2021 -- H 5630

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LC000558

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO HUMAN SERVICES -- AUTOMOBILE ACCIDENT SOCIAL PROTECTION

ACT

     Introduced By: Representative Ramon A. Perez

     Date Introduced: February 19, 2021

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

CHAPTER 23

AUTOMOBILE ACCIDENT SOCIAL PROTECTION ACT

     40-23-1. Short title.

     This chapter shall be known as the "Automobile Accident Social Protection Act".

     40-23-2. Definitions.

     As used in this chapter, the following terms shall have the meaning expressed below:

     (1) "AACA" means the Automobile Accident Compensation Administration.

     (2) "Board" means the board of directors of the automobile accident compensation division

of human services.

     (3) "Children" means children, stepchildren, children by adoption and foster children, it

being understood by the latter those individuals who without being children, stepchildren or

children by adoption, have been fostered by other persons as if they were their own children, during

a term of not less than three (3) years, or during two-thirds (2/3) of the life of the persons, whichever

of the two (2) terms is the shorter, immediately and consecutively preceding the date of the accident

which originates a claim under the provisions of this chapter.

     (4) "Department of human services" means the automobile accident compensation division

of the department of human services.

     (5) "Dependency" means whenever it is required that a person be dependent on another,

the dependency shall be economic, real and direct, of a substantial nature and not merely financial

assistance, by which a person depends on the financial contributions of another for sustenance.

     (6) "Disability" means a disability of a nature as to prevent the victim from engaging fully

and continuously in any employment or occupation for which the person is capable by education,

experience and training.

     (7) "Employer" means any private person or entity that employs one or more workers or

employees to render any service. The government of the state, the various municipal governments,

boards, commissions, authorities, instrumentalities, public corporations and agencies of the state

shall also be deemed as employers with regard to the workers, employees and officials they hire.

     (8) "Employment" means any service which the victim was performing in exchange for a

salary, commission or any other kind of remuneration, at the time the disability occurred. Services

rendered by a person shall be deemed as employment under of this chapter, regardless of whether

there is an employer-employee relationship, unless and until the existence of the following

conditions is demonstrated:

     (i) The employer does not exert, nor can exert, any command or supervision over the

person;

     (ii) The person renders the service beyond the employer's normal course, or place of

business;

     (iii) The person renders the service as part of the normal activity of the person's work,

business or profession, which service is available to other people and does not cease when the

contractual relationship with the employer ceases.

     (8) "Executive director" means the executive director of the automobile accident

compensation division of the department of human services.

     (9) "Maintenance" means any type of essential, sudden or unexpected repairs or servicing

required by a motor vehicle to start or continue to operate legally and safely on the public highways.

It excludes vehicle maintenance done in the home, activities related to motor vehicle cleaning and

enhancements, activities related to the business of bodywork, paint and repair of motor vehicle

parts that are not physically attached thereto.

     (10) "Motor vehicles" means any vehicle, including trailers, designed to operate on public

highways propelled by power other than muscular, which type of vehicle is authorized to travel on

the public highways by the department of transportation by issuing a motor vehicle license to it.

     (11) "Parents" means father, mother, parents by adoption or foster parents, it being

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understood by the latter those individuals who, without being the father, mother or parents by

adoption of other persons, have fostered these persons as if they were their own children, during a

term of not less than three (3) years, or during two-thirds (2/3) of the life of the person so fostered

and treated as their own child, whichever of the two (2) terms is the shorter, immediately and

consecutively preceding the date of the accident which originates a claim under the provisions of

this chapter.

     (12) "Person not responsible for the accident" means any person who does not cause a

traffic accident, but who, at the time the accident occurs, is among the non-coverage exclusions in

this chapter. In these cases, the department of human services shall recover what it disbursed on

the person.

     (13) "Person responsible for the accident" means any person who causes an accident while

driving a motor vehicle recklessly or negligently.

     (14) "Use of the motor vehicle" means the use of a motor vehicle for the purpose of a

person transporting the person or others to a different place or to carry, push or tow animals, plants

or objects. It does not include uses of the vehicle incidental to the purpose mentioned above, nor

fortuitous events that do not occur during, or as a direct result of, the use at that moment or

reasonably soon afterwards. It includes loading or unloading the vehicle.

     (15) "Victim" means a natural person who suffers bodily injuries or sickness or death as a

result thereof, as a consequence of the maintenance or use by the natural person or by another

person of a motor vehicle as the vehicle.

     (16) "Wife or husband" means the legal spouse or the woman or man who at the time of

the death of the victim and during the three (3) years immediately preceding the injury live together

with the victim as husband and wife even though not married.

     40-23-3. Applicability and benefits.

     Every natural person who suffers bodily injury, sickness or death as a result thereof, as a

consequence of the maintenance or use by the person or by another person of a motor vehicle as

shall be entitled to the benefits provided in this chapter. The person shall hereinafter be known as

"the victim".

     40-23-4. Beneficiaries.

     The following persons shall be deemed as beneficiaries of the victim with the rights and

limitations established herein below:

     (1) The children of the victim under eighteen (18) years of age on the date of the accident.

     (2) The children of the victim between the ages of eighteen (18) and twenty-one (21) who

depended on the victim and were students at the moment of the accident.

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     (3) The husband or wife of the victim who depends thereon for support.

     (4) The parents of the victim when they depended thereon for their support because they

were unable to provide for themselves and have no other means of support.

     (5) Any person who depends on the victim and is unable to be independent and without

help therefrom.

     40-23-5. Benefits. General.

     (a) Benefits. The benefits provided herein include disability payments, medical hospital

services, dismemberment, death and funeral expenses.

