Public Law 65

CHAPTER 65
2002-H 7732A am
Enacted 06/12/2002

A N A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2003

Introduced By: Representatives Watson, and Quick

Date Introduced: February 13, 2002

It is enacted by the General Assembly as follows:

ARTICLE 1	MAKING APPROPRIATIONS IN SUPPORT OF FY 2003
ARTICLE 2	RELATING TO REFUNDING BOND AUTHORITY
ARTICLE 3	RELATING TO MOTOR VEHICLE AND TRAILER EXCISE TAX REDUCTION ACT OF 1998
ARTICLE 4	RELATING TO WORKERS' COMPENSATION
ARTICLE 5	RELATING TO BORROWING IN ANTICIPATION OF RECEIPTS FROM TAXES
ARTICLE 6	RELATING TO CAPITAL DEVELOPMENT PROGRAM
ARTICLE 7	RELATING TO STATE AID
ARTICLE 8	RELATING TO TOBACCO SETTLEMENT FINANCING
	CORPORATION ACT
ARTICLE 9	RELATING TO TAXATION - PERSONAL INCOME TAX
ARTICLE 10	RELATING TO REVISED APPROPRIATIONS IN SUPPORT OF FY 2002
ARTICLE 11	RELATING TO COMPENSATION OF BOARD MEMBERS
ARTICLE 12	RELATING TO OIL SPILL RESPONSE FUND
ARTICLE 13	RELATING TO FEES
ARTICLE 14	RELATING TO PUBLIC SAFETY
ARTICLE 15	RELATING TO LABOR AND LABOR RELATIONS
ARTICLE 16	RELATING TO TAXATION
ARTICLE 17	RELATING TO SINKING FUND
ARTICLE 18	RELATING TO EDUCATION AID
ARTICLE 19	RELATING TO GENERAL PUBLIC ASSISTANCE
ARTICLE 20	RELATING TO VIDEO LOTTERY TERMINALS-DIVISION OF
	REVENUE
ARTICLE 21	RELATING TO HOSPITAL UNCOMPENSATED CARE
ARTICLE 22	RELATING TO CHILD CARE - STATE SUBSIDIES
ARTICLE 23	RELATING TO CHILD CARE ELIGIBILITY
ARTICLE 24	RELATING TO MEDICAL ASSISTANCE AND HUMAN SERVICES
ARTICLE 25	RELATING TO FAMILY INDEPENDENCE ACT
ARTICLE 26	RELATING TO FOOD STAMP PROGRAM
ARTICLE 27	RELATING TO MEDICAL ASSISTANCE
ARTICLE 28	JOINT RESOLUTION APPROVING FINANCING OF NEW PARKING
	FACILITIES AND ACCESS CONTROL SYSTEMS AT URI
ARTICLE 29	RELATING TO MOTOR FUEL TAX
ARTICLE 30	RELATING TO DEPARTMENT OF ENVIRONMENT
ARTICLE 31	JOINT RESOLUTION RELATING TO PURCHASES OF STATE
	VEHICLES
ARTICLE 32	RELATING TO MEDICAL ASSISTANCE FOR FAMILIES
ARTICLE 33	RELATING TO MEDICAL ASSISTANCE - HOSPITAL SETTLEMENTS
ARTICLE 34	RELATING TO HEALTH CARE FACILITIES
ARTICLE 35	RELATING TO SUPPLEMENTAL SECURITY INCOME
ARTICLE 36	RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY
ARTICLE 37	RELATING TO PHARMACEUTICAL ASSISTANCE TO THE
	ELDERLY ACT
ARTICLE 38	RELATING TO ZERO BASE BUDGET REVIEW
ARTICLE 39	RELATING TO RETIREMENT HEALTH BENEFITS
ARTICLE 40
ARTICLE 41
ARTICLE 42	RELATING TO EFFECTIVE DATE

ARTICLE 1 SUB A AS AMENDED

RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2003

Administration

General Revenues	355,629,664
Provided personnel and other state operations do not exceed	94,407,866
Federal Funds	36,113,316
Restricted Receipts	8,588,475
Other Funds
Motor Fuel Tax Evasion Program	8,852
Temporary Disability Insurance	613,365
Other Funds Registration Denial Program	651
Other Funds Lighting Conservation	661,278
Other Funds
Federal Highway - PL Systems Planning	1,060,711
Federal Highway - T2 Systems Planning	127,550
Air Quality Modeling	20,283
RICAP - Ladd Center - Infrastructure	500,000
RICAP - State House Terrace/South Stairs	715,037
RICAP - Chapin Health Laboratory	175,360
RICAP - Cranston Street Armory	250,000
RICAP - Cannon Building	75,000
RICAP - Facility Renovations - Handicapped Access	250,000
RICAP - Old State House	50,000
RICAP - State Office Building	150,000
RICAP - Veterans Office Building	200,000
RICAP - Old Colony House	98,000
RICAP - Court Buildings - HVAC	250,000
RICAP - Washington County Government Center	125,000
RICAP - State House Renovations Phase I	100,000
RICAP - State House Renovations - Phase II	125,000
RICAP - Board of Elections Building	25,000
RICAP - Environmental Compliance	750,000
RICAP - Fox Point Hurricane Barrier	50,000
Debt Service Payments
RICAP - MHRH - Com. Services	10,966,255
RICAP - MHRH - Comm. Mental Health	2,769,498
RICAP - DEM - Narragansett Bay Commission	5,066,552
RICAP - DEM - Clean Water Finance Agency	4,364,496
RICAP - DEM - Wastewater Treatment	4,368,952
RIPTA Debt Service	920,703
Transportation Debt Service	41,265,753
DOA - Third Rail Project - Quonset Point	764,247
RIRBA - DLT - Temporary Disability Insurance	60,222
COPS - DLT Building - Other	383,041
COPS - Center General - Furniture - TDI	1,993
COPS - Pastore Center Telecommunications - TDI	18,971
Debt - URI Education and General	963,451
Debt - URI Housing Loan Funds	1,845,923
Debt - URI Dining Services	265,179
Debt - URI Health Services	125,409
Debt - W. Alton Jones Services	111,050
Debt - URI Memorial Union	97,648
Debt - URI Sponsored Research (Indirect Cost)	101,347
Debt - RIC Education and General	296,614
Debt - RIC Housing	568,390
Debt - RIC Student Center and Dining	177,951
Debt - RIC Student Union	254,765
Debt - CCRI Bookstore	177,092
Grand Total - Administration	482,648,044
Business Regulation
General Revenues	8,540,940
Provided personnel and other state operations do not exceed	8,538,340
Restricted Receipts	592,165
Grand Total - Business Regulation	9,133,105
Labor and Training
General Revenues	6,785,451
Provided personnel and other state operations do not exceed	3,790,706
Federal Funds	38,047,421
Restricted Receipts	24,591,788
Other Funds	367,815,094

Of the $366.1 million appropriated from other funds, $2.6 million is

hereby appropriated from Reed Act Funds. Of the $2.6 million

amount, $1.7 million may be used solely for the Rapid Job Entry

program to engage welfare recipients in employment preparation

and placement through employment Assessment Workshop and

Job Club/Job Search Workshop Activities, and $900,000 may

be used solely for the administration of this state's unemployment

compensation law and public employment offices.

Grand Total - Labor and Training	437,239,754
Legislature
General Revenues	26,055,589
Restricted Receipts	809,639
Grand Total - Legislature	26,865,228
Lieutenant Governor General Revenues	805,721
State
General Revenues	5,914,768
Provided personnel and other state operations do not exceed	5,478,518
Restricted Receipts	198,068
Grand Total - State	6,112,836
General Treasurer
Other Funds	10,086,887
General Revenues	3,517,360
Provided personnel and other state operations do not exceed	3,017,360
Federal Funds	1,568,190
Restricted Receipts	10,808,677
Grand Total - General Treasurer	25,981,114
Boards for Design Professionals General Revenues	378,802
Board of Elections General Revenues	5,396,412
Provided personnel and other state operations do not exceed	2,186,025
Rhode Island Ethics Commissions General Revenues	926,278
Office of Governor General Revenues	5,077,251
Public Utilities Commission
General Revenues	705,611
Provided personnel and other state operations do not exceed	703,901
Federal Funds	66,610
Restricted Receipts	4,873,650
Grand Total - Public Utilities Commission	5,645,871
Rhode Island Commission on Women General Revenues	143,489
Provided personnel and other state operations do not exceed	141,489
Children, Youth, and Families
General Revenues	139,524,937
Provided personnel and other state operations do not exceed	55,867,215
Federal Funds	92,374,230
Restricted Receipts	1,460,000
Grand Total - Children, Youth, and Families	233,359,167
Elderly Affairs
Other Funds Intermodal Surface Transportation Fund	4,700,000
General Revenues	26,832,885
Provided personnel and other state operations do not exceed	3,157,819
Federal Funds	9,178,863
Grand Total - Elderly Affairs	40,711,748
Health
Other Funds	211,528
General Revenues	33,461,898
Provided personnel and other state operations do not
Exceed	26,007,620
Federal Funds	55,916,057
Restricted Receipts	8,166,324
Other Funds	211,528
Grand Total - Health	97,755,807
Human Services
General Revenues	608,467,591
Provided personnel and other state operations do not exceed	49,892,331
Federal Funds	781,757,011
Restricted Receipts	4,046,732
Other Funds
RICAP - Veteran's Home Roof	140,000
RICAP - Forand Building Exterior Repairs	150,000
Grand Total - Human Services	1,394,561,334
Mental Health, Retardation, and Hospitals
General Revenues	218,833,418
Provided personnel and other state operations do not exceed	99,870,901
Federal Funds	220,440,452
Restricted Receipts	65,000
Other Funds
RICAP - Utilities Upgrade	200,000
RICAP - Central Power Plant Rehabilitation	650,000
RICAP - Medical Center Rehabilitation	400,000
RICAP - Asset Protection	100,000
Grand Total - Mental Health, Retardation, and Hospitals	440,688,870
Office of the Child Advocate
General Revenues	494,552
Federal Funds	359,190
Grand Total - Child Advocate	853,742
Commission on the Deaf and Hard of Hearing General Revenues	261,397
RI Developmental Disabilities Council Federal Funds	421,433
Governor's Commission on Disabilities
General Revenues	320,739
Federal Funds	31,642
Restricted Receipts	70,578
Grand Total - Governor's Commission on Disabilities	422,959
Commission for Human Rights
General Revenues	769,603
Federal Funds	408,828
Grand Total - Commission for Human Rights	1,178,431
Mental Health Advocate General Revenues	296,859
Elementary and Secondary Education
General Revenues	739,373,003
Provided personnel and other state operations do not exceed	26,871,901
Federal Funds	134,020,140
Restricted Receipts	1,254,196
Other Funds RICAP - School for the Deaf - Physical Education Fac.	262,666
RICAP - Davies Roof Repair	225,000
RICAP - East Providence Vocational HVAC	50,000
RICAP - State-owned Schools - Fire Alarm Systems	50,000
Grand Total - Elementary and Secondary Education	875,235,005
Board of Governors
General Revenues	169,438,085
Provided personnel and other state operations do not exceed	155,423,273
Federal Funds	2,362,281
Other Funds
University and College Funds	371,473,291
RICAP - Asset Protection/Roofs	7,486,653
RICAP - Athletic Complex	3,200,000
RICAP - Alger Hall	1,825,442
RICAP - DCYF Facilities	1,600,000
RICAP - Green Hall	1,000,000
RICAP - Biological Science Center	200,000
Grand Total - Board of Governors	558,585,752
RI State Council on the Arts
General Revenues	2,300,377
Provided personnel and other state operations do not exceed	363,454
Federal Funds	616,021
Restricted Receipts	200,000
Grand Total - RI State Council on the Arts	3,116,398
RI Atomic Energy Commission
Other Funds URI Sponsored Research	144,876
General Revenues	639,681
Federal Funds	825,947
Grand Total - RI Atomic Energy Commission	1,610,504
RI Higher Education Assistance Authority
General Revenues	6,017,046
Provided personnel and other state operations do not exceed	859,973
Federal Funds	7,231,142
Other Funds	2,802,165
Grand Total - Higher Education Assistance Authority	16,050,353
RI Historical Preservation and Heritage Commission
General Revenues	879,201
Provided personnel and other state operations do not exceed	644,759
Federal Funds	534,534
Restricted Receipts	336,464
Grand Total - RI Historical Pres. and Heritage Comm.	1,750,199
RI Public Telecommunications Authority
Other Funds Corporation for Public Broadcasting	707,325
General Revenues	1,225,383
Federal Funds	350,000
Grand Total - Public Telecommunications Authority	2,282,708
Attorney General
General Revenues	15,656,056
Provided personnel and other state operations do not exceed	15,655,356
Federal Funds	1,648,271
Restricted Receipts	631,440
Grand Total - Attorney General	17,935,767
Corrections
General Revenues	129,306,513
Provided personnel and other state operations do not exceed	127,111,807
Federal Funds	10,593,276
Restricted Receipts	5,454,124
Other Funds
RICAP - Fire Code Safety Improvements	300,000
RICAP - Window Replacement - Women's	380,000
RICAP - General Renovations - Maximum	373,300
RICAP - Women's Bath Renovations	160,000
RICAP - Security Cameras	200,000
RICAP - Reintegration Center State Match	353,892
RICAP - General Renovations - Women's	300,000
Grand Total - Corrections	147,421,105
Judiciary
Other Funds
RICAP - Murray Judicial Complex	165,000
RICAP - Fogarty Interior/Exterior	60,000
General Revenues	63,236,417
Federal Funds	2,821,148
Restricted Receipts	6,744,032
Grand Total - Judiciary	73,026,597
Military Staff
Other Funds
RICAP - Bristol Armory Rehabilitation	200,000
RICAP - Benefit St. Arsenal Rehabilitation	192,610
RICAP - Schofield Armory Rehabilitation	147,500
RICAP - Warren Armory	146,000
RICAP -North Smithfield	5,000
General Revenue	2,208,677
Provided personnel and other state operations do not exceed	2,096,895
Federal Funds	14,008,196
Restricted Receipts	122,629
Grand Total - Military Staff	17,030,612
E-911 Emergency Telephone System
General Revenues	4,012,646
Fire Safety Code Board of Appeal and Review General Revenues	225,329
State Fire Marshal
General Revenues	1,464,538
Provided personnel and other state operations do not exceed	1,463,164
Federal Funds	101,172
Grand Total - State Fire Marshal	1,565,710
Commission on Judicial Tenure and Discipline General Revenues	109,235
Rhode Island Justice Commission
General Revenues	171,791
Provided personnel and other state operations do not exceed	121,791
Federal Funds	5,036,985
Restricted Receipts	90,000
Grand Total - Rhode Island Justice Commission	5,298,776
Municipal Police Training Academy General Revenues	351,227
State Police
Other Funds
RICAP - Barracks and Training Headquarters	100,000
RICAP - Headquarters Repair/Renovation	125,938
Traffic Enforcement - Municipal Training	216,800
Lottery Commission Assistance	112,141
Road Construction Reimbursement	2,174,710
General Revenues	37,835,321
Provided personnel and other state operations do not exceed	25,464,183
Federal Funds	2,780,493
Restricted Receipts	147,000
Grand Total - State Police	43,492,403
Office of Public Defender
General Revenues	5,845,107
Federal Funds	356,414
Grand Total - Office of Public Defender	6,201,521
Environmental Management
Other Funds
DOT Recreational Projects	25,637
Blackstone Bikepath Design	1,303,060
RICAP - Dam Repair	250,000
RICAP - Fort Adams Rehabilitation	250,000
RICAP - Galilee Piers	122,000
General Revenues	32,563,222
Provided personnel and other state operations do not exceed	30,481,270
Federal Funds	24,192,255
Restricted Receipts	14,300,448
Grand Total - Environmental Management	73,006,622
Coastal Resources Management Council
Other Funds
RICAP - South Coast Restoration Project	145,000
RICAP - Allins Cove	172,000
General Revenues	1,468,839

Notwithstanding the provisions of section 35-3-15 of the general

laws in chapter 35-3 entitled "State Budget", all unexpended,

encumbered and unencumbered general revenues balances of the

Coastal Resources Management Council at the end of fiscal year 2002

shall be reappropriated in the ensuing fiscal year and made

immediately available for the computerized database management

system.

Federal Funds	1,190,845
Restricted Receipts	250,000
Grand Total - Coastal Resources Management Council	3,226,684
State Water Resources Board
Other Funds
RICAP - Big River Management Area	80,000
RICAP - Water Allocation Plan	175,000
General Revenues	991,036
Provided personnel and other state operations do not exceed	942,574
Federal Funds	500,000
Restricted Receipts	753,709
Grand Total - State Water Resources Board	2,499,745
Transportation
Central Management
Other Funds Gasoline Tax	3,149,891
Federal Funds	4,325,865
Total - Central Management	7,475,756
Management and Budget
Other Funds Gasoline Tax	1,956,849
Infrastructure - Maintenance
Other Funds Infrastructure - Maintenance - Gasoline Tax	39,614,964
Infrastructure Engineering
Other Funds
Gasoline Tax	39,315,704
RICAP - RIPTA Land and Buildings	1,715,000
Land Sale Revenue	8,002,940
State Infrastructure Bank	1,000,000
Federal Funds	188,453,292
Restricted Receipts	42,506,000
Total - Infrastructure Engineering	280,992,936
Grand Total - Transportation	330,040,505
Statewide Totals
General Revenues	2,664,459,945
Federal Funds	1,638,631,520
Restricted Receipts	137,061,138
Other Funds	960,788,452
Statewide Grand Total	5,400,941,055

The amounts identified for federal funds and restricted receipts shall be made available pursuant to Section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

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

SECTION 3. Upon the transfer of any function of a department or agency to another department or agency, the governor is hereby authorized by means of executive order to transfer or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected thereby.

SECTION 4. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the Governor and the Director of Administration to fund expenditures for which appropriations may not exist. Such contingency funds may also be used for expenditures in the several departments and agencies where appropriations are insufficient, or where such requirements are due to unforeseen conditions or are non-recurring items of an unusual nature. Said appropriations may also be used for the payment of bills incurred due to emergencies or to any offense against public peace and property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as amended. All expenditures and transfers from this account shall be approved by the Director of Administration and the Governor.

SECTION 5. The reimbursement of any state department or agency for the cost of work or services performed for any other department or agency is hereby authorized, subject to regulations promulgated by the Director of Administration.

SECTION 6. The General Assembly may provide a written "statement of legislative intent" signed by the chairperson of the House Finance Committee and by the chairperson of the Senate Finance Committee to show the intended purpose of the appropriations contained in Section 1 of this Article. The statement of legislative intent shall be kept on file in the House Finance Committee and in the Senate Finance Committee.

At least twenty (20) days prior to the issuance of a grant or the release of funds, which grant or funds are listed on the legislative letter of intent, all department, agency and corporation directors, shall notify in writing the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee of the approximate date when the funds are to be released or granted.

SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby appropriated pursuant to Sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2003.

SECTION 8. Appropriation of Employment Security Funds -- There is hereby appropriated pursuant to Section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2003.

SECTION 9. Appropriation of University and College Funds -- There is hereby appropriated pursuant to section 16-59-9 of the Rhode Island General Laws relating to the appropriation of funds by the General Assembly for Higher Education, and Section 16-59-18 of the General Laws relating to receipts from sources other than appropriations, any funds received by the Board of Governors for Higher Education for the fiscal year ending June 30, 2003 payable out of the University and College Funds.

SECTION 10. Notwithstanding any provisions of Chapter 19 in Title 23 of the Rhode Island General Laws, the Resource Recovery Corporation shall transfer to the State Controller the sum of six million dollars ($6,000,000) on June 30, 2003.

SECTION 11. Departments and agencies listed below may not exceed the number of full-time equivalent (FTE) positions shown below in any pay period, nor may the total number of full-time equivalent (FTE) positions in any pay period for the agencies and departments within the executive branch of government exceed 14,277.9 full-time equivalent positions. Full-time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment. Nor do they include positions established under the Board of Governors for Higher Education which are funded by third party funding through the following accounts: University of Rhode Island Sponsored Contract Research-Federal; Rhode Island College Sponsored Research-Federal; Community College of Rhode Island Sponsored Research-Federal; Community College of Rhode Island Sponsored Research-Private; and Office of Higher Education Sponsored Research-Federal.

Provided, however, that the Governor or designee, Speaker of the House of Representatives or designee, and the Majority Leader of the Senate or designee (effective until January 7, 2003) and President of the senate or designee (effective January 7, 2003) may authorize an adjustment to any limitation. A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

FTE POSITION AUTHORIZATION

Departments and Agencies	Full-Time Equivalent
Administration	1,313.4
Business Regulation	104.5
Labor and Training	548.4
Legislature	280.0
Lieutenant Governor General	10.0
Secretary of State	59.0
General Treasurer	84.5
Boards for Design Professionals	4.0
Board of Elections	20.2
Rhode Island Ethics Commission	9.5
Office of the Governor	47.1
Public Utilities Commission	43.5
Rhode Island Commission on Women	2.0
Children, Youth, and Families	855.5
Elderly Affairs	57.6
Health	470.0
Human Services	1,105.8
Mental Health, Retardation, and Hospitals	2,102.9
Office of the Child Advocate	12.5
Commission on the Deaf and Hard of Hearing	2.0
RI Developmental Disabilities Council	2.5
Governor's Commission on Disabilities	4.6
Commission for Human Rights	17.0
Office of the Mental Health Advocate	3.7
Elementary and Secondary Education	336.0
Higher Education ‑ Board of Governors	3,540.9
Rhode Island Council on the Arts	6.0
RI Atomic Energy Commission	8.6
Higher Education Assistance Authority	46.1
Historical Preservation and Heritage Commission	17.6
Public Telecommunications Authority	22.0
Attorney General	228.5
Corrections	1,515.7
Judicial	721.7
Military Staff	92.5
E-911 Emergency Telephone System	47.8
Fire Safety Code Bd. of Appeal and Review	3.0
RI State Fire Marshal	21.3
Commission on Judicial Tenure and Discipline	1.0
Rhode Island Justice Commission	9.0
Municipal Police Training Academy	4.0
State Police	264.0
Office of the Public Defender	83.4
Environmental Management	569.1
Coastal Resources Management Council	28.0
Water Resources Board	9.0
Transportation	842.5

SECTION 12. The amounts reflected in this Article include the appropriation of Rhode Island Capital Plan funds for fiscal year 2003 and supersede appropriations provided for FY 2003 within Section 13 of Article 1 of Chapter 77 of the P.L. of 2001.

The following amounts are hereby appropriated out of any money in the State's Rhode Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending June 30, 2004, June 30, 2005, June 30, 2006, and June 30, 2007. These amounts supersede appropriations provided within Section 13 of Article 1 of Chapter 77 of the P.L. of 2001. For the purposes and functions hereinafter mentioned, the State Controller is hereby authorized and directed to draw his or her orders upon the General Treasurer for the payment of such sums and such portions thereof as may be required by him or her upon receipt of properly authenticated vouchers.

		Fiscal Year Ending	Fiscal Year Ending	Fiscal Year Ending	Fiscal Year Ending
Project	June 30, 2004	June 30, 2005	June 30, 2006	June 30, 2007

State House Renovations
Phase II		300,000	300,000	300,000	-	-	-

Chapin Health Laboratory	250,000	250,000	250,000	-	-	-

Cannon Building	377,000	150,000	-	-

Cranston Street Armory	1,000,000	1,500,000	926,242	-

Washington County
Government Center	368,000	315,000	-	-

Legislative Office Building	4,000,000	4,000,000	4,000,000	3,000,000

RIC DCYF Facilities and Master
Plan Improvements	1,795,047	-	-	-

URI Residence Halls
Modernization/Renovation	-	9,000,000	8,000,000	3,000,000

URI Alger Hall	1,164,558	-	-	-

Reintegration Center	253,247	-	-	-

Women's Facility Plumbing/
Bathroom Renovations	561,000	182,000	-	-

Murray Judicial Complex	198,000	-	-	-

Fogarty Annex	67,500	-	-	-

Bristol Armory	100,000	-	-	-

Benefit Street Arsenal	245,396	-	-	-

Schofield Armory Exterior	147,500	25,000	-	-

Warren Armory	175,000	-	-	-

Galilee Piers	2,000,000	1,000,000	1,000,000	1,000,000

Dam Repair	1,725,000	1,650,000	2,200,000	850,000

Boyd's Marsh Habitat
Restoration	330,000	100,000	-	-

South Coast Restoration
Project	968,267	932,267	932,267	-

RIPTA Land and
Buildings	1,145,000	-	-	-

SECTION 13. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects. - Any unexpended funds from Rhode Island Capital Plan Fund project appropriations shall be reappropriated in the ensuing fiscal year and made available for the same purpose.

SECTION 14. Starting on July 15, 2002 and each month thereafter in the fiscal year ending June 30, 2003, the state controller shall submit in writing a report on the status and functioning capabilities of the RI Sail system to the chairmen of the house and senate committees on finance.

SECTION 15. On or before August 1, 2002 the state budget officer shall submit in writing a detailed budget reduction plan for each department and agency except the Office of the Governor and Legislature that receives a General Revenue appropriation in Section 1. Each budget reduction plan will clearly indicate what changes in personnel and operating costs will be necessary to insure that general revenue expenditures do not exceed the total amount appropriated for the fiscal year ending June 30, 2003. Provided, however, that the Governor, Speaker of the House of Representatives, and the Majority Leader of the Senate (effective until January 7, 2003) and President of the Senate (effective January 7, 2003) must authorize each plan prior to implementation. Prior to the authorization, the state budget officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the Senate Majority Leader. A copy of the recommendation and authorization to authorize a budget reduction plan shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

SECTION 16. This article shall take effect upon passage.

ARTICLE 2 SUB A

RELATING TO REFUNDING BOND AUTHORITY

SECTION 1. The amounts appropriated within Section 1 of Article 1 of this act shall include six hundred ninety-six thousand one hundred fifty dollars ($696,150) allocable to the payment of debt service on bonds of the Rhode Island Refunding Bond Authority issued pursuant to Chapter 35-8.1 of the general laws.

SECTION 2. Certain bond proceeds of the Rhode Island Refunding Bond Authority have been used to refund bonds issued pursuant to Chapter 46-25 of the general laws for the Narragansett Bay Water Quality Management District Commission. To the extent that funds of said Commission are not sufficient to pay debt service of sixteen thousand sixty-five dollars ($16,065) on the bonds of the Rhode Island Refunding Bond Authority coming due during the fiscal year ending June 30, 2003 and allocable to this Commission, there is hereby appropriated from funds in the treasury not otherwise appropriated an amount sufficient for payment of said debt service.

SECTION 3. This article shall take effect on July 1, 2002.

ARTICLE 3 SUB A AS AMENDED

RELATING TO MOTOR VEHICLE AND TRAILER EXCISE TAX ELIMINATION ACT OF 1998

SECTION 1. Sections 44-34.1-1 and 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998" are hereby amended to read as follows:

44-34.1-1 Excise tax phase out. -- (a) Notwithstanding the provisions of chapter 34 of this title or any other provisions to the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 ~~shall~~ may be phased out by the fiscal year ~~2007~~ 2008. The phase out applies to all motor vehicles and trailers, including leased vehicles.

(2) Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes payable throughout the term of the lease. In the event the actual excise tax is less than the estimated excise tax, the lessor shall rebate annually to the lessee the difference between the actual excise tax and the estimated excise tax.

(b) Pursuant to the provisions of this section, all motor vehicles are assessed a value by the vehicle value commission. That value is assessed according to the provisions of § 44-34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section, provided, however, that the maximum taxable value percentage applicable to model year values as of December 31, 1997, continue to be applicable in future year valuations aged by one year in each succeeding year.

(c) The motor vehicle excise tax phase out commences with the excise tax bills mailed to taxpayers for the fiscal year 2000; provided, however, that the phase out, beyond fiscal year 2003, shall be subject to annual review and appropriation by the general assembly. The tax assessors of the various cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by using the prorated exemptions from the following table:

Local Fiscal Year Exempt from value	Local Exemption	State fiscal year
		Reimbursement

fiscal year 1999	0	$1,500
fiscal year 2000	$1,500	$2,500
fiscal year 2001	$2,500	$3,500
fiscal year 2002	$3,500	$4,500
fiscal year 2003 and each year thereafter	~~$5,000~~ $4,500	$4,500

No city or town shall, in preparation of its annual budget, plan or otherwise rely on the continuation of said phase-out beyond fiscal year 2003, unless it is specifically approved by the general assembly.

~~fiscal year 2004~~	~~$6,900~~
~~fiscal year 2005~~	~~$9,400~~
~~fiscal year 2006~~	~~$13,000~~
~~fiscal year 2007~~	~~All vehicles~~

(2) The excise tax phase out provides ~~increased~~ levels of assessed value reductions until the tax is eliminated or reduced as provided within.

(3) Current exemptions remain in effect ~~throughout the phase out period~~ as provided within.

(4) The excise tax rates and ratios of assessment shall not be greater than fiscal year 1998 levels for each city, town, and fire district, provided, however, in the town of Johnston the excise tax rate and ratios of assessment shall not be greater than fiscal year 1999 levels and in no event shall the final taxable value of a vehicle be higher than assessed in the prior fiscal year, and the levy of a city, town, or fire district shall be limited to the lesser of the maximum taxable value or net assessed value for purposes of collecting the tax in any given year.

(d) Definitions.

(1) "Maximum taxable value" means the value of vehicles as prescribed by § 44-34-11 reduced by the percentage of assessed value applicable to model year values as determined by the Rhode Island vehicle value commission as of December 31, 1997, for the vehicles valued by the commission as of December 31, 1997. For all vehicle value types not valued by the Rhode Island vehicle value commission as of December 31, 1997, the maximum taxable value shall be the latest value determined by a local assessor from an appropriate pricing guide, multiplied by the ratio of assessment used by that city, town, or fire district for a particular model year as of December 31, 1997.

(2) "Net assessed value" means the motor vehicle values as determined in accordance with § 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state of Rhode Island exemption value as provided for in § 44-34.1-1(c)(1).

44-34.1-2. City and town and fire district reimbursement. -- (a) ~~During the vehicle excise tax phase out in~~ In fiscal years 2000 through ~~2007~~ 2008, cities and towns and fire districts shall receive ~~advance~~ reimbursements, as set forth within, from state general revenues equal to the amount of lost tax revenue due to the phase out or reduction of the excise tax. Cities and towns and fire districts shall receive advance reimbursements through state fiscal year 2002. In the event the tax is phased out in fiscal year 2008, ~~Upon elimination of the tax and beginning~~ in fiscal year ~~2007~~ 2009, cities and towns and fire districts shall receive a permanent distribution of sales tax revenue pursuant to section 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each city, town, and fire district except that the Town of Johnston's base tax rate must be fixed at a fiscal year 1999 level.

(b) (1) The director of administration shall determine the amount of general revenues to be distributed to each city and town and fire district for the fiscal years 1999 through ~~2006~~ 2008 so that every city and town and fire district is held harmless from tax loss resulting from this chapter, assuming that tax rates are indexed to inflation.

(2) The director of administration shall index the tax rates for inflation by applying the annual change in the December consumer price index -- all urban consumers (CPI-U), published by the bureau of labor statistics of the United States department of labor, to the indexed tax rate used for the prior fiscal year calculation. The director shall apply the following principles in determining reimbursements:

(i) Exemptions granted by cities and towns and fire districts in the fiscal year 1998 must be applied to assessed values prior to applying the exemptions in section 44-34.1-1(c)(1). Cities and towns and fire districts will not be reimbursed for these exemptions.

(ii) City, town, and fire districts shall be reimbursed by the state for revenue losses attributable to the exemptions provided for in section 44-34.1-1 and the inflation indexing of tax rates; provided, however, that reimbursement for revenue losses shall be calculated based upon the difference between the maximum taxable value less personal exemptions and the net assessed value.

(iii) Inflation reimbursements shall be the difference between:

(A) The levy calculated at the tax rate used by each city and town and fire district for fiscal year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions contained in section 44-34.1-1(c)(1); provided, however, that for the Town of Johnston the tax rate used for fiscal year 1999 must be used for the calculation; and

(B) The levy calculated by applying the appropriate cumulative inflation adjustment to the tax rate used by each city and town and fire district for fiscal year 1998; provided, however, that for the Town of Johnston the tax rate used for fiscal year 1999 shall be used for the calculation after adjustments for personal exemptions but prior to adjustments for exemptions contained in section 44-34.1-1.

(i) On October 20, 1998, and each October 20 thereafter through October 20, ~~2005~~ 2001, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(ii) On February 20, 1999, and each February 20 thereafter through February 20, ~~2006~~ 2002, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(iii) On June 20, 1999, and each June 20 thereafter through June 20, ~~2006~~ 2002, fifty percent (50%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(iv) On August 1, 2002 and each August 1 thereafter through August 1, 2007, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(v) On November 1, 2002 and each November 1 thereafter through November 1, 2007, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(vi) On February 1, 2003 and each February 1 thereafter through February 1, 2008, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(vii) On May 1, 2003 and each May 1 thereafter through May 1, 2008, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

Provided, however, the February and May payments shall be subject to submission of final certified and reconciled motor vehicle levy information.

(2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the previous fiscal year shall be included or deducted from the payment due ~~October 20~~ November 1.

(3) On any of the payment dates specified in paragraphs (c)(1)(i) through ~~(iii)~~ (vii), the director is authorized to deduct previously made over-payments or add supplemental payments as may be required to bring the reimbursements into full compliance with the requirements of this chapter.

(4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on February 20, 1999 and each February 20 thereafter through February 20, 2002, twenty-five percent (25%) on June 20, 1999 and each June 20 thereafter through June 20, 2002, which includes final reconciliation of the previous year's payment, and fifty percent (50%) on October 20, 1999 and each October 20 thereafter through October 20, 2002. For local fiscal years 2003 though 2008, the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation of the previous year's payment, and twenty-five percent (25%) on each August 1; provided, however, the May and August payments shall be subject to submission of final certified and reconciled motor vehicle levy information.

(5) ~~Funds~~ In the event the tax is phased out in fiscal year 2008, funds distributed to the cities, towns, and fire districts for fiscal year ~~2007~~ 2009 shall be calculated as the funds distributed in fiscal year ~~2006~~ 2008 adjusted by the change in the consumer price index -- all urban consumers (CPI-U) published by the bureau of labor statistics of the United States department of labor from June ~~2005~~ 2007 to June ~~2006~~ 2008. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities and towns and fire districts on ~~October 20, 2006~~ August 1, 2008, twenty-five percent (25%) on ~~February 20, 2007 and fifty percent (50%) on June 20, 2007~~ November 1, 2008, twenty-five percent (25%) on February 1, 2009, and twenty-five percent (25%) on May 1, 2009. The funds shall be distributed to each city and town and fire district in the same proportion as distributed in fiscal year ~~2006~~ 2008.

(6) ~~Prior~~ In the event the tax is phased out in fiscal year 2008, to ~~October 20, 2007~~ August 1, 2009, the director of administration shall calculate to the nearest tenth of one cent (0.1/c) the number of cents of sales tax received for the fiscal year ending June 30, ~~2006~~ 2009, equal to the amount of funds distributed to the cities, towns, and fire districts under this chapter during fiscal year ~~2007~~ 2009, and the percent of the total funds distributed in fiscal year ~~2007~~ 2009, received by each city, town, and fire district, calculated to the nearest one-hundredth of one percent (0.01%). The director of administration shall transmit those calculations to the governor, the speaker of the house, the president of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the house fiscal advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to the cities and towns and fire districts under this chapter for fiscal year ~~2008~~ 2010, and each year thereafter. The cities and towns and fire districts shall receive that amount of sales tax in the proportions calculated by the director of administration as that received in fiscal year ~~2007~~ 2009.

(7) ~~Twenty~~ In the event the tax is phased out in fiscal year 2008, twenty-five percent (25%) of the funds shall be distributed to the cities, towns, and fire districts on ~~October 20, 2007~~ August 1, 2009, and every ~~October 20~~ August 1 thereafter; twenty-five percent (25%) shall be distributed on ~~February 20, 2008~~ November 1, 2009, and every ~~February 20~~ November 1 thereafter; twenty-five percent (25%) shall be distributed on February 1, 2010, and every February 1 thereafter; and ~~fifty percent (50)~~ twenty-five percent (25%) shall be distributed on ~~June 20, 2008~~ May 1, 2010, and every ~~June 20~~ May 1 thereafter.

(8) For the city of East Providence, in the event the tax is phased out in fiscal year 2008, twenty-five percent (25%) shall be distributed on ~~February 20, 2007~~ November 1, 2009 and every ~~February 20~~ November 1 thereafter, twenty-five percent (25%) shall be distributed on ~~June 20, 2007~~ February 1, 2010 and every ~~June 20~~ February 1 thereafter; twenty-five percent (25%) shall be distributed on May 1, 2010, and every May 1 thereafter; and ~~fifty percent (50%)~~ twenty-five percent (25%) of the funds shall be distributed on ~~October 20, 2007~~ August 1, 2010 and every ~~October 20~~ August 1 thereafter.

(9) As provided for in section 44-34-6, the authority of fire districts to tax motor vehicles is eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall be based on the provisions of section 44-34-6. All references to fire districts in this chapter do not apply to the year 2001 tax roll and thereafter.

SECTION 2. This Article Shall Take Effect Upon Passage.

ARTICLE 4 SUB A AS AMENDED

(Deleted)

ARTICLE 5 SUB A

RELATING TO BORROWING IN ANTICIPATION OF RECEIPTS FROM TAXES

SECTION 1. The State of Rhode Island is hereby authorized to borrow during its fiscal year ending June 30, 2003, in anticipation of receipts from taxes such sum or sums, at such time or times and upon such terms and conditions not inconsistent with the provisions and limitations of Section 17 of Article VI of the constitution of Rhode Island, as the general treasurer, with the advise of the Governor, shall deem for the best interests of the state, provided that the amounts so borrowed shall not exceed one hundred fifty million dollars ($150,000,000), at any time outstanding. The state is hereby further authorized to give its promissory note or notes signed by the general treasurer and counter-signed by the secretary of state for the payment of any sum so borrowed. Any such proceeds shall be invested by the general treasurer until such time as they are needed. The interest income earned from such investments shall be used to pay the interest on the promissory note or notes, and any expense of issuing the promissory note or notes, with the balance remaining at the end of said fiscal year, if any, shall be used toward the payment of long-term debt service of the state, unless prohibited by federal law or regulation.

Notwithstanding any other authority to the contrary, duly authorized bonds or notes of the state issued during the fiscal year ending June 30, 2003 may be issued in the form of commercial paper, so-called. In connection herewith, the state, acting through the general treasurer, may enter into agreements with banks, trust companies or other financial institutions within or outside the state, whether in the form of letters or lines of credit, liquidity facilities, insurance or other support arrangements. Any notes issued as commercial paper shall be in such amounts and bear such terms as the general treasurer, with the advice of the governor, shall determine, which may include provisions for prepayment at any time with or without premium at the option of the state. Such notes may be sold at a premium or discount, and may bear interest or not and, if interest bearing, may bear interest at such rate or rates variable from time to time as determined by the Federal Reserve Bank Composite Index of Commercial Paper, or the Municipal Market Data General Market Index or other similar commercial paper offerings, or other method specified in any agreement with brokers for the placement or marketing of any such notes issued as commercial paper, or other like agreements. Any such agreement may also include such other covenants and provisions for protecting the rights, security and remedies of the lenders as may, in the discretion of the general treasurer, be reasonable, legal and proper. The general treasurer may also enter into agreements with brokers for the placement or marketing of any such notes of the state issued as commercial paper. Any notes to the state issued as commercial paper in anticipation of receipts from taxes in any fiscal year must also be issued in accordance with the provisions of Section 17 of Article VI of the constitution of Rhode Island and within the limitations set forth in Section 1 of this act.

SECTION 2. This article shall take effect on July 1, 2002

ARTICLE 6 SUB A AS AMENDED

RELATING TO CAPITAL DEVELOPMENT PROGRAM

SECTION 1. Proposition to be submitted to the people. -- At the general election to be held on the Tuesday next after the first Monday in November, 2002, there shall be submitted to the people for their approval or rejection the following proposition:

"Shall the action of the general assembly, by an act passed at the January 2002 session, authorizing the issuance of bonds, refunding bonds, and temporary notes of the state for the capital projects and in the amount with respect to each such project listed below be approved, and the issuance of bonds, refunding bonds, and temporary notes authorized in accordance with the provisions of said act?"

Project

(1) State Police Headquarters Facility and State Municipal Fire Academy $55,000,000.

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds, refunding bonds, and temporary notes in an amount not to exceed $55,000,000, of which an amount not to exceed $6,400,000 will be for the state support of the construction of the new State Municipal Fire Academy and the remainder will be for the state support of the construction of the new State Police Headquarters Facility. Additionally, funds may be used to upgrade the state's automated Fingerprint Identification System.

The new State Police Headquarters Facility will serve the citizens of the state in a modern facility in an area more centrally located when compared to the current headquarters in North Scituate, built in 1794.

The new State Municipal Fire Academy will serve the citizens of the state in a modern facility dedicated to fire protection and prevention.

(2) Preservation, Recreation and Heritage $14,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds, refunding bonds, and temporary notes in an amount not to exceed $14,000,000 for state support of recreational development, historical preservation, and the Heritage Harbor Museum.

(3) Transportation $63,500,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds, refunding bonds, and temporary notes in an amount not to exceed $63,500,000 to match federal funds; provide direct funding for improvements to the state's highways, roads and bridges; replace or repair transportation maintenance facilities; and purchase buses for the Rhode Island Public Transit Authority's bus fleet.

(4) Quonset Point/Davisville $11,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds, refunding bonds, and temporary notes in an amount not to exceed $11,000,000 for road and utility infrastructure, building demolition, site preparation, and pier rehabilitation at the Quonset Point/Davisville Industrial Park.

SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of state shall prepare and deliver to the state board of elections ballot labels for each of the projects provided for in section 1 hereof with the designations "approve" or "reject" provided next to the description of each such project to enable voters to approve or reject each such proposition. The general election laws, so far as consistent herewith, shall apply to this proposition.

SECTION 3. Approval of projects by people. -- If a majority of the people voting on the proposition provided for in section 1 hereof shall vote to approve the proposition as to any project provided for in section 1 hereof, said project shall be deemed to be approved by the people. The authority to issue bonds, refunding bonds and temporary notes of the state shall be limited to the aggregate amount for all such projects as set forth in the proposition provided for in section 1 hereof which has been approved by the people.

SECTION 4. Bonds for capital development program. -- The general treasurer is hereby authorized and empowered with the approval of the governor and in accordance with the provisions of this act, to issue from time to time capital development bonds in serial form in the name and on behalf of the state in amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount for all projects approved by the people and designated as "capital development loan of 2002 bonds" provided, however, that the aggregate principal amount of such capital development bonds and of any temporary notes outstanding at any one time issued in anticipation thereof pursuant to section 7 hereof shall not exceed the total amount for all such projects as have been approved by the people. All provisions in this act relating to "bonds" shall also be deemed to apply to "refunding bonds".

Capital development bonds issued under this act shall be in denominations of one thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the United States which at the time of payment shall be legal tender for public and private debts. These capital development bonds shall bear such date or dates, mature at specified time or times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in which they are issued, bear interest payable semi-annually at a specified rate or different or varying rates, be payable at designated time or times at specified place or places, be subject to expressed terms of redemption or recall, with or without premium, be in a form, with or without interest coupons attached, carry such registration, conversion, reconversion, transfer, debt retirement, acceleration and other provisions as may be fixed by the general treasurer, with the approval of the governor, upon each issue of such capital development bonds at the time of each issue. Whenever the governor shall approve the issuance of such capital development bonds, he or she shall certify approval to the secretary of state; the bonds shall be signed by the general treasurer and countersigned by the manual or facsimile signature of the secretary of state and shall bear the seal of the state or a facsimile thereof. The approval of the governor shall be endorsed on each bond so approved with a facsimile of his or her signature.

SECTION 5. Refunding bonds for 2002 capital development program. -- The general treasurer is hereby authorized and empowered, with the approval of the governor and in accordance with the provisions of this act, to issue from time to time bonds to refund the 2002 capital development program bonds in the name and on behalf of the state, in amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount approved by the people, to be designated as "capital development program loan of 2002 refunding bonds" (hereinafter "refunding bonds").

The general treasurer with the approval of the governor shall fix the terms and form of any refunding bonds issued under this act in the same manner as the capital development bonds issued under this act, except that the refunding bonds may not mature more than twenty (20) years from the date of original issue of the capital development bonds being refunded.

The proceeds of the refunding bonds, exclusive of any premium and accrual interest, shall, upon their receipt, be paid by the general treasurer immediately to the paying agent for the capital development bonds which are to be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they are applied to prepay the capital development bonds. While such proceeds are held in trust, they may be invested for the benefit of the state in obligations of the United States of America or the state of Rhode Island.

If the general treasurer shall deposit with the paying agent for the capital development bonds the proceeds of the refunding bonds or proceeds from other sources amounts that, when invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all principal, interest, and premium, if any, on the capital development bonds until these bonds are called for prepayment, then such capital development bonds shall not be considered debts of the state of Rhode Island for any purpose from the date of deposit of such moneys with the paying agent. The refunding bonds shall continue to be a debt of the state until paid.

The term "bond" shall include "note", and the term "refunding bonds" shall include "refunding notes" when used in this act.

SECTION 6. Proceeds of capital development program. -- The general treasurer is directed to deposit the proceeds from the sale of capital development bonds issued under this act, exclusive of premiums and accrued interest, in one or more of the depositories in which the funds of the state may be lawfully kept in special accounts (hereinafter cumulatively referred to as "such capital development bond fund") appropriately designated for each of the projects set forth in section 1 hereof which shall have been approved by the people to be used for the purpose of paying the cost of all such projects so approved.

All monies in the capital development fund shall be expended for the purposes specified in the proposition provided for in section 1 hereof under the direction and supervision of the director of administration (hereinafter referred to as "director"). The director or his delegate shall be vested with all power and authority necessary or incidental to the purposes of this act, including but not limited to, the following authority: (a) to acquire land or other real property or any interest, estate or right therein as may be necessary or advantageous to accomplish the purposes of this act; (b) to direct payment for the preparation of any reports, plans and specifications, and relocation expenses and other costs such as for furnishings, equipment designing, inspecting and engineering, required in connection with the implementation of any projects set forth in section 1 hereof; (c) to direct payment for the costs of construction, rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other improvements to land in connection with the implementation of any projects set forth in section 1 hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor for repair, renovation or conversion of systems and structures as necessary for 2002 capital development program bonds or notes hereunder from the proceeds thereof. No funds shall be expended in excess of the amount of the capital development bond fund designated for each project authorized in section 1 hereof. With respect to the bonds and temporary notes described in section 1, the proceeds shall be utilized for the following purposes:

Question 1 relating to bonds and notes totaling $55.0 million for the support of the creation, design, construction, furnishing, and equipping of the new State Police Headquarters Facility and the new State Municipal Fire Academy. Additionally, funds may be used to upgrade the state's automated Fingerprint Identification System. The new State Police Headquarters Facility will be centrally located in Rhode Island to better serve the needs of the citizens of the state. The facility will serve the centralized dispatch functions for the Division and provide a more unified service delivery for the command staff, business office, communications center, traffic personnel, detectives, support staff and technology center.

The new facility moves headquarters from its current location in North Scituate to a centralized location in the state based on the number of assistance calls to which the Rhode Island State Police respond. With this move, the Division will centralize records, secure evidence, expand technology and provide a public service center. The new State Municipal Fire Academy will serve the citizens of the state in a modern facility dedicated to fire protection and prevention.

Question 2 relating to bonds and notes totaling $14,000,000 for preservation, recreation, and heritage shall be allocated as follows:

(a) Pawtuxet River Walkway $3,000,000

Provide funds for development and restoration of the Pawtuxet River Walkway located within the Town of West Warwick.

(b) Roger Williams Park $3,000,000

Provide funds for capital development and restoration at Roger Williams Park, located in the City of Providence.

Provide state support of the Historical Preservation and Heritage Commission to fund capital preservation for renovation projects for museums and cultural art centers located in historic structures in the State of Rhode Island.

(d) Heritage Harbor Museum $5,000,000

Provide funds for the creation, design, construction, furnishing, and equipping of the Heritage Harbor Museum, a statewide history museum and cultural center for Rhode Island. The new Heritage Harbor Museum is being built at the site of the former South Street Power Plant. The general obligation bond proceeds shall be used to supplement funding available to the project from other sources, including, but not limited to, federal grants, contributions of individuals, corporations and foundations, state appropriations, and grants from the City of Providence. The Heritage Harbor Museum will feature artifacts from the Smithsonian Institution borrowed through the Museum's participation in the Smithsonian Affiliations Program. The Heritage Harbor Museum is currently the only Smithsonian affiliate museum in New England.

Question 3 relating to bonds in the amount of $63,500,000 for transportation purposes shall be allocated as follows:

(a) Highway Improvement Program $60,000,000

Provide funds for the Department of Transportation to match federal funds or to provide direct funding for improvements to the state's highways, roads and bridges.

(b) Facilities/Equipment Replacement $1,800,000

Provide funds for the Department of Transportation to repair or renovate existing maintenance facilities or to construct new maintenance facilities.

Provide funds for the Rhode Island Public Transit Authority to purchase new buses or for the rehabilitation of existing buses in the bus fleet.

Question 4 relating to bonds in the amount of $11,000,000 for Quonset Point/Davisville for improvements to road and utility infrastructure at the site, for the demolition of buildings, site preparation and pier rehabilitation.

SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of this act shall be sold from time to time at not less than the principal amount thereof, in such mode and on such terms and conditions as the general treasurer, with the approval of the governor, shall deem to be for the best interests of the state.

Any premiums and accrued interest that may be received on the sale of the capital development bonds or notes shall become part of the general fund of the state and shall be applied to the payment of debt service charges of the state.

In the event that the amount received from the sale of the capital development bonds or notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be used to the extent possible to retire the bonds as the same may become due, to redeem them in accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the approval of the governor, shall deem to be for the best interests of the state.

Any bonds or notes issued under the provisions of this act and coupons on any capital development bonds, if properly executed by the manual or facsimile signatures of officers of the state in office on the date of execution shall be valid and binding according to their tenor, notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall for any reason have ceased to hold office.

SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. -- All bonds and notes issued under the authority of this act shall be exempt from taxation in the state and shall be general obligations of the state, and the full faith and credit of the state are hereby pledged for the due payment of the principal and interest on each of such bonds and notes as the same shall become due.

SECTION 9. Investment of moneys in fund. -- All moneys in the capital development fund not immediately required for payment pursuant to the provisions of this act may be invested by the investment commission, as established by Chapter 35-10, pursuant to the provisions of such chapter; provided, however, that the securities in which the capital development fund is invested shall remain a part of the capital development fund until exchanged for other securities; and provided further, that the income from investments of the capital development fund shall become a part of the general fund of the state and shall be applied to the payment of debt service charges of the state, or to the extent necessary, to rebate to the United States treasury any income from investments (including gains from the disposition of investments) of proceeds of bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds or notes from federal income taxation.

SECTION 10. Amortization. -- To the extent the debt service on these bonds is not otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise appropriated.

SECTION 11. Advances from general fund. -- The general treasurer is authorized from time to time with the approval of the director and the governor, in anticipation of the issue of notes or bonds under the authority of this act, to advance to the capital development bond fund to be used for the purposes specified in section 6 hereof, any funds of the state not specifically held for any particular purpose, provided, however, that all advances made to the capital development bond fund shall be returned to the general fund from the capital development bond fund forthwith upon the receipt by the capital development fund of proceeds resulting from the issue of notes or bonds to the extent of such advances.

SECTION 12. Federal assistance and private funds. -- In carrying out this act, the director, or his or her delegate, is authorized on behalf of the state, with the approval of the governor, to apply for and accept any federal assistance which may become available for the purpose of this act, whether in the form of loan or grant or otherwise, to accept the provision of any federal legislation therefor, to enter into, act and carry out contracts in connection therewith, to act as agent for the federal government in connection therewith, or to designate a subordinate so to act. Where federal assistance is made available, the project shall be carried out in accordance with applicable federal law, the rules and regulations thereunder and the contract or contracts providing for federal assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any federal funds received for the purposes of this act shall be deposited in the capital development bond fund and expended as a part thereof. The director or his or her delegate may also utilize any private funds that may be made available for the purposes of this act.

SECTION 13. Extension of previous authorizations. -- The general assembly, pursuant to the provisions of section 35-8-25 of the general laws, hereby extends to the termination dates contained herein, the authority to issue the following general obligation bond authorizations in the amounts stated. The original authorizations enacted by public law and approved by the people, remain unissued as of February 1, 2002 and are as follows:

		Unissued
		Amount to be
Purpose	Statutory Reference	Extended	Termination Date
Mental Health, Retardation,
and Hospitals	Ch. 434 - P.L. of 1990	$13,320,000	June 30, 2008

R.I. Water Pollution Revolving
Loan and Trust Fund	Ch. 238 - P.L. of 1988
		As amended by Ch. 303 -
P.L. of 1989 and Ch. 434 -
	P.L. of 1990	$12,755,000	June 30, 2005

The general assembly hereby extends for an additional year the authorization granted to the Rhode Island Industrial Recreational Building Authority provided by Chapter 91 of the Public Laws of 1958, and Chapter 537, Section 3, of the Public Laws of 1987.

SECTION 14. Effective Date. Sections 1, 2, 3, 13 and this section of this article shall take effect upon its passage. The remaining sections of this article shall take effect when and if the state board of elections shall certify to the secretary of state that a majority of the qualified electors voting on the propositions contained in section 1 hereof have indicated their approval of all or any projects thereunder.

ARTICLE 7 SUB A

RELATING TO STATE AID

SECTION 1. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby amended to read as follows:

45-13-1. Apportionment of annual appropriation for state aid. - (a) As used in this chapter, the following words and terms have the following meanings:

(1) "Population" means the most recent estimates of population for each city and town as reported by the United States department of commerce, bureau of the census.

(2) "Income" means the most recent estimate of per-capita income for a city, town or county as reported by the United States department of commerce, bureau of the census.

