2020 -- H 7615

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LC004374

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO TOWNS AND CITIES -- RHODE ISLAND COMMUNITY RESILIENCY

AND PRESERVATION ACT

     Introduced By: Representatives Ruggiero, Bennett, Slater, Cortvriend, and Chippendale

     Date Introduced: February 14, 2020

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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

amended by adding thereto the following chapter:

CHAPTER 69

RHODE ISLAND COMMUNITY RESILIENCY AND PRESERVATION ACT

     45-69-1. Short Title.

     This chapter shall be known and may be cited as the “Rhode Island Community

Resiliency and Preservation Act”.

     45-69-2. Findings and Purposes.

     The general assembly finds and declares that:

     (1) Capital investments in our communities are essential to protecting their character,

environment, heritage, quality of life, climate resilience, and economic vitality;

     (2) Cities and towns need capital funding to protect special open spaces, working farms,

forests, natural areas, and historic landmarks, as well as, to create parks and outdoor recreation

facilities that support all residents’ health and wellbeing;

     (3) Cities and towns need capital funding to restore and improve the climate resilience of

vulnerable coastal habitats, river and stream floodplains, and critical infrastructure for improving

community resilience to impacts from climate change;

     (4) Cities and towns need a reliable “pay as you go” source of funding for these capital

investments to reduce dependence on bond funding; and

     (5) Cities and towns need a reliable source of funding to provide the matching funds

required to receive state, federal and foundation grants.

     Therefore, the general assembly is providing cities and towns with the authority to

propose, for consideration and decision by their voters, a reliable source of capital funding for

investing in their community.

     45-69-3. Definitions.

     As used in this chapter, the following words shall have the following meaning:

     (1) “Acquire” means to obtain by gift, purchase, devise, grant, or otherwise.

     (2) “Capital improvement” means the reconstruction or alteration of real property that:

     (i) Materially adds to the value of the real property;

     (ii) Appreciably prolongs the useful life of the real property;

     (iii) Becomes part of the real property or is permanently affixed to the real property to the

extent that removal would cause material damage to the property or article itself; and

     (iv) Is intended to become a permanent installation or is intended to remain there for an

indefinite period of time.

     (3) “Community preservation” means the acquisition, creation, preservation and

restoration of open space; the acquisition and creation and preservation of historic resources; and

the creation and restoration of infrastructure necessary to adapt to rising sea levels, severe storms

and other impacts from changing climate.

     (4) “Community resiliency and preservation committee” means the committee

established by the city or town council of a city or town to make recommendations for

community preservation, as provided in § 45-69-6.

     (5) “Community resiliency and preservation fund” means the municipal fund established

under § 45-69-8.

     (6) “Historic resources” means any real property, structure, natural object, place,

landmark, landscape, archaeological site or configuration or any portion or group of the preceding

which has been listed on the federal or state register of historic places or that is considered by the

Rhode Island Historical Preservation and Heritage Commission to meet the eligibility criteria for

listing on the state register of historic places pursuant to § 42-45-5, or is located in a historic

district established by a municipality in accordance with chapter 24.1 of title 45.

     (7) “Maintenance” means the incidental repairs which neither materially add to the value

of the property nor, appreciably prolong the property’s life, but keep the property in a condition

of fitness, efficiency or readiness.

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     (8) “Open space” means and includes, but is not limited to, land to protect existing and

future well fields, aquifers and recharge areas, watershed land, agricultural land, grasslands,

fields, forest land, fresh and salt water marshes and other wetlands, ocean, river, stream, lake and

pond frontage, beaches, dunes and other coastal lands, lands to protect scenic vistas, land for

wildlife habitat or nature preserve and land for outdoor recreational use.

     (9) “Preservation” means the protection of personal or real property from injury, harm or

destruction.

     (10) “Real property” means land, buildings, appurtenant structures and fixtures attached

to buildings or land, including, where applicable, real property interests.

     (11) “Real property interest” means a present or future legal or equitable interest in or to

real property, including easements and restrictions, and any beneficial interest therein, including

the interest of a beneficiary in a trust which holds a legal or equitable interest in real property, but

shall not include an interest which is limited to the following:

     (i) An estate at will or at sufferance and any estate for years having a term of less than

thirty (30) years;

     (ii) The reversionary right, condition or right of entry for condition broken; or

     (iii) The interest of a mortgagee or other secured party in a mortgage or security

agreement.