     (b) Payable benefits and available services. The payable benefits shall be as herein below

stipulated, after deducting therefrom any other benefits from other insurance programs to which

the victim or the victim's beneficiaries are eligible and which deduction is provided for hereunder.

     (c) If the victim receives from the department of human services services to which the

victim is eligible under other insurance programs and for which deduction is herein provided, and

the deduction is not made in the cases where it applies, the amount of the corresponding deduction

shall be deducted from the benefits to which the victim is entitled in accordance with the programs

and shall be paid by the agency in charge of the department of human services of the programs

directly to the department of human services, up to the limit of the coverage of the insurance

programs.

     (d) If a victim eligible to weekly compensation benefits for bodily injuries received from

the state insurance fund, by reason of the same automobile accident, benefit payments for transitory

disability, and the manager of the fund decides that the injury of the victim is one of a non-

occupational nature, the payments shall be deducted from the weekly compensation benefits to

which the victim is entitled under this chapter. This deduction shall never be made for an amount

exceeding the weekly compensation benefits to which the victim is entitled. The amount so

deducted shall be reimbursed by the department of human services to the state insurance fund, upon

previous presentation by the manager of the fund of a certified voucher showing liquidation of the

payments made to the victim.

     (e) The claiming and obtaining of benefits by a claimant under the provisions of this chapter

through false information or statements shall be guilty of the crime of perjury.

     (f) If the victim receives payments from other sources for medical-surgical and

hospitalization services rendered as provided in this chapter, the department of human services may

recover from the victim's beneficiaries up to a sum equal to the value of the services rendered.

     (g) Deductible benefits. All benefits or advantages that the victim or the victims

beneficiaries may receive or may be entitled to receive from other sources on account of the injuries

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suffered shall be deducted from the benefits corresponding to the victim under this chapter, except

when otherwise provided herein. Whenever the victim uses the services provided by this chapter,

the payments that the victim or the victims beneficiaries may receive or may be entitled to receive

from other insurance programs by reason of the services shall be paid to the department of human

services, up to a sum not to exceed the amount expended by the department of human services to

render the service.

     (h) Nondeductible benefits. The following benefits shall be considered nondeductible

benefits and shall not diminish the amount to be collected or received from the department of human

services, nor shall they be payable to the department of human services in case the services herein

provided are used:

     (1) Benefits by reason of the obligation of the family support;

     (2) Inheritance estates;

     (3) Life insurance;

     (4) Gifts;

     (5) Social security benefits. Payments made by the employer to employees shall not be

considered as gifts.

     (i) The death benefit provided in §40-23-7 shall be paid provided the victim dies as a result

of the injuries suffered within one year after the date of the accident.

     (j) If the injuries suffered in an accident caused the losses set forth in this chapter within

fifty-two (52) weeks after the date of the accident, the department of human services shall pay the

sum provided for the losses.

     (k) The board of directors of the department of human services, with the approval of the

commissioner of insurance of Rhode Island, shall increase the benefits provided by this chapter,

including payments for disability, medical-hospital services, dismemberment, death and funeral

expenses benefits. The office of commissioner of insurance shall have sixty (60) days to determine

the source or denial of the increase proposed by the board of directors of AACA. If the sixty (60)

days elapse without any statement from the office of commissioner of insurance, it shall be

understood that there is no objection to the proposed benefits increase and they shall take effect

immediately and/or on the date provided in the determination of increase made by the board of

directors of AACA.

     (l) Benefits for dismemberment. The following benefits for dismemberment shall be paid

by the department of human services in the event the indicated disabilities occur:

     (1) Loss of sight of both (2) eyes $ 10,000;

     (2) Loss of both (2) feet at or above the ankle 10,000;

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     (3) Loss of both (2) arms at or above the wrist 10,000;

     (4) Loss of one (1) arm and one (1) leg 10,000;

     (5) Loss of one (1) arm at or above the wrist 7,500;

     (6) Loss of one (1) leg at or above the ankle 7,500;

     (7) Loss of one (1) hand or one (1) foot 5,000;

     (8) Total loss of sight of one (1) eye 5,000;

     (9) Loss of at least three (3) fingers or three (3) toes 2,500; and

     (10) In case a person suffers more than one of the losses indicated above, the maximum

amount for all the losses shall be ten thousand ($10,000).

     (m) Compensation for loss of income due to disability; reinstatement.

     40-23-6. Compensation for loss of income due to disability - reinstatement.

     (a) Compensation:

     (1) If within the twenty (20) days following the date of the accident the injuries received

disable a victim other than a housewife, the department of human services shall pay to the victim a

benefit for loss of income by disability. The benefit shall be equivalent to fifty percent (50%) of

the weekly income not received by the victim, subject to a maximum of one hundred dollars ($100)

weekly while the victim is disabled, during the first fifty-two (52) weeks reckoning from the date

of the accident, and to fifty percent (50%) of the weekly income not received by the victim, subject

to a maximum of one hundred dollars ($100) weekly while the victim is disabled, during the

subsequent fifty-two (52) weeks.

     (2) To avail oneself of the benefit of weekly compensation it shall be required that at the

time of the accident or during any six (6) of the twelve (12) months preceding same the victim was

holding a remunerated job or performing an activity or engaged in a profession or in an income-

yielding business of the victim.

     (3) The regular disability benefit provided by this subsection shall not be paid during the

first fifteen (15) days following the date the disability begins.

     (b) For the purposes of computing the compensation contemplated in this chapter, there

shall be understood that the week consists of five (5) working days and the workday of eight (8)

hours; except that from the facts investigated it is deduced that the victim worked regularly more

than forty (40) hours a week.