(3) "Tax effort" means the total taxes imposed by a city or town for public purposes or the totals of those taxes for the cities or towns within a county (except employee and employer assessments and contributions to finance retirement and social insurance systems and other special assessments for capital outlay) determined by the United States secretary of commerce for general statistical purposes and adjusted to exclude amounts properly allocated to education expenses.

(4) "Reference year" means the second fiscal year preceding the beginning of the fiscal year in which the distribution of state aid to cities and towns is made.

(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x income).

The amount to be allocated to the counties shall be apportioned in the ratio of the value of R for each county divided by the sum of the values of R for all five (5) counties.

The amount to be allocated for all cities and for all towns within a county shall be the allocation for that county apportioned proportionally to the total tax effort of the towns and cities in that county.

The amount to be allocated to any city or town is the amount allocated to all cities or all towns within the county apportioned in the ratio of the value of R for that city (or town) divided by the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city or town's population multiplied by the average per capita statewide amount of the annual appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the remainder of the cities and towns in the respective county in accordance with the provisions of this section.

(c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be specified in the annual appropriation act of the state and shall be equal to the following:

(i) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid shall be based upon one percent (1%) of total state tax revenues in the reference year.

(ii) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon one and three-tenths percent (1.3%) of total state tax revenues in the reference year.

(iii) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon one and seven-tenths percent (1.7%) of total state tax revenues in the reference year.

(iv) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon two percent (2.0%) of total state tax revenues in the reference year.

(v) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

(vi) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon ~~two and seven-tenths percent (2.7%)~~ two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

(vii) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon ~~three percent (3.0%)~~ two and seven-tenths percent (2.7%) of total state tax revenues in the reference year.

(viii) For the fiscal year ending June 30, 2005, the total amount of aid shall be based upon ~~three and four-tenths percent (3.4%)~~ three percent (3.0%) of total state tax revenues in the reference year.

(ix) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon ~~three and seven-tenths percent (3.7%)~~ three and four-tenths percent (3.4%) of total state tax revenues in the reference year.

(x) For the fiscal year ending June 30, 2007, the total amount of aid shall be based upon ~~four and one-tenths percent (4.1%)~~ three and seven-tenths percent (3.7%) of total state tax revenues in the reference year.

(xi) For the fiscal year ending June 30, 2008, the total amount of aid shall be based upon ~~four and four-tenths percent (4.4%)~~ four and one-tenths percent (4.1%) of total state tax revenues in the reference year.

(xii) For the fiscal year ending June 30, 2009, the total amount of aid shall be based upon ~~four and seven-tenths percent (4.7%)~~ four and four-tenths percent (4.4%) of total state tax revenues in the reference year.

(xiii) For the fiscal year ending June 30, 2010, the total amount of aid shall be based upon four and seven-tenths percent (4.7%) of total state tax revenues in the reference year.

(d) The assent of two-thirds (2/3) of the members elected to each house of the general assembly shall be required to repeal or amend this section.

SECTION 2. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby amended to read as follows:

45-13-5.1. General assembly appropriations in lieu of property tax from certain exempt private and state properties. - (a) In lieu of the amount of local real property tax on real property owned by any private nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and operated hospital, veterans' residential facility, or correctional facility occupied by more than 100 residents which may have been or will be exempted from taxation by applicable state law, exclusive of any facility operated by the federal government, the state of Rhode Island, or any of its subdivisions, the general assembly shall annually appropriate for payment to the several cities and towns in which the property lies a sum equal to twenty-seven percent (27%) of all tax that would have been collected had the property been taxable.

(b) As used in this section, "private nonprofit institution of higher education" means any institution engaged primarily in education beyond the high school level, the property of which is exempt from property tax under any of the subdivisions, and "nonprofit hospital facility" means any nonprofit hospital licensed by the state and which is used for the purpose of general medical, surgical, or psychiatric care and treatment.

(c) The grant payable to any municipality under the provision of this section shall be equal to twenty-seven percent (27%) of the property taxes which, except for any exemption to any institution of higher education or general hospital facility, would have been paid with respect to that exempt real property on the assessment list in the municipality for the assessment date of December 31, 1986 and with respect to such exempt real property appearing on an assessment list in the municipality on succeeding assessment dates.

(d) The state budget offices shall include the amount of the annual grant in the state budget for the fiscal year commencing July 1, 1988 and each fiscal year thereafter. The amount of the annual grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of the annual grants in any year exceeds the amount appropriated that year for the purposes of this section.

(e) Distribution of appropriations shall be made by the state on or before July 31 of 1988 and each July 31 thereafter, and the payments may be counted as a receivable by any city or town for a fiscal year ending the preceding June 30.

(f) Any act or omission by the state with respect to this chapter shall in no way diminish the duty of any town or municipality to provide public safety or other ordinary services to the properties or facilities of the type listed in subsection (a).

(g) Provided, that payments authorized pursuant to this section shall be reduced pro rata, for that period of time that the municipality suspends or reduces essential services to eligible facilities. For the purposes of this section "essential services" include, but are not to be limited to, police, fire and rescue.

SECTION 3. Section 29-6-2 of the General Laws in Chapter 29-6 entitled "State Aid to Libraries" is hereby amended to read as follows:

29-6-2. Public library services. - For each city or town, the state's share to support local public library services shall be ~~gradually increased from the level of support in fiscal year 1990 until the state's share in fiscal year 2000 is~~ equal to at least twenty-five percent (25%) of the amount appropriated and expended in the second preceding fiscal year by the city or town from local tax revenues. Beginning in 1989, and for each year thereafter through 1999, the director of state library services, on or before October 1, shall submit a plan to the governor and the general assembly detailing a proposed schedule of increases, by fiscal year, in local library aid to achieve a state share of at least twenty-five percent (25%) by the year 2000 and projected expenditures necessary to achieve the state share in each of the intervening years. The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of those grants in any year exceeds the amount appropriated that year for the purposes of this section.

SECTION 4. This article shall take effect on July 1, 2002.

ARTICLE 8 SUB A AS AMENDED

THE TOBACCO SETTLEMENT FINANCING CORPORATION ACT

SECTION 1. Title 42 of the General Laws entitled "State Affairs and Government" is hereby amended by adding thereto the following chapter:

CHAPTER 133
TOBACCO SETTLEMENT FINANCING CORPORATION ACT

42-133-1. Short title. -- This chapter shall be known as the " Tobacco Settlement Financing Corporation Act."

42-133-2. Purpose. -- The purpose of this chapter is to authorize, create and establish a corporation empowered to acquire from the state that portion of the state's tobacco receipts as the state is authorized to sell; to authorize the sale by the state all or a portion of the state's tobacco receipts to such corporation; to authorize the transfer to and the receipt by such corporation of all or a portion of the state's tobacco receipts; to authorize such corporation to issue bonds of the corporation for the purposes authorized in this chapter, payable solely from and secured solely by such portion of the state's tobacco receipts as the corporation may designate and pledge to secure the bonds, together with the investment income thereon and any reserve fund created by the corporation from any portion of the proceeds of such bonds; and to authorize the corporation to manage and dispose of all or a portion of the state's tobacco receipts for the purposes and in the manner authorized in this chapter.

42-133-3. Definitions. -- As used in this chapter, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning or intent:

(1) "Board" means the governing body of the corporation.

(2) "Bonds" means bonds, notes (but only as provided in section 42-133-8(6)(e)), or other evidences of indebtedness of the corporation, all of which shall be in all events payable solely from and secured solely by such portion of the state's tobacco receipts as are sold to the corporation and pledged to secure the bonds, and issued pursuant to the authorizations contained in this chapter, all of which shall be issued under the name of or known as obligations of the corporation.

(3) "Corporation" means the corporation authorized, created, and established pursuant to this chapter.

(4) "Escrow" means the escrow as that term is defined in the master settlement agreement.

(5) "Escrow agent" means the escrow agent as that term is defined in the master settlement agreement.

(6) "Independent auditor" means the independent auditor as that term is defined in the master settlement agreement.

(7) "Master settlement agreement" means the settlement agreement and related documents entered into on November 23, 1998, by the state and the four (4) principal United States tobacco product manufacturers, as amended and supplemented.

(8) "Participating manufacturers" means the participating manufacturers as that term is defined in the master settlement agreement.

(9) "Qualifying statute" means chapter 23-71 of the general laws enacted March 30, 2001 and applied retroactively to June 29, 1999, in conformity with exhibit T of the master settlement agreement.

(10) "State" means the state of Rhode Island and Providence Plantations.

(11) "State's tobacco receipts" means all of the payments to be made by the escrow agent and derived from payments made by the participating manufacturers and allocated to the state under the master settlement agreement, other than pursuant to Article XVII of the master settlement agreement.

42-133-4. Creation -- Powers -- Construction of chapter -- Termination. -- (a) There is hereby authorized, created and established, a public corporation of the state having a legal existence distinct from the state and not constituting a department of state government, to be known as the Tobacco Settlement Financing Corporation, with such powers as are set forth in this chapter.

(b) It is the intent of the general assembly by the passage of this chapter to vest in the corporation all powers, authority, rights, privileges, and titles which may be necessary to enable it to accomplish the purposes set forth in this chapter. This chapter and the powers granted hereby shall be liberally construed in conformity with these purposes.

(c) The corporation and its corporate existence shall continue until terminated by law or until the corporation shall cease entirely and continuously to conduct or be involved in any business whatsoever in furtherance of its purposes; provided, that no termination shall take effect prior to the date which is one (1) year and one (1) day after the date on which the corporation no longer has any bonds outstanding. Upon termination of the existence of the corporation, all its rights and properties shall pass to and best vested in the state. At no other time shall the assets or other property of the corporation inure to the benefit of any other person.

42-133-5. General powers. -- (a) The corporation shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to, the power to:

(1) sue and be sued, complain and defend, in its corporate name;

(2) have a seal which may be altered at pleasure, and use the seal by causing it, or a facsimile thereof, to be impressed or affixed or in any other manner reproduced; provided, however, that the failure to affix the seal does not affect the validity of an instrument executed on behalf of the corporation;

(3) adopt, promulgate, amend, and repeal bylaws, not inconsistent with provisions in this chapter, for the administration and regulation of the corporation's affairs and the implementation of its functions;

(4) conduct its activities, carry on its operations, and have offices and exercise the powers granted by this chapter;

(5) purchase, take, receive, or otherwise acquire, own, hold, use, and otherwise deal in and with, intangible personal property, or any interest therein, including the state's tobacco receipts or any portion thereof;

(6) invest and reinvest its funds in such manner as shall be determined by the board or by contract with its bondholders (and such investments shall not be subject to chapter 35-10.1);

(7) make and execute all contracts or agreements necessary, proper, or convenient for the exercise of the powers and purposes of the board and the corporation; borrow money through the execution and delivery of bonds, and make, execute and deliver financing agreements relating thereto in the exercise of the powers and purposes of the board and the corporation;

(8) make and execute all agreements for the purpose of managing and controlling the funds transferred between the corporation and the state, and any trust created by the state or the corporation, and governing the investment and the monitoring and record keeping of such funds and investment income thereon, for purposes of maintaining the exemption from federal income tax of interest on bonds and for other purposes;

(9) make and execute, amend and terminate all agreements in the nature of interest rate swaps, forward security supply contracts, agreements for the management of interest rate risks, agreements for the management of cash flow, and other agreements of a similar nature, with respect to bonds issued pursuant to this chapter;

(10) procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public or private entity, including any department, agency, or instrumentality of the United States or the state, for the payment of any bonds, including the power to pay premiums or fees on any insurance, guarantees, letters of credit, and other forms of collateral or security or credit support;

(11) make and execute all contracts and expend funds to obtain accounting, management, legal, financial consulting, trusteeship and other professional services necessary or convenient to the operations of the corporation;

(12) expend funds for the costs of administering the operations of the corporation;

(13) request the attorney general, on behalf of the state, to notify the independent auditor of the sale and instruct the independent auditor to direct the escrow agent to disburse to the corporation, so that it may receive and accept from the escrow agent, all or a portion of the state's tobacco receipts;

(14) with respect to all or such portion of the state's tobacco receipts as may be acquired by the corporation, direct the attorney general to enforce, in the name of the state and, if permissible, to enforce directly through the corporation's own attorneys in the name of the state, with notice to the attorney general, the master settlement agreement; provided, that the board may not give any approval to any amendment to the master settlement agreement or the qualifying statute without notice to the attorney general and the approval of the general assembly. This power constitutes a part of the contractual obligation owed to the holders of any bonds;

(15) create and establish, or cause to be created and established, under the laws of this state or another state, a trust fund with regard to monies paid to the corporation which monies shall include, but not be limited to, such portion of the state's tobacco receipts as may be sold to the corporation and not pledged to the payment of bonds or subsequently released from the pledge for payment of the bonds and which, in accordance with any sale agreement with the state, is to be paid to the state, including such portion of the proceeds of any bonds designated for the purchase of the state's tobacco receipts and designated for deposit in the fund, together with all interest thereon; and all securities or investment income and other assets acquired by and through the use of the monies belonging to the fund and any other monies deposited in the fund. Monies in the fund shall be used solely and only for the payment of all amounts due and to become due to the state, and shall not be used for any other purpose. Monies deposited in the trust fund shall not be available for the payment of any claim against the corporation or any debt or obligation of the corporation, including any bonds issued by the corporation; and

(16) do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter or that may be necessary for the furtherance and accomplishments of the purposes of the corporation.

(b) As long as any bonds of the corporation are outstanding, the corporation shall not take any action that materially and adversely affects the rights of the holders of its bonds.

42-133-6. Board and officers. -- (a) The powers of the corporation shall be vested in a board consisting of three (3) members, which shall constitute the governing body of the corporation, and which shall be comprised as follows: the Governor or his or her designee; the Speaker of the House or his or her designee; and the Senate Majority Leader or his or her designee until January 7, 2003 and the Senate President or his or her designee thereafter.

(b) Members shall receive no compensation for the performance of their duties.

(c) The board shall elect one of its members to serve as chairperson. Three (3) members shall constitute a quorum and any action to be taken by the corporation under the provisions of this chapter may be authorized by resolution approved by at least two (2) of the members present and voting at any regular or special meeting at which a quorum is present, provided, however, that the affirmative vote of the Speaker of the House or his or her designee and the Senate Majority Leader or his or her designee until January 7, 2003 and the Senate President or his or her designee thereafter shall be required.

(d) In addition to electing a chairperson, the board shall appoint a secretary and such additional officers as they shall deem appropriate.

(e) Any action taken by the corporation under the provisions of this chapter may be authorized by vote at any regular or special meeting, and the vote shall take effect immediately.

(f) Any action required by this chapter to be taken at a meeting of the board, or any action which may be taken at a meeting of the board or committee thereof to be ratified by the board, may be taken without a meeting if a consent in writing, setting forth the action so to be taken, shall be signed before or after that action by all of the board members, or all of the members of the committee, as the case may be.

(g) To the extent that administrative assistance is needed for the functions and operations of the board, the corporation may by contract or agreement obtain this assistance from the director of administration, the attorney general, and any successor officer at such cost to the corporation as shall be established by such contract or agreement. The board, however, shall remain responsible for, and provide oversight of, proper implementation of this chapter.

(h) Members of the board and persons acting on the corporation's behalf, while acting within the scope of their employment or agency, are not subject to personal liability resulting from carrying out the powers and duties conferred on them under this chapter.

(i) The state shall indemnify and hold harmless every past, present, or future board member, officer or employee of the corporation who is made a party to or is required to testify in any action, investigation, or other proceeding in connection with or arising out of the performance or alleged lack of performance of that person's duties on behalf of the corporation.

These persons shall be indemnified and held harmless, whether they are sued individually or in their capacities as board members, officers or employees of the corporation, for all expenses, legal fees and/or costs incurred by them during or resulting from the proceedings, and for any award or judgment arising out of their service to the corporation that is not paid by the corporation and is sought to be enforced against a person individually, as expenses, legal fees, costs, awards or judgments occur; provided, that neither the state nor the corporation shall indemnify any commissioner, officer, or employee:

(1) For acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;

(2) For any transaction from which the member derived an improper personal benefit; or

(3) For any malicious act.

42-133-7. Sale of state's tobacco receipts. --(a) On or before June 30, 2002, the state shall sell and assign to and the corporation shall acquire all or a portion of the state's tobacco receipts. The attorney general shall assist the governor in the preparation and review of all necessary documentation to effect such sale and transfer by such date. The terms and conditions of the sale shall be established in order to accomplish the purpose and intent set forth in this chapter and shall include, but not be limited to, the price, the net proceeds of the sale of the bonds to be issued by the corporation and secured by a portion of the state's tobacco receipts, and the beneficial interest of the state in any trust fund created in accordance with this chapter.

(b) The sale of the state's tobacco receipts to the corporation shall be irrevocable during the time when any bonds issued by the corporation are outstanding, and shall constitute a contractual obligation owed to the holders of such bonds. The sale of the state's tobacco receipts shall be treated as a true sale and absolute transfer of the property so transferred and not as a pledge or other security interest for any borrowing. The characterization of such a sale as an absolute transfer shall not be negated or adversely affected by the fact that only a portion of the state's tobacco receipts is being sold or by the state's acquisition or retention of an ownership interest in any residual assets.

(c) On or after the effective date of the sale, the state shall not have any right, title, or interest in all or such portion of the state's tobacco receipts sold which shall be the sole property of the corporation, and not of the state, and shall be owned, received, held, and disbursed by the corporation or its trustee or assignee in accordance with this chapter, and not by the state.

(d) On or before the effective date of the sale and at the request of the corporation, the state, through the attorney general, shall notify the independent auditor of the sale and instruct the independent auditor to direct the escrow agent that, subsequent to that date and irrevocably during the time when any bonds are outstanding, the state's tobacco receipts acquired by the corporation are to be paid directly to the corporation or its designee.

(e) With respect to the issuance of the corporation's bonds and in compliance with all applicable federal law, including, but not limited to, the Internal Revenue Code, the state and the corporation may enter into agreements for the benefit of the corporation's bondholders with respect to the application of the proceeds of the bonds and certain other monies of the state, the investment thereof, and the periodic reporting of certain information, and such other matters related thereto.

42-133-8. Bonds. -- (a) In furtherance of this chapter:

(1) The corporation may issue bonds, from time to time, for the purposes and in the manner authorized by this chapter. Bonds issued pursuant to this chapter may be secured by the pledge of a portion of the state's tobacco receipts sold to the corporation, any monies derived therefrom, and any other sources available to the corporation. The corporation may also issue refunding bonds, including advance refunding bonds, for the purpose of refunding previously issued bonds.

(2) The corporation may issue its bonds in such principal amounts and at such rate or rates of interest as the corporation by resolution of the board may determine, establish reserves to secure the bonds, and pay the costs of issuance of the bonds and all other expenditures of the corporation incident to and necessary to carry out the corporation's purposes or powers. The bonds are investment securities and negotiable instruments within the meaning of and for the purposes of title 6A.

(3) Bonds issued by the corporation are payable solely and only out of the monies, assets, or revenues pledged by the corporation, and are not a general obligation or indebtedness of the corporation or an obligation or indebtedness of the state or any subdivision of the state. The corporation has no power or authorization to pledge the credit or taxing power of the state or any political subdivision of the state, or create a debt or obligation of the state, or make its debts payable out of any monies except monies of the corporation.

(4) Bonds shall state on their face that the bonds are payable both as to principal and interest solely out of the assets of the corporation pledged for such purpose and; neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged to the payment of the principal of or the interest on the bonds; do not constitute an indebtedness of the state or any political subdivision of the state; are secured solely by and are payable solely from the tobacco receipts sold to the corporation and other monies of the corporation; do not constitute a general, legal, or moral obligation of the state or any political subdivisions thereof and that the state has no obligation or intention to satisfy any deficiency or default of any payment of the bonds.

(5) Any pledge by the corporation of a portion of the state's tobacco receipts shall be valid and binding at the time such pledge is made. Tobacco receipts so pledged and then or thereafter received by the corporation shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind against the corporation, whether such parties have notice of the lien. Notwithstanding any other provision to the contrary, the resolution of the corporation or any other instrument by which a pledge is created need not be recorded or filed to perfect such pledge.

(6) The proceeds of bonds may be invested in any manner approved by the board and specified in the trust indenture or resolution pursuant to which the bonds are issued.

(b) All bonds issued by the corporation shall comply with all of the following:

(1) Bonds shall be in a form, issued in denominations, executed in a manner, and payable over terms and with rights of redemption, as the board prescribes in the resolution authorizing their issuance.

(2) Bonds shall be fully negotiable instruments under the laws of this state and may be sold at prices, at public or private sale, and in a manner as prescribed by the board.

(3) Bonds shall be subject to the terms, conditions and covenants providing for the payment of the principal, redemption premiums, if any, interest, and other terms, conditions, covenants and protective provisions safeguarding payment, not inconsistent with this chapter and as determined by resolution of the board authorizing their issuance.

(c) Bonds must be authorized by a resolution of the board; provided, that a resolution authorizing the issuance of bonds may delegate to an officer of the corporation the power to negotiate and fix the details of an issue of bonds by an appropriate certificate of the authorized officer.

(d) To comply with all applicable federal law with respect to the issuance of bonds, including, but not limited to, tax-exemption provisions of Internal Revenue Code, the corporation may issue a certain series of bonds, or periodically issue several series of bonds, so that interest on the bonds remains exempt from federal taxation or to comply with the purposes specified in this chapter.

42-133-9. Trust funds. -- All money received pursuant to the authority of this chapter, whether as provided from the sale of bonds or state's tobacco receipts purchased by the corporation, or investment income, shall be trust funds to be held and applied solely as provided in the proceedings under which the bonds of the corporation are authorized. Any officer with whom, or any bank or trust company with which monies shall be deposited as trustee, shall hold and apply the trust funds for the purposes for which the bonds are authorized, subject to the applicable provisions of this chapter, the proceedings authorizing the bonds, and the trust agreement securing the bonds, if any.

42-133-10. Exemption from taxation. --The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the state, and the corporation, and any trust established by the corporation, shall not be required to pay taxes of the state or any political subdivision of the state of any kind, including any tax or assessment on any property owned by the corporation, or any trust established by the corporation, under the provisions of this chapter or upon the income from any property. Any bonds issued by the corporation under the provisions of this chapter, their transfer, and the income from them (including any profits made on their sale), shall at all times be free from taxation by the state or any political subdivision or other instrumentality of the state, excepting inheritance, estate, and gift taxes.

42-133-11. Bankruptcy. --Prior to the date which is one (1) year and one (1) day after the date on which the corporation no longer has any bonds outstanding, the corporation has no authority to file a voluntary petition under chapter 9 of the United States Bankruptcy Code or such corresponding law as may, from time to time, be in effect, and neither any public official nor any other organization, entity, or other person shall authorize the corporation to be or become a debtor under the United States Bankruptcy Code or any corresponding law during such periods. The provisions of this section are for the benefit of the holders of any bonds and are a part of the contractual obligation owed to such bondholders and the state hereby agrees that it shall not modify or delete the provisions of this section during the periods described in this section. The corporation is authorized to include this agreement of the state in any agreement with the holders of the bonds.

42-133-12. Limited power to incur debt. -- The corporation and the board have no power to incur debt or obligations or in any way to encumber their assets except by the issuance of bonds, including the making of covenants in relation to the issuing of bonds and the incurring of expenses and obligations in connection with such issuance.

42-133-13. Bonds as legal investments. -- The bonds of the corporation are hereby made securities in which all public officers and bodies of this state and municipalities and municipal subdivisions, all companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks, and savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whatsoever who are authorized to invest in bonds or other obligations of the state may properly and legally invest funds, including capital, in their control or belonging to them.

42-133-14. Agreement by the state. -- The state does hereby pledge to and agree with the holders of any bonds issued under this chapter that the state will not limit or alter the rights vested in the corporation to fulfill the terms of any agreements made with the holders, or otherwise take any action that materially and adversely affects the rights of the holders, until the bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of holders, are fully met and discharged. The corporation is authorized to include this pledge and agreement of the state in any agreement with the holders of the bonds.

42-133-15. Credit of the state. -- Bonds issued under the provisions of this chapter shall not constitute a debt, liability, or obligation of the state or of any political subdivision thereof other than the corporation, or a pledge of the faith and credit of the state or any political subdivision, but shall be payable solely from the assets of the corporation. Bonds shall state on their face that the bonds are payable both as to principal and interest solely out of the assets of the corporation pledged for such purpose, and neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged to the payment of the principal of or the interest on the bonds; do not constitute an indebtedness of the state or any political subdivision of the state; are secured solely by and payable solely from the tobacco receipts sold to the corporation and other moneys of the corporation; and do not constitute a general, legal, or moral obligation of the state or any political subdivisions thereof, and that the state has no obligation or intention to satisfy any deficiency or default of any payment of the bonds.

42-133-16. Annual report and audit. -- The corporation shall submit to the speaker of the house, the majority leader of the senate until January 7, 2003 and the President of the Senate thereafter, the director of administration and the attorney general within four (4) months after the close of its fiscal year, a report of its activities for the preceding fiscal year. The report shall set forth a complete operating and financial statement covering the corporation's operations during the preceding fiscal year. The corporation shall cause an independent audit of its books and accounts to be made at least once each fiscal year. The fiscal year of the corporation shall commence on each July 1.

42-133-17. Attorney general. -- Nothing in this chapter shall be construed as in any way modifying or limiting, and the state does hereby pledge to and agree with the holders of any bonds issued under this chapter that the state will not modify or limit, the responsibility of the attorney general to administer, protect and discharge all duties, rights and obligations of the state under the master settlement agreement and the qualifying statute.

42-133-18. Chapter controlling over inconsistent provisions. --Insofar as the provisions of this chapter are inconsistent with the provisions of any other law or ordinance, general, special or local, the provisions of this chapter shall be controlling.

42-133-19. Construction with other statutes. -- The issuance of bonds of the corporation under the provisions of this chapter need not comply with the requirements of any other statute applicable to the issuance of obligations. No proceedings or notice of approval shall be required for the issuance of any bonds except as provided in this chapter.

42-133-20. Severability. -- If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate the remainder of this chapter, but shall be confined in its operation to the clause, sentence, paragraph, section, or part directly involved in the controversy in which that judgment shall have been rendered.

SECTION 2. Section 35-3-23 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-23. Interfund transfers. [Effective until January 7, 2003.] -- The governor may make an interfund transfer. Prior to making an interfund transfer the governor shall give five (5) days written notification of the proposed interfund transfer to the speaker of the house, the majority leader of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the minority leader of the senate, and the minority leader of the house. An interfund transfer must comply with this section. An interfund transfer can be made under the following circumstances and on the following conditions:

(1) The governor must make the findings that:

(i) All cash in the general fund, including the payroll clearing account, has been or is about to be exhausted;

(ii) The anticipated cash expenditures exceed the anticipated cash available.

(2) The governor may make an interfund transfer to the general fund from the:

(i) Temporary disability fund created in section 28-39-4; ~~and/or~~

(ii) Intermodal surface transportation fund created in section 35-4-11; and/or .

(iii) Tobacco settlement financing trust fund created in section 42-133-9.

(3) Once in each fiscal quarter from each fund the governor may make an interfund transfer. The fund(s) from which money is transferred must be made whole by June 30th in the same fiscal year as the transfer is made.

(4) The interfund transfer may be made notwithstanding the provisions of sections 28-37-3 and 28-39-4.

35-3-23. Interfund transfers. [Effective January 7, 2003.] -- The governor may make an interfund transfer. Prior to making an interfund transfer the governor shall give five (5) days written notification of the proposed interfund transfer to the speaker of the house, the president of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the minority leader of the senate, and the minority leader of the house. An interfund transfer must comply with this section. An interfund transfer can be made under the following circumstances and on the following conditions:

(1) The governor must make the findings that:

(i) All cash in the general fund, including the payroll clearing account, has been or is about to be exhausted;

(ii) The anticipated cash expenditures exceed the anticipated cash available.

(2) The governor may make an interfund transfer to the general fund from the:

(i) Temporary disability fund created in section 28-39-4; ~~and/or~~

(ii) Intermodal surface transportation fund created in section 35-4-11. and/or

(iii) Tobacco settlement financing trust fund created in section 42-133-9.

(4) The interfund transfer may be made notwithstanding the provisions of sections 28-37-3 and 28-39-4.

SECTION 3. Chapter 44-20 of the General Laws entitled "Cigarette Tax" is hereby amended by adding thereto the following section:

44-20-28.1. Noncompliance with Tobacco Manufacturer's Escrow Fund-Penalties. - (A) A distributor may not affix, or cause to be affixed, stamps to individual packages of cigarettes to be sold or distributed in this state by a distributor licensed in this state if the Attorney General has notified the distributor that the tobacco product manufacturer of those cigarettes has:

(a) Failed to become a participating manufacturer pursuant to section 23-71-3(1) of the Rhode Island General Laws; and

(b) Failed to create a qualified escrow fund and make the required deposits in said escrow fund pursuant to section 23-71-3(2)(i) of the Rhode Island General Laws for any cigarettes the distributor sold or distributed for that tobacco product manufacturer in this state.

As used in this section, "tobacco product manufacturer" has the same meaning as that term is defined in section 23-71-2 of the Rhode Island General Laws.

(B) A distributor who violates this section is subject to suspension or revocation of its license pursuant to section 44-20-8.

SECTION 4. This article shall take effect upon passage.

ARTICLE 9 SUB A

RELATING TO TAXATION -- PERSONAL INCOME TAX

SECTION 1. Sections 44-30-12, 44-30-17, 44-30-32 and 44-30-36 of the General Laws in Chapter 44-30 entitled "Personal Income Tax" are hereby amended to read as follows:

44-30-12. Rhode Island income of a resident individual. -- (a) General. - The Rhode Island income of a resident individual means his or her adjusted gross income for federal income tax purposes, with the modifications specified in this section.

(b) Modifications increasing federal adjusted gross income. - There shall be added to federal adjusted gross income:

(1) Interest income on obligations of any state, or its political subdivisions, other than Rhode Island or its political subdivisions;

(2) Interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the extent exempted by the laws of the United States from federal income tax but not from state income taxes.

(3) The modification described in section 44-30-25(g). ; and

(4) The amount defined below of a nonqualified withdrawal made from an account in the tuition savings program pursuant to section 16-57-6.1. For purposes of this section, a nonqualified withdrawal is:

(i) a transfer or rollover to a qualified tuition program under section 529 of the internal revenue code, other than to the tuition savings program referred to in section 16-57-6.1; and

(ii) a withdrawal or distribution which is:

(A) not applied on a timely basis to pay "qualified higher education expenses" as defined in section 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

(B) not made for a reason referred to in subsection 16-57-6.1(e); or

(C) not made in other circumstances for which an exclusion from tax made applicable by section 529 of the internal revenue code pertains if such transfer, rollover, withdrawal or distribution is made within two (2) taxable years following the taxable year for which a contributions modification pursuant to subsection 44-30-12(c)(4) is taken based on contributions to any tuition savings program account by the person who is the participant of the account at the time of the contribution, whether or not such person is the participant of the account at the time of the transfer, rollover, withdrawal or distribution.

In the event of a nonqualified withdrawal under (i) or (ii) above, there shall be added to the federal adjusted gross income of that person for the taxable year of the withdrawal an amount equal to the lesser of:

(I) the amount equal to the nonqualified withdrawal reduced by the sum of any administrative fee or penalty imposed under the tuition savings program in connection with the nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the person's federal adjusted gross income for such taxable year; and

(II) the amount of the person's contribution modification pursuant to subsection 44-30-12(c)(4) for the person's taxable year of the withdrawal and the two (2) prior taxable years less the amount of any nonqualified withdrawal for the two (2) prior taxable years included in computing such person's Rhode Island income by application of this subsection for those years. Any amount added to federal adjusted gross income pursuant to subsection 44-30-12(b)(4) shall constitute Rhode Island income for residents, nonresidents and part-year residents.

(c) Modifications reducing federal adjusted gross income. - There shall be subtracted from federal adjusted gross income:

(1) Any interest income on obligations of the United States and its possessions to the extent includible in gross income for federal income tax purposes, and any interest or dividend income on obligations, or securities of any authority, commission, or instrumentality of the United States to the extent includible in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States; provided that the amount to be subtracted shall in any case be reduced by any interest on indebtedness incurred or continued to purchase or carry obligations or securities the income of which is exempt from Rhode Island personal income tax, to the extent the interest has been deducted in determining federal adjusted gross income or taxable income;

(2) A modification described in section 44-30-25(f) or section 44-30-1.1(C)(1); and

(3) The amount of any withdrawal or distribution from the "tuition savings program" referred to in section 16-57-6.1 which is included in federal adjusted gross income, other than a withdrawal or distribution or portion of a withdrawal or distribution which is a nonqualified withdrawal. ~~As used in this section, a "nonqualified withdrawal" is a withdrawal or distribution which either is:~~

~~(i) Not applied on a timely basis to pay "qualified higher education expenses" as defined in section 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;~~

~~(ii) Not made for a reason referred to in section 16-57-6.1(e); or~~

~~(iii) Not made in other circumstances for which an exclusion from the tax made applicable by section 529 of the internal revenue code pertains.~~

(4) Contributions made to an account under the tuition savings program, including the "contributions carryover" pursuant to subsection 44-30-12(c)(4)(iv), if any, subject to the following limitations, restrictions and qualifications:

(i) The aggregate subtraction pursuant to subsection 44-30-12(c)(4) for any taxable year of the taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint return;

(ii) The following shall not be considered contributions:

(A) contributions made by any person to an account who is not a participant of the account at the time the contribution is made;

(B) transfers or rollovers to an account from any other tuition savings program account or from any other "qualified tuition program" under section 529 of the internal revenue code; or

(iii) The subtraction pursuant to subsection 44-30-12(c)(4) shall not reduce the taxpayer's federal adjusted gross income to less than zero (0).

(iv) The contributions carryover to a taxable year for purpose of subsection 44-30-12(c)(4) is the excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition savings program for all preceding taxable years for which this subsection is effective over the sum of:

(A) the total of the subtractions under subsection 44-30-12(c)(4) allowable to the taxpayer for all such preceding taxable years; and

(B) that part of any remaining contribution carryover at the end of the taxable year which exceeds the amount of any nonqualified withdrawals during such year and the prior two (2) taxable years not included in the addition provided for in subsection 44-30-12(b)(4) for those years. Any such part shall be disregarded in computing the contributions carryover for any subsequent taxable year.

(v) For any taxable year for which a contributions carryover is applicable, the taxpayer shall include a computation of the carryover with the taxpayer's Rhode Island personal income tax return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a subsequent taxable year, the computation shall reflect how the carryover is being allocated between the prior joint filers.

(d) Modification for Rhode Island fiduciary adjustment. -- There shall be added to or subtracted from federal adjusted gross income (as the case may be) the taxpayer's share, as beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under section 44-30-17.

(e) Partners. -- The amounts of modifications required to be made under this section by a partner, which relate to items of income or deduction of a partnership, shall be determined under section 44-30-15.

44-30-17. Share of a resident estate, trust, or beneficiary in Rhode Island fiduciary adjustment. -- (a) General. - An adjustment shall be made in determining Rhode Island income of a resident estate or trust under section 44-30-16, or Rhode Island income of a resident beneficiary of any estate or trust under subsection (d) of section 44-30-12, in the amount of the share of each in the Rhode Island fiduciary adjustment as determined in this section.

(b) Definition. -- The Rhode Island fiduciary adjustment shall be the net amount of the modifications described in section 44-30-12 (excluding ~~subdivision~~ subdivisions (b)(4), (c)(3) and (c)(4) of that section) and including subsection (d) of that section if the estate or trust is a beneficiary of another estate or trust), which relates to items of income or deduction of an estate or trust.

(c) Shares of Rhode Island fiduciary adjustment. -- (1) The respective shares of an estate or trust and its beneficiaries (including, solely for the purpose of this allocation, nonresident beneficiaries) in the Rhode Island fiduciary adjustment shall be in proportion to their respective shares of federal distributable net income of the estate or trust.

(2) If the estate or trust has no federal distributable net income for the taxable years, the share of each beneficiary in the Rhode Island fiduciary adjustment shall be in proportion to his or her share of the estate or trust income for that year, under the law governing the instrument, which is required to be distributed currently and any other amounts of that income distributed in that year. Any balance of the Rhode Island fiduciary adjustment shall be allocated to the estate or trust.

(d) Alternate attribution of modifications. - The tax administrator may by regulation authorize the use of such other methods of determining to whom the items comprising the fiduciary adjustment shall be attributed, as may be appropriate and equitable, on such terms and conditions as the tax administrator may require.

44-30-32. Rhode Island income of a nonresident individual. -- (a) General. - The Rhode Island income of a nonresident individual shall be the sum of the following:

(1) The net amount of items of income and deduction entering into his or her federal adjusted gross income derived from or connected with Rhode Island sources, including:

(i) His or her distributive share of partnership income and deductions, determined under section 44-30-34; and

(ii) His or her share of estate or trust income and deductions, determined under section 44-30-36; and

(2) The portion of the modifications described in subsections (b) and (c) of section 44-30-12 which relate to income derived from Rhode Island sources, including any modifications attributable to the individual as a partner.

(3) The portion of the modifications described in subsections 44-30-12(b) and 44-30-12(c) which relate to the tuition savings plan program referred to in section 16-57-6.1.

(b) Income and deductions from Rhode Island sources. -- (1) Items of income and deduction derived from or connected with Rhode Island sources shall be those items attributable to:

(i) The ownership or disposition of any interest in real or tangible personal property in this state; or

(ii) A business, trade, profession, or occupation carried on in this state.

(iii) Gambling winnings from the state lottery and gambling winnings from pari-mutuel betting events conducted or operated by a licensee within this state.

(2) Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, shall constitute income derived from Rhode Island sources only to the extent that the intangible personal property is employed in a business, trade, profession, or occupation carried on in this state.

(3) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income and deductions derived from or connected with Rhode Island sources, under regulations of the tax administrator, but otherwise shall be determined in the same manner as the corresponding federal deductions.

(c) Income and deductions partly from Rhode Island sources. -- If a business, trade, profession, or occupation is carried on partly within and partly without this state, the items of income and deduction derived from or connected with Rhode Island sources shall be determined by apportionment and allocation under regulations to be promulgated by the tax administrator.

(d) Military pay. - Compensation paid by the United States for service in the armed forces of the United States, performed by an individual not domiciled in this state, shall not constitute income derived from Rhode Island sources.

44-30-36. Share of a nonresident estate, trust, or beneficiary in income from Rhode Island sources. -- (a) General. -- The share of a nonresident estate or trust under section 44-30-35(a)(1) and the share of a nonresident beneficiary of any estate or trust under section 44-30-32(a) in estate or trust income and deduction from Rhode Island sources shall be determined as follows:

(1) Items of distributable net income from Rhode Island sources. -- There shall be determined the items of income and deduction, derived from or connected with Rhode Island sources, which enter into the definition of "federal distributable net income" of the estate or trust for the taxable year, including the items from another estate or trust of which the first estate or trust is a beneficiary. The determination of source shall be made under regulations of the tax administrator in keeping with the applicable rules of section 44-30-32 as if the estate or trust were a nonresident individual.

(2) Addition or subtraction of modifications. -- There shall be added to or subtracted, as the case may be, the modifications described in section 44-30-12(b) and (c) (excluding subdivisions (b)(4), (c)(3) and (c)(4) of that section) to the extent relating to items of income and deduction, derived from or connected with Rhode Island sources, which enter into the definition of "federal distributable net income", including the items from another estate or trust of which the first estate or trust is a beneficiary. No modification shall be made under this subsection which has the effect of duplicating an item already reflected in the definition of "federal distributable net income".

(3) Allocation among estate or trust and beneficiaries. - (i) The amounts determined under subdivisions (1) and (2) shall be allocated among the estate or trust and its beneficiaries, including, solely for the purpose of this allocation, resident beneficiaries, in proportion to their respective shares of federal distributable net income.

(ii) The amounts so allocated shall have the same character as for federal income tax purposes. Where an item entering into the computation of the amounts is not characterized for federal income tax purposes, it shall have the same character as if realized directly from the source from which realized by the estate or trust, or incurred in the same manner as incurred by the estate or trust.

(b) Alternate methods of determining shares. - (1) If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary, including, solely for the purpose of this allocation, resident beneficiaries, in the net amount determined under subdivisions (1) and (2) of subsection (a) shall be in proportion to his share of the estate of trust income for that year, under local law or the governing instrument, which is required to be distributed currently and any other amounts of the income distributed in that year. Any balance of the net amount shall be allocated to the estate or trust.

(2) The tax administrator may by regulation authorize the use of such other methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from Rhode Island sources, and the modification related thereto, as may be appropriate and equitable, on such terms and conditions as the tax administrator may require.

SECTION 2. This article shall take effect upon passage and shall apply to the taxable year beginning January 1, 2002.

ARTICLE 10 SUB A AS AMENDED

RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2002

SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in this act, the following general revenue amounts are hereby appropriated out of any money in the treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2002. The amounts identified for federal funds and restricted receipts shall be made available pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

	FY 2002	FY 2002	FY 2002
	Enacted	Variance	Recommend
Administration
Central Management
General Revenues	1,835,080	68,554	1,903,634
Federal Funds	204,894	1,669	206,563
Total - Central Management	2,039,974	70,223	2,110,197
Accounts and Control
General Revenue
General Revenues	4,746,970	1,063,819	5,810,789
RI e-Government Fund-RI-SAIL	2,000,000	65,098	2,065,098
Total - Accounts and Control	6,746,970	1,128,917	7,875,887
Budgeting General Revenues	2,106,537	(5,245)	2,101,292
Municipal Affairs
General Revenues	1,236,447	(100,565)	1,135,882
Federal Funds	7,500,108	1,117,724	8,617,832
Total - Municipal Affairs	8,736,555	1,017,159	9,753,714
Purchasing General Revenues	2,101,214	64,036	2,165,250
Auditing General Revenues	1,509,967	31,717	1,541,684
Human Resources
General Revenues	6,480,675	310,441	6,791,116
Federal Funds	0	14,000	14,000
Total - Human Resources	6,480,675	324,441	6,805,116
Personnel Appeal Board General Revenues	131,263	(18,796)	112,467
Taxation
Other Funds
Motor Fuel Tax Evasion Program	90,000	937	90,937
Temporary Disability Insurance	642,440	(58,893)	583,547
General Revenues	14,814,080	1,133,449	15,947,529
Federal Funds	1,306,280	(117,594)	1,188,686
Restricted Receipts	334,963	155,221	490,184
Total - Taxation	17,187,763	1,113,120	18,300,883
Registry of Motor Vehicles
Other Funds
Motor Vehicle Emission Inspections - CMAQ	11,204	(11,204)	0
Registration Denial Program	0	110,000	110,000
General Revenues
General Revenue	13,793,639	358,755	14,152,394
RI e-Gov Fund - Digital License System	150,000	150,000	300,000
RI e-Gov Fund - OLIS Support - RMV System	350,000	(150,000)	200,000
Federal Funds	0	394,137	394,137
Restricted Receipts	15,848	0	15,848
Total - Registry of Motor Vehicles	14,320,691	851,688	15,172,379
Child Support Enforcement
General Revenues	3,193,389	(20,139)	3,173,250
Federal Funds	7,267,802	(174,767)	7,093,035
Total - Child Support Enforcement	10,461,191	(194,906)	10,266,285
Central Services
Other Funds-Lighting Conservation	661,278	0	661,278
General Revenue	11,911,939	(204,285)	11,707,654
Energy Office Grants	381,016	903,022	1,284,038
Federal Funds	18,543,661	(293,499)	18,250,162
Restricted Receipts	1,049,861	267,508	1,317,369
Total - Central Services	32,547,755	672,746	33,220,501
Office of Library and Information Services
Other Funds
Federal Highway - PL Systems Planning	851,184	70,059	921,243
Federal Highway - T2 Systems Planning	117,550	10,000	127,550
Air Quality Modeling	20,283	0	20,283
General Revenues	2,606,304	(40,348)	2,565,956
Federal Funds	1,357,458	(138,416)	1,219,042
Restricted Receipts Total	10,830	(1,158)	9,672
Total - Office of Library and Information Services	4,963,609	(99,863)	4,863,746
General
Other Funds
RICAP - State House Renovations (Phase I)	0	100,000	100,000
RICAP - A-Building Stabilization - Pastore Center	100,000	(100,000)	0
RICAP - State House Skylights and Roof	1,733,000	1,513,209	3,246,209
RICAP - State House Terrace/South Stairs	2,903,000	(739,675)	2,163,325
RICAP - Chapin Health Laboratory	300,000	(184,373)	115,627
RICAP - Cranston Street Armory	1,000,000	(204,813)	795,187
RICAP - Cannon Building	150,000	137,859	287,859
RICAP - Second State House Elevator	0	12,000	12,000
RICAP - Ladd Center - Infrastructure	0	974,046	974,046
RICAP - Old State House	35,000	15,000	50,000
RICAP - State Office Building	200,000	(89,603)	110,397
RICAP - Veterans' Auditorium Office Building	0	73,204	73,204
RICAP - State Information Operations Center	200,000	(200,000)	0
RICAP - Old Colony House	200,000	0	200,000
RICAP - Court Buildings - HVAC	362,000	(362,000)	0
RICAP - Asset Inventory	50,000	250,000	300,000
RICAP - Washington County Government Center	395,000	(318,000)	77,000
RICAP - State House Renovations - Phase II	592,664	(516,352)	76,312
RICAP - Board of Elections Building	50,000	(25,000)	25,000
RICAP - Environmental Compliance	900,000	(150,000)	750,000
RICAP - Fox Point Hurricane Barrier	50,000	0	50,000
General Revenue
General Revenues	11,419,295	(1,160,375)	10,258,920
Contingency Fund	0	1,771,045	1,771,045
Race and Police Community Relations Commission	300,000	0	300,000
Economic Development Corporation	7,826,807	0	7,826,807
Centers of Excellence	3,000,000	0	3,000,000
Housing Resources Commission	8,652,098	(5,001,237)	3,650,861
Motor Vehicle Excise Tax Payment	97,202,898	2,361,665	99,564,563
Property Valuation	1,073,300	46,700	1,120,000
General Revenue Sharing Program	43,621,430	0	43,621,430
Payment in Lieu of Tax Exempt Properties	18,151,500	0	18,151,500
Distressed Communities Relief Program	7,400,000	100,000	7,500,000
Resource Sharing and State Library Aid	6,318,527	0	6,318,527
Library Construction Aid	2,280,669	(234,245)	2,046,424
Federal Funds	700,000	0	700,000
Restricted Receipts	566,000	700,000	1,266,000
Total - General	217,733,188	(1,830,945)	215,902,243
Debt Service Payments
Other Funds
MHRH Community Services Program	0	6,776,960	6,776,960
MHRH Community Mental Health Program	0	2,749,415	2,749,415
DEM - Narragansett Bay Commission	5,066,552	(21,310)	5,045,242
DEM - Clean Water Finance Agency	3,834,496	(2,075,667)	1,758,829
DEM Debt Service - Recreation	0	5,339,102	5,339,102
DEM - Wastewater Treatment	6,098,952	3,731,500	9,830,452
RIPTA Debt Service	771,729	10,809	782,538
Transportation Debt Service	42,085,172	(10,010)	42,075,162
RIRBA - DLT - Temporary Disability Insurance	60,222	0	60,222
COPS - DLT Building - Other	360,202	23,641	383,843
COPS - Center General - Furniture - TDI	2,080	0	2,080
COPS - Pastore Center Telecommunications - TDI	19,799	0	19,799
Debt - URI Education and General	963,451	124,744	1,088,195
Debt - URI Housing Loan Funds	1,845,923	43,340	1,889,263
Debt - URI Dining Services	265,179	1,736	266,915
Debt - URI Health Services	125,409	821	126,230
Debt - W. Alton Jones Services	111,050	727	111,777
Debt - URI Memorial Union	97,648	638	98,286
Debt - URI Sponsored Research (Indirect Cost)	101,347	0	101,347
Debt - RIC Education and General	296,614	(750)	295,864
Debt - RIC Housing	568,390	(7,099)	561,291
Debt - RIC Student Center and Dining	177,951	0	177,951
Debt - RIC Student Union	254,765	(57,394)	197,371
Debt - CCRI Bookstore	177,092	0	177,092
General Revenues Debt Service Payments	115,958,757	(22,628,427)	93,330,330
Federal Funds	1,632,114	(71,489)	1,560,625
Restricted Receipts	5,961,760	(69,435)	5,892,325
Total - Debt Service Payments	186,836,654	(6,138,148)	180,698,506
Division of Sheriffs General Revenues	12,246,353	(152,268)	12,094,085
Grand Total - Administration	526,150,359	(2,566,124)	523,584,235
Business Regulation
Central Management General Revenues	1,433,701	71,575	1,505,276
Banking Regulation General Revenues	1,469,676	(114,541)	1,355,135
Securities Regulation General Revenues	664,764	(19,913)	644,851
Commercial Licensing and Regulation
General Revenues	916,007	99,431	1,015,438
Restricted Receipts	100,000	0	100,000
Total - Commercial Licensing and Regulation	1,016,007	99,431	1,115,438
Racing and Athletics General Revenue	684,934	(17,373)	667,561
Insurance Regulation
General Revenues	3,503,038	(74,057)	3,428,981
Gramm, Leach, Bliley Act - General Revenues	0	489,000	489,000

Notwithstanding the provisions of section 35-3-15 of the general laws in Chapter 35-3 entitled "State

Budget", all unexpended, encumbered and unencumbered general revenue balances of the appropriation

for the Gramm, Leach, Bliley Act in the Department of Business Regulation at the end of the fiscal

year 2002 shall be reappropriated in the ensuing fiscal year and made immediately available for the

same purposes as the former application.

Restricted Receipts	357,465	122,736	480,201
Total - Insurance Regulation	3,860,503	537,679	4,398,182
Board of Accountancy General Revenues	189,452	(22,361)	167,091
Grand Total - Business Regulation	9,319,037	534,497	9,853,534
Labor and Training
Central Management
General Revenues	279,999	105,899	385,898
Restricted Receipts Director of Workers' Compensation	471,284	304,188	775,472
Total - Central Management	751,283	410,087	1,161,370
Workforce Development Services
Federal Funds	20,405,853	4,038,397	24,444,250
Restricted Receipts
ES - Reemployment Program	1,127,297	(108,959)	1,018,338
Human Resource Investment Council	9,113,176	69,665	9,182,841
Job Development Fund DET Admin	267,115	(227,172)	39,943
HRIC - Supportive Work/Rapid Job Entry	0	1,711,130	1,711,130
Reed Act - Rapid Job Entry	0	288,870	288,870

Provided that these funds may be used solely for the Rapid Job Entry program to engage welfare recipients in employment preparation and placement through the Employment Assessment Workshop and Job Club/Job Search Workshop Activities.

