be disclosed and what restrictions shall be imposed by the

14 Rhode Island board of governors for higher education, or as it pertains to the University of Rhode

15 Island, the board of trustees to manage, reduce, or eliminate any actual or potential conflict of

16 interest;

17 (3) Include guidelines to ensure that interests and employment for which an exemption

18 under this section is claimed do not improperly give an advantage to entities in which the interests

19 or employment are maintained, lead to misuse of institution students or employees for the benefit

20 of entities in which the interests or employment are maintained, or otherwise interfere with the

21 duties and responsibilities of the exempt official or employee;

22 (4) Require approval by the president of the public institution of higher education of any

23 interest or employment for which an exemption is claimed under this section; and

24 (5) Require approval by the Rhode Island board of governors for higher education, or as it

25 pertains to the University of Rhode Island, the board of trustees.

26 (e) Relationship permitted. An official or employee at a public institution of higher

27 education may have a relationship, that would otherwise be prohibited by the Rhode Island Code

28 of Ethics in Government, with an entity engaged in research or development, or with an entity

29 having a direct interest in the outcome of research or development, only if the Rhode Island Board

30 of governors for higher education, or as it pertains to the University of Rhode Island, the board of

31 trustees has adopted policies and procedures in accordance with this section, and the official or

32 employee has complied with the policies and procedures. If the provisions of this section are not

33 met, the official or employee is not exempt from any relevant provisions of the Rhode Island Code

34 of Ethics in Government.

1 (f) Annual reporting. The board of governors for higher education, or as it pertains to the

2 University of Rhode Island, the board of trustees shall report annually to the governor, the president

3 of the senate and the speaker of the house of representatives, and the ethics commission the number

4 of approvals granted under this section and how the conflict of interest policies and procedures

5 adopted pursuant to this section have been implemented in the preceding year.

6 (g) Person not eligible. An official or employee who is a president, or vice-president at a

7 public institution of higher education in Rhode Island may not receive an exemption under this

8 section.

9 (h) Ethics commission review. The board of governors for higher education, or as it

10 pertains to the University of Rhode Island, the board of trustees, shall promptly notify the ethics

11 commission in writing of any exemption that is granted under this section. If the ethics commission

12 disagrees with an exemption that is granted pursuant to this section and the conflict of interest

13 policies and procedures relating to research and development adopted by the board of governors

14 for higher education, within thirty (30) calendar days after the receipt of the notice described in this

15 section, the ethics commission shall notify the board of governors for higher education reason for

16 its concern. Upon receipt of such notice from the ethics commission, the board of governors for

17 higher education, or as it pertains to the University of Rhode Island, the board of trustees shall

18 cause the matter to be re-examined at an open and public meeting pursuant to § 42-46-1 et seq.

19 SECTION 7. Section 16-59-28 of the General Laws in Chapter 16-59 entitled "Council on

20 Postsecondary Education [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is

21 hereby repealed.

22 ~~16-59-28. "Bachelors Degree in Three" program.~~

23 ~~(a) The Rhode Island board of governors for higher education shall establish and administer~~

24 ~~the "Bachelors Degree in Three" program. The board shall:~~

25 ~~(1) Establish guidelines for the "Bachelors Degree in Three" program.~~

26 ~~(2) Collaborate with the board of regents for elementary and secondary education to~~

27 ~~establish a seamless credit transfer system for high school students and other policies that might~~

28 ~~facilitate student participation in such a program.~~

29 ~~(3) Identify and propose any necessary changes to academic courses of study, support~~

30 ~~services, financial aid, and other policies and resources at the University of Rhode Island, Rhode~~

31 ~~Island College and the Community College of Rhode Island to ensure greater opportunities for~~

32 ~~students to complete bachelors degree programs in three (3) years.~~

33 ~~(4) Identify potential costs of the program, including costs to students, to the institutions,~~

34 ~~and to school districts, identify possible sources of external grant funding for a pilot program, and~~

1 ~~propose a funding structure for the program.~~

2 ~~(5) Investigate accreditation issues and federal financial aid rules that may be implicated~~

3 ~~by the program.~~

4 ~~(6) Identify units at the University of Rhode Island, Rhode Island College, and the~~

5 ~~Community College of Rhode Island that will assume administrative responsibility for the program.~~

6 ~~(7) Design, undertake and evaluate a three (3) year pilot program that will serve as a model~~

7 ~~for full-scale implementation.~~

8 ~~(b) The board shall present an initial report, recommendations and timeline to the general~~

9 ~~assembly on or by February 1, 2011, and the pilot program will begin with the fall academic~~

10 ~~semester of 2011.~~

11 SECTION 8. Sections 16-97-7 and 16-97-1 of the General Laws in Chapter 16-97 entitled

12 "The Rhode Island Board of Education Act" are hereby amended to read as follows:

13 16-97-1. Rhode Island board of education established.

14 (a) Effective January 1, 2013, there is created a board of education that shall be responsible

15 for and shall exercise the purposes, powers, and duties of, this chapter and chapters 59 and 60 of

16 this title. The board is responsible for the coordination of education from pre-k through higher

17 education and shall set goals and policies for the effective coordination of these public education

18 systems.

19 (b) The board of education shall consist of seventeen (17) public members appointed by

20 the governor with the advice and consent of the senate, eight (8) of whom shall be designated to

21 serve on the council for elementary and secondary education and eight (8) of whom shall be

22 designated to serve on the council for postsecondary education. The chairperson of the board shall

23 serve as a member of both councils. Six (6) of the members initially appointed pursuant to this

24 section shall serve terms of three (3) years; six (6) members initially appointed pursuant to this

25 section shall serve terms of two (2) years; and, four (4) members initially appointed pursuant to this

26 section shall serve terms of one year. To the greatest extent possible, the initial staggered terms

27 shall be equitably divided among the councils so as to protect against sudden changes in

28 membership and reversal of policy. Thereafter, all members appointed pursuant to this section shall

29 serve terms of three (3) years. At the expiration of their terms, members shall remain and continue

30 in their official capacity until their successor is appointed and qualified. Members shall not be

31 appointed to more than three (3), successive three-year (3) terms each; provided that the chair of

32 the board shall have no term and shall serve at the pleasure of the governor. Any vacancy among

33 the members of the board shall be filled by appointment of the governor for the remainder of the

34 unexpired term. In the selection and appointment of the board, the governor shall seek persons who

1 best serve the needs of the entire state. No person shall be eligible for appointment to the board

2 after the effective date of this act unless a resident of this state. Members of the board shall not be

3 compensated for their service in attending board or council meetings.

4 (c) The chair of the Governor's Workforce Board, or designee, ~~and~~ the chair of the Rhode

5 Island Commerce Corporation, or designee, and the chair of the University of Rhode Island board

6 of trustees, or designee, shall serve as non-voting, ex-officio members of the board.

7 (d) The governor shall select from the appointed members a chairperson and vice

8 chairperson. A quorum shall consist of nine (9) members of the board. A majority vote of those

9 present shall be required for action.

10 (e) Except as provided by subsection (b) of this section, members of the board shall be

11 removable by the governor for cause only. Removal solely for partisan or personal reasons

12 unrelated to performance, capacity, or fitness for the office shall be unlawful.

13 (f) The statutory responsibilities of the department of elementary and secondary education,

14 the commissioner of elementary and secondary education, and the commissioner of postsecondary

15 education shall remain unchanged.

16 (g) The chair of the board of education shall consult with the chairs of the council on

17 elementary and secondary education, the council on postsecondary education, the commissioner of

18 elementary and secondary education, and the commissioner of postsecondary education in

19 developing agendas, goals, policies, and strategic plans for the board.

20 16-97-7. Tuition waivers -- Disclosure as a prerequisite to receipt.

21 Notwithstanding any other provision of law, no employee of the state board of education,

22 or the board of trustees for the University of Rhode Island, his or her spouse, domestic partner or

23 dependent, shall receive a tuition waiver as a result of employment status with the state board of

24 education, or the board of trustees for the University of Rhode Island without first consenting to

25 the public disclosure of the existence and amount of the waiver. This section shall apply to any

26 tuition waivers, including, but not limited to, any such waiver at the Community College of Rhode

27 Island, Rhode Island College, and/or the University of Rhode Island.

28 SECTION 9. Section 16-101-1 of the General Laws in Chapter 16-101 entitled "Academic

29 Credit For Military Service" is hereby amended to read as follows:

30 16-101-1. Academic credit for military service.

31 (a) State public higher education institutions in the state shall honor the military training,

32 experience, correspondence courses and occupations of an individual who has served in the military

33 or armed forces of the United States by allowing academic credits that meet the standards of the

34 American Council on Education or equivalent standards for awarding academic credit, if the award

1 of the educational credit is based upon the institution's admission standards and its role, scope, and

2 mission. The board of education shall adopt policies or regulations requiring each institution to

3 award educational credits to a student enrolled in the institution, based upon the student's military

4 training or service when academically appropriate.

5 (b) The board of trustees for the University of Rhode Island, in consultation with the

6 president and the faculty senate, shall adopt policies or regulations requiring the award of

7 educational credits to a student enrolled at the university, based upon the student's military training

8 or service when academically appropriate.

9 SECTION 10. Sections 16-106-4 and 16-106-6 of the General Laws in Chapter 16-106

10 entitled "The Performance Incentive Funding Act of 2016" are hereby amended to read as follows:

11 16-106-4. ~~Performance incentive funding -- Rhode Island College and University of~~

12 ~~Rhode Island.~~ Performance incentive funding -- Rhode Island College.

13 (a) Beginning in FY 2018, funding for Rhode Island College ("RIC") ~~and the University~~

14 ~~of Rhode Island ("URI")~~ shall include a performance-based component utilizing all additional

15 allocations of otherwise unrestricted, higher-education general revenue greater than the base

16 amount received pursuant to the FY 2016 budget as enacted, of total unrestricted state higher-

17 education funding.

18 (b) Data on which to base performance measures as described in subsection (c) shall be

19 defined by the commissioner of postsecondary education, in consultation with the council on

20 postsecondary education. Measures shall begin to be collected in FY 2017.

21 These measures may include and incorporate outcomes or goals from multiple, previous

22 years. The lack of information from previous years, however, will not affect the use of performance-

23 based measures.

24 (c) Rhode Island College ~~and the University of Rhode Island~~ shall ~~each~~ have unique

25 measures consistent with ~~each institution's~~ its purpose, role, scope, and mission. The performance-

26 based measures shall include the following metrics:

27 (1) The number and percentage, including growth in relation to enrollment and prior years

28 of bachelor's degrees awarded to first-time, full-time students within four (4) years and six (6)

29 years, including summer graduates;

30 (2) The number of degrees awarded that are tied to Rhode Island's high demand, high-wage

31 employment opportunities consistent with the institution's mission;

32 (3) One measure that applies only to RIC, as agreed to by the commissioner of

33 postsecondary education and the president of RIC, who shall consider faculty, staff, and student

34 input; ~~and one measure that applies only to URI, as agreed to by the commissioner of postsecondary~~

1 ~~education and the president of URI, who shall consider faculty, staff and student input;~~ and

2 (4) Any other measures that are deemed appropriate by the council of postsecondary

3 education.

4 (d) Weight may be assigned to any of the aforementioned metrics to ~~either or both of the~~

5 ~~institutions to~~ reinforce the ~~missions~~ mission of RIC ~~and URI, respectively~~, the economic needs of

6 the state, and the socio-economic status of the students. The commissioner may consider the

7 ~~institutions'~~ institution's improvements in said metrics when determining whether it has satisfied

8 the annual measure despite not reaching the overall goal.

9 (e) The commissioner shall provide faculty and students an opportunity to provide input

10 on the development of performance measures.

11 16-106-6. Accountability -- Authority to revise and transparency.

12 (a) The commissioner of postsecondary education shall monitor, publish, and report to the

13 council on postsecondary education the level of performance on all metrics identified in accordance

14 with this chapter for the Community College of Rhode Island, and Rhode Island College~~, and the~~

15 ~~University of Rhode Island~~.

16 (b) The commissioner of postsecondary education, in consultation with the council of

17 postsecondary education, shall revise the metrics at a time when performance has reached a pre-

18 defined level. Future metrics shall further goals identified by the board of education and the

19 governor's workforce board, and the applicable purpose and mission of the institution of higher

20 education to which they apply.

21 (c) Each public higher-education institution shall publish its performance on all of its

22 associated metrics prescribed in this chapter on its website.

23 SECTION 11. Section 35-4-23.1 of the General Laws in Chapter 35-4 entitled "State

24 Funds" is hereby amended to read as follows:

25 35-4-23.1. Indirect cost recoveries by state agencies.

26 All state agencies shall apply for recovery of indirect costs when recovery is permissible

27 under federal statute and grant regulations. All funds received for indirect costs recovery shall be

28 turned over to the general treasurer and shall be placed in a restricted account in each agency for

29 the specific purposes designated through the annual budget process. The agency shall, through the

30 annual budget process, report to the general assembly the estimated amount of federal indirect cost

31 recoveries for the next fiscal year, together with the intended use of the funds. Nothing contained

32 in this section, however, shall conflict with the powers and duties granted the board of governors

33 for higher education and the board of regents for elementary and secondary education in chapters

1 chapter 32 of title 16.

2 SECTION 12. Section 37-2-7 of the General Laws in Chapter 37-2 entitled "State

3 Purchases" is hereby amended to read as follows:

4 37-2-7. Definitions.

5 The words defined in this section have the meanings set forth below whenever they appear

6 in this chapter, unless the context in which they are used clearly requires a different meaning or a

7 different definition is prescribed for a particular section, group of sections, or provision:

8 (1) "Business" means any corporation, partnership, individual, sole proprietorship, joint

9 stock company, joint venture, or any other legal entity through which business is conducted.

10 (2) "Change order" means a written authorization signed by the purchasing agent directing

11 or allowing the contractor to proceed with changes, alterations, or modifications to the terms,

12 conditions, or scope of work on a previously awarded contract

13 (3) "Chief purchasing officer" shall mean: (i) for a state agency, the director of the

14 department of administration, and (ii) for a public agency, the executive director or the chief

15 operational officer of the agency.

16 (4) "Construction" means the process of building, altering, repairing, improving, or

17 demolishing any public structures or building, or other public improvements of any kind to any

18 public real property. It does not include the routine maintenance or repair of existing structures,

19 buildings, or real property performed by salaried employees of the state of Rhode Island in the

20 usual course of their jobs.

21 (5) "Contract" means all types of agreements, including grants and orders, for the purchase

22 or disposal of supplies, services, construction, or any other item. It includes awards; contracts of a

23 fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of

24 job or task orders; leases; letter contracts; purchase orders; and construction management contracts.

25 It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not

26 include labor contracts with employees of state agencies.

27 (6) "Contract amendment" means any written alteration in the specifications, delivery

28 point, rate of delivery, contract period, price, quantity, or other contract provisions of any existing

29 contract, whether accomplished by unilateral action in accordance with a contract provision, or by

30 mutual action of the parties to the contract. It includes bilateral actions, such as supplemental

31 agreements, and unilateral actions, such as change orders, administrative changes, notices of

32 termination, and notices of the exercise of a contract option.

33 (7) "Contractor" means any person having a contract with a governmental body.

1 (9) "Designee" means a duly authorized representative of a person holding a superior

2 position.

3 (10) "Employee" means an individual drawing a salary from a state governmental entity.

4 (11) "State governmental entity" means any entity created as a legislative body or a public

5 or state agency by the general assembly or constitution of this state, except for municipal, regional,

6 or county governmental entities.

7 (12) "May" means permissive.

8 (13) "Negotiation" means contracting by either the method set forth in §§ 37-2-19, 37-2-

9 20, or 37-2-21.

10 (14) "Person" means any business, individual, organization, or group of individuals.

11 (15) "Procurement" means the purchasing, buying, renting, leasing, or otherwise obtaining

12 of any supplies, services, or construction. It also includes all functions that pertain to the obtaining

13 of any supply, service, or construction item, including a description of requirements, selection and

14 solicitation of sources, preparation, and award of contract, and all phases of contract administration.

15 (16) "Public agency" shall mean the Rhode Island industrial recreational building authority,

16 the Rhode Island commerce corporation, the Rhode Island industrial facilities corporation, the

17 Rhode Island refunding bond authority, the Rhode Island housing and mortgage finance

18 corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit

19 authority, the Rhode Island student loan authority, the Howard development corporation, the water

20 resources board corporate, the Rhode Island health and education building corporation, the Rhode

21 Island turnpike and bridge authority, the Blackstone Valley district commission, the Narragansett

22 Bay water quality management district commission, the Rhode Island telecommunications

23 authority, the convention center authority, the Channel 36 foundation, the Rhode Island lottery

24 commission their successors and assigns, any other body corporate and politic which has been or

25 will be created or established within this state excepting cities and towns, the University of Rhode

26 Island board of trustees for all purchases which are funded by restricted, sponsored, or auxiliary

27 monies, and the council on postsecondary education for all purchases which are funded by

28 restricted, sponsored, or auxiliary monies.

29 (17) "Purchase request" or "purchase requisition" means that document whereby a using

30 agency requests that a contract be entered into to obtain goods and/or services for a specified need,

31 and may include, but is not limited to, the technical description of the requested item, delivery

32 requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation

33 of suggested sources of supply, and information supplied for the making of any written

1 (18) "Purchasing agency" means any state governmental entity which is authorized by this

2 chapter, its implementing regulations, or by way of delegation from the chief purchasing officer to

3 contract on its own behalf rather than through the central contracting authority of the chief

4 purchasing officer.

5 (19) "Purchasing agent" means any person authorized by a governmental entity in

6 accordance with procedures prescribed by regulations, to enter into and administer contracts and

7 make written determinations and findings with respect to contracts. The term also includes an

8 authorized representative acting within the limits of authority. "Purchasing agent" also means the

9 person appointed in accordance with § 37-2-1.

10 (20) "Services" means the rendering, by a contractor, of its time and effort rather than the

11 furnishing of a specific end product, other than reports which are merely incidental to the required

12 performance of services. "Services" does not include labor contracts with employees of state

13 agencies.

14 (21) "Shall" means imperative.

15 (22) "State" means the state of Rhode Island and any of its departments or agencies and

16 public agencies.

17 (23) "Supplemental agreement" means any contract modification which is accomplished

18 by the mutual action of the parties.

19 (24) "Supplies" means all property, including, but not limited to, leases of real property,

20 printing, and insurance, except land or permanent interest in land.

21 (25) "Using agency" means any state governmental entity which utilizes any supplies,

22 services, or construction purchased under this chapter.

23 (26) As used in § 37-2-59, "architect" or "engineer" services means those professional

24 services within the scope of practice of architecture, professional engineering, or registered land

25 surveying pertaining to construction, as defined by the laws of this state. "Consultant" means any

26 person with whom the state and/or a public agency has a contract which contract provides for the

27 person to give direction or information as regards a particular area of knowledge in which the

28 person is a specialist and/or has expertise.

29 (27) For purposes of §§ 37-2-62 -- 37-2-70, "directors" means those members of a public

30 agency appointed pursuant to a statute who comprise the governing authority of the board,

31 commission, authority, and/or corporation.

32 (28) "State agency" means any department, commission, council, board, bureau,

33 committee, institution, or other governmental entity of the executive or judicial branch of this state

34 not otherwise established as a body corporate and politic, and includes, without limitation, the

1 council on postsecondary education except for purchases which are funded by restricted, sponsored,

2 or auxiliary moneys, the University of Rhode Island board of trustees for all purchases which are

3 funded by restricted, sponsored, or auxiliary monies, and the council on elementary and secondary

4 education.

5 (29) "Governmental entity" means any department, commission, council, board, bureau,

6 committee, institution, legislative body, agency, or government corporation of the executive,

7 legislative, or judicial branches of state, federal, and/or local governments.

8 (30) "Construction management at-risk" or "construction management at-risk services" or

9 "construction management at-risk delivery method" is a construction method wherein a

10 construction manager at-risk provides a range of preconstruction services and construction

11 management services which may include cost estimation and consultation regarding the design of

12 the building project, the preparation and coordination of bid packages, scheduling, cost control, and

13 value engineering, acting as the general contractor during the construction, detailing the trade

14 contractor scope of work, holding the trade contracts and other contracts, evaluating trade

15 contractors and subcontractors, and providing management and construction services, all at a

16 guaranteed maximum price, which shall represent the maximum amount to be paid by the using

17 agency for the building project, including the cost of work, the general conditions and the fee

18 payable to the construction management at-risk firm.

19 (31) "Construction manager at-risk" or "construction management at-risk firm" is a person

20 or business experienced in construction that has the ability to evaluate and to implement drawings

21 and specifications as they affect time, cost and quality of construction and the ability to coordinate

22 and deliver the construction of the project within a guaranteed maximum price, which shall

23 represent the maximum amount to be paid by the using agency for the building project, including

24 the cost of the work, the general conditions and the fee payable to the construction management at-

25 risk firm. The construction manager at-risk provides consultation services during the

26 preconstruction and construction phases of the project. The project engineer, architect or owner's

27 program manager may not serve as the construction manager at-risk.

28 (32) "Owner's program manager" shall be an entity engaged to provide project management

29 services on behalf of a state agency for the construction and supervision of the construction of a

30 building project. The owner's program manager acts as the owner's agent in all aspects of the

31 construction project, including, but not limited to, architectural programming, planning, design,

32 construction, and the selection and procurement of an appropriate construction delivery method.

33 The owner's program manager shall have at least seven (7) years experience in the construction and

34 supervision of construction of buildings of similar size and complexity. The owner's program

1 manager shall not have been employed during the preceding year by the design firm, the

2 construction firm, and/or the subcontractors associated with the project.

3 SECTION 13. Section 16-56-6 of the General Laws in Chapter 16-56 entitled

4 "Postsecondary Student Financial Assistance" is hereby amended to read as follows:

5 16-56-6. Need-based grants.

6 (a) Amount of funds allocated. The commissioner of postsecondary education shall allocate

7 annually the appropriation for need-based scholarships and grants. Of the total amount appropriated

8 for need-based scholarship and grants, the lesser of twenty percent (20%) or ~~two million dollars~~

9 ~~($2,000,000)~~ one million five hundred thousand dollars ($1,500,000) shall be distributed to

10 qualified students attending participating, independent, non-profit, higher education institutions in

11 Rhode Island. The remainder of funds shall be limited to public higher education institutions in

12 Rhode Island including payments made pursuant to § 16-100-3(c). As part of the annual budget

13 submission, the office of postsecondary commissioner shall include a plan of how the need-based

14 scholarship and grant funds will be allocated to each public institution receiving funds pursuant to

15 this chapter and how the funds will be distributed to students attending independent, non-profit

16 institutions.

17 (b) Eligibility of individuals. Eligibility for need-based grants and scholarships shall be

18 determined by the office of the postsecondary commissioner.

19 (c) Number and terms of awards. The number of awards to be granted in any one fiscal

20 year shall be contingent upon the funds allocated to this section.

21 SECTION 14. Section 16-105-7 of the General Laws in Chapter 16-105 entitled "School

22 Building Authority" is hereby amended to read as follows:

23 16-105-7. Expenses incurred by the school building authority.

24 In order to provide for one-time or limited expenses of the school building authority under

25 this chapter, the Rhode Island health and educational building corporation shall provide funding

26 from the school building authority capital fund, fees generated from the origination of municipal

27 bonds and other financing vehicles used for school construction, and its own reserves. The school

28 building authority shall, by October 1 of each year, report to the governor and the chairs of the

29 senate and house finance committees, the senate fiscal advisor, and the house fiscal advisor the

30 amount sought for expenses for the next fiscal year.

31 There is also hereby established a restricted-receipt account within the budget of the

32 department of elementary and secondary education entitled "school construction services", to be

33 financed by the Rhode Island health and educational building corporation's sub-allotments of fees

34 generated from the origination of municipal bonds and other financing vehicles used for school

1 construction and its own reserves. Effective July 1, 2018, this account shall be utilized for the

2 express purpose of supporting personnel expenditures directly related to the administration of the

3 school construction aid program. Expenditure of all restricted receipts accepted by the department

4 shall be subject to the annual appropriation process and approval by the general assembly.

5 SECTION 15. Section 45-38.2-3 of the General Laws in Chapter 45-38.2 entitled "School

6 Building Authority Capital Fund" is hereby amended to read as follows:

7 45-38.2-3. Administration.

8 (a) The corporation shall have all the powers necessary or incidental to carry out and

9 effectuate the purposes and provisions of this chapter including:

10 (1) To receive and disburse such funds from the state as may be available for the purpose

11 of the fund subject to the provisions of this chapter;

12 (2) To make and enter into binding commitments to provide financial assistance to cities,

13 towns, and local education agencies from amounts on deposit in the fund;

14 (3) To enter into binding commitments to provide subsidy assistance for loans and city,

15 town, and local education agency obligations from amounts on deposit in the fund;

16 (4) To levy administrative fees on cities, towns, and local education agencies as necessary

17 to effectuate the provisions of this chapter; provided that the ~~fee~~ total amount of all such fees does

18 not exceed one tenth of one percent (0.001) of the original principal amount;

19 (5) To engage the services of third-party vendors to provide professional services;

20 (6) To establish one or more accounts within the fund; and

21 (7) Such other authority as granted to the corporation under chapter 38.1 of this title.

22 (b) Subject to the provisions of this chapter, and to any agreements with the holders of any

23 bonds of the corporation or any trustee therefor, amounts held by the corporation for the account

24 of the fund shall be applied by the corporation, either by direct expenditure, disbursement, or

25 transfer to one or more other funds and accounts held by the corporation or a trustee under a trust

26 agreement or trust indenture entered into by the corporation with respect to bonds or notes issued

27 by the corporation under this chapter or by a holder of bonds or notes issued by the corporation

28 under this chapter, either alone or with other funds of the corporation, to the following purposes:

29 (1) To provide financial assistance to cities, towns, and local education agencies to finance

30 costs of approved projects, and to refinance the costs of the projects, subject to such terms and

31 conditions, if any, as are determined by the department and/or the corporation;

32 (2) To fund reserves for bonds of the corporation and to purchase insurance and pay the

33 premiums therefor, and pay fees and expenses of letters or lines of credit and costs of

34 reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to

1 otherwise provide security for, and a source of payment for obligations of the corporation, by

2 pledge, lien, assignment, or otherwise as provided in chapter 38.1 of this title;

3 (3) To pay or provide for subsidy assistance as determined by the school building authority;

4 (4) To provide a reserve for, or to otherwise secure, amounts payable by cities, towns, and

5 local education agencies on loans and city, town, and local education agency obligations

6 outstanding in the event of default thereof; amounts in any account in the fund may be applied to

7 defaults on loans outstanding to the city, town, or local education agency for which the account

8 was established and, on a parity basis with all other accounts, to defaults on any loans or city, town,

9 or local education agency obligations outstanding; and

10 (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

11 otherwise as provided in chapter 38.1 of this title, any bonds or notes of the corporation issued

12 under this chapter.

13 (c) The repayment obligations of the city, town, or local education agency for loans shall

14 be in accordance with its eligibility for state aid for school housing as set forth in §§ 16-7-39, 16-

15 77.1-5, and 16-105-3(19).

16 (d) In addition to other remedies of the corporation under any loan or financing agreement

17 or otherwise provided by law, the corporation may also recover from a city, town, or local education

18 agency, in an action in superior court, any amount due the corporation together with any other

19 actual damages the corporation shall have sustained from the failure or refusal of the city, town, or

20 local education agency to make the payments or abide by the terms of the loan or financing

21 agreement.

22 SECTION 16. Sections 2 through 12 shall take effect upon on February 1, 2020. The

23 remaining sections of this article shall take effect upon passage.

2 RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2019

3 SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in

4 this act, the following general revenue amounts are hereby appropriated out of any money in the

5 treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2019.

6 The amounts identified for federal funds and restricted receipts shall be made available pursuant to

7 section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes

8 and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw

9 his or her orders upon the general treasurer for the payment of such sums or such portions thereof

10 as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

11 FY 2019 FY 2019 FY 2019

12 Enacted Change Final

13 Administration

14 Central Management

15 General Revenues 2,735,330 (548,535) 2,186,795

16 Legal Services

17 General Revenues 2,424,062 (422,077) 2,001,985

18 Accounts and Control

19 General Revenues 5,345,087 (537,979) 4,807,108

20 Restricted Receipts –

21 OPEB Board Administration 225,295 (27,876) 197,419

22 Total – Accounts and Control 5,570,382 (565,855) 5,004,527

23 Office of Management and Budget

24 General Revenues 9,011,679 (1,179,756) 7,831,923

25 ~~Of this funding, $300,000 is to support a data analytics pilot that will demonstrate the value of~~

26 ~~merged data across multiple agency systems to furthering the mission of the department of children,~~

27 ~~youth and families.~~

28 Restricted Receipts 300,046 23,096 323,142

29 Other Funds 1,222,835 (100,229) 1,122,606

30 Total – Office of Management and Budget 10,534,560 (1,256,889) 9,277,671

1 Purchasing

2 General Revenues 2,888,826 445,094 3,333,920

3 Restricted Receipts 540,000 (540,000) 0

4 Other Funds 463,729 12,053 475,782

5 Total – Purchasing 3,892,555 (82,853) 3,809,702

6 Human Resources

7 General Revenues 1,274,257 (485,231) 789,026

8 Personnel Appeal Board

9 General Revenues 149,477 259 149,736

10 Information Technology

11 General Revenues 1,470,255 (817,502) 652,753

12 Federal Funds 115,000 (1,000) 114,000

13 Restricted Receipts 10,228,243 7,442,126 17,670,369

14 Other Funds 88,071 (88,071) 0

15 Total – Information Technology 11,901,569 6,535,553 18,437,122

16 Library and Information Services

17 General Revenues 1,442,726 (23,278) 1,419,448

18 Federal Funds 1,213,068 (124,172) 1,088,896

19 Restricted Receipts 5,500 12,629 18,129

20 Total – Library and Information Services 2,661,294 (134,821) 2,526,473

21 Planning

22 General Revenues 1,081,887 (245,038) 836,849

23 Federal Funds 15,448 319,435 334,883

24 Other Funds

25 Air Quality Modeling 24,000 0 24,000

26 Federal Highway – PL Systems Planning 3,654,326 (199,092) 3,455,234

27 FTA – Metro Planning Grant 1,063,699 (21,465) 1,042,234

28 Total – Planning 5,839,360 (146,160) 5,693,200

29 General

30 General Revenues

31 Miscellaneous Grants/Payments 130,000 0 130,000

32 Provided that this amount be allocated to City Year for the Whole School Whole Child

33 Program, which provides individualized support to at-risk students.

34 Torts – Courts/Awards 400,000 170,000 570,000

1 State Employees/Teachers Retiree Health Subsidy 2,321,057 (43,730) 2,277,327

2 Resource Sharing and State Library Aid 9,362,072 0 9,362,072

3 Library Construction Aid 2,176,471 0 2,176,471

4 Restricted Receipts 700,000 0 700,000

5 Other Funds

6 Rhode Island Capital Plan Funds

7 Security Measures State Buildings 250,000 500,000 750,000

8 Energy Efficiency Improvements 500,000 284,342 784,342

9 Cranston Street Armory 500,000 0 500,000

10 State House Renovations 1,175,000 2,301,209 3,476,209

11 Zambarano Building Rehabilitation 1,500,000 0 1,500,000

12 Cannon Building 600,000 900,000 1,500,000

13 Old State House 500,000 (243,273) 256,727

14 State Office Building 350,000 0 350,000

15 Old Colony House 50,000 0 50,000

16 William Powers Building 1,500,000 (500,000) 1,000,000

17 Pastore Center Utility System Upgrades 1,300,000 888,000 2,188,000

18 Pastore Center Medical Buildings Asset Protection

19 ~~Rehabilitation~~ 2,000,000 3,085,000 5,085,000

20 Replacement of Fueling Tanks 300,000 55,610 355,610

21 Environmental Compliance 200,000 68,095 268,095

22 Big River Management Area 100,000 (25,000) 75,000

23 Pastore Center Buildings Demolition 175,000 (125,100) 49,900

24 Washington County Government Center 950,000 (915,000) 35,000

25 Veterans Memorial Auditorium 200,000 0 200,000

26 Chapin Health Laboratory 1,000,000 (600,000) 400,000

27 Shepard Building 400,000 (337,100) 62,900

28 Pastore Center Water Tanks &Pipes 280,000 (165,173) 114,827

29 RI Convention Center Authority 5,300,000 1,500,000 6,800,000

30 Dunkin Donuts Center 1,500,000 1,500,000 3,000,000

31 Board of Elections (Medical Examiner) 7,175,000 (7,163,816) 11,184

32 Pastore Center Power Plant Rehabilitation 750,000 277,000 1,027,000

33 Accessibility – Facility Renovations 1,000,000 0 1,000,000

34 DoIT Operations System 800,000 (600,000) 200,000

BHDDH DD & Community Facilities –

Asset Protection

255,868

BHDHH DD & Community Homes – Fire Code

1,200,000

BHDDH DD Regional Facilities – Asset Protection

500,000

BHDDH Group Homes

800,000

BHDDH Substance Abuse Asset Protection

233,413

Hospital Consolidation

1,500,000

McCoy Stadium Repairs

518,916

~~Pastore Center~~ Statewide Facility Master Plan

650,000

Pastore Center Parking

83,245

Virks Building Renovations

(457,670)

12 Pastore Center Non-Medical Buildings Asset Protection0 8,210,112 8,210,112

13 Total – General 45,444,600 14,304,948 59,749,548

14 Debt Service Payments

15 General Revenues 140,686,161 (17,456,279) 123,229,882

16 Out of the general revenue appropriations for debt service, the General Treasurer is

17 authorized to make payments for the I-195 Redevelopment District Commission loan up to the

18 maximum debt service due in accordance with the loan agreement.

19 Federal Funds 1,870,830 0 1,870,830

20 Other Funds

21 Transportation Debt Service 40,022,948 (321,388) 39,701,560

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

23 Total - Debt Service Payments 182,679,939 (17,777,667) 164,902,272

24 Energy Resources

25 Federal Funds

26 Federal Funds 524,820 334,513 859,333

27 Stimulus – State Energy Plan 0 388,206 388,206

28 Restricted Receipts 8,179,192 91,265 8,270,457

29 Total – Energy Resources 8,704,012 813,984 9,517,996

30 Rhode Island Health Benefits Exchange

31 General Revenues 2,363,841 411,471 2,775,312

32 Federal Funds 138,089 6,802 144,891

1 Office of Diversity, Equity & Opportunity

2 General Revenues 1,280,050 (71,814) 1,208,236

3 Other Funds 113,530 2,063 115,593

4 Total – Office of Diversity, Equity & Opportunity1,393,580 (69,751) 1,323,829

5 Capital Asset Management and Maintenance

6 General Revenues 10,621,701 (894,876) 9,726,825

7 Statewide Savings Initiatives

8 General Revenues

9 Workers’ Compensation (1,500,000) 1,500,000 0

10 Fraud and Waste Detection (9,634,559) 6,647,287 (2,987,272)

11 Expand Prompt Payment (350,000) 350,000 0

12 ~~Strategic/Contract Sourcing~~ ~~(1,000,000)~~

13 Strategic/Contract Sourcing (3,000,000) 3,000,000 0

14 Efficiency Savings (3,700,000) 3,700,000 0

15 ~~Insurance Saving~~ ~~(3,000,000)~~

16 Insurance Savings (1,000,000) 1,000,000 0

17 Salaries and Benefits (900,000) 900,000 0

18 Total – Statewide Savings Initiative (20,084,559) 17,097,287 (2,987,272)

19 Grand Total – Administration 284,663,464 17,696,497 302,359,961

20 Business Regulation

21 Central Management

22 General Revenues 2,396,826 (131,280) 2,265,546

23 Banking Regulation

24 General Revenues 1,760,317 (400,014) 1,360,303

25 Restricted Receipts 75,000 0 75,000

26 Total – Banking Regulation 1,835,317 (400,014) 1,435,303

27 Securities Regulation

28 General Revenues 1,015,879 32,047 1,047,926

29 Restricted Receipts 15,000 0 15,000

30 Total – Securities Regulation 1,030,879 32,047 1,062,926

31 Insurance Regulation

32 General Revenues 3,971,607 (302,749) 3,668,858

1 Office of the Health Insurance Commissioner

2 General Revenues 1,669,562 14,251 1,683,813

3 Federal Funds 513,791 453,856 967,647

4 Restricted Receipts 234,507 78,445 312,952

5 Total – Office of the Health Insurance Commissioner 2,417,860 546,552 2,964,412

6 Board of Accountancy

General Revenues

6,000

(113)

5,887

8 ~~Commercial Licensing, Racing & Athletics~~

9 Commercial Licensing and Gaming and Athletics Licensing

10 General Revenues 955,251 (30,299) 924,952

11 Restricted Receipts 1,925,146 (95,122) 1,830,024

12 ~~Total – Commercial Licensing, Racing & Athletics~~

13 Total – Commercial Licensing and Gaming

14 and Athletics Licensing 2,880,397 (125,421) 2,754,976

15 Building, Design and Fire Professionals

16 General Revenues 5,655,015 (108,602) 5,546,413

17 Federal Funds 378,840 0 378,840

18 Restricted Receipts 1,875,299 419,237 2,294,536

19 Other Funds

20 Rhode Island Capital Plan Funds

21 Fire Academy 0 304,557 304,557

22 Quonset Development Corporation 66,497 (856) 65,641

23 Total – Building, Design and Fire Professionals 7,975,651 614,336 8,589,987

24 Grand Total – Business Regulation 24,509,397 240,520 24,749,917

25 Executive Office of Commerce

26 Central Management

27 General Revenues 839,457 46,104 885,561

28 Housing and Community Development

29 General Revenues 923,204 (108,867) 814,337

30 Federal Funds 14,445,458 (1,915,643) 12,529,815

31 Restricted Receipts 4,754,319 0 4,754,319

32 Total – Housing and Community Development 20,122,981 (2,024,510) 18,098,471

33 Quasi–Public Appropriations

1 Rhode Island Commerce Corporation 7,474,514 0 7,474,514

2 Airport Impact Aid 1,025,000 0 1,025,000

3 Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be

4 distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the

5 total passengers served by all airports serving more ~~the~~ than 1,000,000 passengers. Forty percent

6 (40%) of the first $1,000,000 shall be distributed based on the share of landings during the calendar

7 year 2018 at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset

8 Airport, T.F. Green Airport and Westerly Airport, respectively. The Rhode Island Commerce

9 Corporation shall make an impact payment to the towns or cities in which the airport is located

10 based on this calculation. Each community upon which any parts of the above airports ~~are~~ is located

11 shall receive at least $25,000.

12 STAC Research Alliance 900,000 0 900,000

13 Innovative Matching Grants/Internships 1,000,000 0 1,000,000

14 I-195 Redevelopment District Commission 761,000 0 761,000

15 Chafee Center at Bryant 476,200 0 476,200

16 Polaris Manufacturing Grant 350,000 0 350,000

17 Urban Ventures Grant 140,000 0 140,000

18 Other Funds

19 Rhode Island Capital Plan Funds

20 I-195 Commission 300,000 125,000 425,000

21 Quonset Piers 2,660,000 340,000 3,000,000

22 Quonset Point Infrastructure 4,000,000 0 4,000,000

23 Total – Quasi–Public Appropriations 19,086,714 465,000 19,551,714

24 Economic Development Initiatives Fund

25 General Revenues

26 Innovation Initiative 1,000,000 0 1,000,000

27 I-195 Redevelopment Fund 1,000,000 0 1,000,000

28 Rebuild RI Tax Credit Fund 11,200,000 0 11,200,000

29 Competitive Cluster Grants 100,000 0 100,000

30 Main Street RI Streetscape 500,000 0 500,000

31 P-tech 200,000 0 200,000

32 Small Business Promotion 300,000 0 300,000

33 Total – Economic Development Initiatives Fund14,300,000 0 14,300,000

34 Commerce Programs

General Revenues

Wavemaker Fellowship

1,600,000

Air Service Development Fund

500,000

Total – Commerce Programs

2,100,000

Grand Total – Executive Office of Commerce

56,449,152

(1,513,406)

54,935,746

6 Labor and Training

7 Central Management

8 General Revenues 722,892 102,596 825,488

9 Restricted Receipts 176,511 40,674 217,185

10 Other Funds

11 Rhode Island Capital Plan Funds

12 Center General Asset Protection 1,250,000 (1,250,000) 0

13 Total – Central Management 2,149,403 (1,106,730) 1,042,673

14 Workforce Development Services

15 General Revenues 6,277,198 (1,522,681) 4,754,517

16 Provided that $100,000 be allocated to support the Opportunities Industrialization Center.

17 Federal Funds 20,986,909 9,187,443 30,174,352

18 Restricted Receipts 27,861,627 (8,955,481) 18,906,146

19 Other Funds 139,261 530,998 670,259

20 Total – Workforce Development Services 55,264,995 (759,721) 54,505,274

21 Workforce Regulation and Safety

22 General Revenues 3,110,964 1,264,893 4,375,857

23 Income Support

24 General Revenues 3,939,754 1,480,455 5,420,209

25 Federal Funds 19,766,914 (4,638,271) 15,128,643

26 Restricted Receipts 1,980,642 371,691 2,352,333

27 Other Funds

28 Temporary Disability Insurance Fund 203,411,107 (3,896,240) 199,514,867

29 Employment Security Fund 159,220,000 (4,685,000) 154,535,000

30 Total – Income Support 388,318,417 (11,367,365) 376,951,052

31 Injured Workers Services

32 Restricted Receipts 8,956,311 1,146,102 10,102,413

33 Labor Relations Board

34 General Revenues 414,147 57,823 471,970

Grand Total – Labor and Training

458,214,237

(10,764,998)

447,449,239

2 Department of Revenue

3 Director of Revenue

General Revenues

2,122,802

(28,288)

2,094,514

5 Office of Revenue Analysis

6 General Revenues 905,219 (129,830) 775,389

7 Lottery Division

8 Other Funds 400,184,045 19,276,411 419,460,456

9 Municipal Finance

General Revenues

2,815,457

(336,820)

2,478,637

11 Taxation

12 General Revenues 27,523,727 170,656 27,694,383

13 Federal Funds 1,912,976 (547,544) 1,365,432

14 Restricted Receipts 627,411 311,285 938,696

15 Other Funds

16 Motor Fuel Tax Evasion 173,651 (690) 172,961

17 Temporary Disability Insurance Fund 670,661 329,185 999,846

18 Total – Taxation 30,908,426 262,892 31,171,318

19 Registry of Motor Vehicles

20 General Revenues 30,009,103 (3,306,315) 26,702,788

21 Federal Funds 196,489 363,496 559,985

22 Restricted Receipts 514,763 (500,000) 14,763

23 Total – Registry of Motor Vehicles 30,720,355 (3,442,819) 27,277,536

24 State Aid

25 General Revenues

26 Distressed Communities Relief Fund 12,384,458 0 12,384,458

27 Payment in Lieu of Tax Exempt Properties 46,089,504 0 46,089,504

28 Motor Vehicle Excise Tax Payments 54,748,948 1,533,558 56,282,506

29 Property Revaluation Program 1,630,534 0 1,630,534

30 Restricted Receipts 922,013 0 922,013

31 Total – State Aid 115,775,457 1,533,558 117,309,015

32 Collections

33 General Revenues 601,755 (152,974) 448,781

34 Grand Total – Revenue 584,033,516 16,982,130 601,015,646

1 Legislature

2 General Revenues 43,691,627 5,309,366 49,000,993

3 Restricted Receipts 1,720,695 48,253 1,768,948

4 Grand Total – Legislature 45,412,322 5,357,619 50,769,941

5 Lieutenant Governor

6 General Revenues 1,114,597 (6,750) 1,107,847

7 Secretary of State

8 Administration

General Revenues

3,326,174

48,616

3,374,790

10 Corporations

General Revenues

2,318,968

(16,436)

2,302,532

12 State Archives

13 General Revenues 91,577 (1,417) 90,160

14 Restricted Receipts 415,658 29,054 444,712

15 Total – State Archives 507,235 27,637 534,872

16 Elections and Civics

17 General Revenues 2,893,047 (16,192) 2,876,855

18 Federal Funds 1,983,770 0 1,983,770

Total – Elections and Civics

4,876,817

(16,192)

4,860,625

20 State Library

General Revenues

623,911

87,709

711,620

22 Provided that $125,000 be allocated to support the Rhode Island Historical Society

23 pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the

24 Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.

25 Office of Public Information

26 General Revenues 622,057 (177,933) 444,124

27 Receipted Receipts 25,000 0 25,000

28 Total – Office of Public Information 647,057 (177,933) 469,124

29 Grand Total – Secretary of State 12,300,162 (46,599) 12,253,563

30 General Treasurer

31 Treasury

32 General Revenues 2,684,367 (80,738) 2,603,629

33 Federal Funds 304,542 (23,963) 280,579

34 Other Funds

Temporary Disability Insurance Fund

275,471

(37,867)

237,604

Tuition Savings Program – Administration

379,213

22,526

401,739

Total –Treasury

3,643,593

(120,042)

3,523,551

4 State Retirement System

Restricted Receipts

Admin Expenses – State Retirement System

9,571,688

(21,205)

9,550,483

Retirement – Treasury Investment Operations

1,672,096

49,051

1,721,147

Defined Contribution – Administration

115,436

108,747

224,183

Total – State Retirement System

11,359,220

136,593

11,495,813

Unclaimed Property

Restricted Receipts

26,030,095

1,367,396

27,397,491

Crime Victim Compensation Program

General Revenues

289,409

60,884

350,293

Federal Funds

770,332

(34,270)

736,062

Restricted Receipts

1,029,931

(398,719)

631,212

Total – Crime Victim Compensation Program

2,089,672

(372,105)

1,717,567

Grand Total – General Treasurer

43,122,580

1,011,842

44,134,422

18 Board of Elections

General Revenues

5,252,516

(790,517)

4,461,999

20 Rhode Island Ethics Commission

General Revenues

1,812,237

(64,198)

1,748,039

22 Office of Governor

23 General Revenues

24 General Revenues 5,433,047 0 5,433,047

25 Contingency Fund 200,000 0 200,000

26 Grand Total – Office of Governor 5,633,047 0 5,633,047

27 Commission for Human Rights

28 General Revenues 1,335,441 0 1,335,441

29 Federal Funds 497,570 (29,983) 467,587

30 Grand Total – Commission for Human Rights 1,833,011 (29,983) 1,803,028

31 Public Utilities Commission

32 Federal Funds 168,378 0 168,378

33 Restricted Receipts 9,766,453 688,666 10,455,119

34 Grand Total – Public Utilities Commission 9,934,831 688,666 10,623,497

1 Office of Health and Human Services

2 Central Management

3 General Revenues 28,659,176 (234,989) 28,424,187

4 Federal Funds 98,508,590 53,457,030 151,965,620

5 Restricted Receipts 9,221,720 758,249 9,979,969

6 Total – Central Management 136,389,486 53,980,290 190,369,776

7 Medical Assistance

8 General Revenues

9 Managed Care 316,380,054 (7,839,518) 308,540,536

10 Hospitals 91,253,980 864,686 92,118,666

11 Nursing Facilities 149,372,355 (1,174,972) 148,197,383

12 Home and Community Based Services 36,487,025 (3,196,285) 33,290,740

13 Other Services 78,332,067 3,034,428 81,366,495

14 Pharmacy 66,044,749 3,513,721 69,558,470

15 Rhody Health 216,386,666 (2,318,428) 214,068,238

16 Federal Funds

17 Managed Care 415,765,169 1,394,295 417,159,464

18 Hospitals 99,915,600 6,484,930 106,400,530

19 Nursing Facilities 164,434,062 (4,631,445) 159,802,617

20 Home and Community Based Services 46,017,690 (9,908,430) 36,109,260

21 Other Services 504,413,668 10,695,632 515,109,300

22 Pharmacy (576,541) 212,885 (363,656)

23 Rhody Health 234,283,925 (2,413,443) 231,870,482

24 Other Programs 43,038,580 0 43,038,580

25 Restricted Receipts 9,024,205 0 9,024,205

26 Total – Medical Assistance 2,470,573,254 (5,281,944) 2,465,291,310

27 Grand Total – Office of Health and Human

28 Services 2,606,962,740 48,698,346 2,655,661,086

29 Children, Youth, and Families

30 Central Management

31 General Revenues 8,783,677 838,329 9,622,006

32 Federal Funds 4,407,612 (423,687) 3,983,925

33 Total – Central Management 13,191,289 414,642 13,605,931

34 Children's Behavioral Health Services

1 General Revenues 6,944,545 72,960 7,017,505

2 Federal Funds 5,713,527 641,333 6,354,860

3 Total – Children's Behavioral Health Services 12,658,072 714,293 13,372,365

4 Juvenile Correctional Services

5 General Revenues 26,117,243 (3,731,106) 22,386,137

6 Federal Funds 275,099 (180,612) 94,487

7 Restricted Receipts 0 28,675 28,675

8 Other Funds

9 Rhode Island Capital Plan Funds

10 Training School Asset Protection 1,900,000 (1,150,000) 750,000

11 Training School Generators 0 40,000 40,000

12 Total – Juvenile Correctional Services 28,292,342 (4,993,043) 23,299,299

13 Child Welfare

14 General Revenues

15 General Revenues 108,270,158 28,371,244 136,641,402

16 18 to 21 Year Olds 11,298,418 (9,719,787) 1,578,631

17 Federal Funds

18 Federal Funds 49,098,320 9,027,719 58,126,039

19 18 to 21 Year Olds 2,235,633 (2,235,633) 0

20 Restricted Receipts 2,674,422 (280,562) 2,393,860

21 Total – Child Welfare 173,576,951 25,162,981 198,739,932

22 Higher Education Incentive Grants

23 General Revenues 200,000 0 200,000

24 Grand Total – Children, Youth, and Families 227,918,654 21,298,873 249,217,527

25 Health

26 Central Management

27 General Revenues 2,096,306 1,557,712 3,654,018

28 Federal Funds 4,028,206 531,317 4,559,523

29 Restricted Receipts 6,195,273 199,497 6,394,770

30 Total – Central Management 12,319,785 2,288,526 14,608,311

31 Community Health and Equity

32 General Revenues 638,372 2,618 640,990

33 Federal Funds 67,974,042 2,637,401 70,611,443

34 Restricted Receipts 35,134,450 2,015,550 37,150,000

Total – Community Health and Equity

103,746,864

4,655,569

108,402,433

2 Environmental Health

General Revenues

5,689,928

(475,639)

5,214,289

Federal Funds

7,230,008

459,824

7,689,832

Restricted Receipts

353,936

84,852

438,788

Total – Environmental Health

13,273,872

69,037

13,342,909

Health Laboratories and Medical Examiner

General Revenues

10,470,418

(51,298)

10,419,120

Federal Funds

2,108,567

(153,765)

1,954,802

10 Total – Health Laboratories and Medical Examiner12,578,985 (205,063) 12,373,922

Customer Services

General Revenues

7,046,195

518,634

7,564,829

Federal Funds

3,763,691

230,312

3,994,003

Restricted Receipts

1,308,693

(7,409)

1,301,284

Total – Customer Services

12,118,579

741,537

12,860,116

16 Policy, Information and Communications

General Revenues

1,046,839

(151,387)

895,452

Federal Funds

2,701,982

589,697

3,291,679

Restricted Receipts

941,305

366,527

1,307,832

Total – Policy, Info

rmation and Communications4,690,126

804,837

5,494,963

Preparedness, Respon

se, Infectious Disease & Emergency Services

General Revenues

1,975,771

(39,939)

1,935,832

Federal Funds

13,407,707

4,983,069

18,390,776

Total – Preparedness, Response, Infectious

Disease & Emergency Services

15,383,478

4,943,130

20,326,608

Grand Total - Health

174,111,689

13,297,573

187,409,262

27 Human Services

28 Central Management

29 General Revenues 4,147,933 687,038 4,834,971

30 Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to provide

31 direct services through the Coalition Against Domestic Violence, $250,000 is to support Project

32 Reach activities provided by the RI Alliance of Boys and Girls Clubs, $217,000 is for outreach and

33 supportive services through Day One, $175,000 is for food collection and distribution through the

34 Rhode Island Community Food Bank, $500,000 for services provided to the homeless at Crossroad

1 Rhode Island, and $520,000 for the Community Action Fund and $200,000 for the Institute for the

2 Study and Practice of Nonviolence’s Reduction Strategy.

3 Federal Funds 4,398,686 572,167 4,970,853

4 Restricted Receipts 105,606 (105,606) 0

5 Total – Central Management 8,652,225 1,153,599 9,805,824

6 Child Support Enforcement

7 General Revenues 1,956,875 738,543 2,695,418

8 Federal Funds 8,050,859 (1,608,874) 6,441,985

9 Total – Child Support Enforcement 10,007,734 (870,331) 9,137,403

10 Individual and Family Support

11 General Revenues 22,530,162 12,414,512 34,944,674

12 Federal Funds 106,111,888 (1,259,483) 104,852,405

13 Restricted Receipts 7,422,660 (7,095,026) 327,634

14 Other Funds

15 Food Stamp Bonus Funding 170,000 0 170,000

16 Intermodal Surface Transportation Fund 4,428,478 45,977 4,474,455

17 Rhode Island Capital Plan Funds

18 Blind Vending Facilities 165,000 0 165,000

19 Total – Individual and Family Support 140,828,188 4,105,980 144,934,168

20 Office of Veterans' Affairs

21 General Revenues 23,558,301 3,109,276 26,667,577

22 Of this amount, $200,000 to provide support services through Veterans’ Organizations.

23 Federal Funds 9,552,957 748,692 10,301,649

24 Restricted Receipts 1,313,478 54,972 1,368,450

25 Total – Office of Veterans' Affairs 34,424,736 3,912,940 38,337,676

26 Health Care Eligibility

27 General Revenues 6,072,355 919,934 6,992,289

28 Federal Funds 9,392,121 1,914,182 11,306,303

29 Total – Health Care Eligibility 15,464,476 2,834,116 18,298,592

30 Supplemental Security Income Program

31 General Revenues 20,022,000 (783,350) 19,238,650

32 Rhode Island Works

33 General Revenues 10,669,986 (780,354) 9,889,632

34 Federal Funds 88,576,267 (4,467,994) 84,108,273

Total – Rhode Island Works

99,246,253

(5,248,348)

93,997,905

2 Other Programs

General Revenues

1,183,880

(187,280)

996,600

4 Of this appropriation, $90,000 shall be used for hardship contingency payments.

5 Federal Funds 282,130,537 (16,961,819) 265,168,718

6 Total – Other Programs 283,314,417 (17,149,099) 266,165,318

7 Elderly Affairs

8 General Revenues 7,858,293 (99,696) 7,758,597

9 Of this amount, $140,000 to provide elder services, including respite, through the Diocese

10 of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term Care in

11 accordance with Rhode Island General Law, Chapter 42-66.7, $85,000 for security for housing for

12 the elderly in accordance with Rhode Island General Law, Section 42-66.1-3, $800,000 for Senior

13 Services Support and $580,000 for elderly nutrition, of which $530,000 is for Meals on Wheels.

14 Federal Funds 12,857,529 395,259 13,252,788

15 Restricted Receipts 154,808 27,465 182,273

16 Total – Elderly Affairs 20,870,630 323,028 21,193,658

17 Grand Total – Human Services 632,830,659 (11,721,465) 621,109,194

18 Behavioral Healthcare, Developmental Disabilities, and Hospitals

19 Central Management

20 General Revenues 1,975,017 1,340,671 3,315,688

21 Federal Funds 734,643 85,766 820,409

22 Total – Central Management 2,709,660 1,426,437 4,136,097

23 Hospital and Community System Support

24 General Revenues 2,614,415 (590,109) 2,024,306

25 Federal Funds 0 101,195 101,195

26 Other Funds

27 Rhode Island Capital Plan Funds

28 Medical Center Rehabilitation 300,000 (300,000) 0

29 Total – Hospital and Community System Support2,914,415 (788,914) 2,125,501

30 Services for the Developmentally Disabled

31 General Revenues 126,318,720 2,605,099 128,923,819

32 Of this funding, $750,000 is to support technical and other assistance for community-based

33 agencies to ensure they transition to providing integrated services to adults with developmental

1 Federal Funds 142,876,019 (629,258) 142,246,761

2 Of this funding, ~~$791,307~~ $821,997 is to support technical and other assistance for

3 community-based agencies to ensure they transition to providing integrated services to adults with

4 developmental disabilities that comply with the consent decree.

5 Restricted Receipts 1,419,750 16,050 1,435,800

6 Other Funds

7 Rhode Island Capital Plan Funds

8 DD Private Waiver Fire Code 100,000 1,648,533 1,748,533

9 Regional Center Repair/Rehabilitation 300,000 (300,000) 0

10 Community Facilities Fire Code 200,000 (200,000) 0

11 ~~MR Community Facilities/Access to Independence~~

12 DD Residential Development 500,000 (200,000) 300,000

13 Total – Services for the Developmentally

14 Disabled 271,714,489 2,940,424 274,654,913

15 Behavioral Healthcare Services

16 General Revenues 3,610,316 (356,693) 3,253,623

17 Federal Funds 23,493,261 8,978,589 32,471,850

18 Of this federal funding, $900,000 shall be expended on the Municipal Substance Abuse

19 Task Forces and $128,000 shall be expended on NAMI of RI. Also included is $250,000 from

20 Social Services Block Grant funds and/or the Mental Health Block Grant funds to be provided to

21 The Providence Center to coordinate with Oasis Wellness and Recovery Center for its supports and

22 services program offered to individuals with behavioral health issues.