     (c)(1) The loss of income shall be determined by taking as a basis the income earned by

the victim at the time of the accident. If the victim had then no income, the loss of income shall be

computed on the basis of the equivalent of the average weekly income earned by the victim during

the last six (6) of the last twelve (12) months immediately preceding the accident, when the victim

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was holding a remunerated job or performed an activity or engaged in a profession or in an income-

yielding business of the victim.

     (ii) The department of human services shall by regulation ad hoc establish the criteria that

may facilitate the determination of loss of income of the victims.

     (iii) When the disabled victim is a housewife (man) the department of human services shall

pay the victim a benefit of twenty-five dollars ($25.00) a week subject to a maximum of sixteen

(16) weeks.

     (2) The loss of income requirement to be entitled to collect weekly compensation for total

and continuous disability shall be deemed as established even though the claimant continues to

receive regular salary payments for accumulated vacation leave, it being understood there is a real

loss of income. However, there shall be no loss of income when one continues to receive regular

salary for accumulated sick leave; in that case, the loss of income shall be established solely if the

victim would have been entitled to liquidate sick leave accumulated and not used, in cash, some

time within the term of one year from the date of the accident, in which case all the time that the

victim is absent from work due to injuries suffered in the accident shall be counted as accumulated

and then the loss of income shall be determined in accordance with what was actually earned or not

earned.

     (d) Reinstatement. In the cases of disability covered by this chapter, when the injured

person is employed, the employer shall reserve the job the worker was doing when the disability

commenced and to reinstate the worker in it, subject to the following conditions:

     (1) That the worker requires the employer to reinstate the worker in the job within the term

of fifteen (15) days, counting from the date the worker is discharged from treatment, provided the

requirement is not made after six (6) months have passed from the date of inception of the disability;

     (2) That the worker is mentally and physically able to fill the job when the worker asks the

employer for reinstatement; and

     (3) That the job exists when the worker requests reinstatement. It shall be understood that

the job exists when it is vacant or filled by another worker. It shall be presumed that the job was

vacant when it was filled by another worker within thirty (30) days following the date the

reinstatement was requested. If the employer does not comply with the provisions of this clause,

the worker shall be bound to pay the worker or beneficiaries the wages the worker would have

earned if reinstated. The worker shall also be liable for any damages caused. The worker or the

worker's beneficiaries shall file and process the corresponding claim for reinstatement and/or

damages in superior court.

     40-23-7. Death benefits.

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     (a) A death benefit of one thousand dollars ($1,000) shall be paid for funeral expenses.

This benefit may be paid, up to the sum of the expenses incurred, to any person who produces

acceptable evidence to the department of human services of having incurred the funeral expenses

of the victim. Any remaining balance shall be paid to the beneficiaries of the victim.

     (b) There shall also be paid the following death benefits, subject to the conditions herein

below indicated:

     (1) Ten thousand dollars ($10,000) to the primary dependent;

     (2) One Thousand dollars ($1,000) to each secondary dependent up to a maximum of five

thousand dollars ($5,000).

     (3) The following benefits to the children of the victim:

     (i) Five thousand dollars ($5,000) for each disabled child regardless of their age;

     (ii) Five thousand dollars ($5,000) for each child four (4) years of age or under;

     (iii) Four thousand dollars ($4,000) for each child over four (4) years, but under ten (10)

years;

     (iv) Three thousand dollars ($3,000) for each child ten (10) years or more but under fifteen

(15) years;

     (v) Two thousand dollars ($2,000) for each child fifteen (15) years of age or over, but under

eighteen (18) years; those children between the ages of eighteen (18) and twenty-one (21) years

who depended on the victim and were students at the time of the accident shall also be entitled to

this benefit. If the benefit for the children, computed according to the preceding formula, exceeds

ten thousand dollars ($10,000), each one's benefit shall be adjusted by multiplying ten thousand

dollars ($10,000) by the ratio there is between the benefit corresponding to each child according to

the above scale and the sum total of the benefits corresponding to all the children, according to that

scale. If the children also qualify as primary dependents, the benefit corresponding to each one shall

be determined by multiplying ten thousand dollars ($10,000) by the ratio there is between the

benefit corresponding to each child, and the sum total of the benefits corresponding to all the

children, according to the provisions of this section.

     (c) For the purposes of the death benefit, there shall be considered as primary dependents:

     (1) The wife of the victim, or in lieu thereof;

     (2) The husband of the victim, or in lieu thereof;

     (3) The children of the victim, or in lieu thereof; and

     (4) The parents of the victim.

     (d) For purposes of the death benefit, there shall be considered as secondary dependent:

     (1) The parents of the victim when they do not qualify as primary dependent, or in lieu

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thereof; and

     (2) Other dependents.

     40-23-8. Medical-hospital benefits.

     (a) The victim shall be entitled to receive the medical, hospitalization, convalescence home,

and rehabilitation services and medicines that may be reasonably required by the victim's condition

during the two (2) year term following the accident, which may be available within the jurisdiction

of the state of Rhode Island. In the case of paraplegics and quadriplegics, and in cases of severe

trauma and/or multiple fractures with complications of a nature as to require prolonged medical

treatment, the services may be given for a term longer than two (2) years as provided by the board

through regulations. In connection with the above, "severe trauma" means injuries whose treatment

and rehabilitation require a term longer than two (2) years, in the judgment of a medical evaluation

committee created by the department of human services.