Total - Workforce Development Services	30,913,441	5,771,931	36,685,372
Workforce Regulation and Safety General Revenues	3,687,515	113,357	3,800,872
Income Support
Other Funds
Temporary Disability Insurance Fund	142,160,533	9,974,168	152,134,701
Employment Security Fund	151,500,000	62,000,000	213,500,000
General Revenues	2,654,310	47,084	2,701,394
Federal Funds	18,227,232	307,297	18,534,529
Restricted Receipts	1,989,520	(1,284,896)	704,624
Total - Income Support	316,531,595	71,043,653	387,575,248
Injured Workers Services Restricted Receipts	9,306,763	(345,203)	8,961,560
Labor Relations Board General Revenues	339,269	17,806	357,075
Grand Total - Labor and Training	361,529,866	77,011,631	438,541,497
Legislature
General Revenues	24,886,849	3,502,536	28,389,385
Restricted Receipts	757,329	1,503	758,832
Grand Total - Legislature	25,644,178	3,504,039	29,148,217
Lieutenant Governor General Revenues	764,928	(4,779)	760,149
State
Administration General Revenues	1,165,919	86,416	1,252,335
Corporations
General Revenue
General Revenue	1,426,980	7,265	1,434,245
RI e-Gov Fund - UCC Automated System	250,000	0	250,000
Total - Corporations	1,676,980	7,265	1,684,245
State Archives
General Revenues	281,015	(1,495)	279,520
Federal Funds	18,631	5,410	24,041
Restricted Receipts	193,337	(3,642)	189,695
Total - State Archives	492,983	273	493,256
Elections General Revenues	467,857	(1,532)	466,325
State Library General Revenues	703,827	1,613	705,440
Office of Public Information General Revenues	480,928	161	481,089
Grand Total - State	4,988,494	94,196	5,082,690
General Treasurer
Treasury
Other Funds
Temporary Disability Insurance Fund	196,252	36,244	232,496
General Revenues	2,584,159	59,052	2,643,211
Federal Funds	265,140	(50,957)	214,183
Restricted Receipts	16,000	(5,102)	10,898
Total - Treasury	3,061,551	39,237	3,100,788
State Retirement System
Other Funds
Admin Expenses - State Retirement System	11,148,136	72,187	11,220,323
Retirement - Treasury Investment Operations	542,026	25,172	567,198
Total - State Retirement System	11,690,162	97,359	11,787,521
Unclaimed Property Restricted Receipts	9,382,527	(302,598)	9,079,929
RI Refunding Bond Authority General Revenues	67,827	14,341	82,168
Crime Victim Compensation Program
General Revenues	2,420,467	(21,744)	2,398,723
Federal Funds	1,497,137	2,909	1,500,046
Restricted Receipts	1,727,619	12,146	1,739,765
Total - Crime Victim Compensation Program	5,645,223	(6,689)	5,638,534
Grand Total - General Treasurer	29,847,290	(158,350)	29,688,940
Boards for Design Professionals General Revenues	350,275	12,515	362,790
Board of Elections
General Revenue
General Revenues	2,120,057	30,730	2,150,787
RI e-Gov Fund - Electronic Campaign Finance System	330,000	0	330,000
Grand Total - Board of Elections	2,450,057	30,730	2,480,787
Rhode Island Ethics Commissions General Revenues	847,427	57,507	904,934
Office of Governor General Revenues	5,681,777	(70,612)	5,611,165
Public Utilities Commission
General Revenues	731,240	(20,447)	710,793
Federal Funds	61,538	0	61,538
Restricted Receipts	4,663,397	20,115	4,683,512
Total - Public Utilities Commission	5,456,175	(332)	5,455,843
Rhode Island Commission on Women General Revenues	139,140	530	139,670
Children, Youth, and Families
Central Management
General Revenues	7,828,990	(15,071)	7,813,919
Federal Funds	5,117,207	(310,176)	4,807,031
Total - Central Management	12,946,197	(325,247)	12,620,950
Children's Behavioral Health Services
Other Funds
RICAP - Groden Center - Mt. Hope	79,660	(79,660)	0
RICAP - Spurwink/RI	199,000	(16,077)	182,923
General Revenues	21,620,441	509,818	22,130,259
Federal Funds	19,732,041	812,681	20,544,722
Total - Children's Behavioral Health Services	41,631,142	1,226,762	42,857,904
Juvenile Correctional Services
Other Funds RICAP - RI Training School Bathroom Renovations	100,000	0	100,000
General Revenues	24,423,744	236,663	24,660,407
Federal Funds	2,855,694	795,402	3,651,096
Restricted Receipts	8,000	500,000	508,000
Total - Juvenile Correctional Services	27,387,438	1,532,065	28,919,503
Child Welfare
General Revenues
General Revenue	78,956,984	5,727,570	84,684,554
Children's Trust Fund	55,500	0	55,500
Federal Funds	55,627,562	4,557,434	60,184,996
Restricted Receipts	1,387,191	(365,188)	1,022,003
Total - Child Welfare	136,027,237	9,919,816	145,947,053
Higher Education Incentive Grant - General Revenue
Total - Higher Education Incentive Grants	150,000	53,727	203,727

Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget," all unexpended, encumbered and unencumbered general revenues balances of the appropriation for the higher education opportunity incentive grants in the Department of Children, Youth and Families at the end of fiscal year 2002 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

Grand Total - Children, Youth, and Families	218,142,014	12,407,123	230,549,137
Elderly Affairs
Other Funds Intermodal Surface Transportation Fund	4,700,000	(205,463)	4,494,537
General Revenue
General Revenues	13,477,616	17,290	13,494,906
RIPAE	10,280,993	1,632,147	11,913,140
Safety and Care of the Elderly	1,000	(500)	500
Federal Funds	8,659,750	867,604	9,527,354
Grand Total - Elderly Affairs	37,119,359	2,311,078	39,430,437
Health
Central Management
Other Funds Trauma Registry	228,109	(58,512)	169,597
General Revenue
General Revenue	2,609,284	(37,137)	2,572,147
RI e-Gov Fund - Automated Vital Records System	300,000	0	300,000
Federal Funds	3,061,631	(765,222)	2,296,409
Restricted Receipts	1,729,242	24,062	1,753,304
Total - Central Management	7,928,266	(836,809)	7,091,457
State Medical Examiner General Revenues	1,678,857	(21,946)	1,656,911
Family Health
General Revenues
General Revenue	8,465,477	531,033	8,996,510
Poison Control Center	250,000	0	250,000
Federal Funds	27,385,678	2,363,067	29,748,745
Restricted Receipts	3,459,596	408,430	3,868,026
Total - Family Health	39,560,751	3,302,530	42,863,281
Health Services Regulation
General Revenues
General Revenue	4,375,908	40,575	4,416,483
Hospital Care Consultant Report	292,312	(943)	291,369
Federal Funds	1,963,101	189,833	2,152,934
Restricted Receipts	464,833	29,247	494,080
Total - Health Services Regulation	7,096,154	258,712	7,354,866
Environmental Health
General Revenues	4,157,352	(118,917)	4,038,435
Federal Funds	2,216,902	444,482	2,661,384
Restricted Receipts	670,447	397,979	1,068,426
Total - Environmental Health	7,044,701	723,544	7,768,245
Health Laboratories
General Revenues	5,638,424	352,839	5,991,263
Federal Funds	794,635	(91,018)	703,617
Total - Health Laboratories	6,433,059	261,821	6,694,880
Disease Prevention and Control
Other Funds
Child Safety Program	0	20,000	20,000
Walkable Communities Initiative	0	80,000	80,000
General Revenue
General Revenues	5,220,109	80,362	5,300,471
Smoking Cessation	1,000,000	(700,000)	300,000
Federal Funds	11,656,697	164,825	11,821,522
Restricted Receipts	79,783	796,217	876,000
Total - Disease Prevention and Control	17,956,589	441,404	18,397,993
Grand Total - Health	87,698,377	4,129,256	91,827,633
Human Services
Central Management
General Revenues	7,089,388	(175,255)	6,914,133
Federal Funds	3,673,194	210,061	3,883,255
Restricted Receipts	1,786,967	188,033	1,975,000
Total - Central Management	12,549,549	222,839	12,772,388
Individual and Family Support
Other Funds
RICAP - Veterans Home Roof	60,000	(60,000)	0
RICAP - Forand Bldg Exterior Doors & Windows	135,000	(135,000)	0
RICAP - Forand Bldg Soffitts Replacement	85,000	(85,000)	0
RICAP - Forand Bldg Exterior Window Panels	349,375	(344,802)	4,573
General Revenues	20,699,761	(391,026)	20,308,735
Federal Funds	50,994,985	394,205	51,389,190
Restricted Receipts	73,680	0	73,680
Total - Individual and Family Support	72,397,801	(621,623)	71,776,178
Veterans' Affairs
General Revenues	13,405,994	742,127	14,148,121
Federal Funds	5,604,801	1,066,701	6,671,502
Restricted Receipts	1,085,986	1,000,520	2,086,506
Total - Veterans' Affairs	20,096,781	2,809,348	22,906,129
Health Care Quality, Financing and Purchasing
General Revenues	22,250,099	208,715	22,458,814
Federal Funds	30,378,277	1,522,688	31,900,965
Restricted Receipts	330,000	165,238	495,238
Total - Health Care Quality, Financing & Purchasing	52,958,376	1,896,641	54,855,017
Medical Benefits
General Revenues
Hospitals	87,084,274	8,799,312	95,883,586
Nursing Facilities	121,332,000	1,868,000	123,200,000
Managed Care	114,428,738	3,771,262	118,200,000
Other	86,731,949	(258,524)	86,473,425
Special Education	9,493,730	4,449,259	13,942,989
Federal Funds
Hospitals	95,166,543	8,949,871	104,116,414
Nursing Facilities	135,743,050	2,056,950	137,800,000
Managed Care	132,790,263	4,509,737	137,300,000
Other	98,136,077	(1,409,502)	96,726,575
Special Education	11,006,270	4,550,741	15,557,011
Restricted Receipts Total	15,000	0	15,000
Total - Medical Benefits	891,927,894	37,287,106	929,215,000
Supplemental Security Income Program General Revenues	28,267,437	(92,114)	28,175,323
Family Independence Program
General Revenues
Child Care	53,609,428	(953,835)	52,655,593
TANF/Family Independence Program	17,999,851	(1,832,489)	16,167,362
Federal Funds	82,403,049	5,503,539	87,906,588
Total - Family Independence Program	154,012,328	2,717,215	156,729,543
State Funded Programs
General Revenues
General Public Assistance	2,074,263	487,513	2,561,776
Food Stamp Replacement for Legal Immigrants	1,619,226	176,052	1,795,278
Citizenship Participation Program	100,000	0	100,000
Weatherization One-Time Payment	1,579,000	61,000	1,640,000
Federal Funds	59,026,224	5,330,264	64,356,488
Total - State Funded Programs	64,398,713	6,054,829	70,453,542
Grand Total - Human Services	1,296,608,879	50,274,241	1,346,883,120
Mental Health, Retardation, and Hospitals
Central Management General Revenues	1,703,146	269,539	1,972,685
Hospital and Community System Support
Other Funds
RICAP - Utilities Upgrade	400,000	109,700	509,700
RICAP - Central Power Plant Rehabilitation	0	360,000	360,000
RICAP - Medical Center Rehabilitation	664,932	(414,931)	250,001
RICAP - Utility Systems - Water Tanks and Pipes	350,000	(238,675)	111,325
RICAP - Environmental Mandates	550,000	(550,000)	0
General Revenues	19,945,762	2,694,578	22,640,340
Total - Hospital and Community System Support	21,910,694	1,960,672	23,871,366
Services for the Developmentally Disabled
General Revenues
General Revenue	98,548,866	(1,696,912)	96,851,954
Pirovano Trust	0	260,990	260,990
Federal Funds Total	111,725,085	(1,407,756)	110,317,329
Total - Services for the Developmentally Disabled	210,273,951	(2,843,678)	207,430,273
Integrated Mental Health Services
General Revenues	30,347,627	361,127	30,708,754
Federal Funds	28,172,341	401,731	28,574,072
Total - Integrated Mental Health Services	58,519,968	762,858	59,282,826
Hospital and Community Rehabilitation Services
Other Funds RICAP - Zambarano Buildings and Utilities	404,942	(304,942)	100,000
General Revenues	50,523,558	1,158,695	51,682,253
Federal Funds	52,382,371	951,611	53,333,982
Total - Hospital and Community Rehab. Services	103,310,871	1,805,364	105,116,235
Substance Abuse
Other Funds RICAP - Asset Protection	100,000	13,000	113,000
General Revenue
General Revenue	14,829,699	464,231	15,293,930
Providence Community Action	213,000	(213,000)	0
Federal Funds	9,942,976	572,340	10,515,316
Restricted Receipts	55,000	10,000	65,000
Total - Substance Abuse	25,140,675	846,571	25,987,246
Grand Total - Mental Health, Retardation, and Hospitals	420,859,305	2,801,326	423,660,631
Office of the Child Advocate
General Revenues	523,165	(700)	522,465
Federal Funds	342,703	16,487	359,190
Grand Total - Child Advocate	865,868	15,787	881,655
Commission on the Deaf and Hard of Hearing General Revenues	257,890	(61,440)	196,450
RI Developmental Disabilities Council Federal Funds	408,984	11,493	420,477
Governor's Commission on Disabilities
General Revenues	305,032	(1,188)	303,844
Federal Funds	28,181	(2,909)	25,272
Restricted Receipts	1,400	36,232	37,632
Grand Total - Governor's Commission on Disabilities	334,613	32,135	366,748
Commission for Human Rights
General Revenues	782,565	(47,603)	734,962
Federal Funds	426,177	(10,000)	416,177
Grand Total - Commission for Human Rights	1,208,742	(57,603)	1,151,139
Mental Health Advocate General Revenues	294,878	(11,847)	283,031
Elementary and Secondary Education
State Aid
General Revenue State Support Local School Operations	575,846,092	535,000	576,381,092
Federal Funds Total	0	2,536,209	2,536,209
Total - State Aid	575,846,092	3,071,209	578,917,301
School Housing Aid General Revenues	30,775,774	2,446,419	33,222,193
Teacher's Retirement General Revenues	37,243,558	(6,019,652)	31,223,906
RI School for the Deaf
Other Funds
RICAP - School for the Deaf - Physical Education Facility	268,250	(235,728)	32,522
General Revenues	5,681,452	(299,052)	5,382,400
Federal Funds	946,979	298,873	1,245,852
Restricted Receipts	0	1,418	1,418
Total - RI School for the Deaf	6,896,681	(234,489)	6,662,192
Central Falls School District General Revenues	33,265,963	0	33,265,963
Davies Career and Technical School
Other Funds RICAP - Davies Roof Repair	450,000	(450,000)	0
General Revenues	10,611,621	(283,544)	10,328,077
Federal Funds	797,359	232,512	1,029,871
Restricted Receipts	25,000	169,836	194,836
Total - Davies Career and Technical School	11,883,980	(331,196)	11,552,784
Metropolitan Career and Technical School General Revenues	2,155,000	0	2,155,000
Program Operations
Other Funds
RICAP - East Providence Vocational HVAC	140,980	(131,380)	9,600
RICAP - Hanley - HVAC	125,000	91,617	216,617
RICAP - Woonsocket Vocational HVAC	0	10,160	10,160
RICAP - State-Owned Schools - Fire Alarm Systems	100,000	(22,454)	77,546
RICAP - Hazardous Material Storage/Dust	218,453	(12,440)	206,013
General Revenues	15,388,274	(225,611)	15,162,663
Federal Funds	111,816,758	17,125,741	128,942,499
Restricted Receipts	664,194	381,703	1,045,897
Total - Program Operations	128,453,659	17,217,336	145,670,995
Grand Total - Elementary and Secondary Education	826,520,707	16,149,627	842,670,334
Board of Governors
General Revenues	174,893,876	(420,278)	174,473,598
Federal Funds	2,040,118	280,646	2,320,764
Other Funds
University and College Funds	336,272,035	5,376,635	341,648,670
RICAP - Asset Protection/Roofs	4,336,922	407,551	4,744,473
RICAP - Chafee Hall PCB Abatement	2,500,000	1,300,000	3,800,000
RICAP - Athletic Complex	8,500,000	6,283,910	14,783,910
RICAP - Knight Megastructure	380,000	(33,149)	346,851
RICAP - Ballentine Hall	853,078	500,000	1,353,078
RICAP - Alger Hall	1,164,558	(1,144,558)	20,000
RICAP - DCYF Facilities	1,119,853	70,000	1,189,853
RICAP - Green Hall	1,200,000	0	1,200,000
RICAP - Plains Road Property	10,000	10,000	20,000
Grand Total - Board of Governors	533,270,440	12,630,757	545,901,197
RI State Council on the Arts
General Revenue
Operating Support	358,671	5,603	364,274
Grants	1,925,000	(6,874)	1,918,126
Federal Funds	553,795	42,846	596,641
Restricted Receipts	250,000	5,340	255,340
Grand Total - RI State Council on the Arts	3,087,466	46,915	3,134,381
RI Atomic Energy Commission
Other Funds
URI Sponsored Research	130,064	(327)	129,737
RICAP - Paint Interior Reactor Building Walls	50,000	(50,000)	0
RICAP - Roof Replacement - North Bunker	21,400	0	21,400
General Revenues	649,456	(4,461)	644,995
Federal Funds	753,000	(50,000)	703,000
Grand Total - RI Atomic Energy Commission	1,603,920	(104,788)	1,499,132
RI Higher Education Assistance Authority
General Revenue
Needs Based Grants and Work Opportunities	6,397,372	(500,000)	5,897,372

Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget," all unexpended, encumbered and unencumbered balances of revenue appropriations for "Need Based Grants and Work Opportunities - RIGL 16-56-6 and 16-56-8" contained in section 1 of this article within the Higher Education Assistance Authority, whether regular or special appropriations, at the end of fiscal years 2001 and 2002 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

Authority Operations and Other Grants	1,039,005	(2,295)	1,036,710
Federal Fund Total	6,848,965	115,385	6,964,350
Other Funds Tuition Savings Program - Administration	229,406	1,167,303	1,396,709
Grand Total - Higher Education Assistance Authority	14,514,748	780,393	15,295,141
RI Historical Preservation and Heritage Commission
General Revenues	751,369	32,690	784,059
Federal Funds	540,500	(5,966)	534,534
Restricted Receipts	331,690	(4,186)	327,504
Grand Total - Historical Preservation Comm.	1,623,559	22,538	1,646,097
RI Public Telecommunications Authority
Other Funds
Corporation for Public Broadcasting	571,755	(4,632)	567,123
RICAP - Fed. Mandated Digital Television Conversion	936,568	(936,568)	0
General Revenues	1,358,004	(90,566)	1,267,438
Federal Funds	350,000	0	350,000
Grand Total - R.I. Public Telecommunications Authority	3,216,327	(1,031,766)	2,184,561
Attorney General
Criminal
General Revenues	9,255,236	247,798	9,503,034
Federal Funds	1,191,290	75,387	1,266,677
Restricted Receipts	178,692	(15,954)	162,738
Total - Criminal	10,625,218	307,231	10,932,449
Civil
General Revenues	3,484,235	(126,561)	3,357,674
Federal Funds	74,616	(6,614)	68,002
Restricted Receipts	408,802	8,561	417,363
Total - Civil	3,967,653	(124,614)	3,843,039
Bureau of Criminal Identification
General Revenues	605,696	17,598	623,294
Federal Funds	0	224,500	224,500
Total - Bureau of Criminal Identification	605,696	242,098	847,794
General General Revenues	1,470,433	52,416	1,522,849
Grand Total - Attorney General	16,669,000	477,131	17,146,131
Corrections
Central Management
General Revenues	9,509,765	(274,033)	9,235,732
Federal Funds	0	187,789	187,789
Total - Central Management	9,509,765	(86,244)	9,423,521
Parole Board
General Revenues	852,501	37,241	889,742
Federal Funds	8,000	(8,000)	0
Total - Parole Board	860,501	29,241	889,742
Institutional Corrections
Other Funds
RICAP - Fire Code Safety Improvements	1,000,000	374,017	1,374,017
RICAP - Security Camera Installation	417,000	356,000	773,000
RICAP - Window Replacement - Women's	350,000	316,232	666,232
RICAP - General Renovations - Maximum	450,000	(122,927)	327,073
RICAP - Roof/Masonry Renovations - Women's	105,000	25,000	130,000
RICAP - High Security Fire Alarm HVAC	172,000	(92,993)	79,007
RICAP - Aquidneck & Prudence Cellblock Roofs	220,000	520,880	740,880
RICAP - HVAC Renovations - Maximum	0	19,436	19,436
RICAP - Dix Expansion - Phase II	0	35,000	35,000
RICAP - Dix Expansion - State Match	0	43,178	43,178
RICAP - Reintegration Center State Match	0	171,271	171,271
RICAP - Perimeter/Security Upgrades	1,765,000	(1,077,907)	687,093
General Revenues	110,826,798	(1,305,943)	109,520,855
Federal Funds	6,337,462	1,011,800	7,349,262
Restricted Receipts	3,877,475	1,489,812	5,367,287
Total - Institutional Corrections	125,520,735	1,762,856	127,283,591
Community Corrections
General Revenues	10,298,473	(33,006)	10,265,467
Federal Funds	338,952	(37,413)	301,539
Total - Community Corrections	10,637,425	(70,419)	10,567,006
Grand Total - Corrections	146,528,426	1,635,434	148,163,860
Judiciary
Supreme Court
Other Funds
RICAP - Garrahy Judicial Complex Renovation	1,976,106	1,184,089	3,160,195
RICAP - Garrahy Complex Roof Repair	0	322,630	322,630
RICAP - Licht Exterior/Interior Refurbishment	0	129,739	129,739
RICAP - Fogarty Judicial Annex	95,000	(60,000)	35,000
General Revenues
General Revenues	17,665,503	1,291,432	18,956,935
Defense of Indigents	1,550,000	0	1,550,000
Federal Funds	150,000	29,680	179,680
Restricted Receipts	762,689	128,170	890,859
Total - Supreme Court	22,199,298	3,025,740	25,225,038
Superior Court
General Revenues	14,673,241	406,826	15,080,067
Federal Funds	0	119,850	119,850
Total - Superior Court	14,673,241	526,676	15,199,917
Family Court
General Revenues	10,817,657	65,772	10,883,429
Federal Funds	1,678,810	720,738	2,399,548
Restricted Receipts	233,931	14,036	247,967
Total - Family Court	12,730,398	800,546	13,530,944
District Court
General Revenues	6,865,889	(70,220)	6,795,669
Federal Funds	250,000	(77,599)	172,401
Restricted Receipts	70,288	68,624	138,912
Total - District Court	7,186,177	(79,195)	7,106,982
Traffic Tribunal General Revenues	5,494,788	(18,718)	5,476,070
Workers' Compensation Court Restricted Receipts Total	4,792,852	354,940	5,147,792
Justice Link Program General Revenues	1,582,340	895,609	2,477,949

Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget," all unexpended, encumbered and unencumbered general revenue and federal fund appropriations for the Justice Link program in the Judicial Department at the end of fiscal year 2002 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

Grand Total - Judiciary	68,659,094	5,505,598	74,164,692
Military Staff
National Guard
Other Funds Rails to Trails	291,636	(291,636)	0
RICAP - Bristol Armory Rehabilitation	200,000	(9,854)	190,146
RICAP - Benefit St. Arsenal Rehabilitation	71,000	(49,000)	22,000
RICAP - Schofield Armory Rehabilitation	110,000	(90,000)	20,000
RICAP - US Property & Finance Office - HVAC	50,000	(45,000)	5,000
RICAP - Warren Armory	100,000	54,000	154,000
RICAP - Vehicle Exhaust Vent System	50,000	0	50,000
General Revenue
General Revenues	1,734,212	320,035	2,054,247
RI e-Gov Fund - Distributed Technology Training	100,000	(50,000)	50,000
Federal Funds	6,298,630	755,156	7,053,786
Total - National Guard	9,005,478	593,701	9,599,179
Emergency Management
General Revenues	398,887	76,197	475,084
Federal Funds	2,944,891	(49,212)	2,895,679
Restricted Receipts	111,432	(728)	110,704
Total - Emergency Management	3,455,210	26,257	3,481,467
Grand Total - Military Staff	12,460,688	619,958	13,080,646
E-911 Emergency Telephone System
General Revenue
General Revenues	3,135,519	182,955	3,318,474
RI e-Gov Fund - GIS Database Development	500,000	0	500,000
Grand Total - E-911 Emergency Telephone System	3,635,519	182,955	3,818,474
Fire Safety Code Board of Appeal and Review General Revenues	210,116	(3,103)	207,013
State Fire Marshal

General Revenues	1,309,125	20,490	1,329,615
Federal Funds	55,140	205,849	260,989
Grand Total - State Fire Marshal	1,364,265	226,339	1,590,604
Commission on Judicial Tenure and Discipline General Revenues	99,523	9,691	109,214
Rhode Island Justice Commission
General Revenues	177,710	(458)	177,252
Federal Funds	4,790,102	474,150	5,264,252
Restricted Receipts	0	90,000	90,000
Grand Total - Rhode Island Justice Commission	4,967,812	563,692	5,531,504
Municipal Police Training Academy
General Revenues	322,148	48,683	370,831
Federal Funds	50,000	16,415	66,415
Grand Total - Municipal Police Training Academy	372,148	65,098	437,246
State Police
Other Funds
RICAP - Barracks and Training Headquarters	100,000	(100,000)	0
RICAP - Headquarters Repairs/Renovations	325,000	109,768	434,768
RICAP - Parking Area Improvements	70,910	(70,910)	0
Traffic Enforcement - Municipal Training	120,739	105,419	226,158
Lottery Commission Assistance	105,057	805	105,862
Road Construction Reimbursement	2,320,428	(30,000)	2,290,428
General Revenues	37,110,992	847,503	37,958,495
Federal Funds	700,059	2,401,837	3,101,896
Restricted Receipts	217,797	64,195	281,992
Grand Total - State Police	41,070,982	3,328,617	44,399,599
Office of Public Defender
General Revenues	5,585,208	(17,499)	5,567,709
Federal Funds	313,406	189,263	502,669
Grand Total - Office of Public Defender	5,898,614	171,764	6,070,378
Environmental Management
Policy and Administration
Other Funds
DOT Recreational Projects	25,637	0	25,637
Blackstone Bikepath Design	1,297,791	0	1,297,791
RICAP - Dam Repair	700,000	138,665	838,665
General Revenues	7,540,431	690,889	8,231,320
Federal Funds	1,997,745	474,560	2,472,305
Restricted Receipts	6,707,640	(397,258)	6,310,382
Total - Policy and Administration	18,269,244	906,856	19,176,100
Natural Resources
Other Funds
RICAP - Westerly Boat Ramp	87,000	0	87,000
RICAP - Fort Adams Rehabilitation	350,000	0	350,000
RICAP - Recreational Facilities Improvement	515,820	(440,820)	75,000
RICAP - Fish and Wildlife Office/Laboratory	731,000	98,365	829,365
RICAP - Wickford Marine Facility	50,000	(50,000)	0
RICAP - Galilee Piers	908,854	(580,853)	328,001
RICAP - Newport Piers	1,800,000	(393,310)	1,406,690
RICAP - Boyd's Marsh Habitat Restoration	70,000	0	70,000
General Revenues	14,495,408	(43,623)	14,451,785
Federal Funds	12,828,616	322,700	13,151,316
Restricted Receipts	3,010,835	(31,887)	2,978,948
Total - Natural Resources	34,847,533	(1,119,428)	33,728,105
Environmental Protection
Other Funds Aquafund	55,358	1,363	56,721
General Revenues	9,149,675	(232,879)	8,916,796
Federal Funds	7,306,634	175,701	7,482,335
Restricted Receipts	2,025,591	269,427	2,295,018
Total - Environmental Protection	18,537,258	213,612	18,750,870
Grand Total - Environmental Management	71,654,035	1,040	71,655,075
Coastal Resources Management Council
Other Funds
RICAP - South Coast Restoration Project	145,000	(145,000)	0
RICAP - Habitat Restoration - Allin's Cove	172,000	(172,000)	0
General Revenues	1,437,745	(45,940)	1,391,805

Notwithstanding the provisions of section 35-3-15 of the general laws of chapter 35-3 entitled

"State Budget", all unexpended, encumbered and unencumbered general revenue balances of

the appropriation in general revenues for the Coastal Resources Management Council at the

end of the fiscal year 2002 shall be reappropriated in the ensuing fiscal year and made

immediately available for the computerized database management system.

Federal Funds	1,055,630	544,542	1,600,172
Grand Total - Coastal Resources Management Council	2,810,375	181,602	2,991,977
State Water Resources Board
Other Funds
RICAP - Big River Mgt. Area	80,000	(3,595)	76,405
RICAP - Groundwater Protection/Acquisition	43,733	(34,172)	9,561
RICAP - Water Allocation Plan	400,000	(129,926)	270,074
RICAP - Supplemental Water Supplies Development	300,000	(206,133)	93,867
General Revenues	1,021,631	71,754	1,093,385
Restricted Receipts	0	133,146	133,146
Grand Total - State Water Resources Board	1,845,364	(168,926)	1,676,438
Transportation
Central Management
Other Funds Gasoline Tax	3,103,029	(183,657)	2,919,372
Federal Funds	4,309,942	(6,059)	4,303,883
Total - Central Management	7,412,971	(189,716)	7,223,255
Management and Budget Other Funds Gasoline Tax	1,955,027	(150,665)	1,804,362
Infrastructure Maintenance Other Funds Gasoline Tax	36,155,559	(868,990)	35,286,569
Infrastructure - Engineering
Other Funds Gasoline Tax	41,654,484	(1,472,487)	40,181,997
RICAP - RIPTA Land and Buildings	360,000	0	360,000
Land Sale Revenue	8,000,000	0	8,000,000
State Infrastructure Bank	1,000,000	0	1,000,000
Federal Funds	227,972,848	(7,102,327)	220,870,521
Restricted Receipts	61,285,260	(36,279,260)	25,006,000
Total - Infrastructure - Engineering	340,272,592	(44,854,074)	295,418,518
Grand Total - Transportation	385,796,149	(46,063,445)	339,732,704
Statewide Totals
General Revenue Total	2,650,768,180	9,612,597	2,660,380,777
Federal Funds Total	1,531,710,544	68,789,794	1,600,500,338
Restricted Receipt Funds Total	143,513,384	(29,343,248)	114,170,136
Other Funds Total	858,855,081	96,464,975	955,320,056
Statewide Grand Total	5,184,847,189	145,524,118	5,330,371,307

SECTION 2. Notwithstanding the provisions of Section 35-3-15 of Chapter 35 of the Rhode Island General Laws, all unexpended and unencumbered balances as of June 30, 2002 relating to the Pirovano Trust in the Department of Mental Health, Retardation are hereby reappropriated to fiscal year 2003.

SECTION 3. Section 14 of Article 1 of Chapter 77 of the Public Laws of 2001 authorizes the reappropriation of any unexpended funds from the Rhode Island Capital Plan Fund for the purposes for which they were originally appropriated. The following is a listing of those projects for which reappropriated funds are not required in FY 2002. The amounts listed are hereby withdrawn and the State Controller is authorized to return these funds to the Rhode Island Capital Plan Fund.

	FY 2002	Balance	FY 2002	FY 2002
	Enacted	Forward	Supplemental	Revised
RICAP Project
Administration
House and Senate Chambers Renovation	0	209,763	(209,763)	0
Environmental Management
	Allendale Dam	0	41,680	(41,680)
Elementary and Secondary Education
	Chariho - Roof	0	1,286	(1,286)
Judicial
	Kent County Courthouse	0	500	(500)
	Murray Judicial Complex	0	481	(481)

SECTION 4. Departments and agencies listed below may not exceed the number of full-time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment. Nor do they include positions established under the Board of Governors for Higher Education which are funded by third party funding through the following accounts: University of Rhode Island Sponsored Contract Research; Rhode Island College Sponsored Research-Federal; Community College of Rhode Island Sponsored Research-Federal; and Community College of Rhode Island Sponsored Research-Private.

Provided, however, that the Governor, Speaker of the House of Representatives, and the Majority Leader of the Senate may authorize an adjustment to any limitation. Prior to the authorization, the State Budget Officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the Senate Majority Leader. A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

FTE POSITION AUTHORIZATION

Departments and Agencies	Full-Time Equivalent
Administration	1,350.0
Business Regulation	111.0
Labor and Training	558.0
Legislature	280.0
Lieutenant Governor General	10.0
Secretary of State	59.2
General Treasurer	87.5
Boards for Design Professionals	4.0
Board of Elections	22.3
Rhode Island Ethics Commission	10.0
Office of the Governor	50.0
Public Utilities Commission	44.0
Rhode Island Commission on Women	2.0
Children, Youth, and Families	~~875.9~~ 868.9
Elderly Affairs	60.6
Health	477.1
Human Services	1,139.9
Mental Health, Retardation, and Hospitals	2,138.0
Office of the Child Advocate	13.0
Commission on the Deaf and Hard of Hearing	3.0
RI Developmental Disabilities Council	3.0
Governor's Commission on Disabilities	4.6
Commission for Human Rights	17.0
Office of the Mental Health Advocate	4.3
Elementary and Secondary Education	345.2
Higher Education ‑ Board of Governors	~~3,582.9~~ 3,589.9
Rhode Island Council on the Arts	6.0
RI Atomic Energy Commission	8.6
Higher Education Assistance Authority	46.6
Historical Preservation and Heritage Commission	17.6
Public Telecommunications Authority	22.0
Attorney General	229.0
Corrections	1,550.6
Judicial	707.0
Military Staff	94.0
E-911 Emergency Telephone System	48.6
Fire Safety Code Bd. of Appeal and Review	3.0
RI State Fire Marshal	21.5
Commission on Judicial Tenure and Discipline	1.0
Rhode Island Justice Commission	9.0
Municipal Police Training Academy	4.0
State Police	267.0
Office of the Public Defender	79.5
Environmental Management	585.5
Coastal Resources Management Council	30.0
Water Resources Board	9.0
Transportation	864.3
Total	15,856.3

SECTION 5. This article shall take effect upon passage.

ARTICLE 11 SUB A

RELATING TO COMPENSATION OF BOARD MEMBERS

SECTION 1. For the fiscal year ending June 30, 2003, the compensation paid to commissioners and board members for attendance at board meetings of the following state agencies and autonomous and semi-autonomous boards and commissions authorized under the General Laws of this state is suspended. Reimbursement for travel costs to said meetings will continue to be allowable in accordance with existing state travel regulations.

	R.I.G.L.	Compensation
Board/Commission Title	Reference	(per Meeting)
Accountancy	5-3.1-4	30.00
Electricians	5-6-27	25.00
Engineers	5-8-5	25.00
Land Surveyors	5-8.1-6	25.00
Hairdressers, Cosmeticians
and Manicurists	5-10-4	25.00
Real Estate Appraisers	5-20.7-4	75.00
Real Estate Commission	5-20.5-12	25.00
Plumbing Examiners	5-20-7	25.00
Professional Regulation	5-26-5	20.00/40.00
Barber Examiners	5-10-4	25.00
Chiropractics	5-30-15	10.00
Examiners in Dentistry	5-31.1-2	100.00
Nursing	5-34-8	50.00
Health Services Council	23-17-14.2	50.00
Optometrists	5-35-3	30.00
Medical Licensure & Discipline	5-37-1.1	100.00
Hearing Aid Dealers & Fitters	5-49-15	25.00
Landscape Architects	5-51-2	25.00
Board of Governors for
Higher Education	16-59-1	50.00/75.00
Board of Regents	16-60-1	75.00
Public Telecommunications
Authority	16-61-4	50.00/75.00
Legislative Oversight	22-14-1	50.00
Building Code Commission	23-27.3-108.2.2	50.00/75.00
Fire Appeal and Review	23-28.3-4	50.00/75.00
Pipefitters and
Refrigeration Technicians	28-27-3	25.00
Apprenticeship Training	28-45-2	45.00
Commission for Human Rights	28-5-11	50.00
Motor Dealers License	31-5-2.1	40.00
Medical Advisory -- Motor
Vehicles	31-10-44	50.00
Investment	35-10-7	75.00
Ethics	36-14-8	100.00
Racing and Athletics	41-2-2	25.00
Pilotage	46-9.1-3	50.00
Water Resources Board	46-15.1-2.4	50.00/75.00
Coastal Resources Management	46-23-5	50.00/75.00
Narragansett Bay Water
Quality Distributors	46-25-8	50.00
Vehicle Value Commission	44-34-11	50.00
Police and Fire Relief	45-19-6	25.00

SECTION 2. Notwithstanding the boards and commissions identified in Section 1 it is the intent of this article to suspend the compensation paid to members of all state agencies and autonomous and semi-autonomous boards and commissions authorized compensation under the General Laws of Rhode Island, except for the Medical Advisory Board of the Workers' Compensation Court pursuant to Section 28-30-22 of the general laws.

SECTION 3. This article shall take effect on July 1, 2002.

ARTICLE 12 SUB A AS AMENDED

RELATING TO OIL SPILL RESPONSE FUND

SECTION 1. Section 46-12.7-5.1 of the General Laws in Chapter 46-12.7 entitled "Oil Spill Prevention, Administration and Response Fund" is hereby amended to read as follows:

46-12.7-5.1. Purposes of the fund. -- The director may use money from the fund to:

(1) Provide funds to cover promptly the costs of response, containment, and cleanup of oil spills into marine or estuarine waters, including but not limited to damage assessment costs, and wildlife rehabilitation as defined in this section.

(2) ~~Site~~ Provide funds to cover the cost of site evaluation activities. These activities shall include, but not be limited to, site mapping, installation of wells ~~and equipment,~~ collection, monitoring, and analysis of samples of air, soil, and/or water, and evaluation of the impacts of contamination of marine and terrestrial environments, production of the reports, and ~~implementation~~ installation and the maintenance of necessary technology, and equipment for complete remedial action;

(3) Provide emergency loans and to cover response and cleanup costs and other damages suffered by the state or other persons or entities from oil spills or threatened oil spills,. ~~which cannot otherwise be compensated by responsible parties or the federal government;~~

(4) To pay for claims for damages, which cannot otherwise be compensated by responsible parties or the federal government, pursuant to section 46-12.7-8.1;

(5) Provide emergency loans to affected workers ineligible for unemployment insurance;

(6) Pay for structural improvements to vulnerable coastal features;, including the Providence River shipping channel in order to reduce the risk of oil tanker collisions, grounding, and spills;

(7) Pay for ~~habitat restoration,~~ the restoration of natural resources damaged by an oil spill where necessary and appropriate;

(8) Pay for response training and equipment; and

(9) Pay for large-scale personnel drills and exercises.

(10) Pay for research and development activities as outlined in section 46-12.7-13; and

(11) Pay the statutory amount to the RI coastal and estuarine habitat restoration subject to appropriation.

SECTION 2. This Article shall take effect upon passage.

ARTICLE 13 SUB A AS AMENDED

RELATING TO FEES

SECTION 1. Section 42-17.1-9.1 of the General Laws in Chapter 42-17.1 entitled "Department of Environmental Management" is hereby amended to read as follows:

42-17.1-9.1 User fees at state beaches, parks, and recreation areas. - (a) The department of environmental management in pursuance of its administrative duties and responsibilities may charge a user fee for any state beach, or recreational area under its jurisdiction, and fees for the use of its services or facilities.

(b) The fee may be on a daily or annual basis, or both, and may be based on vehicle parking or other appropriate means. The fees may recognize the contribution of Rhode Island taxpayers to support the facilities in relation to other users of the state's facilities. The fee structure may acknowledge the need to provide for all people, regardless of circumstances.

(d) An additional fee for camping and other special uses may be charged where appropriate. Rates so charged should be comparable to equivalent commercial facilities.

(e) All such fees shall be established after a public hearing.

(f) All daily fees from beach parking, which shall also include fees charged and collected at Ninigret conservation area and Charlestown breachway, shall be shared with the municipality in which the facility is located on the basis of ~~sixty percent (60%)~~ seventy-three percent (73%) retained by the state and ~~forty percent (40%)~~ twenty-seven percent (27%) remitted to the municipality.

(g) Fifty percent (50%) of all user and concession fees received by the state shall be deposited as general revenues. For the year beginning July 1, 1979, the proportion of user and concession fees to be received by the state shall be sixty-five percent (65%); for the year beginning July 1, 1980, eighty-five percent (85%); and for the year beginning July 1, 1981, and all years thereafter, one hundred percent (100%). The general revenue monies appropriated are hereby specifically dedicated to meeting the costs of development, renovation of, and acquisition of state-owned recreation areas and for regular maintenance, repair and operation of state owned recreation areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred thousand dollars ($400,000) annually. Notwithstanding the provisions of § 37-1-1 or any other provision of the general laws, the director of the department of environmental management is hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money, bonds, or other valuable securities for deposit in the same manner as provided above for user and concession fees retained by the state.

(h) No fee shall be charged to any school or other nonprofit organization provided that a representative of the school or other organization gives written notice of the date and time of their arrival to the facility.

SECTION 2. Section 24-10.1-4 of the General Laws in Chapter 10.1 entitled "Outdoor Advertising" is hereby amended to read as follows:

24-10.1-4. Regulation of advertising. - The director of transportation is hereby authorized to promulgate regulations governing the issuance of permits for the erection and maintenance of outdoor advertising coming within the exceptions contained in subsections (1), (4) and (5) of § 24-10.1-3 consistent with the safety and welfare of the traveling public, and as may be necessary to carry out the policy of the state declared in this chapter, and consistent with the national standards promulgated by the secretary of commerce pursuant to title 23, United States Code. All permit fees collected pursuant to regulations promulgated under this section shall be deposited in the intermodal surface transportation fund.

SECTION 3. Sections 5-6-16, 5-6-17 and 5-6-20 of the General Laws in Chapter 5-6 entitled "Electricians" are hereby amended to read as follows:

5-6-16 License fees. - A fee of one hundred twenty dollars ~~($100)~~ ($120) is paid by each applicant for an electrical contractor's license Class A; thirty six dollars ~~($30.00)~~ ($36.00) for a journeyperson electrician's license Class B; one hundred twenty dollars ~~($100)~~ ($120) for a limited premises license Class C; one hundred twenty dollars ~~($100)~~ ($120) for an oil burner contractor's license Class E; thirty six dollars ~~($30.00)~~ ($36.00) for an oil burnerperson's license Class F; one hundred twenty dollars ~~($100)~~ ($120) for a fire alarm contractor's license Class AF; thirty six dollars ~~($30.00)~~ ($36.00) for a fire alarm installer's license Class BF; one hundred twenty dollars ~~($100)~~ ($120) for an electrical sign contractor's license SCF; and thirty six dollars ~~($30.00)~~ ($36.00) for a sign installer's license Class CF; and one hundred twenty dollars ~~($100)~~ ($120) for a limited maintenance license Class D.

5-6-17 Application for examination - Fee. - Persons desiring an examination shall make written application on the state approved form for the examination accompanied by the proper fee, which is thirty six dollars ~~($30.00).~~ ($36.00).

5-6-20 Expiration and renewal of certificates and licenses. - (a) All certificates and/or licenses issued by the division of professional regulation expire on the birthday of the individual qualifying for the certificate and/or license and may be renewed on or after that date for a period of two (2) years upon payment of the appropriate renewal fee which is equal to the license fees prescribed in § 5-6-16, plus outstanding license fees and a ~~ten dollar ($10.00)~~ twelve dollar ($12.00) per month administrative assessment fee for the delinquency period.

(b) Notwithstanding any other provisions of this chapter, any license issued under this chapter which is not renewed within two (2) years of the date of its expiration, is deemed to be forfeited, and the person to whom the license has been issued is required to make written application for an examination prior to the issuance of a new license.

SECTION 4. Sections 5-20-17, 5-20-17.1 and 5-20-23 of the General Laws in Chapter 5-20 entitled "Plumbers and Irrigators" are hereby amended to read as follows:

5-20-17 Qualifications of journeyperson - Application fee. - No application for a journeyperson's license shall be filed by the department of labor and training nor shall any applicant be permitted to take the examination for a license as a journeyperson plumber, unless:

(1) The application is accompanied by a nonrefundable application fee of thirty six dollars ~~($30.00);~~ ($36.00);

(2) The applicant shall have possessed for at least four (4) years prior to the filing of the application a certificate of registration in full force and effect from the department of labor and training of the state specifying that person as a registered apprentice plumber and the application of that applicant is accompanied with an affidavit or affidavits of his or her employer or former employers or other reasonably satisfactory evidence showing that the applicant has been actually engaged in plumbing work as an apprentice plumber in the state of Rhode Island for eight thousand (8,000) hours of on the job training during a five (5) year period which shall include the successful completion of five hundred seventy-six (576) hours of related instruction at a training program recognized by the department of labor and training or the application is accompanied with an affidavit or other reasonably satisfactory evidence showing that the applicant has been a registered student in a recognized college, university, or trade school and has pursued a course of plumbing or sanitary engineering for at least two (2) academic years, or is the recipient of an associate degree in either plumbing or sanitary engineering, and has thereafter been registered by the department of labor and training as an apprentice plumber for at least two (2) years and at all times while being employed as a registered apprentice plumber by a duly licensed master plumber in this state for a period of two (2) years or the application is accompanied by an affidavit or other reasonably satisfactory evidence showing that the applicant possesses a certificate of license, issued under the laws of another state, provided that the requirements are the same as the state specifying that person as a journeyperson plumber. The records of the hours of on the job training and the hours of related instruction should be maintained in a mutually responsible manner, through a joint effort on the part of the master plumber and the apprentice. The completed application is to be filed with the department at least fifteen (15) days prior to the examination date.

5-20-17.1 Qualifications of journeyperson irrigator - Application fee. - application for a journeyperson's license shall be filed by the department of labor and training nor shall any applicant be permitted to take the examination for a license as a journeyperson irrigator unless:

(1) The application is accompanied with the nonrefundable application fee of thirty six dollars ~~($30.00);~~ ($36.00);

(2) The applicant possess a current apprentice certificate for a period of one year before application for journeyperson irrigator is made.

5-20-23 Expiration and renewal of licenses-Penalties for violation of section.- (a) All licenses of master plumbers and master irrigators and journeyperson plumbers or journeyperson irrigators issued by the division of professional regulation expire on the birthday of the individual qualifying for the license and may be renewed on or before that date for a period of one year, upon payment of the appropriate renewal fee, and a bond as required by § 5-20-18.

(b) Any master plumber or master irrigator who fails to renew his or her license as provided in subsection (a) of this section may be reinstated by the department on or after the renewal date for a period of one year, upon payment of the current renewal fee of one hundred twenty dollars ~~($100)~~ ($120) plus outstanding license fees and a ~~ten dollar ($10.00)~~ twelve dollar ($12.00) per month administrative assessment fee for the delinquency period.

(c) Every certificate of license of a journeyperson plumber or journeyperson irrigator issued by the department is renewed on or before the licensee's birthday next following the date of issuance upon payment of a renewal fee of thirty six dollars ~~($30.00).~~ ($36.00).

(d) Any journeyperson plumber or journeyperson irrigator who fails to renew his or her license as provided in subsection (a) of this section may be reinstated by the department on or after the renewal date for a period of one year upon payment of the current renewal fee of thirty six dollars ~~($30.00)~~ ($36.00) plus outstanding license fees and a ~~ten dollar ($10.00)~~ twelve dollar ($12.00) per month administrative assessment fee for the delinquency period.

(e) [Deleted by P.L. 2000, ch. 425, § 1.]

(f) [Deleted by P.L. 2000, ch. 425, § 1.]

(g) Notwithstanding any other provisions of this chapter, any license issued under this chapter which is not renewed within two (2) years of the date of its expiration, is deemed to be forfeited, and the person to whom the license has been issued is required to make written application for an examination prior to the issuance of a new license.

SECTION 5. Section 23-33-12 of the General Laws in Chapter 23-33 entitled "Elevators, Escalators and Dumbwaiters" is hereby amended to read as follows:

23-33-12 Inspection - Reinspection - Examination and Licensee fee - Renewal. (a) For every orignal inspection made by the inspectors under the provisions of this chapter, the owner shall pay to the division the required fee which shall include the cost of the certificate. The fee shall be paid in the amount of amounts as set forth as follows:

Inspection of dumbwaiters	~~$60.00~~	$72.00
Biennial inspection of elevator or escalator		$200.00
Inspection of Elevator	~~$100.00~~	$120.00
Inspection of Escalator or moving walk	~~$100.00~~	$120.00
Inspection of wheelchair lift	~~$60.00~~	$72.00
Inspection of vertical reciprocating conveyors	~~$60.00~~	$72.00
Annual authorized inspection license	~~$50.00~~	$60.00
Authorized inspector's examination fee	~~$50.00~~	$60.00
This fee shall include the initial inspection.
Reinspection of elevators and escalators	~~$75.00~~	$90.00
Reinspection of all other devices	~~$45.00~~	$54.00
Delinquent payment fee	~~$20.00~~	$24.00
Duplicate certification fee	~~$10.00~~	$12.00
Company license	~~$200.00~~	$240.00
Mechanics/Installers license	~~$65.00~~	$78.00

(2) A fee in the amount of one percent (1%) of the contract price shall accompany each application for a permit to install or modernize any device subject to the provisions of this chapter.

(b) The inspection fee shall be paid immediately upon the conclusion of the inspection and before a certificate is issued, provided, however, that no inspection fees shall be paid by any city, town, or fire district, or state agency, or by any religious or charitable society, association, or church.

(c) A delinquent payment fee shall be due and payable on all invoices received more than thirty (30) days past the billing date.

(d) All certificates shall be renewable annually except for those certificates issued to locations with full maintenance contracts. Such locations shall be issued certificates valid for a period of two (2) years, unless the contract becomes null and void, in which case the certificate shall become annually renewable. All certificates shall be valid until revoked.

SECTION 6. Section 28-18-5.4 of the General Laws in Chapter 28-18 entitled "Industrial Homework" is hereby amended to read as follows:

28-18-5.4 Contractor's permit fees. - An annual fee of ~~one hundred dollars ($100.00)~~ one hundred twenty dollars ($120.00) shall be paid to the director of labor and training for a contractor's permit. The proceeds derived under this chapter shall be deposited as general revenues.

SECTION 7. Section 28-21-16 of the General Laws in Chapter 28-21 entitled "Hazardous Substances Right-To Know Act" is hereby amended to read as follows:

28-21-16 Funding - Contracts for services-Exemption for copiers-Appeals.-

The director of labor and training shall determine which employers are subject to this chapter and shall assess and collect an annual assessment of ~~thirty five dollars ($35.00)~~ forty two dollars ($42.00) which shall be levied against all those employers, which result in the funding for the implementation of this chapter. The employer is obligated to pay the assessment. No employer shall be exempt from this chapter unless and until a request for exemption is filed and approval is granted, provided that public and private libraries are exempted from the foregoing requirement. The funds shall be deposited as general revenue.

SECTION 8. Sections 28-26-10 and 28-26-11 of the General Laws in Chapter 28-26 entitled "Hoisting Engineers" are hereby amended to read as follows:

28-26-10 License fees. - Each applicant for an examination for a license as an engineer shall pay to the division at the time of application a fee of thirty six dollars ~~($30.00),~~ ($36.00), and for each license or renewal of a license a fee at the annual rate of forty eight dollars ~~($40.00)~~ ($48.00) for a full license, ~~thirty-five dollars ($35.00)~~ forty two dollars ($42.00) for a hoisting license, thirty six dollars ~~($30.00)~~ ($36.00) for an excavating license, and ~~twenty-five dollars ($25.00)~~ thirty dollars ($30.00) for a limited license, these fees to be deposited as general revenues.

28-26-11 Penalty for violations. - An engineer or user or agent of steam, internal combustion engine, electric, or compressed air hoisting machinery described in this chapter, who violates any provision of this chapter shall be fined not less than ~~two hundred and fifty dollars ($250)~~ three hundred dollars ($300) nor more than ~~nine hundred fifty dollars ($950)~~ one thousand one hundred fifty dollars ($1,150) per offense, and each day in which a violation occurs is separate offense.

SECTION 9. Sections 28-27-4.4, 28-27-5.2, 28-27-13, 28-27-17, 28-27-17.1 and 28-27-18 of the General Laws in Chapter 28-27 entitled "Pipefitters and Refrigeration Technicians, Fire Protection Sprinkler Contractors and Journeyperson Sprinkler Fitters, Sheet Metal Contractors, Journeyperson Sheet Metal Workers, and Oil Heat Contractors" are hereby amended to read as follows:

28-27-4.4 "Master mechanical contractor" defined - License fee. - (a) "Master mechanical contractor" means any person who has worked as a contractor and has been associated in both trades of pipefitting and refrigeration for at least ten (10) years as a Rhode Island Licensed Pipefitter Master I and at least ten (10) years as a Rhode Island Licensed Refrigeration Master I, and who shall be designated as a master mechanical contractor subject to provisions of this chapter or the rules and regulations and licensing criteria promulgated under this chapter.

(b) The license fee for a master mechanical contractor is two hundred forty dollars ~~($200).~~ ($240).

28-27-5.2 Issuance of P.J.F. journeyperson oil burnerperson's license. - (a) Any person who has qualified previously for the electrician's F certificate and the P.J.F. II limited to oil individually, and presently holds both licenses, may convert to the single P.J.F. limited journeyperson II oil burnerperson's license by application to the division on an approved application and with payment of the applicable fee as detailed in this chapter. This licensee cannot be self employed and is limited to domestic oil burner service work, burner, tank, and oil line installation. Persons seeking an initial P.J.F. limited journeyperson II oil burner license must show proof of completion of a trade sponsored program or a trade related program offered by a recognized college. All programs must have prior approval of the department of labor and training before licenses are issued.

(b) The person seeking P.J.F. licensing must be employed by a master pipefitting contractor class II as detailed under § 28-27-4.

(d) Fees are as follows:

(1) Apprenticeship fee is ~~twenty-five dollars ($25.00)~~ thirty dollars ($30.00) with birthmonth licensing;

(2) License fee is ~~sixty dollars ($60.00)~~ seventy two dollars ($72.00) with birthmonth licensing;

(3) Renewal fee is ~~sixty dollars ($60.00)~~ seventy two dollars ($72.00) with birthmonth licensing;

(e) The fees collected are deposited as general revenues.

28-27-13 Change of address. - Any person who holds a certificate of license as a master, journeyperson, or apprentice shall notify the department promptly in the event of a change of address specified on his or her certificate of license. Any person who violates this section will be assessed the sum of ~~ten dollars ($10.00)~~ twelve dollars ($12.00) as an administrative fee.

28-27-17 Test fees - License fees - Expiration and renewal of licenses. - (a) All licenses issued to the pipefitters/refrigeration technicians and fire protection sprinkler contractor/sprinkler fitters and sheet metal contractor or journeyperson sheet metal worker detailed below shall be paid for as follows:

	TEST	LICENSE	RENEWAL
Master Mechanical Contractor	---		~~200.00~~	240.00	~~200.00~~	240.00
Contractor Master	~~30.00~~	36.00	~~100.00~~ 120.00		~~100.00~~	120.00
Pipefitter Master I	~~30.00~~	36.00	~~100.00~~	120.00	~~100.00~~	120.00
Pipefitter Master II	~~30.00~~	36.00	~~40.00~~ 48.00	~~40.00~~ 48.00
Refrigeration Master I		~~30.00~~ 36.00	~~100.00~~	120.00	~~100.00~~	120.00
Refrigeration Master II		~~30.00~~ 36.00	~~40.00~~	48.00	~~40.00~~	48.00
Pipefitter Journeyperson I		~~30.00~~ 36.00	~~30.00~~	36.00	~~30.00~~	36.00
Pipefitter Journeyperson II		~~30.00~~ 36.00	~~25.00~~	30.00	~~25.00~~	30.00
Refrigeration Journeyperson I		~~30.00~~ 36.00	~~30.00~~	36.00	~~30.00~~	36.00
Refrigeration Journeyperson II		~~30.00~~ 36.00	~~25.00~~	30.00	~~25.00~~	30.00
Apprentices	---		~~20.00~~	24.00	~~20.00~~	24.00
Fire Protection Sprinkler
Fitters Master I	~~30.00~~	36.00	~~100.00~~	120.00	~~100.00~~	120.00
Fire Protection Sprinkler
Fitters Journeyperson I	~~30.00~~	36.00	~~30.00~~	36.00	~~30.00~~	36.00
Sheet Metal Contractor	~~30.00~~	36.00	~~100.00~~	120.00	~~100.00~~	120.00
Sheet Metal Worker
Journeyperson	~~30.00~~	36.00	~~30.00~~	36.00	~~30.00~~	36.00

(b) Every license issued by the division of professional regulation is renewable on the licensee's birthdate. If any credit is due in the initial changeover year the amount of credit is determined by the chief administrator of the division.

28-27-17.1 Failure to renew license. - Any licensed master, contractor journeyperson, or apprentice who does not renew his or her license on or before his or her birthdate shall be required to pay a ~~ten dollar ($10.00)~~ twelve dollar ($12.00) per month administrative assessment fee for the first two (2) years of delinquency, plus outstanding license fees. If a license is not renewed within two (2) years of its expiration it will result in a forfeiture of the license, notwithstanding any other provisions of this chapter. In the case of forfeiture, a license may only be reinstated by the person taking a test for a new license.

