Chapter 246
2006 -- H 7120
SUBSTITUTE A
Enacted 06/30/06
A N A C T
MAKING APPROPRIATIONS FOR
THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE, 30, 2007
Introduced By:
Representatives Watson, Mumford, Gorham, Savage, and Ehrhardt
Date
Introduced: February 08, 2006
It is enacted by the General Assembly as
follows:
ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN
SUPPORT OF FY 2007
ARTICLE 2 RELATING TO BORROWING IN
ANTICIPATION OF RECEIPTS FROM
TAXES
ARTICLE 3 RELATING TO MAKING REVISED
APPROPRIATIONS FOR THE
SUPPORT OF THE STATE FOR FISCAL
YEAR ENDING JUNE 30, 2006
ARTICLE 4 RELATING TO 911 EMERGENCY TELEPHONE
SYSTEM SURCHARGE
ARTICLE 5 RELATING TO CAPITAL DEVELOPMENT
PROGRAM
ARTICLE 6 RELATING TO BOND PREMIUMS
ARTICLE 7 RELATING TO DEBT MANAGEMENT ACT
JOINT RESOLUTIONS
ARTICLE 8 RELATING TO MOTOR VEHICLE EMISSIONS
INSPECTION FEES
ARTICLE 9 RELATING TO PHARMACEUTICAL
ASSISTANCE TO THE ELDERLY
ARTICLE 10 RELATING TO SUBMIT TO CHEMICAL TEST
ARTICLE 11 RELATING TO RESTRICTED RECEIPT
ACCOUNTS
ARTICLE 12 RELATING TO GENERAL PUBLIC ASSISTANCE
– HARDSHIP
ASSISTANCE FUND
ARTICLE 13 RELATING TO HOSPITAL UNCOMPENSATED
CARE
ARTICLE 14 RELATING TO CHILD CARE – STATE
SUBSIDIES
ARTICLE 15 RELATING TO NURSING FACILITIES
ARTICLE 16 RELATING TO MUNICIPAL TIPPING FEES
ARTICLE 17 RELATING TO STATE AID
ARTICLE 18 RELATING TO LICENSING OF HOSPITAL
FACILITIES
ARTICLE 19 RELATING TO EDUCATION AID
ARTICLE 20 RELATING TO ISSUANCE OF LICENSE UPON
PAYMENT OF
TAXES
ARTICLE 21 RELATING TO TAX AMNESTY
ARTICLE 22 RELATING TO FUEL USE REPORTING LAW
ARTICLE 23 RELATING TO REGISTRATION OF VEHICLES
ARTICLE 24 RELATING TO TUITION TAX CREDITS
ARTICLE 25 RELATING TO MEDICAL ASSISTANCE -
MANAGED CARE
ARTICLE 26 RELATING TO HEALTH CARE QUALITY
PROGRAM
ARTICLE 27 RELATING TO UNDERGROUND STORAGE TANK
FINANCIAL
RESPONSIBILITY FUND
REVIEW BOARD
ARTICLE 28 RELATING TO PAY DIFFERENTIAL FOR STATE
EMPLOYEES
ON ACTIVE DUTY
ARTICLE 29 RELATING TO MOTOR VEHICLE EXCISE TAX –
PHASE-OUT
ARTICLE 30 RELATING TO TAXATION
ARTICLE 31 RELATING TO PANDEMIC INFLUENZA
PREPARATION
ARTICLE 32 RELATING TO HUMAN SERVICES – FAMILY
INDEPENDENCE
ACT
ARTICLE 33 RELATING TO MEDICAL ASSISTANCE –
PRESCRIPTION DRUGS
ARTICLE 34 RELATING TO INSURANCE – MANDATED
BENEFITS
ARTICLE 35 RELATING TO MEDICAL ASSISTANCE –
COMMUNITY HEALTH
CENTERS
ARTICLE 36 RELATING TO DREDGING FEES
ARTICLE 37 RELATING TO APPROVE AND PUBLISH AND
SUBMIT TO THE
ELECTORS A PROPOSITION
OF AMENDMENT TO THE
CONSTITUTION OF THE
STATE (LIMITATIONS ON STATE
SPENDING)
ARTICLE 38 RELATING TO STATE AFFAIRS AND
GOVERNMENT
ARTICLE 39 RELATING TO RULES AND REGULATIONS --
FUNDING
REQUIRED
ARTICLE 40 RELATING TO MEDICAL ASSISTANCE –
OPTIONAL
ELIGIBILITY
ARTICLE 41 RELATING TO EFFECTIVE DATE
ARTICLE 1 SUBSTITUTE A AS AMENDED
RELATING
TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2007
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, 2007.
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.
Administration
Central Management
General
Revenues 1,545,276
Federal
Funds 346,196
Restricted
Receipts 70,029
Total - Central Management 1,961,501
Legal Services
General
Revenues 2,562,185
Legal
Support/DOT 108,503
Total – Legal Services 2,670,688
Accounts and Control General Revenues 3,428,790
Budgeting General Revenues 2,456,351
Purchasing General Revenues 2,416,614
Auditing General Revenues 2,057,592
Human Resources
General Revenues 12,314,199
Federal Funds 815,083
Restricted Receipts 647,390
Other Funds 1,120,457
Total-Human Resources 14,897,129
Personnel Appeal Board General Revenues 102,849
Facilities Management
General
Revenues 41,144,019
Federal
Funds 21,551,019
Restricted
Receipts 1,373,570
Other Funds 1,541,649
Total – Facilities Management 65,610,257
Capital Projects and Property Management General Revenues 3,316,132
Information Technology
General
Revenues 17,584,582
Federal
Funds 7,076,403
Restricted
Receipts 1,440,855
Other Funds 1,242,376
Total – Information Technology 27,344,216
Library and Information Services
General
Revenues 1,077,872
Federal
Funds 1,355,677
Restricted
Receipts 1,500
Total – Library and Information
Services 2,435,049
Planning
General
Revenues 5,306,430
Federal
Funds 8,107,037
Intermodal
Surface Transportation Funds
Federal Highway - PL Systems
Planning 1,453,222
Air Quality Modeling 20,800
Total – Planning 14,887,489
Security Services General Revenues 19,854,805
General
General
Revenues
Miscellaneous Grants 626,750
Torts – Courts 400,000
Contingency Fund 1,050,000
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 and for transition expenses
of general officers in accordance with section 36-1-2.1 of the general laws of
1956, as amended. 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 nonrecurring
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.
State Employees/Teachers Retiree
Health Subsidy 9,475,125
Economic Development Corporation 8,184,274
EDC – Rhode Island Airport
Corporation Impact Aid 1,025,000
Provided
that the Rhode Island Airport Corporation shall distribute the appropriated
funds as follows:
60 percent
of the first $1,000,000 appropriated funds shall be distributed to each airport
serving more than 1,000,000 passengers based upon its percentage of the total
passengers served by all airports serving more than 1,000,000 passengers.
40 percent
of the first $1,000,000 shall be distributed to North Central Airport,
Newport-Middletown Airport, Block Island Airport, Quonset Airport, TF Green
Airport and Westerly Airport based on the shares of total takeoffs and landings
during calendar year 2005, respectively. No airport shall receive less than
$25,000.
Each airport
receiving any portion of the amount appropriated shall make an impact payment
to the towns or cities in which located in the full amounts received from the
Corporation within 30 days of payments from the Corporation. Each community
upon which any part of the above airports are located shall receive at least
$25,000.
EDC-Urban Revitalization Fund
Capital Reserve 50,000
Economic Policy Council 300,000
Centers of Excellence 3,000,000
EDC EPScore 1,500,000 Motor Vehicle Excise Tax
Payment 136,004,939
Property Valuation 1,500,000
General Revenue Sharing Program 65,159,670
Payment in Lieu of Tax Exempt
Properties 27,766,967
Distressed Communities Relief
Program 10,921,335
Resource Sharing and State Library
Aid 8,712,871
Library Construction Aid 2,705,348
Federal
Funds 34,869
Restricted
Receipts 1,283,347
Rhode Island
Capital Plan Funds
Chapin Health Laboratory 100,000
Cannon Building 150,000
Old State House 100,000
Williams Powers Building 500,000
State House Renovations 830,000
Environmental Compliance 250,000
Fox Point Hurricane Barrier 50,000
Fire Code Compliance State Buildings 500,000
Lead Mitigation Group Homes 200,000
McCoy Stadium 1,280,000
Varley Building 100,000
Elderly Affairs One Stop Elder Center 200,000
Total – General 283,960,495
Debt Service Payments
General
Revenues 89,129,461
Federal
Funds 1,177,854
Restricted
Receipts 1,027,956
Rhode Island
Capital Plan Funds
MHRH Community Services Program 5,374,946
MHRH Community Mental Health Program 1,827,046
DEM – Narragansett Bay Commission 1,527,738
DEM – Debt Service – CWFA 3,254,086
DEM – Debt Service – Recreation 8,340,854
DEM – Debt Service –
Wastewater Treatment 4,203,348
DEM – Hazardous Waste 2,340,378
RIPTA – Water Resources Board 2,220,215
DOA – Third Rail Project – Quonset Point 2,463,980
Intermodal
Surface Transportation Funds
RIPTA Debt Service 703,466
Transportation Debt Service 36,695,660
Temporary
Disability Insurance Fund
RIRBA - DLT – Temporary Disability
Insurance 45,586
COPS - DLT Building – TDI 382,138
Total -
Debt Service Payments 160,714,712
Personnel Reform Medical Insurance
General Revenues (3,709,901)
Federal
Funds (1,298,060)
Restricted
Receipts (264,858)
Other
Funds (1,512,997)
Total – Personnel Reform (6,785,816)
State Employee Turnover at 5.2 percent (36,491,395)
Grand Total -
Administration 564,837,458
Business Regulation
Central Management General Revenues 1,456,314
Banking and Securities Regulation General Revenues 2,822,483
Commercial Licensing, Racing and Athletics
General
Revenues 1,814,637
Restricted
Receipts 100,000
Total - Commercial Licensing,
Racing and Athletics 1,914,637
Insurance Regulation
General
Revenues 4,684,990
Restricted
Receipts 704,408
Total - Insurance Regulation 5,389,398
Board of Accountancy General Revenues 156,280 Grand
Total - Business Regulation 11,739,112
Labor and Training
Central Management
General
Revenues 143,250
Restricted
Receipts 385,212
Total - Central Management 528,462
Workforce Development Services
General Revenues 258,600
Federal
Funds 15,789,182
Restricted
Receipts 10,379,076
Reed Act
Funds
Rapid Job Entry 931,277
Woonsocket Networking 55,000
Workforce Development 6,202,864
Of the $7.2
million appropriated from Reed Act funds, $1 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; $55,000 may be used solely for netWORKri office
renovations; and $6.2 million may be for the administration of this state’s
employment compensation law and public employment service offices.
Total - Workforce Development
Services 33,615,999
Workforce Regulation and Safety General Revenues 2,860,748
Income Support
General
Revenues 3,137,593
Federal
Funds 12,820,503
Restricted
Receipts 1,616,416
Temporary
Disability Insurance Fund 176,891,254
Employment
Security Fund 213,398,437
Total - Income Support 407,864,203
Injured Workers Services Restricted Receipts 10,508,769
Labor Relations Board General Revenues 441,659
Grand Total - Labor and Training 455,819,840
Legislature
General
Revenues 32,219,892
Restricted
Receipts 1,451,733
Grand Total - Legislature 33,671,625
Lieutenant Governor General Revenues 963,012
Secretary of State
Administration General Revenues 1,741,391
Corporations General Revenues 1,801,627
State Archives
General
Revenues 104,891
Federal
Funds 85,000
Restricted
Receipts 486,355
Total - State Archives 676,246
Elections and Civics
General
Revenues 1,278,170
Federal
Funds 1,931,890
Total – Elections 3,210,060
State Library General Revenues 700,499
Office of Public Information General Revenues 314,339
Grand Total - State 8,444,162
General Treasurer
Treasury
General
Revenues 2,685,728
Federal
Funds 290,975
Restricted
Receipts 10,000
Temporary
Disability Insurance Fund 303,834
Total – Treasury 3,290,537
State Retirement System
Restricted
Receipts
Administrative Expenses - State
Retirement System 5,660,755
Retirement - Treasury Investment
Operations 772,474
Total - State Retirement System 6,433,229
Unclaimed Property Restricted Receipts 16,657,676
RI Refunding Bond Authority General Revenues 55,770
Crime Victim Compensation Program
General
Revenues 211,502
Federal
Funds 731,314
Restricted
Receipts 1,715,930
Total - Crime Victim Compensation
Program 2,658,746
Grand Total - General Treasurer 29,095,958
Boards for Design Professionals General Revenues 390,153
Board of Elections
General
Revenues 2,516,239
Federal
Funds 818,900
Grand Total - Board of Elections 3,335,139
Rhode Island Ethics Commission General Revenues 1,297,421
Office of Governor
General
Revenues 4,952,015
Intermodal
Surface Transportation Funds 92,129
Grand Total - Office of Governor 5,044,144
Public Utilities Commission
General
Revenues 743,985
Federal
Funds 88,567
Restricted
Receipts 6,080,429
Grand Total - Public Utilities
Commission 6,912,981
Rhode Island Commission on Women General Revenues 99,715
Department of Revenue
Director of Revenue Office General Revenues 488,750
Office of Revenue Analysis General Revenues 388,424
Lottery Division Lottery Funds 214,740,880
Property Valuation General Revenues 669,726
Taxation
General Revenues 18,374,247
Federal Funds 1,188,260
Restricted Receipts 813,368
Motor Fuel Evasion Program 42,732
Temporary Disability Insurance 875,361
Total-Taxation 21,293,968
Registry of Motor Vehicles
General Revenues 17,536,892
Federal Funds 395,638
Restricted Receipts 16,083
Total-Registry of Motor Vehicles 17,948,613
Grand Total-Revenue 255,530,361
Office of Health and Human Services
General Revenues 313,160
Federal Funds 245,357
Restricted Receipts 211,603
Grand Total – Office of Health
and
Human Services 770,120
Children, Youth, and Families
Central Management
General
Revenues 6,860,904
Federal
Funds 3,477,254
Total - Central Management 10,338,158
Children's Behavioral Health Services
General
Revenues 36,982,288
Federal
Funds 37,112,018
Total -
Children's Behavioral Health Services 74,094,306
Juvenile Correctional Services
General
Revenues 32,579,007
Federal
Funds 3,379,260
Restricted
Receipts 6,000
Rhode Island
Capital Plan Funds
Girls Facility – Training School 800,000
Community Facilities – Training School 500,000
Total - Juvenile Correctional
Services 37,264,267
Child Welfare
General
Revenues 96,569,239
Federal Funds 72,495,979
Restricted
Receipts 1,655,094
Rhode Island
Capital Plan Funds
Fire Code Upgrades 500,000
Total - Child Welfare 171,220,312
Higher Education Incentive Grants General Revenues 200,000
Grand Total - Children, Youth, and
Families 293,117,043
Elderly Affairs
General
Revenues
General Revenues 16,683,105
Provided
that $534,907 of the $16,683,105 from general revenues shall be available for
community elder information specialists.
RIPAE 3,412,000
Safety and Care of the Elderly 600
Federal
Funds 12,623,605
Restricted
Receipts 1,250,000
Intermodal
Surface Transportation Fund 4,800,000
Grand Total - Elderly Affairs 38,769,310
Health
Central Management
General
Revenues 4,814,505
Provided
that $130,000 from general revenues is reserved exclusively for the Southeast
and New England Health Safe Community Foundation/ Michael Montelone Foundation
to provide automated external defibrillators to high schools and athletic
fields.
Federal
Funds 4,849,996
Restricted
Receipts 1,850,664
Total - Central Management 11,515,165
State Medical Examiner
General
Revenues 1,964,801
Federal
Funds 140,543
Total - State Medical Examiner 2,105,344
Family Health
General
Revenues 3,039,370
Federal
Funds 28,929,522
Restricted Receipts 6,875,852
Total - Family Health 38,844,744
Health Services Regulation
General
Revenues 5,085,025
Federal
Funds 5,350,171
Restricted
Receipts 400,319
Total - Health Services Regulation 10,835,515
Environmental Health
General Revenues 4,616,661
Federal
Funds 4,815,388
Restricted
Receipts 1,553,683
Total - Environmental Health 10,985,732
Health Laboratories
General
Revenues 6,366,122
Federal
Funds 2,184,707
Total - Health Laboratories 8,550,829
Disease Prevention and Control
General
Revenues 7,416,725
Federal
Funds 19,893,007
National
Highway Traffic Safety Funds
Walkable Communities Initiative 29,960
Total - Disease Prevention and
Control 27,339,692
Grand Total - Health 110,177,021
Human Services
Central Management
General Revenues
General Revenues 8,778,008
Federal Funds 6,665,999
Restricted
Receipts 2,240,382
Total - Central Management 17,684,389
Child Support Enforcement
General
Revenues 3,649,018
Federal
Funds 7,400,423
Total – Child Support Enforcement 11,049,441
Individual and Family Support
General
Revenues 25,166,091
Federal
Funds 54,777,883
Restricted
Receipts 91,944
Total - Individual and Family
Support 80,035,918
Veterans' Affairs
General Revenues 17,300,207
Federal
Funds 7,588,106
Restricted
Receipts 1,219,365
Total - Veterans' Affairs 26,107,678
Health Care Quality, Financing and Purchasing
General
Revenues 21,178,701
Federal
Funds 45,340,602
Restricted
Receipts 566,815
Total - Health Care Quality,
Financing & Purchasing 67,086,118
Medical Benefits
General
Revenues
Hospitals 77,228,648
Nursing Facilities 146,058,329
Managed Care 209,075,483
Pharmacy 65,484,895
Other 71,478,576
Federal
Funds
Hospitals 82,338,822
Nursing Facilities 163,774,830
Managed Care 246,229,008
Special Education 20,733,240
Pharmacy 25,887,480
Other 80,233,863
Restricted
Receipts 4,490,042
Total - Medical Benefits 1,193,013,216
Supplemental Security Income Program General Revenues 28,201,184
Family Independence Program
General
Revenues
Child Care 39,870,805
TANF/Family Independence Program 7,724,147
Federal
Funds 84,438,119
Total - Family Independence Program 132,033,071
State Funded Programs
General
Revenues
General Public Assistance 3,860,294
Federal
Funds 83,690,512
Total - State Funded Programs 87,550,806
Grand Total - Human Services 1,642,761,821
Mental Health, Retardation, and Hospitals
Central Management General Revenues 2,251,063
Hospital and Community System Support
General
Revenues 4,574,961
Federal
Funds 229,166
Rhode Island
Capital Plan Funds
Utilities Upgrade 500,000
Medical Center Rehabilitation 400,000
Utility Systems - Water Tanks and Pipes 250,000
Central Power Plant Rehabilitation 400,000
Community Facilities Fire Code 500,000
Pastore Center Fire Code Compliance 250,000
DD Private Waiver
Community Facilities
Fire Code Upgrades 187,500
Total - Hospital and Community
System Support 7,291,627
Services for the Developmentally Disabled
General
Revenues 119,315,406
Federal
Funds 135,138,112
Rhode Island
Capital Plan Funds
Regional Center Repair/Rehabilitation 200,000
Developmental Disability Group Homes 1,000,000
Total - Services for the
Developmentally Disabled 255,653,518
Integrated Mental Health Services
General
Revenues 43,579,541
Federal
Funds 37,670,463
Total - Integrated Mental Health
Services 81,250,004
Hospital and Community Rehabilitation Services
General
Revenues 52,576,725
Federal
Funds 56,766,343
Rhode Island
Capital Plan Funds
Zambarano Buildings and Utilities 200,000
Total-Hospital and Community
Rehabilitation Services 109,543,068
Substance Abuse
General
Revenues 16,157,873
Federal
Funds 14,848,644
Restricted
Receipts 90,000
Rhode Island
Capital Plan Funds Asset Protection 100,000
Total - Substance Abuse 31,196,517
Grand Total - Mental Health,
Retardation,
and Hospitals 487,185,797
Office of the Child Advocate
General
Revenues 558,096
Federal
Funds 40,000
Grand Total - Child Advocate 598,096
Commission on the Deaf and Hard of Hearing
General
Revenues 355,329
Federal
Funds 15,000
Grand Total - Commission on the Deaf
and
Hard of Hearing 370,329
RI Developmental Disabilities Council Federal Funds 461,393
Governor's Commission on Disabilities
General
Revenues 602,202
Federal
Funds 195,681
Restricted
Receipts 25,444
Rhode Island
Capital Plan Funds
Facility Renovation –
Handicapped Accessibility 200,000
Grand Total - Governor's Commission
on Disabilities 1,023,327
Commission for Human Rights
General
Revenues 1,075,216
Federal
Funds 323,478
Grand Total - Commission for Human
Rights 1,398,694
Mental Health Advocate General Revenues 409,492
Elementary and Secondary Education
Administration of the Comprehensive Education Strategy
General
Revenues 21,103,006
Federal
Funds 178,926,175
Restricted
Receipts 2,792,518
Total – Administration of the
Comprehensive
Education
Strategy 202,821,699
Davies Career and Technical School
General
Revenues 13,753,144
Federal
Funds 1,200,244
Rhode Island
Capital Plan Funds Davies Elevators 51,939
Total - Davies Career and Technical
School 15,005,327
RI School for the Deaf
General
Revenues 6,476,348
Federal
Funds 375,864
Total - RI School for the Deaf 6,852,212
Metropolitan Career and Technical School General Revenues 10,406,956
Education Aid
General
Revenues 675,530,203
Federal
Funds 2,221,786
Restricted
Receipt 1,734,549
Total – Education Aid 679,486,538
Central Falls School District General Revenues 43,234,574
Housing Aid
General
Revenues 49,672,045
Teachers’ Retirement General Revenues 69,200,130
Grand Total - Elementary and Secondary
Education 1,076,679,481
Public Higher Education
Board of Governors/Office of Higher Education
General Revenues 7,858,537
Federal Funds 3,146,976
Restricted Receipts 540,000
Total – Board of
Governors/Off.
of Higher Education 11,545,513
University of Rhode Island
General Revenues
General
Revenues 86,073,717
Debt Service 2,618,293
University and College
Funds University
and College Funds 379,614,507
Debt – Dining Services 1,078,794
Debt – Educational & General 1,994,229
Debt – Health Services 127,938
Debt – Housing Loan Funds 4,208,297
Debt – Memorial Union 99,615
Debt – Ryan Center 1,515,473
Debt – Alton Jones Services 113,289
Debt – Boss Arena 295,207
Debt – Parking Authority 649,353
Debt – Sponsored Research (Ind.
Cost) 99,970
Rhode Island
Capital Plan Funds
Debt Service 5,101,021
Asset Protection 3,990,000
Independence Hall 1,200,000
Total –
University of Rhode Island 488,779,703
Notwithstanding
the provisions of section 35-3-15 of the general laws, all unexpended or
unencumbered balances as of June 30, 2007 relating to the University of Rhode
Island are hereby reappropriated to fiscal year 2008.
Rhode Island College
General Revenues
General Revenues 47,354,405
Debt Service 1,590,682
RIRBA – Rhode Island College 293,470
University
and College Funds
University and College Funds 74,882,408
Debt – Education and General 295,152
Debt – Housing 494,417
Debt – Student Center & Dining 172,061
Debt – Student Union 172,194
Rhode Island
Capital Plan Funds
Asset Protection 1,732,500
Total –
Rhode Island College 126,987,289
Notwithstanding
the provisions of section 35-3-15 of the general laws, all unexpended or
unencumbered balances as of June 30, 2007 relating to Rhode Island College are
hereby reappropriated to fiscal year 2008.
Community College of Rhode Island
General Revenues
General
Revenues 49,537,170
Debt Service 1,405,076
Restricted Receipts 639,479
University and College Funds
University
and College Funds 59,569,735
Debt – Bookstore 176,504
Rhode Island
Capital Plan Funds
Knight Campus Nursing Program 65,000
Asset Protection 1,102,500
Total – Community College of Rhode
Island 112,495,464
Notwithstanding
the provisions of section 35-3-15 of the general laws, all unexpended or
unencumbered balances as of June 30, 2007 relating to the Community College of
Rhode Island are hereby reappropriated to fiscal year 2008.
Grand
Total – Public Higher Education 739,807,969
RI State Council on the Arts
General
Revenues
Operating Support 795,942
Grants 2,045,524
Federal
Funds 731,500
Restricted
Receipts 1,008,195
Grand Total - RI State Council on
the Arts 4,581,161
RI Atomic Energy Commission
General Revenues 836,702
Federal
Funds 375,000
University
and College Funds URI Sponsored Research 171,206
Grand Total - RI Atomic Energy
Commission 1,382,908
RI Higher Education Assistance Authority
General
Revenues
Needs Based Grants and Work
Opportunities 5,730,027
Authority Operations and Other
Grants 1,017,375
Federal
Funds 12,852,312
Tuition
Savings Program - Administration 10,058,298
Grand Total - Higher Education
Assistance Authority 29,658,012
RI Historical Preservation and Heritage Commission
General
Revenues 1,705,676
Federal
Funds 487,267
Restricted
Receipts 266,820
Grand Total - RI Historical Pres.
and Heritage Comm. 2,459,763
RI Public Telecommunications Authority
General
Revenues 1,388,669
Corporation
for Public Broadcasting 828,498
Grand Total - Public
Telecommunications Authority 2,217,167
Attorney General
Criminal
General
Revenues 13,077,675
Federal
Funds 1,055,397
Restricted
Receipts 520,527
Total - Criminal 14,653,599
Civil
General
Revenues 4,524,821
Restricted
Receipts 552,539
Total - Civil 5,077,360
Bureau of Criminal Identification General Revenues 991,634
General
General
Revenues 2,249,571
Rhode Island
Capital Plan Funds
Building Renovations and Repairs 165,000
Total - General 2,414,571
Grand Total - Attorney General 23,137,164
Corrections
Central Management
General
Revenues 8,557,219
Federal
Funds 260,032
Total - Central Management 8,817,251
Parole Board
General
Revenues 1,247,742
Federal
Funds 33,002
Total - Parole Board 1,280,744
Institutional Corrections
General
Revenues 139,084,180
Federal
Funds 7,224,911
Rhode Island
Capital Plan Funds
Reintegration Center State Match 3,247,123
General Renovations – Maximum 250,000
General Renovations – Women’s 700,000
Women’s Bathroom Renovations 506,000
Bernadette Guay Bldg. Roof 623,000
MIS/Admin. Units Relocation 151,017
Asset Protection 2,154,000
Total - Institutional Corrections 153,940,231
Community Corrections
General
Revenues 13,553,170
Federal
Funds 820,175
Total – Community Corrections 14,373,345
Grand Total - Corrections 178,411,571
Judiciary
Supreme Court
General
Revenues
General Revenues 25,833,914
Defense of Indigents 2,967,659
Federal
Funds 122,000
Restricted
Receipts 1,042,001
Rhode Island
Capital Plan Funds
Blackstone Valley Courthouse Study 145,000
Judicial HVAC 500,000
McGrath Int/Ext 200,000
Asset Protection 100,000
Total - Supreme Court 30,910,574
Superior Court
General
Revenues 20,593,206
Superior Court Adult Drug Court
General
Revenues 66,000
Federal
Funds 465,292
Total - Superior Court 21,124,498
Family Court
General
Revenues 16,451,290
Federal
Funds 1,336,037
Family Court Drug Court V-Family Treatment
Federal Funds 272,492
Family Court Juvenile Drug Court
General Revenues 819,885
Total - Family Court 18,879,704
District Court General Revenues 9,923,880
Traffic Tribunal General Revenues 7,318,155
Workers' Compensation Court Restricted Receipts 7,285,626
Grand Total - Judiciary 95,442,437
Military Staff
National Guard
General
Revenues 2,335,467
Federal
Funds 8,954,804
Restricted
Funds 145,000
Rhode Island
Capital Plan Funds
Benefit Street Arsenal Rehabilitation 200,000
Schofield Armory Rehabilitation 140,000
AMC Roof Replacement 200,000
State Armories Fire Code Comp. 150,000
Federal Armories Fire Code Comp. 118,750
Logistics/Maint. Facilities Fire Code Comp. 100,010
Asset Protection 200,000
Total - National Guard 12,544,031
Emergency Management
General
Revenues 829,452
Federal
Funds 23,694,978
Restricted
Receipts 285,385
Total - Emergency Management 24,809,815
Grand Total - Military Staff 37,353,846
E-911 Emergency Telephone System
General
Revenues 4,485,669
Federal
Funds 70,936
Restricted
Receipts 2,312,113
Grand Total - E-911 Emergency
Telephone System 6,868,718
Fire Safety Code Board of Appeal and Review General Revenues 289,299
State Fire Marshal
General
Revenues 2,838,049
Federal
Funds 191,000
Grand Total - State Fire Marshal 3,029,049
Commission on Judicial Tenure and Discipline
General
Revenues 114,772
Rhode Island Justice Commission
General
Revenues 163,972
Federal
Funds 4,707,722
Restricted
Receipts 30,000
Grand Total - Rhode Island Justice
Commission 4,901,694
Municipal Police Training Academy
General
Revenues 425,710
Federal
Funds 45,000
Grand Total - Municipal Police
Training Academy 470,710
State Police
General
Revenues 49,047,151
Federal
Funds 1,743,907
Restricted
Receipts 235,411
Traffic
Enforcement - Municipal Training 454,596
Rhode Island
Capital Plan Funds Headquarters
Repairs/Renovations 340,000
Lottery
Commission Assistance 155,127
Road
Construction Reimbursement 2,366,598
Grand Total - State Police 54,342,790
Office of Public Defender
General
Revenues 9,326,545
Federal
Funds 135,701
Grand Total - Office of Public
Defender 9,462,246
Environmental Management
Office of the Director
General
Revenues 6,475,699
Federal
Funds 1,495,287
Restricted
Receipts 1,895,300
Total – Office of the Director 9,866,286
Natural Resources
General
Revenues 18,708,114
Federal
Funds 19,130,040
Restricted
Receipts 4,154,765
DOT
Recreational Projects 73,417
Blackstone
Bikepath Design 1,284,821
Rhode Island
Capital Plan Funds
Dam Repair 300,000
Recreational Facilities Improvements 500,000
Fort Adams Rehabilitation 250,000
Jamestown Fishing Pier 100,000
Wickford Marine Facility 223,310
Galilee Piers Upgrade 200,000
Newport Piers 150,000
Total - Natural Resources 45,074,467
Environmental Protection
General
Revenues 12,346,683
Federal
Funds 13,161,108
Restricted
Receipts 11,502,175
Total - Environmental Protection 37,009,966
Grand Total - Environmental
Management 91,950,719
Coastal Resources Management Council
General
Revenues 2,112,667
Federal
Funds 1,599,392
Restricted
Receipts 3,195,000
Grand Total - Coastal Resources
Management Council 6,907,059
State Water Resources Board
General
Revenues 1,937,302
Restricted
Receipts 400,000
Rhode Island
Capital Plan Funds
Big River Management Area 80,600
Grand Total - State Water Resources
Board 2,417,902
Transportation
Central Management
Federal
Funds 5,161,535
Intermodal
Surface Transportation Funds 3,098,421
Total - Central Management 8,259,956
Management and Budget
Intermodal
Surface Transportation Funds 1,709,378
Infrastructure – Engineering – Garvee/Motor Fuel Tax Bonds
Federal
Funds 232,584,994
Restricted
Receipts 3,066,699
Intermodal
Surface Transportation Funds 49,053,371
Land Sale
Revenue 2,000,000
State
Infrastructure Bank 1,000,000
Rhode Island
Capital Plan Funds Pawtucket/Central Falls
Train Station 25,000
Total - Infrastructure – Engineering
– Garvee/Motor 287,730,064
Infrastructure Maintenance
Intermodal
Surface Transportation Funds 40,815,043
Outdoor
Advertising 75,000
Resurfacing
Design 250,000
Total - Infrastructure Maintenance 41,140,043
Grand Total - Transportation 338,839,441
Statewide Totals
General
Revenues 3,221,527,107
Federal
Funds 1,948,173,147
Restricted
Receipts 129,069,782
Other Funds 1,366,179,366
Statewide Grand Total 6,664,949,402
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. 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 5.
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, 2007.
SECTION 6.
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, 2007.
SECTION
7. Appropriation of Lottery Division Funds
– There is hereby appropriated to the Lottery Division any funds required to be
disbursed by the Lottery Division for the purposes of awarding winnings for the
fiscal year ending June 30, 2007.
SECTION 8.
The amounts reflected in this Article include the appropriation of Rhode Island
Capital Plan funds for fiscal year 2007 and supersede appropriations provided
for FY 2007 within Section 11 of Article 1 of Chapter 117 of the P.L. of 2005.
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 20, 3008 , June 30, 2009, June 30, 2010, and June
30, 2011. These amounts supersede appropriations provided within Section 11 of Article
1 of Chapter 117 of the P.L. of 2005. 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.
Project FY 2008 FY 2009 FY 2010
FY 2011
RICAP Statehouse
Renovations 4,000,000 5,000,000 5,000,000 5,000,000
RICAP-Elderly Affairs
One-Stop Ctr.2,000,000
2,000,000
2,085,000 300,000
RICAP-McCoy Stadium
Repairs 557,500 432,500 152,500
372,500
RICAP-Training School
Girl's Facility 2,000,000 1,845,000 - -
RICAP-Training School
Community
Centers 1,500,000 3,300,000 3,900,000
1,400,000
RICAP-Youth Group Homes
Fire
Code Upgrades 1,300,000 1,435,000
1,435,000 -
RICAP-Utilities
Upgrades
750,000 1,000,000 1,500,000 2,000,000
RICAP-Community
Facilities Fire
Code Upgrades 1,000,000 1,500,000
2,000,000 2,500,000
RICAP-URI Asset
Protection 4,189,500 4,398,975 4,618,924
4,849,870
RICAP-URI Lippitt
Hall 3,520,000 -
- -
RICAP-URI Chemistry
Bldg. 500 000 - - -
RICAP-URI Nursing
Program Bldg. 500,000 - - -
RICAP-RIC Asset
Protection 1,819,125 1,910,082 2,005,586
2,105,865
RICAP-CCRI Asset
Protection 1,157,625 1,215,507 1,276,281
1,340,095
RICAP-CCRI Knight Campus
Nursing Program 60,000 - - -
RICAP-CCRI Fire Code
& HVAC 1,700,000 1,700,000 - -
RICAP-MIS Unit
Relocation
1,000,000 903,998 407,985 -
RICAP-DOC Asset
Protection 3,500,000 5,000,000 6,500,000
8,000,000
RICAP-Judicial Complexes
Asset
Protection 450,000 472,500 496,125
544,556
RICAP-Armory of Mounted
Commands 441,910 1,100,000 950,000
-
RICAP-Military Asset
Protection 210,000 220,500 231,525
243,101
RICAP-Quonset Point
Armory/Hangar Land
Acquisition 1,600,000 - - -
RICAP-State Police
Hdqrts. - 2,000,000
7,000,000 -
RICAP-Dam Repairs 1,475,000 750,000 1,025,000
1,250,000
RICAP-State Recreation
Facilities
Improvement 1,000,000
1,050,000
1,102,500 1,157,625
Reappropriation of
funding for Rhode Island Capital Plan Fund Projects. – Any unexpended and
unencumbered funds from Rhode Island Capital Plan Fund project appropriations
shall be reappropriated in the ensuing fiscal year and made available for the
same purpose. Any unexpended funds of less than five hundred dollars ($500)
shall e reappropriated at the discretion of the State Budget Officer.
SECTION
9. 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 three million
three hundred thousand dollars ($3,300,000) on June 30, 2007.
Section 12 of Article 1 of Chapter
117 of the 2005 Public Laws entitled "An Act Making Appropriations for the
Support of the State for the Fiscal Year Ending June 30, 2006 is hereby amended
to read as follows: 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 four million five hundred thousand
dollars ($4,500,000) seven million five hundred thousand dollars
($7,500,000) on June 30, 2006.
SECTION 10.
Notwithstanding any provisions of Chapter 38.1 in Title 45 of the Rhode Island
General Laws, the Rhode Island Health and Educational Building Corporation
shall transfer to the State Controller the sum of three million seven hundred
thousand dollars ($3,700,000) on June 30, 2006.
SECTION 11.
Notwithstanding any provisions of Chapter 20.5-5 in Title 5 of the Rhode Island
General Laws, the Rhode Island Department of Business Regulation shall transfer
from the Real Estate Recovery Account to the State Controller the sum of one
hundred thousand dollars ($100,000) on June 30, 2006.
SECTION 12.
Any unexpended and unencumbered balances in the Attorney General's Consumer
Education Escrow Account as of June 30, 2006 shall be transferred as general
revenues.
SECTION 13. Notwithstanding any
provisions of Rhode Island General Laws, the Rhode Island Department of Labor
and Training shall transfer to the State Controller the sum of one million
three hundred four thousand fifty dollars ($1,304,050) from the Second Injury
Fund and the sum of Seven hundred eleven thousand three hundred dollars ($711,300) from the Donley Rehabilitation
Fund which was paid to the state from the American International Group.
SECTION 14. The Coastal Resources Management Council
shall transfer the sum of eight hundred and fifty thousand dollars ($850,000)
from the Dredging Fee Escrow Account to the State Controller by June 30,
2007.
SECTION 15. Departments and
agencies listed below may not exceed, in any pay period, the greater of the
number of full-time equivalent positions (FTE) shown below or the number
reported as filled by the Department of Administration for the last pay period
of FY 2006, nor may the number of full-time equivalent positions in the
executive branch excluding positions at the Office of Higher Education,
University of Rhode Island, Rhode Island College, and the Community College of
Rhode island supported by third party fund exceed 14,254.4 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. Provided,
however, that the Governor or designee, Speaker of the House of Representatives
or designee, and the President of the Senate or designee 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 President of
the Senate. 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.
The Director of Administration shall prepare and transmit a
report to the Chairpersons of the House and Senate Finance Committees with
copies to the House Fiscal Advisor and Senate Fiscal Advisor listing the number
of new full-time equivalent position employees hired by department and agency
by month for the period January 1, 2006 through June 30, 2006. The report shall
be transmitted no later than August 1, 2006.
The Director of Administration shall
prepare and transmit monthly reports to the Chairpersons of the House and
Senate Finance Committees with copies to the House Fiscal Advisor and the
Senate Fiscal Advisor listing the number of full-time equivalent position
employees hired by department and agency for each month commencing July 1, 2006.
The reports shall be transmitted no later than the 20th day of the
following month.
FTE
POSITION AUTHORIZATION
Departments
and Agencies Full-Time Equivalent
Administration 1,077.3
Business
Regulation 102.7
Labor and
Training 467.9
Legislature 275.2
Office of
the Lieutenant Governor 9.5
Office of
the Secretary of State 55.9
Office of
the General Treasurer 86.2
Boards for
Design Professionals 3.8
Board of
Elections 14.3
Rhode Island
Ethics Commission 11.4
Office of
the Governor 46.0
Public
Utilities Commission 45.7
Rhode Island
Commission on Women 0.9
Department
of Revenue 472.1
Office of
Health and Human Services 5.0
Children,
Youth, and Families 789.8
Elderly
Affairs 50.5
Health 465.6
Human
Services 1,111.0
Mental
Health, Retardation, and Hospitals 1,817.3
Office of
the Child Advocate 5.8
Commission
on the Deaf and Hard of Hearing 2.8
RI
Developmental Disabilities Council 2.0
Governor's
Commission on Disabilities 6.3
Commission
for Human Rights 14.4
Office of
the Mental Health Advocate 3.5
Elementary
and Secondary Education 124.5
Davies 133.0
School for
the Deaf 68.0
Office of
Higher Education 22.0
Provided
that 1.0 of the total authorization would be available only for a position that
is supported by third- party funds.
University
of Rhode Island 2,542.1
Provided
that 602.0 of the total authorization would be available only for positions
that are supported by third-party funds.
Rhode Island
College 925.5
Provided that
82.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Community
College of Rhode Island 850.2
Provided
that 100.0 of the total authorization would be available only for positions
that are supported by third-party funds.
Rhode Island
State Council on the Arts 8.6
RI Atomic
Energy Commission
8.2
Higher
Education Assistance Authority 45.6
Historical
Preservation and Heritage Commission 17.0
Public
Telecommunications Authority 21.4
Office of
the Attorney General 221.9
Corrections 1,498.6
Judiciary 723.4
Notwithstanding
any provisions of Chapter 8 Section 8-8.2-1 of the Rhode Island General Laws,
the Traffic Tribunal may not have more than five (5) judges and magistrates
during FY 2007.
Military Staff
103.1
E-911
Emergency Telephone System 49.9
Fire Safety
Code Bd. of Appeal and Review 2.8
RI State
Fire Marshal 36.1
Commission
on Judicial Tenure and Discipline 0.9
Rhode Island
Justice Commission 6.4
Municipal
Police Training Academy 3.7
State Police 268.5
Office of
the Public Defender 93.5
Environmental
Management 503.5
Coastal
Resources Management Council 28.5
State Water
Resources Board 8.5
Transportation 779.7
Total 16,038.0
SECTION
16. The general assembly authorizes the
state controller to establish the internal service accounts shown below, and no
other, to finance and account for the operations of state agencies that provide
services to other agencies, institutions and other governmental units on a cost
reimbursed basis. The purpose of these
accounts is to ensure that certain activities are managed in a businesslike
manner, promote efficient use of services by making agencies pay the full costs
associated with providing the services, and allocate the costs of central administrative
services across all fund types, so that federal and other nongeneral fund
programs share in the costs of general government support. The controller is authorized to reimburse
these accounts for the cost of work or services performed for any other
department or agency subject to the following expenditure limitations:
Account Expenditure
Limit
State
Assessed Fringe Benefit Internal Service Fund 30,515,107
Administration
Central Utilities Internal Service Fund 18,797,979
State
Central Mail Internal Service Fund 5,268,011
State
Telecommunications Internal Service Fund 2,232,829
State
Automotive Fleet Internal Service Fund 14,656,702
State
Surplus Property Internal Service Fund 17,715
Capitol
Police Internal Service Fund 559,158
Health
Insurance Internal Service Fund 244,184,576
MHRH Central
Pharmacy Internal Service Fund 10,332,218
MHRH Laundry
Services Internal Service Fund 1,407,510
Corrections
General Services & Warehouse
Internal Service Fund 6,126,014
Corrections
Howard Center Telephone Operations
Internal
Service Fund 707,955
Correctional
Industries Internal Service Fund 6,945,525
Secretary of
State Record Center Internal Service Fund 1,156,600
(b) The
Governor shall include as part of the FY 2008 budget, a description of these
accounts, their purposes, and the efficacy of continuing them.
SECTION
17. This article shall take effect as
of July 1, 2006.
ARTICLE 2 SUBSTITUTE 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, 2007, 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
two hundred and fifty million dollars ($250,000,000), 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, 2007 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 upon passage.
ARTICLE 3 SUBSTITUTE A AS AMENDED
RELATING TO MAKING REVISED APPROPRIATIONS FOR
THE SUPPORT OF THE STATE FOR FISCAL YEAR ENDING JUNE 30, 2006
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, 2006. The amounts identified for federal funds and
restricted receipts shall be made available pursuant to Section 35-4-22 and
Chapter 42-41 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
2006 FY 2006 FY 2006
Enacted Change Final
Administration
Central Management
General Revenues 1,775,142 110,732 1,885,874
Federal Funds 323,069 29,738 352,807
Restricted Receipts 99,807 47,001 146,808
Total - Central
Management 2,198,018 187,471 2,385,489
Legal Services General Revenues 2,163,909 (17,085) 2,146,824
Accounts and Control General Revenues 4,264,946 139,156 4,404,102
Budgeting General
Revenues 3,057,986 (28,973) 3,029,013
Purchasing General
Revenues 2,102,230 196,796 2,299,026
Auditing General
Revenues 1,801,761 (130,000) 1,671,761
Human Resources General
Revenues 6,554,273 19,646 6,573,919
Personnel Appeal Board General
Revenues 93,666 (2,621) 91,045
Taxation
General Revenues 18,223,648 (13,892) 18,209,756
Federal Funds 1,093,904 50,730 1,144,634
Restricted Receipts 837,732 (68,663) 769,069
Intermodal Surface Transportation
Funds
Motor Fuel Tax Evasion Program 56,487 (22,337) 34,150
Temporary Disability Insurance 805,858 39,638 845,496 Total
– Taxation 21,017,629 (14,524) 21,003,105
Registry of Motor Vehicles
General Revenues 16,381,072 579,942 16,961,014
Federal Funds 246,798 615,041 861,839
Restricted Receipts 17,166 (1,083) 16,083
Total – Registry of
Motor
Vehicles 16,645,036 1,193,900 17,838,936
Facilities Management
General Revenues 11,197,657 2,831,473 14,029,130
Federal Funds 17,070,908 1,281,342 18,352,250
Restricted Receipts 1,522,448 (454,840) 1,067,608 Total
– Facilities Management 29,791,013 3,657,975 33,448,988
Capital Projects and Property Management
General Revenues 2,737,301 544,581 3,281,882
Information Technology
General Revenues 2,470,752 3,862,863 6,333,615
Federal Funds - 428,000 428,000
Total – Information
Technology 2,470,752 4,290,863 6,761,615
Office of Library and Information
Services
General Revenues 1,007,261 - 1,007,261
Federal Funds 1,396,535 - 1,396,535
Restricted Receipts 8,000 (3,500) 4,500 Total
- Office of Library and
Information Services 2,411,796 (3,500) 2,408,296
Planning
General Revenues 1,684,772 3,936,486 5,621,258
Federal Funds 5,045,062 2,145,755 7,190,817
Intermodal Surface Transportation
Funds
Federal Highway - PL Systems
Planning 1,477,838 355,418 1,833,256
Airr Quality Modeling 20,800 - 20,800
Total - Planning 8,228,472 6,437,659 14,666,131
Security Services General
Revenues 17,022,922 1,416,256 18,439,178
General
General Revenues
Domestic Partners
Settlement - 474,864 474,864
Information Processing
Overhead 870,000 - 870,000
Miscellaneous Grants 355,000 - 355,000
Property Tax Relief
Credit 10,000,000 (10,000,000) -
Rhode Island Sports
Foundation 300,000 - 300,000
Torts – Courts 400,000 - 400,000
Contingency Fund 1,500,000 (820,867) 679,133
State Employees/Teachers
Retiree
Health 7,850,206 698,681 8,548,887
Economic Development
Corporation 7,326,287 (159,307) 7,166,980
Asset Inventory - 98,613 98,613
Economic Policy Council 300,000 - 300,000
Centers of Excellence 3,000,000 - 3,000,000
Housing Resources
Commission 3,629,496 (3,629,496) -
Neighborhood
Opportunities
Program - 97,499 97,499
Motor Vehicle Excise Tax
Payment 112,285,745 5,489,101 117,774,846
Property Valuation 1,000,000 212,288 1,212,288
General Revenue Sharing
Program 65,347,910 (373,907) 64,974,003
Payment in Lieu of Tax
Exempt
Properties 26,975,194 - 26,975,194
Distressed Communities
Relief
Program 9,966,667 673,056 10,639,723
Resource Sharing and
State
Library Aid 8,441,076 - 8,441,076
Library Construction Aid 2,651,643 - 2,651,643
Federal Funds 255,573 - 255,573
Restricted Receipts 1,116,850 166,497 1,283,347
Rhode Island Capital Plan Funds
Chapin Health
Laboratory 125,000 (67,539) 57,461
Cannon Building 150,000 (90,337) 59,663
Veterans Auditorium 1,150,000 - 1,150,000
Old State House 398,700 (368,700) 30,000
State Office Building 500,000 (60,619) 439,381
Veterans’ Office
Building 350,000 54,418 404,418
Old Colony House 200,000 (80,000) 120,000
Washington County
Government Center 50,000 215,170 265,170
William Powers
Administration Building 500,000 492,852 992,852
State House
Renovations – Phase II 1,000,000 52,760 1,052,760
State House
Renovations – Phase III - 153,315 153,315
Powers Building
Technology
Infrastructure 450,000 (450,000) -
Environmental
Compliance 300,000 (64,124) 235,876
Fox Point Hurricane
Barrier 50,000 - 50,000
Cranston Street
Armory Exterior 500,000 2,600,594 3,100,594
Eisenhower House 50,000 - 50,000
Fire Code Compliance
State Buildings 1,000,000 (950,000) 50,000
State House
Terrace/South Stairs - 21,823 21,823
Lead Mitigation
Group Homes 250,000 (250,000) -
Pastore Center
Sewer - 1,077,324 1,077,324
McCoy Stadium 1,480,000 (1,480,000) -
Bio-Tech Training
Lab Planning - 200,000 200,000
Elderly Affairs One
Stop Elder Center 25,000 - 25,000
Total – General 272,100,347 (6,066,041) 266,034,306
Debt Service Payments
General Revenues 83,189,918 (11,775,523) 71,414,395
Federal Funds 1,123,536 54,318 1,177,854
Restricted Receipts 6,648,590 (5,620,634) 1,027,956
Rhode Island Capital Plan Funds
MHRH Community
Services Program 5,750,722 26,630 5,777,352
MHRH Community
Mental Health Program 2,246,987 132,684 2,379,671
DEM – Narragansett
Bay Commission 1,973,944 (46,486) 1,927,458
Debt Service –
CWFA 2,797,577 212,315 3,009,892
DEM Debt
Service – Recreation 10,232,831 269,988 10,502,819
DEM – Wastewater
Treatment 4,162,000 28,002 4,190,002
DEM – Hazardous
Waste 1,115,646 1,335,872 2,451,518
Water Resources
Board 2,156,936 137,171 2,294,107
URI GO Debt
Service 5,643,500 (5,643,500) -
RIC 514,787 (514,787) -
CCRI GO Debt
Service 1,438,040 (1,438,040) -
DOA – Third Rail
Project – Quonset Point 1,367,030 (1,367,030) -
Intermodal Surface Transportation
Funds
RIPTA Debt Service 685,240 (35,487) 649,753
Transportation Debt
Service 31,596,609 5,210,834 36,807,443
Temporary Disability Insurance Fund
RIRBA - DLT – Temporary
Disability
Insurance 45,586 - 45,586
COPS - DLT Building –
TDI 362,820 (7,002) 355,818
Reed Act Funds -- COPS - DLT
Building –
Reed Act 36,990 (10,670) 26,320
University and College Funds
URI Education and
General 1,088,999 (1,088,999) -
URI Housing
Loan Funds 1,751,951 (1,751,951) -
URI Dining Services 266,889 (266,889) -
URI Health Services 126,218 (126,218) -
W. Alton Jones Services 112,766 (112,766) -
URI Memorial Union 98,277 (98,277) -
URI Sponsored Research
(Indirect Cost) 101,334 (101,334) -
RIC Education and
General 296,614 (296,614) -
RIC Housing 568,191 (568,191) -
RIC Student Center and
Dining 177,951 (177,951) -
RIC Student Union 217,171 (217,171) -
CCRI Bookstore 177,092 (177,092) -
Total - Debt
Service
Payments 168,072,742 (24,034,798) 144,037,944
Retirement Alternative
General Revenues (1,658,427) 1,658,427 -
Federal Funds (666,889) 666,889 -
Restricted Receipts (105,391) 105,391 -
Other Funds (302,821) 302,821 -
Total – Retirement
Alternative (2,733,528) 2,733,528 -
Pay Plan Reserve General
Revenues 33,000,000 (33,000,000) -
Lottery Division Lottery Funds - 210,312,897 210,312,897
Grand Total –
Administration 593,001,271 167,833,186 760,834,457
Business Regulation
Central Management General
Revenues 1,733,036 97,167 1,830,203
Banking Regulation General
Revenues 1,758,524 90,540 1,849,064
Securities Regulation General Revenues 817,326 58,592 875,918
Commercial Licensing and Regulation
General Revenues 1,253,819 (97,847) 1,155,972
Restricted Receipts 100,000 - 100,000
Total - Commercial
Licensing
and Regulation 1,353,819 (97,847) 1,255,972
Racing and Athletics General
Revenues 417,172 91,213 508,385
Insurance Regulation
General Revenues 4,415,873 (245,896) 4,169,977
Restricted Receipts 708,362 (14,266) 694,096
Total - Insurance
Regulation 5,124,235 (260,162) 4,864,073
Board of Accountancy General Revenues 139,494 10,571 150,065
Grand Total
- Business
Regulation 11,343,606 (9,926) 11,333,680
Labor and Training
Central Management
General Revenues 423,321 (152,729) 270,592
Restricted Receipts 836,481 59,492 895,973
Total - Central
Management 1,259,802 (93,237) 1,166,565
Workforce Development Services
General Revenues 673,000 (380,000) 293,000
Federal Funds 14,134,648 5,427,898 19,562,546
Restricted Receipts 7,963,073 488,972 8,452,045
Reed Act Funds
Rapid
Job Entry 1,650,413 (636,301) 1,014,112
Woonsocket
NetworkRI Office - 556,898 556,898
Workforce
Development 5,534,438 (149,236) 5,385,202
Of the $7.0 million appropriated
from Other Reed Act funds, $1.0 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; $556,898 may be used solely for netWORKri office
renovations; and $5.4 million may be used solely for the administration of this
state’s employment compensation law and public employment offices.
Total - Workforce Development
Services 29,955,572 5,308,231 35,263,803
Workforce Regulation and Safety
General Revenues 3,076,120 122,281 3,198,401
Income Support
General Revenues 2,941,805 185,617 3,127,422
Federal Funds 14,434,496 1,853,853 16,288,349
Restricted Receipts
1,771,717 (178,350) 1,593,367 Temporary
Disability Insurance
Fund 177,569,683 (5,124,588)
172,445,095
Employment Security Fund 204,500,000 6,582,532 211,082,532
Total - Income Support 401,217,701 3,319,064 404,536,765
Injured Workers Services Restricted Receipts 10,113,250 1,533,691 11,646,941
Labor Relations Board General
Revenues 327,624 109,054 436,678
Grand Total - Labor and
Training 445,950,069 10,299,084 456,249,153
Legislature
General Revenues 28,956,307 3,655,213 32,611,520
Restricted Receipts
1,272,479 79,025 1,351,504
Grand Total – Legislature 30,228,786 3,734,238 33,963,024
Lieutenant Governor General
Revenues 917,362 41,405 958,767
Secretary of State
Administration General
Revenues 1,614,280 205,961 1,820,241
Corporations General Revenues 1,554,819 193,692 1,748,511
State Archives
General Revenues 95,950 3,901 99,851
Federal Funds - 22,500 22,500
Restricted Receipts
485,628 (10,735) 474,893
Total - State Archives 581,578 15,666 597,244
Elections and Civics
General Revenues 379,685 90,594 470,279
Federal Funds 981,955 5,296,941 6,278,896
Total – Elections 1,361,640 5,387,535 6,749,175
State Library General Revenues 698,938 3,286 702,224
Office of Public Information
General Revenues 455,798 (51,092) 404,706 Grand
Total – State 6,267,053 5,755,048 12,022,101
General Treasurer
Treasury
General Revenues 2,587,681 (78,421) 2,509,260
Federal Funds 269,067 9,625 278,692
Restricted Receipts
10,000 - 10,000 Temporary Disability Insurance
Fund 274,710 9,923 284,633
Total – Treasury 3,141,458 (58,873) 3,082,585
State Retirement System
State Employees' Retirement
Admin Expenses - State
Retirement System 4,521,572 2,122,738 6,644,310
Retirement - Treasury
Investment Operations 703,192 13,494 716,686 Total
- State Retirement
System 5,224,764 2,136,232 7,360,996
Unclaimed Property Restricted Receipts 18,394,382 6,780,618 25,175,000
RI Refunding Bond Authority General Revenues 53,011 1,731 54,742
Crime Victim Compensation Program
General Revenues 257,980 (19,326) 238,654
Federal Funds 1,230,172 829,214 2,059,386
Restricted Receipts
1,744,101 (79,524) 1,664,577
Total - Crime Victim
Compensation Program 3,232,253 730,364 3,962,617
Grand Total – General
Treasurer 30,045,868 9,590,072 39,635,940
Boards for Design Professionals
General Revenues 359,516 21,157 380,673
Board of Elections
General Revenues 1,421,683 12,454 1,434,137
Federal Funds 1,086,873 (57,754) 1,029,119
Grand Total - Board of
Elections 2,508,556 (45,300) 2,463,256
Rhode Island Ethics Commissions
General Revenues 1,207,394 (16,064) 1,191,330
Office of Governor
General Revenues 4,530,495 240,673 4,771,168 Intermodal
Surface
Transportation Funds 76,187 9,178 85,365
Restricted Receipts
- 103,611 103,611
Grand Total - Office of
Governor 4,606,682 353,462 4,960,144
Public Utilities Commission
General Revenues 710,111 (16,567) 693,544
Federal Funds 75,437 8,125 83,562
Restricted Receipts
5,634,792 187,586 5,822,378
Grand Total - Public Utilities
Commission 6,420,340 179,144 6,599,484
Rhode Island Commission on Women
General Revenues 86,557 5,263 91,820
Children, Youth, and Families
Central Management
General Revenues 8,238,151 261,809 8,499,960
Federal Funds 3,997,779 (4,105) 3,993,674
Total - Central Management 12,235,930 257,704 12,493,634
Children's Behavioral Health Services
General Revenues 30,777,152 3,811,574 34,588,726
Federal Funds 31,564,022 4,902,413 36,466,435
Rhode Island Capital Plan Funds
Groden Center –
Mt. Hope 79,660 - 79,660
Total - Children's Behavioral
Health Services 62,420,834 8,713,987 71,134,821
Juvenile Correctional Services
General Revenues 30,019,893 2,047,243 32,067,136
Federal Funds 2,918,837 510,051 3,428,888
Restricted Receipts
4,500 640,980 645,480
Rhode Island Capital Plan Funds
Girl’s Facility –
Training School 1,275,000 (575,000) 700,000
Community Facilities –
Training Schools 725,000 (725,000) -
NAFI
Center 50,000 (50,000) -
Total - Juvenile Correctional
Services 34,993,230 1,848,274 36,841,504
Child Welfare
General Revenues 95,443,297 (2,742,636) 92,700,661
Federal Funds 71,290,686 2,091,014 73,381,700
Restricted Receipts
1,623,901 15,519 1,639,420
RICAP – Fire Code Upgrades 500,000 (450,000) 50,000
Total - Child Welfare 168,857,884 (1,086,103) 167,771,781
Higher Education Incentive Grants
General Revenues 200,000 - 200,000 Grand Total
- Children,
Youth, and Families 278,707,878 9,733,862 288,441,740
Elderly Affairs
General Revenues
General Revenues 15,436,299 (108,960) 15,327,339
RIPAE 5,656,668 894,332 6,551,000
Safety and Care of the Elderly 600 - 600
Federal Funds 13,910,687 1,547,183 15,457,870
Restricted Receipts
3,325,000 (925,000) 2,400,000
Intermodal Surface
Transportation Fund 4,760,000 - 4,760,000
Grand Total - Elderly Affairs 43,089,254 1,407,555 44,496,809
Health
Central Management
General Revenues 7,066,701 770,278 7,836,979
Federal Funds 4,291,813 2,724,143 7,015,956
Restricted Receipts
3,795,332 292,985 4,088,317
Total - Central Management 15,153,846 3,787,406 18,941,252
State Medical Examiner
General Revenues 1,830,258 41,856 1,872,114
Federal Funds 137,846 88,365 226,211
Total - State Medical Examiner 1,968,104 130,221 2,098,325
Family Health
General Revenues 2,213,925 (55,528) 2,158,397
Federal Funds 30,854,716 (351,139) 30,503,577
Restricted Receipts
5,707,238 565,261 6,272,499
Total - Family Health 38,775,879 158,594 38,934,473
Health Services Regulation
General Revenues 4,962,160 213,337 5,175,497
Federal Funds 5,730,052 (59,409) 5,670,643
Restricted Receipts
380,453 (5,790) 374,663
Total - Health Services
Regulation 11,072,665 148,138 11,220,803
Environmental Health
General Revenues 4,696,140 (145,384) 4,550,756
Federal Funds 4,415,280 299,388 4,714,668
Restricted Receipts
1,606,049 303,359 1,909,408
Total - Environmental Health 10,717,469 457,363 11,174,832
Health Laboratories
General Revenues 6,000,295 127,285 6,127,580
Federal Funds 1,986,255 906,101 2,892,356
Total - Health Laboratories 7,986,550 1,033,386 9,019,936
Disease Prevention and Control
General Revenues 5,059,834 4,685,347 9,745,181
Federal Funds 19,386,915 534,565 19,921,480
Restricted Receipts
91,000 (91,000) -
National Highway Traffic Safety Funds
Child Safety Program 87,076 (87,076) -
Walkable Communities
Initiative 28,000 1,960 29,960
Total - Disease
Prevention and Control 24,652,825 5,043,796 29,696,621
Grand Total – Health 110,327,338 10,758,904 121,086,242
Human Services
Central Management
General Revenues 8,889,833 (157,996) 8,731,837
Federal Funds 6,649,429 17,086 6,666,515
Restricted Receipts
2,710,000 (743,562) 1,966,438
Total - Central Management 18,249,262 (884,472) 17,364,790
Child Support Enforcement
General Revenues 3,463,716 150,557 3,614,273
Federal Funds 6,997,863 324,946 7,322,809
Total – Child Support
Enforcement 10,461,579 475,503 10,937,082
Individual and Family Support
General Revenues 22,791,531 571,818 23,363,349
Federal Funds 54,905,850 (111,192) 54,794,658
Restricted Receipts
88,625 3,319 91,944
Rhode Island Capital Plan Funds
Blind Vending 50,000 - 50,000
Total - Individual and Family Support 77,836,006 463,945 78,299,951
Veterans' Affairs
General Revenues 17,891,642 763,688 18,655,330
Federal Funds 6,958,291 (296,343) 6,661,948
Restricted Receipts
2,398,295 226,222 2,624,517
Total - Veterans' Affairs 27,248,228 693,567 27,941,795
Health Care Quality, Financing and Purchasing
General Revenues 29,542,024 (8,368,043) 21,173,981
Federal Funds 43,427,720 921,135 44,348,855
Restricted Receipts
400,702 139,446 540,148
Total - Health Care Quality,
Financing & Purchasing 73,370,446 (7,307,462) 66,062,984
Medical Benefits
General Revenues
Hospitals 113,645,903 3,016,530 116,662,433
Nursing Facilities 137,117,647 (2,093,847) 135,023,800
Managed Care 199,614,408 (16,692,451) 182,921,957
Special Education 16,631,706 (16,631,706) -
Pharmacy 67,453,544 (2,291,918) 65,161,626
Other 62,855,309 3,087,825 65,943,134
Federal Funds
Hospitals 133,566,006 2,271,561 135,837,567
Nursing Facilities 165,492,754 (2,516,554) 162,976,200
Managed Care 245,193,520 953,723 246,147,243
Special Education 20,068,294 - 20,068,294
Pharmacy 80,340,270 (24,901,896) 55,438,374
Other 77,982,175 1,612,438 79,594,613
Restricted Receipts
15,000 - 15,000
Total - Medical Benefits 1,319,976,536 (54,186,295) 1,265,790,241
Supplemental Security Income Program
General Revenues 28,195,198 (585,570) 27,609,628
Family Independence Program
General Revenues
Child Care 48,725,584 (6,531,417) 42,194,167
TANF/Family Independence
Program 13,316,549 (470,852) 12,845,697
Federal Funds 82,864,462 6,936,219 89,800,681
Total - Family Independence
Program 144,906,595 (66,050) 144,840,545
State Funded Programs
General Revenues
General Public Assistance 3,014,942 532,086 3,547,028
Citizens Participation Program 50,000 - 50,000
Federal Funds 78,578,921 1,827,359 80,406,280
Total - State Funded Programs 81,643,863 2,359,445 84,003,308
Grand Total –
Human Services
1,781,887,713 (59,037,389)
1,722,850,324
Mental Health, Retardation, and Hospitals
Central Management General
Revenues 2,448,761 (179,211) 2,269,550
Hospital and Community System Support
General Revenues 22,883,374 5,711,380 28,594,754
Federal Funds - 61,110 61,110
Rhode Island Capital Plan Funds
Utilities Upgrade 500,000 383,937 883,937
Medical Center
Rehabilitation 400,000 (25,402) 374,598
Utility Systems
Water Tanks and Pipes 250,000 81,199 331,199
Central Power Plant
Rehabilitation 100,000 135,944 235,944
Community Facilities -
Fire Code 1,500,000 (1,200,000) 300,000
Pastore Center Fire
Code Compliance 500,000 (400,000) 100,000
DD Private Waiver
Community Facilities
Fire Code Upgrades - 50,000 50,000
Total - Hospital and
Community System
Support 26,133,374 4,798,168 30,931,542
Services for the Developmentally Disabled
General Revenues 110,527,346 418,032 110,945,378 Federal
Funds 134,325,661 599,134
134,924,795
Rhode Island Capital Plan Funds
MR/DD Residential
Development 1,250,000 (324,910) 925,090
Regional Center
Repair/Rehabilitation 281,261 (100,000) 181,261
MR Community
Facilities 1,250,000 (202,500) 1,047,500
Total - Services for the
Developmentally Disabled 247,634,268 389,756 248,024,024
Integrated Mental Health Services
General Revenues 41,367,980 1,394,206 42,762,186
Federal Funds 37,848,505 175,248 38,023,753
Total - Integrated Mental Health
Services 79,216,485 1,569,454 80,785,939
Hospital and Community Rehabilitation Services
General Revenues 47,515,173 2,284,071 49,799,244
Federal Funds 55,069,510 108,424 55,177,934
Rhode Island Capital Funds
Zambarano Buildings
and Utilities 180,000 17,052 197,052
Total - Hospital and Community
Rehab. Services 102,764,683 2,409,547
105,174,230
Substance Abuse
General Revenues 15,313,055 (26,479) 15,286,576
Federal Funds 14,941,629 (126,380) 14,815,249
Restricted Receipts
100,000 (10,000) 90,000
Rhode Island Capital Plan Funds
Asset Protection 200,000 (74,633) 125,367
Total - Substance Abuse 30,554,684 (237,492) 30,317,192
Grand Total – Mental Health,
Retardation, and Hospitals
488,752,255 8,750,222 497,502,477
Office of the Child Advocate
General Revenues 498,621 37,568 536,189
Federal Funds 48,060 (37,568) 10,492
Grand Total – Office of the
Child Advocate 546,681 - 546,681
Commission on the Deaf and Hard of Hearing
General Revenues 307,606 29,478 337,084
Federal Funds 45,336 (30,336) 15,000
Grand Total - Commission on the
Deaf and Hard of
Hearing 352,942 (858) 352,084
RI Developmental Disabilities Council
Federal Funds 511,924 (53,310) 458,614
Governor's Commission on Disabilities
General Revenues
531,409 16,912 548,321
Federal Funds 116,928 109,511 226,439
Restricted Receipts
63,605 22,727 86,332
Rhode Island Capital Funds
Facility Renovation 200,000 - 200,000
Grand Total - Governor's
Commission on Disabilities 911,942 149,150 1,061,092
Commission for Human Rights
General Revenues 979,397 26,511 1,005,908
Federal Funds 269,705 42,777 312,482
Grand Total - Commission for
Human Rights 1,249,102 69,288 1,318,390
Mental Health Advocate
General Revenues 351,329 30,503 381,832
Elementary and Secondary Education
Administration of the Comprehensive Education Strategy
General Revenues 20,204,757 (174,051) 20,030,706
Federal Funds 174,784,555 967,330 175,751,885
Restricted Receipts
2,797,497 (654,601) 2,142,896
University and College Funds
Vision Services 140,000 - 140,000
Rhode Island Capital Plan Funds
Chariho Well Water - 70,886 70,886
State-Owned Schools
Fire Alarm - 20,440 20,440
Total – Administration of the Comprehensive
Education Strategy 197,926,809 230,004 198,156,813
Davies Career and Technical School
General Revenues 12,810,692 355,701 13,166,393
Federal Funds 1,359,370 148,666 1,508,036
Restricted Receipts 2,000 10,000 12,000
Rhode Island Capital Plan Funds
Davies HVAC 137,280 - 137,280
Total - Davies Career
and Technical School 14,309,342 514,367 14,823,709
RI School for the Deaf
General Revenues 5,981,028 225,074 6,206,102
Federal Funds 382,065 9,551 391,616
Rhode Island Capital Plan Funds
School for the Deaf
Planning Funds 200,000 (50,000) 150,000
Total - RI School
for the Deaf 6,563,093 184,625 6,747,718
Metropolitan Career and Technical School
General Revenues 8,814,530 - 8,814,530
Education Aid
General Revenues 642,631,258 1,364,598 643,995,856
Federal Funds 2,240,868 (219,082) 2,021,786
Restricted Receipts
2,059,733 (225,184) 1,834,549
Total – Education Aid 646,931,859 920,332 647,852,191
Central Falls School District
General Revenues 41,240,904 599 41,241,503
Housing Aid General Revenues 47,172,045 (548,389) 46,623,656
Teacher’s Retirement General Revenues 58,632,638 (2,519,590) 56,113,048 Grand Total - Elementary and
Secondary Education 1,021,591,220 (1,218,052) 1,020,373,168
Public Higher Education
Board of Governors/Office of Higher Education
General Revenues
General Revenues 7,314,286 (275,000) 7,039,286
Debt – People Soft Lease - 1,211,207 1,211,207
Federal Funds 3,085,532 - 3,085,532
Restricted Receipts
- 502,000 502,000
Total - Board of Governors/Office
of
Higher Education 10,399,818 1,438,207 11,838,025
University of Rhode Island
General Revenues 84,303,400 (1,925,000) 82,378,400
University and College Funds
University and College Funds 360,396,663 (7,720,550) 352,676,113
Debt-Dining Services - 319,627 319,627
Debt-Educational & General - 1,728,694 1,728,694
Debt-Health Services - 128,000 128,000
Debt-Housing Loan Funds - 1,751,951 1,751,951
Debt-Memorial Union - 99,663 99,663
Debt-Ryan Center - 2,305,722 2,305,722
Debt-Alton Jones Services - 113,343 113,343
Debt-Boss Arena - 449,144 449,144
Debt-Parking Authority - 647,815 647,815
Debt-Sponsored Research
(Ind. Cost) - 101,816 101,816
Rhode Island Capital Plan Funds
Asset Protection 5,200,000 2,455,069 7,655,069
Independence Hall 2,600,000 - 2,600,000
Chafee Hall PCB
Abatement - 5,441 5,441
Biological Science
Center - 101,689 101,689
Superfund 1,756,250 1,053,750 2,810,000
Debt Service - 6,807,788 6,807,788 Total – University of
Rhode Island 454,256,313 8,423,962 462,680,275
Notwithstanding the provisions of Section 35-3-15 of the
General Laws, all unexpended or unencumbered balances as of June 30, 2006
relating to the University of Rhode Island are hereby reappropriated to fiscal
year 2007.
Rhode Island College
General Revenues
General Revenues 44,980,878 (911,465) 44,069,413
RIRBA – Rhode Island College - 232,093 232,093
University and College Funds
University and College Funds 68,837,183 684,859 69,522,042
Debt-Education and General - 294,884 294,884
Debt-Housing - 458,968 458,968
Debt-Student Center
& Dining - 172,136 172,136
Debt-Student Union - 236,112 236,112
Rhode Island Capital Plan Funds
Asset
Protection /Roofs 1,650,000 1,001,387 2,651,387
Debt Service - 875,676 875,676
Total – Rhode Island College 115,468,061 3,044,650 118,512,711
Notwithstanding the provisions of Section 35-3-15 of the
General Laws, all unexpended or unencumbered balances as of June 30, 2006
relating to Rhode Island College are hereby reappropriated to fiscal year 2007.
Community College of Rhode Island
General Revenues 45,770,273 (324,895) 45,445,378
Restricted Receipts
607,689 27,991 635,680
University and College Funds
University and College Funds 54,924,341 147,457 55,071,798
Debt-Bookstore - 176,842 176,842
Rhode Island Capital Plan Funds
CCRI Newport - 90,000 90,000
Asset Protection 1,050,000 959,571 2,009,571
Debt Service - 1,436,673 1,436,673
Total – Community
College of RI 102,352,303 2,513,639 104,865,942
Notwithstanding the provisions of section 35-3-15 of the
General Laws, all unexpended or encumbered balances as of June 30, 2006
relating to the Community College of Rhode Island are hereby reappropriated to
fiscal year 2007.