     (b) The department of human services shall provide the services under contract with

physicians and facilities, or directly according to the limits, criteria, and methods of providing

services which it establishes through regulations. If the victim receives emergency treatment in a

hospital or other types of facilities which do not have service contracts with the department of

human services, or if the latter authorizes the victim to use the facilities, they shall provide the

services and the department of human services shall pay them for the cost of the services rendered

based on an average of the rates used by the department of human services at present to pay for

similar services to hospitals, physicians, laboratories and other entities which provide health

services under contract in the area they are located. In the event the victim has paid for the services,

the victim's would be entitled to claim from the department of human services the cost of the

services on the basis of the above-stated average. The invoices for claims for health services

rendered shall be filed no later than one hundred twenty (120) days as of the date on which the

services were rendered. All claims with respect to the return of invoices or payments made by the

department of human services for health services invoices shall be filed within forty-five (45) days

as of the date of the payment. When the last day to file invoices for claims on time is Saturday,

Sunday, or a non-working holiday for the department of human services, the invoices shall be

considered as filed on time, as long as they are filed on the next working day. The department of

human services shall not pay invoices received after the deadline for their filing. All terms and

conditions established in this clause are of a jurisdictional nature and noncompliance therewith bars

the department of human services or the court with authority from considering the matters.

     40-23-9. Benefits: Payment.

     (a) The department of human services shall, by regulation, establish the standards that will

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govern the payment of all benefits provided in this chapter, both to victims of accidents and to their

beneficiaries; provided, that:

     (1) When the payment of a benefit for dismemberment is in order, same shall be liquidated

systematically so that the benefits that the victim may receive from the department of human

services do not exceed the equivalent of fifty dollars ($50.00) weekly.

     (2) The death benefits shall be paid at the rate of the equivalent of fifty dollars ($50.00)

weekly for family unit. The department of human services shall determine by regulation what is a

family unit and how the benefit shall be paid when the latter does not exist.

     (3) The department of human services may authorize payments of more than the equivalent

of fifty dollars ($50.00) weekly or the liquidation of the benefit in one single sum, when it is shown

that it will redound in benefit of the victim or the victim's beneficiaries.

     (4) If the amount of the benefit one is entitled to is greater than two thousand dollars

($2,000), the department of human services may require the victim or the victim's beneficiaries to

use the benefit or any part thereof for the purchase of a farm or house, or to acquire a productive

business or to make any other profitable investment.

     (b) The benefits payable under this chapter may not be assigned, sold or transferred and

any contract assigned, sold or transferred shall be void. Benefits may not be seized or confiscated,

nor shall the victim or the victim's beneficiaries be deprived, through a lawsuit, of the possession

of same.

     (c) The following persons shall not be entitled to collect the benefits provided by this

chapter for the victim of the accident, but the victim's beneficiaries shall be entitled to the benefits

corresponding to them:

     (1) Those whose injuries were caused by an act or omission on their part performed for the

purpose of causing damage to their own person.

     (2) Those who at the time of the accident were driving a motor vehicle without a driver's

license in effect at the time and for the operation of that particular motor vehicle, or whose vehicle

has no valid motor vehicle license and license plate on that date. To the effects of this clause, a

learner's permit is not sufficient authorization to operate a motorcycle or moped.

     (3) Those who at the time of the accident were participating in automobile races or in speed

tests, either as drivers, passengers, spectators or as officials or employees in areas reserved for the

activities.

     (4) Those whose injuries occurred while committing a criminal act other than a violation

to the traffic laws.

     (5) Those who at the time of the accident were driving their automobile in a state of

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drunkenness or under the effect of drugs.

     (d) The benefits provided by this chapter may not be used for the payment of fees for legal

services rendered to the victim by virtue of an application for benefits or of a lawsuit filed under

this chapter, except in the manner the department of human services may be regulation provide.

     (5) The benefits of this chapter shall only be paid for injuries which have occurred in Rhode

Island and the medical and hospital services shall only be rendered in the state of Rhode Island.

     40-23-10. Rights of the department of human services to indemnity.

     (a)(1) The department of human services shall be entitled to be indemnified by the person

responsible for the accident for all the expenses incurred by the department of human services in

connection to the accident, if the damages were caused intentionally or under the effects of alcohol

or narcotic drugs, or while driving an automobile without a legal permit to do so, or while

committing a criminal act other than a violation of the traffic laws, or while participating in

automobile races or speed tests.

     (2) The department of human services shall be entitled to be indemnified by the person

who is not responsible for the accident for all expenses incurred by the department of human

services with respect to the person.

     (b) When the victim in the cases provided herein files a legal action against the driver

involved in the accident and the court grants the victim an indemnification under the principle of

liability on the grounds of negligence, the defendant shall inquire, before payment of the judgment,

if the department of human services is entitled to be reimbursed for any or all of the benefits paid

by the latter to the victim. If the department of human services is entitled to the reimbursement, the

payment shall be issued separately in favor of the department of human services and of the claimant

victim for the respective amount corresponding to them. If the defendant pays the judgment without

considering the interests of the department of human services, and if the latter is unable to recover

the corresponding sum from the victim, the department of human services shall be entitled to be

indemnified by the defendant or the plaintiff for the loss thus suffered.

     (1) The department of human services shall be entitled to resort to the competent court of

first instance in any case seeking indemnification before the courts, based on the application of the

principle of liability on the grounds of negligence, for damages or injuries for which benefits were

provided pursuant to this chapter. The victim or the victim's legal heirs shall be required by the

corresponding court, so that prior to the continuation of the proceedings of the case, the plaintiff to

notify the department of human services with a copy of the claim filed, which shall include in its

caption or in one of its allegations, the number of the case of their claim in the department of human

services. Non-compliance with the provisions in this section shall be sufficient cause for the

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corresponding legal action of the case to be dismissed without prejudice, before the court grants a

discretional term for compliance with these provisions, which shall never be of less than thirty (30)

days.