28-27-18 Registration of apprentices. - (a) Any person who has agreed to work five (5) years under the supervision of a licensed pipefitter or refrigeration/air conditioning or fire protection sprinkler contractor/sprinklerfitter master or sheet metal contractor under a state sanctioned apprenticeship program shall be registered by the director of labor and training upon the payment of a twenty four dollar ~~($20.00)~~ ($24.00) annual fee and shall be issued a certificate of apprenticeship. A renewal certificate shall be issued for twenty four dollars ~~($20.00)~~ ($24.00) for each succeeding twelve (12) month period.

(b) The minimum formal training period for a P.J.F. limited class II license is two hundred twenty (220) hours of classroom and/or laboratory technical training, approved by the department of labor and training. The fee schedules for the P.J.F. limited license are detailed in § 28-27-5.2. All other sections of this chapter remain in full force and effect.

SECTION 10. Sections 28-45-9.1 and 28-45-13.1 of the General Laws in Chapter 28-45 entitled "Apprenticeship Programs in Trade and Industry" are hereby amended to read as follows:

28-45-9.1 Apprenticeship programs - Fees. - A fee of one hundred twenty dollars ~~($100)~~ ($120) shall be paid by each program sponsor, except those sponsors who are in registered school-to-career apprenticeship programs only, and/or those sponsors who are licensed masters/contractors with the department of labor and training, division of professional regulation, requesting authorization as an approved sponsor from the state apprenticeship council. All state approved sponsors' certificates issued by the division of professional regulation, except those sponsors who are registered in school-to-career apprenticeship programs only, and/or those sponsors who are licensed masters/contractors with the department of labor and training, division of professional regulation, shall become due for renewal annually upon payment of a renewal fee of one hundred twenty dollars ~~($100).~~ ($120). These fees are deposited as general revenues.

28-45-13.1 Apprenticeship registration - Fees. - A fee of twenty four dollars ~~($20.00)~~ ($24.00) shall be paid by each indentured apprentice, except those apprentices who are registered in school-to-career apprenticeship programs only, not registered as an apprentice with the division of professional regulation of the department of labor and training, except those apprentices who are registered in school-to-career apprenticeship programs only, requesting approval and registration with the state apprenticeship council. All state-approved apprentice certificates that are not registered and renewable through the division of professional regulation of the department of labor and training shall become due for renewal annually for a renewal fee of twenty four dollars ~~($20.00).~~ ($24.00). All apprenticeship certificates issued by the division of professional regulation of the department of labor and training shall expire on the indentured date of the individual qualifying for the certificate.

SECTION 11. Section 47-1-5.1 of the General Laws in Chapter 47-1 entitled "Duties of Director of Labor and Training" is hereby amended to read as follows:

47-1-5.1 Fees and compensation of director of labor and training. - (a) The director of labor and training shall, in any town or city without a town or city sealer, or in a case where a sealer is not available or his or her deputy, or when sufficient equipment has not been provided for by the town or city for a sealer to properly perform his or her duties, for a period not to exceed three (3) months in any one year, test and/or approve any weighing, measuring, or balancing apparatus, and shall receive compensation for testing and/or approving as stated herein. Every mechanical, electronic, or other scale with NETP certification with a capacity of less than thirty-five (35) pounds a fee of ~~ten dollars ($10.00)~~ twelve dollars ($12.00); for every scale used for the retail sale of precious metals ~~twenty-five dollars ($25.00)~~ thirty dollars ($30.00); for every mechanical, electronic, or other scale with NETP certification with a capacity of thirty-five (35) pounds to three hundred (300) pounds a fee of ~~twenty-five dollars ($25.00)~~ thirty dollars ($30.00); for every platform scale with a capacity of three hundred (300) pounds to five thousand (5,000) pounds a fee of ~~twenty dollars ($20.00)~~ twenty-four dollars ($24.00); and for every platform scale with a capacity over five thousand (5,000) pounds a fee of ~~thirty dollars ($30.00)~~ thirty-six dollars ($36.00) per hour. If any of the scales, balances or gasoline measuring devices with NETP certification are found to be incorrect, then they shall be so marked and their use forbidden until such time as the devices meet the requirements of that current year edition of NIST Handbook 44. Scales or balances not meeting class standards, as those often used to weigh people or scales for approximating weight, can be checked and the fees shall be the same as herein provided for same weight capacities. For the testing and/or approving of gasoline measuring devices there shall be a fee of ~~fifteen ($15.00)~~ eighteen dollars ($18.00) per test per meter; in the case of a multi-grade dispenser a fee of ~~ten dollars ($10.00)~~ twelve dollars ($12.00) shall be charged to verify the price computation mechanism.

(b) The director of labor shall authorize and direct the testing and/or approving of the apparatus stated herein, from time to time as in the director's judgment it may be deemed necessary to prevent fraud or deception.

SECTION 12. Sections 47-8-1, 47-8-5 and 47-8-8 of the General Laws in Chapter 47-8 entitled "Gasoline and Petroleum Products" are hereby amended to read as follows:

47-8-1 Testing of measuring devices - Forbidding use - Fee. - The director of labor is hereby authorized and directed to have tested all gasoline measuring devices used in the sale of gasoline, from time to time, as in his or her judgment it may be deemed necessary, to prevent fraud or deception in the use of these devices or to insure the accurate measurement of gasoline in the sale. Any town or city sealer of weights, measures, and balances shall have authority to condemn and forbid the use of any gasoline measuring device for the sale of gasoline in his or her respective town or city, or until the device has been duly tried and sealed, or until the gasoline measuring device has been equipped with such an attachment, contrivance, or apparatus as will insure the correct and proper functioning of the measuring device for the sale of the gasoline by accurate measurement. For the testing and sealing of a gasoline measuring device, a fee of ~~three dollars ($3.00)~~ five dollars ($5.00) shall be paid unless otherwise stated in § 47-1-5.1, except in the city of Providence where the sealer shall have the authority to remove and replace any lead seal on any gasoline measuring device and to charge an additional fee of ~~three dollars ($3.00)~~ five dollars ($5.00) for that service.

47-8-5 Testing and marking of tank vehicles and meters. - The capacity of every tank vehicle used and each compartment thereof used for the transportation over the public highways of this state of fuels, such as gasoline and other volatile and inflammable liquids including oils used for heating purposes, when used as a measuring device shall be tested and sealed at least once every three (3) years by the director of labor and training. The capacity, when so determined, shall be plainly printed upon the right hand side of the vehicle tank dome in letters and numerals not less than one inch in height. The meters of the vehicle tanks and the meters of home delivery truck vehicles and loading rack meters shall be tested and sealed at least once a year by the director of labor and training. The director of labor and training shall assess a fee of ~~one and one-half cent (11/2¢)~~ one and eight tenths cent (1.8¢) per gallon for measuring tank vehicles, and a fee of ~~eight dollars ($8.00)~~ nine dollars and sixty cents ($9.60) for testing meters on tank vehicles, and home delivery truck vehicles, except, when those meters are gravity fed, the fee shall be ~~fifteen dollars ($15.00)~~ eighteen dollars ($18.00), and a fee of ~~fifteen dollars ($15.00)~~ eighteen dollars ($18.00) shall be assessed for testing loading rack meters at least once every year, and a fee of ~~twenty dollars ($20.00)~~ twenty-four dollars ($24.00) shall be assessed for testing and sealing of bottom loading rack meters at least once every year. The director of labor and training shall also receive reasonable compensation for all adjustments which it may be necessary for the director to make. Reasonable compensation shall not exceed the rates as provided herein.

47-8-8 Licensing of petroleum products delivery companies. - (a) There shall be an annual license fee of ~~one hundred dollars ($100)~~ one hundred twenty dollars ($120) for each enterprise name used or involved in the delivery of petroleum products and a reapplication fee of ~~five hundred dollars ($500)~~ six hundred dollars ($600) for each enterprise required to renew who fail to do so after the licensing date of August 1. All monies received under this section shall be deposited as general revenue. The application for a license to be issued and administered by the weights and measures division of the department of labor and training shall include:

(i) Certification of two million dollars ($2,000,000) liability insurance which includes pollution liability broad form coverage or certification of self insurance.

(ii) Number of registered and unregistered delivery vehicles (including color, type of vehicle, and year and make of vehicle).

(iii) Statement that petroleum delivery vehicle identifications are in accordance with § 397 of federal motor carriers safety regulations for the transportation of hazardous materials, including § 397.21, entitled "Marking of Vehicles Operated by Private Carriers" including:

(A) Placarding in accordance with federal requirements.

(B) The name of the enterprise to whom the petroleum company license is issued, and the city or town in which the enterprise maintains its principal office or in which the vehicle or vehicles are customarily based.

(2) The markings specified in subsection (a)(1)(iii) must appear on both sides of the vehicle, and be in letters that contrast sharply in color with the background; and be readily legible during daylight hours from a distance of fifty feet (50') while the vehicle is stationary; and be kept and maintained in a manner that retains the legibility required. The marking may consist of a removable device, if that device meets the identification and legibility requirements of this paragraph, for a period not to exceed three (3) months after the registration of said vehicle.

(3) All meters of the vehicles listed on the application must be tested and sealed before the meters shall be used in any delivery of petroleum products. The meters shall be tolerance tested for compliance with the current year national institute of standards and technology handbook #44. Meters not in tolerance compliance shall be so marked in accordance with § 47-3-1 and subject to the fines as stated.

(b) An enterprise so licensed shall be required to provide the wholesale petroleum terminals with proof of the fact that it is licensed prior to obtaining any petroleum products.

(2) An enterprise so licensed shall be required to use

(i) Said license number and

(ii) Enterprise name when advertising or offering for sale home heating fuels.

(c) The director of the department of labor and training is authorized and empowered to promulgate rules and regulations for the enforcement and administration of the provisions of this chapter.

(2) The rules and regulations shall be promulgated as required to enforce this section.

SECTION 13. Sections 46-15.3-5, 46-15.3-9, and 46-15.3-10 of the General Laws in Chapter 46-15.3 entitled "Public Drinking Water Supply System Protection" are hereby amended to read as follows:

46-15.3-5 Water quality protection charge. - (a) There is hereby imposed on each supplier of water, for the purpose of protecting the quality and safety of the public supply of water, a charge to be known as a "water quality protection charge" based upon billings for sales of every supplier of public drinking water at the rate of two and ~~fifty-nine~~ ninety two hundredth cents ~~($.0259)~~ ($.0292) per one hundred (100) gallons of each sale, whether the water be used for drinking or other purposes. No supplier shall impose a water quality protection charge upon sales to other suppliers of drinking water. Except as provided in subsections (c), (d) and (e) hereof, the supplier shall add any water quality protection charge imposed hereunder to the sale price, and, when added, the water quality protection charge shall constitute a part of the price and shall also be a debt from the purchaser to the supplier and be collectible in the same manner and have the benefit of any lien provided for the amounts due for water charges from the purchaser to the supplier. Provided, however, the water quality protection charge shall not be subject to the sales and use tax. Subject to the provisions of § 39-1.1-1 for those suppliers which are public utilities, all suppliers may terminate service for failure of purchasers to pay the water quality protection charge.

(b) Any water quality protection charge imposed hereunder shall not take effect earlier than January 1, 1989; provided, however, the increase in water quality protection charge by one and one-third cents ($0.01333) established by P.L. 1990, Ch. 65, Art. 39, § 1 shall take effect and be chargeable on all billings for water sales made by a supplier on and after July 1, 1991.

(c) Each supplier shall provide for the exemption from the water quality protection charge, for any sale to a purchaser sixty-five (65) years of age and over purchasing water for the personal consumption of that person and other members of the person's household under reasonable rules and regulations.

(d) All commercial agricultural producers, including those who provide food and fiber, shall be exempt for that amount of water used to irrigate commercial crops either in fields or greenhouses, provided, that the producers have a conservation plan on file with their respective soil conservation districts.

(e) No water quality protection charge shall be imposed on that portion of such supplier's retail billing representing potable water furnished to customers by purchase of water in its finished, potable form from sources outside the state. The water quality protection charge imposed by a supplier purchasing potable water from outside the state shall be pro rata imposed on such supplier's retail billings for that portion of potable water supplied from within the state in accordance with rules and regulations to be finally promulgated by the water resources board on or before September 1, 1992.

(f) If any supplier of water fails to pay the water quality protection charge imposed upon it, upon determination by the water resources board of failure to pay and the amount unpaid, there shall be withheld from any state aid or grants of any nature due such supplier an equivalent amount and such monies shall be transferred to the appropriate water quality protection fund created under § 46-15.3-10.

46-15.3-9 Collection of charges. - A record shall be maintained by every supplier showing the amounts of water sold, and the amounts of water quality protection charges billed. The records shall be subject to public review. The water quality protection charges shall be deemed to be trust funds for the purposes of this chapter and shall be held in a separate account. For all suppliers, other than the city of Providence acting through the Providence water supply board, or suppliers purchasing water from the city of Providence acting through the Providence water supply board, ~~forty and seven-tenths~~ thirty six and one tenth percent ~~(40.7%)~~ (36.1%) of the amount billed each month shall be remitted to the treasurer of the water resources board on or before the twentieth (20th) day of the second month following the month of billing. For suppliers purchasing water from the city of Providence acting through the Providence water supply board, for that portion of such supplier's retail billings representing water furnished to the purchasers from the Providence water supply board, ~~forty and seven-tenths~~ thirty six and one tenth percent ~~(40.7%)~~ (36.1%) of the amount billed each month shall be remitted to the Providence water supply board, on or before the twentieth (20th) day of the second month following the month of billing, and for that portion of such supplier's retail billings representing water furnished to the purchasers from sources other than the Providence water supply board, ~~forty and seven-tenths~~ thirty six and one tenth percent ~~(40.7%)~~ (36.1%) of the amount billed each month shall be remitted to the treasurer of the water resources board on or before the twentieth (20th) day of the second month following the month of billing. The amounts remitted by suppliers purchasing water from the city of Providence to the Providence water supply board and treasurer of the water resources board pursuant to the previous sentence shall be based pro rata on metered water production originating from the Providence water supply board and from all other sources in accordance with rules and regulations to be finally promulgated by the water resources board on or before September 1, 1992. For all suppliers, including the city of Providence acting through the Providence water supply board, ~~fifty-one and five-tenths~~ fifty seven percent ~~(51.5%)~~ (57.0%) of the amount billed each month shall be remitted through the water resources board to the general treasurer of the state of Rhode Island on or before the twentieth (20th) day of the second month following the month of billing and shall be deposited as general revenues. All suppliers may disburse the ~~seven and eight-tenths~~ six and nine tenths percent ~~(7.8%)~~ (6.9%) of the charges collected and retained by the supplier as an administrative charge for any purpose relating to the operation of the supplier. All suppliers shall use or pledge the ~~forty and seven-tenths~~ thirty six and one tenth percent ~~(40.7%)~~ (36.1%) of the charges to pay principal or interest on bonds, notes, or other obligations issued for the purposes of this chapter or lease payments in connection with any bonds, notes, or obligations. It shall not be necessary for any supplier of public drinking water whose rates may be regulated by the public utilities commission, pursuant to chapter 1 of title 39, to obtain approval from the commission for billing of the water quality protection charge. The public utilities commission shall not, in determining rates for any supplier hereunder, consider the funds billed hereunder when determining revenue requirements for the supplier. In no event shall any supplier be responsible to collect or pay more than a single water quality protection charge with respect to water sold by such supplier, whether the date of sale was on, before, or after July 1, 1992.

46-15.3-10 Water quality protection funds. - (a) There are hereby created three (3) water quality protection funds: one of which shall be administered by and be in the custody of the treasurer of the water resources board, one of which shall be administered by and be in the custody of the city of Providence acting through the Providence water supply board, and one of which shall be in the custody of the general treasurer. The first two (2) mentioned funds shall consist of such amounts as the state or the city of Providence may from time to time appropriate, all water quality protection charges other than the ~~seven and eight-tenths~~ six and nine tenths percent ~~(7.8%)~~ (6.9%) and ~~fifty-one and five-tenths~~ fifty seven percent ~~(51.5%)~~ (57.0%) portions referred to in § 46-15.3-9, proceeds from the sale of bonds and notes, as provided in subsection (b) below, and any money which may have been obtained as grants, bequests, donations, gifts, or fines which are intended to be used for purposes consistent with this chapter. This third mentioned fund shall be hereby established as a general revenue receipt account known as the "water resources operating fund".

(2) The general revenue appropriations made available from the general revenue receipts credited to "Water Resources Operating Fund" shall be used for the administration and support of the water resources board.

(b) The water resources board shall borrow money and issue its notes and bonds therefor, for the purposes set forth in this chapter, and pursuant to the authority and the procedures set forth in chapter 15.1 of this title, which shall be secured by pledging or assigning, in whole or in part, the revenues and other monies held or to be deposited in the water quality protection funds and any other revenues derived under this chapter.

(c) Any supplier with its own water quality protection fund may borrow money, and/or issue its bonds or notes therefor, or may lease public facilities or public equipment for the purposes set forth in this chapter. The supplier must secure any borrowings, bonds, notes, or leases by pledging or assigning, in whole or in part, the revenues and other monies held by it in its own water quality protection fund.

(d) All amounts in the water quality protection fund, water quality protection charges, and any other revenues of the water resources board, excluding those deposited as general revenues, received under the provisions of this chapter shall be deemed to be trust funds to be held and applied solely as provided in this chapter and chapter 15.1 of this title.

(e) Any money which may accumulate in the water quality protection funds, which is in excess of that pledged to repayment of outstanding bonds or notes or lease payments or loan repayments at any given time, may be used directly for eligible expenditures from the fund and shall be disbursed for these purposes in accordance with § 46-15.3-11.

SECTION 14. Section 30-25-14 of the General Laws in Chapter 30-25 entitled "Burial of Veterans" is hereby amended to read as follows:

30-25-14 Rhode Island veterans' memorial cemetery.- The Rhode Island veterans' memorial cemetery located on the grounds of the Joseph H. Ladd school in the town of Exeter shall be under the management and control of the director of the department of human services ~~and the assistant director in charge of the division of community services~~. The ~~assistant~~ director of the department of human services ~~in charge of the division of community services~~ shall have the general supervision over and shall prescribe rules for the government and management of the cemetery. He or she shall make all needful rules and regulations governing the operation of the cemetery and generally may do all things necessary to insure the successful operation thereof. The ~~assistant~~ director shall promulgate rules and regulations, not inconsistent with the provisions of 38 USCS 2402, to govern the eligibility for burial in the Rhode Island veterans' memorial cemetery. In addition to all persons eligible for burial pursuant to rules and regulations established by the ~~assistant~~ director, any person who served in the army, navy, air force, or marine corps of the United States for a period of not less than two (2) years and whose service was terminated honorably, shall be eligible for burial in the Rhode Island veterans' memorial cemetery. The director shall appoint and employ all subordinate officials and persons needed for the proper management of the cemetery. National Guard members who are killed in the line of duty or who are honorably discharged after completion of at least twenty (20) years' of service in the Rhode Island National Guard and their spouse shall be eligible for internment in the Rhode Island Veterans' Memorial Cemetery. For the purpose of computing service under this section, honorable service in the active forces or reserves shall be considered toward the twenty (20) years of National Guard service. The general assembly shall make an annual appropriation to the department of human services to provide for the operation and maintenance for the cemetery. The director shall charge and collect a grave liner fee per interment of the eligible spouse and/or eligible dependents of the qualified veteran equal to the Department's cost for the ~~graveliner~~ grave liner.

SECTION 15. Section 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911 Emergency Telephone Number Act' is hereby amended to read as follows:

39-21.1-14 Funding. - (a) A monthly surcharge of ~~forty-seven cents ($.47)~~ one dollar ($1.00) is hereby levied upon each residence and business telephone line or trunk in the state including PBX trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network (such as, but not exclusive of, integrated services digital network (ISDN)), Flexpath or comparable digital private branch exchange, or connecting to or from a customer-based or dedicated telephone switch site (such as, but not exclusive of, a private branch exchange (PBX)), or connecting to or from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system but exclusive of trunks and lines provided to wireless communication companies). The surcharge shall be billed by each telecommunication services provider and shall be payable to the telecommunication services provider by the subscriber of the telecommunication services. A monthly surcharge of ~~forty-seven cents ($.47)~~ one dollar ($1.00) is hereby levied effective ~~September 1, 1997~~ July 1, 2002 on each wireless telecommunication instrument or device which has access to, connects with, or interfaces with the E 9-1-1 Uniform Emergency Telephone System. The surcharge shall be billed by each telecommunication services provider and shall be payable to the telecommunication services provider by the subscriber.

(b) The amount of the surcharge shall not be subject to the tax imposed under chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

(c) Each telephone common carrier and each telecommunication services provider shall establish a special account to which it shall deposit on a monthly basis the amounts collected as a surcharge under this section. In determining the amount collected, the telephone common carrier or telecommunication services provider may include a factor for uncollectable billings computed in accordance with its customary business practice.

(d) The money collected by each telecommunication services provider of wireline communication services shall be transferred within sixty (60) days after its inception of communications services in this state and every month thereafter, to the general treasury, together with the accrued interest and shall be deposited in the general fund as general revenue~~; provided that in FY 1999, $871,025 of the fund's resources shall be provided to the judicial department to fund the state's Justice-Link project~~. The money collected by each telecommunication services provider of wireless communication services shall be transferred within ninety (90) days, after the initial imposition of the surcharge, and every calendar quarter thereafter, to the general treasury with accrued interest and shall be deposited in the general fund as general revenue.

(e) Every billed subscriber-user shall be liable for any surcharge imposed under this section until it has been paid to the telephone common carrier or telecommunication services provider. Any surcharge shall be added to and may be stated separately in the billing by the telephone common carrier or telecommunication services provider and shall be collected by the telephone common carrier or telecommunication services provider.

(f) Each telephone common carrier and telecommunication services provider shall annually provide the E 9-1-1 uniform emergency telephone system division or any other agency that may replace it, with a list of amounts uncollected together with the names and addresses of its subscriber-users who can be determined by the telephone common carrier or telecommunication services provider to have not paid the surcharge.

(g) Included within, but not limited to, the purposes for which the money collected may be used are rent, lease, purchase, improve, construct, maintenance, repair, and utilities for the equipment and site or sites occupied by the E 9-1-1 uniform emergency telephone system; salaries, benefits, and other associated personnel costs; acquisition, upgrade or modification of PSAP equipment to be capable of receiving E 9-1-1 information, including necessary computer hardware, software, and data base provisioning, addressing, and non-recurring costs of establishing emergency services; network development, operation and maintenance; data-base development, operation, and maintenance; on- premise equipment maintenance and operation; training emergency service personnel regarding use of E 9-1-1; educating consumers regarding the operations, limitations, role and responsible use of E 9-1-1; reimbursement to telephone common carriers or telecommunication services providers of rates or recurring costs associated with any services, operation, administration or maintenance of E 9-1-1 services as approved by the division; reimbursement to telecommunication services providers or telephone common carriers of other costs associated with providing E 9-1-1 services, including the cost of the design, development, and implementation of equipment or software necessary to provide E 9-1-1 service information to PSAP's, as approved by the division~~; provided that in FY 1999, $871,025 of the fund's resources shall be provided to the judicial department to fund the state's Justice-Link project~~.

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

(i) Nothing in this section shall be construed to constitute rate regulation of wireless communication services carriers, nor shall this act be construed to prohibit wireless communication services carriers from charging subscribers for any wireless service or feature.

SECTION 16. Sections 20-2-4, 20-2-15, 20-2-16, 20-2-17, 20-2-18, 20-2-35 and 20-2-37 of the General Laws in Chapter 20-2 entitled "Licensing" are hereby amended to read as follows:

20-2-4. Clerk's fee -- Out of the fees paid under the provisions of this chapter for issuance of hunting, other than deer permits pursuant to section 20-2-18, fishing, combination, and non-resident shellfishing licenses, the sum of ~~fifty cents ($.50)~~ one dollar ($1.00) shall be retained by the clerk or agent issuing each license, if this is the case. Out of the fees paid for issuance of deer permits, the sum of fifty cents ($.50) shall be retained by the clerk or agent.

20-2-15. Fresh water fishing license -- (a) (1) Resident- ~~nine dollars and fifty cents ($9.50)~~ eighteen dollars ($18.00).

(2) Nonresident- ~~thirty-one dollars ($31.00)~~ thirty-five dollars ($35.00).

(3) Nonresident tourist- sixteen dollars ($16.00). This license shall entitle the licensee to fish in Rhode Island for three (3) consecutive days including the day of issue.

(b) Fresh water fishing licenses shall expire on the last day of February of each year.

20-2-16. Hunting license -- (a) (1) Resident- ~~nine dollars and fifty cents ($9.50)~~ eighteen dollars ($18.00).

(2) Nonresident-~~forty-one dollars ($41.00)~~ forty-five dollars ($45.00).

(3) Nonresident landowner-a nonresident citizen of the United States and owner of real estate in Rhode Island assessed for taxation at a valuation of not less than thirty thousand dollars ($30,000) may obtain a resident's hunting license.

(4) Shooting preserve-three dollars and fifty cents ($3.50).

(5) Nonresident three (3) day-sixteen dollars ($16.00). This license shall entitle the licensee to hunt in Rhode Island for three (3) consecutive days as validated by the issuing agent.

(b) Hunting licenses shall expire on the last day of February of each year.

20-2-17. Combination fishing and hunting license -- The director may grant to any eligible resident applying for a combination hunting and fishing license a license which shall entitle the licensee to the privileges of both hunting and fishing licenses, for a fee of ~~fifteen dollars and fifty cents ($15.50)~~ thirty-three dollars ($33.00). The license shall expire on the last day of February of each year.

20-2-18. Deer permits -- (a) (1) Resident- ~~seven dollars and fifty cents ($7.50)~~ twelve dollars and fifty cents ($12.50).

(2) Non-resident- twenty-five dollars and fifty cents ($25.50).

(b) A deer permit is good only for the season in which it is issued.

20-2-35. Waterfowl stamp required -- No person sixteen (16) years of age or older shall take or attempt to take any migratory waterfowl without first obtaining a regular hunting license ~~which includes a~~ and a Rhode Island migratory waterfowl stamp for the current year. Each stamp shall be validated by the signature of the licensee written in ink across the face of the stamp and shall not be transferable. The stamp year shall run from July 1 to June 30. The migratory waterfowl stamp shall be available at all outlets currently used for the issuance of a hunting license ~~and shall be issued at the time the hunting license is purchased~~.

20-2-37. Waterfowl stamp fees -- ~~(a)~~ Stamps shall be sold at the direction of the director for a fee of seven dollars and fifty cents ($7.50). The issuing agent may retain a fee of fifty cents ($.50) for each stamp and shall remit seven dollars ($7.00) of each fee to the department. The director shall establish a uniform sale price for all categories of by-products.

(b) The migratory waterfowl stamp shall be issued at no cost to anyone purchasing a regular hunting license. No fee shall be charged for a migratory waterfowl stamp to anyone purchasing a regular hunting license, unless approved by the general assembly. It shall be the responsibility of the department of environmental management to affix the stamps to the affected licenses.

SECTION 17. Chapter 20-2 of the General Laws entitled "Licensing" is hereby amended by adding thereto the following sections:

20-2-18.1. Wild turkey permits. -- No person shall attempt to take any wild turkey without first obtaining a regular hunting license and a turkey permit for the current year. Permits shall be sold at the direction of the director for a fee of seven dollars and fifty cents ($7.50) for residents and twenty dollars ($20.00) for nonresidents. The issuing agent may retain a fee of fifty cents ($.50) for each permit and shall remit seven dollars ($7.00) for resident permits and nineteen dollars and fifty cents ($19.50) for nonresident permits to the department. A wild turkey permit shall be good only for the season in which it is issued. All monies derived from the sale of wild turkey permits shall be expended for turkey habitat acquisition in Rhode Island and wild turkey restoration management and research.

20-2-18.2. Pheasant permits required. - No person shall attempt to take any pheasant without first obtaining a regular hunting license and a pheasant permit for the current year.

20-2-18.3. Pheasant permit fees and bag limits. - Permits shall be sold at the direction of the director for a fee of fifteen dollars and fifty cents ($15.50). The issuing agent will retain a fee of fifty cents ($0.50) for each permit and shall remit fifteen dollars ($15.00) to the department. The permit will allow the person to harvest a daily bag and season limit as described in regulations promulgated by the director. All monies derived from the sale of pheasant permits shall be expended for stocking pheasants and wildlife habitat acquisition in Rhode Island.

20-2-38.1. Grants, donations, gifts. - The director is authorized to accept any grant, devise, bequest, donation, gift or assignment of money, bonds, or other valuable securities for deposit in the waterfowl fund, which may be accepted for specific use(s) which the grant and grantee may jointly identify within the purposes of the waterfowl fund, or for the general purposes of such fund. The director may also accept land as provided in section 20-18-1.

SECTION 18. Section 19-4-6 of the General Laws in Chapter 19-4 entitled "Regulatory Oversight" is hereby amended to read as follows:

19-4-6 Time and frequency of reports of financial institutions and credit unions. - Every financial institution and credit union, at those times that the director or the director's designee shall require, but at least once in each calendar year, shall render a report to the director or the director's designee signed and sworn to by its president or a vice-president and also by its secretary, treasurer, or auditor, and attested by at least three (3) of the members of its board of directors, showing accurately the condition of the financial institution or credit union at the close of business on any past day specified by the director or the director's designee, in the form and containing the information that the director or the director's designee shall require; and the report shall be transmitted to the director or the director's designee within thirty (30) days, exclusive of Sundays and holidays, after the director's request. At the time of filing each report the sum of ~~fifty dollars ($50.00~~) fifty-five dollars ($55.00) shall be paid by the financial institution or credit union to the director to and for the use of the state.

SECTION 19. Sections 19-14-4, 19-14-16, and 19-14-22 of the General Laws in Chapter 19-14 entitled "Licensed Activities" are hereby amended to read as follows:

19-14-4 Annual fee. - (a) Each licensee shall pay an annual license fee as follows:

(1) Each small loan lender license and each branch certificate, the sum of ~~five hundred dollars~~ ~~($500);~~ five hundred fifty dollars ($550.00);

(2) Each loan broker license and each branch certificate, the sum of ~~five hundred dollars ($500)~~; five hundred fifty dollars ($550.00);

(3) Each lender license and each branch certificate, the sum of ~~one thousand dollars ($1,000)~~; one thousand one hundred dollars ($1,100.00);

(4) Each sale of checks license, the sum of three hundred dollars ($300);

(5) Each check cashing license, the sum of three hundred dollars ($300); and

(6) Each electronic money transfer license, the sum of three hundred dollars ($300).

(b) Any licensee who shall not pay the annual fee by March 31 of each year shall be subject to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum of seven hundred fifty dollars ($750). The penalty shall be paid to the director to and for the use of the state. The penalty may be waived for good cause by the director or the director's designee, upon written request.

19-14-16 Surrender of license. - Any licensee may surrender any license or branch certificate(s) by delivering to the director or the director's designee written notice surrendering the license or branch certificate(s). The surrender shall not affect the licensee's civil or criminal liability for acts committed prior to the surrender. Written notice of any surrender must be filed with the director or the director's designee within thirty (30) days of the termination of the business authorized by this chapter at the surrendered location. The surrender of any license does not affect the licensee's requirement to file an annual report with the ~~fifty dollar ($50.00~~) fifty-five dollars ($55.00) filing fee. This report shall be filed within thirty (30) days of the surrender of the license. The licensee shall give written notification to the director or the director's designee within twenty-four (24) hours from termination of business.

19-14-22 Reporting requirements. - (a) Each licensee shall annually on or before March 31 file a report with the director or the director's designee giving any relevant information that the director or the director's designee may reasonably require concerning the business and operations during the preceding calendar year of each licensed place of business conducted by the licensee within the state. The report shall be made under oath and shall be in a form prescribed by the director or the director's designee. At the time of filing each report, the sum of ~~fifty dollars~~ ~~($50.00)~~ fifty-five dollars ($55.00) per license and ~~fifty dollars ($50.00)~~ fifty-five dollars ($55.00) per branch certificate shall be paid by the licensee to the director for the use of the state. Any licensee who shall delay transmission of any report required by the provisions of this title beyond the limit, unless additional time is granted, in writing, for good cause, by the director or the director's designee, shall pay a penalty of twenty-five dollars ($25) for each day of the delay.

(b) Any licensee shall, within twenty-four (24) hours after actual knowledge, notify the director or the director's designee, in writing, of the occurrence of any of the following events: the institution of bankruptcy, receivership, reorganization or insolvency proceedings regarding a licensee, the institution of any adverse government action against a licensee, or any felony indictment or conviction of any licensee or any officers, directors, owners, employees, members or partners thereof, as the case may be.

SECTION 20. Section 3-6-14 of the General Laws in Chapter 3-6 entitled "Manufacturing and Wholesale Licenses" is hereby amended to read as follows:

3-6-14 Certificate of compliance. - (a) As conditions precedent to transporting, or causing to be transported, distilled spirits, malt beverages, and vinous beverages into this state for storage, sale, or consumption in this state, any person, firm, or corporation located in another state shall first obtain a certificate of compliance from the department.

(b) The certificate of compliance shall be issued upon the condition that the holder furnishes from time to time, as the department may require, but in no event more often than once each month, information concerning all shipments or sales of distilled spirits, malt beverages, and vinous beverages made into this state. The holder must also furnish information concerning the brand, type of container, quantity, and other information that may be required by the department. The department is empowered to promulgate any rules and regulations that may be necessary for the enforcement of this subsection.

(c) As a condition precedent to the issuance of and during the term of a certificate, the holder shall comply with the provisions of this title, and all rules and regulations promulgated under authority of this title.

(d) The department may suspend, cancel, or revoke any certificate of compliance for violation of the terms or conditions of the certificate.

(e) The certificate of compliance shall contain on its face a list of those distilled spirits, malt beverages, and vinous beverages transported or caused to be transported into this state by the holder of the certificate.

(f) The annual fee for the certificate of compliance is ~~twenty-five dollars ($25.00)~~ thirty-five dollars ($35.00) for each and every brand, blend, mixture, variety, type, kind, and class of distilled spirits, malt beverages, and vinous beverages. The annual fee, prorated to the year ending December 1st in every calendar year, is paid to the department, and deposited as general revenues. The department may fix a flat fee per gallon instead of the annual fee for any of the above categories where the application for a certificate of compliance contains an affidavit that less than twenty-five (25) gallons of the category involved will be imported during the year for which filed

SECTION 21. Section 23-17-38 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:

23-17-38 Establishment of fees. - The director shall establish fees for licensure application, licensure renewal, inspection, and administrative actions under this chapter. Annual inspection fees for hospitals and rehabilitation hospital centers shall be ~~three thousand dollars ($3,000)~~ thirteen thousand dollars ($13,000) per facility plus an additional fee of ~~fifteen dollars ($15.00)~~ ninety dollars ($90.00) per bed. Annual licensure fees for health maintenance organizations and for profit end stage renal dialysis facilities shall be three thousand dollars ($3,000) per facility. Annual licensure fees for home nursing care providers and home care providers shall be five hundred dollars ($500) per facility. Annual licensure fees for organized ambulatory care facilities shall be five hundred dollars ($500), provided that not-for-profit entities operating more than one ambulatory care facility shall be subject to a single annual licensure fee for all such licenses; provided, further, that non-profit charitable community health centers, school based health centers and nonprofit hospice programs with a current home nursing care provider license shall be exempt from the fee. All annual licensure fees not otherwise designated shall be established in regulation and shall be collected and deposited as general revenues of the state.

SECTION 22. Section 23-17.4-31 of Chapter 23-17.4 of the Rhode Island General Laws entitled "Residential Care and Assisted Living Facility Licensing Act" is hereby amended to read as follows:

23-17.4-31 Establishment of fees. - The director may establish reasonable fees for the licensure application, licensure renewal, and administrative actions under this chapter. Annual licensure fees shall be two hundred and fifty dollars ($250) per licensee plus an additional fee of ~~twenty-two dollars and fifty cents ($22.50)~~ fifty dollars ($50.00) per licensed bed, where applicable. ~~All of these fees shall be collected and deposited in a restricted receipt account that shall be used for the general purposes of the division of facilities regulation within the department of health.~~

SECTION 23. Section 8-18-6 of the General Laws in Chapter 8-18 entitled "State and Municipal Court Compact" is hereby amended to read as follows:

8-18-6. Joint violation fines - Distribution of funds. - Cities or towns with municipal courts shall dedicate four dollars ($4.00) for reimbursement from each summons to the general fund. Cities or towns without a municipal court shall dedicate six dollars ($6.00) for reimbursement from each summons to the general fund. State agencies shall dedicate twenty-two dollars ($22.00) from each summons to the general fund. Provided that cities, towns and state agencies shall also dedicate all revenues generated directly as a result of fee increases effective July 1, 2002 to the general fund.

SECTION 24. Section 27-2.4-4 of the General Laws in Chapter 27-2.4 entitled "Producer Licensing Act" is hereby amended to read as follows:

27-2.4-4 - Fees. (a) Fees required by this chapter ~~are~~ for the period commencing July 1, 2002 and ending on June 30, 2003 shall be as follows:

(1) Initial insurance producer license: ~~$50.00~~ $60.00;

(2) Annual insurance producer renewal: ~~$50.00~~ $60.00;

(3) Annual company contract fee: ~~$25.00~~ $35.00.

(b) Commencing July 1, 2003 the fees shall be as follows:

(1) Initial insurance producer license: $50.00;

(2) Annual insurance producer renewal: $50.00; and

(3) Annual contract fee: $25.00.

(c) The insurance commissioner may by rule or regulation, specify fees for letters of certification, clearance letters, duplicate licenses, and any other fees for service and documents that are reasonably determined by the insurance commissioner.

SECTION 25. Section 27-3.2-9 of the General Laws in Chapter 27-3.2 entitled "Continuing Education Requirements" is hereby amended to read as follows:

27-3.2-9. Fees. (a) Notwithstanding any provision of the general laws to the contrary, there is hereby established a fee of ~~five dollars ($5.00)~~ fifteen dollars ($15.00) per annum for the period commencing July 1, 2002 and ending on June 30, 2003, which shall be paid by all persons licensed pursuant to chapter ~~2.3~~ 27-2.4 of this title, and shall be deposited as general revenues.

(b) Notwithstanding any provision of the general laws to the contrary, for the period commencing July 1, 2003 the fee shall be five dollars ($5.00) per annum, which shall be paid by all persons licensed pursuant to chapter 27-2.4 of this title, and shall be deposited as general revenues.

SECTION 26. Section 31-41.1-4 of the General Laws in Chapter 31-41.1 entitled "Adjudication of Traffic Offenses" is hereby amended to read as follows:

31-41.1-4. Schedule of violations. -- (a) The table below details the penalties for violations of the enumerated sections. However, those offenses for which punishments vary according to the severity of the offense, or which require the violator to perform a service, shall be heard and decided by the traffic tribunal or municipal court. The following violations may be handled administratively through the method prescribed in this chapter. This list is not exclusive, and jurisdiction may be conferred on the traffic tribunal with regard to other violations:

VIOLATIONS SCHEDULE

Section of		Total
General Laws		Fine
8-8.2-2	DOT, DEM, or other agency
	and department violations	~~$50.00~~ $75.00
31-3-12	Visibility of plates	~~50.00~~ 75.00
31-10-32	Notice of change of address	~~50.00~~ 75.00
31-15-9	One way highways	~~50.00~~ 75.00
31-14-3	Condition requiring reduced speed	~~50.00~~ 75.00
31-13-9	Flashing signals	~~50.00~~ 75.00
31-16-5	Turn signal required	~~50.00~~ 75.00
31-16-2	Manner of turning at intersection	~~50.00~~ 75.00
31-21-4	Places where parking or stopping
	prohibited	~~50.00~~ 75.00
31-15-6	Clearance for overtaking	~~50.00~~ 75.00
~~31-25-10~~	~~Fastening of load and covering~~	~~50.00~~
31-24-1	Times when lights required	~~50.00~~ 75.00
	through
31-24-53	Safety lights required on food
	vending vehicles
31-15-4	Overtaking on left	~~50.00~~ 75.00
31-15-5(a)	Overtaking on right	~~50.00~~ 75.00
31-16-6	Time of signaling turn	~~50.00~~ 75.00
31-17-4	Obedience to stop signs	~~50.00~~ 75.00
31-22-9	Throwing debris on highway
	snow removal	~~50.00~~ 75.00
31-17-2	Vehicle turning left	~~50.00~~ 75.00
31-23-15	Rear view mirror	~~50.00~~ 75.00
31-10.1-4	No motorcycle helmet (operator)	~~50.00~~ 60.00
31-10.1-6	No motorcycle helmet (passenger)	~~50.00~~ 75.00
31-15-12	Following too closely	~~50.00~~ 75.00
31-14-9	Below minimum speed	~~50.00~~ 75.00
31-15-3	Operator left of center	~~50.00~~ 75.00
31-15-7	Places where overtaking prohibited	~~50.00~~ 75.00
31-13-4	Obedience to devices	~~50.00~~ 75.00
31-38-3	No inspection sticker	~~50.00~~ 75.00
31-15-16	Use of emergency break-down
	lane for travel	~~50.00~~ 75.00
31-3-18	Display of plates	~~50.00~~ 75.00
31-19-20	Sale of new bicycles	~~50.00~~ 75.00
31-19-21	Sale of used bicycles	~~50.00~~ 75.00
31-27-2.3	Refusal to take preliminary breath
	test	~~50.00~~ 75.00
24-10-20	Park and ride lots	~~50.00~~ 75.00
24-10-17	Soliciting rides in motor vehicles	~~50.00~~ 40.00
24-10-18	Backing up prohibited	~~50.00~~ 75.00
31-3-32	Driving with expired registration	~~50.00~~ 75.00
31-3-34	Failure to notify division of
	change of address	~~50.00~~ 75.00
31-3-35	Notice of change of name	~~50.00~~ 75.00
31-3-40	Temporary plates - dealer issued	~~50.00~~ 75.00
31-4-3	Temporary registration - twenty
	(20) day bill of sale	~~50.00~~ 75.00
~~31-7-1~~	~~Operating on foreign registration~~	~~50.00~~
~~31-8-1~~	~~Operating without evidence of registration~~	~~50.00~~
31-10-10	Rules as to armed forces license	~~50.00~~ 75.00
31-10-30	Driving on expired license	~~50.00~~ 75.00
31-10.1-5	Motorcycle handlebar violation	~~50.00~~ 75.00
31-10.1-7	Inspection of motorcycle required	~~50.00~~ 75.00
31-12-12	Local motor vehicle ordinance	~~50.00~~ 75.00
31-13-6(3)(i)	Eluding traffic light	~~50.00~~ 75.00
31-13-11	Injury to signs or devices	~~50.00~~ 75.00
31-14-1	Reasonable and prudent speed	~~50.00~~ 75.00
31-14-12	Speed limit on bridges and struc-
	tures	~~50.00~~ 75.00
31-15-1	Leaving lane of travel	~~50.00~~ 75.00
31-15-2	Slow traffic to right	~~50.00~~ 75.00
31-15-8	No passing zone	~~50.00~~ 75.00
31-15-10	Rotary traffic islands	~~50.00~~ 75.00
31-15-11	Laned roadway violation	~~50.00~~ 75.00
31-15-12.1	Entering intersection	~~50.00~~ 75.00
31-15-13	Crossing center section of divided
	highway	~~50.00~~ 75.00
31-15-14	Entering or leaving limited access
	roadways	~~50.00~~ 75.00
31-16-1	Care in starting from stop	~~50.00~~ 75.00
31-16-4	U turn where prohibited	~~50.00~~ 75.00
31-16-7	Failure to give stop signal	~~50.00~~ 75.00
31-16-8	Method of giving signals	~~50.00~~ 75.00
31-17-1	Failure to yield right of way	~~50.00~~ 75.00
31-17-3	Yield right of way (intersection)	~~50.00~~ 75.00
31-17-5	Entering from private road or
	driveway	~~50.00~~
31-17-8	Vehicle within right of way, rotary	~~50.00~~ 75.00
31-18-3	Right of way in crosswalks	~~50.00~~ 75.00
31-18-5	Crossing other than at crosswalks	~~50.00~~ 75.00
31-18-8	Due care by drivers	~~50.00~~ 75.00
31-18-12	Hitchhiking	~~50.00~~ 75.00
31-20-2	Driving through railroad gate	~~50.00~~ 75.00
31-20-9	Obedience to stop sign	~~50.00~~ 75.00
31-21-14	Opening of vehicle doors	~~50.00~~ 45.00
31-22-2	Improper backing up	~~50.00~~ 75.00
31-22-4	Overloading vehicle	~~50.00~~ 75.00
31-22-5	Violation of safety zone	~~50.00~~ 75.00
31-22-6	Coasting	~~50.00~~ 75.00
31-22-7	Following fire apparatus	~~50.00~~ 75.00
31-22-8	Crossing fire hose	~~50.00~~ 75.00
31-22-11.5	Improper use of school bus
	- not to exceed	$500
	for each day of improper use
31-22-22(b)	No child restraint	~~50.00~~ 75.00
31-22-22(c)	Child restraint/seat belt but not
	in back seat	~~50.00~~ 75.00
31-22-22(e)	No seat belt - passenger	~~50.00~~ 75.00
31-22-22(f)	No seat belt operator	~~50.00~~ 75.00
31-22-23(a)(2)	Tow trucks - proper identification	~~50.00~~ 275.00
31-22-24	Operation of interior lights	~~50.00~~ 75.00
~~31-22-28~~	~~Transporting animals~~	~~50.00~~
31-23-1~~(b)~~ (d)(2)	U.S. department of transportation
	motor carrier safety rules
	and regulations	~~50.00~~ 125.00
31-23-4	Brake equipment required	~~50.00~~ 75.00
31-23-8	Horn required	~~50.00~~ 75.00
31-23-10	Sirens prohibited	~~50.00~~ 75.00
31-23-13	Muffler required	~~50.00~~ 75.00
31-23-13.1	Altering height or operating a
	motor vehicle with an altered
	height	~~50.00~~ 75.00
31-23-14	Prevention of excessive fumes or
	smoke	~~50.00~~ 75.00
31-23-16	Windshield and window stickers
	(visibility)	~~50.00~~ 75.00
31-23-17	Windshield wipers	~~50.00~~ 75.00
31-23-19	Metal tires prohibited	~~50.00~~ 75.00
31-23-20	Protuberances on tires	~~50.00~~ 75.00
31-23-26	Fenders and wheel flaps required	~~50.00~~ 75.00
31-23-27	Rear wheel flaps on buses, trucks
	and trailers	~~50.00~~ 75.00
31-23-29	Flares or red flag required over
	four thousand pounds (4,000 lbs.)	~~50.00~~ 75.00
~~31-23-38~~	~~Television receivers prohibited~~	~~50.00~~
31-23-40	Approved types of seat belt
	requirements	~~50.00~~ 75.00
31-23-42.1	Special mirror - school bus	~~50.00~~ 75.00
31-23-43	Chocks required (1 pair) - over
	four thousand pounds (4,000 lbs.)	~~50.00~~ 75.00
31-23-45	Tire treads - defective tires	~~50.00~~ 75.00
31-23-47	Slow moving emblem required	~~50.00~~ 75.00
31-23-49	Transportation of gasoline - pas-
	senger vehicle	~~50.00~~ 75.00
31-23-51	Operating bike or motor vehicle
	wearing ear phones (first offense)	~~50.00~~ 60.00
31-24-5	Headlamp required on motorcycle	~~50.00~~ 75.00
31-24-31	Flashing lights - permit required	~~50.00~~ 75.00
31-24-34	Failure to dim lights	~~50.00~~ 75.00
31-24-45	Red flag required, load projecting
	four feet (4') rear	~~50.00~~ 75.00
31-25-3	Maximum width of one hundred
	and two inches (102") exceeded	~~50.00~~ 75.00
31-25-4	Maximum height of one hundred
	sixty-two inches (162") exceeded	~~50.00~~ 75.00
31-25-6	Maximum number and length of
	coupled vehicles	500
31-25-7	Load extending three feet (3')
	front, six feet (6') rear
	exceeded	~~50.00~~ 75.00
31-25-9	Leaking load	~~50.00~~ 75.00
31-25-11	Connections between coupled
	vehicles	~~50.00~~ 75.00
31-25-12	Towing chain, twelve inch (12")
	square flag required	~~50.00~~ 75.00
31-25-12.1	Tow truck - use of lanes (first
	offense)	~~50.00~~ 50.00
~~31-25-13~~	~~Axle load limit~~	~~150~~
31-25-14(d)(1)	Maximum weight and tandem
	axles	~~100~~ 125.00
31-25-14(d)(2)	Maximum weight and tandem
	axles	~~100~~ 125.00
31-25-14(d)(3)	Maximum weight and tandem
	axles	~~100~~ 125.00
31-25-16(c)(1)	Maximum weight shown
	in registration	~~30.00~~ 65.00
	per thousand lbs. overweight
	or portion thereof
31-25-16(c)(2)	Maximum weight shown ) in registration ~~60.00~~ 125.00
	per thousand lbs. overweight or portion thereof
31-25-16(c)(3)	Maximum weight shown in regis-	~~1,000~~ 1,025.00
	plus $125.00 per thousand pounds overweight or portion thereof
31-25-17	Identification of trucks and
	truck-tractors (first offense)	50.00
31-25-24	Carrying and inspection of
	excess load limit	~~150~~ 175.00
31-28-7(b)(4)	Wrongful use of handicapped
	parking placard	~~100~~ 125.00
31-28-7(d)	Handicapped parking space violation
	First offense	~~75.00~~ 100.00
	Second offense	~~150~~ 175.00
	Third and subsequent
	offenses	~~300~~ 325.00
31-28-7.1(e)	Wrongful use of institutional
	handicapped parking placard	~~100~~ 125.00
31-33-2	Failure to file accident report	~~50.00~~ 45.00
31-36.1-17	No fuel tax stamp (out-of-state)	~~50.00~~ 75.00
31-38-4	Violation of inspection laws	~~50.00~~ 75.00
31-45-1	Noise limits	~~50.00~~ 75.00
37-15-7	Littering	~~50.00~~ 55.00
39-12-26	Public carriers violation	~~50.00~~ 75.00
31-45-5	Audio Systems	~~50.00~~ 75.00
31-47.2-6	Heavy-duty vehicle emission
	inspections
	First offense	~~100~~ 125.00
	Second offense	~~500~~ 525.00
	Third and subsequent offenses	~~1,000~~ 1,025.00

SPEEDING

(A) One to ~~fifteen~~ ten miles per	~~$50.00~~ $75.00
hour (1-15 10 mph) in excess of posted speed limit
(B) ~~Sixteen~~ Eleven miles per hour (~~16 mph~~ 11 mph)	~~160.00~~ 185.00
in excess of posted speed limit -	minimum
with a fine of ten dollars ($10.00) per
mile in excess of speed limit shall be assessed.

(b) In addition to any other penalties provided by law, a judge may impose the following penalties for speeding:

(1) For speeds up to and including ~~fifteen miles per hour (15 mph)~~ ten miles per hour (10 mph) over the posted speed limit on public highways, a fine as provided for in subsection (a) for the first offense, ten dollars ($10.00) per mile for each mile in excess of the speed limit for the second offense if within twelve (12) months of the first offense, and fifteen dollars ($15.00) per mile for each mile in excess of the speed limit for the third and any subsequent offense if within twelve (12) months of the first offense. In addition, the license may be suspended up to thirty (30) days.

(2) For speeds in excess of ~~fifteen miles per hour (15 mph)~~ ten miles per hour (10 mph) over the posted speed limit on public highways, a mandatory fine of ten dollars ($10.00) for each mile over the speed limit for the first offense, fifteen dollars ($15.00) per mile for each mile in excess of the speed limit for the second offense if within twelve (12) months of the first offense, and twenty dollars ($20.00) per mile for each mile in excess of the speed limit for the third and subsequent offense if within twelve (12) months of the first offense. In addition, the license may be suspended up to sixty (60) days.

(c) Any person charged with a violation who pays the fine administratively pursuant to chapter 8.2 of title 8 is not subject to any additional costs or assessments, including, but not limited to, the hearing fee established in section 8-18-4 or an assessment for substance abuse prevention.

This Article shall take effect on July 1, 2002.

SECTION 27. Sections 42-28-25 and 42-28-37 of the General Laws in Chapter 42-28 entitled "State Police" are hereby amended to read as follows:

42-28-25. State and municipal police training school established. -- Within the Rhode Island state police there is hereby created and established a state and municipal police training school.

The superintendent of the state police shall have supervision of the state and municipal police training academy and shall establish standards for admission and a course of training. The superintendent shall report to the governor and general assembly a plan for a state and municipal police training academy on or before December 31, 1993. The superintendent shall, in consultation with the police chiefs association and the chairperson of the Rhode Island commission on standards and training make all necessary rules and regulations relative to the admission, education, physical standards and personal character of the trainees and such other rules and regulations as shall not be inconsistent with law.

Applicants to the state and municipal police training academy shall pay an application fee in the amount of ~~twenty-five dollars ($25.00)~~ fifty dollars ($50.00), provided, however, the superintendent may waive such application fee if payment thereof would be a hardship to the applicant.

Trainees shall pay to the division an amount equal to the actual cost of meals consumed at the state police and municipal police training academy and the actual cost of such training uniforms which remain the personal property of the trainees.

All fees and payments received by the division pursuant to this section shall be deposited as general revenues.

42-28-37. Accident reports -- Fee. -- The state police, upon written request, shall furnish to any person involved in an accident or his legal representative a copy of the official state police report of the investigation of the accident. A fee of ~~five dollars ($5.00)~~ ten dollars ($10.00) shall accompany each written request. All fees collected pursuant to this section shall be deposited as general revenues.

SECTION 28. Chapter 8-15 of the General Laws entitled "Court Administration" is hereby amended by adding thereto the following section:

8-15-9.1. Payment by credit card. - (a) The director of the finance section of the state courts shall establish procedures, in conjunction with the state controller and general treasurer, by which court imposed fines and costs may be paid by credit card presented at the offices of the court clerks. These procedures may include the imposition of a surcharge on the credit card user for each transaction. This surcharge shall not exceed the amount charged to the state by the credit card contractor for the corresponding transaction. Nothing contained in this section shall require justices of the peace acting as bail commissioners to accept credit cards during the hours when the clerk's offices are closed.