23 Restricted Receipts 100,000 49,800 149,800

24 Other Funds

25 Rhode Island Capital Plan Funds

26 MH Community Facilities Repair 200,000 (200,000) 0

27 Substance Abuse Asset Protection 200,000 (200,000) 0

28 Total – Behavioral Healthcare Services 27,603,577 8,271,696 35,875,273

29 Hospital and Community Rehabilitative Services

30 General Revenues 53,573,498 2,834,919 56,408,417

31 Federal Funds 59,083,644 3,266,666 62,350,310

32 Restricted Receipts 3,552,672 476,230 4,028,902

33 Other Funds

1 Zambarano Buildings and Utilities 250,000 (250,000) 0

2 Eleanor Slater Administrative Buildings Renovation250,000 (250,000) 0

3 MR Community Facilities 500,000 (500,000) 0

4 Hospital Equipment 300,000 0 300,000

5 Total - Hospital and Community Rehabilitative

6 Services 117,509,814 5,577,815 123,087,629

7 Grand Total – Behavioral Healthcare, Developmental

8 Disabilities, and Hospitals 422,451,955 17,427,458 439,879,413

9 Office of the Child Advocate

10 General Revenues 969,922 (164,111) 805,811

11 Federal Funds 226,041 (64,205) 161,836

12 Grand Total – Office of the Child Advocate 1,195,963 (228,316) 967,647

13 Commission on the Deaf and Hard of Hearing

14 General Revenues 523,178 (67,276) 455,902

15 Restricted Receipts 80,000 30,843 110,843

16 Grand Total – Comm. On Deaf and Hard of Hearing603,178 (36,433) 566,745

17 Governor’s Commission on Disabilities

18 General Revenues

19 General Revenues 502,537 (89,590) 412,947

20 Livable Home Modification Grant Program 500,000 (6,537) 493,463

21 Provided that this will be used for home modification and accessibility enhancements to

22 construct, retrofit, and/or renovate residences to allow individuals to remain in community settings.

23 This will be in consultation with the Executive Office of Health and Human Services.

24 Federal Funds 335,167 60,151 395,318

25 Restricted Receipts 49,571 (6,991) 42,580

26 Total – Governor’s Commission on Disabilities 1,387,275 (42,967) 1,344,308

27 Office of the Mental Health Advocate

General Revenues

653,260

(85,871)

567,389

29 Elementary and Secondary Education

30 Administration of the Comprehensive Education Strategy

31 General Revenues 20,428,256 (506,825) 19,921,431

32 Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s

33 Hospital pursuant to Rhode Island General Law, Section 16-7-20 and that $345,000 be allocated to

34 support child opportunity zones through agreements with the Department of Elementary and

1 Secondary Education to strengthen education, health and social services for students and their

2 families as a strategy to accelerate student achievement.

3 Federal Funds 212,575,621 4,656,682 217,232,303

4 Restricted Receipts

5 Restricted Receipts 2,633,393 342,393 2,975,786

6 HRIC Adult Education Grants 3,500,000 0 3,500,000

7 Total – Admin. of the Comprehensive Ed.

8 Strategy 239,137,270 4,492,250 243,629,520

9 Davies Career and Technical School

10 General Revenues 13,658,087 0 13,658,087

11 Federal Funds 1,344,928 323,156 1,668,084

12 Restricted Receipts 3,900,067 133,000 4,033,067

13 Other Funds

14 P-Tech Grant 0 100,000 100,000

15 Rhode Island Capital Plan Funds

16 Davies HVAC 200,000 (193,612) 6,388

17 Davies Asset Protection 150,000 125,548 275,548

18 Davies Advanced Manufacturing 3,250,000 (101,221) 3,148,779

19 Total – Davies Career and Technical School 22,503,082 386,871 22,889,953

20 RI School for the Deaf

21 General Revenues 6,470,234 100,099 6,570,333

22 Federal Funds 554,925 (104,726) 450,199

23 Restricted Receipts 837,032 (18,393) 818,639

24 Other Funds

25 School for the Deaf Transformation Grants 59,000 0 59,000

26 Rhode Island Capital Plan Funds

27 Asset Protection 50,000 0 50,000

28 Total – RI School for the Deaf 7,971,191 (23,020) 7,948,171

29 Metropolitan Career and Technical School

30 General Revenues 9,342,007 0 9,342,007

31 Other Funds

32 Rhode Island Capital Plan Funds

33 MET School Asset Protection 250,000 0 250,000

34 Total – Metropolitan Career and Technical School 9,592,007 0 9,592,007

1 Education Aid

2 General Revenues 911,869,976 (1,685,979) 910,183,997

3 Restricted Receipts 24,884,884 5,544,349 30,429,233

4 Other Funds

5 Permanent School Fund 1,420,000 0 1,420,000

6 Provided that $300,000 be provided to support the Advanced Coursework Network and

7 $1,120,000 be provided to support the Early Childhood Categorical Fund.

8 Total – Education Aid 938,174,860 3,858,370 942,033,230

9 Central Falls School District

10 General Revenues 40,752,939 0 40,752,939

11 School Construction Aid

12 General Revenues

13 School Housing Aid 69,448,781 (4,108,499) 65,340,282

14 School Building Authority Capital Fund 10,551,219 4,108,499 14,659,718

15 Total – School Construction Aid 80,000,000 0 80,000,000

16 Teachers' Retirement

17 General Revenues 106,118,409 635,098 106,753,507

18 Grand Total – Elementary and Secondary

19 Education 1,444,249,758 9,349,569 1,453,599,327

20 Public Higher Education

21 Office of Postsecondary Commissioner

22 General Revenues 16,288,918 (282,993) 16,005,925

23 Provided that $355,000 shall be allocated to Rhode Island College Crusade pursuant to the

24 Rhode Island General Law, Section 16-70-5 and that $60,000 shall be allocated to Best Buddies

25 Rhode Island to support its programs for children with developmental and intellectual disabilities.

26 It is also provided that ~~$5,995,000~~ $5,597,515 shall be allocated to the Rhode Island Promise

27 Scholarship program and $147,000 shall be used to support Rhode Island’s membership in the New

28 England Board of Higher Education.

29 Federal Funds

30 Federal Funds 3,524,589 328,953 3,853,542

31 Guaranty Agency Administration 400,000 0 400,000

32 Provided that an amount equivalent to not more than ten (10) percent of the guaranty

33 agency operating fund appropriated for direct scholarship and grants in fiscal year 2019 shall be

34 appropriated for guaranty agency administration in fiscal year 2019. This limitation

1 notwithstanding, final appropriations for fiscal year 2019 for guaranty agency administration may

2 also include any residual monies collected during fiscal year 2019 that relate to guaranty agency

3 operations, in excess of the foregoing limitation.

4 Guaranty Agency Operating Fund Scholarships &

5 Grants 4,000,000 0 4,000,000

6 Restricted Receipts

7 Restricted Receipts 1,985,385 1,037,641 3,023,026

8 Other Funds

9 Tuition Savings Program – Dual Enrollment 1,800,000 0 1,800,000

10 Tuition Savings Program – Scholarships and

11 Grants 6,095,000 0 6,095,000

12 Nursing Education Center – Operating 3,204,732 (242,884) 2,961,848

13 Rhode Island Capital Plan Funds

14 Higher Education Centers 2,000,000 (1,800,000) 200,000

15 Provided that the state fund no more than 50.0 percent of the total project cost.

Westerly Job Skills Center

29,200

Total – Office of Postsecondary Commissioner 39,298,624

(930,083)

38,368,541

18 University of Rhode Island

19 General Revenues

20 General Revenues 80,377,458 (662,970) 79,714,488

21 Provided that in order to leverage federal funding and support economic development,

22 $350,000 shall be allocated to the Small Business Development Center and that $50,000 shall be

23 allocated to Special Olympics Rhode Island to support its mission of providing athletic

24 opportunities for individuals with intellectual and developmental disabilities.

25 Debt Service 23,428,285 5,561,062 28,989,347

26 RI State Forensics Laboratory 1,270,513 (17,541) 1,252,972

27 Other Funds

28 University and College Funds 659,961,744 (1,451,498) 658,510,246

29 Debt – Dining Services 999,215 1,900 1,001,115

30 Debt – Education and General 3,776,722 28,703 3,805,425

31 Debt – Health Services 121,190 (1,500) 119,690

32 Debt – Housing Loan Funds 9,454,613 153,726 9,608,339

33 Debt – Memorial Union 322,864 (100) 322,764

34 Debt – Ryan Center 2,388,444 (7,000) 2,381,444

Debt – Alton Jones Services

102,690

(1,000)

101,690

Debt – Parking Authority

1,100,172

(42,927)

1,057,245

Debt – Sponsored Research

85,151

(85,151)

Debt – Restricted Energy Conservation

482,579

50,324

532,903

Debt – URI Energy Conservation

2,008,847

(6,348)

2,002,499

Rhode Island Capital Plan Funds

Asset Protection

7,437,161

213,115

7,650,276

Fine Arts Center Advanced Planning

6,400,000

512,711

6,912,711

Biological Resources Lab

3,062,839

(1,312,839)

1,750,000

Fire and Safety Protection

232,884

Electrical Substation Replacement

188,967

Total – University of Rhode Island

802,780,487

3,354,518

806,135,005

13 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

14 unencumbered balances as of June 30, 2019 relating to the University of Rhode Island are hereby

15 reappropriated to fiscal year 2020.

16 Rhode Island College

17 General Revenues

18 General Revenues 49,328,599 (483,535) 48,845,064

19 Debt Service 6,421,067 0 6,421,067

20 Other Funds

21 University and College Funds 129,030,562 (5,385,589) 123,644,973

22 Debt – Education and General 881,090 0 881,090

23 Debt – Housing 369,079 0 369,079

24 Debt – Student Center and Dining 154,437 0 154,437

25 Debt – Student Union 208,800 0 208,800

26 Debt – G.O. Debt Service 1,642,957 0 1,642,957

27 Debt Energy Conservation 613,925 0 613,925

28 Rhode Island Capital Plan Funds

29 Asset Protection 3,562,184 814,043 4,376,227

30 Infrastructure Modernization 3,500,000 1,871,417 5,371,417

31 Academic Building Phase I 4,000,000 7,736,952 11,736,952

32 Master Plan Advanced Planning 150,000 (150,000) 0

33 Total – Rhode Island College 199,862,700 4,403,288 204,265,988

34 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

1 unencumbered balances as of June 30, 2019 relating to Rhode Island College are hereby

2 reappropriated to fiscal year 2020.

3 Community College of Rhode Island

4 General Revenues

5 General Revenues 51,074,830 (546,690) 50,528,140

6 Debt Service 1,904,030 0 1,904,030

7 Restricted Receipts 694,224 (68,283) 625,941

8 Other Funds

9 University and College Funds 104,812,712 (3,081,363) 101,731,349

10 CCRI Debt Service – Energy Conservation 803,875 0 803,875

11 Rhode Island Capital Plan Funds

12 Asset Protection 2,368,035 1,266,070 3,634,105

13 Knight Campus Lab Renovation 375,000 0 375,000

14 Knight Campus Renewal 3,600,000 110,846 3,710,846

15 Total – Community College of RI 165,632,706 (2,319,420) 163,313,286

16 Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

17 unencumbered balances as of June 30, 2019 relating to the Community College of Rhode Island

18 are hereby reappropriated to fiscal year 2020.

19 Grand Total – Public Higher Education 1,207,574,517 4,508,303 1,212,082,820

20 RI State Council on the Arts

21 General Revenues

22 Operating Support 842,993 (30,174) 812,819

23 Grants 1,165,000 0 1,165,000

24 Provided that $375,000 be provided to support the operational costs of WaterFire

25 Providence art installations.

26 Federal Funds 719,053 92,720 811,773

27 Restricted Receipts 5,000 10,000 15,000

28 Other Funds

29 Art for Public Facilities 400,000 200,000 600,000

30 Grand Total – RI State Council on the Arts 3,132,046 272,546 3,404,592

31 RI Atomic Energy Commission

32 General Revenues 1,078,908 (60,453) 1,018,455

33 Federal Funds 0 7,936 7,936

34 Restricted Receipts 99,000 (72,000) 27,000

1 Other Funds

2 URI Sponsored Research 268,879 1,984 270,863

3 Rhode Island Capital Plan Funds

4 RINSC Asset Protection 50,000 0 50,000

5 Grand Total – RI Atomic Energy Commission 1,496,787 (122,533) 1,374,254

6 RI Historical Preservation and Heritage Commission

General Revenues

1,210,054

15,015

1,225,069

8 Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration

9 activities.

10 Federal Funds 696,513 149,505 846,018

11 Restricted Receipts 465,870 (26,068) 439,802

12 Other Funds

13 RIDOT Project Review 81,589 43,630 125,219

14 Grand Total – RI Historical Preservation and

15 Heritage Comm. 2,454,026 182,082 2,636,108

16 Attorney General

17 Criminal

18 General Revenues 17,225,917 (1,498,880) 15,727,037

19 Federal Funds 12,710,334 2,267,152 14,977,486

20 Restricted Receipts 139,107 2,324 141,431

21 Total – Criminal 30,075,358 770,596 30,845,954

22 Civil

23 General Revenues 5,674,888 (773,914) 4,900,974

24 Restricted Receipts 644,343 344,686 989,029

25 Total – Civil 6,319,231 (429,228) 5,890,003

26 Bureau of Criminal Identification

27 General Revenues 1,731,361 (15,045) 1,716,316

28 General

29 General Revenues 3,327,026 (67,140) 3,259,886

30 Other Funds

31 Rhode Island Capital Plan Funds

32 Building Renovations and Repairs 150,000 0 150,000

33 Total – General 3,477,026 (67,140) 3,409,886

34 Grand Total – Attorney General 41,602,976 259,183 41,862,159

1 Corrections

2 Central Management

3 General Revenues 16,146,513 139,037 16,285,550

4 Federal Funds 29,460 125,931 155,391

5 Total – Central Management 16,175,973 264,968 16,440,941

6 Parole Board

7 General Revenues 1,307,720 39,129 1,346,849

8 Federal Funds 120,827 13,706 134,533

9 Total – Parole Board 1,428,547 52,835 1,481,382

10 Custody and Security

11 General Revenues 140,908,178 49,430 140,957,608

12 Federal Funds 810,693 168,087 978,780

13 Total – Custody and Security 141,718,871 217,517 141,936,388

14 Institutional Support

15 General Revenues 23,363,846 (2,072,551) 21,291,295

16 Other Funds

17 Rhode Island Capital Plan Funds

18 Asset Protection 3,000,000 (70,790) 2,929,210

19 Maximum – General Renovations 1,000,000 (454,263) 545,737

20 Dix Building Renovations 750,000 (375,000) 375,000

21 ISC Exterior Envelope and HVAC 1,750,000 (715,206) 1,034,794

22 Medium Infrastructure 5,000,000 50,270 5,050,270

23 High Security Renovations and Repairs 1,000,000 (1,000,000) 0

24 Total – Institutional Support 35,863,846 (4,637,540) 31,226,306

25 Institutional Based Rehab./Population Management

26 General Revenues 13,571,143 93,008 13,664,151

27 Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender

28 discharge planning.

29 Federal Funds 751,423 212,125 963,548

30 Restricted Receipts 44,473 5,043 49,516

31 Total – Institutional Based Rehab/Population Mgt.14,367,039 310,176 14,677,215

32 Healthcare Services

33 General Revenues 24,186,222 1,471,133 25,657,355

34 Community Corrections

General Revenues

17,579,601

(1,034,991)

16,544,610

Federal Funds

84,437

24,675

109,112

Restricted Receipts

14,883

Total – Community Corrections

17,678,921

(1,010,316)

16,668,605

Grand Total – Corrections

251,419,419

(3,331,227)

248,088,192

6 Judiciary

7 Supreme Court

8 General Revenues

9 General Revenues 28,913,032 (165,489) 28,747,543

10 Provided however, that no more than ~~$1,183,205~~ $1,303,816 in combined total shall be

11 offset to the Public Defender’s Office, the Attorney General’s Office, the Department of

12 Corrections, the Department of Children, Youth, and Families, and the Department of Public Safety

13 for square-footage occupancy costs in public courthouses and further provided that $230,000 be

14 allocated to the Rhode Island Coalition Against Domestic Violence for the domestic abuse court

15 advocacy project pursuant to Rhode Island General Law, Section 12-29-7 and that $90,000 be

16 allocated to Rhode Island Legal Services, Inc. to provide housing and eviction defense to indigent

17 individuals.

18 Defense of Indigents 3,960,979 554,557 4,515,536

19 Federal Funds 139,008 (241) 138,767

20 Restricted Receipts 3,317,943 445,303 3,763,246

21 Other Funds

22 Rhode Island Capital Plan Funds

23 Judicial Complexes - HVAC 1,000,000 0 1,000,000

24 Judicial Complexes Asset Protection 950,000 181,961 1,131,961

25 Licht Judicial Complex Restoration 750,000 27,644 777,644

26 Licht Window Exterior Restoration 800,000 3,729 803,729

27 Noel Shelled Courtroom Build Out 3,939,066 (1,639,066) 2,300,000

28 Total - Supreme Court 43,770,028 (591,602) 43,178,426

29 Judicial Tenure and Discipline

30 General Revenues 150,684 (652) 150,032

31 Superior Court

32 General Revenues 23,787,395 (575,343) 23,212,052

33 Federal Funds 71,376 (20,983) 50,393

34 Restricted Receipts 398,089 85 398,174

1 Total – Superior Court 24,256,860 (596,241) 23,660,619

2 Family Court

3 General Revenues 21,510,608 236,192 21,746,800

4 Federal Funds 2,703,595 180,397 2,883,992

5 Total – Family Court 24,214,203 416,589 24,630,792

6 District Court

7 General Revenues 13,908,601 (654,726) 13,253,875

8 Federal Funds 65 (65) 0

9 Restricted Receipts 60,000 0 60,000

10 Total - District Court 13,968,666 (654,791) 13,313,875

11 Traffic Tribunal

12 General Revenues 9,763,589 (1,181,219) 8,582,370

13 Workers' Compensation Court

14 Restricted Receipts 8,309,954 (293,131) 8,016,823

15 Grand Total – Judiciary 124,433,984 (2,901,047) 121,532,937

16 Military Staff

17 General Revenues 3,081,090 16,591 3,097,681

18 Federal Funds 18,480,072 13,172,112 31,652,184

19 Restricted Receipts

20 RI Military Family Relief Fund 100,000 (45,000) 55,000

21 Other Funds

22 Rhode Island Capital Plan Funds

23 Armory of Mounted Command Roof Replacement700,000 (518,200) 181,800

24 Asset Protection 700,000 196,898 896,898

25 Bristol Readiness Center 125,000 (125,000) 0

26 Joint Force Headquarters Building 7,106,152 (904,492) 6,201,660

27 Middletown Armory Land Transfer 0 1,189,380 1,189,380

28 Grand Total – Military Staff 30,292,314 12,982,289 43,274,603

29 Public Safety

30 Central Management

31 General Revenues 1,013,929 39,813 1,053,742

32 Federal Funds 6,714,457 4,210,741 10,925,198

33 Total – Central Management 7,728,386 4,250,554 11,978,940

34 E-911 Emergency Telephone System

1 General Revenues 6,968,614 (618,339) 6,350,275

2 Security Services

3 General Revenues 25,197,459 (273,920) 24,923,539

4 Municipal Police Training Academy

5 General Revenues 253,024 34,513 287,537

6 Federal Funds 372,958 46,832 419,790

7 Total – Municipal Police Training Academy 625,982 81,345 707,327

8 State Police

9 General Revenues 69,903,992 1,513,278 71,417,270

10 Federal Funds 8,526,488 3,782,433 12,308,921

11 Restricted Receipts 552,603 571,014 1,123,617

12 Other Funds

13 Rhode Island Capital Plan Funds

14 DPS Asset Protection 250,000 392,429 642,429

15 Training Academy Upgrades 500,000 (142,064) 357,936

16 Facilities Master Plan 100,000 350,000 450,000

17 Lottery Commission Assistance 1,494,883 (1,494,883) 0

18 Airport Corporation Assistance 149,811 (4,746) 145,065

19 Road Construction Reimbursement 2,201,511 43,458 2,244,969

20 Weight and Measurement Reimbursement 304,989 95,011 400,000

21 Total – State Police 83,984,277 5,105,930 89,090,207

22 Grand Total – Public Safety 124,504,718 8,545,570 133,050,288

23 Office of Public Defender

24 General Revenues 12,575,531 (516,219) 12,059,312

25 Federal Funds 100,985 (25,320) 75,665

26 Grand Total – Office of Public Defender 12,676,516 (541,539) 12,134,977

27 Emergency Management Agency

28 General Revenues 2,043,945 164,274 2,208,219

29 Federal Funds 16,335,897 3,875,086 20,210,983

30 Restricted Receipts 450,985 63,854 514,839

31 Other Funds

32 Rhode Island Capital Plan Funds

33 RI Statewide Communications Network 1,494,414 0 1,494,414

34 Grand Total – Emergency Management Agency20,325,241 4,103,214 24,428,455

1 Environmental Management

2 Office of the Director

3 General Revenues 6,989,682 (253,936) 6,735,746

4 Of this general revenue amount, $50,000 is appropriated to the Conservation Districts.

5 Federal Funds 212,741 0 212,741

6 Restricted Receipts 3,840,985 78,099 3,919,084

7 Total – Office of the Director 11,043,408 (175,837) 10,867,571

8 Natural Resources

9 General Revenues 22,108,783 120,950 22,229,733

10 Federal Funds 21,587,314 (288,255) 21,299,059

11 Restricted Receipts 3,993,561 (258,613) 3,734,948

12 Other Funds

13 DOT Recreational Projects 2,339,312 (1,577,312) 762,000

14 Blackstone Bikepath Design 2,075,848 (1,075,848) 1,000,000

15 Transportation MOU 84,527 (74,241) 10,286

16 Rhode Island Capital Plan Funds

17 Blackstone Valley Park Improvements 250,000 135,740 385,740

18 Dam Repair 1,900,000 (1,660,000) 240,000

19 Fort Adams Rehabilitation 300,000 17,353 317,353

20 Recreational Facilities Improvements 2,500,000 (400,000) 2,100,000

21 Galilee Piers Upgrade 1,750,000 (1,540,000) 210,000

22 Fish & Wildlife Maintenance Facilities 150,000 (150,000) 0

23 Natural Resources Offices/Visitor’s Center 5,000,000 (4,825,000) 175,000

24 Marine Infrastructure and Pier Development 1,000,000 (242,660) 757,340

25 State Recreation Building Demolition 100,000 89,202 189,202

26 Fort Adams Sailing Improvements 0 75,249 75,249

27 Newport Pier 0 193,750 193,750

28 Total – Natural Resources 65,139,345 (11,459,685) 53,679,660

29 Environmental Protection

30 General Revenues 12,742,750 (257,553) 12,485,197

31 Federal Funds 9,963,105 260,221 10,223,326

32 Restricted Receipts 9,745,745 (1,704,152) 8,041,593

33 Other Funds

34 Transportation MOU 55,154 28,930 84,084

Total – Environmental Protection

32,506,754

(1,672,554)

30,834,200

Grand Total – Environmental Management

108,689,507

(13,308,076)

95,381,431

3 Coastal Resources Management Council

4 General Revenues 2,760,157 (92,854) 2,667,303

5 Federal Funds 2,733,267 1,593,287 4,326,554

6 Restricted Receipts 250,000 0 250,000

7 Other Funds

8 Rhode Island Capital Plan Funds

9 Rhode Island Coastal Storm Risk Study 525,000 0 525,000

10 Narragansett Bay SAMP 200,000 50,000 250,000

11 Green Hill Pond Dredging Study 0 28,875 28,875

12 Grand Total – Coastal Resources Mgmt. Council 6,468,424 1,579,308 8,047,732

13 Transportation

14 Central Management

15 Federal Funds 6,503,262 (190,833) 6,312,429

16 Other Funds

17 Gasoline Tax 4,741,088 2,541,479 7,282,567

18 Total – Central Management 11,244,350 2,350,646 13,594,996

19 Management and Budget

20 Other Funds

21 Gasoline Tax 5,822,202 (3,426,628) 2,395,574

22 Infrastructure Engineering

23 Federal Funds

24 Federal Funds 288,650,305 29,551,052 318,201,357

25 Federal Funds – Stimulus 4,386,593 (4,386,593) 0

26 Restricted Receipts 3,034,406 (27,681) 3,006,725

27 Other Funds

28 Gasoline Tax 75,836,779 4,556,030 80,392,809

29 Toll Revenue 41,000,000 (34,000,000) 7,000,000

30 Land Sale Revenue 2,647,815 3,717,197 6,365,012

31 Rhode Island Capital Plan Funds

32 RIPTA Land and Buildings 90,000 18,134 108,134

1 Highway Improvement Program 35,851,346 7,643,871 43,495,217

Total - Infrastructure Engineering

454,004,691

7,406,297

461,410,988

Infrastructure Maintenance

Other Funds

Gasoline Tax

18,918,661

(3,765,326)

15,153,335

Non-Land Surplus Property

50,000

Outdoor Advertising

100,000

(100,000)

Utility Access Permit Fees

500,000

(450,000)

50,000

Rhode Island Highway Maintenance Account

97,007,238

33,249,209

130,256,447

Rhode Island Capital Plan Funds

Maintenance Facilities Improvements

523,989

(430,714)

93,275

Salt Storage Facilities

1,000,000

(70,775)

929,225

Maintenance Equipment Replacement

1,500,000

Train Station Maintenance and Repairs

350,000

(95,140)

254,860

Total – Infrastructure Maintenance

119,949,888

28,337,254

148,287,142

Grand Total – Transportation

591,021,131

34,667,569

625,688,700

17 Statewide Totals

18 General Revenues 3,908,207,061 25,627,318 3,933,834,379

19 Federal Funds 3,208,172,271 126,294,141 3,334,466,412

20 Restricted Receipts 281,812,633 5,284,970 287,097,603

21 Other Funds 2,174,549,841 16,406,803 2,190,956,644

22 Statewide Grand Total 9,572,741,806 173,613,232 9,746,355,038

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

24 appropriation.

25 SECTION 3. Upon the transfer of any function of a department or agency to another

26 department or agency, the Governor is hereby authorized by means of executive order to transfer

27 or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected

28 thereby.

29 SECTION 4. From the appropriation for contingency shall be paid such sums as may be

30 required at the discretion of the Governor to fund expenditures for which appropriations may not

31 exist. Such contingency funds may also be used for expenditures in the several departments and

32 agencies where appropriations are insufficient, or where such requirements are due to unforeseen

1 property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as

2 amended. All expenditures and transfers from this account shall be approved by the Governor.

3 SECTION 5. The general assembly authorizes the state controller to establish the internal

4 service accounts shown below, and no other, to finance and account for the operations of state

5 agencies that provide services to other agencies, institutions and other governmental units on a cost

6 reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in

7 a businesslike manner, promote efficient use of services by making agencies pay the full costs

8 associated with providing the services, and allocate the costs of central administrative services

9 across all fund types, so that federal and other non-general fund programs share in the costs of

10 general government support. The controller is authorized to reimburse these accounts for the cost

11 of work or services performed for any other department or agency subject to the following

12 expenditure limitations:

13 FY 2019 FY 2019 FY 2019

14 Enacted Change Final

15 Account

16 State Assessed Fringe Benefit Internal Service Fund 41,383,271 (493,865) 40,889,406

17 Administration Central Utilities Internal Service Fund 22,910,320 139,245 23,049,565

18 State Central Mail Internal Service Fund 6,539,120 (254,948) 6,284,172

19 State Telecommunications Internal Service Fund 3,602,419 (200,199) 3,402,220

20 State Automotive Fleet Internal Service Fund 12,549,973 107,363 12,657,336

21 Surplus Property Internal Service Fund 3,000 0 3,000

22 Health Insurance Internal Service Fund 251,953,418 627,641 252,581,059

23 State Fleet Revolving Loan Fund 273,786 0 273,786

24 Other Post-Employment Benefits Fund 63,858,483 0 63,858,483

25 Capitol Police Internal Service Fund 1,395,433 38,881 1,434,314

26 Corrections Central Distribution Center Internal Service Fund 6,769,493 21,459 6,790,952

27 Correctional Industries Internal Service Fund 8,050,590 38,673 8,089,263

28 Secretary of State Record Center Internal Service Fund 947,539 35,863 983,402

29 Human Resources Internal Service Fund 12,131,620 1,246,234 13,377,854

30 DCAMM Facilities Internal Service Fund 39,212,184 (519,112) 38,693,072

31 Information Technology Internal Service Fund 32,282,229 6,795,117 39,077,346

32 SECTION 6. Legislative Intent - The General Assembly may provide a written "statement

33 of legislative intent" signed by the chairperson of the House Finance Committee and by the

1 contained in Section 1 of this Article. The statement of legislative intent shall be kept on file in the

2 House Finance Committee and in the Senate Finance Committee.

3 At least twenty (20) days prior to the issuance of a grant or the release of funds, which

4 grant or funds are listed on the legislative letter of intent, all department, agency and corporation

5 directors, shall notify in writing the chairperson of the House Finance Committee and the

6 chairperson of the Senate Finance Committee of the approximate date when the funds are to be

7 released or granted.

8 SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby

9 appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds

10 required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund

11 and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2019.

12 SECTION 8. Appropriation of Employment Security Funds -- There is hereby appropriated

13 pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed

14 for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2019.

15 SECTION 9. Appropriation of Lottery Division Funds -- There is hereby appropriated to

16 the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes of

17 paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2019.

18 SECTION 10. Appropriation of CollegeBoundSaver Funds – There is hereby appropriated

19 to the Office of the General Treasurer designated funds received under the CollegeBoundSaver

20 program for transfer to the Division of Higher Education Assistance within the Office of the

21 Postsecondary Commissioner to support student financial aid for the fiscal year ending June 30,

22 2019.

23 SECTION 11. Departments and agencies listed below may not exceed the number of full-

24 time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do

25 not include seasonal or intermittent positions whose scheduled period of employment does not

26 exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and

27 twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals

28 engaged in training, the completion of which is a prerequisite of employment. Provided, however,

29 that the Governor or designee, Speaker of the House of Representatives or designee, and the

30 President of the Senate or designee may authorize an adjustment to any limitation. Prior to the

31 authorization, the State Budget Officer shall make a detailed written recommendation to the

32 Governor, the Speaker of the House, and the President of the Senate. A copy of the recommendation

33 and authorization to adjust shall be transmitted to the chairman of the House Finance Committee,

34 Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

1 State employees whose funding is from non-state general revenue funds that are time

2 limited shall receive limited term appointment with the term limited to the availability of non-state

3 general revenue funding source.

4 FY 2019 FTE POSITION AUTHORIZATION

5 Departments and Agencies Full-Time Equivalent

6 Administration 655.7

7 Business Regulation 161.0

8 Executive Office of Commerce 16.0

9 Labor and Training 409.7

10 Revenue 604.5

11 Legislature 298.5

12 Office of the Lieutenant Governor 8.0

13 Office of the Secretary of State 59.0

14 Office of the General Treasurer 89.0

15 Board of Elections 13.0

16 Rhode Island Ethics Commission 12.0

17 Office of the Governor 45.0

18 Commission for Human Rights 14.5

19 Public Utilities Commission 53.0

20 Office of Health and Human Services 192.0

21 Children, Youth, and Families ~~631.5~~ 629.5

22 Health ~~514.6~~ 517.6

23 Human Services ~~1,020.1~~ 1,030.1

24 Behavioral Healthcare, Developmental Disabilities, and

25 Hospitals ~~1,302.4~~ 1,304.4

26 Provided that 3.0 of the total authorization would be available only for a quality

27 improvement team to ensure that community based agencies transition to providing integrated

28 services to adults with developmental disabilities that comply with the consent decree.

29 Office of the Child Advocate 10.0

30 Commission on the Deaf and Hard of Hearing 4.0

31 Governor’s Commission on Disabilities 4.0

32 Office of the Mental Health Advocate 4.0

33 Elementary and Secondary Education 135.1

34 School for the Deaf 60.0

1 Davies Career and Technical School 126.0

2 Office of Postsecondary Commissioner 36.0

3 Provided that 1.0 of the total authorization would be available only for positions that are

4 supported by third-party funds, 5.0 would be available only for positions at the Westerly Higher

5 Education Center and Job Skills Center, and 10.0 would be available only for positions at the

6 Nursing Education Center.

7 University of Rhode Island 2,555.0

8 Provided that 622.8 of the total authorization would be available only for positions that are

9 supported by third-party funds.

10 Rhode Island College 949.2

11 Provided that 76.0 of the total authorization would be available only for positions that are

12 supported by third-party funds.

13 Community College of Rhode Island 854.1

14 Provided that 89.0 of the total authorization would be available only for positions that are

15 supported by third-party funds.

16 Rhode Island State Council on the Arts 8.6

17 RI Atomic Energy Commission 8.6

18 Historical Preservation and Heritage Commission 15.6

19 Office of the Attorney General 237.1

20 Corrections 1,416.0

21 Judicial 723.3

22 Military Staff 92.0

23 Emergency Management Agency 32.0

24 Public Safety ~~564.6~~ 563.6

25 Office of the Public Defender 95.0

26 Environmental Management 395.0

27 Coastal Resources Management Council 30.0

28 Transportation 755.0

29 Total ~~15,209.7~~ 15,221.7

30 SECTION 12. Notwithstanding any general laws to the contrary, the Department of

31 Environmental Management shall transfer to the State Controller the sum of one million one

32 hundred eleven thousand six-hundred sixty-one dollars ($1,111,661) from the Government Entities

33 - Inceptors bond funds account by June 30, 2019.

34 SECTION 13. Notwithstanding any general laws to the contrary, the Department of

2 RELATING TO HEALTHCARE MARKET STABILITY

3 SECTION 1. Section 27-18.5-2 of the General Laws in Chapter 27-18.5 entitled

4 "Individual Health Insurance Coverage" is hereby amended to read as follows:

5 27-18.5-2. Definitions.

6 The following words and phrases as used in this chapter have the following meanings

7 unless a different meaning is required by the context:

8 (1) "Bona fide association" means, with respect to health insurance coverage offered in this

9 state, an association which:

10 (i) Has been actively in existence for at least five (5) years;

11 (ii) Has been formed and maintained in good faith for purposes other than obtaining

12 insurance;

13 (iii) Does not condition membership in the association on any health status-related factor

14 relating to an individual (including an employee of an employer or a dependent of an employee);

15 (iv) Makes health insurance coverage offered through the association available to all

16 members regardless of any health status-related factor relating to the members (or individuals

17 eligible for coverage through a member);

18 (v) Does not make health insurance coverage offered through the association available

19 other than in connection with a member of the association;

20 (vi) Is composed of persons having a common interest or calling;

21 (vii) Has a constitution and bylaws; and

22 (viii) Meets any additional requirements that the director may prescribe by regulation;

23 (2) "COBRA continuation provision" means any of the following:

24 (i) Section 4980(B) of the Internal Revenue Code of 1986, 26 U.S.C. § 4980B, other than

25 subsection (f)(1) of that section insofar as it relates to pediatric vaccines;

26 (ii) Part 6 of subtitle B of Title I of the Employee Retirement Income Security Act of 1974,

27 29 U.S.C. § 1161 et seq., other than Section 609 of that act, 29 U.S.C. § 1169; or

28 (iii) Title XXII of the United States Public Health Service Act, 42 U.S.C. § 300bb-1 et seq.;

29 (3) "Creditable coverage" has the same meaning as defined in the United States Public

30 Health Service Act, Section 2701(c), 42 U.S.C. § 300gg(c), as added by P.L. 104-191;

1 (4) "Director" means the director of the department of business regulation;

2 (5) "Eligible individual" means an individual:

3 (i) For whom, as of the date on which the individual seeks coverage under this chapter, the

4 aggregate of the periods of creditable coverage is eighteen (18) or more months and whose most

5 recent prior creditable coverage was under a group health plan, a governmental plan established or

6 maintained for its employees by the government of the United States or by any of its agencies or

7 instrumentalities, or church plan (as defined by the Employee Retirement Income Security Act of

8 1974, 29 U.S.C. § 1001 et seq.);

9 (ii) Who is not eligible for coverage under a group health plan, part A or part B of title

10 XVIII of the Social Security Act, 42 U.S.C. § 1395c et seq. or 42 U.S.C. § 1395j et seq., or any

11 state plan under title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (or any successor

12 program), and does not have other health insurance coverage;

13 (iii) With respect to whom the most recent coverage within the coverage period was not

14 terminated based on a factor described in § 27-18.5-4(b)(relating to nonpayment of premiums or

15 fraud);

16 (iv) If the individual had been offered the option of continuation coverage under a COBRA

17 continuation provision, or under chapter 19.1 of this title or under a similar state program of this

18 state or any other state, who elected the coverage; and

19 (v) Who, if the individual elected COBRA continuation coverage, has exhausted the

20 continuation coverage under the provision or program;

21 (6) "Group health plan" means an employee welfare benefit plan as defined in section 3(1)

22 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1), to the extent that

23 the plan provides medical care and including items and services paid for as medical care to

24 employees or their dependents as defined under the terms of the plan directly or through insurance,

25 reimbursement or otherwise;

26 (7) "Health insurance carrier" or "carrier" means any entity subject to the insurance laws

27 and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to

28 contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care

29 services, including, without limitation, an insurance company offering accident and sickness

30 insurance, a health maintenance organization, a nonprofit hospital, medical or dental service

31 corporation, or any other entity providing a plan of health insurance or health benefits by which

32 health care services are paid or financed for an eligible individual or his or her dependents by such

33 entity on the basis of a periodic premium, paid directly or through an association, trust, or other

34 intermediary, and issued, renewed, or delivered within or without Rhode Island to cover a natural

1 person who is a resident of this state, including a certificate issued to a natural person which

2 evidences coverage under a policy or contract issued to a trust or association;

3 (8)(i) "Health insurance coverage" means a policy, contract, certificate, or agreement

4 offered by a health insurance carrier to provide, deliver, arrange for, pay for or reimburse any of

5 the costs of health care services. Health insurance coverage includes short-term limited duration

6 policies and any policy that pays on a cost-incurred basis, except as otherwise specifically exempted

7 by subsections (ii), (iii), (iv), or (v) of this section.

8 (ii) "Health insurance coverage" does not include one or more, or any combination of, the

9 following:

10 (A) Coverage only for accident, or disability income insurance, or any combination of

11 those;

12 (B) Coverage issued as a supplement to liability insurance;

13 (C) Liability insurance, including general liability insurance and automobile liability

14 insurance;

15 (D) Workers' compensation or similar insurance;

16 (E) Automobile medical payment insurance;

17 (F) Credit-only insurance;

18 (G) Coverage for on-site medical clinics; and

19 (H) Other similar insurance coverage, specified in federal regulations issued pursuant to

20 P.L. 104-191, under which benefits for medical care are secondary or incidental to other insurance

21 benefits~~; and~~

22 ~~(I) Short term limited duration insurance;~~

23 (iii) "Health insurance coverage" does not include the following benefits if they are

24 provided under a separate policy, certificate, or contract of insurance or are not an integral part of

25 the coverage:

26 (A) Limited scope dental or vision benefits;

27 (B) Benefits for long-term care, nursing home care, home health care, community-based

28 care, or any combination of these;

29 (C) Any other similar, limited benefits that are specified in federal regulation issued

30 pursuant to P.L. 104-191;

31 (iv) "Health insurance coverage" does not include the following benefits if the benefits are

32 provided under a separate policy, certificate, or contract of insurance, there is no coordination

33 between the provision of the benefits and any exclusion of benefits under any group health plan

34 maintained by the same plan sponsor, and the benefits are paid with respect to an event without

1 regard to whether benefits are provided with respect to the event under any group health plan

2 maintained by the same plan sponsor:

3 (A) Coverage only for a specified disease or illness; or

4 (B) Hospital indemnity or other fixed indemnity insurance; and

5 (v) "Health insurance coverage" does not include the following if it is offered as a separate

6 policy, certificate, or contract of insurance:

7 (A) Medicare supplemental health insurance as defined under section 1882(g)(1) of the

8 Social Security Act, 42 U.S.C. § 1395ss(g)(1);

9 (B) Coverage supplemental to the coverage provided under 10 U.S.C. § 1071 et seq.; and

10 (C) Similar supplemental coverage provided to coverage under a group health plan;

11 (9) "Health status-related factor" means any of the following factors:

12 (i) Health status;

13 (ii) Medical condition, including both physical and mental illnesses;

14 (iii) Claims experience;

15 (iv) Receipt of health care;

16 (v) Medical history;

17 (vi) Genetic information;

18 (vii) Evidence of insurability, including conditions arising out of acts of domestic violence;

19 and

20 (viii) Disability;

21 (10) "Individual market" means the market for health insurance coverage offered to

22 individuals other than in connection with a group health plan;

23 (11) "Network plan" means health insurance coverage offered by a health insurance carrier

24 under which the financing and delivery of medical care including items and services paid for as

25 medical care are provided, in whole or in part, through a defined set of providers under contract

26 with the carrier;

27 (12) "Preexisting condition" means, with respect to health insurance coverage, a condition

28 (whether physical or mental), regardless of the cause of the condition, that was present before the

29 date of enrollment for the coverage, for which medical advice, diagnosis, care, or treatment was

30 recommended or received within the six (6) month period ending on the enrollment date. Genetic

31 information shall not be treated as a preexisting condition in the absence of a diagnosis of the

32 condition related to that information; and

33 (13) "High-risk individuals" means those individuals who do not pass medical underwriting

34 standards, due to high health care needs or risks;

1 (14) "Wellness health benefit plan" means that health benefit plan offered in the individual

2 market pursuant to § 27-18.5-8; and

3 (15) "Commissioner" means the health insurance commissioner.

4 SECTION 2. Section 42-157-4 of the General Laws in Chapter 42-157 titled “Rhode Island

5 Health Benefit Exchange” is hereby amended to read as follows:

6 42-157-4. Financing.

7 (a) The department is authorized to assess insurers offering qualified health plans and

8 qualified dental plans. To support the functions of the exchange, insurers offering qualified health

9 plans and qualified dental plans must remit an assessment to the exchange each month, in a

10 timeframe and manner established by the exchange, equal to three and one-half percent (3.5%) of

11 the monthly premium charged by the insurer for each policy under the plan where enrollment is

12 through the exchange. ~~The revenue raised in accordance with this subsection shall not exceed the~~

13 ~~revenue able to be raised through the federal government assessment and shall be established in~~

14 ~~accordance and conformity with the federal government assessment upon those insurers offering~~

15 ~~products on the Federal Health Benefit exchange.~~ Revenues from the assessment shall be deposited

16 in a restricted receipt account for the sole use of the exchange and shall be exempt from the indirect

17 cost recovery provisions of § 35-4-27 of the general laws.

18 (b) The general assembly may appropriate general revenue to support the annual budget

19 for the exchange in lieu of or to supplement revenues raised from the assessment under § 42-157-

20 4(a).

21 (c) If the director determines that the level of resources obtained pursuant to § 42-157-4(a)

22 will be in excess of the budget for the exchange, the department shall provide a report to the

23 governor, the speaker of the house and the senate president identifying the surplus and detailing

24 how the assessment established pursuant to § 42-157-4(a) may be offset in a future year to reconcile

25 with impacted insurers and how any future supplemental or annual budget submission to the general

26 assembly may be revised accordingly.

27 SECTION 3. Chapter 42-157 of the General Laws entitled "Rhode Island Health Benefit

28 Exchange" is hereby amended by adding thereto the following section:

29 42-157-11. Exemptions from the shared responsibility payment penalty.

30 (a) Establishment of program. The exchange shall establish a program for determining

31 whether to grant a certification that an individual is entitled to an exemption from the Shared

32 Responsibility Payment Penalty set forth in section 44-30-101(c) of the general laws by reason of

33 religious conscience or hardship.

34 (b) Eligibility determinations. The exchange shall make determinations as to whether to

1 grant a certification described in subsection (a). The exchange shall notify the individual and the

2 tax administrator for the Rhode Island Department of Revenue of any such determination in such

3 a time and manner as the exchange, in consultation with the tax administrator, shall prescribe. In

4 notifying the tax administrator, the exchange shall adhere to the data privacy and data security

5 standards adopted in accordance with 45 C.F.R. 155.260. The exchange shall only be required to

6 notify the tax administrator to the extent that the exchange determines such disclosure is permitted

7 under 45 C.F.R. 155.260.

8 (c) Appeals. Any person aggrieved by the exchange’s determination of eligibility for an

9 exemption under this section has the right to an appeal in accordance with the procedures contained

10 within chapter 35 of title 42.

11 42-157-12. Special enrollment period for qualified individuals assessed a shared

12 responsibility payment penalty.

13 (a) Definitions. The following definition shall apply for purposes of this section:

14 (1) “Special enrollment period” means a period during which a qualified individual who is

15 assessed a penalty in accordance with section 44-30-101 may enroll in a qualified health plan

16 through the exchange outside of the annual open enrollment period.

17 (b) In the case of a qualified individual who is assessed a shared responsibility payment in

18 accordance with section 44-30-101 of the general laws and who is not enrolled in a qualified health

19 plan, the exchange must provide a special enrollment period consistent with this section and the

20 Federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the

21 Federal Care and Reconciliation Act of 2010 (Public Law 111-152), and any amendments to, or

22 regulations or guidance issued under, those acts.

23 (c) Effective Date. The exchange must ensure that coverage is effective for a qualified

24 individual who is eligible for a special enrollment period under this section on the first day of the

25 month after the qualified individual completes enrollment in a qualified health plan through the

26 exchange.

27 (d) Availability and length of special enrollment period. A qualified individual has sixty

28 (60) days from the date he or she is assessed a penalty in accordance with section 44-30-101 of the

29 general laws to complete enrollment in a qualified health plan through the exchange. The date of

30 assessment shall be determined in accordance with section 44-30-82 of the general laws.

31 42-157-13. Outreach to Rhode Island residents and individuals assessed a shared

32 responsibility payment penalty.

33 Outreach. The exchange, in consultation with the Office of the Health Insurance

34 Commissioner and the Division of Taxation, is authorized to engage in coordinated outreach efforts

1 to educate Rhode Island residents about the importance of health insurance coverage, their

2 responsibilities to maintain minimum essential coverage as defined in section 44-30-101 of the

3 general laws, the penalties for failure to maintain such coverage, and information on the services

4 available through the exchange.

5 42-157-14. Regulatory authority.

6 (a) Regulatory Authority. The exchange may promulgate regulations as necessary to carry

7 out the purposes of this chapter.

8 SECTION 4. Sections 42-157.1-1 and 42-157.1-5 of the General Laws in Chapter 42-157.1

9 entitled "Rhode Island Market Stability and Reinsurance Act" are hereby amended to read as

10 follows:

11 42-157.1-1. Short title and purpose.

12 (a) This chapter shall be known and may be cited as the "Rhode Island Market Stability

13 and Reinsurance Act."

14 (b) The purpose of this chapter is to authorize the director to create the Rhode Island

15 reinsurance program to stabilize health insurance rates and premiums in the individual market and

16 provide greater financial certainty to consumers of health insurance in this state.

17 ~~(c) Nothing in this chapter shall be construed as obligating the state to appropriate funds or~~

18 ~~make payments to carriers.~~

19 (c) No general revenue funding shall be used for reinsurance payments.

20 42-157.1-5. Establishment of program fund.

21 (a) ~~A fund shall be~~ The Health Insurance Market Integrity Fund is hereby established to

22 provide funding for the operation and administration of the program in carrying out the purposes

23 of the program under this chapter.

24 (b) The director is authorized to administer the fund.

25 (c) The fund shall consist of:

26 (1) Any pass-through funds received from the federal government under a waiver approved

27 under 42 U.S.C. § 18052;

28 (2) Any funds designated by the federal government to provide reinsurance to carriers that

29 offer individual health benefit plans in the state;

30 (3) Any funds designated by the state to provide reinsurance to carriers that offer individual

31 health benefit plans in the state; and

32 (4) Any other money from any other source accepted for the benefit of the fund.

33 ~~(d) Nothing in this chapter shall be construed as obligating the state to appropriate funds~~

34 ~~or make payments to carriers.~~

1 (d) No general revenue funding shall be used for reinsurance payments.

2 (e) A restricted receipt account shall be established for the fund which may be used for the

3 purposes set forth in this section and shall be exempt from the indirect cost recovery provisions of

4 section 35-4-27 of the general laws.

5 (f) Monies in the fund shall be used to provide reinsurance to health insurance carriers as

6 set forth in this chapter and its implementing regulations, and to support the personnel costs,

7 operating costs and capital expenditures of the exchange and the division of taxation that are

8 necessary to carry out the provisions of this chapter, sections 44-30-101 through 44-30-102 and

9 sections 42-157-11 through 42-157-14 of the general laws.

10 (g) Any excess monies remaining in the fund, not including any monies received from the

11 federal government pursuant to paragraphs (1) or (2) and after making the payments required by

12 subsection (f), may be used for preventative health care programs for vulnerable populations in

13 consultation with the executive office of health and human services.

14 42-157.1-7. ~~Program contingent on federal waiver and appropriation of state funding~~

15 Program contingent on federal waiver.

16 If the state innovation waiver request in § 42-157.1-6 is not approved, the director shall not

17 implement the program or provide reinsurance payments to eligible carriers.

18 SECTION 5. Chapter 44-30 of the General Laws entitled “Personal Income Tax” is hereby

19 amended by adding thereto the following sections:

20 44-30-101. Requirements concerning qualifying health insurance coverage.

21 (a) Definitions. For purposes of this section:

22 (1) “Applicable individual” has the same meaning as set forth in 26 U.S.C. § 5000A(d).

23 (2) “Minimum essential coverage” has the same meaning as set forth in 26 U.S. C. §

24 5000A(f).

25 (3) “Shared Responsibility Payment Penalty” means the penalty imposed pursuant to

26 subsection (c) of this section.

27 (4) “Taxpayer” means any resident individual, as defined in section 44-30-5 of the general

28 laws.

29 (b) Requirement to maintain minimum essential coverage. Every applicable individual

30 must maintain minimum essential coverage for each month beginning after December 31, 2019.

31 (c) Shared Responsibility Payment Penalty imposed for failing to maintain minimum

32 essential coverage. As of January 1, 2020, every applicable individual required to file a personal

33 income tax return pursuant to section 44-30-51 of the general laws, shall indicate on the return, in

34 a manner to be prescribed by the tax administrator, whether and for what period of time during the

1 relevant tax year the individual and his or her spouse and dependents who are applicable individuals

2 were covered by minimum essential coverage. If a return submitted pursuant to this subsection

3 fails to indicate that such coverage was in force or indicates that any applicable individuals did not

4 have such coverage in force, a Shared Responsibility Payment Penalty shall hereby be assessed as

5 a tax on the return.

6 (d) Shared Responsibility Payment Penalty calculation. Except as provided in subsection

7 (e), the Shared Responsibility Payment Penalty imposed shall be equal to a taxpayer’s federal

8 shared responsibility payment for the taxable year under section 5000A of the Internal Revenue

9 Code of 1986, as amended, and as in effect on the 15th day of December 2017.

10 (e) Exceptions.

11 (1) Penalty cap. The amount of the Shared Responsibility Payment Penalty imposed under

12 this section shall be determined, if applicable, using the statewide average premium for bronze-

13 level plans offered through the Rhode Island health benefits exchange rather than the national

14 average premium for bronze-level plans.

15 (2) Hardship exemption determinations. Determinations as to hardship exemptions shall

16 be made by the exchange under section 42-157-11 of the general laws.

17 (3) Religious conscience exemption determinations. Determinations as to religious

18 conscience exemptions shall be made by the exchange under section 42-157-11 of the general laws.

19 (4) Taxpayers with gross income below state filing threshold. No penalty shall be imposed

20 under this section with respect to any applicable individual for any month during a calendar year if

21 the taxpayer’s household income for the taxable year as described in section 1412(b)(1)(B) of the

22 Patient Protection and Affordable Care Act is less than the amount of gross income requiring the

23 taxpayer to file a return as set forth in section 44-30-51 of the general laws.

24 (5) Out of State Residents. No penalty shall be imposed by this section with respect to any

25 applicable individual for any month during which the individual is a bona fide resident of another

26 state.

27 (f) Health Insurance Market Integrity Fund. The tax administrator is authorized to withhold

28 from any state tax refund due to the taxpayer an amount equal to the calculated Shared

29 Responsibility Payment Penalty and shall place such amounts in the Health Insurance Market

30 Integrity Fund created pursuant to section 42-157.1-5 of the general laws.

31 (g) Deficiency. If, upon examination of a taxpayer’s return, the tax administrator

32 determines there is a deficiency because any refund due to the taxpayer is insufficient to satisfy the

33 Shared Responsibility Penalty or because there was no refund due, the tax administrator may notify

34 the taxpayer of such deficiency in accordance with section 44-30-81 and interest shall accrue on

1 such deficiency as set forth in section 44-30-84. All monies collected on said deficiency shall be

2 placed in the Health Insurance Market Integrity Fund created pursuant to section 42-157.1-5 of the

3 general laws.

4 (h) Application of Federal law. The Shared Responsibility Payment Penalty shall be

5 assessed and collected as set forth in this chapter and, where applicable, consistent with regulations

6 promulgated by the federal government, the exchange and/or the tax administrator. Any federal

7 regulation implementing section 5000A of the Internal Revenue Code of 1986, as amended, and in

8 effect on the 15th day of December 2017, shall apply as though incorporated into the Rhode Island

9 Code of Regulations. Federal guidance interpreting these federal regulations shall similarly apply.

10 Except as provided in subsections (j) and (k), all references to federal law shall be construed as

11 references to federal law as in effect on December 15, 2017, including applicable regulations and

12 administrative guidance that were in effect as of that date.

13 (i) Unavailability of Federal premium tax credits. For any taxable year in which federal

14 premium tax credits available pursuant to 26 U.S.C. section 36B become unavailable due to the

15 federal government repealing that section or failing to fund the premium tax credits, the Shared

16 Responsibility Payment Penalty under this section shall not be enforced.

17 (j) Imposition of Federal shared responsibility payment. For any taxable year in which a

18 federal penalty under section 5000A of the Internal Revenue Code of 1986 is imposed on a taxpayer

19 in an amount comparable to the Shared Responsibility Payment Penalty assessed under this section,

20 the state penalty shall not be enforced.

21 (k) Agency Coordination. Where applicable, the tax administrator shall implement this

22 section in consultation with the office of the health insurance commissioner, the office of

23 management and budget, the executive office of health and human services, and the Rhode Island

24 health benefits exchange.

25 44-30-102. Reporting Requirement for Applicable Entities providing Minimum

26 Essential Coverage.

27 (a) Findings.

28 (1) Ensuring the health of insurance markets is a responsibility reserved for states under

29 the McCarran-Ferguson Act and other federal law.

30 (2) There is substantial evidence that being uninsured causes health problems and

31 unnecessary deaths.

32 (3) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of the

33 general laws is necessary to protect the health and welfare of the state’s residents.

34 (4) The reporting requirement provided for in this section is necessary for the successful

1 implementation of the Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c)

2 of the general laws. This requirement provides the only widespread source of third-party reporting

3 to help taxpayers and the tax administrator verify whether an applicable individual maintains

4 minimum essential coverage. There is compelling evidence that third-party reporting is crucial for

5 ensuring compliance with tax provisions.

6 (5) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of

7 the general laws, and therefore the reporting requirement in this section, is necessary to ensure a

8 stable and well-functioning health insurance market. There is compelling evidence that, without

9 an effective Shared Responsibility Payment Penalty in place for those who go without coverage,

10 there would be substantial instability in health insurance markets, including higher prices and the

11 possibility of areas without any insurance available.

12 (6) The Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c) of the

13 general laws, and therefore the reporting requirement in this section, is also necessary to foster

14 economic stability and growth in the state.

15 (7) The reporting requirement in this section has been narrowly tailored to support

16 compliance with the Shared Responsibility Payment Penalty imposed by subsection 44-30-101(c)

17 of the general laws, while imposing only an incidental burden on reporting entities. In particular,

18 the information that must be reported is limited to the information that must already be reported

19 under a similar federal reporting requirement under section 6055 of the Internal Revenue Code of

20 1986. In addition, this section provides that its reporting requirement may be satisfied by providing

21 the same information that is currently reported under such federal requirement.

22 (b) Definitions. For purposes of this section:

23 (1) “Applicable entity” means:

24 (i) An employer or other sponsor of an employment-based health plan that offers

25 employment-based minimum essential coverage to any resident of Rhode Island.

26 (ii) The Rhode Island Medicaid single state agency providing Medicaid or Children’s

27 Health Insurance Program (CHIP) coverage.

28 (iii) Carriers licensed or otherwise authorized by the Rhode Island office of the health

29 insurance commissioner to offer health coverage providing coverage that is not described in

30 subparagraphs (i) or (ii).

31 (2) “Minimum essential coverage” has the meaning given such term by section 44-30-

32 101(a)(2) of the general laws.

33 (c) For purposes of administering the Shared Responsibility Payment Penalty to individuals

34 who do not maintain minimum essential coverage under subsection 44-30-101(b) of the general

1 laws, every applicable entity that provides minimum essential coverage to an individual during a

2 calendar year shall, at such time as the tax administrator may prescribe, file a form in a manner

3 prescribed by the tax administrator.

4 (d) Form and manner of return.

5 (1) A return, in such form as the tax administrator may prescribe, contains the following

6 information:

7 (i) the name, address and TIN of the primary insured and the name and TIN of each other

8 individual obtaining coverage under the policy;

9 (ii) the dates during which such individual was covered under minimum essential coverage

10 during the calendar year, and

11 (iii) such other information as the tax administrator may require.

12 (2) Sufficiency of information submitted for federal reporting. Notwithstanding the

13 requirements of paragraph (1), a return shall not fail to be a return described in this section if it

14 includes the information contained in a return described in section 6055 of the Internal Revenue

15 Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.

16 (e) Statements to be furnished to individuals with respect to whom information is reported.

17 (1) Any applicable entity providing a return under the requirements of this section shall

18 also provide to each individual whose name is included in such return a written statement

19 containing the name, address and contact information of the person required to provide the return

20 to the tax administrator and the information included in the return with respect to the individuals

21 listed thereupon. Such written statement must be provided on or before January 31 of the year

22 following the calendar year for which the return was required to be made or by such date as may

23 be determined by the tax administrator.