Grand Total – Public
Higher
Education 682,476,495 15,420,458 697,896,953
RI State Council on the Arts
General Revenues
Operating Support 1,411,498 17,651 1,429,149
Grants 1,212,423 - 1,212,423
Federal Funds 758,437 (83,575) 674,862
Restricted Receipts
600,000 - 600,000
Grand Total - RI State
Council
on the Arts 3,982,358 (65,924) 3,916,434
RI Atomic Energy Commission
General Revenues 765,890 4,360 770,250
Federal Funds 325,000 50,000 375,000
University and College Funds
URI Sponsored Research 157,049 4,127 161,176
Grand Total - RI Atomic
Energy Commission 1,247,939 58,487 1,306,426
RI Higher Education Assistance Authority
General Revenues
Needs Based Grants and
Work Opportunities 8,922,769 (2,200,000) 6,722,769
Authority Operations and
Other Grants 977,653 28,606 1,006,259
Federal Funds 12,390,339 2,189,839 14,580,178 Tuition
Savings Program –
Administration 6,398,486 410,462 6,808,948
Grand Total - Higher
Education
Assistance Authority 28,689,247 428,907 29,118,154
RI Historical Preservation and Heritage Commission
General Revenues 1,410,602 4,683 1,415,285
Federal Funds 583,881 21,762 605,643
Restricted Receipts
236,662 323,806 560,468
Grand Total - Historical
Preservation Comm. 2,231,145 350,251 2,581,396
RI Public Telecommunications Authority
General Revenues 1,285,906 30,362 1,316,268
Corporation for Public
Broadcasting 756,911 44,038 800,949
Rhode Island Capital Plan Funds
Digital TV
Conversion - 1,736,387 1,736,387
Grand Total – RI Public
Telecommunications Authority 2,042,817 1,810,787 3,853,604
Attorney General
Criminal
General Revenues 11,762,923 860,813 12,623,736
Federal Funds 1,034,894 162,519 1,197,413
Restricted Receipts
360,199 107,476 467,675
Total – Criminal 13,158,016 1,130,808 14,288,824
Civil
General Revenues 3,672,422 567,647 4,240,069
Restricted Receipts
501,733 17,501 519,234
Total – Civil 4,174,155 585,148 4,759,303
Bureau of Criminal Identification
General Revenues 849,017 94,956 943,973
Federal Funds 123,650 147,218 270,868
Total - Bureau of Criminal
Identification 972,667 242,174 1,214,841
General
General Revenues 1,946,801 208,546 2,155,347
Rhode Island Capital Plan Funds
Building Renovations
and Repairs 271,000 194,578 465,578
Total – General 2,217,801 403,124 2,620,925
Grand Total - Attorney General 20,522,639 2,361,254 22,883,893
Corrections
Central Management
General Revenues 10,422,167 200,656 10,622,823
Federal Funds 399,595 26,349 425,944
Total - Central Management 10,821,762 227,005 11,048,767
Parole Board
General Revenues 1,140,970 71,609 1,212,579
Federal Funds 33,000 12,045 45,045
Total - Parole Board 1,173,970 83,654 1,257,624
Institutional Corrections
General Revenues 123,003,047 11,942,912 134,945,959
Federal Funds 7,126,791 2,383,524 9,510,315
Restricted Receipts
- 2,812 2,812
Rhode Island Capital Plan Funds
Perimeter/Security
Upgrades 83,198 62,500 145,698
Fire Code Safety
Improvements 200,000 100,000 300,000
Security Camera
Installation 400,000 (400,000) -
Reintegration Center
State Match 390,000 150,000 540,000
General Renovations
- Maximum 550,000 (316,432) 233,568
General Renovations
– Women’s 1,000,000 355,160 1,355,160
Women’s Bath Room
Renovations 450,000 (337,382) 112,618
Bernadette Guay Bldg.
Roof 200,000 (142,898) 57,102
Heating and Temperature
Control 342,000 (15,791) 326,209
Medium HVAC
Renovations 31,000 (31,000) -
Minimum – Infrastructure
Improvements 100,000 (100,000) -
High – Infrastructure
Improvements 200,000 - 200,000
Medium – Price:
Window/HVAC 215,000 (215,000) -
MIS/Admin Units
Relocation 50,000 (50,000) -
Total - Institutional Corrections 134,341,036 13,388,405 147,729,441
Community Corrections
General Revenues 12,372,991 355,437 12,728,428
Federal Funds 1,914,414 (345,769) 1,568,645
Total – Community Corrections 14,287,405 9,668 14,297,073
Grand Total –
Corrections 160,624,173 13,708,732
174,332,905
Judiciary
Supreme Court
General Revenues
General Revenues 21,602,151 1,648,573 23,250,724
Defense of Indigents 3,016,818 (200,000) 2,816,818
Federal Funds 185,399 195,926 381,325
Restricted Receipts
960,921 121,376 1,082,297
Rhode Island Capital Plan Funds
Fogarty
Interior/Exterior - 22,969 22,969
Licht Foundation - 35,000 35,000
Blackstone Valley
Courthouse Study 100,000 55,000 155,000
McGrath Judicial
Complex Exterior 125,000 (92,998) 32,002
Judicial HVAC 475,000 5,271 480,271
Licht Window
Restoration 550,000 275,000 825,000
Total - Supreme Court 27,015,289 2,066,117 29,081,406
Superior Court
General Revenues 18,138,389 706,367 18,844,756
Federal Funds 567,518 160,918 728,436
Total - Superior Court 18,705,907 867,285 19,573,192
Family Court
General Revenues 13,917,290 1,445,014 15,362,304
Federal Funds 2,376,178 1,273,501 3,649,679
Restricted Receipts
142,010 (142,010) -
Total - Family Court 16,435,478 2,576,505 19,011,983
District Court
General Revenues 8,650,732 676,435 9,327,167
Federal Funds - 6,431 6,431
Total - District Court 8,650,732 682,866 9,333,598
Traffic Tribunal General Revenues 6,862,587 212,221 7,074,808
Workers' Compensation Court
Restricted Receipts
6,287,111 866,846 7,153,957
Grand Total – Judiciary 83,957,104 7,271,840 91,228,944
Military Staff
National Guard
General Revenues 1,759,766 202,281 1,962,047
Federal Funds 6,804,799 1,212,820 8,017,619
Restricted Receipts
145,000 - 145,000
Rhode Island Capital Plan Funds
Command Readiness
Center - HVAC 12,500 (12,500) -
Command Readiness
Center - Roof 30,000 (30,000) -
Benefit Street Arsenal
Rehabilitation 225,695 (208,695) 17,000
Emergency Operations
Center - 10,000 10,000
Schofield Armory
Rehabilitation 200,000 - 200,000
Combine Support
Maintenance Shop 25,000 (25,000) -
Army Aviation Support
Facility 25,000 (25,000) -
AMC – Roof
Replacement 50,000 (45,672) 4,328
Camp Fogarty Training
Site 40,000 (40,000) -
State Armories Fire
Code Comp 106,250 (31,250) 75,000
Federal Armories Fire
Code
Comp 46,875 (46,875) -
Logistics/Maint Facilities
Fire Code Comp 37,505 (37,505) -
Total - National Guard 9,508,390 922,604 10,430,994
Emergency Management
General Revenues 572,047 200,731 772,778
Federal Funds 19,675,832 12,287,106 31,962,938
Restricted Receipts
276,429 (64,000) 212,429
Total - Emergency Management 20,524,308 12,423,837 32,948,145
Grand Total –
Military Staff 30,032,698 13,346,441 43,379,139
E-911 Emergency Telephone System
General Revenues 4,170,299 (40,382) 4,129,917
Federal Funds 219,000 85,936 304,936
Restricted Receipts
1,656,924 170,947 1,827,871
Grand Total - E-911 Emergency
Telephone System 6,046,223 216,501 6,262,724
Fire Safety Code Board of Appeal and Review
General Revenues 266,894 20,611 287,505
State Fire Marshal
General Revenues 2,368,505 (62,475) 2,306,030
Federal Funds 341,635 25,663 367,298
DEA Forfeiture Funds 12,599 - 12,599
Grand Total - State Fire
Marshal 2,722,739 (36,812) 2,685,927
Commission on Judicial Tenure and Discipline
General Revenues 106,650 6,761 113,411
Rhode Island Justice Commission
General Revenues 253,085 935 254,020
Federal Funds 5,451,607 (144,148) 5,307,459
Restricted Receipts
30,000 - 30,000
Grand
Total - Rhode Island
Justice Commission 5,734,692 (143,213) 5,591,479
Municipal Police Training Academy
General Revenues 373,710 - 373,710
Federal Funds 30,000 87,102 117,102
Grand Total - Municipal Police
Training Academy 403,710 87,102 490,812
State Police
General Revenues 45,368,538 1,004,146 46,372,684
Federal Funds 1,979,224 79,137 2,058,361
Restricted Receipts
301,100 55,492 356,592
Traffic Enforcement - Municipal
Training 87,922 379,073 466,995
Rhode Island Capital Plan Funds
Headquarters
Repairs/Renovations 100,000 (90,000) 10,000
Lottery Commission Assistance 140,991 5,519 146,510
Road Construction
Reimbursement 2,366,598 - 2,366,598 Grand Total –
State Police 50,344,373 1,433,367 51,777,740
Office of Public Defender
General Revenues 7,757,125 673,177 8,430,302
Federal Funds 237,847 28,222 266,069
Grand Total - Office of Public
Defender 7,994,972 701,399 8,696,371
Environmental Management
Office of the Director
General Revenues
7,309,360 172,387 7,481,747
Federal Funds 1,276,863 - 1,276,863
Restricted Receipts
1,734,107 133,500 1,867,607
Total – Office of the Director 10,320,330 305,887 10,626,217
Natural Resources
General Revenues 17,073,559 1,180,987 18,254,546
Federal Funds 16,606,512 56,946 16,663,458
Restricted Receipts
3,485,157 43,418 3,528,575
DOT Recreational Projects 25,234 - 25,234
Blackstone Bikepath Design 1,295,257 - 1,295,257
Rhode Island Capital Plan Funds
Recreational Facilities
Improvement 500,000 (200,000) 300,000
Dam Repair 739,550 (53,061) 686,489
Fort Adams
Rehabilitation 250,000 (200,000) 50,000
Great Swamp
Management Area 100,000 (100,000) -
Jamestown Fishing
Pier 250,000 (182,171) 67,829
Wickford Marine
Facility 550,000 (25,000) 525,000
Galilee Piers Upgrade 200,000 (100,000) 100,000
Newport Piers 100,000 (25,000) 75,000
Total - Natural Resources 41,175,269 396,119 41,571,388
Environmental Protection
General Revenues 11,413,541 390,051 11,803,592
Federal Funds 12,306,963 909,935 13,216,898
Restricted Receipts 5,175,024 63,876 5,238,900
Total - Environmental
Protection 28,895,528 1,363,862 30,259,390 Grand Total - Environmental
Management 80,391,127 2,065,868 82,456,995
Coastal Resources Management Council
General Revenues 1,580,355 96,650 1,677,005
Federal Funds 1,753,000 786,121 2,539,121
Restricted Receipts
805,733 9,928 815,661
Rhode Island Capital Plan Funds
Allin’s Cove - 50,000 50,000 Grand Total - Coastal
Resources Management
Council 4,139,088 942,699 5,081,787
State Water Resources Board
General Revenues 1,845,239 (218,360) 1,626,879
Federal Funds 500,000 - 500,000
Restricted Receipts 338,899 22,893 361,792
Rhode Island Capital Plan Funds
Big River Management
Area 119,312 11,844 131,156 Grand Total - State Water
Resources Board 2,803,450 (183,623) 2,619,827
Transportation
Central Management
Federal Funds 9,608,487 (4,200,280) 5,408,207
Intermodal Surface Transportation Funds 3,613,697 35,999 3,649,696 Total - Central Management 13,222,184 (4,164,281) 9,057,903
Management and Budget
Intermodal Surface Transportation Funds 2,067,463 978,285 3,045,748
Infrastructure Engineering – GARVEE/Motor Fuel Tax Bond
Federal Funds 198,244,033 40,534,882 238,778,915
Restricted Receipts
6,000 3,055,001 3,061,001
Intermodal Surface Transportation Funds 50,814,802 (4,264,041) 46,550,761
Land Sale Revenue 4,000,000 2,000,000 6,000,000
Rhode Island Capital Plan Funds
RIPTA - Land and
Buildings 250,000 79,547 329,547
Pawtucket – Central Falls Train
Station - - 75,000 75,000
State Infrastructure Bank 1,000,000 - 1,000,000
Total - Infrastructure –
Engineering 254,314,835 41,480,389 295,795,224
Infrastructure Maintenance
Intermodal
Surface Transportation Funds 42,259,025 232,209 42,491,234
Outdoor Advertising 60,565 14,435 75,000
Nonland Surplus Property - 287,523 287,523
Total - Infrastructure
Maintenance 42,319,590 534,167 42,853,757
Grand Total –
Transportation 311,924,072 38,828,560 350,752,632
Statewide Totals
General Revenues 3,142,080,062
(41,871,330) 3,100,208,732
Federal Funds 1,979,496,133 78,594,472 2,058,090,605 Restricted
Receipt Funds
109,999,095 8,003,823 118,002,918
Other Funds 1,118,331,953 222,234,132
1,340,566,085
Statewide Grand Total 6,349,907,243 266,961,097 6,616,868,340
SECTION
2. Each line appearing in Section 1 of this Article
shall constitute an appropriation.
SECTION
3. Section 11 of Article 1 of Chapter 117 of the
Public Laws of 2005 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 completed in FY 2005 for which reappropriated
funds are no longer required. The
amounts listed are hereby withdrawn and the State Controller is authorized to
return these funds to the Rhode Island Capital Plan Fund.
FY
2006 FY 2006 FY 2006
RICAP Project Enacted Balance Forward Final
Atomic
Energy – Reactor Walls Painting 0 1,500 0
Education
– Davies Roof Repair 0 5,045 0
Corrections
– Correctional Industries Roof 0 5,926 0
DCYF
– Spurwink/RI 0 281 0
Judicial
– Murray Judicial Complex 0 3,379 0
SECTION
4. (a) The
general assembly authorizes the state controller to establish the internal
service accounts shown below, and no other, to finance and account for the
operations of state agencies that provide services to other agencies,
institutions and other governmental units on a cost reimbursed basis. The purpose of these accounts is to ensure
that certain activities are managed in a businesslike manner, promote efficient
use of services by making agencies pay the full costs associated with providing
the services, and allocate the costs of central administrative services across
all fund types, so that federal and other nongeneral fund programs share in the
costs of general government support.
The controller is authorized to reimburse these accounts for the cost of
work or services performed for any other department or agency subject to the
following expenditure limitations:
FY
2006 FY 2006 FY 2006
Account Enacted Change Final
State
Assessed Fringe Benefit Internal
Service Account 34,134,366 (4,231,111) 29,903,255
Administration
Central Utilities Internal
Service Account 18,281,440 10,104 18,291,544
State
Information Processing Internal
Service Account 15,055,779 325,306 15,381,085
State
Central Mail Internal Service Account 5,198,540 (7,088) 5,191,452
State
Telecommunications Internal Service
Account 2,639,558 (396,927) 2,242,631
State
Automotive Fleet Internal Service Account 13,463,673 1,322,372 14,786,045
State
Surplus Property Internal Service Account 35,000 0 35,000
Capitol
Police Internal Service Account 479,359 55,778 535,137
Health
Insurance Internal Service Fund 0 222,760,927 222,760,927
MHRH
Central Pharmacy Internal Service
Account 10,297,692 (2,926) 10,294,766
MHRH
Laundry Services Internal Service
Account 1,299,417 34,483 1,333,900
Corrections
General Services & Warehouse
Internal Service Account 6,161,370 (56,515) 6,104,855
Corrections
Howard Center Telephone Operations
Internal Service Acct. 890,536 (168,807) 721,729
Correctional
Industries Internal Service Account 6,508,643 292,405 6,801,048
Secretary
of State Record Center Internal
Service Account 1,099,918 17,342 1,117,260
(b) The Governor shall
include as part of the FY 2007 budget, a description of these accounts, their
purposes, and the efficacy of continuing them.
SECTION
5.
Appropriation of Lottery Division Funds – There is hereby appropriated
to the Lottery Division any funds required to be disbursed by the Lottery
Division for the purposes of awarding winnings for the fiscal year ending June
30, 2006.
SECTION
6.
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. Provided, however, that the
Governor or designee, Speaker of the House of Representatives or designee, and
President of the Senate or designee 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 President of the Senate. A copy of the recommendation and
authorization to adjust shall be transmitted to the chairman of the House
Finance Committee, the chairman of the Senate Finance Committee, the House
Fiscal Advisor and the Senate Fiscal Advisor.
FTE
POSITION AUTHORIZATION
Departments
and Agencies
Full-Time
Equivalent
Administration 1,200.4
1,269.9
Business
Regulation 110.0
Labor and
Training 512.7 510.7
Legislature 289.0
Lieutenant
Governor General 10.0
Secretary of
State 59.0
General
Treasurer 87.5
Boards for
Design Professionals 4.0
Board of Elections 15.0
Rhode Island
Ethics Commission 12.0
Office of the
Governor 48.5
49.5
Public
Utilities Commission 46.0
Rhode Island
Commission on Women 1.0
Children,
Youth, and Families 849.8
Elderly Affairs 52.0
Health 499.4
Human Services 1,174.4
1,173.4
Mental Health,
Retardation, and Hospitals 1,992.7
Office of the
Child Advocate 5.8
6.1
Commission on
the Deaf and Hard of Hearing 3.0
RI
Developmental Disabilities Council 2.0
Governor's
Commission on Disabilities 6.6
Commission for
Human Rights 15.0
Office of the
Mental Health Advocate 3.7
Elementary and
Secondary Education 339.1
Office of
Higher Education 23.0
Provided that
1.0 of the total authorization would be available only for a position that is
supported by third-party funds.
University of
Rhode Island 2,561.6
Provided that
602.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Rhode Island
College 941.2
Provided that
82.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Community
College of Rhode Island 848.9
Provided that
100.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Rhode Island
Council on the Arts 8.0
RI Atomic
Energy Commission 8.6
Higher
Education Assistance Authority 46.0
Historical
Preservation and Heritage Commission 17.6
Public
Telecommunications Authority 22.0
Office of the
Attorney General 234.5
Corrections 1,589.0
Judicial 742.0
Military Staff 103.0
105.0
E-911 Emergency
Telephone System 53.6
Fire Safety
Code Bd. of Appeal and Review 3.0
RI State Fire
Marshal 38.0
Commission on
Judicial Tenure and Discipline 1.0
Rhode Island
Justice Commission 9.0
8.5
Municipal Police
Training Academy 4.0
State Police 282.0
Office of the
Public Defender 93.5
Environmental
Management 531.3
Coastal
Resources Management Council 30.0
Water Resources
Board 9.0
Transportation 810.7 809.7
Total 16,349.1 16,417.4
SECTION
7. This article shall take effect upon passage.
ARTICLE 4 SUBSTITUTE A
RELATING TO 911 EMERGENCY TELEPHONE SYSTEM
SURCHARGE
SECTION
1. 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 one dollar ($1.00) is hereby levied upon each residence and
business telephone line or trunk or path and data, telephony, Internet, Voice
Over Internet Protocol (VoIP) wireline, line, trunk or path 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)
that can access to, connect with or interface with the Rhode Island E-911
Uniform Emergency Telephone System (RI E-911). The surcharge shall be billed by
each telecommunication services provider at the inception of services and shall
be payable to the telecommunication services provider by the subscriber of the
services. A monthly surcharge of one dollar ($1.00) is hereby levied effective
July 1, 2002, on each wireless instrument, device or means including prepaid,
cellular, telephony, Internet, Voice Over Internet Protocol (VoIP), satellite,
computer, radio, communication, data or data only wireless lines or any other
wireless instrument, device or means which has access to, connects with, or
activates or interfaces or any combination thereof with the E 9-1-1 Uniform Emergency
Telephone System. The surcharge shall be in addition to the surcharge collected
under § 39-1-62 and shall be billed by each telecommunication services provider
and shall be payable to the telecommunication services provider by the
subscriber or prepaid services customer. The E-911 Uniform Emergency Telephone
System shall establish, by rule or regulation an appropriate funding mechanism
to recover from the general body of ratepayers this surcharge.
(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.
(d) The money
collected by each telecommunication services provider shall be transferred
within sixty (60) days after its inception of wireline, wireless, prepaid,
cellular, telephony, Voice Over Internet Protocol (VoIP), satellite, computer,
Internet, or communications services in this state and every month thereafter,
to the general treasury division of taxation, together with the
accrued interest and shall be deposited in the general fund as general revenue.
Any money not transferred in accordance with this paragraph shall be assessed
interest at eight percent (8%) per annum from the date the money should have been
transferred.
(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.
(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 section be construed to prohibit wireless
communication services carriers from charging subscribers for any wireless
service or feature.
(j)
State, local and quasi-governmental agencies shall be exempt from the
surcharge.
SECTION 2. Section
39-1-61 of the General Laws in Chapter 39-1 entitled "Public Utilities Commission"
is hereby amended to read as follows:
39-1-61. Rhode Island telecommunications education access fund. --
(a) Preamble. - For the past ten (10) years, the schools and libraries of Rhode
Island have benefited from a regulatory agreement with Verizon and its
predecessor companies that has provided up to two million dollars ($2,000,000)
annually for support of telecommunications lines for internet access. In
addition, the funds provided for in the original regulatory agreement and every
dollar generated hereunder leverages a one dollar and twenty-seven cents
($1.27) federal E-Rate match. With the regulatory agreement approaching its
termination and the advent of more advanced technologies, it is the intent of
this section to provide a continued source of funding for internet access for
eligible public and private schools and libraries.
(b) Definitions. - As used in this section,
the following terms have the following meanings:
(1) "Department" of
education" means the Rhode Island department of elementary and
secondary education.
(2) "Division" means the Division
of Public Utilities and Carriers.
(3) "Telecommunications education access
fund" means the programs and funding made available to qualified libraries
and schools to assist in paying the costs of acquiring, installing and using
telecommunications technologies to access the internet.
(c) Purpose. - The purpose of the
telecommunications education access fund shall be to fund a basic level of
internet connectivity for all of the qualified schools (kindergarten through
grade 12) and libraries in the state.
(d) Authority. - The division shall
establish, by rule or regulation, an appropriate funding mechanism to recover
from the general body of ratepayers the costs of providing telecommunications
technology to access the internet.
(1) The general assembly shall determine the
amount of a monthly surcharge to be levied upon each residence and business
telephone access line or trunk in the state, including PBX trunks and centrex
equivalent trunks and each service line or trunk, and upon each user interface
number or extension number or similarly identifiable line, trunk, or path to or
from a digital network. The department will provide the general assembly with
information and recommendations regarding the necessary level of funding to
effectuate the purposes of this article. The surcharge shall be billed by each
telecommunications services provider and shall be payable to the
telecommunications services provider by the subscriber of the
telecommunications services. State, local and quasi-governmental agencies shall
be exempt from the surcharge. The surcharge shall be deposited in a restricted
receipt account, hereby created within the department of elementary and
secondary education and known as the telecommunications education access fund,
to pay any and all costs associated with subsection (b)(3). The amount of the
surcharge shall not exceed thirty-five cents ($.35) per access line or trunk.
(2) The surcharge is hereby determined to be
twenty-six cents ($.26) per access line or trunk.
(3) The amount of the surcharge shall not be
subject to the sales and use tax imposed under chapter 18 of title 44 nor be
included within the gross earnings of the telecommunications corporation
providing telecommunications service for the purpose of computing the tax under
chapter 13 of title 44.
(e) Administration. - The division, with
input from the department, shall administer the telecommunications education
access fund consistent with the requirements of the Universal Service (E-Rate)
program. The division of taxation shall collect from the
telecommunications service providers the amounts of the surcharge collected
from their subscribers. The department, with the approval of the division,
shall publish requests for proposals that do not favor any particular
technology, evaluate competitive bids, and select products and services that
best serve the internet access needs of schools and libraries. In doing so, the
department shall endeavor to obtain all available E-Rate matching funds. The
department is further authorized and encouraged to seek matching funds from all
local, state, and federal public or private entities. The department shall
approve dispersement of funds under this section in accordance with the
division's directives. Unsuccessful bids may be appealed to the division. The
division shall annually review the department's disbursements from this account
to ensure that the department's decisions do not favor any competitor.
(f) Eligibility. - All schools seeking
support from the fund must be eligible for Universal Service (E-Rate) support
and meet the definition of "elementary school" or "secondary
school" in the Elementary and Secondary Education Act of 1965, as amended
(20 U.S.C. section 8801). Schools operating as a for-profit business or with
endowments exceeding fifty million dollars ($50,000,000) are not eligible for
support. All libraries seeking support from the fund must meet the definition of
"library" or "library consortium" in the Library Services
and Technology Act, P.L. 104-208, section 211 et seq., 110 Stat. 3009 (1996)
and must be eligible for assistance from a state library administrative agency
under that act. Only libraries that have budgets that are completely separate
from any schools (including, but not limited to, elementary and secondary,
colleges and universities) shall be eligible to receive support. Libraries
operating as a for-profit business shall not be eligible for support.
(g) The effective date of assessment for the
telecommunications education access fund shall be January 1, 2004.
SECTION 3. Section 39-1-62 of the General Laws in Chapter 39-1
entitled "Public Utilities Commission" is hereby amended to read as
follows:
39-1-62. E-911 Geographic Information System (GIS) and Technology
Fund. [Repealed effective June 30, 2007.] --
(a) Preamble. - To allow the Rhode Island E-911 Emergency Telephone System
agency to associate latitude and longitude coordinates provided by wireless
carriers with physical locations throughout the state, the agency must
establish and maintain a GIS database of street addresses and landmarks. The
database will allow local emergency response personnel to dispatch police, fire
and rescue personnel to a specific address or landmark of a cellular caller in
the event the caller is unaware of his or her location, or is physically unable
to communicate it. Because more than half of the 530,000 9-1-1 phone calls
received in 2003 came from cellular phones, it is critical that the GIS
database be developed and maintained in order to improve caller location
identification and reduce emergency personnel response times.
(b) Definitions. - As used in this section,
the following terms have the following meanings:
(1) "System" means Emergency 911
Uniform Telephone System.
(2) "Agency" means Rhode Island 911
Emergency Telephone System.
(3) "Division" means the Division
of Public Utilities and Carriers.
(4) "GIS and Technology Fund" means
the programs and funding made available to the Emergency 911 Uniform Telephone
System to assist in paying the costs of the GIS database development project
and GIS systems maintenance, which will enable the system to locate cellular
phone callers by geocoding all addresses and landmarks in cities and towns
throughout the state. It also includes programs to create system redundancy and
maintain state-of-the-art equipment technology.
(c) Purpose. - The purpose of the GIS and
Technology Fund shall be to:
(1) Implement and maintain a geographic
information system database to assist in locating wireless phone callers for
emergency purposes in a manner consistent and in coordination with the Rhode
Island geographic information system administered by the Division of Planning
as provided for in section 42-11-10(g)(3); and
(2) Create system redundancy to ensure the
reliability of 9-1-1 service to the public; and
(3) Maintain state-of-the-art equipment
technology.
(d) Authority. - The agency shall establish, by
rule or regulation, an appropriate funding mechanism to recover from the
general body of ratepayers the costs of funding GIS and technology projects.
(1) The general assembly shall determine the
amount of a monthly surcharge to be levied upon each wireless instrument,
device or means including prepaid, cellular, telephony, Internet, Voice Over
Internet Protocol (VoIP), satellite, computer, radio, communication, data, or
any other wireless instrument, device or means that has access to, connects
with, interfaces with or is capable of delivering two-way interactive
communications services to the Rhode Island E-911 Uniform Emergency Telephone
System. The agency will provide the general assembly with information and
recommendations regarding the necessary level of funding to effectuate the
purposes of this article. The surcharge shall be billed monthly by each
wireless telecommunications services provider as defined in section 39-21.1-3
and shall be payable to the wireless telecommunications services provider by
the subscriber or prepaid service customer of the telecommunications services.
Each telecommunication services provider shall establish a special (escrow)
account to which it shall deposit on a monthly basis the amounts collected as a
surcharge under this section. The money collected by each wireless
telecommunication services provider shall be transferred within sixty (60) days
after its inception of wireless, prepaid, cellular, telephony, Voice Over
Internet Protocol (VoIP), satellite, computer, Internet, or communications,
information or data services in this state and every month thereafter. Any
money not transferred in accordance with this paragraph shall be assessed
interest at eight percent (8%) per annum from the date the money should have
been transferred. State, local and quasi-governmental agencies shall be exempt
from the surcharge. The surcharge shall be deposited in a restricted receipt
account, hereby created within the agency and known as the GIS and Technology
Fund, to pay any and all costs associated with the provisions of subsection
(c). The amount of the surcharge under this section shall not exceed
thirty-five cents ($.35) per wireless phone.
(2) The surcharge is hereby determined to be
twenty-six cents ($.26) per wireless phone, prepaid, cellular, telephony, Voice
Over Internet Protocol (VoIP), satellite, computer, data or data only wireless
lines or Internet communication or data instrument, device or means which has
access to, connects with, activates or interfaces with or any combination of
the above with the Rhode Island E-911 Uniform Emergency Telephone System per
month and shall be in addition to the wireless surcharge charged under section
39-21.1-14. The twenty-six cents ($.26) is to be billed to all wireless
telecommunication service providers, subscribers or prepaid service customers
upon the inception of services.
(3) The amount of the surcharge shall not be
subject to the sales and use tax imposed under chapter 18 of title 44 nor be
included within the gross earnings of the telecommunications corporation
providing telecommunications service for the purpose of computing the tax under
chapter 13 of title 44.
(4) With respect to prepaid wireless
telecommunication service providers and customers, and notwithstanding anything
to the contrary contained in this section, the surcharge shall be collected and
remitted to the agency division of taxation by the prepaid
wireless telecommunication service provider under one of three methods:
(i) The prepaid wireless telecommunication
service provider shall collect the surcharge, on a monthly basis, from each
active prepaid wireless telecommunication service customer whose account
balance is equal to or greater than the amount of the service charge; or
(ii) The prepaid wireless telecommunication
service provider shall collect the surcharge, on a monthly basis, at the point
of sale; or
(iii) The prepaid wireless telecommunication
service provider shall divide the total earned prepaid wireless telephone
revenue received by the prepaid wireless telecommunication service provider
within the monthly reporting period by fifty dollars ($50.00), and multiply the
quotient by the amount of the surcharge.
The surcharge amount or an equivalent number
of air-time minutes may be reduced from a prepaid wireless telecommunication
service customer's account when direct billing is not possible.
(e) Administration. - The agency division
of taxation shall collect monthly from the wireless telecommunications
service providers as defined in section 39-21.1-3 the amounts of the surcharge
collected from their subscribers or prepaid customers. The agency division
of taxation shall deposit such collections in an account maintained and
administered by the Rhode Island 911 Emergency Telephone System for use in
developing and maintaining the geographic information system database, creating
system redundancy, and improving equipment technology. The agency is further
authorized and encouraged to seek matching funds from all local, state, and
federal public or private entities and shall coordinate its activities and
share all information with the state Division of Planning.
(f) The effective date of assessment for the
GIS and Technology Fund shall be July 1, 2004.
(g) Nothing in this section shall be
construed to constitute rate regulation of wireless communications services
carriers, nor shall this section be construed to prohibit wireless
communications services carriers from charging subscribers for any wireless
service or feature.
(h) Except as otherwise provided by law, the
agency shall not use, disclose or otherwise make available call location
information for any purpose other than as specified in subsection (c).
(i) The attorney general shall, at the
request of the E-911 uniform emergency telephone system division, or any other
agency that may replace it, or on its own initiative, commence judicial
proceedings in the superior court against any telecommunication services
provider as defined in section 39-21.1-3(11) providing communication services
to enforce the provisions of this chapter.
SECTION 4. Subsection (j) of Section
1 of this article shall take effect as of July 1, 2005. The remainder of this
article shall take effect upon passage.
ARTICLE 5 SUBSTITUTE 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 2006, 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 2006 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) Higher Education $72,790,000
Approval
of this question will allow for the State of Rhode Island to issue general
obligation bonds, refunding bonds, and temporary notes in an amount not to
exceed $65,000,000 for the construction of a new college of pharmacy building
at the University of Rhode Island and $7,790,000 for renovations to the former
Department of Children, Youth and Families facilities at Rhode Island College.
(2)
Transportation $88,500,000
Approval
of this question will allow for the State of Rhode Island to issue general
obligation bonds, refunding bonds, and temporary notes in an amount not to
exceed $80,000,000 to match federal funds, provide direct funding for
improvements to the state's highways, roads and bridges; $7,000,000 to provide
funding for commuter rail, and $1,500,000 to purchase and/or rehabilitate buses
for the Rhode Island Public Transit Authority's bus fleet.
(3)
Roger Williams Park Zoo $11,000,000
Approval
of this question will allow for 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 improvements to the Roger Williams Park Zoo in
Providence.
(4)
Fort Adams State Park Recreation and Restoration $4,000,000
Approval
of this question will allow for the State of Rhode Island to issue general
obligation bonds, refunding bonds, and temporary notes in an amount not to
exceed $4,000,000 for improvements to the Fort Adams State Park in Newport.
(5) Department of Environmental Management $3,000,000
Approval
of this question will allow for the State of Rhode Island to issue general
obligation bonds, refunding bonds, and temporary notes in an amount not to
exceed $3,000,000 for the Local Recreation Development Program.
(6)
Affordable Housing $50,000,000
Approval
of this question will allow for the State of Rhode Island to issue general
obligation bonds, refunding, bonds, and temporary notes in an amount not to
exceed $50,000,000 for affordable housing.
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 2006 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 2006 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 2006 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 2006
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 and net the underwriters’ cost, and cost of bond
insurance, 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 accrued interest and net of the underwriters’ cost, and
cost of bond insurance, 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 bond 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 or her designee 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 2006
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 in the amount of $72,790,000 for Higher Education shall be
allocated as follows:
(a)
College of Pharmacy building at the University of Rhode Island $65,000,000
(b)
DCYF Facilities Phase III at Rhode Island College $7,790,000
Question
2 relating to bonds in the amount of $88,500,000 for transportation purposes
shall be allocated as follows:
(a)
Highway improvement program $80,000,000
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)
Commuter Rail $7,000,000
Provide
funds for the Department of Transportation to match federal funds or to provide
direct funding for commuter rail.
(c)
Bus replacement/Rehabilitation $1,500,000
Provide
funds for the Rhode Island Public Transit Authority to purchase new buses or
for rehabilitation of existing buses in the bus fleet.
Question
3 relating to bonds in the amount of $11,000,000 to be provided by the Department of Environmental Management to
the Roger Williams Park Zoo to be used with other federal, state and private
funds for upgrades and development of exhibits and facilities at the zoo.
Question
4 relating to bonds in the amount of $4,000,000 to be provided by the
Department of Environmental Management for the Fort Adams State Park. The
allocation shall be as follows:
approximately $2,000,000 for recreation and approximately $2,000,000 for
restoration.
Question
5 relating to bonds in the amount of $3,000,000 to be provided to the
Department of Environmental Management for the Local Recreation Development to
provide funding assistance for local communities to develop, acquire, or
renovate recreation facilities.
Question
6 relating to bonds in the amount of $50,000,000 to be provided to the Housing
Resources Commission to provide funding for affordable housing. The allocation
shall be as follows: $12,500,000 per year for four (4) years (total
$50,000,000) to provide state matching funds: $40,000,000 for deferred payment
loans to developers of affordable housing rental units and $10,000,000 for the
development of homeowner units.
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, net of the cost of bond insurance and underwriters discount,
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
is 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. Appropriation. -- 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 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 designee, 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 designee may also utilize any private
funds that may be made available for the purposes of this act.
SECTION 13. Effective Date. Sections 1, 2, 3, 11, and 12 of this
article shall take effect upon 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 6 SUBSTITUTE A
RELATING TO BOND PREMIUMS
SECTION
1. Section 6 of Chapter 289 of the
Public Laws, enacted in Article III of 86-A 2838A. Approved on Jun. 25, 1986, is hereby amended to read as
follows:
SECTION
6. Proceeds of bonds and notes to be
deposited in the Rhode Island clean water act environmental trust fund
program. -- (a) As such funds are needed, the general
treasurer is directed to deposit the proceeds from the sale of such
environmental bonds, exclusive of premiums and accrued interest and
net of the underwriter cost, and cost of bond insurance, in one of more of
the depositories in which the funds of the state may be lawfully kept in such
special accounts (hereinafter cumulatively referred to as “such Rhode Island Clean Water Act Environmental
Trust Fund”) as established by section 46-12-24.2 and to be used for the
purposes specified in section 46-12-24.2.
(b)
All proceeds of bonds and notes not immediately required for deposit into such
Rhode Island Clean Water Act Environmental Trust Fund may be invested by the
investment commission, as established by chapter 35-10 of the general laws,
pursuant to the provisions of such chapter; provided, however, that the
securities in which such fund is invested shall remain a part of such fund
until exchanged for other securities, and provided further that the income from
such investments made pursuant to this subsection shall become part of the
general fund of the state and shall be applied to the payment of debt service
charges of the state, unless prohibited by applicable federal law.
SECTION
2. Section 6 of Chapter 425 of the
Public Laws, enacted in Article I of 87-H 7247 as amended, and approved on Jun.
30, 1987 is hereby amended to read as follows:
SECTION
6. Proceeds of open space and recreational area bonds. –
(a) The general treasurer is directed to deposit the proceeds from the sale of
open space and recreational area bonds, exclusive of premiums and
accrued interest and net of the underwriters cost, and cost of bond
insurance, in one or more of the depositories in which the funds of the
state may lawfully be kept in appropriately designated special accounts
(hereinafter cumulatively referred to as “such open space and recreational area
bond funds”), to be used for the purposes and in the manner set forth in this
section.
(b)
Up to forty-five million dollars ($45,000,000.00) of such open space and
recreational area bond funds are hereby allocated for grants to the cities and
towns, to be administered by the director of environmental management to be
used:
(1)
to purchase fee simple title or development rights to open spaces, coastal
flood-prone areas and public recreational areas, and
(2)
for the improving and restoration of public recreational areas. Fifty percent (50%) of the aforementioned
sums shall be allocated to the cities and towns in the form of grants in the furtherance
of section 6(b)(1) and shall be equal to seventy five percent (75%) of the cost
of any such purchase of fee simple or development rights. All funds allocated for grants under this
subsection must be obligated for grants no later than three years from the date
of voter approval for the referendum authorized in section 1 of this act. All funds authorized but not obligated on
that date shall revert to the control of the director of environmental
management for use in the furtherance of the purposes contained in section
6(b)(1). Forty percent (40%) of said
funds shall be allocated to the cities and towns in the form of grants in the
furtherance of section 6(b)(2) and shall be equal to fifty percent (50%) of the
cost of any improvements and restoration.
The remaining ten percent (10%) of said funds shall be used to carry out
the provisions of section 6(b)(1) or section 6(b)(2) so as to make it possible
under certain circumstances, including the financial ability of a community, to
fund any such program up to a one hundred percent (100%) grant. The director shall establish guidelines for
the allocation of funds under 6(b).
(c)
Up to fifteen million dollars ($15,000,000.00) of such open space and
recreational area bonds are hereby allocated to the department of environmental
management to be used to purchase fee simple or development rights for the
preservation of open spaces and rehabilitation of state owned recreation
areas. Priority shall be given to
preserving those lands that either service or are accessible to people living
in the more densely populated areas of the state. Not more than five million dollars ($5,000,000.00) of said funds
shall be utilized for the rehabilitation of state owned recreation areas. Said funds shall be utilized to allow
private land trusts to apply for and receive funds equal to seventy-five
percent (75%) of the cost of any purchase.
(d)
Up to five million two hundred dollars ($5,200,000.00) of such open space and
recreational area bonds are hereby allocated for the restoration or
rehabilitation of the following parks which shall be carried out pursuant to
any applicable master plan dealing with the restoration of historic landscape
in order to maintain the landscape architectural integrity of these parks.
(1)
Three million dollars ($3,000,000.00) for the restoration of Roger Williams
Park;
(2)
Two hundred thousand dollars ($200,000) for restoration of Jenks Park in
Central Falls;
(3)
Four hundred thousand dollars ($400,000) for restoration of Slater Park in
Pawtucket;
(4)
Two hundred thousand dollars ($200,000) for rehabilitation of Cold Spring Park
in Woonsocket;
(5)
Eight hundred thousand dollars ($800,000) for rehabilitation of City Park in
the City of Warwick; and
(6)
Two hundred fifty thousand dollars ($250,000) for the rehabilitation of
Carousel Park in East Providence
(7)
Two hundred fifty thousand dollars ($250,000) for the rehabilitation of
Freebody Park and Miantonomi Park in the city of Newport;
(8)
One hundred thousand dollars ($100,000) for the rehabilitation of Wilcox Park
in Westerly.
(e)
Neither the director nor any municipality shall use such open space and
recreational area bond funds to purchase title or development rights to any
property whose natural condition is such that it can not be developed.
(f)
The director shall pay the expense of issue for the open space and recreational
area bonds or notes hereunder from the proceeds thereof.
(g) The state controller is hereby authorized
and directed to draw orders upon the general treasurer for payment out of such
open space and recreational area bond funds of such sum or sums as may be
required from time to time, upon the receipt of properly authenticated vouchers
approved by the director.
SECTION
3. Section 7 of Chapter 434, of the
Public Laws enacted in Article I of 90-H 9751A as amended, and approved on July
12, 1990 is hereby amended to read as follows:
SECTION
7. Proceeds
of capital development program. – The general treasurer
is directed to deposit the proceeds from the sale of such capital development
bonds, exclusive of premiums and accrued interest and net of the
underwriters cost, and cost of bond insurance, in one or more of the
depositories in which the funds of the state may be lawfully kept in such
special accounts (hereinafter cumulatively referred to as “such capital
development bond fund”) appropriately designated for each of such projects set
forth in sections 1 and 2 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
moneys in such capital development fund shall be expended for the purposes
specified in the proposition provided for in sections 1 and 2 hereof under the
direction and supervision of the director of administration (hereinafter
referred to as “said director”); provided, however, with respect to the project
regarding transportation, said director may delegate all of part of the
authority hereunder granted to the director of transportation; said director or
his delegate, as the case may be, shall be vested with all power and authority
necessary or incidental to the purposes of this act, including where
appropriate without limiting the generality of said authority, and only by way
of illustration, 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 pay 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 project set forth in sections 1 and 2
hereof; (c) to pay 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 project set
for in sections 1 and 2 hereof; and (d) to pay for the cost of equipment,
supplies, devices, materials and labor for repair, renovation or conversion of
systems and structures as necessary to implement any project set forth in
sections 1 and 2 hereof; (e) to pay the expense of issue for such 1990 and 1992
capital development program bonds or notes hereunder from the proceeds thereof.
No
more of such moneys in such capital development bond fund shall be expended for
any such project than the total amount appearing next to the description of
such project in the proposition provided for in sections 1 and 2 hereof.
The state controller is authorized and directed
to draw his orders upon the general treasurer for payment out of such capital
development bond fund of such sum or sums as may be required from time to time,
upon receipt by him of properly authenticated vouchers approved by said director
or his delegate as the case may be.
The
powers and authorities granted by this act to said director or his delegate, as
the case may be, shall be in addition to, and not in substitution for, all
other power provided by law.
SECTION
4. Section 7 of Chapter 70, of the
Public Laws enacted in Article VI of
94-H 9326A as amended, and approved on Jun. 22, 1994 is hereby amended to read
as follows:
SECTION
7. Proceeds of capital development program. -- The general treasurer is
directed to deposit the proceeds from the sale of such capital development
bonds, exclusive of premiums and accrued interest and net of the
underwriters cost, and cost of bond insurance, in one or more of the depositories in which the funds of the
state may be lawfully kept in such special accounts (hereinafter cumulatively
referred to as "such capital development bond fund") appropriately
designated for each of such projects set forth in sections 1 and 2 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 such capital development fund shall be expended for the purposes
specified in the propositions provided for in sections 1 and 2 hereof under the
direction and supervision of the director of administration (hereinafter
referred to as "said director") said director or his delegate, as the
case may be, shall be vested with all power and authority necessary or
incidental to the purposes of this act, including where appropriate without
limiting the generality of said authority, and only by way of illustration, 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 pay 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 sections 1
and 2 hereof; (c) to pay 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 sections 1 and 2 hereof; and (d) to pay for the cost of
equipment, supplies, devices, materials and labor for repair, renovation or
conversion of systems and structures as necessary to issue for such 1994 and
1996 capital development program bonds or notes hereunder from the proceeds
thereof.
No
more of such monies in such capital development bond fund shall be expended for
any such project than the total amount appearing next to the description of
such project in the propositions provided for in sections 1 and 2 hereof.
The
state controller is authorized and directed to draw his or her orders upon the
general treasurer for payment out of such capital development bond fund of such
sum or sums as may be required from time to time, upon receipt by him or her of
properly authenticated vouchers approved by said director or his or her
delegate as the case may be.
The
powers and authorities granted by this act to said director or his or her
delegate, as the case may be, shall be in addition to, and not in substitution
for, all other power provided by law.
SECTION
5. Section 6 of Chapter 31, of the
Public Laws enacted in Article 5 of 98-H 8478A as amended, and approved on Jun.
25m 1998, is hereby amended to read as follows:
SECTION
6. Proceeds of capital development program. --
The general treasurer is directed to deposit the proceeds from the sale of such
capital development bonds, exclusive of premiums and accrued interest and
net of the underwriters cost, and cost of bond insurance, in one or more of
the depositories in which the funds of the state may be lawfully kept in such
special accounts (hereinafter cumulatively referred to as "such capital
development bond fund") appropriately designated for each of such 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 such capital development fund shall be expended for the purposes
specified in the propositions provided for in section 1 hereof under the
direction and supervision of the director of administration (hereinafter
referred to as "said director") said director or his delegate, as the
case may be, shall be vested with all power and authority necessary or
incidental to the purposes of this act, including where appropriate without
limiting the generality of said authority, and only by way of illustration, 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 pay 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 pay 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 pay for the cost of equipment, supplies,
devices, materials and labor for repair, renovation or conversion of systems
and structures as necessary for such 1998 capital development program bonds or
notes hereunder from the proceeds thereof.
No
more of such monies in such capital development bond fund shall be expended for
any such project than the total amount appearing next to the description of
such project in the propositions provided for in section 1 hereof.
The
state controller is authorized and directed to draw his or her orders upon the
general treasurer for payment out of such capital development bond fund of such
sum or sums as may be required from time to time, upon receipt by him or her of
properly authenticated vouchers approved by said director or his or her
delegate as the case may be.
The
powers and authorities granted by this act to said director or his or her
delegate, as the case may be, shall be in addition to, and not in substitution
for, all other power provided by law.
SECTION
6. Section 6 of Chapter 55, of the Public Laws enacted in Article 5 of 2000-H
7862A as amended, and approved on Jun. 29, 2000 is hereby amended to read as
follows:
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 and net of the underwriters cost, and cost of bond
insurance, 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 2000 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 described in section
1, the proceeds shall be utilized for the following purposes:
Question
1 relating to bonds for environmental and recreational purposes shall be
allotted as follows:
(a)
Open Space $23,500,000
Provide
funds for the Department of Environmental Management to purchase or otherwise
permanently protect, through the purchase of fee title, development rights,
conservation easements and public recreation easements, greenways and other
open space, agricultural lands, forested lands, state parks, consistent with
the "Greenways, Greenspace" element of the State Guide Plan and the
Department of Environmental Management Land Protection Plan, and for the
purchase of development rights by the Agricultural Land Preservation Commission
to preserve farmland throughout the state, and $1,300,000 for acquisition of
land through the purchase of fee title, development rights, and conservation
easements by the State of Rhode Island Water Resources Board for the protection
of public drinking water supplies. The director of the Department of
Environmental Management shall award up to $11,400,000 to communities and local
land trusts, conservation commissions and other environmental non-profit
organizations to provide matching funds for purposes which include, but are not
limited to acquisitions, easements, and development rights on land consistent
with the State Guide Plan and Local Comprehensive Plans.
(b)
Recreational Development $9,000,000
Provide
funds for the design, development, expansion and renovation of new or existing
public recreational facilities and parks. Up to $3,000,000 of these funds shall
be available for the development and/or renovation of state public recreational
facilities. An amount not to exceed $6,000,000 shall be available to municipalities
to provide grants on a matching basis, which funds shall be allocated as
follows:
(i)
Distressed Community Grants
$1,000,000
(ii)
Recreation Development Grants
$5,000,000
(iii)
Roger Williams Park Restoration $1,500,000
Provide
funds for improvements and renovations at Roger Williams Park.
Question
2 relating to bonds totaling $60,000,000 for projects to improve the state's
water quality shall be deposited by the Rhode Island Clean Water Finance Agency
in one or more of its revolving loan funds which, when leveraged with federal
and state capitalization grants, will provide funding to municipalities,
governmental entities and non-governmental entities for water pollution
abatement projects and drinking water projects. Not less than $70,000,000 in leveraged
funds will be allocated for loans at a subsidized rate of zero percent to the
Narragansett Bay Commission to fund costs associated with combined sewage
overflow projects. Not more than $3,000,000 of the bond proceeds shall be
allocated to the Rhode Island Clean Water Finance Agency to provide state
matching funds to obtain federal capitalization grants available to the state,
enabling the Rhode Island Clean Water Finance Agency to provide subsidized
interest rate loans to community water systems, both privately and publicly
owned, and non-profit non-community water systems for drinking water projects.
The Rhode Island Clean Water Finance Agency will use the remainder of the bond
proceeds to provide loans at a subsidized rate of zero percent to fund water
pollution abatement projects pursuant to chapter 46-12.2 of the Rhode Island
General Laws, including but not limited to, wastewater treatment facilities;
sludge improvement projects; the construction of sewers to relieve areas that
should no longer be served by septic systems; planning/feasibility studies to
support water quality restoration projects including stormwater treatment,
nutrient reduction, and other similar water pollution abatement projects;
restoration of aquatic habitats; and implementation of stormwater treatment and
other nonpoint source water pollution abatement projects.
Question
3 relating to bonds in the amount of $62,510,000 for transportation purposes
shall be allocated as follows: $60,000,000 to match federal highways funds to fund
improvements to the state's highways, roads and bridges, and $2,510,000 to
purchase buses for the Rhode Island Public Transit Authority's fleet.
Question
4 relating to bonds in the amount of $36,950,000 to fund improvements to the
University of Rhode Island, Rhode Island College and the Community College of
Rhode Island shall be allocated as follows:
University
of Rhode Island Residence Halls
$22,000,000
Rhode
Island College Residence Halls
$4,015,000
Community
College of Rhode Island Newport Campus
$10,935,000
Question
5 relating to bonds totaling $25,000,000 for the creation, design,
construction, furnishing, and equipping of the Heritage Harbor Museum. 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 from individuals and other corporations and
foundations, state appropriations, and grants from the City of Providence.
SECTION
7. Section 6 of Chapter 65, of the
Public Laws enacted in Article 6 of 2002-H 7732A as amended, and approved on Jun. 12, 2002 is hereby amended to
read as follows:
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 and net of the underwriters cost, and cost of bond
insurance, 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.
(c)
State Support of Museums and Cultural Art Centers located in historic
structures $3,000,000
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.
(c)
Bus Replacement $1,700,000
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
8. Section 6 of Chapter 595, of the Public Laws enacted in Article 5 of 2004 --
H 8219 as amended, and approved Jun. 30, 2004 is hereby amended as follows:
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 and net of the underwriters cost, and cost of bond
insurance, 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 bond 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 or her designee 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 2004 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 in the amount of $66,520,000 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 highway, roads and bridges.
(b)
Facilities equipment replacement $5,020,000
(c)
Bus replacement $1,500,000
Provide
funds for the Rhode Island Public Transit Authority to purchase new buses or
for rehabilitation of existing buses in the bus fleet.
Question
2 relating to bonds and notes totaling $15,000,000 shall be allocated to the construction,
renovation, and rehabilitation of the state’s regional career and technical
schools.
Question
3 relating to bonds in the amount of $50,000,000 shall be allocated to provide
$20,000,000 to construct, renovate and rehabilitate residence halls at the
University of Rhode Island and $30,000,000 to construct a new residence hall at
Rhode Island College.
Subject
to any pledge of housing revenues derived by the Board of Governors for Higher
Education from residence halls at Rhode Island College, the college shall, to
the extent of any available funds, reimburse the state for debt service paid by
the state on the bonds issued pursuant to this act.
Question
4 relating to bonds in the amount of $12,300,000 shall be allocated to restore
the historic Cranston Street Armory facility for use as an a archives and
records center and make space available for either office or educational use,
provided that the bonds may not be issued until the Governor has submitted
detailed expenditure plans and cost estimates to the General Assembly, and
provided further that the General Assembly has reviewed the plans and cost
estimates and passed a joint resolution approving the issuance.
Question
5 relating to bonds in the amount of $10,000,000 shall be allocated as follows:
(a)
Emergency water interconnect $5,000,000
Provide
funds for the Water Resources Board to fund matching grants to local water
suppliers to develop interconnections between and among water systems to be
used in the event of an emergency.
(b)
Shad Factory Pipeline $5,000,000
Provide
funds for the Water Resources Board to make necessary repairs to the Shad
Factory Pipeline to ensure continuation of the state’s rights to water from two
reservoirs located in Massachusetts.
Question
6 relating to bonds in the amount of $70,000,000 shall be allocated as follows:
(a)
Narragansett Bay and Watershed Restoration
$19,000,000
Provide
$8.5 million for activities to restore and protect the water quality, and
enhance the economic viability and environmental sustainability of Narragansett
Bay and the state’s watersheds. Eligible activities shall include, but not be
limited to: nonpoint pollution source abatement, including stormwater
management; nutrient loading abatement; commercial, industrial and agricultural
pollution abatement; and, riparian buffer and watershed ecosystem restoration.
Provide $10.5 million funding for the Rhode Island Clean Water Finance Agency
which will be leveraged to provide loans to municipalities and governmental
entities for the design, construction, repair, equipping and upgrading of
wastewater treatment facilities to implement nutrient reduction projects
impacting Narragansett Bay and the State’s Watersheds.
(b)
Open Space and Recreational Development $43,000,000
Provide
funds for open space land acquisition farmland preservation, and recreational
development to be allocated as follows: $25,000,000 would be used by the
Department of Environmental Management to purchase or otherwise permanently
protect through the purchase of fee title, development rights, conservation
easements and public recreation easements, greenways and other open space,
recreation lands, agriculture lands, forested lands and state parks. An amount
not to exceed $10,000,000 of these funds shall be available to municipalities
local land trusts, conservation commissions, and other environmental nonprofit
organizations to provide grants on a matching basis for open space preservation
consistent with the state guide plan and local comprehensive plan.
$18,000,000
would be used for the design, development, expansion and renovation of new or
existing public recreations facilities and parks. $8,000,000 of these funds
shall be available for the development or renovation of state public
recreational facilities including $3,000,000 for restoration of Fort Adams.
The
remaining $10,000,000 includes $4,000,000 for Roger Williams Park and Zoo.,
$4,000,000 for municipalities to
provide grants on a matching basis for other municipal parks, and $2,000,000
for municipalities to provide grants on a matching basis for recreation
development grants.
(c)
Groundwater Protection/Land Acquisition $8,000,000
Provide
funds for use by the Rhode Island Water Resources Board for acquisition of land
through the purchase of fee title, development rights, and conservation
easements for groundwater protection and protection of public drinking water
supplies.
Question
7 relating to bonds and notes totaling $14,000,000 shall be allocated to the
construction and renovation of the University of Rhode Island Pell Library and
Oceanographic Information Center.
Question
8 relating to bonds and notes totaling $6,700,000 shall be allocated to the
construction of the Athletic Performance Center and the renovation of
facilities at Meade Stadium and Keaney Gymnasium at the University of Rhode
Island.
Question
9 relating to bonds in the amount of $3,000,000 shall be allocated to the
Historical Preservation and Heritage Commission to fund capital preservation
for renovation projects for public and nonprofit historic sites, museums and
cultural art centers located in historic structures in the State of Rhode
Island.
Question
10 relating to bonds in the amount of $46,500,000 shall be allocated to provide
funds to begin to purchase, build or modify state facilities for state agency
use to reduce the state’s reliance on leased space and for the State
Information Operations Center to meet the state’s growing technology needs,
provided that the bonds may not be issued until the Governor has submitted
detailed expenditure plans and cost estimates to the General Assembly, and
provided further that the General Assembly has reviewed the plans and cost
estimates and passed a joint resolution approving the issuance of all or a
portion of the bonds.
Question
11 relating to bonds and notes totaling $50,000,000 shall be allocated to the
construction of the University of Rhode Island Center for Biotechnology and
Life Sciences.
Question
12 relating to bonds and notes totaling $48,000,000 shall be allocated to road
and utility infrastructure, building demolition, site preparation, and pier
rehabilitation at the Quonset Point/Davisville Industrial Park.
SECTION
9. This article shall take effect on
July 1, 2007.
ARTICLE 7 SUBSTITUTE A AS AMENDED
RELATING TO DEBT MANAGEMENT ACT JOINT
RESOLUTIONS
SECTION 1. This article shall serve as joint
resolutions required pursuant to Rhode Island General Laws 35-18-1, et seq.
SECTION 2. Neighborhood
Opportunities Program
WHEREAS, The state of
Rhode Island has a significant need for affordable housing; and
WHEREAS, These
projects will increase the amount of affordable housing and transitional
housing service available in the state to its citizens; and
WHEREAS, The state
developed and utilized a program in fiscal year 2002 that would allow the
Neighborhood Opportunities Program to be financed through bonds issued by the
Rhode Island Housing and Mortgage Finance Corporation, insured, secured, or
otherwise credit-enhanced or purchased by a major financial institution, to be
repaid by the state (the "Financing"); and
WHEREAS, This financing proposal is a prudent funding
mechanism that provides replacement funding for these housing programs and an
additional $7,500,000 for the Neighborhood Opportunities Program in fiscal year
2007; and
WHEREAS, $7,500,000 of
funding for the Neighborhood Opportunities Program could result in creation of
over 200 units of affordable housing; and
WHEREAS, The Rhode
island Public Corporation Debt Management Act (R.I. General Laws section
35-18-1, et seq.) 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; and
WHEREAS, This act shall serve as the concurrent
resolution of approval required by the Rhode Island Public Corporation Debt
Management Act (R.I. General Laws section 35-18-1 et seq.); and
WHEREAS, The project
costs associated with the Neighborhood Opportunities Program are estimated to
be $7,500,000 in fiscal year 2007. The total financing obligation of the state
of Rhode Island would be approximately $8.9 million, with $7.5 million
deposited in the construction fund provided that up to $0.06 million be made
available to pay the associated costs of financing if required. Total payments
on the state's obligation over six (6) years on the $7.5 million issuance are
projected to be $8.9 million, assuming an average effective interest rate of
5.0%. The payments would be financed within the Department of Administration
from general revenue appropriations; now, therefore be it
RESOLVED, That
providing affordable housing and transitional housing services to the state's
population is a priority of this general assembly; and be it further
RESOLVED, That this
general assembly hereby authorizes the Governor, the director of the department
of administration or 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
financing in an amount not to exceed $8.9 million for the provision of funds
for the Neighborhood Opportunities Program in fiscal year 2007 limited to the
purpose of providing housing rental units; and be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon passage by the general
assembly.
SECTION 3. Department
of Administration Vehicle Lease Purchase.
WHEREAS, the state of Rhode Island finds that it is
cost-effective to use the state’s tax-exempt borrowing capacity to finance
vehicles, trucks and heavy equipment; and
WHEREAS, the state of
Rhode Island finds that it is cost-effective when such borrowings are
consolidated into one borrowing package rather than executed on an individual
basis with financing companies; and
WHEREAS, the Rhode
Island Public Corporation Debt Management Act (R.I. General Laws Section
35-18-1, et seq) requires the general assembly to provide its consent to the
issuance of debt incurring by the state of Rhode Island and other public
agencies of certain obligations; and
WHEREAS, this
methodology has been approved in past years by the general assembly; and
WHEREAS, the state of
Rhode Island Department of Administration desires to enter into financing
agreements to finance the purchase of thirty (30) State Police Trooper vehicles
and associated equipment, heavy equipment for the Department of Transportation,
and other replacement vehicles for various state agencies, as required; and
WHEREAS, the
Department of Administration estimates that the total issuance for vehicles and
equipment will not exceed $10.5 million, with $10,450,000 deposited in the
vehicle replacement fund and $50,000 available to pay the associated costs of
financing. Total lease payments over a period of three (3) years for State
Police and other vehicles and ten (10) years for transportation heavy equipment
are projected to be $10,245,800, assuming an average coupon of 4.0 percent. The
lease payments would be financed within the various general revenue, federal,
restricted, and other fund appropriations available to the respective
departments; now, therefore, be it
RESOLVED, That it is
cost-effective when such borrowings are consolidated into one borrowing
package; and be it further
RESOLVED, That this
general assembly hereby approves financing in an amount not to exceed
$10,500,000 for the purchase of vehicles, heavy equipment and trucks during
fiscal year 2007; and be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by this General
Assembly.
SECTION 4. Information
Technology Improvements.
WHEREAS, The computer
systems that currently support the Division of Motor Vehicles are outdated and
put the operations of the driver licenses and registrations systems at risk of
operation; and
WHEREAS, The
enterprise infrastructure of the state’s wide and local area networks need
upgrades to protect them from cyber security attack; and
WHEREAS, An integrated
professional licensing software platform would increase the regulatory compliance
of licensees and increase access and convenience to the public of licensing
rules, regulations, and application processing; and
WHEREAS, Public
education would benefit from outfitting teachers with skills in the use of
information systems; and
WHEREAS, The state would benefit from a
taxation database to enhance tax policy analysis, audits and tax collections;
and
WHEREAS, The court
system requires timely and integrated data systems capable of interacting with
other state systems; and
WHEREAS, the project
costs associated with the Innovative Technology Initiative is $49.3 million. The total financing obligation of the State of Rhode Island would
be approximately $49.9 million, with $49.3 million deposited in the
construction fund, and $0.6 million available to pay the associated costs of
financing. Total payments on the
State’s obligation over ten (10) years on the $49.3 million issuance are
projected to be $63.1 million, assuming an average effective interest rate of
4.5%. The payments would be financed
within the Department of Administration from general revenue appropriations and
Division of Motor Vehicles transaction fees; now, therefore be it
RESOLVED, That this
General Assembly hereby approves financing in an amount not to exceed $37.0 million
for the provision of funds for Innovative Technology including $0.5 million to
pay costs of financing; provided, that $3,900,000 be made available from the
construction fund for the enterprise infrastructure of the state' s wide and
local area network ; and provided, further, that $1,010,234 be made available
from the construction fund for an integrated professional licensing software
platform; and provided, further, that $15,195,154 million be made available
from the construction fund for
comprehensive education information systems in the department of elementary and
secondary education; and provided, further, that $2,500,000 be available from
the construction fund to develop a taxation data base; and provided, further,
that $13,900,000 be available from the construction fund to develop integrated
data systems for the judiciary; and be it further
RESOLVED, That the
General Assembly hereby approves financing in an amount not to exceed
$13,000,000 to develop computer systems to
support the division of motor
vehicles, including $12,795,000 for the project and $205,000 for associated
cost of financing; provided that costs of financing would be borne by a
surcharge on all transactions over the ten year period; and provided further
that the department of administration shall develop and adopt by rule and
regulation pursuant to this section that surcharge and structure not to exceed
seven (7) years and that all revenues from that surcharge be used exclusively
for the payment of the principal, interest, and issuance costs associated with the $13,000,000 cost of the system; and
be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by the general
assembly.
SECTION 5. School
for the Deaf
WHEREAS The State
currently lacks the appropriate facility with furnishings, and equipment to
educate and serve the deaf population; and
WHEREAS, The General
Assembly funded a study in the FY 2006 budget to determine the cost of a new
facility, and
WHEREAS, The study
revealed that a new facility would cost approximately $31.16 million; and
WHEREAS, There is
state-owned property in Lincoln, Rhode Island which is suitable for the
facility; and
WHEREAS, The project
costs associated with constructing and equipping a new School for the Deaf are
estimated to be $31.16 million. The
total financing obligation of the State of Rhode Island would be approximately
$31.25 million, with $31.16 million deposited in the construction fund, and
$90,000 available to pay the associated costs of financing. Total payments on the State’s obligation
over twenty (20) years on the $31.25 million issuance are projected to be $49.6
million, assuming an average effective interest rate of 5.0%. The payments would be financed within the
Department of Administration from general revenue appropriations; now,
therefore, be it
RESOLVED, That a new
School for the Deaf is needed to provide an environment conducive to learning;
and be it further
RESOLVED, That this
General Assembly hereby approves financing in an amount not to exceed $31.25
million for the construction of a new School for the Deaf; and be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by this General
Assembly.
SECTION 6. Urban
Revitalization Program
WHEREAS, The Rhode
Island Economic Development Corporation (the "Corporation") is a
public instrumentality of the State of Rhode Island (the "State"),
created by the General Assembly pursuant to Rhode Island General Laws Section
42-64-4 et seq. (as enacted, reenacted, and amended, the ("Act"); and
WHEREAS, The general
assembly finds that small businesses are the backbone of the Rhode Island
economy and that the 24,000 small businesses in Rhode Island are responsible
for 196,000 jobs, $16.8 billion in gross state product, and $41.5 million in
state tax revenues; and
WHEREAS, Finding good
locations for small business growth in urban communities is difficult and is
often a serious impediment to the growth of minority and women owned small
businesses; and
WHEREAS, The
Corporation currently has a number of programs that provide assistance to small
businesses to gain access to capital, but that in some cases these programs do
not meet the needs of those urban minority and women owned small businesses and
the communities they serve and are not of a large enough scale to address the
problems and opportunities presented by the nearly 11,000 vacant properties in
Rhode Island's core cities; and
WHEREAS, Stimulating
the redevelopment and revitalization of commercial and mixed use properties in
urban communities is a critical component of the states job creation strategy
and compliments the investments that the state and other organizations are
making in affordable housing, education, adult literacy, job training, and
social series in these communities; and
WHEREAS, The Urban
Revitalization Fund of Rhode Island, a nonprofit Rhode Island based Community
Development Financial Institution as certified by the United States Treasury
Department has the ability to leverage
private sector funds and deliver financial products to for-profit and
not-for-profit developers in order to stimulate positive urban economic growth;
and
WHEREAS, The act also
provides that the Corporation shall have the power to purchase, take, receive,
lease, or otherwise acquire, own, hold, improve, use, and otherwise deal in and
with, real or personal property, or any interest therein, wherever situated; to
sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise
dispose of all or any part of its property and assets for any consideration and
upon any terms and conditions as the corporation shall determine; to lend money
for its purposes, invest and reinvest its funds, and at its option to take and
hold real and personal property at security for the payment of funds so loaned
or invested; to acquire or contract to acquire, from any person, firm,
corporation, municipality, the federal government, or the state, or any agency
of either the federal government or the state, by grant, purchase, lease, gift,
condemnation, or otherwise, or to obtain options for the acquisition of any
property, real or personal, improved or unimproved, and interests in land less
than the fee thereof; and to own, hold, clear, improve, develop, and
rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage,
or otherwise dispose or encumber that property for the purposes of carrying out
the provisions and intent of this chapter, for any consideration as the
corporation shall determine; and to be a promoter, partner, member, associate,
or manager of any partnership, enterprise, or venture; and
WHEREAS, The act
authorizes the Corporation to make contracts and guarantees and incur
liabilities, borrow money at any rates of interest as the corporation may
determine; to make and execute agreements of lease, conditional sales
contracts, installment sales contracts, loan agreements, mortgages,
construction contracts, operation contracts, and other contracts and instruments
necessary or convenient in the exercise of the powers and functions of the
corporation; and
WHEREAS, Pursuant to
Rhode Island general laws sections 35-18-3 and 35-18-4, the Corporation hereby
requests the approval of the general assembly of the Corporation's issuance of
not more than $2,000,000 Rhode Island Economic Development Corporation
Guarantees (the "Obligations") for the purpose of supporting
commercial revitalization projects in urban areas; and
WHEREAS, The financing
of the program will be accomplished through issuance of guarantees by the
Corporation; and
WHEREAS, The
Corporation will make up to $2,000,000 in guarantees available to or on behalf
of The Urban Revitalization Fund of Rhode Island; and
WHEREAS, The Urban
Revitalization Fund intends to initiate a program to utilize the guarantee in
order to make loans at a three and one-half percent (3.5%) weighted average
interest rate with thirty-six (36) month maximum terms; and
WHEREAS, The program
will directly benefit the state; and
WHEREAS, The total
obligations related to the program are anticipated to be $2,000,000; now,
therefore be it
RESOLVED, That this
general assembly finds that the program is a project of a type and nature
consistent with the purposes and within the powers of the Corporation to
undertake, and hereby approves the Corporation's issuance of not more than
$2,000,000 in guarantees to or on behalf of The Urban Revitalization Fund of
Rhode Island in order to secure a line of credit to fund loans for urban
revitalization projects and that may not be used for overhead; and be it
further
RESOLVED, That these
funds are to be used strictly to secure a line of credit to fund guarantees of
loans for urban revitalization projects, which guarantees may be of principal
and capital interest related to such loans, but shall not be used for overhead
other than a fee to The Urban Revitalization Fund of no more than one percent
(1%) of any loan made; and be it further
RESOLVED, That the
program shall allow The Urban Revitalization Fund to use the secured line of
credit to secure guarantees of loans to individual companies in lesser amounts,
provided that no guarantee made by The Urban Revitalization Fund under this
program shall have a term in excess of ten (10) years and the maximum value of
any guarantee conveyed under the authority of the program shall not exceed
twenty five percent (25%) of the total loan amount; and further, The Urban
Revitalization Fund shall not issue any guarantee after the tenth (10th)
anniversary of the effective date of this act; however, payments may, if
necessary and within the limits of the maximum annual and programmatic
guarantee amounts, be made after such term has expired if a claim arising from
nonpayment was made within the approved ten (10) year term; and be it further
RESOLVED, That the
Rhode Island Economic Development Corporation will approve and enter into a
contract with The Urban Revitalization Fund, and such contract will include
such terms as the Rhode Island Economic Development Corporation deems reasonable
and necessary for the administration and monitoring of the program in order to
protect the fiscal and policy interests of the state, to assure compliance with
the terms of this authorization, and to track the impact of the program, and
shall limit the issuance of loan guarantees to seven hundred thousand dollars
($700,000) in any one year period; and further shall not include for the
payment of any fees to the Corporation for the issuance of the guarantee; and
be it further
RESOLVED, That The
Urban Revitalization Fund shall provide the Corporation with the name of any
borrower receiving the benefit of the guarantee program and the Corporation
shall not approve any other incentives for the benefit of the borrower during
the term of the loan guarantee, including, but not limited to, approvals under
section 42-64-20 for "project status"; and be it further
RESOLVED, That the obligations will be special
obligations of the Corporation payable from funds received by the Corporation
upon request to the state as may be required from time to time; and be it
further
RESOLVED, That the
General Assembly shall appropriate the amount of fifty thousand dollars
($50,000) to the Corporation for the purposes of establishing a capital reserve
fund pursuant to section 42-64-18, which amount shall be deemed the minimum
capital reserve fund requirement pursuant to that section; on or before
December first of each year, the Corporation shall make and deliver to the
governor a certificate stating the sum, if any, required to restore the capital
reserve fund to the minimum capital reserve fund requirement for the fund.
During each January session of the general assembly, the governor shall submit
to the general assembly as part of the governor's budget, the amount, if any,
required to restore the capital reserve fund to the minimum capital reserve
fund requirement for the fund. All sums appropriated by the general assembly
for this purpose, and paid to the corporation, if any, shall be deposited by
the corporation in the applicable capital reserve fund. The maximum fiscal year
obligation of the Corporation and the state is $2,000,000 and the likely
maximum fiscal year obligation is $356,934; and be it further
RESOLVED, That the
obligation will not constitute indebtedness of the state or any of its
subdivisions or a debt for which the full faith and credit of the state or any
of its subdivisions is pledged except to the extent that the same replenishes
the capital reserve fund, subject to annual budget appropriations; and be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by this general
assembly and shall act to repeal the prior resolution of the general assembly
found at 2005 Public Laws Chapter 117, Article 6, Section 12; provided, that
the creation or issuance of any guarantee by the Corporation shall be not later
than twelve (12) months from the date of such passage and any initial claims
upon such guarantees shall be made no later than ten (10) years from the date
of such creation or issuance.
SECTION 7. Energy
Service Companies - Equipment Replacement.