(b) No person making any payment by credit card shall be relieved from liability for the underlying obligation except to the extent that the state realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the credit card issuer or other guarantor of payment in the credit card transaction, then the underlying obligation shall survive and the state shall retain all remedies for enforcement which would have applied if the credit card transaction had not occurred. No contract may modify the provisions of this subsection.

(c) Credit card account numbers in the possession of a state or local government are confidential and shall not be deemed public records.

SECTION 29. Section 38-2-2 of the General Laws in Chapter 38-2 entitled "Access to Public Records" is hereby amended to read as follows:

38-2-2. Definitions. -- As used in this chapter:

(1) "Agency" or "public body" shall mean any executive, legislative, judicial, regulatory, or administrative body of the state, or any political subdivision thereof; including, but not limited to, any department, division, agency, commission, board, office, bureau, authority, any school, fire, or water district, or other agency of Rhode Island state or local government which exercises governmental functions, any authority as defined in section 42-35-1(b), or any other public or private agency, person, partnership, corporation, or business entity acting on behalf of and/or in place of any public agency.

(2) "Chief administrative officer" means the highest authority of the public body as defined in subsection (a) of this section.

(3) "Public business" means any matter over which the public body has supervision, control, jurisdiction, or advisory power.

(4) (i) "Public record" or "public records" shall mean all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, magnetic or other tapes, electronic data processing records, computer stored data (including electronic mail messages, except specifically for any electronic mail messages of or to elected officials with or relating to those they represent and correspondence of or to elected officials in their official capacities) or other material regardless of physical form or characteristics made or received pursuant to law or ordinance or in connection with the transaction of official business by any agency. For the purposes of this chapter, the following records shall not be deemed public:

(A) (I) All records which are identifiable to an individual applicant for benefits, client, patient, student, or employee, including, but not limited to, personnel, medical treatment, welfare, employment security, pupil records, all records relating to a client/attorney relationship and to a doctor/patient relationship, and all personal or medical information relating to an individual in any files, including information relating to medical or psychological facts, personal finances, welfare, employment security, student performance, or information in personnel files maintained to hire, evaluate, promote, or discipline any employee of a public body; provided, however, with respect to employees, the name, gross salary, salary range, total cost of paid fringe benefits, gross amount received in overtime, and other remuneration in addition to salary, job title, job description, dates of employment and positions held with the state or municipality, work location, business telephone number, the city or town of residence, and date of termination shall be public.

(II) Notwithstanding the provisions of this section, or any other provision of the general laws to the contrary, the pension records of all persons who are either current or retired members of the retirement systems established by the general laws as well as all persons who become members of those retirement systems after June 17, 1991 shall be open for public inspection. "Pension records" as used in this section shall include all records containing information concerning pension and retirement benefits of current and retired members of the retirement systems established in title 8, title 36, title 42, and title 45 and future members of said systems, including all records concerning retirement credits purchased and the ability of any member of the retirement system to purchase retirement credits, but excluding all information regarding the medical condition of any person and all information identifying the member's designated beneficiary or beneficiaries.

(B) Trade secrets and commercial or financial information obtained from a person, firm, or corporation which is of a privileged or confidential nature.

(C) Child custody and adoption records, records of illegitimate births, and records of juvenile proceedings before the family court.

(D) All records maintained by law enforcement agencies for criminal law enforcement and all records relating to the detection and investigation of crime, including those maintained on any individual or compiled in the course of a criminal investigation by any law enforcement agency. Provided, however, such records shall not be deemed public only to the extent that the disclosure of the records or information (a) could reasonably be expected to interfere with investigations of criminal activity or with enforcement proceedings, (b) would deprive a person of a right to a fair trial or an impartial adjudication, (c) could reasonably be expected to constitute an unwarranted invasion of personal privacy, (d) could reasonably be expected to disclose the identity of a confidential source, including a state, local, or foreign agency or authority, or any private institution which furnished information on a confidential basis, or the information furnished by a confidential source, (e) would disclose techniques and procedures for law enforcement investigations or prosecutions, or would disclose guidelines for law enforcement investigations or prosecutions or (f) could reasonably be expected to endanger the life or physical safety of any individual. Records relating to management and direction of a law enforcement agency and records or reports reflecting the initial arrest of an adult and the charge or charges brought against an adult shall be public.

(E) Any records which would not be available by law or rule of court to an opposing party in litigation.

(F) Scientific and technological secrets and the security plans of military and law enforcement agencies, the disclosure of which would endanger the public welfare and security.

(G) Any records which disclose the identity of the contributor of a bona fide and lawful charitable contribution to the public body whenever public anonymity has been requested of the public body with respect to the contribution by the contributor.

(H) Reports and statements of strategy or negotiation involving labor negotiations or collective bargaining.

(I) Reports and statements of strategy or negotiation with respect to the investment or borrowing of public funds, until such time as those transactions are entered into.

(J) Any minutes of a meeting of a public body which are not required to be disclosed pursuant to chapter 46 of title 42.

(K) Preliminary drafts, notes, impressions, memoranda, working papers, and work products; provided, however, any documents submitted at a public meeting of a public body shall be deemed public.

(L) Test questions, scoring keys, and other examination data used to administer a licensing examination, examination for employment or promotion, or academic examinations; provided, however, that a person shall have the right to review the results of his or her examination.

(M) Correspondence of or to elected officials with or relating to those they represent and correspondence of or to elected officials in their official capacities.

(N) The contents of real estate appraisals, engineering, or feasibility estimates and evaluations made for or by an agency relative to the acquisition of property or to prospective public supply and construction contracts, until such time as all of the property has been acquired or all proceedings or transactions have been terminated or abandoned; provided the law of eminent domain shall not be affected by this provision.

(O) All tax returns.

(P) All investigatory records of public bodies, with the exception of law enforcement agencies, pertaining to possible violations of statute, rule, or regulation other than records of final actions taken provided that all records prior to formal notification of violations or noncompliance shall not be deemed to be public.

(Q) Records of individual test scores on professional certification and licensing examinations; provided, however, that a person shall have the right to review the results of his or her examination.

(R) Requests for advisory opinions until such time as the public body issues its opinion.

(S) Records, reports, opinions, information, and statements required to be kept confidential by federal law or regulation or state law, or rule of court.

(T) Judicial bodies are included in the definition only in respect to their administrative function provided that records kept pursuant to the provisions of chapter 16 of title 8 are exempt from the operation of this chapter.

(U) Library records which by themselves or when examined with other public records, would reveal the identity of the library user requesting, checking out, or using any library materials.

(V) Printouts from TELE -- TEXT devices used by people who are deaf or hard of hearing or speech impaired.

(W) All records received by the insurance division of the department of business regulation from other states, either directly or through the National Association of Insurance Commissioners, if those records are accorded confidential treatment in that state. Nothing contained in this title or any other provision of law shall prevent or be construed as prohibiting the commissioner of insurance from disclosing otherwise confidential information to the insurance department of this or any other state or country, at any time, so long as the agency or office receiving the records agrees in writing to hold it confidential in a manner consistent with the laws of this state.

(X) Credit card account numbers in the possession of state or local government are confidential and shall not be deemed public records.

(ii) However, any reasonably segregable portion of a public record excluded by this section shall be available for public inspections after the deletion of the information which is the basis of the exclusion, if disclosure of the segregable portion does not violate the intent of this section.

(5) "Supervisor of the regulatory body" means the chief or head of a section having enforcement responsibility for a particular statute or set of rules and regulations within a regulatory agency.

(6) "Prevailing plaintiff" means and shall include those persons and entities deemed prevailing parties pursuant to 42 U.S.C. section 1988.

SECTION 31. Section 30-24-10 of the General Laws in Chapter 30-24 entitled "Rhode Island Veterans' Home" is hereby amended to read as follows:

30-24-10. Admissible to home -- Fees. -- (a) Any person who has served in the army, navy, marine corps, coast guard, or air force of the United States for a period of ninety (90) days or more and that period began or ended during any foreign war in which the United States shall have been engaged or in any expedition or campaign for which the United States government issues a campaign medal, and who was honorably discharged therefrom, and who shall be deemed to be in need of care provided at the Rhode Island veterans' home, may be admitted to that facility subject to such rules and regulations as shall be adopted by the director of human services to govern the admission of applicants to the facility. Any person who has served in the armed forces of the United States designated herein and otherwise qualified, who has served less than the ninety-day period described herein, and who was honorably discharged from service, and who, as a result of the service, acquired a service-connected disability or disease, may be admitted. No person shall be admitted to the facility unless the person has been accredited to the enlistment or induction quota of the state or has resided in the state for at least two (2) consecutive years next prior to the date of the application for admission to the facility.

(b) (1) The director shall, at the end of each fiscal year, determine the net per diem expenses of maintenance of residents in the facility and shall assess against each resident who has "net income", as defined herein, a fee equal to ninety percent (90%) of the resident's net income, provided that fee shall not exceed the actual cost of care and maintenance for the resident; and provided that an amount equal to twenty percent (20%) of the maintenance fee assessed shall be allocated to and deposited in the veterans' restricted account. For the purposes of this section, "net income" is defined as gross income minus applicable federal and state taxes and minus:

(i) An amount equal to ~~ninety dollars ($90)~~ one hundred sixteen dollars ($116) per month of residency and fifty percent (50%) of any sum received due to wounds incurred under battle conditions for which the resident received the purple heart; and

(ii) The amount paid by a resident for the support and maintenance of his or her spouse, parent(s), minor child(ren), or child(ren) who is/are blind or permanently and totally disabled as defined in title XVI of the Federal Social Security Act, 42 U.S.C. 1381 -- 1383d, subject to a maximum amount to be determined by rules and regulations as shall be adopted by the director.

(2) The fees shall be paid monthly to the home and any failure to make payment when due shall be cause for dismissal from the facility. Prior to dismissal, the resident shall be afforded administrative due process.

(c) Admissions to the veterans' home shall be made without discrimination as to race, color, national origin, religion, sex, disability, assets, or income.

SECTION 30. Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 18, 19, 20, 21, 22, 26, 27, and 30 of this article shall take effect on July 1, 2002. Sections 2, 14, 17, 23, 24, 25, 28 and 29 of this article shall take effect upon passage. Section 16 of this article shall take effect on March 1, 2003 except for the amendment to section 20-2-37 which shall take effect upon passage.

ARTICLE 14 SUB A AS AMENDED

RELATING TO PUBLIC SAFETY

SECTION 1. Section 28-29-2 of the General Laws in Chapters 28-33 entitled "Workers' Compensation - General Provisions" is hereby amended to read as follows:

28-29-2. Definitions. In chapters 29 - 38 of this title, unless the context otherwise requires:

(1) "Department" means the department of labor and training.

(2) "Director" means the director of labor and training or his or her designee unless specifically stated otherwise.

(3) (i) "Earnings capacity" means the weekly straight time earnings which an employee could receive if the employee accepted an actual offer of suitable alternative employment. Earnings capacity can also be established by the court based on evidence of ability to earn, including, but not limited to, a determination of the degree of functional impairment and/or disability, that an employee is capable of employment. The court may, in its discretion, take into consideration the performance of the employee's duty to actively seek employment in scheduling the implementation of the reduction. The employer need not identify particular employment before the court can direct an earnings capacity adjustment. In the event that an employee returns to light duty employment while partially disabled, an earnings capacity shall not be set based upon actual wages earned until the employee has successfully worked at light duty for a period of at least thirteen (13) weeks.

(ii) As used in chapters 29 - 38 of this title, the term "functional impairment" means an anatomical or functional abnormality existing after the date of maximum medical improvement as determined by a medically or scientifically demonstrable finding and based upon the most recent edition of the American Medical Association's Guide to the Evaluation of Permanent Impairment or comparable publications of the American Medical Association.

(iii) In the event that an employee returns to employment at an average weekly wage equal to the employee's pre-injury earnings exclusive of overtime, the employee will be presumed to have regained his/her earning capacity.

(4) "Employee" means any person who has entered into the employment of or works under contract of service or apprenticeship with any employer, except that in the case of a city or town other than the city of Providence it only means that class or those classes of employees that may be designated by a city, town, or regional school district in a manner as provided in this section, to receive compensation under chapters 29 - 38 of this title. Any person employed by the state of Rhode Island, except for sworn employees of the Rhode Island State Police, who is otherwise entitled to the benefits of chapter 45-19 shall be subject to the provisions of chapters 29-38 of title 28 for all case management procedures and dispute resolution for all benefits. It does not include any partner, sole proprietor, independent contractor, or a person whose employment is of a casual nature, and who is employed otherwise than for the purpose of the employer's trade or business, or a person whose services are voluntary or who performs charitable acts, nor does it include the members of the regularly organized fire and police departments of any town or city. Whenever a contractor has contracted with the state, a city, town, or regional school district any person employed by that contractor in work under contract is not deemed an employee of the state, city, town, or regional school district as the case may be. Any person who on or after January 1, 1999, was an employee and became a corporate officer remains an employee, for purposes of these chapters, unless and until coverage under these chapters is waived pursuant to § 28-29-8(b) or § 28-29-17. Any person who is appointed a corporate officer between January 1, 1999 and December 31, 2001, and was not previously an employee of the corporation, will not be considered an employee, for purposes of these chapters, unless that corporate officer has filed a notice pursuant to § 28-29-19(b). In the case of a person whose services are voluntary or who performs charitable acts, any benefit received, in the form of monetary remuneration or otherwise, is reportable to the appropriate taxation authority but is not deemed to be wages earned under contract of hire for purposes of qualifying for benefits under chapters 29 - 38 of this title. Any reference to an employee who had been injured, where the employee is dead, includes a reference to his or her dependents as defined in these chapters, or to his or her legal representatives, or, where he or she is a minor or incompetent, to his or her conservator or guardian. A "seasonal occupation" means those occupations in which work is performed on a seasonal basis of not more than sixteen (16) weeks.

(5) "Employer" includes any person, copartnership, corporation, or voluntary association, and the legal representative of a deceased employer; it includes the state, and the city of Providence. It also includes each city, town, and regional school district in the state and the city of Providence that votes or accepts chapters 29 - 38 of this title in the manner provided in these chapters.

(6) "General or special employer":

(i) A general employer includes, but is not limited to, temporary help companies and employee leasing companies and means a person who, for consideration and in the regular course of its business, supplies an employee with or without vehicle to another person.

(ii) A special employer means a person who contracts for services with a general employer for the use of an employee, a vehicle, or both.

(iii) Whenever there is a general employer and special employer and the general employer supplies to the special employer an employee and the general employer pays or is obligated to pay the wages or salaries of the supplied employee, in that event, notwithstanding the fact that direction and control is in the special employer and not the general employer, the general employer, if he or she is subject to the Workers' Compensation Act or has accepted that act, is deemed to be the employer as set forth in subdivision (5) and both the general and special employer are the employer for purposes of §§ 28-29-17 and 28-29-18.

(7) "Independent contractor" means a person who has filed a notice of designation as independent contractor with the director pursuant to § 28-29-17.1 or as otherwise found by the workers' compensation court.

(8) (i) "Injury" means and refers to personal injury to an employee arising out of and in the course of his or her employment connected with and referable to his or her employment.

(ii) An injury to an employee while voluntarily participating in a private, group, or employer sponsored carpool, vanpool, commuter bus service, or other rideshare program, having as its sole purpose the mass transportation of employees to and from work is not deemed to have arisen out of and in the course of employment. Nothing in this subdivision shall be held to deny benefits under chapters 29 - 38 and chapter 47 of this title to employees such as drivers, mechanics, and others who receive remuneration for their participation in the rideshare program; provided, that the provisions of this subdivision do not bar the right of an employee to recover against an employer and/or driver for tortious misconduct.

(9) "Maximum medical improvement" means a point in time when any medically determinable physical or mental impairment as a result of injury has become stable and when no further treatment is reasonably expected to materially improve the condition. Neither the need for future medical maintenance nor the possibility of improvement or deterioration resulting from the passage of time and not from the ordinary course of the disabling condition, nor the continuation of a pre-existing condition shall preclude a finding of maximum medical improvement. A finding of maximum medical improvement by the workers' compensation court may be reviewed only where it is established that an employee's condition has substantially deteriorated or improved.

(10) "Physician" means medical doctor, surgeon, dentist, licensed psychologist, chiropractor, osteopath, podiatrist, or optometrist, as the case may be.

(11) "Suitable alternative employment" means employment or an actual offer of employment which the employee is physically able to perform and will not exacerbate the employee's health condition and which bears a reasonable relationship to the employee's qualifications, background, education, and training. The employee's age alone is not considered in determining the suitableness of the alternative employment.

SECTION 2. Section 45-19-1 of the General Laws in Chapter 45-19 entitled "Relief of Injured and Deceased Fire Fighters and Police Officers" is hereby amended to read as follows:

45-19-1 Salary payment during line of duty illness or injury. - (a) Whenever any police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal of any city, town, fire district, or the state of Rhode Island is wholly or partially incapacitated by reason of injuries received or sickness contracted in the performance of his or her duties, the respective city, town, or fire district, or state of Rhode Island by which the police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, is employed, shall, during the period of the incapacity, pay the police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, the salary or wage and benefits to which the police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, would be entitled had he or she not been incapacitated, and shall pay the medical, surgical, dental, optical, or other attendance, or treatment, nurses, and hospital services, medicines, crutches, and apparatus for the necessary period, except that if any city, town, fire district, or the state of Rhode Island provides the police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, with insurance coverage for the related treatment, services, or equipment, then the city, town, fire district, or the state of Rhode Island is only obligated to pay the difference between the maximum amount allowable under the insurance coverage and the actual cost of the treatment, service, or equipment. In addition, the cities, towns, fire districts, or the state of Rhode Island shall pay all similar expenses incurred by a member who has been placed on a disability pension and suffers a recurrence of the injury or illness that dictated his or her disability retirement.

(b) As used in this section, "police officer" means and includes any chief or other member of the police department of any city or town regularly employed at a fixed salary or wage and any executive high sheriff, sheriff, or deputy sheriff, member of the fugitive task force, or capitol police officer.

(c) As used in this section, "fire fighter" means and includes any chief or other member of the fire department or rescue personnel of any city, town, or fire district, and any person employed as a member of the fire department of the town of North Smithfield, or fire department or district in any city or town.

(d) As used in this section, "crash rescue crewperson" means and includes any chief or other member of the emergency crash rescue section, division of airports, or department of transportation of the state of Rhode Island regularly employed at a fixed salary or wage.

(e) As used in this section, "fire marshal," "chief deputy fire marshal", and "deputy fire marshal" mean and include the fire marshal, chief deputy fire marshal, and deputy fire marshals regularly employed by the state of Rhode Island pursuant to the provisions of chapter 28.2 of title 23.

(f) Any person employed by the state of Rhode Island, except for sworn employees of the Rhode Island State Police, who is otherwise entitled to the benefits of chapter 45-19 shall be subject to the provisions of chapters 29-38 of title 28 for all case management procedures and dispute resolution for all benefits.

SECTION 3. The provisions of this article shall be given retroactive as well as prospective effect and shall apply to all cases pending upon the effective date of this article and this article shall take effect upon passage.

ARTICLE 15 SUB A

RELATING TO LABOR AND LABOR RELATIONS

SECTION 1. Section 28-9.3-9 of the General Laws in Chapter 28-9.3 entitled "Certified School Teachers' Arbitration" is hereby amended to read as follows:

28-9.3-9. Unresolved issues submitted to mediation or arbitration. -- (a) In the event that the negotiating or bargaining agent and the school committee are unable, within thirty (30) days from and including the date of their first meeting, to reach an agreement on a contract, either of them may request mediation and conciliation upon any and all unresolved issues by the director of labor and training or from any other source. If mediation and conciliation fail or are not requested, at any time after the thirty (30) days either party may request that any and all unresolved issues shall be submitted to arbitration by sending the request by certified mail postage prepaid to the other party, setting forth the issues to be arbitrated.

(b) In the event that the negotiating or bargaining agent and the school committee are unable to reach an agreement on a contract thirty (30) days before the last day on which money can be appropriated by the city and town to cover the first year of the contract period, then any and all unresolved issues shall be submitted to the director of labor and training for compulsory mediation until the date upon which the money is scheduled to be appropriated. The director of labor and training or his designee may waive this requirement upon the mutual agreement of the parties.

(c) In the event that the negotiating or bargaining agent and the school committee are unable to reach an agreement on a contract within ten (10) days of the scheduled close of school in June of the last year of the contract in effect, any and all unresolved issues shall be submitted to the director of labor and training for compulsory mediation.

(d) If the parties cannot mutually agree upon a mediator within twenty-four (24) hours, the director of labor and training shall select a mediator from a panel previously established by the director comprised of persons knowledgeable in the field of labor management relations to mediate the dispute. The department of labor and training is empowered to compel the attendance of all the parties to any and all meetings it deems necessary until the dispute is resolved.

(e) For Aany mediation pertaining to unresolved issues that are submitted to compulsory mediation between the negotiating or bargaining agent and the school committee, pursuant to the provisions of this section, the state shall pay up to $5,000 of the cost of the mediation expenses. Any costs above $5,000 shall be shared equally between the bargaining unit and the school committee. ~~shall be conducted at no expense to the parties to the mediation.~~

SECTION 2. This article shall take effect upon passage.

ARTICLE 16 SUB A AS AMENDED

RELATING TO TAXATION

SECTION 1. Chapter 27-3 of the General Laws entitled "Agents, Brokers, and Solicitors" is hereby amended by adding thereto the following section:

27-3-38.1. Insurance independently procured - Duty to report and pay tax. - (a) Each insured in this state who procures or continues or renews insurance with an insurer not licensed to do an insurance business in this state on properties, risks or exposures located or to be performed in whole or in part in this state, other than insurance procured through a surplus lines licensee, shall, within thirty (30) days, after the date the insurance was so procured, continued or renewed, file a written report with the tax administrator, upon forms prescribed by the tax administrator, showing the name and address of the insured or insured's, name and address of the insurer, the subject of the insurance, a general description of the coverage, the amount of premium currently charged and additional pertinent information reasonably requested by the tax administrator.

For the purposes of this subsection, properties, risks or exposures only partially located or to be performed in this state, which are covered under a multi-state policy placed by a surplus lines licensee in another state, shall be deemed to be insurance independently procured unless the insurer is licensed to do business in this state.

(b) Gross premiums charged for the insurance, less any return premiums, are subject to a tax at the rate of three percent (3%). At the time of filing the report required in subsection (a) of this section, the insured shall file with the tax administrator, in the form that he or she may prescribe, a return under oath or affirmation containing information that may be deemed necessary for the determination of the tax imposed by this section. The insured shall at the same time pay the tax due to the tax administrator.

(c) If an independently procured policy covers properties, risks or exposures only partially located or to be performed in this state, the tax payable by the insured shall be computed on the portion of the premium properly attributable to the properties, risks or exposures located or to be performed in this state.

(d) This section does not abrogate or modify Rhode Island general laws section 27-16-1 et seq. (Unauthorized Insurance Business), or any other provision of title 27.

SECTION 2. Section 44-22-1.1 of the General Laws in Chapter 44-22 entitled "Estate and Transfer Taxes - Liability and Computation" is hereby amended to read as follows:

44-22-1.1. Tax on net estate of decedent.--(a)(1) For decedents whose death occurs on or after January 1, 1992, but prior to January 1, 2002, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. section 2011.

(2) For decedents whose death occurs on or after January 1, 2002, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. Section 2011 as it was in effect as of January 1, 2001, provided, however, any scheduled increase in the unified credit provided in 26 U.S.C. Section 2010 in effect on January 1, 2001, or thereafter, shall not apply.

(b) If the decedent's estate contains property having a tax situs not within the state, then the tax determined by this section is reduced to an amount determined by multiplying the tax by a fraction whose numerator is the gross estate excluding all property having a tax situs not within the state at the decedent's death and whose denominator is the gross estate. In determining the fraction, no deductions are considered and the gross estate is not reduced by a mortgage or other indebtedness for which the decedent's estate is not liable.

(c)(1) The terms "gross estate" or "federal gross estate" used in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context in the laws of the United States, unless a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq.

(2) For decedents whose death occurs on or after January 1, 2002 the terms "gross estate" or "federal gross estate" used in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context in the laws of the United States, unless a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 1954, 26 U.S.C. Section 1 et seq., as they were in effect as of January 1, 2001.

(d) All values are as finally determined for federal estate tax purposes.

(e) Property has a tax situs within the state of Rhode Island:

(1) If it is real estate or tangible personal property and has actual situs within the state of Rhode Island; or

(2) If it is intangible personal property and the decedent was a resident.

SECTION 3. Title 44 of the General Laws entitled "Taxation" is hereby amended by adding the following chapter:

CHAPTER 61

RELATING TO DEPRECIATION OF ASSETS AND NET OPERATING LOSS DEDUCTION

44-61-1. Depreciation of assets. - (a) For purposes of depreciation of assets under chapters 11, 14 and 30 of title 44, the bonus depreciation provided by the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) for federal tax purposes shall not be allowed for Rhode Island tax purposes. In the year that such assets are placed in service and in all subsequent years, depreciation for Rhode Island tax purposes shall be allowed on such assets as it would have been computed prior to the enactment of the Job Creation and Worker Assistance Act of 2002.

(b) The gain resulting from any subsequent disposition of such asset(s) shall be computed using a basis consistent with the Rhode Island depreciation allowed under subsection (a).

SECTION 4. Chapter 30 of Title 44 of the General Laws entitled "Personal Income Tax" is hereby amended by adding the following section:

44-30-2.8. Net operating loss deduction. - For purposes of net operating losses under chapter 30 of title 44, the five (5) year carryback provision provided by the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) for federal tax purposes shall not be allowed for Rhode Island tax purposes.

SECTION 5. In the event that the United States Congress passes legislation that provides this state with full federal reimbursement for the tax losses incurred by the provisions of the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147), relating to bonus depreciation and/or five (5) year carryback of net operating losses, then the respective chapter and/or section of this article to which the reimbursement applied shall be repealed in its entirety.

SECTION 6. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby amended by adding thereto the following section:

44-30-87.1. Net operating loss - Limitation. - A net operating loss deduction shall be allowed which shall be the same as the net operating loss deduction allowed under section 172 of the Internal Revenue Code [26 U.S.C.], except that (1) any net operating loss included in determining such deduction shall be adjusted to reflect the modifications increasing and decreasing adjusted gross income required by sections 44-30-12 and 44-30-32; (2) such deduction shall not include any net operating loss sustained during any taxable year beginning in which the taxpayer was not subject to the tax imposed by this chapter; and (3) such deduction shall not exceed the deduction for the taxable year allowable under section 172 of the Internal Revenue Code [26 U.S.C.], provided, however, notwithstanding any other provision of law such deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the number of succeeding taxable years allowed under section 172 of the Internal Revenue Code [26 U.S.C.].

SECTION 7. Section 44-18-7 of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes - Liability and Computation" is hereby amended to read as follows:

44‑18‑7. Additional definitions.‑‑(a)"Hotel" means every building or other structure kept, used, maintained, advertised as or held out to the public to be a place where living quarters are supplied for pay to transient or permanent guests and tenants and includes a motel.

(b) "Living quarters" means sleeping rooms, sleeping or housekeeping accommodations, or any other room or accommodation in any part of the hotel, rooming house or tourist camp which is available for or rented out for hire in the lodging of guests.

(c) "Rooming house" means every house, boat, vehicle, motor court or other structure kept, used, maintained, advertised or held out to the public to be a place where living quarters are supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings.

(d) "Sales" means and includes:

(1) Any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means of tangible personal property for a consideration. "Transfer of possession," "lease," or "rental" includes transactions found by the tax administrator to be in lieu of a transfer of title, exchange, or barter.

(2) The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting.

(3) The furnishing and distributing of tangible personal property for a consideration by social, athletic, and similar clubs and fraternal organizations to their members or others.

(4) The furnishing, preparing, or serving for a consideration of food, meals, or drinks, including any cover, minimum, entertainment, or other charge in connection therewith.

(5) A transaction whereby the possession of tangible personal property is transferred but the seller retains the title as security for the payment of the price.

(6) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate commerce, of tangible personal property from the place where it is located for delivery to a point in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of the property for a consideration.

(7) A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or any publication.

(8) The furnishing and distributing of electricity, natural gas, artificial gas, steam, refrigeration, and water.

(9)(a) The furnishing for consideration of telecommunications service which includes local exchange service, intrastate toll service, interstate and international toll service, including cellular mobile telephone or telecommunications service, specialized mobile radio and pagers and paging service including any form of mobile two‑way communication and including the furnishing, rental or leasing of all equipment or services pertaining or incidental thereto, provided such service is: rendered in its entirety within this state, originated in this state and terminated in another state or a foreign country and with respect to which such service is charged to a telephone number, customer or account located in this state or to the account of any transmission instrument in this state, originated in another state or a foreign country and terminated in this state and is charged to a telephone number, customer or account located in this state at which such service is terminated, or to the account of any transmission instrument in this state at which such service is terminated, provided, however, that such service shall not include receipts except as otherwise provided in sections 44‑18‑8 and 44‑18‑12. Telecommunications service shall not include service rendered using a prepaid telephone calling arrangement.

(b) Notwithstanding the provisions of subsection (a), in accordance with the Mobile Telecommunications Sourcing Act (4 USC 116-126), subject to the specific exemptions described in 4 USC 116(c), and the exemptions provided in R.I. General Laws sections 44-18-8 and 44-18-12, mobile telecommunications services that are deemed to be provided by the customer's home service provider are subject to tax under this chapter if the customer's place of primary use is in this state regardless of where the mobile telecommunications services originate, terminate or pass through. Mobile telecommunications services provided to a customer, the charges for which are billed by or for the customer's home service provider, shall be deemed to be provided by the customer's home service provider. For the purposes of this subsection:

(1) "Customer" means either (a) a person or entity that contracts with a home service provider for mobile telecommunications services or (b) if the end user of mobile telecommunications services is not the contracting party, the end user of the mobile telecommunication service, but this clause applies only for the purpose of determining the place of primary use. Customer does not include a reseller of mobile telecommunications services or a serving carrier that is under an arrangement to serve the customer outside the home service provider's licensed service area.

(2) "Home service provider" means a facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

(3) "Mobile telecommunications service" means commercial mobile radio service as defined in section 20.3 of title 47 of the Code of Federal Regulations in effect on June 1, 1999.

(4) "Place of primary use" means the street address representative of where the customer's use of the mobile telecommunications service primarily occurs, which must be (i) the residential street address or the primary business street address of the customer; and (ii) within the licensed service area of the home service provider.

(c) All other definitions and provisions of the Mobile Telecommunications Act as provided in Title 4, Sections 116-126 of the United States Code are adopted.

(10) The furnishing of service for transmission of messages by telegraph, cable or radio and the furnishing of community antenna television subscription television and cable television services.

(11) The rental of living quarters in any hotel, rooming house or tourist camp.

(12) The transfer for consideration of prepaid telephone calling arrangements and the recharge of prepaid telephone calling arrangements. If the transfer or recharge of a prepaid telephone calling arrangement does not take place at a vendor's place of business, the transfer or recharge shall be conclusively determined to take place at the customer's shipping address, or if there is no item shipped, at the customer's billing address or the location associated with the customer's mobile telephone number. "Prepaid telephone calling arrangement" means and includes a prepaid telephone calling card and/or the right to exclusively purchase telecommunications services, that must be paid for in advance, that enables the origination of calls using an access number and/or authorization code, whether manually or electronically dialed.

(e) "Tourist camp" means a place where tents or tent houses, or camp cottages, or cabins or other structures are located and offered to the public or any segment thereof for human habitation.

SECTION 8. Section 44-13-10 of the General Laws in Chapter 44-13 entitled "Public Service Corporation Tax" is hereby amended to read as follows:

44-13-10. Apportionment of earnings from business partially within state.--In the case of every corporation carrying on business both within and without this state its entire gross earnings from its operation for the preceding calendar year, or for the portion of such year that such corporation has carried on business within this state, shall be apportioned to this state as follows:

(1) In the case of an express corporation carrying on its business on steamboats, steam or electric railroads, or street railways, and in the case of a corporation the principal business of which is a steamboat or ferryboat business as a common carrier, the total amount of gross earnings from all sources within this state for the calendar year or portion thereof next preceding;

(2) In the case of a common carrier steam or electric railroad or street railway corporation such a proportion as the total mileage of tracks operated by such corporation for steam or electric railroad or street railway purposes within this state, exclusive of sidings and turnouts, on December 31^st next preceding, bears to the total mileage of such tracks then operated by said corporation for such purposes, both within and without this state;

(3) in the case of any corporation operating as a common carrier dining, sleeping, chair, or parlor cars, but not in the case of such a public steam or electric railroad or street railway corporation operating such cars as a part of or incidental to its railroad or railway business within this state, such a proportion as the number of miles such cars were operated in this state during the year ending December 31^st next preceding bears to the total number of miles such cars were then operated for such purposes both within and without this state;

(4) In the case of a public service telegraph, cable, or telecommunications corporation or corporation which is manufacturing, selling, distributing and/or transmitting to the public currents of electricity to be used for light, heat, or motive power, the total amount of gross earnings within this state for the calendar year; provided, however, that gross earnings from providing mobile telecommunications services shall be apportioned to this state where the customer's primary place of use, as determined in accordance with the mobile Telecommunications Sourcing Act (4 USC 116-126), is within this state.

(5) In the case of a corporation the principal business of which is manufacturing, selling, and/or distributing to the public illuminating or heating gas or water, such a proportion as the total miles of mains or wires operated by such corporation within this state on December 31^st next preceding bears to the total mileage of such mains or wires then operated by such corporation both within and without this state;

(6) In any case to which these proportions are not equitably applicable, in such proportion as is equitable.

SECTION 9. If a court of competent jurisdiction enters a final judgment on the merits that: (1) is based on federal law; (2) that is no longer subject to appeal; and (3) that invalidates Sections 116 to 126, inclusive, of Title 4 of the United States Code, then subsection 44-18-7(9)(a) shall apply to the sales taxation of mobile telecommunications services that are rendered on or after the date of entry of such judgment.

SECTION 10. Section 31-34.1-2 of the General Laws in Chapter 31-34.1 entitled "Rental Vehicle Surcharge" is hereby amended to read as follows:

31-34.1-2. Rental vehicle surcharge. -- (a) Each rental company shall collect, on each rental contract and at the time a motor vehicle is rented in this state, a surcharge equal to six percent (6.0%) of gross receipts per vehicle for each of the first ~~ten (10)~~ thirty (30) consecutive days. The surcharge shall be computed prior to the assessment of any applicable sales taxes, but is subject to the sales tax.

(b) The surcharge shall be included on the rental contract and collected in accordance with the terms of it. Fifty percent (50%) of the surcharge shall be retained by the rental company, and fifty percent (50%) shall be remitted to the state for deposit in the general fund. This remittance shall be made on a quarterly basis in accordance with a schedule adopted by the tax administration. Each rental company collecting and retaining surcharge amounts may reimburse itself from the funds retained for the total amount of motor vehicle licensing fees, title fees, registration fees, and transfer fees paid to the state, and for excise taxes imposed upon the rental companies' motor vehicles during the prior calendar year. However, rental companies shall not be authorized to reimburse themselves unless these fees and taxes have been assessed and paid in full to the state or appropriate city or town prior to any reimbursement. No reimbursement is allowed upon the prepayment of any fees or excise taxes.

(c) At a date to be set by the state tax administrator, but not later than February 15th of any calendar year, each rental company, in addition to filing a quarterly remittance form, shall file a report with the state tax administrator on a form prescribed by him or her, stating the total amount of motor vehicle licensing, transfer, title, and registration fees and excise taxes paid by the rental company in the previous year. The amount, if any, by which the surcharge collections exceed the amount of fees and taxes paid shall be remitted by the rental company to the state for deposit in the general fund.

SECTION 11. Sections 44-2-12, 44-20-12.1, and 44-20-13 of the General Laws in Chapter 44-20 entitled "Cigarette Tax" are hereby amended to read a follows:

44-20-12 Tax imposed on cigarettes sold. - A tax is imposed on all cigarettes sold or held for sale in the state by any person, the payment of the tax to be evidenced by stamps affixed to the packages containing the cigarettes and as required by the administrator. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of ~~fifty (50)~~ sixty-six (66) mills for each cigarette. The tax shall further increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each cigarette on July 1, 2004 and each July 1 thereafter through July 1, 2008.

44-20-12.1 ~~Cigarette floor stock tax~~. Floor stock tax on cigarettes and stamps. - (a) Whenever used in this section, unless the context requires:

(1) "Cigarette" means and includes any cigarette as defined in § 44-20-1(2);

(2) "Person" means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association however formed.

(b) Each person engaging in the business of selling cigarettes at ~~wholesale or~~ retail in this state pays a tax or excise to the state for the privilege of engaging in that business during any part of the calendar years ~~2001~~ 2003 through 2008. ~~The tax is measured by the number of cigarettes held by the person in this state at 12:01 a.m. on July 1, 2001 and is computed at the rate of fourteen and one-half (14.5) mills per cigarette.~~ In calendar years 2003 through 2008, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on each July 1 and is computed at the rate of 9 mills for each cigarette on July 1, 2003 and is computed at the rate of 5 mills for each cigarette on July 1, 2004, and each July 1 thereafter through July 1, 2008.

(c) Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in business during any part of the calendar years 2002 through 2008. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by section 44-20-28. In calendar year 2002 the tax is measured by the number of stamps, as defined in subsection 44-20-1(10), whether affixed or to be affixed, held by the distributor at 12:01 a.m. on May 1, 2002 and is computed at the rate of 16 mills per cigarette in the package to which the stamps are affixed or to be affixed. In calendar years 2003 through 2008 the tax shall be measured by the number of stamps, as defined in section 44-20-1(10), whether affixed or to be affixed, held by the distributor at 12:01 a.m. on each July 1, and is computed at the rate of 9 mills per cigarette in the package to which the stamps are affixed or to be affixed on July 1, 2003, and computed at the rate of 5 mills per cigarette in the package to which the stamps are affixed or to be affixed on each July 1 thereafter through July 1, 2008.

~~(c)~~ (d) Each person subject to the payment of the tax imposed by this section shall, on or before ~~July 16, 2001~~ June 17, 2002, July 16, 2003 and each July 16 thereafter through July 16, 2008, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes or stamps in that person's possession in this state at 12:01 a.m. on ~~July 1, 2001~~ May 1, 2002, July 1, 2003 and each July 1 thereafter through July 1, 2008, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.

~~(d)~~ (e) The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

44-20-13 Tax imposed on unstamped cigarettes. - A tax is imposed at the rate of ~~fifty (50)~~ sixty-six (66) mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. The tax shall further increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each cigarette on July 1, 2004, and each July 1 thereafter through July 1, 2008.

SECTION 12. Section 44-25-1 of the General Laws in Chapter 44-25 entitled "Real Estate Conveyance Tax" is hereby amended to read as follows:

44-25-1. Tax imposed -- Payment -- Burden. -- (a) There is imposed, on each deed, instrument, or writing by which any lands, tenements, or other realty sold is granted, assigned, transferred, or conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or her or their direction, when the consideration paid exceeds one hundred dollars ($100), a tax at the rate of ~~one dollar and forty cents ($1.40)~~ two dollars ($2.00) for each five hundred dollars ($500) or fractional part of it which is paid for the purchase of the property (inclusive of the value of any lien or encumbrance remaining at the time of sale), which tax is payable at the time of making, execution, delivery, acceptance or presenting for recording of the instrument. In the absence of an agreement to the contrary, the tax shall be paid by the grantor.

(b) In the event no consideration is actually paid for the lands, tenements, or realty, the instrument of conveyance shall contain a statement to the effect that the consideration is such that no documentary stamps are required.

(c) The tax administrator contributes to the distressed community relief program the sum of thirty cents ($.30) per ~~one dollar and forty cents ($1.40)~~ two dollars ($2.00) of the face value of the stamps to be distributed pursuant to section 45-13-12. The state shall retain sixty cents ($.60) for state use. The balance of the tax is retained by the municipality collecting the tax.

SECTION 13. Sections 1, 5, and 10 of this article shall take effect upon passage. Section 2 of this article shall take effect upon passage and shall apply to persons who have died on or after January 1, 2002. Section 3 shall take effect upon passage and apply to assets acquired after September 10, 2001 and before September 11, 2004, and Section 4 shall take effect upon passage and apply to taxable years ending in 2001 and 2002. Section 6 of this article shall take effect upon passage and apply to losses incurred for taxable years beginning on or after January 1, 2002. Sections 7, 8 and 9 shall take effect on August 2, 2002. Section 11 shall take effect upon passage and be retroactive to May 1, 2002. Section 12 shall take effect on July 1, 2002.

ARTICLE 17 SUB A AS AMENDED

RELATING TO SINKING FUND

SECTION 1. Section 35-8-11 of the General Laws in Chapter 35-8 entitled "Bonded Indebtedness of State" is hereby amended to read as follows:

35-8-11. Payments into sinking funds. -- In fiscal year 2000, and each subsequent fiscal year, there shall be appropriated a sum at least equal to the total of the following: the sinking fund commission's estimate of savings generated for that fiscal year from the commission's prior fiscal years' refinancing of debt; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the debt retired by the commission in prior fiscal year; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the general obligation debt not issued in accordance with section 35-8-6.2 in prior fiscal year; and the total interest generated by the proceeds of general obligation bond, net of the arbitrage rebate for that year, as estimated by the Revenue Estimating Conference. Payments into the sinking fund shall also include those received pursuant to section 42-116-25, net of costs incurred by the department or agency assuming management of the assets of the Depositors' Economic Protection Corporation, which shall not be subject to annual appropriation.

In fiscal years 2001 ~~and~~, 2002, and 2003, there shall be appropriated a sum at least equal to the total of the following: the sinking fund commission's estimate of savings generated for that fiscal year from the commission's prior fiscal years' refinancing of debt; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the debt retired by the commission in prior fiscal year; and the sinking fund commission's estimate of the total debt service payments, principal and interest, of the general obligation debt not issued in accordance with section 35-8-6.2 in prior fiscal year.

SECTION 2. In FY 2002 the balance of the sinking fund, estimated to be $518,189, shall be transferred from the sinking fund to the general fund.

SECTION 3. Section 42-116-25.1 of the General Laws in Chapter 42-116 entitled "Rhode Island Depositors Economic Protection Corporation" is hereby amended to read as follows:

42-116-25.1. Defeasance of corporation bonds. -- Upon final defeasance of all corporation bonds, forty-six million seven hundred thousand dollars ($46,700,000) ~~the initial forty-two million two hundred thousand dollars ($42,200,000) of~~ corporation proceeds from all sources proceeds from all sources when made available by the corporation shall be paid to the general fund on a quarterly basis. All additional corporate proceeds shall be paid to the sinking fund on a quarterly basis.

SECTION 4. Chapter 55 of the Public Laws of 2000 in Article 5, Section 8 entitled "Sale of bonds" and Article 5, Section 10 entitled "Investment of moneys in fund" is hereby amended as follows:

Section 8. For the fiscal years FY 2001, FY 2002, and FY 2003, any premium and accrued interest which may be received on the sale of the capital development bonds shall become part of the general fund of the state and shall be applied to the payment of debt service charges of the state.

Section 10. Investment of moneys in fund. For the fiscal years FY 2001, FY 2002 and FY 2003, all moneys in the capital development funds not immediately required for payment pursuant to the provisions of this act may be invested by the investment commission, as established by Chapter 35-10, pursuant to the provisions of such chapter; provided, however, that the securities in which the capital development fund is invested shall remain a part of the capital development fund until exchanged for other securities; and provided further, that the income from investments of the capital development fund shall become a part of the general fund of the state and shall be applied to the payment of debt service charges of the state, or to the extent necessary, to rebate to the United States treasury any income from investments (including gains from the disposition of investments) of proceeds of bonds to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds from federal income taxation.

SECTION 5. This article shall take effect on July 1, 2002.

ARTICLE 18 SUB A AS AMENDED

RELATING TO EDUCATION AID

SECTION 1. Sections 16-7.1-2, 16-7.1-5, 16-7.1-6, 16-7.1-8, 16-7.1-10, 16-7.1-15, 16-7.1-16, and 16-7.1-19 of the General Laws in Chapter 16-7.1 entitled "The Rhode Island Student Investment Initiative" are hereby amended to read as follows:

16-7.1-2. Accountability for student performance. -- (a) The board of regents shall adopt and publish statewide standards of performance and performance benchmarks in core subject areas to include writing and mathematics (grades four (4), eight (8), and ten (10)). These standards and performance benchmarks shall be ratified by the board and implemented, and performance standards and performance benchmarks for reading in two (2) grades shall be added.

(b) Districts and schools need to be held accountable for student performance results. Therefore, every school district receiving state education aid under this title shall develop a district strategic plan. The district strategic plan shall: (1) be based on high academic standards for student performance consistent with the statewide standards and benchmarks; (2) be the product of a shared community wide process which defines a vision of what students should know and be able to do; (3) address the needs of each school in the district; (4) encourage the development of school-based improvement planning and implementation; (5) include a process for mentoring of new teachers; (6) be designed to improve student achievement with emphasis on closing the performance gaps among groups of students such as the performance gaps correlated with poverty, gender, language background, and disability; (7) include establishment of student intervention teams to address the instructional needs of diverse learners, include high standards of student behavior designed to create an orderly educational environment with due regard for the rights of students, and an asset protection plan; and (8) be consistent with Rhode Island's comprehensive education strategy. In order to assure the most efficient use of resources implementing strategic plans, districts and schools are encouraged to work together as consortia and as part of the regional collaboratives.

(c) The strategic plan shall include strategies to improve the performance of students in mathematics, reading, and writing. Each plan must describe a scientific research based, as described in the "No Child Left Behind Act of 2001, Title 1, Part B, Section 1208" reading instruction to improve the reading skills of all students in the early grades (kindergarten through grade three) that is aligned with the regents reading policy. The district must develop, implement and evaluate a Personal Literacy Program for each student in these grades who is performing below grade level. These strategies shall be based on the adequate yearly progress expected for students and schools. Annual performance targets for determining whether schools and districts have made adequate yearly progress will be set by the commissioner of elementary and secondary education. The general assembly expects these district strategies to increase the number of fourth grade students performing at or above the proficient standard in mathematics, reading, and writing in each district and school. The increase shall be established annually in accordance with section 16-7.1-4.

The general assembly recognizes the contribution of school counselors to positive educational change, to the implementation of the "No Child Left Behind Act of 2001," and to the success of students in three (3) developmental domains: academic, career, and personal/social. It endorses the National Standards for School Counseling Programs as developed by the American School Counselor Association (ASCA). Further, the general assembly encourages every district to implement a K-12 standards-based comprehensive, developmental school counseling program.

(d) Each strategic plan must indicate the manner in which self-studies will be completed at the school level in accordance with guidelines established by the commissioner. Funds shall be appropriated to the department of elementary and secondary education to assist districts with on-site reviews. Schools to be visited shall be determined by the commissioner.

(e) Each strategic plan must indicate the method in which school administrators and staff shall achieve and maintain an orderly educational environment in accordance with due process and with due regard for the rights of students.

(f) Each strategic plan shall include the development of inter-agency agreements for the coordination of services among state and local agencies responsible for service to children and families. These agreements shall address the identification and provision of services to pre-school children with disabilities and children and youth with behavioral health care needs.

(g) All district strategic plans and annual updates shall be submitted to the commissioner of elementary and secondary education no later than May 1, of each year.

16-7.1-5. Intervention and support for failing schools. -- The board of regents shall adopt a series of progressive support and intervention strategies consistent with the Comprehensive Education Strategy and the principles of the "School Accountability for Learning and Teaching" (SALT) of the board of regents for those schools and school districts that continue to fall short of performance goals outlined in the district strategic plans. These strategies shall initially focus on: (1) technical assistance in improvement planning, curriculum alignment, student assessment, instruction, and family and community involvement; (2) policy support; (3) resource oversight to assess and recommend that each school has adequate resources necessary to meet performance goal; and (4) creating supportive partnerships with education institutions, business, governmental, or other appropriate nonprofit agencies. If after a three (3) year period of support there has not been improvement in the education of students as determined by objective criteria to be developed by the board of regents, then there shall be progressive levels of control by the department of elementary and secondary education over the school and/or district budget, program, and/or personnel. This control by the department of elementary and secondary education may be exercised in collaboration with the school district and the municipality. If further needed, the school shall be reconstituted. Reconstitution responsibility is delegated to the board of regents and may range from restructuring the school's governance, budget, program, personnel, and/or may include decisions regarding the continued operation of the school. The board of regents shall assess the district's capacity and may recommend the provision of additional district, municipal and/or state resources. If a school or school district is under the board of regents' control as a result of actions taken by the board pursuant to this section, the local school committee shall be responsible for funding that school or school district at the same level as in the prior academic year increased by the same percentage as the state total of school aid is increased.

For FY 2003, the department shall dedicate one hundred thousand dollars ($100,000) from funds appropriated to support progressive support and intervention and SALT visits to support the Rhode Island Consortium for Instructional Leadership and Training. This consortium is engaged in training school leaders to be more effective instructional leaders in the standards based instruction environment.

16-7.1-6. Core instruction equity fund. - The general assembly recognizes that Rhode Island cities and towns primarily rely on the local property tax to finance education programs, and that the state's highest effective property tax rates are concentrated in the state's urban communities. Therefore, certain communities, because of low tax capacity and high tax effort, are unable to appropriate sufficient funds for the support of core instructional programs. The general assembly also recognizes the need to reduce inequities in resource distribution among the state's cities and towns as well as among the state's districts and schools. Therefore, the general assembly establishes the Core Instructional Equity Fund to improve the capacity of cities and towns to support the core instruction activities that are the basis of daily teaching and learning in all classrooms. The general assembly shall annually appropriate and distribute some sum to meet these needs. The sum shall be distributed based upon the following formula:

(1) Data. Data used for the following calculations are defined as follows:

(i) Population (state and municipal) shall be included from the most recent census;

(ii) Equalized weighted assessed valuations (ewav) from the most recently completed and certified study pursuant to § 16-7-21;

(iii) Most recent tax data certified by the local assessors to the department of administration, and core instructional per pupil cost as determined by the commissioner of elementary and secondary education;

(iv) Most recent resident average daily membership (RADM) pursuant to § 16-7-22;

(2) Methodology.

(i) Community Property Tax Capacity Index Calculation

Calculate statewide tax rate:

Step 1: total statewide property tax yield/total statewide property tax base (ewav)= state average tax rate

Step 2: calculate statewide yield per capita:

Total statewide property tax yield/state population (most recent census) = state property tax yield per capita

Step 3: calculate municipal property tax yield per capita:

Municipal property tax yield/population = municipal property tax yield per capita

Step 4: calculate municipal property tax capacity:

(Municipal property tax yield per capita/state property tax yield per capita) * 100 = Community property tax capacity index

(ii) Total Tax Capacity Index Calculation:

Step 5: calculate community hypothetical property tax yield per capita:

(Statewide tax rate * municipal property tax base (ewav))/community population = Hypothetical community property tax yield per capita

Step 6: calculate total tax capacity index:

(Hypothetical municipal yield per capita/state average property tax yield per capita) * 100 = total tax capacity index

(iii) Tax Effort Index Calculation:

Calculate property tax effort calculation:

Step 7: (Municipal property tax yield per capita/hypothetical municipal property tax yield per capita) * 100 = Property Tax Effort Index

(iv) Capacity/Effort Index

Calculation of the equity index:

Step 8: (Property tax capacity index/tax effort index = Equity index

(v) Instructional Cost Per Pupil

Calculate the instructional cost per RADM:

Step 9: core instructional district cost/district RADM = per pupil core instructional district cost

Step 10: select the statewide ~~median~~ average per pupil instructional cost

Step 11: state ~~median~~ average per pupil core instructional cost - district per pupil core instructional cost = core gap

Step 12: core gap * RADM = weighted difference. - Eligibility to receive funds - only those districts which have a gap in instructional core funding and which have capacity of less than 0.50 per the equity index are eligible to receive funds under this provision.

For FY 2003, districts shall receive the greater of the dollar amount received in FY 2002 or the dollar amount calculated as the FY 2003 entitlement. For FY 2003, ten percent (10%) of these funds shall, in addition to the purposes enumerated above, be used to increase student and school performance, and shall be only spent with the prior approval of the commissioner of elementary and secondary education.

16-7.1-8 Student equity investment fund. - The general assembly recognizes the need to improve fourth grade performances in mathematics, reading, and writing. Therefore, the general assembly establishes the Student Equity Investment Fund to target students identified as those requiring additional educational services. The general assembly shall annually appropriate some sum and distribute it based on each district's proportion of children eligible for USDA reimbursable school meals relative to the total number of eligible students statewide. For the purposes of this section, the date as of eligibility for USDA reimbursable meals shall be determined by the June report of the reference year as defined in § 16-7-16. These resources shall be used to close student performance gaps in accordance with the district's strategic plan pursuant to § 16-7.1-2. Beginning in FY 2003, the commissioner of elementary and secondary education may require a district to use up to five percent (5%) of the funds allocated by this section to increase student and school performance. The five percent (5%) set aside funds shall only be spent with the prior approval of the commissioner of elementary and secondary education.

16-7.1-10 Professional development investment fund. - In order to continue developing the skills of Rhode Island's teachers and staff, the general assembly establishes a Professional Development Investment Fund. The general assembly shall annually appropriate some sum and distribute it based on a pupil-teacher ratio that shall be adjusted annually by the commissioner of elementary and secondary education. School districts may use funds received under this category of education aid to replace up to, but no more than, fifty percent (50%) of the amount the school district spent for professional development programs in the previous fiscal year. The expenditure of these funds shall be determined by a committee at each school consisting of the school principal, two (2) teachers selected by the teaching staff of the school, and two (2) parents of students attending the school. Schools that enroll students in the early grades (kindergarten through grade three) must expend these funds on the development of scientific research based, as described in the "No Child Left Behind Act of 2001, Title 1, Part B, Section 1208" reading instruction to improve students reading performance. Collaborative programs between schools are encouraged. These resources shall be used to close student performance gaps in accordance with the school's and district's strategic plan pursuant to § 16-7.1-2. Of the funds appropriated by the general assembly for professional development five hundred fifty five thousand dollars ($555,000), representing fourteen and three-tenths of one percent (14.3%) of the amount allocated to each district in this investment fund, shall be retained by Additional funds shall be allocated to the department of elementary and secondary education to support teacher professional development in all districts, including but not limited to:

(1) Supporting mentoring systems;

(2) Providing school districts with program support to assist teachers in local school districts to improve reading instruction and enhance the integration of reading throughout the curriculum with the goal of improving student performance to high standards;

(3) Support for the design and implementation of a system for the training of school leaders;

(4) Support for national board certification of teachers and grants for coordination and support of school based teacher professional development.