24 (2) Sufficiency of federal statement. Notwithstanding the requirements of paragraph (1),

25 the requirements of this subsection (e) may be satisfied by a written statement provided to an

26 individual under section 6055 of the Internal Revenue Code of 1986, as that section is in effect and

27 interpreted on the 15th day of December 2017.

28 (f) Reporting responsibility.

29 (1) Coverage provided by governmental units. In the case of coverage provided by an

30 applicable entity that is any governmental unit or any agency or instrumentality thereof, the officer

31 or employee who enters into the agreement to provide such coverage (or the person appropriately

32 designated for purposes of this section) shall be responsible for the returns and statements required

33 by this section.

34 (2) Delegation. An applicable entity may contract with third-party service providers,

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art.012/7/012/6/012/5/012/4/012/3/012/2/012/1

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1 ARTICLE 12 AS AMENDED

2 RELATING TO ECONOMIC DEVELOPMENT

3 SECTION 1. Section 42-64.20-3 of the General Laws in Chapter 42-64.20 entitled

4 "Rebuild Rhode Island Tax Credit Act" is hereby amended to read as follows:

5 42-64.20-3. Definitions.

6 (1) "Adaptive reuse" means the conversion of an existing structure from the use for which

7 it was constructed to a new use by maintaining elements of the structure and adapting such elements

8 to a new use.

9 (2) "Affiliate" means an entity that directly or indirectly controls, is under common control

10 with, or is controlled by the business. Control exists in all cases in which the entity is a member of

11 a controlled group of corporations as defined pursuant to § 1563 of the Internal Revenue Code of

12 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of organizations under common

13 control as defined pursuant to subsection (b) or (c) of § 414 of the Internal Revenue Code of 1986

14 (26 U.S.C. § 414). A taxpayer may establish by clear and convincing evidence, as determined by

15 the tax administrator, that control exists in situations involving lesser percentages of ownership

16 than required by those statutes. An affiliate of a business may contribute to meeting either the

17 capital investment or full-time employee requirements of a business that applies for a credit under

18 this chapter.

19 (3) "Affordable housing" means housing for sale or rent with combined rental costs or

20 combined mortgage loan debt service, property taxes, and required insurance that do not exceed

21 thirty percent (30%) of the gross annual income of a household earning up to eighty percent (80%)

22 of the area median income, as defined annually by the United States Department of Housing and

23 Urban Development.

24 (4) "Applicant" means a developer applying for a rebuild Rhode Island tax credit under this

25 chapter.

26 (5) "Business" means a corporation as defined in § 44-11-1(4), or a partnership, an S

27 corporation, a non-profit corporation, a sole proprietorship, or a limited liability corporation. A

28 business shall include an affiliate of the business if that business applies for a credit based upon

29 any capital investment made by an affiliate.

30 (6) "Capital investment" in a real estate project means expenses by a developer incurred

1 after application for:

2 (i) Site preparation and construction, repair, renovation, improvement, equipping, or

3 furnishing on real property or of a building, structure, facility, or improvement to real property;

4 (ii) Obtaining and installing furnishings and machinery, apparatus, or equipment, including

5 but not limited to material goods for the operation of a business on real property or in a building,

6 structure, facility, or improvement to real property.

7 In addition to the foregoing, if a developer acquires or leases a qualified development

8 project, the capital investment made or acquired by the seller or owner, as the case may be, if

9 pertaining primarily to the premises of the qualified development project, shall be considered a

10 capital investment by the developer and, if pertaining generally to the qualified development project

11 being acquired or leased, shall be allocated to the premises of the qualified development project on

12 the basis of the gross leasable area of the premises in relation to the total gross leasable area in the

13 qualified development project. The capital investment described herein shall be defined through

14 rules and regulations promulgated by the commerce corporation.

15 (7) "Certified historic structure" means a property which is located in the state of Rhode

16 Island and is

17 (i) Listed individually on the national register of historic places; or

18 (ii) Listed individually in the state register of historic places; or

19 (iii) Located in a registered historic district and certified by either the Rhode Island

20 historical preservation and heritage commission created pursuant to § 42-45-2 or the Secretary of

21 the Interior as being of historic significance to the district.

22 (8) "Commerce corporation" means the Rhode Island commerce corporation established

23 pursuant to § 42-64-1 et seq.

24 (9) "Commercial" shall mean non-residential development.

25 (10) "Developer" means a person, firm, business, partnership, association, political

26 subdivision, or other entity that proposes to divide, divides, or causes to be divided real property

27 into a subdivision or proposes to build, or builds a building or buildings or otherwise improves land

28 or existing structures, which division, building, or improvement qualifies for benefits under this

29 chapter.

30 (11) "Development" means the improvement of land through the carrying out of building,

31 engineering, or other operations in, on, over, or under land, or the making of any material change

32 in the use of any buildings or land for the purposes of accommodating land uses.

33 (12) "Eligibility period" means the period in which a developer may claim a tax credit

34 under this act, beginning with the tax period in which the commerce corporation accepts

1 certification from the developer that it has met the requirements of the act and extending thereafter

2 for a term of five (5) years.

3 (13) "Full-time employee" means a person who is employed by a business for consideration

4 for a minimum of at least thirty-five (35) hours per week, or who renders any other standard of

5 service generally accepted by custom or practice as full-time employment, or who is employed by

6 a professional employer organization pursuant to an employee leasing agreement between the

7 business and the professional employer organization for a minimum of thirty-five (35) hours per

8 week, or who renders any other standard of service generally accepted by custom or practice as

9 full-time employment, and whose wages are subject to withholding.

10 (14) "Hope community" means a municipality for which the five-year (5) average

11 percentage of families with income below the federal poverty level exceeds the state five-year (5)

12 average percentage, both as most recently reported by the U.S. Department of Commerce, Bureau

13 of the Census.

14 (15) “Manufacturer” shall mean any entity that:

15 (a) Uses any premises within the state primarily for the purpose of transforming raw

16 materials into a finished product for trade through any or all of the following operations: adapting,

17 altering, finishing, making, processing, refining, metalworking, and ornamenting, but shall not

18 include fabricating processes incidental to warehousing or distribution of raw materials, such as

19 alteration of stock for the convenience of a customer; or

20 (b) Is described in codes 31-33 of the North American Industry Classification System, as

21 revised from time to time.

22 ~~(15)~~(16) "Mixed use" means a development comprising both commercial and residential

23 components.

24 (176) "Partnership" means an entity classified as a partnership for federal income tax

25 purposes.

26 (187) "Placed in service" means the earlier of i) substantial construction or rehabilitation

27 work has been completed which would allow for occupancy of an entire structure or some

28 identifiable portion of a structure, as established in the application approved by the commerce

29 corporation board or ii) receipt by the developer of a certificate, permit or other authorization

30 allowing for occupancy of the project or some identifiable portion of the project by the municipal

31 authority having jurisdiction.

32 (198) "Project" means qualified development project as defined under subsection ~~(22) (23)~~.

33 (2019) "Project area" means land or lands under common ownership or control in which a

34 qualified development project is located.

1 (210) "Project cost" means the costs incurred in connection with the qualified development

2 project or qualified residential or mixed use project by the applicant until the issuance of a

3 permanent certificate of occupancy, or until such other time specified by the commerce corporation,

4 for a specific investment or improvement, as defined through rules and regulations promulgated by

5 the commerce corporation.

6 (221) "Project financing gap" means

7 (i) The part of the total project cost that remains to be financed after all other sources of

8 capital have been accounted for (such sources will include, but not be limited to, developer-

9 contributed capital), which shall be defined through rules and regulations promulgated by the

10 commerce corporation, or

11 (ii) The amount of funds that the state may invest in a project to gain a competitive

12 advantage over a viable and comparable location in another state by means described in this chapter.

13 (232) "Qualified development project" means a specific construction project or

14 improvement, including lands, buildings, improvements, real and personal property or any interest

15 therein, including lands under water, riparian rights, space rights and air rights, acquired, owned,

16 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 the

18 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 ~~(24)~~(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 consultation

29 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.

1 SECTION 2. 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 of

6 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 a 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 historic

25 structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at

26 least one business, subject to further definition through rules and regulations promulgated by the

27 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;

1 (2) Qualified development projects that involve recognized historical structures;

2 (3) Qualified development projects that involve 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 of

6 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 tax

8 credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the Rebuild RI

9 Tax Credit program.

10 ~~(c)~~(e) Applicants (i) who have received the notice referenced in subsection (d) above and

11 who may be eligible ~~qualifying~~ for a tax credit pursuant to chapter 33.6 of title 44, (ii) whose

12 application involves a certified historic structure or recognized historical structure, or (iii) whose

13 project is occupied by at least one manufacturer shall be exempt from the requirements of

14 subparagraphs (b)(3)(ii) and (b)(3)(iii) of this section. The following procedure shall apply to such

15 applicants:

16 (1) The division of taxation shall remain responsible for determining the eligibility of an

17 applicant for tax credits awarded under chapter 33.6 of title 44;

18 (2) The commerce corporation shall retain sole authority for determining the eligibility of

19 an applicant for tax credits awarded under this chapter; and

20 (3) The commerce corporation shall not award in excess of fifteen percent (15%) of the

21 annual amount ~~appropriated~~ authorized in any fiscal year to applicants seeking tax credits pursuant

22 to this subsection (ce).

23 ~~(d)~~(f) Maximum project credit.

24 (i) For qualified development projects, the maximum tax credit allowed under this chapter

25 shall be the lesser of (1) thirty percent (30%) of the total project cost; or (2) the amount needed to

26 close a project financing gap (after taking into account all other private and public funding sources

27 available to the project), as determined by the commerce corporation.

28 (ii) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

29 exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)

30 for any qualified development project under this chapter; except as provided in subsection (iii) of

31 this section; provided however, any qualified development project which exceeds the project cap

32 upon passage of this act shall be deemed not to exceed the cap, shall not be reduced nor shall it be

33 further increased. No building or qualified development project to be completed in phases or in

34 multiple projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000)

1 for all phases or projects involved in the rehabilitation of such building. Provided, however, that

2 for purposes of this subsection and no more than once in a given fiscal year, the commerce

3 corporation may consider the development of land and buildings by a developer on the "I-195 land"

4 (as defined in § 42-64.24-3(6) of the general laws) as a separate, qualified development project

5 from a qualified development project by a tenant or owner of a commercial condominium or similar

6 legal interest including leasehold improvement, fit out, and capital investment. Such qualified

7 development project by a tenant or owner of a commercial condominium or similar legal interest

8 on the I-195 land may be exempted from subparagraph ~~(d)(i)(1)~~ (f)(i)(1).

9 (iii) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

10 exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars

11 ($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter

12 into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided said

13 project is approved for credits pursuant to this chapter by the commerce corporation.

14 ~~(e)~~(g) Credits available under this chapter shall not exceed twenty percent (20%) of the

15 project cost, provided, however, that the applicant shall be eligible for additional tax credits of not

16 more than ten percent (10%) of the project cost, if the qualified development project meets any of

17 the following criteria or other additional criteria determined by the commerce corporation from

18 time to time in response to evolving economic or market conditions:

19 (1) The project includes adaptive reuse or development of a recognized historical structure;

20 (2) The project is undertaken by or for a targeted industry;

21 (3) The project is located in a transit-oriented development area;

22 (4) The project includes residential development of which at least twenty percent (20%) of

23 the residential units are designated as affordable housing or workforce housing;

24 (5) The project includes the adaptive reuse of property subject to the requirements of the

25 industrial property remediation and reuse act, § 23-19.14-1 et seq.; or

26 (6) The project includes commercial facilities constructed in accordance with the minimum

27 environmental and sustainability standards, as certified by the commerce corporation pursuant to

28 Leadership in Energy and Environmental Design or other equivalent standards.

29 ~~(f)~~(h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter,

30 inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed ~~one~~

31 ~~hundred and fifty million dollars ($150,000,000)~~ two hundred ten million dollars ($210,000,000),

32 excluding any tax credits allowed pursuant to subsection (f)(iii) of this section.

33 (gi) Tax credits shall not be allowed under this chapter prior to the taxable year in which

34 the project is placed in service.

1 (hj) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer

2 in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent

3 (15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable

4 year.

5 (ik) If the portion of the tax credit allowed under this chapter exceeds the taxpayer's total

6 tax liability for the year in which the relevant portion of the credit is allowed, the amount that

7 exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for

8 the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed

9 to a partnership, a limited liability company taxed as a partnership, or multiple owners of property

10 shall be passed through to the persons designated as partners, members, or owners respectively pro

11 rata or pursuant to an executed agreement among such persons designated as partners, members,

12 or owners documenting an alternate distribution method without regard to their sharing of other tax

13 or economic attributes of such entity.

14 (jl) The commerce corporation in consultation with the division of taxation shall establish,

15 by regulation, the process for the assignment, transfer, or conveyance of tax credits.

16 (km) For purposes of this chapter, any assignment or sales proceeds received by the

17 taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt

18 from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller's tax

19 calculation for the year of revocation or adjustment shall be increased by the total amount of the

20 sales proceeds, without proration, as a modification under chapter 30 of title 44. In the event that

21 the seller is not a natural person, the seller's tax calculation under chapters 11, 13, 14, or 17 of title

22 44 of the general laws, as applicable, for the year of revocation, or adjustment, shall be increased

23 by including the total amount of the sales proceeds without proration.

24 (ln) The tax credit allowed under this chapter may be used as a credit against corporate

25 income taxes imposed under chapters 11, 13, 14, or 17, of title 44, or may be used as a credit against

26 personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such

27 as a partnership, a limited liability company taxed as a partnership, or multiple owners of property.

28 (mo) In the case of a corporation, this credit is only allowed against the tax of a corporation

29 included in a consolidated return that qualifies for the credit and not against the tax of other

30 corporations that may join in the filing of a consolidated tax return.

31 (np) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem

32 such credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division

33 of taxation, in consultation with the commerce corporation, shall establish by regulation a

34 redemption process for tax credits.

1 (oq) Projects eligible to receive a tax credit under this chapter may, at the discretion of the

2 commerce corporation, be exempt from sales and use taxes imposed on the purchase of the

3 following classes of personal property only to the extent utilized directly and exclusively in such

4 project: (1) Furniture, fixtures and equipment, except automobiles, trucks, or other motor vehicles;

5 or (2) Such other materials, including construction materials and supplies, that are depreciable and

6 have a useful life of one year or more and are essential to the project.

7 (pr) The commerce corporation shall promulgate rules and regulations for the

8 administration and certification of additional tax credit under subsection (e), including criteria for

9 the eligibility, evaluation, prioritization, and approval of projects that qualify for such additional

10 tax credit.

11 (qs) The commerce corporation shall not have any obligation to make any award or grant

12 any benefits under this chapter.

13 SECTION 3. Section 42-64.20-7 and 42-64.20-10 of the General Laws in Chapter 42-64.20

14 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as follows:

15 42-64.20-7. Rebuild Rhode Island tax credit fund.

16 (a) There is hereby established at the commerce corporation a restricted account known as

17 the rebuild Rhode Island tax-credit fund (the "Fund") in which all amounts appropriated for the

18 program created under this chapter shall be deposited. The fund shall be used (i) to pay for the

19 redemption of tax credits or reimbursement to the state for tax credits applied against a taxpayer's

20 liability; and (ii) to redeem or reimburse the state for any sales and use tax exemptions allowed

21 pursuant to this chapter. The commerce corporation may pledge and reserve amounts deposited

22 into the fund for the purpose of securing payment for the redemption of tax credits or for making

23 reimbursements to municipalities pursuant to chapter 64.22 of title 42 of the general laws. The fund

24 shall be exempt from attachment, levy, or any other process at law or in equity. The director of the

25 department of revenue shall make a requisition to the commerce corporation for funding during

26 any fiscal year as may be necessary to pay for the redemption of tax credits presented for

27 redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The

28 commerce corporation shall pay from the fund such amounts as requested by the director of the

29 department of revenue necessary for redemption or reimbursement in relation to tax credits granted

30 under this chapter; provided, however, that the commerce corporation shall not be required to pay

31 from the fund such sums pledged and reserved by the commerce corporation, as permitted in this

32 section, except for redemption of tax credits.

33 (b) Notwithstanding anything in this chapter to the contrary, the commerce corporation

34 may make a loan or equity investment as an alternative incentive in lieu of the provision of tax

1 credits so long as the applicant otherwise qualifies for tax credits under this chapter. In addition to

2 the qualification requirements of this chapter, any loan or equity investment shall be subject to the

3 provisions of §§ 42-64.20-5(b), ~~(d), (e),~~ (f), (g), ~~(n), (o), (p), and~~ (h), (i), (j), (q), (r) and (s), 42-

4 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

5 credit. The commerce corporation may pay, reserve, and/or pledge monies for a loan or equity

6 investment from the fund.

7 42-64.20-10. Sunset.

8 No credits shall be authorized to be reserved pursuant to this chapter after ~~June 30,~~

9 December 31, 2020.

10 SECTION 4. Section 44-11-11 of the General Laws in Chapter 44-11 entitled "Business

11 Corporation Tax" is hereby amended to read as follows:

12 44-11-11. "Net income" defined.

13 (a)(1) “Net income” means, for any taxable year and for any corporate taxpayer, the taxable

14 income of the taxpayer for that taxable year under the laws of the United States, plus:

15 (i) Any interest not included in the taxable income;

16 (ii) Any specific exemptions;

17 (iii) The tax imposed by this chapter; and minus

18 (iv) Interest on obligations of the United States or its possessions, and other interest exempt

19 from taxation by this state; and

20 (v) The federal net operating loss deduction.

21 (2) All binding federal elections made by or on behalf of the taxpayer applicable either

22 directly or indirectly to the determination of taxable income shall be binding on the taxpayer except

23 where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode

24 Island taxable income shall not include the "gross-up of dividends" required by the federal Internal

25 Revenue Code to be taken into taxable income in connection with the taxpayer's election of the

26 foreign tax credit.

27 (b) A net operating loss deduction shall be allowed which shall be the same as the net

28 operating loss deduction allowed under 26 U.S.C. § 172, except that:

29 (1) Any net operating loss included in determining the deduction shall be adjusted to reflect

30 the inclusions and exclusions from entire net income required by subsection (a) of this section and

31 § 44-11-11.1;

32 (2) The deduction shall not include any net operating loss sustained during any taxable year

33 in which the taxpayer was not subject to the tax imposed by this chapter; and

34 (3) The deduction shall not exceed the deduction for the taxable year allowable under 26

1 U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other

2 taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the

3 five (5) succeeding taxable years.

4 (c) “Domestic international sales corporations” (referred to as DISCs), for the purposes of

5 this chapter, will be treated as they are under federal income tax law and shall not pay the amount

6 of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in

7 the same manner as it is treated under federal income tax law as it exists on December 31, 1984.

8 (d) A corporation which qualifies as a “foreign sales corporation” (FSC) under the

9 provisions of subchapter N, 26 U.S.C. § 861 et seq., and which has in effect for the entire taxable

10 year a valid election under federal law to be treated as a FSC, shall not pay the amount of the tax

11 computed under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same

12 manner as it is treated under federal income tax law as it exists on January 1, 1985.

13 (e) For purposes of a corporation’s state tax liability, any deduction to income allowable

14 under 26 U.S.C. 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer for

15 at least seven years. The division of taxation shall promulgate, in its discretion, rules and

16 regulations relative to the accelerated application of deductions under 26 U.S.C. 1400Z-2(c).

17 SECTION 5. Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal

18 Income Tax" is hereby amended to read as follows:

19 44-30-12. Rhode Island income of a resident individual.

20 (a) General. The Rhode Island income of a resident individual means his or her adjusted

21 gross income for federal income tax purposes, with the modifications specified in this section.

22 (b) Modifications increasing federal adjusted gross income. There shall be added to federal

23 adjusted gross income:

24 (1) Interest income on obligations of any state, or its political subdivisions, other than

25 Rhode Island or its political subdivisions;

26 (2) Interest or dividend income on obligations or securities of any authority, commission,

27 or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the

28 extent exempted by the laws of the United States from federal income tax but not from state income

29 taxes;

30 (3) The modification described in § 44-30-25(g);

31 (4)(i) The amount defined below of a nonqualified withdrawal made from an account in

32 the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified

33 withdrawal is:

34 (A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal

1 Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-

2 6.1; and

3 (B) A withdrawal or distribution which is:

4 (I) Not applied on a timely basis to pay "qualified higher education expenses" as defined

5 in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

6 (II) Not made for a reason referred to in § 16-57-6.1(e); or

7 (III) Not made in other circumstances for which an exclusion from tax made applicable by

8 Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,

9 withdrawal or distribution is made within two (2) taxable years following the taxable year for which

10 a contributions modification pursuant to subdivision (c)(4) of this section is taken based on

11 contributions to any tuition savings program account by the person who is the participant of the

12 account at the time of the contribution, whether or not the person is the participant of the account

13 at the time of the transfer, rollover, withdrawal or distribution;

14 (ii) In the event of a nonqualified withdrawal under subparagraphs (i)(A) or (i)(B) of this

15 subdivision, there shall be added to the federal adjusted gross income of that person for the taxable

16 year of the withdrawal an amount equal to the lesser of:

17 (A) The amount equal to the nonqualified withdrawal reduced by the sum of any

18 administrative fee or penalty imposed under the tuition savings program in connection with the

19 nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the

20 person's federal adjusted gross income for the taxable year; and

21 (B) The amount of the person's contribution modification pursuant to subdivision (c)(4) of

22 this section for the person's taxable year of the withdrawal and the two (2) prior taxable years less

23 the amount of any nonqualified withdrawal for the two (2) prior taxable years included in

24 computing the person's Rhode Island income by application of this subsection for those years. Any

25 amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode

26 Island income for residents, nonresidents and part-year residents; and

27 (5) The modification described in § 44-30-25.1(d)(3)(i).

28 (6) The amount equal to any unemployment compensation received but not included in

29 federal adjusted gross income.

30 (7) The amount equal to the deduction allowed for sales tax paid for a purchase of a

31 qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6).

32 (c) Modifications reducing federal adjusted gross income. There shall be subtracted from

33 federal adjusted gross income:

34 (1) Any interest income on obligations of the United States and its possessions to the extent

1 includible in gross income for federal income tax purposes, and any interest or dividend income on

2 obligations, or securities of any authority, commission, or instrumentality of the United States to

3 the extent includible in gross income for federal income tax purposes but exempt from state income

4 taxes under the laws of the United States; provided, that the amount to be subtracted shall in any

5 case be reduced by any interest on indebtedness incurred or continued to purchase or carry

6 obligations or securities the income of which is exempt from Rhode Island personal income tax, to

7 the extent the interest has been deducted in determining federal adjusted gross income or taxable

8 income;

9 (2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);

10 (3) The amount of any withdrawal or distribution from the "tuition savings program"

11 referred to in § 16-57-6.1 which is included in federal adjusted gross income, other than a

12 withdrawal or distribution or portion of a withdrawal or distribution that is a nonqualified

13 withdrawal;

14 (4) Contributions made to an account under the tuition savings program, including the

15 "contributions carryover" pursuant to paragraph (iv) of this subdivision, if any, subject to the

16 following limitations, restrictions and qualifications:

17 (i) The aggregate subtraction pursuant to this subdivision for any taxable year of the

18 taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

19 return;

20 (ii) The following shall not be considered contributions:

21 (A) Contributions made by any person to an account who is not a participant of the account

22 at the time the contribution is made;

23 (B) Transfers or rollovers to an account from any other tuition savings program account or

24 from any other "qualified tuition program" under section 529 of the Internal Revenue Code, 26

25 U.S.C. § 529; or

26 (C) A change of the beneficiary of the account;

27 (iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer's federal

28 adjusted gross income to less than zero (0);

29 (iv) The contributions carryover to a taxable year for purpose of this subdivision is the

30 excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition

31 savings program for all preceding taxable years for which this subsection is effective over the sum

32 of:

33 (A) The total of the subtractions under this subdivision allowable to the taxpayer for all

34 such preceding taxable years; and

1 (B) That part of any remaining contribution carryover at the end of the taxable year which

2 exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable

3 years not included in the addition provided for in this subdivision for those years. Any such part

4 shall be disregarded in computing the contributions carryover for any subsequent taxable year;

5 (v) For any taxable year for which a contributions carryover is applicable, the taxpayer

6 shall include a computation of the carryover with the taxpayer's Rhode Island personal income tax

7 return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a

8 joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a

9 subsequent taxable year, the computation shall reflect how the carryover is being allocated between

10 the prior joint filers; and

11 (5) The modification described in § 44-30-25.1(d)(1).

12 (6) Amounts deemed taxable income to the taxpayer due to payment or provision of

13 insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or

14 other coverage plan.

15 (7) Modification for organ transplantation.

16 (i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted

17 gross income if he or she, while living, donates one or more of his or her human organs to another

18 human being for human organ transplantation, except that for purposes of this subsection, "human

19 organ" means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract

20 modification that is claimed hereunder may be claimed in the taxable year in which the human

21 organ transplantation occurs.

22 (ii) An individual may claim that subtract modification hereunder only once, and the

23 subtract modification may be claimed for only the following unreimbursed expenses that are

24 incurred by the claimant and related to the claimant's organ donation:

25 (A) Travel expenses.

26 (B) Lodging expenses.

27 (C) Lost wages.

28 (iii) The subtract modification hereunder may not be claimed by a part-time resident or a

29 nonresident of this state.

30 (8) Modification for taxable Social Security income.

31 (i) For tax years beginning on or after January 1, 2016:

32 (A) For a person who has attained the age used for calculating full or unreduced social

33 security retirement benefits who files a return as an unmarried individual, head of household or

34 married filing separate whose federal adjusted gross income for such taxable year is less than eighty

1 thousand dollars ($80,000); or

2 (B) A married individual filing jointly or individual filing qualifying widow(er) who has

3 attained the age used for calculating full or unreduced social security retirement benefits whose

4 joint federal adjusted gross income for such taxable year is less than one hundred thousand dollars

5 ($100,000), an amount equal to the social security benefits includable in federal adjusted gross

6 income.

7 (ii) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-

8 12(c)(8)(i)(A) and 44-30-12(c)(8)(i)(B) shall be increased annually by an amount equal to:

9 (A) Such dollar amount contained in subparagraphs 44-30-12(c)(8)(i)(A) and 44-30-

10 12(c)(8)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;

11 (B) The cost-of-living adjustment with a base year of 2000.

12 (iii) For the purposes of this section the cost-of-living adjustment for any calendar year is

13 the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

14 the 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 (12) month 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 purpose

19 of this section the revision of the consumer price index which is most consistent with the consumer

20 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 ($50.00),

22 such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

23 married individual filing separate return, if any increase determined under this section is not a

24 multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

25 of twenty-five dollars ($25.00).

26 (9) Modification for up to fifteen thousand dollars ($15,000) of taxable retirement income

27 from certain pension plans or annuities.

28 (i) For tax years beginning on or after January 1, 2017, a modification shall be allowed for

29 up to fifteen thousand dollars ($15,000) of taxable pension and/or annuity income that is included

30 in federal adjusted gross income for the taxable year:

31 (A) For a person who has attained the age used for calculating full or unreduced social

32 security retirement benefits who files a return as an unmarried individual, head of household, or

33 married filing separate whose federal adjusted gross income for such taxable year is less than the

34 amount used for the modification contained in § 44-30-12(c)(8)(i)(A) an amount not to exceed

1 $15,000 of taxable pension and/or annuity income includable in federal adjusted gross income; or

2 (B) For a married individual filing jointly or individual filing qualifying widow(er) who

3 has attained the age used for calculating full or unreduced social security retirement benefits whose

4 joint federal adjusted gross income for such taxable year is less than the amount used for the

5 modification contained in § 44-30-12(c)(8)(i)(B) an amount not to exceed $15,000 of taxable

6 pension and/or annuity income includable in federal adjusted gross income.

7 (ii) Adjustment for inflation. The dollar amount contained by reference in §§ 44-30-

8 12(c)(9)(i)(A) and 44-30-12(c)(9)(i)(B) shall be increased annually for tax years beginning on or

9 after January 1, 2018 by an amount equal to:

10 (A) Such dollar amount contained by reference in §§ 44-30-12(c)(9)(i)(A) and 44-30-

11 12(c)(9)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;

12 (B) The cost-of-living adjustment with a base year of 2000.

13 (iii) For the purposes of this section, the cost-of-living adjustment for any calendar year is

14 the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

15 the consumer price index for the base year. The consumer price index for any calendar year is the

16 average of the consumer price index as of the close of the twelve-month (12) period ending on

17 August 31, of such calendar year.

18 (iv) For the purpose of this section, the term "consumer price index" means the last

19 consumer price index for all urban consumers published by the department of labor. For the purpose

20 of this section, the revision of the consumer price index which is most consistent with the consumer

21 price index for calendar year 1986 shall be used.

22 (v) If any increase determined under this section is not a multiple of fifty dollars ($50.00),

23 such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

24 married individual filing a separate return, if any increase determined under this section is not a

25 multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

26 of twenty-five dollars ($25.00).

27 (10) Modification for Rhode Island investment in opportunity zones. For purposes of a

28 taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by

29 the taxpayer for at least seven (7) years, a modification to income shall be allowed for the

30 incremental difference between the benefit allowed under 26 U.S.C. 1400Z-2(b)(2)(B)(iv) and the

31 federal benefit allowed under 26 U.S.C. 1400Z-2(c).

32 (d) Modification for Rhode Island fiduciary adjustment. There shall be added to, or

33 subtracted from, federal adjusted gross income (as the case may be) the taxpayer's share, as

34 beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-

1 30-17.

2 (e) Partners. The amounts of modifications required to be made under this section by a

3 partner, which relate to items of income or deduction of a partnership, shall be determined under §

4 44-30-15.

5 SECTION 6. Section 44-31.2-5 and 44-31.2-11 of the General Laws in Chapter 44-31.2

6 entitled "Motion Picture Production Tax Credits" are hereby amended to read as follows:

7 44-31.2-5. Motion picture production company tax credit.

8 (a) A motion picture production company shall be allowed a credit to be computed as

9 provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The

10 amount of the credit shall be thirty percent (30%) of the state certified production costs incurred

11 directly attributable to activity within the state, provided that the primary locations are within the

12 state of Rhode Island and the total production budget as defined herein is a minimum of one

13 hundred thousand dollars ($100,000). The credit shall be earned in the taxable year in which

14 production in Rhode Island is completed, as determined by the film office in final certification

15 pursuant to § 44-31.2-6(c).

16 (b) For the purposes of this section: "total production budget" means and includes the

17 motion picture production company's pre-production, production, and post-production costs

18 incurred for the production activities of the motion picture production company in Rhode Island in

19 connection with the production of a state-certified production. The budget shall not include costs

20 associated with the promotion or marketing of the film, video, or television product.

21 (c) Notwithstanding subsection (a), the credit shall not exceed seven million dollars

22 ($7,000,000) and shall be allowed against the tax for the taxable period in which the credit is earned

23 and can be carried forward for not more than three (3) succeeding tax years. Pursuant to rules

24 promulgated by the tax administrator, the administrator may issue a waiver of the seven million

25 dollars ($7,000,000) tax credit cap for any feature-length film or television series up to the

26 remaining funds available pursuant to section (e).

27 (d) Credits allowed to a motion picture production company, which is a subchapter S

28 corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be

29 passed through respectively to persons designated as partners, members, or owners on a pro rata

30 basis or pursuant to an executed agreement among such persons designated as subchapter S

31 corporation shareholders, partners, or members documenting an alternate distribution method

32 without regard to their sharing of other tax or economic attributes of such entity.

33 (e) No more than fifteen million dollars ($15,000,000) in total may be issued for any tax

34 year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter

1 and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. After

2 December 31, 2019, no more than twenty million dollars ($20,000,000) in total may be issued for

3 any tax year for motion picture tax credits pursuant to this chapter and/or musical and theater

4 production tax credits pursuant to chapter 31.3 of this title. Said credits shall be equally available

5 to motion picture productions and musical and theatrical productions. No specific amount shall be

6 set aside for either type of production.

7 44-31.2-11. Sunset.

8 No credits shall be issued on or after ~~July 1, 2024~~ July 1, 2027, unless the production has

9 received initial certification under § 44-31.2-6(a) prior to ~~July 1, 2024~~ July 1, 2027.

10 SECTION 7. Section 44-48.3-6 of the General Laws in Chapter 44-48.3 entitled "Rhode

11 Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:

12 44-48.3-6. Total amount of tax credit for eligible business.

13 (a) The base amount of the tax credit for an eligible business for each new full-time job

14 shall be up to two thousand five hundred dollars ($2,500) annually.

15 (b) The total tax credit amount shall be calculated and credited to the business annually for

16 each year of the eligibility period after the commerce corporation, in consultation with the division

17 of taxation, has verified that the jobs covered by the tax credit have generated sufficient personal

18 income taxes to comply with subsection (e) of this section.

19 (c) In addition to the base amount of the tax credit, the amount of the tax credit to be

20 awarded for each new full-time job may be increased, pursuant to the provisions of subsection (d)

21 of this section, if the business meets any of the following criteria or such other additional criteria

22 determined by the commerce corporation from time to time in response to evolving economic or

23 market conditions:

24 (1) For a business located within a hope community;

25 (2) For a targeted industry;

26 (3) For a business located within a transit oriented development area; and

27 (4) For an out-of-state business that relocates a business unit or units or creates a significant

28 number of new full-time jobs during the commitment period.

29 (d) For any application made to the commerce corporation ~~from 2015 through 2018,~~ the

30 tax credit for an eligible business for each new full-time job shall not exceed seven thousand five

31 hundred dollars ($7,500) annually.

32 (e) Notwithstanding the provisions of subsections (a) through (d) of this section, for each

33 application approved by the commerce corporation prior to July 1, 2019, the amount of tax credits

34 available to be obtained by the business annually shall not exceed the reasonable W-2 withholding

1 received by the state for each new full-time job created by a business for applications received by

2 the commerce corporation ~~in 2015 through 2018~~. For each application approved by the commerce

3 corporation after July 1, 2019, the amount of tax credits available to be obtained by the business

4 annually shall not exceed seventy-five percent (75%) of the reasonable W-2 withholding received

5 by the state for each new full-time job created by a business for applications received by the

6 commerce corporation.

7 (f) The commerce corporation shall establish regulations regarding the conditions under

8 which a business may submit more than one application for tax credits over time. The commerce

9 corporation may place limits on repeat applications.

10 SECTION 8. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

11 amended by adding thereto the following chapter:

12 CHAPTER 24.6

13 SPECIAL ECONOMIC DEVELOPMENT DISTRICTS

14 45-24.6-1. Declaration of purpose.

15 (a) According to the United States Census Bureau estimates as of 2015, Rhode Island ranks

16 second among the fifty (50) states in terms of population density. Notwithstanding this, there exists

17 within the various municipalities of the state, certain large tracts of developable or blighted state-

18 owned land, which areas represent in and of themselves and are often contiguous with areas of vital

19 economic importance to the state. In light of this, the state declares that these tracts of state-owned

20 land, and more specifically those tracts that are twenty (20) or more contiguous acres in size, are

21 important state assets which require the coordination of federal, state, local, or private action to

22 efficiently make use of these lands.

23 (b) It is further declared that coordination is paramount to development as time delays,

24 redundant approvals and local eccentricities often impede development projects.

25 (c) It is further declared that there is a statewide need for coordinated attention to and

26 supervision of the development of these areas for the purpose of education, enjoyment, and welfare

27 of the general public, the promotion of commercial and economic development, the attraction to

28 our state of appropriate business, industrial, and tourist trade, resources, and investment, the

29 development of an attractive environment that fosters the social welfare and health of the public.

30 (d) It is further declared that the developmental tools presently available to municipalities

31 in the state do not contain sufficient flexibility to address the unique problems arising from the

32 projects and to govern comprehensive and coordinated development of areas subject to these

33 projects consistently with the previously-declared public needs and purposes. Proper development

34 of these areas, consistent with the general welfare, may require designation of special land-use

1 districts and special land-use controls, which may be more stringent or more flexible than existing

2 zoning, planning, and other developmental tools, and the adoption, implementation, and

3 administration of a plan that establishes a framework for development including detailed design

4 and development criteria, regulations, and enforcement procedures.

5 (e) It is further declared that the most efficient and effective method to further the

6 previously-declared public policy of the state to encourage the appropriate, comprehensive, and

7 coordinated development of these properties is to permit the creation of special economic

8 development districts in the municipalities of the state and the creation of special economic

9 development district commissions to adopt, implement, and administer plans of development that

10 establish and enforce design and development criteria and regulations for the development of these

11 areas.

12 45-24.6-2. Short title.

13 This chapter may be known and may be cited as the "Rhode Island Special Economic

14 Development District Enabling Act".

15 45-24.6-3. Definitions.

16 As used in this chapter, the following words and terms have the following meanings, unless

17 the context indicates another or different meaning or intent:

18 (1) "Certificate of approval" means the document issued by a special economic

19 development district commission approving an application for construction, erection, alteration,

20 demolition, or use of a structure or land within the special economic development district, and

21 pursuant to which a building permit may be issued.

22 (2) "Certificate of rejection" means the document issued by a special economic

23 development district commission rejecting an application for construction, erection, alteration,

24 demolition, or use of a structure or land within a special economic development district.

25 (3) "Commission" means a special economic development district commission or

26 independent public instrumentality authorized by the general assembly and empowered by this

27 chapter.

28 (4) "Contiguous acres" means tracts or parcels of land that abut or connect without

29 excepting therefrom streams, ponds, rivers, roads, bridges, or other types of paths or rights of way.

30 (5) "Development map" means a map of a special economic development district that

31 shows the parcels into which the district may have been divided according to the plan of

32 development.

33 (6) "District" means any developable or blighted state-owned tracts or parcels of land,

34 which at its creation, aggregation and/or acquisition by a state agency or instrumentality consists

1 of or consisted of twenty (20) or more contiguous acres in size.

2 (7) "Permit" means a building permit issued by a duly licensed building inspector.

3 (8) "Person" means a natural person or any other legal entity, including, but not limited to,

4 a corporation, firm, partnership, or trust.

5 (9) "Plan of development" or "plan" means a plan, including design and development

6 criteria and regulations, for the development of a special economic development district adopted

7 by a special economic development district commission pursuant to this chapter.

8 (10) "Regulations" means the rules regulating the construction, erection, alteration,

9 demolition, or use of a structure or land within a special development district adopted by a special

10 economic development commission pursuant to a plan of development.

11 (11) "Special economic development district" means an area of a municipality or

12 municipalities that has been or will be established, designated, laid out, or defined by the general

13 assembly including but not limited to, independent public instrumentalities created by the general

14 assembly.

15 (12) "Structure" means a building or anything that is constructed or erected and that

16 requires location on the ground or attachment to something located on the ground.

17 45-24.6-4. Special economic development districts authorized.

18 (a) For the purposes stated in § 45-24.6-1, the general assembly may, by statute, establish,

19 designate, lay out, and define, as special economic development districts, areas that are, may be or

20 have been the subject of, or substantially affected by combined federal, state, local, or private

21 action, in the same manner as municipalities are presently empowered to establish, designate, lay

22 out, and define zoning districts, and which lands are developable or blighted state-owned tracts or

23 parcels of land, and which at the time of the creation of the district, consist of twenty (20) or more

24 contiguous acres in size. Properties owned or controlled by the department of environmental

25 management shall not be subject to the provisions of this chapter.

26 (b) The boundaries of a special economic development district established, designated, laid

27 out, and defined according to the provisions of this chapter, may be amended only by an act of the

28 general assembly.

29 (c) The powers of the district to achieve the purposes of this chapter shall be exercised by

30 a commission as herein provided as a public corporation and instrumentality of the state, to adopt,

31 implement, and administer a plan of development.

32 Each district commission shall consist of seven (7) voting members. The governor of the

33 state of Rhode Island shall appoint, with the advice and consent of the senate, the seven (7) voting

34 members of the commission. The commission shall have the sole authority to adopt, implement,

1 and administer a plan of development for the special economic development district.

2 45-24.6-5. Powers of commission.

3 A special economic development district commission established under this chapter shall

4 have all powers necessary and incidental to the adoption, implementation, and administration of a

5 plan of development, and any other powers that the general assembly may grant in the creation of

6 the commission.

7 45-24.6-6. Adoption of special development district plan – Regulation of structures

8 and uses - Notice.

9 (a) A special economic development district commission shall adopt a plan of

10 development. Any plan of development adopted by a special economic development district

11 commission pursuant to this chapter may regulate and restrict, by means of regulations duly adopted

12 by the commission, the erection, construction, reconstruction, alteration, repair, or use of buildings,

13 structures, or land within the special economic development district in a uniform, consistent, and

14 nondiscriminatory manner that is rationally related to the purposes of this chapter. The plan may

15 include regulations relating to allowable land uses, the location and use of buildings, street systems,

16 dimensional, height and area coverage requirements, setbacks and build-to lines, frontage, parking

17 requirements, landscaping, pedestrian travel, signs, design review, open spaces, and population

18 density.

19 (b) Pursuant to the plan of development, the commission may divide the special economic

20 development district into several parcels as indicated on a development map, and may regulate

21 structures and uses differently in different parcels, so long as regulation of similar structures and

22 uses is uniform within any one parcel.

23 (c) A plan of development may be adopted or amended only after a public hearing before

24 the commission, at which all interested parties have an opportunity to be heard. Notice of the time,

25 place, nature, and purpose of the public hearing shall be given to all owners of real property within

26 the bounds of the special economic development district and within two hundred feet (200') of the

27 perimeter thereof, by registered or certified mail at least seven (7) days before the date of the

28 hearing, and by publication of notice in a newspaper of general circulation within the municipality

29 at least once each week for three (3) successive weeks prior to the date of the hearing.

30 (d) The municipality shall not have concurrent jurisdiction over the special economic

31 development district,

32 45-24.6-7. Permit required to erect, construct, alter, repair, or demolish structure –

33 Commission quorum and voting.

34 (a) Before any structure may be erected, constructed, altered, repaired, or demolished

1 within a special economic development district, the person proposing the construction or other

2 alteration shall file with the commission an application for permission to erect, construct, alter,

3 repair, or demolish the structure, together with plans and specifications, all that may be required by

4 regulations adopted by the commission. It is the duty of the commission to review the application,

5 plans, and specifications, and no building permit shall be granted until the commission has acted

6 on it. No construction or other alteration of a structure may be undertaken within a special

7 development district without a permit. The commission may, by regulation, coordinate permit

8 approvals with state building officials and fire marshals, city or town officials or duly qualified

9 independent staff or consultants.

10 (b) Nothing in this chapter prevents or is to be construed to prevent ordinary maintenance

11 or repair of any structure within the special economic development district; nor shall anything in

12 this chapter prevent or be construed to prevent the continuance of the use of any building or

13 improvement for any purpose to which the building or improvement was lawfully devoted at the

14 time of the adoption of a plan of development, or to prevent or be construed to prevent the erection,

15 construction, alteration, repair, or demolition of any structure under a permit issued by the inspector

16 of buildings prior to the adoption of a plan of development pursuant to this chapter.

17 (c) At all meetings of the commission, a majority of the commissioners is necessary and

18 sufficient to constitute a quorum for the transaction of business, and the act of a majority of the

19 commissioners present at any meeting at which there is a quorum is the act of the commission,

20 except as otherwise provided by law.

21 45-24.6-8. Variances, deviations, and special exceptions.

22 (a) Any commission that adopts or has adopted a plan conforming to this chapter has the

23 authority to grant variances, deviations, and special exceptions of any regulations adopted pursuant

24 to that plan, upon the application of an aggrieved property owner:

25 (1) Special exceptions to the terms of the regulations may be granted in those cases

26 specified in the regulations, and subject to those conditions and safeguards specified therein, where

27 the use granted by special exception is reasonably necessary for the convenience or welfare of the

28 public and does not substantially or permanently injure the value of neighboring property.

29 (2) Variances may be granted where, owing to special conditions, enforcement of the

30 regulations would result in unnecessary hardship, where the variance will not be contrary to the

31 public interest, and the spirit of the plan will be observed and substantial justice done.

32 (3) Deviations may be granted where the enforcement of the regulations relating to

33 setbacks, build-to lines, and other area and dimensional restrictions would preclude the full

34 enjoyment by the owner of a permitted use and amount to more than a mere inconvenience.

1 (b) The commission shall hold a hearing on the application within a reasonable time, and

2 give public notice and due notice of the hearing to the parties in interest and property owners within

3 two hundred feet (200') of the affected property. At any hearing any party may appear in person or

4 by agent or attorney.

5 (c) Nothing in this chapter shall be construed to restrict, amend, repeal, or otherwise

6 supersede the jurisdiction of the commission regarding any area designated a special development

7 district pursuant to this chapter.

8 45-24.6-9. Appeals to superior court.

9 (a) Any person or persons jointly or severally aggrieved by a decision of the commission

10 may appeal to the superior court for the county in which the special economic development district

11 is situated by filing a complaint stating the reasons of appeal within twenty (20) days after the

12 decision has been filed in the office of the commission. The commission shall file the original

13 documents acted upon by it and constituting the record of the hearing appealed from, or certified

14 copies of the documents, together with any other facts that may be pertinent, with the clerk of the

15 court within ten (10) days after being served with a copy of the complaint. When the complaint is

16 filed by someone other than the original applicant or appellant, the original applicant or appellant

17 and the members of the commission shall be made parties to the proceedings. The appeal shall not

18 stay proceedings upon the decision being appealed, but the court may, in its discretion, grant a stay

19 on appropriate terms and make any other orders that it deems necessary for an equitable disposition

20 of the appeal.

21 (b) If, before the date set for hearing in the superior court, an application is made to the

22 court for leave to present additional evidence before the commission, and it is shown to the

23 satisfaction of the court that the additional evidence is material and that there were good reasons

24 for the failure to present it at the hearing before the commission, the court may order that the

25 additional evidence be taken before the commission upon conditions determined by the court. The

26 commission may modify its findings and decision by reason of the additional evidence and file that

27 evidence and any modifications, new findings, or decisions with the superior court.

28 (c) The review shall be conducted by the superior court without a jury. The court shall

29 consider the record of the hearing before the commission, and if it appears to the court that

30 additional evidence is necessary for the proper disposition of the matter, it may allow any party to

31 the appeal to present evidence in open court, which evidence, along with the record shall constitute

32 the record upon which the determination of the court is made.

33 (d) The court shall not substitute its judgment for that of the commission as to the weight

34 of the evidence on questions of fact. The court may affirm the decision of the commission or remand

1 the case for further proceedings, or may reverse or modify the decision if substantial rights of the

2 appellant have been prejudiced because of findings, inferences, conclusions, or decisions which

3 are:

4 (1) In violation of constitutional, statutory provisions;

5 (2) In excess of the authority granted to the commission by statute;

6 (3) Made upon unlawful procedure;

7 (4) Affected by other error of law;

8 (5) Clearly erroneous in view of the reliable, probative, and substantial evidence of the

9 whole record; or

10 (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted

11 exercise of discretion.

12 45-24.6-10. Construction of chapter.

13 Whenever the context permits in this chapter, the use of the plural includes the singular,

14 the singular, the plural, and the use of any gender is deemed to include all genders.

15 45-24.6-11. Severability.

16 If any one or more sections, clauses, sentences, or parts of this chapter are for any reason

17 adjudged unconstitutional or invalid in any court, the judgment does not affect, impair, or invalidate

18 the remaining provisions of this chapter, but are confined in its operation to the specific provisions

19 so held unconstitutional or invalid, and the inapplicability or invalidity of any section, clause, or

20 provision of this chapter in any one or more instances or circumstances shall not be taken to affect

21 or prejudice in any way its applicability or validity in any other instance.

22 45-24.6-12. Applicability of other laws.

23 (a) Any special economic development district commission created pursuant to this chapter

24 will not be subject to the provisions of §§ 42-35-1 through 42-35-18. Any commission and its

25 members will be subject to the provisions of §§ 36-14-1 through 36-14-21, §§ 38-2-1 through 38-

26 2-16, and §§ 42-46-1 through 42-46-14.

27 (b) In the event of a conflict between the provisions of this chapter and any other provisions

28 of the general laws governing the powers of any other district commission created by or pursuant

29 to the general laws, including but not limited to the I-195 redevelopment district established

30 pursuant to chapter 64.14 of title 42, the provisions of this chapter shall prevail. The provisions of

31 this chapter shall also prevail over any district commissions established by legislation promulgated

32 after the effective date of this act, unless specifically exempted by that legislation.

33 SECTION 9. Sections 42-64.14-5, 42-64.14-8 and 42-64.14-18 of the General Laws in

34 Chapter 42-64.14 entitled "The I-195 Redevelopment Act of 2011" are hereby amended to read as

1 follows:

2 42-64.14-5. The I-195 redevelopment district created.

3 (a) The I-195 redevelopment district is hereby constituted as an independent public

4 instrumentality and body corporate and politic for the purposes set forth in this chapter with a

5 separate legal existence from the city of Providence and from the state and the exercise by the

6 commission of the powers conferred by this chapter shall be deemed and held to be the performance

7 of an essential public function. The boundaries of the district are established in § 37-5-8. However,

8 parcels P2 and P4, as delineated on that certain plan of land captioned "Improvements to Interstate

9 Route 195, Providence, Rhode Island, Proposed Development Parcel Plans 1 through 10, Scale: 1"

10 =20', May 2010, Bryant Associates, Inc., Engineers-Surveyors-Construction Managers, Lincoln,

11 RI, Maguire Group, Inc., Architects/Engineers/Planners, Providence, RI," shall be developed and

12 continued to be used as parks or park supporting activity; provided, however, the commission may,

13 from time to time, pursuant to action taken at a meeting of the commission in public session, adjust

14 the boundaries of parcel P4 provided that at all times parcel P4 shall contain no fewer than one

15 hundred eighty-six thousand one hundred eighty-six square feet (186,186 ft2) of land and provided,

16 further, that the city of Providence shall not be responsible for the upkeep of the parks unless a

17 memorandum of understanding is entered into between the commission or the state and the city of

18 Providence that grants full funding to the city for that purpose.

19 (b) The property owned by the district is designated as a special economic development

20 district pursuant to § 45-24.6-4 and constitutes state-owned land within the meaning of that section.

21 ~~The I-195 redevelopment district commission established in this chapter shall oversee,~~

22 ~~plan, implement, and administer the development of the areas within the district consistent with~~

23 ~~and subject to the city of Providence comprehensive plan adopted by the city pursuant to § 45-22-~~

24 ~~2.1 et seq. and the city of Providence zoning ordinances pursuant to § 45-24-27 et seq. as previously~~

25 ~~enacted by the city of Providence, and as may be enacted and/or amended from time to time through~~

26 ~~July 1, 2012, or enacted and/or amended thereafter with the consent of the commission.~~

27 (c) The city of Providence shall not be required to install or pay for the initial installation

28 of any public or private utility infrastructure within the district.

29 (d) It is the intent of the general assembly by the passage of this chapter to vest in the

30 commission all powers, authority, rights, privileges, and titles that 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 42-64.14-8. Additional general powers.

1 shall have the powers set forth below and shall be subject to the limitations herein set forth. Except

2 as may be expressly limited by action of the commission at a regular or special meeting, the

3 commission shall have the powers necessary to put into effect the powers of the commission as set

4 forth below and as herein limited.

5 (a) The commission is authorized and empowered to fix, revise, charge, collect, and abate

6 fees, rates, assessments, delinquency charges, and other charges for its services, and other services,

7 facilities, and commodities furnished or supplied by it including penalties for violations of such

8 regulations as the commission may from time to time promulgate under this chapter. Fees, rates,

9 assessments, delinquency charges, and other charges of general application shall be adopted and

10 revised by the commission in accordance with procedures to be established by the commission for

11 assuring that interested persons are afforded notice and an opportunity to present data, views, and

12 arguments. The commission shall hold at least one public hearing on its schedule of fees, rates, and

13 charges or any revision thereof prior to adoption, notice of which shall be published in a newspaper

14 of substantial circulation in the district at least fifteen (15) days in advance of the hearing, and

15 notice of the hearing shall be provided to the city council of the city of Providence. No later than

16 the date of such publication the commission shall make available to the public the proposed

17 schedule of fees, rates, and charges. Fees, rates, rents, assessments, abatements, and other charges

18 established by the commission shall not be subject to supervision or regulation by any department,

19 division, district, board, bureau, or agency of the state or any of its political subdivisions. In order

20 to provide for the collection and enforcement of its fees, rates, rents, assessments, and other charges,

21 the commission is hereby granted all the powers and privileges with respect to such collection and

22 enforcement held by the city of liens for unpaid taxes. Provided however that the commission shall

23 be required to collect all project application fees, zoning fees and charges, building permit fees, fire

24 code compliance or other public safety permit fees or charges, planning fees, historic district fees

25 and charges, and other similar fees and charges that would otherwise be payable to the city of

26 Providence in connection with such projects located in the city of Providence and remit the greater

27 of one-half (1/2) of such fees collected by the commission to the city of Providence, or one-half

28 (1/2) of such fees the city of Providence would have received from the project under the city's

29 ordinances uniformly applied. The city of Providence shall continue to be entitled to collect all

30 other customary fees for development and maintenance within the district as uniformly applied

31 throughout the city of Providence, including, but not limited to, utility tie-in, connection fees,

32 maintenance fees and assessments.

33 (b) Notwithstanding any provision of law to the contrary, in order to provide for the

1 or benefiting the city of Providence and the state within the boundaries of the district as defined in

2 § 37-5-8, the commission shall have the powers of:

3 (i) A special development district as provided for in chapter 45-24.4.

4 (ii) A redevelopment agency as provided for in chapters 45-31, 45-31.1, 45-31.2, 45-32,

5 and 45-33 within areas of the district which are part of an enterprise zone as provided for in chapter

6 42-64.3. Within the district, the term "blighted area and substandard area" shall be deemed to

7 include areas where the presence of hazardous materials, as defined in § 23-19.14-2, impairs the

8 use, reuse, or redevelopment of impacted sites.

9 (iii) A municipal public buildings authority as provided for in chapter 45-50.

10 (iv) A subsidiary of the Rhode Island commerce corporation and the enactment of this

11 chapter shall constitute the approval of the general assembly as required by § 42-64-7.1.

12 (v) The city planning board as established pursuant to chapter 45-23.

13 (vi) The city zoning board as established pursuant to chapter 45-24, including, but not

14 limited to, the granting of any use or dimensional variances or special use permits.

15 (vii) The city historic district commission established pursuant to chapter 45-24.1.

16 (viii) Any other city board existing or created that exercises any of the authorities of a

17 planning board, zoning board, design review board or historic district commission. ~~Provided,~~

18 ~~however, and notwithstanding the foregoing, the commission shall at all times ensure that all~~

19 ~~projects and development subject to the jurisdiction of the commission are consistent with and~~

20 ~~subject to the city of Providence comprehensive plan adopted by the city pursuant to § 45-22-2.1~~

21 ~~et seq. and the city of Providence zoning ordinances pursuant to § 45-24-27 et seq. as previously~~

22 ~~enacted by the city of Providence, and as may be enacted and/or amended from time to time through~~

23 ~~July 1, 2012, or enacted and/or amended thereafter with the consent of the commission.~~

24 (ix) A special economic development district as provided for in chapter 24.6 of title 45.

25 ~~(3)~~(c) For the benefit of the district, the commission shall have the power to enter into

26 agreements with the city of Providence for:

27 (i) The exercise of powers for tax increment financing as provided for in chapter 45-33.2;

28 (ii) The imposition of impact fees as provided for in chapter 45-22.4 in order to provide

29 infrastructure capacity to or make physical improvements within the district; or

30 (iii) Approval within the district of a district management authority as provided for in

31 chapter 45-59, for purposes of undertaking activities consistent with the approved plans for the

32 district adopted pursuant to § 42-64.14-8.

33 ~~(4)~~(d) Title and survey adjustments. The commission is authorized to adjust boundary lines,

34 survey lines and property descriptions of the parcels of land comprising the I-195 surplus land as

1 may be necessary or appropriate to facilitate or enhance project design plans and for the location

2 and/or relocation of city streets, utility corridors, easements and rights-of-way.

3 ~~(5)~~(e) The commission is authorized and empowered, in the name of and for the State of

4 Rhode Island, to enter into contracts for the sale, transfer or conveyance, in fee simple, by lease or

5 otherwise of the any of the I-195 Surplus lands identified in § 37-5-8 in order to achieve the

6 purposes of this chapter and customary terms for commercial real estate transactions of this nature,

7 and containing the following provisions:

8 (i) The terms for each parcel shall be the fair market value of such parcel at the time of

9 conveyance as determined by the commission.

10 (ii) As a condition to the sale, lease or other transfer of each parcel or any portion thereof,

11 any buyer, tenant or transferee that is a not-for-profit, organization or entity that is otherwise

12 exempt from municipal real estate taxes, including, without limitation, any independent public

13 instrumentality, governmental or quasi governmental agency, body, division, or official, or any

14 affiliate or subsidiary thereof, shall have entered into an agreement for payments to the city in

15 accordance with § 42-64.14-14 relating to tax exempt parcels, or such other things acceptable to

16 the city.

17 (iii) Promptly after taking title to a parcel, the buyer shall cause such parcel to be

18 attractively landscaped and maintained for use as green space until such time as development of

19 the parcel in accordance with this section begins.

20 (iv) Development of the parcels, as appropriate, shall be in accordance with the findings

21 set forth in this chapter and with the buyer's approved development plan for the identified parcels,

22 as the same may be amended from time to time with the approval of the commission.

23 (v) As a condition to the contract for the sale, lease, transfer or conveyance an approved

24 development plan shall include a construction schedule that shall commence within twelve (12)

25 months from the effective date of the contract and all construction shall be complete within three

26 (3) years from the commencement of said construction unless otherwise amended and approved by

27 the commission at a duly posted public meeting of the commission.