WHEREAS, in FY 2005
Rhode Island state government expended approximately $38.0 million on energy
utilities for state-owned facilities; and
WHEREAS, energy prices
increased significantly during FY 2006 and are expected to continue to rise in
FY 2007; and
WHEREAS, the State of
Rhode Island owns in excess of two hundred (200) buildings with boilers,
heating systems, air conditioning systems, lighting and control systems many of
which are antiquated, inefficient, and are expensive to maintain; and
WHEREAS, Various
private sector companies, hereinafter referred to as energy service companies
are willing to guarantee energy savings to pay for the cost of the replacement
of these antiquated and inefficient boilers, heating and air conditioning,
lighting and other building systems and equipment; and
WHEREAS, several state
agencies are seeking to retain energy service companies to undertake energy
service contracts; and
WHEREAS, State facilities/agencies
seeking to undertake energy savings contracts to replace old and obsolete
equipment that would be normally be done through the capital budget process and
the estimated costs of such contracts include:
Department of
Administration not to exceed $6.0 million;
University of Rhode
Island not to exceed $18.1 million;
Rhode Island College
not to exceed $7.5 million;
Rhode Island Airport
Corporation not to exceed $5.0 million;
now, therefore, be it
RESOLVED, That the
State of Rhode Island is authorized to proceed with the aforementioned projects
in the amounts specified above, exclusive of financing and servicing costs; and
be it further
RESOLVED, That these
contracts will be structured so that, at a minimum, the annual principal,
interest and service and maintenance costs resulting from these contracts would
be completely offset by the annual energy savings guaranteed by the energy
service companies; and be it further
RESOLVED, That these
contracts would be multi-year contracts of up to a term of eighteen years. In addition to saving energy and helping to
protect the state from future energy cost increases, these contracts would aide
in reducing maintenance costs by providing new equipment and replacing older
energy consuming systems; and be it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by this General
Assembly.
SECTION 8. University of Rhode Island Land Parcel
WHEREAS, The
University of Rhode Island is proposing a project which involves the purchase
of a 114 acre parcel of undeveloped land located immediately north of the
University's developed Kingston Campus property; and
WHEREAS, The parcel is
bound on all sides by University land holdings; to the west by Plains Road and
123 acres of University land, to the north by a 128 acre undeveloped parcel
also owned by the University and to the east by another 11 acre University
parcel; and
WHEREAS, The purchase
of this parcel enables contiguous ownership of a large land area north and west
of the Kingston Campus; and
WHEREAS, The
acquisition of this privately held parcel is of potential importance to the
future of the University and Campus development; and
WHEREAS, The parcel is
presently being appraised to determine its value; and
WHEREAS, The
University will make payments totaling not greater than one million four
hundred and ninety-five thousand dollars ($1,495,000) to purchase the property
through an installment purchase agreement with an expected term of eight (8)
years; and
WHEREAS, The annual
payments will be supported by the University general revenues; and
RESOLVED, That the
total amount of the installment purchase payments shall be limited to not more
than $1,495,000 and payments of not more than $140,000 will be made in five of
the years and not more than $265,000 will be made in three years of the eight
year term; and be it further
RESOLVED, That this
Joint Resolution shall take effect upon passage by this general assembly.
SECTION 9. Student Athlete Development Center
WHEREAS, The University of Rhode Island is proposing
a project which involves the construction of a Student Athlete Development
Center located adjacent to and part of the Keaney Gymnasium and Tootell Center
at the University of Rhode Island's Kingston Campus; and
WHEREAS, The project
will involve the construction of the Center and the renovation to portions of
Keaney Gymnasium and Tootell Center that will be utilized in support of the
Center; and
WHEREAS, The student
athlete development facilities that currently support University of Rhode
Island student athletes are outdated, inadequate, and in disrepair; and
WHEREAS, The
infrastructure of the University is critical to the success of student athletes
and the University; and
WHEREAS, Funding for
this project will be financed through Rhode Island Health and Educational
Building Corporation revenue bonds; and
WHEREAS, The project
costs are estimated to be $7,000,000. The total financing obligation of the
University would be approximately $7,210,000, with $7,000,000 deposited in the
construction fund, and $210,000 available to pay the associated costs of
financing. Total payments on the University's obligation over twenty (20) years
on the $7,210,000 issuance are projected to be $11,200,000, assuming an average
interest rate of 4.75 percent; and
WHEREAS, Debt service
payments would be supported by University general revenues; now, therefore be
it
RESOLVED, That this
General Assembly hereby approved financing in an amount not to exceed
$7,210,000 for the construction of a Student Athlete Development Center; and be
it further
RESOLVED, That this
Joint Resolution shall take effect immediately upon its passage by this General
Assembly.
SECTION 10. Healthcare Information Exchange
WHEREAS, A statewide health
information exchange would improve the quality, safety, and value of healthcare
in the state and allow patients and providers to have their healthcare
information when and where they need it by facilitating the exchange of medical
information; and
WHEREAS, The total
project costs associated with the Healthcare Information Exchange are estimated
to be $20 million; and
WHEREAS, There are
significant benefits to numerous participants in the healthcare industry in
Rhode Island; and
WHEREAS, The financing
for this project could be provided by the Rhode Island Health and Educational
Building Corporation or another quasi-public agency through the issuance of
revenue bonds to a Regional Health Information Organization to be repaid
through subscriber charges; and
WHEREAS, This Regional
Health Information Organization would be determined by the department of administration following an open
bid process and would among other things provide
administrative and financial services, operational support; and
WHEREAS, The total
financing obligation of the State of Rhode Island for a $20 million health
information exchange would be approximately $6.0 million, with $5.9 million
deposited in the construction fund, and $0.1 million available to pay the
associated costs of financing. Total payments on the state's obligation over
ten (10) years on the $6.0 million issuance are projected to be $8.0 million,
assuming an average effective interest rate of 5.5%. The payments for the
state's share would be financed by various state departments subscribing to the
system from general revenue appropriations, federal and any other sources which
might be available; now, therefore be it
RESOLVED, That this
General Assembly hereby authorizes the Department of Administration and the
Department of Human Services to commit to financing their shares of the initial
capitalization and operations of a Health Information Exchange;
Provided all Rhode Island domiciled insurers (for both their
insured and self-insured plans for Rhode Island residents administered by them
or their affiliates), Medicare, and Medicaid participants participate in the
same capitalization and operations using a common participation formula in
which the state of Rhode Island is a party only to the extent of its Medicaid
and state employee and retired employee health plans; and
Provided further that each participants' share shall be its
covered Rhode Island population divided by the total covered Rhode Island
population of all participants or some like formula; and
Provided, further that
the annual costs of the State of Rhode Island share shall be incorporation into
the operating budgets of the respective departments to be approved by the
general assembly; now, therefore be it
RESOLVED, That the
general assembly approves financing in an amount not to exceed $6.0 million
plus interest for the provision of funds for the State of Rhode Island's share
of the capital costs associated with the Healthcare Information Exchange and
authorizes subscription charges to be paid to include the debt service and the
operational costs based upon the state's share of the project; and be it
further
RESOLVED, That this Joint Resolution shall take effect upon signed
agreements between the Regional Health Information Organization and all Rhode
Island domiciled insurers, Medicare, and sixty days after submission of those
agreements to the Chairperson of the House Finance Committee and the Senate
Finance committee and their respective fiscal advisors.
SECTION 11. Masonic Temple
WHEREAS, The Rhode
Island Economic Development Corporation (the "Corporation") entered
into that certain Ground Lease dated December 20, 2002 (the "Ground
Lease") by and between the Corporation and Masonic Hotel Developer, LLC
(the "Developer") pursuant to which the Developer is restoring,
rehabilitating, redeveloping and preserving the historic Masonic Temple
structure (the "Masonic Temple") in order for it to be utilized as a
hotel and hospitality center; and
WHEREAS, The Developer
will invest in excess of $70,000,000 in the Masonic Temple to facilitate such
restoration and reuse of the Masonic Temple; and
WHEREAS, The Developer
also has invested in the Veterans Memorial Auditorium located adjacent to the
Masonic Temple and has cooperated with and donated funds to the Veterans Memorial
Auditorium Foundation with respect to the coordinated restoration and
rehabilitation of the Veterans Memorial Auditorium in conjunction with the
restoration and reuse of the Masonic Temple; and
WHEREAS, The General
Assembly finds that the State of Rhode Island tax credits earned pursuant to
R.I.G.L. section 44-33.2-1 et seq. (historic structures – tax credits) (the
"Historic Tax Credits") have had and continue to have the desired
effect of stimulating, promoting and encouraging the redevelopment and reuse of
historic structures by modern commercial, residential and manufacturing
enterprises in order to foster civic beauty, promote public education, pleasure
and welfare and otherwise generally improve and enhance the economic well being
of the citizens of the State of Rhode Island;
WHEREAS, It is
anticipated that the Historic Tax Credits with respect to the Masonic Temple
will be sold, transferred and conveyed in a manner that results in market
conditions causing the user of the Historic Tax Credits to obtain such Historic
Tax Credits for an amount that is less than the face amount of the credits; and
WHEREAS,
Notwithstanding the fact that the Historic Tax Credits when they are sold, will
be acquired by the ultimate users of the credits for an amount that is less
than the face amount of the credits, the State of Rhode Island still is
obligated to honor the Historic Tax Credits at the full face amount of the
credits and is obligated to allow the ultimate users to reduce their tax
liabilities to the State of Rhode Island by the full face amount of the
credits; and
WHEREAS, The Developer
and the Corporation desire to amend the Ground Lease to provide that
Corporation may invest in the Developer, or any affiliate, subsidiary,
successor, or related entity in order for the Corporation to control the
utilization of the Historic Tax Credits with respect to the Masonic Temple
thereby resulting in a savings to the State of Rhode Island; and
WHEREAS, The Developer
will be entitled to Historic Tax Credits related to the Masonic Temple in an
amount equal to no less than $24,000,000; and
WHEREAS, The Developer
has offered to contribute and convey control of the rights to the Historic Tax
Credits related to the Masonic Temple to an entity that would be controlled by
the Corporation in exchange for the Corporation investing $14,000,000 in the
Developer or an entity affiliated with it; and
WHEREAS, The
Corporation would borrow such $14,000,000 plus costs on or about March 2007 at
rates not to exceed the national average Prime Rate of interest as set forth
from to time in the Wall Street Journal, with a term of repayment of not more
than three (3) years; and
WHEREAS, By way of
example, if the Corporation borrowed $14,000,000 to invest in the Developer as
its affiliate, subsidiary, successor or related entity plus $280,000 of
borrowing and transactional costs at a rate per annum of 7% for a term of 3
years with annual payments of amortized principal plus interest, the total cost
of the borrowing and investment would be $16,324,350; and
WHEREAS, In
furtherance of said example, if the Corporation invested in Developer, its
affiliate, subsidiary or successor in a manner that results in control of the
utilization of the Historic Tax Credits related to the Masonic Temple of $24,000,000
in value, then the State of Rhode Island would save the difference between
$24,000,000 minus $16,324,350 minus fees that otherwise would be paid to
utilize the Historic Tax Credits ($2,400,000), resulting in a net savings to
the State of $5,275,560; and
WHEREAS, Pursuant to
R.I.G.L. section 35-18-1 et seq., the Corporation hereby requests the approval
of the General Assembly of the Corporation's borrowing of up to $14,280,000 at
an amortized rate not to exceed the Prime Rate for a term not to exceed three
(3) years (the "Obligations") for the purpose of supporting
investment by the Corporation in the Developer or any affiliate, subsidiary,
successor, or related party that would allow the Corporation to control the
rights to the Historic Tax Credits with respect to the Masonic Temple.
NOW, THEREFORE, be it
resolved as follows:
RESOLVED, That the
Corporation, in conjunction with the amendment to the Ground Lease, is
authorized to enter into the Obligations for an amount not to exceed
$14,280,000 at a rate per year not to exceed the national average Prime Rate as
published from time to time in the Wall Street Journal, for a term not to
exceed three (3) years in the form of borrowings, lines of credit, direct
loans, notes, bonds or other cost effective means of incurring the Obligations,
with transactional costs (including, but not limited to bank or other borrowing
charges, other than interest, fees, charges, costs and legal fees) not to
exceed two percent (2%) of the Obligations, in order to facilitate the
Corporation acquiring an interest in the Developer or its affiliate,
subsidiary, or other related entity, such that the control of the Historic Tax
Credits related to the Masonic Temple shall be under the control and authority
of the Corporation.
RESOLVED, That the
utilization of the Obligations to invest in the Developer or any subsidiary,
successor, or affiliate thereof shall allow the Corporation to acquire control
over the Historic Tax Credits relating to the Masonic Temple which otherwise
could have reduced the tax revenue available to the State of Rhode Island by an
amount equal to no less than $24,000,000; and
RESOLVED, The
Corporation shall request the Governor to include in each of the fiscal years
following the undertaking by the Corporation of the Obligations an amount equal
to the debt service of the Obligations pursuant to the terms set forth in these
Resolutions and the General Assembly shall appropriate to the Corporation
amounts sufficient to satisfy the debt service of the Obligations.
SECTION 12. This
article shall take effect upon passage.
ARTICLE 8 SUBSTITUTE A
Relating To Motor Vehicle Emissions
Inspection Fees
SECTION 1. Section 31-47.1-11
of the General Laws in Chapter 31-47.1 entitled “Motor Vehicle Emissions
Inspection Program” is hereby amended to read as follows:
31-47.1-11. Fees. – (a) A fee of forty-seven dollars
($47.00) is to be charged for each motor vehicle inspected. The amount of fees
collected shall provide for the cost of the inspection, the costs of
administering the motor vehicle emissions inspection program and other costs
provided by law. The fee must be paid for each motor vehicle inspected at an
emissions inspection station at the time of the inspection and is payable
whether a compliance certificate, waiver certificate, or no certificate is
issued. There shall be no fee charged for one reinspection of a vehicle that
failed an initial inspection when the reinspection is conducted at the AIRS
that conducted the initial inspection.
Of the forty-seven
dollars ($47.00) fee, eighteen dollars ($18.00) shall be retained by the
inspection station owner to cover the costs of performing the inspection. The
remaining twenty-nine dollars ($29.00) shall be remitted to the program
manager. The program manager shall retain thirteen dollars ($13.00) no
more than ten dollars ($10.00) of the fee and remit the remaining
sixteen dollars ($16.00) no less than nineteen dollars ($19.00) for
deposit in the state general fund. The general assembly shall annually
appropriate such sums as may be required to cover the costs of administering
the program by the division of motor vehicles and the department of
environmental management.
(b) The general
assembly shall on or before June 30th of each calendar year review the costs
and fees associated with the program with the goal of eliminating all fees
being directed to the general fund and to eliminate all costs and fees not
directly related and necessary to pay the costs of administering the motor
vehicle emission inspection program as required under 40 CFR 51.354(a).
SECTION 2. This
article shall take effect on January 1, 2007.
ARTICLE 9 SUBSTITUTE A
RELATING TO PHARMACEUTICAL ASSISTANCE TO
THE ELDERLY
SECTION 1. Sections
42-66.2-3 and 42-66.2-6 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) "Eligible drugs" means
insulin, injectable drugs for multiple sclerosis, 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. 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" means
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 this subdivision. 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.
(9) "Pilot program contractor"
means Blue Cross and Blue Shield of Rhode Island.
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.
(c) Program criteria. - The program includes
the following criteria:
(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 allowed 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.
(h) Expenditures for multiple sclerosis
drugs shall not exceed thirty thousand dollars ($30,000.00).
SECTION 2.
This article shall take effect on July 1, 2006.
ARTICLE 10 SUBSTITUTE A
Relating To SUBMIT TO CHEMICAL TEST
SECTION
1. Section 31-27-2 of the General Laws in Chapter 31-27 entitled “Motor and
Other vehicles” is hereby amended to read as follows:
31-27-2.1. Refusal to submit to chemical test. – (a) Any person who operates
a motor vehicle within this state shall be deemed to have given his or her
consent to chemical tests of his or her breath, blood, and/or urine for the
purpose of determining the chemical content of his or her body fluids or
breath. No more than two (2) complete tests, one for the presence of
intoxicating liquor and one for the presence of toluene or any controlled
substance, as defined in § 21-28-1.02(7), shall be administered at the
direction of a law enforcement officer having reasonable grounds to believe the
person to have been driving a motor vehicle within this state while under the
influence of intoxicating liquor, toluene, or any controlled substance, as
defined in chapter 28 of title 21, or any combination of these. The director of
the department of health is empowered to make and file with the secretary of
state, regulations which prescribe the techniques and methods of chemical
analysis of the person's body fluids or breath and the qualifications and
certification of individuals authorized to administer the testing and analysis.
(b) If a person for
religious or medical reasons cannot be subjected to blood tests, the person may
file an affidavit with the division of motor vehicles stating the reasons why
he or she cannot be required to take blood tests, and a notation to this effect
shall be made on his or her license. If that person is asked to submit to
chemical tests as provided under this chapter, the person shall only be
required to submit to chemical tests of his or her breath or urine. When a
person is requested to submit to blood tests, only a physician or registered
nurse or a medical technician certified under regulations promulgated by the
director of the department of health may withdraw blood for the purpose of
determining the alcoholic content in it. This limitation shall not apply to the
taking of breath or urine specimens. The person tested shall be permitted to
have a physician of his or her own choosing and at his or her own expense
administer chemical tests of his or her breath, blood, and/or urine in addition
to the tests administered at the direction of a law enforcement officer. If a
person having been placed under arrest refuses upon the request of a law
enforcement officer to submit to the tests, as provided in § 31-27-2, none
shall be given, but a judge of the traffic tribunal, upon receipt of a report
of a law enforcement officer: that he or she had reasonable grounds to believe
the arrested person had been driving a motor vehicle within this state under
the influence of intoxicating liquor, toluene, or any controlled substance, as
defined in chapter 28 of title 21, or any combination of these; that the person
had been informed of his or her rights in accordance with § 31-27-3; that the
person had been informed of the penalties incurred as a result of noncompliance
with this section; and that the person had refused to submit to the tests upon
the request of a law enforcement officer; shall promptly order that the
person's operator's license or privilege to operate a motor vehicle in this
state be immediately suspended and that the person's license be surrendered
within five (5) days of notice of suspension. A traffic tribunal judge pursuant
to the terms of subsection (c) of this section shall order as follows:
(1) Impose for the
first violation a fine in the amount of two hundred dollars ($200) to five
hundred dollars ($500) and shall order the person to perform ten (10) to sixty
(60) hours of public community restitution. The person's driving license in
this state shall be suspended for a period of three (3) months to six (6)
months. The traffic tribunal judge shall require attendance at a special course
on driving while intoxicated or under the influence of a controlled substance
and/or alcohol or drug treatment for the individual.
(2) Impose for a
second violation within a five (5) year period a fine in the amount of three
hundred dollars ($300) to five hundred dollars ($500), and the person's driving
license in this state shall be suspended for a period of one year to two (2)
years. The traffic tribunal judge shall require alcohol and/or drug treatment
for the individual.
(3) Impose for a third
or subsequent violation within a five (5) year period a fine of four hundred
dollars ($400) to five hundred dollars ($500), and the person's operator's
license in this state shall be suspended for a period of two (2) years to three
(3) years. The traffic tribunal judge shall require alcohol or drug treatment
for the individual. Provided, that prior to the reinstatement of a license to a
person charged with a third or subsequent violation within a three (3) year
period, a hearing shall be held before a traffic tribunal judge. At the hearing
the traffic tribunal judge shall review the person's driving record, his or her
employment history, family background, and any other pertinent factors that
would indicate that the person has demonstrated behavior which warrants the
reinstatement of his or her license.
(4) For purposes of
determining the period of license suspension, a prior violation shall
constitute any charge brought and sustained under the provisions of this
section or § 31-27-2.
(5) In addition to any
other fines, a highway safety assessment of five hundred dollars ($500) shall
be paid by any person found in violation of this section, the assessment to be
deposited into the general fund. The assessment provided for by this subsection
shall be collected from a violator before any other fines authorized by this
section.
(6) In addition to any
other fines and highway safety assessments, a two hundred dollar ($200)
assessment shall be paid by any person found in violation of this section to
support the department of health’s chemical testing programs outlined in
§31-27-2 (4), which shall be deposited as general revenues, not restricted
receipts.
(6)
(7) No fines, suspensions, assessments, alcohol or drug treatment
programs, course on driving while intoxicated or under the influence of a
controlled substance, or public community restitution provided for under this
section, can be suspended.
(c) Upon suspending or
refusing to issue a license or permit as provided in subsection (a) of this
section, the traffic tribunal shall immediately notify the person involved in
writing, and upon his or her request, within fifteen (15) days shall afford the
person an opportunity for a hearing as early as practical upon receipt of a
request in writing. Upon a hearing the traffic tribunal judge may administer
oaths and may issue subpoenas for the attendance of witnesses and the
production of relevant books and papers. If the traffic tribunal judge finds
after the hearing that: (1) the law enforcement officer making the sworn report
had reasonable grounds to believe that the arrested person had been driving a
motor vehicle within this state while under the influence of intoxicating
liquor, toluene, or any controlled substance, as defined in chapter 28 of title
21, or any combination of these; (2) the person while under arrest refused to
submit to the tests upon the request of a law enforcement officer; (3) the
person had been informed of his or her rights in accordance with § 31-27-3; and
(4) the person had been informed of the penalties incurred as a result of
noncompliance with this section; the traffic tribunal judge shall sustain the
violation. The traffic tribunal judge shall then impose the penalties set forth
in subsection (b) of this section. Action by the traffic tribunal judge must be
taken within seven (7) days after the hearing, or it shall be presumed that the
traffic tribunal judge has refused to issue his or her order of suspension.
(d) For the purposes
of this section, any test of a sample of blood, breath, or urine for the
presence of alcohol which relies in whole or in part upon the principle of
infrared light absorption is considered a chemical test.
(e) If any provision
of this section or the application of any provision shall for any reason be
judged invalid, the judgment shall not affect, impair, or invalidate the
remainder of the section, but shall be confined in this effect to the provisions
or application directly involved in the controversy giving rise to the
judgment.
SECTION 2. This article
shall take effect on July 1, 2006.
ARTICLE 11 SUBSTITUTE A
RELATING TO RESTRICTED RECEIPT ACCOUNTS
SECTION 1. Section 35-4-27 of the General Laws in
Chapter 35-4 entitled “State Funds” is hereby amended to read as follows:
§ 35-4-27. Indirect cost recoveries on restricted receipt accounts. – Indirect cost
recoveries of ten percent (10%) of cash receipts shall be transferred from all
restricted receipt accounts, to be
recorded as general revenues in the general fund. However, there shall be no
transfer from cash receipts with restrictions received exclusively: (1) from
contributions from non-profit charitable organizations; (2) from the assessment
of indirect cost recovery rates on federal grant funds; or (3) through
transfers from state agencies to the department of administration for the
payment of debt service. These indirect cost recoveries shall be applied to all
accounts, unless prohibited by federal law or regulation, court order, or court
settlement. The following restricted receipt accounts shall not be subject to
the provisions of this section:
Department of Human
Services
Veterans'
home – Restricted account
Veterans'
home – Resident benefits
Organ
transplant fund
Veteran’s
Cemetery Memorial Fund
Department of
Environmental Management
National
heritage revolving fund
Environmental
response fund II
Underground
storage tanks
Rhode Island Council
on the Arts
Art
for public facilities fund
Rhode Island
Historical Preservation and Heritage Commission
Historic
preservation revolving loan fund
Historic
Preservation loan fund – Interest revenue
State Police
Forfeited
property – Retained
Forfeitures
– Federal
Forfeited
property – Gambling
Attorney General
Forfeiture
of property
Federal
forfeitures
Attorney
General multi-state account
Department of
Administration
Restore
and replacement – Insurance coverage
Convention
Center Authority rental payments
Investment
Receipts – TANS
Car
Rental Tax/Surcharge-Warwick Share
Legislature
Audit
of federal assisted programs
Department of Elderly
Affairs
Pharmaceutical
Rebates Account
Department of Children
Youth and Families
Children’s
Trust Accounts – SSI
Military Staff
RI
Military Family Relief Fund
Treasury
Admin.
Expenses – State Retirement System
Retirement
– Treasury Investment Options
SECTION 2. This article shall take effect upon passage.
ARTICLE 12 SUBSTITUTE A
RELATING
TO GENERAL PUBLIC ASSISTANCE - HARDSHIP ASSISTANCE FUND
SECTION 1. Hardship
Contingency Fund – FY 2006 Revised
– Out of the general revenue sum appropriated to the department of human
services in Article 1 for general public assistance, the sum of nine hundred
one thousand five hundred eighty nine dollars ($901,589) may be used as a
hardship contingency fund for the purposes and subject to the limitations
hereinafter provided; said revised funding level being two hundred seventy one
thousand one hundred ten dollars ($271,110) greater than the FY 2006 enacted
levels. 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 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; provided, however, that individuals who are determined eligible for
medical assistance (“Medicaid”) under Title XIX of the Social Security Act, 42
U.S.C. Section 1396 et seq., or who are determined eligible to receive an
interim cash assistance payment for the disabled pursuant to Section 40-6-28,
shall not be eligible for assistance under this section. 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. Hardship
Contingency Fund – FY 2007 – Out of the general revenue sum appropriated to the
department of human services in Article 1 for general public assistance, the
sum of eight hundred seventy three thousand nine hundred forty dollars
($873,940) may be used as a hardship contingency fund for the purposes and
subject to the limitations hereinafter provided. 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
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; provided,
however, that individuals who are determined eligible for medical assistance
(“Medicaid”) under Title XIX of the Social Security Act, 42 U.S.C. Section 1396
et seq., or who are determined eligible to receive an interim cash assistance
payment for the disabled pursuant to Section 40-6-28, shall not be eligible for
assistance under this section. 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 as of July 1,
2006.
ARTICLE 13 SUBSTITUTE A
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, 2005, the period from
October 1, 2003 through September 30, 2004.
(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 § 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, 2005 shall be deemed to be
five and eighty-five hundredths percent (5.85%), and that the uncompensated
care index for the payment year ending September 30, 2006 shall be deemed to be
five and fifty hundredths percent (5.50%). , and that the
uncompensated care index for the payment year ending September 30, 2007 shall
be deemed to be five and forty seven hundredths percent (5.47%).
§ 40-8.3-3. Implementation. – (a) For the fiscal
year commencing on October 1, 20056 and ending September 30, 2006
2007, the department of human services shall submit to the Secretary of
the U.S. Department of Health and Human Services a state plan amendment to the
Rhode Island Medicaid state plan for disproportionate share hospital payments
(DSH Plan) to provide:
(1) Disproportionate
share hospital payments to all participating hospitals not to exceed an
aggregate limit of $97.8 million, to be allocated by the department to the Pool
A, Pool C and Pool D components of the DSH Plan;
(2) That the Pool D
allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospitals uncompensated care costs
for the base year inflated by the uncompensated care index to the total
uncompensated care costs for the base year inflated by uncompensated care index
for all participating hospitals. The disproportionate share payments shall be
made on or before December 15, 2005
July 16, 2007 and are expressly conditioned upon approval on or
before December 8, 2005 July 9, 2007 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
2006 2007 for the disproportionate share payments.
(b) No provision is
made pursuant to this chapter for disproportionate share hospital payments to
participating hospitals for uncompensated care costs related to graduate
medical education programs.
SECTION 2. This article shall take effect upon passage.
ARTICLE 14 SUBSTITUTE A
RELATING TO CHILD CARE -- STATE SUBSIDIES
SECTION 1. Section 40-6.2-1.1 of the General Laws in
Chapter 40-6.2 entitled “Child Care- State Subsidies” is hereby amended to read
as follows:
§ 40-6.2-1.1. Rates Established. -- (a) Subject to
the payment limitations in section (b), the maximum reimbursement rates to be
paid by the Departments of Human Services and Children, Youth and Families for
licensed child care centers and certified family-child care providers shall be
based on the following schedule of the 75th percentile of weekly market rates:
LICENSED 75th
PERCENTILE
CHILD CARE
OF WEEKLY
CENTERS MARKET RATE
INFANT $182.00
PRESCHOOL $150.00
SCHOOL-AGE $135.00
CERTIFIED 75th
FAMILY
PERCENTILE
CHILD CARE OF WEEKLY
PROVIDERS
MARKET RATE
INFANT $150.00
PRESCHOOL $150.00
SCHOOL-AGE $135.00
(b) The department
shall pay child care providers based on the lesser of the applicable rate
specified in section (a), or the lowest rate actually charged by the provider
to any of its public or private child care customers with respect to each of
the rate categories, infant, preschool and school-age.
(c) By June 30, 2004
and biennially thereafter, the Department of Labor and Training shall conduct
an independent survey or certify an independent survey of the then current
weekly market rates for child care in Rhode Island and shall forward such
weekly market rate survey to the Department of Human Services. The Departments
of Human Services and Labor and Training will jointly determine the survey
criteria including, but not limited to, rate categories and sub-categories. The
75th percentile of weekly market rates in the table in subsection (a) shall be
adjusted by the surveys conducted under this subsection, beginning January 1,
2006 and biennially thereafter; provided, however, that the weekly market rates
in the table in subsection (a) shall be adjusted by the 2004 2006
market rate survey beginning July 1, 2006 2007. For the purposes
of this section, and until adjusted in accordance with this subsection, the
75th percentile of weekly market rate shall mean the 2002 Department of Human
Services Child Care Market Survey.
(d) The department of
human services is authorized and directed to establish rates of reimbursement
for appropriate child care provided to children older than twelve (12) years of
age, so as to implement the provisions of § 40- 5.1-17(b).
(e) In order to expand the accessibility and
availability of quality child care, the department of human services is
authorized to establish by regulation alternative or incentive rates of
reimbursement for quality enhancements, innovative or specialized child care
and alternative methodologies of child care delivery, including non-traditional
delivery systems and collaborations.
SECTION 2. This article shall take effect as of July 1,
2006.
ARTICLE 15 SUBSTITUTE A
RELATING TO NURSING FACILITIES
SECTION 1. Section
40-8-19 -of the General Laws in Chapter 40-8 entitled “Medical Assistance” is
hereby amended to read as follows:
§ 40-8-19. Rates of payment to nursing facilities. – (a)
The rates to be paid by the state to nursing facilities licensed pursuant to
chapter 17 of title 23, and certified to participate in the title XIX medicaid
program for services rendered to medicaid-eligible residents, shall be
reasonable and adequate to meet the costs which must be incurred by efficiently
and economically operated facilities in accordance with 42 U.S.C. §
1396a(a)(13). The department of human services shall promulgate or modify the
principles of reimbursement for nursing facilities currently in effect on July
1, 2003 to be consistent with the provisions of this section and title XIX, 42
U.S.C. § 1396 et seq., of the Social Security Act.
(b) Rate reform. Subject to the
phase-in provisions in subsections (c) and (d) below, the department shall, on
or before October 1, 2005, modify the principles of reimbursement for nursing
facilities to include the following elements:
(1) Annual base years;
(2) Four (4) cost
centers: direct labor, property, other operating, and pass through items;
(3) Re-array of costs
of all facilities in the labor and other operating cost centers every three (3)
years beginning with calendar year 2002;
(4) A ceiling maximum
for allowable costs in the direct labor cost center to be established by the
department between one hundred ten percent (110%) and one hundred twenty-five
percent (125%) of the median for all facilities for the most recent array year.
(5) A ceiling maximum
for allowable costs in the other operating cost center to be established by the
department between ninety percent (90%) and one hundred fifteen percent (115%)
of the median for all facilities for the most recent array year;
(6) Adjustment of
costs and ceiling maximums by the increase in the National Nursing Home Price
Index ("NNHPI") for the direct labor cost center and the other
operating cost center for year between array years; such adjustments to be
applied on October 1st of each year beginning October 1, 2003 for the direct
labor cost center and October 1, 2005 for the other operating cost center,
except for the fiscal year beginning July 1, 2006 for which the price index
shall be applied on February 1, 2007.
(7) Application of a
fair rental value system to be developed by the department for calculating
allowable reimbursement for the property cost center;
(8) Such quality of
care and cost containment incentives as may be established by departmental
regulations.
(c) Phase I Implementation. The
department shall file a state plan amendment with the U.S. Department of Health
and Human Services on or before August 1, 2003 to modify the principles of
reimbursement for nursing facilities, to be effective on October 1, 2003, or as
soon thereafter as is authorized by an approved state plan amendment, to
establish the direct labor cost center and the pass through items cost center
utilizing calendar year 2002 cost data, and to apply the ceiling maximums in
subsections (b)(4) and (b)(5) above. Nursing facilities whose allowable 2002
direct labor costs are below the median in the direct labor cost center may
make application to the department for a direct labor cost interim payment
adjustment equal to twenty-five percent (25%) of the amount such allowable 2002
direct labor costs are below the median in the direct labor cost center, provided
that the interim payment adjustment granted by the department on or after
October 1, 2003 must be expended by the facility on expenses allowable within
the direct labor cost center, and any portion of the interim payment not
expended on allowable direct labor cost center expenses shall be subject to
retroactive adjustment and recoupment by the department upon the department's
determination of a final direct labor payment adjustment after review of the
facility's actual direct labor expenditures. The final direct labor payment
adjustment will be included in the facility's October 1, 2004 rate until the
facility's next base year.
(d) Phase II Implementation. The
department shall file a state plan amendment with the U.S. Department of Health
and Human Services to modify the principles of reimbursement for nursing
facilities, to be effective on September 1, 2004, or as soon thereafter as is
authorized by an approved state plan amendment, to establish a fair rental
value system for calculating allowable reimbursement for the property cost
center in accordance with subsection (b)(7) above; provided, however, that no
facility shall receive a payment as of September 1, 2004 for property-related
expenses pursuant to the fair rental value system that is less than the
property-related payment they would have received for the other
property-related ("OPR") cost center system in effect as of June 30,
2004.
SECTION 2.
Chapter 40-8 of the General Laws entitled
"Medical Assistance" is hereby amended by adding thereto the
following section:
40-8-20.1.
Prospective rate increments. – The department may consider the granting of a prospective rate
that reflects demonstrated cost increases in excess of the rate that has been
established by the application of the percentage increase. In order to qualify
for the rate increment, demonstrated increased costs must be the result of:
(a) Demonstrated errors made during the rate determination
process;
(b) Significant increases in operating costs resulting from the
implementation of new or additional programs, services or staff specifically
mandated by the Rhode Island department of health;
(c) Significant increases in operating costs resulting from
capital renovations, expansion, or replacement required for compliance with
fire safety codes and/or certification requirements of the Rhode Island
department of health;
(d Significant increases in workers' compensation and/or health
insurance premiums which cannot be accommodated within the nursing facility's
assigned aggregate per diem rate, if cost justified; provided, that assigned
per diem rate in the labor and payroll related expenses cost center does not
exceed two percent (2%) of the cost center ceiling; or
(e) Extraordinary circumstances, including, but not limited to,
acts of God, and inordinate increases in energy costs (e.g. federal BTU tax,
regional or national energy crisis). Inordinate increases in energy costs will
be immediately reflected in increased rates above the energy cost center ceiling
maximum. Provided, however, that such increases will be rescinded immediately
upon cessation of the extraordinary circumstance. All requests for rate
increments shall be limited to one request per nursing facility for the factors
set forth in sections (2) and (3); provided, additional requests involving a
per diem increase in excess of one percent of the nursing facility's previously
assigned aggregate per diem rate shall also be reviewed. Before a nursing
facility shall be permitted to file for a rate increment, increases in
operating costs set forth in sections (2) and (3) must have been incurred for a
period of not less than three (3) months in order to establish proof of the
increase. Rate adjustments granted as a result of a request filed within one
hundred twenty (120) days after the costs were first incurred shall be made
effective retroactively to the date the costs were actually incurred; provided,
further, any adjustments granted as a result of requests filed more than one
hundred twenty (120) days after the costs were first incurred will be effective
on the first day of the month following the filing of the request.
SECTION 3. This
article shall take effect upon passage.
ARTICLE 16 SUBSTITUTE A
Relating To Municipal Tipping Fees
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, 2005 2006 to June 30, 2006 2007.
SECTION 2. This article
shall take effect as of July 1, 2006.
ARTICLE 17 SUBSTITUTE 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. For fiscal year 2004,
notwithstanding the provisions of subsection (a), aid calculations shall be
based on a blended rate of ninety percent (90%) of the data from the 1990
census and ten percent (10%) of the data from the 2000 census. In each of the succeeding nine (9) fiscal
years, the calculations shall be based on a blended rate that increases the
percentage of data utilized from the 2000 census by ten percent (10%) from the
previous year and decreases the percentage of the data utilized from the 1990
census by ten percent (10%) from the previous year.
(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
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 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 fifty-two million four
hundred thirty-eight thousand five hundred thirty-two dollars ($52,438,532).
(ix) For the fiscal
year ending June 30, 2006, the total amount of aid shall be based upon three
percent (3.0%) 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 three
and four-tenths percent (3.4%) of total
state tax revenues in the reference year Sixty-four million six hundred ninety-nine
thousand three dollars ($64,699,003).
(xi) For the fiscal
year ending June 30, 2008, the total amount of aid shall be based upon three
and seven-tenths percent (3.7 %) 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 one-tenths percent
(4.1%) 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
four-tenths percent (4.4%) of total state tax revenues in the reference year.
(xiv) For the fiscal
year ending June 30, 2011, 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. This
article shall take effect upon passage.
ARTICLE 18 SUBSTITUTE A
Relating To Licensing of Hospital
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
as follows:
§ 23-17-38.1. Hospitals – Licensing Fee. – (a)
There is imposed a hospital licensing fee at the rate of three and fifty-six
hundredths percent (3.56%) upon the net patient services revenue of every
hospital for the hospital's first fiscal year ending on or after January 1,
2004. 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 December 15, 2005 July 16, 2007 and
payments shall be made by electronic transfer of monies to the general
treasurer and deposited to the general fund in accordance with § 44-50-11.
Every hospital shall, on or before November 30, 2005 June
15, 2007 make a return to the tax administrator containing the correct
computation of net patient services revenue for the hospital fiscal year ending
September 30, 2003 September
30, 2004, 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 §
23-17-38 and to any licensing fees previously imposed in accordance with §
23-17-38.1.
SECTION 2. This article shall take effect on July 1,
2006 and shall apply to hospitals, as defined in Section 1, which are duly
licensed on July 1, 2006. The licensing fee imposed by Section 1 shall be in
addition to the inspection fee imposed by § 23-17-38 and to any licensing fees
previously imposed in accordance with § 23-17-38.1.
ARTICLE 19 SUBSTITUTE A AS AMENDED
RELATING TO EDUCATION AID
SECTION
1. Section 16-7-23 of the General Laws
in Chapter 16-7 entitled “Foundation Level School Support” is hereby amended to
read as follows:
§
16-7-23. Community
requirements – Adequate minimum budget provision. – (a) The
school committee's budget provisions of each community for current expenditures
in each budget year shall provide for an amount from all sources sufficient to
support the basic program and all other approved programs shared by the state.
Each community shall contribute local funds to its school committee in an
amount not less than its local contribution for schools in the previous fiscal
year; provided, however, that for FY 2005, that amount shall not be less
than provided for FY 2003. Calculation of the annual local contribution
shall not include Medicaid revenues received by the municipality or district
pursuant to chapter 8 of title 40. A community which has a decrease in
enrollment may compute maintenance of effort on a per pupil rather than on an
aggregate basis when determining its local contribution; furthermore, a
community which experiences a nonrecurring expenditure for its schools may
deduct the nonrecurring expenditure in computing its maintenance of effort. The
deduction of nonrecurring expenditures shall be with the approval of the
commissioner. The courts of this state shall enforce this section by writ of
mandamus.
(b) Whenever any state funds are appropriated
for educational purposes, the funds shall be used for educational purposes only
and all state funds appropriated for educational purposes must be used to
supplement any and all money allocated by a city or town for educational
purposes and, in no event, shall state funds be used to supplant, directly or
indirectly, any money allocated by a city or town for educational purposes. All
state funds shall be appropriated by the municipality to the school committee
for educational purposes in the same fiscal year in which they are appropriated
at the state level even if the municipality has already adopted a school
budget. All state and local funds unexpended by the end of the fiscal year of
appropriation shall remain a surplus of the school committee and shall not
revert to the municipality. Any surplus of state or local funds appropriated
for educational purposes shall not in any respect affect the requirement that
each community contribute local funds in an amount not less than its local
contribution for schools in the previous fiscal year, subject to subsection (a)
of this section, and shall not in any event be deducted from the amount of the
local appropriation required to meet the maintenance of effort provision in any
given year.
SECTION
2. Sections 16-7.1-5 and 16-7.1-15 of the
General Laws in Chapter 16-7.1 entitled “The Rhode Island Student Investment
Initiative” are hereby amended to read as follows:
16-7.1-5. Intervention and support for failing schools. --
(a) 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.
(b) For FY 2006 2007, 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.
16-7.1-15. 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,
adjusted to reflect the increases or decreases in aid enacted to meet the
minimum and maximum funding levels established for FY 2000 through FY 2005
FY 2006. Each school district shall also receive school aid through each
investment fund for which that district qualifies pursuant to §§ 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. These sums
shall be in addition to the base amount described in this section. For FY 2007, the reference year for the
data used in the calculation of aid pursuant to §§16-7.1-8, 16-7.1-9,
16-7.1-10, 16-7.1-11, 16-7.1-12, and 16-7.1-16 shall be FY 2004. 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 16-64-1.1 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 2006 FY 2007 under this section and §§
16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) shall be as follows:
Barrington 2,479,907 2,599,526
Burrillville
13,145,661 13,779,743
Charlestown
1,910,676
2,002,838
Coventry
19,151,316
20,075,081
Cranston
33,943,638
35,580,911
Cumberland
12,646,981
13,257,009
East
Greenwich 1,860,042 1,949,761
East
Providence 25,530,776 26,762,254
Foster 1,351,283
1,416,463
Glocester
3,065,960
3,213,847
Hopkinton 5,954,153
6,241,352
Jamestown
507,432
531,908
Johnston
10,413,088 10,915,364
Lincoln
7,062,603 7,403,268
Little
Compton 351,839 368,810
Middletown
10,014,086 10,497,116
Narragansett
1,809,860
1,897,159
Newport
11,253,278
11,796,080
New
Shoreham 101,451 106,345
North
Kingstown 11,434,463 11,986,005
North
Providence 12,623,955 13,232,872
North
Smithfield 4,611,787 4,834,237
Pawtucket 63,782,029 66,858,559
Portsmouth
5,962,443 6,250,042
Providence
185,048,912
193,974,756
Richmond 5,903,843 6,188,615
Scituate
3,250,400 3,407,183
Smithfield
5,407,726 5,668,568
South
Kingstown 9,948,816 10,428,698
Tiverton
5,659,091 5,932,058
Warwick
35,894,621 37,626,000
Westerly
6,528,189 6,843,077
West
Warwick 19,499,965 20,440,547
Woonsocket
45,425,511 47,616,613
Bristol-Warren
19,554,956
20,498,190
Exeter-West
Greenwich 7,308,493
7,661,019
Chariho 380,004 398,334
Foster-Glocester
5,466,199
5,729,861
Central
Falls 41,319,965 43,313,036
This
special provision shall not limit entitlements as determined by application of
other formula provisions in this section.
(e)
Children with disabilities. (1) 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 [20 U.S.C.
§ 6368], 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.
(2)
All departments and agencies of the state shall furnish any advice and
information, documentary and otherwise, to the general assembly and its agents
that is deemed necessary or desirable by the study to facilitate the purposes
of this section.
SECTION
3. Section 16-64-1.1 of the General
Laws in Chapter 16-64 entitled “Residence for Children for School Purposes” is
hereby amended to read as follows:
§ 16-64-1.1. Payment and reimbursement for educational
costs of children placed in foster care, group homes, or other residential
facility by a Rhode Island state agency.—
(a) Children placed in foster care by a Rhode
Island licensed child placing agency or a Rhode Island governmental agency
shall be entitled to the same free appropriate public education provided to all
other residents of the city or town where the child is placed. The city or town
shall pay the cost of the education of the child during the time the child is in
foster care in the city or town.
(b) Children placed by DCYF in a group home or
other residential facility that does not include the delivery of educational
services are to be educated by the community in which the group home or other
residential facility is located, and those children shall be entitled to the
same free appropriate public education provided to all other residents of the
city or town where the child is placed. For purposes of payment and
reimbursement for educational costs under this chapter, the term "group
home or other residential facility" shall not include independent living
programs. Each city and town that contains one or more group homes or other
residential facilities that do not include delivery of educational services
will receive funds as part of state aid to education in accordance with the
following provisions:
(1) On June 30 of each year the DCYF shall
provide the department of elementary and secondary education with a precise
count of how many group home or other residential facility "beds"
exist in each Rhode Island city or town, counting only those "beds"
in facilities that do not include the delivery of educational services. The
number of "beds" in each group home or other residential facility
shall be equal to the maximum number of children that may be placed in that
group home or other residential facility on any given night according to the
applicable licensure standards of the DCYF.
This notification shall also include an estimate of the number of group
home beds by city or town that are projected to be licensed by DCYF between
July 1 and December 31 of each year.
(2) On June 30 of each year the DCYF shall
provide the department of elementary and secondary education with a precise
count of the total number of students aged three (3) to twenty-one (21) in DCYF
care on that date who reside in group homes in the state of Rhode Island, as
well as an accurate accounting of the percentage of those children that are
eligible for special education and related services pursuant to the Individuals
with Disabilities Education Act [20 U.S.C. § 1400 et seq.] as of that date;
(3) Each city or town shall receive state
education aid in an amount equal to the number of group home or other
residential facility "beds" in that community multiplied by a per
pupil rate, subject to appropriation, intended to reflect the average cost per
pupil based on the blend of regular education and special education students in
group homes as derived from figures supplied on June 30 of the reference year
as defined in § 16-7-16(11). Each
city or town shall receive an additional per pupil rate for beds certified by
DCYF as licensed between July 1 and December 31 of each year. Any city or town may petition the
commissioner of elementary and secondary education for additional state
education aid pursuant to this section in any year in which the total number of
group home or other residential facility "beds" is increased by more
than five (5) in any annual cycle.
(4) The general assembly shall annually
appropriate a sum sufficient to distribute to each city or town the aid
required by this subsection based upon the DCYF count provided on June 30 of
the reference year as defined in § 16-7-16(11) and that aid shall be
distributed by the department of elementary and secondary education. For an
appropriation to be made for payments to be made for the 2001-2002 school year
the DCYF shall establish a count as required in this subsection upon passage of
this legislation [July 5, 2001]. This count shall be determined based on the
group home and other residential facility "beds" in existence in each
community as of December 31 of the preceding year.
(5) For fiscal year 2007, aid received pursuant to this
section shall be equal to aid received in the fiscal year 2006 enacted budget. However, notwithstanding
the language in subsection 3 limiting requests for additional aid to the year
in which facility "beds" have increased by more than five (5) in that
annual cycle, communities may, pursuant to subsection 3, petition in the fiscal
year 2007 for additional aid based upon an increase of more than five (5)
"beds" subsequent to the passage of the fiscal year 2006 budget
enacted by the 2005 General Assembly.
(c) Children placed by DCYF in a residential treatment
program, group home, or other residential facility, whether or not located in
the state of Rhode Island, which includes the delivery of educational services,
provided by that facility (excluding facilities where students are taught on
grounds for periods of time by teaching staff provided by the school district
in which the facility is located), shall have the cost of their education paid
for as provided for in subsection (d) of this section and § 16-64-1.2. The city
or town determined to be responsible to DYCF for a per-pupil special education
cost pursuant to § 16-64-1.2 shall pay its share of the cost of educational
services to DCYF or to the facility providing educational services.
(d) Children placed by DCYF in group homes, child
caring facilities, community residences, or other residential facilities shall
have the entire cost of their education paid for by DCYF if:
(1) The facility is operated by the state of
Rhode Island or the facility has a contract with DCYF to fund a pre-determined
number of placements or part of the facility's program;
(2) The facility is state-licensed; and
(3)
The facility operates an approved on-grounds educational program, whether or
not the child attends the on-grounds program.
SECTION 4. Chapter 16-22 of the General Laws
entitled "Mathematics and English-language arts" is hereby amended as
follows:
§16-22-23. Mathematics and
English-language arts. Mathematics, English/Language Arts, and Science. – (a)
The board of regents for elementary and secondary education shall select and/or
develop a statewide curriculum (i) in Mathematics and English/Language
Arts for students in grades kindergarten (k) through twelve (12) by August 31,
2006 and (ii) in Science for students in grades kindergarten (k) through
twelve (12) by August 31, 2008.
(b)
The curriculum selected and/or developed by the board of regents shall:
(1) Be aligned with state standards and
assessments utilized by the state department of elementary and secondary
education;
(2) Contain sufficient detail to guide teachers
in planning lessons aligned with state standards and assessments.
(c)
By November 1, 20046, the commissioner of elementary and
secondary education shall prepare an outline for development and implementation
of the science curriculum utilizing appropriate groups and then shall
convene a Mathematics curriculum advisory committee and an English/Language
Arts science curriculum
advisory committee for the purpose of developing recommended curriculum to the
board of regents for elementary and secondary education. Each The
science advisory committee shall include teachers, representatives of
teacher unions, administrators, curriculum directors, school committee members,
and experts designated by the commissioner.
SECTION 5. Section 16-7-29 of the General Laws in
Chapter 16-7 entitled "Foundation Level School Support" is hereby
amended to read as follows:
16-7-29. Minimum salary schedule established by community. --
(a) Every community shall establish and put into full effect by appropriate
action of its school committee a salary schedule recognizing years of service,
experience, and training for all certified personnel regularly employed in the
public schools and having no more than twelve (12) annual steps. provided,
however, that any salary supplement required under section 16-25.3-2 shall not
be considered a step for the purposes of this section. The term "school year" as applied
to the salary schedule means the ten (10) calendar months beginning in
September and ending the following June.
(b) Nothing in this section shall prohibit a
freeze or reduction of the monetary value of the steps in the salary schedule
through the collective bargaining process.
SECTION 6. Section
16-25.3-2 of the General Laws in Chapter 16-25.3 entitled "School Speech
and Language Pathologists" is hereby amended to read as follows:
16-25.3-2. Employment of speech language pathologists. --
(a) Each school district is encouraged by the general assembly to employ one
full time certified speech language pathologist for every forty (40) students
who receive speech language services within the age range of three (3) to
twenty-one (21). In cases where the number of students receiving speech
language services is above forty (40), the school district is encouraged to
employ a speech language pathologist on a part time pro-rata basis.
(b) When a speech and language evaluation or
the provision of speech language services are being considered or are part of
the student's program the speech language pathologist shall be a member of the
multidisciplinary team.
(c) In the event an individual seeks
emergency certification from the department of elementary and secondary
education in the area of speech language pathology, the individual must meet
the following minimum requirements before the granting of emergency
certification by the department of elementary and secondary education:
(1) Hold a bachelor's degree in communicative
disorders from an accredited college or university;
(2) Have successfully completed no less than
eighteen (18) hours of graduate credit in the area of speech language
pathology.
(d) Individuals under emergency certification
to conduct the business of a speech language pathologist shall be under the
direct supervision of a certified speech language pathologist. At no time shall
a certified speech language pathologist supervise more than one emergency
certified speech language pathologist.
(e) Any licensed
speech language pathologist who has met the requirements and acquired a
Certificate of Clinical Competence from the American Speech-Language-Hearing
Association, and who is employed by a school district, shall be entitled to
receive an annual salary supplement of one thousand seven hundred fifty dollars ($1,750),
in addition to any other compensation to which the employee may be entitled.
Any licensed speech
language pathologist who has met the requirements and acquired a Certificate of
Clinical Competence from the American Speech-Language-Hearing Association shall
submit documentation to the department of education, and to the local school
district by December 1, in order to be eligible to receive the salary
supplement in the next immediate school year, except for the school year 2007, in
which documentation shall be submitted to the department of education and the
local school district by October 1 in order to be eligible to receive the
salary supplement in that school year. The department of education shall, within
thirty (30) days, notify the school district if the documentation provided by
the employee is inadequate to show proof of certification, thereby rendering
the employee ineligible for the salary supplement in the next immediate school
year; provided, however, that if the employee provides additional information,
with fifteen (15) days of notification of ineligibility, verifying
certification, that employee shall be entitled to receive the salary supplement
in the next immediate school year.
(f) Local school districts shall be reimbursed by the state
for costs attributable to the salary supplements provided for in this act.
SECTION 7.
Section 16-7.1-11.1 of the General Laws in Chapter 16-7.1 entitled "The
Rhode Island Student Investment Initiative" is hereby amended to read as
follows:
16-7.1-11.1. Full day kindergarten investment fund. --
(a) Beginning in fiscal year 2001, the general assembly shall appropriate and
distribute to each locally or regionally operated district a sum equal to the
number of full-time kindergarten students reported as a member of each district
as of the reference year as defined in section 16-7-16(11) times a per pupil
amount, which shall be:
(1) Fifteen hundred dollars ($1,500) for
those districts with a tax effort index of below 0.6 as calculated pursuant to
section 16-7.1-6;
(2) One thousand dollars ($1,000) for those
districts with a tax effort index of below 1.0 as calculated pursuant to
section 16-7.1-6; and
(3) Five hundred dollars ($500) for all other
districts.
(b) Funding under this section shall be in
addition to any and all other aid received by the district, including aid
received under this chapter, chapter 77.1 of this title, and any minimum
increase of aid provided for under section 16-7.1-15.
(c) For fiscal year
2007, aid received pursuant to this section shall be equal to aid received in
the fiscal year 2006
enacted budget by the 2005 general assembly.
SECTION 8.
Section 16-77.1-2 of the General Laws in Chapter 16-77.1 entitled "Funding
of Charter Public Schools" is hereby amended to read as follows:
16-77.1-2. Operating costs. -- (a) Operating costs
of a charter public school shall be the total of the per pupil payments for
each student attending the charter public school. The per pupil payment for
each student shall be determined based on the per pupil cost for the district
of residence of each student. The state's share of the per pupil amount for
each student attending the charter public school shall be paid by the state
directly to the charter public school and shall be the percent, or share ratio,
previously calculated under chapter 7 of this title; provided, that in no case
shall the ratio be less than thirty percent (30%), minus the five percent (5%)
of per pupil cost designated for indirect cost support to the student's school
district as defined in subsection (b). The five percent (5%) indirect cost
amount shall be deducted from the district per pupil cost before the state
share is derived by applying the share ratio to the district per pupil cost.
The local share of the per pupil amount for each student attending the charter
public school shall be paid to the charter public school by the district of
residence of the student and shall be the per pupil cost for the district of
residence of the student minus the state share of that per pupil cost as designated
in this section.
(b) In addition to all state aid to education
paid to a local district pursuant to chapter 7.1 of this title, the state will
pay an additional amount to the district for each student from this district
who is attending a charter public school. The additional amount of state aid
per pupil shall be five percent (5%) of the districts per pupil cost. The
additional state aid shall be for the purpose of assisting local school
districts to undertake the indirect costs borne by a district when its student
attends a charter public school.
(c) The state department of elementary and
secondary education shall annually determine both the state and local share of
each charter public school's operating costs by deriving the respective shares associated
with each student reported as a member of the charter public school as of June
30 of the reference year as defined in section 16-7-16(11) (or the enrollment
as of October 1 of the current school year in the first year of operation of a
charter school). All other data used in this determination shall be based upon
the reference year as defined in section 16-7-16(11).
(d) The state shall make payments of its
share of operating costs to each charter public school on a quarterly basis in
July, October, January, and April. The July and October payments will be based
upon the reported student membership of the charter public school as of June 30
of the reference year as defined in section 16-7-16(11) (or the enrollment as
of October 1 of the current school year in the first year of operation of a
charter school). Charter public schools will report current student enrollment,
including district of residence for school purposes of each student enrolled,
and each district will report current total district operating expenses and
total district enrollments (including district students enrolled in charter
public schools) annually by October 1. If the October 1 data on a charter
public school's student enrollment show a ten percent (10%) or greater increase
or decrease in students from the June membership count, the third and fourth
quarter payments to the charter public school will be adjusted to reflect
actual student enrollment in the charter public school.
(e) Local district payments to charter public
schools for each district's students enrolled in the charter public school
shall also be made quarterly as designated in subsection (d); the first local
district payment shall be made by August 15 instead of July. Any local school
district more than thirty (30) days in arrears on a quarterly payment for its
student(s) enrolled in a charter public school shall have the amount of the
arrearage deducted from state aid to that district and the withheld arrearage
shall be paid by the state directly to the charter public school.
(f) Local school districts with student(s)
enrolled in a charter public school shall continue to report these students in
the total census of district public school students and will receive state aid
for all these students pursuant to the provisions of chapter 7.1 of this title.
(g) All entitlements except those provided
for in section 16-24-6.2 shall be ratably reduced if less than one hundred
percent (100%) of the expenditures is appropriated.
(h) For fiscal year 2007,
the indirect aid paid to districts pursuant to this section shall equal the
amount received in the fiscal year 2006 enacted budget by the 2005 general assembly.
SECTION 9.
Section 16-7.1-19 of the General Laws in Chapter 16-7.1 entitled "The
Rhode Island Student Investment Initiative" is hereby amended to read as
follows:
16-7.1-19. Vocational technical equity fund. – (a) 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 reference year as defined in section 16-7-16. The sum shall be five
hundred dollars ($500) per student. Funding under this section will be limited
to those students enrolled in programs that are part of the career and
technical education system as approved by the department of elementary and
secondary education.
(b) For fiscal year
2007, aid received pursuant to this section shall be equal to aid received in
the fiscal year 2006
enacted by the 2005 general assembly.
SECTION 10. This article shall take effect upon passage.
ARTICLE 20 SUBSTITUTE A
relating to issuance of license upon
payment of taxes
SECTION
1. Section 5-76-4 of the General Laws in
Chapter 5-76 entitled “Issuance of License Upon Payment of Taxes” is hereby
amended to read as follows:
5-76-4. Notice of intent to inform agency. –
(a) If within ninety (90) days prior to the renewal date of a license
the tax administrator determines from the information furnished pursuant to §
5-76-3, or otherwise, that any person who holds a license issued by any agency
has neglected or refused to file any tax returns or to pay any tax administered
by the tax administrator and that such tax matter is not pending administrative
or appellate review, the tax administrator shall send a written notice to such
person informing him/her of the tax administrator's intention to request such
agency or authority not to renew such license upon expiration thereof.
(b) Within
twenty-one (21) days from the date of such notice, the licensee may request in
writing a conference with the tax administrator or his/her designee, in order
to show proof of payment of all taxes or for the purpose of entering into a
time payment agreement for the delinquent taxes that is satisfactory to the tax
administrator.
(c)
If upon the expiration of twenty-one (21) days from the date of the notice to
the licensee, or, if a conference has been requested, after a conference has
been held the licensee has not demonstrated to the satisfaction of the tax
administrator that he/she has filed all required returns and paid all required
taxes, or that the licensee has not entered into time payment arrangement
satisfactory to the tax administrator, the tax administrator shall notify the
agency or authority in writing that the licensee is delinquent in filing tax
returns and/or remitting taxes due. The tax administrator shall send a copy of
the notification to the licensee.
SECTION
2. This article shall take effect upon
passage.
ARTICLE 21 SUBSTITUTE A
Relating To TAX AMNESTY
SECTION
1. Title 44 of the General Laws
entitled “Taxation” is hereby amended by adding thereto the following chapter:
CHAPTER 6.3
2006 RHODE ISLAND TAX AMNESTY
ACT
44-6.3-1. Short title. -- This chapter shall be
known as the "2006 Rhode Island Tax Amnesty Act".
44-6.3-2. Definitions. -- As used in this
chapter, the following terms have the meaning ascribed to them in this section,
except when the context clearly indicates a different meaning:
(1) "Taxable
period" means any period for which a tax return is required by law to be
filed with the tax administrator;
(2)
"Taxpayer" means any person, corporation, or other entity subject to
any tax imposed by any law of the state of Rhode Island and payable to the
state of Rhode Island and collected by the tax administrator.
44-6.3-3. Establishment of tax amnesty. --
(a) The tax administrator shall establish a tax amnesty program for all
taxpayers owing any tax imposed by reason of or pursuant to authorization by
any law of the state of Rhode Island and collected by the tax administrator.
Amnesty tax return forms shall be prepared by the tax administrator and shall
provide that the taxpayer clearly specify the tax due and the taxable period
for which amnesty is being sought by the taxpayer.
(b) The amnesty
program shall be conducted for a seventy-five (75) day period ending on
September 30, 2006. The amnesty program shall provide that, upon written
application by a taxpayer and payment by the taxpayer of all taxes and interest
due from the taxpayer to the state of Rhode Island for any taxable period
ending prior to December 31, 2005, the tax administrator shall not seek to
collect any penalties which may be applicable and shall not seek the civil or
criminal prosecution of any taxpayer for the taxable period for which amnesty
has been granted. Amnesty shall be granted only to those taxpayers applying for
amnesty during the amnesty period who have paid the tax and interest due upon
filing the amnesty tax return, or who have entered into an installment payment
agreement for reasons of financial hardship and upon terms and conditions set
by the tax administrator. In the case of the failure of a taxpayer to pay any
installment due under the agreement, such an agreement shall cease to be
effective and the balance of the amounts required to be paid thereunder shall
be due immediately. Amnesty shall be granted for only the taxable period
specified in the application and only if all amnesty conditions are satisfied
by the taxpayer.
(c) The provisions of
this section shall include a taxable period for which a bill or notice of
deficiency determination has been sent to the taxpayer and a taxable period in
which an audit has been completed but has not yet been billed.
(d) Amnesty shall not
be granted to taxpayers who are under any criminal investigation or are a party
to any civil or criminal proceeding, pending in any court of the United States
or the state of Rhode Island, for fraud in relation to any state tax imposed by
the law of the state and collected by the tax administrator.
44-6.3-4. Interest under tax amnesty. --
Notwithstanding any general or specific statute to the contrary, interest on
any taxes paid for periods covered under the amnesty provisions of this chapter
shall be computed at the rate of twelve percent (12%) annually from the due
date to the time of payment.
44-6.3-5. Appropriation.—There is hereby appropriated,
out of any money in the treasury not otherwise appropriated for the 2007 fiscal
year, the sum of two hundred thousand dollars ($200,000) to the division of
taxation to carry out the purposes of this chapter. The state controller is
hereby authorized and directed to draw his or her orders upon the general
treasurer for the payment of the sum or so much thereof as may be required from
time to time and upon receipt by him of properly authenticated vouchers.
44-6.3-6. Implementation. -- Notwithstanding any
provision of law to the contrary, the tax administrator may do all things
necessary in order to provide for the timely implementation of this chapter,
including but not limited to procurement of printing and other services and
expenditure of appropriated funds as provided for in § 44-6.3-5.
44-6.3-7. Disposition of monies. --
(a) Except as provided in subsection (b) within,
all monies collected pursuant to any tax imposed by the state of Rhode Island under
the provisions of this chapter shall be accounted for separately and paid into
the general fund.
(b) Monies collected
for the establishment of the TDI Reserve Fund (§ 28-39-7), the Employment
Security Fund (§ 28-42-18),the Employment Security Interest Fund (§ 28-42-75),
the Job Development Fund (§ 28-42-83), and the Employment Security Reemployment
Fund (§ 28-42-87) shall be deposited in said respective funds.
44-6.3-8. Analysis of amnesty program by tax administrator. --
The tax administrator shall provide an analysis of the amnesty program to the
chairpersons of the house finance committee and senate finance committee, with
copies to the members of the revenue estimating conference, by November 1,
2006. The report shall include an analysis of revenues received by tax source,
distinguishing between the tax collected and interest collected for each
source. In addition, the report shall further identify the amounts that are new
revenues from those already included in the general revenue receivable taxes
defined under generally accepted accounting principles and the state's audited
financial statements. The auditor general shall include a review of this
analysis as part of the activities involved in preparation of the combined
annual financial report for fiscal year 2007.
44-6.3-9. Rules and Regulations. --
The tax administrator shall promulgate such rules and regulations as are
necessary to implement the provisions of this chapter.
SECTION
2. Section 44-1-7 of the General Laws in Chapter 44-1 entitled “State Tax
Officials” is hereby amended to read as follows:
44-1-7. Interest on delinquent payments. – (a) Whenever the full
amount of any state tax or any portion or deficiency, as finally determined by
the tax administrator, has not been paid on the date when it is due and
payable, whether the time has been extended or not, there shall be added as
part of the tax or portion or deficiency interest at the rate as determined in
accordance with subsection (b) of this section, notwithstanding any general or
specific statute to the contrary.
(b)
Each January 1 the tax administrator shall compute the rate of interest to be
in effect for that calendar year by adding two percent (2%) to the prime rate,
which was in effect on October 1 of the preceding year. In no event shall
the rate of interest exceed twenty-one percent (21%) per annum nor be less than
eighteen percent (18%) per annum.
(c)
"Prime rate" as used in subsection (b) of this section means the
predominant prime rate quoted by commercial banks to large businesses as
determined by the board of governors of the Federal Reserve System. In no
event shall the rate of interest exceed twenty-one percent (21%) per annum nor
be less than twelve percent (12%) per annum. The resultant sum is the interest
rate referred to in subsection (a) of this section and in § 44-1-7.1.
SECTION
3. Section 44-1-7.1 of the General Laws
in Chapter 44-1 entitled “State Tax Officials” is hereby amended to read as
follows:
44-1-7.1. Interest on overpayments. – (a)
Each January 1 the tax administrator shall compute the rate of interest to be
in effect for that calendar year by reference to the prime rate, which was in
effect on October 1 of the preceding year.
The term “prime rate” shall mean the predominant prime rate quoted by
commercial banks to large businesses as determined by the board of governors of
the Federal Reserve System.
(b)
Notwithstanding any general or specific statute to the contrary, overpayments
of state taxes shall bear interest at the prime rate provided as
defined in § 44-1-7.1(a) from the date the tax was paid, or from the
date including any extensions of the date the tax became due, whichever of the
dates occurs later.
(b)
(c) If any overpayment of state tax is refunded within ninety (90) days
after the last date prescribed (or permitted by extension of time) for filing
the return of the tax, or within ninety (90) days after the return is in fact
filed, no interest shall be allowed under this section on the overpayment.
(c)
(d) For the purposes of this section, if any overpayment of state tax
results from a carry-back of a net operating loss, the overpayment is deemed
not to have been made prior to the close of the taxable year in which the net
operating loss arises.
SECTION 4. Sections 1 and 3 shall take effect as of
July 1, 2006. Section 2 shall take
effect as of October 1, 2006.
ARTICLE 22 SUBSTITUTE A
Relating To Fuel Use Reporting Law
SECTION 1. Sections 31-36.1-1,
31-36.1-2, 31-36.1-3, 31-36.1-4, 31-36.1-5, 31-36.1-6, 31-36.1-7, 31-36.1-8, 31-36.1-9,
31-36.1-10, 31-36.1-11, 31-36.1-12, 31-36.1-13, 31-36.1-14, 31-36.1-15,
31-36.1-16, 31-36.1-17 and 31-36.1-18 31-36.1-19 of the General Laws in
Chapter 31-36.1 entitled "FUEL USE REPORTING LAW" are hereby amended
to read as follows:
31-36.1-1. Statement of purpose. -- The purpose of
this chapter is to assure the payment of tax on fuel consumed by motor carriers
in propelling qualified motor vehicles on the public highways in Rhode
Island.
31-36.1-2. Definitions. -- Terms used in this
chapter shall be construed to have the meanings provided for in section 31-36-1
and as follows:
(1) "Administrator" means the tax
administrator.
(2) "Bond" means:
(i) A bond duly executed by a motor carrier
as principal with a corporate surety qualified under the provisions of the laws
of this state, which bond shall be payable to this state, conditioned upon the
basic performance of all requirements of this chapter, including the payment of
all taxes, penalties and other obligations of the motor carrier arising out of
this tax; or
(ii) A deposit with the state treasury by the
motor carrier under any terms and conditions that the administrator may
prescribe, in like amount of lawful money of the United States or bonds, or
other obligations of the United States, this state, or any county of this
state, of an actual market value not less than the amount so fixed by the
administrator.
(3)
"Jurisdiction" means a state of the United States of America, the
District of Columbia, a province or territory of Canada, or a state of the
United Mexican States.
(4) "Motor
carrier" means every person, association of persons, firm, or corporation,
or any other legal entity, wherever resident or located, who operates or
causes to be operated covered qualified motor vehicles on the
public highways of this state.
(3) (i) (5) "Covered
Qualified motor vehicles" means a motor vehicle that is used,
designed or maintained for transportation of persons or property and that:
(A) Has Having two axles and a
gross vehicle weight or registered gross vehicle weight exceeding twenty-six
thousand pounds (26,000 lbs.) or 11,797 kilograms; or
(B) Has Having three (3) or
more axles regardless of weight; or
(C) Is used in combination and the
combined gross vehicle weight or registered gross vehicle weight, when
the weight of such combination exceeds twenty-six thousand pounds (26,000
lbs.) or 11,797 kilograms gross vehicle or registered gross vehicle weight.
Qualified motor vehicle does not include recreational vehicles.
(ii) "Covered motor vehicle"
does not include a recreation vehicle that is used exclusively for personal
pleasure, and not used in connection with any trade or business, by an
individual.
(6) "Recreational
vehicle" means vehicles such as motor homes, pickup trucks with attached
campers, and buses when used exclusively for personal pleasure by an
individual. In order to qualify as a recreational vehicle, the vehicle shall
not be used in connection with any business endeavor.
(5) (7) "Use" means
the consumption by a motor carrier of fuels in the propulsion of covered
qualified motor vehicles over the highways of this state unless the fuel
consumed is specifically excluded by law from the tax.
31-36.1-3. Motor carrier license and identification -- Temporary
licenses. -- (a) Each carrier operating a
qualified motor vehicle in two (2) or more jurisdictions shall apply to the
administrator for a motor carrier fuel use license upon forms approved by the
administrator and shall upon application, pay a license fee of ten dollars
($10.00). The license shall remain in effect until surrendered or revoked under
the provisions of section 31-36.1-4. The tax administrator shall, in addition,
provide identification devices in the quantity requested to each licensed motor
carrier. One such device must be displayed on the left side exterior
portion of each side of the cab of each covered qualified
motor vehicle. The fee for each such identification device shall
be ten dollars ($10.00) per qualified motor vehicle. Identification
devices shall be issued each year by the administrator and shall be displayed
on or before April March 1 provided, that this requirement
shall only be enforced ninety (90) days following the availability of the
identification devices in the office of the administrator.
(b) The administrator may refuse to issue a
license if the application for it:
(1) Is filed by a motor carrier whose license
at any time theretofore has been revoked by the administrator.
(2) Contains any misrepresentation,
misstatement, or omission of material information required by the application.
(3) Is filed by some other motor carrier as a
subterfuge of the real motor carrier in interest whose license or registration
previously has been revoked for cause by the administrator.
(4) Is filed by any motor carrier who is
delinquent in the payment of any fee, tax, penalty, or other amount due the
administrator for its account.
The finding may be made by the administrator
after granting the applicant a hearing of which the applicant shall be given
ten (10) days notice in writing, and in which the applicant shall have the
right to appear in person or by counsel and present testimony.
(c) Temporary license. - Upon application to
the administrator and payment of a fee of ten dollars ($10.00), an unlicensed
motor carrier may obtain a temporary license which will authorize one covered
qualified motor vehicle to be operated on the highways of this state,
for a period not to exceed ten (10) days, without compliance with the fees
imposed at in this section, the tax imposed at in
section 31-36.1-5, and the bond required at in section 31-36.1-6.
(d) The administrator may adopt rules and
regulations specifying the conditions under which temporary licenses will be
issued and providing for their issuance.
31-36.1-4. Motor carrier license and identification revocation. --
The administrator may revoke the license and identification devices of a
motor carrier which refuses or neglects to comply with any provision of this
chapter or any regulation pursuant to this chapter. Before revoking the license
and identification devices, the administrator shall send notice by
registered or certified mail to the licensee at his or her address of record
ordering the licensee to appear in the office of the administrator on a date
not less than ten (10) days after mailing the notice, and show cause why the
licensee's license and identification devices should not be revoked.
31-36.1-5. Imposition of tax. -- There is
levied and imposed upon motor carriers a tax at the rate specified in section
31-36-7, including the additional excise tax provision in it, on the use
of fuel for the propulsion of covered qualified motor vehicles on
the public highways within this state. The tax, with respect to fuel purchased
instate, shall be paid at the time of purchase as provided in chapter 36 of
this title. The tax, with respect to fuel purchased outside this state shall be
paid when the quarterly reports returns required in section
31-36.1-11 are filed with the administrator.
31-36.1-6. Bond requirement. -- (a) The
license required by section 31-36.1-3 shall not be issued until the applicant
has filed with the administrator a surety bond on which the applicant shall be
the principal obligor and the state be the obligee. The bond shall be in the
sum of approximately two (2) times the highest quarterly fuel tax estimated by
the administrator, but not exceeding ten thousand dollars ($10,000). The bond
shall be conditioned upon the motor carrier faithfully complying with the
provisions of this chapter, and the prompt filing of true reports and payments
by the motor carrier of all fuel taxes and fees due under this chapter,
together with all penalties and interest on it. The administrator may accept
cash or other obligations as defined in section 31-36.1-2(2) in lieu of
security.
(b) If the liability upon a bond filed by a
motor carrier with the administrator becomes discharged or reduced, whether by
judgment rendered, payment made, or otherwise, the administrator may require
the motor carrier to file a new bond, with satisfactory sureties, in the same
amount, and upon failure to do so, the administrator shall immediately revoke
the license of that motor carrier.
(c) If a motor carrier fails or refuses to
furnish additional bond as required by the administrator within thirty (30)
days after written notice mailed to this address of record in the office of the
administrator, its license shall immediately be revoked.