(5) The practice of scientific research based reading instruction to improve reading performance.

In FY 2003, the additional funds allocated to the department of elementary and secondary education pursuant to this section shall be used only to support the activities described in items (2)and (5) above.

The department shall continue to use resources allocated within its operating budget to support National Board Certification activities and for FY 2003 that amount shall be ninety thousand dollars ($90,000).

16-7.1-15 The Rhode Island student investment initiative. - (a) Each locally or regionally operated school district shall receive as a base the same amount of school aid as each district received in fiscal year 1997-1998. For FY ~~2002~~ 2003, that base shall be adjusted to reflect the increases or decreases in aid enacted for FY 2000, ~~and~~ FY 2001 , and FY 2002 to meet the minimum and maximum funding levels established for FY 2000 and FY 2001 and FY 2002. Each school district shall also receive school aid through each investment fund for which that district qualifies pursuant to §§ 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-16, and 16-7.1-19. ~~, and 16-64-1.1.~~ These sums shall be in addition to the base amount described in this section. The total school aid distributed under this section in FY 2002 shall constitute not less than a three and one-half percent (3.5%) increase in the aid distributed to the school district under this section in FY 2001 and each district shall receive the increase in aid necessary to meet this minimum funding level. Additionally, for FY 2002, any community with a tax equity index below 1.0 as calculated pursuant to § 16-7.1-6 shall receive not less than a seven percent (7%) increase in aid distributed to the school district under this section in FY 2001. For FY 2003, the total school aid distributed under the investment funds enumerated above shall constitute not less than a one percent (1.0%) percent increase in aid received in FY 2002. Calculation and distribution of education aid under §§ 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-34.3, 16-24-6, 16-54-4, and 16-67-4 is hereby suspended. The funding of the purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout Prevention Act of 1967, shall be the same amount of the base amount of each district funded for that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of its student equity and early childhood funds under the provisions of chapter 67 of this title.

(b) Funding for full day kindergarten programs in accordance with § 16-7.1-11.1 shall be in addition to funding received under this section.

(c) Funding distributed under § 16-77.1-2(b) and section 16-64-1.1 ~~above and beyond that received in FY 2001,~~ shall be in addition to funding distributed under this section.

(d) There shall be an appropriation to ensure that total aid distributed to communities in ~~FY 2002~~ FY 2003 under §§ 16-7.1-15, 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) is not less than the amount proposed by the governor for FY ~~2002~~. 2003 and shall be at least a two and one-half percent (2.5%) increase over aid received in FY 2002.

(e) Children with disabilities. - Based on its review of special education within the context of Rhode Island school reform, the general assembly recommends addressing the needs of all children and preventing disability through scientific research based, as described in the "No Child Left Behind Act of 2001, Title 1, Part B, Section 1208" reading instruction and the development of Personal Literacy Programs for students in the early grades performing below grade level in reading and implement a system of student accountability that will enable the state to track individual students over time. Additionally, the department of elementary and secondary education must provide districts with rigorous criteria and procedures for identifying students with learning disabilities and speech/language impairments. Additional study is required of factors that influence programming for students with low incidence disabilities; those with disabilities that severely compromise life functions; and programming for students with disabilities through urban special education. Alternatives for funding special education require examination.

All departments and agencies of the state shall furnish such advice and information, documentary and otherwise, to the general assembly and its agents as is deemed necessary or desirable by the study to facilitate the purposes of this section.

16-7.1-16 Targeted school aid. - (a) In addition to those funds described in § 16-7.1-15, each district with a tax effort index below 1.0 as calculated pursuant to § 16-7.1-6 and with a free and reduced lunch count in grades K-3 greater than forty percent (40%) shall receive targeted school aid. Districts shall be eligible for aid based on the proportion that their average daily membership bears to the total average daily membership of districts eligible for aid under this section. The local school district shall determine the amount it proposes to spend on the program priorities referred to in this section and the programs and proposed expenditures shall be a part of the district's strategic plan and/or annual updates required under § 16-7.1-2.

(b) The commissioner may require a school district to reserve up to five percent (5%) of its targeted aid for intervention remedies. These five percent (5%) set-aside funds shall only be spent with the prior approval of the commissioner of elementary and secondary education. If however by March 1, the amount reserved is not expended or expected to be spent in the academic year, then the district may expend the funds in accordance with the priorities of this section and with the approval of the commissioner. In addition, there shall be an appropriation for comprehensive on-site school reviews and other accountability measures that the commission deems appropriate in accordance with policies and procedures to be determined by the commissioner and to carry out the purposes of § 16-7.1-2. The commissioner may give priority to districts receiving targeted funds for the use of this appropriation.

(1) Early childhood education;

(2) Helping schools to improve instruction to meet high standards;

(3) Reducing class size at the elementary level;

(4) After school programming for middle schools, junior, and senior high schools in accordance with § 16-7.1-17;

(5) Establishing and implementing innovative organizations and methods of instruction at the middle, junior high, and/or high school levels;

(6) Child opportunity zones;

(7) Teacher mentoring;

(8) Curriculum revision to meet new standards;

(9) School and district intervention; or

(10) Other programs which the commissioner believes will result in increased student performance.

16-7.1-19 Vocational technical equity fund. - The general assembly recognizes the need to support the academic instruction component of vocational education for students enrolled in career and technical education programs. To accomplish this, the general assembly shall appropriate some sum per student for each student who attends a locally operated career and technical center based on the enrollments reported to the department of elementary and secondary education for the previous academic year. Funding for all students enrolled in the locally operated career and technical centers shall be implemented for FY 2001 and FY 2002 only. For FY 2001, ~~and~~ FY 2002 and FY 2003, this sum shall be five hundred dollars ($500) per student. ~~In FY 2003 and thereafter,~~ fFunding under this section will be limited to those students enrolled in programs that are part of the state certified career and technical system.

SECTION 2. Section 16-45-6 of the General Laws in Chapter 16-45 entitled "Regional Vocational Schools" is hereby amended to read as follows:

16-45-6 Powers additional to previous authority. - (a) The powers delegated and authorized in this chapter for the board of regents for elementary and secondary education and the department of elementary and secondary education shall be in addition to those previously authorized by any other general or public law.

(b) The governance, funding, and programming of the William M. Davies, Jr. vocational technical school and the Metropolitan Career and Technical School shall be in accordance with the rules and regulations formulated by the board of regents for elementary and secondary education pursuant to chapter 35 of title 42.

(c) The purpose of this chapter is to restructure the system of career and technical schools in Rhode Island for the benefit of the students, the economy, and the general welfare. The paramount aim is to enable the schools to make more significant contributions in providing the state's students with the career preparation they need to compete and succeed in the world of today and of the future. To ensure student success, a system of model career and technical schools will be established and supported. These schools will provide: integrated academic and vocational curricula, up to date technology, programs to meet the varying needs of all students, and strong links to business, industry, postsecondary education, and the community.

(d)(1) There shall be a system of state operated career and technical schools serving geographic areas of the state. Students attending these regional schools will do so on a full time basis with the costs for their education at the regional school fully funded by the state.

(2) These schools shall be operated as local education agencies and each shall be governed by a board of trustees. With the exception of those powers and duties reserved by the director, the commissioner of elementary and secondary education, and the board of regents for elementary and secondary education, the board of trustees shall have the powers and duties of school committees. The Davies school shall be the first school operated under the provisions of this chapter and shall be renamed the William M. Davies, Jr. career and technical high school. The Metropolitan Career and Technical School shall be the second school operated under the provisions of this chapter.

(e)(1) The board of regents for elementary and secondary education shall appoint the members of the board of trustees from nominations made by the commissioner of elementary and secondary education. The chairperson shall also be selected in this manner. The board of regents shall determine the number, qualifications, and terms of office of members of the board of trustees. The board of trustees will be broadly representative of the local communities served by each school and the larger statewide workforce interests.

(2) The board of regents shall establish strategic directions for the career and technical education system that are consistent with the state's economic development plans, workforce requirements, and educational priorities and learner outcomes established by the board of regents.

(3) The board of regents shall provide parameters for the overall budget requests, approve the budget, and participate in budget development as required in subsection (i).

(f)(1) The commissioner of elementary and secondary education shall recommend parameters for the overall budget requests, recommend a budget and participate in budget development as required in subsection (i).

(2) The commissioner shall approve the process for selection of a director of each regional school. The commissioner shall develop a plan for statewide implementation of the provisions of this chapter.

(g) The board of trustees shall meet monthly and serve without compensation. Nine (9) members of the board of trustees shall be required to attend teacher appeal hearings conducted pursuant to § 16-13-4. The board of trustees shall have broad policy making authority for the operation of the school consistent with subsection (e) and the following powers and duties:

(1) To identify the educational needs of the communities in the district.

(2) To develop educational policies to meet the needs of students in the communities served by the school district.

(3) To appoint a director of its regional school to serve as its chief executive officer and to approve assistant and associate directors from nominations made by the director.

(4) To provide policy guidance and participate in budget development as required in subsection (i).

(5) To develop staffing policies which ensure that all students are taught by educators of the highest possible quality.

(h)(1) The director will serve at the pleasure of the board of trustees with the initial appointment to be for a period of not more than three (3) years, provided, that the term and conditions of employment are subject to the approval of the board of regents for elementary and secondary education.

(2) It is the responsibility of the director to manage and operate the school on a day to day basis. The director's duties shall include the following:

(i) To be responsible for the entire care, supervision, and management of the career and technical high school.

(ii) To recommend to the board of trustees educational policies to meet the needs of the district, and to implement policies established by the board of trustees.

(iii) To present nominations to the board of trustees for assistant and associate directors and to appoint all other school personnel.

(iv) To provide for the evaluation of all school district personnel.

(v) To establish a school based management approach for decision making for the operation of the school.

(vi) To prepare a budget and participate in budget development as required in subsection (i), and to authorize purchases consistent with the adopted school district budget.

(vii) To report to the board of trustees on a regular basis the financial condition and operation of the school, and to report annually on the educational progress of the school.

(viii) To establish appropriate advisory committees as needed to provide guidance on new directions and feedback on the operation of the school.

(i) With policy guidance from the board of trustees and extensive involvement of the administrators and faculty in the school, the director of each regional school shall annually prepare a budget. The board of trustees will approve the budget and transmit it to the commissioner. The board of regents for elementary and secondary education, upon recommendation of the commissioner of elementary and secondary education, shall provide parameters for the overall budget request. Based on review and recommendation by the commissioner, the board of regents shall approve the total budget and incorporate it into its budget request to the governor and to the general assembly. Line item budgeting decisions shall be the responsibility of the director.

(j) Nothing in this section shall be deemed to limit or interfere with the rights of teachers and other school employees to bargain collectively pursuant to chapters 9.3 and 9.4 of title 28 or to allow the board of trustees or the director to abrogate any agreement by collective bargaining. Employees at the William M. Davies school shall continue to be state employees and the bargaining units which are presently established at the school shall remain intact.

SECTION 3. Section 16-77.1-3 of the General Laws in Chapter 16-77.1 entitled "Funding of Charter Public Schools" is hereby amended to read as follows:

16-77.1-3. Federal funds for charter public schools start up costs. -- Charter public schools may apply for federal funds to support start up costs. Charter public schools shall become eligible to apply for federal funds upon approval of the charter public school's application by the board of regents for elementary and secondary education. Federal funds shall be distributed to charter public schools by the department of elementary and secondary education through a process which requires each charter public school seeking the funds to submit a grant application to the department of elementary and secondary education. The grant application process shall be established and implemented by the Rhode Island department of elementary and secondary education. ~~Grants of federal funds for start up costs shall not exceed one hundred and fifty thousand dollars ($150,000) for a single charter public school.~~

SECTION 4. This Article shall take effect on July 1, 2002

ARTICLE 19 SUB A

RELATING TO GENERAL PUBLIC ASSISTANCE

SECTION 1. Hardship Contingency Fund. - Out of the sum appropriated to the department of human services in Article 1 for general public assistance, the sum of four hundred fifty thousand dollars ($450,000) shall be used as a hardship contingency fund in fiscal year 2003 for the purposes and subject to the limitations hereinafter provided, and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of duly authenticated vouchers. From the aforesaid appropriation for hardship contingency, the director of the department of human services, in his or her sole discretion, may authorize payments of cash assistance benefits up to two hundred dollars ($200) per month upon a showing of hardship by an individual who is eligible for general public assistance medical benefits under section 40-6-3.1(a)(1). The director shall not be required to promulgate any new, additional or separate rules or regulations in connection with his or her disbursement of the contingency fund created hereby.

SECTION 2. This article shall take effect on July 1, 2002.

ARTICLE 20 SUB A AS AMENDED

RELATING TO VIDEO LOTTERY TERMINALS -- DIVISION OF REVENUE

SECTION 1. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Terminal" is hereby amended to read as follows:

42-61.2-7. Division of revenue. -- (a) Notwithstanding the provisions of section 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

(1) For deposit in the general fund and to the state lottery commission fund for administrative purposes: No less than fifty-one percent (51%) in fiscal year 2002; no less than fifty-two percent (52%) in fiscal year 2003; no less than fifty-three percent (53%) in fiscal year 2004; no less than fifty-four percent (54%) in fiscal year 2005; no less than fifty-five percent (55%) in fiscal year 2006; and each year thereafter.

(2) To the licensed video lottery retailer: thirty-one percent (31%) in fiscal year 2002; thirty and one-half percent (30.5%) in fiscal year 2003; thirty percent (30%) in fiscal year 2004; twenty-nine and one-half percent (29.5%) in fiscal year 2005; twenty-nine percent (29%) in fiscal year 2006; and each year thereafter.

(3) To the owners of dog kennels who are under contract with a licensee: six percent (6%) of net terminal income derived from video lottery games located at the facility in fiscal year 2002; five and one-half percent (5.5%) in fiscal year 2003; five percent (5%) in fiscal year 2004; four and one-half percent (4.5%) in fiscal year 2005; four percent (4%) in fiscal year 2006; and each year thereafter. The ~~six percent (6%)~~ percentage not allocated to the owner of dog kennels reverts back to the general revenue fund and to the state lottery commission for administrative purposes;

(4) To the technology provider: eleven percent (11%) of the net terminal income of the provider's terminals less all reasonable charges and fees to the communications provider associated with the supplying, maintenance, and operations of the communications system. The lottery commission shall determine the fees to the communications system provider which shall be no more than two and one-half percent (2.5%) of the net terminal income;

(5) To the city or town in which the licensed video retailer is licensed: one percent (1%); and

(6) Unclaimed prizes and credits shall remit to the general fund of the state;

(7) Payments into the state's general fund specified in subdivisions (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall be made on the tenth day following the close of the month except for the last month when payment shall be on the last business day.

(b) Provided, however, that for the fiscal year commencing July 1, 1993 and subsequent fiscal years, the sum of five million dollars ($5,000,000) to the extent possible shall be contributed to the distressed communities relief program, pursuant to section 45-13-12, to be distributed according to the formula and the contributions shall be as follows:

(1) One million one hundred fifty-two thousand six hundred eighty-three dollars ($1,152,683) of the net terminal income due retailers under subdivision (a)(2) deposited as general revenues as follows: Lincoln Greyhound Park seven hundred sixty-seven thousand, six hundred eighty-seven dollars ($767,687) and Newport Jai Alai Fronton three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996).

(2) Two hundred eighteen thousand five hundred seventy-nine dollars ($218,579) of the net terminal income due kennel owners under subdivision (a)(3) deposited as general revenues.

(3) Six hundred and twenty-eight thousand seven hundred and thirty-seven dollars ($628,737) of the net terminal income due the technology providers under subsection (a)(4) deposited as general revenues.

~~(iv)~~ (4) Three million dollars ($3,000,000) from the state general revenue fund.

SECTION 2. This article shall take effect upon passage.

ARTICLE 21 SUB A AS AMENDED

RELATING TO HOSPITAL UNCOMPENSATED CARE

SECTION 1. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled "Uncompensated Care" are hereby amended to read as follows:

40-8.3-2. Definitions. -- As used in this chapter:

(1) "Base year" means for the purpose of calculating a disproportionate share payment for any fiscal year ending after September 30, 2000, the period from October 1, 1998 through September 30, 1999.

(2) "Medical assistance inpatient utilization rate for a hospital" means a fraction (expressed as a percentage) the numerator of which is the hospital's number of inpatient days during the base year attributable to patients who were eligible for medical assistance during the base year and the denominator of which is the total number of the hospital's inpatient days in the base year.

(3) "Participating hospital" means any nongovernment and nonpsychiatric hospital that: (i) was licensed as a hospital in accordance with chapter 17 of title 23 during the base year, (ii) achieved a medical assistance inpatient utilization rate of at least one percent (1%) during the base year, and (iii) continues to be licensed as a hospital in accordance with chapter 17 of title 23 during the payment year.

(4) "Uncompensated care costs" means, as to any hospital, the sum of (i) the cost incurred by such hospital during the base year for inpatient or outpatient services attributable to charity care (free care and bad debts) for which the patient has no health insurance or other third-party coverage less payments, if any, received directly from such patients and (ii) the cost incurred by such hospital during the base year for inpatient or out-patient services attributable to medicaid beneficiaries less any medicaid reimbursement received therefor; multiplied by the uncompensated care index.

(5) "Uncompensated care index" means the annual percentage increase for hospitals established pursuant to section 27-19-14 for each year after the base year, up to and including the payment year, provided, however, that the uncompensated care index for the payment year ending September 30, 2001 shall be deemed to be four and seventy-five hundredths percent (4.75%), and that the uncompensated care index for the payment year ending September 30, 2002 shall be deemed to be four and nine tenths percent (4.90%). , and that the uncompensated care index for the payment year ending September 30, 2003 shall be deemed to be five and twenty-five hundredths percent (5.25%).

40-8.3-3. Implementation. -- (a) For the fiscal year commencing on October 1, 2000 and ending September 30, 2001, each participating hospital shall be paid by the department of human services on or before April 2, 2001, an annual disproportionate share payment equal to the lesser of (1) the hospital's uncompensated care costs adjusted by the uncompensated care index or (2) a percentage equal to a minimum of five and seventy-five hundredths percent (5.75%) of the dollar amount of the difference between (i) all chargeable services in the hospital's base year and (ii) the sum of charity care charges, bad debt expenses, and contractual allowances in the hospital's base year; provided, however, that the disproportionate share payments are expressly conditioned upon approval on or before April 2, 2001 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2001 for the disproportionate share payments.

(b) For the fiscal year commencing on October 1, ~~2001~~ 2002 and ending September 30, ~~2002~~ 2003, each participating hospital shall be paid by the department of human services on or before October 30, ~~2001~~ 2002, a disproportionate share payment equal to the lesser of (1) the hospital's uncompensated care costs adjusted by the uncompensated care index; or (2) a percentage equal to six and seventy-five hundredths percent ~~(6.05%)~~ (6.75%) of the dollar amount of the difference between (i) all chargeable services in the hospital's base year and (ii) the sum of charity care charges, bad debt expenses, and contractual allowances in the hospital's base year; provided, however, that the disproportionate share payments are expressly conditioned upon approval on or before October 30, ~~2001~~ 2002 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year ~~2002~~ 2003 for the disproportionate share payments.

ARTICLE 22 SUB A

RELATING TO CHILD CARE - STATE SUBSIDIES

SECTION 1. Section 40-6.2-5 of the General Laws in Chapter 40-6.2 entitled "Child Care-State Subsidies" is hereby amended to read as follows:

40-6.2-5 Health care coverage for center-based care providers.--(a) The department of human services is authorized and directed to establish a health care premium cost-sharing option through its RIte Care program for center-based child care providers who provide child care services paid for in whole or in part by the department of human services or the department of children, youth, and families, and who meet the eligibility requirements of this section.

(b) A center-based provider shall be eligible to participate if:

(1) The provider is licensed as a child day care provider by the department of children, youth, and families pursuant to chapter 72.1 of title 42; and

(2) The provider demonstrates that it meets the minimum subsidized child care participation rates specified in subsection (c), or (d)~~, or (e),~~ for the applicable period; and

(3) The provider elects to exercise this health care premium cost-sharing coverage option on behalf of its employees and makes timely payment of the provider's share of the premium.

(c) Effective January 1, 1999, if the number of children served by the provider who meet the department's child care assistance income guidelines under §40-5.1-17 is at least fifty percent (50%) of the enrollment census of the provider, then the center-based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees.

(d) Effective July 1, 1999, if the number of children served by the provider who meet the department's child care assistance income guidelines under §40-5.1-17 is at least forty percent (40%) of the enrollment census of the provider, then the center-based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees.

(e) Effective July 1, 2002, if the number of children served by the provider who meet the department's child care assistance income guidelines under §40-5.1-17 is at least thirty percent (30%) of the enrollment census of the provider, then the center-based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees.

~~(f)~~(e) The department of human services is authorized to promulgate rules and regulations which it deems necessary to effect the intent and further define the terms and provisions of this section, and which may include, but need not be limited to the terms, premiums, conditions, limitations, and restrictions of the health care buy-in option, and enrollment periods and procedures.

SECTION 2. This article shall take effect on July 1, 2002.

ARTICLE 23 SUB A

RELATING TO CHILD CARE ELIGIBILITY

SECTION 1. Section 40-5.1-17 of the General Laws in Chapter 40-5.1 entitled "Family Independence Act" is hereby amended to read as follows:

40-5.1-17 Families eligible for child care assistance.-- (a) The department shall provide appropriate child care to every parent who requires child care in order to meet the work requirements in §40-5.1-9 and to all other families with incomes at or below one hundred eighty-five percent (185%) of the federal poverty line, if and to the extent such other families require child care in order to work at paid employment; provided, however, that effective January 1, 1999, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred percent (200%) of the federal poverty line; effective July 1, 1999, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred twenty-five percent (225%) of the federal poverty line~~; and effective July 1, 2002, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred fifty percent (250%) of the federal poverty line~~ .

(b) For purposes of this section "appropriate child care" means child care, including infant/toddler, pre-school, nursery school, school-age, and youth care, which is provided by a person or organization qualified, approved, and authorized to provide such care by the department of children, youth, and families, or by the department of elementary and secondary education, or such other lawful providers as determined by the department of human services, in cooperation with the department of children, youth and families and the department of elementary and secondary education, subject to the following age limitations:

(1) Through December 31, 1998, for a child below the age of thirteen (13), or children age thirteen (13) years or older who are under supervision of the family court or who require care because of a physical or mental impairment;

(2) Effective January 1, 1999, for a child below the age of fifteen (15);

(3) Effective July 1, 1999, for a child below the age of sixteen (16).

(c) The department of human services shall determine rates of reimbursement for child care services for children over the age of twelve (12) in accordance with the provisions of §40-6.2-1.1(d).

For purposes of this section "appropriate child care" is defined in §40-5.1-9(b).

(d) Families with incomes below one hundred percent (100%) of the applicable federal poverty guidelines shall be provided with free child care. Families with incomes equal to or greater than one hundred percent (100%) of the applicable federal poverty guideline shall be required to pay for some portion of the child care they receive, according to a sliding fee scale adopted by the department.

(e) In determining the type of child care to be provided to a family, the department shall take into account the cost of available child care options and the suitability of the type of care available for the child and the parent's preference as to the type of child care.

(f) For purposes of this section "income" for families receiving cash assistance under §40-5.1-9 means gross earned income and unearned income, subject to the income exclusions in §40-5.1-10(b) and §40-5.1-10(c); and income for other families shall mean gross earned and unearned income as determined by departmental regulations.

(g) The entitlement provided for in subsection (a) shall be an entitlement to payment of a subsidy for child care to an appropriate child care provider as defined in subsection (b). The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for child care in accordance with the provisions of §35-17-1.

SECTION 2. This article shall take effect on July 1, 2002.

ARTICLE 24 SUB A AS AMENDED

RELATING TO MEDICAL ASSISTANCE AND HUMAN SERVICES

SECTION 1. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby amended by adding thereto the following section:

40-8-24. Purpose. - (a) The department of human services is directed to seek any waivers as described by section 40-8-24 required by the United States department of health and human services to establish, subject to appropriation, a pharmacy assistance program, to be known as the "Healthy Rhode Island Pharmacy Program", for the purposes of providing prescription and nonprescription pharmaceuticals at low cost to certain Rhode Island residents who are elderly or living with a disabling condition, as provided in this section.

(b) To enable the state of Rhode Island to maximize claims for federal financial participation and pharmaceutical manufacturer rebates for the Healthy Rhode Island Pharmacy Program, the department is directed and authorized to seek the following waivers:

(1) The department shall submit to the United States department of health and human services a waiver of otherwise applicable requirements of title XIX of the Federal Social Security Act in order to claim federal financial participation for a pharmacy assistance program for residents of the state who are sixty-five (65) years of age and over with incomes no greater than two hundred percent (200%) of the federal poverty level. The Healthy Rhode Island Pharmacy Program shall provide pharmacy assistance for any such persons deemed eligible under the waiver that is comparable to the pharmacy benefit provided to individuals eligible under the Rhode Island Medicaid State Plan, to the extent that the cost-sharing and enrollment limitations provided for in section (c) allow.

(2) The department shall submit to the United States department of health and human services a waiver of otherwise applicable requirements of title XIX of the Federal Social Security Act in order to claim federal financial participation for a pharmacy assistance program for adult residents of the state who are either incapacitated and with incomes no greater than two hundred percent (200%) of the federal poverty level; or severely and persistently mentally ill and eligible for community support services through the department of mental health, retardation and hospitals; and are deemed by the department to be ineligible for pharmacy assistance under subsection (b)(1) of this section or under any other applicable sections of chapter 42-66.2 and otherwise unable to pay the costs for medically necessary prescription drugs and medications. The Healthy Rhode Island Pharmacy Program shall provide pharmacy assistance for any such persons deemed eligible under the waiver that is comparable to the pharmacy benefits provided to individuals eligible under the Medicaid State Plan to the extent any program requirements established by rule in accordance with section (c) allow.

(c) The department shall provide by rule for all other requirements of the program, including cost-sharing and any enrollment limitations deemed necessary, as permitted by an approved waiver. The department shall consult with the department of elderly affairs in developing the requests for the waivers as authorized and, to the greatest extent practicable, shall coordinate implementation of the Health Rhode Island Pharmacy Program with the administration and application process for determining eligibility and enrollment in the pharmaceutical assistance program for the elderly set forth in chapter 42-66.2.

(d) The caseloads and expenditures for the Healthy Rhode Island Pharmacy Program waivers shall be determined by the caseload estimating conference in accordance with the provisions of chapter 35-17 for determining official estimates of medical assistance caseloads.

(e) Upon receipt of such waiver(s) from the United States department of health and human services, the department of human services shall file with the house and senate finance committees a report of the terms and conditions of such approved waiver(s) together with a detailed plan for the implementation thereof within the aggregate general revenue appropriations for pharmacy benefits and administrative costs provided for in the enacted budget for state fiscal year 2003; and provided further that any reallocations of such general revenue appropriations between or among departments and/or appropriation line items necessary to implement the approved waiver(s), and/or adjustments to federal revenue appropriations consistent with such wavier approval(s), shall be submitted to the general assembly by the Governor in the supplemental appropriations act for state fiscal year 2003 in accordance with section 35-3-8.

SECTION 2. Section 40-18-1 of the General Laws in Chapter 40-18 entitled "Long Term Home Health Care-Alternative to Placement in a Skilled Nursing or Intermediate Care Facility" is hereby amended to read as follows:

40-18-1. Purpose. -- (a) The director of the department of human services, in addition to the medical assistance benefits provided in chapter 8 of this title shall maintain and coordinate a program of long term home health care. The purpose of the program of long term home health care is to provide in-hospital eligible patients, who would be discharged to a skilled nursing facility and/or an intermediate care facility, with a viable alternative to placement in a skilled nursing facility and/or intermediate care facility. The director shall utilize a federally approved home and community based service waiver to provide a viable alternative. The hereinafter listed services shall be an integral part of the viable alternative.

(b) In addition, the director of the department of human services shall utilize any and all other available departmental resources and community resources to enhance and expand the provision of long term home health care as the viable alternative to placement in a skilled nursing facility and/or an intermediate care facility. These resources shall be used to strengthen and expand home and community-based long term care services which will help people stay at home for care when this is an appropriate alternative to nursing facility care.

(c) In furtherance of subsections (a) and (b) above, the department of human services is authorized and directed to seek any waiver(s) required by the United States department of health and human services in accordance with otherwise applicable requirements of title XIX of the Federal Social Security Act to establish an enhancement of the program for the provision of adult day care services and home-based services. The department of human services is directed to seek the waiver(s) in order to claim federal financial participation for the services that shall be provided to residents of the state who are deemed to be in need of adult day care services and/or home-based services and whose incomes are no greater than two hundred fifty percent (250%) of the federal poverty level.

(d) Upon receipt of such waiver approval(s) referred to in subsection (c) above from the United States department of health and human services, the department of human services shall file with the house and senate finance committees a report of the terms and conditions of such approved waiver(s) together with a detailed plan for the implementation thereof within the aggregate general revenue appropriations for adult day care and home-based services benefits and administrative costs provided for in the enacted budget for state fiscal year 2003; and, provided further, that any reallocations of such general revenue appropriations between or among departments and/or appropriation line items necessary to implement the approved waiver(s), and/or adjustments to federal revenue appropriations consistent with such waiver approval(s), shall be submitted to the general assembly by the Governor in the supplemental appropriations act for state fiscal year 2003 in accordance with section 35-3-8.

SECTION 3. This article shall take effect upon passage.

ARTICLE 25 SUB A AS AMENDED

RELATING TO FAMILY INDEPENDENCE ACT

SECTION 1. Section 40-5.1-9 of the General Laws in Chapter 40-5.1 entitled "Family Independence Act" is hereby amended as follows:

40-5.1-9 Cash assistance. - (a) Entitlement to cash assistance. A family found by the department to meet the eligibility criteria set forth in this chapter shall be entitled to receive cash assistance from the date of submitting a signed application. The family members shall be eligible for cash assistance for so long as they continue to meet the eligibility criteria and parents shall be eligible so long as they meet the terms and conditions of the work requirements of subsection (c). The monthly amount of cash assistance shall be equal to the payment standard for the family minus the countable income of the family in that month. The department is authorized to reduce the amount of assistance in the month of application to reflect the number of the days between the first (1st) day of the month and the effective date of the application.

(b) Payment standard. The payment standard is equal to the sum of the following: three hundred twenty-seven dollars ($327) (two hundred seventy-seven dollars ($277) for a family residing in subsidized housing) for the first person, one hundred twenty-two dollars ($122) for the second person, one hundred five dollars ($105) for the third person and eighty dollars ($80) for each additional person.

(c) Work requirements. (1) No more than forty-five (45) days following the date on which a family has been notified by the department in writing that it is eligible for cash assistance under the act, the department shall develop a family financial plan pursuant to § 40-5.1-5 and, unless the parent is exempt from work pursuant to subsection (iv), the department shall assess the parent's educational and vocational abilities and develop an individual employment plan pursuant to § 40-5.1-5. In the case of a family including two parents, the department may develop an employment plan for each parent if the parents so request.

(2) The employment plan shall specify the parent's work activity and the supportive services which will be provided by the department to enable the parent to engage in the work activity.

(i) During the first twenty-four (24) months of the employment plan, the parent shall participate, for a minimum of twenty (20) hours per week for parents whose youngest child in the home is under the age of six (6), and for a minimum of thirty (30) hours per week for parents whose youngest child in the home is six (6) years of age or older , in one or more of the following work activities, as appropriate, in order to help the parent obtain stable full-time paid employment:

(A) ~~Twenty (20) hours per week of p~~ Paid employment, (including on-the-job training);

(B) ~~Twenty (20) hours per week of~~ A community work experience in a program which satisfies the requirements of §40-5.1-23;

(C) A training or work readiness program approved by the department and conducted at a job site if the program involves supervised participation in work at the site;

(D) During the first six (6) months of eligibility (or for a longer period if the department determines it necessary to prepare the parent to obtain stable full-time employment), successful participation in an approved work readiness program as defined in § 40-5.1-22;

(E) During the first three (3) months of eligibility (or for a longer period if the department determines it necessary to prepare the parent to obtain stable full-time employment), participation in an approved rapid job placement program as defined in § 40-5.1-20;

(F) A supervised individual job search which meets the conditions set forth in § 40-5.1-21;

(G) For a parent under the age of twenty (20) without a high school diploma or the equivalent, successful participation on a full-time basis in a program to secure such diploma or the equivalent;

(H) For a parent age twenty (20) or older, without basic literacy or English literacy skills, successful participation on a full time basis in a program to secure such skills; and

(I) For a parent age twenty (20) or older (and a parent under the age of twenty (20) who has a high school degree or the equivalent or a parent under the age of twenty (20) for whom attendance at a high school is determined to be inappropriate) successful participation in a vocational education, skills or job training program, including without limitation, a program of postsecondary education, which the department determines is likely to result in regular full-time employment at wages sufficient to eliminate eligibility for cash assistance under the act.

(ii) Beginning with the twenty-fifth month of the employment plan, the parent shall participate in one or more of the following work activities for at least twenty (20) hours per week for parents whose youngest child in the home is under the age of six (6) and thirty (30) hours per week for parents whose youngest child in the home is six (6) years of age or older:

(A) Paid employment (including on-the-job training);

(B) A community work experience program which satisfies the requirements of § 40-5.1-23;

(C) A training program approved by the department and conducted at a job site if the program involves supervised participation in work at the site.

(iii) The following parents shall be deferred from the participation requirement in subsection (ii):

(A) A parent under the age of twenty (20) without a high school diploma or the equivalent who is successfully participating, on a full-time basis, in a program to secure such diploma or the equivalent;

(B) A single parent age twenty (20) or older, without basic literacy or English language skills, who (I) is participating in a full-time program but is unable to complete a literacy or language skills program during the first twenty-four (24) months of his or her employment plan, or (II) who the department has determined is unable to secure paid employment without additional language or literacy skills, and who is successfully participating in a program to secure such skills.

(C) A parent age twenty (20) years or older, who is successfully participating in a vocational education, skills or job training program, including without limitation, a program of postsecondary education, which the department determines is likely to result in regular full-time employment at wages sufficient to eliminate eligibility for cash assistance under the act; provided, however, that the parent began the program prior to the twenty-fifth (25th) month of his or her employment plan; provided, further, however, that participation shall not be deemed a work activity after the thirty-sixth (36th) month of the employment plan.

(D) Upon completion of any activity in sections A-C, the parent shall be subject to the work activity requirements of subsection (ii).

(iv) Subsections (i) and (ii) shall not apply to a single parent if (and for so long as) the department finds that he or she is:

(A) Unable to comply with the employment plan because of an illness which, on the basis of medical evidence, is serious enough to temporarily prevent work;

(B) Unable to comply with the employment plan because of a physical or mental impairment which, on the basis of medical evidence, either by itself or in conjunction with age, prevents work;

(C) Unable to comply with the employment plan because of the illness or incapacity of a minor child or spouse who requires full-time in-home care, and for whom the person is providing care;

(D) Caring for a child below the age of one; provided, however, that a minor parent without a high school diploma or the equivalent, and who is not married, shall not be exempt from subsection (i)(G) for more than twelve (12) weeks from the birth of the child;

(E) Sixty (60) years of age or older;

(F) A pregnant woman in her third trimester;

(G) Otherwise exempt by the department.

(v) The amount of cash assistance to which an otherwise eligible family is entitled under the act, shall be reduced in any month during the first twenty-four (24) months of the parent's employment plan in which the parent fails, without good cause, to comply with the employment plan, by the parent's portion of the family's benefit.

(vi) Beginning with the twenty-fifth month of the employment plan, the following penalties shall apply in any month to a family in which the parent, without good cause, fails to comply with his or her employment plan:

Number of Reduction in Family

Months of Noncompliance Benefit (% of Parent's benefit)

One-six 110%

Seven-Twelve 120%

Thirteen-Eighteen 130%

Nineteen-Twenty-four 140%

(B) For purposes of subsections (v) and (vi) the benefit reduction for a family size of two (2) shall be computed utilizing a family size of three (3).

(C) If a parent fails to comply with his or her employment plan for more than twenty four (24) months, the family's benefit shall be reduced by one hundred percent (100%) of the parent's benefit and the entire benefit shall be paid to some appropriate and responsible person (other than the parent) to pay the expenses of the family. An "appropriate responsible person" may include the family's case manager.

(D) If the family's benefit has been reduced due to the parent's failure to comply with the terms of the employment plan, benefits shall be restored to the full amount beginning with the initial payment made on the first of the month following the month in which the parent agrees to comply with the terms of the plan.

(E) If a family subject to a reduction in benefits under this subsection:

(I) Terminates benefits;

(II) Reapplies within three (3) months and;

(III) Has not had gross earnings in excess of one hundred dollars ($100) during the three (3) month period;

(F) There shall be a rebuttable presumption that the family has terminated in order to avoid a further reduction in benefits, and penalties shall be applied as if the family had not terminated from the program.

(vii) Notwithstanding subsections (i) and (ii) of this subsection, in the case of a family consisting of two (2) parents, (except as provided in subsection (xi) below), beginning seven (7) days following completion of the family financial plan and the individual employment plan(s), or as soon as practical thereafter, one (1) parent shall be engaged in work activities for at least thirty-five (35) hours per week during the month, not fewer than thirty (30) hours per week of which are attributable to one (1) or more of the following activities:

(A) Unsubsidized employment;

(B) Subsidized private sector employment;

(D) Work experience if sufficient private sector employment is not available;

(E) On-the-job training;

(F) Job search and job readiness assistance;

(G) Community service program;

(H) Vocational educational training (not to exceed twelve (12) months with respect to any individual); or

(I) The provision of child care services to an individual who is participating in a community service program.

Moreover, in the case of a two (2) parent family wherein one (1) parent is engaged for at least thirty-five (35) hours per week in the work activities specified immediately above, and if the family requests child care assistance under this chapter, and an adult in the family is not disabled or caring for a severely disabled child, the second parent must be engaged in work activities during the month for not fewer than twenty (20) hours per week in one (1) or more of the following activities:

(A) Unsubsidized employment;

(B) Subsidized private sector employment;

(D) Work experience if sufficient private sector employment is not available;

(E) On-the-job training; or

(F) Community service programs;

(viii) Subsection (vii) shall not apply

(A) To a parent who is ill and the department determines on the basis of medical evidence that the illness is serious enough to temporarily prevent entry into employment or engaging in the activities listed in subsection (vii) or to provide care for his or her children; or

(B) To a parent who is incapacitated by a physical or mental impairment which the department has determined on the basis of medical evidence either by itself or in conjunction with age, prevents the individual from engaging in employment or training or providing care for his or her children; or

(C) To a parent who is providing full-time in-home care to a minor child or parent who, due to illness or incapacity, requires full-time in-home care; or

(D) If otherwise authorized by the department for cause.

(ix) If, during any month, parents required to comply with subsection (vii) fail, without good cause to do so, the family shall be deemed for all purposes under this act to include only one parent. The parent included in the family shall be the parent which the department determines has accepted primary responsibility for child care. The parent included in the family, unless exempt pursuant to subsection (iv), shall be required to comply with subsections (i) and (ii) of this subsection and shall be subject to the penalties in subsections (v) and (vi), as applicable, if the parent fails to do so. Notwithstanding the foregoing, in determining the amount of cash assistance to which a family is entitled under this chapter, the earnings of any parent living in the same household as a family eligible for cash assistance, shall be deemed to be earned income of the family for purposes of § 40-5.1-10(b).

(x) A parent's failure, without good cause, to accept a bona fide offer of work, including full-time, part-time and/or temporary employment, or unpaid community service, to the extent the offer of work is not inconsistent with the employment plan shall be deemed a failure to comply with this section, provided that:

(A) The parent is able to perform the work offered; and

(B) Appropriate child care (as defined in subsection (e) hereof) is made available to the parent.

(xi) A two (2) parent family that includes a disabled parent shall be considered to be a single parent family for purposes of applying the work requirements of subsections (i) and (ii).

(d) Child care. Notwithstanding any other provision of this section, no single parent, or both parents meeting the requirements of subsection (vii), shall be required to work to the extent that appropriate child care is necessary for the parent to do so and the department determines that such appropriate child care is unavailable for fiscal or other reasons. For purposes of this section "appropriate child care" means child care which is provided by a person or organization qualified and authorized to provide such care by the department of children, youth, and families or such other lawful providers as determined by the department of children, youth, and families. Child care shall be considered "necessary" under this section for any child below the age of thirteen (13), or any children age thirteen (13) years or older who is under supervision of the family court or who requires care because of a physical or mental impairment.

(e) Work expenses. The department shall provide an allowance for transportation costs necessary to comply with the employment plan, provided, however, that the amount of such reimbursement shall not exceed the sum of three dollars ($3.00) per day.

SECTION 2. Section 40-5.1-45 of the General Laws in Chapter 40-5.1 entitled "Family Independence Act" is hereby repealed.

~~40-5.1-45.~~ ~~Weatherization assistance. --~~ Subject to general assembly appropriation, in the month of March each year, each family receiving cash assistance under this chapter in that month, shall be given a weatherization assistance payment of one hundred dollars ($100) per family.

SECTION 3. This article shall take effect upon passage and any rules or regulations necessary or advisable to implement the provisions of this article shall be effective immediately as an emergency rule upon the department's filing thereof with the secretary of state as it is hereby found that the current fiscal crisis in this state has caused an imminent peril to public health, safety and welfare, and the department is hereby exempted from the requirements of subsections 42-35-3(b) and 42-35-4(b)(2) relating to agency findings of imminent peril to public health, safety and welfare and the filing of statements of the agency's reasons thereof.

ARTICLE 26 SUB A

RELATING TO FOOD STAMP PROGRAM

SECTION 1. Section 40-6-8 of the General Laws in Chapter 40-6 entitled "Public Assistance Act" is hereby amended to read as follows:

40-6-8 Food stamp program. - (a) The department shall have the responsibility to administer the food stamp program for the state in compliance with the provisions of the federal Food Stamp Act of 1964, as amended, 7 U.S.C. § 2011 et seq.

(b) The department is empowered and authorized to submit its plan for food stamps to the federal government or any agency or department thereof. The department shall act for the state in any negotiations relative to the submission and approval of a plan, and may make any arrangement or changes in its plan not inconsistent with this chapter which may be required by the Food Stamp Act or the rules and regulations promulgated pursuant thereto to obtain and retain such approval and to secure for this state the benefits of the provisions of the federal act relating to food stamps. The department shall make reports to the federal government or any agency or department thereof in the form and nature required by it, and in all respects comply with any request or direction of the federal government or any agency or department thereof which may be necessary to assure the correctness and verification of the reports.

(c) The department is authorized and directed to pay one hundred percent (100%) of the state's share of the administrative cost involved in the operation of the food stamp program.

(d) The department is authorized and directed to provide food stamps to legal immigrants, as defined herein, who would be eligible for such benefits under the federal food stamp program but for the restricted eligibility rules imposed by § 402(a)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law No. 104-193) [8 U.S.C. § 1612(a)(1)] and as such act may hereafter be amended. For purposes of this section, the term legal immigrant shall mean a non-citizen lawfully admitted for permanent residence before August 22, 1996 or who first became entitled to reside in the United States before August 22, 1996 and in either case, was a resident of the state of Rhode Island prior to August 22, 1996. The amount of benefits shall be the same as would be provided if the individual qualified for the federal food stamp program. The administrative costs involved in providing such benefits and the cost of such benefits shall be funded solely with state funds. Payment of benefits under this subsection shall be subject to approval by the secretary of the United States department of agriculture to utilize the federal food stamp program as the distribution system to issue benefits to such legal immigrants.

~~(e)~~ (d) Except as provided herein, no person shall be ineligible for food stamp benefits due solely to the restricted eligibility rules otherwise imposed by § 115(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Laws No. 104-193) [21 U.S.C. § 862a(a)(2)] and as such section may hereafter be amended. No person convicted of a drug related felony, as defined herein, shall be eligible for food stamp benefits. For purposes of this subsection, "drug related felony" means the conviction (under federal or state law) subsequent to August 22, 1996 of an individual of any offense which is classified as a felony by the law of the jurisdiction involved and which has as an element the distribution or sale of a controlled substance (as defined in § 102(6) of the Controlled Substances Act, 21 U.S.C. 802(6)).

SECTION 2. This article shall take effect on April 1, 2003.

ARTICLE 27 SUB A AS AMENDED

(DELETED)

ARTICLE 28 SUB A

JOINT RESOLUTION

APPROVING THE FINANCING OF NEW PARKING FACILITIES AND ACCESS CONTROL SYSTEMS AT THE UNIVERSITY OF RHODE ISLAND

WHEREAS, The Kingston Campus Master Plan of January 2000 included a comprehensive analysis and plan for transportation, vehicle circulation and parking facilities on campus and concluded that there is a deficiency of 1,000 parking spaces for students on the Kingston campus during the day and for the projected parking demand from patrons attending a range of events to be held at the new Convocation Center and Ice Facility; and

WHEREAS, The Convocation Center Traffic Study of 1999 included the participation of Department of Transportation, municipal planners, police officials and engineering consultants in developing a parking and traffic management plan for the Convocation Center and examined the available options for serving the parking needs for the Center, including the use of parking facilities in Kingston outside of walking distance to the facility, and agreed with the Campus Master Plan that an additional 1,000 parking spaces within walking distance to the Convocation Center and better controlled parking lot access were necessary; and

WHEREAS, The generation of revenues by the Convocation Center and Ice Facility sufficient to meet debt service and operating expenditures is dependent, in part, upon the provision of convenient and adequate parking facilities and transit alternatives; and

WHEREAS, More University resident and commuter students own cars than ever before, and that the lack of parking capacity and access control systems results in damage to campus grounds and that an enhanced shuttle system, coordinated with regional transit service, is an essential component to student transportation, and that the local Kingston community is demanding change; and

WHEREAS, These and related problems require that additional parking and a new parking system be provided; and

WHEREAS, The proposed project would develop approximately 200 paved, and lighted spaces with transit routes and shelters north of West Alumni Avenue within easy walking distance to the North entrance to the Convocation Center in an area currently occupied by a vacant barn and associated structures, which would be removed as part of the project; and

WHEREAS, Approximately 800 surface parking spaces will be developed in immediate proximity to the North entrance to the Convocation Center, off of Plains Road with lighting, shuttle routes and shelters, in a field area presently devoted to multiple purposes, including on-grass parking for football games. These spaces would be developed with careful consideration for maintainability and the protection of the groundwater aquifer, employing appropriate design and technology to that end; and

WHEREAS, The creation of new parking facilities, strategically located on the Kingston Campus will accommodate approximately 1,000 daytime commuter vehicles while, meeting the projected parking requirements, within walking distance, for patrons attending events at the new Convocation Center nights and weekends. For maintenance purposes, particularly under winter conditions, a paving and drainage management system for this lot would be developed which permits efficient snow clearing while promoting safe recharge of run-off to the groundwater aquifer; and

WHEREAS, The new parking system will provide additional transit shelters, parking meters, improved shuttle services, lot control system, registration and enforcement system, gates and controls, lot improvements and security systems; and

WHEREAS, RIPTA is making $150,000 available for planning improved transportation services at this time in support of the development of an integrated plan to improve both parking conditions and to encourage and facilitate local and regional transit use; and

WHEREAS, It is anticipated that the University will receive $1 million in grant funds from the Federal Highway Administration, with the assistance of RIDOT in support of the implementation of this integrated, environmentally beneficial plan; and

WHEREAS, All permits from Department of Environmental Management will be acquired in advance; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws sections 35-18-1, et seq.) requires the General Assembly to provide its consent to the issuance of certain obligations; and

WHEREAS, The design, construction and equipping of these improvements will be financed through Rhode Island Health & Educational Building Corporation (RIHEBC) revenue bonds, with an expected term of twenty (20) years, and annual revenues for the operation and maintenance of the new parking lots and systems will be included in the annual operating budgets of the University; and

WHEREAS, The capital costs associated with this project are estimated to be $8,850,000 with one million dollars being sought from FHWA sources with the assistance of RIDOT. The total issuance would be approximately $7,975,000, with $7,050,000 deposited in the construction fund and $844,000 deposited in a capitalized interest fund, and the remaining bond sources plus associated interest earnings covering related costs of issuance. Total debt service payments over an expected twenty (20) year period on the $7,975,000 issuance are projected to be $12,388,000, assuming an average coupon of 5.1%. The debt service payments would be supported from new revenue streams derived from the sale of University parking permits and from an annual payment from the Convocation Center beginning in FY 2006 and, if available, from other sources of funds accruing to the University and; now, therefore, be it

RESOLVED, That new parking facilities and access control systems are critical to ensure sufficient parking for students and Convocation Center patrons, as well as providing secure management of parking lots and improved enforcement, and that this General Assembly hereby approves financing in an amount not to exceed $7,975,000, to be combined with $1,000,000 from federal sources, for the provision of new parking facilities and access control systems on the Kingston Campus of the University of Rhode Island; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by the General Assembly.

ARTICLE 29 SUB A AS AMENDED

RELATING TO MOTOR FUEL TAX

SECTION 1. Sections 31-36-20 and 31-36-7 of the General Laws in Chapter 31-36 entitled "Motor Fuel Tax" are hereby amended to read as follows:

31-36-20 Disposition of proceeds. - (a) Notwithstanding any other provision of law to the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter 37 of this title shall be applied to and held in a separate fund, and be deposited in the depositories that may be selected by the general treasurer to the credit of the fund, which fund shall be known as the intermodal surface transportation fund. Six and one-fourths cents ($0.0625) per gallon of the tax imposed and accruing for the liability under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under § 39-18-21, and one cent ($.01) per gallon shall be transferred to the elderly/disabled transportation program of the department of elderly affairs, and the remaining cents per gallon shall be available for general revenue as determined by the following schedule:

(i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for general revenue;

(ii) For the fiscal year 2001, one and three-fourths cents ($0.0175) shall be available for general revenue;

(iii) For the fiscal years 2002, one-fourths cent ($0.0025) shall be available for general revenue; and

(iv) For the fiscal year 2003, ~~no funding shall be available for general revenue~~ two and one-fourth cent (.0225) shall be available for general revenue.

(v) For the fiscal year 2004, and thereafter, two cents ($0.02) shall be available for general revenue.

(2) All deposits and transfers of funds made by the tax administrator under this section including those to the public transit authority, the department of elderly affairs, and the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the funds in question.

(b) Notwithstanding any other provision of law to the contrary, all other assets of the fund shall be dedicated to the department of transportation, subject to annual appropriation by the general assembly. The director of the department of transportation shall submit annually to the general assembly, budget office, and office of the governor an accounting of all amounts deposited in and credited to the fund, together with a planned budget for proposed expenditures for the succeeding fiscal year in compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized and directed to draw orders upon the general treasurer for any payments that are required from time to time, upon receipt of properly authenticated vouchers.

(c) If the fund's assets become insufficient to cover the expenditures of the department of transportation, not to exceed the amount authorized by the general assembly, the general treasurer, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in § 31-36-20, is authorized to advance to the fund any state moneys not being held for any particular purpose, for the purposes specified in § 31-36-20. However, all advances of this kind that are made to the fund shall be returned to the general fund immediately upon the receipt by the fund of regular proceeds adequate to repay these advances.

31-36-7. Monthly report of distributors -- Payment of tax. -- (a) State requirements. - Every distributor within this state shall, on or before the twentieth (20th) day of each month, render a report to the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor within this state and the amount of fuels sold. The distributor without this state will report in the same way on those fuels dispensed or used within this state during the preceding calendar month. If required by the tax administrator, the reports shall include with regard to purchases, the name of any person from whom fuels were purchased and the date and amount of each purchase, and with regard to sales, the name of any person to whom fuels were sold and the amount of each sale. The distributor, on filing these reports, shall pay tax to the administrator at the rate of ~~twenty-eight~~ thirty cents ~~($.28)~~ ($.30) per gallon on all taxable gallons of fuel sold or used in this state.

(b) Federal requirements. - In the event the federal government requires a certain portion of the gasoline tax to be dedicated for highway improvements, then the state controller is directed to establish a restricted receipt account and deposit that portion of gasoline tax receipts which will bring the state into federal compliance.

SECTION 2. This article shall take effect on July 1, 2002.

ARTICLE 30 SUB A

RELATING TO DEPARTMENT OF ENVIRONMENT

SECTION 1. Chapter 461 of the 1990 Public Laws repealed Chapter 42-17.1 of the General Laws entitled "Department of Environmental Management" and created Chapter 42-17.1 of the General Laws entitled "Department of the Environment. "Pursuant to Chapter 77, Article 11 of the 2001 Public Laws, the effective date of the Department of the Environment was extended until July 1, 2002 due to fiscal constraints. This delayed implementation affects sections 42-17.1-1 through 42-17.1-39 inclusive, and 42-17.1-41 through 42-17.1-44 inclusive. These same sections of chapter 42-17.1 have been annually extended since 1990.

Pursuant to chapter 77, Article 11 of the 2001 Public Laws, the effective date of section 42-17.1-40 of the General Laws in Chapter 42-17.1 entitled "Department of the Environment" was also extended by one year to July 1, 2002. This one-year extension of section 42-17.1-40 has also been enacted annually since 1990. The extension has the effect of ensuring the continuity of administrative functions of the boards, commissions departments, and/or agencies affected by the Department of the Environment statutes by postponing any transfer of functions and by continuing their functions.

The General Assembly finds that the Department of Envionmental Management, together with other boards, commissions, departments, and/or agencies referred to in Chapter 42-17.1 of the General Laws entitled "Department of Environmental Management," has continued to perform the functions and abide by the authorities set forth by that chapter and should continue to do so, regardless of the repeal of that chapter by Chapter 461 of the 1990 Public Laws

The General Assembly further finds that Chapter 42-17.1 of the General Laws entitled "Department of the Environment" has become obsolete and should be repealed.