28 ~~(6) Notwithstanding any provision of this chapter 42-64.14 or any other law to the contrary,~~

29 ~~the commission shall exercise all powers authorized by §§ 42-64.14-7 and 42-64.14-8 in a manner~~

30 ~~consistent with and subject to the city of Providence comprehensive plan adopted by the city~~

31 ~~pursuant to 45-22-2.1 et seq. and the city of Providence zoning ordinances pursuant to 45-24-27 et~~

32 ~~seq. as previously enacted by the city of Providence, and as may be enacted and/or amended from~~

33 ~~time to time through July 1, 2012, or enacted thereafter with the consent of the commission.~~

34 ~~(7)~~(f) Under no circumstances shall the commission establish, authorize, zone, plan, or

1 permit in the district a so-called "casino" or any form of gambling, including but not limited to

2 those activities governed by title 41 of the Rhode Island general laws, so-called "video-gambling"

3 or any lotteries whatsoever except for the sale of lottery tickets pursuant to title 42, section 61 of

4 the general laws. Furthermore, upon conveyance, but in any event before approving any project,

5 development, or redevelopment, the commission shall ensure that a deed restriction, running to the

6 benefit of the city of Providence and the state, is recorded against the subject property effectuating

7 and memorializing such restriction. The aforementioned restriction shall run with the land and be

8 binding upon all successors and assign. Any deed restriction conveyed to the state pursuant to this

9 subsection may be waived only by statute, resolution or other action by the general assembly which

10 complies with the constitutional requirements for the expansion of gambling.

11 42-64.14-18. Inconsistent laws or ordinance inoperative.

12 Except as otherwise provided herein, any provisions of any special law and part of any

13 special law and all ordinances and parts of ordinances pertaining to development within the district

14 which are inconsistent with the provisions of this chapter shall be inoperative and cease to be

15 effective. The provisions of this chapter shall be deemed to provide an exclusive, additional,

16 alternative, and complete method for the doing of the things authorized hereby and shall be deemed

17 and construed to be supplemental and additional to, and not in derogation of, powers conferred

18 upon the commission by law and on the city by its charter; provided, however, that insofar as the

19 express provisions of this chapter are inconsistent with the provisions of any general or special law,

20 administrative order or regulation, or ordinance of the city, the provisions of this chapter shall be

21 controlling; provided, however, to the extent of any inconsistency or conflict between this chapter

22 and chapter 24.6 of title 45, the provisions of chapter 24.6 of title 45 shall be controlling.

23 SECTION 10. Title 42 of the General Laws entitled "STATE AFFAIRS AND

24 GOVERNMENT" is hereby amended by adding thereto the following chapter:

25 CHAPTER 64.33

26 THE RHODE ISLAND SMALL BUSINESS DEVELOPMENT FUND

27 42-64.33-1. Short title.

28 This chapter shall be known and may be cited as the "Rhode Island Small Business

29 Development Fund."

30 42-64.33-2. Definitions.

31 (a) As used in this chapter:

32 (1) "Affiliate" means an entity that directly, or indirectly, through one or more

33 intermediaries, controls, or is controlled by, or is under common control with another entity. For

34 the purposes of this chapter, an entity is "controlled by" another entity if the controlling entity holds,

1 directly or indirectly, the majority voting or ownership interest in the controlled entity or has control

2 over the day-to-day operations of the controlled entity by contract or by law.

3 (2) "Applicable percentage" means zero percent (0%) for the first three (3) credit allowance

4 dates, and twenty-one and one-half percent (21.5%) for the fourth, fifth, and sixth credit allowance

5 dates.

6 (3) "Capital investment" means any equity or debt investment in a small business

7 development fund by a small business fund investor that:

8 (i) Is acquired after the effective date of this chapter at its original issuance solely in

9 exchange for cash;

10 (ii) Has one hundred percent (100%) of its cash purchase price used by the small business

11 development fund to make qualified investments in eligible businesses located in this state within

12 three (3) years of the initial credit allowance date; and

13 (iii) Is designated by the small business development fund as a capital investment under

14 this chapter and is certified by the Corporation pursuant to § 42-64.33-4. This term shall include

15 any capital investment that does not meet the provisions of § 42-64.33-4(a) if the investment was

16 a capital investment in the hands of a prior holder.

17 (4) "Corporation" means the Rhode Island Commerce Corporation.

18 (5) "Credit allowance date" means the date on which a capital investment is made and each

19 of the five (5) anniversary dates of the date thereafter.

20 (6) "Eligible business" means a business that, at the time of the initial qualified investment

21 in the company:

22 (i) Has less than two hundred fifty (250) employees;

23 (ii) Has not more than fifteen million dollars ($15,000,000) in net income from the

24 preceding tax year;

25 (iii) Has its principal business operations in this state; and

26 (iv) Is engaged in industries related to clean energy, biomedical innovation, life sciences,

27 information technology, software, cyber physical systems, cybersecurity, data analytics, defense,

28 shipbuilding, maritime, composites, advanced business services, design, food, manufacturing,

29 transportation, distribution, logistics, arts, education, hospitality, tourism, or, if not engaged in the

30 industries, the Corporation makes a determination that the investment will be beneficial to the

31 economic growth of the state.

32 (7) "Eligible distribution" means:

33 (i) A distribution of cash to one or more equity owners of a small business fund investor to

34 fully or partially offset a projected increase in the owner's federal or state tax liability, including

1 any penalties and interest, related to the owner's ownership, management, or operation of the small

2 business fund investor;

3 (ii) A distribution of cash as payment of interest and principal on the debt of the small

4 business fund investor or small business development fund; or

5 (iii) A distribution of cash related to the reasonable costs and expenses of forming,

6 syndicating, managing, and operating the small business fund investor or the small business

7 development fund, or a return of equity or debt to affiliates of a small business fund investor or

8 small business development fund. The distributions may include reasonable and necessary fees paid

9 for professional services, including legal and accounting services, related to the formation and

10 operation of the small business development fund.

11 (8) "Jobs created" means a newly created position of employment that was not previously

12 located in the state at the time of the qualified investment in the eligible business and requiring a

13 minimum of thirty five (35) hours worked each week, measured each year by subtracting the

14 number of full-time thirty five (35) hours per week employment positions at the time of the initial

15 qualified investment in the eligible business from the monthly average of full-time thirty five (35)

16 hours per week employment positions for the applicable year. The number shall not be less than

17 zero.

18 (9) "Jobs retained" means a position requiring a minimum of thirty five (35) hours worked

19 each week that existed prior to the initial qualified investment. Retained jobs shall be counted each

20 year based on the monthly average of full-time thirty five (35) hours per week employment

21 positions for the applicable year. The number shall not exceed the initial amount of retained jobs

22 reported and shall be reduced each year if employment at the eligible business concern drops below

23 that number.

24 (10) "Minority business enterprise" means an eligible business which is certified by the

25 Rhode Island office of diversity, equity and opportunity as being a minority or women business

26 enterprise.

27 (11) "Principal business operations" means the location where at least sixty percent (60%)

28 of a business's employees work or where employees who are paid at least sixty percent (60%)

29 percent of the business's payroll work. A business that has agreed to relocate employees using the

30 proceeds of a qualified investment to establish its principal business operations in a new location

31 shall be deemed to have its principal business operations in the new location if it satisfies these

32 requirements no later than one hundred eighty (180) days after receiving a qualified investment.

33 (12) "Purchase price" means the amount paid to the small business development fund that

34 issues a capital investment which shall not exceed the amount of capital investment authority

1 certified pursuant to § 42-64.33-4.

2 (13) "Qualified investment" means any investment in an eligible business or any loan to an

3 eligible business with a stated maturity date of at least one year after the date of issuance, excluding

4 revolving lines of credit and senior secured debt unless the eligible business has a credit refusal

5 letter or similar correspondence from a depository institution or a referral letter or similar

6 correspondence from a depository institution referring the business to a small business development

7 fund; provided that, with respect to any one eligible business, the maximum amount of investments

8 made in the business by one or more small business development funds, on a collective basis with

9 all of the businesses' affiliates, with the proceeds of capital investments shall be twenty percent

10 (20%) of the small business development fund's capital investment authority, exclusive of

11 investments made with repaid or redeemed investments or interest or profits realized thereon. An

12 eligible business, on a collective basis with all of the businesses' affiliates, is prohibited from

13 receiving more than four million dollars ($4,000,000) in investments from one or more small

14 business development funds with the proceeds of capital investments.

15 (14) "Small business development fund" means an entity certified by the Corporation under

16 § 42-64.33-4.

17 (15) "Small business fund investor" means an entity that makes a capital investment in a

18 small business development fund.

19 (16) "State" means the state of Rhode Island and Providence Plantations.

20 (17) "State tax liability" means any liability incurred by any entity under § 44-17-1 et seq.

21 42-64.33-3. Tax credit established.

22 (a) Upon making a capital investment in a small business development fund, a small

23 business fund investor earns a vested right to a credit against the entity's state tax liability that may

24 be utilized on each credit allowance date of the capital investment in an amount equal to the

25 applicable percentage for the credit allowance date multiplied by the purchase price paid to the

26 small business development fund for the capital investment. The amount of the credit claimed by

27 any entity shall not exceed the amount of the entity's state tax liability for the tax year for which

28 the credit is claimed. Any amount of credit that an entity is prohibited from claiming in a taxable

29 year as a result of this section may be carried forward for a period of seven (7) years. It is the intent

30 of this chapter that an entity claiming a credit under this section is not required to pay any additional

31 tax that may arise as a result of claiming the credit.

32 (b) No credit claimed under this section shall be refundable or saleable on the open market.

33 Credits earned by or allocated to a partnership, limited liability company, or S- corporation may be

34 allocated to the partners, members, or shareholders of the entity for their direct use for state tax

1 liability as defined in this chapter in accordance with the provisions of any agreement among the

2 partners, members, or shareholders, and a small business development fund must notify the

3 Corporation of the names of the entities that are eligible to utilize credits pursuant to an allocation

4 of credits or a change in allocation of credits or due to a transfer of a capital investment upon the

5 allocation, change, or transfer. The allocation shall be not considered a sale for purposes of this

6 section.

7 (c) The Corporation shall provide copies of issued certificates to the division of taxation.

8 42-64.33-4. Application, approval and allocations.

9 (a) A small business development fund that seeks to have an equity or debt investment

10 certified as a capital investment and eligible for credits under this chapter shall apply to the

11 Corporation. The Corporation shall begin accepting applications within ninety (90) days of the

12 effective date of this chapter. The small business development fund shall include the following:

13 (1) The amount of capital investment requested;

14 (2) A copy of the applicant's or an affiliate of the applicant's license as a rural business

15 investment company under 7 U.S.C. § 2009cc, or as a small business investment company under

16 15 U.S.C. § 681, and a certificate executed by an executive officer of the applicant attesting that

17 the license remains in effect and has not been revoked;

18 (3) Evidence that, as of the date the application is submitted, the applicant or affiliates of

19 the applicant have invested at least one hundred million dollars ($100,000,000) in nonpublic

20 companies;

21 (4) An estimate of the number of jobs that will be created or retained in this state as a result

22 of the applicant's qualified investments;

23 (5) A business plan that includes a strategy for reaching out to and investing in minority

24 business enterprises and a revenue impact assessment projecting state and local tax revenue to be

25 generated by the applicant's proposed qualified investment prepared by a nationally recognized,

26 third-party, independent economic forecasting firm using a dynamic economic forecasting model

27 that analyzes the applicant's business plan over the ten (10) years following the date the application

28 is submitted to the Corporation; and

29 (6) A nonrefundable application fee of five thousand dollars ($5,000), payable to the

30 Corporation.

31 (b) Within thirty (30) days after receipt of a completed application, the Corporation shall

32 grant or deny the application in full or in part. The Corporation shall deny the application if:

33 (1) The applicant does not satisfy all of the criteria described in subsection (a) of this

34 section;

1 (2) The revenue impact assessment submitted with the application does not demonstrate

2 that the applicant's business plan will result in a positive economic impact on this state over a ten

3 (10) year period that exceeds the cumulative amount of tax credits that would be issued to the

4 applicant if the application were approved; or

5 (3) The Corporation has already approved the maximum amount of capital investment

6 authority under subsection (g) of this section.

7 (c) If the Corporation denies any part of the application, it shall inform the applicant of the

8 grounds for the denial. If the applicant provides any additional information required by the

9 Corporation or otherwise completes its application within fifteen (15) days of the notice of denial,

10 the application shall be considered completed as of the original date of submission. If the applicant

11 fails to provide the information or fails to complete its application within the fifteen (15) day period,

12 the application remains denied and must be resubmitted in full with a new submission date.

13 (d) If the application is deemed to be complete and the applicant deemed to meet all of the

14 requirements of Section 42-64.33-4 (a) and (b), the Corporation shall certify the proposed equity

15 or debt investment as a capital investment that is eligible for credits under this chapter, subject to

16 the limitations contained in subsection (g) of this section. The Corporation shall provide written

17 notice of the certification to the small business development fund.

18 (e) The Corporation shall certify capital investments in the order that the applications were

19 received by the Corporation. Applications received on the same day shall be deemed to have been

20 received simultaneously.

21 (f) For applications that are complete and received on the same day, the Corporation shall

22 certify applications in proportionate percentages based upon the ratio of the amount of capital

23 investments requested in an application to the total amount of capital investments requested in all

24 applications.

25 (g) The Corporation shall certify sixty-five million dollars ($65,000,000) in capital

26 investments pursuant to this section; provided that not more than twenty million dollars

27 ($20,000,000) may be allocated to any individual small business development fund certified under

28 this section.

29 (h) Within sixty (60) days of the applicant receiving notice of certification, the small

30 business development fund shall issue the capital investment to and receive cash in the amount of

31 the certified amount from a small business fund investor. At least forty-five percent (45%) of the

32 small business fund investor's capital investment shall be composed of capital raised by the small

33 business fund investor from sources, including directors, members, employees, officers, and

34 affiliates of the small business fund investor, other than the amount of capital invested by the

1 allocatee claiming the tax credits in exchange for the allocation of tax credits; provided that at least

2 ten percent (10%) of the capital investment shall be derived from the small business investment

3 fund's managers. The small business development fund shall provide the Corporation with evidence

4 of the receipt of the cash investment within sixty-five (65) days of the applicant receiving notice of

5 certification. If the small business development fund does not receive the cash investment and issue

6 the capital investment within the time period following receipt of the certification notice, the

7 certification shall lapse and the small business development fund shall not issue the capital

8 investment without reapplying to the Corporation for certification. Lapsed certifications revert to

9 the authority and shall be reissued pro rata to applicants whose capital investment allocations were

10 reduced pursuant to this chapter and then in accordance with the application process.

11 42-64.33-5. Tax credit recapture and exit.

12 (a) The Corporation, working in coordination with the Division of Taxation, may recapture,

13 from any entity that claims a credit on a tax return, the credit allowed under this chapter if:

14 (1) The small business development fund does not invest one hundred (100%) percent of

15 its capital investment authority in qualified investments in this state within three (3) years of the

16 first credit allowance date;

17 (2) The small business development fund, after satisfying subsection (a)(1) of this section,

18 fails to maintain qualified investments equal to one hundred (100%) percent of its capital

19 investment authority until the sixth anniversary of the initial credit allowance date. For the purposes

20 of this subsection, a qualified investment is considered maintained even if the qualified investment

21 was sold or repaid so long as the small business development fund reinvests an amount equal to the

22 capital returned or recovered by the small business development fund from the original investment,

23 exclusive of any profits realized, in other qualified investments in this state within twelve (12)

24 months of the receipt of the capital. Amounts received periodically by a small business

25 development fund shall be treated as continually invested in qualified investments if the amounts

26 are reinvested in one or more qualified investments by the end of the following calendar year. A

27 small business development fund shall not be required to reinvest capital returned from qualified

28 investments after the fifth anniversary of the initial credit allowance date, and the qualified

29 investments shall be considered held continuously by the small business development fund through

30 the sixth anniversary of the initial credit allowance date;

31 (3) The small business development fund, before exiting the program in accordance with

32 subsection (e) of this section, makes a distribution or payment that results in the small business

33 development fund having less than one hundred percent (100%) of its capital investment authority

34 invested in qualified investments in this state or available for investment in qualified investments

1 and held in cash and other marketable securities;

2 (4) The small business development fund, before exiting the program in accordance with

3 subsection (e) of this section, fails to make qualified investments in minority business enterprises

4 that when added together equal at least ten percent (10%) of the small business development fund's

5 capital investment authority; or

6 (5) The small business development fund violates subsection (d) of this section.

7 (b) Recaptured credits and the related capital investment authority revert to the Corporation

8 and shall be reissued pro rata to applicants whose capital investment allocations were reduced

9 pursuant to § 42-64.33-4(f) of this section and then in accordance with the application process.

10 (c) Enforcement of each of the recapture provisions of subsection (a) of this section shall

11 be subject to a six (6) month cure period. No recapture shall occur until the small business

12 development fund has been given notice of noncompliance and afforded six (6) months from the

13 date of the notice to cure the noncompliance.

14 (d) No eligible business that receives a qualified investment under this chapter, or any

15 affiliates of the eligible business, may directly or indirectly:

16 (1) Own or have the right to acquire an ownership interest in a small business development

17 fund or member or affiliate of a small business development fund, including, but not limited to, a

18 holder of a capital investment issued by the small business development fund; or

19 (2) Loan to or invest in a small business development fund or member or affiliate of a small

20 business development fund, including, but not limited to, a holder of a capital investment issued by

21 a small business development fund, where the proceeds of the loan or investment are directly or

22 indirectly used to fund or refinance the purchase of a capital investment under this chapter.

23 (e) On or after the sixth anniversary of the initial credit allowance date, a small business

24 development fund may apply to the Corporation to exit the program and no longer be subject to

25 regulation under this chapter. The Corporation shall respond to the exit application within thirty

26 (30) days of receipt. In evaluating the exit application, the fact that no credits have been recaptured

27 and that the small business development fund has not received a notice of recapture that has not

28 been cured pursuant to subsection (c) of this section shall be sufficient evidence to prove that the

29 small business development fund is eligible for exit. The Corporation shall not unreasonably deny

30 an exit application submitted under this subsection. If the exit application is denied, the notice shall

31 include the reasons for the determination.

32 (f) If the number of jobs created or retained by the eligible businesses that received

33 qualified investments from the small business development fund, calculated pursuant to reports

34 filed by the small business development fund pursuant to § 42-64.33-7, is:

1 (1) Less than sixty percent (60%) of the amount projected in the approved small business

2 development fund's business plan filed as part of its application for certification under § 42- 64.33-

3 4, then the state shall receive thirty percent (30%) of any distribution or payment to an equity or

4 debt holder in an approved small business development fund made after its exit from the program

5 in excess of eligible distributions; or

6 (2) Greater than sixty percent (60%) but less than one hundred percent (100%) of the

7 amount projected in the approved small business development fund's business plan filed as part of

8 its application for certification under § 42-64.33-4, then the state shall receive fifteen percent (15%)

9 of any distribution or payment to an equity or debt holder in an approved small business

10 development fund made after its exit from the program in excess of eligible distributions.

11 (g) At the time a small business development fund applies to the Corporation to exit the

12 program, it shall calculate the aggregate internal rate of return of its qualified investments. If the

13 small business development fund's aggregate internal rate of return on its qualified investments at

14 exit exceeds ten percent (10%), then, after eligible distributions, the state shall receive ten percent

15 (10%) of any distribution or payment in excess of the aggregate ten percent (10%) internal rate of

16 return to an equity or debtholder in an approved small business development fund.

17 (h) The Corporation shall not revoke a tax credit certificate after the small business

18 development fund's exit from the program.

19 42-64.33-6. Request for determination.

20 A small business development fund, before making a qualified investment, may request

21 from the Corporation a written opinion as to whether the business in which it is proposed to invest

22 is an eligible business. The Corporation, not later than the fifteenth business day after the date of

23 receipt of the request, shall notify the small business development fund of its determination. If the

24 Corporation fails to notify the small business development fund by the fifteenth business day of its

25 determination, the business in which the small business development fund proposes to invest shall

26 be considered an eligible business.

27 42-64.33-7. Reporting obligations.

28 (a) Each small business development fund shall submit a report to the Corporation on or

29 before the fifth business day after the first, second and third anniversaries of the closing date. The

30 report shall provide documentation as to the small business development fund's qualified

31 investments and include:

32 (1) A bank statement evidencing each qualified investment;

33 (2) The name, location, status as a minority business enterprise if applicable, and industry

34 of each business receiving a qualified investment, including either the determination letter set forth

1 in § 42-64.33-6 or evidence that the business qualified as an eligible business at the time the

2 investment was made;

3 (3) The number of employment positions created or retained as a result of the small

4 business development fund's qualified investments as of the last day of the preceding calendar year;

5 and

6 (4) Such other reasonable information as the corporation may require.

7 (b) On or before the last day of February of each year following the final year in which the

8 report required in subsection (a) of this section is due, the small business development fund shall

9 submit an annual report to the Corporation including the following:

10 (1) The number of employment positions created or retained as a result of the small

11 business development fund's qualified investments as of the last day of the preceding calendar year;

12 (2) The number of minority business enterprises that have received qualified investments

13 and the amount of qualified investment that such minority business enterprises have received;

14 (3) The average annual salary of the positions described in subsection (b)(1) of this section;

15 (4) The follow-on capital investment that has occurred along with or after the small

16 business development fund's investment as of the last day of the preceding calendar year; and

17 (5) Such other reasonable information as the corporation may require.

18 (c) A copy of the reports required under this section must also be sent concurrently to the

19 speaker of the house, president of the senate, house finance chairperson, senate finance chairperson,

20 and the general treasurer.

21 (d) On or before each September 30, the corporation shall publish a report on the small

22 business development fund and provide such report to the speaker of the house of representatives,

23 president of the senate, house finance chair, senate finance chair, and the general treasurer. The

24 report shall contain information on the program implementation, investments made fund

25 performance, and to the extent practicable, track the economic impact of the investments

26 completed.

27 42-64.33-8. Limitations.

28 The incentives provided under this chapter shall not be granted in combination with any

29 other job specific benefit provided by the state, the commerce corporation, or any other state

30 agency, board, commission, quasi-public corporation or similar entity without the express

31 authorization of the commerce corporation.

32 42-64.33-9. Rules and regulations.

33 The Corporation and Division of Taxation may issue reasonable rules and regulations,

1 of the responsibilities under this chapter.

2 SECTION 11. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled

3 "Rhode Island Tax Increment Financing" is hereby amended to read as follows:

4 42-64.21-9. Sunset.

5 The commerce corporation shall enter into no agreement under this chapter after December

6 31, ~~June 30,~~ 2020.

7 SECTION 12. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled "Tax

8 Stabilization Incentive" is hereby amended to read as follows:

9 42-64.22-15. Sunset.

10 The commerce corporation shall enter into no agreement under this chapter after ~~June 30,~~

11 December 31, 2020.

12 SECTION 13. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled "First

13 Wave Closing Fund" is hereby amended to read as follows:

14 42-64.23-8. Sunset.

15 No financing shall be authorized to be reserved pursuant to this chapter after ~~June 30,~~

16 December 31, 2020.

17 SECTION 14. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled "I-195

18 Redevelopment Project Fund" is hereby amended to read as follows:

19 42-64.24-8. Sunset.

20 No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant

21 to this chapter after ~~June 30,~~ December 31, 2020.

22 SECTION 15. Section 42-64.25-14 of the General Laws in Chapter 42-64.25 entitled

23 "Small Business Assistance Program" is hereby amended to read as follows:

24 42-64.25-14. Sunset.

25 No grants, funding, or incentives shall be authorized pursuant to this chapter after ~~June 30,~~

26 December 31, 2020.

27 SECTION 16. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled "Stay

28 Invested in RI Wavemaker Fellowship" is hereby amended to read as follows:

29 42-64.26-12. Sunset.

30 No incentives or credits shall be authorized pursuant to this chapter after ~~June 30,~~

31 December 31, 2020.

32 SECTION 17. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled "Main

33 Street Rhode Island Streetscape Improvement Fund" is hereby amended to read as follows:

34 42-64.27-6. Sunset.

1 No incentives shall be authorized pursuant to this chapter after ~~June 30,~~ December 31,

2 2020.

3 SECTION 18. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled

4 "Innovation Initiative" is hereby amended to read as follows:

5 42-64.28-10. Sunset.

6 No vouchers, grants, or incentives shall be authorized pursuant to this chapter after ~~June~~

7 ~~30,~~ December 31, 2020.

8 SECTION 19. Section 42-64.29-8 of the General Laws in Chapter 42-64.29 entitled

9 "Industry Cluster Grants" is hereby amended to read as follows:

10 42-64.29-8. Sunset.

11 No grants or incentives shall be authorized to be reserved pursuant to this chapter after

12 ~~June 30,~~ December 31, 2020.

13 SECTION 20. Section 42-64.31-4 of the General Laws in Chapter 42-64.31 entitled "High

14 School, College, and Employer Partnerships" is hereby amended to read as follows:

15 42-64.31-4. Sunset.

16 No grants shall be authorized pursuant to this chapter after ~~June 30,~~ December 31, 2020.

17 SECTION 21. Section 42-64.32-6 of the General Laws in Chapter 42-64.32 entitled "Air

18 Service Development Fund" is hereby amended to read as follows:

19 42-64.32-6. Sunset.

20 No grants, credits, or incentives shall be authorized or authorized to be reserved pursuant

21 to this chapter after ~~June 30,~~ December 31, 2020.

22 SECTION 22. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled "Rhode

23 Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:

24 44-48.3-14. Sunset.

25 No credits shall be authorized to be reserved pursuant to this chapter after ~~June 30,~~

26 December 31, 2020.

27 SECTION 23. This article shall take effect upon passage.

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art.013/12/013/11/013/10/013/9/013/8/013/7/013/6/013/5/016/2/016/1

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1 ARTICLE 13 AS AMENDED

2 RELATING TO HUMAN SERVICES

3 SECTION 1. Section 35-17-1 of the General Laws in Chapter 35-17 entitled "Medical

4 Assistance and Public Assistance Caseload Estimating Conferences" is hereby amended to read as

5 follows:

6 35-17-1. Purpose and membership.

7 (a) In order to provide for a more stable and accurate method of financial planning and

8 budgeting, it is hereby declared the intention of the legislature that there be a procedure for the

9 determination of official estimates of anticipated medical assistance expenditures and public

10 assistance caseloads, upon which the executive budget shall be based and for which appropriations

11 by the general assembly shall be made.

12 (b) The state budget officer, the house fiscal advisor, and the senate fiscal advisor shall

13 meet in regularly scheduled caseload estimating conferences (C.E.C.). These conferences shall be

14 open public meetings.

15 (c) The chairpersonship of each regularly scheduled C.E.C. will rotate among the state

16 budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as

17 principals. The schedule shall be arranged so that no chairperson shall preside over two (2)

18 successive regularly scheduled conferences on the same subject.

19 (d) Representatives of all state agencies are to participate in all conferences for which their

20 input is germane.

21 (e) The department of human services shall provide monthly data to the members of the

22 caseload estimating conference by the fifteenth day of the following month. Monthly data shall

23 include, but is not limited to, actual caseloads and expenditures for the following case assistance

24 programs: Rhode Island Works, SSI state program, general public assistance, and child care. For

25 individuals eligible to receive the payment under § 40-6-27(a)(1)(vi), the report shall include the

26 number of individuals enrolled in a managed care plan receiving long-term care services and

27 supports and the number receiving fee-for-service benefits. The executive office of health and

28 human services shall report relevant caseload information and expenditures for the following

29 medical assistance categories: hospitals, long-term care, managed care, pharmacy, and other

30 medical services. In the category of managed care, caseload information and expenditures for the

1 following populations shall be separately identified and reported: children with disabilities,

2 children in foster care, and children receiving adoption assistance and RIte Share enrollees under §

3 40-8.4-12(j). The information shall include the number of Medicaid recipients whose estate may

4 be subject to a recovery and the anticipated amount to be collected from those subject to recovery,

5 the total recoveries collected each month and number of estates attached to the collections and each

6 month, the number of open cases and the number of cases that have been open longer than three

7 months.

8 SECTION 2. ~~Section~~ Sections 40-5-10 and 40-5.2-20 of the General Laws in Chapter 40-

9 5.2 entitled "The Rhode Island Works Program" is are hereby amended to read as follows:

10 40-5.2-10. Necessary requirements and conditions.

11 The following requirements and conditions shall be necessary to establish eligibility for

12 the program.

13 (a) Citizenship, alienage and residency requirements.

14 (1) A person shall be a resident of the State of Rhode Island.

15 (2) Effective October 1, 2008 a person shall be a United States citizen, or shall meet the

16 alienage requirements established in § 402(b) of the Personal Responsibility and Work Opportunity

17 Reconciliation Act of 1996, PRWORA, Public Laws No. 104-193 and as that section may hereafter

18 be amended [8 U.S.C. § 1612]; a person who is not a United States citizen and does not meet the

19 alienage requirements established in PRWORA, as amended, is not eligible for cash assistance in

20 accordance with this chapter.

21 (b) The family/assistance unit must meet any other requirements established by the

22 department of human services by rules and regulations adopted pursuant to the Administrative

23 Procedures Act, as necessary to promote the purpose and goals of this chapter.

24 (c) Receipt of cash assistance is conditional upon compliance with all program

25 requirements.

26 (d) All individuals domiciled in this state shall be exempt from the application of

27 subdivision 115(d)(1)(A) of Public Law 104-193, the Personal Responsibility and Work

28 Opportunity Reconciliation Act of 1996, PRWORA [21 U.S.C. § 862a], which makes any

29 individual ineligible for certain state and federal assistance if that individual has been convicted

30 under federal or state law of any offense which is classified as a felony by the law of the jurisdiction

31 and which has as an element the possession, use, or distribution of a controlled substance as defined

32 in § 102(6) of the Controlled Substances Act (21 U.S.C. § 802(6)).

33 (e) Individual employment plan as a condition of eligibility.

34 (1) Following receipt of an application, the department of human services shall assess the

1 financial conditions of the family, including the non-parent caretaker relative who is applying for

2 cash assistance for himself or herself as well as for the minor child(ren),in the context of an

3 eligibility determination. If a parent or non parent caretaker relative is unemployed or under-

4 employed, the department shall conduct an initial assessment, taking into account: (A) the physical

5 capacity, skills, education, work experience, health, safety, family responsibilities and place of

6 residence of the individual; and (B) the child care and supportive services required by the applicant

7 to avail himself or herself of employment opportunities and/or work readiness programs.

8 (2) On the basis of such assessment, the department of human services and the department

9 of labor and training, as appropriate, in consultation with the applicant, shall develop an individual

10 employment plan for the family which requires the individual to participate in the intensive

11 employment services. Intensive employment services shall be defined as the work requirement

12 activities in subsections 40-5.2-12(g) and (i).

13 (3) The director, or his/her designee, may assign a case manager to an applicant/participant,

14 as appropriate.

15 (4) The department of labor and training and the department of human services in

16 conjunction with the participant shall develop a revised individual employment plan which shall

17 identify employment objectives, taking into consideration factors above, and shall include a

18 strategy for immediate employment and for preparing for, finding, and retaining employment

19 consistent, to the extent practicable, with the individual's career objectives.

20 (5) The individual employment plan must include the provision for the participant to

21 engage in work requirements as outlined in § 40-5.2-12 of this chapter.

22 (6)(A) The participant shall attend and participate immediately in intensive assessment and

23 employment services as the first step in the individual employment plan, unless temporarily exempt

24 from this requirement in accordance with this chapter. Intensive assessment and employment

25 services shall be defined as the work requirement activities in subsections 40-5.2-12(g) and (i).

26 (B) Parents under age twenty (20) without a high school diploma or General Equivalency

27 Diploma (GED) shall be referred to special teen parent programs which will provide intensive

28 services designed to assist teen parent to complete high school education or GED, and to continue

29 approved work plan activities in accord with Works program requirements.

30 (7) The applicant shall become a participant in accordance with this chapter at the time the

31 individual employment plan is signed and entered into.

32 (8) Applicants and participants of the Rhode Island Work Program shall agree to comply

33 with the terms of the individual employment plan, and shall cooperate fully with the steps

34 established in the individual employment plan, including the work requirements.

1 (9) The department of human services has the authority under the chapter to require

2 attendance by the applicant/participant, either at the department of human services or at the

3 department of labor and training, at appointments deemed necessary for the purpose of having the

4 applicant enter into and become eligible for assistance through the Rhode Island Work Program.

5 Said appointments include, but are not limited to, the initial interview, orientation and assessment;

6 job readiness and job search. Attendance is required as a condition of eligibility for cash assistance

7 in accordance with rules and regulations established by the department.

8 (10) As a condition of eligibility for assistance pursuant to this chapter, the

9 applicant/participant shall be obligated to keep appointments, attend orientation meetings at the

10 department of human services and/or the Rhode Island department of labor and training, participate

11 in any initial assessments or appraisals and comply with all the terms of the individual employment

12 plan in accordance with department of human service rules and regulations.

13 (11) A participant, including a parent or non-parent caretaker relative included in the cash

14 assistance payment, shall not voluntarily quit a job or refuse a job unless there is good cause as

15 defined in this chapter or the department's rules and regulations.

16 (12) A participant who voluntarily quits or refuses a job without good cause, as defined in

17 subsection 40-5.2-12(l), while receiving cash assistance in accordance with this chapter, shall be

18 sanctioned in accordance with rules and regulations promulgated by the department.

19 (f) Resources.

20 (1) The Family or assistance unit's countable resources shall be less than the allowable

21 resource limit established by the department in accordance with this chapter.

22 (2) No family or assistance unit shall be eligible for assistance payments if the combined

23 value of its available resources (reduced by any obligations or debts with respect to such resources)

24 exceeds one thousand dollars ($1,000).

25 (3) For purposes of this subsection, the following shall not be counted as resources of the

26 family/assistance unit in the determination of eligibility for the works program:

27 (A) The home owned and occupied by a child, parent, relative or other individual;

28 (B) Real property owned by a husband and wife as tenants by the entirety, if the property

29 is not the home of the family and if the spouse of the applicant refuses to sell his or her interest in

30 the property;

31 (C) Real property which the family is making a good faith effort to dispose of, however,

32 any cash assistance payable to the family for any such period shall be conditioned upon such

1 that they would not have occurred at the beginning of the period for which the payments were

2 made. All overpayments are debts subject to recovery in accordance with the provisions of the

3 chapter;

4 (D) Income producing property other than real estate including, but not limited to,

5 equipment such as farm tools, carpenter's tools and vehicles used in the production of goods or

6 services which the department determines are necessary for the family to earn a living;

7 (E) One vehicle for each adult household member, but not to exceed two (2) vehicles per

8 household, and in addition, a vehicle used primarily for income producing purposes such as, but

9 not limited to, a taxi, truck or fishing boat; a vehicle used as a family's home; a vehicle which

10 annually produces income consistent with its fair market value, even if only used on a seasonal

11 basis; a vehicle necessary to transport a family member with a disability where the vehicle is

12 specially equipped to meet the specific needs of the person with a disability or if the vehicle is a

13 special type of vehicle that makes it possible to transport the person with a disability;

14 (F) Household furnishings and appliances, clothing, personal effects and keepsakes of

15 limited value;

16 (G) Burial plots (one for each child, relative, and other individual in the assistance unit),

17 and funeral arrangements;

18 (H) For the month of receipt and the following month, any refund of federal income taxes

19 made to the family by reason of § 32 of the Internal Revenue Code of 1986, 26 U.S.C. § 32 (relating

20 to earned income tax credit), and any payment made to the family by an employer under § 3507 of

21 the Internal Revenue Code of 1986, 26 U.S.C. § 3507 (relating to advance payment of such earned

22 income credit);

23 (I) The resources of any family member receiving supplementary security income

24 assistance under the Social Security Act, 42 U.S.C. § 301 et seq.

25 (g) Income.

26 (1) Except as otherwise provided for herein, in determining eligibility for and the amount

27 of cash assistance to which a family is entitled under this chapter, the income of a family includes

28 all of the money, goods, and services received or actually available to any member of the family.

29 (2) In determining the eligibility for and the amount of cash assistance to which a

30 family/assistance unit is entitled under this chapter, income in any month shall not include the first

31 one hundred seventy dollars ($170) of gross earnings plus fifty percent (50%) of the gross earnings

32 of the family in excess of one hundred seventy dollars ($170) earned during the month.

1 custodial parent of a child plus any arrearages in child support (to the extent of the first fifty dollars

2 ($50.00) per month multiplied by the number of months in which the support has been in arrears)

3 which are paid in any month by a non-custodial parent of a child;

4 (B) Earned income of any child;

5 (C) Income received by a family member who is receiving supplemental security income

6 (SSI) assistance under Title XVI of the Social Security Act, 42 U.S.C. § 1381 et seq.;

7 (D) The value of assistance provided by state or federal government or private agencies to

8 meet nutritional needs, including: value of USDA donated foods; value of supplemental food

9 assistance received under the Child Nutrition Act of 1966, as amended and the special food service

10 program for children under Title VII, nutrition program for the elderly, of the Older Americans Act

11 of 1965 as amended, and the value of food stamps;

12 (E) Value of certain assistance provided to undergraduate students, including any grant or

13 loan for an undergraduate student for educational purposes made or insured under any loan program

14 administered by the U.S. Commissioner of Education (or the Rhode Island council on

15 postsecondary education or the Rhode Island division of higher education assistance);

16 (F) Foster Care Payments;

17 (G) Home energy assistance funded by state or federal government or by a nonprofit

18 organization;

19 (H) Payments for supportive services or reimbursement of out-of-pocket expenses made to

20 foster grandparents, senior health aides or senior companions and to persons serving in SCORE

21 and ACE and any other program under Title II and Title III of the Domestic Volunteer Service Act

22 of 1973, 42 U.S.C. § 5000 et seq.;

23 (I) Payments to volunteers under AmeriCorps VISTA as defined in the department's rules

24 and regulations;

25 (J) Certain payments to native Americans; payments distributed per capita to, or held in

26 trust for, members of any Indian Tribe under P.L. 92-254, 25 U.S.C. § 1261 et seq., P.L. 93-134,

27 25 U.S.C. § 1401 et seq., or P.L. 94-540; receipts distributed to members of certain Indian tribes

28 which are referred to in § 5 of P.L. 94-114, 25 U.S.C. § 459d, that became effective October 17,

29 1975;

30 (K) Refund from the federal and state earned income tax credit;

31 (L) The value of any state, local, or federal government rent or housing subsidy, provided

32 that this exclusion shall not limit the reduction in benefits provided for in the payment standard

33 section of this chapter.

1 accordance with rules and regulations promulgated by the department.

2 (h) Time limit on the receipt of cash assistance.

3 (1) No On or after January 1, 2020, no cash assistance shall be provided, pursuant to this

4 chapter, to a family or assistance unit which includes an adult member who has received cash

5 assistance, ~~either for him/herself or on behalf of his/her children,~~ for a total of ~~twenty-four (24)~~

6 forty-eight (48) months, (whether or not consecutive) ~~within any sixty (60) continuous months after~~

7 ~~July 1, 2008~~ to include any time receiving any type of cash assistance in any other state or territory

8 of the United States of America as defined herein. Provided further, in no circumstances other than

9 provided for in section (3) below with respect to certain minor children, shall cash assistance be

10 provided pursuant to this chapter to a family or assistance unit which includes an adult member

11 who has received cash assistance for a total of a lifetime limit of forty-eight (48) months.

12 (2) Cash benefits received by a minor dependent child shall not be counted toward their

13 lifetime time limit for receiving benefits under this chapter should that minor child apply for cash

14 benefits as an adult.

15 (3) Certain minor children not subject to time limit. This section regarding the lifetime time

16 limit for the receipt of cash assistance, shall not apply only in the instances of a minor child(ren)

17 living with a parent who receives SSI benefits and a minor child(ren) living with a responsible adult

18 non-parent caretaker relative who is not in the case assistance payment.

19 (4) Receipt of family cash assistance in any other state or territory of the United States of

20 America shall be determined by the department of human services and shall include family cash

21 assistance funded in whole or in part by Temporary Assistance for Needy Families (TANF) funds

22 [Title IV-A of the Federal Social Security Act 42 U.S.C. § 601 et seq.] and/or family cash assistance

23 provided under a program similar to the Rhode Island Families Work and Opportunity Program or

24 the federal TANF program.

25 (5)(A) The department of human service shall mail a notice to each assistance unit when

26 the assistance unit has six (6) months of cash assistance remaining and each month thereafter until

27 the time limit has expired. The notice must be developed by the department of human services and

28 must contain information about the lifetime time limit. the number of months the participant has

29 remaining, the hardship extension policy, the availability of a post-employment-and-closure bonus,

30 and any other information pertinent to a family or an assistance unit ~~nearing either the twenty-four~~

31 ~~(24) month or~~ nearing the forty-eight (48) month lifetime time limit.

32 (B) For applicants who have less than six (6) months remaining in ~~either the twenty-four~~

33 ~~(24) month or~~ the forty-eight (48) month lifetime time limit because the family or assistance unit

34 previously received cash assistance in Rhode Island or in another state, the department shall notify

1 the applicant of the number of months remaining when the application is approved and begin the

2 process required in paragraph (A) above.

3 (6) If a cash assistance recipient family closed pursuant to Rhode Island's Temporary

4 Assistance for Needy Families Program, (federal TANF described in Title IV A of the Federal

5 Social Security Act, 42 U.S.C. § 601 et seq.) formerly entitled the Rhode Island Family

6 Independence Program, more specifically under subdivision 40-5.1-9(2)(c), due to sanction

7 because of failure to comply with the cash assistance program requirements; and that recipients

8 family received forty-eight (48) months of cash benefits in accordance with the Family

9 Independence Program, than that recipient family is not able to receive further cash assistance for

10 his/her family, under this chapter, except under hardship exceptions.

11 (7) The months of state or federally funded cash assistance received by a recipient family

12 since May 1, 1997 under Rhode Island's Temporary Assistance for Needy Families Program,

13 (federal TANF described in Title IV A of the Federal Social Security Act, 42 U.S.C. § 601 et seq.)

14 formerly entitled the Rhode Island Family Independence Program, shall be countable toward the

15 time limited cash assistance described in this chapter.

16 (i) Time limit on the receipt of cash assistance.

17 (1)(A) No cash assistance shall be provided, pursuant to this chapter, to a family assistance

18 unit in which an adult member has received cash assistance for a total of sixty (60) months (whether

19 or not consecutive) to include any time receiving any type of cash assistance in any other state or

20 territory of the United States as defined herein effective August 1, 2008. Provided further, that no

21 cash assistance shall be provided to a family in which an adult member has received assistance for

22 twenty-four (24) consecutive months unless the adult member has a rehabilitation employment plan

23 as provided in subsection 40-5.2-12(g)(5).

24 (B) Effective August 1, 2008 no cash assistance shall be provided pursuant to this chapter

25 to a family in which a child has received cash assistance for a total of sixty (60) months (whether

26 or not consecutive) if the parent is ineligible for assistance under this chapter pursuant to

27 subdivision 40-5.2(a) (2) to include any time received any type of cash assistance in any other state

28 or territory of the United States as defined herein.

29 (j) Hardship Exceptions.

30 (1) The department may extend an assistance unit's or family's cash assistance beyond the

31 time limit, by reason of hardship; provided, however, that the number of such families to be

32 exempted by the department with respect to their time limit under this subsection shall not exceed

33 twenty percent (20%) of the average monthly number of families to which assistance is provided

34 for under this chapter in a fiscal year; provided, however, that to the extent now or hereafter

1 permitted by federal law, any waiver granted under § 40-5.2-35, for domestic violence, shall not be

2 counted in determining the twenty percent (20%) maximum under this section.

3 (2) Parents who receive extensions to the time limit due to hardship must have and comply

4 with employment plans designed to remove or ameliorate the conditions that warranted the

5 extension.

6 (k) Parents under eighteen (18) years of age.

7 (1) A family consisting of a parent who is under the age of eighteen (18), and who has

8 never been married, and who has a child; or a family which consists of a woman under the age of

9 eighteen (18) who is at least six (6) months pregnant, shall be eligible for cash assistance only if

10 such family resides in the home of an adult parent, legal guardian or other adult relative. Such

11 assistance shall be provided to the adult parent, legal guardian, or other adult relative on behalf of

12 the individual and child unless otherwise authorized by the department.

13 (2) This subsection shall not apply if the minor parent or pregnant minor has no parent,

14 legal guardian or other adult relative who is living and/or whose whereabouts are unknown; or the

15 department determines that the physical or emotional health or safety of the minor parent, or his or

16 her child, or the pregnant minor, would be jeopardized if he or she was required to live in the same

17 residence as his or her parent, legal guardian or other adult relative (refusal of a parent, legal

18 guardian or other adult relative to allow the minor parent or his or her child, or a pregnant minor,

19 to live in his or her home shall constitute a presumption that the health or safety would be so

20 jeopardized); or the minor parent or pregnant minor has lived apart from his or her own parent or

21 legal guardian for a period of at least one year before either the birth of any child to a minor parent

22 or the onset of the pregnant minor's pregnancy; or there is good cause, under departmental

23 regulations, for waiving the subsection; and the individual resides in supervised supportive living

24 arrangement to the extent available.

25 (3) For purposes of this section "supervised supportive living arrangement" means an

26 arrangement which requires minor parents to enroll and make satisfactory progress in a program

27 leading to a high school diploma or a general education development certificate, and requires minor

28 parents to participate in the adolescent parenting program designated by the department, to the

29 extent the program is available; and provides rules and regulations which ensure regular adult

30 supervision.

31 (l) Assignment and Cooperation. As a condition of eligibility for cash and medical

32 assistance under this chapter, each adult member, parent or caretaker relative of the

33 family/assistance unit must:

34 (1) Assign to the state any rights to support for children within the family from any person

1 which the family member has at the time the assignment is executed or may have while receiving

2 assistance under this chapter;

3 (2) Consent to and cooperate with the state in establishing the paternity and in establishing

4 and/or enforcing child support and medical support orders for all children in the family or assistance

5 unit in accordance with Title 15 of the general laws, as amended, unless the parent or caretaker

6 relative is found to have good cause for refusing to comply with the requirements of this subsection.

7 (3) Absent good cause, as defined by the department of human services through the rule

8 making process, for refusing to comply with the requirements of (1) and (2) above, cash assistance

9 to the family shall be reduced by twenty-five percent (25%) until the adult member of the family

10 who has refused to comply with the requirements of this subsection consents to and cooperates with

11 the state in accordance with the requirements of this subsection.

12 (4) As a condition of eligibility for cash and medical assistance under this chapter, each

13 adult member, parent or caretaker relative of the family/assistance unit must consent to and

14 cooperate with the state in identifying and providing information to assist the state in pursuing any

15 third-party who may be liable to pay for care and services under Title XIX of the Social Security

16 Act, 42 U.S.C. § 1396 et seq.

17 40-5.2-20. Child-care assistance.

18 Families or assistance units eligible for child-care assistance.

19 (a) The department shall provide appropriate child care to every participant who is eligible

20 for cash assistance and who requires child care in order to meet the work requirements in

21 accordance with this chapter.

22 (b) Low-income child care. The department shall provide child care to all other working

23 families with incomes at or below one hundred eighty percent (180%) of the federal poverty level

24 if, and to the extent, such other families require child care in order to work at paid employment as

25 defined in the department's rules and regulations. Beginning October 1, 2013, the department shall

26 also provide child care to families with incomes below one hundred eighty percent (180%) of the

27 federal poverty level if, and to the extent, such families require child care to participate on a short-

28 term basis, as defined in the department's rules and regulations, in training, apprenticeship,

29 internship, on-the-job training, work experience, work immersion, or other job-readiness/job-

30 attachment program sponsored or funded by the human resource investment council (governor's

31 workforce board) or state agencies that are part of the coordinated program system pursuant to §

32 42-102-11.

33 (c) No family/assistance unit shall be eligible for child-care assistance under this chapter if

34 the combined value of its liquid resources exceeds ~~ten thousand dollars ($10,000)~~ one million

1 dollars ($1,000,000), which corresponds to the amount permitted by the federal government under

2 the state plan and set forth in the administrative rule-making process by the department. Liquid

3 resources are defined as any interest(s) in property in the form of cash or other financial instruments

4 or accounts that are readily convertible to cash or cash equivalents. These include, but are not

5 limited to: cash, bank, credit union, or other financial institution savings, checking, and money

6 market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual funds; and

7 other similar financial instruments or accounts. These do not include educational savings accounts,

8 plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with another

9 adult, not including a spouse. The department is authorized to promulgate rules and regulations to

10 determine the ownership and source of the funds in the joint account.

11 (d) As a condition of eligibility for child-care assistance under this chapter, the parent or

12 caretaker relative of the family must consent to, and must cooperate with, the department in

13 establishing paternity, and in establishing and/or enforcing child support and medical support

14 orders for ~~all~~ any children in the family receiving appropriate child care under this section in

15 accordance with the applicable sections of title 15 of the state's general laws, as amended, unless

16 the parent or caretaker relative is found to have good cause for refusing to comply with the

17 requirements of this subsection.

18 (e) For purposes of this section, "appropriate child care" means child care, including infant,

19 toddler, pre-school, nursery school, school-age, that is provided by a person or organization

20 qualified, approved, and authorized to provide such care by ~~the department of children, youth and~~

21 ~~families, or by the department of elementary and secondary education, or such other lawful~~

22 ~~providers as determined by the department of human services, in cooperation with the department~~

23 ~~of children, youth and families and the department of elementary and secondary education~~ the state

24 agency or agencies designated to make such determinations in accordance with the provisions set

25 forth herein.

26 (f)(1) Families with incomes below one hundred percent (100%) of the applicable federal

27 poverty level guidelines shall be provided with free child care. Families with incomes greater than

28 one hundred percent (100%) and less than one hundred eighty percent (180%) of the applicable

29 federal poverty guideline shall be required to pay for some portion of the child care they receive,

30 according to a sliding-fee scale adopted by the department in the department's rules.

31 (2) Families who are receiving child-care assistance and who become ineligible for child-

32 care assistance as a result of their incomes exceeding one hundred eighty percent (180%) of the

33 applicable federal poverty guidelines shall continue to be eligible for child-care assistance until

34 their incomes exceed two hundred twenty-five percent (225%) of the applicable federal poverty

1 guidelines. To be eligible, such families must continue to pay for some portion of the child care

2 they receive, as indicated in a sliding-fee scale adopted in the department's rules and in accordance

3 with all other eligibility standards.

4 (g) In determining the type of child care to be provided to a family, the department shall

5 take into account the cost of available child-care options; the suitability of the type of care available

6 for the child; and the parent's preference as to the type of child care.

7 (h) For purposes of this section, "income" for families receiving cash assistance under §

8 40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in

9 §§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned and

10 unearned income as determined by departmental regulations.

11 (i) The caseload estimating conference established by chapter 17 of title 35 shall forecast

12 the expenditures for child care in accordance with the provisions of § 35-17-1.

13 (j) In determining eligibility for child-care assistance for children of members of reserve

14 components called to active duty during a time of conflict, the department shall freeze the family

15 composition and the family income of the reserve component member as it was in the month prior

16 to the month of leaving for active duty. This shall continue until the individual is officially

17 discharged from active duty.

18 SECTION 3. Sections 40-6-27 and 40-6-27.2 of the General Laws in Chapter 40-6 entitled

19 "Public Assistance Act" are hereby amended to read as follows:

20 40-6-27. Supplemental security income.

21 (a)(1) The director of the department is hereby authorized to enter into agreements on

22 behalf of the state with the secretary of the Department of Health and Human Services or other

23 appropriate federal officials, under the supplementary and security income (SSI) program

24 established by title XVI of the Social Security Act, 42 U.S.C. § 1381 et seq., concerning the

25 administration and determination of eligibility for SSI benefits for residents of this state, except as

26 otherwise provided in this section. The state's monthly share of supplementary assistance to the

27 supplementary security income program shall be as follows:

28 (i) Individual living alone: $39.92

29 (ii) Individual living with others: $51.92

30 (iii) Couple living alone: $79.38

31 (iv) Couple living with others: $97.30

32 (v) Individual living in state licensed assisted living residence: $332.00

33 (vi) Individual eligible to receive Medicaid-funded long-term services and supports and

34 living in a Medicaid certified state licensed assisted living residence or adult supportive care

1 residence, as defined in § 23-17.24-1, participating in the program authorized under § 40-8.13-12

2 or an alternative, successor, or substitute program or delivery option designated for such purposes

3 by the secretary of the executive office of health and human services:

4 (a) with countable income above one hundred and twenty (120) percent of poverty: up to

5 $465.00;

6 (b) with countable income at or below one hundred and twenty (120) percent of poverty:

7 up to the total amount established in (v) and $465: $797

8 (vii) Individual living in state licensed supportive residential care settings that, depending

9 on the population served, meet the standards set by the department of human services in conjunction

10 with the department(s) of children, youth and families, elderly affairs and/or behavioral healthcare,

11 developmental disabilities and hospitals: $300.00.

12 Provided, however, that the department of human services shall by regulation reduce,

13 effective January 1, 2009, the state's monthly share of supplementary assistance to the

14 supplementary security income program for each of the above listed payment levels, by the same

15 value as the annual federal cost of living adjustment to be published by the federal social security

16 administration in October 2008 and becoming effective on January 1, 2009, as determined under

17 the provisions of title XVI of the federal social security act [42 U.S.C. § 1381 et seq.]; and provided

18 further, that it is the intent of the general assembly that the January 1, 2009 reduction in the state's

19 monthly share shall not cause a reduction in the combined federal and state payment level for each

20 category of recipients in effect in the month of December 2008; provided further, that the

21 department of human services is authorized and directed to provide for payments to recipients in

22 accordance with the above directives.

23 (2) As of July 1, 2010, state supplement payments shall not be federally administered and

24 shall be paid directly by the department of human services to the recipient.

25 (3) Individuals living in institutions shall receive a twenty dollar ($20.00) per month

26 personal needs allowance from the state which shall be in addition to the personal needs allowance

27 allowed by the Social Security Act, 42 U.S.C. § 301 et seq.

28 (4) Individuals living in state licensed supportive residential care settings and assisted

29 living residences who are receiving SSI supplemental payments under this section who are

30 participating in the program under § 40-8.13-12 or an alternative, successor, or substitute program

31 or delivery option, or otherwise shall be allowed to retain a minimum personal needs allowance of

32 fifty-five dollars ($55.00) per month from their SSI monthly benefit prior to payment of any

33 monthly fees in addition to any amounts established in an administrative rule promulgated by the

34 secretary of the executive office of health and human services for persons eligible to receive

1 Medicaid-funded long-term services and supports in the settings identified in subsection (a)(1)(v)

2 and (a)(1)(vi).

3 (5) Except as authorized for the program authorized under § 40-8.13-12 or an alternative,

4 successor, or substitute program, or delivery option designated by the secretary to ensure that

5 supportive residential care or an assisted living residence is a safe and appropriate service setting,

6 the department is authorized and directed to make a determination of the medical need and whether

7 a setting provides the appropriate services for those persons who: (i) Have applied for or are

8 receiving SSI, and who apply for admission to supportive residential care setting and assisted living

9 residences on or after October 1, 1998; or

10 (ii) Who are residing in supportive residential care settings and assisted living residences,

11 and who apply for or begin to receive SSI on or after October 1, 1998.

12 (6) The process for determining medical need required by subsection (5) of this section

13 shall be developed by the executive office of health and human services in collaboration with the

14 departments of that office and shall be implemented in a manner that furthers the goals of

15 establishing a statewide coordinated long-term care entry system as required pursuant to the

16 Medicaid section 1115 waiver demonstration.

17 (7) To assure access to high quality coordinated services, the executive office of health and

18 human services is further authorized and directed to establish certification or contract standards

19 that must be met by those state licensed supportive residential care settings, including adult

20 supportive care homes and assisted living residences admitting or serving any persons eligible for

21 state-funded supplementary assistance under this section or the program established under § 40-

22 8.13-12. Such certification or contract standards shall define:

23 (i) The scope and frequency of resident assessments, the development and implementation

24 of individualized service plans, staffing levels and qualifications, resident monitoring, service

25 coordination, safety risk management and disclosure, and any other related areas;

26 (ii) The procedures for determining whether the certifications or contract standards have

27 been met; and

28 (iii) The criteria and process for granting a one time, short-term good cause exemption

29 from the certification or contract standards to a licensed supportive residential care setting or

30 assisted living residence that provides documented evidence indicating that meeting or failing to

31 meet said standards poses an undue hardship on any person eligible under this section who is a

32 prospective or current resident.

33 (8) The certification or contract standards required by this section or § 40-8.13-12 or an

34 alternative, successor, or substitute program, or delivery option designated by the secretary shall

1 be developed in collaboration by the departments, under the direction of the executive office of

2 health and human services, so as to ensure that they comply with applicable licensure regulations

3 either in effect or in development.

4 (b) The department is authorized and directed to provide additional assistance to

5 individuals eligible for SSI benefits for:

6 (1) Moving costs or other expenses as a result of an emergency of a catastrophic nature

7 which is defined as a fire or natural disaster; and

8 (2) Lost or stolen SSI benefit checks or proceeds of them; and

9 (3) Assistance payments to SSI eligible individuals in need because of the application of

10 federal SSI regulations regarding estranged spouses; and the department shall provide such

11 assistance in a form and amount, which the department shall by regulation determine.

12 40-6-27.2. Supplementary cash assistance payment for certain supplemental security

13 income recipients.

14 There is hereby established a $206 monthly payment for disabled and elderly individuals

15 who, on or after July 1, 2012, receive the state supplementary assistance payment for an individual

16 in state licensed assisted living residence under § 40-6-27 and further reside in an assisted living

17 facility that is not eligible to receive funding under Title XIX of the Social Security Act, 42 U.S.C.

18 § 1381 et seq. or reside in any assisted living facility financed by the Rhode Island housing and

19 mortgage finance corporation prior to January 1, 2006, and receive a payment under § 40-6-27.

20 Such a monthly payment shall not be made on behalf of persons participating in the program

21 authorized under § 40-8.13-12 or an alternative, successor, or substitute program, or delivery option

22 designated for such purposes by the secretary of the executive office of health and human services.

23 SECTION 4. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child

24 Care - State Subsidies" is hereby amended to read as follows:

25 40-6.2-1.1. Rates established.