     (12) “Recreational use” means the active or passive recreational use including, but not

limited to, the use of land for community gardens, trails, and noncommercial youth and adult

sports, and the use of land as a park, playground or athletic field. “Recreational use” shall not

include horse or dog racing or the use of land for a stadium, gymnasium or similar structure.

     (13) “Rehabilitation” means capital improvements, or the making of extraordinary repairs

to historic resources, open spaces, lands for recreational use and for the purpose of making such

historic resources, open spaces and lands for recreational use for their intended uses, including

but not limited to, improvements to comply with the Americans with Disabilities Act of 1990,

and other federal, state or local building or access codes; provided, that with respect to historic

resources, “rehabilitation” shall comply with the Standards for Rehabilitation stated in the United

States Secretary of the Interior’s Standards for the Treatment of Historic Properties codified in 36

C.F.R. Part 68; and provided further, that with respect to land for recreational use,

“rehabilitation” shall include the replacement of playground equipment and other capital

improvements to the land or the facilities thereon which make the land or the related facilities

more functional for the intended recreational use.

     45-69-4. Voter approval required.

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     (a) Any ordinance providing for the implementation of §§ 45-69-4 through 45-69-8,

which has been duly adopted by a city or town, shall only be effective upon its approval by the

voters of the city or town through a ballot question pursuant to this section.

     (b) The city or town council may vote to accept §§ 45-69-4 through 45-69-8, inclusive,

by approving a surcharge on real property of not more than three percent (3%) of the real estate

tax levy against real property, as determined annually by the assessor. The amount of the

surcharge shall not be included in a calculation of total maximum levy for purposes of § 44-5-2.

     (c) All exemptions and abatements of real property authorized by chapter 3 of title 44, or

any other law for which a taxpayer qualifies as eligible shall not be affected by this section. A

taxpayer receiving an exemption of real property authorized by chapter 3 of title 44, or any other

law shall be exempt from any surcharge on real property established under this section. The

surcharge to be paid by a taxpayer receiving an abatement of real property authorized by chapter

3 of title 44, or any other law shall be reduced in proportion to the amount of such abatement.

     (d) Any amount of the surcharge not paid by the due date shall bear interest at the rate per

annum provided in § 44-5-9.

     (e) The city or town council may vote to accept one or more of the following exemptions:

     (1) For property owned and occupied as a domicile by a person who would qualify for

low- or moderate-income housing in the city or town;

     (2) For commercial and industrial, properties in cities or towns with classified tax rates;

     (3) For the tax levy on one hundred thousand dollars ($100,000) of the value of each

taxable parcel of residential real property; or

     (4) For the tax levy on one hundred thousand dollars ($100,000) of the value of each

taxable parcel of commercial property and industrial property.

     (f) Upon approval by the city or town council, the actions of the body shall be submitted

for acceptance to the voters of a city or town at the next regular or special municipal or state

election. The city or town clerk or the secretary of state shall place the proposition on the ballot

in the form of the following question:

     "Shall this (city or town) accept §§ 45-69-4 through 45-69-8, as approved by its (city or

town) council, a summary of which appears below?"

     (Set forth here a fair, concise summary and purpose of the law to be acted upon, as

determined by the city or town solicitor, including, in said summary, the percentage of the

surcharge to be imposed.)

     If a majority of the voters voting on said question vote in the affirmative, then its

provisions shall take effect in the city or town, but not otherwise.

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     45-69-5. Imposition of surcharge.

     (a) Upon acceptance of §§ 45-69-4 through 45-69-8, inclusive, and upon the assessor's

warrant to the tax collector, the accepted surcharge shall be imposed.

     (b) After receipt of the warrant, the tax collector shall collect the surcharge in the amount

and according to the computation specified in the warrant and shall pay the amounts so collected,

quarterly according to the schedule for collection of property taxes for the tax on real property, to

the city's or town's treasurer. The tax collector shall cause appropriate books and accounts to be

kept with respect to such surcharge, which shall be subject to public examination upon reasonable

request from time to time.

     (c) The remedies provided by chapter 7 of title 44 for the collection of taxes upon real

estate shall apply to the surcharge on real property pursuant to this section.

     45-69-6. Community resiliency and preservation committee.