SECTION 2. Chapter 42-17.1 of the General Laws entitled "Department of the Environment" is hereby repealed in its entirety.

~~42-17.1-1. Department established - Definitions.~~ (a) There is hereby established within the executive branch of the state government a department of the environment. The head of the department shall be the director of the department of the environment, who shall be in the unclassified service and who shall be appointed by the governor, with the advice and consent of the senate, and shall serve at the pleasure of the governor.

~~(b) The following definitions shall apply in the interpretation of the provisions of this chapter:~~

~~(1) "Commissioner of coastal resources" shall mean the commissioner or his or her duly authorized agent established in § 42-17.1-12.~~

~~(2) "Commissioner of environmental management" shall mean the commissioner or his or her duly authorized agent established in § 42-17.1-10 herein.~~

~~(3) "Commissioner of environmental protection" shall mean the commissioner or his or her duly authorized agency established in § 42-17.1-11.~~

~~(4) "Director" shall mean the director of the department of the environment of the state of Rhode Island or his or her duly authorized agent.~~

(5) "Person" shall include any individual, group of individuals, firm, corporation, association, partnership, or private or public entity, including a district, county, city, town, or other governmental unit or agent thereof, and in the case of a corporation, any individual having active and general supervision of the properties of such corporation.

(6) "Service" upon a corporation under this section shall be deemed to include service upon both the corporation and upon the person having active and general supervision of the properties of such corporation.

~~42-17.1-2. Branches established.~~ ~~Within the department of the environment there are established the following offices and branches:~~

~~(a) An administrative adjudication branch which shall carry out those functions of the department pursuant to the provisions of chapter 17.7 of this title;~~

(b) An environmental management branch which shall carry out those functions of the divisions of agriculture, ports and harbors, enforcement, fish and wildlife, forest environment, parks and recreation, and boating safety and including but not limited to those functions enumerated in § 42-17.1-3;

(c) An environmental protection branch which shall carry out those permitting, enforcement, and regulatory functions of the divisions of air, solid and hazardous waste, groundwater and individual sewage disposal systems, freshwater wetlands and water pollution control and including but not limited to those functions enumerated in § 42-17.1-4;

(d) A policy and planning branch which shall carry out the functions of program initiatives, crossmedia and intergovernmental planning, disbursement of grants and loans, review and approval of legislatively mandated watershed protection plans, and land acquisition, and which shall assist with coastal resources planning;

~~(e) An administration branch consisting of the offices of business affairs and employee relations and which branch shall carry out the functions of said offices;~~

(f) An information, education, and special projects branch which shall carry out those functions of information, assistance, publications, media releases, workshops, and programs for environmental education, waste reduction, recycling, and pollution source reduction, including but not limited to those functions enumerated in chapters 18.8, 19.6, 19.9, 19.10 and 19.11 of title 23.

(g) A water resources management branch which will carry out those functions of water supply management under the provisions of chapter 15 of title 46 and which shall administer agreements for bond programs for water supply.

~~42-17.1-2.1. Coastal resources management branch.~~ There shall be a coastal resources management branch which shall be a part of the department of environment for the purpose of developing and implementing a coordinated program of environmental protection and resource management and which shall carry out planning, management, permitting, enforcement, and regulatory functions at the direction of the coastal resources management council.

~~42-17.1-3. Divisions within the branch of environmental management.~~ ~~Within the environmental management branch, the following divisions are established:~~

(a) A division of agriculture which shall carry out those functions of the branch relating to agriculture, entomology, plant industry, and those divisions of agriculture functions of title 2 and § 2-1-22(i), and those functions in chapters 25, 25.2 and 25.3 of title 23, and chapter 17.2 of title 46, and such other functions as may from time to time be assigned by the commissioner;

(b) A division of ports and harbors which shall carry out those functions of the branch relating to harbors and harbor lines, pilotage, flood control, construction of port facilities, and such other functions and duties as may from time to time be assigned by the commissioner, except that the division shall not be responsible for the functions of inspection of dams and reservoirs, approving plans for construction or improvement of dams, reservoirs, and other structures in non-tidal waters, and the operation of stream-gauging stations in cooperation with the United States geological survey;

(c) A division of enforcement which shall enforce the laws and regulations of the department. In connection with such enforcement, the powers and duties of the director set forth in §§ 20-1-4 and 20-1-5 to the extent that those sections authorize the director to enforce laws, rules, and regulations and prosecute violations thereof, and §§ 20-1-6, 20-1-7, and 20-1-8 pertaining to appointment and powers of conservation officers and deputy wardens, are hereby transferred to the commissioners for environmental management and environmental protection as required to effectuate the provisions of this chapter, and the term "director" as used in said sections shall be deemed to mean "commissioner for environmental management" or "commissioner of environmental protection" as the case may be to the extent required to comply with this section. The division of enforcement shall cooperate with the enforcement personnel of the coastal resources management council and with other enforcement agencies of the state and its municipalities, and shall administer all of the policing, enforcing, licensing, registration, and inspection functions of the department and such other functions and duties as may from time to time be assigned by the commissioner;

(d) A division of fish and wildlife which shall carry out those functions of the branch relating to the administration of hunting, fishing, and shell fisheries; wetlands, marshlands, and wildlife in title 20, and such other functions and duties as may from time to time be assigned by the commissioner;

(e) A division of forest environment which shall carry out those functions of the branch relating to the administration of forests and natural areas, including programs for utilization, conservation, forest fire protection, and improvements of these areas; assisting other agencies and local governments in urban programs relating to trees, forests, green belts, and the environment, and management of properties controlled by the water resources board; and those forestry functions in title 2; and such other functions and duties as may from time to time be assigned by the commissioner;

(f) A division of parks and recreation which shall carry out those functions of the branch relating to the operation and maintenance of parks and recreational areas and the establishment and maintenance of such additional recreational areas as may from time to time be acquired and such other functions and duties as may from time to time be assigned by the commissioner;

(g) A division of boating safety which shall carry out those functions of the department relating to the development and administration of a coordinated safe boating program as approved by the national association of state boating law administrators;

~~(2) Administration of the division of boating safety shall be the responsibility of the state boating law administrator (administrator) whose duties shall include:~~

~~(A) The enforcement of all laws relating to the chapter;~~

~~(B) The enforcement, along with the boating safety enforcement officer, of laws, rules and regulations relating to "Regulation of Boats", title 46, chapter 22, including the power:~~

~~(i) To execute all warrants and search warrants for the violation of laws, rules, and regulations relating to the chapter.~~

~~(ii) To serve subpoenas issued for the trial of all offenses hereunder.~~

~~(iii) To carry firearms or other weapons, concealed or otherwise, in the course of and in performance of their duties under this chapter.~~

(iv) To arrest without warrant and on view any person found violating any law, rule, or regulation relating to the chapter, take that person before a court having jurisdiction for trial, detain that person in custody at the expense of the state until arraignment and to make and execute complaints within any district to the justice or clerk of the court against any person for any of the offenses enumerated under the chapter committed within the district.

~~(v) Boating safety enforcement officers shall not be required to give surety for costs upon any complaint made by him or her.~~

~~(C) The development and administration of a coordinated safe boating program.~~

~~(D) The establishment and enforcement of such rules and regulations as are deemed necessary to achieve the purposes of the Model Safe Boating Act as approved by the administrator.~~

~~(E) Serving as the liaison to the United States coast guard.~~

(F) The administration of the operation and control of all state-owned and state-maintained boat ramps. The administrator shall permit the use of such ramps by Rhode Island owners of any boat or motorboat consistent with the limitations on speed on bodies of water as set forth in chapter 22 of title 46. This authority shall not supercede any currently existing state or federal requirements or program oversight.

~~(G) The administration of the registration process for all boats.~~

~~42-17.1-4. Divisions within the branch of environmental protection.~~ ~~Within the environmental protection branch, the following divisions are established:~~

(a) A division of air pollution control which shall carry out those functions including but not limited to permitting, enforcement, and regulatory matters relating thereto including but not limited to those functions in chapters 23 and 23.1 of title 23, and such other functions and duties as may from time to time be assigned by the commissioner;

(b) A division of solid and hazardous waste which shall carry out those functions including but not limited to permitting, enforcement and regulatory functions relating to but not limited to chapters 18.9, 19.1, 19.4, 19.8 of title 23, and such other functions and duties as may from time to time be assigned by the commissioner;

(c) A division of groundwater and individual sewage disposal systems which shall carry out those permitting, enforcement, and regulatory functions relating to groundwater protection and regulation of individual sewage disposal systems, including, but not limited to those functions set forth in § 42-17.1-9(h)(1) herein and chapter 19.5 and chapters 12, 12.1, 13.1, and 13.2 of title 46, and such other functions and duties as may from time to time be assigned by the commissioner.

(d) A division of freshwater wetlands which shall carry out those functions including but not limited to permitting, enforcement, and regulatory functions relating but not limited to those functions in chapter 19 of title 46, and in § 2-1-18 et seq., except where the authority is vested in the division of agriculture under § 2-1-22, and such other functions and duties as may from time to time be assigned by the commissioner;

(e) A division of water pollution control which shall carry out those permitting, enforcement, and regulatory functions relating thereto including, but not limited to those functions in chapters 12, 16 and 17.1 of title 46 and chapter 8.1 of title 20, and such other functions and duties as may from time to time be assigned by the commissioner.

(f) A division of criminal investigation, which shall coordinate all criminal enforcement proceedings for the department. The commissioner for environmental protection shall have the authority to assign investigative agents to other branches or divisions, or to the director, as required to effectuate the purposes of this chapter, and in addition thereto, shall have authority to appoint such number of investigative agents, under the supervision of a commander, as may be necessary for the detection and prosecution of any violation of the laws of the state enumerated in this chapter. Investigative agents shall be deemed peace officers within the meaning of § 11-32-1. The commissioner of environmental protection, and each investigative agent, shall have the power:

~~(1) To enforce all laws, rules, and regulations of the state pertaining to:~~

~~(i) Hazardous and solid waste transportation, storage, and disposal and any other laws of the state pertaining to solid and/or hazardous waste;~~

~~(ii) Air pollution and water pollution, including groundwater pollution;~~

~~(iii) Freshwater wetlands, dams;~~

~~(iv) Drinking water supplies;~~

~~Nothing contained herein shall abrogate or affect the powers and duties of the department of health in chapters 13 and 14 of title 46.~~

~~(2) To issue summonses and to execute all warrants and search warrants for the violation of the laws, rules, and regulations enumerated in this chapter and subsection (6);~~

~~(3) To serve subpoenas for the trial or hearing of all offenses against the laws, rules, and regulations enumerated by this chapter and subsection (6);~~

(4) To arrest without a warrant any person found violating any law, rule, or regulation enumerated in this chapter or in subsection (6), take such person before a court of competent jurisdiction and detain such person in custody of the state until arraignment except when a summons can be issued in accordance with § 12-7-11;

~~(5) To carry firearms or other weapons, concealed or otherwise, in the course of and in the performance of the duties of the office;~~

(6) To arrest without a warrant, to execute all warrants and search warrants, and to make and execute complaints within said district to the justice or clerk of the district court without recognizance or surety, against any person for assault; assault with a dangerous weapon; larceny; vandalism; and obstructing an officer in the execution of his or her duty.

~~42-17.1-5. Appointment of commissioners - Assistant commissioners.~~ (a) The head of the environmental protection branch shall be the commissioner of environmental protection, who shall be in the unclassified service and shall be appointed by the governor, with the advice and consent of the senate. There shall be an assistant commissioner of environmental protection who shall be in the classified service.

(b) The head of the environmental management branch shall be the commissioner of environmental management, who shall be in the unclassified service and shall be appointed by the governor, with the advice and consent of the senate. There shall be an assistant commissioner for environmental service who shall be in the classified service.

(c) The head of the coastal resources management branch shall be the commissioner of coastal resources who shall be in the unclassified service and shall be appointed by the coastal resources management council. There shall be an assistant commissioner for coastal resources management who shall be in the unclassified service and who shall be appointed by the coastal resources management council.

~~42-17.1-6. Director's staff.~~ ~~The director shall designate an assistant, a legislative liaison, and a secretary who shall perform such functions necessary to assist the director in the performance of his or her powers and duties.~~

~~42-17.1-7. Appointment of assistant directors.~~ The director shall appoint the assistant directors who shall be in the classified service. The head of the policy and planning branch shall be the assistant director for policy and planning. The head of the administration branch shall be the assistant director for administration. The head of the information, education, and special projects branch shall be the assistant director for information, education, and special projects. The head of the water resources management branch shall be the assistant director for water resources management.

~~42-17.1-8. Appointment of attorneys.~~ The director shall assign and appoint attorneys to represent the interests of the department. The commissioners of environmental management and environmental protection shall assign and appoint attorneys to represent the interests of their respective branches. The coastal resources management council shall appoint attorneys to represent the coastal resources management branch.

~~42-17.1-9. Powers and duties of the director.~~ ~~The director of the department of the environment shall have the following powers and duties:~~

~~(a) To develop policies to guide all environmental programs;~~

~~(b) To advocate and represent the interests of the environment before the federal and state governments, agencies, courts and the general assembly;~~

(c) To oversee and coordinate the activities of the branches of environmental management and environmental protection and to supervise and control the branches of policy and planning, administration, information, education and special projects, and water resource management;

~~(d) To prepare an annual state of the environment report for presentation to the governor and the general assembly;~~

~~(e) To prepare an annual five (5) year plan for environmental protection and management for presentation to the governor and the general assembly;~~

(f) To participate as an advocate in environmental permitting, licensing, and enforcement proceedings within the branches of environmental management, environmental protection, or coastal resources management or to intervene, as a matter of right, in any such proceeding pending in the administrative adjudication branch or in the federal and state courts, provided, however, that except as otherwise specifically provided in this chapter, the director shall have no authority to issue or to deny or to modify or to amend a permit or a license, arising from the regulatory authority contained in the environmental management, environmental regulatory or coastal resources management branches provided, however, that the director shall have the authority to initiate a civil action in any court of competent jurisdiction against any person to enforce, or to restrain the violation of, any promulgated state or federal environmental quality standard which is designed to prevent or minimize pollution, impairment, or destruction of the environment.

~~(g) To establish policies for the coordinated review of permit applications when review and approval of an application is required by more than one branch of the department;~~

(h) To develop, adopt, modify, and repeal all rules and regulations to carry out the functions of the department under any provision of the laws of this state and under any provision of law authorizing the promulgation of rules and regulations by the director of the department of environmental management, including but not limited to:

~~(1) Establishing minimum standards relating to the location, design, construction, and maintenance of all sewage disposal systems;~~

~~(2) Establishing minimum standards for the establishment and maintenance of salutary environmental conditions;~~

~~(3) Establishing minimum standards for permissible types of septage, industrial waste disposal sites, and waste oil sites;~~

(4) Establishing minimum standards for permissible types of refuse disposal facilities, the design, construction, operation, and maintenance of disposal facilities; and the location of various types of facilities, except those mandated by statute;

~~(5) Establishing standards for all administrative and enforcement functions necessary for the administration of chapters 19.1 and 19.4 of title 23.~~

(6) Designating in writing with the approval of the applicable commissioner any person in any department of the state government or any official of a district, county, city, town, or other governmental unit, with that official's consent, to enforce any rule, regulation, or order promulgated and adopted by the director under any provision of law;

~~(7) Issuing such rules, regulations, and/or orders as may be necessary to carry out the duties assigned to the director or to the commissioners and/or to the department by any provision of law;~~

(8) Establishing fee schedules by regulation with the approval of the governor for the processing of applications and the performing of related activities in connection with the department's responsibilities including but not limited to applications pursuant to § 42-17.1-4; chapters 18.9, 19.1, 19.5, and 23 of title 23; and chapters 12 and 13.1 of title 46, insofar as such relate to water quality certifications and related reviews performed pursuant to provisions of the federal Clean Water Act, 33 U.S.C. § 1251 et seq., the regulation and administration of underground storage tanks and all other programs administered, under that chapter 12.1 and reviews related to activities performed under the provisions of the Groundwater Protection Act, and § 2-1-18 et seq.

(9) Consistent with federal standards, to issue such rules, regulations and orders as may be necessary to establish requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and nonsudden accidental releases arising from operating underground storage tanks.

~~(i) To cooperate with, advise, and guide conservation commissions of cities and towns created under chapter 35 of title 45.~~

(j) To assist municipal water supply agencies and commercial, residential, and institutional water users in developing and implementing programs, plans, and policies for the safe and efficient administration, management, conservation, and protection of the water supply, including plans for water supply emergencies;

(k) To assist municipal water supply agencies in implementing plans and programs developed by the division of planning of the department of administration for the augmentation of water supplies when demonstrable need exists following the achievement of reasonable levels of conservation, management, and protection;

(l) To assist municipal water supply agencies in implementing plans and programs developed by the division of state planning of the department of administration for integrating public water supply systems with public sewer systems;

(m) To conduct biennial on-site inspections of all public water supply wells and surface water supplies and to report to the director of the department of health and to any community serviced by such supply any recommendations for the safe and efficient administration, management, and protection of such wells and supplies;

~~(n) To regulate the proper development, protection, conservation, and use of the water resources of the state pursuant to chapter 15 of title 46;~~

(o) To apply for and accept grants and bequests of funds from other states, interstate agencies and independent authorities, and private firms, individuals and foundations, for the purpose of carrying out his lawful responsibilities. The funds shall be deposited with the general treasurer in a restricted receipt account established within the department to permit funds to be expended in accordance with the provisions of the grant or bequest;

(p) To supervise and control the protection, development, planning, and utilization of the natural resources of the state, such resources including (but not limited to) water, plants, trees, soil, clay, sand, gravel, rocks and other minerals, air, mammals, birds, reptiles, amphibians, fish, shellfish, and other forms of aquatic, insect, and animal life;

(q) To take such steps including but not limited to matters related to funding as may be necessary to establish recreational facilities and areas as are deemed to be in the public interest; to acquire any interest in land by purchase, gift, bequest or devise necessary or incidental for carrying out his or her duties and responsibilities under this chapter, and/or to enter into contracts and agreements with persons or groups to facilitate acquisition of land for preservation or development of recreational resources for the benefit of the public;

~~(r) To exercise the powers and duties as set forth in chapter 24.3 of title 23;~~

(s) Subject to the prior approval of the governor, to assign or reassign any functions, duties, or powers established by this chapter to any agency within the department, except as hereinafter limited;

(t) To establish and maintain a list or inventory of areas within the state worthy of special designation as "scenic" to include but not be limited to certain state roads or highways, scenic vistas and scenic areas, and to make the list available to the public;

(u) In order for the director to effectuate the powers and duties given to him or her herein, the director is authorized to issue licenses and permits and to take administrative, civil and/or criminal action to enforce the authorities delegated as enforcement programs to the policy and planning branch, the information, education and special projects branch, the water resources branch, and the administrative branch. Nothing herein shall be construed to abrogate or assume the powers granted to the commissioners;

(v) To conduct surveys of the present private and public camping and other recreational areas available and to determine the need for and location of such other camping and recreational areas as may be deemed necessary and in the public interest;

(w) Additionally, the commissioner for environmental management shall take such additional steps including but not limited to matters related to funding as may be necessary to establish such other additional recreational facilities and areas as are deemed to be in the public interest;

(x) To annually prepare in consultation with the commissioners of environmental management and environmental protection branches an operating budget and a capital development budget for the department of the environment and its various branches; said budgets to be submitted by the director to the governor for his or her approval;

(1) The operating budget shall account for and provide for the disbursement, subject to statutory limitations on disbursements from restricted receipt accounts of all anticipated revenues, grants, and receipts, regardless of their source, including restricted receipt accounts, collected by any branch of the department necessary to support the operations, activities and responsibilities of the department and its branches.

(2) The operating budget shall likewise identify funds requested to be appropriated by the General Assembly to support the operations, activities, and responsibilities of the department and its branches.

(3) The capital development budget shall likewise account for and provide for the disbursement, subject to statutory limitations on disbursements from restricted receipt accounts, of all anticipated revenues, grants and receipts, regardless of their source, collected by any branch of the department, including restricted receipt accounts, necessary to undertake the development of or improvement of facilities maintained by the department and its branches and shall additionally identify funds requested to be obtained by the sale of bonds.

(y) Nothing contained in this section shall abrogate or affect the powers of the coastal resources management council enumerated in chapter 23 of title 46 and, provided further, that the coastal resources management council budget shall be submitted by the commissioner of coastal resources to the director of the environment to be included as a separate item in the budget submission to the governor and all present services provided by the department of environmental management to the coastal resources management council shall be provided to the coastal resources management council by the department of the environment.

~~42-17.1-10. Powers and duties - Commissioner of environmental management branch.~~ ~~The commissioner of environmental management shall have the following powers and duties:~~

(a) To supervise and control the implementation of departmental laws, departmental policies, and regulations relating to the protection, development, and utilization of the natural resources of the state;

(b) To exercise all functions, powers, and duties relating to the implementation of laws, departmental policies and regulations heretofore vested in the department of agriculture and conservation, and in each of the divisions of the department, such as the promotion of agriculture and animal husbandry in their several divisions, including the inspection and suppression of contagious diseases among animals, the regulation of the marketing of farm products, the inspection of orchards and nurseries, the protection of trees and shrubs from injurious insects and diseases, protection from forest fires, the inspection of apiaries and the suppression of contagious diseases among bees, prevention of the sale of adulterated or misbranded agricultural seeds, promotion and encouragement of the work of farm bureaus in cooperation with the University of Rhode Island farmers' institutes and the various organizations established for the purpose of developing an interest in agriculture, together with such other agencies and activities as the governor and the general assembly may from time to time place under the control of the department and the branch, and as heretofore vested by such of the following chapters and sections of the general laws as are presently applicable to the department and which were previously applicable to the department of environmental management, department of natural resources, and the department of agriculture and conservation or to any of its divisions; §§ 2-1-1 - 2-1-10 and 2-1-21(i), and chapters 2 - 23 of title 2; chapters 1 - 17, inclusive, in title 4; chapters 1 - 19, inclusive, of title 20; chapters 1 - 32, inclusive, of title 21; chapter 7 of title 23; and by any other general or public law relating to the department of agriculture and conservation or to any of its divisions or bureaus;

(c) To exercise all the functions, powers, and duties relating to the implementation of the General Laws and departmental policies and regulations heretofore vested in the division of parks and recreation of the department of public works by chapters 1 and 5 of title 32; by chapter 22.5 of title 23; and by any other general or public law relating to the division of parks and recreation;

(d) To exercise all the functions, powers, and duties relating to the implementation of departmental policies and regulations heretofore vested in the division of harbors and rivers of the department of public works, or in the department itself by such as were previously applicable to the division or the department, of chapters 1 - 11 and chapters 22 and 22.1 and sections thereof, of title 46, and by any other general or public law relating to the division of harbors and rivers, except those duties delegated to the coastal resources management council;

(e) To exercise all the functions, powers, and duties relating to the implementation of departmental policies and regulations heretofore vested in the department of health by chapter 25 of title 23, and including but not limited to chapters 3, 4, 5, 6, 7, 9, 11, 13, 18, and 19 of title 4, and those functions, powers, and duties formerly vested in the director of the department of environmental management by the provisions of § 21-2-22, together with other powers and duties of the director of the department of health as are incidental to or necessary for the performance of the functions herein;

~~(f) To enter, examine, or survey at any reasonable time such places as the commissioner deems necessary to carry out his or her responsibilities under any provision of law;~~

(g) To give notice of an alleged violation of law to the person responsible therefor whenever the commissioner determines that there are reasonable grounds to believe that there is a violation of any provision of law within his or her jurisdiction or of any rule or regulation adopted pursuant to authority granted to the department of the environment, unless other notice and hearing procedure is specifically provided by that law;

~~(h) To impose administrative penalties in accordance with the provisions of chapter 17.6 of this title and to direct that these penalties be paid into the environmental protection branch fund;~~

~~(i) To cooperate with, advise, and guide conservation commissions of cities and towns created under chapter 35 of title 45;~~

~~(j) To make recommendations to the director relative to rules and regulations promulgated by the director;~~

(k) To bring civil or injunctive actions in any court of competent jurisdiction if in the judgment of the commissioner any firm, person, or corporation has violated the provisions of any law, rule, or regulation within his or her jurisdiction. Whenever such a prosecution shall take place, the commissioner shall not be required to give surety for the payment of costs. Any criminal prosecutions brought in the name of the commissioner shall be prosecuted by the attorney general.

~~42-17.1-11. Powers and duties - Commissioner of environmental protection branch.~~ ~~The commissioner of environmental protection shall have the following powers and duties:~~

(a) To enforce, by such means as provided by law, the policies and regulations adopted by the director for the quality of air, water, solid and hazardous waste, freshwater wetlands, groundwater, and the design, construction and operation of all sewage disposal systems. Any order or notice issued by the said commissioner relating to the location, design, construction or maintenance of a sewage disposal system shall be eligible for recording under chapter 13 of title 34. The commissioner shall forward the order or notice to the city or town wherein the subject property is located and the order or notice shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. Any subsequent transferee of that property shall be responsible for complying with the requirements of the order or notice. Upon satisfactory completion of the requirements of the order or notice, the commissioner shall provide written notice of the same, which notice shall be similarly eligible for recording. The original written notice shall be forwarded to the city or town wherein the subject property is located and the notice of satisfactory completion shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. A copy of the written notice shall be forwarded to the owner of the subject property within five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject property within thirty (30) days after satisfactory completion. Nothing herein shall be construed to abrogate or modify any recording provision embodied in other titles of the General Laws.

(b)(1) To carry out all functions, powers, and duties relating to the implementation of departmental policies and regulations for the administration of chapters 18.9, 19.1, 19.4, 19.5, 19.8, and 23.1 of title 23; and chapters 12, 12.1, 13, 13.1, 13.2, 16, 17.1, and 19 of title 46; and § 2-1-18 et seq., in title 2.

~~(2) Nothing contained herein shall abrogate or affect the powers and duties of the department of health in chapter 13 of title 46, or in chapter 14 of title 46.~~

(c)(1) To enforce such laws, rules, and regulations, and/or orders as may be necessary to carry out the duties assigned by the director or to the commissioner, and/or to the department by any provision of law; and to conduct such investigations and hearings and to issue, suspend, and revoke such permits or licenses as may be necessary to enforce those rules, regulations, and orders.

(2) Notwithstanding the provisions of § 42-35-9 to the contrary, no informal disposition of a contested permitting and/or licensing matter shall occur where resolution substantially deviates from the original application unless all interested parties shall be notified of said proposed resolution and provided with opportunity to comment upon said resolution pursuant to applicable law and any rules and regulations established by the director;

~~(d) To enter, examine, or survey at any reasonable time such places as the commissioner deems necessary to carry out his or her responsibilities under any provision of law;~~

(e) To give notice of an alleged violation of law to the person responsible therefor whenever the commissioner determines that there are reasonable grounds to believe that there is a violation of any provision of law within his or her jurisdiction or of any rule or regulation adopted pursuant to authority granted to the department of the environment, unless other notice and hearing procedure is specifically provided by that law;

~~(f) To impose administrative penalties in accordance with the provisions of chapter 17.6 of this title and to direct that such penalties be paid into the environmental protection branch fund;~~

(g) Consistent with federal standards, enforce such rules, regulations and orders as may be promulgated by the director which establish requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and nonsudden accidental releases arising from operating underground storage tanks;

~~(h) To make recommendations to the director relative to rules and regulations promulgated by the director;~~

(i) To bring civil or injunctive actions in any court of competent jurisdiction if in the judgment of the commissioner any firm, person, or corporation has violated the provisions of any law, rule, or regulation within his or her jurisdiction. Whenever such a prosecution shall take place, the commissioner shall not be required to give surety for the payment of costs. Any criminal prosecutions brought in the name of the commissioner shall be prosecuted by the attorney general.

~~42-17.1-12. Powers and duties - Commissioner of coastal resources management branch.~~ ~~The commissioner of the coastal resources management branch shall have the following powers and duties:~~

(a) To issue, modify, or deny permits for any work in, above, or beneath the areas under coastal resources management council jurisdiction, including conduct of any form of aquaculture, at the direction of the coastal resources management council.

(b) To issue, modify, or deny permits for dredging, filling, or any other physical alteration of coastal wetlands and all directly related contiguous areas which are necessary to preserve the integrity of the wetlands, at the direction of the coastal resources management council.

(c) To grant licenses, permits, and easements for the use of coastal resources which are held in trust by the state for all its citizens, and impose fees for private use of these resources, at the direction of the coastal resources management council.

~~(d) To carry out all other functions and duties delegated by the coastal resources management council.~~

(e) Nothing contained herein shall abrogate or affect the powers and duties of the director and/or the commissioners of environmental management and environmental protection in areas of their respective jurisdiction.

~~42-17.1-13. Advisory council on environmental affairs.~~ (a) The advisory council on environmental affairs shall, among other things, advise the governor and the director on matters involving environmental management, environmental protection, natural resources, policies, plans, and goals for the department, identify problems within the various functions of the department, assist the director in the exploration and development of new initiatives, review quarterly, annual, and five (5) year reports prepared by the director, review the interim and final reports prepared by the environmental quality study commission and explore and develop alternatives for the implementation of the goals, initiatives, and directives from the reports. The council shall report to the governor, the general assembly and the director and shall meet not less than once every three (3) months. The members shall meet initially at the call of the governor and shall at their first meeting elect a chairman, secretary and any other officers which are deemed necessary. Council members shall not be compensated for services. Meetings may be called by the chairman or by any five (5) members. The chairman shall establish the agenda for council meetings. The assistant director for planning for the department may provide to the council, following a request, technical assistance, resources and/or support staff.

(b) The council shall consist of eleven (11) members as follows: one member from the Rhode Island senate appointed by the President of the Senate; one member from the Rhode Island house of representatives appointed by the speaker of the house of representatives; and nine (9) members from the general public appointed by the governor. The general public members shall have interest in natural resources, environmental management and protection, and/or public or environmental health and may be selected from residential and/or commercial builders or land developers, marine industries, agricultural industries, hunting and sport fishing groups, environmental advocacy groups, conservation groups, academicians, and engineering or consulting firms. The governor shall endeavor to appoint members representing the diverse constituents of the department.

(c) When this chapter takes effect, the governor shall appoint four (4) members who shall serve until the thirtieth day of June, 1991, and five (5) members who shall serve until the thirtieth day of June, 1992, and all to serve until their successors are appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the governor shall appoint successors to the members of the council whose terms shall expire in such year, to hold office commencing on the first day of July in said year for three (3) year terms and until their respective successors are appointed and qualified. The appointees of the President of the Senate and the speaker of the house of representatives shall serve until the thirtieth day of June, 1991, and shall serve until their successors are appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the President of the Senate shall appoint a successor to the member of the council whose term shall expire in such year to hold office commencing on the first day of July in said year for a three (3) year term and until a successor is appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the speaker of the house of representatives shall appoint a successor to the member of the council whose term shall expire in such year to hold office commencing on the first day of July in said year for a three (3) year term and until a successor is appointed and qualified. Any vacancy which may occur in the council shall be filled by the applicable appointing official for the remainder of the unexpired term.

(b) The council shall consist of eleven (11) members as follows: one member from the Rhode Island senate appointed by the president of the senate; one member from the Rhode Island house of representatives appointed by the speaker of the house of representatives; and nine (9) members from the general public appointed by the governor. The general public members shall have interest in natural resources, environmental management and protection, and/or public or environmental health and may be selected from residential and/or commercial builders or land developers, marine industries, agricultural industries, hunting and sport fishing groups, environmental advocacy groups, conservation groups, academicians, and engineering or consulting firms. The governor shall endeavor to appoint members representing the diverse constituents of the department.

(c) When this chapter takes effect, the governor shall appoint four (4) members who shall serve until the thirtieth day of June, 1991, and five (5) members who shall serve until the thirtieth day of June, 1992, and all to serve until their successors are appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the governor shall appoint successors to the members of the council whose terms shall expire in such year, to hold office commencing on the first day of July in said year for three (3) year terms and until their respective successors are appointed and qualified. The appointees of the president of the senate and the speaker of the house of representatives shall serve until the thirtieth day of June, 1991, and shall serve until their successors are appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the president of the senate shall appoint a successor to the member of the council whose term shall expire in such year to hold office commencing on the first day of July in said year for a three (3) year term and until a successor is appointed and qualified. In the month of May, 1991, and in the month of May in each applicable year thereafter, the speaker of the house of representatives shall appoint a successor to the member of the council whose term shall expire in such year to hold office commencing on the first day of July in said year for a three (3) year term and until a successor is appointed and qualified. Any vacancy which may occur in the council shall be filled by the applicable appointing official for the remainder of the unexpired term.

~~42-17.1-14. Statewide environmental plan.~~ (a) The director of the department of the environment shall formulate and from time to time revise a statewide environmental plan for the management and protection of the quality of the environment and the natural resources of the state in furtherance of the legislative policy. The plan shall establish environmental goals and objectives and describe strategies for their achievement. In developing the plan the director shall consider any other statewide policies and plans he or she deems appropriate. The first of such plans shall be submitted to the governor and the general assembly on or before January 1, 1992, and revisions, at intervals of five (5) years thereafter, shall be made thereto. This plan shall serve as a guide for the people of the state and for the state and its political subdivisions for the preservation of the environment.

~~(b) The advisory council to the department of the environment shall assist the director in preparing the plan and any revisions thereto.~~

~~(c) The director shall annually conduct a conference to report achievement of the goals and objectives established in the plan and to encourage public discussion of environmental concerns.~~

~~(d) The director of the department of the environment shall submit annually to the governor and the general assembly an environmental quality report, which shall set forth:~~

~~(1) The status of the major environmental categories including, but not limited to, the air, the water and the land environment;~~

~~(2) Current and foreseeable trends in the quality management and utilization of the environment and the effect of such trends on the social, economic, and health requirements of the state;~~

~~(3) The adequacy of available natural resources for fulfilling human and economic requirements of the state in the light of projected population pressures;~~

(4) A review of the programs and activities of the state and local governments and private organizations with particular reference to their effect on the environment and on the conservation, development, and utilization of natural resources;

~~(5) A program for remedying the deficiencies of existing programs and activities, together with recommendations for legislation; and~~

~~(6) The progress towards achievement of the goals and objectives established in the statewide environmental plan.~~

~~42-17.1-15. Powers of the policy and planning branch.~~ The policy and planning branch shall consist of the division of planning and development, the Narragansett Bay Project, and the division of environmental planning. The division of environmental planning shall coordinate the administration of permitting of projects within the branches of environmental management and environmental protection, coordinate all data base activities, and coordinate the development of rules and regulations to be administered by all branches, provided, however, that this section shall not abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of title 46.

~~42-17.1-16. Powers of the water supply management branch.~~ The water supply management branch shall serve as staff to the water resources board established in chapter 15.1 of title 46 and shall perform water supply planning, development, and protection, and shall oversee and coordinate water supply use and reduction of use and such other functions and duties as may from time to time be assigned by the director. Nothing contained herein shall abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of title 46.

~~42-17.1-17. Permits and licenses - Issuance or denial - Judicial review.~~ (a) The commissioner of the branch with jurisdiction over the permit, license, or enforcement proceeding shall review all decisions rendered by the administrative adjudication branch as pertaining to permitting, licensing, or enforcement proceedings. The commissioner may in his or her discretion adopt, modify, or reject the findings of fact or conclusions of law provided, however, that any such modification or rejection of the proposed findings of fact or conclusions of law shall be in writing and shall state the rationale therefor. In all permitting or licensing proceedings, and based upon said review, the commissioner shall issue or deny the permit or the license. The commissioner shall have no direct or indirect involvement in the investigation of or presentation of any contested permitting, licensing, or enforcement proceeding. Notwithstanding the provisions of § 42-35-13, the commissioner shall have no communication, directly or indirectly, with a hearing officer relating to any issue of fact or law on any matter then pending before the hearing officer.

(b) Any party or intervenor to a contested permitting, licensing, or enforcement proceeding aggrieved by the decision of the commissioner may, within thirty (30) days from the date of issuance of the commissioner's decision, obtain judicial review in the manner and according to the standards and procedures provided in chapter 35 of title 42.

(c) There are hereby transferred from the director of the department of environmental management to the respective commissioners of the department of the environment all functions of the director as apply to these commissioners relating to enforcement, permitting, or licensing proceedings and including all administrative adjudication proceedings wherein said director adopts, modifies, or rejects a decision rendered by a hearing officer of said administrative adjudication branch. Nothing herein shall abrogate or effect the powers and duties of the coastal resources management council in chapter 23 of title 46.

~~42-17.1-18. Transfer of functions from existing divisions of the department to the environmental protection branch.~~ (a) There are hereby transferred to the division of air pollution control, those functions of the division of air and hazardous materials of the department of environmental management as pertain to air and air pollution control.

(b) There are hereby transferred to the division of solid and hazardous waste, those functions of the department of environmental management as pertain to hazardous wastes and materials and those functions of the division as pertain to solid waste.

(c) There are hereby transferred to the division of groundwater and individual sewage disposal systems those functions of the division of groundwater and freshwater wetlands of the department of environmental management as pertain to groundwater and individual sewage disposal systems.

(d) There are hereby transferred to the division of freshwater wetlands those functions of the division of groundwater and freshwater wetlands of the department of environmental management as pertain to freshwater wetlands.

(e) There are hereby transferred to the environmental protection branch, from the department of environmental management, so much of the other functions or parts of functions, employees, and resources, which are related thereto for administration, as are incidental to and necessary for the performance of the functions set forth in subsections (a) - (d).

~~42-17.1-19. Notice of violations.~~ (a) The commissioner with jurisdiction over an alleged violation of any law or any departmental rule or regulation, shall give notice of the violation and shall have authority to impose an administrative penalty pursuant to chapter 17.6 of title 42. The notice shall provide for a time within which the alleged violation shall be remedied, and shall inform the person to whom it is directed that a written request for a hearing on the alleged violation may be filed with the administrative adjudication branch within ten (10) days after service of the notice. The notice will be deemed properly served upon a person if a copy thereof is served upon him or her personally, or sent by registered or certified mail to his or her last known address, or if he or she is served with notice by any other method of service now or hereafter authorized in a civil action under the laws of this state. If no written request for a hearing is made to the administrative adjudication branch within ten (10) days of the service of notice, the notice of violation shall automatically become a compliance order. This order shall constitute a final administrative adjudication from which no appeal may be taken.

(b) Whenever the commissioner determines that there exists a violation of any law, rule, or regulation within his or her jurisdiction which requires immediate action to protect the environment, he or she may, without prior notice of violation or hearing, issue an immediate compliance order stating the existence of the violation and the remedial or other action he or she deems necessary. The compliance order shall become effective immediately upon service or within such time as is specified by the commissioner in the order. No request for a hearing on an immediate compliance order may be made.

(c) Any immediate compliance order issued under this section without notice and prior hearing shall be effective for no longer than forty-five (45) days, provided, however, that for good cause shown the order may be extended one additional period not exceeding forty-five (45) days.

(d) If a person upon whom a notice of violation has been served under the provisions of this section or if a person aggrieved by any such notice of violation requests a hearing before the administrative adjudication branch, a time and place for the hearing shall be set by the administrative adjudication branch, and shall give the person requesting that hearing at least five (5) days' written notice thereof. After the hearing, the hearing officer shall make written proposed findings of fact and conclusions of law and shall sustain, modify, or withdraw the notice of violation. The hearing officer shall submit the proposed findings of fact and conclusions of law to the commissioner for review and final decision. If the commissioner sustains or modifies the notice, that decision shall be deemed a final administrative adjudication and compliance order and shall be served upon the person responsible in any manner provided for the service of the notice in this section.

~~(e) The compliance order shall state a time within which the violation shall be remedied, and the original time specified in the notice of violation shall be extended to the time set in the order.~~

(f) Whenever a compliance order has become effective, whether automatically where no hearing has been requested, where an immediate compliance order has been issued, or upon decision following a hearing, the commissioner may institute injunction proceedings in the superior court of the state for enforcement of the compliance order and for appropriate temporary relief, and in that proceeding the correctness of a compliance order shall be presumed and the person attacking the order shall bear the burden of proving error in the compliance order, except that the commissioner shall bear the burden of proving in the proceeding the correctness of an immediate compliance order. The remedy provided for in this section shall be cumulative and not exclusive and shall be in addition to remedies relating to the removal or abatement of nuisances or any other remedies provided by law.

(g) Any party aggrieved by a final judgment of the superior court may, within thirty (30) days from the date of entry of such judgment, petition the supreme court for a writ of certiorari or by right as provided by law. Any petition for writ of certiorari shall set forth the errors claimed. Upon the filing of a petition for writ of certiorari with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of certiorari.

~~42-17.1-20. Public and private land trusts.~~ ~~In addition to the powers and duties in § 42-17.1-9, the director shall have the power:~~

~~(a) To establish and maintain an inventory of all interest in land held by public or private land trusts and to exercise all powers vested herein to insure the preservation of all identified lands.~~

(b) The director may promulgate and enforce rules and regulations to provide for the orderly and consistent protection, management, continuity of ownership and purpose, and centralized records-keeping for lands, water, and open spaces owned in fee or controlled in full or in part through other interests, rights, or devices such as conservation easements or restrictions, by private or public land trust in Rhode Island. The director may charge a reasonable fee for filing of each document submitted by a land trust.

(c) The term "public land trust" means any public instrumentality created by a Rhode Island municipality for the purposes stated herein and financed by means of public funds collected and appropriated by the municipality. The term "private land trust" means any group of five (5) or more private citizens of Rhode Island who shall incorporate under the laws of Rhode Island as a nonbusiness corporation for the purposes stated herein, or a national organization such as the Nature Conservancy. The main purpose of either a public or a private land trust shall be the protection, acquisition, or control of land, water, wildlife, wildlife habitat, plans, and/or other natural features, areas, or open space for the purpose of managing or maintaining, or causing to be managed or maintained by others, the land, water, agriculture, and other natural amenities in any undeveloped and relatively natural state in perpetuity. A private land trust must be granted exemption from federal income tax under 26 U.S.C. § 501(c)(3) within two (2) years of its incorporation in Rhode Island or it may not continue to function as a land trust in Rhode Island. A private land trust may not be incorporated for the exclusive purpose of acquiring or accepting property or rights in property from a single individual, family, corporation, business, partnership, or other entity. Membership in any private land trust must be open to any individual subscribing to the purposes of the land trust and agreeing to abide by its rules and regulations including payment of reasonable dues.

(d) All private land trusts will, in their articles of association or their by-laws, as appropriate, provide for the transfer to an organization created for the same or similar purposes the assets, lands, and land rights and interests held by the land trust in the event of termination or dissolution of the land trust.

(e) All land trusts, public or private, will record in the public records of the appropriate towns and cities in Rhode Island all deeds, conservation easements or restrictions or other interests and rights acquired in land and will also file copies of all such documents and current copies of their articles of association, their by-laws, and annual reports with the secretary of state, and with the director of the Rhode Island department of the environment. The director is hereby directed to establish and maintain permanently a system for keeping records of all private and public land trust holdings in Rhode Island.

(f) The director will contact in writing, not less often than once every two (2) years, each public or private land trust to ascertain: (1) that all lands held by the land trust are recorded with the director; (2) the current status and condition of each land holding; (3) that any funds or other assets of the land trust held as endowment for specific lands have been properly audited at least once within the two (2) year period; (4) the name of the successor organization named in the public or private land trust's by-laws or articles of association; and (5) any other information the director deems essential to the proper and continuous protection and management of land and interests or rights in land held by the land trust. In the event that the director determines that a public or private land trust holding land or interest in land appears to have become inactive, he or she shall initiate proceedings to effect the termination of the land trust and the transfer of its land, assets, land rights, and land interests to the successor organization named in the defaulting trust's by-laws or articles of association or to another organization created for the same or similar purposes. Should such a transfer not be possible, then the land trust, assets, and interest and rights in land will be held in trust by the state of Rhode Island and managed by the director for the purposes stated at the time of original acquisition by the trust. Any trust assets or interests other than land or rights in land accruing to the state under such circumstances will be held and managed as a separate fund for the benefit of the designated trust lands.

~~42-17.1-21. Leasing of reverted lands.~~ The commissioner of environmental management of the department of the environment may, at any time when the general assembly shall not be in session, authorize the use by any charitable or educational organization located in this state, any land or buildings of the state which shall have reverted to the state following the lease of the land or building to the United States of America.

~~42-17.1-22. Construction of references.~~ (a) Whenever in any general or public law the words "department of agriculture and conservation," "bureau of markets," "division of conservation," "division of entomology and plant industry," "division of forests," "division of fish and game," "division of parks and recreation," "division of harbors and rivers," "division of boating safety," "division of enforcement," "division of coastal resources," or "department of natural resources" shall appear, they shall be deemed to refer to and to mean the "department of the environment," except where those powers exist in the coastal resources management council.

(b) Provided, further, that whenever in chapters 3, 4, 5, 6, 7, 9, 11, 13, 18 and 19 of title 4 the words "director of health" or "department of health" shall appear, they shall be deemed to refer to and to mean the "commissioner of environmental management" and "department of the environment", respectively.

~~42-17.1-23. Rules and regulations.~~ Rules and regulations prepared by any department, division, board, commission, or other agency, the functions of which are transferred by this chapter to the branches of the department of the environment, which rules and regulations are not in conflict with this chapter, shall continue in force until such time as the director of the department of the environment or the coastal resources management council, as applicable, shall issue new rules and regulations governing such activity.

~~42-17.1-24. Designation and assignment of functions.~~ Whenever the duties of the head of any existing department, division, board, commission, or other agency or of any other officer are prescribed by law, and the duties of such person have been or shall in the future be transferred to the department of the environment under this chapter, and consistent with the provisions of this chapter, the director and/or the applicable commissioner may designate some officer or other subordinate within his or her branch to perform such duties; provided, however, that any other provision of this chapter notwithstanding, the functions, powers and duties of the chief of the division of parks and recreation as set forth in title 32 in chapter 22.5 of title 23, and in any other general or public law, and the functions, powers, and duties of the chief of the division of harbors and rivers as set forth in title 46, and in any other general or public law, shall not be diminished; provided further, however, that all planning and law enforcement functions, powers, duties, and personnel shall be transferred to the applicable branches established by this chapter, or to the coastal resources management council, as applicable.

~~42-17.1-25. Transfer of functions from the assistant director for administration of the department to the policy and planning branch.~~ ~~There are hereby transferred from the assistant director for administration of the department of environmental management to the policy and planning branch;~~

~~(a) Those environmental planning functions of the office of environmental coordination and the division of planning and development; and~~

(b) So much of the other functions or parts of functions, employees and resources, physical and funded, related thereto of the assistant director for administration as are incidental to and necessary for the performance of those functions.

~~42-17.1-26. Assumption of duties.~~ Except as otherwise provided in this chapter, the director and/or the commissioners assuming any duties formerly imposed upon any other department, division, board, commission, or other agency shall perform those duties, notwithstanding that those duties were formerly performed by a board, commission, or single officer. Any ruling, decision, or order made by such head with regard to matters within his or her jurisdiction shall be subject to any existing right of appeal to a court of competent jurisdiction.

~~42-17.1-27. Auxiliary marine patrol.~~ (a) The commissioner of environmental management is authorized to recruit, train, and organize a volunteer auxiliary marine patrol of such size and qualification as he or she shall determine, provided, however, that the total membership in the auxiliary marine patrol shall not exceed fifty (50) persons. In selecting those persons who shall become members of the auxiliary marine patrol, the commissioner shall consult with and seek the advice and assistance of local harbor masters and appropriate city and town officials, provided, however, that the auxiliary marine patrol shall at all times be under the direction of the environmental management branch and subject to the rules and regulations as prescribed by the commissioner. Members of the auxiliary marine patrol shall carry out such duties and functions as may be assigned to them from time to time by the commissioner.

(b) Members of the auxiliary marine patrol shall be equipped with uniforms prescribed by the commissioner of environmental management and delegated specific powers and duties consistent with those now granted to other members of the department of the environment and divisions thereof. They may bear and use firearms only when specifically authorized to do so by the commissioner and only when in uniform and assigned to active duty. The duties of the members of the auxiliary marine patrol shall include, but in no way be limited to, the patrol of all harbors, rivers, docks, and other waterways of this state and the prevention of vandalism and theft of all other property used or enjoyed in connection therewith. The patrol may also be called to serve and exercise power and duties consistent with those employed by full time members of the department during an emergency or theoretical emergency. The members of the auxiliary marine patrol will serve without pay.

~~42-17.1-28. Fees for use of state port facilities - Development fund.~~ (a) All fees collected by the department of the environment for use of state port facilities at Galilee in the town of Narragansett, including fees collected for leases, licenses, or permits involving land, buildings, docks, piers, parking, or berthing space, shall be deposited as general revenues.

(b) All fees collected by the department of the environment for use of state port facilities in Newport, including fees collected for leases, licenses, or permits involving land, buildings, docks, piers, parking, or berthing space, shall be deposited as general revenues.

~~42-17.1-29. User fees at state beaches, parks, and recreation areas.~~ (a) The commissioner of environmental management in furtherance of his or her administrative duties and responsibilities may charge a user fee for any state beach, or recreational area under its jurisdiction, and fees for the use of any of its services or facilities.

~~(c) [Deleted by P.L. 1998, ch. 31, art. 8, § 2.]~~

~~(d) An additional fee for camping and other special uses may be charged where appropriate. Rates so charged should be comparable to equivalent commercial facilities.~~

~~(e) All such fees shall be established by the director after a public hearing.~~

(f) All daily fees from beach parking, which shall also include fees charged and collected at Ninigret conservation area and Charlestown breachway, shall be shared with the municipality in which the facility is located on the basis of sixty percent (60%) retained by the state and forty percent (40%) remitted to the municipality.

(g) One hundred percent (100%) of all user and concession fees received by the state shall be deposited as general revenues. The general revenue monies appropriated may be hereby specifically dedicated to meeting the costs of development and renovation by the director of recreation projects with an expected life of five (5) or more years, and acquisition by the director of state-owned recreation areas. Such projects shall include the purchase of vehicles and equipment and the repair of facilities which have a life expectancy of five (5) or more years and which are used exclusively for state-owned recreational areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred thousand dollars ($400,000) annually. Notwithstanding the provisions of § 37-1-1 or any other provision of the general laws, the director is hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money, bonds, or other valuable securities for deposit as general revenues in the same manner as provided above for user and concession fees retained by the state.

~~42-17.1-30. Trooper Daniel L. O'Brien Pavilion.~~ The pavilion building at East Matunuck state beach shall hereafter be named the Trooper Daniel L. O'Brien Pavilion, and an appropriate plaque in posthumous honor of Trooper O'Brien shall be erected at that location.

~~42-17.1-30.1. Frederick J. Benson Pavilion. -~~ ~~The pavilion building at Block Island State Beach shall hereafter be named and known as the Frederick J. Benson Pavilion.~~

~~42-17.1-31. Notification by director.~~ Prior to a hearing at which the director of the department seeks to adopt, modify, or repeal standards for air quality, water quality, groundwater quality, or individual sewage disposal systems, the director shall notify the chairperson of the joint committee on water resources and the chairperson of the joint committee on environment and energy of the general assembly, the directors of the departments of administration and health and, the chairman of the advisory council, and provide them with copies of the proposed standards. In addition, the director shall annually provide the general assembly with a copy of all standards and regulations adopted by the department in the previous calendar year.

~~42-17.1-32. Transfer of functions from the department of health to the environmental protection branch.~~ ~~There are hereby transferred from the director of the department of health to the commissioner of the environmental protection branch:~~

~~(a) The functions of initial field investigation, enforcement of individual sewage disposal regulation, and watershed protection of the drinking water supply set forth in title 23;~~

~~(b) So much of other functions or parts of functions and employees and resources, physical and funded, related thereto as are incidental to and necessary for the performance of subdivision (a).~~

~~42-17.1-33. Transfer of powers and functions from department of the environment to the department of administration.~~ ~~There are hereby transferred to the department of administration:~~

~~(a) Those functions of the department of the environment which were administered through or with respect to departmental programs in the performance of strategic planning as defined in § 42-11-10(c);~~

(b) All officers, employees, agencies, advisory councils, committees, commissions, and task forces of the department of the environment who were performing strategic planning functions as defined in § 42-11-10(c); and

(c) So much of other functions or parts of functions and employees and resources, physical and funded, related thereto of the director of environmental management as are incidental to and necessary for the performance of the functions transferred by subdivisions (a) and (b).

~~(d) Nothing contained herein shall abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of title 46.~~

~~42-17.1-34. Transfer of function from the department of community affairs.~~ (a) There is hereby transferred to the environmental protection branch that function formerly administered by the department of community affairs relating to the sewage and water supply failure fund established by chapter 44.1 of this title.

(b) In addition to any of its other powers and responsibilities, the director is authorized and empowered to accept any grants made available by the United States government or any agency thereof, and the department, with the approval of the governor, is authorized and empowered to perform such acts and enter into all necessary contracts and agreements with the United States of America or any agency thereof as may be necessary in such manner and degree as shall be deemed to be in the best interest of the state. The proceeds of any grants so received shall be paid to the general treasurer of the state and by him or her deposited in a separate fund and shall be utilized for the purposes of the grant or grants.

~~42-17.1-35. Preservation of rights and remedies. -~~ The abolition of any division or transfer of any function as provided in this chapter shall not impair the obligation of any contract or agreement nor abate any suit, action or other proceeding lawfully commenced by or against the head of any agency or officer of the State of Rhode Island in his official capacity or in relation to the discharge of his or her official duties but the court may on motion filed within twelve (12) months after this chapter takes effect allow such a suit, action or proceeding to be maintained by or against the successor of such head or officer in his or her official capacity under the reorganization effected by such chapter or, if there be no such successor, against such agency or officer in his or her capacity which succeeded to the function transferred by this chapter. No person in the service of the state on the effective date of this chapter shall be discharged, separated from service, or downgraded in service by reason of the enactment of this chapter.

~~42-17.1-36. Liberal construction. -~~ This chapter shall be liberally construed in aid of its declared purposes, the primary purpose of which is the coordination and integration of functions relating to the environment within one department and the allocation of these functions to the department established by this chapter. Nothing contained herein shall abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of title 46.