26 (a) Through June 30, 2015, subject to the payment limitations in subsection (c), the

27 maximum reimbursement rates to be paid by the departments of human services and children, youth

28 and families for licensed childcare centers and licensed family-childcare providers shall be based

29 on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted for the

30 average of the 75th percentile of the 2002 and the 2004 weekly market rates:

31 LICENSED CHILDCARE CENTERS 75th PERCENTILE OF WEEKLY

32 MARKET RATE

33 INFANT $182.00

34 PRESCHOOL $150.00

1 SCHOOL-AGE $135.00

2 LICENSED FAMILY CHILDCARE 75th PERCENTILE OF WEEKLY

3 PROVIDERS MARKET RATE

4 INFANT $150.00

5 PRESCHOOL $150.00

6 SCHOOL-AGE $135.00

7 Effective July 1, 2015, subject to the payment limitations in subsection (c), the maximum

8 reimbursement rates to be paid by the departments of human services and children, youth and

9 families for licensed childcare centers and licensed family-childcare providers shall be based on

10 the above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the average

11 of the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be increased

12 by ten dollars ($10.00) per week for infant/toddler care provided by licensed family-childcare

13 providers and license-exempt providers and then the rates for all providers for all age groups shall

14 be increased by three percent (3%). For the fiscal year ending June 30, 2018, licensed childcare

15 centers shall be reimbursed a maximum weekly rate of one hundred ninety-three dollars and sixty-

16 four cents ($193.64) for infant/toddler care and one hundred sixty-one dollars and seventy-one

17 cents ($161.71) for preschool-age children.

18 (b) Effective July l, 2018, subject to the payment limitations in subsection (c), the

19 maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of

20 human services and children, youth and families for licensed childcare centers shall be

21 implemented in a tiered manner, reflective of the quality rating the provider has achieved within

22 the state's quality rating system outlined in § 42-12-23.1.

23 (1) For infant/toddler childcare, tier one shall be reimbursed two and one-half percent

24 (2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above

25 the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY

26 2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018 weekly

27 amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018 weekly

28 amount.

29 (2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half

30 (2.5%) percent above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)

31 above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY

32 2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018

33 weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018

34 weekly amount.

1 ~~(c) The departments shall pay childcare providers based on the lesser of the applicable rate~~

2 ~~specified in subsection (a), or the lowest rate actually charged by the provider to any of its public~~

3 ~~or private childcare customers with respect to each of the rate categories, infant, preschool and~~

4 ~~school-age.~~

5 ~~(d)~~(c) By June 30, 2004, and biennially through June 30, 2014, the department of labor and

6 training shall conduct an independent survey or certify an independent survey of the then current

7 weekly market rates for childcare in Rhode Island and shall forward such weekly market rate survey

8 to the department of human services. The next survey shall be conducted by June 30, 2016, and

9 triennially thereafter. The departments of human services and labor and training will jointly

10 determine the survey criteria including, but not limited to, rate categories and sub-categories.

11 ~~(e)~~(d) In order to expand the accessibility and availability of quality childcare, the

12 department of human services is authorized to establish by regulation alternative or incentive rates

13 of reimbursement for quality enhancements, innovative or specialized childcare and alternative

14 methodologies of childcare delivery, including non-traditional delivery systems and collaborations.

15 ~~(f)~~(e) Effective January 1, 2007, all childcare providers have the option to be paid every

16 two (2) weeks and have the option of automatic direct deposit and/or electronic funds transfer of

17 reimbursement payments.

18 (f) Effective July 1, 2019, the maximum infant/toddler reimbursement rates to be paid by

19 the departments of human services and children, youth and families for licensed family childcare

20 providers shall be implemented in a tiered manner, reflective of the quality rating the provider has

21 achieved within the state's quality rating system outlined in § 42-12-23.1. Tier one shall be

22 reimbursed two percent (2%) above the prevailing base rate for step 1 and step 2 providers, three

23 percent (3%) above prevailing base rate for step 3 providers, and four percent (4%) above the

24 prevailing base rate for step 4 providers; tier two shall be reimbursed five percent (5%) above the

25 prevailing base rate; tier three shall be reimbursed eleven percent (11%) above the prevailing base

26 rate; tier four shall be reimbursed fourteen percent (14%) above the prevailing base rate; and tier

27 five shall be reimbursed twenty-three percent (23%) above the prevailing base rate.

28 SECTION 5. Sections 40-8-13.4 and 40-8-19 of the General Laws in Chapter 40-8 entitled

29 "Medical Assistance" are hereby amended to read as follows:

30 40-8-13.4. Rate methodology for payment for in state and out of state hospital

31 services.

32 (a) The executive office of health and human services ("executive office") shall implement

33 a new methodology for payment for in-state and out-of-state hospital services in order to ensure

1 (b) In order to improve efficiency and cost effectiveness, the executive office shall:

2 (1)(i) With respect to inpatient services for persons in fee-for-service Medicaid, which is

3 non-managed care, implement a new payment methodology for inpatient services utilizing the

4 Diagnosis Related Groups (DRG) method of payment, which is a patient-classification method that

5 provides a means of relating payment to the hospitals to the type of patients cared for by the

6 hospitals. It is understood that a payment method based on DRG may include cost outlier payments

7 and other specific exceptions. The executive office will review the DRG-payment method and the

8 DRG base price annually, making adjustments as appropriate in consideration of such elements as

9 trends in hospital input costs; patterns in hospital coding; beneficiary access to care; and the Centers

10 for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital

11 Input Price index. For the twelve-month (12) period beginning July 1, 2015, the DRG base rate for

12 Medicaid fee-for-service inpatient hospital services shall not exceed ninety-seven and one-half

13 percent (97.5%) of the payment rates in effect as of July 1, 2014. Beginning July 1, 2019, the DRG

14 base rate for Medicaid fee-for-service inpatient hospital services shall be 107.2% of the payment

15 rates in effect as of July 1, 2018. Increases in the Medicaid fee-for-service DRG hospital payments

16 for the twelve-month (12) period beginning July 1, 2020 shall be based on the payment rates in

17 effect as of July 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid

18 Services national Prospective Payment System (IPPS) Hospital Input Price Index.

19 (ii) With respect to inpatient services, (A) It is required as of January 1, 2011 until

20 December 31, 2011, that the Medicaid managed care payment rates between each hospital and

21 health plan shall not exceed ninety and one tenth percent (90.1%) of the rate in effect as of June 30,

22 2010. Increases in inpatient hospital payments for each annual twelve-month (12) period beginning

23 January 1, 2012 may not exceed the Centers for Medicare and Medicaid Services national CMS

24 Prospective Payment System (IPPS) Hospital Input Price index for the applicable period; (B)

25 Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the Medicaid

26 managed care payment rates between each hospital and health plan shall not exceed the payment

27 rates in effect as of January 1, 2013, and for the twelve-month (12) period beginning July 1, 2015,

28 the Medicaid managed-care payment inpatient rates between each hospital and health plan shall not

29 exceed ninety-seven and one-half percent (97.5%) of the payment rates in effect as of January 1,

30 2013; (C) Increases in inpatient hospital payments for each annual twelve-month (12) period

31 beginning July 1, 2017, shall be the Centers for Medicare and Medicaid Services national CMS

32 Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for

33 the applicable period and shall be paid to each hospital retroactively to July 1; (D) Beginning July

1 shall be 107.2% of the payment rates in effect as of January 1, 2019 and shall be paid to each

2 hospital retroactively to July 1; (E) Increases in inpatient hospital payments for each annual twelve-

3 month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as of

4 January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services

5 national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity

6 Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1. The

7 executive office will develop an audit methodology and process to assure that savings associated

8 with the payment reductions will accrue directly to the Rhode Island Medicaid program through

9 reduced managed-care-plan payments and shall not be retained by the managed-care plans; (E) All

10 hospitals licensed in Rhode Island shall accept such payment rates as payment in full; and (F) For

11 all such hospitals, compliance with the provisions of this section shall be a condition of

12 participation in the Rhode Island Medicaid program.

13 (2) With respect to outpatient services and notwithstanding any provisions of the law to the

14 contrary, for persons enrolled in fee-for-service Medicaid, the executive office will reimburse

15 hospitals for outpatient services using a rate methodology determined by the executive office and

16 in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare

17 payments for similar services. Notwithstanding the above, there shall be no increase in the

18 Medicaid fee-for-service outpatient rates effective on July 1, 2013, July 1, 2014, or July 1, 2015.

19 For the twelve-month (12) period beginning July 1, 2015, Medicaid fee-for-service outpatient rates

20 shall not exceed ninety-seven and one-half percent (97.5%) of the rates in effect as of July 1, 2014.

21 Increases in the outpatient hospital payments for the twelve-month (12) period beginning July 1,

22 2016, may not exceed the CMS national Outpatient Prospective Payment System (OPPS) Hospital

23 Input Price Index. Beginning July 1, 2019, the Medicaid fee-for-service outpatient rates shall be

24 107.2% of the payment rates in effect as of July 1, 2018. Increases in the outpatient hospital

25 payments for the twelve-month (12) period beginning July 1, 2020 shall be based on the payment

26 rates in effect as of July 1 of the preceding fiscal year, and shall be the CMS national Outpatient

27 Prospective Payment System (OPPS) Hospital Input Price Index. With respect to the outpatient

28 rate, (i) It is required as of January 1, 2011, until December 31, 2011, that the Medicaid managed-

29 care payment rates between each hospital and health plan shall not exceed one hundred percent

30 (100%) of the rate in effect as of June 30, 2010; (ii) Increases in hospital outpatient payments for

31 each annual twelve-month (12) period beginning January 1, 2012 until July 1, 2017, may not exceed

32 the Centers for Medicare and Medicaid Services national CMS Outpatient Prospective Payment

33 System OPPS hospital price index for the applicable period; (iii) Provided, however, for the twenty-

1 rates between each hospital and health plan shall not exceed the payment rates in effect as of

2 January 1, 2013, and for the twelve-month (12) period beginning July 1, 2015, the Medicaid

3 managed-care outpatient payment rates between each hospital and health plan shall not exceed

4 ninety-seven and one-half percent (97.5%) of the payment rates in effect as of January 1, 2013; (iv)

5 Increases in outpatient hospital payments for each annual twelve-month (12) period beginning July

6 1, 2017, shall be the Centers for Medicare and Medicaid Services national CMS OPPS Hospital

7 Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each

8 hospital retroactively to July 1. Beginning July 1, 2019, the Medicaid managed care outpatient

9 payment rates between each hospital and health plan shall be one hundred seven and two-tenths

10 percent (107.2%) of the payment rates in effect as of January 1, 2019 and shall be paid to each

11 hospital retroactively to July 1; (vi) Increases in outpatient hospital payments for each annual

12 twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as

13 of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid

14 Services national CMS OPPS Hospital Input Price Index, less Productivity Adjustment, for

15 the applicable period and shall be paid to each hospital retroactively to July 1.

16 (3) "Hospital", as used in this section, shall mean the actual facilities and buildings in

17 existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter

18 any premises included on that license, regardless of changes in licensure status pursuant to chapter

19 17.14 of title 23 (hospital conversions) and § 23-17-6(b) (change in effective control), that provides

20 short-term, acute inpatient and/or outpatient care to persons who require definitive diagnosis and

21 treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language,

22 the Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital

23 through receivership, special mastership or other similar state insolvency proceedings (which court-

24 approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the new

25 rates between the court-approved purchaser and the health plan, and such rates shall be effective as

26 of the date that the court-approved purchaser and the health plan execute the initial agreement

27 containing the new rates. The rate-setting methodology for inpatient-hospital payments and

28 outpatient-hospital payments set forth in subdivisions (b)(1)(ii)(C) and (b)(2), respectively, shall

29 thereafter apply to increases for each annual twelve-month (12) period as of July 1 following the

30 completion of the first full year of the court-approved purchaser's initial Medicaid managed care

31 contract.

32 (c) It is intended that payment utilizing the DRG method shall reward hospitals for

1 (d) The secretary of the executive office is hereby authorized to promulgate such rules and

2 regulations consistent with this chapter, and to establish fiscal procedures he or she deems

3 necessary, for the proper implementation and administration of this chapter in order to provide

4 payment to hospitals using the DRG-payment methodology. Furthermore, amendment of the Rhode

5 Island state plan for Medicaid, pursuant to Title XIX of the federal Social Security Act, is hereby

6 authorized to provide for payment to hospitals for services provided to eligible recipients in

7 accordance with this chapter.

8 (e) The executive office shall comply with all public notice requirements necessary to

9 implement these rate changes.

10 (f) As a condition of participation in the DRG methodology for payment of hospital

11 services, every hospital shall submit year-end settlement reports to the executive office within one

12 year from the close of a hospital's fiscal year. Should a participating hospital fail to timely submit

13 a year-end settlement report as required by this section, the executive office shall withhold

14 financial-cycle payments due by any state agency with respect to this hospital by not more than ten

15 percent (10%) until said report is submitted. For hospital fiscal year 2010 and all subsequent fiscal

16 years, hospitals will not be required to submit year-end settlement reports on payments for

17 outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not

18 be required to submit year-end settlement reports on claims for hospital inpatient services. Further,

19 for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include only those

20 claims received between October 1, 2009, and June 30, 2010.

21 (g) The provisions of this section shall be effective upon implementation of the new

22 payment methodology set forth in this section and § 40-8-13.3, which shall in any event be no later

23 than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-19-14, 27-19-15, and 27-

24 19-16 shall be repealed in their entirety.

25 40-8-19. Rates of payment to nursing facilities.

26 (a) Rate reform.

27 (1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of

28 title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to

29 Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be

30 incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. §

31 1396a(a)(13). The executive office of health and human services ("executive office") shall

32 promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1,

1 (2) The executive office shall review the current methodology for providing Medicaid

2 payments to nursing facilities, including other long-term-care services providers, and is authorized

3 to modify the principles of reimbursement to replace the current cost-based methodology rates with

4 rates based on a price-based methodology to be paid to all facilities with recognition of the acuity

5 of patients and the relative Medicaid occupancy, and to include the following elements to be

6 developed by the executive office:

7 (i) A direct-care rate adjusted for resident acuity;

8 (ii) An indirect-care rate comprised of a base per diem for all facilities;

9 (iii) A rearray of costs for all facilities every three (3) years beginning October, 2015, that

10 may or may not result in automatic per diem revisions;

11 (iv) Application of a fair-rental value system;

12 (v) Application of a pass-through system; and

13 (vi) Adjustment of rates by the change in a recognized national nursing home inflation

14 index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will not

15 occur on October 1, 2013, October 1, 2014 or October 1, 2015, but will occur on April 1, 2015.

16 The adjustment of rates will also not occur on October 1, 2017, or October 1, 2018 and October 1,

17 2019. Effective July 1, 2018, rates paid to nursing facilities from the rates approved by the Centers

18 for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-for-service and

19 managed care, will be increased by one and one-half percent (1.5%) and further increased by one

20 percent (1%) on October 1, 2018, and further increased by one percent (1%) on October 1, 2019.

21 Said inflation index shall be applied without regard for the transition factors in subsections (b)(1)

22 and (b)(2). For purposes of October 1, 2016, adjustment only, any rate increase that results from

23 application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) shall be dedicated to increase

24 compensation for direct-care workers in the following manner: Not less than 85% of this aggregate

25 amount shall be expended to fund an increase in wages, benefits, or related employer costs of direct-

26 care staff of nursing homes. For purposes of this section, direct-care staff shall include registered

27 nurses (RNs), licensed practical nurses (LPNs), certified nursing assistants (CNAs), certified

28 medical technicians, housekeeping staff, laundry staff, dietary staff, or other similar employees

29 providing direct care services; provided, however, that this definition of direct-care staff shall not

30 include: (i) RNs and LPNs who are classified as "exempt employees" under the Federal Fair Labor

31 Standards Act (29 U.S.C. § 201 et seq.); or (ii) CNAs, certified medical technicians, RNs, or LPNs

32 who are contracted, or subcontracted, through a third-party vendor or staffing agency. By July 31,

1 on October 1, 2016. Any facility that does not comply with terms of such certification shall be

2 subjected to a clawback, paid by the nursing facility to the state, in the amount of increased

3 reimbursement subject to this provision that was not expended in compliance with that certification.

4 (b) Transition to full implementation of rate reform. For no less than four (4) years after

5 the initial application of the price-based methodology described in subsection (a)(2) to payment

6 rates, the executive office of health and human services shall implement a transition plan to

7 moderate the impact of the rate reform on individual nursing facilities. Said transition shall include

8 the following components:

9 (1) No nursing facility shall receive reimbursement for direct-care costs that is less than

10 the rate of reimbursement for direct-care costs received under the methodology in effect at the time

11 of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-care

12 costs under this provision will be phased out in twenty-five-percent (25%) increments each year

13 until October 1, 2021, when the reimbursement will no longer be in effect; and

14 (2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate the

15 first year of the transition. An adjustment to the per diem loss or gain may be phased out by twenty-

16 five percent (25%) each year; except, however, for the years beginning October 1, 2015, there shall

17 be no adjustment to the per diem gain or loss, but the phase out shall resume thereafter; and

18 (3) The transition plan and/or period may be modified upon full implementation of facility

19 per diem rate increases for quality of care-related measures. Said modifications shall be submitted

20 in a report to the general assembly at least six (6) months prior to implementation.

21 (4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning

22 July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section shall

23 not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent with the

24 other provisions of this chapter, nothing in this provision shall require the executive office to restore

25 the rates to those in effect on April 1, 2015, at the end of this twelve-month (12) period.

26 SECTION 6. Sections 40-8.3-2, 40-8.3-3 and 40-8.3-10 of the General Laws in Chapter

27 40-8.3 entitled "Uncompensated Care" are hereby amended to read as follows:

28 40-8.3-2. Definitions.

29 As used in this chapter:

30 (1) "Base year" means, for the purpose of calculating a disproportionate share payment for

31 any fiscal year ending after September 30, ~~2017~~ 2018, the period from October 1, ~~2015~~ 2016,

32 through September 30, ~~2016~~ 2017, and for any fiscal year ending after September 30, ~~2018~~ 2019,

1 percentage), the numerator of which is the hospital's number of inpatient days during the base year

2 attributable to patients who were eligible for medical assistance during the base year and the

3 denominator of which is the total number of the hospital's inpatient days in the base year.

4 (3) "Participating hospital" means any nongovernment and nonpsychiatric hospital that:

5 (i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year

6 and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to

7 § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless

8 of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23-

9 17-6(b) (change in effective control), that provides short-term, acute inpatient and/or outpatient

10 care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or

11 pregnancy. Notwithstanding the preceding language, the negotiated Medicaid managed-care

12 payment rates for a court-approved purchaser that acquires a hospital through receivership, special

13 mastership, or other similar state insolvency proceedings (which court-approved purchaser is issued

14 a hospital license after January 1, 2013) shall be based upon the newly negotiated rates between

15 the court-approved purchaser and the health plan, and such rates shall be effective as of the date

16 that the court-approved purchaser and the health plan execute the initial agreement containing the

17 newly negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient

18 hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall

19 thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1

20 following the completion of the first full year of the court-approved purchaser's initial Medicaid

21 managed-care contract;

22 (ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)

23 during the base year; and

24 (iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during

25 the payment year.

26 (4) "Uncompensated-care costs" means, as to any hospital, the sum of: (i) The cost incurred

27 by such hospital during the base year for inpatient or outpatient services attributable to charity care

28 (free care and bad debts) for which the patient has no health insurance or other third-party coverage

29 less payments, if any, received directly from such patients; and (ii) The cost incurred by such

30 hospital during the base year for inpatient or out-patient services attributable to Medicaid

31 beneficiaries less any Medicaid reimbursement received therefor; multiplied by the uncompensated

32 care index.

33 (5) "Uncompensated-care index" means the annual percentage increase for hospitals

1 year; provided, however, that the uncompensated-care index for the payment year ending

2 September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%), and

3 that the uncompensated-care index for the payment year ending September 30, 2008, shall be

4 deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care

5 index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight

6 hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending

7 September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September

8 30, 2014, September 30, 2015, September 30, 2016, September 30, 2017, ~~and~~ September 30, 2018,

9 September 30, 2019, and September 30, 2020 shall be deemed to be five and thirty hundredths

10 percent (5.30%).

11 40-8.3-3. Implementation.

12 ~~(a) For federal fiscal year 2017, commencing on October 1, 2016, and ending September~~

13 ~~30, 2017, the executive office of health and human services shall submit to the Secretary of the~~

14 ~~U.S. Department of Health and Human Services a state plan amendment to the Rhode Island~~

15 ~~Medicaid DSH Plan to provide:~~

16 ~~(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of~~

17 ~~$139.7 million, shall be allocated by the executive office of health and human services to the Pool~~

18 ~~D component of the DSH Plan; and~~

19 ~~(2) That the Pool D allotment shall be distributed among the participating hospitals in direct~~

20 ~~proportion to the individual, participating hospital's uncompensated-care costs for the base year,~~

21 ~~inflated by the uncompensated-care index to the total uncompensated-care costs for the base year~~

22 ~~inflated by uncompensated-care index for all participating hospitals. The disproportionate-share~~

23 ~~payments shall be made on or before July 11, 2017, and are expressly conditioned upon approval~~

24 ~~on or before July 5, 2017, by the Secretary of the U.S. Department of Health and Human Services,~~

25 ~~or his or her authorized representative, of all Medicaid state plan amendments necessary to secure~~

26 ~~for the state the benefit of federal financial participation in federal fiscal year 2017 for the~~

27 ~~disproportionate share payments.~~

28 ~~(b)~~(a) For federal fiscal year 2018, commencing on October 1, 2017, and ending September

29 30, 2018, the executive office of health and human services shall submit to the Secretary of the

30 U.S. Department of Health and Human Services a state plan amendment to the Rhode Island

31 Medicaid DSH Plan to provide:

32 (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

33 $138.6 million, shall be allocated by the executive office of health and human services to the Pool

34 D component of the DSH Plan; and

1 (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

2 proportion to the individual participating hospital's uncompensated care costs for the base year,

3 inflated by the uncompensated care index to the total uncompensated care costs for the base year

4 inflated by uncompensated care index for all participating hospitals. The disproportionate share

5 payments shall be made on or before July 10, 2018, and are expressly conditioned upon approval

6 on or before July 5, 2018, by the Secretary of the U.S. Department of Health and Human Services,

7 or his or her authorized representative, of all Medicaid state plan amendments necessary to secure

8 for the state the benefit of federal financial participation in federal fiscal year 2018 for the

9 disproportionate share payments.

10 ~~(c)~~(b) For federal fiscal year 2019, commencing on October 1, 2018, and ending September

11 30, 2019, the executive office of health and human services shall submit to the Secretary of the

12 U.S. Department of Health and Human Services a state plan amendment to the Rhode Island

13 Medicaid DSH Plan to provide:

14 (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

15 ~~$139.7~~ $142.4 million, shall be allocated by the executive office of health and human services to

16 the Pool D component of the DSH Plan; and

17 (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

18 proportion to the individual participating hospital's uncompensated care costs for the base year,

19 inflated by the uncompensated care index to the total uncompensated care costs for the base year

20 inflated by uncompensated care index for all participating hospitals. The disproportionate share

21 payments shall be made on or before July 10, 2019, and are expressly conditioned upon approval

22 on or before July 5, 2019, by the Secretary of the U.S. Department of Health and Human Services,

23 or his or her authorized representative, of all Medicaid state plan amendments necessary to secure

24 for the state the benefit of federal financial participation in federal fiscal year ~~2018~~ 2019 for the

25 disproportionate share payments.

26 (c) For federal fiscal year 2020, commencing on October 1, 2019, and ending September

27 30, 2020, the executive office of health and human services shall submit to the Secretary of the

28 U.S. Department of Health and Human Services a state plan amendment to the Rhode Island

29 Medicaid DSH Plan to provide:

30 (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

31 $142.4 million, shall be allocated by the executive office of health and human services to the Pool

32 D component of the DSH Plan; and

33 (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

34 proportion to the individual participating hospital's uncompensated care costs for the base year,

1 inflated by the uncompensated care index to the total uncompensated care costs for the base year

2 inflated by uncompensated care index for all participating hospitals. The disproportionate share

3 payments shall be made on or before July 13, 2020, and are expressly conditioned upon approval

4 on or before July 6, 2020, by the Secretary of the U.S. Department of Health and Human Services,

5 or his or her authorized representative, of all Medicaid state plan amendments necessary to secure

6 for the state the benefit of federal financial participation in federal fiscal year 2020 for the

7 disproportionate share payments.

8 (d) No provision is made pursuant to this chapter for disproportionate-share hospital

9 payments to participating hospitals for uncompensated-care costs related to graduate medical

10 education programs.

11 (e) The executive office of health and human services is directed, on at least a monthly

12 basis, to collect patient-level uninsured information, including, but not limited to, demographics,

13 services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island.

14 ~~(f) Beginning with federal FY 2016, Pool D DSH payments will be recalculated by the~~

15 ~~state based on actual hospital experience. The final Pool D payments will be based on the data from~~

16 ~~the final DSH audit for each federal fiscal year. Pool D DSH payments will be redistributed among~~

17 ~~the qualifying hospitals in direct proportion to the individual, qualifying hospital's uncompensated-~~

18 ~~care to the total uncompensated-care costs for all qualifying hospitals as determined by the DSH~~

19 ~~audit. No hospital will receive an allocation that would incur funds received in excess of audited~~

20 ~~uncompensated-care costs.~~

21 40-8.3-10. Hospital adjustment payments.

22 Effective July 1, 2012 and for each subsequent year, the executive office of health and

23 human services is hereby authorized and directed to amend its regulations for reimbursement to

24 hospitals for ~~inpatient and~~ outpatient services as follows:

25 (a) Each hospital in the state of Rhode Island, as defined in subdivision 23-17-38.1(c)(1),

26 shall receive a quarterly outpatient adjustment payment each state fiscal year of an amount

27 determined as follows:

28 (1) Determine the percent of the state's total Medicaid outpatient and emergency

29 department services (exclusive of physician services) provided by each hospital during each

30 hospital's prior fiscal year;

31 (2) Determine the sum of all Medicaid payments to hospitals made for outpatient and

32 emergency department services (exclusive of physician services) provided during each hospital's

33 prior fiscal year;

34 (3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a

1 percentage defined as the total identified upper payment limit for all hospitals divided by the sum

2 of all Medicaid payments as determined in subdivision (2); and then multiply that result by each

3 hospital's percentage of the state's total Medicaid outpatient and emergency department services as

4 determined in subdivision (1) to obtain the total outpatient adjustment for each hospital to be paid

5 each year;

6 (4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one quarter

7 (1/4) of its total outpatient adjustment as determined in subdivision (3) above.

8 ~~(b) Each hospital in the state of Rhode Island, as defined in subdivision 3-17-38.19(b)(1),~~

9 ~~shall receive a quarterly inpatient adjustment payment each state fiscal year of an amount~~

10 ~~determined as follows:~~

11 ~~(1) Determine the percent of the state's total Medicaid inpatient services (exclusive of~~

12 ~~physician services) provided by each hospital during each hospital's prior fiscal year;~~

13 ~~(2) Determine the sum of all Medicaid payments to hospitals made for inpatient services~~

14 ~~(exclusive of physician services) provided during each hospital's prior fiscal year;~~

15 ~~(3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a~~

16 ~~percentage defined as the total identified upper payment limit for all hospitals divided by the sum~~

17 ~~of all Medicaid payments as determined in subdivision (2); and then multiply that result by each~~

18 ~~hospital's percentage of the state's total Medicaid inpatient services as determined in subdivision~~

19 ~~(1) to obtain the total inpatient adjustment for each hospital to be paid each year;~~

20 ~~(4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one quarter~~

21 ~~(1/4) of its total inpatient adjustment as determined in subdivision (3) above.~~

22 ~~(c)~~(b) The amounts determined in subsections (a) ~~and (b)~~ are in addition to Medicaid

23 ~~inpatient and~~ outpatient payments and emergency services payments (exclusive of physician

24 services) paid to hospitals in accordance with current state regulation and the Rhode Island Plan

25 for Medicaid Assistance pursuant to Title XIX of the Social Security Act and are not subject to

26 recoupment or settlement.

27 SECTION 7. Section 40-8.4-12 of the General Laws in Chapter 40-8.4 entitled "Health

28 Care For Families" is hereby amended to read as follows:

29 40-8.4-12. RIte Share Health Insurance Premium Assistance Program.

30 (a) Basic RIte Share Health Insurance Premium Assistance Program. Under the terms of

31 Section 1906 of Title XIX of the U.S. Social Security Act, 42 U.S.C. § 1396e, states are permitted

32 to pay a Medicaid eligible person's share of the costs for enrolling in employer-sponsored health

33 insurance (ESI) coverage if it is cost effective to do so. Pursuant to the general assembly's direction

34 in the Rhode Island Health Reform Act of 2000, the Medicaid agency requested and obtained

1 federal approval under § 1916, 42 U.S.C. § 1396o, to establish the RIte Share premium assistance

2 program to subsidize the costs of enrolling Medicaid eligible persons and families in employer

3 sponsored health insurance plans that have been approved as meeting certain cost and coverage

4 requirements. The Medicaid agency also obtained, at the general assembly's direction, federal

5 authority to require any such persons with access to ESI coverage to enroll as a condition of

6 retaining eligibility providing that doing so meets the criteria established in Title XIX for obtaining

7 federal matching funds.

8 (b) Definitions. For the purposes of this section, the following definitions apply:

9 (1) "Cost-effective" means that the portion of the ESI that the state would subsidize, as

10 well as wrap-around costs, would on average cost less to the state than enrolling that same

11 person/family in a managed-care delivery system.

12 (2) "Cost sharing" means any co-payments, deductibles, or co-insurance associated with

13 ESI.

14 (3) "Employee premium" means the monthly premium share a person or family is required

15 to pay to the employer to obtain and maintain ESI coverage.

16 (4) "Employer-sponsored insurance or ESI" means health insurance or a group health plan

17 offered to employees by an employer. This includes plans purchased by small employers through

18 the state health insurance marketplace, healthsource, RI (HSRI).

19 (5) "Policy holder" means the person in the household with access to ESI, typically the

20 employee.

21 (6) "RIte Share-approved employer-sponsored insurance (ESI)" means an employer-

22 sponsored health insurance plan that meets the coverage and cost-effectiveness criteria for RIte

23 Share.

24 (7) "RIte Share buy-in" means the monthly amount an Medicaid-ineligible policy holder

25 must pay toward RIte Share-approved ESI that covers the Medicaid-eligible children, young adults,

26 or spouses with access to the ESI. The buy-in only applies in instances when household income is

27 above one hundred fifty percent (150%) of the FPL.

28 (8) "RIte Share premium assistance program" means the Rhode Island Medicaid premium

29 assistance program in which the State pays the eligible Medicaid member's share of the cost of

30 enrolling in a RIte Share-approved ESI plan. This allows the state to share the cost of the health

31 insurance coverage with the employer.

32 (9) "RIte Share Unit" means the entity within EOHHS responsible for assessing the cost-

33 effectiveness of ESI, contacting employers about ESI as appropriate, initiating the RIte Share

34 enrollment and disenrollment process, handling member communications, and managing the

1 overall operations of the RIte Share program.

2 (10) "Third-Party Liability (TPL)" means other health insurance coverage. This insurance

3 is in addition to Medicaid and is usually provided through an employer. Since Medicaid is always

4 the payer of last resort, the TPL is always the primary coverage.

5 (11) "Wrap-around services or coverage" means any health care services not included in

6 the ESI plan that would have been covered had the Medicaid member been enrolled in a RIte Care

7 or Rhody Health Partners plan. Coverage of deductibles and co-insurance is included in the wrap.

8 Co-payments to providers are not covered as part of the wrap-around coverage.

9 (c) RIte Share populations. Medicaid beneficiaries subject to RIte Share include: children,

10 families, parent and caretakers eligible for Medicaid or the Children's Health Insurance Program

11 under this chapter or chapter 12.3 of title 42; and adults between the ages of nineteen (19) and sixty-

12 four (64) who are eligible under chapter 8.12 of title 40, not receiving or eligible to receive

13 Medicare, and are enrolled in managed care delivery systems. The following conditions apply:

14 (1) The income of Medicaid beneficiaries shall affect whether and in what manner they

15 must participate in RIte Share as follows:

16 (i) Income at or below one hundred fifty percent (150%) of FPL -- Persons and families

17 determined to have household income at or below one hundred fifty percent (150%) of the Federal

18 Poverty Level (FPL) guidelines based on the modified adjusted gross income (MAGI) standard or

19 other standard approved by the secretary are required to participate in RIte Share if a Medicaid-

20 eligible adult or parent/caretaker has access to cost-effective ESI. Enrolling in ESI through RIte

21 Share shall be a condition of maintaining Medicaid health coverage for any eligible adult with

22 access to such coverage.

23 (ii) Income above one hundred fifty percent (150%) of FPL and policy holder is not

24 Medicaid-eligible -- Premium assistance is available when the household includes Medicaid-

25 eligible members, but the ESI policy holder (typically a parent/caretaker, or spouse) is not eligible

26 for Medicaid. Premium assistance for parents/caretakers and other household members who are not

27 Medicaid-eligible may be provided in circumstances when enrollment of the Medicaid-eligible

28 family members in the approved ESI plan is contingent upon enrollment of the ineligible policy

29 holder and the executive office of health and human services (executive office) determines, based

30 on a methodology adopted for such purposes, that it is cost-effective to provide premium assistance

31 for family or spousal coverage.

32 (d) RIte Share enrollment as a condition of eligibility. For Medicaid beneficiaries over the

33 age of nineteen (19) enrollment in RIte Share shall be a condition of eligibility except as exempted

34 below and by regulations promulgated by the executive office.

1 (1) Medicaid-eligible children and young adults up to age nineteen (19) shall not be

2 required to enroll in a parent/caretaker relative's ESI as a condition of maintaining Medicaid

3 eligibility if the person with access to RIte Share-approved ESI does not enroll as required. These

4 Medicaid-eligible children and young adults shall remain eligible for Medicaid and shall be

5 enrolled in a RIte Care plan.

6 (2) There shall be a limited six-month (6) exemption from the mandatory enrollment

7 requirement for persons participating in the RI Works program pursuant to chapter 5.2 of title 40.

8 (e) Approval of health insurance plans for premium assistance. The executive office of

9 health and human services shall adopt regulations providing for the approval of employer-based

10 health insurance plans for premium assistance and shall approve employer-based health insurance

11 plans based on these regulations. In order for an employer-based health insurance plan to gain

12 approval, the executive office must determine that the benefits offered by the employer-based

13 health insurance plan are substantially similar in amount, scope, and duration to the benefits

14 provided to Medicaid-eligible persons enrolled in a Medicaid managed-care plan, when the plan is

15 evaluated in conjunction with available supplemental benefits provided by the office. The office

16 shall obtain and make available to persons otherwise eligible for Medicaid identified in this section

17 as supplemental benefits those benefits not reasonably available under employer-based health

18 insurance plans that are required for Medicaid beneficiaries by state law or federal law or

19 regulation. Once it has been determined by the Medicaid agency that the ESI offered by a particular

20 employer is RIte Share-approved, all Medicaid members with access to that employer's plan are

21 required to participate in RIte Share. Failure to meet the mandatory enrollment requirement shall

22 result in the termination of the Medicaid eligibility of the policy holder and other Medicaid

23 members nineteen (19) or older in the household who could be covered under the ESI until the

24 policy holder complies with the RIte Share enrollment procedures established by the executive

25 office.

26 (f) Premium Assistance. The executive office shall provide premium assistance by paying

27 all or a portion of the employee's cost for covering the eligible person and/or his or her family under

28 such a RIte Share-approved ESI plan subject to the buy-in provisions in this section.

29 (g) Buy-in. Persons who can afford it shall share in the cost. -- The executive office is

30 authorized and directed to apply for and obtain any necessary state plan and/or waiver amendments

31 from the secretary of the U.S. DHHS to require that persons enrolled in a RIte Share-approved

32 employer-based health plan who have income equal to or greater than one hundred fifty percent

33 (150%) of the FPL to buy-in to pay a share of the costs based on the ability to pay, provided that

34 the buy-in cost shall not exceed five percent (5%) of the person's annual income. The executive

1 office shall implement the buy-in by regulation, and shall consider co-payments, premium shares,

2 or other reasonable means to do so.

3 (h) Maximization of federal contribution. The executive office of health and human

4 services is authorized and directed to apply for and obtain federal approvals and waivers necessary

5 to maximize the federal contribution for provision of medical assistance coverage under this

6 section, including the authorization to amend the Title XXI state plan and to obtain any waivers

7 necessary to reduce barriers to provide premium assistance to recipients as provided for in Title

8 XXI of the Social Security Act, 42 U.S.C. § 1397 et seq.

9 (i) Implementation by regulation. The executive office of health and human services is

10 authorized and directed to adopt regulations to ensure the establishment and implementation of the

11 premium assistance program in accordance with the intent and purpose of this section, the

12 requirements of Title XIX, Title XXI and any approved federal waivers.

13 (j) Outreach and Reporting. The executive office of health and human services shall

14 develop a plan to identify Medicaid eligible individuals who have access to employer sponsored

15 insurance and increase the use of RIte Share benefits. Beginning October 1, 2019, the executive

16 office shall submit the plan to be included as part of the reporting requirements under § 35-17-1.

17 Starting January 1, 2020, the executive office of health and human services shall include the number

18 of Medicaid recipients with access to employer sponsored insurance, the number of plans that did

19 not meet the cost effectiveness criteria for RIte Share, and enrollment in the premium assistance

20 program as part of the reporting requirements under § 35-17-1.

21 SECTION 8. Section 40-8.9-9 of the General Laws in Chapter 40-8.9 entitled "Medical

22 Assistance - Long-Term Care Service and Finance Reform" is hereby amended to read as follows:

23 40-8.9-9. Long-term-care rebalancing system reform goal.

24 (a) Notwithstanding any other provision of state law, the executive office of health and

25 human services is authorized and directed to apply for, and obtain, any necessary waiver(s), waiver

26 amendment(s), and/or state-plan amendments from the secretary of the United States Department

27 of Health and Human Services, and to promulgate rules necessary to adopt an affirmative plan of

28 program design and implementation that addresses the goal of allocating a minimum of fifty percent

29 (50%) of Medicaid long-term-care funding for persons aged sixty-five (65) and over and adults

30 with disabilities, in addition to services for persons with developmental disabilities, to home- and

31 community-based care; provided, further, the executive office shall report annually as part of its

32 budget submission, the percentage distribution between institutional care and home- and

33 community-based care by population and shall report current and projected waiting lists for long-

34 term-care and home- and community-based care services. The executive office is further authorized

1 and directed to prioritize investments in home- and community-based care and to maintain the

2 integrity and financial viability of all current long-term-care services while pursuing this goal.

3 (b) The reformed long-term-care system rebalancing goal is person centered and

4 encourages individual self-determination, family involvement, interagency collaboration, and

5 individual choice through the provision of highly specialized and individually tailored home-based

6 services. Additionally, individuals with severe behavioral, physical, or developmental disabilities

7 must have the opportunity to live safe and healthful lives through access to a wide range of

8 supportive services in an array of community-based settings, regardless of the complexity of their

9 medical condition, the severity of their disability, or the challenges of their behavior. Delivery of

10 services and supports in less costly and less restrictive community settings, will enable children,

11 adolescents, and adults to be able to curtail, delay, or avoid lengthy stays in long-term care

12 institutions, such as behavioral health residential-treatment facilities, long-term-care hospitals,

13 intermediate-care facilities, and/or skilled nursing facilities.

14 (c) Pursuant to federal authority procured under § 42-7.2-16, the executive office of health

15 and human services is directed and authorized to adopt a tiered set of criteria to be used to determine

16 eligibility for services. Such criteria shall be developed in collaboration with the state's health and

17 human services departments and, to the extent feasible, any consumer group, advisory board, or

18 other entity designated for such purposes, and shall encompass eligibility determinations for long-

19 term-care services in nursing facilities, hospitals, and intermediate-care facilities for persons with

20 intellectual disabilities, as well as home- and community-based alternatives, and shall provide a

21 common standard of income eligibility for both institutional and home- and community-based care.

22 The executive office is authorized to adopt clinical and/or functional criteria for admission to a

23 nursing facility, hospital, or intermediate-care facility for persons with intellectual disabilities that

24 are more stringent than those employed for access to home- and community-based services. The

25 executive office is also authorized to promulgate rules that define the frequency of re-assessments

26 for services provided for under this section. Levels of care may be applied in accordance with the

27 following:

28 (1) The executive office shall continue to apply the level of care criteria in effect on June

29 30, 2015, for any recipient determined eligible for and receiving Medicaid-funded, long-term

30 services in supports in a nursing facility, hospital, or intermediate-care facility for persons with

31 intellectual disabilities on or before that date, unless:

32 (a) The recipient transitions to home- and community-based services because he or she

33 would no longer meet the level of care criteria in effect on June 30, 2015; or

34 (b) The recipient chooses home- and community-based services over the nursing facility,

1 hospital, or intermediate-care facility for persons with intellectual disabilities. For the purposes of

2 this section, a failed community placement, as defined in regulations promulgated by the executive

3 office, shall be considered a condition of clinical eligibility for the highest level of care. The

4 executive office shall confer with the long-term-care ombudsperson with respect to the

5 determination of a failed placement under the ombudsperson's jurisdiction. Should any Medicaid

6 recipient eligible for a nursing facility, hospital, or intermediate-care facility for persons with

7 intellectual disabilities as of June 30, 2015, receive a determination of a failed community

8 placement, the recipient shall have access to the highest level of care; furthermore, a recipient who

9 has experienced a failed community placement shall be transitioned back into his or her former

10 nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities

11 whenever possible. Additionally, residents shall only be moved from a nursing home, hospital, or

12 intermediate-care facility for persons with intellectual disabilities in a manner consistent with

13 applicable state and federal laws.

14 (2) Any Medicaid recipient eligible for the highest level of care who voluntarily leaves a

15 nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities shall

16 not be subject to any wait list for home- and community-based services.

17 (3) No nursing home, hospital, or intermediate-care facility for persons with intellectual

18 disabilities shall be denied payment for services rendered to a Medicaid recipient on the grounds

19 that the recipient does not meet level of care criteria unless and until the executive office has:

20 (i) Performed an individual assessment of the recipient at issue and provided written notice

21 to the nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities

22 that the recipient does not meet level of care criteria; and

23 (ii) The recipient has either appealed that level of care determination and been

24 unsuccessful, or any appeal period available to the recipient regarding that level of care

25 determination has expired.

26 (d) The executive office is further authorized to consolidate all home- and community-

27 based services currently provided pursuant to 42 U.S.C. § 1396n into a single system of home- and

28 community-based services that include options for consumer direction and shared living. The

29 resulting single home- and community-based services system shall replace and supersede all 42

30 U.S.C. § 1396n programs when fully implemented. Notwithstanding the foregoing, the resulting

31 single program home- and community-based services system shall include the continued funding

32 of assisted-living services at any assisted-living facility financed by the Rhode Island housing and

33 mortgage finance corporation prior to January 1, 2006, and shall be in accordance with chapter 66.8

34 of title 42 as long as assisted-living services are a covered Medicaid benefit.

1 (e) The executive office is authorized to promulgate rules that permit certain optional

2 services including, but not limited to, homemaker services, home modifications, respite, and

3 physical therapy evaluations to be offered to persons at risk for Medicaid-funded, long-term care

4 subject to availability of state-appropriated funding for these purposes.

5 (f) To promote the expansion of home- and community-based service capacity, the

6 executive office is authorized to pursue payment methodology reforms that increase access to

7 homemaker, personal care (home health aide), assisted living, adult supportive-care homes, and

8 adult day services, as follows:

9 (1) Development of revised or new Medicaid certification standards that increase access to

10 service specialization and scheduling accommodations by using payment strategies designed to

11 achieve specific quality and health outcomes.

12 (2) Development of Medicaid certification standards for state-authorized providers of

13 adult-day services, excluding such providers of services authorized under § 40.1-24-1(3), assisted

14 living, and adult supportive care (as defined under chapter 17.24 of title 23) that establish for each,

15 an acuity-based, tiered service and payment methodology tied to: licensure authority; level of

16 beneficiary needs; the scope of services and supports provided; and specific quality and outcome

17 measures.

18 The standards for adult-day services for persons eligible for Medicaid-funded, long-term

19 services may differ from those who do not meet the clinical/functional criteria set forth in § 40-

20 8.10-3.

21 (3) As the state's Medicaid program seeks to assist more beneficiaries requiring long-term

22 services and supports in home- and community-based settings, the demand for home care workers

23 has increased, and wages for these workers has not kept pace with neighboring states, leading to

24 high turnover and vacancy rates in the state's home-care industry, the executive office shall institute

25 a one-time increase in the base-payment rates for home-care service providers to promote increased

26 access to and an adequate supply of highly trained home health care professionals, in amount to be

27 determined by the appropriations process, for the purpose of raising wages for personal care

28 attendants and home health aides to be implemented by such providers.

29 (4) A prospective base adjustment, effective not later than July 1, 2018, of ten percent

30 (10%) of the current base rate for home care providers, home nursing care providers, and hospice

31 providers contracted with the executive office of health and human services and its subordinate

32 agencies to deliver Medicaid fee-for-service personal care attendant services.

33 (5) A prospective base adjustment, effective not later than July l, 2018, of twenty percent

34 (20%) of the current base rate for home care providers, home nursing care providers, and hospice

1 providers contracted with the executive office of health and human services and its subordinate

2 agencies to deliver Medicaid fee-for-service skilled nursing and therapeutic services and hospice

3 care.

4 (6) Effective upon passage of this section, hospice provider reimbursement, exclusively for

5 room and board expenses for individuals residing in a skilled nursing facility, shall revert to the

6 rate methodology in effect on June 30, 2018, and these room and board expenses shall be exempted

7 from any and all annual rate increases to hospice providers as provided for in this section.

8 ~~(6)~~ (7) On the first of July in each year, beginning on July l, 2019, the executive office of

9 health and human services will initiate an annual inflation increase to the base rate for home care

10 providers, home nursing care providers, and hospice providers contracted with the executive office

11 and its subordinate agencies to deliver Medicaid fee-for-service personal care attendant services,

12 skilled nursing and therapeutic services and hospice care. The base rate increase shall be by a

13 percentage amount equal to the New England Consumer Price Index card as determined by the

14 United States Department of Labor for medical care and for compliance with all federal and state

15 laws, regulations, and rules, and all national accreditation program requirements. (g) The executive

16 office shall implement a long-term-care options counseling program to provide individuals, or their

17 representatives, or both, with long-term-care consultations that shall include, at a minimum,

18 information about: long-term-care options, sources, and methods of both public and private

19 payment for long-term-care services and an assessment of an individual's functional capabilities

20 and opportunities for maximizing independence. Each individual admitted to, or seeking admission

21 to, a long-term-care facility, regardless of the payment source, shall be informed by the facility of

22 the availability of the long-term-care options counseling program and shall be provided with long-

23 term-care options consultation if they so request. Each individual who applies for Medicaid long-

24 term-care services shall be provided with a long-term-care consultation.

25 (h) The executive office is also authorized, subject to availability of appropriation of

26 funding, and federal, Medicaid-matching funds, to pay for certain services and supports necessary

27 to transition or divert beneficiaries from institutional or restrictive settings and optimize their health

28 and safety when receiving care in a home or the community. The secretary is authorized to obtain

29 any state plan or waiver authorities required to maximize the federal funds available to support

30 expanded access to such home- and community-transition and stabilization services; provided,

31 however, payments shall not exceed an annual or per-person amount.

32 (i) To ensure persons with long-term-care needs who remain living at home have adequate

33 resources to deal with housing maintenance and unanticipated housing-related costs, the secretary

34 is authorized to develop higher resource eligibility limits for persons or obtain any state plan or

1 waiver authorities necessary to change the financial eligibility criteria for long-term services and

2 supports to enable beneficiaries receiving home and community waiver services to have the

3 resources to continue living in their own homes or rental units or other home-based settings.

4 (j) The executive office shall implement, no later than January 1, 2016, the following home-

5 and community-based service and payment reforms:

6 (1) Community-based, supportive-living program established in § 40-8.13-12 or an

7 alternative, successor, or substitute program, or delivery option designated for such purposes by

8 the secretary of the executive office of health and human services;

9 (2) Adult day services level of need criteria and acuity-based, tiered-payment

10 methodology; and

11 (3) Payment reforms that encourage home- and community-based providers to provide the

12 specialized services and accommodations beneficiaries need to avoid or delay institutional care.

13 (k) The secretary is authorized to seek any Medicaid section 1115 waiver or state-plan

14 amendments and take any administrative actions necessary to ensure timely adoption of any new

15 or amended rules, regulations, policies, or procedures and any system enhancements or changes,

16 for which appropriations have been authorized, that are necessary to facilitate implementation of

17 the requirements of this section by the dates established. The secretary shall reserve the discretion

18 to exercise the authority established under §§ 42-7.2-5(6)(v) and 42-7.2-6.1, in consultation with

19 the governor, to meet the legislative directives established herein.

20 SECTION 9. Section 40-8.13-12 of the General Laws in Chapter 40-8.13 entitled "Long-

21 Term Managed Care Arrangements" is hereby amended to read as follows:

22 40-8.13-12. Community-based supportive living program.

23 (a) To expand the number of community-based service options, the executive office of

24 health and human services shall establish a program for beneficiaries opting to participate in

25 managed care long-term care arrangements under this chapter who choose to receive Medicaid-

26 funded assisted living, adult supportive care home, or shared living long-term care services and

27 supports. As part of the program, the executive office shall implement Medicaid certification or, as

28 appropriate, managed care contract standards for state authorized providers of these services that

29 establish an acuity-based, tiered service and payment system that ties reimbursements to:

30 beneficiary's clinical/functional level of need; the scope of services and supports provided; and

31 specific quality and outcome measures. Such standards shall set the base level of Medicaid state

32 plan and waiver services that each type of provider must deliver, the range of acuity-based service

33 enhancements that must be made available to beneficiaries with more intensive care needs, and the

34 minimum state licensure and/or certification requirements a provider must meet to participate in

1 the pilot at each service/payment level. The standards shall also establish any additional

2 requirements, terms or conditions a provider must meet to ensure beneficiaries have access to high

3 quality, cost effective care.

4 (b) Room and board. The executive office shall raise the cap on the amount Medicaid

5 certified assisted living and adult supportive home care providers are permitted to charge

6 participating beneficiaries for room and board. In the first year of the program, the monthly charges

7 for a beneficiary living in a single room who has income at or below three hundred percent (300%)

8 of the Supplemental Security Income (SSI) level shall not exceed the total of both the maximum

9 monthly federal SSI payment and the monthly state supplement authorized for persons requiring

10 long-term services under § 40-6-27.2(a)(1)(vi), less the specified personal need allowance. For a

11 beneficiary living in a double room, the room and board cap shall be set at eighty-five percent

12 (85%) of the monthly charge allowed for a beneficiary living in a single room.

13 (c) Program cost-effectiveness. The total cost to the state for providing the state supplement

14 and Medicaid-funded services and supports to beneficiaries participating in the program in the

15 initial year of implementation shall not exceed the cost for providing Medicaid-funded services to

16 the same number of beneficiaries with similar acuity needs in an institutional setting in the initial

17 year of the operations. The program shall be terminated if the executive office determines that the

18 program has not met this target. The state shall expand access to the program to qualified

19 beneficiaries who opt out of an LTSS arrangement, in accordance with § 40-8.13-2, or are required

20 to enroll in an alternative, successor, or substitute program, or delivery option designated for such

21 purposes by the secretary of the executive office of health and human services if the enrollment in

22 an LTSS plan is no longer an option.

23 SECTION 10. Section 40.1-22-13 of the General Laws in Chapter 40.1-22 entitled

24 "Developmental Disabilities" is hereby amended to read as follows:

25 40.1-22-13. Visits.

26 No public or private developmental disabilities facility shall restrict the visiting of a client

27 by anyone at any time of the day or night; however, in special circumstances when the client is ill

28 or incapacitated and a visit would not be in his or her best interest, visitation may be restricted

29 temporarily during the illness or incapacity when documented in the client’s individualized

30 program plan, as defined in § 40.1-21-4.3(7) of the general laws.

31 SECTION 11. Section 40.1-26-3 of the General Laws in Chapter 40.1-26 entitled "Rights

32 for Persons with Developmental Disabilities" is hereby amended to read as follows:

33 40.1-26-3. Participants' rights.

34 In addition to any other rights provided by state or federal laws, a participant as defined in

1 this chapter shall be entitled to the following rights:

2 (1) To be treated with dignity, respect for privacy and have the right to a safe and supportive

3 environment;

4 (2) To be free from verbal and physical abuse;

5 (3)(i) To engage in any activity including employment, appropriate to his or her age, and

6 interests in the most integrated community setting;

7 (ii) No participant shall be required to perform labor, which involves the essential operation

8 and maintenance of the agency or the regular supervision or care of other participants. Participants

9 may however, be requested to perform labor involving normal housekeeping and home

10 maintenance functions if such responsibilities are documented in the participant's individualized

11 plan;

12 (4) To participate in the development of his or her individualized plan and to provide

13 informed consent to its implementation or to have an advocate provide informed consent if the

14 participant is not competent to do so;

15 (5) To have access to his or her individualized plan and other medical, social, financial,

16 vocational, psychiatric, or other information included in the file maintained by the agency;

17 (6) To give written informed consent prior to the imposition of any plan designed to modify

18 behavior, including those which utilizes aversive techniques or impairs the participant's liberty or

19 to have an advocate provide written informed consent if the participant is not competent to do so.

20 Provided, however, that if the participant is competent to provide consent but cannot provide

21 written consent, the agency shall accept an alternate form of consent and document in the

22 participant's record how such consent was obtained;

23 (7) To register a complaint regarding an alleged violation of rights through the grievance

24 procedure delineated in § 40.1-26-5;

25 (8) To be free from unnecessary restraint. Restraints shall not be employed as punishment,

26 for the convenience of the staff, or as a substitute for an individualized plan. Restraints shall impose

27 the least possible restrictions consistent with their purpose and shall be removed when the

28 emergency ends. Restraints shall not cause physical injury to the participant and shall be designed

29 to allow the greatest possible comfort. Restraints shall be subject to the following conditions:

30 (i) Physical restraint shall be employed only in emergencies to protect the participant or

31 others from imminent injury or when prescribed by a physician, when necessary, during the conduct

32 of a specific medical or surgical procedure or if necessary for participant protection during the time

33 that a medical condition exists;

1 emergencies in which physical restraint is not possible and the harmful effects of the emergency

2 clearly outweigh the potential harmful effects of the chemical restraints;

3 (iii) No participant shall be placed in seclusion;

4 (iv) The agency shall have a written policy that defines the use of restraints, the staff

5 members who may authorize their use, and a mechanism for monitoring and controlling their use;

6 (v) All orders for restraint as well as the required frequency of staff observation of the

7 participant shall be written;

8 (9) To have ~~reasonable~~, at any time, access to telephone communication;

9 (10) To receive visitors of a participant's choosing at ~~all reasonable hours~~ any time;

10 (11) To keep and be allowed to spend ~~a reasonable amount of~~ one's own money;

11 (12) To be provided advance written notice explaining the reason(s) why the participant is

12 no longer eligible for service from the agency;

13 (13) To religious freedom and practice;

14 (14) To communicate by sealed mail or otherwise with persons of one's choosing;

15 (15) To select and wear one's own clothing and to keep and use one's own personal

16 possessions;

17 (16) To have ~~reasonable,~~ prompt access to current newspapers, magazines and radio and

18 television programming;

19 (17) To have opportunities for physical exercise and outdoor recreation;

20 (18)(i) To provide informed consent prior to the imposition of any invasive medical

21 treatment including any surgical procedure or to have a legal guardian, or in the absence of a legal

22 guardian, a relative as defined in this chapter, provide informed consent if the participant is not

23 competent to do so. Information upon which a participant shall make necessary treatment and/or

24 surgery decisions shall be presented to the participant in a manner consistent with his or her learning

25 style and shall include, but not be limited to:

26 (A) The nature and consequences of the procedure(s);

27 (B) The risks, benefits and purpose of the procedure(s); and

28 (C) Alternate procedures available;

29 (ii) The informed consent of a participant or his or her legal guardian or, in the absence of

30 a legal guardian, a relative as defined in this chapter, may be withdrawn at any time, with or without

31 cause, prior to treatment. The absence of informed consent notwithstanding, a licensed and

32 qualified physician may render emergency medical care or treatment to any participant who has

33 been injured or who is suffering from an acute illness, disease, or condition if, within a reasonable

1 endanger the health of the participant;

2 (19) Each participant shall have a central record. The record shall include data pertaining

3 to admissions and such other information as may be required under regulations by the department;

4 (20) Admissions -- As part of the procedure for the admission of a participant to an agency,

5 each participant or applicant, or advocate if the participant or applicant is not competent, shall be

6 fully informed, orally and in writing, of all rules, regulations, and policies governing participant

7 conduct and responsibilities, including grounds for dismissal, procedures for discharge, and all

8 anticipated financial charges, including all costs not covered under federal and/or state programs,

9 by other third party payors or by the agency's basic per diem rate. The written notice shall include

10 information regarding the participant's or applicant's right to appeal the admission or dismissal

11 decisions of the agency;

12 (21) Upon termination of services to or death of a participant, a final accounting shall be

13 made of all personal effects and/or money belonging to the participant held by the agency. All

14 personal effects and/or money including interest shall be promptly released to the participant or his

15 or her heirs;

16 (22) Nothing in this chapter shall preclude intervention in the form of appropriate and

17 reasonable restraint should it be necessary to protect individuals from physical injury to themselves

18 or others.

19 SECTION 12. Section 42-7.2-5 of the General Laws in Chapter 42-7.2 entitled "Office of

20 Health and Human Services" is hereby amended to read as follows:

21 42-7.2-5. Duties of the secretary.