(d) Notwithstanding provisions to the
contrary, the tax administrator, pursuant to rules and regulations adopted by
the tax administrator, in his or her discretion, may waive the bond
requirements set forth in this section. require a motor carrier to post
a bond. Such bond shall be consistent with the provisions of the International
Fuel Tax Agreement.
31-36.1-7. Discharge of surety. -- Any surety on
a bond furnished by a motor carrier shall be discharged from any liability to
the state accruing on the bond after expiration of sixty (60) days from the
date which the surety shall have filed with the administrator a written request
to be released and discharged, but not from liability already accrued before
the expiration of the sixty (60) day period. The administrator, upon receipt of
the request, shall promptly notify the motor carrier who furnished the bond in
question. Unless the motor carrier, prior to the expiration of the sixty (60)
day period, files a new bond satisfactory to the administrator, the
administrator shall immediately revoke the motor carrier's license and
identification devices.
31-36.1-8. Records. -- (a) Each motor
carrier shall make available in this state and retain for a period of
not less than three (3) four (4) years, any records that may be
prescribed and in the manner required by the administrator or the
International Fuel Tax Agreement, as are reasonably necessary to
substantiate the quarterly reports returns required by section
31-36.1-11. The administrator or the administrator's agents may examine the
books, papers, records, and equipment of any motor carrier during normal
business hours in order to determine whether the special motor fuel
taxes due under this chapter are properly reported and paid. If the records
required by this section are not maintained instate, the motor carrier shall
either produce the records at a point instate for audit purposes, or provide
transportation and reasonable substance for an auditor to audit the records at
that point where the records are maintained by the motor carrier.
(b) Each sale of fuel shall be recorded
upon a pre-printed serial numbered invoice. A sales invoice shall contain the
following information:
(1) The name and address of the seller;
(2) The name of the purchasing motor carrier;
(3) The date of the sale or delivery; and
(4) The number of gallons of fuel purchased,
the price per gallon, the amount of fuel tax collected, and the total amount of
the sale.
(c) The sale invoice shall, upon payment by
the purchaser, constitute a receipt for the amount of special fuels tax
collected by the seller. A copy of the invoice shall be retained by the
purchaser for not less than three (3) years. It shall be the responsibility of
the seller to supply proper receipts in accordance with this section.
31-36.1-10. Calculation of amount of fuel used in state. --
The amount of fuel used in the operations of any motor carrier on highways within
this state, shall be the proportion of the total amount of the fuel used in its
entire operations within and without this state, as the total number of miles
traveled on highways within this state bears to the total number of miles
traveled within and without this state.
31-36.1-11. Report requirements. – Return requirements. --
(a) Every motor carrier subject to the tax imposed by this chapter shall
on or before the last day of April, July, October, and January of every year
make to the administrator any reports returns of its operations
during the quarter ending the last day of the preceding month that the
administrator may require and any other reports from time to time that the
administrator may deem necessary.
(b) The administrator by regulation may
exempt from the quarterly reporting requirements of this section those motor
carriers operating solely within Rhode Island, and require in that instance an
annual affidavit, if in its discretion the enforcement of this chapter would
not be adversely affected by the regulation.
(c) The administrator is authorized to exempt
from the quarterly reporting requirements of this section, and require in those
instances an annual affidavit of motor carriers licensed in this state who
perform substantially all of their travel in this state provided the
administrator is assured that a sufficient amount of fuel is purchased in this
state which is commensurate with the motor carrier's operations on highways
within this state.
(d) The administrator is authorized to exempt
from the quarterly reporting requirements of this section those motor carriers
whose total tax in a quarter is less than fifty dollars ($50.00).
31-36.1-12. Inspection of books and records by administrator -- Agreements
with other jurisdictions for cooperative audits. --
(a) The tax administrator and the administrator's authorized agents and
representatives may, at any reasonable time, inspect the books and records of
any motor carrier subject to the tax imposed by this chapter. The administrator
may enter into agreements with the appropriate authorities of other
jurisdictions having statutes similar to this chapter for the cooperative audit
of motor carrier reports and returns.
(b) In performing the audit or part of it,
the officers and employees of the other jurisdiction or jurisdictions shall be
deemed authorized agents of this state for that purpose, and the audits or
parts of it shall have the same effect as similar audits or parts of them made
by the department division of taxation.
31-36.1-13. Computation of tax by administrator. --
(a) If the administrator is not satisfied with any report or return of a motor
carrier subject to the tax imposed by this chapter, or with the amount of the
tax to be paid by the motor carrier, the administrator may compute and assess
the amount of the tax on the basis of facts contained in the report and return
or on the basis of any other information available to the administrator. One or
more deficiency assessments may be made with respect to any return for the tax
imposed by this chapter.
(b) The amount of the deficiency assessment,
exclusive of penalties, shall bear interest at the annual rate provided by
section 44-1-7, as amended, from the last day of the month succeeding the
quarterly period for which the amount of any portion of it should have been
returned until the date of payment.
(c) If any part of the deficiency for which a
deficiency assessment is made is due to negligence or intentional disregard of
the provisions of this chapter, a penalty of ten percent (10%) of the amount of
the deficiency assessment shall be added to it. If any part of the deficiency
for which a deficiency assessment is made is due to fraud or intent to evade
the provisions of this chapter, a penalty of twenty-five percent (25%) fifty
percent (50%) of the amount of the deficiency assessment shall be added to
it.
(d) The administrator shall give written
notice to any motor carrier of the deficiency assessment. If the notice is
served by mail, it shall be addressed to the motor carrier at the address
appearing in the records of the department division of taxation.
Except in the case of fraud, intent to evade the provisions of this chapter, or
failure to submit a return, the notice of a deficiency assessment shall be
mailed within three (3) years after the last day of the month following the
quarterly period for which the amount is assessed or within three (3) years
after the return for the period is filed, whichever is later.
(e) If, prior to the expiration of the time
prescribed in subsection (d) of this section for the mailing of the notice of a
deficiency assessment, the taxpayer has consented in writing to the mailing of
notice after that time, the notice may be mailed at any time prior to the
expiration of the period agreed upon for the mailing. The period agreed upon
may be extended by subsequent agreements in writing made before the expiration
of the period.
31-36.1-14. Average consumption. -- In the absence
of adequate records or other evidence satisfactory to the administrator,
showing the number of miles operated by a motor carrier's covered qualified
motor vehicles per gallon of motor fuel, the motor vehicle shall be deemed to
have consumed one gallon of motor fuel for each five (5) four (4)
miles operated, as prescribed by the International Fuel Tax Agreement.
31-36.1-15. Credit on tax -- Refund. --
(a) Every motor carrier shall be entitled to a credit on the tax equivalent to
the rate per gallon of the tax in effect under chapter 36 of this title, including
the additional excise tax provision in it, on all motor fuel purchased by
the carrier within this state for use in its operations without this state and
upon which motor fuel the tax imposed by the laws of this state has been paid by
the carrier. Evidence of the payment of the tax in any form that may be
required by, or is satisfactory to, the state tax administrator, shall, be
furnished by the carrier claiming the credit allowed in this chapter.
(b) When the amount of the credit provided in
this chapter, to which any motor carrier is entitled for any quarter exceeds
the amount of the tax for which the carrier is liable for the same quarter, the
excess may, under the regulations of the tax administrator and the
International Fuel Tax Agreement be allowed as a credit on the tax for
which the carrier would be otherwise liable for any of the four (4) eight
(8) succeeding quarters.
(c) Whenever any motor carrier has
incurred liability to another state in any quarter for a tax, similar in effect
to the tax provided in this chapter, on the use or consumption in the state,
during the quarter, of motor fuel purchased in Rhode Island, the carrier may
file, within one year from the due date for the quarter, an application
verified and presented, in accordance with regulations promulgated by the tax
administrator and supported by any evidence that may be satisfactory to the tax
administrator, for a refund of the excess to the extent of the payment to the
other state, but in no case to exceed the rate per gallon of the Rhode Island
motor fuel tax which is currently in effect. The license shall receive,
on request, a cash refund of any accumulated credits. All requests for refunds
of credit balances must be filed in writing.
31-36.1-16. Reciprocity. -- (a) The provisions
of this chapter shall not apply to covered motor vehicles bearing the
registration plates of any other state which does not impose a tax, license, or
fee, upon covered motor vehicles bearing valid registration plates of this
state. The administrator is authorized to make reciprocal agreements with the
proper officials of any other state imposing any such tax, license, or fee,
providing for the reduction or relief from the tax imposed by this chapter upon
covered motor vehicles bearing valid registration plates of the other state, in
exchange for the reduction or relief from the tax, license, or fee imposed by
the other state upon covered motor vehicles bearing valid registration plates
of this state.
(b) The tax administrator may enter
the International Fuel Tax Agreement or other cooperative compacts or
agreements with other states or jurisdictions to permit base state or base
jurisdiction licensing of persons using motor fuel in this state. Those agreements
may provide for the cooperation and assistance among member states in the
administration and collection of motor fuel tax, including, but not limited to,
exchanges of information, auditing and assessing of interstate carriers and
suppliers, and any other activities necessary to further uniformity.
31-36.1-17. Penalties. -- (a) Any motor carrier
failing to secure or display upon demand the license or identification device
required in section 31-36.1-3, or under the International Fuel Tax Agreement
shall be guilty of a civil violation and subject to a fine not exceeding: (1)
seventy-five dollars ($75) for the first offense and (2) not exceeding one
hundred dollars ($100) for subsequent offenses. Any motor carrier willfully
violating any other provisions of this chapter shall be deemed guilty of a
civil violation and subject to a fine not exceeding one hundred dollars ($100)
for the first offense and not exceeding five hundred dollars ($500) for
subsequent offenses.
(b) Filing of a false statement to obtain
credit or refund. Any person who willfully and knowingly makes a false
statement orally, in writing, or in the form of a receipt for the sale of motor
fuel, for the purpose of obtaining, attempting to obtain, or to assist any
other person, partnership, or corporation to obtain or attempt to obtain a
credit or refund or reduction of liability for taxes under this chapter, shall
be fined not less than five thousand dollars ($5,000) nor more than ten
thousand dollars ($10,000), or be imprisoned not more than one year, or both.
(c) Failure to file report return
or pay tax. - When any motor carrier fails to file a report return
within the time prescribed by this chapter for the filing of it or fails to pay
the amount of taxes due when they are payable, a penalty of ten percent (10%)
or ten dollars ($10.00) fifty dollars ($50.00), whichever is
greater, shall be added to the amount of the tax due, and the penalty shall
immediately accrue, and the tax shall bear interest at the annual rate provided
by section 44-1-7, as amended, until the tax is paid. The tax administrator may
waive all or part of the penalties provided in this chapter when it is proved
to the tax administrator's satisfaction that the failure to file the report
return or pay the taxes on time was due to reasonable cause.
31-36.1-18. Disposition of proceeds. --
All money collected under the provisions of this chapter shall be used in
accordance with the provisions of section 31-36-20. deposited as general
revenues.
SECTION 2. This article
shall take effect on June 30, 2006.
ARTICLE 23 SUBSTITUTE A
Relating To Registration of Vehicles
SECTION 1. Section 31-3-6.2 of the General Laws in
Chapter 31-3 entitled “Registration of Vehicles” is hereby amended to read as
follows:
§ 31-3-6.2. List of vehicles and licenses on which court costs owed
delinquent – Denial of renewal of registration and licenses. – (a)
The administrator/division of motor vehicles shall furnish to the State Court
Administrator a listing showing the names, addresses and social security
numbers of persons whose operator's license and/or motor vehicle registration
is subject to renewal within ninety (90) days. If within ninety (90) days prior
to the renewal date the state court administrator determines that any person seeking
to renew his/her operator's license and/or registration has neglected or
refused to pay any court costs owed, as defined in § 44-30.1-1(b), cash
assistance benefit overpayments, court costs owed, fines owed, obligations owed
or restitution owed, as such terms are defined in § 44-30.1-1, the state
court administrator shall send a written notice to such person informing
him/her of the state court administrator's intention to inform the division of
motor vehicles not to renew the person's operator license and/or motor vehicle
registration and of the procedures available to the person to contest the
determination. For the purposes of
this section, the terms cash assistance benefit overpayments, court costs owed,
fines owed, obligations owed or restitution owed by a debtor as defined in §
44-30.1-1, are referred to as “costs owed”.
(b) Within twenty-one
(21) days from the date of such notice, the licensee or registrant may request,
in writing, a conference with the state court administrator or his/her designee,
in order to show proof of payment of all court costs owed, as defined
in § 44-30.1-1(b), or for the purpose of entering into a time payment
agreement for the delinquent court costs owed satisfactory to the state
court administrator.
(c) If upon the expiration
of twenty-one (21) days from the date of the notice to the licensee or
registrant or, if a conference has been requested, after a conference has been
held, the licensee or registrant has not demonstrated to the satisfaction of
the state court administrator that he/she has paid all required court
costs owed, as defined in § 44-30.1-1(b), or that the licensee or
registrant has not entered into time payment arrangement satisfactory to the
state court administrator, the state court administrator shall notify the
administrator/division of motor vehicles that the licensee or registrant is
delinquent in paying court costs owed, as defined in § 44-30.1-1(b).
The state court administrator shall send a copy of the notification to the
licensee or registrant.
(d) The
administrator/division of motor vehicles shall not renew any operator's license
or registration upon expiration thereof until all state court costs owed,
as defined in § 44-30.1-1(b), have been paid in full or the licensee or
registrant has entered into a time payment agreement satisfactory to the state
court administrator.
(e) If the licensee
thereafter files an overdue return and/or remits past taxes due or enters
into a satisfactory
time payment agreement with respect to any and all returns due and taxes
payable, the tax administrator shall, within five (5) business days of a
licensee's request, provide the appropriate agency or authority the certificate
of good standing specified in § 5-76-5. Within five (5) business days of
receiving such a certificate, the agency or authority shall reinstate, reissue,
renew or otherwise extend the licensee's license.
SECTION 2. This article shall take effect upon passage.
ARTICLE 24 SUBSTITUTE A AS AMENDED
Relating To Tuition Tax Credits
SECTION 1. Title 44 of
the General Laws entitled "Taxation" is hereby amended by adding
thereto the following chapter:
CHAPTER 44-62
TAX CREDITS FOR CONTRIBUTIONS
TO SCHOLARSHIP ORGANIZATIONS
§ 44-62-1. Tax credit for contributions to a scholarship organization. –
General
In order to enhance
the educational opportunities available to all students in this state, a
business entity will be allowed a tax credit
to be computed as provided in this chapter for voluntary cash contribution made by the business entity to a
qualified scholarship.
§ 44-62-2. Qualification of scholarship organization. – A scholarship
organization must certify annually by December 31st to the division of taxation
that the organization is eligible to participate in the program in accordance
with criteria as defined below:
(a) "Scholarship
organization" means a charitable organization in this state that is exempt
from federal taxation under section 501 (c)(3) of the internal revenue code,
and that allocates at least ninety percent (90%) of its annual revenue through
a scholarship program for tuition assistance grants to eligible students to
allow them to attend any qualified school of their parents' choice represented
by the scholarship organization.
(b) "Scholarship program" means a
program to provide tuition assistance grants to eligible students to attend a
nonpublic school located in this state. A scholarship program must include an
application and review process for the purpose of making these grants only to
eligible students. The award of scholarships to eligible students shall be made
without limiting availability to only students of one school.
(c) "Eligible
student" means a school-age student who is registered in a qualified
school and is a member of a household with an annual household income of not
more than two hundred fifty percent (250%) of the federal poverty guidelines as
published in the federal register by the United States department of health and
human services.
(d)
"Household" means one or more persons occupying a dwelling unit and
living as a single nonprofit housekeeping unit. Household does not mean bona
fide lessees, tenants, or
roomers and borders on
contract.
(e) "Household
income" means all income received by all persons of a household in a
calendar year while
members of the household.
(f) "Income"
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 (see 45 U.S.C. section 231 et seq.) benefits, 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 (see 38
U.S.C. section 301 et seq.), 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.
(g) "Qualified
school" means a nonpublic elementary or secondary school that is located
in this state and that satisfies the requirements prescribed by law for
nonpublic schools in this state.
(h) "School-age
student" means a child at the earliest admission age to a qualified
school's kindergarten program or, when no kindergarten program is provided, the
school's earliest admission age for beginners, until the end of the school
year, the student attains twenty-one (21) years of age or graduation from high
school whichever occurs first.
(i) Designation. A
donation to a scholarship organization, for which the donor receives a tax
credit under this provision, may not be designated to any specific school or
student by the donor.
(j) Nontaxable income.
A scholarship received by an eligible student shall not be considered to be
taxable income.
§ 44-62-3. Application for the tax credit program. – (a)
Prior to the contribution, a business entity shall apply in writing to the
division of taxation. The application
shall contain such information and certification as the tax administrator deems
necessary for the proper administration of this chapter. A business entity shall be approved if it
meets the criteria of this chapter; the dollar amount of the applied for tax
credit is no greater than one hundred thousand dollars ($100,000) in any tax
year, and the scholarship organization which is to receive the contribution has
qualified under section 44-62-2.
(b) Approvals for
contributions under this section shall be made available by the division of
taxation on a first-come-first-serve basis.
The total aggregate amount of all tax credits approved shall not exceed
one million dollars ($1,000,000) in a fiscal year.
(c) The division of
taxation shall notify the business entity in writing within thirty (30) days of
the receipt of application of the division's approval or rejection of the
application.
(d) Unless the
contribution is part of a two-year plan, the actual cash contribution by the
business entity to a qualified scholarship organization must be made no later
than one hundred twenty (120) days following the approval of its
application. If the contribution is
part of a two-year plan, the first year’s contribution follows the general rule
and the second year’s contribution must be made in the subsequent calendar year
by the same date .
(e) The contributions
must be those charitable contributions made in cash as set forth in the
Internal Revenue Code.
§ 44-62-4. Calculation of tax credit and issuance of tax credit
certificate. -- (a)
When the contribution has been made as set forth in section 3 above, the
business entity shall apply to the division of taxation for a tax credit
certificate. The application will
include such information, documentation, and certification as the tax
administrator deems proper for the administration of this chapter including,
but not limited to a certification by an independent Rhode Island certified
public accountant that the cash
contribution has actually been made to the qualified scholarship organization.
For purposes of the proper administration of this section, an independent Rhode
Island certified public accountant shall be licensed in accordance with RIGL
5-3.1 and means a person, partnership, corporation, limited liability
corporation that is not affiliated with or an employee of said business entity
or its affiliates and is not affiliated in any manner whatsoever with a
qualified scholarship organization or scholarship program as defined in §
42-62-2 (a) through(j).
(b) The division of
taxation will review the documentation submitted; calculate the tax credit
pertaining to the contribution, and prepare and mail a certificate for amount
of credit to be granted.
(c) Unless a two year contribution
plan is in place, the credit, is
computed at seventy-five percent (75%) of the total voluntary cash contribution
made by the business entity.
(d) The credit is
available against taxes otherwise due under provisions of chapters 11, 13, 14,
15 or 17 of this title.
(e) (1) A two year contribution plan is based
on the written commitment of the business entity to provide the scholarship
organization with the same amount of contribution for two (2) consecutive tax
years. The business entity must provide in writing a commitment to this
extended contribution to the scholarship organization and the division of
taxation at the time of application.
(2) In the event that
a two year contribution plan is in place, the calculation of credit for each
year shall be ninety percent (90%) of the total voluntary contribution made by
a business entity
(3) In the event that,
in the second year of the plan, a business entity's contribution falls below
the contribution amount made in the first year but the second year's
contribution is eighty percent (80%) or greater than the first year's
contribution, the business entity shall receive a credit for both the first and
second year contributions equal to ninety percent (90%) of each year's
contribution.
(4) If the amount of
the second year contribution is less than eighty percent (80%) of the first
year contribution, then the credit for both the first and second year
contributions shall be equal to seventy-five percent (75%) of each year's
contribution. In such case, the tax
administrator shall prepare the tax credit certificate for the second year at
seventy-five percent (75%). The
difference in credit allowable for the first year [90% - 75% = 15% x first year
contribution] shall be recaptured by adding it to the taxpayer's tax in that
year.
§ 44-62-5. Limitations. -- (a) The credit shall
not exceed one hundred thousand dollars ($100,000) annually per business
entity.
(b) The tax credit
must be used in the tax year the contribution was made. Any amounts of unused tax credit may not be
carried forward. The tax credit is not
refundable, assignable or transferable.
The tax credit may not reduce the tax below the state minimum tax.
(c) The credit allowed
under this chapter is only allowed against the tax of that corporation included
in a consolidated return that qualifies for the credit and not against the tax
of other corporations that may join in the filing of a consolidated tax return.
§ 44-62-6. Definitions. – The following words
and phrases used in this chapter shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
(1) "Business
entity" means an entity authorized to do business in this state and
subject to taxes imposed under chapters 44-11, 44-13, 44-14, 44-15 and 44-17 of
the general laws.
(2) "Division of
taxation" means the Rhode Island division of taxation.
§ 44-62-7. Miscellaneous – Lists. – By June 30 of each year, the division of taxation shall annually publish in print and on the division of taxation’s website a list of all qualified scholarship organizations under 44-62-4. The list will indicate which scholarship organizations received contributions from business entities for which tax credits were authorized under this chapter. In addition, each scholarship organization shall submit to the division of taxation by December 31st of each year the following information, which shall be a public record: the number of scholarships distributed by the organization, per school, and the dollar range of those scholarships; a breakdown by zip code of the place of residence for each student receiving a scholarship under this program; and a description of all criteria used by the organization in determining to whom scholarships under this program shall be awarded.
SECTION 2. This article
shall take effect as of January 1, 2007.
ARTICLE 25 SUBSTITUTE A AS AMENDED
RELATING TO MEDICAL ASSISTANCE -- MANAGED
CARE
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 § 1931 of title XIX of the Social Security Act [42 U.S.C. § 1396u-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 parents or relative caretakers whose income levels are
below one hundred eighty-five percent (185%)
of the federal poverty level.
(c) Resources. Resources shall
be disregarded in determining eligibility under this chapter. Except as
provided herein, no family or child shall be eligible for medical assistance
coverage provided under this section if
the combined value of the child’s or the family’s liquid resources exceed ten
thousand dollars ($10,000); provided, however, that this subsection shall not
apply to:
(1) children with
disabilities who are otherwise eligible for medical assistance coverage as
categorically needy under Section 134(a) of the Tax Equity and Fiscal Responsibility
Act of 1982 [federal P.L. 97-248], commonly known as Katie Beckett eligible,
upon meeting the requirements established in Section 1902 (e)(3) of the federal
Social Security Act; and
(2) pregnant
women.
Liquid Resources are
defined as any interest(s) in property in the form of cash or other financial
instruments or accounts which are readily convertible to cash or cash
equivalents. These include, but are not limited to: cash, bank, credit union or
other financial institution savings, checking and money market accounts,
certificates of deposit or other time deposits, stocks, bonds, mutual funds,
and other similar financial instruments or accounts. These do not include
educational savings accounts, plans, or programs; retirement accounts, plans,
or programs; or accounts held jointly with another adult, not including a
spouse, living outside the same household but only to the extent the applicant/recipient family documents
the funds are from sources owned by the other adult living outside the household,
plus the proportionate share of any interest, dividend or capital gains
thereon. The department is authorized to promulgate rules and regulations to
determine the ownership and source of the funds in the joint account.
(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 RIte Care Program or under the premium assistance program under §
40-8.4-12, in a manner and at an amount consistent with comparable cost-sharing
provisions under § 40-8.4-12, provided that such cost sharing shall not exceed
five percent (5%) of annual income; and provided, further, that cost-sharing
shall not be required for pregnant women or children under age one.
§ 40-8.4-12. RIte Share Health Insurance Premium Assistance Program. –
(a) Basic RIte Share Health Insurance
Premium Assistance Program.
(1)
The department of human services is authorized and directed to amend the
medical assistance Title XIX state plan to implement the provisions of § 1906
of Title XIX of the Social Security Act [42 U.S.C. § 1396e] and establish the
Rhode Island health insurance premium assistance program for RIte Care 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 RIte Share 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 §
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. §
1396 et seq.].
(2) Resources. Except as provided
herein, no family, individual, or child shall be eligible for medical
assistance coverage provided under this section if the combined value of the
child’s or family’s liquid resources exceeds ten thousand dollars ($10,000);
provided, however, that this subsection shall not apply to:
(i) children with
disabilities who are otherwise eligible for medical assistance coverage as
categorically needy under Section 134(a) of the Tax Equity and Fiscal
Responsibility Act of 1982 [federal P.L. 97-248], commonly known as Katie
Beckett eligible, upon meeting the requirements established in Section 1902
(e)(3) of the federal Social Security Act, and
(ii) pregnant
women.
(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. § 1396 et seq.], to require that
individuals eligible for RIte Care 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 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 RIte Care enrollees with access
to employer-based health insurance. The department of human services shall
require any individual who receives RIte Care or whose family receives RIte
Care 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. § 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 RIte Care eligible persons by the RIte Care
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 RIte Care as supplemental benefits
those benefits not reasonably available under employer-based health insurance
plans which are required for RIte Care 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. Section
42-12.3-4 of the General Laws in Chapter 42-12.3 entitled “Health Care for
Children and Pregnant Women” is hereby amended to read as follows:
§ 42-12.3-4. "RIte track" program. -
(a) There is hereby established a payor of last resort program for
comprehensive health care for children until they reach nineteen (19) years of
age, to be known as "RIte track". The department of human services is
hereby authorized to amend its title XIX state plan pursuant to title XIX [42
U.S.C. § 1396 et seq.] of the Social Security Act to provide for expanded
Medicaid coverage through expanded family income disregards for children, until
they reach nineteen (19) years of age, whose family income levels are up to two
hundred fifty percent (250%) of the federal poverty level; provided, however,
that health care coverage under this section shall also be provided without
regard to the availability of federal financial participation to a noncitizen
child lawfully residing in the United States and to a noncitizen child residing
in Rhode Island, provided that the child satisfies all other eligibility
requirements. The department is further authorized to promulgate any
regulations necessary, and in accord with title XIX [42 U.S.C. § 1396 et seq.]
of the Social Security Act to implement the state plan amendment. For those
children who lack health insurance, and whose family incomes are in excess of
two hundred fifty percent (250%) of the federal poverty level, the department
of human services shall promulgate necessary regulations to implement the
program. The department of human services is further directed to ascertain and
promulgate the scope of services that will be available to those children whose
family income exceeds the maximum family income specified in the approved title
XIX [42 U.S.C. section 1396 et seq.] state plan amendment.
(b) Resources. Except as provided
herein, no child shall be eligible for medical assistance coverage provided
under this section if the combined value of
the child’s or the family’s liquid resources exceeds ten thousand
dollars ($10,000); provided, however, that this subsection shall not apply to
children with disabilities who are otherwise eligible for medical assistance
coverage as categorically needy under Section 134(a) of the Tax Equity and
Fiscal Responsibility Act of 1982 [federal P.L. 97-248], commonly known as
Katie Beckett eligible, upon meeting the requirements established in Section
1902 (e)(3) of the federal Social Security Act.
SECTION 3. This
article shall take effect on July 1, 2006.
ARTICLE 26 SUBSTITUTE A
Relating To Health Care Quality Program
SECTION 1. Section 23-17.17-7 of the General Laws in
Chapter 23-17.17 entitled “Health Care Quality Program” is hereby repealed.
§ 23-17.17-7. Rhode Island hospital efficiency, leverage and profitability
(RI HELP) program. – (a) There is
established in the department of health a program to provide state assistance
to those Rhode Island hospitals that have the greatest need for assistance
relative to all hospitals.
(b) Establishment of
indices. Three (3) indices shall be established to determine eligibility of the
program. Using 2004 data as reported in "The Health of RI's Hospitals
(2004) " (Report), each hospital shall be ranked by each index and any
hospital that meets the requirements on at least two (2) of the three (3)
indices shall be eligible to receive assistance. The General Assembly may from
time to time change the year from which data is used to determine eligibility
for the RI HELP program. The three (3) indices are established as follows:
(1) Efficiency. This
shall be computed by determining the Total Asset Turnover and Fixed Asset
Turnover of each hospital. Any hospital with a total rating above zero (0) as
displayed in the Report, Chart 9, shall meet the requirements for this index.
(2) Leverage. This
shall be computed by determining the Debt to capitalization ratio and the Debt
Service Coverage ratio for each hospital. Any hospital with a total rating less
than zero (0) as displayed in the Report, Chart 8, shall meet the requirements
for this index.
(3) Profitability.
This shall be computed by determining the average Profit Margin for each
hospital for the previous three (3) fiscal years (2002, 2003, 2004). Any
hospital with a three (3) year average rating below negative three percent
(-3.0%) as calculated from the data in the Report, Table 1, shall meet the
requirements for this index.
(c) Distribution of
funds. Funds shall be distributed to each eligible hospital on the basis of the
ratio of each eligible hospital's inpatient discharges in 2004 to the sum of
all eligible hospitals' inpatient discharges in 2004.
(d) Appropriation of
funds. Funds for this program are subject to appropriation by the General
Assembly, and may be ratably reduced at any time the General Assembly
determines that insufficient funding is available to pay the full amount due to
all hospitals that are determined to be eligible for assistance under this
program. The budget appropriation for FY 2006 is set at three million three
hundred thousand dollars ($3,300,000).
(e) Payments. Payments
shall be made to eligible hospitals on or before December 31 of each year that
funds are appropriated for this program by the General Assembly.
SECTION 2. This article shall take effect as of July 1,
2006.
ARTICLE 27 SUBSTITUTE A AS AMENDED
RELATING TO UNDERGROUND STORAGE TANK
FINANCIAL RESPONSIBILITY FUND REVIEW BOARD
SECTION 1. Section 42-17.1-2 of the General Laws in
Chapter 42-17.1 entitled “Department of Environmental Management” is hereby
amended to read as follows:
§ 42-17.1-2. Powers and duties. – The director of
environmental management shall have the following powers and duties:
(a) 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;
(b) To exercise all
functions, powers, and duties 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
branches, 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 as heretofore vested by such of the
following chapters and sections of the general laws as are presently applicable
to the department of environmental management and which were previously applicable
to the department of natural resources and the department of agriculture and
conservation or to any of its divisions: chapters 1 through 22, inclusive, as
amended, in title 2 entitled "Agriculture and Forestry;" chapters 1
through 17, inclusive, as amended, in title 4 entitled "Animals and Animal
Husbandry;" chapters 1 through 19, inclusive, as amended, in title 20
entitled "Fish and Wildlife;" chapters 1 through 32, inclusive, as
amended, in title 21 entitled "Food and Drugs;" chapter 7 of title 23
as amended, entitled "Mosquito Abatement;" 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 heretofore vested in the division of parks and
recreation of the department of public works by chapters 1, 2, and 5 in title
32 entitled "Parks and Recreational Areas;" by chapter 22.5 of title
23, as amended, entitled "Drowning Prevention and Lifesaving;" 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 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 through 22 and sections thereof, as amended, in title 46 entitled
"Waters and Navigation"; and by any other general or public law
relating to the division of harbors and rivers;
(e) To exercise all
the functions, powers and duties heretofore vested in the department of health
by chapters 25, 18.9, and 19.5 of title 23, as amended, entitled "Health
and Safety;" and by chapters 12 and 16 of title 46, as amended, entitled
"Waters and Navigation"; by chapters 3, 4, 5, 6, 7, 9, 11, 13, 18,
and 19 of title 4, as amended, entitled "Animals and Animal
Husbandry;" and those functions, powers, and duties specifically vested in
the director of environmental management by the provisions of § 21-2-22, as
amended, entitled "Inspection of Animals and Milk;" 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 transferred by
this section;
(f) To cooperate with
the Rhode Island Economic Development Corporation in its planning and
promotional functions, particularly in regard to those resources relating to
agriculture, fisheries, and recreation;
(g) To cooperate with,
advise, and guide conservation commissions of cities and towns created under
chapter 35 of title 45 entitled "Conservation Commissions", as
enacted by chapter 203 of the Public Laws, 1960;
(h) To assign or
reassign, with the approval of the governor, any functions, duties, or powers
established by this chapter to any agency within the department, except as
hereinafter limited;
(i) To cooperate with
the water resources board and to provide to the board facilities,
administrative support, staff services, and such other services as the board
shall reasonably require for its operation and, in cooperation with the board
and the statewide planning program to formulate and maintain a long range guide
plan and implementing program for development of major water sources
transmissions systems needed to furnish water to regional and local
distribution systems;
(j) To cooperate with
the solid waste management corporation and to provide to the corporation such
facilities, administrative support, staff services and such other services
within the department as the corporation shall reasonably require for its
operation;
(k) To provide for the
maintenance of waterways and boating facilities, consistent with chapter 6.1 of
title 46, by: (1) establishing minimum standards for upland beneficial use and
disposal of dredged material; (2) promulgating and enforcing rules for water
quality, ground water protection, and fish and wildlife protection pursuant to
§ 42-17.1-24; (3) planning for the upland beneficial use and/or disposal of
dredged material in areas not under the jurisdiction of the council pursuant to
§ 46-23-6(2); and (4) cooperating with the coastal resources management council
in the development and implementation of comprehensive programs for dredging as
provided for in §§ 46-23-6(1)(ii)(H) and 46-23-18.3; and (5) monitoring dredge
material management and disposal sites in accordance with the protocols
established pursuant to § 46-6.1-5(3) and the comprehensive program provided
for in § 46-23-6(1)(ii)(H); no powers or duties granted herein shall be
construed to abrogate the powers or duties granted to the coastal resources
management council under chapter 23 of title 46, as amended;
(l) To establish
minimum standards, subject to the approval of the environmental standards
board, relating to the location, design, construction and maintenance of all
sewage disposal systems;
(m) To enforce, by
such means as provided by law, the standards for the quality of air, and water,
and the design, construction and operation of all sewage disposal systems; any
order or notice issued by the director relating to the location, design,
construction or maintenance of a sewage disposal system shall be eligible for
recordation under chapter 13 of title 34. The director 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
director shall provide written notice of the same, which notice shall be
similarly eligible for recordation. 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 correction;
(n) To establish
minimum standards for the establishment and maintenance of salutary
environmental conditions;
(o) To establish and
enforce minimum standards for permissible types of septage, industrial waste
disposal sites and waste oil disposal sites;
(p) To establish
minimum standards subject to the approval of the environmental standards board
for permissible types of refuse disposal facilities, the design, construction,
operation, and maintenance of disposal facilities; and the location of various
types of facilities;
(q) To exercise all
functions, powers, and duties necessary for the administration of chapter 19.1
of title 23 entitled "Rhode Island Hazardous Waste Management Act";
(r) To designate in
writing 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, provided, however, that
enforcement of powers of the coastal resources management council shall be
assigned only to employees of the department of environmental management,
except by mutual agreement or as otherwise provided in chapter 23 of title 46.
(s) To issue and
enforce such rules, regulations, and orders as may be necessary to carry out
the duties assigned to the director and the department by any provision of law;
and to conduct such investigations and hearings and to issue, suspend, and
revoke such licenses as may be necessary to enforce those rules, regulations,
and orders;
(1) Notwithstanding
the provisions of § 42-35-9 to the contrary, no informal disposition of a
contested 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.
(t) To enter, examine
or survey at any reasonable time such places as the director deems necessary to
carry out his or her responsibilities under any provision of law subject to the
following provisions:
(1) For criminal
investigations, the director shall, pursuant to chapter 5 of title 12, seek a
search warrant from an official of a court authorized to issue warrants, unless
a search without a warrant is otherwise allowed or provided by law;
(2) All administrative
inspections shall be conducted pursuant to administrative guidelines
promulgated by the department in accordance with chapter 35 of title 42.
(B) A warrant shall
not be required for administrative inspections if conducted under the following
circumstances, in accordance with the applicable constitutional standards:
(i) For closely
regulated industries;
(ii) In situations
involving open fields or conditions that are in plain view;
(iii) In emergency
situations;
(iv) In situations
presenting an imminent threat to the environment or public health, safety or
welfare;
(v) If the owner,
operator, or agent in charge of the facility, property, site or location
consents; or
(vi) In other
situations in which a warrant is not constitutionally required.
(C) Whenever it shall
be constitutionally or otherwise required by law, or whenever the director in
his or her discretion deems it advisable, an administrative search warrant, or its
functional equivalent, may be obtained by the director from a neutral
magistrate for the purpose of conducting an administrative inspection. The
warrant shall be issued in accordance with the applicable constitutional
standards for the issuance of administrative search warrants. The
administrative standard of probable cause, not the criminal standard of
probable cause, shall apply to applications for administrative search warrants.
(i) The need for, or
reliance upon, an administrative warrant shall not be construed as requiring
the department to forfeit the element of surprise in its inspection efforts.
(ii) An administrative
warrant issued pursuant to this subsection must be executed and returned within
ten (10) days of its issuance date unless, upon a showing of need for
additional time, the court orders otherwise.
(iii) An
administrative warrant may authorize the review and copying of documents that
are relevant to the purpose of the inspection. If documents must be seized for
the purpose of copying, and the warrant authorizes such seizure, the person
executing the warrant shall prepare an inventory of the documents taken. The
time, place and manner regarding the making of the inventory shall be set forth
in the terms of the warrant itself, as dictated by the court. A copy of the
inventory shall be delivered to the person from whose possession or facility
the documents were taken. The seized documents shall be copied as soon as
feasible under circumstances preserving their authenticity, then returned to
the person from whose possession or facility the documents were taken.
(iv) An administrative
warrant may authorize the taking of samples of air, water or soil or of
materials generated, stored or treated at the facility, property, site or
location. Upon request, the department shall make split samples available to
the person whose facility, property, site or location is being inspected.
(v) Service of an
administrative warrant may be required only to the extent provided for in the
terms of the warrant itself, by the issuing court.
(D) Penalties. Any
willful and unjustified refusal of right of entry and inspection to department
personnel pursuant to an administrative warrant shall constitute a contempt of
court and shall subject the refusing party to sanctions, which in the courts
discretion may result in up to six (6) months imprisonment and/or a monetary
fine of up to ten thousand dollars ($10,000) per refusal.
(u) To give notice of
an alleged violation of law to the person responsible therefor whenever the
director 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 him or her, unless
other notice and hearing procedure is specifically provided by that law.
Nothing in this chapter shall limit the authority of the attorney general to
prosecute offenders as required by law.
(1) 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 director 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 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 director within ten (10) days of the
service of notice, the notice shall automatically become a compliance order.
(2) Whenever the
director 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 action he or she deems necessary. The compliance order shall become
effective immediately upon service or within such time as is specified by the
director in such order. No request for a hearing on an immediate compliance
order may be made.
(B) 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.
(3) 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 director within ten (10) days of the service of notice of violation,
the director shall set a time and place for the hearing, and shall give the
person requesting that hearing at least five (5) days written notice thereof.
After the hearing, the director may make findings of fact and shall sustain,
modify, or withdraw the notice of violation. If the director sustains or
modifies the notice, that decision shall be deemed a compliance order and shall
be served upon the person responsible in any manner provided for the service of
the notice in this section.
(4) 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.
(5) 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 director 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 director 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.
(6) 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 to review any questions of law. The petition shall set forth
the errors claimed. Upon the filing of the petition with the clerk of the
supreme court, the supreme court may, if it sees fit, issue its writ of
certiorari;
(v) 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 account
established by subsection (z) of this section; and
(w) The following
definitions shall apply in the interpretation of the provisions of this
chapter:
(1) Director: The term
director shall mean the director of environmental management of the state of
Rhode Island or his or her duly authorized agent.
(2) Person: The term
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.
(3) Service: (a)
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.
(b) For purposes of
calculating the time within which a claim for a hearing is made pursuant to
subdivision (u)(1) of this section heretofore, service shall be deemed to be
the date of receipt of such notice or three (3) days from the date of mailing
of said notice, whichever shall first occur.
(x)(1) 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 of the
state of Rhode Island and to report back its findings on an annual basis to the
general assembly on or before March 1 of every year;
(2) Additionally, the
director of the department of 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.
(y)(1) To apply for
and accept grants and bequests of funds with the approval of the director of
administration from other states, interstate agencies and independent
authorities, and private firms, individuals and foundations, for the purpose of
carrying out his or her lawful responsibilities. The funds shall be deposited
with the general treasurer in a restricted receipt account created in the
Natural Resources Program for funds made available for that program's purposes
or in a restricted receipt account created in the Environmental Protection
Program for funds made available for that program's purposes. All expenditures
from the accounts shall be subject to appropriation by the general assembly,
and shall be expended in accordance with the provisions of the grant or
bequest. In the event that a donation or bequest is unspecified or in the event
that the trust account balance shows a surplus after the project as provided
for in the grant or bequest has been completed, the director may utilize said
appropriated unspecified or appropriated surplus funds for enhanced management
of the department's forest and outdoor public recreation areas, or other
projects or programs that promote the accessibility of recreational
opportunities for Rhode Island residents and visitors.
(2) The director shall
submit to the House Fiscal Advisor and the Senate Fiscal Advisor, by October 1
of each year, a detailed report on the amount of funds received and the uses
made of such funds.
(z) To establish 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 pursuant to subdivision (1) of this section,
chapter 19.1 of title 23 as it relates to inspections performed by the
department to determine compliance with chapter 19.1 and rules and regulations
promulgated in accordance therewith, chapter 18.9 of title 23 as it relates to
inspections performed by the department to determine compliance with chapter
18.9 and the rules and regulations promulgated in accordance therewith,
chapters 19.5 and 23 of title 23; chapter 12 of title 46 insofar as it relates
to water quality certifications and related reviews performed pursuant to
provisions of the federal Clean Water Act, the regulation and administration of
underground storage tanks and all other programs administered under chapter 12
of title 46 and § 2-1-18 et seq., and chapter 13.1 of title 46 and chapter 13.2
of title 46 insofar as they relate to any reviews and related activities
performed under the provisions of the Groundwater Protection Act, chapter
23-24.9 as it relates to the regulation and administration of mercury-added
products, and chapter 17.7 of this title insofar as it relates to
administrative appeals of all enforcement, permitting and licensing matters to
the administrative adjudication division for environmental matters. Two fee
ranges shall be required: for "Appeal of enforcement actions", a
range of fifty dollars ($50) to one hundred dollars ($100), and for
"Appeal of application decisions", a range of five hundred dollars
($500) to ten thousand dollars ($10,000). The monies from the administrative
adjudication fees will be deposited as general revenues and the amounts
appropriated shall be used for the costs associated with operating the administrative
adjudication division.
There is hereby
established an account within the general fund to be called the water and air
protection program. The account shall consist of sums appropriated for water
and air pollution control and waste monitoring programs 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 properly authenticated
vouchers. All amounts collected under the authority of this subdivision for the
sewage disposal system program and fresh waters wetlands program will be
deposited as general revenues and the amounts appropriated shall be used for
the purposes of administering and operating the programs. The director shall
submit to the house fiscal advisor and the senate fiscal advisor by January 15
of each year a detailed report on the amount of funds obtained from fines and
fees and the uses made of such funds.
(aa) 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.
(bb) To establish and
maintain an inventory of all interests in land held by public and private land
trust and to exercise all powers vested herein to insure the preservation of
all identified lands.
(1) 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 and public land trusts in
Rhode Island. The director may charge a reasonable fee for filing of each
document submitted by a land trust.
(2) 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, plants, 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, 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
Internal Revenue Code 501c(3) [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.
(3)(A) 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.
(B) All land trusts,
public and 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 environmental management. The director is hereby
directed to establish and maintain permanently a system for keeping records of
all private and public land trust land holdings in Rhode Island.
(cc) The director will
contact in writing, not less often than once every two (2) years, each public
or private land trust to ascertain: that all lands held by the land trust are
recorded with the director; the current status and condition of each land
holding; 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; the name of the successor organization named in the public or private
land trust's by-laws or articles of association; and 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
lands, 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.
(dd) Consistent with
federal standards, issue and enforce 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 non-sudden accidental
releases arising from operating underground storage tanks.
(ee) To enforce, by
such means as provided by law, the standards for the quality of air, and water,
and the location, design, construction and operation of all underground storage
facilities used for storing petroleum products or hazardous materials; any
order or notice issued by the director relating to the location, design
construction, operation or maintenance of an underground storage facility used
for storing petroleum products or hazardous materials shall be eligible for
recordation under chapter 13 of title 34. The director shall forward the order or
notice to the city or town wherein the subject facility is located, and the
order or notice shall be recorded in the general index by the appropriate
municipal officer in the land evidence records in the city or town wherein the
subject facility is located. Any subsequent transferee of that facility 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
director shall provide written notice of the same, which notice shall be
eligible for recordation. The original written notice shall be forwarded to the
city or town wherein the subject facility 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 facility is located. A copy of the written notice shall be
forwarded to the owner of the subject facility within five (5) days of a
request for it, and, in any event, shall be forwarded to the owner of the
subject facility within thirty (30) days after correction.
(ff) To manage and
disburse any and all funds collected pursuant to section 46-12.9-4, in
accordance with section 46-12.9-5, and other provisions of the Rhode Island
Underground Storage Tank Financial Responsibility Act, as amended.
SECTION 2. Chapter 42-17.1 of the General Laws entitled
“Department of Environmental Management” is hereby amended by adding thereto
the following section:
§ 42-17.1-23.1. Transfer of functions and resources –
Underground storage tanks. – (a) Resources of the
underground storage tank financial responsibility review board including but
not limited to property, employees, and accounts are hereby transferred to the
department of environmental management.
(b) As part of the
above transfer, all employees of the underground storage tank financial
responsibility review board shall be transferred to the classified
service. The director of the department
of environmental management, following consultation with the personnel
administrator, shall be responsible for assigning final class specifications
with salaries commensurate with the duties and responsibilities assigned. The
personnel administrator shall take into consideration existing classifications
currently within the classified service classification and pay plan.
(c) Transferred
employees who return to service with the state of Rhode Island directly from
uninterrupted employment with the underground storage tank financial responsibility
review board, henceforth referred to as "UST Board" shall have their
length of service at the UST Board deemed to be uninterrupted active state
service for purposes of service credits in the state retirement system.
(d) Employees who
subsequently become employees of the department of environmental management as
a result of this transfer may utilize their term of service with the UST Board
for the purposes of longevity computation as it applies to wages, vacation time
and longevity increases. In addition, accrued vacation time, sick leave, and
all other benefits with the UST Board may be transferred.
SECTION 3. Sections 46-12.9-3, 46-12.9-4, 46-12.9-5,
46-12.9-6, 46-12.9-7, 46-12.9-8, and 46-12.9-11 of the General Laws in Chapter
46-12.9 entitled “Rhode Island Underground Storage Tank Financial
Responsibility Act” are hereby amended to read as follows:
§ 46-12.9-3. Definitions. – When used in this
chapter:
(1)
"Department" means the Rhode Island department of environmental
management.
(2) "Director"
means the director of the department of environmental management or his or her
designee.
(3) "Eligible
costs" means costs, expenses and other obligations as incurred by a
responsible party for site investigation, site remediation or other corrective
action activities ordered or directed by the department or voluntarily
performed by the responsible party and not specifically identified by the
review board as ineligible.
(4) "Fund"
means the Rhode Island underground storage tank financial responsibility fund
established herein.
(5)
"Operator" means any person in control of, or having the
responsibility for, the daily operation of an underground storage tank system.
(6) "Owner"
means any agency or political subdivision of the state, any municipality,
public or private corporation or authority, individual, trust, firm, joint
stock company, partnership, association or other entity, and any officer,
employee or agent thereof.
(7)
"Petroleum" means crude oil, crude oil fractions, and refined
petroleum fractions, including gasoline, kerosene, heating oils, used/waste oil
and diesel fuels.
(8)
"Release" means any leaking, emitting, discharging, escaping or
leaching of petroleum from any underground storage tank or underground storage tank
system into the environment.
(9) "Responsible
party" means the person or persons liable for release of petroleum or the
remediation of a release.
(10) "Review
board" means the Rhode Island underground storage tank financial
responsibility review board established pursuant to the provisions of §
46-12.9-8.
(11)(i)
"Site" means any location at which or from which there has been a
release of petroleum associated with an underground storage tank or an
underground storage tanks system or any location to which such petroleum
has migrated.
(ii) For the purposes
of this chapter, "government site" means any location owned or
occupied, or previously owned or occupied, by any city or town, the state or
any agency of the state of which or from which there has been a release of
petroleum associated with an underground storage tanker and underground storage
tank system.
(12) "Underground
storage tank" means any one or combination of tanks, including underground
pipes connected thereto, used to contain an accumulation of petroleum and the
volume of which, including the volume of underground pipes connected thereto,
is ten percent (10%) or more beneath the surface of the ground.
(13) "Underground
storage tank system" means an underground storage tank and its associated
ancillary equipment and containment system, if any.
§ 46-12.9-4. Petroleum cleanup fund. – (a)
There is hereby established the Rhode Island underground storage tank financial
responsibility fund.
(b) The fund shall
consist of any funds which the state may from time to time appropriate, as well
as money received as gifts, grants, bequests, donations or other funds from any
public or private sources or annual tank registration fees as established
herein which are intended to serve the purposes of the Rhode Island underground
tank financial responsibility fund and all funds collected pursuant to §
46-12.9-11.
(c) All funds received
under the provisions of this chapter shall be paid to and received by the
review board, which shall keep such monies in a distinct interest-bearing
restricted receipt account to the credit of and for the exclusive use of the
fund.
(c) All funds
collected pursuant to this section shall be deposited in the Underground
Storage Tank Fees fund, and shall be disbursed according to the purposes
expressed in section 46-12.9-5.
§ 46-12.9-5. Purpose of fund. – The
purpose of the fund shall be to facilitate the clean-up of releases from
leaking underground storage tanks, underground storage tank systems, including
those located on sites or government sites in order to protect the environment
including drinking water supplies and public health and to take necessary
action to proactively prevent such releases. The fund shall provide
reimbursement to responsible parties for the eligible costs incurred by them as
a result of releases of certain petroleum from underground storage tanks or
underground storage tank systems as provided herein. Monies in the fund shall
be dispensed only upon the order of the review board or its designee for the
following purposes.
(1) Administrative
expenses, personnel, expenses and miscellaneous costs directly related to the
fund management incurred by the review board in carrying out fund activities;
provided, however, that no more than five hundred and fifty thousand dollars
($550,000) shall be dispensed from the fund for administrative purposes during
fiscal year 1998. For fiscal year 1999, no more than three hundred and fifty
thousand dollars ($350,000) shall be dispensed from the fund for administrative
purposes;
(2) (1)
The fund shall pay not more than one million dollars
($1,000,000) per incident and up to two million dollars ($2,000,000) in the
aggregate for damages of eligible costs, as defined in regulations promulgated
hereunder and, as further defined in § 46-12.9-3 excluding legal costs and
expenses, incurred by a responsible party as a result of a release of petroleum
from an underground storage tank or underground storage tank system; provided,
however, that a responsible party shall be responsible for the first twenty
thousand dollars ($20,000) of said eligible costs;
(3)
(2) [Deleted by P.L. 2001, ch. 328, § 1.]
(4)
(3) Reimbursement for any third party claim including, but not limited
to, claims for bodily injury, property damage and damage to natural resources
which are asserted against a responsible party and which have arisen as a
result of a release of petroleum from an underground storage tank or
underground storage tank system in an amount not to exceed one million dollars
($1,000,000) for each release as set forth in subsection (2) of this section;
provided, that such claims are found by the review board to be justified,
reasonable, related to the release of petroleum and not excessive or spurious
in nature; and
(5)
(4) Eligible costs incurred by the department in carrying out the
investigative, remedial and corrective action activities at sites of a
petroleum release associated with an underground storage tank or underground
storage tank system where the responsible party fails to comply with an order
of the department to take such corrective action. In the event of such failure,
the department may access the fund to perform the ordered work and shall
proceed to recover from the responsible party on behalf of the fund any amount
expended from the fund by the department.
(6)
(5) Nothing contained in this chapter shall be construed to prevent
subrogation by the state of Rhode Island against any responsible party other
than the owner and/or operator for all sums of money which the fund shall be
obligated to pay hereunder plus reasonable attorneys' fees and costs of
litigation and such right of subrogation is hereby created.
(7)
(6) [Deleted by P.L. 2001, ch. 328, § 1.]
(7) Eligible costs
incurred by the department to support the fund, including but not limited to,
all personnel support to process and review of claims in order to formulate
recommendations for reimbursement for consideration by the review board, and
providing meeting space for Board meetings provided, however, that no more than
five hundred and fifty thousand dollars ($550,000) shall be dispensed from the
fund for administrative purposes during any fiscal year. The department shall directly access the
fund, pursuant to the limits set forth in section 46-12.9-5(1) above, to pay
for such expenses.
(8) Grants to any
third party for purposes of removal of underground storage tanks and/or
replacement of underground storage tanks with other fuel storage and
distribution systems, including aboveground storage tanks, when such removal
and/or replacement will minimize the potential future exposure of the fund to
major expenses related to reimbursement of costs incurred in response or
remediation should a future release occur. Grants under this section shall be limited
to fifty thousand dollars ($50,000) per site and shall be in addition to any
eligible reimbursement for clean up expenses at that site.
§ 46-12.9-6. Eligibility. – (a) In order to be
eligible for reimbursement from the fund for eligible costs a responsible party
must be subject to financial responsibility as required by the EPA (40 CFR part
280 subpart H) and:
(1) Have substantially
complied with all state technical requirements for underground storage tanks
and underground storage tank systems as promulgated by the department of
environmental management pursuant to chapter 12 of this title and chapter 17.1
of title 42, including but not limited to, requirements for registration,
proper installation, spill containment, line leak detection, corrosion protection,
leak detection, tank tightness testing, inventory control, closure and leak or
spill reporting;
(2) Have incurred an
eligible cost in excess of the deductible amount specified in § 46-12.9-5(2)
whether for clean-up or related matters or for claims of third parties as set
forth in § 46-12.9-3 resulting from a release of petroleum, subject to the
motor and special fuels tax from an underground storage tank or underground
storage tank system. In order to apply for reimbursement from the fund, it shall
not be necessary that the third party and the responsible party complete
adjudication of any claim before submission to the review board; provided,
however, that all such claims shall be reasonably verified and must be
demonstrated to the reasonable satisfaction of the review board in order to be
considered eligible for reimbursement.
(b) [Deleted by P.L.
2001, ch. 328, § 1.]
(c) [Deleted by P.L.
2001, ch. 328, § 1.]
(d) Notwithstanding the
financial responsibility requirement of this section, responsible parties may
be eligible for reimbursement of eligible costs incurred for government sites
provided that:
(1) A city, town, the
state or a state agency is the responsible party for a release at the
government site and was the owner of the site at the time of the release;
(2) A city, town, the
state or a state agency is the responsible party and owner of the government
site at the time of application on which a release occurred prior to the city,
town or state agency's ownership, provided that the government entity purchased
the property prior to March 1, 1998; or
(3) A city, town, the
state or a state agency was the responsible party at the time of the release
and the government site is owned by a successor in interest at the time of
application.
(e) Notwithstanding
the requirement that the released petroleum be subject to the motor and special
fuels tax, underground storage tanks containing petroleum products for which
the motor and special fuels tax is inapplicable including, but not limited to,
underground storage tanks used for the distribution of No. 2 heating oil,
used/waste oil, kerosene or other materials as deemed appropriate by the review
board may be eligible for reimbursement with the following exceptions:
(1) Underground
storage tanks containing heating or fuel oils used solely for onsite
consumption shall not be eligible.
(2) Underground
storage tanks exempted from the department's "regulations for underground
storage facilities used for petroleum products and hazardous materials"
under Section 5.03 and Section 9.01 (A-D) shall not be eligible.
§ 46-12.9-7. Rules and regulations. – The
review board, after consultation with the department, is hereby
authorized to promulgate, implement and amend regulations, in accordance with
the provisions of chapter 35 of title 42, providing for the submission of
claims to the fund and the timely disbursement of monies from the fund. Such
regulations shall include, but not be limited to, the following:
(1) A means of
notifying all eligible parties of the existence and functioning of the fund;
(2) The record keeping
required of eligible parties for submission to and reimbursement from the fund;
(3) A set criteria
which establishes the eligibility for reimbursement of specific costs, expenses
and other obligations;
(4) [Deleted by P.L.
2001, ch. 328, § 1.]
(5) A method of
providing periodic reimbursement for eligible costs incurred by an eligible
party after July 8, 1994;
(6) A requirement that
the review board render its decisions to an eligible party upon the receipt of
a complete claim for reimbursement within ninety (90) days following its
receipt of completed claim;
(7) Establishing
procedures for verifying claims presented under this chapter;
(8) Establishing
procedures for approving, modifying or denying claims;
(9) Empowering the
review board to levy and collect an annual tank registration fee not to exceed
two thousand five hundred dollars ($2,500) per site on underground storage
tanks which require demonstration of financial responsibility under the
department's regulations of underground storage facilities used for petroleum
products and hazardous materials. These tanks which are exempted from the
special motor fuels tax shall not be subject to the fee; and
(10)
(9) The eligibility of claims shall be determined by the review
board, provided however, that no claims shall be considered for costs incurred
prior to January 1, 1994 by responsible parties who are owners or operators of
no more than one location containing underground storage tanks and July 8, 1994
by all other responsible parties.
(11)
(10) Empowering the review board department to recognize
and arrange for performance-based and other contracts with the responsible party
and contractor for the remediation of a release.
(12)
(11) Empowering the review board department to arrange for
the establishment of alternate means of financial responsibility.
§ 46-12.9-8. Review board. – (a) There is hereby authorized,
created and established a public corporation of the state having a distinct
legal existence from the state and not constituting a department of state
government to be known as the "underground storage tank review
board," with such powers as are set forth in this chapter, to oversee
administration and implementation of the fund, to review submissions and claims
received from eligible parties and to proceed to approve, modify, or deny
disbursements to eligible parties and to have such other powers as are provided
herein.
(b) The review board
shall consist of ten (10) members, as follows: the director of the department
of environmental management or his or her designee who shall be a subordinate
within the department of environmental management; the director of the
department of business regulation or his or her designee who shall be a
subordinate within the division of insurance and who shall be a nonvoting
member. The governor, with the advice and consent of the senate, shall appoint
eight (8) public members one of shall have expertise and experience in
financial matters. In making these appointments the governor shall give due
consideration to recommendations from the American Petroleum Institute, the
Independent Oil Marketers Association, the Oil Heat Institute, the Environment
Council, the Independent Oil Dealers Association and the Rhode Island Marine
Trade Association. The newly appointed members will serve for a term of three
(3) years commencing on the day they are qualified. Any vacancy which may occur
on the board shall be filled by the governor with advice and consent of the
senate, for the remainder of the unexpired term in the same manner as the
member's predecessor as prescribed in this section. The members of the board
shall be eligible to succeed themselves. Members shall serve until their
successors are appointed and qualified. No one shall be eligible for
appointment unless he or she is a resident of this state. The members of the
board shall serve without compensation. Those members of the board as of the
effective date of this act [July 15, 2005] who were appointed to the board by
members of the general assembly shall cease to be members of the board on the
effective date of this act, and the governor shall thereupon nominate three (3)
members, each of whom shall serve the balance of the unexpired term of his or
her predecessor. Those members of the board as of the effective date of this
act who were appointed to the board by the governor shall continue to serve the
balance of their current terms. Thereafter, the appointments shall be made by
the governor as prescribed in this section.
(c) When claims are
pending, the review board shall meet at the call of the chair no less than four
(4) times per year. All meetings shall be held consistently with chapter 46 of
title 42.
(d) It is the intent
of the general assembly, by the passage of this chapter, to vest in the review
board all powers, authority, rights, privileges, and titles which may be
necessary to enable it to accomplish the purposes herein set forth, and this
chapter and the powers herein granted shall be liberally construed in
conformity with those purposes.
(e)
(d) The review board and its corporate existence shall continue until
terminated by law. Upon termination of the existence of the review board, all
its rights and properties shall pass to and be vested in the state.
(f)
(e) The review board shall have the following powers and duties,
together with all powers incidental thereto or necessary for the performance of
those stated in this chapter:
(1) To sue and be
sued, complain and defend, in its corporate name;
(2) To have a seal
which may be altered at pleasure and to use the seal by causing it, or a
facsimile thereof, to be impressed or affixed or in any other manner
reproduced;
(3) To purchase, take,
receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise
deal in and with, real or personal property, or any interest therein, wherever
situated;
(4) To make and
execute agreements of lease and all other contracts and instruments necessary
or convenient in the exercise of the powers and functions of the review board
granted by this chapter;
(5) To make guarantees
and incur or assume liabilities as the review board may deem appropriate;
(6) To invest and
reinvest its funds;
(7) To secure the
cooperation and assistance of the United States, and any of its agencies and of
agencies of this state and its municipalities in the work of the review board;
(8) To accept grants,
donations, drafts, loans of funds, and contributions in money, services,
materials, or otherwise, from the United States or any of its agencies, from
this state and its agencies, or from any other source, and to use or expend
those moneys, services, materials, or other contributions in carrying out the
purposes of this chapter;
(9) To acquire or
contract to acquire, from any person, the federal government or the state, or
any agency of either the federal government or state, by grant, purchase,
lease, gift, or otherwise, or to obtain options for the acquisition of any
property, real or personal, improved or unimproved, and interests in land less
than the fee thereof; and to own, hold, clear, improve, develop, and
rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage,
or otherwise dispose of or encumber the property for the purposes of carrying
out the provisions and intent of this chapter for such consideration as the
review board shall determine;
(10)
(1) To elect or appoint officers
and agents of the review board, and to define their duties: and fix
their compensation, including authority to employ attorneys, accountants, and
engineering consultants, and such other employees or agents as the review board
shall deem necessary in its judgment;
(11)
(2) To make and alter bylaws, not inconsistent with this chapter, for
the administration and regulation of the affairs of the review board,
. and the Such
bylaws may contain provisions indemnifying any person who is or was a director
or a member of the review board, in the manner and to the extent provided in §
7-6-6 of the Rhode Island nonprofit corporation act;
(12) To have and
exercise all powers necessary or convenient to effect its purposes;
(13) To enter into
agreements, contracts, and other arrangements with the state and any of its
departments, agencies, board or commissions relating to the execution or
performance of any function or purpose of the review board, including, but not
limited to, investments, employee compensation and employee benefits, and the
state and its departments, agencies, boards and commissions are hereby
authorized to enter into such agreements, contracts and other arrangements with
the review board, and upon the request of the review board shall enter into
such agreements, contracts and other arrangements with the review board.
(14)
(3) To approve and submit an annual report within ninety (90) days after
the end of each fiscal year to the governor, the speaker of the house of
representatives, the president of the senate, and the secretary of state, of
its activities during that fiscal year. The report shall provide: an operating
statement summarizing meetings or hearings held, including meeting minutes,
subjects addressed, and decisions rendered; a summary of the review board's actions
including a listing of regulations promulgated, implemented and amended as
prescribed in § 46-12.9-7, fees levied, collected or received as prescribed
in §§ 46-12.9-7 and 46-12.9-11, claims submitted, verified, approved, modified,
and denied as prescribed in § 46-12.9-7, contracts entered into as
prescribed in § 46-12.9-7 and this section, properties acquired as prescribed
in this section, liabilities incurred or assumed as prescribed in this section
and reconsideration hearings held as prescribed in § 46-12.9-9; a synopsis of
any law suits or other legal matters related to the authority of the review
board; a consolidated financial statement of all funds received, expended,
disbursed, and invested by the review board including the source of the funds,
a listing of the staff and/or consultants employed by the review board; and
a summary of performance during the previous fiscal year including
accomplishments, shortcomings and remedies; a briefing on anticipated
activities in the upcoming fiscal year; and findings and recommendations for
improvements; and a summary of any training courses held pursuant to
subdivision (f)(15) of this section. The report shall be posted electronically
as prescribed in § 42-20-8.2.
(15)
(4) To conduct a training course for newly appointed and qualified
members and new designees of ex-officio members within six (6) months of their
qualification or designation. The course shall be developed by the executive
director, approved by the board, and conducted by the executive director. The
board may approve the use of any board or staff members or other individuals to
assist with training. The training course shall include instruction in the
following areas: the provisions of chapters 46-12.9, 42-46, 36-14, and 38-2;
and the boards rules and regulations. The director of the department of
administration shall, within ninety (90) days of the effective date of this act
[July 15, 2005], prepare and disseminate training materials relating to the
provisions of chapters 36-14, 38-2, and 42-46.
(g) Upon the passage
of this act and the appointment and qualification of the three (3) new members
prescribed in subsection (b) of this section, the board shall elect from among
its members a chair. Thereafter, the board shall elect annually in February a
chair from among the members. The board may elect from among its members such
other officers as it deems necessary.
(h) Six (6) members of
the board shall constitute a quorum and the vote of the majority of the members
present shall be necessary and shall suffice for any action taken by the board.
No vacancy in the membership of the board shall impair the right of a quorum to
exercise all of the rights and perform all of the duties of the board.
(i) Members of the
board shall be removable by the governor pursuant to section 36-17 and removal
solely for partisan or personal reasons unrelated to capacity or fitness for
the office shall be unlawful.
§ 46-12.9-11. Funding. – (a) There is hereby
imposed an environmental protection regulatory fee of at the rate of one cent
($0.01) per gallon payable of motor fuel, to be collected by distributors of
motor fuel when the product is sold to owners and/or operators of underground
storage tanks. Each distributor shall be responsible to the tax administrator
for the collection of the regulatory fee, and if the distributor is unable to
recover the fee from the person who ordered the product, the distribution shall
nonetheless remit to the tax administrator the regulatory fee associated with
the delivery. In accordance with the regulations to be promulgated hereunder,
the fee shall be collected, reported, and paid to the Rhode Island division of
taxation as a separate line item entry, on a quarterly tax report by those
persons charged with the collection, reporting, and payment of motor fuels
taxes. This fee shall be administered and collected by the division of
taxation. Notwithstanding the provisions of this section, the fee shall not be
applicable to purchases by the United States government.
(b) All fees derived
under the provisions of this chapter, including tank registration fees assessed
pursuant to § 46-12.9-7(9), shall be paid to and received by the review board,
which shall keep such money in a distinct interest bearing restricted receipt
account to the credit of and for the exclusive use of the fund. All fees
collected may be invested as provided by law and all interest received on such
investment shall be credited to the fund.
(c)
(b) When the fund reaches the
sum of eight million dollars ($8,000,000), the imposition of the fee set forth
in this chapter shall be suspended, and the division of taxation shall notify
all persons responsible for the collection, reporting and payments of the fee
of the suspension. In the event that the account balance of the fund
subsequently is reduced to a sum less than five million dollars ($5,000,000) as
a result of fund activity, the fee shall be reinstated by the division of
taxation, following proper notice thereof, and once reinstated, the collection,
reporting, and payment of the fee shall continue until the account balance
again reaches the sum of eight million dollars ($8,000,000).
(d)
(c) Upon the determination by
the review board and the department that the fund has reached a balance
sufficient to satisfy all pending or future claims, the review board shall
recommend to the general assembly the discontinuation of the imposition of the
fee created in this section.
SECTION 4.
Chapter 36-9 of the General Laws entitled "Retirement System-Membership
and Service Credits" is hereby amended by adding thereto the following
section:
36-9-48.
Underground storage tank financial review board - Transferred employees. – (a) Definitions. For the purposes of
this section:
(i) "UST Board" means the Rhode Island Underground Storage
Tank Financial Review Board, a governmental agency and a public instrumentality
of the state of Rhode Island.
(ii) "Transfer date" means July 1, 2006.
(iii) "Transferred employee" means any individual who
was an employee of the UST Board of the state of Rhode Island on the date
immediately preceding the transfer date, and who became an employee of the
state of Rhode Island, department of environmental management on the transfer
date.
(b) Transferred employees who return to employment with the state
of Rhode Island directly from uninterrupted employment with the Rhode Island
Underground Storage Tank Financial Responsibility Review Board shall have their
length of service at the UST Board deemed to be uninterrupted active state
service for the purposes of service credits in the state retirement
system.
(c) The period of service of any transferred employee from
December 29, 2002 to the date of transfer shall be treated as service as an
employee of the state of Rhode Island for the purposes of Chapters 8, 9 and 10
of this title.
(d) The provisions of subsection (b) of this section shall not
apply unless within ninety (90) days following the date of enactment of this
section, the UST Board transfers, or causes to have transferred from a trustee
or other custodian, to the retirement system, an amount equal to the sum of the
employees contribution accumulation and the employer contribution accumulation.
The amount of transfer shall be determined by the retirement board at full
actuarial cost as defined by Rhode Island general law 36-8.1-9 for the period
of service December 29, 2002 to the transfer date. This will be reduced by the
transfer to the retirement board of any and all contributions made to the UST
Board's Simple IRA by and on behalf of the transferred employees.
(e) Transferred employees who return to service with the state of
Rhode Island directly from uninterrupted employment with the Rhode Island
Underground Storage Tank Financial Review Board, henceforth referred to as
"UST Board" shall have their length of service at the UST Board
deemed to be uninterrupted active state service for purposes of service credits
in the state retirement system.
SECTION 5. This article shall take effect as of July 1,
2006.
ARTICLE 28 SUBSTITUTE A
RELATING TO PAY DIFFERENTIAL FOR STATE
EMPLOYEES ON ACTIVE DUTY
SECTION 1. Chapter 30-6 of the General Laws entitled
“Pay and Allowances” is hereby amended by adding thereto the following section:
§ 30-6-5. Pay differential for state employees on active duty. – (a)
Employees of a state agency who are eligible as defined within may qualify for
a military pay differential, hereafter also referred to as a
“differential”. Such differential shall
consist of the difference between the base pay for state employment that the
state employee would have received if not on active military duty and the
military pay that the employee on active military duty did receive, for the
same time period. The differential does
not include the payment of overtime in state employment.
(b) In order to be
eligible for a military pay differential, a recipient must be a member of the
National Guard or a Reserve component of the United States Armed Forces who is
currently mobilized in support of a Presidential reserve call-up for active
military duty, who at the time of being called for active military duty was an
employee of a state department who otherwise qualifies for a military pay
differential, as described above.
(c) The state
department where the state employee worked when called to active duty shall
periodically pay every employee who qualifies for a military pay
differential. The first such payment
shall be paid to eligible state employees for military pay differentials
between July 1 and September 30. Such
stipends shall be calculated for each three (3) month period thereafter, but
shall terminate upon the employee’s return from active duty or after the
employee has received the differential for one year, whichever comes first.
(d) The director of
the department of administration shall be responsible for developing necessary
rules and regulations in order to implement the provisions of this
section. These rules shall include a
process for determining eligibility and the amount of the differential.
(e) To the extent that
compensation for being called to active military duty is not already included
in existing collective bargaining agreements, eligible employees of a state
agency will qualify for the military pay differential, as defined above. When a collective bargaining agreement provides
equal or greater benefits, the terms of the collective bargaining agreement
shall control for as long as those benefits under the contract are
applicable. Thereafter, those union
employees shall be granted the difference in pay as described above.
SECTION 2. This article shall take effect upon passage.
ARTICLE 29 SUBSTITUTE A
RELATING TO TAXATION -- EXCISE TAX
PHASE-OUT
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) (1)
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
section 44-34-1 may be phased out. The phase-out shall apply 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 annually rebate 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 shall be assessed a value by the vehicle value commission. That value
shall be assessed according to the provisions of section 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, shall continue to be applicable in
future year valuations aged by one year in each succeeding year. (c) (1) The motor vehicle excise tax
phase-out shall commence with the excise tax bills mailed to taxpayers for the
fiscal year 2000. 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
State fiscal year
Exempt from value Local
Exemption
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 years 2003,
2004 and 2005 $4,500 $4,500
for fiscal year 2006 and
each year thereafter $5,000 $5,000
for fiscal year 2007 $6,000 $6,000
for fiscal year 2008
and each year thereafter the exemption and the state fiscal year reimbursement
shall be increased, at a minimum, to the maximum amount to the nearest two
hundred and fifty dollar ($250) increment within the allocation of one and
twenty-two hundredths percent (1.22%) of net terminal income derived from video
lottery games pursuant to the provisions of section 42-61-15, and in no event
shall the exemption in any fiscal year be less than the prior fiscal year.
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.
(2) The excise tax
phase-out shall provide levels of assessed value reductions until the tax is
eliminated or reduced as provided in this chapter.
(3) Current exemptions
shall remain in effect as provided in this chapter.
(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, 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 section
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
section 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
section 44-34.1-1(c)(1).
44-34.1-2. City and town and fire district reimbursement. --
(a) In fiscal years 2000 and thereafter, cities and towns and fire districts
shall receive reimbursements, as set forth in this section, 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, 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 and thereafter 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 through fiscal
year 2003.
(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; provided, that for state
reimbursements in fiscal years 2004 and thereafter, the indexed tax rate shall
not be subject to further CPI-U adjustments. 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
through fiscal 2003. 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, 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 through state fiscal 2003 to the
tax rate used by each city and town and fire district for fiscal year 1998;
provided, 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.