     (2) The department of human services shall be entitled to be indemnified, for the expenses

incurred, by the owner of the motor vehicle according to the corresponding registration in the

department of transportation, who shall be severally liable therefor before the department of human

services, unless the victim is able to prove that the vehicle was stolen.

     (3) In every circumstance under this section in which the department of human services is

entitled to indemnification, it shall exercise the corresponding action within fifteen (15) years from

the date of the accident. The filing of a claim before the court, the authentic extrajudicial claim, or

any act of recognition of a debt by the debtor shall interrupt the term of prescription. In every case

where the fifteen (15) year prescriptive term applies, once the term has elapsed and the reasonable

collections pursuant to the regulation it is hereby authorized to approve, the department of human

services shall proceed to remove the account off its books, having accredited the collections made.

     (4) In all cases whereby the department of human services is notified of an action under

this chapter, it shall appear in court to exercise its rights. Should the department of human services

fail to appear in court within a term of one year, its cause of action shall be understood to have been

abandoned with prejudice, and the court shall pass judgment to that effect.

     (c) In all cases in which there is a right to recover, pursuant to the preceding subsection, a

lien shall be created over the motor vehicle and over the driver's license of the person liable to

indemnify the department of human services. The department of human services shall file an

application for a notation of lien for money it is owed at the department of transportation. The

notation shall constitute an actual lien over the motor vehicle and a prohibition against the transfer

of the motor vehicle or the issuing or renewal of any type of motor vehicle license and/or driver's

license until the lien is paid, nullified or until an agreement to pay is reached with the department

of human services. The department of human services, shall establish the procedure for the

agreements to pay through regulations. Notwithstanding the provisions of the previous subsection,

the title of the motor vehicle with an annotation of lien may be transferred if the lien is imposed

after the date in which the motor vehicle changes owner; in other words, the date of the formalized

transfer on the back of the registration of the motor vehicle or trailer or by attesting document. The

secretary of the department of transportation shall notify the imposition of the lien in the same

manner it is done with respect to administrative fines and the victim shall keep a register of liens.

If the owner of the vehicle and/or driver's license holder affected by the notation of administrative

lien considers that the ACAA is not entitled to recover against the victim or that the amount

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imposed for recovery is incorrect, the victim may request an administrative review at the regional

office of the ACAA corresponding to the victim domicile, by filing a request for a review within

thirty (30) days after being notified of the administrative lien. The department of human services

shall provide the procedure for the administrative review before the ACAA through regulation. The

decision from the administrative review shall be reviewable by the court of first instance, using the

procedure provided in the vehicles and traffic act of Rhode Island for the review of administrative

fines. The liens may be paid at the locations and in the manner stated herein below:

     (1) At the department of transportation, taken in person or through an agent, in cash, check

or certified check, or money order, or a certified check or money order sent by mail, payable to the

automobile accident compensation division of the department of human services. (2) At the

regional offices or at the central office of the automobile accident compensation division of the

department of human services. Taken in person or through an agent in cash, or certified check or

money order payable to the automobile accident compensation division of the department of human

services. Should the payment of the lien be made in the offices of the automobile accident

compensation division of the department of human services, the latter shall remit to the department

of transportation an authorization to cancel the lien and it shall notify the interested party in writing.

The secretary of the department of transportation, the general treasurer, and the automobile accident

compensation division of the department of human services are hereby authorized to establish by

regulations those other provisions that are necessary to implement the liens' system established

herein.

     40-23-11. Claims.

     (a) Every accident which gives rise to a claim for benefits under this chapter shall be

notified to the police and to the department of human services.

     (b) Every person entitled to claim a benefit under this chapter shall file a person's claim

with the department of human services, except in case of death benefits, within the fifteen (15) days

following the date of the accident.

     (c) The persons entitled to death benefits shall file their claim within one hundred twenty

(120) days after the death of the victim, but in all cases the accident must have been notified to the

department of human services within the fifteen (15) days following the date of its occurrence.

     (d) Every person entitled to claim a benefit under this chapter shall submit to the

department of human services within the sixty (60) days following the date of the claim, all the

evidence that it may be reasonably possible to obtain in connection with the circumstances of the

accident and the loss suffered and any other data or evidence, including information on plans,

contracts or policies covering or that may cover the benefits provided by this chapter, as well as

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any other additional evidence that may be required of the person.

     (e) Noncompliance with the provisions of the preceding subsections may be sufficient

cause for the department of human services to deny the benefits provided by this chapter, unless

the claimant shows to the satisfaction of the department of human services that it was impossible

for the person to comply with the provisions hereof and that the person did it as soon as the

circumstances allowed.

     40-23-12. Tort and related items.

     (a) The benefits provided by this chapter for injuries sustained as a result of automobile

accidents which occurred in the state of Rhode Island shall be paid, up to the limits indicated in this

section, in substitution of the sums that the victim, the victim's survivors or any other person would

otherwise be entitled to claim by reason of the accident under the principle of liability on the basis

of tort, relieving the responsible party from the payment of all claims up to the limits or up to the

amount of the benefits collected by the victim and the victim's beneficiaries, whichever is greater.

     (b) Any person responsible, through a negligent act on the victim's part, for damages or

injuries for which benefits are provided herein, shall be exempted from application of the principle

of liability on the basis of negligence. The exemption shall be limited to:

     (1) The amount of one thousand dollars ($1,000) for physical and mental sufferings

including pain, humiliation and similar damages; and

     (2) The sum of two thousand dollars ($2,000) by reason of other damages or losses not

included in subsection (b)(1) of this section.