22 The secretary shall be subject to the direction and supervision of the governor for the

23 oversight, coordination and cohesive direction of state administered health and human services and

24 in ensuring the laws are faithfully executed, not withstanding any law to the contrary. In this

25 capacity, the Secretary of Health and Human Services shall be authorized to:

26 (1) Coordinate the administration and financing of health-care benefits, human services

27 and programs including those authorized by the state's Medicaid section 1115 demonstration waiver

28 and, as applicable, the Medicaid State Plan under Title XIX of the U.S. Social Security Act.

29 However, nothing in this section shall be construed as transferring to the secretary the powers,

30 duties or functions conferred upon the departments by Rhode Island public and general laws for

31 the administration of federal/state programs financed in whole or in part with Medicaid funds or

32 the administrative responsibility for the preparation and submission of any state plans, state plan

33 amendments, or authorized federal waiver applications, once approved by the secretary.

1 reform issues as well as the principal point of contact in the state on any such related matters.

2 (3)(a) Review and ensure the coordination of the state's Medicaid section 1115

3 demonstration waiver requests and renewals as well as any initiatives and proposals requiring

4 amendments to the Medicaid state plan or ~~category two (II) or three (III) changes~~ formal

5 amendment changes, as described in the special terms and conditions of the state's Medicaid section

6 1115 demonstration waiver with the potential to affect the scope, amount or duration of publicly-

7 funded health-care services, provider payments or reimbursements, or access to or the availability

8 of benefits and services as provided by Rhode Island general and public laws. The secretary shall

9 consider whether any such changes are legally and fiscally sound and consistent with the state's

10 policy and budget priorities. The secretary shall also assess whether a proposed change is capable

11 of obtaining the necessary approvals from federal officials and achieving the expected positive

12 consumer outcomes. Department directors shall, within the timelines specified, provide any

13 information and resources the secretary deems necessary in order to perform the reviews authorized

14 in this section;

15 (b) Direct the development and implementation of any Medicaid policies, procedures, or

16 systems that may be required to assure successful operation of the state's health and human services

17 integrated eligibility system and coordination with HealthSource RI, the state's health insurance

18 marketplace.

19 (c) Beginning in 2015, conduct on a biennial basis a comprehensive review of the Medicaid

20 eligibility criteria for one or more of the populations covered under the state plan or a waiver to

21 ensure consistency with federal and state laws and policies, coordinate and align systems, and

22 identify areas for improving quality assurance, fair and equitable access to services, and

23 opportunities for additional financial participation.

24 (d) Implement service organization and delivery reforms that facilitate service integration,

25 increase value, and improve quality and health outcomes.

26 (4) Beginning in ~~2006~~ 2020, prepare and submit to the governor, the chairpersons of the

27 house and senate finance committees, the caseload estimating conference, and to the joint

28 legislative committee for health-care oversight, by no later than March 15 of each year, a

29 comprehensive overview of all Medicaid expenditures outcomes, administrative costs, and

30 utilization rates. The overview shall include, but not be limited to, the following information:

31 (i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended;

32 (ii) Expenditures, outcomes and utilization rates by population and sub-population served

33 (e.g. families with children, persons with disabilities, children in foster care, children receiving

34 adoption assistance, adults ages nineteen (19) to sixty-four (64), and elders);

1 (iii) Expenditures, outcomes and utilization rates by each state department or other

2 municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the Social

3 Security Act, as amended; ~~and~~

4 (iv) Expenditures, outcomes and utilization rates by type of service and/or service provider;

5 and

6 (v) Expenditures by mandatory population receiving mandatory services and, reported

7 separately, optional services, as well as optional populations receiving mandatory services and,

8 reported separately, optional services for each state agency receiving Title XIX and XXI funds .

9 The directors of the departments, as well as local governments and school departments,

10 shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever

11 resources, information and support shall be necessary.

12 (5) Resolve administrative, jurisdictional, operational, program, or policy conflicts among

13 departments and their executive staffs and make necessary recommendations to the governor.

14 (6) Assure continued progress toward improving the quality, the economy, the

15 accountability and the efficiency of state-administered health and human services. In this capacity,

16 the secretary shall:

17 (i) Direct implementation of reforms in the human resources practices of the executive

18 office and the departments that streamline and upgrade services, achieve greater economies of scale

19 and establish the coordinated system of the staff education, cross-training, and career development

20 services necessary to recruit and retain a highly-skilled, responsive, and engaged health and human

21 services workforce;

22 (ii) Encourage EOHHS-wide consumer-centered approaches to service design and delivery

23 that expand their capacity to respond efficiently and responsibly to the diverse and changing needs

24 of the people and communities they serve;

25 (iii) Develop all opportunities to maximize resources by leveraging the state's purchasing

26 power, centralizing fiscal service functions related to budget, finance, and procurement,

27 centralizing communication, policy analysis and planning, and information systems and data

28 management, pursuing alternative funding sources through grants, awards and partnerships and

29 securing all available federal financial participation for programs and services provided EOHHS-

30 wide;

31 (iv) Improve the coordination and efficiency of health and human services legal functions

32 by centralizing adjudicative and legal services and overseeing their timely and judicious

33 administration;

34 (v) Facilitate the rebalancing of the long term system by creating an assessment and

1 coordination organization or unit for the expressed purpose of developing and implementing

2 procedures EOHHS-wide that ensure that the appropriate publicly-funded health services are

3 provided at the right time and in the most appropriate and least restrictive setting;

4 (vi) Strengthen health and human services program integrity, quality control and

5 collections, and recovery activities by consolidating functions within the office in a single unit that

6 ensures all affected parties pay their fair share of the cost of services and are aware of alternative

7 financing.

8 (vii) Assure protective services are available to vulnerable elders and adults with

9 developmental and other disabilities by reorganizing existing services, establishing new services

10 where gaps exist and centralizing administrative responsibility for oversight of all related initiatives

11 and programs.

12 (7) Prepare and integrate comprehensive budgets for the health and human services

13 departments and any other functions and duties assigned to the office. The budgets shall be

14 submitted to the state budget office by the secretary, for consideration by the governor, on behalf

15 of the state's health and human services agencies in accordance with the provisions set forth in §

16 35-3-4 of the Rhode Island general laws.

17 (8) Utilize objective data to evaluate health and human services policy goals, resource use

18 and outcome evaluation and to perform short and long-term policy planning and development.

19 (9) Establishment of an integrated approach to interdepartmental information and data

20 management that complements and furthers the goals of the unified health infrastructure project

21 initiative and that will facilitate the transition to consumer-centered integrated system of state

22 administered health and human services.

23 (10) At the direction of the governor or the general assembly, conduct independent reviews

24 of state-administered health and human services programs, policies and related agency actions and

25 activities and assist the department directors in identifying strategies to address any issues or areas

26 of concern that may emerge thereof. The department directors shall provide any information and

27 assistance deemed necessary by the secretary when undertaking such independent reviews.

28 (11) Provide regular and timely reports to the governor and make recommendations with

29 respect to the state's health and human services agenda.

30 (12) Employ such personnel and contract for such consulting services as may be required

31 to perform the powers and duties lawfully conferred upon the secretary.

32 (13) Assume responsibility for complying with the provisions of any general or public law

33 or regulation related to the disclosure, confidentiality and privacy of any information or records, in

34 the possession or under the control of the executive office or the departments assigned to the

1 executive office, that may be developed or acquired or transferred at the direction of the governor

2 or the secretary for purposes directly connected with the secretary's duties set forth herein.

3 (14) Hold the director of each health and human services department accountable for their

4 administrative, fiscal and program actions in the conduct of the respective powers and duties of

5 their agencies.

6 SECTION 13. Section 42-12.4-7 of the General Laws in Chapter 42-12.4 entitled "The

7 Rhode Island Medicaid Reform Act of 2008" is hereby amended to read as follows:

8 42-12.4-7. Demonstration implementation -- Restrictions.

9 The executive office of health and human services and the department of human services

10 may implement the global consumer choice section 1115 demonstration ("the demonstration"),

11 project number 11W-00242/1, subject to the following restrictions:

12 (1) Notwithstanding the provisions of the demonstration, any change that requires the

13 implementation of a rule or regulation or modification of a rule or regulation in existence prior to

14 the demonstration shall require prior approval of the general assembly;

15 (2) Notwithstanding the provisions of the demonstration, any ~~Category II change or~~

16 ~~Category III change~~ formal waiver amendments, as defined in the demonstration, or state plan

17 amendments shall require the prior approval of the general assembly.

18 SECTION 14. Section 42-14.6-4 of the General Laws in Chapter 42-14.6 entitled "Rhode

19 Island All-Payer Patient-Centered Medical Home Act" is hereby amended to read as follows:

20 42-14.6-4. Promotion of the patient-centered medical home.

21 (a) Care coordination payments.

22 (1) The commissioner and the secretary shall convene a patient-centered medical home

23 collaborative consisting of the entities described in subdivision 42-14.6-3(7). The commissioner

24 shall require participation in the collaborative by all of the health insurers described above. The

25 collaborative shall propose, by January 1, 2012, a payment system, to be adopted in whole or in

26 part by the commissioner and the secretary, that requires all health insurers to make per-person care

27 coordination payments to patient-centered medical homes, for providing care coordination services

28 and directly managing on-site or employing care coordinators as part of all health insurance plans

29 offered in Rhode Island. The collaborative shall provide guidance to the state health-care program

30 as to the appropriate payment system for the state health-care program to the same patient-centered

31 medical homes; the state health-care program must justify the reasons for any departure from this

32 guidance to the collaborative.

33 (2) The care coordination payments under this shall be consistent across insurers and

34 patient-centered medical homes and shall be in addition to any other incentive payments such as

1 quality incentive payments. In developing the criteria for care coordination payments, the

2 commissioner shall consider the feasibility of including the additional time and resources needed

3 by patients with limited English-language skills, cultural differences, or other barriers to health

4 care. The commissioner may direct the collaborative to determine a schedule for phasing in care

5 coordination fees.

6 ~~(3) The care coordination payment system shall be in place through July 1, 2016. Its~~

7 ~~continuation beyond that point shall depend on results of the evaluation reports filed pursuant to §~~

8 ~~42-14.6-6.~~

9 ~~(4)~~(3) Examination of other payment reforms. ~~By January 1, 2013, the~~ The commissioner

10 and the secretary shall direct the collaborative to consider additional payment reforms to be

11 implemented to support patient-centered medical homes including, but not limited to, payment

12 structures (to medical home or other providers) that:

13 (i) Reward high-quality, low-cost providers;

14 (ii) Create enrollee incentives to receive care from high-quality, low-cost providers;

15 (iii) Foster collaboration among providers to reduce cost shifting from one part of the health

16 continuum to another; and

17 (iv) Create incentives that health care be provided in the least restrictive, most appropriate

18 setting.

19 (v) Constitute alternatives to fee for service payment, such as partial and full capitation.

20 ~~(5)~~(4) The patient-centered medical home collaborative shall examine and make

21 recommendations to the secretary regarding the designation of patient-centered medical homes, in

22 order to promote diversity in the size of practices designated, geographic locations of practices

23 designated and accessibility of the population throughout the state to patient-centered medical

24 homes.

25 (b) The patient-centered medical home collaborative shall propose to the secretary for

26 adoption, standards for the patient-centered medical home to be used in the payment system. In

27 developing these standards, the existing standards by the national committee for quality assurance,

28 or other independent accrediting organizations may be considered where feasible.

29 SECTION 15. Section 42-72-5.3 of the General Laws in Chapter 42-72 entitled

30 "Department of Children, Youth and Families" is hereby amended to read as follows:

31 42-72-5.3. Accreditation.

32 (a) The standards set by the Council on Accreditation (COA) are nationally recognized as

33 best practices for protecting and providing services to abused and neglected children.

34 (b) Achieving and maintaining these standards requires a solid commitment from the

1 legislative, executive and judicial branches of government;

2 (c) It is the intent of the general assembly to provide the resources for the department of

3 children, youth and families to meet, achieve and sustain accreditation by the Council on

4 Accreditation;

5 (d) ~~Upon the appropriation of sufficient funds and resources by the general assembly, the~~

6 The department of children, youth and families shall initiate the process for seeking COA

7 accreditation no later than ~~July 1, 2011~~ September 1, 2019, and shall submit an accreditation plan

8 to the governor, the speaker of the house of representatives, the president of the senate, the

9 chairperson of the house committee on health, education and welfare, the chairperson of the senate

10 committee on health and human services, the chairpersons of the finance committees of the house

11 and senate, and to the chairpersons of the judiciary committees of the house and senate no later

12 than ~~July 1, 2012~~ October 1, 2020. Said plan shall include, at a minimum, the following:

13 (1) Inputs, including updated staffing requirements, a timetable for achieving those

14 requirements, and any additional costs associated with achieving accreditation;

15 (2) Outcomes, including an assessment based on statistical and other evidence, of the

16 impact of accreditation on the number of abused and neglected children, the nature of their abuse,

17 and the relationships between such children and their families.

18 (e) ~~The general assembly shall appropriate sufficient funds for expenses associated with~~

19 ~~achieving initial COA accreditation and subsequent re-accreditation with said funds being placed~~

20 ~~in a restricted receipt account to be used solely for this purpose.~~"

21 SECTION 16. Rhode Island Medicaid Reform Act of 2008 Resolution.

22 WHEREAS, The General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode

23 Island Medicaid Reform Act of 2008”; and

24 WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws

25 42-12.4-1, et seq.; and

26 WHEREAS, Rhode Island General Law 42-7.2-5(3)(a) provides that the Secretary of the

27 Executive Office of Health and Human Services (“Executive Office”) is responsible for the review

28 and coordination of any Rhode Island’s Medicaid section 1115 demonstration waiver requests and

29 renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan

30 or changes as described in the demonstration, “with potential to affect the scope, amount, or

31 duration of publicly-funded health care services, provider payments or reimbursements, or access

32 to or the availability of benefits and services provided by Rhode Island general and public laws”;

33 and

34 WHEREAS, In pursuit of a more cost-effective consumer choice system of care that is

1 fiscally sound and sustainable, the Secretary of the Executive Office requests legislative approval

2 of the following proposals to amend the Rhode Island’s Medicaid section 1115 demonstration:

3 (a) Provider rates – Adjustments. The Executive Office proposes to:

4 (i) Increase in-patient and out-patient hospital payment rates by seven and two tenths

5 percent (7.2%) on July 1, 2019;

6 (ii) Increase nursing home rates by one percent (1%) on October 1, 2019;

7 (iii) Establish, effective July 1, 2019, hospice provider reimbursement, exclusively for

8 room and board expenses for individuals residing in a skilled nursing facility, shall revert to the

9 rate methodology in effect on June 30, 2018 and these room and board expenses shall be exempted

10 from any and all annual rate increases to hospice providers; and

11 (iv) Reduce the rates for Medicaid managed care plan.

12 Implementation of adjustments may require amendments to the Rhode Island’s Medicaid

13 state plan and/or section 1115 demonstration waiver under applicable terms and conditions.

14 Further, adoption of new or amended rules, regulations and procedures may also be required.

15 (b) Increase in the Department of Behavioral Healthcare, Developmental Disabilities and

16 Hospitals (BHDDH) Direct Care Service Workers Wages. To further the long-term care system

17 rebalancing goal of improving access to high quality services in the least restrictive setting, the

18 Executive Office proposes to establish a targeted wage increase for certain community-based

19 BHDDH developmental disability private providers and self-directed consumer direct care service

20 workers. Implementation of the program may require amendments to the Medicaid State Plan

21 and/or Section 1115 demonstration waiver due to changes in payment methodologies.

22 (c) Federal Financing Opportunities. The Executive Office proposes to review Medicaid

23 requirements and opportunities under the U.S. Patient Protection and Affordable Care Act of 2010,

24 as amended, and various other recently enacted federal laws and pursue any changes in the Rhode

25 Island Medicaid program that promote service quality, access and cost-effectiveness that may

26 warrant a Medicaid state plan amendment or amendment under the terms and conditions of Rhode

27 Island’s section 1115 waiver, its successor, or any extension thereof. Any such actions by the

28 Executive Office shall not have an adverse impact on beneficiaries and shall not cause an increase

29 in expenditures beyond the amount appropriated for state fiscal year 2020.

30 Now, therefore, be it

31 RESOLVED, the General Assembly hereby approves the proposals under paragraphs (a)

32 through (c) above; and be it further;

33 RESOLVED, the Secretary of the Executive Office is authorized to pursue and implement

34 any Rhode Island’s Medicaid section 1115 demonstration waiver amendments, Medicaid state plan

1 amendments, and/or changes to the applicable department’s rules, regulations and procedures

2 approved herein and as authorized by 42-12.4; and be it further

3 RESOLVED, that this Joint Resolution shall take effect upon passage.

4 SECTION 17. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

5 amended by adding thereto the following chapter:

6 CHAPTER 28.10

7 OPIOID STEWARDSHIP ACT

8 21-28.10-1. Definitions.

9 21-28.10-1. Definitions.

10 Unless the context otherwise requires, the following terms shall be construed in this chapter

11 to have the following meanings:

12 (1) "Department" means the Rhode Island department of health.

13 (2) "Director” means the director of the Rhode Island department of health.

14 (3) "Distribute" means distribute as defined in § 21-28-1.02.

15 (4) "Distributor" means distributor as defined in § 21-28-1.02.

16 (5) "Manufacture" means manufacture as defined in § 21-28-1.02.

17 (6) "Manufacturer" means manufacturer as defined in § 21-28-1.02.

18 (7) "Market share" means the total opioid stewardship fund amount measured as a

19 percentage of each manufacturer's, distributor's and wholesaler's gross, in-state, opioid sales in

20 dollars from the previous calendar year as reported to the U.S. Drug Enforcement Administration

21 (DEA) on its Automation of Reports and Consolidated Orders System (ARCOS) report.

22 (8) "Wholesaler" means wholesaler as defined in § 21-28-1.02.

23 21-28.10-2. Opioid registration fee imposed on manufacturers, distributors, and

24 wholesalers.

25 All manufacturers, distributors, and wholesalers licensed or registered under this title or

26 chapter 19.1 of title 5 (hereinafter referred to as "licensees"), that manufacture or distribute opioids

27 shall be required to pay an opioid registration fee. On an annual basis, the director shall certify the

28 amount of all revenues collected from opioid registration fees and any penalties imposed, to the

29 general treasurer. The amount of revenues so certified shall be deposited annually into the opioid

30 stewardship fund restricted receipt account established pursuant to § 21-28.10-10.

31 21-28.10-3. Determination of market share and registration fee.

32 (1) The total opioid stewardship fund amount shall be five million dollars ($5,000,000)

33 annually, subject to downward adjustments pursuant to § 21-28.10-7.

34 (2) Each manufacturer's, distributor's, and wholesaler's annual opioid registration fee shall

1 be based on that licensee's in-state market share.

2 (3) The following sales will not be included when determining a manufacturer's,

3 distributor's, or wholesaler's market share:

4 (i) The gross, in-state opioid sales attributed to the sale of buprenorphine or methadone;

5 (ii) The gross, in-state opioid sales sold or distributed directly to opioid treatment programs,

6 data-waivered practitioners, or hospice providers licensed pursuant to chapter 17 of title 23;

7 (iii) Any sales from those opioids manufactured in Rhode Island, but whose final point of

8 delivery or sale is outside of Rhode Island; and

9 (iv) Any sales of anesthesia or epidurals as defined in regulation by the department.

10 (v) Any in-state intracompany transfers of opioids between any division, affiliate,

11 subsidiary, parent, or other entity under complete and common ownership and control.

12 (4) The department shall provide to the licensee, in writing, on or before October 15, 2019,

13 the licensee's market share for the 2018 calendar year. Thereafter, the department shall notify the

14 licensee, in writing, on or before October 15 of each year, of its market share for the prior calendar

15 year based on the opioids sold or distributed for the prior calendar year.

16 21-28.10-4. Reports and records.

17 (a) Each manufacturer, distributor, and wholesaler licensed to manufacture or distribute

18 opioids in the state of Rhode Island shall provide to the director a report detailing all opioids sold

19 or distributed by such manufacturer or distributor in the state of Rhode Island. Such report shall

20 include:

21 (1) The manufacturer's, distributor's, or wholesaler's name, address, phone number, DEA

22 registration number, and controlled substance license number issued by the department;

23 (2) The name, address, and DEA registration number of the entity to whom the opioid was

24 sold or distributed;

25 (3) The date of the sale or distribution of the opioids;

26 (4) The gross receipt total, in dollars, of all opioids sold or distributed;

27 (5) The name and National Drug Code of the opioids sold or distributed;

28 (6) The number of containers and the strength and metric quantity of controlled substance

29 in each container of the opioids sold or distributed; and

30 (7) Any other elements as deemed necessary or advisable by the director.

31 (b) Initial and future reports.

32 Such information shall be reported annually to the department via ARCOS or in such other

33 form as defined or approved by the director; provided, however, that the initial report provided

34 pursuant to subsection (a) of this section shall consist of all opioids sold or distributed in the state

1 of Rhode Island for the 2018 calendar year, and shall be submitted by September 1, 2019.

2 Subsequent annual reports shall be submitted by April 15 of each year based on the actual opioid

3 sales and distributions of the prior calendar year.

4 21-28.10-5. Payment of market share.

5 The licensee shall make payments annually to the department with the first payment of its

6 market share due on December 31, 2019; provided, that the amount due on December 31, 2019

7 shall be for the full amount of the payment for the 2018 calendar year, with subsequent payments

8 to be due and owing on the last day of every year thereafter.

9 21-28.10-6. Rebate of market share.

10 In any year for which the director determines that a licensee failed to report information

11 required by this chapter, those licensees complying with this chapter shall receive a reduced

12 assessment of their market share in the following year equal to the amount in excess of any

13 overpayment in the prior payment period.

14 21-28.10-7. Licensee opportunity to appeal.

15 (a) A licensee shall be afforded an opportunity to submit information to the department

16 documenting or evidencing that the market share provided to the licensee (or amounts paid

17 thereunder), pursuant to § 21-28.10-3(4), is in error or otherwise not warranted. The department

18 may consider and examine such additional information that it determines to be reasonably related

19 to resolving the calculation of a licensee's market share, which may require the licensee to provide

20 additional materials to the department. If the department determines thereafter that all or a portion

21 of such market share, as determined by the director pursuant to § 21-28.10-3(4), is not warranted,

22 the department may:

23 (1) Adjust the market share;

24 (2) Adjust the assessment of the market share in the following year equal to the amount in

25 excess of any overpayment in the prior payment period; or

26 (3) Refund amounts paid in error.

27 (b) Any person aggrieved by a decision of the department relating to the calculation of

28 market share may appeal that decision to the superior court, which shall have power to review such

29 decision, and the process by which such decision was made, as prescribed in chapter 35 of title 42.

30 (c) A licensee shall also have the ability to appeal its assessed opioid registration fee if the

31 assessed fee amount exceeds the amount of profit the licensee obtains through sales in the state of

32 products described in § 21-28.10-3. The department may, exercising discretion as it deems

33 appropriate, waive or decrease fees as assessed pursuant to § 21-28.10-3 if a licensee can

34 demonstrate that the correctly assessed payment will pose undue hardship to the licensee's

1 continued activities in state. The department shall be allowed to request, and the licensee shall

2 furnish to the department, any information or supporting documentation validating the licensee's

3 request for waiver or reduction under this subsection. Fees waived under this section shall not be

4 reapportioned to other licensees which have payments due under this chapter.

5 21-28.10-8. Departmental annual reporting.

6 By January of each calendar year, the department of behavioral healthcare, developmental

7 disabilities and hospitals (BHDDH), the executive office of health and human services (EOHHS),

8 the department of children, youth and families (DCYF), the Rhode Island department of education

9 (RIDE), the Rhode Island office of veterans' affairs (RIOVA), the department of corrections

10 (DOC), and the department of labor and training (DLT) shall report annually to the governor, the

11 speaker of the house, and the senate president which programs in their respective departments were

12 funded using monies from the opioid stewardship fund and the total amount of funds spent on each

13 program.

14 21-28.10-9. Penalties.

15 (a) The department may assess a civil penalty in an amount not to exceed one thousand

16 dollars ($1,000) per day against any licensee that fails to comply with this chapter.

17 (b)(1) In addition to any other civil penalty provided by law, where a licensee has failed to

18 pay its market share in accordance with § 21-28.10-5, the department may also assess a penalty of

19 no less than ten percent (10%) and no greater than three hundred percent (300%) of the market

20 share due from such licensee.

21 (2) In addition to any other criminal penalty provided by law, where a licensee has failed

22 to pay its market share in accordance with § 21-28.10-5, the department may also assess a penalty

23 of no less than ten percent (10%) and no greater than fifty percent (50%) of the market share due

24 from such licensee.

25 21-28.10-10. Creation of opioid stewardship fund.

26 (a) There is hereby established, in the custody of the department, a restricted receipt

27 account to be known as the "opioid stewardship fund."

28 (b) Monies in the opioid stewardship fund shall be kept separate and shall not be

29 commingled with any other monies in the custody of the department.

30 (c) The opioid stewardship fund shall consist of monies appropriated for the purpose of

31 such account, monies transferred to such account pursuant to law, contributions consisting of

32 promises or grants of any money or property of any kind or value, or any other thing of value,

33 including grants or other financial assistance from any agency of government and monies required

34 by the provisions of this chapter or any other law to be paid into or credited to this account.

1 (d) Monies of the opioid stewardship fund shall be available to provide opioid treatment,

2 recovery, prevention, education services, and other related programs, subject to appropriation by

3 the general assembly.

4 21-28.10-11. Allocation.

5 The monies, when allocated, shall be paid out of the opioid stewardship fund and subject

6 to the approval of the director and the approval of the director of the department of behavioral

7 healthcare, developmental disabilities and hospitals (BHDDH), pursuant to the provisions of this

8 chapter.

9 21-28.10-12. Severability.

10 If any clause, sentence, paragraph, subdivision, or section of this act shall be adjudged by

11 any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or

12 invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence,

13 paragraph, subdivision, or section directly involved in the controversy in which such judgment shall

14 have been rendered. It is hereby declared to be the intent of the legislature that this act would have

15 been enacted even if such invalid provisions had not been included herein.

16 21-28.10-13. Rules and regulations.

17 The director may prescribe rules and regulations, not inconsistent with law, to carry into

18 effect the provisions of chapter 28.10 of title 21, which rules and regulations, when reasonably

19 designed to carry out the intent and purpose of this chapter, are prima facie evidence of its proper

20 interpretation. Such rules and regulations may be amended, suspended, or revoked, from time to

21 time and in whole or in part, by the director. The director may prescribe, and may furnish, any

22 forms necessary or advisable for the administration of this chapter.

23 SECTION 18. This article shall take effect upon passage.

2 RELATING TO LEASE AGREEMENTS FOR LEASED OFFICE AND OPERATING SPACE

3 SECTION 1. This article consists of joint resolutions that are submitted pursuant to Rhode

4 Island General Laws § 37-6-2 authorizing lease agreements for office space and operating space

5 for the Department of Transportation, the Department of Corrections, the Department of Human

6 Services, and the Rhode Island Board of Elections.

7 SECTION 2. Transportation, 288 Allens Avenue, Providence.

8 WHEREAS, The Department of Transportation currently holds a lease agreement with 288

9 Allens Avenue, LLC for 33,000 square feet of garage/highway maintenance facility space located

10 at 288 Allens Avenue in the City of Providence; and

11 WHEREAS, The leased premises are occupied by a portion of the Department's Highway

12 Maintenance Division staff and its heavy equipment fleet.

13 WHEREAS, The State of Rhode Island, acting by and through the Department of

14 Transportation, attests to the fact that there are no clauses in the lease agreement with 288 Allens

15 Avenue, LLC that would interfere with the Department of Transportation's lease agreement or use

16 of the facility; and

17 WHEREAS, The existing lease expires on September 30, 2019 and the Department of

18 Transportation wishes to renew the lease agreement with 288 Allens Avenue, LLC for a period of

19 five (5) years; and

20 WHEREAS, The proposed leased premises will provide a central location from which the

21 Department of Transportation can deploy highway maintenance crews to complete work on the

22 state highway system and otherwise fulfill the mission of the Department; and

23 WHEREAS, The annual rent in the agreement in the current fiscal year, ending June 30,

24 2019 is $525,714; and

25 WHEREAS, The aggregate rent for the five-year lease term is anticipated to be within the

26 range of $2,988,288-$3,000,000; and

27 WHEREAS, The State Properties Committee now respectfully requests the approval of the

28 House of Representatives and the Senate for the lease agreement between the Department of

29 Transportation and 288 Allens Avenue, LLC, for the facility located at 288 Allens Avenue in the

30 City of Providence; now therefore be it

1 RESOLVED, That this General Assembly hereby approves the lease agreement, for a term

2 not to exceed five (5) years and the aggregate rent in the range of $2,988,288-$3,000,000; and it be

3 further

4 RESOLVED, That this Joint Resolution shall take effect upon passage by the General

5 assembly; and it be further

6 RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly

7 certified copies of this resolution to the Governor, the Director of the Department of Transportation,

8 the Director of Administration, the State Budget Officer, and the Chair of the State Properties

9 Committee.

10 SECTION 3. Corrections, 249 Roosevelt Avenue, Pawtucket.

11 WHEREAS, The Department of Corrections holds a current lease agreement, in full force

12 and effect, with PUI O, Inc. for 4,200 square feet of space located at 249 Roosevelt Avenue in the

13 City of Pawtucket; and

14 WHEREAS, The current lease expires on June 30, 2019 and the Department of Corrections

15 wishes to renew the lease agreement with PUI O, Inc. for a period of five (5) years; and

16 WHEREAS, The State of Rhode Island, acting by and through the Department of

17 Corrections, attests to the fact that there are no clauses in the lease agreement with PUI O, Inc. that

18 would interfere with the Department of Corrections lease agreement or use of the facility; and

19 WHEREAS, The leased premises provide a regional Adult Probation and Parole location

20 from which the Department of Corrections can serve the needs of the City of Pawtucket and its

21 surrounding communities and otherwise further fulfill the mission of the Department; and

22 WHEREAS, The annual all-inclusive rent (base rent/utilities/janitorial services) in the

23 agreement in the current fiscal year, ending June 30, 2019 is $99,734; and

24 WHEREAS, The aggregate all-inclusive rent for the five-year lease term is anticipated to

25 be within the range of $515,000-$520,000; and

26 WHEREAS, The State Properties Committee now respectfully requests the approval of the

27 House of Representatives and the Senate for the lease agreement between the Department of

28 Corrections and PUI O, Inc., for the facility located at 249 Roosevelt Avenue in the City of

29 Pawtucket; now therefore be it

30 RESOLVED, That this General Assembly hereby approves the lease agreement, for a term

31 not to exceed five (5) years at an aggregate all-inclusive rent for the five-year lease term in the

32 range of $515,000-$520,000; and it be further

33 RESOLVED, That this Joint Resolution shall take effect upon passage by the General

34 Assembly; and it be further

1 RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly

2 certified copies of this resolution to the Governor, the Director of the Department of Corrections,

3 the Director of Administration, the State Budget Officer, and the Chair of the State Properties

4 Committee.

5 SECTION 4. Human Services, 249 Roosevelt Avenue, Pawtucket.

6 WHEREAS, The Department of Human Services holds a current lease agreement, in full

7 force and effect, with PUI O, Inc. for 24,400 square feet of space located at 249 Roosevelt Avenue

8 in the City of Pawtucket; and

9 WHEREAS, The current lease expires on June 30, 2019 and the Department of Human

10 Services wishes to renew the lease agreement with PUI O, Inc. for a period of five (5) years; and

11 WHEREAS, The State of Rhode Island, acting by and through the Department of Human

12 Services, attests to the fact that there are no clauses in the lease agreement with PUI O, Inc. that

13 would interfere with the Department of Human Services lease agreement or use of the facility; and

14 WHEREAS, The leased premises provide a regional location from which the Department

15 of Human Services can serve the needs of the City of Pawtucket and its surrounding communities

16 and otherwise further fulfill the mission of the Department; and

17 WHEREAS, The annual rent (inclusive of janitorial services and systems furniture) in the

18 agreement in the current fiscal year, ending June 30, 2019 is $453,598; and

19 WHEREAS, The aggregate rent (inclusive of janitorial services and systems furniture) for

20 the five-year lease term is anticipated to be within the range of $2,375,000-$2,700,000; and

21 WHEREAS, The State Properties Committee now respectfully requests the approval of the

22 House of Representatives and the Senate for the lease agreement between the Department of

23 Human Services and PUI O, Inc., for the facility located at 249 Roosevelt Avenue in the City of

24 Pawtucket; now therefore be it

25 RESOLVED, That this General Assembly hereby approves the lease agreement, for a term

26 not to exceed five (5) years at an aggregate rent (inclusive of janitorial services and systems

27 furniture) for the five-year lease term in the range of $2,375,000-$2,700,000; and it be further

28 RESOLVED, That this Joint Resolution shall take effect upon passage by the General

29 Assembly; and it be further

30 RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly

31 certified copies of this resolution to the Governor, the Director of the Department of Human

32 Services, the Director of Administration, the State Budget Officer, and the Chair of the State

33 Properties Committee.

34 SECTION 5. Board of Elections, 2000 Plainfield Pike, Cranston.

1 WHEREAS, The Board of Elections currently occupies space in a state-owned building

2 located at 50 Branch Avenue in the City of Providence; and

3 WHEREAS, The property located at 50 Branch Avenue will require a significant capital

4 investment over the course of the next five (5) years; and

5 WHEREAS, The Governor's Efficiency Commission has recommended the immediate sale

6 of the property located at 50 Branch Avenue and the relocation of the Board of Elections into leased

7 space; and

8 WHEREAS, The Board of Elections recently advertised a Request for Proposals to secure

9 a new location that will feature both office and warehouse space; and

10 WHEREAS, Upon completing an evaluation of the submitted lease proposals, the Rhode

11 Island Board of Elections wishes to enter into a ten-year lease agreement with Dean Warehouse

12 Services Inc. and Berkeley Acquisition Inc. for office and warehouse space located at 2000

13 Plainfield Pike in the City of Cranston. The leased premises provide an efficient and centralized

14 location from which the Board of Elections can serve the needs of all the municipalities located in

15 the State of Rhode Island and otherwise further and fulfill the mission of the Board; and

16 WHEREAS, The aggregate rent for the ten-year lease term is anticipated to be within the

17 range of $6,000,000-$6,500,000;

18 WHEREAS, The State Properties Committee now respectfully requests the approval of the

19 House of Representatives and the Senate for the lease agreement between the Rhode Island Board

20 of Elections and Dean Warehouse Services Inc. and Berkeley Acquisition Inc., for the facility

21 located at 2000 Plainfield Pike in the City of Cranston; now therefore be it

22 RESOLVED, That this General Assembly hereby approves the lease agreement, for a term

23 not to exceed ten (10) years and at an aggregate rent in the range of $6,000,000-$6,500,000; and it

24 be further

25 RESOLVED, That this Joint Resolution shall take effect upon passage by the General

26 Assembly; arid it be further

27 RESOLVED, That the Secretary of State is hereby authorized and directed to transmit duly

28 certified copies of this resolution to the Governor, the Executive Director of the Rhode Island Board

29 of Elections, the Director of Administration, the State Budget Officer, and the Chair of the State

30 Properties Committee.

31 SECTION 6. This article shall take effect upon passage.

2 RELATING TO MARIJUANA

3 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

4 Laws in Chapter 2-26 entitled "Hemp Growth Act" are hereby amended to read as follows:

5 2-26-1. Short title.

6 This chapter shall be known and may be cited as the "Industrial Hemp Growth Act."

7 2-26-3. Definitions.

8 When used in this chapter, the following terms shall have the following meanings:

9 (1) "Applicant" means any person, firm, corporation, or other legal entity who or that, on

10 his, her, or its own behalf, or on behalf of another, has applied for permission to engage in any act

11 or activity that is regulated under the provisions of this chapter.

12 (2) "Cannabis" means all parts of the plant of the genus marijuana, also known as marijuana

13 sativa L. whether growing or not; the seeds thereof; the resin extracted from any part of the plant;

14 and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,

15 or resin regardless of cannabinoid content or cannabinoid potency including "marijuana" and

16 "industrial hemp" or "industrial hemp products" which satisfy the requirements of this chapter.

17 (3) "Cannabidiol" or "CBD" means cannabidiol (CBD) derived from a hemp plant as

18 defined in § 2-26-3, not including products derived from exempt cannabis plant material as defined

19 in 21 C.F.R. § 1308.35.

20 ~~(2)~~(4)"Department" means the office of cannabis regulation within the department of

21 business regulation.

22 ~~(3)~~(5) "Division" means the division of agriculture in the department of environmental

23 management.

24 ~~(4)~~(6) "Grower" means a person or entity who or that produces hemp for commercial

25 purposes.

26 ~~(5)~~(7) "Handler" means a person or entity who or that produces or processes hemp or

27 agricultural hemp seed ~~for processing~~ into commodities or who manufactures hemp, products~~, or~~

28 ~~agricultural hemp seed~~.

29 ~~(6)~~(8) "Hemp" or "industrial hemp" means ~~the plant of the genus cannabis and any part of~~

30 ~~such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not~~

1 ~~exceed three-tenths percent (0.3%) on a dry-weight basis of any part of the plant cannabis, or per~~

2 ~~volume or weight of marijuana product or the combined percent of delta-9 tetrahydrocannabinol~~

3 ~~and tetrahydrocannabinolic acid in any part of the plant cannabis regardless of the moisture content.~~

4 ~~Hemp is also commonly referred to in this context as "industrial hemp."~~ the plant Cannabis sativa

5 L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids,

6 isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9

7 tetrahydrocannabinol concentration of not more than three-tenths percent (0.3%) on a dry weight

8 or per volume basis regardless of moisture content, and which satisfies the requirements of this

9 chapter.

10 (9) "Hemp-derived consumable CBD product" means any product meant for ingestion,

11 including, but not limited to, concentrates, extracts, and cannabis-infused foods and products,

12 which contains cannabidiol derived from a hemp plant as defined in § 2-26-3, which shall only be

13 sold to persons age twenty-one (21) or older, and which shall not include products derived from

14 exempt cannabis plant material as defined in 21 C.F.R. § 1308.35.

15 ~~(7)~~(10) "Hemp products" or "industrial hemp products" means all products made from the

16 plants, including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, hemp-derived

17 consumable CBD products, paint, paper, construction materials, plastics, seed, seed meal, seed oil,

18 and seed certified for cultivation, which satisfy the requirements of this chapter.

19 (11) "Licensed CBD distributor" means a person licensed to distribute hemp-derived

20 consumable CBD products pursuant to this chapter.

21 (12) "Licensed CBD retailer" means a person licensed to sell hemp-derived consumable

22 CBD products pursuant to this chapter.

23 ~~(8)~~(13) "THC" means tetrahydrocannabinol, the principal psychoactive constituent of

24 cannabis.

25 ~~(9)~~(14) "THCA" means tetrahydrocannabinol acid.

26 2-26-4. Hemp an agricultural product.

27 Hemp is an agricultural product that may be grown as a crop, produced, possessed,

28 distributed, sold at retail, and commercially traded pursuant to the provisions of this chapter. Hemp

29 is subject to primary regulation by the department. The division may assist the department in the

30 regulation of hemp growth and production.

31 2-26-5. Authority over licensing and sales.

32 (a) The department shall ~~promulgate~~ prescribe rules and regulations for the licensing and

33 regulation of hemp growers, ~~and~~ handlers, licensed CBD distributors, and licensed CBD retailers

34 and or persons ~~otherwise~~ employed by the applicant not inconsistent with law, to carry into effect

1 the provision of this chapter and shall be responsible for the enforcement of such licensing ~~and~~

2 ~~regulation~~.

3 (b) All growers, ~~and~~ handlers, ~~and~~ licensed CBD distributors, and licensed CBD retailers

4 must have a hemp license issued by the department. All production, distribution and retail sale of

5 hemp-derived consumable CBD products must be consistent with any applicable state or local food

6 processing and safety regulations, and the applicant shall be responsible to ensure its compliance

7 with such regulations and any applicable food safety licensing requirements including but not

8 limited to those promulgated by the department of health.

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; 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 distribution

24 outlets.; and

25 (ii) The location of the facility and other information as may be required by the department

26 as to where the distribution or sale of hemp-derived consumable CBD products will occur.

27 (4) An explanation of the seed to sale tracking, cultivation method, extraction method, and

28 certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if

29 required by the department.

30 (5) Verification, prior to planting any seed, that the plant to be grown is of a type and

31 variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of one

32 percent (0.3%) on a dry-weight basis.

33 (6) Documentation that the licensee and/or its agents have entered into a purchase

34 agreement with a hemp handler, or processor, distributor or retailer.

1 (7) All applicants:

2 (i) Shall apply to the state police, attorney general, or local law enforcement for a National

3 Criminal Identification records check that shall include fingerprints submitted to the Federal

4 Bureau of Investigation. Upon the discovery of a disqualifying conviction defined in paragraph (iv)

5 and (v), and in accordance with the rules promulgated by the department, the state police shall

6 inform the applicant, in writing, of the nature of the conviction, and the state police shall notify the

7 department, in writing, without disclosing the nature of the conviction, that a conviction has been

8 found;

9 (ii) In those situations in which no conviction has been found, the state police shall inform

10 the applicant and the department, in writing, of this fact;

11 (iii) All applicants shall be responsible for any expense associated with the criminal

12 background check with fingerprints.

13 (iv) Any applicant who has been convicted of any felony offense under chapter 28 of title

14 21, or any person who has been convicted of murder, manslaughter, first-degree sexual assault,

15 second-degree sexual assault, first-degree child molestation, second-degree child molestation,

16 kidnapping, first-degree arson, second-degree arson, mayhem, robbery, burglary, breaking and

17 entering, assault with a dangerous weapon, or any assault and battery punishable as a felony or

18 assault with intent to commit any offense punishable as a felony, shall be disqualified from holding

19 any license or permit under this chapter. The department shall notify any applicant, in writing, of

20 ~~for~~ a denial of a license pursuant to this subsection.

21 (v) For purposes of this section, "conviction" means, in addition to judgments of conviction

22 entered by a court subsequent to a finding of guilty, or plea of guilty, those instances where the

23 defendant has entered a plea of nolo contendere and has received a jail sentence or a suspended jail

24 sentence, or those instances wherein the defendant has entered into a deferred sentence agreement

25 with the Rhode Island attorney general and the period of deferment has not been completed.

26 (8) Any other information as set forth in rules and regulations as required by the

27 department.

28 ~~(d) All employees of the applicant shall register with the Rhode Island state police.~~

29 ~~(e)~~(d) The department shall issue a hemp license to the grower or handler applicant if he,

30 she, or it meets the requirements of this chapter, upon the applicant paying a licensure fee of two

31 thousand five hundred dollars ($2,500). Said license shall be renewed every two (2) years upon

32 payment of a two thousand five hundred dollar ($2,500) renewal fee. Any licensee convicted of

33 any disqualifying offense described in subsection (c)(7)(iv) shall have his, her, or its license

34 revoked. The department shall collect a nonrefundable application fee of two hundred fifty dollars

1 ($250) for each application to obtain a license.

2 (e) Any grower or handler license applicant or license holder may also apply for, and be

3 issued one (1) CBD distributor and/or one (1) CBD retailer license at no additional cost provided

4 their grower or handler license is issued or renewed. CBD distributor and CBD retailer licenses

5 shall be renewed each year at no additional fee provided the applicant also holds or renews a grower

6 and/or handler license.

7 (f) For applicants who do not hold, renew, or receive a grower or handler license, CBD

8 distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500). Said

9 licenses shall be renewed each year upon approval by the department and payment of a five hundred

10 dollar ($500) renewal fee.

11 2-26-6. Rulemaking authority.

12 (a) The department shall adopt rules to provide for the implementation of this chapter,

13 which shall include rules to require hemp to be tested during growth for THC levels and to require

14 inspection of hemp during sowing, growing season, harvest, storage, and processing. Included in

15 these rules should be a system requiring the licensee to submit crop samples to an approved testing

16 facility, as determined by the department, for testing and verification of compliance with the limits

17 on delta-9 THC concentration.

18 (b) The department shall prescribe rules and regulations for all operational requirements

19 for licensed growers, handlers, CBD distributors and retailers, and to ensure consistency in

20 manufactured products and appropriate packaging, labeling, and placement with respect to retail

21 sales not inconsistent with law, to carry in effect the provisions of this chapter.

22 ~~(b)~~(c) The department shall not adopt under this or any other section, a rule that would

23 prohibit a person or entity to grow, or distribute or sell hemp based solely on the legal status of

24 hemp under federal law.

25 (d) The department may adopt rules and regulations based on federal law provided those

26 rules and regulations are designed to comply with federal guidance and mitigate federal

27 enforcement against the licenses issued under this chapter.

28 (e) All new and revised rules and regulations promulgated by the department of business

29 regulation and/or the department of health pursuant to this chapter shall be subject to approval by

30 the general assembly prior to enactment.

31 2-26-7. ~~Registration~~Licensure.

32 (a) Except as provided in this section, beginning sixty (60) days after the effective date of

33 this chapter, the department shall accept the application for licensure to cultivate hemp submitted

34 by the applicant.

1 (b) A person or entity ~~registered with~~ licensed by the department pursuant to this chapter

2 shall allow hemp crops or hemp products, throughout sowing, year-long growing seasons, harvest

3 storage, and processing, manufacturing, and retail facilities, to be inspected and tested by and at

4 the discretion of the department and as required pursuant to any applicable state or local food

5 processing and safety regulations including but not limited to those promulgated by the Rhode

6 Island department of health.

7 SECTION 2. Chapter 2-26 of the General Laws entitled "Hemp Growth Act" is hereby

8 amended by adding thereto the following sections:

9 2-26-10. Enforcement of violations of chapter.

10 (a)(1) Notwithstanding any other provision of this chapter, if the director of the department

11 or his or her designee has cause to believe that a violation of any provision of this chapter 26 of

12 title 2 or any regulations promulgated hereunder has occurred by a licensee that is under the

13 department's jurisdiction pursuant to this chapter, or that any person or entity is conducting any

14 activities requiring licensure by the department under this chapter or the regulations promulgated

15 hereunder without such licensure, the director or his or her designee may, in accordance with the

16 requirements of the administrative procedures act, chapter 35 of title 42:

17 (i) Revoke or suspend a license;

18 (ii) Levy an administrative penalty in an amount established pursuant to regulations

19 promulgated by the department;

20 (iii) Order the violator to cease and desist such actions;

21 (iv) Require a licensee or person or entity conducting any activities requiring licensure

22 under chapter 26 of title 2 to take such actions as are necessary to comply with such chapter and

23 the regulations promulgated thereunder; or

24 (v) Any combination of the above penalties.

25 (2) If the director of the department finds that public health, safety, or welfare requires

26 emergency action, and incorporates a finding to that effect in his or her order, summary suspension

27 of license and/or cease and desist may be ordered pending proceedings for revocation or other

28 action.

29 SECTION 3. Section 21-28-1.02 of Chapter 21-28 of the General Laws entitled "Uniform

30 Controlled Substances Act" is hereby amended to read as follows:

31 21-28-1.02. Definitions. [Effective until January 1, 2023.]

32 Unless the context otherwise requires, the words and phrases as defined in this section are

33 used in this chapter in the sense given them in the following definitions:

34 (1) "Administer" refers to the direct application of controlled substances to the body of a

1 patient or research subject by:

2 (i) A practitioner, or, in his or her presence by his or her authorized agent; or

3 (ii) The patient or research subject at the direction and in the presence of the practitioner

4 whether the application is by injection, inhalation, ingestion, or any other means.

5 (2) "Agent" means an authorized person who acts on behalf of, or at the direction of, a

6 manufacturer, wholesaler, distributor, or dispenser; except that these terms do not include a

7 common or contract carrier or warehouse operator, when acting in the usual and lawful course of

8 the carrier's or warehouse operator's business.

9 (3) "Apothecary" means a registered pharmacist as defined by the laws of this state and,

10 where the context requires, the owner of a licensed pharmacy or other place of business where

11 controlled substances are compounded or dispensed by a registered pharmacist; and includes

12 registered assistant pharmacists as defined by existing law, but nothing in this chapter shall be

13 construed as conferring on a person who is not registered as a pharmacist any authority, right, or

14 privilege that is not granted to him or her by the pharmacy laws of the state.

15 (4) "Automated data processing system" means a system utilizing computer software and

16 hardware for the purposes of record keeping.

17 (5) "Certified law enforcement prescription drug diversion investigator" means a certified

18 law enforcement officer assigned by his or her qualified law enforcement agency to investigate

19 prescription drug diversion.

20 (6) "Computer" means programmable electronic device capable of multi-functions,

21 including, but not limited to: storage, retrieval, and processing of information.

22 (7) "Control" means to add a drug or other substance or immediate precursor to a schedule

23 under this chapter, whether by transfer from another schedule or otherwise.

24 (8) "Controlled substance" means a drug, substance, immediate precursor, or synthetic drug

25 in schedules I – V of this chapter. The term shall not include distilled spirits, wine, or malt

26 beverages, as those terms are defined or used in chapter 1 of title 3, nor tobacco.

27 (9) "Co-prescribing" means issuing a prescription for an opioid antagonist along with a

28 prescription for an opioid analgesic.

29 (10) "Counterfeit substance" means a controlled substance that, or the container or labeling

30 of which, without authorization bears the trademark, trade name, or other identifying mark, imprint,

31 number, or device, or any likeness of them, of a manufacturer, distributor, or dispenser, other than

32 the person or persons who in fact manufactured, distributed, or dispensed the substance and that

33 thereby falsely purports or is represented to be the product of, or to have been distributed by, the

34 other manufacturer, distributor, or dispenser, or which substance is falsely purported to be or

1 represented to be one of the controlled substances by a manufacturer, distributor, or dispenser.

2 (11) "CRT" means cathode ray tube used to impose visual information on a screen.

3 (12) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a

4 controlled substance or imitation controlled substance, whether or not there exists an agency

5 relationship.

6 (13) "Department" means the department of health of this state.

7 (14) "Depressant or stimulant drug" means:

8 (i) A drug that contains any quantity of:

9 (A) Barbituric acid or derivatives, compounds, mixtures, or preparations of barbituric acid;

10 and

11 (B) "Barbiturate" or "barbiturates" includes all hypnotic and/or somnifacient drugs,

12 whether or not derivatives of barbituric acid, except that this definition shall not include bromides

13 and narcotics.

14 (ii) A drug that contains any quantity of:

15 (A) Amphetamine or any of its optical isomers;

16 (B) Any salt of amphetamine and/or desoxyephedrine or any salt of an optical isomer of

17 amphetamine and/or desoxyephedrine, or any compound, mixture, or preparation of them.

18 (iii) A drug that contains any quantity of coca leaves. "Coca leaves" includes cocaine, or

19 any compound, manufacture, salt, derivative, mixture, or preparation of coca leaves, except

20 derivatives of coca leaves, that do not contain cocaine, ecgonine, or substance from which cocaine

21 or ecgonine may be synthesized or made.

22 (iv) Any other drug or substance that contains any quantity of a substance that the attorney

23 general of the United States, or the director of health, after investigation, has found to have, or by

24 regulation designates as having, a potential for abuse because of its depressant or stimulant effect

25 on the central nervous system.

26 (15) "Director" means the director of health.

27 (16) "Dispense" means to deliver, distribute, leave with, give away, or dispose of a

28 controlled substance to the ultimate user or human research subject by or pursuant to the lawful

29 order of a practitioner, including the packaging, labeling, or compounding necessary to prepare the

30 substance for that delivery.

31 (17) "Dispenser" is a practitioner who delivers a controlled substance to the ultimate user

32 or human research subject.

33 (18) "Distribute" means to deliver (other than by administering or dispensing) a controlled

34 substance or an imitation controlled substance and includes actual constructive, or attempted

1 transfer. "Distributor" means a person who so delivers a controlled substance or an imitation

2 controlled substance.

3 (19) "Downtime" means that period of time when a computer is not operable.

4 (20) "Drug addicted person" means a person who exhibits a maladaptive pattern of

5 behavior resulting from drug use, including one or more of the following: impaired control over

6 drug use; compulsive use; and/or continued use despite harm, and craving.

7 (21) "Drug Enforcement Administration" means the Drug Enforcement Administration

8 United States Department of Justice or its successor.

9 (22) "Federal law" means the Comprehensive Drug Abuse Prevention and Control Act of

10 1970, (84 stat. 1236) (see generally 21 U.S.C. § 801 et seq.), and all regulations pertaining to that

11 federal act.

12 (23) "Hardware" means the fixed component parts of a computer.

13 (24) "Hospital" means an institution as defined in chapter 17 of title 23.

14 (25) "Imitation controlled substance" means a substance that is not a controlled substance,

15 that by dosage unit, appearance (including color, shape, size, and markings), or by representations

16 made, would lead a reasonable person to believe that the substance is a controlled substance and,

17 which imitation controlled substances contain substances that if ingested, could be injurious to the

18 health of a person. In those cases when the appearance of the dosage unit is not reasonably sufficient

19 to establish that the substance is an "imitation controlled substance" (for example in the case of

20 powder or liquid), the court or authority concerned should consider, in addition to all other logically

21 relevant factors, the following factors as related to "representations made" in determining whether

22 the substance is an "imitation controlled substance":

23 (i) Statement made by an owner, possessor, transferor, recipient, or by anyone else in

24 control of the substance concerning the nature of the substance, or its use or effect.

25 (ii) Statements made by the owner, possessor, or transferor, to the recipient that the

26 substance may be resold for substantial profit.

27 (iii) Whether the substance is packaged in a manner reasonably similar to packaging of

28 illicit controlled substances.

29 (iv) Whether the distribution or attempted distribution included an exchange of or demand

30 for money or other property as consideration, and whether the amount of the consideration was

31 substantially greater than the reasonable value of the non-controlled substance.

32 (26) "Immediate precursor" means a substance:

33 (i) That the director of health has found to be and by regulation designated as being the

34 principal compound used, or produced primarily for use, in the manufacture of a controlled

1 substance;

2 (ii) That is an immediate chemical intermediary used or likely to be used in the manufacture

3 of those controlled substances; and

4 (iii) The control of which is necessary to prevent, curtail, or limit the manufacture of that

5 controlled substance.

6 (27) "Laboratory" means a laboratory approved by the department of health as proper to be

7 entrusted with controlled substances and the use of controlled substances for scientific and medical

8 purposes and for the purposes of instruction.

9 (28) "Manufacture" means the production, preparation, propagation, cultivation,

10 compounding, or processing of a drug or other substance, including an imitation controlled

11 substance, either directly or indirectly or by extraction from substances of natural origin, or

12 independently by means of chemical synthesis or by a combination of extraction and chemical

13 synthesis and includes any packaging or repackaging of the substance or labeling or relabeling of

14 its container in conformity with the general laws of this state except by a practitioner as an incident

15 to his or her administration or dispensing of the drug or substance in the course of his or her

16 professional practice.

17 (29) "Manufacturer" means a person who manufactures but does not include an apothecary

18 who compounds controlled substances to be sold or dispensed on prescriptions.

19 (30) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

20 the seeds of the plant; the resin extracted from any part of the plant; and every compound,

21 manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not

22 include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

23 seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of

24 mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the

25 plant which is incapable of germination. Marijuana shall not include "industrial hemp" or

26 "industrial hemp products" which satisfy the requirements of chapter 26 of title 2.

27 (31) "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 synthesis

29 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.

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 (32) "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 for

6 an official form, if order forms are authorized and required by federal law, and if no order form is

7 provided then on an official form provided for that purpose by the director of health.

8 (33) "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 (34) "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 department.

15 (35) "Opioid antagonist" means naloxone hydrochloride and any other drug approved by

16 the United States Food and Drug Administration for the treatment of opioid overdose.

17 (36) "Opium poppy" means the plant of the species papaver somniferum L., except the

18 seeds of the plant.

19 (37) "Ounce" means an avoirdupois ounce as applied to solids and semi-solids, and a fluid

20 ounce as applied to liquids.

21 (38) "Person" means any corporation, association, partnership, or one or more individuals.

22 (39) "Physical dependence" means a state of adaptation that is manifested by a drug class

23 specific withdrawal syndrome that can be produced by abrupt cessation, rapid dose reduction,

24 decreasing blood level of the drug, and/or administration of an antagonist.

25 (40) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.

26 (41) "Practitioner" means:

27 (i) A physician, osteopath, dentist, chiropodist, veterinarian, scientific investigator, or other

28 person licensed, registered or permitted to distribute, dispense, conduct research with respect to or

29 to administer a controlled substance in the course of professional practice or research in this state.

30 (ii) A pharmacy, hospital, or other institution licensed, registered or permitted to distribute,

31 dispense, conduct research with respect to, or to administer a controlled substance in the course of

32 professional practice or research in this state.

33 (42) "Printout" means a hard copy produced by computer that is readable without the aid

34 of any special device.

1 (43) "Production" includes the manufacture, planting, cultivation, growing, or harvesting

2 of a controlled substance.

3 (44) "Qualified law enforcement agency" means the U.S. Food and Drug Administration,

4 Drug Enforcement Administration, Federal Bureau of Investigation, Office of Inspector General of

5 the U.S. Department of Health & Human Services, or the Medicaid Fraud and Patient Abuse Unit

6 in the Office of the Attorney General.

7 (45) "Researcher" means a person authorized by the director of health to conduct a

8 laboratory as defined in this chapter.

9 (46) "Sell" includes sale, barter, gift, transfer, or delivery in any manner to another, or to

10 offer or agree to do the same.

11 (47) "Software" means programs, procedures and storage of required information data.

12 (48) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic

13 cathinones as provided for in schedule I.

14 (49) "Ultimate user" means a person who lawfully possesses a controlled substance for his

15 or her own use or for the use of a member of his or her household, or for administering to an animal

16 owned by him or her or by a member of his or her household.

17 (50) "Wholesaler" means a person who sells, vends, or distributes at wholesale, or as a

18 jobber, broker agent, or distributor, or for resale in any manner in this state any controlled

19 substance.

20 21-28-1.02. Definitions. [Effective January 1, 2023.]