~~42-17.1-37. Severability.~~ If any provision of this chapter or of any rule or regulation made thereunder, or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the remainder of the chapter, rule, or regulation and the application of such provision to other persons or circumstances shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections of this chapter shall not affect the validity of the remainder of the chapter.

~~42-17.1-38. Appropriation for expenses.~~ (a) The general assembly shall annually appropriate such sum or sums as it may deem necessary for the expenses of the department of the environment and the coastal resources management council in the conduct of its activities and in the implementation of the powers, duties, programs, and authorizations embodied in this chapter; and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum or sums or so much thereof as may from time to time be required upon receipt by him or her of proper vouchers duly authenticated.

(b) There is hereby established an account within the general fund to be called "the office of the director of the environment fund". The account shall consist of such sums as the state may from time to time appropriate, and/or such sums representing any fees or other amounts obtained as a result of operation, management, regulatory, administrative, permitting, or enforcement activities for which the office of the director of the department of the environment is responsible under the general laws, exclusive, however, of fees and other amounts allocated to the accounts established by subsections (d), (e), (f), and (g) of this section, and this account is hereby restricted for administering and operating the office of the director and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The director shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of such funds.

(c) There is hereby established an account within the general fund to be called "the department of the environment fund". The account shall consist of such sums as the state may from time to time appropriate, and/or such sums representing any fees or other amounts obtained under the authority of this chapter and not otherwise allocated by this section for deposit in the restricted receipt accounts established in subsections (b), (d), (e), (f) or (g), or to other restricted receipt accounts, and such account is hereby restricted for administering and operating the department and the state controller is hereby authorized and directed to draw his or her order upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The director shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of such funds.

(d) There is hereby established an account within the general fund to be called "the department of the environment - administrative adjudication branch fund". The account shall consist of such sums as the state may from time to time appropriate, and/or such sums representing any fees or other amounts obtained by the administrative adjudication branch in connection with its activities under chapter 17.7 of this title, including by way of example and not of limitation, filing fees, copy fees, hearing costs and the like, provided however that fines and penalties assessed or collected in accordance with an order made by a commissioner after hearing before the administrative adjudication branch shall not be included for deposit in said account and said account is hereby restricted for administering and operating the branch and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The chief hearing officer shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of these funds.

(e) There is hereby established an account within the general fund to be called "the department of the environment - environmental management branch fund". The account shall consist of such sums as the state may from time to time appropriate and/or such sums representing any fees or other amounts obtained as a result of operation, management, regulatory, administrative, permitting, or enforcement activities for which the environmental management branch is responsible under any provision of the general laws, and said account is hereby restricted for administering and operating the branch and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The commissioner shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of these funds.

(f) There is hereby established an account with the general fund to be called "the department of the environment - environmental protection branch fund". The account shall consist of such sums as the state may from time to time appropriate, and/or such sums representing any fees or other amounts obtained as a result of operations, management, regulatory, administrative, permitting, or enforcement activities for which the environmental protection branch is responsible under any authority of provision of the general laws, and this account is hereby restricted for administering and operating the branch and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The commissioner shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of these funds.

(g) There is hereby established an account within the general fund to be called "the coastal resources management branch fund". The account shall consist of such sums as the state may from time to time appropriate and/or such sums representing any fees or other amounts obtained as a result of operations, management, regulatory, administrative, permitting, or enforcement activities for which the coastal resources management branch is responsible and this account is hereby restricted for administering and operating the coastal resources management council and the staff of the coastal resources management branch and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. The commissioner under the direction of the council shall submit to the general assembly by January 15 of each year a detailed report on funds received and uses made of these funds.

(h) It is the intent of this section that all amounts collected, received, or accepted by the department, by way of fees, fines, penalties, costs, gifts, bequests, devise, or in any other manner, in connection with its operations, management, regulatory, administrative, permitting, or enforcement activities under authority of this chapter or any other provision of the General Laws be deposited in restricted receipt accounts within the general fund, which account shall be limited as herein provided and subject to budgetary authority of the director pursuant to § 42-17.1-9(x), provided however that no such amount shall be deposited in a restricted receipt account established by this section if that amount would otherwise be allocated for deposit in a restricted receipt account, already established by law as of July 1, 1994 [1995], which establishment and which accounts are hereby expressly preserved.

~~42-17.1-39. Transfer determinations.~~ The director of administration, with the approval of the governor, shall make the conclusive determination of the number of positions, personnel, property, records, and appropriation balances, allocations and other funds of the department of environmental management, department of health, water resources board, and such other boards, commissions, departments, and/or agencies to be transferred to the department of the environment in connection with the transfers thereinto by the provisions of this chapter. Such further measures and dispositions as the director of administration, with the approval of the governor, shall deem necessary in order to effectuate the transfers provided in this chapter shall be carried out as he may direct and by such agencies as he shall designate. Nothing contained herein shall abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of this title.

~~42-17.1-40. Continuity of administrative functions. -~~ In order to ensure continuity of the administrative business of the state, the actual transfer of functions or any part of that transfer to the department of the environment from the department of environmental management, department of health, water resources board, and other boards, commissions, departments, and/or agencies has been postponed after the effective date of Chapter 461 of the Public Laws of 1990, and the functions and authorities of the department of environmental management, the department of health, water resources board, and other boards, commissions, departments, and/or agencies shall remain unaffected, regardless of the repeal by chapter 461 of the public laws of 1990 of any law under which the departments, boards, commissions, or other agencies are empowered, which laws shall remain in effect until July 1, 2002 when the transfers provided in this section can be put into force and effect at which time the repeal of those laws shall become final.

~~42-17.1-41. Relations with other governmental agencies.~~ The department is hereby authorized to cooperate with the appropriate agencies of the federal government, this state or other states, and regional and local agencies in the planning, design and implementation of any programs and facilities necessary to implement this chapter. The department is authorized to apply for and accept funds from federal and regional agencies to carry out any of its functions, and to contract with the federal government and regional agencies concerning the use and disposition of such funds. Nothing herein shall be contrived to abrogate or affect the director's authority under § 32-1-13.

~~42-17.1-42. Administrative expenses on behalf of open space and recreational areas.~~ For the period beginning May 1, 1988 and ending November 6, 1990, personnel and operating costs may be expended from the recreation area development fund for expenses incurred by the department of the environment in the administration of the so-called "open space and recreational area" grant program to the various cities and towns under the provisions of chapter 425, Public Law 1987.

~~42-17.1-43. Notice of permit - Recording.~~ A notice of permit or license shall be eligible for recording under chapter 13 of title 34 as determined by the applicable commissioner and shall be recorded at the expense of the applicant in the land evidence records of the city or town where the property subject to permit or license is located, and any subsequent transferee of the property shall be responsible for complying with the terms and conditions of the permit.

~~42-17.1-44. Declaration of intent.~~ (a) It is the intention of the general assembly in enacting chapter 17.1 of title 42 which creates the department of the environment that the director of the department establish any and all departmental policies and adopt, modify, and/or repeal all rules and regulations previously adopted, modified, or repealed by the director of the department of environmental management under any provision of law. It is further the intention of the general assembly that the commissioner of environmental management and the commissioner of environmental protection, administer and enforce the rules and regulations adopted by the director and carry out the functions of the former director of the department of environmental management under any provision of law as assigned to the respective commissioners by the provisions of this chapter.

~~(b) Whenever in the General Laws the words "department of environmental management" shall appear, the words "department of the environment" shall be substituted.~~

(c) Whenever in the General Laws the words "director of the department of environmental management" shall appear in relation to the authority to develop policy and/or to adopt, modify, or repeal rules and regulations, the words "director of the department of the environment" shall be substituted therefor.

(d) Whenever in the General Laws the words "director of the department of environmental management" shall appear with respect to the administration and enforcement of statutes or programs which have been transferred by this chapter to the commissioner of environmental management or commissioner of environmental protection, the words designating the appropriate commissioner of environmental management or environmental protection, as the case may be, by virtue of the functions transferred by this chapter shall be substituted therefor.

(e) The omission in this chapter of a citation of any general or public law now in force which makes it mandatory upon or permissive for any department, division, or other agency of the state to perform certain functions which by this chapter are assigned or transferred to the department of the environment and/or to the commissioners for environmental management or environmental protection, shall not (unless otherwise clearly intended) suspend or annul the right of the department of the environment to carry out such functions. No person in the classified service of the state at the effective date of this chapter shall be discharged, separated from service, or downgraded in service by reason of the passage of this chapter. Nothing contained herein shall abrogate or affect the powers and duties of the coastal resources management council under chapter 23 of title 46.

~~42-17.1-45. Certification of underground storage tank professionals. -~~ No underground storage tank ("UST") or piping system associated therewith shall be installed, substantially modified, closed or precision tightness tested; nor shall any corrosion protection system be installed, repaired or maintained on any such UST or associated piping system unless such work is performed by, or in the presence of, a person who holds a valid, appropriate certification issued in accordance with chapter 27 of title 28.

SECTION 3. Chapter 42-17.1 of the General Laws entitled "Department of Environmental Management [Effective until July 1, 2002.]" is hereby amended by adding thereto the following section:

42-17.1-25. Continuity of legal authority and administrative functions. - The provisions of Chapter 42-17.1 of the General Laws entitled "Department of Environmental Management" that are in effect on June 30, 2002 shall remain in full force and effect and the legal existence, powers, duties, and functions of the Department of Environmental Management shall not be amended, altered, affected, or otherwise impaired by the repeal of the Department of the Environment, established by Chapter 461 of the 1990 Public Laws. In order to ensure continuity, the functions, authorities, programs, and activities of the Department of Environmental Management and any other boards, commissions, departments, and/or agencies that would have been affected by enactment of Chapter 42-17.1 of the General Laws entitled "Department of the Environment" shall remain unaffected, regardless of the repeal, by Chapter 461 of the 1990 Public Laws, of Chapter 42-17.1 of the General Laws entitled "Department of Environmental Management."

SECTION 4. Section 42-17.1-3 of the General Laws in Chapter 42-17.1 entitled "Department of Environmental Management [Effective until July 1, 2002.]" is hereby amended to read as follows:

42-17.1-3. Construction of references. [Effective until July 1, 2002.] -- (a) Whenever in any general or public law the words "department of agriculture and conservation," "bureau of markets," "division of conservation," "division of entomology and plant industry," "division of forests," "division of fish and game," "division of parks and recreation," "division of harbors and rivers," "division of boating safety," "division of enforcement," "division of coastal resources," or "department of natural resources" shall appear, they shall be deemed to refer to and to mean the "department of environmental management."

(b) Provided, further, that whenever in chapters 3-6, 7, 9, 11, 13, 18 and 19 of title 4 entitled "Animals and Animal Husbandry" the words "director of health" or "department of health" shall appear, they shall be deemed to refer to and to mean the "director of environmental management" and "department of environmental management" respectively.

(c) Provided, further, that whenever in any general or public law the words "Department of the Environment" shall appear, the same shall be deemed to refer to and mean the "Department of Environmental Management" or where applicable the "Director of the Department of Environmental Management."

SECTION 5. This article shall take effect on July 1, 2002.

ARTICLE 31 SUB A

JOINT RESOLUTION RELATING TO PURCHASES OF STATE VEHICLES

SECTION 1. This article shall serve as a joint resolution required pursuant to Chapter 35-18 of the Rhode Island General Laws entitled "Public Corporation Debt Management."

WHEREAS, The State of Rhode Island has developed policies and procedures with respect to the state procurement and financing of vehicles and trucks; and

WHEREAS, The State since FY 2000 has financed these vehicle purchases through the issuance of tax-exempt certificates of participation rather than through individual leases with various financing companies; and

WHEREAS, The total annual financing in FY 2002 will total $4,670,000, which includes the financing of trucks for the maintenance division of the Department of Transportation in the amount of $2,700,000; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act, described in Chapter 35-18 of the Rhode Island General Laws, requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island of certain obligations, including financing guarantees or other agreements which exceed $4,000,000; and

WHEREAS, The project costs associated with the vehicle purchases in FY 2002 are estimated to be $4,640,000. The total financing obligation of the State of Rhode Island would be approximately $4.7 million, with $4.67 million deposited in the equipment fund and $.03 million allocated to pay the associated costs of financing. The total payments on the state's obligation on the $4.7 million issuance over five (5) years are projected to be $5.2 million, assuming an average effective interest rate of 4.0%. The payments would be financed by the Department of Administration from general revenue appropriations; and it is hereby

RESOLVED, That this General Assembly hereby authorizes the Governor, the Director of the Department of Administration, and other appropriate state officials to enter into a financial obligation, guarantee, or other agreement or agreements evidencing the financing obligation of the State of Rhode Island for the term of the debt issuance in an amount not to exceed $4.7 million for the provision of funds for the purchase of vehicles and trucks in fiscal year 2002; and be it further

RESOLVED, That this Joint Resolution and article shall take effect immediately upon passage.

ARTICLE 32 SUB A

RELATING TO MEDICAL ASSISTANCE FOR FAMILIES

SECTION 1. Sections 40-8.4-4 and 40-8.4-12 of the General Laws in Chapter 40-8.4 entitled "Health Care For Families" are hereby amended to read as follows:

40-8.4-4. Eligibility. -- (a) Medical assistance for families. - There is hereby established a category of medical assistance eligibility pursuant to section 1931 of title XIX of the Social Security Act [42 U.S.C. section1396u-1]for families whose income and resources are no greater than the standards in effect in the aid to families with dependent children program on July 16, 1996 or such increased standards as the department may determine. The department of human services is directed to amend the medical assistance title XIX state plan and to submit to the U.S. Department of Health and Human Services an amendment to the RIte Care waiver project to provide for medical assistance coverage to families under this chapter in the same amount, scope and duration as coverage provided to comparable groups under the waiver. The department is further authorized and directed to submit such amendments and/or requests for waivers to the title XXI state plan as may be necessary to maximize federal contribution for provision of medical assistance coverage under this chapter. However, implementation of expanded coverage under this chapter shall not be delayed pending federal review of any title XXI amendment or waiver.

(b) Income. - The director of the department of human services is authorized and directed to amend the medical assistance title XIX state plan or RIte Care waiver to provide medical assistance coverage through expanded income disregards or other methodology for families whose income levels are below one hundred eighty-five percent (185%) of the federal poverty level.

(d) Waiver. - The department of human services is authorized and directed to apply for and obtain appropriate waivers from the Secretary of the U.S. Department of Health and Human Services, including, but not limited to, a waiver of the appropriate provisions of Title XIX, to require that individuals with incomes equal to or greater than one hundred fifty percent (150%) of the federal poverty level pay a share of the costs of their medical assistance coverage provided through enrollment in either the RIteCare Program or under the premium assistance program under section 40-8.4-12, in a manner and at an amount consistent with comparable cost-sharing provisions under section 40-8.4-12, provided that such cost sharing shall not exceed ~~three percent (3%)~~ five percent (5%) of annual income.

40-8.4-12. RIteShare Health Insurance Premium Assistance Program. -- (a) Basic RIteShare Health Insurance Premium Assistance Program. - The department of human services is authorized and directed to amend the medical assistance Title XIX state plan to implement the provisions of Section 1906 of Title XIX of the Social Security Act [42 U.S.C. section 1396e]and establish the Rhode Island health insurance premium assistance program for RIteCare eligible parents with incomes up to one hundred eighty-five percent (185%) of the federal poverty level who have access to employer-based health insurance. The state plan amendment shall require eligible individuals with access to employer-based health insurance to enroll themselves and/or their family in the employer-based health insurance plan as a condition of participation in the RIteShare program under this chapter and as a condition of retaining eligibility for medical assistance under chapters 5.1 and 8.4 of this title and/or chapter 12.3 of title 42 and/or premium assistance under this chapter, provided that doing so meets the criteria established in Section 1906 of Title XIX for obtaining federal matching funds and the department has determined that the individual's and/or the family's enrollment in the employer-based health insurance plan is cost-effective and the department has determined that the employer-based health insurance plan meets the criteria set forth in subsection (d). The department shall provide premium assistance by paying all or a portion of the employee's cost for covering the eligible individual or his or her family under the employer-based health insurance plan, subject to the cost sharing provisions in subsection (b), and provided that the premium assistance is cost-effective in accordance with Title XIX [42 U.S.C. section 1396 et seq].

(b) Individuals who can afford it shall share in the cost. - The department of human services is authorized and directed to apply for and obtain any necessary waivers from the secretary of the United States department of health and human services, including, but not limited to a waiver of the appropriate sections of Title XIX [42 U.S.C. section 1396 et seq.] to require that individuals eligible for RIteCare under this chapter or chapter 12.3 of title 42 with incomes equal to or greater than one hundred fifty percent (150%) of the federal poverty level pay a share of the costs of health insurance based on the individual's ability to pay, provided that the cost sharing shall not exceed ~~three percent (3%)~~ five percent (5%) of the individual's annual income. The department of human services shall implement the cost-sharing by regulation, and shall consider co-payments, premium shares or other reasonable means to do so.

(c) Current RIteCare enrollees with access to employer-based health insurance. - The department of human services shall require any individual who receives RIteCare or whose family receives RIteCare on the effective date of the applicable regulations adopted in accordance with subsection (f) to enroll in an employer-based health insurance plan at the individual's eligibility redetermination date or at an earlier date determined by the department, provided that doing so meets the criteria established in the applicable sections of Title XIX [42 U.S.C. section 1396 et seq.]for obtaining federal matching funds and the department has determined that the individual's and/or the family's enrollment in the employer-based health insurance plan is cost-effective and has determined that the health insurance plan meets the criteria in subsection (d). The insurer shall accept the enrollment of the individual and/or the family in the employer-based health insurance plan without regard to any enrollment season restrictions.

(d) Approval of health insurance plans for premium assistance. - The department of human services shall adopt regulations providing for the approval of employer-based health insurance plans for premium assistance and shall approve employer-based health insurance plans based on these regulations. In order for an employer-based health insurance plan to gain approval, the department must determine that the benefits offered by the employer-based health insurance plan are substantially similar in amount, scope, and duration to the benefits provided to RIteCare eligible persons by the RIteCare program, when the plan is evaluated in conjunction with available supplemental benefits provided by the department. The department shall obtain and make available to persons otherwise eligible for RIteCare as supplemental benefits those benefits not reasonably available under employer-based health insurance plans which are required for RIteCare eligible persons by state law or federal law or regulation.

(e) Maximization of federal contribution. - The department of human services is authorized and directed to apply for and obtain federal approvals and waivers necessary to maximize the federal contribution for provision of medical assistance coverage under this section.

(f) Implementation by regulation. - The department of human services is authorized and directed to adopt regulations to ensure the establishment and implementation of the premium assistance program in accordance with the intent and purpose of this section, the requirements of Title XIX and any approved federal waivers.

SECTION 2. This article shall take effect upon passage and any rules or regulations necessary or advisable to implement the provisions of this article shall be effective immediately as an emergency rule upon the department's filing thereof with the secretary of state as it is hereby found that the current fiscal crisis in this state has caused an imminent peril to public health, safety and welfare, and the department is hereby exempted from the requirements of subsections 42-35-3(b) and 42-35-4(b)(2) relating to agency findings of imminent peril to public health, safety and welfare and the filing of statements of the agency's reasons thereof.

ARTICLE 33 SUB A

RELATING TO MEDICAL ASSISTANCE -- HOSPITAL SETTLEMENTS

SECTION 1. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby amended by adding thereto the following section:

40-8-13.2 Prospective rate methodology for in-state hospital services. - As a condition of participation in the established prospective rate methodology for reimbursement of in-state hospital services, every hospital shall submit year-end settlement reports to the department within two (2) years from the close of a hospital's fiscal year. In the event that a participating hospital fails to timely submit a year-end settlement report as required, the department shall withhold financial cycle payments due by any state agency with respect to such hospital by not more than ten percent (10%) until the report is received.

SECTION 2. This article shall take effect upon passage.

ARTICLE 34 SUB A AS AMENDED

RELATING TO HEALTH CARE FACILITIES

SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:

23-17-38.1. Hospitals -- Licensing Fee. -- (a) There is imposed a hospital licensing fee at the rate of four and ~~twenty-five~~ thirty-five hundredths percent ~~(4.25%)~~ (4.35%) upon the net patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, ~~1999~~ 2000. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of administration, and all the administration, collection and other provisions of chapter 50 and 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before October 31, ~~2001~~ 2002, and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund in accordance with section 44-50-11. Every hospital shall, on or before October 1, ~~2001~~ 2002, make a return to the tax administrator containing the correct computation of net patient services revenue for the hospital fiscal year ending September 30, ~~1999~~ 2000, and the licensing fee due upon that amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b) For purposes of this section the following words and phrases have the following meanings:

(1) "Hospital" means a person or governmental unit duly licensed in accordance with this chapter to establish, maintain, and operate a hospital, except a hospital whose primary service and primary bed inventory are psychiatric.

(2) "Gross patient services revenue" means the gross revenue related to patient care services.

(3) "Net patient services revenue" means the charges related to patient care services less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.

(c) The tax administrator shall make and promulgate any rules, regulations, and procedures not inconsistent with state law and fiscal procedures that he or she deems necessary for the proper administration of this section and to carry out the provisions, policy and purposes of this section.

(d) The licensing fee imposed by this section shall be in addition to the inspection fee imposed by section 23-17-38 and to any licensing fees previously imposed in accordance with section 23-17-38.1.

SECTION 2. This Article shall take effect on July 1, 2002 and shall apply to hospitals, as defined in Section 1, which are duly licensed on July 1, 2002.

ARTICLE 35 SUB A AS AMENDED

RELATING TO SUPPLEMENTAL SECURITY INCOME

SECTION 1. Section 40-6-27 of the General Laws in Chapter 40-6 entitled "Public Assistance Act" is hereby amended to read as follows:

40-6-27. Supplemental security income. -- (a) (1) The director of the department is hereby authorized to enter into agreements on behalf of the state with the secretary of the department of health and human services or other appropriate federal officials, under the supplementary and security income (SSI) program established by title XVI of the Social Security Act, 42 U.S.C. section 1381 et seq., concerning the administration and determination of eligibility for SSI benefits for residents of this state, except as otherwise provided herein. The state's monthly share of supplementary assistance to the supplementary security income program effective January 1, 1993 shall be as follows:

Individual living alone:	$ 64.35
Individual living with others:	74.60
Couple living alone:	120.50
Couple living with others:	136.50
Individual living in state licensed residential care and assisted living facilities, effective October 1, 1998:	582.00

Provided, however, that the department of human services shall by regulation reduce, effective January 1, 2003, the state's monthly share of supplementary assistance to the supplementary security income program for each of the above listed payment levels, by the same value as the annual federal cost of living adjustment to be published by the federal social security administration in October 2002 and becoming effective on January 1, 2003, as determined under the provisions of title XVI of the federal social security act [42 U.S.C. Section 1381 et seq.]; and provided further, that it is the intent of the general assembly that the January 1, 2003 reduction in the state's monthly share shall not cause a reduction in the combined federal and state payment level for each category of recipients in effect in the month of December 2002; and provided further that the department of human services is authorized and directed to provide for payments to recipients in accordance with the above directives beginning January 1, 2003 pending formal revisions to the above table of payment levels by the general assembly during the 2003 session of the general assembly.

(2) Individuals living in institutions shall receive a twenty dollar ($20.00) per month personal needs allowance from the state which shall be in addition to the personal needs allowance allowed by the Social Security Act, 42 U.S.C. section 301 et seq.

(3) Individuals living in state licensed residential care and assisted living facilities who are receiving SSI shall be allowed to retain a minimum personal needs allowance of fifty-five dollars ($55.00) per month from their SSI monthly benefit prior to payment of the residential care and assisted living facility monthly fee.

(4) The department is authorized and directed to establish rules for screening and assessment procedures and eligibility criteria for those persons who:

(i) Have applied for or are receiving SSI, and who apply for admission to residential care and assisted living facilities on or after October 1, 1998; or

(ii) Who are residing in residential care and assisted living facilities, and who apply for or begin to receive SSI on or after October 1, 1998.

(5) The department shall collaborate with the department of elderly affairs to design and implement the screening and assessment procedures as required in the above section.

(b) The department is authorized and directed to provide additional assistance to individuals eligible for SSI benefits for:

(1) Moving costs or other expenses as a result of an emergency of a catastrophic nature which is defined as a fire or natural disaster; and

(2) Lost or stolen SSI benefit checks or proceeds thereof; and

(3) Assistance payments to SSI eligible individuals in need because of the application of federal SSI regulations regarding estranged spouses; and the department shall provide such assistance in a form and amount which the department shall by regulation determine.

SECTION 2. Sections 27-18.4-1 and 27-18.4-2 of the General Laws in Chapter 27-18.4 entitled "Health Insurance - Coordination with Federal Medicaid Program" are hereby amended to read as follows:

27-18.4-1. Definitions. -- (a) An "insurer" shall mean any health insurer (including a group health plan, as defined in section 607(1) of the employee retirement income security act of 1974), a health maintenance organization as defined in section 27-41-2, a qualified health maintenance organization as referred to in section 42-62-9, a non-profit hospital service corporation as defined in section 27-19-1, a non-profit medical service corporation as defined in section 27-20-1, a non-profit dental service corporation as defined in section 27-20.1-1, a non-profit optometric service corporation as defined in section 27-20.2-1, a domestic insurance company subject to chapter 1 of title 27, and a foreign insurance company subject to chapter 2 of title 27.

(b) "Medical assistance" and "Medicaid" shall mean ~~the Rhode Island medical assistance program administered by the department of human services pursuant to title 40, chapter 8 and title XIX of the Social Security Act [42 U.S.C. section 1396 et seq.].~~ medical assistance provided in whole or in part by the department of human services pursuant to chapter 40-5.1, 40-8, 40-8.4 or 42-12.3 of the general laws and/or title XIX or XXI of the federal Social Security Act, as amended, 42 U.S.C. section 1396 et seq. and 42 U.S.C. section 1397 aa et seq., respectively.

27-18.4-2. Coordination of benefits with Medical Assistance -- Acquired rights to payments. -- (a) An insurer is prohibited from considering the availability or eligibility for medical assistance in this or any other state when considering eligibility for coverage or making payments under its plan for eligible enrollees, subscribers, policyholders or certificate holders.

(b) To the extent that payment for covered expenses has been made under the state Medicaid program for health care items or services furnished to an individual in any case where a third party, including an insurer, has a legal liability to make payments, the department of human services is considered to have acquired the rights of the individual to payment by any other party, including an insurer, for those health care items or services. These rights are further defined and are enforceable in accordance with section 40-6-9 and section 40-6-9.1.

SECTION 3. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is hereby amended by adding thereto the following section:

40-6-9.1. Data matching -- Health care coverages. - (a) For purposes of this section, the term "medical assistance program" shall mean medical assistance provided in whole or in part by the department of human services pursuant to chapter 40-5.1, 40-8, 40-8.4 or 42-12.3 of the general laws and/or title XIX or XXI of the federal Social Security Act, as amended, 42 U.S.C. section 1396 et seq. and 42 U.S.C. section 1397 aa et seq., respectively.

(b) In furtherance of the assignment of rights to medical support to the department of human services under subsections 40-6-9 (b), (c), (d), and (e) and in order to determine the availability of other sources of health care insurance or coverage for beneficiaries of the medical assistance program, all health insurers, health maintenance organizations and third party administrators doing business in the state of Rhode Island shall permit and participate in data matching with the department of human services, as provided herein, to assist the department to identify medical assistance program applicants, beneficiaries and/or persons responsible for providing medical support for such applicants and beneficiaries who may also have health care insurance or coverage in addition to that provided or to be provided by the medical assistance program.

(c) Notwithstanding the provisions of any general, public or special law, or rule or regulation to the contrary, all health insurers, including, but not limited to, health maintenance organizations, third party administrators, nonprofit medical service corporations and nonprofit hospital service corporations, subject to the provisions of chapters 18, 19, 20 and 41 in title 27, and doing business in this state shall provide or shall make other arrangements to provide, information to the medical assistance program, mutually satisfactory to both parties, to enable the medical assistance program: (1) to identify medical assistance program recipients, applicants and/or persons responsible for providing medical support for such recipients and applicants who are or could be enrollees or beneficiaries under any individual or group health insurance contract, plan or policy available or in force and effect in the state; and (2) to determine the scope and terms of said insurance.

(d) Such information shall be made available by such insurers and health maintenance organizations and used by the department of human services only for the purposes of and to the extent necessary for identifying such persons and scope and terms of coverage. The department of human services shall provide information to the health plan insurers as defined in section 27-18.4-1, only to the extent sufficient to clarify discrepancies resulting from the data matching process in the identification of an individual.

(e) No health insurer, health maintenance organization, or third party administrator which provides or makes arrangements to provide information pursuant to this section shall be liable in any civil or criminal action or proceeding brought by beneficiaries or members on account of such action.

(f) Upon completion of such data matching, the department of human services shall reimburse such health insurers for the reasonable documented costs of conducting the matches.

(g) The department of human services is authorized to promulgate regulations necessary to ensure the effectiveness of this section.

SECTION 4. This article shall take effect upon passage and any rules or regulations necessary or advisable to implement the provisions of this article shall be effective immediately as an emergency rule upon the department's filing thereof with the secretary of state as it is hereby found that the current fiscal crisis in this state has caused an imminent peril to public health, safety and welfare, and the department is hereby exempted from the requirements of subsections 42-35-3(b) and 42-35-4(b)(2) relating to agency findings of imminent peril to public health, safety and welfare and the filing of statements of the agency's reasons thereof.

ARTICLE 36 SUB A AS AMENDED

LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY

SECTION 1. Section 28-42-79 of the General Laws in Chapter 28-42 entitled "Employment Security - General Provisions" is hereby amended to read as follows:

28-42-79. Disbursements -- Balance. -- (a) The moneys in the tardy account fund shall be used solely for the following purposes:

(1) To make refunds of penalties erroneously collected and deposited in the fund; and

(2) To maintain essential ~~employment~~ department programs ~~security positions that would otherwise be diminished or eliminated by reductions in federal funding for these positions~~.

(b) The general treasurer pays all vouchers drawn by the director upon the fund, in those amounts and in the manner that the director may prescribe. Vouchers drawn upon the fund are referred to the controller within the department of administration. Upon receipt of these vouchers, the controller shall immediately record and sign them and shall promptly transfers the signed vouchers to the general treasurer; provided, that these expenditures are used solely for the purposes specified in this section and its balances shall not lapse at any time.

SECTION 2. Section 28-42-76 of the General Laws in Chapter 28-42 entitled "Employment Security - General Provisions" is hereby amended to read as follows:

28-42-76. Disbursements from interest fund -- Unexpended balance. -- (a) The moneys in the interest fund are used solely for the following purposes:

(1) To make refunds of interest erroneously collected and deposited in the fund;

(2) To make payments of interest due on federal advances received from the federal unemployment account under 42 U.S.C. section 1321 et seq., in accordance with federal law and regulations then in effect; and

(3) To maintain essential ~~employment security services~~ department programs.

(b) The general treasurer shall pay all vouchers drawn by the director upon the interest fund, in the amounts and in the manner that the director may prescribe. Vouchers drawn upon the interest fund are referred to the controller within the department of administration. Upon receipt of those vouchers, the controller shall immediately record and sign them and shall promptly transfer those signed vouchers to the general treasurer; provided, that those expenditures are used solely for the purposes specified in this section and its balances shall not lapse at any time.

SECTION 3. This act shall take effect upon passage.

ARTICLE 37 SUB A AS AMENDED

RELATING TO PHARMACEUTICAL ASSISTANCE TO THE ELDERLY ACT

SECTION 1. Sections 42-66.2-3, 42-66.2-4, 42-66.2-5, 42-66.2-6 and 42-66.2-10 of the General Laws in Chapter 42-66.2 entitled "Pharmaceutical Assistance to the Elderly Act" are hereby amended to read as follows:

42-66.2-3. Definitions. -- As used in this chapter, unless the context requires otherwise:

(1) "Consumer" means any full-time resident of the state who fulfills the eligibility requirements set forth in section 42-66.2-5. Residence for purposes of this chapter shall be in accordance with the definitions and evidence standards set forth in section 17-1-3.1.

(2) "Contractor" means a third party or private vendor capable of administering a program of reimbursement for prescription drugs, and drug program eligibility administrative support as required by the director, the vendor to be determined through a competitive bid process in which the director awards a three (3) year contract for services.

(3) "Department" means the department of elderly affairs.

(4) "Director" means the director of the department of elderly affairs.

(5) (i) ~~"Drugs" and "eligible~~ "Eligible drugs" means insulin and shall mean noninjectable drugs which require a physician's prescription according to federal law and which are contained in the following American hospital formulary service pharmacologic-therapeutic classifications categories that have not been determined by the federal "drug efficacy and safety implementation (DESI) commission" to lack substantial evidence of effectiveness. ~~Drugs and eligible~~ Eligible drugs are limited to the following classification categories: cardiac drugs, hypotensive drugs, diuretics, anti-diabetic agents, insulin, disposable insulin syringes, vasodilators (cardiac indications only), anticoagulants, hemorreolgic agents, glaucoma drugs, drugs for the treatment of Parkinson's disease, antilipemic drugs and oral antineoplastic drugs and drugs for the treatment of asthma and other chronic respiratory diseases and prescription vitamin and mineral supplements for renal patients, and drugs approved for the treatment of Alzheimer's disease, drugs used for the treatment of depression, those drugs approved for the treatment of urinary incontinence, anti infectives, drugs used for the treatment of arthritis, drugs approved for the treatment of osteoporosis, and neuraminidase inhibiting drugs indicated for the treatment of influenza A and B.

(ii) "Additional drugs" shall mean noninjectable drugs which require a physician's prescription according to federal law and which are contained in the American hospital formulary service pharmacologic-therapeutic classifications categories that have not been determined by the federal "drug efficacy and safety implementation (DESI) commission" to lack substantial evidence of effectiveness, which are not included in the definition of drugs as defined in section 42-66.2-3(5). However, this shall not include prescription drugs used for cosmetic purposes.

(6) "Income" for the purposes of this chapter means the sum of federal adjusted gross income as defined in the Internal Revenue Code of the United States [26 U.S.C. section 1 et seq.] and all nontaxable income including but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act benefits [45 U.S.C. section 231 et seq.] all payments received under the federal Social Security Act [42 U.S.C. section 301 et seq.] state unemployment insurance laws, and veterans' disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of "loss of time" insurance. It does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency.

(7) "Pharmaceutical manufacturer" means any entity holding legal title to or possession of a national drug code number issued by the federal food and drug administration.

(8) "Pharmacy" means a pharmacy licensed by the state of Rhode Island and whose place of business is physically located within the state.

(9) "Pilot program contractor" means Blue Cross and Blue Shield of Rhode Island.

42-66.2-4. Amount of payment. -- The state shall pay the percentage rate of the maximum allowable amount per prescription as formulated in the contract, as of the date of purchase of the drug, between the contractor and participating pharmacies in accordance with the income eligibility and co-payment shares set forth in section 42-66.2-5. The pharmacy shall collect from the consumer the percentage rate of the maximum allowable amount per prescription as formulated in the contract, as of the date of the purchase of the eligible drug or additional drug, between the contractor and participating pharmacies in accordance with the income eligibility and co-payment shares set forth in section 42-66.2-5. ~~Payment for eligible drugs pursuant to this chapter shall only apply to purchases made on or after October 1, 1985.~~

42-66.2-5. Persons eligible. -- (a) Persons eligible for assistance under the provisions of this chapter include any resident of the state who is at least sixty-five (65) years of age. State and consumer co-payment shares for these persons, shall be determined as follows:

(1) For unmarried persons or married persons living separate and apart whose income for the calendar year immediately preceding the year in which assistance is sought is:

(i) Less than fifteen thousand nine hundred and thirty-two dollars ($15,932) the state shall pay sixty percent (60%) of the cost of the prescriptions and the consumer shall pay forty percent (40%) of the cost of the prescriptions;

(ii) More than fifteen thousand nine hundred and thirty-two dollars ($15,932) and less than twenty thousand dollars ($20,000), the state shall pay thirty percent (30%) of the cost of the prescriptions and the consumer shall pay seventy percent (70%) of the cost of the prescriptions; and

(iii) More than twenty thousand dollars ($20,000) and less than thirty-five thousand dollars ($35,000), the state shall pay fifteen percent (15%) of the cost of prescriptions and the consumer shall pay eighty-five percent (85%) of the cost of prescriptions.

(2) For married persons whose income for the calendar year immediately preceding the year in which assistance is sought hereunder when combined with any income of the person's spouse in the same year is:

(i) Nineteen thousand nine hundred and sixteen dollars ($19,916) or less, the state shall pay sixty percent (60%) of the cost of the prescriptions and the consumer shall pay forty percent (40%) of the cost of the prescriptions;

(ii) More than nineteen thousand nine hundred and sixteen dollars ($19,916) and less than twenty-five thousand dollars ($25,000), the state shall pay thirty percent (30%) of the cost of the prescriptions and the consumer shall pay seventy percent (70%) of the cost of prescriptions; and

(iii) More than twenty-five thousand dollars ($25,000) and less than forty thousand dollars ($40,000), the state shall pay fifteen percent (15%) of the cost of prescriptions and the consumer shall pay eighty-five percent (85%) of the cost of prescriptions.

(3) Eligibility may also be determined by using income data for the ninety (90) days prior to application for benefits and projecting that income on an annual basis. The income levels shall not include those sums of money expended for medical and pharmaceutical that exceed three percent (3%) of the applicant's annual income or three percent (3%) of the applicant's preceding ninety (90) day income computed on an annual basis.

(b) On July 1 of each year, the maximum amount of allowable income for both unmarried and married residents set forth in subsection (a) shall be increased by a percentage equal to the percentage of the cost of living adjustment provided for social security recipients.

(c) Notwithstanding the foregoing provisions of this section, no person whose prescription drug expenses are paid or reimbursable, either in whole or in part, by any other plan of assistance or insurance is eligible for assistance under this section, until the person's prescription drug coverage is exhausted during a benefit year, and as provided in subsection (d).

(d) The fact that some of a person's prescription drug expenses are paid or reimbursable under the provisions of medicare, part B, shall not disqualify that person, if he or she is otherwise eligible, to receive assistance under this chapter. In those cases, the state shall pay sixty percent (60%) of the cost of those prescriptions for qualified drugs for which no payment or reimbursement is made by the federal government.

(e) Eligibility for receipt of any other benefit under any other provisions of the Rhode Island general laws as a result of eligibility for the pharmaceutical assistance program authorized under this section shall be limited to those persons whose income qualify them for a sixty percent (60%) state co-payment share of the cost of prescriptions.

(f) Between fifty-five (55) and sixty-five (65) years of age and receiving social security disability benefits. These persons shall pay one hundred percent (100%) of the cost of prescriptions set forth in section 42-66.2-4.

(g) For all additional drugs, the consumer shall pay one hundred percent (100%) of the cost of prescriptions as set forth in section 42-66.2-4.

42-66.2-6. Responsibilities of department of elderly affairs. -- (a) Determination of eligibility. - The department shall adopt regulations relating to the determination of eligibility of prospective consumers and the determination and elimination of program abuse. The department has the power to declare ineligible any consumer who abuses or misuses the established prescription plan. The department has the power to investigate cases of suspected provider or consumer fraud.

(b) Rebates for expenses prohibited. - (1) A system of rebates or reimbursements to the consumer for pharmaceutical expenses shall be prohibited.

(2) Subdivision (1) shall not be interpreted to exclude other consumers not participating in the pharmaceutical assistance to the elderly program from receiving financial offers or redeemable coupons that are available to only those who have paid for the service or product through direct cash payment, insurance premiums, or cost sharing with an employer.

(1) Collection of the co-payment by pharmacies is mandatory;

(2) Senior citizens participating in the program are not required to maintain records of each transaction but shall sign a receipt for eligible and additional drugs;

(3) (i) A system of rebates or reimbursements to the consumer for pharmaceutical expenses is prohibited;

(ii) This subdivision shall not be interpreted to exclude other consumers from receiving financial offers or redeemable coupons that are available to only those who have paid for the service or product through direct cash payment, insurance premiums, or cost sharing with an employer.

(4) Prescription benefits for any single prescription may be dispensed in the amounts authorized by the physician, and agreed to by the consumer, up to a maximum of a one hundred (100) day supply or two hundred (200) doses, whichever is less and/or a one hundred (100) day supply or one quart of liquid, whichever is less; provided, however, that disposable insulin syringes are dispersed in a quantity of one hundred (100);

(5) Experimental drugs are excluded from the program.

(6) A system of mail order delivery for prescriptions is prohibited under this program; and

(7) Eligible and additional drugs must be dispensed within one year of the original prescription order.

(d) The director shall issue an eligibility card containing a program ID number and the time period for which the card is valid.

(e) The director shall institute and conduct an educational outreach program and shall provide a mechanism, within the department, to handle all public inquiries concerning the program.

(f) The director shall establish a process, in accordance with the Administrative Procedures Act, chapter 35 of this title, to provide an appeals hearing on the determination of eligibility.

(g) The director shall forward to the contractor a list of all eligible consumers.

42-66.2-10. Pharmaceutical manufacturer drug rebates. -- (a) The director shall enter into prescription drug rebate agreements with individual pharmaceutical manufacturers under which the department shall receive a rebate from the pharmaceutical manufacturer equal to the basic rebate supplied by the manufacturer under 42 U.S.C. section 1396a for every eligible prescription drug dispensed under the program. Each prescription drug rebate agreement shall provide that the pharmaceutical manufacturer shall make quarterly rebate payments to the department equal to the basic rebate supplied by the manufacturer under 42 U.S.C. section 1396a for the total number of dosage units of each form and strength of a prescription drug which the department reports as reimbursed to providers of prescription drugs, provided these payments shall not be due until thirty (30) days following the manufacturer's receipt of utilization data from the department including the number of dosage units reimbursed to providers of eligible prescription drugs during the quarter for which payment is due.

(b) (1) Upon receipt of the utilization data from the department, the pharmaceutical manufacturer shall calculate the quarterly payment. The department may, at its expense, hire a mutually agreed upon independent auditor to verify the calculation and payment. In the event that a discrepancy is discovered between the pharmaceutical manufacturer's calculation and the independent auditor's calculation, the pharmaceutical manufacturer shall justify its calculations or make payment to the department for any additional amount due.

(2) The pharmaceutical manufacturer may, at its expense, hire a mutually agreed upon independent auditor to verify the accuracy of the utilization data provided by the department. In the event that a discrepancy is discovered, the department shall justify its data or refund any excess payment to the pharmaceutical manufacturer. The department may, at its expense, establish a grievance adjudication procedure which provides for independent review of manufacturer documentation substantiating the basic rebate amount per unit delivered under 42 U.S.C. section 1396a. In the event that a discrepancy is discovered, the department shall justify its data or refund any excess payment to the pharmaceutical manufacturer.

(c) All eligible prescription drugs of a pharmaceutical manufacturer that enters into an agreement pursuant to subsection (a) shall be immediately available and the cost of these eligible drugs shall be reimbursed and not subject to any restrictions or prior authorization requirements. Any prescription drug of a manufacturer that does not enter into an agreement pursuant to subsection (a) shall not be reimbursable, unless the department determines the eligible prescription drug is essential to program participants.

(d) All rebates collected by the department from the rebate payments made for drugs for persons eligible under the provisions of section 42-66.2-5(a) shall be deposited as general revenues of the state.

SECTION 2. This article shall take effect upon passage.

ARTICLE 38 SUB A

RELATING TO ZERO BASE BUDGET REVIEW

SECTION 1. Chapter 35-3 of the General Laws entitled "State Budget" is hereby amended by adding thereto the following section:

35-3-4.2. Zero base budget review. - (a) The chairperson of the house finance committee and/or the chairperson of the senate finance committee may, from time to time, designate one or more departments to submit zero base budgets. The committee(s) shall consider the objectives, operations, measures of performance, and costs of all activities of each department; explore alternative means of conducting the activities of each department; and evaluate alternative budget amounts for various levels of effort for each activity of each department.

(b) The committee(s) shall begin zero base budget reviews at the beginning of the fiscal year, and shall complete analysis prior to the governor's submission of the budget as required in section 35-3-7. Prior to August 1, the chairperson(s) shall communicate to the departments so designated the form and number of copies, and with such explanation as the committee(s) may require.

SECTION 2. This article shall take effect upon passage.

ARTICLE 39 SUB A AS AMENDED

(DELETED)

ARTICLE 40

SECTION 1. The general assembly finds that the state airport provides substantial benefits to the people of the state beyond the city of Warwick as well as within the city of Warwick, but that the T.F. Green state airport imposes a significant burden on the city of Warwick not borne by inhabitants of the state beyond the city of Warwick. Furthermore, federal law prohibits the airport operator from paying taxes or making payments in lieu of taxes at a rate adequate to compensate the city and its inhabitants for that burden. The general assembly therefore finds it fair and appropriate to make appropriations to the city of Warwick from increased revenues to be received due to sales taxes and rental car surcharges collected in connection with the Warwick Station project.

SECTION 2. Chapter 1-2 of the General Laws entitled "Airports and Landing Fields" is hereby amended by adding thereto the following sections:

1-2-1.1. Powers relating to vehicular traffic accessing airport facilities - T.F. Green state airport. -- (a) The Rhode Island airport corporation is authorized: (1) to impose charges on customers of rental companies, (as defined in section 31-34.1-1, who directly or indirectly use Warwick Station or the T.F. Green state airport, at such rates as the Rhode Island airport corporation may deem necessary to provide adequate revenue to pay all costs of constructing, reconstructing, expanding, reconfiguring, operating, and maintaining Warwick Station regardless of whether such charges may have an anticompetitive effect; and (2) to regulate the access of vehicular traffic to airport properties including by excluding one or more classes of vehicular traffic from accessing portions of airport roadways, parking lots, curbsides and other vehicular facilities.

Nothing in this section shall be construed to limit the authority of Rhode Island airport corporation to impose other fees, charges, rates, or rentals including any other fees, charges, rates, or rentals imposed on rental companies or to adopt other regulations.

(b) All customer facility charges heretofore or hereafter collected under the authority of subsection (a)(1) of this section and all customer facility charges collected by any rental company from customers under color of those provisions or pursuant to regulations adopted by the airport corporation, constitute a trust fund for the airport corporation until paid. That trust is enforceable against: (1) the rental company; (2) any officer, agent, servant, or employee of any rental company responsible for either the collection or payment, or both, of the customer facility charge; (3) any person receiving any part of the fund without consideration, or knowing that the rental company or any officer, agent, servant, or employee of any rental company is committing a breach of trust; and (4) the estates, heirs, and representatives of persons or entities described in subsection (b)(1)-(3); provided, that a customer to whom a refund has been properly made, or any person who receives payment of a lawful obligation of the rental company from that fund, is presumed to have received that amount in good faith and without any knowledge of the breach of trust.

(c) If the airport corporation or any officer thereof believes that the payment to the airport corporation of the trust fund established under subsection (b) will be jeopardized by delay, neglect, or misappropriation, the airport corporation or officer thereof shall notify the rental company that the trust fund shall be segregated, and kept separate and apart from all other funds and assets of the rental company and shall not be commingled with any other funds or assets. The notice shall be given by either hand delivery or by registered mail, return receipt requested. Within four (4) days after the sending of the notice, all of the customer facility charges which thereafter either become collectible or are collected shall be deposited daily in any financial institution in the state as defined in title 19 and those customer facility charges designated as a special fund in trust for the airport corporation and payable to the airport corporation by the rental company as trustee of that fund.

(d) The penalty for misappropriations provided by section 44-19-37 shall apply as though that section referred to "customer facility charge" in each place where it refers to "tax".

(e) The provisions of subsections (b), (c), and (d) are not exclusive, and are in addition to all other remedies which the airport corporation may employ in the enforcement and collection of customer facility charges.

1-2-17.1. Sales taxes and surcharges on customer facility charges. -- (a) Moneys due and payable as sales taxes and rental vehicle surcharges on customer facility charges shall be deposited in a restricted receipt account entitled "receipts of sales taxes and surcharges on customer facility charges". The Rhode Island airport corporation shall provide to the Rhode Island department of administration information related to the amount of customer facility charges remitted on or before June 30 of each year.

(b) The amounts on deposit in the account for receipts of sales taxes and surcharges on customer facility charges shall be transferred to the city of Warwick as general revenues.

(c) "Customer facility charge" means the customer facility charge collected by rental companies (as defined in section 31-34.1-1) pursuant to regulations promulgated by the Rhode Island airport corporation.

SECTION 3. Section 1-2-17 of the General Laws in Chapter 1-2 entitled "Airports and Landing Fields" is hereby amended to read as follows:

1-2-17. Payment for compensation for municipal services to the city of Warwick. -- The Rhode Island airport corporation, from a parking surcharge at the T.F. Green state airport as defined by a 1988 agreement between the state acting by and through the director of transportation and the city of Warwick, shall pay to the city of Warwick out of the parking revenue received at T.F. Green state airport as compensation for municipal services provided at T.F. Green state airport, a sum of not less than two hundred seventy-five thousand dollars ($275,000) for fiscal year 1994 payable quarterly; for each fiscal year after 1994, this sum may be reviewed and/or renegotiated by the mayor of the city of Warwick and the airport corporation, but in no event will the sum be less than five hundred thousand dollars ($500,000) in any fiscal year, beginning after 1993 and before 2005 or less than seven hundred fifty thousand dollars ($750,000) in any fiscal year beginning after 2004, provided any payments provided or any portion of these payments is not disapproved by the F.A.A. ~~Beginning in fiscal year 1995, in~~ In the event that the F.A.A. disapproves this payment from the airport corporation, the state shall pay to the city of Warwick the sums of money required to insure that the city of Warwick receives ~~two hundred and seventy five thousand dollars ($275,000)~~ five hundred thousand dollars ($500,000).

SECTION 4. Section 44-4-4.1 of the General Laws in chapter 44-4 entitled "Situs and Ownership of Taxable Property" is hereby amended by adding thereto the following sections:

44-4-4.2. Leasehold improvements taxed to tenant of quasi-public corporation. - Commencing with taxes assessed on December 31, 2001, whenever real property is owned by a quasi-public corporation and leased to a tenant which is engaged in any business for profit, and such property is located at an airport terminal building with more than ten thousand (10,000) air carrier aircraft operations annually, any tax on leasehold improvements shall be paid by the tenant, who, for the purposes of taxation, shall be deemed to be the owner of any such leasehold improvements regardless of whether the improvements become state property, unless the improvements or the tenant or subtenant are otherwise exempt from taxation.

44-4-25. Severability. - If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any clause, sentence, paragraph, section or part of this chapter or the application thereof to any person or circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this chapter, or the applications of this chapter, which can be given effect without the invalid provision application, but the effect of the court's adjudication shall be confined to the clause, sentence, paragraph, or section or part of this chapter, or application thereof, which can be given effect without the invalid provision or application so adjudged to be invalid or unconstitutional.

SECTION 5. Sections 1 and 2 of this article shall take effect July 1, 2001. Section 3 of this article shall take effect July 1, 2005. Section 4 of this article shall take effect upon passage and shall apply to taxes assessed commencing on December 31, 2001 . If any court of competent jurisdiction shall adjudge to be invalid or unconstitutional the application of sections 4 or 5 of this article to periods prior to the enactment of this article, this article shall nevertheless be effective for dates of assessment occurring on or after passage of this article.

ARTICLE 41

SECTION 1. Section 39-3-11.2 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" is hereby amended to read as follows:

39-3-11.2. Interim rates. -- Notwithstanding the provisions of titles 23 and 39, the municipal tipping fee charged by the resource recovery corporation shall be thirty-two dollars ($32.00) per ton from July 1, ~~2001 to June 30, 2002~~ 2002 to June 30, 2003.

SECTION 2. This article shall take effect on July 1, 2002.

ARTICLE 42 SUB A

RELATING TO EFFECTIVE DATE

SECTION 1. This act shall take effect July 1, 2002, except as otherwise provided herein.

In articles where it is provided that the effective date shall be either "July 1, 2002" or "upon passage", and no provision is made for retroactive or prospective application, the effective date shall be July 1, 2002, and if the act is enacted after July 1, 2002, then the article shall be retroactive to July 1, 2002.

In articles where it is provided that the effective date shall be either "July 1, 2002" or "upon passage" and provision is made with the article for retroactive or prospective application, the article shall take effect on July 1, 2002 and its application made retroactive or prospective as set fourth in the article.

CHAPTER 65 2002-H 7732A am Enacted 06/12/2002

General Revenues

355,629,664

Provided personnel and other state operations do not exceed

Other Funds Registration Denial Program

651

RICAP - Ladd Center - Infrastructure

500,000

Grand Total - Administration

482,648,044

Business Regulation

Grand Total - Business Regulation

9,133,105

Labor and Training

General Revenues

6,785,451

Provided personnel and other state operations do not exceed

Federal Funds

38,047,421

Grand Total - Labor and Training

437,239,754

Legislature

Lieutenant Governor General Revenues

805,721

State

General Revenues

5,914,768

Provided personnel and other state operations do not exceed

General Treasurer

Other Funds

10,086,887

Boards for Design Professionals General Revenues

378,802

Board of Elections General Revenues

5,396,412

Provided personnel and other state operations do not exceed

2,186,025

Rhode Island Ethics Commissions General Revenues

926,278

Office of Governor General Revenues

5,077,251

Public Utilities Commission

Rhode Island Commission on Women General Revenues

143,489

Provided personnel and other state operations do not exceed

141,489

Children, Youth, and Families

General Revenues

139,524,937

Provided personnel and other state operations do not exceed

55,867,215

Elderly Affairs

Health

Human Services

General Revenues

608,467,591

Provided personnel and other state operations do not exceed

49,892,331

Other Funds

Mental Health, Retardation, and Hospitals

General Revenues

218,833,418

Provided personnel and other state operations do not exceed

99,870,901

Federal Funds

220,440,452

Restricted Receipts

65,000

Other Funds

Office of the Child Advocate

Commission on the Deaf and Hard of Hearing General Revenues

261,397

RI Developmental Disabilities Council Federal Funds

421,433

Governor's Commission on Disabilities

Commission for Human Rights

Mental Health Advocate General Revenues

296,859

Elementary and Secondary Education

General Revenues

CHAPTER 65
2002-H 7732A am
Enacted 06/12/2002