(c) (1) Funds shall be distributed to the
cities and towns and fire districts as follows:
(i) On October 20, 1998, and each October 20
thereafter through October 20, 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, 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, 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, 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, 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, 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, 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 November 1.
(3) On any of the payment dates specified in
paragraphs (1)(i) through (vii) of this subsection, 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 and thereafter, 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, the May and August payments shall be subject to
submission of final certified and reconciled motor vehicle levy information.
(5) In the event When the tax
is phased out, funds distributed to the cities, towns, and fire districts for
the following fiscal year shall be calculated as the funds distributed in the
fiscal year of the phase-out. Twenty-five percent (25%) of the amounts
calculated shall be distributed to the cities and towns and fire districts on
August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the
following November 1, twenty-five percent (25%) on the following February 1,
and twenty-five percent (25%) on the following May 1. The funds shall be
distributed to each city and town and fire district in the same proportion as
distributed in the fiscal year of the phase-out.
(6) In the event When the tax
is phased out to August 1, of the following fiscal year the director of
administration shall calculate to the nearest tenth of one cent ($.001) the number
of cents of sales tax received for the fiscal year ending June 30, of the year
following the phase-out equal to the amount of funds distributed to the cities,
towns, and fire districts under this chapter during the fiscal year following
the phase-out and the percent of the total funds distributed in the fiscal year
following the phase-out received by each city, town, and fire district,
calculated to the nearest one-hundredth of one percent (0.01%). The director of
the department 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 second fiscal
year following the phase-out 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 the fiscal
year following the phase-out.
(7) In the event When the tax
is phased out, twenty-five percent (25%) of the funds shall be distributed to
the cities, towns, and fire districts on August 1, of the following fiscal year
and every August 1 thereafter; twenty-five percent (25%) shall be distributed on
the following November 1, and every November 1 thereafter; twenty-five percent
(25%) shall be distributed on the following February 1, and every February 1
thereafter; and twenty-five percent (25%) shall be distributed on the following
May 1, and every May 1 thereafter.
(8) For the city of East Providence, in the
event the tax is phased out, twenty-five percent (25%) shall be distributed on
November 1, of the following fiscal year and every November 1 thereafter,
twenty-five percent (25%) shall be distributed on the following February 1, and
every February 1 thereafter; twenty-five percent (25%) shall be distributed on
the following May 1, and every May 1 thereafter; and twenty-five percent (25%)
of the funds shall be distributed on the following August 1, and every 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 act
shall take effect upon passage.
ARTICLE 30 SUBSTITUTE A AS AMENDED
RELATING TO TAXATION
SECTION
1. Section 42-61.2-7 of the general laws in chapter 42-61.2 entitled “Video
Lottery Terminal” is hereby amended as follows:
42-61.2-7. Division of revenue. –
(a) Notwithstanding the provisions of § 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 division fund for
administrative purposes: Net terminal income not otherwise disbursed in
accordance with subdivisions (a)(2)(1) through (a)(6) herein; provided
the revenue estimators shall establish at the Revenue Estimating Conferences
pursuant to chapter 16 of title 35 the amount of the net terminal income and
the state's share of net terminal income that is solely attributable to the
introduction of newly authorized machines at Lincoln Park and Newport Grand
pursuant to Sections 3 and 4 herein. Said amount shall be distributed as
follows:
(i) 12.50%
Nineteen one hundredths of one percent (0.19%) up to a maximum of twenty
million dollars ($20,000,000) shall be equally allocated to the distressed
communities as defined in § 45-13-12 provided that no eligible community shall
receive more than twenty-five percent (25%) of that community's currently
enacted municipal budget as its share under this specific subsection.
Distributions made under this specific subsection are supplemental to all other
distributions made under any portion of general laws § 45-13-12.
(ii)
3.125% Five one hundredths of one percent (0.05%) up to a maximum
of five million dollars ($5,000,000) shall be appropriated to property tax
relief to fully fund the provisions of § 44-33-2.1. Once there are
sufficient additional funds, the maximum credit defined in subdivision
44-33-9(2) shall increase by increments of fifty dollars ($50.00) until a
maximum credit of five hundred dollars ($500) is obtained. The maximum
credit defined in subdivision 44-33-9(2) shall increase to the maximum amount
to the nearest five dollar ($5.00) increment within the allocation until a
maximum credit of five hundred dollars ($500) is obtained. In no event shall
the exemption in any fiscal year be less than the prior fiscal year.
(iii)
78.125% One and twenty-two
one hundredths of one percent (1.22%) to fund § 44-34.1-1, entitled
"Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to
the maximum amount to the nearest five hundred two hundred fifty
dollar ($500) ($250) increment within the allocation. In no event
shall the exemption in any fiscal year be less than the prior fiscal year.
(iv)
6.25% Ten one hundredths of one percent (0.10%) to a maximum of
ten million dollars ($10,000,000) for supplemental distribution to communities
not included in paragraph (a)(1)(i) above distributed proportionately on the
basis of general revenue sharing distributed for that fiscal year.
(v)
Any amounts in excess of the limits in (i) through (iv) above shall be
allocated to the general fund.
(2)
To the licensed video lottery retailer:
(a)
Prior to the effective date of the NGJA Master Contract, Newport Jai Ali
twenty-six percent (26%) minus three hundred eighty four thousand nine hundred
ninety-six dollars ($384,996);
(ii)
On and after the effective date of the NGJA Master Contract, to the licensed
video lottery retailer who is a party to the NGJA Master Contract, all sums due
and payable under said Master Contract minus three hundred eighty four thousand
nine hundred ninety-six dollars ($384,996).
(b)
Prior to the effective date of the UTGR Master Contract, to the present
licensed video lottery retailer at Lincoln Park which is not a party to the
UTGR Master Contract, twenty-eight and eighty-five one hundredths percent
(28.85%) minus seven hundred sixty-seven thousand six hundred eighty-seven
dollars ($767,687);
(ii)
On and after the effective date of the UTGR Master Contract, to the licensed
video lottery retailer who is a party to the UTGR Master Contract, all sums due
and payable under said Master Contract minus seven hundred sixty-seven thousand
six hundred eighty-seven dollars ($767,687).
(3)
To the technology providers who are not a party to the GTECH Master Contract as
set forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of
the net terminal income of the provider's terminals;
(ii)
To contractors who are a party to the Master Contract as set forth and
referenced in Public Law 2003, Chapter 32, all sums due and payable under said
Master Contract;
(iii)
Notwithstanding subsections (i) and (ii) above, there shall be subtracted
proportionately from the payments to technology providers the sum of six
hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737);
(4)
To the city of Newport one and one hundreth percent (1%) (1.01%)
plus one quarter percent (0.25%) of net terminal income that is
solely attributable to the introduction of newly authorized machines
at Newport Grand pursuant to sections 3 and 4 herein as determined by the
Revenue Estimating Conference; and to the town of Lincoln one and one
quarter twenty-six hundreths percent (1.25%) (1.26%) plus
one quarter percent (0.25%) of net terminal income that is solely
attributable to the introduction of newly authorized machines at
Lincoln Park pursuant to sections 3 and 4 herein as determined by the
Revenue Estimating Conference; and
(5)
To the Narragansett Indian Tribe, five seventeen hundredths of one
percent (5%) (0.17%) of net terminal income that is solely
attributable to the introduction of newly authorized machines at
Lincoln Park as determined by the revenue estimators at the Revenue
Estimating Conferences pursuant to chapter 16 of title 35 up to a maximum
of ten million dollars ($10,000,000) per year, which shall be paid to the
Narragansett Indian Tribe for the account of a Tribal Development Fund to be
used for the purpose of encouraging and promoting: home ownership and
improvement, elderly housing, adult vocational training; health and social
services; childcare; natural resource protection; and economic development
consistent with state law. Provided, however, such distribution shall terminate
upon the opening of any gaming facility in which the Narragansett Indians are
entitled to any payments or other incentives; and provided further any monies
distributed hereunder shall not be used for, or spent on previously contracted
debts.
(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.
SECTION 2. Chapter
44-30 of the General Laws entitled "Personal Income Tax" is hereby
amended by adding thereto the following section:
44-30-99.
Personal income tax law. -- (3)
The division of taxation shall prepare and submit to the general assembly by
October 1, 2006, a Rhode Island personal income tax law which includes tax
rates, income brackets, and personal exemptions that are indexed to an
inflation factor that relies as little as practical upon references to the
United States Internal Revenue Code. The report shall be accompanied with
necessary recommended legislation necessary to implement the law. The report
and legislation shall be transmitted to the Chairman chairperson of the house
finance committee and the chairperson of the senate finance committee with
copies to the house fiscal advisor and senate fiscal advisor.
SECTION 3. Chapter
44-30 of the General Laws entitled "Personal Income Tax" is hereby
amended by adding thereto the following section:
44-30-2. Annual Rhode Island personal income and tax data report. --
No later than March 15, the division of taxation shall annually submit a
report for the previous calendar year of Rhode Island individual income and tax
data by size of adjusted gross income to the chairpersons of the house finance committee
and senate finance committee, and the house fiscal advisor and the senate fiscal
advisor. The report should be as similar as practical to the individual and
income tax data for Rhode Island federal taxpayers issued by the Statistics of
Income Division of the Internal Revenue Service.
SECTION 4.
Section 44-33-2.1 of the General Laws in Chapter 44-33 entitled "Property
Tax Relief" is hereby repealed.
44-33-2.1. Property tax relief. --
(a) A claimant sixty-five (65) years of age or older, and/or disabled during
any portion of the year for which the claim was filed shall be paid in full
upon receipt of his or her claim for relief under this chapter.
(b) The tax administrator shall not pay any
claims to claimants who were under sixty-five (65) years of age or not disabled
on the last day of the taxable year for which the claim is made until the total
amount of all timely-filed claims has been paid under subsection (a) of this
section. The balance of funds appropriated shall be determined as of June 30
annually less the sum of fifty thousand dollars ($50,000) annually for payment
of late-filed claims approved by the tax administrator under section 44-33-18.
(c) If insufficient funds exist as of June 30
annually to pay the full amount of all claims of persons under sixty-five (65)
years of age and/or not disabled on the last day of the taxable year for which
the claim is made, the tax administrator shall make payments to each claimant
proportionately. No payment shall exceed one hundred percent (100%) of the
amount of the claim.
(d) Late-filed claims approved under
section 44-33-18 for claimants sixty-five (65) years of age or older and/or
disabled are paid in full upon receipt of his or her claim for relief under
this chapter. Late-filed claims approved under section 44-33-18 for claimants
under sixty-five (65) years of age and/or not disabled are paid at the same
percentage as determined under subsection (c) of this section.
SECTION 5 Section
44-33-9 of the General Laws in Chapter 44-33 entitled "Property Tax
Relief" is hereby amended to read as follows:
44-33-9. Computation of credit. --
The amount of any claim made pursuant to this chapter shall be determined as
follows: (1) For any taxable year, a
claimant is entitled to a credit against his or her tax liability equal to the
amount by which the property taxes accrued or rent constituting property taxes
accrued upon the claimant's homestead
for the taxable year exceeds a certain percentage of the claimant's total
household income for that taxable year, which percentage is based upon income
level and household size. The credit shall be computed in accordance with the
following table:
Income Range 1 Person 2 or More
Persons
less than $6000 3% 3%
$6001-9000 4% 4%
$9001-12000 5% 5%
$12001-15000 6% 5%
$15001-30000 6% 6%
(2) The maximum amount of the credit granted
under this chapter will be as follows:
Year Credit
Maximum
Commencing July 1977 $
55.00
Commencing July 1978 $150.00
Commencing July 1979 $175.00
Commencing July 1980 $200.00
Commencing on July
1997
$250.00
and subsequent years
Commencing July 2006 $300.00
Commencing July 2007
and subsequent years, the credit shall be increased, at a minimum, to the
maximum amount to the nearest five dollar ($5.00) increment within the
allocation of five one hundredths of one percent (0.05%) of net terminal income
derived from video lottery games up to a maximum of five million dollars
($5,000,000) until a maximum credit of five hundred dollars ($500) is obtained
pursuant to the provisions of section 42-61-15. In no event shall the exemption
in any fiscal year be less than the prior fiscal year.
SECTION 6 Section
44-30-98 of the General Laws in Chapter 44-30 entitled "Personal Income
Tax is hereby amended to read as follows:
44-30-98. Refundable earned income credit. –
A taxpayer shall be allowed a credit as provided in §
44-30-2.6(d); provided, however, ten fifteen percent (10%)
(15%) of the excess Rhode Island earned income credit will be refunded
for the 2005 2006 taxable year and each taxable year thereafter.
SECTION
7. Section
44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal Income
Tax" are hereby amended to read as follows:
44-30-2.6. Rhode Island taxable income -- Rate of tax. --
(a) "Rhode Island taxable income" means federal taxable income as
determined under the Internal Revenue Code, 26 U.S.C. section 1 et seq., not
including the increase in the basic standard deduction amount for married
couples filing joint returns as provided in the Jobs and Growth Tax Relief
Reconciliation Act of 2003 and the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA), and as modified by the modifications in
section 44-30-12.
(b) Notwithstanding the provisions of sections
44-30-1 and 44-30-2, for tax years beginning on or after January 1, 2001, a
Rhode Island personal income tax is imposed upon the Rhode Island taxable
income of residents and nonresidents, including estates and trusts, at the rate
of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five
percent (25%) for tax year 2002 and thereafter of the federal income tax
rates, including capital gains rates and any other special rates for other
types of income, except as provided in section 44-30-2.7, which were in effect
immediately prior to enactment of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA); provided, rate schedules shall be adjusted
for inflation by the tax administrator beginning in taxable year 2002 and thereafter
in the manner prescribed for adjustment by the commissioner of Internal Revenue
in 26 U.S.C. section 1(f). However, for tax years beginning on or after
January 1, 2006, a taxpayer may elect to use the alternative flat tax rate
provided in section 44-30-2.10 to calculate his or her personal income tax
liability.
(c) For tax years beginning on or after
January 1, 2001, if a taxpayer has an alternative minimum tax for federal tax
purposes, the taxpayer shall determine if he or she has a Rhode Island alternative
minimum tax. The Rhode Island alternative minimum tax shall be computed by
multiplying the federal tentative minimum tax without allowing for the
increased exemptions under the Jobs and Growth Tax Relief Reconciliation Act of
2003 (as redetermined on federal form 6251 Alternative Minimum Tax-Individuals)
by twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five
percent (25%) for tax year 2002 and thereafter, and comparing the product to
the Rhode Island tax as computed otherwise under this section. The excess shall
be the taxpayer's Rhode Island alternative minimum tax.
(d) Credits against tax. - For tax years
beginning on or after January 1, 2001, a taxpayer entitled to any of the
following federal credits enacted prior to January 1, 1996 shall be entitled to
a credit against the Rhode Island tax imposed under this section:
(1) earned income credit;
(2) child and dependent care credit;
(3) general business credits;
(4) foreign tax credit;
(5) credit for elderly or the disabled;
(6) credit for prior year minimum tax;
(7) mortgage interest credit;
(8) empowerment zone employment credit;
(9) qualified electric vehicle credit;
The credit shall be twenty-five and one-half
percent (25.5%) of the listed federal credits for tax year 2001, and shall be
twenty-five percent (25%) of the aforementioned federal credits for tax year
2002 and thereafter; provided, there shall be no deduction based on any federal
credits enacted after January 1, 1996, including the rate reduction credit
provided by the federal Economic Growth and Tax Reconciliation Act of 2001
(EGTRRA). In no event shall the tax imposed under this section be reduced to
less than zero. A taxpayer required to recapture any of the above credits for
federal tax purposes shall determine the Rhode Island amount to be recaptured
in the same manner as prescribed in this subsection.
SECTION
8. Chapter 44-30 of the general laws entitled “Personal Income Tax” is hereby
amended by adding thereto the following section:
44-30-2.10. Alternative flat tax rate. –
(a) For tax years beginning on or after January 1, 2006, a taxpayer may elect
to compute his or her Rhode Island personal income tax liability as provided in
this section. If no election is made, the taxpayer’s personal income tax
liability shall be computed as otherwise provided in this chapter.
(b) For purposes of
this section, "alternative Rhode Island taxable income” shall mean federal
adjusted gross income as determined for federal income tax purposes as modified
by section 44-30-12 and 44-30-32 for residents and nonresidents, respectively.
No other state or federal deductions or adjustments to income shall be
available to the taxpayer.
(c) For purposes of
this section, the “alternative tax rate” shall be eight percent (8.0%) for the
tax year 2006; seven and one-half percent (7.5%) for tax year 2007; seven
percent (7%) for tax year 2008; six and one-half percent (6.5%) for tax
year 2009; six percent (6%) for tax
year 2010; and five and one-half percent (5.5%) for tax years 2011 and
thereafter;
(d) The alternative
personal income tax shall be determined by multiplying the taxpayer’s
alternative Rhode Island taxable income by the alternative tax rate, less the
following credits:
(1) Credit for income
taxes paid to other states as provided for in section 44-30-18;
(2) Credit for Rhode
Island personal income tax withheld as provided in section 44-30-74;
(3) Credit for Rhode
Island payments of estimated tax as provided in section 44-30-56(e) and RI Reg.
Sec. PIT 90-17;
(4) Credit for Rhode
Island overpayment of taxes as provided in section 44-30-86(a); and
(5) Credit for Rhode
Island amount remitted by a limited liability company on behalf of a
nonresident member as provided in section 7-16-73(4).
No other state or
federal tax credits shall be available to the taxpayer in computing the
alternative personal income tax liability.
(e) The provisions of
this section may apply regardless of the taxpayer’s filing status.
SECTION 9. Sections
44-18-6, 44-18-7, 44-18-8, 44-18-12, 44-18-13, 44-18-16, 44-18-17, 44-18-18.1,
44-18-25 and 44-18-30 of the General Laws in Chapter 44-18 entitled “Sales and
Use Taxes—Liability and Computation” are hereby amended to read as follows:
44-18-6. Person defined.--
“Person” includes any individual, firm, co‑partnership, joint
venture, association, social club, fraternal organization,
corporation, estate, trust, business trust, receiver, trustee, assignee,
referee, syndicate, the United States, this state, any city, town district or
other political subdivision of this state, any individual or group acting in a
fiduciary capacity, or any other group or combination acting as a unit.
fiduciary, limited liability company, limited liability partnership, or any
other legal entity.
44-18-7. Sales Defined --
Additional definitions.—Sales Defined. -- (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)(i) 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, all ancillary services, any maintenance services other than
as provided for in §44-18-12(ii)(B) 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
44-18-12.1. Telecommunications service
shall not include service rendered using a prepaid telephone calling
arrangement.
(ii) 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
44-18-12.1, 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
paragraph:
(A) “Customer” means
either (a) a person or entity that contracts with a home service provider for
mobile telecommunications service 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 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.
(B) “Home service
provider” means a facilities-based carrier or reseller with which the customer
contracts for the provision of mobile telecommunications services.
(C) “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.
(D) “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.
(iii) All other
definitions and provisions of the Mobile Telecommunications Act as provided in
4 U.S.C. §§ 116-126 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 is 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 of the public for human
habitation.
44-18-8. Retail sale or sale at retail defined.--
(a) A "retail sale" or "sale at retail" means a any
sale, including lease or rentals of tangible personal property, for any
purpose other than resale, sublease or subrent in the regular course of
business. and also means the rental of living quarters in any hotel,
rooming house or tourist camp. The
sale of tangible personal property to be used for purposes of rental in the
regular course of business is considered to be a sale for resale. "Rental" means the agreeing by
the owner to give exclusive use of property to another for a consideration and
for any period of time under any one (1) agreement. In regards to telecommunications service as
defined in §44-18-7(d)(9), retail sale does not include the purchase of
telecommunications service by a telecommunications provider from another
telecommunications provider for resale to the ultimate consumer, provided the
purchaser submits to the seller a certificate attesting to the applicability of
this exclusion, upon receipt of which the seller is relieved of any tax
liability for the sale so long as the certificate is taken in good faith by
the seller. A sale at retail
includes sales defined in §44-18-7(13).
(b) The delivery in this state of tangible
personal property by an owner or former owner or by a factor, if the delivery
is to a consumer pursuant to a retail sale made by a retailer not engaged in
business in this state, is a retail sale in this state by the person making the
delivery and he or she shall include the retail selling price of the property
in his or her gross receipts.
44-18-12. "Sale price" defined.-- (a)
"Sale price" means the total amount for which tangible personal
property is sold or leased or rented, and the total amount charged for the
furnishing or distributing of electricity, natural gas, artificial gas, steam,
refrigeration, water, telecommunications, telegraph, cable, and radio message
service, community antenna television, subscription television and cable
television service. “Sale price” means
in regard to telecommunications service the total consideration received for
such service as defined in §44-18-7(d)(9).
In order to prevent multistate taxation of all telecommunications
service, any taxpayer is allowed a credit or refund of sales tax upon
presenting proof that a tax has been paid to another state to which the tax is
properly due, for the identical service taxed under this chapter. “Sale price” means the total amount charged
for the rental of living quarters in any hotel, rooming house or tourist camp,
valued in money, whether paid in money or otherwise, including all of the
following:
(I) Any services that are a part of the
sale, valued in money, whether paid in money or otherwise.
(II) All receipts, cash, credits, and
property of any kind.
(III) Any amount for which credit is given
to the purchaser by the seller.
(b) "Sale price" does not
include any of the following:
(I) Cash discounts allowed and taken on
sales.
(II) The amount charged for property
returned by customers upon rescission of the contract of sale when the entire
amount exclusive of handling charges paid for property is refunded either in
cash or credit, and where the property is returned within one hundred twenty
(120) days from the date of delivery.
(III) The amount charged for labor or
services rendered in installing or applying the property sold or for making
alterations to wearing apparel in connection with the sale when the charge is
separately stated by the retailer to the purchaser; provided, that in
transactions subject to the provisions of this chapter the retailer separately
states the charge when requested by the purchaser and any conduct that maybe
restrained in the same manner prescribed in chapter 13.1 of title 6.
(IV) The amount of any tax, not including
any manufacturers' or importers' excise tax, imposed by the United States upon
or with respect to retail sales whether imposed upon the retailer or the
consumer.
(V) Transportation
charges separately stated, if the transportation occurs after the purchase of
the property is made.
(a) “Sales price”
applies to the measure subject to sales tax and means the total amount of
consideration, including cash, credit, property, and services, for which
personal property or services are sold, leased, or rented, valued in money,
whether received in money or otherwise, without any deduction for the
following:
(i) The seller’s cost of the property sold;
(ii) The cost of materials used, labor or service
cost, interest, losses, all costs of transportation to the seller, all taxes
imposed on the seller, and any other expense of the seller;
(iii) Charges by the seller for any services
necessary to complete the sale, other than delivery and installation charges;
(iv) Delivery charges, as defined in
44-18-7.1(i); or
(v) Credit for any trade-in, as determined by
state law.
(b) “Sales price”
shall not include:
(i) Discounts,
including cash, term, or coupons that are not reimbursed by a third party that
are allowed by a seller and taken by a purchaser on a sale;
(ii) The amount
charged for labor or services rendered in installing or applying the property
sold when the charge is separately stated by the retailer to the purchaser;
provided that in transactions subject to the provisions of this chapter the
retailer shall separately state such charge when requested by the purchaser
and, further, the failure to separately state such charge when requested may be
restrained in the same manner as other unlawful acts or practices prescribed in
chapter 13.1 of title 6.
(iii) Interest,
financing, and carrying charges from credit extended on the sale of personal
property or services, if the amount is separately stated on the invoice, bill
of sale or similar document given to the purchaser; and
(iv) Any taxes legally imposed directly on the
consumer that are separately stated on the invoice, bill of sale or similar
document given to the purchaser.
(v) Manufacturer
rebates allowed on the sale of motor vehicles.
(c) “Sales price”
shall include consideration received by the seller from third parties if:
(i) The seller
actually receives consideration from a party other than the purchaser and the
consideration is directly related to a price reduction or discount on the sale;
(ii) The seller has an
obligation to pass the price reduction or discount through to the purchaser;
(iii) The amount of
the consideration attributable to the sale is fixed and determinable by the
seller at the time of the sale of the item to the purchaser; and
(iv) One of the
following criteria is met:
(A) The purchaser
presents a coupon, certificate or other documentation to the seller to claim a
price reduction or discount where the coupon, certificate or documentation is
authorized, distributed or granted by a third party with the understanding that
the third party will reimburse any seller to whom the coupon, certificate or
documentation is presented;
(B) The purchaser
identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount (a “preferred customer”
card that is available to any patron does not constitute membership in such a
group), or
(C) The price
reduction or discount is identified as a third party price reduction or
discount on the invoice received by the purchaser or on a coupon, certificate
or other documentation presented by the purchaser.
44-18-13. Gross receipts defined.--"Gross
receipts" means the total amount of the sale price, as defined in §44‑18‑12
or the measure subject to tax as defined in §44-18-12.1, of the retail
sales of retailers.
44-18-16. Tangible property defined.-- "Tangible
personal property" means personal property which may be seen, weighed,
measured, felt, or touched, or which is in any other manner perceptible to the
senses. “Tangible personal property”
includes electricity, water, gas, steam, and prewritten computer software.
44-18-17. In this
“State” defined. -- "In
this state" or "in the state" means within the exterior limits
of the state of Rhode Island and includes all territory within these limits
owned by or ceded to the United States of America.
44-18-18.1. Local meals and beverage tax.— (a)
There is hereby levied and imposed, upon every purchaser of a meal and/or
beverage, in addition to all other taxes and fees now imposed by law, a local sales
or use meals and beverage tax
upon each and every meal and/or beverage sold within the state of Rhode Island
in or from an eating and/or drinking establishment, whether prepared in the
eating and/or drinking establishment or not and whether consumed at the
premises or not, at a rate of one percent (1%) of the gross receipts. The tax shall be paid to the tax
administrator by the retailer at the time and in the manner provided.
(b) All sums received
by the division of taxation under this section as taxes, penalties or
forfeitures, interest, costs of suit and fines shall be distributed at least
quarterly, credited and paid by the state treasurer to the city or town where
the meals and beverages are delivered.
(c) When used in this
section, the following words have the following meanings:
(1) “Beverage” means
all nonalcoholic beverages, as well as alcoholic beverages, beer, lager beer,
ale, porter, wine, similar fermented malt or vinous liquor.
(2) “Eating and/or
drinking establishments” mean and include restaurants, bars, taverns, lounges,
cafeterias, lunch counters, drive‑ins, roadside ice cream and refreshment
stands, fish and chip places, fried chicken places, pizzerias, food and drink
concessions, or similar facilities in amusement parks, bowling alleys, clubs,
caterers, drive-in theatres, industrial plants, race tracks, shore resorts or other
locations, lunch carts, mobile canteens and other similar vehicles, and other
like places or business which furnish or provide facilities for immediate
consumption of food at tables, chairs or counters or from trays, plates, cups
or other tableware or in parking facilities provided primarily for the use of
patrons in consuming products purchased at the location. Ordinarily, eating establishments do not
mean and include food stores and supermarkets.
Eating establishments do not mean “vending machines,” a self-contained
automatic device that dispenses for sale foods, beverages, or confection
products. Retailers selling prepared
foods in bulk either in customer-furnished containers or in the seller’s
containers, for example “Soup and Sauce” establishments, are deemed to be
selling prepared foods ordinarily for immediate consumption and as such are
considered eating establishments.
(3) “Meal” means any
prepared food or beverage offered or held out for sale by an eating and/or
drinking establishment for the purpose of being consumed by any person to
satisfy the appetite and which is ready for immediate consumption. All such food and beverage, unless otherwise
specifically exempted or excluded herein shall be included, whether intended to
be consumed on the seller’s premises or elsewhere, whether designated as
breakfast, lunch, snack, dinner, supper or by some other name, and without
regard to the manner, time or place of service.
(d) This local sales
or use meals and beverage
tax shall be administered and collected by the division of taxation and unless
provided to the contrary in this chapter, all of the administration,
collection, and other provisions of chapters 18 and 19 of this article apply.
44-18-25. Presumption that sale is for storage, use,
or consumption -- Resale certificate. -- It is presumed
that all gross receipts are subject to the sales tax, and that the use of all
tangible personal property is subject to the use tax, and that all tangible
personal property sold or in processing or intended for delivery or delivered
in this state is sold or delivered for storage, use, or other consumption in
this state, until the contrary is established to the satisfaction of the tax
administrator. The burden of proving
the contrary is upon the person who makes the sale and the purchaser, unless
the person who makes the sale takes from the purchaser a certificate to the
effect that the purchase was for resale.
The certificate relieves the person making the sale from the burden
of proof only if taken in good faith from a person who is engaged in the
business of making sales at retail and who holds a permit as provided in
section § 44-19-2 or 44-19-3 and who, at the time of making the purchase,
intends to sell what is so purchased in the regular course of business or is
unable to ascertain at the time of purchase whether what is purchased will be
sold or will be used for some other purpose. The certificate shall contain any information and be in the form
that the tax administrator may require.
44-18-30. Gross receipts exempt from sales and use
taxes. -- There are exempted from the taxes imposed by
this chapter the following gross receipts:
(1) Sales and uses beyond constitutional power
of state. From the sale and from the storage, use, or other consumption in
this state of tangible personal property the gross receipts from the sale of
which, or the storage, use, or other consumption of which, this state is
prohibited from taxing under the Constitution of the United States or under the
constitution of this state.
(2) Newspapers.
(i) From the sale and
from the storage, use, or other consumption in this state of any newspaper.
(ii)
"Newspaper" means an unbound publication printed on newsprint, which
contains news, editorial comment, opinions, features, advertising matter, and
other matters of public interest.
(iii)
"Newspaper" does not include a magazine, handbill, circular, flyer,
sales catalog, or similar item unless the item is printed for and distributed
as a part of a newspaper.
(3) School meals. From the sale and from the
storage, use, or other consumption in this state of meals served by public,
private, or parochial schools, school districts, colleges, universities,
student organizations, and parent teacher associations to the students or
teachers of a school, college, or university whether the meals are served by
the educational institutions or by a food service or management entity under
contract to the educational institutions.
(4) Containers
(i) From the sale and
from the storage, use, or other consumption in this state of:
(A) Non-returnable
containers, including boxes, paper bags, and wrapping materials which are
biodegradable and all bags and wrapping materials utilized in the medical and
healing arts, when sold without the contents to persons who place the contents
in the container and sell the contents with the container.
(B) Containers when
sold with the contents if the sale price of the contents is not required to be
included in the measure of the taxes imposed by this chapter.
(C) Returnable
containers when sold with the contents in connection with a retail sale of the
contents or when resold for refilling.
(ii) As used in this
subdivision, the term "returnable containers" means containers of a
kind customarily returned by the buyer of the contents for reuse. All other
containers are "non-returnable containers."
(5) Charitable, educational, and religious
organizations. (i) From the sale to as in defined in this section, and from
the storage, use, and other consumption in this state or any other state of the
United States of America of tangible personal property by hospitals not
operated for a profit, "educational institutions" as defined in
subdivision (18) not operated for a profit, churches, orphanages, and other
institutions or organizations operated exclusively for religious or charitable
purposes, interest free loan associations not operated for profit, nonprofit
organized sporting leagues and associations and bands for boys and girls under
the age of nineteen (19) years, the following vocational student organizations
that are state chapters of national vocational students organizations:
Distributive Education Clubs of America, (DECA); Future Business Leaders of
America, phi beta lambda (FBLA/PBL); Future Farmers of America (FFA); Future
Homemakers of America/Home Economics Related Occupations (FHA/HERD); and
Vocational Industrial Clubs of America (VICA), organized nonprofit golden age
and senior citizens clubs for men and women, and parent teacher associations.
(ii) In the case of
contracts entered into with the federal government, its agencies or
instrumentalities, this state or any other state of the United States of
America, its agencies, any city, town, district, or other political subdivision
of the states, hospitals not operated for profit, educational institutions not
operated for profit, churches, orphanages, and other institutions or
organizations operated exclusively for religious or charitable purposes, the
contractor may purchase such materials and supplies (materials and/or supplies
are defined as those which are essential to the project) that are to be
utilized in the construction of the projects being performed under the
contracts without payment of the tax.
(iii) The contractor
shall not charge any sales or use tax to any exempt agency, institution, or
organization but shall in that instance provide his or her suppliers with
certificates in the form as determined by the division of taxation showing the
reason for exemption; and the contractor's records must substantiate the claim
for exemption by showing the disposition of all property so purchased. If any
property is then used for a nonexempt purpose, the contractor must pay the tax
on the property used.
(6) Gasoline. From the sale and from the
storage, use, or other consumption in this state of: (i) gasoline and other
products taxed under chapter 36 of title 31, and (ii) fuels used for the
propulsion of airplanes.
(7) Purchase for manufacturing purposes.
(i) From the sale and
from the storage, use, or other consumption in this state of computer software,
tangible personal property, electricity, natural gas, artificial gas, steam,
refrigeration, and water, when the property or service is purchased for the
purpose of being manufactured into a finished product for resale, and becomes
an ingredient, component, or integral part of the manufactured, compounded,
processed, assembled, or prepared product, or if the property or service is
consumed in the process of manufacturing for resale computer software, tangible
personal property, electricity, natural gas, artificial gas, steam,
refrigeration, or water.
(ii)
"Consumed" means destroyed, used up, or worn out to the degree or
extent that the property cannot be repaired, reconditioned, or rendered fit for
further manufacturing use.
(iii)
"Consumed" includes mere obsolescence.
(iv)
"Manufacturing" means and includes manufacturing, compounding,
processing, assembling, preparing, or producing.
(v) "Process of
manufacturing" means and includes all production operations performed in
the producing or processing room, shop, or plant, insofar as the operations are
a part of and connected with the manufacturing for resale of tangible personal
property, electricity, natural gas, artificial gas, steam, refrigeration, or
water and all production operations performed insofar as the operations are a
part of and connected with the manufacturing for resale of computer software.
(vi) "Process of
manufacturing" does not mean or include administration operations such as
general office operations, accounting, collection, sales promotion, nor does it
mean or include distribution operations which occur subsequent to production
operations, such as handling, storing, selling, and transporting the
manufactured products, even though the administration and distribution
operations are performed by or in connection with a manufacturing business.
(8) State and political subdivisions. From
the sale to, and from the storage, use, or other consumption by, this state,
any city, town, district, or other political subdivision of this state. Every
redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be
a subdivision of the municipality where it is located.
(9) Food
products.
(i) From the sale and
the storage, use, or other consumption in this state, subsequent to March 31,
1948, of food products for human consumption.
(ii) "Food
products" includes except as otherwise provided in this subdivision,
cereals and cereal products; milk and milk products, other than candy and
confectionary, but including ice cream; oleomargarine; meat and meat products;
fish and fish products; eggs and egg products; vegetables and vegetable
products; fruit and fruit products, including pure fruit juices; spices,
condiments, and salt; sugar and sugar products other than candy and
confectionery; coffee and coffee substitutes; tea, cocoa and cocoa products,
other than candy and confectionery; non-carbonated and non-effervescent bottled
waters sold for human consumption.
(iii) "Food
products" shall not include spirituous, malt, or vinous liquors; soft
drinks, sodas, or beverages that are ordinarily dispensed at bars or soda
fountains or in connection therewith; medicines, tonics, vitamins and
preparations in liquid, powdered, granular, tablet, capsule, lozenge, or pill
form, sold as dietary supplements or adjuncts, except when sold on the
prescription of a physician; or mineral and carbonated bottled waters and ice.
(iv) "Food
products" also does not include meals served on or off the premises of the
retailer; or drinks or food furnished, prepared, or served for consumption at
tables, chairs, or counters, or from trays, glasses, dishes, or other tableware
provided by the retailer.
(v) "The sale of
meals and other food products ordinarily sold for immediate consumption on or
off the premises of the retailer is a taxable sale even though such products
are sold on a "take out" or "to go" order, and are actually
packaged or wrapped and taken from the premises.
(9) Food and food ingredients.—From the sale
and storage, use, or other consumption in this state of food and food
ingredients as defined in section 44-18-7.1(l).
For the purposes of
this exemption “food and food ingredients” shall not include candy, soft
drinks, dietary supplements, alcoholic beverages, tobacco, food sold through
vending machines or prepared food (as those terms are defined in § 44-18-7.1,
unless the prepared food is:
(i) Sold by a seller whose primary NAICS
classification is manufacturing in sector 311, except sub-sector 3118
(bakeries);
(ii) Sold in an unheated state by weight or
volume as a single item;
(iii) Bakery items,
including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts,
danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and
is not sold with
utensils provided by the seller, including plates, knives, forks, spoons,
glasses, cups, napkins, or straws.
(10) Medicines, and drugs and
durable medical equipment.
From the sale and from the storage, use, or other consumption in this
state, subsequent to March 31, 1948, of;
(i) “medicines” and
“drugs” as defined in § 5-19-1 [repealed] 44-18-7.1(h)(i),
sold on prescriptions, and proprietary medicines, popularly called patent
medicines, including, but not limited to, disposable or reusable devices such
as syringe infusers, ambulatory drug delivery pumps and supplies used with
these items which are sold on prescription to individuals to be used by them to
dispense or administer prescription drugs, and related ancillary dressings and
supplies used to dispense or administer prescription drugs blood,
medical oxygen, and insulin whether or not sold on prescription, and
over-the-counter drugs as defined in section 44-18-7.1(h)(ii). For purposes of this exemption over‑the‑counter
drugs shall not include grooming and hygiene products as defined in section
44-18-7.1(h)(iii).
(ii) Durable medical
equipment as defined in section 44‑18‑7.1(k) for home use only,
including, but not limited to, syringe infusers, ambulatory drug delivery
pumps, hospital beds, convalescent chairs, and chair lifts. Supplies used in connection with syringe
infusers and ambulatory drug delivery pumps which are sold on prescription to
individuals to be used by them to dispense or administer prescription drugs,
and related ancillary dressings and supplies used to dispense or administer
prescription drugs shall also be exempt from tax.
(11) Prosthetic and orthopedic appliances devices
and mobility enhancing equipment.
From the sale and from the storage, use, or other consumption in this
state, subsequent to March 31, 1948, of prosthetic devices as defined
in section 44‑18-7.1(t), sold on prescription, including but not limited
to, crutches, artificial limbs, dentures, spectacles and eyeglasses,
and artificial eyes; artificial hearing devices and other prostheses or
orthopedic appliances designed and purchased to be worn on the person of the
owner or user and hearing aids, whether or not sold on prescription and
mobility enhancing equipment as defined in 44-18-7.1(p) including wheelchairs,
crutches and canes.
(12) Coffins, caskets, and burial garments.
From the sale and from the storage, use, or other consumption in this state of
coffins or caskets, and shrouds or other burial garments which are ordinarily
sold by a funeral director as part of the business of funeral directing.
(13) Motor vehicles sold to nonresidents.
(i) From the sale,
subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident of this
state who does not register the motor vehicle in this state, whether the sale
or delivery of the motor vehicle is made in this state or at the place of
residence of the nonresident. A motor vehicle sold to a bona fide nonresident
whose state of residence does not allow a like exemption to its nonresidents is
not exempt from the tax imposed under § 44-18-20. In that event the bona fide
nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate
that would be imposed in his or her state of residence not to exceed the rate
that would have been imposed under § 44-18-20.
Notwithstanding any other provisions of law, a licensed motor vehicle
dealer shall add and collect the tax required under this subdivision and remit
the tax to the tax administrator under the provisions of chapters 18 and 19 of
this title. When a Rhode Island licensed motor vehicle dealer is required to
add and collect the sales and use tax on the sale of a motor vehicle to a bona
fide nonresident as provided in this section, the dealer in computing the tax
takes into consideration the law of the state of the nonresident as it relates
to the trade-in of motor vehicles.
(ii) The tax
administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may
require any licensed motor vehicle dealer to keep records of sales to bona fide
nonresidents as the tax administrator deems reasonably necessary to
substantiate the exemption provided in this subdivision, including the
affidavit of a licensed motor vehicle dealer that the purchaser of the motor
vehicle was the holder of, and had in his or her possession a valid out of
state motor vehicle registration or a valid out of state driver's license.
(iii) Any nonresident
who registers a motor vehicle in this state within ninety (90) days of the date
of its sale to him or her is deemed to have purchased the motor vehicle for
use, storage, or other consumption in this state, and is subject to, and liable
for the use tax imposed under the provisions of § 44-18-20.
(14) Sales in public buildings by blind people.
From the sale and from the storage, use, or other consumption in all public
buildings in this state of all products or wares by any person licensed under §
40-9-11.1.
(15) Air and water pollution control facilities.
From the sale, storage, use, or other consumption in this state of tangible
personal property or supplies acquired for incorporation into or used and
consumed in the operation of a facility, the primary purpose of which is to aid
in the control of the pollution or contamination of the waters or air of the
state, as defined in chapter 12 of title 46 and chapter 25 of title 23,
respectively, and which has been certified as approved for that purpose by the
director of environmental management. The director of environmental management
may certify to a portion of the tangible personal property or supplies acquired
for incorporation into those facilities or used and consumed in the operation
of those facilities to the extent that that portion has as its primary purpose
the control of the pollution or contamination of the waters or air of this
state. As used in this subdivision, "facility" means any land,
facility, device, building, machinery, or equipment.
(16) Camps. From the rental charged for
living quarters, or sleeping or housekeeping accommodations at camps or retreat
houses operated by religious, charitable, educational, or other organizations
and associations mentioned in subdivision (5), or by privately owned and
operated summer camps for children.
(17) Certain institutions. From the rental
charged for living or sleeping quarters in an institution licensed by the state
for the hospitalization, custodial, or nursing care of human beings.
(18) Educational institutions. From the
rental charged by any educational institution for living quarters, or sleeping
or housekeeping accommodations or other rooms or accommodations to any student
or teacher necessitated by attendance at an educational institution.
"Educational institution" as used in this section means an institution
of learning not operated for profit which is empowered to confer diplomas,
educational, literary, or academic degrees, which has a regular faculty,
curriculum, and organized body of pupils or students in attendance throughout
the usual school year, which keeps and furnishes to students and others records
required and accepted for entrance to schools of secondary, collegiate, or
graduate rank, no part of the net earnings of which inures to the benefit of
any individual.
(19) Motor vehicle and adaptive equipment for
persons with disabilities.
(i) From the sale of:
(A) special adaptations, (B) the component parts of the special adaptations, or
(C) a specially adapted motor vehicle; provided, that the owner furnishes to
the tax administrator an affidavit of a licensed physician to the effect that
the specially adapted motor vehicle is necessary to transport a family member
with a disability or where the vehicle has been specially adapted to meet the
specific needs of the person with a disability. This exemption applies to not
more than one motor vehicle owned and registered for personal, noncommercial
use.
(ii) For the purpose
of this subsection the term "special adaptations" includes, but is
not limited to: wheelchair lifts; wheelchair carriers; wheelchair ramps;
wheelchair securements; hand controls; steering devices; extensions,
relocations, and crossovers of operator controls; power-assisted controls;
raised tops or dropped floors; raised entry doors; or alternative signaling
devices to auditory signals.
(iii) For the purpose
of this subdivision the exemption for a "specially adapted motor
vehicle" means a use tax credit not to exceed the amount of use tax that
would otherwise be due on the motor vehicle, exclusive of any adaptations. The
use tax credit is equal to the cost of the special adaptations, including
installation.
(20) Heating fuels. From the sale and from
the storage, use, or other consumption in this state of every type of fuel used
in the heating of homes and residential premises.
(21) Electricity and gas. From the sale and
from the storage, use, or other consumption in this state of electricity and
gas furnished for domestic use by occupants of residential premises.
(22) Manufacturing machinery and equipment.
(i) From the sale and
from the storage, use, or other consumption in this state of tools, dies, and
molds, and machinery and equipment (including replacement parts), and related
items to the extent used in an industrial plant in connection with the actual
manufacture, conversion, or processing of tangible personal property, or to the
extent used in connection with the actual manufacture, conversion or processing
of computer software as that term is utilized in industry numbers 7371, 7372,
and 7373 in the standard industrial classification manual prepared by the
technical committee on industrial classification, office of statistical
standards, executive office of the president, United States bureau of the
budget, as revised from time to time, to be sold, or that machinery and equipment
used in the furnishing of power to an industrial manufacturing plant. For the
purposes of this subdivision, "industrial plant" means a factory at a
fixed location primarily engaged in the manufacture, conversion, or processing
of tangible personal property to be sold in the regular course of business;
(ii) Machinery and
equipment and related items are not deemed to be used in connection with the
actual manufacture, conversion, or processing of tangible personal property, or
in connection with the actual manufacture, conversion or processing of computer
software as that term is utilized in industry numbers 7371, 7372, and 7373 in
the standard industrial classification manual prepared by the technical
committee on industrial classification, office of statistical standards,
executive office of the president, United States bureau of the budget, as
revised from time to time, to be sold to the extent the property is used in
administration or distribution operations;
(iii) Machinery and
equipment and related items used in connection with the actual manufacture,
conversion, or processing of any computer software or any tangible personal
property which is not to be sold and which would be exempt under subdivision
(7) or this subdivision if purchased from a vendor or machinery and equipment
and related items used during any manufacturing, converting or processing
function is exempt under this subdivision even if that operation, function, or
purpose is not an integral or essential part of a continuous production flow or
manufacturing process;
(iv) Where a portion
of a group of portable or mobile machinery is used in connection with the
actual manufacture, conversion, or processing of computer software or tangible
personal property to be sold, as previously defined, that portion, if otherwise
qualifying, is exempt under this subdivision even though the machinery in that
group is used interchangeably and not otherwise identifiable as to use.
(23) Trade-in value of motor vehicles. From the
sale and from the storage, use, or other consumption in this state of so much
of the purchase price paid for a new or used automobile as is allocated for a
trade-in allowance on the automobile of the buyer given in trade to the seller
or of the proceeds applicable only to the motor vehicle as are received from an
insurance claim as a result of a stolen or damaged motor vehicle, or of the
proceeds applicable only to the automobile as are received from the
manufacturer of automobiles for the repurchase of the automobile whether the
repurchase was voluntary or not towards the purchase of a new or used
automobile by the buyer; provided, that the proceeds from an insurance claim or
repurchase is in lieu of the benefit prescribed in § 44-18-21 for the total loss
or destruction of the automobile; and provided, further, that the tax has not
been reimbursed as part of the insurance claim or repurchase. For the purpose
of this subdivision, the word "automobile" means a private passenger
automobile not used for hire and does not refer to any other type of motor
vehicle.
(24) Precious metal bullion.
(i) From the sale and
from the storage, use, or other consumption in this state of precious metal
bullion, substantially equivalent to a transaction in securities or commodities.
(ii) For purposes of
this subdivision, "precious metal bullion" means any elementary
precious metal which has been put through a process of smelting or refining,
including, but not limited to, gold, silver, platinum, rhodium, and chromium,
and which is in a state or condition that its value depends upon its content
and not upon its form.
(iii) The term does
not include fabricated precious metal which has been processed or manufactured
for some one or more specific and customary industrial, professional, or
artistic uses.
(25) Commercial vessels. From sales made to a
commercial ship, barge, or other vessel of fifty (50) tons burden or over,
primarily engaged in interstate or foreign commerce, and from the repair,
alteration, or conversion of the vessels, and from the sale of property
purchased for the use of the vessels including provisions, supplies, and
material for the maintenance and/or repair of the vessels.
(26) Commercial fishing vessels. From the
sale and from the storage, use, or other consumption in this state of vessels
and other water craft which are in excess of five (5) net tons and which are
used exclusively for "commercial fishing", as defined in this
subdivision, and from the repair, alteration, or conversion of those vessels and
other watercraft, and from the sale of property purchased for the use of those
vessels and other watercraft including provisions, supplies, and material for
the maintenance and/or repair of the vessels and other watercraft and the boats
nets, cables, tackle, and other fishing equipment appurtenant to or used in
connection with the commercial fishing of the vessels and other watercraft.
"Commercial fishing" means the taking or the attempting to take any
fish, shellfish, crustacea, or bait species with the intent of disposing of
them for profit or by sale, barter, trade, or in commercial channels. The term
does not include subsistence fishing, i.e., the taking for personal use and not
for sale or barter; or sport fishing; but shall include vessels and other
watercraft with a Rhode Island party and charter boat license issued by the
department of environmental management pursuant to § 20-2-27.1 which meet the
following criteria: (i) the operator must have a current U.S.C.G. license to
carry passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide
fishery trade; (iii) U.S.C.G. vessel documentation as to proof of Rhode Island
home port status or a Rhode Island boat registration to prove Rhode Island home
port status; (iv) the vessel must be used as a commercial passenger carrying
fishing vessel to carry passengers for fishing. The vessel must be able to
demonstrate that at least fifty percent (50%) of its annual gross income
derives from charters or provides documentation of a minimum of one hundred
(100) charter trips annually; (v) the vessel must have a valid Rhode Island
party and charter boat license. The tax administrator shall implement the
provisions of this subdivision by promulgating rules and regulations relating
thereto.
(27) Clothing and footwear. From the sales of articles of clothing,
including footwear, intended to be worn or carried on or about the human
body. For the purposes of this section
“clothing or footwear” does not include clothing accessories or equipment or
special clothing or footwear primarily designed for athletic activity or
protective use as these terms are defined in section 44-18-7.1(f) and
which is not normally worn except when so used; and sales of wearing materials
or any cloth made of natural or synthetic fibers and used for clothing purposes.
(28) Water for residential use. From the sale
and from the storage, use, or other consumption in this state of water
furnished for domestic use by occupants of residential premises.
(29) Bibles. [Unconstitutional; see Ahlburn
v. Clark, 728 A.2d 449 (R.I. 1999); see Notes to Decisions.] From the sale and
from the storage, use, or other consumption in the state of any canonized
scriptures of any tax-exempt nonprofit religious organization including, but
not limited to, the Old Testament and the New Testament versions.
(30) Boats.
(i) From the sale of a
boat or vessel to a bona fide nonresident of this state who does not register
the boat or vessel in this state, or document the boat or vessel with the
United States government at a home port within the state, whether the sale or
delivery of the boat or vessel is made in this state or elsewhere; provided,
that the nonresident transports the boat within thirty (30) days after delivery
by the seller outside the state for use thereafter solely outside the state.
(ii) The tax
administrator, in addition to the provisions of §§ 44-19-17 and 44-19-28, may
require the seller of the boat or vessel to keep records of the sales to bona
fide nonresidents as the tax administrator deems reasonably necessary to
substantiate the exemption provided in this subdivision, including the
affidavit of the seller that the buyer represented himself or herself to be a
bona fide nonresident of this state and of the buyer that he or she is a
nonresident of this state.
(31) Youth activities equipment. From the
sale, storage, use, or other consumption in this state of items for not more
than twenty dollars ($20.00) each by nonprofit Rhode Island eleemosynary
organizations, for the purposes of youth activities which the organization is
formed to sponsor and support; and by accredited elementary and secondary
schools for the purposes of the schools or of organized activities of the
enrolled students.
(32) Farm equipment. From the sale and from
the storage or use of machinery and equipment used directly for commercial
farming and agricultural production; including, but not limited to, tractors,
ploughs, harrows, spreaders, seeders, milking machines, silage conveyors,
balers, bulk milk storage tanks, trucks with farm plates, mowers, combines,
irrigation equipment, greenhouses and greenhouse coverings, graders and
packaging machines, tools and supplies and other farming equipment, including
replacement parts, appurtenant to or used in connection with commercial farming
and tools and supplies used in the repair and maintenance of farming equipment.
"Commercial farming" means the keeping or boarding of five (5) or
more horses or the production within this state of agricultural products,
including, but not limited to, field or orchard crops, livestock, dairy, and
poultry, or their products, where the keeping, boarding, or production provides
at least two thousand five hundred dollars ($2,500) in annual gross sales to
the operator, whether an individual, a group, a partnership, or a corporation
for exemptions issued prior to July 1, 2002; for exemptions issued or renewed
after July 1, 2002, there shall be two (2) levels. Level I shall be based on
proof of annual gross sales from commercial farming of at least twenty-five
hundred dollars ($2,500) and shall be valid for purchases subject to the
exemption provided in this subdivision except for motor vehicles with an excise
tax value of five thousand dollars ($5,000) or greater; Level II shall be based
on proof of annual gross sales from commercial farming of at least ten thousand
dollars ($10,000) or greater and shall be valid for purchases subject to the
exemption provided in this subdivision including motor vehicles with an excise
tax value of five thousand dollars ($5,000) or greater. For the initial
issuance of the exemptions, proof of the requisite amount of annual gross sales
from commercial farming shall be required for the prior year; for any renewal
of an exemption granted in accordance with this subdivision at either Level I
or Level II, proof of gross annual sales from commercial farming at the
requisite amount shall be required for each of the prior two (2) years.
Certificates of exemption issued or renewed after July 1, 2002, shall clearly
indicate the level of the exemption and be valid for four (4) years after the
date of issue. This exemption applies even if the same equipment is used for
ancillary uses, or is temporarily used for a non-farming or a non-agricultural
purpose, but shall not apply to motor vehicles acquired after July 1, 2002,
unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is
eligible for registration displaying farm plates as provided for in § 31-3-31.
(33) Compressed air. From the sale and from
the storage, use, or other consumption in the state of compressed air.
(34) Flags. From the sale and from the
storage, consumption, or other use in this state of United States, Rhode Island
or POW-MIA flags.
(35) Motor vehicle and adaptive equipment to
certain veterans. From the sale of a motor vehicle and adaptive equipment
to and for the use of a veteran with a service-connected loss of or the loss of
use of a leg, foot, hand, or arm, or any veteran who is a double amputee,
whether service connected or not. The motor vehicle must be purchased by and
especially equipped for use by the qualifying veteran. Certificate of exemption
or refunds of taxes paid is granted under rules or regulations that the tax
administrator may prescribe.
(36) Textbooks. From the sale and from the
storage, use, or other consumption in this state of textbooks by an
"educational institution" as defined in subdivision (18) of this
section and as well as any educational institution within the purview of §
16-63-9(4) and used textbooks by any purveyor.
(37) Tangible personal property and supplies used
in on-site hazardous waste recycling, reuse, or treatment. From the sale,
storage, use, or other consumption in this state of tangible personal property
or supplies used or consumed in the operation of equipment, the exclusive
function of which is the recycling, reuse, or recovery of materials (other than
precious metals, as defined in subdivision (24)(ii) of this section) from the
treatment of "hazardous wastes", as defined in § 23-19.1-4, where the
"hazardous wastes" are generated in Rhode Island solely by the same
taxpayer and where the personal property is located at, in, or adjacent to a
generating facility of the taxpayer in Rhode Island. The taxpayer shall procure
an order from the director of the department of environmental management
certifying that the equipment and/or supplies as used, or consumed, qualify for
the exemption under this subdivision. If any information relating to secret
processes or methods of manufacture, production, or treatment is disclosed to
the department of environmental management only to procure an order, and is a
"trade secret" as defined in § 28-21-10(b), it is not open to public
inspection or publicly disclosed unless disclosure is required under chapter 21
of title 28 or chapter 24.4 of title 23.
(38) Promotional and product literature of boat
manufacturers. From the sale and from the storage, use, or other
consumption of promotional and product literature of boat manufacturers shipped
to points outside of Rhode Island which either: (i) accompany the product which
is sold, (ii) are shipped in bulk to out of state dealers for use in the sale
of the product, or (iii) are mailed to customers at no charge.
(39) Food items paid for by food stamps. From
the sale and from the storage, use, or other consumption in this state of
eligible food items payment for which is properly made to the retailer in the
form of U.S. government food stamps issued in accordance with the Food Stamp
Act of 1977, 7 U.S.C. § 2011 et seq.
(40) Transportation charges. From the sale or
hiring of motor carriers as defined in § 39-12-2(l) to haul goods, when the
contract or hiring cost is charged by a motor freight tariff filed with the
Rhode Island public utilities commission on the number of miles driven or by
the number of hours spent on the job.
(41) Trade-in value of boats. From the sale
and from the storage, use, or other consumption in this state of so much of the
purchase price paid for a new or used boat as is allocated for a trade-in
allowance on the boat of the buyer given in trade to the seller or of the
proceeds applicable only to the boat as are received from an insurance claim as
a result of a stolen or damaged boat, towards the purchase of a new or used
boat by the buyer.
(42) Equipment used for research and development.
From the sale and from the storage, use, or other consumption of equipment to
the extent used for research and development purposes by a qualifying firm. For
the purposes of this subdivision, "qualifying firm" means a business
for which the use of research and development equipment is an integral part of
its operation, and "equipment" means scientific equipment, computers,
software, and related items.
(43) Coins. From the sale and from the other
consumption in this state of coins having numismatic or investment value.
(44) Farm structure construction materials.
Lumber, hardware and other materials used in the new construction of farm
structures, including production facilities such as, but not limited to,
farrowing sheds, free stall and stanchion barns, milking parlors, silos,
poultry barns, laying houses, fruit and vegetable storages, rooting cellars,
propagation rooms, greenhouses, packing rooms, machinery storage, seasonal farm
worker housing, certified farm markets, bunker and trench silos, feed storage
sheds, and any other structures used in connection with commercial farming.
(45) Telecommunications carrier access service.
Carrier access service or telecommunications service when purchased by a
telecommunications company from another telecommunications company to
facilitate the provision of telecommunications service.
(46) Boats or vessels brought into the state
exclusively for winter storage, maintenance, repair or sale.
Notwithstanding the provisions of §§ 44-18-10, 44-18-11, 44-18-20, the tax
imposed by § 44-18-20 is not applicable for the period commencing on the first
day of October in any year to and including the 30th day of April next
succeeding with respect to the use of any boat or vessel within this state
exclusively for purposes of: (i) delivery of the vessel to a facility in this
state for storage, including dry storage and storage in water by means of
apparatus preventing ice damage to the hull, maintenance, or repair; (ii) the
actual process of storage, maintenance, or repair of the boat or vessel; or
(iii) storage for the purpose of selling the boat or vessel.
(47) Jewelry display product. From the sale
and from the storage, use, or other consumption in this state of tangible
personal property used to display any jewelry product; provided, that title to
the jewelry display product is transferred by the jewelry manufacturer or
seller and that the jewelry display product is shipped out of state for use
solely outside the state and is not returned to the jewelry manufacturer or
seller.
(48) Boats or vessels generally.
Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18-20
and 44-18-18 shall not apply with respect to the sale and to the storage, use, or
other consumption in this state of any new or used boat. The exemption provided
for in this subdivision does not apply after October 1, 1993, unless prior to
October 1, 1993, the federal ten percent (10%) surcharge on luxury boats is
repealed.
(49) Banks and Regulated investment companies
interstate toll-free calls. Notwithstanding the provisions of this chapter,
the tax imposed by this chapter does not apply to the furnishing of interstate
and international, toll-free terminating telecommunication service that is used
directly and exclusively by or for the benefit of an eligible company as
defined in this subdivision; provided, that an eligible company employs on
average during the calendar year no less than five hundred (500)
"full-time equivalent employees", as that term is defined in §
42-64.5-2. For purposes of this section, an "eligible company" means
a "regulated investment company" as that term is defined in the
Internal Revenue Code of 1986, 26 U.S.C. § 1 et seq., or a corporation to the
extent the service is provided, directly or indirectly, to or on behalf of a
regulated investment company, an employee benefit plan, a retirement plan or a
pension plan or a state chartered bank.
(50) Mobile and manufactured homes generally.
From the sale and from the storage, use, or other consumption in this state of
mobile and/or manufactured homes as defined and subject to taxation pursuant to
the provisions of chapter 44 of title 31.
(51) Manufacturing business reconstruction
materials.
(i) From the sale and
from the storage, use or other consumption in this state of lumber, hardware,
and other building materials used in the reconstruction of a manufacturing
business facility which suffers a disaster, as defined in this subdivision, in
this state. "Disaster" means any occurrence, natural or otherwise,
which results in the destruction of sixty percent (60%) or more of an operating
manufacturing business facility within this state. "Disaster" does
not include any damage resulting from the willful act of the owner of the
manufacturing business facility.
(ii) Manufacturing
business facility includes, but is not limited to, the structures housing the
production and administrative facilities.
(iii) In the event a
manufacturer has more than one manufacturing site in this state, the sixty
percent (60%) provision applies to the damages suffered at that one site.
(iv) To the extent
that the costs of the reconstruction materials are reimbursed by insurance,
this exemption does not apply.
(52) Tangible personal property and supplies used
in the processing or preparation of floral products and floral arrangements.
From the sale, storage, use, or other consumption in this state of tangible
personal property or supplies purchased by florists, garden centers, or other
like producers or vendors of flowers, plants, floral products, and natural and
artificial floral arrangements which are ultimately sold with flowers, plants,
floral products, and natural and artificial floral arrangements or are
otherwise used in the decoration, fabrication, creation, processing, or
preparation of flowers, plants, floral products, or natural and artificial
floral arrangements, including descriptive labels, stickers, and cards affixed
to the flower, plant, floral product or arrangement, artificial flowers, spray
materials, floral paint and tint, plant shine, flower food, insecticide and
fertilizers.
(53) Horse food products. From the sale and
from the storage, use, or other consumption in this state of horse food
products purchased by a person engaged in the business of the boarding of
horses.
(54) Non-motorized recreational vehicles sold to
nonresidents.
(i) From the sale,
subsequent to June 30, 2003, of a non-motorized recreational vehicle to a bona
fide nonresident of this state who does not register the non-motorized
recreational vehicle in this state, whether the sale or delivery of the
non-motorized recreational vehicle is made in this state or at the place of
residence of the nonresident; provided, that a non-motorized recreational
vehicle sold to a bona fide nonresident whose state of residence does not allow
a like exemption to its nonresidents is not exempt from the tax imposed under §
44-18-20; provided, further, that in that event the bona fide nonresident pays
a tax to Rhode Island on the sale at a rate equal to the rate that would be
imposed in his or her state of residence not to exceed the rate that would have
been imposed under § 44-18-20. Notwithstanding any other provisions of law, a
licensed non-motorized recreational vehicle dealer shall add and collect the
tax required under this subdivision and remit the tax to the tax administrator
under the provisions of chapters 18 and 19 of this title. Provided, that when a
Rhode Island licensed non-motorized recreational vehicle dealer is required to
add and collect the sales and use tax on the sale of a non-motorized
recreational vehicle to a bona fide nonresident as provided in this section,
the dealer in computing the tax takes into consideration the law of the state
of the nonresident as it relates to the trade-in of motor vehicles.
(ii) The tax
administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may
require any licensed non-motorized recreational vehicle dealer to keep records
of sales to bona fide nonresidents as the tax administrator deems reasonably
necessary to substantiate the exemption provided in this subdivision, including
the affidavit of a licensed non-motorized recreational vehicle dealer that the
purchaser of the non-motorized recreational vehicle was the holder of, and had
in his or her possession a valid out-of-state non-motorized recreational
vehicle registration or a valid out-of-state driver's license.
(iii) Any nonresident
who registers a non-motorized recreational vehicle in this state within ninety
(90) days of the date of its sale to him or her is deemed to have purchased the
non-motorized recreational vehicle for use, storage, or other consumption in
this state, and is subject to, and liable for the use tax imposed under the
provisions of § 44-18-20.
(iv)
"Non-motorized recreational vehicle" means any portable dwelling
designed and constructed to be used as a temporary dwelling for travel,
camping, recreational, and vacation use which is eligible to be registered for
highway use, including, but not limited to, "pick-up coaches" or
"pick-up campers," "travel trailers," and "tent
trailers" as those terms are defined in chapter 1 of title 31.
(55) Sprinkler and fire alarm systems in existing
buildings. From the sale in this state of sprinkler and fire alarm systems,
emergency lighting and alarm systems, and from the sale of the materials
necessary and attendant to the installation of those systems, that are required
in buildings and occupancies existing therein in July 2003, in order to comply
with any additional requirements for such buildings arising directly from the
enactment of the Comprehensive Fire Safety Act of 2003, and that are not
required by any other provision of law or ordinance or regulation adopted
pursuant to that Act. The exemption provided in this subdivision shall expire
on December 31, 2008.
(56) Aircraft. Notwithstanding the provisions
of this chapter, the tax imposed by §§ 44-18-18 and 44-18-20 shall not apply
with respect to the sale and to the storage, use, or other consumption in this
state of any new or used aircraft or aircraft parts.
(57) Renewable energy products.
Notwithstanding any other provisions of Rhode Island general laws the following
products shall also be exempt from sales tax: solar photovoltaic modules or panels,
or any module or panel that generates electricity from light; solar thermal
collectors, including, but not limited to, those manufactured with flat glass
plates, extruded plastic, sheet metal, and/or evacuated tubes; geothermal heat
pumps, including both water-to-water and water-to-air type pumps; wind
turbines; towers used to mount wind turbines if specified by or sold by a wind
turbine manufacturer; DC to AC inverters that interconnect with utility power
lines; manufactured mounting racks and ballast pans for solar collector, module
or panel installation. Not to include materials that could be fabricated into
such racks; monitoring and control equipment, if specified or supplied by a
manufacturer of solar thermal, solar photovoltaic, geothermal, or wind energy
systems or if required by law or regulation for such systems but not to include
pumps, fans or plumbing or electrical fixtures unless shipped from the
manufacturer affixed to, or an integral part of, another item specified on this
list; and solar storage tanks that are part of a solar domestic hot water
system or a solar space heating system. If the tank comes with an external heat
exchanger it shall also be tax exempt, but a standard hot water tank is not
exempt from state sales tax.
(58) Returned
property. The amount charged for
property returned by customers upon rescission of the contract of sale when the
entire amount exclusive of handling charges paid for the property is refunded
in either cash or credit, and where the property is returned within one hundred
twenty (120) days from the date of delivery.
(59) Dietary
Supplements. From the sale and from the
storage, use or other consumption of dietary supplements as defined in
44-18-7.1(l)(v), sold on prescriptions.
SECTION 10. Chapter 44-18 of the General Laws entitled
“Sales and Use Taxes – Liability and Computation” is thereby amended by adding
thereto the following sections:
44-18-7.1. Additional
Definitions. -- (a) “Agreement” means the Streamlined
Sales and Use Tax Agreement.
(b) “Alcoholic
Beverages” means beverages that are suitable for human consumption and contain
one-half of one percent (.5%) or more of alcohol by volume.
(c) “Bundled
Transaction” is the retail sale of two or more products, except real property
and services to real property, where (1) the products are otherwise distinct
and identifiable, and (2) the products are sold for one non-itemized
price. A “bundled transaction” does not
include the sale of any products in which the “sales price” varies, or is
negotiable, based on the selection by the purchaser of the products included in
the transaction.
(i) “Distinct and
identifiable products” does not include:
(A) Packaging – such as containers, boxes,
sacks, bags, and bottles – or other materials – such as wrapping, labels, tags,
and instruction guides – that accompany the “retail sale” of the products and
are incidental or immaterial to the “retail sale” thereof. Examples of packaging that are incidental or
immaterial include grocery sacks, shoeboxes, dry cleaning garment bags and
express delivery envelopes and boxes.
(B) A product provided free of charge with the
required purchase of another product. A
product is “provided free of charge” if the “sales price” of the product
purchased does not vary depending on the inclusion of the products “provided
free of charge.”
(C) Items included in
the member state’s definition of “sales price,” pursuant to Appendix C of the
Agreement.
(ii) The term “one
non-itemized price” does not include a price that is separately identified by
product on binding sales or other supporting sales-related documentation made
available to the customer in paper or electronic form including, but not
limited to, an invoice, bill of sale, receipt, contract, service agreement,
lease agreement, periodic notice of rates and services, rate card, or price
list.
(iii) A transaction
that otherwise meets the definition of a “bundled transaction” as defined
above, is not a “bundled transaction” if it is:
(A) The “retail sale” of tangible personal
property and a service where the tangible personal property is essential to the
use of the service, and is provided exclusively in connection with the service,
and the true object of the transaction is the service; or
(B) The “retail sale” of services where one
service is provided that is essential to the use or receipt of a second service
and the first service is provided exclusively in connection with the second
service and the true object of the transaction is the second service; or
(C) A transaction that
includes taxable products and nontaxable products and the “purchase price” or
“sales price” of the taxable products is de minimis.
1. De minimis means
the seller’s “purchase price” or “sales price” of the taxable products is ten
percent (10%) or less of the total “purchase price” or “sales price” of the
bundled products.
2. Sellers shall use
either the “purchase price” or the “sales price” of the products to determine
if the taxable products are de minimis.
Sellers may not use a combination of the “purchase price” and “sales
price” of the products to determine if the taxable products are de minimis.
3. Sellers shall use
the full term of a service contract to determine if the taxable products are de
minimis; or
(D) The “retail sale” of exempt tangible
personal property and taxable tangible personal property where:
1. the transaction
includes “food and food ingredients”, “drugs”, “durable medical equipment”,
“mobility enhancing equipment”, “over-the-counter drugs”, “prosthetic devices”
(all as defined in Section 44-18-7.1) or medical supplies; and
2. where the seller’s
“purchase price” or “sales price” of the taxable tangible personal property is
fifty percent (50%) or less of the total “purchase price” or “sales price” of
the bundled tangible personal property.
Sellers may not use a combination of the “purchase price” and “sales
price” of the tangible personal property when making the fifty percent (50%)
determination for a transaction.
(d)“Certified
Automated System (CAS)” means software certified under the Agreement to
calculate the tax imposed by each jurisdiction on a transaction, determine the
amount of tax to remit to the appropriate state, and maintain a record of the
transaction.
(e) “Certified Service
Provider (CSP)” means an agent certified under the Agreement to perform all the
seller’s sales and use tax functions, other than the seller’s obligation to
remit tax on its own purchases.
(f) Clothing and
Related Items
(i) “Clothing” means
all human wearing apparel suitable for general use.
(ii) “Clothing
accessories or equipment” means incidental items worn on the person or in
conjunction with “clothing.” “Clothing
accessories or equipment” does not include “clothing,” “sport or recreational
equipment,” or “protective equipment.”
(iii) “Protective
equipment” means items for human wear and designed as protection of the wearer
against injury or disease or as protections against damage or injury of other
persons or property but not suitable for general use. “Protective equipment” does not include “clothing,” “clothing
accessories or equipment,” and “sport or recreational equipment.”
(iv) “Sport or
recreational equipment” means items designed for human use and worn in
conjunction with an athletic or recreational activity that are not suitable for
general use. “Sport or recreational
equipment” does not include “clothing,” “clothing accessories or equipment,”
and “protective equipment.”
(g) Computer and
Related Items
(i) “Computer” means
an electronic device that accepts information in digital or similar form and
manipulates it for a result based on a sequence of instructions.
(ii) “Computer
software” means a set of coded instructions designed to cause a “computer” or
automatic data processing equipment to perform a task.
(iii) “Delivered electronically”
means delivered to the purchaser by means other than tangible storage media.
(iv) “Electronic”
means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
(v) “Load and leave”
means delivery to the purchaser by use of a tangible storage media where the
tangible storage media is not physically transferred to the purchaser.
(vi) “Prewritten
computer software” means “computer software,” including prewritten upgrades,
which is not designed and developed by the author or other creator to the
specifications of a specific purchaser.
The combining of two (2) or more “prewritten computer software” programs
or prewritten portions thereof does not cause the combination to be other than “prewritten
computer software.” “Prewritten
computer software” includes software designed and developed by the author or
other creator to the specifications of a specific purchaser when it is sold to
a person other than the specific purchaser.
Where a person modifies or enhances “computer software” of which the
person is not the author or creator, the person shall be deemed to be the
author or creator only of such person’s modifications or enhancements. “Prewritten computer software” or a
prewritten portion thereof that is modified or enhanced to any degree, where
such modification or enhancement is designed and developed to the
specifications of a specific purchaser, remains “prewritten computer software;”
provided, however, that where there is a reasonable, separately stated charge
or an invoice or other statement of the price given to the purchaser for such
modification or enhancement, such modification or enhancement shall not
constitute “prewritten computer software.”
(h) Drugs and Related
Items
(i) “Drug” means a
compound, substance or preparation, and any component of a compound, substance
or preparation, other than “food and food ingredients,” “dietary supplements”
or “alcoholic beverages:”
(A) Recognized in the
official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the
United States, or official National Formulary, and supplement to any of them;
or
(B) Intended for use
in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(C) Intended to affect the structure of any
function of the body.
“Drug” shall also
include blood, insulin and medical oxygen whether or not sold on prescription.
(ii)
“Over-the-counter-drug” means a drug that contains a label that identifies the
product as a drug as required by 21 C.F.R. § 201.66. The “over-the-counter-drug” label includes:
(A) A “Drug Facts” panel; or
(B) A statement of the “active ingredient(s)”
with a list of those ingredients contained in the compound, substance or
preparation.
“Over-the-counter-drug”
shall not include “grooming and hygiene products.”
(iii) “Grooming and
hygiene products” are soaps and cleaning solutions, shampoo, toothpaste,
mouthwash, antiperspirants, and suntan lotions and screens, regardless of
whether the items meet the definition of “over-the-counter-drugs.”