21 Unless the context otherwise requires, the words and phrases as defined in this section are

22 used in this chapter in the sense given them in the following definitions:

23 (1) "Administer" refers to the direct application of controlled substances to the body of a

24 patient or research subject by:

25 (i) A practitioner, or, in his or her presence by his or her authorized agent; or

26 (ii) The patient or research subject at the direction and in the presence of the practitioner

27 whether the application is by injection, inhalation, ingestion, or any other means.

28 (2) "Agent" means an authorized person who acts on behalf of, or at the direction of, a

29 manufacturer, wholesaler, distributor, or dispenser; except that these terms do not include a

30 common or contract carrier or warehouse operator, when acting in the usual and lawful course of

31 the carrier's or warehouse operator's business.

32 (3) "Apothecary" means a registered pharmacist as defined by the laws of this state and,

33 where the context requires, the owner of a licensed pharmacy or other place of business where

1 registered assistant pharmacists as defined by existing law, but nothing in this chapter shall be

2 construed as conferring on a person who is not registered as a pharmacist any authority, right, or

3 privilege that is not granted to him or her by the pharmacy laws of the state.

4 (4) "Automated data processing system" means a system utilizing computer software and

5 hardware for the purposes of record keeping.

6 (5) "Computer" means programmable electronic device capable of multi-functions,

7 including, but not limited to: storage, retrieval, and processing of information.

8 (6) "Control" means to add a drug or other substance or immediate precursor to a schedule

9 under this chapter, whether by transfer from another schedule or otherwise.

10 (7) "Controlled substance" means a drug, substance, immediate precursor, or synthetic drug

11 in schedules I – V of this chapter. The term shall not include distilled spirits, wine, or malt

12 beverages, as those terms are defined or used in chapter 1 of title 3, nor tobacco.

13 (8) "Co-prescribing" means issuing a prescription for an opioid antagonist along with a

14 prescription for an opioid analgesic.

15 (9) "Counterfeit substance" means a controlled substance that, or the container or labeling

16 of which, without authorization bears the trademark, trade name, or other identifying mark, imprint,

17 number, or device, or any likeness of them, of a manufacturer, distributor, or dispenser, other than

18 the person or persons who in fact manufactured, distributed, or dispensed the substance and that

19 thereby falsely purports or is represented to be the product of, or to have been distributed by, the

20 other manufacturer, distributor, or dispenser, or which substance is falsely purported to be or

21 represented to be one of the controlled substances by a manufacturer, distributor, or dispenser.

22 (10) "CRT" means cathode ray tube used to impose visual information on a screen.

23 (11) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a

24 controlled substance or imitation controlled substance, whether or not there exists an agency

25 relationship.

26 (12) "Department" means the department of health of this state.

27 (13) "Depressant or stimulant drug" means:

28 (i) A drug that contains any quantity of:

29 (A) Barbituric acid or derivatives, compounds, mixtures, or preparations of barbituric acid;

30 and

31 (B) "Barbiturate" or "barbiturates" includes all hypnotic and/or somnifacient drugs,

32 whether or not derivatives of barbituric acid, except that this definition shall not include bromides

33 and narcotics.

1 (A) Amphetamine or any of its optical isomers;

2 (B) Any salt of amphetamine and/or desoxyephedrine or any salt of an optical isomer of

3 amphetamine and/or desoxyephedrine, or any compound, mixture, or preparation of them.

4 (iii) A drug that contains any quantity of coca leaves. "Coca leaves" includes cocaine, or

5 any compound, manufacture, salt, derivative, mixture, or preparation of coca leaves, except

6 derivatives of coca leaves, that do not contain cocaine, ecgonine, or substance from which cocaine

7 or ecgonine may be synthesized or made.

8 (iv) Any other drug or substance that contains any quantity of a substance that the attorney

9 general of the United States, or the director of health, after investigation, has found to have, or by

10 regulation designates as having, a potential for abuse because of its depressant or stimulant effect

11 on the central nervous system.

12 (14) "Director" means the director of health.

13 (15) "Dispense" means to deliver, distribute, leave with, give away, or dispose of a

14 controlled substance to the ultimate user or human research subject by or pursuant to the lawful

15 order of a practitioner, including the packaging, labeling, or compounding necessary to prepare the

16 substance for that delivery.

17 (16) "Dispenser" is a practitioner who delivers a controlled substance to the ultimate user

18 or human research subject.

19 (17) "Distribute" means to deliver (other than by administering or dispensing) a controlled

20 substance or an imitation controlled substance and includes actual constructive, or attempted

21 transfer. "Distributor" means a person who so delivers a controlled substance or an imitation

22 controlled substance.

23 (18) "Downtime" means that period of time when a computer is not operable.

24 (19) "Drug addicted person" means a person who exhibits a maladaptive pattern of

25 behavior resulting from drug use, including one or more of the following: impaired control over

26 drug use; compulsive use; and/or continued use despite harm, and craving.

27 (20) "Drug Enforcement Administration" means the Drug Enforcement Administration

28 United States Department of Justice or its successor.

29 (21) "Federal law" means the Comprehensive Drug Abuse Prevention and Control Act of

30 1970, (84 stat. 1236) (see generally 21 U.S.C. § 801 et seq.), and all regulations pertaining to that

31 federal act.

32 (22) "Hardware" means the fixed component parts of a computer.

33 (23) "Hospital" means an institution as defined in chapter 17 of title 23.

34 (24) "Imitation controlled substance" means a substance that is not a controlled substance,

1 that by dosage unit, appearance (including color, shape, size, and markings), or by representations

2 made, would lead a reasonable person to believe that the substance is a controlled substance and,

3 which imitation controlled substances contain substances that if ingested, could be injurious to the

4 health of a person. In those cases when the appearance of the dosage unit is not reasonably sufficient

5 to establish that the substance is an "imitation controlled substance" (for example in the case of

6 powder or liquid), the court or authority concerned should consider, in addition to all other logically

7 relevant factors, the following factors as related to "representations made" in determining whether

8 the substance is an "imitation controlled substance":

9 (i) Statement made by an owner, possessor, transferor, recipient, or by anyone else in

10 control of the substance concerning the nature of the substance, or its use or effect.

11 (ii) Statements made by the owner, possessor, or transferor, to the recipient that the

12 substance may be resold for substantial profit.

13 (iii) Whether the substance is packaged in a manner reasonably similar to packaging of

14 illicit controlled substances.

15 (iv) Whether the distribution or attempted distribution included an exchange of or demand

16 for money or other property as consideration, and whether the amount of the consideration was

17 substantially greater than the reasonable value of the non-controlled substance.

18 (25) "Immediate precursor" means a substance:

19 (i) That the director of health has found to be and by regulation designated as being the

20 principal compound used, or produced primarily for use, in the manufacture of a controlled

21 substance;

22 (ii) That is an immediate chemical intermediary used or likely to be used in the manufacture

23 of those controlled substances; and

24 (iii) The control of which is necessary to prevent, curtail, or limit the manufacture of that

25 controlled substance.

26 (26) "Laboratory" means a laboratory approved by the department of health as proper to be

27 entrusted with controlled substances and the use of controlled substances for scientific and medical

28 purposes and for the purposes of instruction.

29 (27) "Manufacture" means the production, preparation, propagation, cultivation,

30 compounding, or processing of a drug or other substance, including an imitation controlled

31 substance, either directly or indirectly or by extraction from substances of natural origin, or

32 independently by means of chemical synthesis or by a combination of extraction and chemical

33 synthesis and includes any packaging or repackaging of the substance or labeling or relabeling of

34 its container in conformity with the general laws of this state except by a practitioner as an incident

1 to his or her administration or dispensing of the drug or substance in the course of his or her

2 professional practice.

3 (28) "Manufacturer" means a person who manufactures but does not include an apothecary

4 who compounds controlled substances to be sold or dispensed on prescriptions.

5 (29) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

6 the seeds of the plant; the resin extracted from any part of the plant; and every compound,

7 manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not

8 include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

9 seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of

10 mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the

11 plant which is incapable of germination. Marijuana shall not include "industrial hemp" or

12 "industrial hemp products" which satisfy the requirements of chapter 26 of title 2.

13 (30) "Narcotic drug" means any of the following, whether produced directly or indirectly

14 by extraction from substances of vegetable origin, or independently by means of chemical synthesis

15 or by a combination of extraction and chemical synthesis:

16 (i) Opium and opiates.

17 (ii) A compound, manufacture, salt, derivative, or preparation of opium or opiates.

18 (iii) A substance (and any compound, manufacture, salt, derivative, or preparation of it)

19 that is chemically identical with any of the substances referred to in paragraphs (i) and (ii) of this

20 subdivision.

21 (iv) Any other substance that the attorney general of the United States, or his or her

22 successor, or the director of health, after investigation, has found to have, and by regulation

23 designates as having, a potential for abuse similar to opium and opiates.

24 (31) "Official written order" means an order written on a form provided for that purpose

25 by the Drug Enforcement Administration under any laws of the United States making provision for

26 an official form, if order forms are authorized and required by federal law, and if no order form is

27 provided then on an official form provided for that purpose by the director of health.

28 (32) "Opiate" means any substance having an addiction-forming or addiction-sustaining

29 liability similar to morphine or being capable of conversion into a drug having addiction-forming

30 or addiction-sustaining liability.

31 (33) "Opioid analgesics" means and includes, but is not limited to, the medicines

32 buprenophine, butorphanol, codeine, hydrocodone, hydromorphone, levorphanol, meperidine,

33 methadone, morphine, nalbuphine, oxycodone, oxymorphone, pentazocine, propoxyphene as well

34 as their brand names, isomers, and combinations, or other medications approved by the department.

1 (34) "Opioid antagonist" means naloxone hydrochloride and any other drug approved by

2 the United States Food and Drug Administration for the treatment of opioid overdose.

3 (35) "Opium poppy" means the plant of the species papaver somniferum L., except the

4 seeds of the plant.

5 (36) "Ounce" means an avoirdupois ounce as applied to solids and semi-solids, and a fluid

6 ounce as applied to liquids.

7 (37) "Person" means any corporation, association, partnership, or one or more individuals.

8 (38) "Physical dependence" means a state of adaptation that is manifested by a drug class

9 specific withdrawal syndrome that can be produced by abrupt cessation, rapid dose reduction,

10 decreasing blood level of the drug, and/or administration of an antagonist.

11 (39) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.

12 (40) "Practitioner" means:

13 (i)(ii) A physician, osteopath, dentist, chiropodist, veterinarian, scientific investigator, or

14 other person licensed, registered or permitted to distribute, dispense, conduct research with respect

15 to or to administer a controlled substance in the course of professional practice or research in this

16 state.

17 (41) "Printout" means a hard copy produced by computer that is readable without the aid

18 of any special device.

19 (42) "Production" includes the manufacture, planting, cultivation, growing, or harvesting

20 of a controlled substance.

21 (43) "Researcher" means a person authorized by the director of health to conduct a

22 laboratory as defined in this chapter.

23 (44) "Sell" includes sale, barter, gift, transfer, or delivery in any manner to another, or to

24 offer or agree to do the same.

25 (45) "Software" means programs, procedures and storage of required information data.

26 (46) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic

27 cathinones as provided for in schedule I.

28 (47) "Ultimate user" means a person who lawfully possesses a controlled substance for his

29 or her own use or for the use of a member of his or her household, or for administering to an animal

30 owned by him or her or by a member of his or her household.

31 (48) "Wholesaler" means a person who sells, vends, or distributes at wholesale, or as a

32 jobber, broker agent, or distributor, or for resale in any manner in this state any controlled

33 substance.

34 SECTION 4. Section 21-28.5-2 of the General Laws in Chapter 21-28.5 entitled "Sale of

1 Drug Paraphernalia" is hereby amended to read as follows:

2 21-28.5-2. Manufacture or delivery of drug paraphernalia – Penalty.

3 It is unlawful for any person to deliver, sell, possess with intent to deliver, or sell, or

4 manufacture with intent to deliver, or sell drug paraphernalia, knowing that it will be used to plant,

5 propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare,

6 test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or introduce into the human

7 body a controlled substance in violation of chapter 28 of this title. A violation of this section shall

8 be punishable by a fine not exceeding five thousand dollars ($5,000) or imprisonment not exceeding

9 two (2) years, or both.

10 Notwithstanding any other provision of the general laws, the sale, manufacture, or delivery

11 of drug paraphernalia to a person acting in accordance with chapter 28.6 of title 21 shall not be

12 considered a violation of this chapter.

13 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,

14 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 and 21-28.6-17 of the

15 General Laws in Chapter 21-28.6 entitled "The Edward O. Hawkins and Thomas C. Slater Medical

16 Marijuana Act" are hereby amended to read as follows:

17 21-28.6-3. Definitions.

18 For the purposes of this chapter:

19 (1) "Authorized purchaser" means a natural person who is at least twenty-one (21) years

20 old and who is registered with the department of health for the purposes of assisting a qualifying

21 patient in purchasing marijuana from a compassion center. An authorized purchaser may assist no

22 more than one patient, and is prohibited from consuming marijuana obtained for the use of the

23 qualifying patient. An authorized purchaser shall be registered with the department of health and

24 shall possesses a valid registry identification card.

25 (2) "Cannabis" means all parts of the plant of the genus marijuana, also known as marijuana

26 sativa L. whether growing or not; the seeds thereof; the resin extracted from any part of the plant;

27 and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,

28 or resin regardless of cannabinoid content or cannabinoid potency including "marijuana", and

29 "industrial hemp" or "industrial hemp products" which satisfy the requirements of chapter 26 of

30 title 2.

31 (3) "Cannabis testing laboratory" means a third-party analytical testing laboratory licensed

32 by the department of health, in coordination with the department of business regulation, to collect

33 and test samples of cannabis.

34 ~~(2)~~(4) "Cardholder" means a person who has been registered or licensed with the

1 department of health or the department of business regulation pursuant to this chapter and possesses

2 a valid registry identification card or license.

3 ~~(3)~~(5) "Commercial unit" means a building, ~~office, suite,~~ or ~~room~~ other space within a

4 commercial or industrial building, for use by one business or person and is rented or owned by that

5 business or person.

6 ~~(4)~~(6)(i) "Compassion center" means a not-for-profit corporation, subject to the provisions

7 of chapter 6 of title 7, and ~~registered~~ is licensed under § 21-28.6-12, that acquires, possesses,

8 cultivates, manufactures, delivers, transfers, transports, supplies, or dispenses medical marijuana,

9 and/or related supplies and educational materials, to patient cardholders and/or their registered

10 caregiver, cardholder or authorized purchaser.

11 (ii) "Compassion center cardholder" means a principal officer, board member, employee,

12 volunteer, or agent of a compassion center who has registered with the ~~department of health or the~~

13 department of business regulation and has been issued and possesses a valid, registry identification

14 card.

15 ~~(5)~~(7) "Debilitating medical condition" means:

16 (i) Cancer, glaucoma, positive status for human immunodeficiency virus, acquired immune

17 deficiency syndrome, Hepatitis C, post-traumatic stress disorder, or the treatment of these

18 conditions;

19 (ii) A chronic or debilitating disease or medical condition, or its treatment, that produces

20 one or more of the following: cachexia or wasting syndrome; severe, debilitating, chronic pain;

21 severe nausea; seizures, including but not limited to, those characteristic of epilepsy; or severe and

22 persistent muscle spasms, including but not limited to, those characteristic of multiple sclerosis or

23 Crohn's disease; or agitation of Alzheimer's Disease; or

24 (iii) Any other medical condition or its treatment approved by the department of health, as

25 provided for in § 21-28.6-5.

26 ~~(6)~~(8) "Department of business regulation" means the office of cannabis regulation within

27 the Rhode Island department of business regulation or its successor agency.

28 ~~(7)~~(9) "Department of health" means the Rhode Island department of health or its successor

29 agency.

30 ~~(8)~~(10) "Department of public safety" means the Rhode Island department of public safety

31 or its successor agency.

32 ~~(9)~~(11) "Dried~~, useable~~ marijuana" means the dried leaves and flowers of the marijuana

33 plant as defined by regulations promulgated by the department of business regulation ~~health~~.

1 used or intended for use by one family or household, or by no more than three (3) unrelated

2 individuals, with facilities for living, sleeping, sanitation, cooking, and eating.

3 ~~(11)~~(13) "Equivalent amount" means the portion of usable marijuana, be it in extracted,

4 edible, concentrated, or any other form, found to be equal to a portion of dried~~, usable~~ marijuana,

5 as defined by regulations promulgated by the department of business regulation ~~health~~.

6 ~~(12)"Licensed cultivator" means a person, as identified in § 43-3-6, who has been licensed~~

7 ~~by the department of business regulation to cultivate marijuana pursuant to § 21-28.6-16.~~

8 ~~(13) "Marijuana" has the meaning given that term in § 21-28-1.02(30).~~

9 ~~(14) "Mature marijuana plant" means a marijuana plant that has flowers or buds that are~~

10 ~~readily observable by an unaided visual examination.~~

11 ~~(15)~~(14) ~~"Medical marijuana testing laboratory" means a third-party analytical testing~~

12 ~~laboratory licensed by the department of health to collect and test samples of medical marijuana~~

13 ~~pursuant to regulations promulgated by the department.~~ "Immature marijuana plant" means a

14 marijuana plant, rooted or unrooted, with no observable flower or buds.

15 (15) "Licensed medical marijuana cultivator" means a person or entity, as identified in §

16 43-3-6, who has been licensed by the department of business regulation to cultivate medical

17 marijuana pursuant to § 21-28.6-16.

18 (16) "Marijuana" has the meaning given that term in § 21-28-1.02.

19 (17) "Marijuana establishment licensee" means any person or entity licensed by the

20 department of business regulation under chapter 28.6 of title 21 whose license permits it to engage

21 in or conduct activities in connection with the medical marijuana program. "Marijuana

22 establishment licensees" shall include compassion centers, medical marijuana cultivators, and

23 cannabis testing laboratories.

24 (18) "Mature marijuana plant" means a marijuana plant that has flowers or buds that are

25 readily observable by an unaided visual examination.

26 (19) "Medical marijuana emporium" means any establishment, facility or club, whether

27 operated for-profit or nonprofit, or any commercial unit, at which the sale, distribution, transfer or

28 use of medical marijuana or medical marijuana products is proposed and/or occurs to, by or among

29 registered patients, registered caregivers, authorized purchaser cardholders or any other person.

30 This shall not include a compassion center regulated and licensed by the department of business

31 regulation pursuant to the terms of this chapter.

32 (20) "Medical marijuana" means marijuana and marijuana products which satisfy the

33 requirements of this chapter and have been given the designation of "medical marijuana" due to

1 and may only be sold to or possessed by patient cardholders, or their registered caregiver, or

2 authorized purchaser in accordance with this chapter. Medical marijuana may not be sold to,

3 possessed by, manufactured by, or used except as permitted under this chapter.

4 (21) "Medical marijuana plant tag set" or "plant tag" means any tag, identifier, registration,

5 certificate, or inventory tracking system authorized or issued by the department or which the

6 department requires be used for the lawful possession and cultivation of medical marijuana plants

7 in accordance with this chapter.

8 ~~(16)~~(22) "Medical use" means the acquisition, possession, cultivation, manufacture, use,

9 delivery, transfer, or transportation of medical marijuana or paraphernalia relating to the

10 consumption of marijuana to alleviate a patient cardholder's debilitating medical condition or

11 symptoms associated with the medical condition in accordance with the provisions of this chapter.

12 ~~(17)~~(23) "Practitioner" means a person who is licensed with authority to prescribe drugs

13 pursuant to chapters 34, 37, and 54 of title 5, who may provide a qualifying patient with a written

14 certification in accordance with regulations promulgated by the department of health ~~or a physician~~

15 ~~licensed with authority to prescribe drugs in Massachusetts or Connecticut~~.

16 ~~(18)~~(24) "Primary caregiver" means a natural person who is at least twenty-one (21) years

17 old~~. A primary caregiver~~ who is registered under this chapter in order to, and who may, assist one

18 qualifying patient, but no more than five (5) qualifying patients with their medical use of marijuana,

19 provided that a qualified patient may also serve as his or her own primary caregiver subject to the

20 registration and requirements set forth in § 21-28.6-4.

21 ~~(19)~~(25) "Qualifying patient" means a person who has been ~~diagnosed~~ certified by a

22 practitioner as having a debilitating medical condition and is a resident of Rhode Island.

23 ~~(20)~~(26) "Registry identification card" means a document issued by the department of

24 health or the department of business regulation, as applicable, that identifies a person as a registered

25 qualifying patient, a registered primary caregiver, or authorized purchaser, or a document issued

26 by the department of business regulation or department of health that identifies a person as a

27 registered principal officer, board member, employee, volunteer, or agent of a compassion center,

28 licensed medical marijuana cultivator, cannabis testing lab, or any other medical marijuana

29 licensee.

30 ~~(21) "Seedling" means a marijuana plant with no observable flowers or buds.~~

31 ~~(22)~~(27) "Unusable marijuana" means marijuana seeds, stalks, ~~seedlings~~ and unusable

32 roots and shall not count towards any weight-based possession limits established in the chapter.

33 ~~(23)~~(28) "Usable marijuana" means the ~~dried~~ leaves and flowers of the marijuana plant,

34 and any mixture or preparation thereof, but does not include the seeds, stalks, and roots of the plant.

1 (~~24)~~(29) "Wet marijuana" means the harvested leaves and flowers of the marijuana plant

2 before they have reached a dry ~~useable~~ state, as defined by regulations promulgated by the

3 ~~departments~~ department of health and department of business regulation.

4 ~~(25)~~(30) "Written certification" means ~~the qualifying patient's medical records, and~~ a

5 statement signed by a practitioner, stating that, in the practitioner's professional opinion, the

6 potential benefits of the medical use of marijuana would likely outweigh the health risks for the

7 qualifying patient. A written certification shall be made only in the course of a bona fide,

8 practitioner-patient relationship after the practitioner has completed a full assessment of the

9 qualifying patient's medical history. The written certification shall specify the qualifying patient's

10 debilitating medical condition or conditions which may include the qualifying patient's relevant

11 medical records.

12 21-28.6-4. Protections for the medical use of marijuana.

13 (a) A qualifying patient cardholder who has in his or her possession a registry identification

14 card shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or

15 privilege, including, but not limited to, civil penalty or disciplinary action by a business or

16 occupational or professional licensing board or bureau, solely for the medical use of medical

17 marijuana; provided;

18 ~~(1) Before July 1, 2019,~~ that the ~~The~~ qualifying patient cardholder possesses an amount of

19 medical marijuana that does not exceed twelve (12) mature marijuana plants and twelve (12)

20 immature marijuana plants that are accompanied by valid medical marijuana plant tags, two and

21 one-half ~~(2.5)~~ ounces (2.5 oz.) of dried ~~usable~~ medical marijuana, or its equivalent amount which

22 satisfies the requirements of this chapter, and an amount of wet medical marijuana to be set by

23 regulations promulgated by the ~~departments~~ department of ~~health and~~ business regulation. Said

24 plants shall be stored in an indoor facility. Marijuana plants and the marijuana they produce shall

25 only be grown, stored, manufactured, and processed in accordance with regulations promulgated

26 by the department of business regulation; and

27 (b) An authorized purchaser who has in his or her possession a registry identification card

28 shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege,

29 including, but not limited to, civil penalty or disciplinary action by a business or occupational or

30 professional licensing board or bureau, for the possession of medical marijuana; provided that the

31 authorized purchaser possesses an amount of medical marijuana that does not exceed two and one-

32 half (2.5) ounces of usable medical marijuana, or its equivalent amount, and this medical marijuana

33 was purchased legally from a compassion center for the use of their designated qualifying patient.

34 (c) A qualifying patient cardholder, who has in his or her possession a registry

1 identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied

2 any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business

3 or occupational or professional licensing board or bureau, for selling, giving, or distributing, on or

4 before December 31, 2016 to a compassion center cardholder, medical marijuana of the type, and

5 in an amount not to exceed, that set forth in subsection (a), that he or she has cultivated or

6 manufactured pursuant to this chapter.

7 (d) No school, ~~employer,~~ or landlord may refuse to enroll, ~~employ,~~ or lease to, or otherwise

8 penalize, a person solely for his or her status as a cardholder. Provided, however, due to the safety

9 and welfare concern for other tenants, the property, and the public, as a whole, a landlord may have

10 the discretion not to lease, or continue to lease, to a cardholder who cultivates, manufactures,

11 processes, smokes, or vaporizes medical marijuana in the leased premises.

12 (e) No employer may refuse to employ, or otherwise penalize, a person solely for his or

13 her status as a cardholder, except:

14 (1) To the extent employer action is taken with respect to such person's:

15 (i) Use or possession of marijuana or being under the influence of marijuana in any

16 workplace;

17 (ii) Undertaking a task under the influence of marijuana when doing so would constitute

18 negligence or professional malpractice or jeopardize workplace safety;

19 (iii) Operation, navigation or actual physical control of any motor vehicle or other transport

20 vehicle, aircraft, motorboat, machinery or equipment, or firearms while under the influence of

21 marijuana; or

22 (iv) Violation of employment conditions pursuant to the terms of a collective bargaining

23 agreement; or

24 (2) Where the employer is a federal contractor or otherwise subject to federal law such that

25 failure of the employer to take such action against the employee would cause the employer to lose

26 a monetary or licensing related benefit.

27 ~~(e)~~(f) A primary caregiver cardholder, who has in his or her possession a registry

28 identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied

29 any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business

30 or occupational or professional licensing board or bureau, for assisting a patient cardholder, to

31 whom he or she is connected through the department of health or department of business

32 regulation's registration process, with the medical use of medical marijuana; provided, that; the

33 primary caregiver cardholder possesses an amount of marijuana that does not exceed twelve (12)

34 mature marijuana plants that are accompanied by valid medical marijuana tags, two and one-half

1 (2.5) ounces of usable marijuana, or its equivalent amount, and an amount of wet marijuana set in

2 regulations promulgated by the departments of health and business regulation for each qualified

3 patient cardholder to whom he or she is connected through the department of health registration

4 process.

5 ~~(f)~~(g) A qualifying patient cardholder shall be allowed to possess a reasonable amount of

6 unusable marijuana, including up to twelve (12) ~~seedlings~~ immature marijuana plants that are

7 accompanied by valid medical marijuana tags. A primary caregiver cardholder shall be allowed to

8 possess a reasonable amount of unusable marijuana, including up to twenty-four (24) ~~seedlings~~

9 immature marijuana plants that are accompanied by valid medical marijuana tags and an amount

10 of wet marijuana set in regulations promulgated by the departments of health and business

11 regulation.

12 ~~(g)~~(h) There shall exist a presumption that a cardholder is engaged in the medical use of

13 marijuana if the cardholder:

14 (1) Is in possession of a registry identification card; and

15 (2) Is in possession of an amount of marijuana that does not exceed the amount permitted

16 under this chapter. Such presumption may be rebutted by evidence that conduct related to marijuana

17 was not for the purpose of alleviating the qualifying patient's debilitating medical condition or

18 symptoms associated with the medical condition.

19 ~~(h)~~(i) A primary caregiver cardholder may receive reimbursement for costs associated with

20 assisting a qualifying patient cardholder's medical use of marijuana. A primary caregiver

21 cardholder may only receive reimbursement for the actual costs of goods, materials, services or

22 utilities for which they have incurred expenses. A primary caregiver may not receive

23 reimbursement or compensation for his or her time, knowledge, or expertise. Compensation shall

24 not constitute sale of controlled substances under state law. The department of business regulation

25 may promulgate regulations for the documentation and tracking of reimbursements and the transfer

26 of medical marijuana between primary caregivers and their registered patients.

27 ~~(i)~~(j) A primary caregiver cardholder, who has in his or her possession a registry

28 identification card, shall not be subject to arrest, prosecution, or penalty in any manner, or denied

29 any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business

30 or occupational or professional licensing board or bureau, for selling, giving, or distributing, on or

31 before December 31, 2016 to a compassion center cardholder, marijuana, of the type, and in an

32 amount not to exceed that set forth in subsection ~~(e)~~(f), if:

33 (1) The primary caregiver cardholder cultivated the marijuana pursuant to this chapter, not

34 to exceed the limits of subsection ~~(e)~~(f); and

1 (2) Each qualifying patient cardholder the primary caregiver cardholder is connected with

2 through the department of health's registration process has been provided an adequate amount of

3 the marijuana to meet his or her medical needs, not to exceed the limits of subsection (a).

4 ~~(j)~~(k) A practitioner shall not be subject to arrest, prosecution, or penalty in any manner, or

5 denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by

6 the Rhode Island board of medical licensure and discipline, or ~~by any other business~~ an employer

7 or occupational or professional licensing board or bureau solely for providing written certifications

8 in accordance with this chapter and regulations promulgated by the department of health, or for

9 otherwise stating that, in the practitioner's professional opinion, the potential benefits of the medical

10 marijuana would likely outweigh the health risks for a patient.

11 ~~(k)~~(l) Any interest in, or right to, property that is possessed, owned, or used in connection

12 with the lawful medical use of marijuana, or acts incidental to such use, shall not be forfeited.

13 ~~(l)~~(m) No person shall be subject to arrest or prosecution for constructive possession,

14 conspiracy, aiding and abetting, being an accessory, or any other offense, for simply being in the

15 presence or vicinity of the medical use of marijuana as permitted under this chapter, or for assisting

16 a qualifying patient cardholder with using or administering marijuana.

17 ~~(m)~~(n) A practitioner licensed with authority to prescribed drugs pursuant to chapters 34,

18 37 and 54 of title 5, or pharmacist licensed under chapter 19.1 of title 5, or certified school nurse

19 teacher, shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right

20 or privilege, including, but not limited to, civil penalty or disciplinary action by an employer a

21 ~~business~~ or occupational or professional licensing board or bureau solely for ~~Discussing~~ discussing

22 the benefits or health risks of medical marijuana or its interaction with other substances with a

23 patient.

24 (2) Administering a non-smokable and non-vaporized form of medical marijuana in a

25 school setting to a qualified patient registered in accordance with chapter 28.6 of title 21.

26 ~~(n)~~(o) A qualifying patient or primary caregiver registry identification card, or its

27 equivalent, issued under the laws of another state, U.S. territory, or the District of Columbia, to

28 permit the medical use of marijuana by a patient with a debilitating medical condition, or to permit

29 a person to assist with the medical use of marijuana by a patient with a debilitating medical

30 condition, shall have the same force and effect as a registry identification card.

31 ~~(o)~~(p) Notwithstanding the provisions of subsection ~~(e)~~(f), no primary caregiver cardholder

32 shall ~~Possess~~ possess an amount of marijuana in excess of twenty-four (24) mature marijuana plants

33 that are accompanied by valid medical marijuana tags and five (5) ounces of usable marijuana, or

34 its equivalent, and an amount of wet medical marijuana set in regulations promulgated by the

1 departments of health and business regulation for patient cardholders to whom he or she is

2 connected through the department of health and/or department of business regulation registration

3 process.

4 ~~(p)~~(q) A qualifying patient or primary caregiver cardholder may give marijuana to another

5 qualifying patient or primary caregiver cardholder to whom they are not connected by the

6 department's registration process, provided that no consideration is paid for the marijuana, and that

7 the recipient does not exceed the limits specified in this section.

8 ~~(q)~~(r) Qualifying patient cardholders and primary caregiver cardholders who are authorized

9 to grow marijuana shall only grow at one premises, and this premises shall be registered with the

10 department of ~~health~~ business regulation. Except for licensed compassion centers, and licensed

11 cooperative cultivations., and licensed cultivators, no more than twenty four (24) mature marijuana

12 plants that are accompanied by valid medical marijuana tags shall be grown or otherwise located

13 at any one dwelling unit or commercial unit The number of qualifying patients or primary

14 caregivers residing, owning, renting, growing, or otherwise operating at a dwelling or commercial

15 unit does not affect this limit. The department of ~~health~~ business regulation shall promulgate

16 regulations to enforce this provision.

17 ~~(r)~~(s) For the purposes of medical care, including organ transplants, a patient cardholder's

18 authorized use of marijuana shall be considered the equivalent of the authorized use of any other

19 medication used at the direction of a physician, and shall not constitute the use of an illicit

20 substance.

21 ~~(s)~~(t) Notwithstanding any other provisions of the general laws, the manufacture of

22 marijuana using a solvent extraction process that includes the use of a compressed, flammable gas

23 as a solvent by a patient cardholder or primary caregiver cardholder shall not be subject to the

24 protections of this chapter.

25 ~~(t)~~(u) Notwithstanding any provisions to the contrary, nothing in this chapter or the general

26 laws shall restrict or otherwise affect the manufacturing, distribution, transportation, sale,

27 prescribing and dispensing of a product that has been approved for marketing as a prescription

28 medication by the U.S. Food and Drug Administration and legally prescribed, nor shall hemp, as

29 ~~defined in~~ in accordance with chapter 26 of title 2 ~~§ 2-26-3~~, be defined as marijuana or marihuana

30 pursuant to this chapter, chapter 28 of this title or elsewhere in the general laws.

31 21-28.6-5. ~~Departments of health to issue regulations~~ Departments of health and

32 business regulation to issue regulations.

33 (a) Not later than ninety (90) days after the effective date of this chapter, the department of

34 health shall promulgate regulations governing the manner in which it shall consider petitions from

1 the public to add debilitating medical conditions to those included in this chapter. In considering

2 such petitions, the department of health shall include public notice of, and an opportunity to

3 comment in a public hearing, upon such petitions. The department of health shall, after hearing,

4 approve or deny such petitions within one hundred eighty (180) days of submission. The approval

5 or denial of such a petition shall be considered a final department of health action, subject to judicial

6 review. Jurisdiction and venue for judicial review are vested in the superior court. The denial of a

7 petition shall not disqualify qualifying patients with that condition, if they have a debilitating

8 medical condition as defined in § 21-28.6-3~~(5)~~. The denial of a petition shall not prevent a person

9 with the denied condition from raising an affirmative defense.

10 (b) Not later than ninety (90) days after the effective date of this chapter, the department

11 of health shall promulgate regulations governing the manner in which it shall consider applications

12 for, and renewals of, registry identification cards for qualifying patients~~, primary caregivers,~~ and

13 authorized purchasers. The department of health's regulations shall establish application and

14 renewal fees that generate revenues sufficient to offset all expenses of implementing and

15 administering this chapter. The department of health may vary the application and renewal fees

16 along a sliding scale that accounts for a qualifying patient's or caregiver's income. The department

17 of health may accept donations from private sources in order to reduce the application and renewal

18 fees.

19 (c) Not later than October 1, 2019, the department of business regulation shall promulgate

20 regulations not inconsistent with law, to carry into effect the provisions of this section, governing

21 the manner in which it shall consider applications for, and renewals of, registry identification cards

22 for primary caregivers. The department of business regulation's regulations shall establish

23 application and renewal fees. The department of business regulation may vary the application and

24 renewal fees along a sliding scale that accounts for a qualifying patient's or caregiver's income. The

25 department of business regulation may accept donations from private sources in order to reduce the

26 application and renewal fees.

27 21-28.6-6. Administration of departments of health and business regulation

28 regulations.

29 (a) The department of health shall issue registry identification cards to qualifying patients

30 who submit the following, in accordance with the department's regulations. Applications shall

31 include but not be limited to:

32 (1) Written certification as defined in § 21-28.6-3~~(25)~~ of this chapter;

33 (2) Application fee, as applicable;

34 (3) Name, address, and date of birth of the qualifying patient; provided, however, that if

1 the patient is homeless, no address is required;

2 (4) Name, address, and telephone number of the qualifying patient's practitioner;

3 (5) Whether the patient elects to grow medical marijuana plants for himself or herself; and

4 (6) Name, address, and date of birth of one primary caregiver of the qualifying patient and

5 any authorized purchaser for the qualifying patient, if any primary caregiver or authorized

6 purchaser is chosen by the patient or allowed in accordance with regulations promulgated by the

7 ~~department~~ departments of health or business regulation.

8 (b) The department of health shall not issue a registry identification card to a qualifying

9 patient under the age of eighteen (18) unless:

10 (1) The qualifying patient's practitioner has explained the potential risks and benefits of the

11 medical use of marijuana to the qualifying patient and to a parent, guardian, or person having legal

12 custody of the qualifying patient; and

13 (2) A parent, guardian, or person having legal custody consents in writing to:

14 (i) Allow the qualifying patient's medical use of marijuana;

15 (ii) Serve as the qualifying patient's primary caregiver or authorized purchaser; and

16 (iii) Control the acquisition of the marijuana, the dosage, and the frequency of the medical

17 use of marijuana by the qualifying patient.

18 (c) The department of health shall renew registry identification cards to qualifying patients

19 in accordance with regulations promulgated by the department of health and subject to payment of

20 any applicable renewal fee.

21 (d) The department of health shall not issue a registry identification card to a qualifying

22 patient seeking treatment for post-traumatic stress disorder (PTSD) under the age of eighteen (18).

23 (e) The department of health shall verify the information contained in an application or

24 renewal submitted pursuant to this section, and shall approve or deny an application or renewal

25 within thirty-five (35) days of receiving it. The department may deny an application or renewal

26 only if the applicant did not provide the information required pursuant to this section, or if the

27 department determines that the information provided was falsified, or that the renewing applicant

28 has violated this chapter under their previous registration. Rejection of an application or renewal is

29 considered a final department action, subject to judicial review. Jurisdiction and venue for judicial

30 review are vested in the superior court.

31 (f) If the qualifying patient's practitioner notifies the department of health in a written

32 statement that the qualifying patient is eligible for hospice care or chemotherapy, the department

33 of health and department of business regulation, as applicable, shall give priority to these

34 applications when verifying the information in accordance with subsection (e) and issue a registry

1 identification card to these qualifying patients, primary caregivers and authorized purchasers within

2 seventy-two (72) hours of receipt of the completed application. The departments shall not charge a

3 registration fee to the patient, caregivers or authorized purchasers named in the application. The

4 department of health may identify through regulation a list of other conditions qualifying a patient

5 for expedited application processing.

6 (g) Following the promulgation of regulations pursuant to § 21-28.6-5(c), the ~~The~~

7 ~~department of health shall~~ department of business regulation may issue or renew a registry

8 identification card to the qualifying patient cardholder's primary caregiver, if any, who is named in

9 the qualifying patient's approved application The department of business regulation shall verify the

10 information contained in applications and renewal forms submitted pursuant to this chapter prior

11 to issuing any registry identification card. The department of business regulation may deny an

12 application or renewal if the applicant or appointing patient did not provide the information

13 required pursuant to this section, or if the department determines that the information provided was

14 falsified, or if the applicant or appointing patient has violated this chapter under his or her previous

15 registration or has otherwise failed to satisfy the application or renewal requirements.

16 (1) A primary caregiver applicant or an authorized purchaser applicant shall apply to the

17 bureau of criminal identification of the department of attorney general, department of public safety

18 division of state police, or local police department for a national criminal records check that shall

19 include fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any

20 disqualifying information as defined in subdivision (g)(4)(5), and in accordance with the rules

21 promulgated by the director, the bureau of criminal identification of the department of attorney

22 general, department of public safety division of state police, or the local police department shall

23 inform the applicant, in writing, of the nature of the disqualifying information; and, without

24 disclosing the nature of the disqualifying information, shall notify the department of business

25 regulation or department of health, as applicable, in writing, that disqualifying information has been

26 discovered.

27 (2) In those situations in which no disqualifying information has been found, the bureau of

28 criminal identification of the department of attorney general, department of public safety division

29 of state police, or the local police shall inform the applicant and the department of business

30 regulation or department of health, as applicable, in writing, of this fact.

31 (3) The department of health or department of business regulation, as applicable, shall

32 maintain on file evidence that a criminal records check has been initiated on all applicants seeking

33 a primary caregiver registry identification card or an authorized purchaser registry identification

34 card and the results of the checks. The primary caregiver cardholder shall not be required to apply

1 for a national criminal records check for each patient he or she is connected to through the

2 department's registration process, provided that he or she has applied for a national criminal records

3 check within the previous two (2) years in accordance with this chapter. The department of health

4 and department of business regulation, as applicable, shall not require a primary caregiver

5 cardholder or an authorized purchaser cardholder to apply for a national criminal records check

6 more than once every two (2) years.

7 (4) Notwithstanding any other provision of this chapter, the department of business

8 regulation or department of health may revoke or refuse to issue any class or type of registry

9 identification card or license if it determines that failing to do so would conflict with any federal

10 law or guidance pertaining to regulatory, enforcement and other systems that states, businesses, or

11 other institutions may implement to mitigate the potential for federal intervention or enforcement.

12 This provision shall not be construed to prohibit the overall implementation and administration of

13 this chapter on account of the federal classification of marijuana as a schedule I substance or any

14 other federal prohibitions or restrictions.

15 ~~(4)~~(5) Information produced by a national criminal records check pertaining to a conviction

16 for any felony offense under chapter 28 of title 21 ("Rhode Island Controlled Substances Act"),

17 murder, manslaughter, rape, first-degree sexual assault, second-degree sexual assault, first-degree

18 child molestation, second-degree child molestation, kidnapping, first-degree arson, second-degree

19 arson, mayhem, robbery, burglary, breaking and entering, assault with a dangerous weapon, assault

20 or battery involving grave bodily injury, and/or assault with intent to commit any offense

21 punishable as a felony or a similar offense from any other jurisdiction shall result in a letter to the

22 applicant and the department of health or department of business regulation, as applicable,

23 disqualifying the applicant. If disqualifying information has been found, the department of health

24 or department of business regulation, as applicable may use its discretion to issue a primary

25 caregiver registry identification card or an authorized purchaser registry identification card if the

26 applicant's connected patient is an immediate family member and the card is restricted to that

27 patient only.

28 ~~(5)~~(6) The primary caregiver or authorized purchaser applicant shall be responsible for any

29 expense associated with the national criminal records check.

30 ~~(6)~~(7) For purposes of this section, "conviction" means, in addition to judgments of

31 conviction entered by a court subsequent to a finding of guilty or a plea of guilty, those instances

32 where the defendant has entered a plea of nolo contendere and has received a sentence of probation

33 and those instances where a defendant has entered into a deferred sentence agreement with the

34 attorney general.

1 (8) (i) The office of cannabis regulation may adopt rules and regulations based on federal

2 guidance provided those rules and regulations are designed to comply with federal guidance and

3 mitigate federal enforcement against the registrations and licenses issued under this chapter.

4 (ii) All new and revised rules and regulations promulgated by the department of business

5 regulation and/or the department of health pursuant to this chapter shall be subject to approval by

6 the general assembly prior to enactment.

7 (h)(1) On or before December 31, 2016, the department of health shall issue registry

8 identification cards within five (5) business days of approving an application or renewal that shall

9 expire two (2) years after the date of issuance.

10 ~~(ii)~~(2) Effective January 1, 2017, and thereafter, the department of health or the department

11 of business regulation, as applicable, shall issue registry identification cards within five (5) business

12 days of approving an application or renewal that shall expire one year after the date of issuance.

13 ~~(iii)~~(3) Registry identification cards shall contain:

14 ~~(1)~~(i) The date of issuance and expiration date of the registry identification card;

15 ~~(2)~~(ii) A random registry identification number;

16 ~~(3)~~(iii) A photograph; and

17 ~~(4)~~(iv) Any additional information as required by regulation or the department of health or

18 business regulation as applicable.

19 (i) Persons issued registry identification cards by the department of health or department

20 of business regulation shall be subject to the following:

21 (1) A qualifying patient cardholder shall notify the department of health of any change in

22 his or her name, address, primary caregiver, or authorized purchaser; or if he or she ceases to have

23 his or her debilitating medical condition, within ten (10) days of such change.

24 (2) A qualifying patient cardholder who fails to notify the department of health of any of

25 these changes is responsible for a civil infraction, punishable by a fine of no more than one hundred

26 fifty dollars ($150). If the patient cardholder has ceased to suffer from a debilitating medical

27 condition, the card shall be deemed null and void and the person shall be liable for any other

28 penalties that may apply to the person's nonmedical use of marijuana.

29 (3) A primary caregiver cardholder or authorized purchaser shall notify the issuing

30 department ~~of health~~ of any change in his or her name or address within ten (10) days of such

31 change. A primary caregiver cardholder or authorized purchaser who fails to notify the issuing

32 department of any of these changes is responsible for a civil infraction, punishable by a fine of no

33 more than one hundred fifty dollars ($150).

34 (4) When a qualifying patient cardholder or primary caregiver cardholder notifies the

1 department of health or department of business regulation, as applicable, of any changes listed in

2 this subsection, the department of health or department of business regulation, as applicable, shall

3 issue the qualifying patient cardholder and each primary caregiver cardholder a new registry

4 identification card within ten (10) days of receiving the updated information and a ten-dollar

5 ($10.00) fee.

6 (5) When a qualifying patient cardholder changes his or her primary caregiver or authorized

7 purchaser, the department of health or department of business regulation, as applicable shall notify

8 the primary caregiver cardholder or authorized purchaser within ten (10) days. The primary

9 caregiver cardholder's protections as provided in this chapter as to that patient shall expire ten (10)

10 days after notification by the issuing department. If the primary caregiver cardholder or authorized

11 purchaser is connected to no other qualifying patient cardholders in the program, he or she must

12 return his or her registry identification card to the issuing department.

13 (6) If a cardholder or authorized purchaser loses his or her registry identification card, he

14 or she shall notify the department that issued the card and submit a ten-dollar ($10.00) fee within

15 ten (10) days of losing the card. Within five (5) days, the department of health or department of

16 business regulation shall issue a new registry identification card with new random identification

17 number.

18 (7) Effective January 1, 2019, if a patient cardholder chooses to alter his or her registration

19 with regard to the growing of medical marijuana for himself or herself, he or she shall notify the

20 department prior to the purchase of medical marijuana tags or the growing of medical marijuana

21 plants.

22 (8) If a cardholder or authorized purchaser willfully violates any provision of this chapter

23 as determined by the department of health or the department of business regulation, his or her

24 registry identification card may be revoked.

25 (j) Possession of, or application for, a registry identification card shall not constitute

26 probable cause or reasonable suspicion, nor shall it be used to support the search of the person or

27 property of the person possessing or applying for the registry identification card, or otherwise

28 subject the person or property of the person to inspection by any governmental agency.

29 (k)(1) Applications and supporting information submitted by qualifying patients, including

30 information regarding their primary caregivers, authorized purchaser, and practitioners, are

31 confidential and protected ~~under~~ in accordance with the federal Health Insurance Portability and

32 Accountability Act of 1996, as amended, and shall be exempt from the provisions of chapter 2 of

33 title 38 et seq. (Rhode Island access to public records act) and not subject to disclosure, except to

34 authorized employees of the departments of health and business regulation as necessary to perform

1 official duties of the ~~department~~ departments, and pursuant to subsection (l) and (m).

2 (2) The application for qualifying patient's registry identification card shall include a

3 question asking whether the patient would like the department of health to notify him or her of any

4 clinical studies about marijuana's risk or efficacy. The department of health shall inform those

5 patients who answer in the affirmative of any such studies it is notified of, that will be conducted

6 in Rhode Island. The department of health may also notify those patients of medical studies

7 conducted outside of Rhode Island.

8 (3) The department of health and the department of business regulation, as applicable, shall

9 maintain a confidential list of the persons to whom the department of health or department of

10 business regulation has issued authorized patient, primary caregiver, and authorized purchaser

11 registry identification cards. Individual names and other identifying information on the list shall be

12 confidential, exempt from the provisions of Rhode Island access to public information, chapter 2

13 of title 38, and not subject to disclosure, except to authorized employees of the ~~department~~

14 departments of health and business regulation as necessary to perform official duties of the

15 ~~department~~ departments and pursuant to subsections (l) and (m) of this section.

16 (l) Notwithstanding ~~subsection~~ subsections (k) and (m) of this section, the departments of

17 health and business regulation, as applicable, shall verify to law enforcement personnel whether a

18 registry identification card is valid and may provide additional information to confirm whether a

19 cardholder is compliant with the provisions of this chapter and the regulations promulgated

20 hereunder. ~~solely by confirming the random registry identification number or name.~~ The

21 department of business regulation shall verify to law enforcement personnel whether a registry

22 identification card is valid and may confirm whether the cardholder is compliant with the provisions

23 of this chapter and the regulations promulgated hereunder. This verification may occur through the

24 use of a shared database, provided that any medical records or confidential information in this

25 database related to a cardholder's specific medical condition is protected in accordance with

26 subdivision (k)(1).

27 (m) It shall be a crime, punishable by up to one hundred eighty (180) days in jail and a one

28 thousand dollar ($1,000) fine, for any person, including an employee or official of the departments

29 of health, business regulation, public safety, or another state agency or local government, to breach

30 the confidentiality of information obtained pursuant to this chapter. Notwithstanding this provision,

31 the department of health and department of business regulation employees may notify law

32 enforcement about falsified or fraudulent information submitted to the department or violations of

33 this chapter. Nothing in this act shall be construed as to prohibit law enforcement, public safety,

34 fire, or building officials from investigating violations of, or enforcing state law.

1 (n) On or before the fifteenth day of the month following the end of each quarter of the

2 fiscal year, the department of health and the department of business regulation shall report to the

3 governor, the speaker of the House of Representatives, and the president of the senate on

4 applications for the use of marijuana for symptom relief. The report shall provide:

5 (1) The number of applications for registration as a qualifying patient, primary caregiver,

6 or authorized purchaser that have been made to the department of health and the department of

7 business regulation during the preceding quarter, the number of qualifying patients, primary

8 caregivers, and authorized purchasers approved, the nature of the debilitating medical conditions

9 of the qualifying patients, the number of registrations revoked, and the number and specializations,

10 if any, of practitioners providing written certification for qualifying patients.

11 (o) On or before September 30 of each year, the department of health and the department

12 of business regulation, as applicable, shall report to the governor, the speaker of the House of

13 Representatives, and the president of the senate on the use of marijuana for symptom relief. The

14 report shall provide:

15 (1) The total number of applications for registration as a qualifying patient, primary

16 caregiver, or authorized purchaser that have been made to the department of health and the

17 department of business regulation, the number of qualifying patients, primary caregivers, and

18 authorized purchasers approved, the nature of the debilitating medical conditions of the qualifying

19 patients, the number of registrations revoked, and the number and specializations, if any, of

20 practitioners providing written certification for qualifying patients;

21 (2) The number of active qualifying patient, primary caregiver, and authorized purchaser

22 registrations as of June 30 of the preceding fiscal year;

23 (3) An evaluation of the costs permitting the use of marijuana for symptom relief, including

24 any costs to law enforcement agencies and costs of any litigation;

25 (4) Statistics regarding the number of marijuana-related prosecutions against registered

26 patients and caregivers, and an analysis of the facts underlying those prosecutions;

27 (5) Statistics regarding the number of prosecutions against physicians for violations of this

28 chapter; and

29 (6) Whether the United States Food and Drug Administration has altered its position

30 regarding the use of marijuana for medical purposes or has approved alternative delivery systems

31 for marijuana.

32 (p) After June 30, 2018, the department of business regulation shall report to the speaker

33 of the house, senate president, the respective fiscal committee chairpersons, and fiscal advisors

34 within 60 days of the close of the prior fiscal year. The report shall provide:

1 (1) The number of applications for registry identification cards to compassion center staff,

2 the number approved, denied and the number of registry identification cards revoked, and the

3 number of replacement cards issued;

4 (2) The number of applications for compassion centers and licensed cultivators;

5 (3) The number of marijuana plant tag sets ordered, delivered, and currently held within

6 the state;

7 (4) The total revenue collections of any monies related to its regulator activities for the

8 prior fiscal year, by the relevant category of collection, including enumerating specifically the total

9 amount of revenues foregone or fees paid at reduced rates pursuant to this chapter.

10 21-28.6-7. Scope of chapter.

11 (a) This chapter shall not permit:

12 (1) Any person to undertake any task under the influence of marijuana, when doing so

13 would constitute negligence or professional malpractice;

14 (2) The smoking of marijuana:

15 (i) In a school bus or other form of public transportation;

16 (ii) On any school grounds;

17 (iii) In any correctional facility;

18 (iv) In any public place;

19 (v) In any licensed drug treatment facility in this state; or

20 (vi) Where exposure to the marijuana smoke significantly adversely affects the health,

21 safety, or welfare of children.

22 (3) Any person to operate, navigate, or be in actual physical control of any motor vehicle,

23 aircraft, or motorboat while under the influence of marijuana. However, a registered qualifying

24 patient shall not be considered to be under the influence solely for having marijuana metabolites in

25 his or her system.

26 (4) The operation of a medical marijuana emporium, which is expressly prohibited.

27 (b) Nothing in this chapter shall be construed to require:

28 (1) A government medical assistance program or private health insurer or workers'

29 compensation insurer, workers' compensation group self-insurer or employer self-insured for

30 workers' compensation under § 28-36-1 to reimburse a person for costs associated with the medical

31 use of marijuana; or

32 (2) An employer to accommodate the medical use of marijuana in any workplace.

33 (c) Fraudulent representation to a law enforcement official of any fact or circumstance

34 relating to the medical use of marijuana to avoid arrest or prosecution shall be punishable by a fine

1 of five hundred dollars ($500) which shall be in addition to any other penalties that may apply for

2 making a false statement for the nonmedical use of marijuana.

3 21-28.6-8. Affirmative defense and dismissal.

4 (a) Except as provided in § 21-28.6-7, a qualifying patient may assert the medical purpose

5 for using marijuana as a defense to any prosecution involving marijuana, and such defense shall be

6 presumed valid where the evidence shows that:

7 (1) The qualifying patient's practitioner has stated that, in the practitioner's professional

8 opinion, after having completed a full assessment of the person's medical history and current

9 medical condition made in the course of a bona fide practitioner-patient relationship, the potential

10 benefits of using marijuana for medical purposes would likely outweigh the health risks for the

11 qualifying patient; and

12 (2) The qualifying patient was compliant with this chapter and all regulations promulgated

13 hereunder and in possession of a quantity of marijuana that was not more than what is permitted

14 under this chapter to ensure the uninterrupted availability of marijuana for the purpose of alleviating

15 the person's medical condition or symptoms associated with the medical condition.

16 (b) A person may assert the medical purpose for using marijuana in a motion to dismiss,

17 and the charges shall be dismissed following an evidentiary hearing where the defendant shows the

18 elements listed in subsection (a) of this section.

19 (c) Any interest in, or right to, property that was possessed, owned, or used in connection

20 with a qualifying patient's use of marijuana for medical purposes shall not be forfeited if the

21 qualifying patient demonstrates the qualifying patient's medical purpose for using marijuana

22 pursuant to this section.

23 21-28.6-9. Enforcement.

24 (a) If the department of health fails to adopt regulations to implement this chapter within

25 one hundred twenty (120) days of the effective date of this act, a qualifying patient may commence

26 an action in a court of competent jurisdiction to compel the department to perform the actions

27 mandated pursuant to the provisions of this chapter.

28 (b) If the department of health or the department of business regulation fails to issue a valid

29 registry identification card in response to a valid application submitted pursuant to this chapter

30 within thirty-five (35) days of its submission, the registry identification card shall be deemed

31 granted and a copy of the registry identification application shall be deemed a valid registry

32 identification card.

33 (c) The department of health and the department of business regulation shall revoke and

34 shall not reissue, the registry identification card of any cardholder or licensee who is convicted of;

1 placed on probation; whose case is filed pursuant to § 12-10-12 where the defendant pleads nolo

2 contendere; or whose case is deferred pursuant to § 12-19-19 where the defendant pleads nolo

3 contendere for any felony offense under chapter 28 of title 21 ("Rhode Island Controlled Substances

4 Act") or a similar offense from any other jurisdiction.

5 (d) If a cardholder exceeds the possession limits set forth in §§ 21-28.6-4 or 21-28.6-14, or

6 is in violation of any other section of this chapter or the regulations promulgated hereunder, he or

7 she ~~shall~~ may be subject to arrest and prosecution under chapter 28 of title 21 ("Rhode Island

8 Controlled Substances Act").

9 (e)(1) Notwithstanding any other provision of this chapter, if the director of the department

10 of business regulation or his or her designee has cause to believe that a violation of any provision

11 of chapter 28.6 of title 21 or the regulations promulgated thereunder has occurred by a licensee or

12 registrant under the department's jurisdiction, or that any person or entity is conducting any

13 activities requiring licensure or registration by the department of business regulation under chapter

14 28.6 of title 21 or the regulations promulgated thereunder without such licensure or registration, or

15 is otherwise violating any provisions of said chapter, the director or his or her designee may, in

16 accordance with the requirements of the administrative procedures act, chapter 35 of title 42:

17 (i) With the exception of patient and authorized purchaser registrations, revoke or suspend

18 any license or registration issued under chapters 26 of title 2 or 28.6 of title 21;

19 (ii) Levy an administrative penalty in an amount established pursuant to regulations

20 promulgated by the department of business regulation;

21 (iii) Order the violator to cease and desist such actions;

22 (iv) Require a licensee or registrant or person or entity conducting any activities requiring

23 licensure or registration under chapter 28.6 of title 21 to take such actions as are necessary to

24 comply with such chapter and the regulations promulgated thereunder; or

25 (v) Any combination of the above penalties.

26 (2) If the director of the department of business regulation finds that public health, safety,

27 or welfare imperatively requires emergency action, and incorporates a finding to that effect in his

28 or her order, summary suspension of license or registration and/or cease and desist may be ordered

29 pending proceedings for revocation or other action. These proceedings shall be promptly instituted

30 and determined.

31 (f) All cannabis products that are held for sale or distribution within the borders of this state

32 in violation of the requirements of this chapter are declared to be contraband goods and may be

33 seized by the department of business regulation, the tax administrator or his or her agents, or

34 employees, or by any sheriff, or his or her deputy, or any police officer when requested by the tax

1 administrator or the department of business regulation to do so, without a warrant. All contraband

2 goods seized by the state under this chapter may be destroyed.

3 21-28.6-12. Compassion centers.