     (c) Any person whom a court declares in a civil action responsible for having caused

through negligence injuries for which the victim, the victim's survivors or any other person are

entitled to receive benefits or medical-surgical and hospital services under this chapter, shall be

entitled to a reduction in the sentence to be imposed by the court up to the amount indicated in this

section.

     (1) In each case in which this section applies the court must separately indicate the amount

of indemnity granted for damages due to pain and physical and mental sufferings and the amount

of indemnity granted for other losses.

     (2) The deduction applicable to damages for physical and mental sufferings shall be one

thousand dollars ($1,000).

     (3) The deduction applicable to damages and losses for causes other than physical and

mental sufferings shall be the sum of two thousand dollars ($2,000) or the amount of the total

benefits paid by the department of human services, if the amount is greater than two thousand

dollars ($2,000).

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     (4) The indemnity that a court may grant to the survivors of the victim, even when it be

only by reason of moral damages sustained by them on account of the death of the victim, shall be

reduced by a sum equal to the amount of the benefits that the victim and the victim's beneficiaries

have received from the department of human services.

     (5) If the liability for the damages caused lie upon two (2) or more persons, the deductions

provided in this section shall be deducted only once. Same shall be deducted from the total

judgment to be paid by all the parties. The court shall determine the amount of the deduction which

shall apply to each one of the parties.

     (6) The provisions of this section shall be applicable to the judgments rendered in claim

actions brought in connection with accidents which have occurred on and from July 1, 2017.

     40-23-13. Examination, treatment and rehabilitation of injuries; Finding of fact.

     (a) Whenever the physical and mental condition of a person be of importance to a claim

filed or to be filed for payment of past or future benefits, the department of human services may

direct the person to submit to the medical examinations as may be necessary.

     (b) If the person refuses to be submitted to the medical examination or to comply with any

order given by the department of human services in accordance with this section, the department

of human services shall not make any payment whatsoever to the person or to the person's

beneficiaries.

     (c) The department of human services may direct any victim to submit to the rehabilitation

treatment or training that may be reasonable and justified. Refusal to comply with these orders may

entail the loss of the benefits provided under this chapter.

     (d) Every employer shall be under obligation to allow the examining and copying of and

to furnish to the department of human services, at its request, payrolls, work records and sworn

statements showing the salaries earned by the victim subsequent to the date of the injuries and

during a period of one year prior to the date of the accident.

     (e) Every physician, hospital, clinic or institution of medical services which provides any

services related with an injury for which benefits or services are claimed under this chapter or which

has previously attended the victim in connection with any former injury or condition which may be

connected in any way with the injury for which the claim is made, shall furnish, upon request of

the department of human services, all the information available from records or memory, including

a written report on the history, condition, treatment, dates and costs of the treatment and other

services rendered to the injured person, and shall produce and permit the inspection of all the

records related with the medical history, the condition, treatment, and the dates and cost thereof,

and any other information deemed necessary.

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     (f) Every physician-employer, hospital, clinic or any person or institution that furnishes

information requested under the terms of this section, may be reimbursed the cost of furnishing the

information, in accordance with the rates that the department of human services may establish to

that effect.

     (g) The information obtained by the department of human services or by its duly authorized

employees during the course of the investigations performed in the exercise of the powers granted

in this chapter shall be privileged and confidential in nature and may only be divulged with the

authorization of the executive director or that of a court of competent jurisdiction when the physical

condition or the medical treatment of the victim who has filed a claim against the department of

human services is a controversial fact in a judicial proceeding. In the latter case, the court's

authorization shall be deemed to extend only to information related to the claimant's physical

condition or treatment.

     40-23-14. Proceedings to facilitate the investigation and award claims.

     (a) When there is required the appearance of persons, their testimony or the production of

any document or evidence pertinent to any proceeding or investigation under this chapter, the

following provisions shall govern:

     (1) Every summons, requirement or certification issued by the executive director or

authorized representative, or by the board or any of its members, or by the secretary, shall bear the

seal of the department of human services or of the board, as the case may be, and may be served at

any place in the state.

     (2) When a person summoned or required in accordance with the present provisions fails

to appear to testify or fails to produce or to permit the copying of the books, registries, payrolls,

records or documents, as required, or when any person thus summoned refuses to answer any

question in connection with any matter or investigation under consideration of the department of

human services, the latter may request the assistance of the court of first instance of Rhode Island

to compel the appearance and the testimony of the person and the production and delivery of the

books, registries, payrolls, records or documents requested on the matter under consideration.

     (3) Once the petition is filed with the court of first instance, the court shall issue a summons

requiring and ordering the person to appear and depose or to produce the evidence requested, or

both. Disobedience of the order issued by the court shall be punished as contempt and the payment

of costs and lawyer's fees shall be imposed on the guilty person.

     (b) Any person, except government employees, summoned and appearing before the board

or the department of human services as witness shall receive for each day of appearance a sum

equal to that received by witnesses appearing before the courts of justice.

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     40-23-15. The automobile accident compensation department of human services.

     (a) There is hereby created, to carry out the purposes of this chapter, a corporation as a

government instrumentality of the government of the state of Rhode Island to act by its own

authority, under the name of the automobile accident compensation division of the department of

human services.