      (a) A city or town that accepts §§ 45-69-4 through 45-69-8, inclusive, shall establish by

ordinance a community resiliency and preservation committee. The committee shall consist of not

less than five (5) nor more than nine (9) members. The ordinance shall determine the composition

of the committee, the length of its term, and the method of selecting its members, whether by

election or appointment or by a combination thereof. The committee shall include, but not be

limited to: one member of the planning board established under § 45-22-1, as designated by the

board; one member of the municipal land trust or nonprofit land trust established pursuant to §

42-17.1-2(28)(ii), designated by the land trust; if no land trust exists, one member of the

conservation commissions established under chapter 35 of this title, as designated by the

commissions; one member representing historical preservation interests; one member

representing park and outdoor recreation interests; and one member representing community

adaptation to climate change impacts; and/or persons, as determined by the ordinance, acting in

the capacity of or performing like duties of the commissions, board or authority if they have not

been established in the city or town. If there are no persons acting in the capacity of or

performing like duties of any such commission, board or authority, the ordinance shall outline an

appointment process that assures that membership of the community resiliency and preservation

committee shall include individuals appointed with knowledge and interest in each subject matter:

land conservation, parks, historic preservation, and adaptation to climate impacts. A city or town

ordinance establishing this committee may designate the planning board established under § 45-

22-1 as the community resiliency and preservation committee.

     (b)(1) The community resiliency and preservation committee shall study the needs,

possibilities and resources of the city or town regarding community preservation, including the

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consideration of regional projects for community preservation. The committee shall consult with

existing municipal boards, including the conservation commissions, the historical commission,

the planning board, and the park department, or persons acting in those capacities or performing

like duties, in conducting such studies. As part of its study, the committee shall hold one or more

public informational hearings on the needs, possibilities and resources of the city or town

regarding community preservation possibilities and resources, notice of which shall be posted

publicly and published for each of two (2) weeks preceding a hearing in a newspaper of general

circulation in the city or town.

     (2) The community resiliency and preservation committee shall make recommendations

to the city or town council for the acquisition, creation and preservation of open space; for the

acquisition, preservation, rehabilitation and restoration of historic resources; for the acquisition,

creation, preservation, rehabilitation and restoration of land for recreational use; for rehabilitation

or restoration of open space that is acquired or created as provided in this section; and for capital

investments for improving the community's climate resilience as provided in this section;

provided, however, that funds expended pursuant to this section shall not be used for maintenance

and upkeep. With respect to recreational use, the acquisition of artificial turf for athletic fields

shall be prohibited.

     (3) The community resiliency and preservation committee may include in its

recommendation to the city or town council a recommendation to set aside for later spending

funds for specific purposes that are consistent with community preservation but for which

sufficient revenues are not then available in the community preservation fund to accomplish that

specific purpose.

     (c) The community resiliency and preservation committee shall not meet or conduct

business without the presence of a quorum. A majority of the members of the community

resiliency and preservation committee shall constitute a quorum. The community resiliency and

preservation committee shall approve its actions by majority vote. Recommendations to the city

or town council shall include their anticipated costs.

     (d) After receiving recommendations from the community resiliency and preservation

committee, the city or town council shall take such action and approve such appropriations from

the community preservation fund, as set forth in § 45-69-8, and such additional non-community

preservation fund appropriations as it deems appropriate to carry out the recommendations of the

community resiliency and preservation committee.

      (f) No real property, or interest therein, shall be acquired by any city or town for a price

exceeding the value of the property as determined by such city or town through procedures

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customarily accepted by the appraising profession as valid.

     45-69-7. Minimum spending requirements for community preservation fund.

     (a) In each fiscal year and upon the recommendation of the community resiliency and

preservation committee, the city or town council shall spend, or set aside for later spending, not

less than ten percent (10%) of the annual revenues in the community preservation fund for open

space, parks and outdoor recreation facilities; not less than ten percent (10%) of the annual

revenues for historic resources; and not less than ten percent (10%) of the annual revenues for

climate resilience. In each fiscal year, the city or town council shall make appropriations from

the community preservation fund as it deems necessary for the administrative and operating

expenses of the community resiliency and preservation committee and such appropriations shall

not exceed five percent (5%) of the annual revenues in the community preservation fund.

     (b) Funds that are set aside shall be held in the community preservation fund and spent in

that year or later years; provided, however, that funds set aside for a specific purpose shall be

spent only for the specific purpose. Any funds set aside may be expended in any city or town.

The community preservation funds shall not replace existing operating funds, only augment them.

     45-69-8. Establishment of community preservation fund.

     (a) A city or town that accepts §§ 45-69-4 through 45-69-8, inclusive, shall establish a

separate account to be known as the community preservation fund of which the municipal

treasurer shall be the custodian. The authority to approve expenditures from the fund shall be

limited to the city or town council upon recommendation from the community resiliency and

preservation committee, and the municipal treasurer shall pay such expenses.