4 (a) A compassion center ~~registered~~ licensed under this section may acquire, possess,

5 cultivate, manufacture, deliver, transfer, transport, supply, or dispense medical marijuana, or

6 related supplies and educational materials, to registered qualifying patients and their registered

7 primary caregivers or authorized purchasers, or out of state patient cardholders or other marijuana

8 establishment licensees. Except as specifically provided to the contrary, all provisions of chapter

9 28.6 of title 21 (the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act), apply to a

10 compassion center unless ~~they~~ the provision(s) conflict with a provision contained in § 21-28.6-12.

11 (b) ~~Registration~~ License of compassion centers–authority of the departments of health and

12 business regulation:

13 (1) Not later than ninety (90) days after the effective date of this chapter, the department

14 of health shall promulgate regulations governing the manner in which it shall consider applications

15 for ~~registration certificates~~ licenses for compassion centers, including regulations governing:

16 (i) The form and content of ~~registration~~ license and renewal applications;

17 (ii) Minimum oversight requirements for compassion centers;

18 (iii) Minimum record-keeping requirements for compassion centers;

19 (iv) Minimum security requirements for compassion centers; and

20 (v) Procedures for suspending, revoking, or terminating the ~~registration~~ license of

21 compassion centers that violate the provisions of this section or the regulations promulgated

22 pursuant to this subsection.

23 (2) Within ninety (90) days of the effective date of this chapter, the department of health

24 shall begin accepting applications for the operation of a single compassion center.

25 (3) Within one hundred fifty (150) days of the effective date of this chapter, the department

26 of health shall provide for at least one public hearing on the granting of an application to a single

27 compassion center.

28 (4) Within one hundred ninety (190) days of the effective date of this chapter, the

29 department of health shall grant a single ~~registration certificate~~ license to a single compassion

30 center, providing at least one applicant has applied who meets the requirements of this chapter.

31 (5) If at any time after fifteen (15) months after the effective date of this chapter, there is

32 no operational compassion center in Rhode Island, the department of health shall accept

33 applications, provide for input from the public, and issue a ~~registration certificate~~ license for a

34 compassion center if a qualified applicant exists.

1 (6) Within two (2) years of the effective date of this chapter, the department of health shall

2 begin accepting applications to provide ~~registration certificates~~ license for two (2) additional

3 compassion centers. The department shall solicit input from the public, and issue ~~registration~~

4 ~~certificates~~ licenses if qualified applicants exist.

5 (7) (i) Any time a compassion center ~~registration certificate~~ license is revoked, is

6 relinquished, or expires on or before December 31, 2016, the department of health shall accept

7 applications for a new compassion center.

8 (ii) Any time a compassion center ~~registration certificate~~ license is revoked, is relinquished,

9 or expires on or after January 1, 2017, the department of business regulation shall accept

10 applications for a new compassion center.

11 (8)(i) If at any time after three (3) years after the effective date of this chapter and on or

12 before December 31, 2016, fewer than three (3) compassion centers are holding valid ~~registration~~

13 ~~certificates~~ licenses in Rhode Island, the department of health shall accept applications for a new

14 compassion center. If at any time on or after January 1, 2017, fewer than three (3) compassion

15 centers are holding valid ~~registration certificates~~ licenses in Rhode Island, the department of

16 business regulation shall accept applications for a new compassion center. ~~No more than three (3)~~

17 There shall be nine (9) compassion centers that may hold valid ~~registration certificates~~ licenses at

18 one time. If at any time on or after July 1, 2019, fewer than nine (9) compassion centers are holding

19 valid licenses in Rhode Island, the department of business regulation shall accept applications for

20 new compassion centers and shall continue the process until nine (9) licenses have been issued by

21 the department of business regulation.

22 (9) Any compassion center application selected for approval by the department of health

23 on or before December 31, 2016, or selected for approval by the department of business regulation

24 on or after January 1, 2017, shall remain in full force and effect, notwithstanding any provisions of

25 this chapter to the contrary, and shall be subject to state law adopted herein and rules and regulations

26 adopted by the departments of health and business regulation subsequent to passage of this

27 legislation.

28 (10) A licensed cultivator may apply for, and be issued, an available compassion center

29 license provided that the licensed cultivation premises is disclosed on the compassion center

30 application as the permitted second location for growing medical marijuana in accordance with §

31 21-28.6-12(c)(1). If a licensed cultivator is issued an available compassion center license, their

32 cultivation facility license will merge with and into their compassion center license in accordance

33 with regulations promulgated by the department of business regulation. Once merged, the

1 accordance with § 21-28.6-12 and the cultivation license will be considered null and void and of

2 no further force or effect.

3 (c) Compassion center and agent applications and ~~registration~~ license:

4 (1) Each application for a compassion center shall ~~include~~ be submitted in accordance with

5 regulations promulgated by the department of business regulation and shall include, but not be

6 limited to:

7 (i) A non-refundable application fee paid to the department in the amount of ~~two hundred~~

8 ~~fifty dollars ($250)~~ ten thousand dollars ($10,000);

9 (ii) The proposed legal name and proposed articles of incorporation of the compassion

10 center;

11 (iii) The proposed physical address of the compassion center, if a precise address has been

12 determined, or, if not, the general location where it would be located. this may include a second

13 location for the cultivation of medical marijuana;

14 (iv) A description of the enclosed, locked facility that would be used in the cultivation of

15 medical marijuana;

16 (v) The name, address, and date of birth of each principal officer and board member of the

17 compassion center;

18 (vi) Proposed security and safety measures that shall include at least one security alarm

19 system for each location, planned measures to deter and prevent the unauthorized entrance into

20 areas containing marijuana and the theft of marijuana, as well as a draft, employee-instruction

21 manual including security policies, safety and security procedures, personal safety, and crime-

22 prevention techniques; and

23 (vii) Proposed procedures to ensure accurate record keeping;

24 (2)(i) For applications submitted on or before December 31, 2016, any time one or more

25 compassion center ~~registration~~ license applications are being considered, the department of health

26 shall also allow for comment by the public and shall solicit input from registered qualifying

27 patients, registered primary caregivers; and the towns or cities where the applicants would be

28 located;

29 (ii) For applications submitted on or after January 1, 2017, any time one or more

30 compassion center ~~registration~~ license applications are being considered, the department of

31 business regulation shall also allow for comment by the public and shall solicit input from

32 registered qualifying patients, registered primary caregivers; and the towns or cities where the

33 applicants would be located.

1 shall be based upon the overall health needs of qualified patients and the safety of the public,

2 including, but not limited to, the following factors:

3 (i) Convenience to patients from areas throughout the state of Rhode Island. ~~to the~~

4 ~~compassion centers if the applicant were approved~~;

5 (ii) The applicant's ability to provide a steady supply to the registered qualifying patients

6 in the state;

7 (iii) The applicant's experience running a non-profit or business;

8 (iv) The interests of qualifying patients regarding which applicant be granted a ~~registration~~

9 ~~certificate~~ license;

10 (v) The interests of the city or town where the dispensary would be located taking into

11 consideration need and population;

12 (vi) Nothing herein shall prohibit more than one compassion center being geographically

13 located in any city or town.

14 ~~(vi)~~(vii) The sufficiency of the applicant's plans for record keeping and security, which

15 records shall be considered confidential health-care information under Rhode Island law and are

16 intended to be deemed protected health-care information for purposes of the Federal Health

17 Insurance Portability and Accountability Act of 1996, as amended; and

18 ~~(vii)~~(viii) The sufficiency of the applicant's plans for safety and security, including

19 proposed location, security devices employed, and staffing;

20 (4) A compassion center approved by the department of health on or before December 31,

21 2016, shall submit the following to the department before it may begin operations:

22 (i) A fee paid to the department in the amount of five thousand dollars ($5,000);

23 (ii) The legal name and articles of incorporation of the compassion center;

24 (iii) The physical address of the compassion center; this may include a second address for

25 the secure cultivation of marijuana;

26 (iv) The name, address, and date of birth of each principal officer and board member of the

27 compassion center; and

28 (v) The name, address, and date of birth of any person who will be an agent of, employee,

29 or volunteer of the compassion center at its inception.

30 (5)(i) A compassion center approved or renewed by the department of business regulation

31 on or after January 1, 2017 but before July 1, 2019, shall submit materials pursuant to regulations

32 promulgated by the department of business regulation ~~the following to the department~~ before it

1 ~~(ii)~~(B) The legal name and articles of incorporation of the compassion center;

2 ~~(iii)~~(C) The physical address of the compassion center; this may include a second address

3 for the secure cultivation of medical marijuana

4 ~~(iv)~~(D) The name, address, and date of birth of each principal officer and board member of

5 the compassion center;

6 ~~(v)~~(E) The name, address, and date of birth of any person who will be an agent of,

7 employee, or volunteer of the compassion center at its inception.

8 (ii) A compassion center approved or renewed by the department of business regulation on

9 or after July 1, 2019, shall submit materials pursuant to regulations promulgated by the department

10 of business regulation before it may begin operations which shall include but not be limited to:

11 (A) A fee paid to the department in the amount of five hundred thousand dollars

12 ($500,000);

13 (B) The legal name and articles of incorporation of the compassion center;

14 (C) The physical address of the compassion center; this may include a second address for

15 the secure cultivation of medical marijuana;

16 (D) The name, address, and date of birth of each principal officer and board member of the

17 compassion center, and any person who has a direct or indirect ownership interest in any marijuana

18 establishment licensee, which ownership interest shall include, but not be limited to, any interests

19 arising pursuant to the use of shared management companies, management agreements or other

20 agreements that afford third party management or operational control, or other familial or business

21 relationships between compassion center or cultivator owners, members, officers, directors,

22 managers, investors, agents, or key persons which effect dual license interests as determined by the

23 department of business regulation;

24 (E) The name, address, and date of birth of any person who will be an agent of, employee,

25 or volunteer of the compassion center at its inception; and

26 (6) Except as provided in subdivision (7), the department of health or the department of

27 business regulation shall issue each principal officer, board member, agent, volunteer, and

28 employee of a compassion center a registry identification card or renewal card after receipt of the

29 person's name, address, date of birth; a fee in an amount established by the department of health or

30 the department of business regulation; and, except in the case of an employee, notification to the

31 department of health or the department of business regulation by the department of public safety

32 division of state police, attorney general's office, or local law enforcement that the registry

1 shall specify that the cardholder is a principal officer, board member, agent, volunteer, or employee

2 of a compassion center and shall contain the following:

3 (i) The name, address, and date of birth of the principal officer, board member, agent,

4 volunteer, or employee;

5 (ii) The legal name of the compassion center to which the principal officer, board member,

6 agent, volunteer, or employee is affiliated;

7 (iii) A random identification number that is unique to the cardholder;

8 (iv) The date of issuance and expiration date of the registry identification card; ~~and~~

9 (v) A photograph, if the department of health or the department of business regulation

10 decides to require one; and

11 (7) Except as provided in this subsection, neither the department of health nor the

12 department of business regulation shall issue a registry identification card to any principal officer,

13 board member, or agent, ~~volunteer, or employee~~ of a compassion center who has been convicted

14 of a felony drug offense or has entered a plea of nolo contendere for a felony drug offense and

15 received a sentence of probation. If a registry identification card is denied, the compassion center

16 will be notified in writing of the purpose for denying the registry identification card. A registry

17 identification card may be granted if the offense was for conduct that occurred prior to the

18 enactment of the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act or that was

19 prosecuted by an authority other than the state of Rhode Island and for which the Edward O.

20 Hawkins and Thomas C. Slater Medical Marijuana Act would otherwise have prevented a

21 conviction.

22 (i) All registry identification card applicants shall apply to the department of public safety

23 division of state police, the attorney general's office, or local law enforcement for a national

24 criminal identification records check that shall include fingerprints submitted to the federal bureau

25 of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo

26 contendere for a felony drug offense with a sentence of probation, and in accordance with the rules

27 promulgated by the department of health and the department of business regulation, the department

28 of public safety division of state police, the attorney general's office, or local law enforcement shall

29 inform the applicant, in writing, of the nature of the felony and the department of public safety

30 division of state police shall notify the department of health or the department of business

31 regulation, in writing, without disclosing the nature of the felony, that a felony drug offense

32 conviction or a plea of nolo contendere for a felony drug offense with probation has been found.

1 division of state police, the attorney general's office, or local law enforcement shall inform the

2 applicant and the department of health or the department of business regulation, in writing, of this

3 fact.

4 (iii) All registry identification card applicants except for employees with no ownership,

5 equity, financial interest, or managing control of a marijuana establishment license shall be

6 responsible for any expense associated with the criminal background check with fingerprints.

7 (8) A registry identification card of a principal officer, board member, agent, volunteer, or

8 employee, or any other designation required by the department of business regulation shall expire

9 one year after its issuance, or upon the expiration of the ~~registered~~ licensed organization's

10 ~~registration certificate~~ license, or upon the termination of the principal officer, board member,

11 agent, volunteer or employee's relationship with the compassion center, whichever occurs first.

12 (9) A compassion center cardholder shall notify and request approval from the department

13 of business regulation of any change in his or her name or address within ten (10) days of such

14 change. A compassion center cardholder who fails to notify the department of business regulation

15 of any of these changes is responsible for a civil infraction, punishable by a fine of no more than

16 one hundred fifty dollars ($150).

17 (10) When a compassion center cardholder notifies the department of health or the

18 department of business regulation of any changes listed in this subsection, the department shall

19 issue the cardholder a new registry identification card within ten (10) days of receiving the updated

20 information and a ten-dollar ($10.00) fee.

21 (11) If a compassion center cardholder loses his or her registry identification card, he or

22 she shall notify the department of health or the department of business regulation and submit a ten

23 dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the department

24 shall issue a new registry identification card with new random identification number.

25 (12) On or before December 31, 2016, a compassion center cardholder shall notify the

26 department of health of any disqualifying criminal convictions as defined in subdivision (c)(7). The

27 department of health may choose to suspend and/or revoke his or her registry identification card

28 after such notification.

29 (13) On or after January 1, 2017, a compassion center cardholder shall notify the

30 department of business regulation of any disqualifying criminal convictions as defined in

31 subdivision (c)(7). The department of business regulation may choose to suspend and/or revoke his

32 or her registry identification card after such notification.

33 (14) If a compassion center cardholder violates any provision of this chapter or regulations

1 her registry identification card may be suspended and/or revoked.

2 (d) Expiration or termination of compassion center:

3 (1) On or before December 31, 2016, a compassion center's ~~registration~~ license shall expire

4 two (2) years after its ~~registration certificate~~ license is issued. On or after January 1, 2017, a

5 compassion center's ~~registration~~ license shall expire one year after its ~~registration certificate~~ license

6 is issued. The compassion center may submit a renewal application beginning sixty (60) days prior

7 to the expiration of its ~~registration certificate~~ license;

8 (2) The department of health or the department of business regulation shall grant a

9 compassion center's renewal application within thirty (30) days of its submission if the following

10 conditions are all satisfied:

11 (i) The compassion center submits the materials required under subdivisions (c)(4) and

12 (c)(5), including ~~a two hundred fifty thousand dollar ($250,000) fee~~ a five hundred thousand dollar

13 ($500,000) fee;

14 (ii) The compassion center's ~~registration~~ license has never been suspended for violations

15 of this chapter or regulations issued pursuant to this chapter; and

16 (iii) The ~~department of health and the~~ department of business regulation find that the

17 compassion center is adequately providing patients with access to medical marijuana at reasonable

18 rates;

19 (3) If the department of health or the department of business regulation determines that any

20 of the conditions listed in paragraphs (d)(2)(i) – (iii) have not been met, the department ~~shall~~ may

21 begin an open application process for the operation of a compassion center. In granting a new

22 ~~registration certificate~~ license, the department of health or the department of business regulation

23 shall consider factors listed in subdivision (c)(3);

24 (4) The ~~department of health or the~~ department of business regulation shall issue a

25 compassion center one or more thirty-day (30) temporary ~~registration certificates~~ licenses after that

26 compassion center's ~~registration~~ license would otherwise expire if the following conditions are all

27 satisfied:

28 (i) The compassion center previously applied for a renewal, but the department had not yet

29 come to a decision;

30 (ii) The compassion center requested a temporary ~~registration certificate~~ license; and

31 (iii) The compassion center has not had its ~~registration certificate~~ license suspended or

32 revoked due to violations of this chapter or regulations issued pursuant to this chapter.

33 (5) A compassion center's ~~registry identification card~~ license shall be denied, suspended,

34 or subject to revocation if the compassion center:

1 (i) Possesses an amount of marijuana exceeding the limits established by this chapter;

2 (ii) Is in violation of the laws of this state;

3 (iii) Is in violation of other departmental regulations; or

4 (iv) Employs or enters into a business relationship with a medical practitioner who provides

5 written certification of a qualifying patient's medical condition.

6 (v) If any compassion center owner, member, officer, director, manager, investor, agent,

7 or key person as defined in regulations promulgated by the department of business regulation, has

8 any interest, direct or indirect, in another compassion center or another licensed cultivator, except

9 as permitted in § 21-28.6-12(b)(10). Prohibited interests shall also include interests arising pursuant

10 to the use of shared management companies, management agreements or other agreements that

11 afford third party management or operational control, or other familial or business relationships

12 between compassion center or cultivator owners, members, officers, directors, managers, investors,

13 agents, or key persons which effect dual license interests as determined by the department of

14 business regulation.

15 (e) Inspection. Compassion centers are subject to reasonable inspection by the department

16 of health, division of facilities regulation and the department of business regulation. During an

17 inspection, the departments may review the compassion center's confidential records, including its

18 dispensing records, which shall track transactions according to qualifying patients' registry

19 identification numbers to protect their confidentiality.

20 (f) Compassion center requirements:

21 (1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit

22 of its patients. A compassion center need not be recognized as a tax-exempt organization by the

23 Internal Revenue Service;. A compassion center shall be subject to regulations promulgated by the

24 department of business regulation for general operations and record keeping which shall include,

25 but not be limited to:

26 (i) Minimum security and surveillance requirements;

27 (ii) Minimum requirements for workplace safety and sanitation;

28 (iii) Minimum requirements for product safety and testing;

29 (iv) Minimum requirements for inventory tracking and monitoring;

30 (v) Minimum requirements for the secure transport and transfer of medical marijuana;

31 (vi) Minimum requirements to address odor mitigation;

32 (vii) Minimum requirements for product packaging and labeling;

1 destruction of medical marijuana and medical marijuana product is required to bring a person or

2 entity into compliance with any provision of chapter 28.6 of title 21, any rule or regulation

3 promulgated thereunder, or any administrative order issued in accordance therewith, the director of

4 the department of business regulation may designate his or her employees or agents to facilitate

5 said destruction;

6 (x) A requirement that if a compassion center violates this chapter, or any regulation

7 thereunder, and the department of business regulation determines that violation does not pose an

8 immediate threat to public health or public safety, the compassion center shall pay to the department

9 of business regulation a fine of no less than five-hundred dollars ($500); and

10 (xi) A requirement that if a compassion center violates this chapter, or any regulation

11 promulgated hereunder, and the department of business regulation determines that the violation

12 poses an immediate threat to public health or public safety, the compassion center shall pay to the

13 department of business regulation a fine of no less than two-thousand dollars ($2,000) and the

14 department shall be entitled to pursue any other enforcement action provided for under this chapter

15 and the regulations.

16 (2) A compassion center may not be located within one thousand feet (1000') of the

17 property line of a preexisting public or private school;

18 (3) On or before December 31, 2016, a compassion center shall notify the department of

19 health within ten (10) days of when a principal officer, board member, agent, volunteer, or

20 employee ceases to work at the compassion center. On or after January 1, 2017, a compassion

21 center shall notify the department of business regulation within ten (10) days of when a principal

22 officer, board member, agent, volunteer, or employee ceases to work at the compassion center. His

23 or her card shall be deemed null and void and the person shall be liable for any penalties that may

24 apply to any nonmedical possession or use of marijuana by the person;

25 (4)(i) On or before December 31, 2016, a compassion center shall notify the department of

26 health in writing of the name, address, and date of birth of any new principal officer, board member,

27 agent, volunteer or employee and shall submit a fee in an amount established by the department for

28 a new registry identification card before that person begins his or her relationship with the

29 compassion center;

30 (ii) On or after January 1, 2017, a compassion center shall notify the department of business

31 regulation, in writing, of the name, address, and date of birth of any new principal officer, board

32 member, agent, volunteer, or employee and shall submit a fee in an amount established by the

1 (5) A compassion center shall implement appropriate security measures to deter and

2 prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and

3 shall insure that each location has an operational security alarm system. Each compassion center

4 shall request that the department of public safety division of state police visit the compassion center

5 to inspect the security of the facility and make any recommendations regarding the security of the

6 facility and its personnel within ten (10) days prior to the initial opening of each compassion center.

7 Said recommendations shall not be binding upon any compassion center, nor shall the lack of

8 implementation of said recommendations delay or prevent the opening or operation of any center.

9 If the department of public safety division of state police does not inspect the compassion center

10 within the ten-day (10) period, there shall be no delay in the compassion center's opening.

11 (6) The operating documents of a compassion center shall include procedures for the

12 oversight of the compassion center and procedures to ensure accurate record keeping.

13 (7) A compassion center is prohibited from acquiring, possessing, cultivating,

14 manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any

15 purpose except to assist ~~registered qualifying patients~~ patient cardholders with the medical use of

16 marijuana directly or through the qualifying patient's primary caregiver or authorized purchaser.

17 (8) All principal officers and board members of a compassion center must be residents of

18 the state of Rhode Island.

19 (9) Each time a new, registered, qualifying patient visits a compassion center, it shall

20 provide the patient with a frequently asked questions sheet, designed by the department, that

21 explains the limitations on the right to use medical marijuana under state law.

22 (10) Effective July 1, ~~2016~~ 2017, each compassion center shall be subject to any regulations

23 promulgated by the ~~departments~~ department of health and business regulation that specify how

24 ~~usable~~ marijuana must be tested for items included but not limited to cannabinoid profile and

25 contaminants.

26 (11) Effective January 1, 2017, each compassion center shall be subject to any product

27 labeling requirements promulgated by the department of business regulation.

28 (12) Each compassion center shall develop, implement, and maintain on the premises

29 employee, volunteer, and agent policies and procedures to address the following requirements:

30 (i) A job description or employment contract developed for all employees and agents, and

31 a volunteer agreement for all volunteers, that includes duties, authority, responsibilities,

32 qualifications, and supervision; and

1 and volunteer that includes an application and a record of any disciplinary action taken.

2 (14) Each compassion center shall develop, implement, and maintain on the premises an

3 on-site training curriculum, or enter into contractual relationships with outside resources capable

4 of meeting employee training needs, that includes, but is not limited to, the following topics:

5 (i) Professional conduct, ethics, and patient confidentiality; and

6 (ii) Informational developments in the field of medical use of marijuana.

7 (15) Each compassion center entity shall provide each employee, agent, and volunteer, at

8 the time of his or her initial appointment, training in the following:

9 (i) The proper use of security measures and controls that have been adopted; and

10 (ii) Specific procedural instructions on how to respond to an emergency, including robbery

11 or violent accident.

12 (16) All compassion centers shall prepare training documentation for each employee and

13 volunteer and have employees and volunteers sign a statement indicating the date, time, and place

14 the employee and volunteer received said training and topics discussed, to include name and title

15 of presenters. The compassion center shall maintain documentation of an employee's and a

16 volunteer's training for a period of at least six (6) months after termination of an employee's

17 employment or the volunteer's volunteering.

18 (g) Maximum amount of usable marijuana to be dispensed:

19 (1) A compassion center or principal officer, board member, agent, volunteer, or employee

20 of a compassion center may not dispense more than two and one-half ~~(2.5)~~ ounces (2.5 oz.) of

21 usable marijuana, or its equivalent, to a qualifying patient directly or through a qualifying patient's

22 primary caregiver or authorized purchaser during a fifteen-day (15) period;

23 (2) A compassion center or principal officer, board member, agent, volunteer, or employee

24 of a compassion center may not dispense an amount of usable marijuana, or its equivalent,

25 ~~seedlings, or mature marijuana plants~~, to a patient cardholder, qualifying patient, a qualifying

26 patient's primary caregiver, or a qualifying patient's authorized purchaser that the compassion

27 center, principal officer, board member, agent, volunteer, or employee knows would cause the

28 recipient to possess more marijuana than is permitted under the Edward O. Hawkins and Thomas

29 C. Slater Medical Marijuana Act.

30 (3) Compassion centers shall utilize a database administered by the departments of health

31 and business regulation. The database shall ~~contains~~ contain all compassion centers' transactions

32 according to qualifying patients, authorized purchasers', and primary caregivers', registry

1 by qualifying patients, authorized purchasers or primary caregivers. Before dispensing marijuana

2 to any patient, or authorized purchaser, the compassion center must utilize the database to ensure

3 that a qualifying patient is not dispensed more than two and one-half ~~(2.5)~~ ounces (2.5 oz.) of usable

4 marijuana or its equivalent directly or through the qualifying patient's primary caregiver or

5 authorized purchaser during a fifteen-day (15) period.

6 (h) Immunity:

7 (1) No ~~registered~~ licensed compassion center shall be subject to prosecution; search, except

8 by the departments pursuant to subsection (e); seizure; or penalty in any manner, or denied any

9 right or privilege, including, but not limited to, civil penalty or disciplinary action by a business,

10 occupational, or professional licensing board or entity, solely for acting in accordance with this

11 section to assist registered qualifying patients.

12 (2) No ~~registered~~ licensed compassion center shall be subject to prosecution, seizure, or

13 penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty

14 or disciplinary action, by a business, occupational, or professional licensing board or entity, for

15 selling, giving, or distributing marijuana in whatever form, and within the limits established by, the

16 department of health or the department of business regulation to another registered compassion

17 center.

18 (3) No principal officers, board members, agents, volunteers, or employees of a registered

19 compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in any manner,

20 or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by

21 a business, occupational, or professional licensing board or entity, solely for working for or with a

22 compassion center to engage in acts permitted by this section.

23 (4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or

24 denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,

25 termination, or loss of employee or pension benefits, for any and all conduct that occurs within the

26 scope of his or her employment regarding the administration, execution and/or enforcement of this

27 act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

28 (i) Prohibitions:

29 (1) A compassion center must limit its inventory of seedlings, plants, and ~~usable~~ marijuana

30 to reflect the projected needs of qualifying patients;

31 (2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a

32 person other than a patient cardholder or to s~~uch~~ a qualified patient's primary caregiver or

33 authorized purchaser;

1 any entity other than a marijuana establishment licensee in accordance with the provisions of this

2 chapter;

3 (4) A person found to have violated paragraph (2) or (3) of this subsection may not be an

4 employee, agent, volunteer, principal officer, or board member of any compassion center;

5 (5) An employee, agent, volunteer, principal officer or board member of any compassion

6 center found in violation of paragraph (2) or (3) shall have his or her registry identification revoked

7 immediately; and

8 (6) No person who has been convicted of a felony drug offense or has entered a plea of

9 nolo contendere for a felony drug offense with a sentence or probation may be the principal officer,

10 board member, or agent~~, volunteer, or employee~~ of a compassion center unless the department has

11 determined that the person's conviction was for the medical use of marijuana or assisting with the

12 medical use of marijuana in accordance with the terms and conditions of this chapter. A person

13 who is employed by or is an agent, volunteer, principal officer, or board member of a compassion

14 center in violation of this section is guilty of a civil violation punishable by a fine of up to one

15 thousand dollars ($1,000). A subsequent violation of this section is a misdemeanor.

16 (j) Legislative oversight committee:

17 (1) The general assembly shall appoint a nine-member (9) oversight committee comprised

18 of: one member of the house of representatives; one member of the senate; one physician to be

19 selected from a list provided by the Rhode Island medical society; one nurse to be selected from a

20 list provided by the Rhode Island state nurses association; two (2) registered qualifying patients;

21 one registered primary caregiver; one patient advocate to be selected from a list provided by the

22 Rhode Island patient advocacy coalition; and the superintendent of the department of public safety,

23 or his/her designee.

24 (2) The oversight committee shall meet at least six (6) times per year for the purpose of

25 evaluating and making recommendations to the general assembly regarding:

26 (i) Patients' access to medical marijuana;

27 (ii) Efficacy of compassion centers;

28 (iii) Physician participation in the Medical Marijuana Program;

29 (iv) The definition of qualifying medical condition; and

30 (v) Research studies regarding health effects of medical marijuana for patients.

31 (3) On or before January 1 of every even numbered year, the oversight committee shall

32 report to the general assembly on its findings.

33 (k) License required. No person or entity shall engage in activities described in § 21-28.6-

1 21-28.6-14. Cooperative cultivations.

2 (a) Two (2) or more qualifying cardholders may cooperatively cultivate marijuana in

3 residential or non-residential locations subject to the following restrictions:

4 (1) Effective January 1, 2017, cooperative cultivations shall apply to the department of

5 business regulation for a license to operate;

6 (2) A registered patient or primary caregiver cardholder can only cultivate in one location,

7 including participation in a cooperative cultivation;

8 (3) No single location may have more than one cooperative cultivation. For the purposes

9 of this section, location means one structural building, not units within a structural building;

10 (4) The cooperative cultivation shall not be visible from the street or other public areas;

11 (5) A written acknowledgement of the limitations of the right to use and possess marijuana

12 for medical purposes in Rhode Island that is signed by each cardholder and is displayed prominently

13 in the premises cooperative cultivation;

14 (6) Cooperative cultivations are restricted to the following possession limits:

15 (i) A non-residential, cooperative cultivation may have no more than ten (10) ounces of

16 dried ~~usable~~ marijuana, or its equivalent which satisfies the requirements of this chapter, and an

17 amount of wet marijuana set in regulations promulgated by the department of business regulation,

18 forty-eight (48) mature marijuana plants, and forty-eight (48) seedlings;

19 (ii) A residential, cooperative cultivation may have no more than ten (10) ounces of dried

20 ~~useable~~ marijuana, or its equivalent which satisfies the requirements of this chapter, and an amount

21 of wet marijuana set in regulations promulgated by the department of business regulation, twenty-

22 four (24) mature marijuana plants, and twenty-four (24) seedlings;

23 (iii) A non-residential or residential, cooperative cultivation must have displayed

24 prominently on the premises its license issued by the department of business regulation;

25 (iv) Every marijuana plant possessed by a cooperative cultivation must be accompanied by

26 a valid medical marijuana tag issued by the department of business regulation pursuant to § 21-

27 28.6-15. Each cooperative cultivation must purchase at least one medical marijuana tag in order to

28 remain a licensed cooperative cultivation; and

29 (v) Cooperative cultivations are subject to reasonable inspection by the department of

30 business regulation for the purposes of enforcing regulations promulgated pursuant to this chapter

31 and all applicable Rhode Island general laws.

32 (7) Cooperative cultivations must be inspected as follows:

33 (i) A non-residential, cooperative cultivation must have displayed prominently on the

34 premises documentation from the municipality where the single location is located that the location

1 and the cultivation has been inspected by the municipal building and/or zoning official and the

2 municipal fire department and is in compliance with any applicable state or municipal housing and

3 zoning codes; and

4 (ii) A residential, cooperative cultivation must have displayed prominently on the premises

5 an affidavit by a licensed electrician that the cultivation has been inspected and is in compliance

6 with any applicable state or municipal housing and zoning codes for the municipality where the

7 cooperative cultivation is located.

8 (8) Cooperative cultivations must report the location of the cooperative cultivation to the

9 department of public safety.

10 (9) The reports provided to the department of public safety in subsection (8) of this section

11 shall be confidential, but locations may be confirmed for law enforcement purposes. The report of

12 the location of the cooperative cultivation alone shall not constitute probable cause for a search of

13 the cooperative cultivation.

14 (10) The department of business regulation shall promulgate regulations governing the

15 licensing and operation of cooperative cultivations, and may promulgate regulations that set a fee

16 for a cooperative cultivation license.

17 (b) Any violation of any provision of this chapter or regulations promulgated hereunder as

18 determined by the department of business regulation may result in the revocation/suspension of the

19 cooperative cultivation license.

20 (c) License required. No person or entity shall engage in activities described in § 21-28.6-

21 14 without a cooperative cultivation license issued by the department of business regulation.

22 (d) Effective July 1, 2019, except as to cooperative cultivator licenses issued by the

23 department of business regulation before July 1, 2019, the department of business regulation shall

24 no longer accept applications or renewals for licensed cooperative cultivations and cooperative

25 cultivations shall no longer be permitted.

26 (e) Effective July 1, 2019, not more than one registered cardholder shall be permitted to

27 grow marijuana in a dwelling unit or commercial unit, except for two (2) or more qualifying patient

28 or primary caregiver cardholder(s) who are primary residents of the same dwelling unit where the

29 medical marijuana plants are grown and in all instances subject to the plant limits provided in § 21-

30 28.6-4(r).

31 21-28.6-15. Medical Marijuana Plant Tags.

32 (a) Effective January 1, 2017, the department of business regulation shall make medical

33 marijuana tag sets available for purchase. Effective April 1, 2017, every marijuana plant, either

34 mature or ~~seedling~~ immature, grown by a registered patient or primary caregiver must be

1 accompanied by a physical medical marijuana tag purchased through the department of business

2 regulation and issued by the ~~department of health~~ department of business regulation to qualifying

3 patients and primary caregivers ~~or by the department of business regulation to licensed cultivators~~.

4 (1) The department of business regulation shall charge an annual fee for each medical

5 marijuana tag set which shall include one tag for a mature medical marijuana plant and one tag for

6 ~~a seedling~~ an immature plant. If the required fee has not been paid, those medical marijuana tags

7 shall be considered expired and invalid. The fee established by the department of business

8 regulation shall be in accordance with the following requirements:

9 (i) For patient cardholders authorized to grow medical marijuana by the ~~department of~~

10 ~~health~~ department of business regulation, the fee per tag set shall not exceed twenty-five dollars

11 ($25);

12 (ii) For primary caregivers, the fee per tag set shall not exceed twenty-five dollars ($25);

13 (iii) For patients that qualify for reduced-registration due to income or disability status,

14 there shall be no fee per tag set;

15 (iv) For caregivers who provide care for a patient cardholder who qualifies for reduced-

16 registration due to income or disability status, there shall be no fee per tag set for such qualifying

17 patient; and

18 (v) For licensed medical marijuana cultivators, the fee per tag set shall be established in

19 regulations promulgated by the department of business regulation.

20 (2) Effective January 1, 2017, the department of business regulation shall verify with the

21 department of health that all medical marijuana tag purchases are made by qualifying patient

22 cardholders or primary caregiver cardholders. The department of health shall provide this

23 verification according to qualifying patients' and primary caregivers' registry identification

24 numbers and without providing access to any applications or supporting information submitted by

25 qualifying patients to protect patient confidentiality;

26 (3) Effective January 1, 2017 and thereafter, the department of business regulation shall

27 verify with the department of health that all medical marijuana tag purchases are made by registered

28 patient cardholders who have notified the department of health of their election to grow medical

29 marijuana or primary caregiver cardholders. The department of health shall provide this verification

30 according to qualifying patients' and primary caregivers' registry identification numbers and

31 without providing access to any applications or supporting information submitted by qualifying

32 patients to protect patient confidentiality;

33 (4) The department of business regulation shall maintain information pertaining to medical

34 marijuana tags ~~and shall share that information with the department of health.~~

1 (5) All primary caregivers shall purchase at least one medical marijuana tag set for each

2 patient under their care and all patients growing medical marijuana for themselves shall purchase

3 at least one medical marijuana tag set.

4 (6) All licensed medical marijuana cultivators shall purchase at least one medical marijuana

5 tag set or utilize a seed to sale tracking system.

6 (7) The ~~departments~~ department of business regulation ~~and health~~ shall ~~jointly~~ promulgate

7 regulations to establish a process by which medical marijuana tags may be returned ~~to either~~

8 ~~department~~. The department of business regulation may choose to reimburse a portion or the entire

9 amount of any fees paid for medical marijuana tags that are subsequently returned.

10 (b) Enforcement:

11 (1) If a patient cardholder, primary caregiver cardholder, licensed compassion center, or

12 licensed medical marijuana cultivator violates any provision of this chapter or the regulations

13 promulgated hereunder as determined by the departments of business regulation ~~and~~ or health, his

14 or her medical marijuana tags may be revoked. In addition, the department that issued the

15 cardholder's registration or the license may revoke the cardholder's registration or license ~~pursuant~~

16 ~~to §21-28.6-9~~.

17 (2) The department of business regulation may revoke and not reissue, pursuant to

18 regulations, medical marijuana tags to any cardholder or licensee who is convicted of; placed on

19 probation; whose case is filed pursuant to §12-10-12 where the defendant pleads nolo contendere;

20 or whose case is deferred pursuant to §12-19-19 where the defendant pleads nolo contendere for

21 any felony offense under chapter 28 of title 21 ("Rhode Island Controlled Substances Act") or a

22 similar offense from any other jurisdiction.

23 (3) If a patient cardholder, primary caregiver cardholder, licensed cooperative cultivation,

24 compassion center, licensed medical marijuana cultivator or any other person or entity is found to

25 have ~~mature~~ marijuana plants, or marijuana material without valid medical marijuana tags sets or

26 which are not tracked in accordance with regulation, the ~~department or health or~~ department of

27 business regulation shall impose an administrative penalty in accordance with regulations

28 promulgated by the department on such patient cardholder, primary caregiver cardholder, licensed

29 cooperative cultivation, compassion center, licensed medical marijuana cultivator or other person

30 or entity for each untagged ~~mature~~ marijuana plant or unit of untracked marijuana material ~~not in~~

31 ~~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 total~~

32 ~~fee that would be paid by a cardholder or licensee who purchased medical marijuana tags for such~~

33 ~~plants in compliance with this chapter.~~

34 ~~(4) If a patient cardholder, primary caregiver cardholder, or licensed cooperative~~

1 ~~cultivation is found to have mature marijuana plants exceeding the limits set forth in §21-28.6-4,~~

2 ~~§21-28.6-14, and §21-28.6-16 in addition to any penalties that may be imposed pursuant to §21~~

3 ~~28.6-9, the department of health or department of business regulation may impose an administrative~~

4 ~~penalty on that cardholder or license holder for each mature marijuana plant in excess of the~~

5 ~~applicable statutory limit of no less than the total fee that would be paid by a cardholder who~~

6 ~~purchased medical marijuana tags for such plants in compliance with this chapter.~~

7 21-28.6-16. Licensed medical marijuana cultivators.

8 (a) A licensed medical marijuana cultivator licensed under this section may acquire,

9 possess, manufacture, cultivate, deliver, or transfer medical marijuana to licensed compassion

10 centers, to another licensed medical marijuana cultivator. A licensed medical marijuana cultivator

11 shall not be a primary caregiver cardholder registered with any qualifying patient(s) and shall not

12 hold a cooperative cultivation license. Except as specifically provided to the contrary, all provisions

13 of chapter 28.6 of title 21 (the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act),

14 apply to a licensed medical marijuana cultivator unless they conflict with a provision contained in

15 § 21-28.6-16.

16 (b) Licensing of medical marijuana cultivators – Department of business regulation

17 authority. The department of business regulation shall promulgate regulations governing the

18 manner in which it shall consider applications for the licensing of medical marijuana cultivators,

19 including regulations governing:

20 (1) The form and content of licensing and renewal applications;

21 (2) Minimum oversight requirements for licensed medical marijuana cultivators;

22 (3) Minimum record-keeping requirements for cultivators;

23 (4) Minimum security requirements for cultivators; and

24 (5) Procedures for suspending, revoking, or terminating the license of cultivators that

25 violate the provisions of this section or the regulations promulgated pursuant to this subsection.

26 (c) A licensed medical marijuana cultivator license issued by the department of business

27 regulation shall expire one year after it was issued and the licensed medical marijuana cultivator

28 may apply for renewal with the department in accordance with its regulations pertaining to licensed

29 medical marijuana cultivators.

30 (d) The department of business regulation shall promulgate regulations that govern how

31 many marijuana plants, ~~how many marijuana seedlings~~ mature and immature, how much wet

32 marijuana, and how much usable marijuana a licensed medical marijuana cultivator may possess.

33 Every marijuana plant possessed by a licensed medical marijuana cultivator must be accompanied

34 by valid medical marijuana tag issued by the department of business regulation pursuant to § 21-

1 28.6-15 or catalogued in a seed to sale inventory tracking system in accordance with regulations

2 promulgated by the department of business regulation. ~~Each cultivator must purchase at least one~~

3 ~~medical marijuana tag or in order to remain a licensed cultivator.~~

4 (e) Medical marijuana cultivators shall only sell marijuana to compassion centers, another

5 licensed medical marijuana cultivator. All marijuana possessed by a cultivator in excess of the

6 possession limit established pursuant to subsection (d) shall be under formal agreement to be

7 purchased by a marijuana establishment ~~compassion center~~. If such excess marijuana is not under

8 formal agreement to be purchased, the cultivator will have a period of time, specified in regulations

9 promulgated by the department of business regulation, to sell or destroy that excess marijuana. The

10 department may suspend and/or revoke the cultivator's license and the license of any officer,

11 director, employee, or agent of such cultivator and/or impose an administrative penalty in

12 accordance with such regulations promulgated by the department for any violation of this section

13 or the regulations. In addition, any violation of this section or the regulations promulgated pursuant

14 to this subsection and subsection (d) shall cause a licensed medical marijuana cultivator to lose the

15 protections described in subsection (m) and may subject the licensed medical marijuana cultivator

16 to arrest and prosecution under Chapter 28 of title 21 (the Rhode Island Controlled Substances Act).

17 (f) Medical marijuana cultivators shall be subject to any regulations promulgated by the

18 department of health or department of business regulation that specify how marijuana must be

19 tested for items, including, but not limited to, potency, cannabinoid profile, and contaminants;

20 (g) Medical marijuana cultivators shall be subject to any product labeling requirements

21 promulgated by the department of business regulation and the department of health;

22 (h) Notwithstanding any other provisions of the general laws, the manufacture or

23 processing of marijuana using a solvent extraction process that includes the use of a compressed,

24 flammable gas as a solvent by a licensed medical marijuana cultivator shall not be subject to the

25 protections of this chapter.

26 (i) Medical marijuana cultivators shall only be licensed to grow, medical marijuana at a

27 single location, registered with the department of business regulation and the department of public

28 safety. The department of business regulation may promulgate regulations governing where

29 cultivators are allowed to grow. Medical marijuana cultivators must abide by all local ordinances,

30 including zoning ordinances.

31 (j) Inspection. Medical marijuana cultivators 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 (k) The cultivator applicant, unless he or she are an employee with no equity, ownership,

1 financial interest, or managing control, shall apply to the bureau of criminal identification of the

2 department of attorney general, department of public safety division of state police, or local police

3 department for a national criminal records check that shall include fingerprints submitted to the

4 Federal Bureau of Investigation. Upon the discovery of any disqualifying information as defined

5 in subdivision (k)(2), and in accordance with the rules promulgated by the director of the

6 department of business regulation, the bureau of criminal identification of the department of

7 attorney general, department of public safety division of state police, or the local police department

8 shall inform the applicant, in writing, of the nature of the disqualifying information; and, without

9 disclosing the nature of the disqualifying information, shall notify the department of business

10 regulation, in writing, that disqualifying information has been discovered.

11 (1) In those situations in which no disqualifying information has been found, the bureau of

12 criminal identification of the department of attorney general, department of public safety division

13 of state police, or the local police department shall inform the applicant and the department of

14 business regulation, in writing, of this fact.

15 (2) Information produced by a national criminal records check pertaining to a conviction

16 for a felony drug offense or a plea of nolo contendere for a felony drug offense and received a

17 sentence of probation shall result in a letter to the applicant and the department of business

18 regulation disqualifying the applicant.

19 (3) ~~The~~ Except for employees with no ownership, equity, financial interest, or managing

20 control of a marijuana establishment license, the cultivator applicant shall be responsible for any

21 expense associated with the national criminal records check.

22 (l) Persons issued medical marijuana cultivator licenses shall be subject to the following:

23 (1) A licensed medical marijuana cultivator cardholder shall notify and request approval

24 from the department of business regulation of any change in his or her name or address within ten

25 (10) days of such change. A cultivator cardholder who fails to notify the department of business

26 regulation of any of these changes is responsible for a civil infraction, punishable by a fine of no

27 more than one hundred fifty dollars ($150).

28 (2) When a licensed medical marijuana cultivator cardholder notifies the department of

29 business regulation of any changes listed in this subsection, the department of business regulation

30 shall issue the cultivator cardholder a new ~~license~~ registry identification card after the department

31 approves the changes and receives from the licensee payment of a fee specified in regulation.

32 (3) If a licensed medical marijuana cultivator cardholder loses his or her ~~license~~ card, he or

33 she shall notify the department of business regulation and submit a fee specified in regulation within

34 ten (10) days of losing the ~~license~~ card. The department of business regulation shall issue a new

1 ~~license~~ card with a new random identification number.

2 (4) A licensed medical marijuana cultivator cardholder shall notify the department of

3 business regulation of any disqualifying criminal convictions as defined in subdivision (k)(2). The

4 department of business regulation may choose to suspend and/or revoke his or her ~~license~~ card after

5 such notification.

6 (5) If a licensed medical marijuana cultivator or cultivator cardholder violates any

7 provision of this chapter or regulations promulgated hereunder as determined by the department of

8 business regulation, his or her card and the issued license may be suspended and/or revoked.

9 (m) Immunity:

10 (1) No licensed medical marijuana cultivator shall be subject to prosecution; search, except

11 by the departments pursuant to subsection (j); seizure; or penalty in any manner, or denied any right

12 or privilege, including, but not limited to, civil penalty or disciplinary action by a business,

13 occupational, or professional licensing board or entity, solely for acting in accordance with this

14 section ~~to assist registered qualifying~~;

15 (2) No licensed medical marijuana cultivator shall be subject to prosecution, seizure, or

16 penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty

17 or disciplinary action by a business, occupational, or professional licensing board or entity, for

18 selling, giving, or distributing marijuana in whatever form and within the limits established by the

19 department of business regulation to a licensed compassion center;

20 (3) No principal officers, board members, agents, volunteers, or employees of a licensed

21 medical marijuana cultivator shall be subject to arrest, prosecution, search, seizure, or penalty in

22 any manner, or denied any right or privilege, including, but not limited to, civil penalty or

23 disciplinary action by a business, occupational, or professional licensing board or entity, solely for

24 working for or with a licensed medical marijuana cultivator to engage in acts permitted by this

25 section.

26 (4) No state employee shall be subject to arrest, prosecution, or penalty in any manner, or

27 denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,

28 termination, or loss of employee or pension benefits, for any and all conduct that occurs within the

29 scope of his or her employment regarding the administration, execution, and/or enforcement of this

30 act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

31 (n) License required. No person or entity shall engage in activities described in § 21-28.6-

32 16 without a medical marijuana cultivator license issued by the department of business regulation.

33 (o) Effective July 1, 2019, the department of business regulation will not reopen the

34 application period for new medical marijuana cultivator licenses.

1 21-28.6-16.2. ~~Medical marijuana testing laboratories – Immunity.~~ Cannabis testing

2 laboratories -- Immunity.

3 (a) No ~~medical marijuana~~ cannabis testing laboratory shall be subject to prosecution; search

4 (except by the departments pursuant to regulations); seizure; or penalty in any manner, or denied

5 any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business,

6 occupational, or professional licensing board or entity, solely for acting in accordance with the act

7 and regulations promulgated hereunder to assist licensees.

8 (b) No ~~medical marijuana~~ cannabis testing laboratory shall be subject to prosecution, search

9 (except by the departments pursuant to regulations), seizure, or penalty in any manner, or denied

10 any right or privilege, including, but not limited to, civil penalty or disciplinary action, by a

11 business, occupational, or professional licensing board or entity, for selling, giving, or distributing

12 marijuana in whatever form, and within the limits established by, the department of health to

13 another ~~medical marijuana~~ cannabis testing laboratory.

14 (c) No principal officers, board members, agents, volunteers, or employees of a ~~medical~~

15 ~~marijuana~~ cannabis testing laboratory shall be subject to arrest, prosecution, search, seizure, or

16 penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty

17 or disciplinary action by a business, occupational, or professional licensing board or entity, solely

18 for working for or with a ~~medical marijuana~~ cannabis testing laboratory to engage in acts permitted

19 by the act and the regulations promulgated hereunder.

20 (d) No state employee shall be subject to arrest, prosecution or penalty in any manner, or

21 denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,

22 termination, or loss of employee or pension benefits, for any and all conduct that occurs within the

23 scope of his or her employment regarding the administration, execution and/or enforcement of this

24 act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

25 21-28.6-17. Revenue.

26 (a) Effective July 1, 2016, all fees collected by the departments of health and business

27 regulation from applicants, registered patients, primary caregivers, authorized purchasers, licensed

28 medical marijuana cultivators, cooperative cultivations, compassion centers, other licensees

29 licensed pursuant to this chapter, and compassion-center and other registry identification

30 cardholders shall be placed in restricted-receipt accounts to support the state's medical marijuana

31 program, including but not limited to, payment of expenses incurred by the departments of health

32 and business regulation for the administration of the program. The restricted receipt account will

33 be known as the "medical marijuana licensing account" and will be housed within the budgets of

34 the department of business regulation, and health.

1 (b) All revenues remaining in the restricted-receipt accounts after payments specified in

2 subsection (a) of this section shall first be paid to cover any existing deficit in the department of

3 health's restricted-receipt account or the department of business regulation's restricted-receipt

4 account. These transfers shall be made annually on the last business day of the fiscal year.

5 (c) All revenues remaining in the restricted-receipt accounts after payments specified in

6 subsections (a) and (b) shall be paid into the state's general fund. These payments shall be made

7 annually on the last business day of the fiscal year.

8 SECTION 6. Chapter 21-28.6 of the General Laws entitled "The Edward O. Hawkins and

9 Thomas C. Slater Medical Marijuana Act" is hereby amended by adding thereto the following

10 section:

11 21-28.6-18. Activities not exempt.

12 The provisions of this chapter do not exempt any person from arrest, civil or criminal

13 penalty, seizure or forfeiture of assets, discipline by any state or local licensing board or authority,

14 and state prosecution for, nor may they establish an affirmative defense based on this chapter to

15 charges arising from, any of the following acts:

16 (1) Driving, operating, or being in actual physical control of a vehicle or a vessel under

17 power or sail while impaired by marijuana or marijuana products;

18 (2) Possessing or using marijuana or marijuana products if the person is a prisoner;

19 (3) Possessing or using marijuana or marijuana products in any local detention facility,

20 county jail, state prison, reformatory, or other correctional facility, including, without limitation,

21 any facility for the detention of juvenile offenders; or

22 (4) Manufacturing or processing of marijuana products with the use of prohibited solvents,

23 in violation of chapter 28.6 of title 21; or.

24 (5) Possessing, using, distributing, cultivating, processing or manufacturing marijuana or

25 marijuana products which do not satisfy the requirements of this chapter.

26 SECTION 7. This act shall take effect upon passage.

2 ARTICLE

3 AN ACT RELATING TO CENTRAL FALLS RETIREES' BENEFICIARIES

4 SECTION 1. Section 45-21-67 of the General Laws in Chapter 45-21 entitled "Retirement

5 of Municipal Employees" is hereby amended to read as follows:

6 45-21-67. Central Falls retirees -- Settlement agreement.

7 (a) Definitions. As used in this section:

8 (1) "Base pension benefit" is the amount listed on Appendix A, Appendix D-A, and

9 Appendix E-A, attached to the settlement agreement, under the column labeled "amount prior to

10 reduction", which is the amount each Central Falls retiree was receiving as of July 31, 2011.

11 (2) "Central Falls retirees" are the retirees, or the beneficiaries of retirees, of the city of

12 Central Falls, listed on Appendix A to the settlement agreement, as amended from time to time,

13 when a retiree or beneficiary dies.

14 (3) "Settlement agreement" shall mean that settlement and release agreement, as set forth

15 in P.L. 2012, Ch. 241, Art. 22, signed by and between the receiver of the city of Central Falls, the

16 director of revenue and the participating retirees, approved by the bankruptcy court by order dated

17 January 9, 2012.

18 (b) Legislative findings and purpose.

19 (1) Pursuant to P.L. 2012, Ch. 241, Art. 22, which defined the terms of the initial

20 appropriation, the state made an appropriation of two million six hundred thirty-six thousand nine

21 hundred thirty-two dollars ($2,636,932), which was deposited into a restricted account held by the

22 city of Central Falls, for the purpose of supplementing the reduced pensions of the Central Falls

23 retirees, to enable the city to pay the Central Falls retirees seventy-five percent (75%) of their base

24 pension benefit as of July 31, 2011, for a five-year (5) period, with the last supplemental

25 appropriation to be paid on or within thirty (30) days of July 1, 2015.

26 (2) The drastic pension reductions experienced by the Central Falls retirees provided a

27 harsh example of the risks of unfunded-pension liabilities, which, in turn, provided the primary

28 incentive toward successful pension negotiations with other municipal, police, and fire retirees,

29 saving the state more than sixty million dollars ($60,000,000).

30 (3) If said appropriation is not made prior to July 1, 2016, the Central Falls retirees, many

31 of whom sustained serious and permanent injuries in service to the city, will have their pensions

32 reduced yet again, in some instances to less than sixty percent (60%) of the pension they were

1 receiving on July 11, 2011.

2 (4) It is fair and just that the state appropriate sufficient funds to the city to supplement the

3 city's funding of the pension benefits to the Central Falls retirees to ensure that the Central Falls

4 retirees continue to receive no less than seventy-five percent (75%) of the base pension benefit,

5 after taking into account all applicable cost-of-living adjustments, for their lifetime, and to the

6 extent applicable, for the life of their beneficiaries.

7 (c) Appropriation payment.

8 (1) Appropriation payment and restrictions on use. In accordance with the terms set forth

9 in Article 22 and the settlement agreement, the state shall annually appropriate sufficient funds to

10 the restricted account for the city of Central Falls to supplement the city's funding for payments to

11 Central Falls retirees in order that they continue to receive no less than seventy-five percent (75%)

12 of their base pension benefit as of July 31, 2011, after taking into account all applicable cost-of-

13 living adjustments, for their lifetime, and to the extent applicable, for the life of their beneficiaries.

14 Such appropriation shall be determined annually by an actuarial valuation ("appropriation

15 amount"), and it is expected over the life of the existing retirees to total four million eight hundred

16 seventeen thousand seven hundred eight dollars ($4,817,708).

17 (2) Deposit of appropriation payment and payments to Central Falls retirees. The

18 appropriation payment shall be immediately deposited by the city into the previously established

19 "participating retirees restricted five-year (5) account", which shall be redesignated as the

20 "participating retirees' restricted account." The participating retirees' account shall be administered

21 by the city and not by any third-party pension-fund manager.

22 (d) Any and all withdrawals, transfers, and payments from the participating retirees'

23 account shall be made as set forth in the settlement agreement and accompanying appendices and

24 said Article 22 (c) until the payments are made on July 1, 2015.

25 (e) Beginning on or within thirty (30) days of July 1, 2016, and annually thereafter, with

26 payments to be paid each retiree or beneficiary as applicable on or within thirty (30) days of July

27 1 of each year they are eligible for benefits under the Central Falls pension plan, the city shall

28 distribute to each participating retiree or beneficiary the annual amount listed on the actuarial

29 spreadsheets prepared by Sherman Actuarial Services, which shall supplement the pension

30 payments paid by the city in order that each retiree will receive no less than seventy-five percent

31 (75%) of his or her base pension benefit, after taking into account all applicable cost-of-living

32 adjustments, for his or her lifetime, and to the extent applicable, sixty-seven and one-half percent

33 (67.5%) of the base pension benefit, after taking into account all applicable cost-of-living

34 adjustments, to his or her beneficiaries for his or her lifetime. Such supplemental distributions shall

1 be made by the city when the funds appropriated by the state are made available to the city, which

2 shall be as close to July 1 as practicable.

3 (f) Relationship to base pension payments. The supplemental payments to the Central Falls

4 retirees from the participating retirees' restricted account shall not be included in the calculation of

5 base pension benefits for the purposes of determining a retiree's or beneficiary's cost-of-living

6 adjustment.

7 (g) The cost-of-living adjustments as set forth in the settlement agreement are to be paid

8 by the city of Central Falls to the Central Falls retirees, and to the extent applicable, their

9 beneficiaries.

10 (h) The following provision shall amend and supersede P.L. 2012, Ch. 241, Art. 22 (c)(4)

11 regarding the balance in the participating retirees' restricted account as of August 1, 2015:

12 (1) Distribution of balance. As of August 1, 2015, no further supplemental payments shall

13 be distributed to the Central Falls retirees under the terms of the settlement agreement. The balance

14 of monies in the participating retirees' restricted account shall be distributed in accordance with this

15 Article, in the amounts and to those retirees and beneficiaries listed on the actuarial spreadsheets

16 prepared by Sherman Actuarial Services, LLC and maintained and administered by the city. The

17 amounts set forth on the actuarial spreadsheets will supplement the pension payments being made

18 by the city in order that each retiree will receive no less than seventy-five percent (75%) of their

19 base pension benefit, after taking into account all applicable cost-of-living adjustments, for his or

20 her lifetime, and to the extent applicable, sixty-seven and one-half percent (67.5%) of the base

21 pension benefit, after taking into account all applicable cost-of-living adjustments, to their

22 beneficiaries for his or her lifetime.

23 (2) Any monies remaining in the participating retirees' restricted account after the last-

24 living retiree attains seventy-five percent (75%) of the base pension benefit, after taking into

25 account all applicable cost-of-living adjustments, or last-living beneficiary attains sixty-seven and

26 one-half percent (67.5%) of the base pension benefit, after taking into account all applicable cost-

27 of-living adjustments, shall be returned to the state under state law.

28 (i) Access to account information and records. The city shall maintain appropriate account

29 information and records relating to all receipts into, maintenance of, and distributions from, the

30 participating retirees' restricted account, and shall allow, at all reasonable times, for the full

31 inspection and copying and sharing of information about such account and any and all payments

32 therefrom with any participating retiree and the state.

33 (j) Unclaimed payments. Any monies distributed to a participating retiree or beneficiary

34 from the participating retirees' restricted account and not claimed by a participating retiree or