     (b) The corporate powers of the department of human services shall be exercised by a board

of directors which shall also be responsible for the department of human services of same and of

seeing to the enforcement of the provisions of this chapter. The board shall be composed of four

(4) members appointed by the governor with the advice and consent of the senate. At least two (2)

of the four (4) members shall represent the public interest and one shall be a person conversant with

the insurance business. The first appointments shall be made for a term of two (2) years in the case

of the representatives of the public interest and of one year in the case of the other two (2) members

and until their successors are appointed and qualify. All subsequent appointments shall be for a

term of three (3) years. Three (3) members of the board shall constitute a quorum. Vacancies of the

board shall be filled by appointments made for the unexpired term for which the member causing

the vacancy was appointed. The governor may remove any member of the board for incompetency

in the discharge of duties or for any other good cause, upon charges brought against the member

and after giving the member an opportunity to be heard. The board shall elect one of its members

to act as chairperson and another to act as secretary. Members of the board shall receive the per

diems the board determines by regulations for their services, and the department of human services

shall reimburse any necessary expenses incurred to discharge their functions. Those members of

the board who are officials of the government of the state of Rhode Island shall receive no

compensation for their services. The chairperson of the board may receive an additional fee to be

fixed by the board, which shall not exceed an amount equal to fifty percent (50%) of the per diem

received by members of the board. The board shall appoint an executive director who shall be

responsible for the direction of the department of human services of the corporation in accordance

with the standards and conditions that the board may establish.

     (c) The board shall adopt rules for its organization and internal operation and shall approve

and shall cause the promulgation of the necessary regulations to enforce the provisions of this

chapter pursuant to the administrative procedures act including the proceedings for the payment of

premiums and for the payment of claims. In addition to the duties arising from this chapter, the

board shall have the following faculties and obligations:

     (1) Hold, at least four (4) times a year, regular meetings and those special sessions as may

be deemed necessary. The board shall keep full minutes of all its proceedings;

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     (2) Consider and take resolutions on matters referred by the executive director;

     (3) Approve the investment of the resources of the department of human services that the

executive director may propose;

     (4) May investigate and shall decide on appeal, at the request of a party, controversies

arising between claimants of the department of human services and the executive director, and

     (5) As soon as possible after each fiscal year, but not later than the first of November of

each year, revise, approve and direct that it be transmitted to the governor and to the general

assembly an annual report containing, among other things, a balance sheet of the economic

conditions; a statement of the receipts and expenditures for the year; detailed statements on the

claims experience of the department of human services for the year, a report on titles of property

investment of the department of human services; and other statistics and financial data that may be

considered necessary for an adequate interpretation of the situation of the department of human

services and of the results of its operations.

     40-23-16. Proceedings of claim awards appeals.

     (a) The executive director shall investigate and decide the claims filed against the

department of human services using the proceedings as the director may deem convenient, as long

as the rights of the parties are guaranteed. In the event that a claimant disagrees with the executive

director's decision, the claimant may request its reconsideration within thirty (30) days from the

date of notice thereof the determination is served or from the date of the postmark if the claimant

presents it, whichever is later. The claimant may be represented by counsel in this phase and give

testimony and present the evidence the claimant deems convenient. If the claimant disagrees with

the result of the reconsideration, the claimant may request a public hearing before the executive

director or an examiner designated by the claimant within thirty (30) days from the date the

determination is served or the date of the postmark if the claimant presents it, whichever is later.

At this public hearing the claimant cannot submit any evidence to the consideration of the executive

director which the executive director did not have when making the determination, unless the

impossibility of obtaining it previously is shown to the satisfaction of the executive director. The

claimant may appear in person or represented by counsel and a record shall be kept of the

proceedings and of all the testimony given at the hearing, but the testimony need not be transcribed

unless a subsequent appeal is made. In the event that more than one claim is presented in connection

with the same victim and the evidence submitted is the same or substantially the same in nature,

only one record shall be kept of the proceedings and the evidence as may be produced with respect

to one proceeding may be deemed to be produced with respect to the others, provided none of the

claimant is harmed thereby. The rules of evidence that prevail in a court of justice shall not be

LC000558 - Page 18 of 23

mandatory in any proceeding before the executive director. After the hearing is held, the executive

director shall make determinations and conclusions and shall furnish to each party a copy of a

decision and of the findings and conclusions on which it is based. This decision shall be final unless

an appeal is filed before the board.

     (b) The appeal shall be executed by filing a writ of appeal before the secretary of the board

within the thirty (30) days following the date the decision of the executive director is served or of

the date of the postmark if presented, whichever is later. The claimant shall be entitled to appear in

the claimant's own right or assisted by counsel. The executive director shall cause a certified copy

of the record of the case and the transcription of the oral evidence to be transmitted to the board.

The parties may stipulate that the record be limited to a part of the proceedings or the transcription

of the oral evidence. The board shall decide on the basis of the record before it and of any brief the

parties may wish to present. It may, at its discretion, grant oral hearings to hear the arguments of

the parties before deciding. Its decision may be to sustain, modify or revoke the decision of the

executive director, or it may return the case to the latter, with the pertinent instructions, including

an order to consider additional evidence. In cases in which the board holds oral hearings, these may

be presided by a single member of the board designated by its chairman or by one or more

examiners designated by it. The board and each one of its members, the examiners and the executive

director shall be empowered to administer oaths.

     (c) The decision of the board shall be final unless the claimant or the executive director

requests its judicial review by filing a petition to that effect with the circuit court of appeals within

thirty (30) days after the parties and their respective counsel have been notified of the decision of

the board by mail or in person. The jurisdiction of the court of first instance shall be limited to

issues of law, and the findings of facts, if sustained by substantial evidence, shall be final.

     (d) All the terms established in this section are of a jurisdictional nature and their

noncompliance deprives the department of human services or the court of authority to deal with the

petition filed. For the department of human services's effects the date of filing of a petition for

reconsideration, for a public hearing before the executive director or for an appeal before the board

of directors shall be the date it is received in the department of human services, when filed

personally, or that of the postmark when it is sent by mail.