(iv) “Prescription”
means an order, formula or recipe issued in any form of oral, written,
electronic, or other means of transmission by a duly licensed practitioner
authorized by the laws of the member state.
(i) “Delivery charges”
means charges by the seller of personal property or services for preparation
and delivery to a location designated by the purchaser of personal property or
services including, but not limited to, transportation, shipping, postage,
handling, crating, and packing.
“Delivery charges”
shall not include the charges for delivery of “direct mail” if the charges are
separately stated on an invoice or similar billing document given to the
purchaser.
(j) “Direct mail”
means printed material delivered or distributed by United States mail or other
delivery service to a mass audience or to addressees on a mailing list provided
by the purchaser or at the direction of the purchaser when the cost of the
items are not billed directly to the recipients. “Direct mail” includes tangible personal property supplied
directly or indirectly by the purchaser to the direct mail seller for inclusion
in the package containing the printed material. “Direct mail” does not include multiple items of printed material
delivered to a single address.
(k) “Durable medical
equipment” means equipment including repair and replacement parts for same
which:
(i) Can withstand repeated use; and
(ii) Is primarily and customarily used to serve a
medical purpose; and
(iii) Generally is not useful to a person in the
absence of illness or injury; and
(iv) Is not worn in or on the body.
Durable medical
equipment does not include mobility enhancing equipment.
(l) Food and Related
Items
(i) “Food and food
ingredients” means substances, whether in liquid, concentrated, solid, frozen,
dried, or dehydrated form, that are sold for ingestion or chewing by humans and
are consumed for their taste or nutritional value. “Food and food ingredients” does not include “alcoholic beverages,”
“tobacco,” “candy,” “dietary supplements” and “soft drinks.”
(ii) “Prepared food”
means:
(A) Food sold in a heated state or heated by the
seller;
(B) Two (2) or more food ingredients mixed or
combined by the seller for sale as a single item; or
(C) Food sold with eating utensils provided by
the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or
straws. A plate does not include a
container or packaging used to transport the food.
“Prepared food” in B
does not include food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these raw animal
foods requiring cooking by the consumer as recommended by the Food and Drug
Administration in chapter 3, part 401.11 of its Food Code so as to prevent food
borne illnesses.
(iii) “Candy” means a
preparation of sugar, honey, or other natural or artificial sweeteners in
combination with chocolate, fruits, nuts or other ingredients or flavorings in
the form of bars, drops, or pieces. “Candy”
shall not include any preparation containing flour and shall require no
refrigeration.
(iv) “Soft drinks”
means non-alcoholic beverages that contain natural or artificial
sweeteners. “Soft drinks” do not
include beverages that contain milk or milk products, soy, rice or similar milk
substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by
volume.
(v) “Dietary
supplement” means any product, other than “tobacco,” intended to supplement the
diet that:
(A) Contains one or more of the following
dietary ingredients:
1. A vitamin;
2. A mineral;
3. An herb or other botanical;
4. An amino acid;
5. A dietary substance for use by humans to
supplement the diet by increasing the total dietary intake; or
6. A concentrate, metabolite, constituent,
extract, or combination of any ingredient described in above; and
(B) Is intended for ingestion in tablet,
capsule, powder, softgel, gelcap, or liquid form, or if not intended for
ingestion in such a form, is not represented as conventional food and is not
represented for use as a sole item of a meal or of the diet; and
(C) Is required to be labeled as a dietary
supplement, identifiable by the “Supplemental Facts” box found on the label and
as required pursuant to 21 C.F.R. § 101.36.
(m) “Food sold through
vending machines” means food dispensed from a machine or other mechanical
device that accepts payment.
(n) “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.
(i) “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.
(ii) “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.
(iii) “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.
(o) “Lease or rental”
means any transfer of possession or control of tangible personal property for a
fixed or indeterminate term for consideration.
A lease or rental may include future options to purchase or extend. Lease or rental does not include:
(i) A transfer of
possession or control of property under a security agreement or deferred
payment plan that requires the transfer of title upon completion of the
required payments;
(ii) A transfer or
possession or control of property under an agreement that requires the transfer
of title upon completion of required payments and payment of an option price
does not exceed the greater of one hundred dollars ($100) or one percent of the
total required payments; or
(iii) Providing tangible
personal property along with an operator for a fixed or indeterminate period of
time. A condition of this exclusion is
that the operator is necessary for the equipment to perform as designed. For the purpose of this subsection, an
operator must do more than maintain, inspect, or set-up the tangible personal
property.
(iv) Lease or rental
does include agreements covering motor vehicles and trailers where the amount
of consideration may be increased or decreased by reference to the amount
realized upon sale or disposition of the property as defined in 26 USC
7701(h)(1).
(v) This definition
shall be used for sales and use tax purposes regardless if a transaction is
characterized as a lease or rental under generally accepted accounting
principles, the Internal Revenue Code, the Uniform Commercial Code, or other
provisions of federal, state or local law.
(vi) This definition
will be applied only prospectively from the date of adoption and will have no
retroactive impact on existing leases or rentals. This definition shall neither impact any existing sale-leaseback
exemption or exclusions that a state may have, nor preclude a state from
adopting a sale-leaseback exemption or exclusion after the effective date of
the Agreement.
(p) “Mobility
enhancing equipment” means equipment including repair and replacement parts to
same, which:
(i) Is primarily and customarily used to provide
or increase the ability to move from one place to another and which is
appropriate for use either in a home or a motor vehicle; and
(ii) Is not generally used by persons with normal
mobility; and
(iii) Does not include any motor vehicle or
equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
Mobility enhancing
equipment does not include durable medical equipment.
(q) “Model 1 Seller”
means a seller that has selected a CSP as its agent to perform all the seller’s
sales and use tax functions, other than the seller’s obligation to remit tax on
its own purchases.
(r) “Model 2 Seller” means
a seller that has selected a CAS to perform part of its sales and use tax
functions, but retains responsibility for remitting the tax.
(s) “Model 3 Seller”
means a seller that has sales in at least five member states, has total annual
sales revenue of at least five hundred million dollars ($500,000,000), has a
proprietary system that calculates the amount of tax due each jurisdiction, and
has entered into a performance agreement with the member states that
establishes a tax performance standard for the seller. As used in this definition, a seller
includes an affiliated group of sellers using the same proprietary system.
(t) “Prosthetic
device” means a replacement, corrective, or supportive devices including repair
and replacement parts for same worn on or in the body to:
(i) Artificially replace a missing portion of
the body;
(ii) Prevent or correct physical deformity or
malfunction; or
(iii) Support a weak
or deformed portion of the body.
(u) “Purchaser” means
a person to whom a sale of personal property is made or to whom a service is
furnished.
(v) “Purchase price”
applies to the measure subject to use tax and has the same meaning as sales
price.
(w) “Seller” means a
person making sales, leases, or rentals of personal property or services.
(x) “State” means any
state of the United States and the District of Columbia.
(y)
“Telecommunications” tax base/exemption terms
(i) Telecommunication
terms shall be defined as follows:
(A) “Ancillary
services” means services that are associated with or incidental to the
provision of “telecommunications services”, including, but not limited to,
“detailed telecommunications billing”, “directory assistance”, “vertical
service”, and “voice mail services”.
(B) “Conference
bridging service” means an “ancillary service” that links two (2) or more
participants of an audio or video conference call and may include the provision
of a telephone number. “Conference
bridging service” does not include the “telecommunications services” used to
reach the conference bridge.
(C) “Detailed
telecommunications billing service” means an “ancillary service” of separately
stating information pertaining to individual calls on a customer’s billing
statement.
(D) “Directory
assistance” means an “ancillary service” of providing telephone number
information, and/or address information.
(E) “Vertical service”
means an “ancillary service” that is offered in connection with one or more
“telecommunications services”, which offers advanced calling features that
allow customers to identify callers and to manage multiple calls and call
connections, including “conference bridging services”.
(F) “Voice mail
service” means an “ancillary service” that enables the customer to store, send
or receive recorded messages. “Voice
mail service” does not include any “vertical services” that the customer may be
required to have in order to utilize the “voice mail service”.
(G)
“Telecommunications service” means the electronic transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points. The
term “telecommunications service” includes such transmission, conveyance, or
routing in which computer processing applications are used to act on the form,
code or protocol of the content for purposes of transmission, conveyance or
routing without regard to whether such service is referred to as voice over
Internet protocol services or is classified by the Federal Communications
Commission as enhanced or value added.
“Telecommunications service” does not include:
(1) Data processing
and information services that allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an electronic transmission to a
purchaser where such purchaser’s primary purpose for the underlying transaction
is the processed data or information;
(2) Installation or
maintenance of wiring or equipment on a customer’s premises;
(3) Tangible personal
property;
(4) Advertising,
including but not limited to, directory advertising.
(5) Billing and
collection services provided to third parties;
(6) Internet access
service;
(7) Radio and
television audio and video programming services, regardless of the medium,
including the furnishing of transmission, conveyance and routing of such
services by the programming service provider.
Radio and television audio and video programming services shall include,
but not be limited to, cable service as defined in 47 USC 522(6) and audio and
video programming services delivered by commercial mobile radio service
providers, as defined in 47 CFR 20.3;
(8) “Ancillary
services”; or
(9) Digital products
“delivered electronically”, including, but not limited to, software, music,
video, reading materials or ring tones.
(H) “800 service”
means a “telecommunications service” that allows a caller to dial a toll-free
number without incurring a charge for the call. The service is typically marketed under the name “800”, “855”,
“866”, “877”, and “888” toll-free calling, and any subsequent numbers designated
by the Federal Communications Commission.
(I) “900 service”
means an inbound toll “telecommunications service” purchased by a subscriber
that allows the subscriber’s customers to call in to the subscriber’s
prerecorded announcement or live service.
“900 service” does not include the charge for: collection services provided by the seller of the
“telecommunications services” to the subscriber, or service or product sold by
the subscriber to the subscriber’s customer.
The service is typically marketed under the name “900 service,” and any
subsequent numbers designated by the Federal Communications Commission.
(J) “Fixed wireless
service” means a “telecommunications service” that provides radio communication
between fixed points.
(K) “Mobile wireless
service” means a “telecommunications service” that is transmitted, conveyed or
routed regardless of the technology used, whereby the origination and/or
termination points of the transmission, conveyance or routing are not fixed,
including, by way of example only, “telecommunications services” that are
provided by a commercial mobile radio service provider.
(L) “Paging service”
means a “telecommunications service” that provides transmission of coded radio
signals for the purpose of activating specific pagers; such transmissions may
include messages and/or sounds.
(M) “Prepaid calling
service” means the right to access exclusively “telecommunications services”,
which must be paid for in advance and which enables the origination of calls
using an access number of authorization code, whether manually or
electronically dialed, and that is sold in predetermined units or dollars of
which the number declines with use in a known amount.
(N) “Prepaid wireless
calling service” means a “telecommunications service” that provides the right
to utilize “mobile wireless service” as well as other non-telecommunications
services including the download of digital products “delivered electronically”,
content and “ancillary services” which must be paid for in advance that is sold
in predetermined units of dollars of which the number declines with use in a
known amount.
(O) “Private
communications service” means a telecommunications service that entitles the
customer to exclusive or priority use of a communications channel or group of
channels between or among termination points, regardless of the manner in which
such channel or channels are connected, and includes switching capacity,
extension lines, stations, and any other associated services that are provided
in connection with the use of such channel or channels.
(P) “Value-added
non-voice data service” means a service that otherwise meets the definition of
“telecommunications services” in which computer processing applications are
used to act on the form, content, code, or protocol of the information or data
primarily for a purpose other than transmission, conveyance or routing.
(ii) “Modifiers of
Sales Tax Base/Exemption Terms” – the following terms can be used to further
delineate the type of “telecommunications service” to be taxed or
exempted. The terms would be used with
the broader terms and subcategories delineated above.
(A) “Coin-operated
telephone service” means a “telecommunications service” paid for by inserting
money into a telephone accepting direct deposits of money to operate.
(B) “International”
means a “telecommunications service” that originates or terminates in the
United States and terminates or originates outside the United States,
respectively. United States includes
the District of Columbia or a U.S. territory or possession.
(C) “Interstate” means
a “telecommunications service” that originates in one United States state, or a
United States territory or possession, and terminates in a different United
States state or a United States territory or possession.
(D) “Intrastate” means
a “telecommunications service” that originates in one United States state or a
United States territory or possession, and terminates in the same United States
state or a United States territory or possession.
(E) “Pay telephone
service” means a “telecommunications service” provided through any pay
telephone.
(F) “Residential
telecommunications service” means a “telecommunications service” or “ancillary
services” provided to an individual for personal use at a residential address,
including an individual dwelling unit such as an apartment. In the case of institutions where
individuals reside, such as schools or nursing homes, “telecommunications
service” is considered residential if it is provided to and paid for by an
individual resident rather than the institution.
The terms “ancillary
services” and “telecommunications service” are defined as a broad range of
services. The terms “ancillary
services” and “telecommunications service” are broader than the sum of the
subcategories. Definitions of
subcategories of “ancillary services” and “telecommunications service” can be
used by a member state alone or in combination with other subcategories to
define a narrower tax base than the definitions of “ancillary services” and
“telecommunications service” would imply.
The subcategories can also be used by a member state to provide
exemptions for certain subcategories of the more broadly defined terms.
A member state that
specifically imposes tax on, or exempts from tax, local telephone or local
telecommunications service may define “local service” in any manner in
accordance with Section 44-18.1-28, except as limited by other sections of this
Agreement.
(z) “Tobacco” means
cigarettes, cigars, chewing or pipe tobacco, or any other item that contains
tobacco.
44-18-7.2. Sales Tax Holiday
Definitions.-- The definitions in this part are only
applicable for the purpose of administration of a sales tax holiday, as defined
in Section 44‑18.1-23.
(a) “Eligible
property” means an item of a type, such as clothing, that qualifies for a sales
tax holiday exemption in a member state.
(b) “Layaway sale”
means a transaction in which property is set aside for future delivery to a
customer who makes a deposit, agrees to pay the balance of the purchase price
over a period of time, and, at the end of the payment period, receives the
property. An order is accepted for
layaway by the seller, when the seller removes the property from normal
inventory or clearly identifies the property as sold to the purchaser.
(c) “Rain check” means
the seller allows a customer to purchase an item at a certain price at a later
time because the particular item was out of stock.
(d) “School supply” is
an item commonly used by a student in a course of study. The term is mutually exclusive of the terms
“school art supply,” “school instructional material,” and “school computer
supply,” and may be taxed differently.
The following is an all-inclusive list:
(i) binders;
(ii) book bags;
(iii) calculators;
(iv) cellophane tape;
(v) blackboard chalk;
(vi) compasses;
(vii) composition
books;
(viii) crayons;
(ix) erasers;
(x) folders;
expandable, pocket, plastic and manila;
(xi) glue, paste and
paste sticks;
(xii) highlighters;
(xiii) index cards;
(xiv) index card
boxes;
(xv) legal pads;
(xvi) lunch boxes;
(xvii) markers;
(xviii) notebooks;
(xix) paper; loose
leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila
paper, colored paper, poster board and construction paper;
(xx) pencil boxes and
other school supply boxes;
(xxi) pencil
sharpeners;
(xxii) pencils;
(xxiii) pens;
(xxiv) protractors;
(xxv) rulers;
(xxvi) scissors; and
(xxvii) writing
tablets.
(e) “School art
supply” is an item commonly used by a student in a course of study for
artwork. The term is mutually exclusive of the terms “school supply,”
“school instructional material,” and “school computer supply,” and may be taxed
differently. The following is an
all-inclusive list:
(i) clay and glazes;
(ii) paints; acrylic,
tempora and oil;
(iii) paintbrushes for
artwork;
(iv) sketch and
drawing pads; and
(v) watercolors
(f) “School
instructional material” is written material commonly used by a student in a
course of study as a reference and to learn the subject being taught. The term is mutually exclusive of the terms
“school supply,” “school art supply,” and “school computer supply,” and may be
taxed differently. The following is an
all-inclusive list:
(i) reference books;
(ii) reference maps
and globes;
(iii) textbooks; and
(iv) workbooks.
(g) “School computer
supply” is an item commonly used by a student in a course of study in which a
computer is used. The term is mutually
exclusive of the terms “school supply,” “school art supply,” and “school instructional
material,” and may be taxed differently.
The following is an all-inclusive list:
(i) computer storage
media; diskettes, compact disks;
(ii) handheld
electronic schedulers, except devices that are cellular phones;
(iii) personal digital
assistants, except devices that are cellular phones;
(iv) computer
printers; and
(v) printer supplies
for computers; printer paper, printer ink.
44-18-12.1. “Additional measure subject to tax.”— Also
included in the measure subject to tax under this chapter is the total amount
charged for the furnishing or distributing of electricity, natural gas,
artificial gas, steam, refrigeration, water, telecommunications, telegraph,
cable, and radio message service, community antenna television, subscription
television, and cable television service; provided, that the measure of tax in
regard to telecommunications service is the total consideration received for
the service as defined in 44‑18‑7(9); provided, that in order to
prevent multistate taxation of all telecommunications service, any taxpayer is
allowed a credit or refund of sales tax upon presenting proof that a tax has
been paid to another state to which the tax is properly due for the identical
service taxed under this chapter.
Furthermore, included in the measure of tax is the total amount charged
for the rental of living quarters in any hotel, rooming house, or tourist camp.
44-18-19.1. Direct Pay Permit. -- (a)
A business that regularly purchases goods and services for use both within and
outside this state may, at its option, apply to the tax administrator for a direct
pay permit. The holder of a direct pay
permit shall be authorized to make payment of sales and use tax on purchases of
goods and services directly to the division of taxation in lieu of payment to
the seller. Said permit shall be valid
for a twenty-four (24) month period subject to renewal.
(b) The issuance of a direct
pay permit is subject to the discretion of the tax administrator. Prior to issuance of said permit the tax
administrator must be satisfied that such an action shall not jeopardize the
collection of tax.
(c) The tax
administrator shall publish regulations regarding the conditions upon which a direct
pay permit shall issue.
SECTION 11. Section 44-19-10 of the general laws in chapter
44-19 entitled “Sales and Use Taxes – Enforcement and Collection” is hereby
amended to read as follows:
44-19-10. Monthly returns and payments -- Monthly
reports by show promoters.-—Except as provided in
the Streamlined Sales and Use Tax Agreement contained in Chapter 44-18.1
(a)(1) The the taxes imposed by chapter 18 of this title are due
and payable to the tax administrator monthly on or before the twentieth day of
the month next succeeding the month for which return is required to be
made. On or before the twentieth (20th)
day of each month, a return for the previous month shall be filed with the tax
administrator in a form that the tax administrator may prescribe. For purposes of the sales tax a return shall
be filed by every person engaged in the business of making retail sales, the
gross receipts from which are required to be included in the measure of the
sales tax. The tax administrator may
require the filing of a return by any person holding a permit as provided in §
44-19-2 or 44-19-3. For purposes of the
use tax a return shall be filed by every retailer maintaining a place of
business in the state and by every person purchasing tangible personal
property, the storage, use, or other consumption of which is subject to the use
tax, who has not paid the use tax due to a retailer required to collect the
tax.
(2)
The return shall be in a form, include information, and bear any signatures
that the tax administrator may require.
At the time of the filing of any return required under this chapter the
taxpayer shall pay to the tax administrator the tax due for the month covered
by that return. For the purposes of the
sales tax, gross receipts from rentals or leases of tangible personal property
are reported and the tax paid in the manner required by the tax
administrator. The tax administrator
for good cause may extend, for not to exceed one (1) month, the time for making
any return or paying any amount required to be paid under this chapter. Any person to whom an extension is granted,
shall pay, in addition to the tax, interest at the annual rate prescribed by §
44-1-7, as amended, or fraction of it, from the date on which the tax would
have been due without the extension until the date of payment.
(3)
Where a taxpayer's sales and use tax liability for six (6) consecutive months
has averaged less than two hundred dollars ($200) per month, a quarterly return
and remittances in lieu of a monthly return may be made on or before the last
day of July, October, January and April of each year for the preceding three
(3) months' period when specially authorized in writing by the tax
administrator under those rules and regulations as may be prescribed by the
administrator. In the event that a
taxpayer filing his or her return on a quarterly basis, as provided in this
section, becomes delinquent in either the filing of his or her return or the
payment of the taxes due, or in the event that the liability of a taxpayer, who
has been authorized to file his or her return and to make payments on a
quarterly basis, exceeds six hundred dollars ($600) in sales and use taxes for
any subsequent quarter, or in the event that the tax administrator determines
that any quarterly filing of return and payment of tax due thereon would unduly
jeopardize the proper administration of the provisions of this chapter or of
chapter 18 of this title, the tax administrator may, at any time, revoke the
authorization, in which case the taxpayer will then be required to file his or
her return and to pay the tax due in the manner provided for in this section.
(b) Every promoter
shall file a report monthly, within twenty (20) days after the end of the prior
month, for each show which the promoter operates, listing the date and place of
each show and the name, address and permit number, by show, of every person
whom the promoter permitted to display or sell tangible personal property,
services or food and drink. Every
person shall furnish the promoter of any show at which the person displays or
sells tangible personal property, services or food and drink, information for
the promoter's use in filing the report required by this subsection.
SECTION 12. Title 44 of the General Laws entitled
“Taxation” is hereby amended by adding thereto the following chapter:
CHAPTER 44-18.1
ADOPTION OF THE STREAMLINED
SALES AND USE TAX AGREEMENT
44-18.1-1. Adoption of streamlined sales and use tax
agreement–Regulations. — Rhode Island adopts
the Streamlined Sales And Use Tax Agreement as created on November 12, 2002 and
amended, by the member states of the Streamlined Sales Tax Project. The entire Agreement is adopted by reference
with the exception of articles III, IV and VI which are adopted as set out in
this chapter. The tax administrator
shall promulgate rules and regulations necessary to be in compliance with the
provisions of this Agreement.
44-18.1-1.1. “Member State” defined. --
For the purposes of Section 44-18.1, the term “member state” shall include the
State of Rhode Island.
44-18.1-2. State Level Administration. -- Each
member state shall provide state level administration of sales and use
taxes. The state level administration
may be performed by a member state’s tax commission, department of revenue, or
any other single entity designated by state law. Sellers are only required to register with, file returns with,
and remit funds to the state level authority.
Each member state shall provide for collection of any local taxes and
distribution of them to the appropriate taxing jurisdictions. Each member state shall conduct, or
authorize others to conduct on its behalf, all audits of the sellers registered
under the Agreement for that state’s tax and the tax of its local
jurisdictions, and local jurisdictions shall not conduct independent sales or
use tax audits of sellers registered under the Agreement.
44-18.1-3. State and Local Tax Bases. — Through
December 31, 2005, if a member state has local jurisdictions that levy a sales
or use tax, all local jurisdictions in the state shall have a common tax
base. After December 31, 2005, the tax
base for local jurisdictions shall be identical to the state tax base unless
otherwise prohibited by federal law.
This section does not apply to sales or use taxes levied on the retail
sale or transfer of motor vehicles, aircraft, watercraft, modular homes,
manufactured homes, or mobile homes.
44-18.1-4. Seller Registration. — Each
member state shall participate in an online sales and use tax registration
system in cooperation with the other member states. Under this system:
(A) A seller registering
under the Agreement is registered in each of the member states.
(B) The member states
agree not to require the payment of any registration fees or other charge for a
seller to register in a state in which the seller has no legal requirement to register.
(C) A written
signature from the seller is not required.
(D) An agent may
register a seller under uniform procedures adopted by the member states.
(E) A seller may
cancel its registration under the system at any time under uniform procedures
adopted by the governing board.
Cancellation does not relieve the seller of its liability for remitting
to the proper states any taxes collected.
44-18.1-5. Notice for State Tax Changes. — (A)
Each member state shall lessen the difficulties faced by sellers when there is
a change in a state sales or use tax rate or base by making a reasonable effort
to do all of the following:
(1) Provide sellers
with as much advance notice as practicable of a rate change.
(2) Limit the
effective date of a rate change to the first day of a calendar quarter.
(3) Notify sellers of
legislative changes in the tax base and amendments to sales and use tax rules
and regulations.
(B) Failure of a
seller to receive notice or failure of a member state to provide notice or
limit the effective date of a rate change shall not relieve the seller of its
obligation to collect sales or use taxes for that member state.
44-18.1-6. Local Rate and Boundary Changes. — Each
member state that has local jurisdictions that levy a sales or use tax shall:
(A) Provide that local
rate changes will be effective only on the first day of a calendar quarter
after a minimum of sixty days’ notice to sellers.
(B) Apply local sales
tax rate changes to purchases from printed catalogs wherein the purchaser computed
the tax based upon local tax rates published in the catalog only on the first
day of a calendar quarter after a minimum of one hundred twenty days’ notice to
sellers.
(C) For sales and use
tax purposes only, apply local jurisdiction boundary changes only on the first
day of a calendar quarter after a minimum of sixty days’ notice to sellers.
(D) Provide and
maintain a database that describes boundary changes for all taxing
jurisdictions. This database shall
include a description of the changes and the effective date of the change for
sales and use tax purposes.
(E) Provide and
maintain a database of all sales and use tax rates for all of the jurisdictions
levying taxes within the state. For the
identification of states, counties, cities, and parishes, codes corresponding
to the rates must be provided according to Federal Information Processing
Standards (FIPS) as developed by the National Institute of Standards and
Technology. For the identification of
all other jurisdictions, codes corresponding to the rates must be in the format
determined by the governing board.
(F) Provide and
maintain a database that assigns each five digit and nine digit zip code within
a member state to the proper tax rates and jurisdictions. The state must apply the lowest combined tax
rate imposed in the zip code area if the area includes more than one tax rate
in any level of taxing jurisdictions.
If a nine digit zip code designation is not available for a street
address or if a seller or CSP is unable to determine the nine digit zip code
designation applicable to a purchase after exercising due diligence to
determine the designation, the seller or CSP may apply the rate for the five
digit zip code area. For the purposes
of this section, there is a rebuttable presumption that a seller or CSP has
exercised due diligence if the seller has attempted to determine the nine digit
zip code designation by utilizing software approved by the governing board that
makes this designation from the street address and the five digit zip code
applicable to a purchase.
(G) Have the option of
providing address-based boundary database records for assigning taxing
jurisdictions and their associated rates which shall be in addition to the
requirements of subsection (F) of this section. The database records must be in the same approved format as the
database records pursuant to subsection (F) of this section and must meet the
requirements developed pursuant to the federal Mobile Telecommunications
Sourcing Act (4 U.S.C. Sec. 119(a)).
The governing board may allow a member state to require sellers that
register under this Agreement to use an address‑based database provided
by that member state. If any member
state develops address‑based assignment database records pursuant to the
Agreement, a seller or CSP may use those database records in place of the five
and nine-digit zip code database records provided for in subsection (F) of this
section. If a seller or CSP is unable
to determine the applicable rate and jurisdiction using an address-based database
record after exercising due diligence, the seller or CSP may apply the nine
digit zip code designation applicable to a purchase. If a nine-digit zip code designation is not available for a
street address or if a seller or CSP is unable to determine the nine digit zip
code designation applicable to a purchase after exercising due diligence to
determine the designation, the seller or CSP may apply the rate for the five
digit zip code area. For the purposes of
this section, there is a rebuttable presumption that a seller or CSP has
exercised due diligence if the seller or CSP has attempted to determine the tax
rate and jurisdiction by utilizing software approved by the governing board
that makes this assignment from the address and zip code information applicable
to the purchase.
(H) States that have
met the requirements of subsection (F) may also elect to certify vendor
provided address-based databases for assigning tax rates and
jurisdictions. The databases must be in
the same approved format as the database records pursuant to (G) of this
section and must meet the requirements developed pursuant to the federal Mobil
Telecommunications Sourcing Act (4 U.S.C.A. Sec. 119(a))). If a state certifies a vendor address-based
database, a seller or CSP may use that database in place of the database
provided for in subsection (F) or (G) of this section. Vendors providing address-based databases
may request certification of their databases from the governing board. Certification by the governing board does not
replace the requirement that the databases be certified by the states
individually.
44-18.1-7. Relief from Certain Liability. -- Each
member state shall relieve sellers and CSPs using databases pursuant to
subsections (F), (G) and (H) of Section 44-18-1.6 from liability to the member
state and local jurisdictions for having charged and collected the incorrect
amount of sales or use tax resulting from the seller or CSP relying on
erroneous data provided by a member state on tax rates, boundaries, or taxing
jurisdiction assignments. After
providing adequate notice as determined by the governing board, a member state
that provides an address‑based database for assigning taxing
jurisdictions pursuant to Section 44-18.1-6, subsection (G) or (H) may cease providing
liability relief for errors resulting from the reliance on the database
provided by the member state under the provisions of Section 44-18.1-6,
subsection (F). If a seller
demonstrates that requiring the use of the address-based database would create
an undue hardship, a member state and the governing board may extend the relief
from liability to such seller for a designated period of time.
44-18.1-8. Database Requirements and Exceptions. — (A)
The electronic databases provided for in Section 44-18.1-6, subsections (D),
(E), (F), and (G) shall be in a downloadable format approved by the governing
board. The databases may be directly
provided by the state or provided by a vendor as designated by the state. A database provided by a vendor as designated
by a state shall be applicable to and subject to all provisions of Section
44-18.1-6 and 44-18.1-7 and this section.
These databases must be provided at no cost to the user of the database.
(B) The provisions of
Section 44-18.1-6, subsections (F) and (G) do not apply when the purchased
product is received by the purchaser at the business location of the seller.
(C) The databases
provided by Section 44-18.1-6, subsections (D), (E), (F), and (G) are not a
requirement of a state prior to entering into the Agreement. A seller that did not have a requirement to
register in a state prior to registering pursuant to this Agreement or a CSP
shall not be required to collect sales or use taxes for a state until the first
day of the calendar quarter commencing more than sixty days after the state has
provided the databases required by Section 44-18.1-6, subsections (D), (E) and
(F).
44-18.1-9. State and Local Tax Rates. — (A)
No member state shall have multiple state sales and use tax rates on items of
personal property or services after December 31, 2005, except that a member
state may impose a single additional rate, which may be zero, on food and food
ingredients and drugs as defined by state law pursuant to the Agreement.
(B) A member state
that has local jurisdictions that levy a sales or use tax shall not have more
than one local sales tax rate or more than one local use tax rate per local
jurisdiction. If the local jurisdiction
levies both a sales tax and use tax, the local rates must be identical.
(C) The provisions of
this section do not apply to sales or use taxes levied on electricity, piped
natural or artificial gas, or other heating fuels delivered by the seller, or
the retail sale or transfer of motor vehicles, aircraft, watercraft, modular
homes, manufactured homes, or mobile homes.
44-18.1-10. Application of General Sourcing Rules and
Exclusions from the Rules. — (A) Each member state
shall agree to require sellers to source the retail sale of a product in
accordance with Section 44-18.1-11. The
provisions of Section 44-18.1-11 apply regardless of the characterization of a
product as tangible personal property, a digital good, or a service. The provisions of Section 44-18.1-11 only
apply to determine a seller’s obligation to pay or collect and remit a sales or
use tax with respect to the seller’s retail sale of a product. These provisions do not affect the
obligation of a purchaser or lessee to remit tax on the use of the product to
the taxing jurisdictions of that use.
(B) Section 44-18.1-11
does not apply to sales or use taxes levied on the following:
(1) The retail sale or
transfer of watercraft, modular homes, manufactured homes, or mobile
homes. These items must be sourced
according to the requirements of each member state.
(2) The retail sale,
excluding lease or rental, of motor vehicles, trailers, semi-trailers, or
aircraft that do not qualify as transportation equipment, as defined in Section
44-18.1-11, subsection (D). The retail
sale of these items shall be sourced according to the requirements of each
member state, and the lease or rental of these items must be sourced according
to Section 44-18.1-11, subsection (C).
(3) Telecommunications
services, as set out in Section 44-18.1-16, shall be sourced in accordance with
Section 44-18.1-15.
(4) Until December 31,
2007, florist sales as defined by each member state. Prior to this date, these items must be sourced according to the
requirements of each member state.
44-18.1-11. General Sourcing Rules. — (A)
The retail sale, excluding lease or rental, of a product shall be sourced as
follows:
(1) When the product
is received by the purchaser at a business location of the seller, the sale is
sourced to that business location.
(2) When the product is
not received by the purchaser at a business location of the seller, the sale is
sourced to the location where receipt by the purchaser (or the purchaser’s
donee, designated as such by the purchaser) occurs, including the location
indicated by instructions for delivery to the purchaser (or donee), known to
the seller.
(3) When subsections
(A)(1) and (A)(2) do not apply, the sale is sourced to the location indicated
by an address for the purchaser that is available from the business records of
the seller that are maintained in the ordinary course of the seller’s business
when use of this address does not constitute bad faith.
(4) When subsections
(A)(1), (A)(2) and (A)(3) do not apply, the sale is sourced to the location
indicated by an address for the purchaser obtained during the consummation of
the sale, including the address of a purchaser’s payment instrument, if no
other address is available, when use of this address does not constitute bad
faith.
(5) When none of the
previous rules of subsections (A)(1), (A)(2), (A)(3), or (A)(4) apply,
including the circumstance in which the seller is without sufficient
information to apply the previous rules, then the location will be determined
by the address from which tangible personal property was shipped, from which
the digital good or the computer software delivered electronically was first
available for transmission by the seller, or from which the service was
provided (disregarding for these purposes any location that merely provided the
digital transfer of the product sold).
(B) The lease or
rental of tangible personal property, other than property identified in
subsection (C) or subsection (D), shall be sourced as follows:
(1) For a lease or
rental that requires recurring periodic payments, the first periodic payment is
sourced the same as a retail sale in accordance with the provisions of
subsection (A). Periodic payments made
subsequent to the first payment are sourced to the primary property location
for each period covered by the payment.
The primary property location shall be as indicated by an address for
the property provided by the lessee that is available to the lessor from its
records maintained in the ordinary course of business, when use of this address
does not constitute bad faith. The
property location shall not be altered by intermittent use at different
locations, such as use of business property that accompanies employees on
business trips and service calls.
(2) For a lease or
rental that does not require recurring periodic payments, the payment is
sourced the same as a retail sale in accordance with the provisions of
subsection (A).
(3) This subsection
does not affect the imposition or computation of sales or use tax on leases or
rentals based on a lump sum or accelerated basis, or on the acquisition of
property for lease.
(C) The lease or
rental of motor vehicles, trailers, semi-trailers, or aircraft that do not
qualify as transportation equipment, as defined in subsection (D), shall be
sourced as follows:
(1) For a lease or
rental that requires recurring periodic payments, each periodic payment is
sourced to the primary property location.
The property location shall be as indicated by an address for the
property provided by the lessee that is available to the lessor from its
records maintained in the ordinary course of business, when use of this address
does not constitute bad faith. This
location shall not be altered by intermittent use at different locations.
(2) For a lease or
rental that does not require recurring periodic payments, the payment is
sourced the same as a retail sale in accordance with the provisions of
subsection (A).
(3) This subsection
does not affect the imposition or computation of sales or use tax on leases or
rentals based on a lump sum or accelerated basis, or on the acquisition of
property for lease.
(D) The retail sale,
including lease or rental, of transportation equipment shall be sourced the
same as a retail sale in accordance with the provisions of subsection (A),
notwithstanding the exclusion of lease or rental in subsection (A). “Transportation equipment” means any of the
following:
(1) Locomotives and
railcars that are utilized for the carriage of persons or property in
interstate commerce.
(2) Trucks and
truck-tractors with a Gross Vehicle Weight rating (GVWR) or 10,001 pounds or
greater, trailers, semi-trailers, or passenger buses that are:
(a) Registered through
the International Registration Plan; and
(b) Operated under
authority of a carrier authorized and certificated by the U.S. Department of
Transportation or another federal authority to engage in the carriage of
persons or property in interstate commerce.
(3) Aircraft that are
operated by air carriers authorized and certificated by the U.S. Department of
Transportation or another federal or a foreign authority to engage in the
carriage of persons or property in interstate or foreign commerce.
(4) Containers
designed for use on and component parts attached or secured on the items set
forth in subsection (D)(1) through (D)(3).
44-18.1-12. General Sourcing Definitions. — For
the purposes of Section 44-18.1-11, subsection (A), the terms “receive” and
“receipt” mean:
(A) Taking possession
of tangible personal property,
(B) Making first use
of services, or
(C) Taking possession
or making first use of digital goods, whichever comes first. The terms “receive” and “receipt” do not
include possession by a shipping company on behalf of the purchaser.
44-18.1-13. Multiple Points of Use. — (A)
Notwithstanding the provisions of Section 44‑18.1-11, a business purchaser
that is not a holder of a direct pay permit that knows at the time of its
purchase of a digital good, computer software, or a service that the digital
good, computer software, or service will be concurrently available for use in
more than one jurisdiction shall deliver to the seller in conjunction with its
purchase an exemption certificate claiming multiple points of use or meet the
requirements of Section 44-18.1-13, subsections (B) or (C). Computer software, for purposes of this
section includes, but is not limited to computer software delivered
electronically, by load and leave, or in tangible form. Computer software received in-person by a
business purchaser at a business location of the seller is not included.
Upon receipt of an
exemption certificate claiming multiple points of use, the seller is relieved
of all obligation to collect, pay, or remit the applicable tax and the
purchaser shall be obligated to collect, pay, or remit the applicable tax on a
direct pay basis.
(2) A purchaser
delivering an exemption certificate claiming multiple points of use may use any
reasonable, but consistent and uniform, method of apportionment that is
supported by the purchaser’s books and records as they exist at the time the
transaction is reported for sales or use tax purposes.
(3) A purchaser
delivering an exemption certificate claiming multiple points of use shall
report and pay the appropriate tax to each jurisdiction where concurrent use
occurs. The tax due will be calculated
as if the apportioned amount of the digital good, computer software or service
had been delivered to each jurisdiction to which the sale is apportioned
pursuant to Section 44-18.1-13, subdivision (A)(2).
(4) The exemption
certificate claiming multiple points of use will remain in effect for all
future sales by the seller to the purchaser (except as to the subsequent sale’s
specific apportionment that is governed by the principles of Section
44-18.1-13, subdivisions (A)(2) and (A)(3)) until it is revoked in writing.
(B) Notwithstanding
Section 44-18.1-13, subsection (A), when the seller knows that the product will
be concurrently available for use in more than one jurisdiction, but the
purchaser does not provide an exemption certificate claiming multiple points of
use as required in subsection (A), the seller may work with the purchaser to
produce the correct apportionment. The
purchaser and seller may use any reasonable, but consistent and uniform, method
of apportionment that is supported by the seller’s and purchaser’s business
records as they exist at the time the transaction is reported for sales or use
tax purposes. If the purchaser
certifies to the accuracy of the apportionment and the seller accepts the
certification, the seller shall collect and remit the tax pursuant to Section
44-18.1-13, subdivision (A)(3). In the
absence of bad faith, the seller is relieved of any further obligation to
collect tax on any transaction where the seller has collected tax pursuant to
the information certified by the purchaser.
(C) When the seller
knows that the product will be concurrently available for use in more than one
jurisdiction and the purchaser does not have a direct pay permit and does not
provide the seller with an exemption certificate claiming multiple points of use
exemption as required in Section 44-18.1-13, subsection (A), or certification
pursuant to Section 44-18.1-13, subsection (B), the seller shall collect and
remit the tax based on the provisions of Section 44-18.1-11.
(D) A holder of a
direct pay permit shall not be required to deliver an exemption certificate
claiming multiple points of use to the seller.
A direct pay permit holder shall follow the provisions of Section
44-18.1-13, subdivisions (A)(2) and (A)(3) of this section in apportioning the
tax due on a digital good, computer software, or a service that will be
concurrently available for use in more than one jurisdiction.
(E) Nothing in this
section shall limit a person’s obligation for sales or use tax to any state in
which the qualifying purchases are concurrently available for use, nor limit a
person’s ability under local, state, federal, or constitutional law, to claim a
credit for sales or use taxes legally due and paid to other jurisdictions.
44-18.1-14. Direct Mail Sourcing. — (A)
Notwithstanding Section 44-18.1-11, a purchaser of direct mail that is not a
holder of a direct pay permit shall provide to the seller in conjunction with
the purchase a Direct Mail Form or information to show the jurisdictions to
which the direct mail is delivered to recipients.
(1) Upon receipt of
the Direct Mail Form, the seller is relieved of all obligations to collect,
pay, or remit the applicable tax and the purchaser is obligated to pay or remit
the applicable tax on a direct pay basis.
A Direct Mail Form shall remain in effect for all future sales of direct
mail by the seller to the purchaser until it is revoked in writing.
(2) Upon receipt of information from the
purchaser showing the jurisdictions to which the direct mail is delivered to
recipients, the seller shall collect the tax according to the delivery
information provided by the purchaser.
In the absence of bad faith, the seller is relieved of any further
obligation to collect tax on any transaction where the seller has collected tax
pursuant to the delivery information provided by the purchaser.
(B) If the purchaser
of direct mail does not have a direct pay permit and does not provide the
seller with either a Direct Mail Form or delivery information, as required by
subsection (A) of this section, the seller shall collect the tax according to
Section 44-18.1-11, subsection (A)(5).
Nothing in this paragraph shall limit a purchaser’s obligation for sales
or use tax to any state to which the direct mail is delivered.
(C) If a purchaser of
direct mail provides the seller with documentation of direct pay authority, the
purchaser shall not be required to provide a Direct Mail Form or delivery
information to the seller.
44-18.1-15. Telecommunication Sourcing Rule. — (A)
Except for the defined telecommunication services in subsection (C), the sale
of telecommunication service sold on a call-by-call basis shall be sourced to
(I) each level of taxing jurisdiction where the call originates and terminates
in that jurisdiction or (ii) each level of taxing jurisdiction where the call
either originates or terminates and in which the service addressed is also
located.
(B) Except for the
defined telecommunication services in subsection (C), a sale of
telecommunications services sold on a basis other than a call-by-call basis, is
sourced to the customer’s place of primary use.
(C) The sale of the
following telecommunication services shall be sourced to each level of taxing
jurisdiction as follows:
(1) A sale of mobile
telecommunications services other than air-to-ground radiotelephone service and
prepaid calling service, is sourced to the customer’s place of primary use as
required by the Mobile Telecommunications Sourcing Act.
(2) A sale of
post-paid calling service is sourced to the origination point of the telecommunications
signal as first identified by either (i) the seller’s telecommunications
system, or (ii) information received by the seller from its service provider,
where the system used to transport such signals is not that of the seller.
(3) A sale of prepaid
calling service or a sale of a prepaid wireless calling service is sourced in
accordance with Section 44-18.1-11.
Provided however, in the case of a sale of a prepaid wireless calling
service, the rule provided in Section 44-18.1-11, subsection (A)(5) shall
include as an option the location associated with the mobile telephone number.
(4) A sale of a
private communication service is sourced as follows:
(a) Service for a
separate charge related to a customer channel termination point is sourced to each
level of jurisdiction in which such customer channel termination point is
located.
(b) Service where all
customer termination points are located entirely within one jurisdiction or
levels of jurisdiction is sourced in such jurisdiction in which the customer
channel termination points are located.
(c) Service for
segments of a channel between two customer channel termination points located
in different jurisdictions and which segment of channel are separately charged
is sourced fifty percent in each level of jurisdiction in which the customer
channel termination points are located.
(d) Service for
segments of a channel located in more than one jurisdiction or levels of
jurisdiction and which segments are not separately billed is sourced in each
jurisdiction based on the percentage determined by dividing the number of
customer channel termination points in such jurisdiction by the total number of
customer channel termination points.
44-18.1-16. Telecommunication Sourcing Definitions. — For
the purpose of Section 44‑18.1-15 and 44-18-7, the following definitions
apply:
(A) “Air-to-Ground
Radiotelephone service” means a radio service, as that term is defined in 47
CFR 22.99, in which common carriers are authorized to offer and provide radio
telecommunications service for hire to subscribers in aircraft.
(B) “Call-by-call
Basis” means any method of charging for telecommunications services where the
price is measured by individual calls.
(C) “Communications Channel”
means a physical or virtual path of communications over which signals are
transmitted between or among customer channel termination points.
(D) “Customer” means
the person or entity that contracts with the seller of telecommunications
services. If the end user of
telecommunications services is not the contracting party, the end user of the
telecommunications service is the customer of the telecommunication service,
but this sentence only applies for the purpose of sourcing sales of
telecommunications services under Section 44-18.1-15. “Customer” does not include a reseller of telecommunications
service or for mobile telecommunications service of a serving carrier under an
agreement to serve the customer outside the home service provider’s licensed
service area.
(E) “Customer Channel
Termination Point” means the location where the customer either inputs or
receives the communications.
(F) “End user” means
the person who utilizes the telecommunication service. In the case of an entity, “end user” means
the individual who utilizes the service on behalf of the entity.
(G) “Home service
provider” means the same as that term is defined in Section 124(5) of Public
Law 106-252 (Mobile Telecommunications Sourcing Act).
(H) “Mobile
telecommunications service” means the same as that term is defined in Section
124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
(I) “Place of primary
use” means the street address representative of where the customer’s use of the
telecommunications service primarily occurs, which must be the residential
street address or the primary business street address of the customer. In the case of mobile telecommunications
services, “place of primary use” must be within the licensed service area of
the home service provider.
(J) “Post-paid calling
service” means the telecommunications service obtained by making a payment on a
call-by-call basis either through the use of a credit card or payment mechanism
such as a bank card, travel card, credit card, or debit card, or by charge made
to a telephone number which is not associated with the origination or
termination of the telecommunications service.
A post-paid calling service includes a telecommunications service,
except a prepaid wireless calling service, that would be a prepaid calling
service except it is not exclusively a telecommunication service.
(K) “Service address”
means:
(1) The location of
the telecommunications equipment to which a customer’s call is charged and from
which the call originates or terminates, regardless of where the call is billed
or paid.
(2) If the location in
subsection (K)(1) is not known, service address means the origination point of
the signal of the telecommunications services first identified by either the
seller’s telecommunications system or in information received by the seller
from its service provider, where the system used to transport such signals is
not that of the seller.
(3) If the location in
subsection (K)(1) and subsection (K)(2) are not known, the service address
means the location of the customer’s place of primary use.
44-18.1-17. Enactment of Exemptions. — (a)
For the purpose of this section and section 44-18.1-18, the following
definitions apply:
(1) Entity-Based
Exemption. An exemption based on who
purchases the product or who sells the product. An exemption that is available to all individuals shall not be
considered an entity-based exemption.
(2) Product-Based
Exemption. An exemption based on the
description of the product and not based on who purchases the product or how
the purchaser intends to use the product.
(3) Use-Based
Exemption. An exemption based on a
specified use of the product by the purchaser.
(b) A member state
shall enact entity-based, use-based and product-based exemptions in accordance
with the provisions of this section and shall utilize common definitions in
accordance with the provisions of this section and shall utilize common
definitions in accordance with the provisions of Section 44-18.1-28 and Library
of Definitions in Appendix C of the Streamlined Sales and Use Tax Agreement.
(c)(1) A member state
may enact a product-based exemption without restriction if Part II of the
Library of Definitions does not have a definition for such product.
(2) A member state may
enact a product-based exemption for a product if Part II of the Library of
Definitions has a definition for such product and the member state utilizes in
the exemption the product definition in a manner consistent with Part II of the
Library of Definitions and Section 44-18.1-28.
(3) A member state may
enact a product-based exemption exempting all items included within a
definition in Part II of the Library of Definitions but shall not exempt
specific items included within the product definition unless the product
definition sets out an exclusion for such item.
(d)(1) A member state
may enact an entity-based or a use-based exemption for a product without
restriction if Part II of the Library of Definitions does not have a definition
for such product.
(2) A member state may
enact an entity-based or a use-based exemption for a product if Part II of the
Library of Definitions has a definition for such product and the member state
utilizes in the exemption the product definition in a manner consistent with
Part II of the Library of Definitions and Section 44-18.1-28 of this Agreement.
(3) A member state may
enact an entity-based exemption for an item if Part II of the Library of
Definitions does not have a definition for such item but has a definition for a
product that includes such item.
(4) A member state may
not enact a use-based exemption for an item which effectively constitutes a
product-based exemption if Part II of the Library of Definitions has a
definition for a product that includes such item.
(5) A member state may
enact a use-based exemption for an item if Part II of the Library of
Definitions has a definition for a product that includes such item, if not
prohibited in Subsection (C)(4) of this section and if consistent with the
definition in Part II of the Library of Definitions.
(e) For purposes of
complying with the requirements in this section, the inclusion of a product
within the definition of tangible personal property is disregarded.
44-18.1-18. Administration of Exemptions. — (A)
Each member state shall observe the following provisions when a purchaser
claims an exemption:
(1) The seller shall
obtain identifying information of the purchaser and the reason for claiming a
tax exemption at the time of the purchase as determined by the governing board.
(2) A purchaser is not
required to provide a signature to claim an exemption from tax unless a paper
exemption certificate is used.
(3) The seller shall
use the standard form for claiming an exemption electronically as adopted by
the governing board.
(4) The seller shall
obtain the same information for proof of a claimed exemption regardless of the
medium in which the transaction occurred.
(5) A member state may
utilize a system wherein the purchaser exempt from the payment of the tax is issued
an identification number that shall be presented to the seller at the time of
the sale.
(6) The seller shall
maintain proper records of exempt transactions and provide them to a member
state when requested.
(7) A member state
shall administer use-based and entity-based exemptions when practicable through
a direct pay permit, an exemption certificate, or other means that does not
burden sellers.
(8) After December 31,
2007, in the case of drop shipment sales, member states must allow a third
party vendor (e.g., drop shipper) to claim a resale exemption based on an
exemption certificate provided by its customer/re-seller or any other
acceptable information available to the third party vendor evidencing
qualification for a resale exemption, regardless of whether the
customer/re-seller is registered to collect and remit sales and use tax in the
state where the sale is sourced.
(B) Each member state
shall relieve sellers that follow the requirements of this section from the tax
otherwise applicable if it is determined that the purchaser improperly claimed
an exemption and to hold the purchaser liable for the nonpayment of tax. This relief from liability does not apply to
a seller who fraudulently fails to collect the tax; to a seller who solicits
purchasers to participate in the unlawful claim of an exemption; to a seller
who accepts an exemption certificate when the purchaser claims an entity-based
exemption when (1) the subject of the transactions sought to be covered by the
exemption certificate is actually received by the purchaser at a location
operated by the seller and (2) the state in which that location resides
provides an exemption certificate that clearly and affirmatively indicates
(graying out exemption reason types on the uniform form and posting it on a
state’s web site is an indicator) that the claimed exemption is not available
in that state; or to a seller who accepts an exemption certificate claiming
multiple points of use for tangible personal property other than computer
software for which an exemption claiming multiple points of use is acceptable
under Section 44-18.1-13.
(C) Each state shall
relieve a seller of the tax otherwise applicable if the seller obtains a fully
completed exemption certificate or captures the relevant data elements required
under the Agreement within 90 days subsequent to the sate of sale.
(1) If the seller has
not obtained an exemption certificate or all relevant data elements as provided
in Section 44-18.1-18, subsection (C) the seller may, within 120 days subsequent
to a request for substantiation by a member state, either prove that the
transaction was not subject to tax by other means or obtain a fully completed
exemption certificate from the purchaser, taken in good faith. For purposes of this section, member states
may continue to apply their own standards of good faith until such time as a
uniform standard for good faith is defined in the Agreement.
(2) Nothing in this
section shall affect the ability of member states to require purchasers to
update exemption certificate information or to reapply with the state to claim
certain exemptions.
(3) Notwithstanding
the aforementioned, each member state shall relieve a seller of the tax
otherwise applicable if it obtains a blanket exemption certificate for a
purchaser with which the seller has a recurring business relationship. States may not request from the seller
renewal of blanket certificates or updates of exemption certificate information
or data elements when there is a recurring business relationship between the
buyer and seller. For purposes of this
section a recurring business relationship exists when a period of no more than
twelve months elapses between sales transactions.
44-18.1-19. Uniform Tax Returns. — Each
member state shall:
(A) Require that only one
tax return for each taxing period for each seller be filed for the member state
and all the taxing jurisdictions within the member state.
(B) Require that
returns be due no sooner than the twentieth day of the month following the
month in which the transaction occurred.
(C) Allow any Model 1,
Model 2, or Model 3 seller to submit its sales and use tax returns in a
simplified format that does not include more data fields than permitted by the
governing board. A member state may
require additional informational returns to be submitted not more frequently
than every six months under a staggered system developed by the governing
board.
(D) Allow any seller
that is registered under the Agreement, which does not have a legal requirement
to register in the member state, and is not a Model 1, 2, or 3 seller, to
submit its sales and use tax returns as follows:
(1) Upon registration,
a member state shall provide to the seller the returns required by that state.
(2) A member state may
require a seller to file a return anytime within one year of the month of
initial registration, and future returns may be required on an annual basis in
succeeding years.
(3) In addition to the
returns required in subsection (D)(2), a member state may require sellers to
submit returns in the month following any month in which they have accumulated
state and local tax funds for the state in the amount of one thousand dollars
or more.
(E) Participate with
other member states in developing a more uniform sales and use tax return that,
when completed, would be available to all sellers.
(F) Require, at each
member state’s discretion, all Model 1, 2, and 3 sellers to file returns
electronically. It is the intent of the
member states that all member states have the capability of receiving electronically
filed returns.
44-18.1-20. Uniform Rules for Remittances of Funds. — Each
member state shall:
(A) Require only one
remittance for each return except as provided in this subsection. If any additional remittance is required, it
may only be required from sellers that collect more than thirty thousand
dollars in sales and use taxes in the member state during the preceding
calendar year as provided herein. The
state shall allow the amount of any additional remittance to be determined
through a calculation method rather than actual collections. Any additional remittances shall not require
the filing of an additional return.
(B) Require, at each
member state’s discretion, all remittances from sellers under Models 1, 2, and 3
to be remitted electronically.
(C) Allow for
electronic payments by both ACH Credit and ACH Debit.
(D) Provide an
alternative method for making “same day” payments if an electronic funds
transfer fails.
(E) Provide that if a
due date falls on a legal banking holiday in a member state, the taxes are due
to that state on the next succeeding business day.
(F) Require that any
data that accompanies a remittance be formatted using uniform tax type and
payment type codes approved by the governing board.
44-18.1-21. Uniform Rules for Recovery of Bad Debts. — Each
member state shall use the following to provide a deduction for bad debts to a
seller. To the extent a member state
provides a bad debt deduction to any other party, the same procedures will
apply. Each member state shall:
(A) Allow a deduction
from taxable sales for bad debts. Any
deduction taken that is attributed to bad debts shall not include interest.
(B) Utilize the
federal definition of “bad debt” in 26 U.S.C. Sec. 166 as the basis for calculating
bad debt recovery. However, the amount
calculated pursuant to 26 U.S.C. Sec. 166 shall be adjusted to exclude: financing charges or interest; sales or use
taxes charged on the purchase price; uncollectable amounts on property that
remain in the possession of the seller until the full purchase price is
paid; expenses incurred in attempting
to collect any debt, and repossessed property.
(C) Allow bad debts to
be deducted on the return for the period during which the bad debt is written
off as uncollectable in the claimant’s books and records and is eligible to be
deducted for federal income tax purposes.
For purposes of this subsection, a claimant who is not required to file
federal income tax returns may deduct a bad debt on a return filed for the period
in which the bad debt is written off as uncollectable in the claimant’s books
and records and would be eligible for a bad debt deduction for federal income
tax purposes if the claimant was required to file a federal income tax return.
(D) Require that, if a
deduction is taken for a bad debt and the debt is subsequently collected in
whole or in part, the tax on the amount so collected must be paid and reported
on the return filed for the period in which the collection is made.
(E) Provide that, when
the amount of bad debt exceeds the amount of taxable sales for the period
during which the bad debt is written off, a refund claim may be filed within
the member state’s otherwise applicable statute of limitations for refund
claims; however, the statute of limitations shall be measured from the due date
of the return on which the bad debt could first be claimed.
(F) Where filing
responsibilities have been assumed by a CSP, allow the service provider to
claim, on behalf of the seller, any bad debt allowance provided by this
section. The CSP must credit or refund
the full amount of any bad debt allowance or refund received to the seller.
(G) Provide that, for
the purposes of reporting a payment received on a previously claimed bad debt,
any payments made on a debt or account are applied first proportionally to the
taxable price of the property or service and the sales tax thereon, and
secondly to interest, service charges, and any other charges.
(H) In situations
where the books and records of the party claiming the bad debt allowance
support an allocation of the bad debts among the member states, permit the
allocation.
44-18.1-22. Confidentiality and Privacy Protections
Under Model 1. — (A) The purpose of this section is to set
forth the member states’ policy for the protection of the confidentiality
rights of all participants in the system and of the privacy interests of
consumers who deal with Model 1 sellers.
(B) As used in this
section, the term “confidential taxpayer information” means all information
that is protected under a member state’s laws, regulations, and privileges; the
term “personally identifiable information” means information that identifies a
person; and the term “anonymous data” means information that does not identify
a person.
(C) The member states
agree that a fundamental precept in Model 1 is to preserve the privacy of
consumers by protecting their anonymity.
With very limited exceptions, a CSP shall perform its tax calculation,
remittance, and reporting functions without retaining the personally
identifiable information of consumers.
(D) The governing
board may certify a CSP only if that CSP certifies that:
(1) Its system has
been designed and tested to ensure that the fundamental precept of anonymity is
respected;
(2) That personally
identifiable information is only used and retained to the extent necessary for
the administration of Model 1 with respect to exempt purchasers;
(3) It provides
consumers clear and conspicuous notice of its information practices, including
what information is collects, how it collects the information, how it uses the
information, how long, if at all, it retains the information and whether it
discloses the information to member states.
Such notice shall be satisfied by a written privacy policy statement
accessible by the public on the official web site of the CSP;
(4) Its collection,
use and retention of personally identifiable information will be limited to
that required by the member states to ensure the validity of exemptions from
taxation that are claimed by reason of a consumer’s status or the intended use
of the goods or services purchased; and
(5) It provides
adequate technical, physical, and administrative safeguards so as to protect
personally identifiable information from unauthorized access and disclosure.
(E) Each member state
shall provide public notification to consumers, including their exempt
purchasers, of the state’s practices relating to the collection, use and
retention of personally identifiable information.
(F) When any
personally identifiable information that has been collected and retained is no
longer required for the purposes set forth in subsection (D)(4), such
information shall no longer be retained by the member states.
(G) When personally
identifiable information regarding an individual is retained by or on behalf of
a member state, such state shall provide reasonable access by such individual
to his or her own information in the state’s possession and a right to correct
any inaccurately recorded information.
(H) If anyone other than
a member state, or a person authorized by that state’s law or the Agreement,
seeks to discover personally identifiable information, the state from whom the
information is sought should make a reasonable and timely effort to notify the
individual of such request.
(I) This privacy
policy is subject to enforcement by member states’ attorneys general or other
appropriate state government authority.
(J) Each member
states’ laws and regulations regarding the collection, use, and maintenance of
confidential taxpayer information remain fully applicable and binding. Without limitation, the Agreement does not
enlarge or limit the member states’ authority to:
(1) Conduct audits or
other review as provided under the Agreement and state law.
(2) Provide records
pursuant to a member state’s Freedom of Information Act, disclosure laws with
governmental agencies, or other regulations.
(3) Prevent,
consistent with state law, disclosures of confidential taxpayer information.
(4) Prevent,
consistent with federal law, disclosures or misuse of federal return
information obtained under a disclosure agreement with the Internal Revenue
Service.
(5) Collect, disclose,
disseminate, or otherwise use anonymous data for governmental purposes.
(K) This privacy
policy does not preclude the governing board from certifying a CSP whose
privacy policy is more protective of confidential taxpayer information or
personally identifiable information than is required by the Agreement.
44-18.1-23. Sales Tax Holidays. — (A)
If a member state allows for temporary exemption periods, commonly referred to
as sales tax holidays, the member state shall:
(1) Not apply an
exemption after December 31, 2003, unless the items to be exempted are
specifically defined in the Agreement and the exemptions are uniformly applied
to state and local sales and use taxes.
(2) Provide notice of
the exemption period at least sixty days’ prior to the first day of the
calendar quarter in which the exemption period will begin.
(B) A member state may
establish a sales tax holiday that utilizes price thresholds set by such state
and the provisions of the Agreement on the use of thresholds shall not apply to
exemptions provided by a state during a sales tax holiday. In order to provide uniformity, a price
threshold established by a member state for exempt items shall include only
items priced below the threshold. A
member state shall not exempt only a portion of the price of an individual item
during a sales tax holiday.
(C) The following
procedures are to be used by member states in administering a sales tax holiday
exemption:
(1) Layaway sales – A
sale of eligible property under a layaway sale qualifies for exemption if:
(a) final payment on a
layaway order is made by, and the property is given to, the purchaser during
the exemption period; or
(b) the purchaser
selects the property and the retailer accepts the order for the item during the
exemption period, for immediate delivery upon full payment, even if delivery is
made after the exemption period.
(2) Bundled sales –
Member states will follow the same procedure during the sales tax holiday as
agreed upon for handling a bundled sale at other times.
(3) Coupons and
discounts – A discount by the seller reduces the sales price of the property
and the discounted sales price determines whether the sales price is within a
sales tax holiday price threshold of a member state. A coupon that reduces the sales price is treated as a discount if
the seller is not reimbursed for the coupon amount by a third-party. If a discount applies to the total amount
paid by a purchaser rather than to the sales price of a particular item and the
purchaser has purchased both eligible property and taxable property, the seller
should allocate the discount based on the total sales price of the taxable property
compared to the total sales prices of all property sold in that same
transaction.
(4) Splitting of items
normally sold together – Articles that are normally sold as a single unit must
continue to be sold in that manner.
Such articles cannot be priced separately and sold as individual items
in order to obtain the exemption. For
example, a pair of shoes cannot have each shoe sold separately so that the
sales price of each shoe is within a sales tax holiday price threshold.
(5) Rain checks – A
rain check allows a customer to purchase an item at a certain price at a later
time because the particular item was out of stock. Eligible property that customers purchase during the exemption
period with use of a rain check will qualify for the exemption regardless of
when the rain check was issued.
Issuance of a rain check during the exemption period will not qualify
eligible property for the exemption if the property is actually purchased after
the exemption period.
(6) Exchanges – The
procedure for an exchange in regards to a sales tax holiday is as follows:
(a) If a customer
purchases as item of eligible property during the exemption period, but later
exchanges the item for a similar eligible item, even if a different size,
different color, or other feature, no additional tax is due even if the
exchange is made after the exemption period.
(b) If a customer
purchase an item of eligible property during the exemption period, but after
the exemption period has ended, the customer returns the item and receives credit
on the purchase of a different item, the appropriate sales tax is due on the
sale of the newly purchased item.
(c) If a customer
purchases an item of eligible property before the exemption period, but during
the exemption period the customer returns the item and receives credit on the
purchase of a different item of eligible property, no sales tax is due on the
sale of the new item if the new item is purchased during the exemption period.
(7) Delivery charges –
Delivery charges, including shipping, handling and service charges, are part of
the sales price of eligible property unless a member state defines “sales
price” to exclude such charges. For the
purposes of determining a sales tax holiday price threshold, if all the
property in a shipment qualifies as eligible property and the sales price for
each item in the shipment is within the sales tax holiday price threshold, then
the seller does not have to allocate the delivery, handling, or service charge
to determine if the price threshold is exceeded. The shipment will be considered a sale of eligible products. If the shipment includes eligible property
and taxable property (including an eligible item with a sales price in excess
of the price threshold), the seller should allocate the delivery charge by
using:
(a) a percentage based
on the total sales prices of the taxable property compared to the total sales
prices of all property in the shipment; or
(b) a percentage based
on the total weight of the taxable property compared to the total weight of all
property in the shipment.
The seller must tax
the percentage of the delivery charge allocated to the taxable property but
does not have to tax the percentage allocated to the eligible property.
(8) Order date and
back orders – For the purpose of a sales tax holiday, eligible property
qualifies for exemption if:
(a) the item is both
delivered to and paid for by the customer during the exemption period; or
(b) the customer
orders and pays for the item and the seller accepts the order during the
exemption period for immediate shipment, even if delivery is made after the
exemption period. The seller accepts an
order when the seller has taken action to fill the order for immediate
shipment. Actions to fill an order
include placement of an “in date” stamp on a mail order or assignment of an
“order number” to a telephone order. An
order is for immediate shipment when the customer does not request delayed
shipment. An order is for immediate
shipment notwithstanding that the shipment may be delayed because of a backlog
of orders or because stock is currently unavailable to, or on back order by,
the seller.
(9) Returns – For a
60-day period immediately after the sales tax holiday exemption period, when a
customer returns an item that would qualify for the exemption, no credit for or
refund of sales tax shall be given unless the customer provides a receipt or
invoice that shows tax was paid, or the seller has sufficient documentation to
show that tax was paid on the specific item.
This 60-day period is set solely for the purpose of designating a time
period during which the customer must provide documentation that shows that
sales tax was paid on returned merchandise.
The 60-day period is not intended to change a seller’s policy on the
time period during which the seller will accept returns.
(10) Different time
zones – The time zone of the seller’s location determines the authorized time
period for a sales tax holiday when the purchaser is located in one time zone
and a seller is located in another.
44-18.1-24. Caps and Thresholds. — (A)
Each member state shall:
(1) Not have caps or
thresholds on the application of state sales or use tax rates or exemptions
that are based on the value of the transaction or item after December 31,
2005. A member state may continue to
have caps and thresholds until that date.
(2) Not have caps that
are based on the application of the rates unless the member state assumes the
administrative responsibility in a manner that places no additional burden on
the retailer.
(B) Each member state
that has local jurisdictions that levy a sales or use tax shall not place caps
or thresholds on the application of local rates or use tax rates or exemptions
that are based on the value of the transaction or item after December 31, 2005. A member state may continue to have caps and
thresholds until that date.
(C) The provisions of
this section do not apply to sales or use taxes levied on the retail sale or
transfer of motor vehicles, aircraft, watercraft, modular homes, manufactured
homes, or mobile homes or to instances where the burden of administration has
been shifted from the retailer.
44-18.1-25. Rounding Rule. — (A)
After December 31, 2005, each member state shall adopt a rounding algorithm
that meets the following criteria:
(1) Tax computation must
be carried to the third decimal place, and
(2) The tax must be
rounded to a whole cent using a method that rounds up to the next cent whenever
the third decimal place is greater than four.
(B) Each state shall
allow sellers to elect to compute the tax due on a transaction on an item or an
invoice basis, and shall allow the rounding rule to be applied to the
aggregated state and local taxes. No
member state shall require a seller to collect tax based on a bracket system.
44-18.1-26. Customer Refund Procedures. —
(A) These customer refund procedures are provided to apply when a state allows
a purchaser to seek a return of over-collected sales or use taxes from the
seller.
(B) Nothing in this
section shall either require a state to provide, or prevent a state from
providing, a procedure by which a purchaser may seek a refund directly from the
state arising out of sales or use taxes collected in error by a seller from the
purchaser. Nothing in this section
shall operate to extend any person’s time to seek a refund of sales or use
taxes collected or remitted in error.
(C) These customer
refund procedures provide the first course of remedy available to purchasers
seeking a return of over-collected sales or use taxes from the seller. A cause of action against the seller for the
over-collected sales or use taxes does not accrue until a purchaser has
provided written notice to a seller and the seller has had sixty days to
respond. Such notice to the seller must
contain the information necessary to determine the validity of the request.
(D) In connection with
a purchaser’s request from a seller of over-collected sales or use taxes, a
seller shall be presumed to have a reasonable business practice, if in the
collection of such sales or use taxes, the seller: (i) uses either a provider or a system, including a proprietary
system, that is certified by the state; and (ii) has remitted to the state all
taxes collected less any deductions, credits, or collection allowances.
44-18.1-27. Direct Pay Permits. — Each
member state shall provide for a direct pay authority that allows the holder of
a direct. pay permit to purchase otherwise taxable goods and services without
payment of tax to the supplier at the time of purchase. The holder of the direct pay permit will make
a determination of the taxability and then report and pay the applicable tax
due directly to the tax jurisdiction.
Each state can set its own limits and requirements for the direct pay
permit. The governing board shall
advise member states when setting state direct pay limits and requirements, and
shall consider use of the Model Direct Payment Permit Regulation as developed
by the Task Force on EDI Audit and Legal Issues for Tax Administration.
44-18.1-28. Library of Definitions.— Each
member state shall utilize common definitions as provided in this section. The terms defined are set out in the Library
of Definitions, in Appendix C of the Streamlined Sales and Use Tax Agreement. A member state shall adhere to the following
principles:
(A) If a term defined
in the Library of Definitions appears in a member state’s sales and use tax
statutes or administrative rules or regulations, the member state shall enact
of adopt the Library definition of the term in its statutes or administrative
rules or regulations in substantially the same language as the Library
definition.
(B) A member state
shall not use a Library definition in its sales or use tax statutes or
administrative rules or regulations that is contrary to the meaning of the
Library definition.
(C) Except as specifically provided in Section
44-18.1-16 and the Library of Definitions, a member state shall impose a sales
or use tax on all products or services included within each definition or
exempt from sales or use tax all products or services within each definition.
44-18.1-29. Taxability Matrix. — (A)
To ensure uniform application of terms defined in the Library of Definitions
each member state shall complete a taxability matrix adopted by the governing
board. The member state’s entries in
the matrix shall be provided and maintained in a database that is in a
downloadable format approved by the governing board. A member state shall provide notice of changes in the taxability
of the products or services listed in the taxability matrix as required by the
governing board.
(B) A member state
shall relieve sellers and CSPs from liability to the member state and its local
jurisdictions for having charged and collected the incorrect amount of sales or
use tax resulting from the seller or CSP relying on erroneous data provided by
the member state in the taxability matrix.
44-18.1-30. Effective Date for Rate Changes. — Each
member state shall provide that the effective date of rate changes for services
covering a period starting before and ending after the statutory effective date
shall be as follows:
(A) For a rate
increase, the new rate shall apply to the first billing period starting on or
after the effective date.
(B) For a rate
decrease, the new rate shall apply to bills rendered on or after the effective
date.
44-18.1-31. Bundled Transactions. — (A)
A member state shall adopt and utilize to determine tax treatment, the core
definition for a “bundled transaction”.
See Section 44-18-7.1(c).
(B) Member states are
not restricted in their tax treatment of bundled transactions except as
otherwise provided in the Agreement.
Member states are not restricted in their ability to treat some bundled
transactions differently from other bundled transactions.
(C) In the case of a
bundled transaction that includes any of the following: telecommunication service, ancillary
service, internet access, or audio or video programming service:
(1) If the price is
attributable to products that are taxable and products that are nontaxable, the
portion of the price attributable to the nontaxable products may be subject to
tax unless the provider can identify by reasonable and verifiable standards
such portion from its books and records that are kept in the regular course of
business for other purposes, including, but not limited to, non-tax purposes.
(2) If the price is
attributable to products that are subject to tax at different tax rates, the
total price may be treated as attributable to the products subject to tax at
the highest tax rate unless the provider can identify by reasonable and
verifiable standards the portion of the price attributable to the products
subject to tax at the lower rate from its books and records that are kept in
the regular course of business for other purposes, including, but not limited
to, non-tax purposes.
44-18.1-32. Seller Participation. — (A)
The member states shall provide an online registration system that will allow
sellers to register in all the member states.
(B) By registering,
the seller agrees to collect and remit sales and use taxes for all taxable
sales into the member states, including member states joining after the
seller’s registration. Withdrawal or
revocation of a member state shall not relieve a seller of its responsibility
to remit taxes previously or subsequently collected on behalf of the state.
(C) In member states
where the seller has a requirement to register prior to registering under the
Agreement, the seller may be required to provide additional information to
complete the registration process or the seller may choose to register directly
with those states.
(D) A member state or
a state that has withdrawn or been expelled shall not use registration with the
central registration system and the collection of sales and use taxes in the
member states as a factor in determining whether the seller has nexus with that
state for any tax at any time.
44-18.1-33. Amnesty for Registration. — (A)
Subject to the limitations in this section.
(1) A member state
shall provide amnesty for uncollected or unpaid sales or use tax to a seller
who registers to pay or to collect and remit applicable sales or use tax on
sales made to purchasers in the state in accordance with the terms of the
Agreement, provided that the seller was not so registered in that state in the
twelve-month period preceding the effective date of the state’s participation
in the Agreement
(2) The amnesty will
preclude assessment for uncollected or unpaid sales or use tax together with
penalty or interest for sales made during the period the seller was not
registered in the state, provided registration occurs within twelve months of
the effective date of the state’s participation in the Agreement.
(3) Amnesty similarly
shall be provided by any additional state that joins the Agreement after the
seller has registered.
(B) The amnesty is not
available to a seller with respect to any matter or matters for which the
seller received notice of the commencement of an audit and which audit is not
yet finally resolved including any related administrative and judicial processes.
(C) The amnesty is not
available for sales or use taxes already paid or remitted to the state or to
taxes collected by the seller.