     (b) The following monies shall be deposited in the fund:

     (1) All funds collected from the real property surcharge pursuant to § 45-69-5;

     (2) All funds received from the state or any other source for such purposes;

     (3) Proceeds from the disposal of real property acquired with funds from the community

preservation fund; and

     (4) All interest, dividends and other income from deposits or investments of the

community preservation fund. The expenditure of revenues from the fund shall be limited to

implementing the recommendations of the community resiliency and preservation committee and

providing administrative and operating expenses to the committee.

     45-69-9. Permanent conservation or preservation restrictions.

     (a) A real property interest that is acquired with monies from the community

preservation fund shall be bound by a permanent conservation or preservation restriction per

chapter 39 of title 34, recorded as a separate instrument and limiting the use of the interest to the

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purpose for which it was acquired. The permanent restriction shall run with the land and shall be

enforceable by the city or town or the state. The permanent restriction may also run to the benefit

of a nonprofit organization, charitable corporation or foundation selected by the city or town with

the right to enforce the restriction. The city or town council may appropriate monies from the

community preservation fund to pay a nonprofit organization created pursuant to § 42-17.1-

2(28)(ii), to hold, monitor and enforce the deed restriction on said property.

     (b) Real property interests acquired under this section shall be owned and managed by the

city or town, but the city or town council may delegate management of such property to a land

trust, conservation commission, historical commission, or park department as appropriate for the

property interests acquired, or, in the case of interests to acquire sites for future wellhead

development for drinking water, a water board, a water supply district or a fire district. The city

or town council may also delegate management of such property to a nonprofit organization

created under § 42-17.1-2(28)(ii).

     45-69-10. Accounting to be kept.

     The community resiliency and preservation committee shall keep a full and accurate

account of all of its actions, including its recommendations and the action taken on them, and

records of all appropriations or expenditures made from the community preservation fund. The

committee shall also keep records of any real property interests acquired, disposed of, or

improved by the city or town upon its recommendation, including the names and addresses of the

grantors or grantees and the nature of the consideration. The records and accounts shall be public

records.

     45-69-11. Acceptance of state grants.

     (a) Notwithstanding the provisions of any general or special law to the contrary, every

city or town that accepts §§ 45-69-4 through 45-69-8, inclusive, shall not be precluded from

participating in state grant programs.

     (b) State grant programs may include local adoption of this section among the criteria for

selection of grant recipients. Funds in the community preservation fund may be made available

and used by the city or town as the local share for state or federal grants upon recommendation of

the community resiliency and preservation committee and the city or town council, as provided

for in § 45-69-6, if such grants and such local share are used in a manner consistent with the

recommendations of the community resiliency and preservation committee.

     45-69-12. Amendment and revocation.

     (a) At any time after imposition of the surcharge, the city or town council may approve

and the voters may accept an amendment to the amount and computation of the surcharge, or to

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the amount of exemption or exemptions, in the same manner and within the limitations set forth

in this section.

      (b) At any time after the expiration of five (5) years after the date on which §§ 45-69-4

through 45-69-8, inclusive, have been accepted in a city or town, said sections may be revoked in

the same manner as they were accepted by such city or town, but the surcharge imposed under §

45-69-4 shall remain in effect in any such city or town, with respect to unpaid taxes on past

transactions and with respect to taxes due on future transactions, until all contractual obligations

incurred by the city or town prior to such termination shall have been fully discharged.

     SECTION 2. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

     44-5-87. Community preservation special purpose levy.

     (a) Cities and towns that adopt §§ 45-69-4 through 45-69-8 inclusive, according to the

procedures specified therein, may levy a surcharge on real property of not more than three percent

(3%) of the real estate tax levy against real property, as determined annually by the assessor.

     (b) Notwithstanding any provision of law or ordinance to the contrary, a special levy

adopted in accordance with the provisions of § 45-69-5, is not to be included in the calculation or

approval of the maximum levy as set forth in § 44-5-2.

     (c) The proceeds of said levy, as set forth in subsection (a) of this section, shall be used

solely for the purposes set forth in § 45-69-6.

     SECTION 3. This act shall take effect on July 1, 2020.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- RHODE ISLAND COMMUNITY RESILIENCY

AND PRESERVATION ACT

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     This act would authorize cities and towns with the authority to propose, for consideration

and decision by their voters, a reliable source of capital funding for investing in their community.

     This act would take effect on July 1, 2020.

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