     40-23-17. Other faculties and duties of the executive director.

     (a) The executive director shall direct and supervise all technical and administrative

activity of the department of human services and shall appoint or shall hire with the approval of the

board of directors the administrative and technical personnel necessary to carry out the functions

of the department of human services and to pay for the services the compensation that the board

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may determine. The officials and employees of the department of human services shall be included

in the exempt service of the personnel act of the state. The executive director shall also have the

following faculties and obligations:

     (1) To establish an office for the department of human services and to provide everything

necessary for the installation of a complete and adequate system of accounting, registries and

adjustment of claims;

     (2) To adopt the procedures necessary to compile and keep the statistical data that may be

necessary to make periodical analysis of the operation costs of the department of human services

and actuarial studies of its operations;

     (3) To attend all meetings of the board and to execute all the resolutions recommended by

it;

     (4) To certify all the necessary payments which have to be made according to the provisions

of this chapter;

     (5) To remit or deposit in the name of the department of human services and to render

accounts, according to law and with the regulations in force, of all the monies received belonging

to the department of human services;

     (6) To prepare regulations for the approval of the board;

     (7) To make recommendations to the board for the investment of the resources of the

department of human services;

     (8) To prepare the annual report and to submit it to the board for its revision and approval;

     (9) Submit to the board any report that it may request; and

     (10) Personally, or through the persons whom may delegate, to administer oaths, require

the appearance of persons and the production of any documents or evidence pertinent to any

procedure or investigation authorized by this chapter.

     40-23-18. Other powers and faculties of the department of human services.

     (a) The department of human services shall have the following powers and functions, in

addition to those established in this chapter:

     (1) It shall have perpetual existence, may sue and be sued, and in any action in which it

may intervene it shall be exempt from the payment of costs, charges and counsel fees; counsel shall

be officially designated.

     (2) Investigate all the phases of the problem of automobile accidents including the phases

of the financial liability and of accident prevention and make the pertinent recommendations to the

governor and to the legislature.

     (3) Contract physicians, hospitals, clinics, laboratories and other suppliers of medical

LC000558 - Page 20 of 23

services to carry out the purposes of this chapter. It may also enter into agreements with the state

insurance fund, established under the workmen's accident compensation act, to use its medical-

hospital facilities and with the department of health for the use of the medical hospital facilities of

the state.

     (4) Fix, annually, with the approval of the insurance commissioner the premium that each

vehicle shall pay at the time of registering same, in accordance with the experience and the

corresponding actuarial study.

     (5) To acquire properties for its corporate purposes by purchase or donation, grant or

bequest; to own and exercise all property rights thereon and to dispose of them in accordance with

the terms and conditions that its board of directors may determine; as well as to borrow money or

use any other facility or type of financing for the acquisition of goods that it deems necessary in

the form and means the board of directors deems convenient.

     (6) Acquire all kinds of properties in partial or full payment of debts previously contracted

with the department of human services, when the acquisition is necessary to diminish or avoid

losses in connection with same, to retain the properties for the time it may deem convenient, to

exercise thereon all property rights and to dispose of same in accordance with the terms and

conditions that its board of directors may determine.

     (7) Exercise all those incidental powers as may be necessary or convenient for the purposes

of carrying out its businesses or purposes.

     (8) Exercise all those corporate powers compatible with those herein set forth which are

conferred by the laws of Rhode Island to corporations and to exercise all those powers, within and

without Rhode Island in the same extent as would or may be done as a natural person.

     (9) Own an official seal and alter same when it so deems convenient.

     40-23-19. Financing.

     (a) The cost of this insurance shall be distributed among all the motor vehicle owners

through an annual contribution to be paid at the time of registering the vehicle.

     (b) At the time of its registration, every vehicle shall pay the annual premium fixed by the

department of human services with the approval of the insurance commissioner. The premium shall

be renewed on the same date on which the motor vehicle or trailer's license and plates must be

renewed. Van trailer vehicles engaged in maritime transportation to bring freight to Rhode Island

from abroad, and which enter Rhode Island as transients, may choose to pay a special premium

instead of the above stated annual premium, based on their short stay in Rhode Island, regardless

of whether or not they are registered, or regardless of the type of registry. This special premium

shall be fixed by the board of directors of the department of human services as previously provided

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and based on how many times these trailers enter Rhode Island. The payment mechanism for these

special premiums shall be provided through a procedure that shall be established by the department

of human services.

     (c) At the time of registration every vehicle shall pay an annual premium fixed by the

department of human services with the approval of the insurance commissioner. The premium shall

be renewed on the same date on which the vehicle's or trailer's license and plates must be renewed.

     (d) Any receipts not required for the payment of claims and expenses shall be deposited in

a reserve fund which shall be used exclusively for the payment of claims in subsequent years, in

case that the claims incurred in any of the years exceeds the advance claims upon determining the

type of contribution.

     (e) If in any year the receipts and the reserves accrued are not sufficient to cover the losses

and the expenses incurred, the general treasurer shall provide to the department of human services

from any funds available in the general fund of the government, as an advance, the sums required

to remediate [cover] the deficiency.

     40-23-20. Appropriation.

     The sum of one million dollars ($1,000,000) is hereby appropriated from unencumbered

funds in the general fund to the department of human services as initial capital to carry out the

purposes of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES -- AUTOMOBILE ACCIDENT SOCIAL PROTECTION

ACT

***

     This act would create an accident compensation fund to provide payments and benefits to

those injured by uninsured motorists, to be administered by the department of human services.

     This act would take effect upon passage.

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