(D) The amnesty is
fully effective, absent the seller’s fraud or intentional misrepresentation of
a material fact, as long as the seller continues registration and continues
payment or collection and remittance of applicable sales or use taxes for a
period of at least thirty-six months.
Each member state shall toll its statute of limitations applicable to
asserting a tax liability during this thirty-six month period.
(E) The amnesty is
applicable only to sales or use taxes due from a seller in its capacity as a
seller and not to sales or use taxes due from a seller in its capacity as a
buyer.
(F) A member state may
allow amnesty on terms and conditions more favorable to a seller than the terms
required by this section.
44-18.1.34. Method of Remittance. — When
registering, the seller may select one of the following methods of remittances
or other method allowed by state law to remit the taxes collected:
(A) MODEL 1, where a
seller selects a CSP as an agent to perform all the seller’s sales or use tax
functions, other than the seller’s obligation to remit tax on its own
purchases.
(B) MODEL 2, wherein a
seller selects a CAS to use which calculates the amount of tax due on a
transaction.
(C) MODEL 3, wherein a
seller utilizes its own proprietary automated sales tax system that has been
certified as a CAS.
44-18.1-35. Registration by an Agent. — A
seller may be registered by an agent.
Such appointment shall be in writing and submitted to a member state if
requested by the member state.
44-18.1-36. Monetary Allowance Under Model 1. — (A)
Each member state shall provide a monetary allowance to a CSP in Model 1 in
accordance with the terms of the contract between the governing board and the
CSP. The details of the monetary
allowance will be provided through the contract process. The governing board shall require that such
allowance be funded entirely from money collected in Model 1.
(B) The contract
between the governing board and a CSP may base the monetary allowance to a CSP
on one or more of the following:
(1) A base rate that
applies to taxable transactions processed by the CSP.
(2) For a period not
to exceed twenty-four months following a voluntary seller’s registration
through the Agreement’s central registration process, a percentage of tax
revenue generated for a member state by the voluntary seller for each member
state for which the seller does not have a requirement to register to collect
the tax.
44-18.1-37. Monetary Allowance for Model 2 Sellers. — The
member states initially anticipate that they will provide a monetary allowance
to sellers under Model 2 based on the following:
(A) All sellers shall
receive a base rate for a period not to exceed twenty-four months following the
commencement of participation by a seller.
The base rate will be set after the base rate has been established for
Model 1. This allowance will be in
addition to any discount afforded by each member state at the time.
(B) The member states
anticipate a monetary allowance to a Model 2 Seller based on the following:
(1) For a period not
to exceed twenty-four months following a voluntary seller’s registration
through the Agreement’s central registration process, a percentage of tax
revenue generated for a member state by the voluntary seller for each member
state for which the seller does not have a requirement to register to collect
the tax.
(2) Following the
conclusion of the twenty-four month period, a seller will only be entitled to a
vendor discount afforded under each member state’s law at the time the base
rate expires.
44-18.1-38. Monetary Allowance for Model 3 Sellers and
All Other Sellers. — The member states anticipate that they
will provide a monetary allowance to sellers under Model 3 and to all other
sellers that are not under Models 1 or 2 based on the following:
(A) For a period not
to exceed twenty-four months following a voluntary seller’s registration
through the Agreement’s central registration process, a percentage of tax
revenue generated for a member state by the voluntary seller for each member
state for which the seller does not have a requirement to register to collect
the tax.
(B) Vendor discounts afforded
under each member state’s law.
SECTION 13. Section
44-59-10 of the General Laws in Chapter 44-59 entitled "Uniform Sales And
Use Tax Administration Act" is hereby amended to read as follows:
44-59-10. Sunset provision. -- This chapter shall
be repealed on June 30, 20067, without further action by the
general assembly, if the statutory amendments to the sales and use tax law
necessary to bring this state into compliance with the Streamlined Sales and
Use Tax Agreement are not enacted by the general assembly by June 30, 2006
January 1, 2007.
SECTION 14. RESOLVED, That a special legislative commission be and
the same is hereby created consisting of eight (8) members two (2) of whom
shall be from the house of representatives, not more than one from the same
political party to be appointed by the speaker; two (2) of whom shall be from
the senate, not more than one from the same political party to be appointed by
the president; one of whom shall be the chairman of the house finance committee,
or designee; one of whom shall be the chairman of the senate finance committee,
or designee; and one of whom shall be the state tax administrator, or designee,
and one of whom shall be the chief of the office of revenue analysis or
designee.
The purpose of said commission shall be to study all aspects of
the state sales tax and shall include, but not be limited to: (1) evaluating
the business and economic impact of an adjustment to the sales tax rate; (2) a
determination of what rate will make the state of Rhode Island the most
competitive in the region; (3) an analysis of streamlining sales tax agreements
among the states; (4) a determination whether the sales tax shall be expanded
into goods or services not covered by existing law; and (5) evaluating whether
a reduction in the tax rates consistent with a rate reduction beginning January
1, 2008 of one quarter percent (.25%) per year continuing to January 1, 2014
until such time as the tax rate shall be five percent (5%) is economically
feasible for the state of Rhode Island.
Forthwith upon passage
of this resolution, the members of the commission shall meet at the call of the
speaker of the house and president of the senate. The chairpersons of the house
and senate finance committees shall act as co-chairpersons. Vacancies in said
commission shall be filled in like manner as the original appointment.
The membership of said
commission shall receive no compensation for their services.
All departments and
agencies of the state shall furnish such advice and information, documentary
and otherwise, to said commission and its agent as is deemed necessary or
desirable by the commission to facilitate the purposes of this resolution.
The speaker of the
house is hereby authorized and directed to provide suitable quarters for said
commission; and be it further
RESOLVED, That the
commission shall report its findings and recommendations to the general
assembly on or before June 30, 2007 and said commission shall expire on August
31, 2007.
SECTION 15. Section
44-20-13.2 of the General Laws in Chapter 44-20 entitled "Cigarette
Tax" is hereby amended to read as follows:
44-20-13.2. Tax imposed on smokeless tobacco, cigars, and pipe tobacco
products. – (a) A tax is imposed on all smokeless
tobacco, cigars, and pipe tobacco products sold or held for sale in the state
by any person, the payment of the tax to be accomplished according to a
mechanism established by the administrator, division of taxation, department of
administration. Any tobacco product on which the proper amount of tax provided
for in this chapter has been paid, payment being evidenced by a stamp, is not
subject to a further tax under this chapter. The tax imposed by this section is
at the rate of forty percent (40%) of the wholesale cost of smokeless tobacco, cigars,
and pipe tobacco products. The proceeds collected are paid into the general
fund.
(b) Notwithstanding
the forty percent (40%) rate in subsection (a) above, in the case of cigars,
the tax shall not exceed fifty cents ($.50) for each cigar for the period July
1, 2006 through June 30, 2008.
SECTION 16. Sections
44-20-1 and 44-20-13.2 of the General Laws in Chapter 44-20 entitled
"Cigarette Tax" are hereby amended to read as follows:
44-20-1. Definitions. -- Whenever used in this
chapter, unless the context requires otherwise:
(1) "Administrator" means the tax
administrator;
(2) "Cigarettes" means and includes
any cigarettes suitable for smoking in cigarette form, and each sheet of
cigarette rolling paper;
(3) "Dealer" means any person other
than a distributor who is engaged in this state in the business of selling
cigarettes;
(4) (i) "Distributor" means any
person:
(A) Engaged in this state in the business of
manufacturing cigarettes or any person engaged in the business of selling
cigarettes to dealers, or to other persons, for the purpose of resale only;
provided, that seventy-five percent (75%) of all cigarettes sold by that person
in this state are sold to dealers or other persons for resale;
(B) Selling cigarettes directly to consumers
at retail, and maintaining one or more regular places of business in this state
for that purpose; provided, that seventy-five percent (75%) of the sold
cigarettes are purchased directly from the manufacturer; or
(C) Selling cigarettes directly to consumers
in this state by means of at least twenty-five (25) cigarette vending machines;
(ii) Provided, that any person who owns or
maintains five (5) or more retail outlets in Rhode Island, having one hundred percent
(100%) common ownership, through which cigarettes are sold at retail may apply
for a distributor's license, and upon issuance of the license, that person is
deemed to be a distributor under this chapter;
(5) "Licensed dealer" means a
dealer licensed under the provisions of this chapter;
(6) "Licensed distributor" means a
distributor licensed under the provisions of this chapter;
(7) "Person" means any individual,
firm, fiduciary, partnership, corporation, trust, or association, however
formed;
(8) "Place of business" means and
includes any place where cigarettes are sold or where cigarettes are stored or
kept for the purpose of sale or consumption, including any vessel, vehicle,
airplane, train, or vending machine;
(9) "Sale" or "sell"
includes and applies to gifts, exchanges, and barter;
(10) "Snuff"
means any finely cut, ground, or powdered tobacco that is not intended to be
smoked;
(10) (11) "Stamp"
means the impression, device, stamp, label, or print manufactured, printed, or
made as prescribed by the administrator to be affixed to packages of
cigarettes, as evidence of the payment of the tax provided by this chapter; and
also includes impressions made by metering machines authorized to be used under
the provisions of this chapter.
44-20-13.2. Tax imposed on smokeless tobacco, cigars, and pipe tobacco
products. -- A tax is imposed on all smokeless
tobacco, cigars, and pipe tobacco products sold or held for sale in the state
by any person, the payment of the tax to be accomplished according to a
mechanism established by the administrator, division of taxation, department of
administration. Any tobacco product on which the proper amount of tax provided
for in this chapter has been paid, payment being evidenced by a stamp, is not
subject to a further tax under this chapter. The tax imposed by this section shall
be as follows: is at
(a) At
the rate of forty percent (40%) of the wholesale cost of smokeless tobacco,
cigars, and pipe tobacco products, and smokeless tobacco other than
snuff.
(b) At the rate of one
dollar ($1.00) per ounce of snuff, and a proportionate tax at the like rate on
all fractional parts of an ounce thereof. Such tax shall be computed based on
the net weight as listed by the manufacturer, provided, however, that any
product listed by the manufacturer as having a net weight of less than 1.2
ounces shall be taxed as if the product has a net weight of 1.2 ounces.
The proceeds collected
are paid into the general fund.
SECTION 17. Section
42-64-20 of the General Laws in Chapter 42-64 entitled "Rhode Island
Economic Development Corporation" is hereby amended to read as follows:
42-64-20. Exemption from taxation. --
(a) The exercise of the powers granted by this chapter will be in all respects
for the benefit of the people of this state, the increase of their commerce,
welfare, and prosperity and for the improvement of their health and living
conditions and will constitute the performance of an essential governmental
function and the corporation shall not be required to pay any taxes or
assessments upon or in respect of any project or of any property or moneys of
the corporation, levied by any municipality or political subdivision of the
state; provided, that the corporation shall make payments in lieu of real
property taxes and assessments to municipalities and political subdivisions
with respect to projects of the corporation located in the municipalities and
political subdivisions during those times that the corporation derives revenue
from the lease or operation of the projects. Payments in lieu of taxes shall be
in amounts agreed upon by the corporation and the affected municipalities and
political subdivisions. Failing the agreement, the amounts of payments in lieu
of taxes shall be determined by the corporation using a formula that shall
reasonably ensure that the amounts approximate the average amount of real
property taxes due throughout the state with respect to facilities of a similar
nature and size. Any municipality or political subdivision is empowered to
accept at its option an amount of payments in lieu of taxes less than that
determined by the corporation. If, pursuant to section 42-64-13(f), the
corporation shall have agreed with a municipality or political subdivision that
it shall not provide all of the specified services, the payments in lieu of
taxes shall be reduced by the cost incurred by the corporation or any other
person in providing the services not provided by the municipality or political
subdivision.
(b) The corporation shall not be required to
pay state taxes of any kind, and the corporation, its projects, property, and
moneys and, except for estate, inheritance, and gift taxes, any bonds or notes
issued under the provisions of this chapter and the income (including gain from
sale or exchange) from these shall at all times be free from taxation of every
kind by the state and by the municipalities and all political subdivisions of
the state. The corporation shall not be required to pay any transfer tax of any
kind on account of instruments recorded by it or on its behalf.
(c) For purposes of the exemption from taxes
and assessments upon or in respect of any project under subsections (a) or (b)
of this section, the corporation shall not be required to hold legal title to
any real or personal property, including any fixtures, furnishings or equipment
which are acquired and used in the construction and development of the project,
but the legal title may be held in the name of a lessee (including sublessees)
from the corporation. This property, which shall not include any goods or
inventory used in the project after completion of construction, shall be exempt
from taxation to the same extent as if legal title of the property were in the
name of the corporation; provided that the board of directors of the corporation
adopts a resolution confirming use of the tax exemption for the project by the
lessee. No resolution shall be adopted without the prior approval of the
general assembly. The resolution shall include findings that: (1) the
project is a project of the corporation under section 42-64-3(20), and (2) it
is in the interest of the corporation and of the project that legal title be
held by the lessee from the corporation. In adopting the resolution, the board
of directors may consider any factors it deems relevant to the interests of the
corporation or the project including, for example, but without limitation,
reduction in potential liability or costs to the corporation or designation of
the project as a "Project of Critical Economic Concern" pursuant to
Chapter 117 of this title.
SECTION 18. Chapter
42-64 of the General Laws entitled
"Rhode Island Economic Development Corporation" is hereby
amended by adding thereto the following section:
42-64-20.1.
Procedure. – (a)
A resolution by the board of directors of the corporation that adopts
confirming use of the tax exemption for a project by the lessee as required in
section 42-64-20(c) shall be deemed to have been approved by the general
assembly when the general assembly passes a concurrent resolution of approval
which the corporation requests that, the resolution adopting confirming use of
the tax exemption for a project by the lessee, be approved by the general
assembly. These requests shall be transmitted to the speaker of the house and the
president of the senate with copies to the chairpersons of the respective
finance committees, and fiscal advisors. The request for approval shall
include:
(1) A full description of the project to which the tax exemption
is related;
(2) The corporation's findings required by section 42-62-10(1);
and
(3) The corporation's analysis of impact required by section
42-64-10(2).
SECTION 19 Section
45-37.1-9 of the General Laws in Chapter 45-37.1 entitled "Industrial
Facilities Corporation" is hereby amended to read as follows:
45-37.1-9. Exemption from taxation. --
(a) The exercise of the powers granted by this chapter will be in all respects
for the benefit of the people of this state, for the increase of their
commerce, welfare and prosperity, and for the improvement of their health and
living conditions, and will constitute the performance of an essential
government function, and the corporation is not required to pay any taxes or
assessments upon or in respect of a project, or any property or moneys of the
corporation, levied by any municipality or political subdivision of the state,
nor is the corporation required to pay state taxes of any kind, and the
corporation, its projects, property, and moneys, and any bonds and notes issued
under the provisions of this chapter, their transfer and the income from them,
including any profit made on their sale, are at all times free from taxation of
every kind by the state and by the municipalities and all other political
subdivisions of the state, and the corporation is not required to pay any
transfer tax of any kind on account of instruments recorded by or on its behalf
or in connection with the financing of any of its projects; provided, that any
person, partnership, corporation, or concern leasing a project from the
corporation shall pay to the city, town, school district, or other political
subdivision or special district having taxing powers, in which the project is
located, a payment in lieu of taxes which equals the taxes on real and personal
property which the lessee would have been required to pay, had it been the
owner of the property during the period for which the payment is made, and
under no circumstances are the corporation or its projects, properties, money,
bonds, or notes obligated, liable, or subject to a lien of any kind for their
enforcement, collection, or payment; and provided, further, that in the case of
any person, partnership, corporation, or concern leasing a project from the
corporation any such person, partnership, corporation or concern so leased
shall be exempt from payment of state sales tax applicable to materials used in
construction of such a facility only to the extent that the costs of such
materials do not exceed the amount financed through the corporation and the exemption
has the prior approval of the general assembly.
(b) If and to the extent the proceedings
under which the bonds or notes authorized to be issued under the provisions of
this chapter so provide, the corporation may agree to cooperate with the lessee
of a project in connection with any administrative or judicial proceedings for
determining the validity or amount of payments, and may agree to appoint or
designate and reserve the right in and for the lessee to take all action which
the corporation may lawfully take in respect of those payments and all matters
relating to them, provided, that the lessee bears and pay all costs and
expenses of the corporation thereby incurred at the request of the lessee or by
reason of any action taken by the lessee in behalf of the corporation. Any
lessee of a project, which has paid the amounts in lieu of taxes required by
the first sentence of this section, is not required to pay any taxes for which
a payment in lieu thereof has been made to the state or to any city, town,
school district, or other political subdivision or special district having
taxing powers, notwithstanding any other statute to the contrary.
SECTION 20. Chapter
45-37.1 of the General Laws entitled
"Industrial Facilities Corporation" is hereby amended by
adding thereto the following section:
45-37.1-9.1.
Procedure. – (a)
An exemption from payment of state sales tax applicable to materials used in
construction of a facility only to the extent that the costs of such materials
do not exceed the amount financed through the corporation as required in
section 45-37.1-9 shall be deemed to have been approved by the general assembly
when the general assembly passes a concurrent resolution of approval which the
corporation requests, that the exemption from payment of state sales tax
applicable to materials used in construction of a facility only to the extent
that the costs of such materials do not exceed the amount financed through the
corporation, be approved by the general assembly. These requests shall be transmitted
to the speaker of the house and the president of the senate with copies to the
chairpersons of the respective finance committees and fiscal advisors. The
request for approval shall include:
(1) A full description of the project to which the tax exemption
is related; and
(2) The corporation's analysis of the impact of the proposed
project will or may have on the state. The analysis shall be supported by such
appropriate data and documentation and shall consider, but not be limited to,
the following factors:
(i) The impact on the industry or industries in which the
completed project will be involved;
(ii) State fiscal matters, including the state budget (revenues
and expenses);
(iii) The financial exposure of the taxpayers of the state under
the plans for the proposed project and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate number of jobs projected to be created,
construction and nonconsturction;
(v) Identification of geographic sources of the staffing for
identified jobs;
(vi) The projected duration of the identified construction jobs;
(vii) The approximate wage rates for the identified jobs;
(viii) The types of fringe benefits to be provided with the
identified jobs, including healthcare insurance and any retirement benefits;
(ix) The projected fiscal impact on increased personal income
taxes to the state of Rhode Island; and
(x) The description of any plan or process intended to stimulate
hiring from the host community, training of employees or potential employees
and outreach to minority job applicants and minority businesses.
SECTION 21. Section 4
of this article shall take effect on June 30, 2005. Sections 9, 10, 11 and 12
shall take effect on January 1, 2007. Section 15 shall take effect upon passage
and shall be effective from July 1, 2006 through June 30, 2008. Section 16
shall take effect on July 1, 2006. The
remainder of this article shall take effect upon passage.
ARTICLE 31 SUBSTITUTE A
Relating To Pandemic Influenza Preparation
SECTION 1. Section
23-1-45 of the General Laws in Chapter in 23-1 entitled “Department of Health”
is hereby amended to read as follows:
§ 23-1-45. Infant-child immunization account. – There
is created within the general fund a restricted receipt account to be known as
the "infant-child immunization account". All money in the account shall be utilized by the department of
health to effectuate the provisions of § 23-1-44. All money received pursuant
to §§ 23-1-46 and 23-1-47 shall be deposited in the infant-child immunization
account. There shall be an
expenditure in FY 2007 not to exceed one million dollars ($1,000,000) for
pandemic influenza medications and equipment as directed by the director of
health. The general treasurer is authorized and directed to draw his or her
orders on the account upon receipt of properly authenticated vouchers from the
department of health.
SECTION 2. This article shall take effect as of July 1,
2006.
ARTICLE 32 SUBSTITUTE A AS AMENDED
RELATING TO HUMAN SERVICES -- FAMILY
INDEPENDENCE ACT
SECTION 1. Sections 40-5.1-8, 40-5.1-9, 40-5.1-17 and
40-5.1-18 of the General Laws in Chapter 40-5.1 entitled “Family Independence
Act” are hereby amended to read as follows:
§ 40-5.1-8. Eligibility for cash assistance. – (a)(1)
Except as otherwise provided for in this section, no person shall be included
in any family for purposes of determining eligibility for or the amount of cash
to which a family is entitled under this chapter, unless the person is a
resident of the state and is: (A) either a citizen; or (B) lawfully admitted
for permanent residence before August 22, 1996, or (C) otherwise lawfully
entitled to reside in the United States before August 22, 1996 and is
determined to have a status within the meaning of the term "qualified
alien", or an exception thereto, under § 402(b) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Laws No.
104-193), and as that section may hereafter be amended; or (D) an alien who on
or after August 22, 1996 is determined to have a status within the meaning of
the term "qualified alien", or an exception thereto, under § 402(b)
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Laws No. 104-193), and as that section may hereafter be amended.
(2) An alien who
does not meet the citizenship or alienage criteria in subsection (a)(1) above,
who was lawfully residing in the United States before August 22, 1996 and who
is a resident of this state prior to July 1, 1997, shall be eligible for cash
assistance under this chapter without regard to the availability of federal
funding; provided, however, that the person meets all other eligibility
requirements under this chapter.
(3) No person
shall be ineligible for assistance payments under this chapter due solely to
the restricted eligibility rules otherwise imposed by section 115(a)(2) of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public
Laws No. 104-193) and as that section may hereafter be amended.
(b) No family
shall be eligible for assistance payments if the combined value of its
available resources (reduced by any obligations or debts with respect to such
resources) exceed one thousand dollars ($1,000). For purposes of this
subsection, the following shall not be counted as resources of the family:
(1) The home
owned and occupied by a child, parent, relative or other individual;
(2) Real
property owned by a husband and wife as tenants by the entirety, if the
property is not the home of the family and if the spouse of the applicant
refuses to sell his or her interest in the property;
(3) Real
property which the family is making a good faith effort to dispose of, but any
aid payable to the family for any such period shall be conditioned upon such
disposal and any payments of aid for that period shall (at the time of
disposal) be considered overpayments to the extent that they would not have
occurred at the beginning of the period for which the payments were made. Any
overpayments that may have occurred are debts subject to recovery in accordance
with the provisions of § 40-5.1-28;
(4) Income
producing property other than real estate including but not limited to
equipment such as farm tools, carpenter's tools and vehicles used in the
production of goods or services which the department determines are necessary
for the family to earn a living;
(5) One (1)
vehicle for each adult household member but not to exceed two (2) vehicles per
household, and in addition, a vehicle used primarily for income producing
purposes such as but not limited to a taxi, truck or fishing boat; a vehicle
used as a family's home; a vehicle which annually produces income consistent
with its fair market value, even if only used on a seasonal basis; a vehicle
necessary to transport a family member with a disability where the vehicle is
specially equipped to meet the specific needs of the person with a disability
or if the vehicle is a special type of vehicle that makes it possible to
transport the person with a disability;
(6) Household
furnishings and appliances, clothing, personal effects and keepsakes of limited
value;
(7) Burial plots
(one for each child, relative, and other individual), and funeral arrangements;
(8) For the
month of receipt and the following month, any refund of federal income taxes
made to the family by reason of § 32 of the Internal Revenue Code of 1986, 26
U.S.C. § 32, (relating to earned income tax credit), and any payment made to
the family by an employer under § 3507 of the Internal Revenue Code of 1986, 26
U.S.C. § 3507 (relating to advance payment of such earned income credit);
(9) The
resources of any family member receiving supplementary security income
assistance under the Social Security Act, 42 U.S.C. § 301 et seq.
(c) [Deleted by
P.L. 2003, ch. 376, art. 12, § 1.]
(d) (1) Except
as otherwise provided for in this section, no person shall be included in any
family for purposes of determining eligibility for or the amount of cash to
which a family is entitled under this chapter, if that person after attaining
eighteen (18) years of age, has received cash assistance under this chapter for
a total of sixty (60) months (whether or not consecutive) to include any
time receiving family cash assistance in any other state or territory of the
United States of America as defined herein. The limitation in the
preceding sentence only shall apply only if required by federal statute or
regulation.
Family cash assistance in any other state or territory of the
United States of America shall be determined by the Department of Human
Services and shall include family cash assistance funded in whole or in part by
Temporary Assistance for Needy Families (TANF) funds [Title IV-A of the federal
Social Security Act, 42 U.S.C. section 601 et seq.] and/or family cash
assistance provided under a program similar to the Family Independence Act or
the federal TANF program.
(2) In calculating the
sixty (60) month limit imposed in subsection (d)(1), the department shall
disregard any month for which assistance was provided with respect to a minor
parent or minor pregnant woman during those months when the individual was a
minor child, or a parent employed an average of thirty (30) or more hours
per week during a month in a single parent family, or an average of thirty-five
(35) hours per week during a month for a two (2) parent family.
(3) The department may
exempt a family from the application of subsection (d)(1) or (d)(2) by reason
of hardship; provided, however, that the number of such families to be exempted
by the department under this subsection shall not exceed twenty percent (20%)
of the average monthly number of families to which assistance is provided for
under this chapter in a fiscal year; provided, however, that to the extent now
or hereafter permitted by federal law any waiver granted under § 40-5.1-46(a)
shall not be counted in determining the twenty percent (20%) maximum under this
section.
(e)
Notwithstanding any other provision of this chapter, the amount of cash to
which a family is entitled under the chapter shall be reduced by thirty percent
(30%) until the family has been a resident of the state for twelve (12)
consecutive months; provided, however, that no member of the family who has
been a resident of the state for twelve (12) consecutive months or longer shall
have his or her benefit reduced under this subsection.
(f) A family:
(i) Consisting of a
parent who is under the age of eighteen (18) (minor parent); and
(ii) Who has never
been married; and
(iii) Who has a child,
or a family which consists of a woman under the age of eighteen (18) who is at
least six months pregnant (pregnant minor), shall be eligible for cash
assistance only if such family resides in the home of a parent, legal guardian
or other adult relative. Such assistance shall be provided to the parent, legal
guardian, or other adult relative on behalf of the individual and child unless
otherwise authorized by the department.
(2) Subdivision (1)
shall not apply if:
(i) The minor parent
or pregnant minor has no parent, legal guardian or other adult relative who is
living and or whose whereabouts are known;
(B) The department
determines that the physical or emotional health or safety of the minor parent,
or his or her child, or the pregnant minor, would be jeopardized if he or she
was required to live in the same residence as his or her parent, legal guardian
or other adult relative (refusal of a parent, legal guardian or other adult
relative to allow the minor parent or his or her child, or a pregnant minor, to
live in his or her home shall constitute a rebutable presumption that the
health or safety would be so jeopardized);
(C) The minor parent
or pregnant minor has lived apart from his or her own parent or legal guardian
for a period of at least one year before either the birth of any child to a
minor parent or the onset of the pregnant minor's pregnancy; or
(D) There is good
cause, under departmental regulations, for waiving the subsection; and
(ii) The individual
resides in supervised supportive living arrangement to the extent available.
For purposes of this section "supervised supportive living
arrangement" means an arrangement which:
(A) Requires teen
parents to enroll and make satisfactory progress in a program leading to a high
school diploma or a general education development certificate;
(B) Requires teen
parents to participate in the adolescent parenting program established in
chapter 19 of this title to the extent the program is available; and
(C) Provides rules and
regulations which insure regular adult supervision.
(g) As a condition of
eligibility for cash and medical assistance under this chapter, each adult
member of the family has:
(1) Assigned to the
state any rights to support for children within the family from any person
which the family member has at the time the assignment is executed or may have
while receiving assistance under this chapter;
(2) Consented to and
is cooperating with the state in establishing the paternity of a child born out
of wedlock with respect to whom assistance is claimed, and in obtaining support
payments for the family member with respect to whom the aid is claimed, or in
obtaining any other payments or property due any family member, unless the
applicant is found to have good cause for refusing to comply with the
requirements of this subsection.
Absent good cause for
refusing to comply with the requirements of this subsection, the amount of cash
a family is otherwise entitled shall be reduced by twenty-five percent (25%)
until the adult member of the family who has refused to comply with the
requirements of this subsection consents to and cooperates with the state in
accordance with the requirements of this subsection.
(3) Consented to and
is cooperating with the state in identifying, and providing information to
assist the state in pursuing any third party who may be liable to pay for care
and services under Title XIX of the Social Security Act, 42 U.S.C. § 1396 et
seq.
(h) As a condition of
eligibility for cash assistance to a family under this chapter, the parent(s),
unless otherwise exempt under this chapter, must enter into an individual
employment plan in accordance with section 40-5.1-9(c). This condition of
eligibility shall apply to applications for assistance filed on or after July
1, 2006 and to current recipients at the time of their next
redetermination of eligibility
occurring on or after July 1, 2006.
§ 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) (1) 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, Effective
for applications filed on or after July 1, 2006 and to current recipients at
the time of their next redetermination of eligibility on or after July 1, 2006,
the department shall develop a family financial plan pursuant to § 40-5.1-5
and, unless the parent is exempt from work pursuant to paragraph (iv), the
department shall assess the parent's educational and vocational abilities,
and the department and the parent shall jointly develop and enter
into an individual employment plan pursuant to § 40-5.1-5 within thirty
(30) days of the filing of an application for assistance. In the case of a
family including two (2) parents, the department may develop an employment plan
for each any parent not otherwise required under this chapter
to enter into an employment plan if the parents so requests.
(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) Paid employment,
(including on-the-job training);
(B) 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 (25th) 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, at least twenty (20) hours
shall be one or more of the following activities and the balance shall be in
activities designed to help the parent obtain or maintain unsubsidized
employment or increase the parent's earning potential:
(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.
(D) A supervised
individual or group job search not to exceed four (4) weeks, which meets the
conditions set forth in § 40-5.1-21; or participation in an approved rapid job
placement program as defined in § 40-5.1-20.
(iii) The
following parents shall be deferred from the participation requirement in
paragraph (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 subparagraphs (A)–(C), the parent shall be subject to the work
activity requirements of paragraph (ii).
(iv) Paragraphs
(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 subparagraph (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) (A)
The amount of cash assistance to which an otherwise eligible family is entitled
under the act, shall be reduced by the portion of the family's benefit
attributable to any parent who, without good cause, has failed to enter into an
individual employment plan or has failed to comply with his or her individual
employment plan, as required under this chapter; provided that the reduction
shall be applied during the first eighteen (18) six (6) months,
whether or not consecutive, of such failure or non-compliance by the parent.
(B) The
department shall terminate cash assistance to a family if any parent in the
family has failed, without good cause, to enter into an individual employment
plan or to comply with his or her individual employment plan, for eighteen
(18) six (6) months, whether or not consecutive.
(C) For purposes
of paragraph (v) the benefit reduction for a family size of two (2) shall be
computed utilizing a family size of three (3).
(vi) (A) If the
family's benefit has been reduced in accordance with paragraph (v)(A) for less
than eighteen (18) six (6)
months, whether or not consecutive, due to the parent's failure to enter into
an individual employment plan or failure to comply with the terms of his or her
individual 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 (1) enters into an individual employment plan and
demonstrates compliance with the terms thereof, or (2) demonstrates compliance
with the terms of his or her existing individual employment plan, as such plan
may be amended by agreement of the parent and the department.
(B)
If the family's benefit has been terminated in accordance with paragraph (v)(B)
due to the failure by one or more parents to enter into an individual
employment plan or failure to comply with the terms of his or her individual
employment plan, the family may re-apply for benefits and benefits shall be
restored to the family in the full amount the family is otherwise entitled to
under this chapter beginning on the first of the month following the month in
which all parents in the family who are subject to the employment plan
requirements under this chapter (1) enter into an individual employment plan
and demonstrate compliance with the terms thereof, or (2) demonstrate
compliance with the terms of the parent's individual employment plan in effect
at the time of termination of benefits, as such plan may be amended by agreement
of the parent and the department.
(vii)
Notwithstanding paragraphs (i) and (ii) of this subsection, in the case of a
family consisting of two (2) parents, (except as provided in paragraph (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 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 or more of the following
activities:
(A) Unsubsidized
employment;
(B) Subsidized
private sector employment;
(C) Subsidized
public 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 A supervised individual or group job
search not to exceed four (4) weeks, which meets the conditions set forth in §
40-5.1-21; or participation in an approved rapid job placement program as
defined in § 40-5.1-20;
(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 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 or more of the
following activities:
(A) Unsubsidized
employment;
(B) Subsidized
private sector employment;
(C) Subsidized
public sector employment;
(D) Work
experience if sufficient private sector employment is not available;
(E) On-the-job
training; or
(F) Community
service programs;
(viii) Paragraph
(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 paragraph (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) (E) If, during any month, a parents required to
comply with paragraph (vii) fails, without good cause to do so, the family
shall be deemed for all purposes under this section 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. Tthe
second parent included in the family, unless exempt pursuant to paragraph (iv),
shall be required to comply with paragraphs (i) and (ii) (vii) of this subsection and shall be
subject to the penalties in paragraphs (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).
(ix) 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 paragraphs (i)
and (ii).
(d) Child care. Notwithstanding any other
provision of this section, no single parent, or both parents meeting the
requirements of paragraph (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 are under
supervision of the family court or who require 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.
§ 40-5.1-17. Families eligible for child care assistance. – (a)
(1) 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.
(2) No family shall be
eligible for child care assistance under this chapter if the combined value of
its liquid resources exceeds ten thousand dollars ($10,000). Liquid resources
are defined as any interest(s) in property in the form of cash or other
financial instruments or accounts which are readily convertible to cash or cash
equivalents. These include, but are not limited to, cash, bank, credit union,
or other financial institution savings, checking and money market accounts,
certificates of deposit or other time deposits, stocks, bonds, mutual funds,
and other similar financial instruments or accounts. These do not include
educational savings accounts, plans, or programs; retirement accounts, plans,
or programs; or accounts held jointly with another adult, not including a
spouse, living outside the same household but only to the extent the applicant/recipient family documents
the funds are from sources owned by the other adult living outside the
household, plus the proportionate share of any interest, dividend or capital
gains thereon. The department is authorized to promulgate rules and regulations
to determine the ownership and source of the funds in the joint account.
(3) As a condition of
eligibility for child care assistance under this chapter, the parent or
caretaker relative of the family must consent to and must cooperate with the
department in establishing paternity, and in establishing and/or enforcing
child support and medical support orders for all children in the family in
accordance with title 15 of the general laws, as amended, unless the parent or
caretaker relative is found to have good cause for refusing to comply with the
requirements of this subsection.
(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(d).
(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.
§ 40-5.1-19. Eligibility for medical benefits. – (a)
Every member of any family eligible for cash assistance under this chapter
shall be categorically eligible for medical assistance through the RIte Care or
RIte Share programs, as determined by the department.
(b) If a family
becomes ineligible for cash assistance payments under this act on account of
excess earnings from employment, the family shall continue to be eligible for
medical assistance through the RIte Care or RIte Share program for a period of eighteen
(18) twelve (12) months or until employer paid family health care
coverage begins.
(c) A parent who
becomes ineligible for RIte Care under this section and who is not eligible for
employer paid medical coverage due to a prior existing condition, or is
otherwise uninsurable as determined by the department, shall be entitled to
purchase RIte Care coverage in accordance with contribution rates to be
established by the department.
SECTION 2. This
article shall take effect July 1, 2006.
ARTICLE 33 SUBSTITUTE A
RELATING TO MEDICAL ASSISTANCE --
PRESCRIPTION DRUGS
SECTION 1. The department of human services is hereby
authorized and directed to amend its practices, procedures, regulations and the
Rhode Island state plan for medical assistance (Medicaid) pursuant to title XIX
of the federal Social Security Act [42 U.S.C. § 1396 et seq.] to modify the
prescription drug program:
(1) to establish a
preferred drug list (PDL);
(2) to enter into
supplemental rebate, discount or other agreements with pharmaceutical
companies; and
(3) to negotiate
either state-specific supplemental rebates or to participate in a multi-state
pooling supplemental rebate program.
Determinations of
drugs included on the PDL will be made by the State Department of Human
Services, and a listing of such drugs shall be maintained on a public website.
In making these determinations, the department shall consider the
recommendations of the Medicaid Pharmaceutical and Therapeutics Committee,
whose membership shall include practicing pharmacists and physicians, faculty
members of the University of Rhode Island's College of Pharmacy, and consumers
or consumer representatives. Drugs exempt from the PDL shall include: (1)
antipsychotics; (2) anti-retrovirals; and (3) organ transplant medications.
Physicians will be informed about prior authorization procedures for
medications not on the PDL, and seventy-two (72) hour emergency supplies may be
dispensed if authorizations cannot be obtained.
SECTION 2. The
Department of Human Services is hereby authorized and directed to amend its
regulations and the Rhode Island State Plan for Medical Assistance (Medicaid)
pursuant to title XIX of the federal Social Security Act to modify the
fee-for-service program prescription drug reimbursement formula to establish a
ceiling equivalent to the combination of the manufacturer's wholesale
acquisition cost and a dispensing fee of $3.40 for outpatient prescriptions and
$2.85 for long-term care prescriptions.
SECTION 3. This article shall take effect upon
passage.
ARTICLE 34 SUBSTITUTE A AS AMENDED
RELATING TO INSURANCE -- MANDATED BENEFITS
SECTION 1. Section
27-18-30 of the General Laws in Chapter 27-18 entitled "Accident and
Sickness Insurance Policies" is hereby amended to read as follows:
27-18-30. Health insurance contracts -- Infertility. --
(a) Any health insurance contract, plan, or policy delivered or issued for
delivery or renewed in this state, except contracts providing supplemental
coverage to Medicare or other governmental programs, which includes pregnancy
related benefits, shall provide coverage for medically necessary expenses of
diagnosis and treatment of infertility for women between the ages of
twenty-five (25) and forty (40) years. To the extent that a health
insurance contract provides reimbursement for a test or procedure used in the
diagnosis or treatment of conditions other than infertility, the tests and
procedures shall not be excluded from reimbursement when provided attendant to
the diagnosis and treatment of infertility for women between the ages of
twenty-five (25) and forty (40) years; provided, that a subscriber
co-payment not to exceed twenty percent (20%) may be required for those
programs and/or procedures the sole purpose of which is the treatment of
infertility.
(b) For the purpose of this section,
"infertility" means the condition of an otherwise presumably healthy
married individual who is unable to conceive or produce conception during a
period of one two (2) years.
(c) Notwithstanding the provisions of section
27-18-19 or any other provision to the contrary, this section shall apply to
blanket or group policies of insurance.
(d) The health
insurance contract may limit coverage to a lifetime cap of one hundred thousand
dollars ($100,000).
SECTION 2. Section
27-19-23 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital
Service Corporations" is hereby amended to read as follows:
27-19-23. Coverage for infertility. --
(a) Any nonprofit hospital service contract, plan, or insurance policies
delivered, issued for delivery, or renewed in this state, except contracts
providing supplemental coverage to Medicare or other governmental programs,
which includes pregnancy related benefits shall provide coverage for medically
necessary expenses of diagnosis and treatment of infertility for women
between the ages of twenty-five (25) and forty (40) years. To the extent
that a nonprofit hospital service corporation provides reimbursement for a test
or procedure used in the diagnosis or treatment of conditions other than
infertility, those tests and procedures shall not be excluded from
reimbursement when provided attendant to the diagnosis and treatment of
infertility for women between the ages of twenty-five (25) and forty (40)
years; provided, that a subscriber copayment, not to exceed twenty percent
(20%), may be required for those programs and/or procedures the sole purpose of
which is the treatment of infertility.
(b) For the purposes of this section,
"infertility" means the condition of an otherwise presumably healthy
married individual who is unable to conceive or produce conception during a
period of one two (2) years.
(c) The health
insurance contract may limit coverage to a lifetime cap of one hundred thousand
dollars ($100,000).
SECTION 3. Section
27-20-20 of the General Laws in Chapter 27-20 entitled "Nonprofit Medical
Service Corporations" is hereby amended to read as follows:
27-20-20. Coverage for infertility. --
(a) Any nonprofit medical service contract, plan, or insurance policies
delivered, issued for delivery, or renewed in this state, except contracts
providing supplemental coverage to Medicare or other governmental programs,
which includes pregnancy related benefits shall provide coverage for the
medically necessary expenses of diagnosis and treatment of infertility for
women between the ages of twenty-five (25) and forty (40) years. To the
extent that a nonprofit medical service corporation provides reimbursement for
a test or procedure used in the diagnosis or treatment of conditions other than
infertility, those tests and procedures shall not be excluded from
reimbursement when provided attendant to the diagnosis and treatment of
infertility for women between the ages of twenty-five (25) and forty (40)
years. Provided, that subscriber copayment, not to exceed twenty percent
(20%), may be required for those programs and/or procedures the sole purpose of
which is the treatment of infertility.
(b) For the purposes of this section,
"infertility" means the condition of an otherwise presumably healthy
married individual who is unable to conceive or produce conception during a
period of one two (2) years.
(c) The health
insurance contract may limit coverage to a lifetime cap of one hundred thousand
dollars ($100,000).
SECTION 4. Section
27-41-33 of the General Laws in Chapter 27-41 entitled "Health Maintenance
Organizations" is hereby amended to read as follows:
27-41-33. Coverage for infertility. --
(a) Any health maintenance organization service contract plan or policy
delivered, issued for delivery, or renewed in this state, except a contract
providing supplemental coverage to Medicare or other governmental programs,
which includes pregnancy related benefits, shall provide coverage for medically
necessary expenses of diagnosis and treatment of infertility for women
between the ages of twenty-five (25) and forty (40) years. To the extent
that a health maintenance organization provides reimbursement for a test or
procedure used in the diagnosis or treatment of conditions other than
infertility, those tests and procedures shall not be excluded from reimbursement
when provided attendant to the diagnosis and treatment of infertility for
women between the ages of twenty-five (25) and forty (40) years; provided,
that subscriber copayment, not to exceed twenty percent (20%), may be required
for those programs and/or procedures the sole purpose of which is the treatment
of infertility.
(b) For the purpose of this section,
"infertility" means the condition of an otherwise healthy married
individual who is unable to conceive or produce conception during a period of one
two (2) years.
(c) The health
insurance contract may limit coverage to a lifetime cap of one hundred thousand
dollars ($100,000).
SECTION 5. Chapter
42-12 of the General Laws entitled "Department of Human Services" is
hereby amended by adding thereto the following section:
42-12-29.
Children's health account. – (a) There is created within the general fund
a restricted receipt account to be known as the "children’s health
account". All money in the account shall be utilized by the department of
human services to effectuate coverage for home health services, CEDARR
services, and children's intensive services (CIS). All money received pursuant
to this section shall be deposited in the children’s health account. The
general treasurer is authorized and directed to draw his or her orders on the
account upon receipt of properly authenticated vouchers from the department of
human services.
(b) Beginning in the fiscal year 2007, each
insurer licensed or regulated pursuant to the provisions of chapters 18, 19,
20, and 41 of title 27 shall be assessed a for the purposes set forth in
this section. The department of human services shall make available to each
insurer, upon its request, information regarding the department of human
services child health program and the costs related to the program. Further,
the department of human services shall submit to the general assembly an annual
report on the program and cost related to the program, on or before February 1
of each year. Annual assessments shall be based on direct premiums written in
the year prior to the assessment and shall not include any Medicare Supplement
Policy (as defined in section 27-18-2.1(g)), Medicare managed care, Medicare,
Federal Employees Health Plan or dental premiums. As to accident and sickness
insurance, the direct premium written shall include, but is not limited to,
group, blanket, and individual policies. Those insurers assessed greater than
five hundred thousand dollars ($500,000) for the year shall be assessed four
(4) quarterly payments of twenty-five percent (25%) of their total assessment.
Beginning July 1, 2006, the annual rate of assessment shall be determined by
the director of human services in concurrence with the primary payors, those
being insurers likely to be assessed at greater than five hundred thousand
dollars ($500,000). The director of the department of human services shall
deposit that amount in the "children's health account". The
assessment shall be used solely for the purposes of the "children's health
account" and no other.
(c) Any funds
collected in excess of funds needed to carry out the programs shall be deducted
from the subsequent year's assessment.
(d) The total annual
assessment on all insurers shall be equivalent to the amount paid by the
department of human services for such services, for children insured by such
insurers, but not to exceed five thousand dollars ($5,000) per child covered by
the services.
(e) The children’s
health account shall be exempt from the indirect cost recovery provisions of
section 35-4-27 of the general laws.
SECTION 6. This
article shall take effect upon passage.
ARTICLE 35 SUBSTITUTE A
RELATING TO MEDICAL ASSISTANCE --
COMMUNITY HEALTH CENTERS
SECTION 1. Section 40-16-1 of the General Laws in Chapter
40-16 entitled “Community Health Centers” is hereby repealed.
§ 40-16-1. Funding of community health center. – (a)(1)
For the fiscal year ending June 30, 1989, and for each year thereafter the state
shall contribute a share of the costs associated with community health centers
as provided in this chapter. Subject to the provisions of subsection (i), the
state's share shall be calculated by multiplying the total number of medical
patients treated at the health centers listed below by the sum of thirteen
dollars and thirty-four cents ($13.34) for each patient; provided, that
multiple visits or treatment shall be counted only once, by the state
department of human services for grants to the following health centers:
(2) Providence
Community Health Centers, Inc., Thundermist health associates, inc., Blackstone
Valley community health care inc., Wood River health services, Family health
services, East Bay Family Health Care, new visions for Newport County, tri-town
health center, Dr. John A. Ferris health center, Chad Brown health center,
health center of South County, Bayside family healthcare, Northwest health
center and Block Island health services inc.; that sum shall be allocated by
the department of human services as follows:
(i) One-half (1/2) of
the state share in each fiscal year to be divided equally among the fourteen
(14) health centers listed in subsection (a)(2); and
(ii) One-half (1/2) of
the state share to be allocated among the health centers listed in subsection
(a)(2) based on a per capita rate multiplied by the number of medical patients
each center treated in the previous fiscal year; that per capita rate to be
computed by dividing this half of the state share by the total number of medical
patients treated by all aforesaid health centers in the previous fiscal year;
each patient notwithstanding multiple visits or treatment, shall be counted
once only.
(b) If the sum
appropriated by the state for any fiscal year for making payments to the health
centers listed in subsection (a)(2) under this program is not sufficient to pay
in full the total amount which all the health centers listed in subsection
(a)(2) are entitled to receive for that fiscal year, the maximum entitlement
which all the health centers listed in subsection (a)(2) shall receive for such
fiscal year shall be ratably reduced.
(c) The appropriation
of six hundred seventy-three thousand five hundred dollars ($673,500) for the
fiscal year ending June 30, 1988, for the state department of human services
for distribution to the health centers listed above shall be allocated as
follows: three hundred thirty-six thousand seven hundred fifty dollars
($336,750) to be divided, equally, among the fourteen (14) health centers cited
and three hundred thirty-six thousand seven hundred fifty dollars ($336,750) to
be allocated among the health centers on a per capita rate of ten dollars
($10.00) for each patient.
(d) If the sum
appropriated by the state for any fiscal year exceeds the amount to be
distributed based upon the provisions of this section, the excess shall be
distributed equally among the fourteen (14) designated health centers.
(e) In December of
each year, the department of human services shall forward to the chairperson of
the house finance committee and to the chairperson of the senate finance
committee the proposed unduplicated per patient rate for the next fiscal year.
(f) In the event that
a designated grantee shall cease to operate, then its share shall revert to the
general fund.
(g) For purposes of
this section, "reference year" shall mean the second fiscal year
immediately proceeding the fiscal year of appropriation.
(h) For purposes of
this section "unduplicated medical patient" shall mean an individual
who receives service at a community health center. An individual can be counted
only once and multiple visits by and/or multiple treatments of the individual
shall not be counted.
(i) For as long as the
United States department of health and human services, health care financing
administration project No. 11-W-00004/1-01 entitled "RIte Care"
remains in effect and the state is paying health maintenance organizations to
care for RIte Care enrollees, the state's annual share of costs associated with
community health centers to be paid under this chapter shall be an amount no
less than $718,015, which amount shall be appropriated to the Rhode Island
department of human services. The department of human services shall obtain
federal matching funds for the state's annual share to the fullest extent
permitted under Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq.
(2) In order to
encourage federally qualified health centers and rural health centers to
participate in RIte Care, for as long as RIte Care remains in effect, all funds
appropriated under this chapter and all federal funds matched thereto, shall be
paid by the department of human services, without deduction for administrative
or other expenses, to Rhode Island health center association, inc., provided that
a majority of the health centers referred to in subsection (a) constitute a
majority of the members of Rhode Island health center association, inc., and
continue to participate as primary care providers in the RIte Care program of
the health centers referred to in subsection (a). Such amounts shall be paid
monthly to Rhode Island health center association, inc. by the department of
human services at the rate of fifteen dollars ($15.00) per member per month for
each RIte Care member (regardless of health plan) selecting a federally
qualified health center or rural health center, as those terms are defined in
42 U.S.C. § 1395x (or any successor statute), as the member's primary care
provider.
(3) In no event shall
the amounts payable under this subsection exceed five million five hundred
thousand dollars ($5,500,000) per fiscal year. In any fiscal year, if any
portion of the state share appropriated in this subsection is not used to
obtain federal matching funds and pay the amounts due under subsection (i)(2),
the unused portion of the appropriation shall be distributed by the department
of human services equally among the fourteen (14) health centers named in
subsection (a). This subsection shall be inapplicable and the remaining
provisions of this chapter shall apply if at any time a majority of the health
centers referred to in subsection (a) do not constitute a majority of the
members of Rhode Island health center association, inc. and do not participate
as primary care providers in the RIte Care program.
(4) Rhode Island
health center association, inc., shall be entitled to disburse the funds paid
under this subsection to federally qualified health centers, rural health
centers, other health centers or other entities in the manner it considers
necessary or appropriate to encourage maximal participation of federally
qualified health centers and rural health centers in RIte Care.
(5) The department of
human services shall require each qualifying center or entity receiving funds
under this chapter to: (a) file uniform cost and utilization reports with the
department beginning January 1, 2000; and (b) to certify to the department that
it will provide, beginning July 1, 2000, a proportional share of the operating
expenses of the management service organization, CHC Enterprise, Inc., formed
by qualifying centers or entities.
(j) To support the
ability of federally qualified health centers and rural health centers to
provide high quality medical care to patients, reimbursement under the medical
assistance program for medically necessary services which are paid on a fee for
service basis shall continue to be paid at one hundred percent (100%) of the
reasonable cost.
SECTION 2. Chapter
40-8 of the General Laws entitled “Medical Assistance” is hereby amended by
adding thereto the following section:
§ 40-8-26. Community Health
Centers.-- (a)
For the purposes of this section the term Community Health Centers refers to
Federally Qualified Health Centers and Rural Health Centers.
(b) To support the ability of community health centers to
provide high quality medical care to patients, the department of human services
shall adopt and implement a methodology for determining a Medicaid per visit
reimbursement for community health centers which is compliant with the
prospective payment system provided for in the Medicare, Medicaid and SCHIP
Benefits Improvement and Protection Act of 2001. The following principles are
to assure that the prospective payment rate determination methodology is part
of the department of human services’ overall value purchasing approach:
(c) The rate determination methodology will (i) fairly
recognize the reasonable costs of providing services. Recognized reasonable
costs will be those appropriate for the organization, management and direct
provision of services and (ii) provide assurances to the department of human
services that services are provided in an effective and efficient manner,
consistent with industry standards. Except
for demonstrated cause and at the discretion of the department of human
services, the maximum reimbursement rate for a service (e.g. medical, dental)
provided by an individual community health center shall not exceed one hundred
twenty-five percent (125%) of the median rate for all community health centers
within Rhode Island.
(d) Community health centers will cooperate fully and
timely with reporting requirements established by the department.
(e) Reimbursement rates established through this
methodology shall be incorporated into the PPS reconciliation for services
provided to Medicaid eligible persons who are enrolled in a health plan on the
date of service. Monthly payments by
DHS related to PPS for persons enrolled in a health plan shall be made directly
to the community health centers.
SECTION 3. This
article shall take effect upon passage.
ARTICLE 36 SUBSTITUTE A
Relating To Dredging Fees
SECTION 1. Chapter
46-23 of the General Laws entitled
"Coastal Resources Management Council" is hereby amended by
adding thereto the following sections:
46-23-18.5.
Fees for disposal. – (a) The council is
authorized to impose a fee of not less than eleven dollars and sixty-five cents
($11.65) per cubic yard for the disposal of dredge materials at the sites
established by the council pursuant to section 46-23-18.3, with eleven dollars
and sixty-five cents ($11.65) being deposited into the general fund. The amount
of the fee established by the council pursuant to the section shall be reviewed
by the council on an annual basis and revised as the council deems necessary,
but in no event shall the fee be set at an amount less than eleven dollars and
sixty-five cents ($11.65) per cubic yard of material.
46-23-18.6.
Coastal Resources Management Council Dredge Fund. – There is hereby created a separate
fund to be held by the coastal resources management council to be known as the
dredge fund. Any amount charged above the eleven dollars and sixty-five cents
($11.65) must be deposited into the fund and shall not be deposited into the general
fund of the state, but shall be kept by the general treasurer of the state in a
separate fund for the coastal resources management council, and shall be paid
out by the treasurer upon the order of the council, without the necessity of
appropriation or re-appropriation by the general assembly. Funds must be used
to create additional dredging and disposal
options.
SECTION 2. Section
35-4-1 of the General Laws in Chapter 35-4 entitled "State Funds" is
hereby amended to read as follows:
35-4-1. Revenue credited to general fund -- Exceptions -- Deposits.
-- All receipts and revenue of the state shall be
credited by the general treasurer to the general fund of the state with the
exception of receipts or revenue pertaining to the following funds:
(1) Permanent school fund;
(2) Touro Jewish synagogue fund;
(3) Land-grant fund of 1862;
(4) Veterans' home fund;
(5) United States cooperative vocational
education fund;
(6) United States industrial rehabilitation
fund;
(7) Forestry cooperative fund;
(8) State sinking fund;
(9) Fire insurance fund;
(10) Fund for relief of firemen;
(11) Fund for relief of policemen;
(12) Coastal Resources
Management Council Dredge Fund;
(12) (13) Funds received from
the federal government in accordance with the provisions of parts 1 and 2 of
title V of the Social Security Act, 42 U.S.C. section 501 et seq.;
(13) (14) Any other funds that
may by federal law or regulation, or by enactment of the general assembly, be
allocated to a specific fund, provided, that nothing contained in this section
shall amend or modify: section 19-3.1-9, which pertains to securities deposited
by trust companies and national banks having trust departments; section
19-5-15, which pertains to credit unions; nor section 27-1-5, which pertains to
deposits of securities by insurance companies with the general treasurer; and
(14) (15) Funds received until
June 30, 2002, from the northeast dairy compact commission, which was enacted
into law in Rhode Island by P.L. 1993, ch. 106, section 2-24-1 et seq. These
funds are to be passed from the northeast dairy compact commission through the
department of elementary and secondary education to reimburse school districts
for school milk that is exempted from the federal over-order price regulation
obligation at 7 CFR 1301. These funds are to be placed in a restricted receipt
account established within the department of elementary and secondary education
separate from all other accounts within the department of elementary and
secondary education. All funds deposited in the restricted receipt account
established in this section shall be disbursed prior to June 30, 2002.
SECTION 3. This article
shall take effect as of July 1, 2006.
ARTICLE 37 SUBSTITUTE A AS AMENDED
JOINT
RESOLUTION
TO APPROVE
AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF AMENDMENT TO THE
CONSTITUTION OF THE STATE (LIMITATIONS ON STATE SPENDING)
WHEREAS, The budget reserve account, also known as "the rainy
day fund", was made part of the state constitution through voter
referendum in 1992 to ensure adequate cash and budget reserves for
unanticipated revenue shortfalls; and
WHEREAS, The constitution limits appropriations for any fiscal
year to ninety-eight percent of estimated revenues and requires the two percent
difference to be deposited into the budget reserve account until the account
reaches three percent of said revenues; and
WHEREAS, The constitution further requires that excess funds
available after the budget reserve account has been fully funded shall be transferred
to the state capital bond fund for debt reduction, debt service, or capital
projects; and
WHEREAS, In recent years state capital bond funds have been used
increasingly to pay debt service, with the result that the budget reserve
account cannot be used without jeopardizing the state's ability to meet its
debt service obligations; and
WHEREAS, Experience since passage of the 1992 constitutional
amendment has demonstrated that the three percent cap results in insufficient
funding of the reserve account; and
WHEREAS, The viability of the reserve account will be restored by
limiting the state capital bond fund to capital projects, limiting
appropriations from ninety-eight percent
of estimated revenues to ninety-seven percent of estimated revenues, and
allowing the cap on the budget reserve account to be expanded from three
percent to five percent of revenues; and, now, therefore be it
RESOLVED, That a majority of all members elected to each house of
the general assembly voting therefore, an amendment to section 16 of Article IX
of the Constitution of the state shall be proposed to the qualified electors of
the state for their approval in accordance with the provisions of Article XIV
of the Constitution, and upon such approval, the amended section 16 of Article
IX, set forth below, shall be included in the Constitution; and that said
proposition of amendment shall be submitted to the electors for their approval
or rejection at the next statewide general election, and said proposition of
amendment shall appear on the ballots and shall be preceded by the following
explanation and space to "approve" or "reject", all of
which shall be in substantially the following form:
CONSTITUTIONAL AMENDMENT – BUDGET
RESERVE ACCOUNT
Approval of the amendment set forth
below will increase the funding and restore the viability of the budget reserve
account, also known as "the rainy day fund", by limiting the amount
of estimated revenues that can be appropriated, increasing the cap on the
reserve account, and limiting the use of capital funds to capital projects.
APPROVE_________
REJECT___________
ARTICLE IX
Section 16. Limitation on
state spending [Effective from July 1, 2007 until July 1, 2012].
(a) No appropriation, supplemental appropriation or budget act
shall cause the aggregate state general revenue appropriations enacted in any
given fiscal year to exceed ninety-eight percent (98%) of the estimated state
general revenues for such fiscal year from all sources, including estimated
unencumbered general revenues to the new fiscal year remaining at the end of
the previous fiscal year. Estimated
unencumbered general revenues are calculated by taking the estimated general
revenue cash balance at the end of the fiscal year less estimated revenue
anticipation bonds or notes, estimated general revenue encumbrances, estimated
continuing general revenue appropriations and the amount of the budget reserve
account at the end of said fiscal year.
(b) The amount between the applicable percentage in (a) and one
hundred percent (100%) of the estimated state general revenue for any fiscal
year as estimated in accordance with subsection (a) of this section shall be
appropriated in any given fiscal year into the budget reserve account;
provided, however, that no such payment will be made which would increase the
total of the budget reserve account to more than three percent (3%) of only the
estimated state general revenues as set by subsection (a) of this section. In the event that the payment to be made
into the budget reserve account would increase the amount in said account to
more than three percent (3%) of estimated state general revenues that said
amount shall be transferred to the state bond capitol Rhode Island
Capital Plan fund to be used solely for reduction of state indebtedness,
payment of debt service, and/or funding of capitol capital projects.
(c) Within forty-five (45) days after the close of any fiscal
year, all unencumbered general revenue in the year end surplus account from the
said fiscal year shall be transferred to the general fund.
Section 16. Limitation on
state spending [Effective July 1, 2012].
(a) No appropriation, supplemental appropriation or budget act
shall cause the aggregate state general revenue appropriations enacted in any
given fiscal year to exceed ninety-eight percent (98%) ninety-seven
percent (97%) of the estimated state general revenues for such fiscal year
from all sources, including estimated unencumbered general revenues to the new
fiscal year remaining at the end of the previous fiscal year. Estimated unencumbered general revenues are
calculated by taking the estimated general revenue cash balance at the end of
the fiscal year less estimated revenue anticipation bonds or notes, estimated
general revenue encumbrances, estimated continuing general revenue
appropriations and the amount of the budget reserve account at the end of said
fiscal year.
(b) The amount between the applicable percentage in (a) and one
hundred percent (100%) of the estimated state general revenue for any fiscal
year as estimated in accordance with subsection (a) of this section shall be
appropriated in any given fiscal year into the budget reserve account;
provided, however, that no such payment will be made which would increase the
total of the budget reserve account to more than three percent (3%) five
percent (5%) of only the estimated state general revenues as set by
subsection (a) of this section. In the
event that the payment to be made into the budget reserve account would
increase the amount in said account to more than three percent (3%) five
percent (5%) of estimated state general revenues that said amount shall be
transferred to the state bond capitol Rhode Island Capital Plan
fund to be used solely for reduction of state indebtedness, payment of debt
service, and/or funding of capitol capital projects.
(c) Within forty-five (45) days after the close of any fiscal
year, all unencumbered general revenue in the year end surplus account from the
said fiscal year shall be transferred to the general fund.
RESOLVED, That the said proposition of amendment shall be
submitted to the electors for their approval or rejection at the next statewide
general election. The voting places in the several cities and towns shall be
kept open during the hours required by law for voting therein; and be it
further
RESOLVED, That the secretary of state shall cause said proposition
of amendment to be published as a part of this resolution in the newspapers of
the state prior to the date of the said meetings of the said electors; and the
said proposition shall be inserted in the warrants or notices to be issued
previous to said meetings of the electors for the purpose of warning the town,
ward, or district meetings, and said proposition shall be read by the town,
ward or district clerks to the electors in the town, ward, or district meetings
to be held as aforesaid; and be it further
RESOLVED, That the town, ward, or district meetings to be held
aforesaid shall be warned, and the list of voters shall be canvassed and made
up, and the said town, ward, or district meetings shall be conducted in the
same manner as now provided by law for the town, ward, and district meetings
for the statewide general election.
This article shall take effect upon passage.
ARTICLE 38 SUBSTITUTE A AS AMENDED
Relating To STATE AFFAIRS AND GOVERNMENT
SECTION 1. Title 42 of
the General Laws entitled "State Affairs and Government" is hereby
amended by adding thereto the following chapter:
CHAPTER 143
DEPARTMENT OF REVENUE
42-143-1. Department
of revenue. – (a)
There is hereby established within the executive branch of state government a
department of revenue.
(b) The head of the department shall be the director of revenue,
who shall be appointed by the governor, with the advice and consent of the
senate, and shall serve at the pleasure of the governor.
(c) The department shall contain the division of taxation (chapter
44-1), the division of motor vehicles (chapter 32-2), the division of state
lottery (chapter 42-61), the office of revenue analysis (chapter 42-143), and the division of property valuation (chapter 42-143).
42-143-2. Powers
and duties of the department. – The department of revenue shall have the following powers and
duties:
(a) To operate a division of taxation.
(b) To operate a division of motor vehicles;
(c) To operate a division of state lottery;
(d) To operate an office of revenue analysis; and
(e) To operate a division of property valuation.
42-143-3. Office
of revenue analysis. – (a)
There is hereby established within the department of revenue an office of
revenue analysis. The head of the office shall be the chief of revenue
analysis, who shall hold office for the term of five (5) years from the time of
his or her appointment and until his or her successor is duly appointed and
qualified. The chief shall be eligible for reappointment, and shall not engage
in any other occupation. The head of the office shall have an advanced degree
in economics or statistics;
(b) The director of revenue shall grant to the chief of revenue
analysis reasonable access to appropriate expert staff and access to taxation
data sufficient to carry out the duties of the office;
(c) The division shall analyze, evaluate, and appraise the tax
system of the state, and make recommendations for its revision in accordance with
the best interests of the economy of the state;
(d) The division shall be responsible for preparing the tax
expenditures report as required in section 44-48.1-1;
(e) The division shall be responsible for preparing cost benefit
analyses of all tax expenditures.
42-143-4.
Division of property valuation. – (a) There is hereby established within the department of
revenue a division of property valuation. The head of the office shall be the
chief of property valuation.
(b) The division of
property valuation shall have the following duties:
(i) Provide assistance and guidance to municipalities in complying
with state law;
(ii) To encourage cooperation between municipalities and the state
in calculating, evaluating and distributing state aid;
(iii)_ To maintain a data center of information of use to
municipalities;
(iv) To maintain and compute financial and equalized property
value information for the benefit of municipalities and public policy decision
makers;
(v) To encourage and assure compliance with state laws and
policies relating to municipalities especially in the areas of public
disclosure, tax levies, financial reporting, and property tax issues;
(vi) To encourage cooperation between municipalities and the state
by distributing information and by providing technical assistance to
municipalities;
(vii) To give guidance to public decision makers on the equitable
distribution of state aid to municipalities;
(viii) To provide technical assistance for property tax
administration.
SECTION 2. Section
16-3-19 of the General Laws in Chapter 16-3 entitled "Establishment of
Regional School Districts" is hereby amended to read as follows:
16-3-19. Costs of operation -- Payment of debts -- Apportionment among
district members. -- (a) (1) The cost of the operation of a
regional school district and the cost of payment of an indebtedness of the
regional school district authorized by the regional school district financial
meeting or regional representatives under the provisions of section 16-3-14
shall be borne by the member towns and/or cities that comprise the regional
school district in that proportion that the equalized weighted assessed
valuation of the property of the towns and cities that lie within the regional
school district as determined from the latest figure certified by the
department of administration revenue bears to the total equalized
weighted assessed valuation of the total property of the regional school
district, or, if the figures from the department of administration revenue
are not available, the latest figures on equalized weighted assessed valuation
used by the state department of elementary and secondary education in
determining equalization aid under chapter 7 of this title shall be used.
(2) However, the apportionment of the cost of
operating a regional school district and the cost of paying indebtedness may be
determined by the members towns and/or cities that comprise the regional school
district in a manner approved by a majority vote within each member community.
(b) On or before March 1 in each year the
treasurer of the regional school district shall determine the proportionate
share of the cost of the operation and the cost of the capital debt service
payments of the regional school district for the next regional school district
fiscal year to be borne by the towns and/or cities that comprise the regional
school district in the manner prescribed in subsection (a) of this section, and
he or she shall notify the town or city treasurer of the towns and/or cities
comprising the regional school district of the total amount of money necessary
to be raised from the regional school district taxpayers of each town or city
for the operation of the regional school district for the fiscal year
following.
SECTION 3. Sections 16-7-16,
16-7-21 and 16-7-36 of the General Laws in Chapter 16-7 entitled
"Foundation Level School Support" are hereby amended to read as
follows:
16-7-16. Definitions. -- The following words
and phrases used in sections 16-7-15 to 16-7-34 have the following meanings:
(1) "Adjusted equalized weighted
assessed valuation" means the equalized weighted assessed valuation of a
community as determined by the department of administration revenue
or as apportioned by the commissioner pursuant to the provisions of section
16-7-21;
(2) "Average daily membership"
means the average number of pupils in a community during a school year as
determined pursuant to the provisions of section 16-7-22, less any students who
are served in a program operated by the state and which program is part of the
operations aid formula;
(3) "Basic program" means the cost
of education of resident pupils in grades twelve (12) and below in average
daily membership for the reference year as determined by the mandated minimum
program level plus all transportation costs including school bus monitors;
(4) "Certified personnel" means all
persons who are required to hold certificates issued by or under the authority
of the board of regents for elementary and secondary education;
(5) "Community" means any city,
town, or regional school district established pursuant to law and/or the
department of children, youth, and families; provided, however, that the
department of children, youth, and families shall not have those administrative
responsibilities and obligations as set forth in chapter 2 of this title;
provided, however, that the member towns of the Chariho regional high school
district, created by P.L. 1958, chapter 55 as amended, shall constitute
separate and individual communities for the purpose of determining and
distributing the foundation level school support including state aid for
noncapital excess expenses for the special education of children with
disabilities provided for in section 16-24-6 for all grades financed in whole
or in part by the towns irrespective of any regionalization and any school
operated by the state department of elementary and secondary education;
(6) "Department of children, youth, and
families" means that department created pursuant to chapter 72 of title
42. For purposes of this section, sections 16-7-20, 16-24-2, and
42-72-5(b)(22), "children" means those children who are placed,
assigned, or otherwise accommodated for residence by the department of
children, youth, and families in a state operated or supported community
residence licensed by a state agency and the residence operates an educational
program approved by the department of elementary and secondary education;
(7) "Equalized weighted assessed
valuation" means the equalized weighted assessed valuation for a community
as determined by the department of administration division of
property valuation pursuant to the provisions of section 16-7-21;
(8) "Full time equivalency
students" means the time spent in a particular activity divided by the
amount of time in a normal school day;
(9) "Incentive entitlement" means
the sum payable to a local school district under the formula used;
(10) "Mandated minimum program
level" means the amount that shall be spent by a community for every pupil
in average daily membership as determined pursuant to the provisions of section
16-7-18;
(11) "Reference year" means the
next year prior to the school year immediately preceding that in which the aid
is to be paid; and
(12) "Regularly employed" and
"service" as applied to certified personnel have the same meaning as
defined in chapter 16 of this title.
16-7-21. Determination and adjustment of equalized weighted assessed
valuation. -- On or before August 1 of each year the
division of property valuation within the department of administration
revenue, shall determine and certify to the commissioner of elementary
and secondary education the equalized weighted assessed valuation for each city
and town in the following manner:
(1) The total assessed valuations of real and
tangible personal property for each city and town as of December 31 of the
third preceding calendar year shall be weighted by bringing the valuation to
the true and market value of real and tangible personal property. The total
assessed valuations of real and tangible personal property for all cities and
towns shall be applied to the true and market valuations of the property for
all cities and towns and the resulting percentage shall determine the average
throughout the state. This percentage applied to the sum of the total true and
market value of real and tangible personal property of each city and town shall
be the equalized weighted assessed valuation of each city and town.
(2) The equalized weighted assessed valuation
for each city and town shall be allocated to the particular city or town, and
in the case of a regional school district which does not service all grades,
except the Chariho regional high school district, the commissioner of
elementary and secondary education shall apportion that proportion of the
equalized weighted assessed valuation of the member cities or towns which the
average daily membership serviced by the regional school district bears to the
total average daily membership, and the equalized weighted assessed valuation
of the member cities and towns shall be appropriately reduced.
(3) The equalized weighted assessed valuation
for each community as allocated or apportioned in accordance with subdivision
(2) of this section shall be adjusted by the ratio which the median family
income of a city or town bears to the statewide median family income as
reported in the latest available federal census data. The total state adjusted
equalized weighted assessed valuation shall be the same as the total state
equalized weighted assessed valuation.
16-7-36. Definitions. -- The following words
and phrases used in sections 16-7-35 to 16-7-47 have the following meanings:
(1) "Adjusted equalized weighted
assessed valuation" means the equalized weighted assessed valuation for a
community as determined by the division of property valuation within the
department of administration revenue in accordance with section
16-7-21; provided, however, that in the case of a regional school district the
commissioner of elementary and secondary education shall apportion the adjusted
equalized weighted assessed valuation of the member cities or towns among the
regional school district and the member cities or towns according to the
proportion that the number of pupils of the regional school district bears to
the number of pupils of the member cities or towns.
(2) "Approved project" means a
project which has complied with the administrative regulations governing
sections 16-7-35 through 16-7-47, and which has been authorized to receive
state school housing reimbursement by the commissioner of elementary and
secondary education.
(3) "Community" means any city,
town, or regional school district established pursuant to law; provided,
however, that the member towns of the Chariho regional high school district,
created by P.L. 1958, ch. 55, as amended, shall constitute separate and
individual communities for the purposes of distributing the foundation level
school support for school housing for all grades financed in whole or in part
by the towns irrespective of any regionalization.
(4) "Reference year" means the year
next prior to the school year immediately preceding that in which aid is to be
paid.
SECTION 4. Section
31-2-1 of the General Laws in Chapter 31-2 entitled "Division of Motor
Vehicles" is hereby amended to read as follows:
31-2-1. Establishment -- Duties -- Chief of division. --
Within the department of administration revenue there shall be a
division of motor vehicles. The division will be responsible for activities
assigned to it by law, including, but not limited to, motor vehicle
registration, testing and licensing of motor vehicle operators, inspection of
motor vehicles, and enforcement of laws relating to the issuance, suspension
and revocation of motor vehicle registrations and drivers' licenses. The
division shall administer the financial responsibility law. The chief of the
division shall use the title and designation "registrar" or
"administrator" on all licenses, registrations, orders of
suspensions, financial responsibility notices or orders, or any other official
documents issued or promulgated by the division. He or she shall exercise all
powers and duties prescribed by chapters 1 -- 27 of this title and shall
supervise and direct the promotion of highway traffic safety.
SECTION 5. Section
35-1-2 of the General Laws in Chapter 35-1 entitled "Fiscal Functions of
Department of Administration" is hereby repealed.
35-1-2. Division of research. --
Within the department of administration there shall be a division of research for
the purpose of carrying on a continuing program of research in the fields of
governmental and financial administration and taxation. All agencies of the
state government shall furnish to this division all data which may be required
in carrying out its studies.
SECTION 6. Section
36-4-2 of the General Laws in Chapter 36-4 entitled "Merit System" is
hereby amended to read as follows:
36-4-2. Positions in unclassified service. --
The classified service shall comprise all positions in the state service now
existing or hereinafter established, except the following specific positions
which with other positions heretofore or hereinafter specifically exempted by
legislative act shall constitute the unclassified service:
(1) Officers and legislators elected by
popular vote and persons appointed to fill vacancies in elective offices.
(2) Employees of both houses of the general
assembly.
(3) Officers, secretaries, and employees of
the office of the governor, office of the lieutenant governor, department of
state, department of the attorney general, and the treasury department.
(4) Members of boards and commissions
appointed by the governor, members of the state board of elections and the
appointees of the board, members of the commission for human rights and the
employees of the commission, and directors of departments.
(5) The following specific offices:
(i) In the department of administration:
director, chief information officer;
(ii) In the department of business
regulation: director;
(iii) In the department of elementary and
secondary education: commissioner of elementary and secondary education;
(iv) In the department of higher education:
commissioner of higher education;
(v) In the department of health: director;
(vi) In the department of labor and training:
director, administrative assistant, administrator of the labor board and legal
counsel to the labor board;
(vii) In the department of environmental
management: director;
(viii) In the department of transportation:
director;
(ix) In the department of human services:
director;
(x) In the state properties committee:
secretary;
(xi) In the workers' compensation court:
judges, administrator, deputy administrator, clerk, assistant clerk, clerk
secretary;
(xii) In the department of elderly affairs:
director;
(xiii) In the department of mental health,
retardation, and hospitals: director;
(xiv) In the department of corrections:
director, assistant director (institutions/operations), assistant director
(rehabilitative services), assistant director (administration), and wardens;
(xv) In the department of children, youth and
families: director, one assistant director, one associate director, and one
executive director;
(xvi) In the public utilities commission:
public utilities administrator;
(xvii) In the water resources board: general
manager;
(xviii) In the human resources investment
council: executive director.
(6) Chief of the hoisting engineers,
licensing division, and his or her employees; executive director of the
veterans memorial building and his or her clerical employees.
(7) One confidential stenographic secretary
for each director of a department and each board and commission appointed by
the governor.
(8) Special counsel, special prosecutors,
regular and special assistants appointed by the attorney general, the public
defender and employees of his or her office, and members of the Rhode Island
bar occupying a position in the state service as legal counsel to any
appointing authority.
(9) The academic and/or commercial teaching
staffs of all state institution schools, with the exception of those
institutions under the jurisdiction of the board of regents for elementary and
secondary education and the board of governors for higher education.
(10) Members of the military or naval forces,
when entering or while engaged in the military or naval service.
(11) Judges, referees, receivers, clerks,
assistant clerks, and clerical assistants of the supreme, superior, family, and
district courts, the traffic tribunal, jurors and any persons appointed by any
court.
(12) Election officials and employees.
(13) Administrator, executive high sheriff,
sheriffs, chief deputy sheriffs, deputy sheriffs, and other employees of the
sheriff's division within the department of administration and security
officers of the traffic tribunal.
(14) Patient or inmate help in state
charitable, penal, and correctional institutions and religious instructors of
these institutions and student nurses in training, residents in psychiatry in
training, and clinical clerks in temporary training at the institute of mental
health within the state of Rhode Island medical center.
(15) (i) Persons employed to make or conduct
a temporary and special inquiry, investigation, project or examination on
behalf of the legislature or a committee therefor, or on behalf of any other
agency of the state if the inclusion of these persons in the unclassified
service is approved by the personnel administrator. The personnel administrator
shall notify the house fiscal advisor and the senate fiscal advisor whenever he
or she approves the inclusion of a person in the unclassified service.
(ii) The duration of the appointment of a
person, other than the persons enumerated in this section, shall not exceed
ninety (90) days or until presented to the department of administration. The
department of administration may extend the appointment another ninety (90) days.
In no event shall the appointment extend beyond one hundred eighty (180) days.
(16) Members of the division of state police.
(17) Executive secretary of the Blackstone
Valley district commission.
(18) Artist and curator of state owned art
objects.
(19) Mental health advocate.
(20) Child advocate.
(21) The position of aquaculture coordinator
and dredge coordinator within the coastal resources management council.
(22) Employees of the office of the health
insurance commissioner.
(23) In the department
of revenue: the director, secretary, attorney.
SECTION 7. Sections
42-6-1, 42-6-2 and 42-6-3 of the General Laws in Chapter 42-6 entitled
"Departments of State Government" are hereby amended to read as
follows:
42-6-1. Enumeration of departments. --
All the administrative powers and duties heretofore vested by law in the
several state departments, boards, divisions, bureaus, commissions, and other
agencies shall be vested in the following departments and other agencies which
are specified in this title:
(a) Executive department (chapter 7 of this
title);
(b) Department of state (chapter 8 of this
title);
(c) Department of the attorney general
(chapter 9 of this title);
(d) Treasury department (chapter 10 of this
title);
(e) Department of administration (chapter 11
of this title);
(f) Department of business regulation
(chapter 14 of this title);
(g) Department of children, youth, and
families (chapter 72 of this title);
(h) Department of corrections (chapter 56 of
this title);
(i) Department of elderly affairs (chapter 66
of this title);
(j) Department of elementary and secondary
education (chapter 60 of title 16);
(k) [Deleted by P.L. 1996, ch. 226, section
5.]
(l) Department of environmental management
(chapter 17.1 of this title);
(m) Department of health (chapter 18 of this
title);
(n) Board of governors for higher education
(chapter 59 of title 16);
(o) Department of labor and training (chapter
16.1 of this title);
(p) Department of mental health, retardation,
and hospitals (chapter 12.1 of this title);
(q) Department of human services (chapter 12
of this title);
(r) [Deleted by P.L. 1996, ch. 100, art. 29,
section 8.]
(s) Department of transportation (chapter 13
of this title);
(t) Public utilities commission (chapter 14.3
of this title).
(u) [Deleted by P.L. 1995, ch. 370, art. 14,
section 1.]
(v) Department of
revenue (chapter 143
of title 44).
42-6-2. Heads of departments. -- The governor,
secretary of state, attorney general, and general treasurer, hereinafter called
general officers, shall each be in charge of a department. There shall also be
a director of administration, a director of revenue, a director of human
services, a director of mental health, retardation, and hospitals, a director
of transportation, a director of business regulation, a director of labor and
training, a director of environmental management, a director for children,
youth, and families, a director of elderly affairs, and director of
corrections. Each director shall hold office at the pleasure of the governor
and he or she shall serve until his or her successor is duly appointed and
qualified unless the director is removed from office by special order of the
governor.
42-6-3. Appointment of directors. --
(a) At the January session following his or her election to office, the
governor shall appoint a director of administration, a director of revenue,
a director of human services, a director of mental health, retardation, and
hospitals, a director of transportation, a director of business regulation, a
director of labor and training, a director of environmental management, a
director for children, youth and families, a director of elderly affairs, and a
director of corrections. The governor shall, in all cases of appointment of a
director while the senate is in session, notify the senate of his or her
appointment and the senate shall, within sixty (60) legislative days after
receipt of the notice, act upon the appointment. If the senate shall, within
sixty (60) legislative days, vote to disapprove the appointment it shall so
notify the governor, who shall forthwith appoint and notify the senate of the
appointment of a different person as director and so on in like manner until
the senate shall fail to so vote disapproval of the governor's appointment. If
the senate shall fail, for sixty (60) legislative days next after notice, to
act upon any appointment of which it has been notified by the governor, the
person so appointed shall be the director. The governor may withdraw any
appointment of which he or she has given notice to the senate, at any time
within sixty (60) legislative days thereafter and before action has been taken
thereon by the senate.
(b) Except as expressly provided in section
42-6-9, no director of any department shall be appointed or employed pursuant
to any contract of employment for a period of time greater than the remainder
of the governor's current term of office. Any contract entered into in
violation of this section after [July 1, 1994]is hereby declared null and void.
SECTION 8. Sections
42-11-2 and 42-11-12 of the General Laws in Chapter 42-11 entitled
"Department of Administration" are hereby amended to read as follows:
42-11-2. Powers and duties of department. --
The department of administration shall have the following powers and duties:
(a) To prepare a budget for the several state
departments and agencies, subject to the direction and supervision of the
governor;
(b) To administer the budget for all state
departments and agencies, except as specifically exempted by law;
(c) To devise, formulate, promulgate,
supervise, and control accounting systems, procedures, and methods for the
state departments and agencies, conforming to such accounting standards and
methods as are prescribed by law;
(d) To purchase or to contract for the
supplies, materials, articles, equipment, printing, and services needed by
state departments and agencies, except as specifically exempted by law;
(e) To prescribe standard specifications for
those purchases and contracts and to enforce compliance with specifications;
(f) To supervise and control the advertising
for bids and awards for state purchases;
(g) To regulate the requisitioning and
storage of purchased items, the disposal of surplus and salvage, and the
transfer to or between state departments and agencies of needed supplies,
equipment, and materials;
(h) To maintain, equip, and keep in repair
the state house, state office building, and other premises owned or rented by
the state for the use of any department or agency, excepting those buildings,
the control of which is vested by law in some other agency;
(i) To provide for the periodic inspection,
appraisal or inventory of all state buildings and property, real and personal;
(j) To require reports from state agencies on
the buildings and property in their custody;
(k) To issue regulations to govern the
protection and custody of the property of the state;
(l) To assign office and storage space and to
rent and lease land and buildings for the use of the several state departments
and agencies in the manner provided by law;
(m) To control and supervise the acquisition,
operation, maintenance, repair, and replacement of state-owned motor vehicles
by state agencies;
(n) To maintain and operate central
duplicating and mailing service for the several state departments and agencies;
(o) To furnish the several departments and
agencies of the state with other essential office services;
(p) To survey and examine the administration
and operation of the state departments and agencies, submitting to the governor
proposals to secure greater administrative efficiency and economy, to minimize
the duplication of activities, and to effect a better organization and
consolidation of functions among state agencies;
(q) To assess and collect all taxes levied
by the state by virtue of the various laws of the state;
(r) To analyze, evaluate, and appraise the
tax system of the state, and to make recommendations for its revision in
accordance with the best interests of the economy of the state;
(s) To operate a merit system of personnel
administration and personnel management as defined in section 36-3-3 in
connection with the conditions of employment in all state departments and
agencies within the classified service;
(t) To assign or reassign, with the approval
of the governor, any functions, duties, or powers established by this chapter
to any agency within the department;
(u) To establish, maintain, and operate a
data processing center or centers, approve the acquisition and use of
electronic data processing services by state agencies, furnish staff assistance
in methods, systems and programming work to other state agencies, and arrange
for and effect the centralization and consolidation of punch card and
electronic data processing equipment and services in order to obtain maximum
utilization and efficiency;
(v) To devise, formulate, promulgate,
supervise, and control a comprehensive and coordinated statewide information
system designed to improve the data base used in the management of public
resources, to consult and advise with other state departments and agencies and
municipalities to assure appropriate and full participation in this system, and
to encourage the participation of the various municipalities of this state in
this system by providing technical or other appropriate assistance toward
establishing, within those municipalities, compatible information systems in
order to obtain the maximum effectiveness in the management of public
resources;
(1) The comprehensive and coordinated
statewide information system may include a Rhode Island geographic information
system of land-related economic, physical, cultural and natural resources.
(2) In order to ensure the continuity of the
maintenance and functions of the geographic information system, the general
assembly may annually appropriate such sum as it may deem necessary to the
department of administration for its support.
(w) To administer a statewide planning
program including planning assistance to the state departments and agencies;
(x) To administer a statewide program of
photography and photographic services;
(y) To negotiate with public or private
educational institutions in the state, in cooperation with the department of
health, for state support of medical education;
(z) To promote the expansion of markets for
recovered material and to maximize their return to productive economic use
through the purchase of materials and supplies with recycled content by the
state of Rhode Island to the fullest extent practically feasible;
(aa) To approve costs as provided in section
23-19-32; and
(bb) To provide all necessary civil service
tests for child protective investigators and social workers at least twice each
year and to maintain an adequate hiring list for these positions at all times.
(cc) To prepare a report every three (3)
months by all current property leases or rentals by any state or quasi-state
agency to include the following information:
(1) Name of lessor;
(2) Description of the lease (purpose,
physical characteristics, and location);
(3) Cost of the lease;
(4) Amount paid to date;
(5) Date initiated;
(6) Date covered by the lease.
(dd) To provide by December 31, 1995 the
availability of automatic direct deposit to any recipient of a state benefit payment,
provided that the agency responsible for making that payment generates one
thousand (1,000) or more such payments each month.
(ee) To operate a division of motor
vehicles. The division will be responsible for activities assigned to it by
law, including but not limited to, motor vehicle registration, testing and
licensing of motor vehicle operators, inspection of motor vehicles, and
enforcement of laws relating to the issuance, suspension and revocation of
motor vehicle registrations and drivers' licenses. The division shall
administer the financial responsibility law. The chief of the division shall
use the title and designation "administrator" on all licenses,
registrations, orders of suspensions, financial responsibility notices or orders,
or any other official documents issued or promulgated by the division.
(ff) (ee) To operate the Rhode
Island division of sheriffs as provided in section 42-11-21.
(gg) To operate a statewide child
support enforcement program in accordance with title IV-D of the Social
Security Act and under title 15 of the Rhode Island general laws.
42-11-12. Transfer of functions from the department of community
affairs. -- (a) There are hereby transferred to the
department of administration those functions formerly administered by the
department of community affairs relating to:
(1) Administration of aid to
municipalities;
(2) Local planning assistance;
(3) Community development training; and
(4) Technical local government assistance;
(5) Equalized weighted assessed;
(6) Property tax administration assistance;
and
(7) Building code standards committee.
(b) In addition to any of its other powers
and responsibilities, the department 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 the 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 those grants.
SECTION 9. Sections
42-61-1, 42-61-3 and 42-61-4 of the General Laws in Chapter 42-61 entitled
"State Lottery" are hereby amended to read as follows:
42-61-1. Division of state lottery established. --
(a) There is established a state lottery division within the department of administration.
revenue.
42-61-3. Appointment of director of lotteries. --
The lotteries shall be under the immediate supervision and direction of a
director, who shall be a qualified person to administer an enterprise of the
nature of a lottery. The director shall be appointed by the governor to a five
(5) year term with the advice and consent of the senate. The appointment shall
be reviewed or vetted by the Permanent Joint Committee on State Lottery
according to Article 6 Section 15 of the Rhode Island Constitution. The
director shall serve until his or her successor is appointed and qualified. Any
vacancy occurring in the office of the director shall be filled in the same
manner as the original appointment. Pursuant to section 42-6-4, in the case of
a vacancy while the senate is not in session, the governor shall appoint a
director to hold the office until the next session thereof; provided, that no
person should serve in such a position for more than three (3) legislative days
after the senate convenes unless that person's name shall have been submitted
to the senate for its approval. The director shall devote his or her entire
time and attention to the duties of his or her office and shall not be engaged
in any other profession or occupation. He or she shall receive any salary that
the director of the department of administration revenue shall
determine and shall be in the unclassified service.
The director of lotteries shall be removable
by the governor, pursuant to the provisions of section 36-1-7 and for cause
only, and removal solely for partisan or personal reasons unrelated to capacity
or fitness for the office shall be unlawful.
42-61-4. Powers and duties of director. --
The director shall have the power and it shall be his or her duty to:
(1) Supervise and administer the operation of
lotteries in accordance with this chapter, chapter 61.2 of this title and with
the rules and regulations of the division;
(2) Act as the chief administrative officer
having general charge of the office and records and to employ necessary
personnel to serve at his pleasure and who shall be in the unclassified service
and whose salaries shall be set by the director of the department of administration revenue, pursuant to the provisions
of section 36-4-16. 42-61-3.
(3) In accordance with this chapter and the
rules and regulations of the division, license as agents to sell lottery
tickets those persons, as in his or her opinion, who will best serve the public
convenience and promote the sale of tickets or shares. The director may require
a bond from every licensed agent, in an amount provided in the rules and
regulations of the division. Every licensed agent shall prominently display his
or her license, or a copy of their license, as provided in the rules and
regulations of the committee;
(4) Confer regularly as necessary or
desirable, and not less than once each month, with the permanent joint
committee on state lottery on the operation and administration of the
lotteries; make available for inspection by the committee, upon request, all
books, records, files, and other information, and documents of the division;
advise the committee and recommend those matters that he or she deems necessary
and advisable to improve the operation and administration of the lotteries;
(5) Suspend or revoke any license issued
pursuant to this chapter, chapter 61.2 of this title or the rules and
regulations promulgated under this chapter and chapter 61.2 of this title;
(6) Enter into contracts for the operation of
the lotteries, or any part of the operation of the lotteries, and into
contracts for the promotion of the lotteries;
(7) Ensure that monthly financial reports are
prepared providing gross monthly revenues, prize disbursements, other expenses,
net income, and the amount transferred to the state general fund for keno and
for all other lottery operations; submit this report to the state budget
officer, the auditor general, the permanent joint committee on state lottery,
the legislative fiscal advisors, and the governor no later than the twentieth
business day following the close of the month; the monthly report shall be
prepared in a manner prescribed by the members of the revenues estimating conference;
at the end of each fiscal year the director shall submit an annual report based
upon an accrual system of accounting which shall include a full and complete
statement of lottery revenues, prize disbursements and expenses, to the
governor and the general assembly, which report shall be a public document and
shall be filed with the secretary of state;
(8) Carry on a continuous study and
investigation of the state lotteries throughout the state, and the operation
and administration of similar laws which may be in effect in other states or
countries;
(9) Implement the creation and sale of
commercial advertising space on lottery tickets as authorized by section
42-61-4 of this chapter as soon as practicable after June 22, 1994;
(10) Promulgate rules and regulations which
shall include but not be limited to:
(i) The price of tickets or shares in the
lotteries;
(ii) The number and size of the prizes on the
winning tickets or shares;
(iii) The manner of selecting the winning
tickets or shares;
(iv) The manner of payment of prizes to the
holders of winning tickets or shares;
(v) The frequency of the drawings or
selections of winning tickets or shares;
(vi) The number and types of location at
which tickets or shares may be sold;
(vii) The method to be used in selling
tickets or shares;
(viii) The licensing of agents to sell
tickets or shares, except that a person under the age of eighteen (18) shall
not be licensed as an agent;
(ix) The license fee to be charged to agents;
(x) The manner in which the proceeds of the
sale of lottery tickets or shares are maintained, reported, and otherwise
accounted for;
(xi) The manner and amount of compensation to
be paid licensed sales agents necessary to provide for the adequate
availability of tickets or shares to prospective buyers and for the convenience
of the general public;
(xii) The apportionment of the total annual
revenue accruing from the sale of lottery tickets or shares and from all other
sources for the payment of prizes to the holders of winning tickets or shares,
for the payment of costs incurred in the operation and administration of the
lotteries, including the expense of the division and the costs resulting from
any contract or contracts entered into for promotional, advertising,
consulting, or operational services or for the purchase or lease of facilities,
lottery equipment, and materials, for the repayment of moneys appropriated to
the lottery fund;
(xiii) The superior court upon petition of
the director after a hearing may issue subpoenas to compel the attendance of
witnesses and the production of documents, papers, books, records, and other
evidence in any matter over which it has jurisdiction, control or supervision.
If a person subpoenaed to attend in the proceeding or hearing fails to obey the
command of the subpoena without reasonable cause, or if a person in attendance
in the proceeding or hearing refuses without lawful cause to be examined or to
answer a legal or pertinent question or to exhibit any book, account, record,
or other document when ordered to do so by the court, that person may be
punished for contempt of the court;
(xiv) The manner, standards, and
specification for a process of competitive bidding for division purchases and
contracts; and
(xv) The sale of commercial advertising space
on the reverse side of, or in other available areas upon, lottery tickets
provided that all net revenue derived from the sale of the advertising space
shall be deposited immediately into the state's general fund and shall not be
subject to the provisions of section 42-61-15; and
(11) [Effective until June 30,
2006.]Notwithstanding any general law, public law, or regulation to the
contrary, implement, without division approval, changes in the structures of
the following lottery games: Powerball, Keno and Hot Trax.
SECTION 10. Sections
44-1-1 and 44-1-2 of the General Laws in Chapter 44-1 entitled "State Tax
Officials" are hereby amended to read as follows:
44-1-1. Tax administrator -- Appointment. --
There shall be a tax administrator within the department of administration
revenue appointed by the director of administration revenue
with the approval of the governor.
44-1-2. Powers and duties of tax administrator. --
The tax administrator is required:
(1) To assess and collect all taxes
previously assessed by the division of state taxation in the department of
revenue and regulation, including the franchise tax on domestic corporations,
corporate excess tax, tax upon gross earnings of public service corporations,
tax upon interest bearing deposits in national banks, the inheritance tax, tax
on gasoline and motor fuels, and tax on the manufacture of alcoholic beverages;
(2) To assess and collect the taxes upon
banks and insurance companies previously administered by the division of
banking and insurance in the department of revenue and regulation, including
the tax on foreign and domestic insurance companies, tax on foreign building
and loan associations, deposit tax on savings banks, and deposit tax on trust
companies;
(3) To assess and collect the tax on
pari-mutuel or auction mutuel betting, previously administered by the division
of horse racing in the department of revenue and regulation; .
(4) To collect the fees and to account for
all funds relating to the registration of motor vehicles and the licensing of
operators, previously administered by the division of motor vehicles in the
department of revenue and regulation.
SECTION 11. Section
44-1-30 of the General Laws in Chapter 44-1 entitled "State Tax
Officials" is hereby repealed.
44-1-30. Report by the tax administrator to the speaker of the house
of representatives. -- The tax administrator
shall periodically report to the speaker of the house of representatives on the
adequacy of the estate tax exemption, the marital deduction, and the orphan's
deduction provided in chapter 22 of title 44 in light of changing economic
conditions and on the trends in death taxation at both the federal and state
levels. The reports are due on January 31st of each fifth (5th) year after
1985.
SECTION 12. Sections
44-5-2, 44-5-11.7 and 44-5-69 of the General Laws in Chapter 44-5 entitled
"Levy and Assessment of Local Taxes" are hereby amended to read as
follows:
44-5-2. Maximum levy. -- (a) A city and town
may levy a tax in an amount not more than five and one-half percent (5.5%) in
excess of the amount levied and certified by that city or town for the prior
year. The amount levied by a city or town is deemed to be consistent with the
five and one-half percent (5.5%) levy growth cap if the tax rate is not more
than one hundred and five and one-half percent (105.5%) of the prior year's tax
rate and the budget resolution or ordinance, as applicable, specifies that the
tax rate is not increasing by more than five and one-half percent (5.5%) except
as specified in subsection (c) of this section. In all years when a revaluation
or update is not being implemented, a tax rate is deemed to be one hundred five
and one-half percent (105.5%) or less of the prior year's tax rate if the tax
on a parcel of real property, the value of which is unchanged for purpose of
taxation, is no more than one hundred five and one-half percent (105.5%) of the
prior year's tax on the same parcel of real property. In any year when a
revaluation or update is being implemented, the tax rate is deemed to be one
hundred five and one-half percent (105.5%) of the prior year's tax rate as
certified by the division of local government assistance in the department of
administration.
(b) The office of municipal affairs division
of property valuation in the department of administration revenue
shall monitor city and town compliance with this levy cap, issue periodic
reports to the general assembly on compliance, and make recommendations on the
continuation or modification of the levy cap on or before December 31, 1987,
December 31, 1990, and December 31, every third year thereafter. The chief
elected official in each city and town shall provide to the office of municipal
affairs within thirty (30) days of final action, in the form required, the
adopted tax levy and rate and other pertinent information.
(c) The amount levied by a city or town may
exceed the five and one-half percent (5.5%) increase as specified in subsection
(a) of this section if the city or town qualifies under one or more of the
following provisions:
(1) The city or town forecasts or experiences
a loss in total non-property tax revenues and the loss is certified by the
department of administration.
(2) The city or town experiences or
anticipates an emergency situation, which causes or will cause the levy to
exceed five and one-half percent (5.5%). In the event of an emergency or an
anticipated emergency, the city or town shall notify the auditor general who
shall certify the existence or anticipated existence of the emergency.
(3) A city or town forecasts or experiences
debt services expenditures which are more than one hundred five and one-half
percent (105.5%) of the prior year's debt service expenditures and which are
the result of bonded debt issued in a manner consistent with general law or a
special act. In the event of the debt service increase, the city or town shall
notify the department of administration which shall certify the debt service
increase above one hundred five and one-half percent (105.5%) of the prior
year's debt service. No action approving or disapproving exceeding a levy cap
under the provisions of this section affects the requirement to pay obligations
as described in subsection (d) of this section.
(4) Any levy pursuant to subsection (c) of
this section in excess of the five and one-half percent (5.5%) shall be
approved by a majority vote of the governing body of the city or town or in the
case of a city or town having a financial town meeting, the majority of the
electors present and voting at the town financial meeting shall approve the
excess levy.
(d) Nothing contained in this section
constrains the payment of present or future obligations as prescribed by
section 45-12-1, and all taxable property in each city or town is subject to
taxation without limitation as to rate or amount to pay general obligation
bonds or notes of the city or town except as otherwise specifically provided by
law or charter.
44-5-11.7. Permanent legislative oversight commission. --
(a) (1) There is created a permanent legislative commission on property
taxation. The commission consists of the following members:
(i) Chairperson of the house finance
committee, or designee;
(ii) Chairperson of the senate finance committee,
or designee;
(iii) Chief of the office of municipal
affairs, or designee;
(iv) The president of the league of cities
and towns;
(v) The executive director of the Rhode
Island public expenditures council, or designee; and
(vi) One member of the Rhode Island
Assessors' Association.
(vii) Director of the
property valuation within the department of revenue.
(2) The commission at its first meeting shall
elect a chairperson from its membership.
(b) The purpose of the commission is to study
and evaluate property tax related issues including, but not limited to:
(1) Revaluation process;
(2) Exemptions and classifications;
(3) Uniform depreciation rates; and
(4) Any other issues which the commission
determines are relevant to the issue of property taxation.
(c) The members shall receive no compensation
for their services. All departments and agencies of the state shall furnish
advice and information, documentary or otherwise to the commission and its
agents as is deemed necessary or desirable by the commission to facilitate the
purposes of the commission.
(d) The commission shall meet no less than
three (3) times per year and shall report its findings and recommendations to
the general assembly on an annual basis.
44-5-69. Local fire districts -- Publication of property tax data. --
Every fire district authorized to assess and collect taxes on real and personal
property in the several cities and towns in the state shall provide to the
office of municipal affairs in the to the division of property valuation
in the department of administration revenue information on
tax rates, budgets, assessed valuations and other pertinent data upon forms
provided by the office of municipal affairs. The information shall be included
in the department's annual state report on local governmental finances and tax
equalization.
SECTION 13. Section
44-13-13 of the General Laws in Chapter 44-13 entitled "Public Service
Corporation Tax" is hereby amended to read as follows:
44-13-13. Taxation of certain tangible personal property. --
The lines, cables, conduits, ducts, pipes, machines and machinery, equipment,
and other tangible personal property within this state of telegraph, cable, and
telecommunications corporations and express corporations, used exclusively in
the carrying on of the business of the corporation shall be exempt from local
taxation; provided, that nothing in this section shall be construed to exempt
any "community antenna television system company" (CATV) from local
taxation; and provided, that the tangible personal property of companies
exempted from local taxation by the provisions of this section shall be subject
to taxation in the following manner:
(1) Definitions. - Whenever used in this
section and in sections 44-13-13.1 and 44-13-13.2, unless the context otherwise
requires:
(i) "Average assessment ratio"
means the total assessed valuation as certified on tax rolls for the reference
year divided by the full market value of the valuation as computed by the Rhode
Island department of administration revenue in accordance with
section 16-7-21;
(ii) "Average property tax rate"
means the statewide total property levy divided by the statewide total assessed
valuation as certified on tax rolls for the most recent tax year;
(iii) "Company" means any
telegraph, cable, telecommunications, or express company doing business within
the state of Rhode Island;
(iv) "Department" means the
department of administration revenue;
(v) "Population" shall mean the
population as determined by the most recent census;
(vi) "Reference year" means the
calendar year two (2) years prior to the calendar year preceding that in which
the tax payment provided for by this section is levied;
(vii) "Value of tangible personal
property" of companies means the net book value of tangible personal
property of each company doing business in this state as computed by the
department of administration revenue. "Net book value"
means the original cost less accumulated depreciation; provided, that no
tangible personal property shall be depreciated more than seventy-five percent
(75%) of its original cost.
(2) On or before March 1 of each year, each
company shall declare to the department, on forms provided by the department,
the value of its tangible personal property in the state of Rhode Island on the
preceding December 31.
(3) On or before April 1, 1982 and each April
1 thereafter of each year, the department division of property
valuation shall certify to the tax administrator the average property tax
rate, the average assessment ratio, and the value of tangible personal property
of each company.
(4) The tax administrator shall apply the
average assessment ratio and the average tax rate to the value of tangible
personal property of each company and, by April 15 of each year, shall notify
the companies of the amount of tax due.
(5) The tax shall be due and payable within
sixty (60) days of the mailing of the notice by the tax administrator. If the
entire tax is not paid to the tax administrator when due, there shall be added
to the unpaid portion of the tax, and made a part of the tax, interest at the
rate provided for in section 44-1-7 from the date the tax was due until the
date of the payment. The amount of any tax, including interest, imposed by this
section shall be a debt due from the company to the state, shall be recoverable
at law in the same manner as other debts, and shall, until collected,
constitute a lien upon all the company's property located in this state.
(6) The proceeds from the tax shall be
allocated in the following manner:
(i) Payment of reasonable administrative
expenses incurred by the department of administration revenue,
not to exceed three quarters of one percent (.75%), the payment to be
identified as general revenue and appropriated directly to the department;
(ii) The remainder of the proceeds shall be
deposited in a restricted revenue account and shall be apportioned to the
cities and towns within this state on the basis of the ratio of the city or
town population to the population of the state as a whole. Estimated revenues
shall be distributed to cities and towns by July 30 and may be recorded as a
receivable by each city and town for the prior fiscal year.
SECTION 14. Section
44-34-12 of the General Laws in Chapter 44-34 entitled "Excise on Motor
Vehicles and Trailers" is hereby amended to read as follows:
44-34-12. Cooperation of state agencies. --
The department of administration shall provide space and secretarial and
clerical services to the Rhode Island vehicle value commission without charge
to the commission. The department of transportation, and the department of administration
revenue shall provide, consistent with law, information that is in their
possession, which the commission determines to be useful or necessary in the
conduct of its responsibilities.
SECTION 15. Section
44-34.1-3 of the General Laws in Chapter 44-34.1 entitled "Motor Vehicle
and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read
as follows:
44-34.1-3. Permanent oversight commission. --
(a) There is created a permanent oversight commission on inventory taxes and
automobile excise taxes. The commission shall consist of the following members:
(1) Chairperson of house finance committee,
or designee;
(2) Chairperson of senate finance committee,
or designee;
(3) Chairperson of the Rhode Island vehicle
value commission;
(4) Three (3) members of the Rhode Island
Assessors Association;
(5) Director of department of administration
revenue, or designee;
(6) Chief of the office of municipal
affairs division of property
valuation, or designee;
(7) The president of the Rhode Island League
of Cities and Towns, or designee;
(8) The administrator of the Rhode Island division
of motor vehicles, or designee;
(9) The mayor of the city of Providence, or
designee.
(b) The purpose of the commission shall be to
study and evaluate the phase-out of the automobile excise tax and to establish
procedures when necessary to facilitate the phase-out of the tax by July 1,
2005.
(c) The commission, at its first meeting,
shall elect a chairperson from its membership.
(d) The commission shall meet no less than
two (2) times per year at the call of the chairperson or upon the request of at
least three (3) of its members.
(e) The members shall receive no compensation
for their services. All departments and agencies of the state shall furnish
advice and information, documentary or otherwise, to the commission and its
agents as is deemed necessary or desirable by the commission to facilitate the
purposes of the commission.
SECTION 16. Section
44-48.1-1 of the General Laws in Chapter 44-48.1 entitled "Tax Expenditure
Reporting" is hereby amended to read as follows:
44-48.1-1. Tax expenditure reporting. --
(a) On or before the second Tuesday in January of each even numbered year
beginning in 2004, the state tax administrator, to the extent possible
within the appropriations provided for the purpose chief of the office
of revenue analysis, shall deliver a tax expenditure report to the general
assembly. Each report will provide the minimum information for one hundred
percent (100%) of tax expenditures in effect on January 1 of the calendar year
preceding the report's publication.
(b) For the purposes of this section, a
"tax expenditure" is any tax credit, deduction, exemption, exclusion,
credit preferential tax rate, tax abatement, and tax deferral that provides
preferential treatment to selected taxpayers, whether directly through Rhode
Island general laws or constitutional provisions or indirectly through adoption
of other tax codes.
(c) The information included for each tax
expenditure shall include, but shall not be limited to:
(1) The legal reference of the expenditures,
including information whether the expenditure is required as a result of
federal or state constitutional, judicial, or statutory mandate.
(2) Amount of revenues forgone or an
estimate, if the actual amount cannot be determined, for the calendar year
immediately preceding the publication of the report. The report shall also
include an estimate of revenue forgone for the calendar year in which the
report is published and the year following the report's publication. The tax
administrator shall develop an index of the reliability of each estimate using
five (5) levels with level one being most reliable. Where actual tax returns
are the source of the estimate, the estimate should be assigned reliability
level one. Where no reliable data exists for the estimate, the estimate should
be assigned reliability level five (5). The reliability level shall be reported
for the estimate of the revenues forgone.
(3) To the extent allowable by law,
identification of the beneficiaries of the exemption by number, income, class
and industry.
(4) A comparison of the tax expenditure to
the tax systems of the other New England states, with emphasis on Massachusetts
and Connecticut.
(5) The data source(s) and analysis
methodology.
(6) To the extent allowable by law,
identification of similar taxpayers or industries that do not enjoy the
exemption.
(d) Each report shall include a section
containing recommendations for improving the effectiveness of the report as a
tax policy tool. This section shall identify the resources required to
implement these recommendations and shall also contain an estimate of the costs
associated with such recommendations.
(e) On or before the second Tuesday in
January 2004, the chief of the office of revenue analysis shall make
available to the general assembly a plan to improve Rhode Island's tax
expenditure reporting effort. The plan shall include measurable criteria to
evaluate improvements in the reliability of tax expenditure item estimates and
the identification of beneficiaries of each tax expenditure by number, income,
class and industry. The plan shall also include cost estimates of additional
resources necessary to implement the plan, and may include any other
information that the tax administrator deems appropriate for inclusion in said
plan.
SECTION 17. Section
44-58-3 of the General Laws in Chapter 44-58 entitled "Streamlined Sales
Tax System" is hereby amended to read as follows:
44-58-3. "Tax administrator" defined. --
As used in this chapter, "tax administrator" means the tax
administrator within the department of administration revenue as
provided for in section 44-1-1 44-143-1.
SECTION 18. Sections
45-12-22.2 and 45-12-22.7 of the General Laws in Chapter 45-12 entitled
"Indebtedness of Towns and Cities" are hereby amended to read as
follows:
45-12-22.2. Monitoring of financial operations -- Corrective action. --
(a) The chief financial officer of each municipality and each school district
within the state shall continuously monitor their financial operations by
tracking actual versus budgeted revenue and expense.
(b) The chief financial officer of the
municipality shall submit a report on a monthly basis to the municipality's
chief executive officer, each member of the city or town council, and school
district committee certifying the status of the municipal budget including the
school department budget or regional school district. The chief financial
officer of the municipality shall also submit a report on a quarterly basis to
the state office of municipal affairs division of property valuation
certifying the status of the municipal budget. The chief financial officer of
the school department or school district shall certify the status of the school
district's budget and shall assist in the preparation of these reports. The
monthly and quarterly reports shall be in a format prescribed by the state
office of municipal affairs division of property valuation and the
state auditor general. The reports shall contain a statement as to whether any
actual or projected shortfalls in budget line items are expected to result in a
year-end deficit, the projected impact on year-end financial results including
all accruals and encumbrances, and how the municipality and school district
plans to address any such shortfalls.
(c) If any reports required under this
section project a year-end deficit, the chief financial officer of the
municipality shall submit to the state office of municipal affairs a corrective
action plan no later than thirty (30) days after completion of the monthly budget
analysis referred to in subsection (b) above, which provides for the avoidance
of a year-end deficit. The plan may include recommendations as to whether an
increase in property taxes and/or spending cuts should be adopted to eliminate
the deficit. The plan shall include a legal opinion by municipal counsel that
the proposed actions under the plan are permissible under federal, state, and
local law. The state office of municipal affairs may rely on the written
representations made by the municipality in the plan and will not be required
to perform an audit.
(d) If the state office of municipal
affairs division of property valuation concludes the plan required
hereunder is insufficient and/or fails to adequately address the financial
condition of the municipality, the state office of municipal affairs division
of property valuation can elect to pursue the remedies identified in
section 45-12-22.7.
(e) The reports required shall include the
financial operations of any departments or funds of municipal government
including the school department or the regional school district,
notwithstanding the status of the entity as a separate legal body. This
provision does not eliminate the additional requirements placed on local and
regional school districts by sections 16-2-9(f) and 16-3-11(e)(3).
45-12-22.7. Enforcement and remedies. --
In the event that a municipality does not comply with the requirements of this
law the state auditor general or state office of municipal affairs through
the division or property valuation through the director of administration
revenue may elect any or all of the following remedies:
(1) Petition the superior court for mandatory
injunctive relief seeking compliance with the provisions of this section. The superior
court shall make a finding of fact as to whether there has been compliance with
the provisions of this section. As herein before stated, the approval or
disapproval of a plan shall be conclusive upon the court in making its finding
as to compliance.
(2) In the event a municipality fails to
provide a year-end deficit elimination plan under section 45-12-22.3, such
noncompliance shall allow for the implementation of a financial review
commission pursuant to section 45-9-3.
(3) Withholding of state aid. In the event
that the state director of administration revenue with the
concurrence of the auditor general elect to withhold state aid, said amounts
shall be placed in a special account within the general fund. At such time the
municipality comes into compliance with the reporting requirements of this
section, said funds shall be released to the municipality by order of the state
director of administration revenue and state auditor general.
SECTION 19. Title 42
of the General Laws entitled “State Affairs and Government” is hereby amended
by adding thereto the following chapter:
CHAPTER 7.2
OFFICE OF HEALTH AND HUMAN
SERVICES
42-7.2-1. Statement of Intent. -- The
purpose of this Chapter is to develop a consumer-centered system of
publicly-financed state administered health and human services that supports
access to high quality services, protects the safety of the state’s most
vulnerable citizens, and ensures the efficient use of all available resources
by the five departments responsible for the health and human services programs
serving all Rhode Islanders and providing direct assistance and support
services to more than 250,000 individuals and families: the department of
children, youth and families; the department of elderly affairs; the department
of health; the department of human services; and the department of mental
health, retardation and hospitals ,
collectively referred to within as
“departments”. It is recognized that the executive office of health and
human services and the departments have undertaken a variety of initiatives to
further this goal and that they share a commitment to continue to work in
concert to preserve and promote each other’s unique missions while striving to
attain better outcomes for all the people and communities they serve. However, recent and expected changes in
federal and state policies and funding priorities that affect the financing,
organization, and delivery of health and human services programs pose new
challenges and opportunities that have created an even greater need for
structured and formal interdepartmental cooperation and collaboration. To meet this need while continuing to build
on the achievements that have already been made, the interests of all Rhode Islanders will best be served by
codifying in the state’s general laws the purposes and responsibilities of the
executive office of health and human services and the position of secretary of
health and human services.
42.7.2-2. Executive Office of Health and Human
Services. -- There
is hereby established within the executive branch of state government an
executive office of health and human services.
This office shall lead the state’s five health and human services
departments in order to:
(a) Improve the
economy, efficiency, coordination, and quality of health and human services
policy and planning, budgeting and financing.
(b) Design strategies
and implement best practices that foster service access, consumer safety and
positive outcomes.
(c) Maximize and
leverage funds from all available public and private sources, including federal
financial participation, grants and awards.
(d) Increase public
confidence by conducting independent reviews of health and human services
issues in order to promote accountability and coordination across departments.
(e) Ensure that state
health and human services policies and programs are responsive to changing
consumer needs and to the network of community providers that deliver assistive
services and supports on their behalf.
42-7.2-3. Secretary of health and human services -- Appointment. — The
executive office of health and human services shall be administered by a
secretary of health and human services, hereafter referred to as
“secretary”. The position of secretary
is hereby created in the unclassified service. The secretary shall be appointed
by the governor, and shall be subject to advice and consent of the senate. The
secretary shall hold office at the pleasure of the governor and until a
successor is appointed and qualified. Before entering upon the discharge of
duties, the secretary shall take an oath to faithfully execute the duties of
the office.
42-7.2-4. Responsibilities of the secretary. -- (a)
The secretary shall be responsible to the governor for supervising the
executive office of health and human services and for providing strategic
leadership and direction to the five departments.
(b) Notwithstanding
the provisions set forth in this chapter, the governor shall appoint the
directors of the departments within the executive office of health and human
services. Directors appointed to those
departments shall continue to be subject to the advice and consent of the
senate and shall continue to hold office as set forth in §§ 42-6-1 et seq. and
42-72-1(c).
42-7.2-5. Duties of the secretary. --
The secretary shall be authorized to:
(a) Coordinate the
administration and financing of health care benefits, human services and
programs including those authorized by the Medicaid State Plan under Title XIX
of the US Social Security Act. However, nothing in this section shall be
construed as transferring to the secretary the powers, duties or functions
conferred upon the departments by Rhode Island public and general laws for the
administration of federal/state programs financed in whole or in part with
Medicaid funds or the administrative responsibility for the preparation and
submission of any state plans, state plan amendments, or authorized federal
waiver applications.
(b) Serve as the governor’s
chief advisor and liaison to federal policymakers on Medicaid reform issues as
well as the principal point of contact in the state on any such related
matters.
(c) Review and ensure
the coordination of any new departmental waiver requests and renewals as well
as any initiatives and proposals requiring amendments to the Medicaid state
plan with the potential to affect the scope, amount or duration of
publicly-funded health care services, provider payments or reimbursements, or
access to or the availability of benefits and services as provided by Rhode
Island general and public laws. The secretary shall consider whether any such
waivers or amendments are legally and fiscally sound and consistent with the
state’s policy and budget priorities. The secretary shall also assess whether a
proposed waiver or amendment is capable of obtaining the necessary approvals
from federal officials and achieving the expected positive consumer outcomes.
Department directors shall, within the timelines specified, provide any
information and resources the secretary deems necessary in order to perform the
reviews authorized in this section;
(d) Beginning in 2006,
prepare and submit to the governor and to the joint legislative committee for
health care oversight, by no later than December 1 of each year, a
comprehensive overview of all Medicaid expenditures included in the annual
budgets developed by the departments. . The directors of the departments shall
assist and cooperate with the secretary in fulfilling this responsibility by
providing whatever resources, information and support shall be necessary.
(e) Resolve
administrative, jurisdictional, operational, program, or policy conflicts among
departments and their executive staffs and make necessary recommendations to the
governor.
(f) Assure continued
progress toward improving the quality, the economy and efficiency of
state-administered health and human services. In this capacity, the secretary
shall:
(1) Oversee
implementation of reforms in the human resources practices of the departments
that streamline and upgrade services, achieve greater economies of scale and
establish the coordinated system of the staff education, cross- training, and
career development services necessary to recruit and retain a highly-skilled, responsive,
and engaged health and human services workforce;
(2) Encourage the
departments to utilize consumer-centered approaches to service design and
delivery that expand their capacity to respond efficiently and responsibly to
the diverse and changing needs of the people and communities they serve;
(3) Develop all
opportunities to maximize resources by leveraging the state’s purchasing power,
centralizing and standardizing contractual services, pursuing alternative
funding sources through grants, awards and partnerships and securing all
available federal financial participation for programs and services provided
through the departments;
(g) Ensure preparation
of a coordinated comprehensive budget for the health and human services
departments;
(h) Improve the
ability of departments to utilize objective data to evaluate health and human
services policy goals, resource use and outcome evaluation and to perform short
and long-term policy planning and development.
(i) Foster the
establishment of an integrated approach to interdepartmental information and
data management that will facilitate the transition to consumer-centered system
of state administered health and human services.
(j) At the direction
of the governor or the general assembly, conduct independent reviews of
state-administered health and human services programs, policies and related
agency actions and activities and assist the department directors in
identifying strategies to address any issues or areas of concern that may
emerge thereof. The department directors shall provide any information and
assistance deemed necessary by the secretary when undertaking such independent
reviews.
(k) Provide regular
and timely reports to the governor and make recommendations with respect to the
state’s health and human services agenda.
(1) Employ such
personnel and contract for such consulting services as may be required to
perform the powers and duties lawfully conferred upon the secretary.
(m) Implement the
provisions of any general or public law or regulation related to the
disclosure, confidentiality and privacy of any information or records, in the
possession or under the control of the executive office or the departments
assigned to the executive office, that may be developed or acquired for
purposes directly connected with the secretary’s duties set forth herein.
42-7.2-6. Departments assigned to the executive office -- Powers and
duties. -- (a)
The departments assigned to the secretary shall:
(1) Exercise their
respective powers and duties in accordance with their statutory authority and
the general policy established by the governor or by the secretary acting on
behalf of the governor or in accordance with the powers and authorities
conferred upon the secretary by this chapter;
(2) Provide such assistance
or resources as may be requested or required by the governor and/or the
secretary; and
(3) Provide such
records and information as may be requested or required by the governor and/or
the secretary to the extent allowed under the provisions of any applicable
general or public law, regulation, or agreement relating to the
confidentiality, privacy or disclosure of such records or information.
(b) Except as provided
herein, no provision of this chapter or application thereof shall be construed
to limit or otherwise restrict the department of children, youth and families,
the department of elderly affairs, the department of health, the department of
human services, and the department of mental health, retardation and hospitals
from fulfilling any statutory requirement or complying with any valid rule or
regulation.
42-7.2-7. Independent advisory council – Purposes. -- (a) The
secretary shall establish an independent advisory council, hereafter referred
to as “advisory council” composed of representatives of the network of health
and human services providers, the communities the departments serve, state and
local policy makers and any other stakeholders or consumers interested in
improving access to high quality health and human services.
(b) The advisory
council shall assist the secretary in identifying: issues of concern and
priorities in the organization and/or delivery of services; areas where there
is need for interdepartmental collaboration and cooperation; and opportunities
for building sustainable and effective public-private partnerships that support
the missions of the departments. The advisory council shall also provide
guidance to the secretary in developing a plan to further the purposes of the
executive office and assist the departments in meeting their unique missions
and shared responsibilities.
(c) With the
assistance of the department directors, the secretary shall hold health and
human services forums and open meetings that encourage community, consumer and
stakeholder input on health and human services issues, proposals and activities
and actions of the executive office that have been identified by the advisory
council as areas of concern or important policy priorities or opportunities for
the state.
42-7.2-8. Assignment and reassignment of advisory
bodies. -- The
governor may, by executive order, reassign any advisory bodies, boards, or
commissions associated or affiliated with the departments to the secretary of
health and human services or assign any such entities that may be created.
42-7.2-9. Appointment of employees. – The
secretary, subject to the provisions of applicable state law, shall be the
appointing authority for all employees of the executive office of health and
human services. The secretary may assign
this function to such subordinate officers and employees of the executive
office as may to him or her seem feasible or desirable. The appointing
authority of the secretary provided for herein shall not affect, interfere
with, limit, or otherwise restrict the appointing authority vested in the
directors for the employees of the departments under applicable general and
public laws.
42-7.2-10. Appropriations and disbursements. – The
general assembly shall annually appropriate such sums as it may deem necessary
for the purpose of carrying out the provisions of this chapter. The state
controller is hereby authorized and directed to draw his 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 approved by the secretary of the executive office of health and human
services, or his or her designee.
42-7.2-11. Rules and regulations. -- The
executive office of health and human services shall be deemed an agency for
purposes of § 42-35-1, et seq. of the Rhode Island general laws. The secretary
shall make and promulgate such rules and regulations, fee schedules not
inconsistent with state law and fiscal policies and procedures as he or she
deems necessary for the proper administration of this chapter and to carry out
the policy and purposes thereof.
42-7.2-12. Medicaid program study. – The
secretary of the executive office of health and human services shall conduct a
study of the Medicaid programs administered by state to review and analyze the
options available for reducing or stabilizing the level of uninsured Rhode
Islanders and containing Medicaid spending. As part of this process, the study
shall consider the flexibility afforded the state under the federal Deficit
Reduction Act of 2006 and any other changes in federal Medicaid policy or
program requirements occurring on or before December 31, 2006, as well as the
various approaches proposed and/or adopted by other states through federal
waivers, state plan amendments, public-private partnerships, and other
initiatives. In exploring these options, the study shall examine fully the
overall administrative efficiency of each program for children and families,
elders and adults with disabilities and any such factors that may affect access
and/or cost including, but not limited to, coverage groups, benefits, delivery
systems, and applicable cost-sharing requirements. The secretary shall ensure that
the study focuses broadly on the Medicaid programs administered by all five of
the state's five health and human services departments, irrespective of the
source or manner in which funds are budgeted or allocated. The directors of the
departments shall cooperate with the secretary in preparing this study and
provide any information and/or resources the secretary deems necessary to
assess fully the short and long-term implications of the options under review
both for the state and the people and the communities the departments serve.
The secretary shall submit a report and recommendations based on the findings
of the study to the general assembly and the governor no later than March 1,
2007.
42-7.2-12.1 Human Services Call Center Study (211). -- The secretary of the executive office of
health and human services shall conduct a feasibility and impact study of the
potential to implement a statewide 211 human services call center and hotline.
As part of the process, the study shall catalog existing human service
information hotlines in Rhode Island, including, but not limited to,
state-operated call centers and private and not-for-profit information hotlines
within the state. The study shall include analysis of whether consolidation of
some or all call centers into a centralized 211 human services information
hotline would be economically and practically advantageous for both the public
users and agencies that currently operate separate systems. The study shall
include projected cost estimates for any recommended actions, including
estimates of cost additions or savings to private service providers. The
directors of all state departments and agencies shall cooperate with the
secretary in preparing this study and provide any information and/or resources
the secretary deems necessary to assess fully the short and long-term
implications of the operations under review both for the state and the people
and the communities the departments serve. The secretary shall submit a report
and recommendations based on the findings of the study to the general assembly,
the governor, and the house and senate fiscal advisors no later than February
1, 2007.
42-7.2-13. Severability. – If any provision of
this chapter or the application thereof to any person or circumstance is held invalid,
such invalidity shall not effect other provisions or applications of the
chapter, which can be given effect without the invalid provision or
application, and to this end the provisions of this chapter are declared to be
severable.
42-7.2-14. Cooperation of other state executive branch agencies. – As may be
appropriate from time to time, the
departments and other agencies of the state of the executive branch that have
not been assigned to the executive office of health and human services under
this chapter shall assist and cooperate with the executive office as may be
required by the governor requested by the secretary.
42-7.2-15. Applicability. -- Nothing in this
chapter shall change, transfer or interfere with, or limit or otherwise
restrict the general assembly’s sole authority to appropriate and
re-appropriate fiscal resources to the departments; the statutory or regulatory
duties of the directors of the departments, or the appointing authority for the
employees of the departments vested in the directors under applicable general
and public laws.
SECTION 20. Section 36-4-2 of the General Laws in
Chapter 36-4 entitled “Merit System” is hereby amended to read as follows:
36-4-2. Positions in unclassified service. – The
classified service shall comprise all positions in the state service now
existing or hereinafter established, except the following specific positions
which with other positions heretofore or hereinafter specifically exempted by
legislative act shall constitute the unclassified service:
(1) Officers and
legislators elected by popular vote and persons appointed to fill vacancies in
elective offices.
(2) Employees of both
houses of the general assembly.
(3) Officers,
secretaries, and employees of the office of the governor, office of the
lieutenant governor, department of state, department of the attorney general,
and the treasury department.
(4) Members of boards
and commissions appointed by the governor, members of the state board of
elections and the appointees of the board, members of the commission for human
rights and the employees of the commission, and directors of departments.
(5) The following
specific offices:
(i) In the department
of administration: director, chief information officer;
(ii) In the department
of business regulation: director;
(iii) In the
department of elementary and secondary education: commissioner of elementary
and secondary education;
(iv) In the department
of higher education: commissioner of higher education;
(v) In the department of
health: director;
(vi) In the department
of labor and training: director, administrative assistant, administrator of the
labor board and legal counsel to the labor board;
(vii) In the
department of environmental management: director;
(viii) In the department
of transportation: director;
(ix) In the department
of human services: director;
(x) In the state
properties committee: secretary;
(xi) In the workers'
compensation court: judges, administrator, deputy administrator, clerk,
assistant clerk, clerk secretary;
(xii) In the
department of elderly affairs: director;
(xiii) In the
department of mental health, retardation, and hospitals: director;
(xiv) In the
department of corrections: director, assistant director
(institutions/operations), assistant director (rehabilitative services),
assistant director (administration), and wardens;
(xv) In the department
of children, youth and families: director, one assistant director, one
associate director, and one executive director;
(xvi) In the public
utilities commission: public utilities administrator;
(xvii) In the water
resources board: general manager;
(xviii) In the human
resources investment council: executive director.
(xix) In the office of
health and human services: secretary of health and human services.
(6) Chief of the
hoisting engineers, licensing division, and his or her employees; executive
director of the veterans memorial building and his or her clerical employees.
(7) One confidential
stenographic secretary for each director of a department and each board and
commission appointed by the governor.
(8) Special counsel,
special prosecutors, regular and special assistants appointed by the attorney
general, the public defender and employees of his or her office, and members of
the Rhode Island bar occupying a position in the state service as legal counsel
to any appointing authority.
(9) The academic
and/or commercial teaching staffs of all state institution schools, with the
exception of those institutions under the jurisdiction of the board of regents
for elementary and secondary education and the board of governors for higher
education.
(10) Members of the
military or naval forces, when entering or while engaged in the military or
naval service.
(11) Judges, referees,
receivers, clerks, assistant clerks, and clerical assistants of the supreme,
superior, family, and district courts, the traffic tribunal, jurors and any
persons appointed by any court.
(12) Election
officials and employees.
(13) Administrator,
executive high sheriff, sheriffs, chief deputy sheriffs, deputy sheriffs, and
other employees of the sheriff's division within the department of
administration and security officers of the traffic tribunal.
(14) Patient or inmate
help in state charitable, penal, and correctional institutions and religious
instructors of these institutions and student nurses in training, residents in
psychiatry in training, and clinical clerks in temporary training at the
institute of mental health within the state of Rhode Island medical center.
(15) Persons employed
to make or conduct a temporary and special inquiry, investigation, project or
examination on behalf of the legislature or a committee therefor, or on behalf
of any other agency of the state if the inclusion of these persons in the unclassified
service is approved by the personnel administrator. The personnel administrator
shall notify the house fiscal advisor and the senate fiscal advisor whenever he
or she approves the inclusion of a person in the unclassified service.
(ii) The duration of
the appointment of a person, other than the persons enumerated in this section,
shall not exceed ninety (90) days or until presented to the department of
administration. The department of administration may extend the appointment
another ninety (90) days. In no event shall the appointment extend beyond one
hundred eighty (180) days.
(16) Members of the
division of state police.
(17) Executive
secretary of the Blackstone Valley district commission.
(18) Artist and
curator of state owned art objects.
(19) Mental health
advocate.
(20) Child advocate.
(21) The position of
aquaculture coordinator and dredge coordinator within the coastal resources
management council.
(22) Employees of the
office of the health insurance commissioner.
SECTION 21. Section 42-11-2 of the General Laws in
Chapter 42-11 entitled “Department of Administration” is hereby amended to read
as follows:
42-11-2. Powers and duties of department. – The
department of administration shall have the following powers and duties:
(a) To prepare a
budget for the several state departments and agencies, subject to the direction
and supervision of the governor;
(b) To administer the
budget for all state departments and agencies, except as specifically exempted
by law;
(c) To devise, formulate,
promulgate, supervise, and control accounting systems, procedures, and methods
for the state departments and agencies, conforming to such accounting standards
and methods as are prescribed by law;
(d) To purchase or to
contract for the supplies, materials, articles, equipment, printing, and
services needed by state departments and agencies, except as specifically
exempted by law;
(e) To prescribe
standard specifications for those purchases and contracts and to enforce
compliance with specifications;
(f) To supervise and
control the advertising for bids and awards for state purchases;
(g) To regulate the
requisitioning and storage of purchased items, the disposal of surplus and
salvage, and the transfer to or between state departments and agencies of
needed supplies, equipment, and materials;
(h) To maintain,
equip, and keep in repair the state house, state office building, and other
premises owned or rented by the state for the use of any department or agency,
excepting those buildings, the control of which is vested by law in some other
agency;
(i) To provide for the
periodic inspection, appraisal or inventory of all state buildings and
property, real and personal;
(j) To require reports
from state agencies on the buildings and property in their custody;
(k) To issue
regulations to govern the protection and custody of the property of the state;
(l) To assign office
and storage space and to rent and lease land and buildings for the use of the
several state departments and agencies in the manner provided by law;
(m) To control and
supervise the acquisition, operation, maintenance, repair, and replacement of
state-owned motor vehicles by state agencies;
(n) To maintain and
operate central duplicating and mailing service for the several state departments
and agencies;
(o) To furnish the
several departments and agencies of the state with other essential office
services;
(p) To survey and
examine the administration and operation of the state departments and agencies,
submitting to the governor proposals to secure greater administrative
efficiency and economy, to minimize the duplication of activities, and to
effect a better organization and consolidation of functions among state
agencies;
(q) To assess and
collect all taxes levied by the state by virtue of the various laws of the
state;
(r) To analyze,
evaluate, and appraise the tax system of the state, and to make recommendations
for its revision in accordance with the best interests of the economy of the
state;
(s) To operate a merit
system of personnel administration and personnel management as defined in §
36-3-3 in connection with the conditions of employment in all state departments
and agencies within the classified service;
(t) To assign or reassign,
with the approval of the governor, any functions, duties, or powers established
by this chapter to any agency within the department;
(u) To establish,
maintain, and operate a data processing center or centers, approve the
acquisition and use of electronic data processing services by state agencies,
furnish staff assistance in methods, systems and programming work to other
state agencies, and arrange for and effect the centralization and consolidation
of punch card and electronic data processing equipment and services in order to
obtain maximum utilization and efficiency;
(v) To devise,
formulate, promulgate, supervise, and control a comprehensive and coordinated
statewide information system designed to improve the data base used in the
management of public resources, to consult and advise with other state
departments and agencies and municipalities to assure appropriate and full
participation in this system, and to encourage the participation of the various
municipalities of this state in this system by providing technical or other
appropriate assistance toward establishing, within those municipalities,
compatible information systems in order to obtain the maximum effectiveness in
the management of public resources;
(1) The comprehensive
and coordinated statewide information system may include a Rhode Island
geographic information system of land-related economic, physical, cultural and
natural resources.
(2) In order to ensure
the continuity of the maintenance and functions of the geographic information
system, the general assembly may annually appropriate such sum as it may deem
necessary to the department of administration for its support.
(w) To administer a
statewide planning program including planning assistance to the state
departments and agencies;
(x) To administer a
statewide program of photography and photographic services;
(y) To negotiate with
public or private educational institutions in the state, in cooperation with
the department of health, for state support of medical education;
(z) To promote the
expansion of markets for recovered material and to maximize their return to
productive economic use through the purchase of materials and supplies with
recycled content by the state of Rhode Island to the fullest extent practically
feasible;
(aa) To approve costs
as provided in § 23-19-32; and
(bb) To provide all
necessary civil service tests for child protective investigators and social
workers at least twice each year and to maintain an adequate hiring list for
these positions at all times.
(cc) To prepare a
report every three (3) months by all current property leases or rentals by any
state or quasi-state agency to include the following information:
(1) Name of lessor;
(2) Description of the
lease (purpose, physical characteristics, and location);
(3) Cost of the lease;
(4) Amount paid to
date;
(5) Date initiated;
(6) Date covered by
the lease.
(dd) To provide by
December 31, 1995 the availability of automatic direct deposit to any recipient
of a state benefit payment, provided that the agency responsible for making
that payment generates one thousand (1,000) or more such payments each month.
(ee) To operate a
division of motor vehicles. The division will be responsible for activities
assigned to it by law, including but not limited to, motor vehicle
registration, testing and licensing of motor vehicle operators, inspection of
motor vehicles, and enforcement of laws relating to the issuance, suspension
and revocation of motor vehicle registrations and drivers' licenses. The division
shall administer the financial responsibility law. The chief of the division
shall use the title and designation "administrator" on all licenses,
registrations, orders of suspensions, financial responsibility notices or
orders, or any other official documents issued or promulgated by the division.
(ff) To operate the
Rhode Island division of sheriffs as provided in § 42-11-21.
(gg) To operate a
statewide child support enforcement program in accordance with title IV-D of
the Social Security Act and under title 15 of the Rhode Island general laws.
(hh) To encourage
municipalities, school districts, and quasi-public agencies to achieve cost
savings in health insurance, purchasing, or energy usage by participating in
state contracts, or by entering into collaborative agreements with other
municipalities, districts, or agencies.
To assist in determining whether the benefit levels including employee
cost sharing and unit costs of such benefits and costs are excessive relative
to other municipalities, districts, or quasi-public agencies as compared with
state benefit levels and costs.
SECTION 22. Chapter
37-2 of the General Laws entitled “State Purchases” is hereby amended by adding
thereto the following section:
37-2-59.1. Establishment of the Rhode Island Strategic Purchasing
Advisory Commission. -- In order to provide a
means of collaboration between the state, cities/towns and school committees a
permanent advisory commission is established named the “Rhode Island Strategic
Purchasing Advisory Commission.” This
Advisory Commission will consist of nine (9) members including; : (1)
the state purchasing agent or his or her designee, who will serve as chair, (2)
a designee of the board of regents of the Rhode Island department of elementary
and secondary education, (3) a designee of the board of governors of higher education;
,(4) a designee of the Rhode Island School Committees Association; , (5)
a designee of the Rhode Island League of Cities and Towns; , (6) a
designee of the Association of School Business Officials; , (7) a
designee of the Rhode Island Municipal Purchasing Agents Association, (8) a
designee of the Rhode Island economic development corporation and; , (9)
a designee of the state budget officer.
SECTION 23. Section
37-6-2 of the General Laws in Chapter 37-6 entitled "Acquisition of
Land" is hereby amended to read as follows:
37-6-2. Rules, regulations, and procedures of committee. --
(a) The state properties committee is hereby authorized and empowered to adopt
and prescribe rules of procedure and regulations, and from time to time amend,
change, and eliminate rules and regulations, and make such orders and perform
such actions as it may deem necessary to the proper administration of this
chapter and sections 37-7-1 -- 37-7-9. In the performance of the commission's
duties hereunder, the commission may in any particular case prescribe a
variation in procedure or regulation when it shall deem it necessary in view of
the exigencies of the case and the importance of speedy action in order to
carry out the intent and purpose of this chapter and sections 37-7-1 -- 37-7-9.
The commission shall file written notice thereof in the office of the secretary
of state. All filings shall be available for public inspection.
(b) The following siting criteria shall be
utilized whenever current existing leases expire or additional office space is
needed:
(1) A preference shall be given to sites
designated as enterprise zone census tracts pursuant to chapter 64.3 of title
42, or in blighted and/or substandard areas pursuant to section 45-31-8, or in
downtown commercial areas where it can be shown the facilities would make a
significant impact on the economic vitality of the community's central business
district;
(2) Consideration should be given to adequate
access via public transportation for both employees as well as the public being
served, and, where appropriate, adequate parking;
(3) A site must be consistent with the
respective community's local comprehensive plan; and
(4) The division of planning within the
department of administration shall be included in the evaluation of all future
lease proposals.
(c) The state properties committee shall
explain, in writing, how each site selected by the committee for a state
facility meets the criteria described in subsection (b) of this section.
(d) For any lease,
rental agreement or extension of an existing rental agreement for leased office
and operating space which carries a term of five (5) years or longer, including
any options or extensions that bring the total term to five (5) years or
longer, where the state is the tenant and the aggregate rent of the terms
exceeds five hundred thousand dollars ($500,000) the state properties committee
shall request approval of the general assembly prior to entering into any new
agreements or signing any extensions with existing landlords. The state
properties committee, in the form of a resolution, shall provide information
relating to the purpose of the lease or rental agreement, the agency's current
lease or rental costs, the expiration date of any present lease or rental
agreement, the range of costs of a new lease or rental agreement, the proposed
term of a new agreement, and the location and owner of the desired property.
SECTION 24.
This article shall take effect upon passage.
ARTICLE 39 SUBSTITUTE A
Relating To Rules and Regulations --
Funding Required
SECTION 1. Section
22-12-1.1 of the General Laws in Chapter 22-12 entitled "Fiscal
Notes" is hereby amended to read as follows:
22-12-1.1. Fiscal notes for administrative rules. --
Whenever a state department or agency proposes to adopt administrative rules in
accordance with the provisions of chapter 35 of title 42, which rules affect
the state or any city or town financially, the proposed rules shall be
accompanied by a fiscal note. prepared by the department or agency in
consultation and cooperation with the department of administration and the
Rhode Island League of Cities and Towns. The budget officer shall be
responsible, in cooperation with these agencies, for the preparation of the
fiscal note, except that the department of administration, in consultation and
cooperation with the Rhode Island League of Cities and Towns, shall be
responsible for the preparation of the fiscal note for bills affecting cities
and towns. Fiscal notes shall be returned to the state department or agency
proposing to adopt administrative rules within ten (10) calendar days of when
the request was made. Copies of all fiscal notes for administrative rules shall
be forwarded to the chairperson of the house finance committee, the chairperson
of the senate finance committee, house fiscal advisor and senate fiscal
advisor.
SECTION 2. Section
45-13-7 of the General Laws in Chapter 45-13 entitled "State Aid" is
hereby amended to read as follows:
45-13-7. State mandated costs defined. --
"State mandate" means any state initiated statutory or executive
action that requires a local government to establish, expand, or modify its activities
in a way as to necessitate additional expenditures from local revenue sources
where the expenditures are not otherwise reimbursed in whole or in part. For
the purpose of this chapter, a "state mandate" shall also mean any
requirement, rule, or dictate by a regulator of a state agency. When state
statutory, or executive, or regulator actions are intended
to achieve compliance with federal statutes or regulations or court orders,
state mandates shall be determined as follows:
(1) Where the federal statute or regulations
or court order is discretionary, the state statutory, or
executive, or regulator action
shall be considered a state mandate for the purposes of sections 45-13-7 --
45-13-10.
(2) Where the state statutory, or
executive, or regulator action exceeds what is required by the federal
statute or regulation or court order, only the provisions of the state action
which exceed the federal requirements shall be considered a state mandate for
the purposes of sections 45-13-7 -- 45-13-10.
(3) Where the state statutory, or
executive, or regulator action does not exceed what is required by the
federal statute or regulation or court order, the state action shall not be
considered a state mandate for the purposes of sections 45-13-7 -- 45-13-10.
(4) Where the cost of a single state mandate
does not exceed the sum of five hundred dollars ($500) the state mandate shall
not be reimbursable.
SECTION 3. Chapter
45-13 of the General Laws entitled
"State Aid" is hereby amended by adding thereto the following
sections:
45-13-9.1. Future
mandates. – No
mandate shall be enacted or promulgated after July 1, 2006, unless the body
enacting or promulgating the same shall first, after public hearing, determine
the cost of the proposed mandate to the city, town or school districts of the
state. Any rule, regulation or policy adopted by state departments, agencies or
quasi-state departments or agencies which require any new expenditure of money
or increased expenditure of money by a city, town or school district shall take
effect on July 1 of the calendar year following the year of adoption. Provided,
however, should funding be provided for the said expenditure, then such rule,
regulation or policy shall take effect upon adoption.
45-13-9.2. Postponement
of effective date. – Whenever
it shall be determined by the governor that the postponement of the effective
date of rules, regulations or policies of state departments, agencies or
quasi-state departments or agencies, shall cause an emergency situation which
imperils the public's safety or public's health, the governor may by executive
order suspend the operation of, in whole or in part, section 45-13-9.1 and such
order shall remain in effect until it is rescinded by a subsequent executive order.
SECTION 4. This
article shall take effect upon passage.
ARTICLE 40 SUBSTITUTE A AS AMENDED
RELATING TO MEDICAL ASSISTANCE -- OPTIONAL
ELIGIBILITY
SECTION 1. Section
40-8-1 of the General Laws in Chapter 40-8 entitled "Medical Assistance”
is hereby amended to read as follows:
§ 40-8-1. Declaration of policy. -- (a)
Whereas, in the state of Rhode Island there are many persons who do not have
sufficient income and resources to meet the cost of medical care and who,
except for income and resource requirements, would be eligible for aid or
assistance under § 40-5.1-9 or 40-6-27; and
(b) Whereas, it is in
the best interest of all the citizens of this state to promote the welfare of
persons with the characteristics of persons eligible to receive public assistance
and ensure that they will receive adequate medical care and treatment in time
of need;
(c) Now, therefore, it
is declared to be the policy of this state to provide medical assistance for
those persons in this state who possess the characteristics of persons
receiving public assistance under the provisions of § 40-5.1-9 or 40-6-27, and
who do not have the income and resources to provide it for themselves or who
can do so only at great financial sacrifice. Provided, further, that medical
assistance, except as provided in subsection (d), must qualify for federal
financial participation pursuant to the provisions of title XIX of the federal
Social Security Act, 42 U.S.C. § 1396 et seq., as such provisions apply to
medically needy only applicants and recipients.
(d) Medical assistance
shall be provided under this chapter without regard to the availability of
federal financial participation: (1) to a person who does not meet the
citizenship or alienage criteria under title XIX of the Social Security Act [42
U.S.C. § 1396 et seq.] and who was lawfully residing in the United States
before August 22, 1996 and who was a resident of this state prior to July 1,
1997; and (2) to a non-citizen child who was lawfully admitted for permanent
residence on or after August 22, 1996 or who first becomes otherwise entitled
to reside in the United States on or after August 22, 1996 and is receiving
medical assistance on or before December 31, 2006; and provided, however,
that such person meets all other eligibility requirements under this chapter or
under title XIX of the Social Security Act.
SECTION 2. Sections 42-12.3-4 and 42-12.3-15 of the
General Laws in Chapter 42-12.3 entitled "Health Care for Children and
Pregnant Women” are hereby amended to read as follows:
§ 42-12.3-4. "RIte track" program. -- There
is hereby established a payor of last resort program for comprehensive health
care for children until they reach nineteen (19) years of age, to be known as
"RIte track". The department of human services is hereby authorized
to amend its title XIX state plan pursuant to title XIX [42 U.S.C. § 1396 et
seq.] of the Social Security Act to provide for expanded medicaid coverage
through expanded family income disregards for children, until they reach
nineteen (19) years of age, whose family income levels are up to two hundred
fifty percent (250%) of the federal poverty level; provided, however, that
health care coverage under this section shall also be provided without regard
to the availability of federal financial participation to a noncitizen child
lawfully residing in the United States and to a noncitizen child residing in
Rhode Island, provided that the child satisfies all other eligibility
requirements and is receiving medical assistance on or before December 31,
2006. The department is further authorized to promulgate any regulations
necessary, and in accord with title XIX [42 U.S.C. § 1396 et seq.] of the
Social Security Act to implement the state plan amendment. For those children who
lack health insurance, and whose family incomes are in excess of two hundred
fifty percent (250%) of the federal poverty level, the department of human
services shall promulgate necessary regulations to implement the program. The
department of human services is further directed to ascertain and promulgate
the scope of services that will be available to those children whose family
income exceeds the maximum family income specified in the approved title XIX
[42 U.S.C. section 1396 et seq.] state plan amendment.
§ 42-12.3-15. Expansion of RIte track program. -- The Department of Human Services is
hereby authorized and directed to submit to the United States Department of
Health and Human Services an amendment to the "RIte Care" waiver
project number 11-W-0004/1-01 to provide for expanded medicaid coverage for
children until they reach eight (8) years of age, whose family income levels
are up to two hundred fifty percent (250%) of the federal poverty level.
Expansion of the RIte track program from the age of six (6) until they reach
eighteen (18) years of age in accordance with this chapter shall be subject to
the approval of the amended waiver by the United States Department of Health
and Human Services. Health care coverage under this section shall also be
provided without regard to the availability of federal financial participation:
(1) to a non-citizen child lawfully residing in the United States provided such
child satisfies all other eligibility requirements and is receiving medical
assistance on or before December 31, 2006.
SECTION 3. This
article shall take effect on December 31, 2006.
ARTICLE 41 SUBSTITUTE A
Relating To Effective Date
SECTION 1. This act
shall take effect July 1, 2006, except as otherwise provided herein.
In articles where it is provided that the
effective date shall be either "July 1, 2006", or "upon
passage", and no provision is made for retroactive or prospective
application, the effective date shall be July 1, 2006, and if the article is
approved after July 1, 2006, then the article shall be retroactive to July 1,
2006.
In articles where it is provided that the
effective date shall be either "July 1, 2006" or "upon
passage" and provision is made within the article for retroactive or
prospective application, the article shall take effect on July 1, 2006 and its
application made retroactive or prospective as set forth in the article.
SECTION 2. This article
shall take effect upon passage.