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ARTICLE 2 AS AMENDED |
RELATING TO STATE FUNDS
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SECTION 1. Section 5-20.7-15 of the General Laws in Chapter 5-20.7 entitled "Real Estate |
Appraiser Certification Act" is hereby amended to read as follows: |
5-20.7-15. Fees. |
(a) The director is empowered and directed to establish a fee schedule for the application, |
review, examination, and re-examination of applicants for certification and licensing and for the |
issuance and renewal of certificates and for late fees; provided, that the annual fee for a residential |
or general appraiser certificate is two hundred dollars ($200). |
(b) There is hereby created a restricted-receipt account within the general fund of the state |
to be known as the real estate appraisers – registration – CLRA account. Fees collected pursuant to |
§ 5-20.7-15(a) subsection (a) of this section shall be deposited into this account and be used to |
finance costs associated with real estate appraisers registration. The restricted-receipt account will |
be included in the budget of the department of business regulation. |
SECTION 2. Section 5-20.9-7 of the General Laws in Chapter 5-20.9 entitled "Real Estate |
Appraisal Management Company Registration Act" is hereby amended to read as follows: |
5-20.9-7. Initial registration, renewals, forms and fees. |
(a) An applicant for registration as an appraisal management company shall submit to the |
department an application on forms prescribed by the department and pay the required fee(s). |
(b) The fees for initial registration, renewal, and late renewals shall be determined by the |
director and established by regulation. |
(c) There is hereby created a restricted-receipt account within the general fund of the state |
to be known as the appraisal management company – registration account. Fees collected pursuant |
to § 5-20.9-7 this section shall be deposited into this account and be used to finance costs associated |
with appraisal management company registration and operations. The restricted receipt account |
will be included in the budget of the department of business regulation. |
(c)(d) Every appraisal management company that desires to renew a registration for the |
next term shall apply for the renewal of the registration upon a form furnished by the director and |
containing information that is required by this chapter. Renewal of a registration is subject to the |
same provisions as the initial registration. |
(d)(e) The department shall receive applications for registration for initial licensing and |
renewal and establish administrative procedures for processing applications and issuing and |
renewing registrations. |
(e)(f) The department shall have the authority to assess and collect from registered entities, |
the AMC appraisal management companies (AMC) federal registry fee in any amount assessed |
by the appraisal subcommittee of the Federal Financial Institutions Examination Council or its |
successor entity, and transmit the fee to the Federal Financial Institutions Examinations Council. |
(f)(g) A federally regulated appraisal management company operating in this state shall |
report to the department any information necessary for the department to assess, collect, and |
forward the AMC federal registry fee in any amount assessed by the appraisal subcommittee of |
the Federal Financial Institutions Examination Council or its successor entity. |
SECTION 3. Sections 22-13-1 and 22-13-4 of the General Laws in Chapter 22-13 entitled |
"Auditor General" are hereby amended to read as follows: |
22-13-1. Appointment -- Qualifications -- Oath -- Bond -- Office space -- Rules and |
regulations. |
(a) The auditor general shall be appointed by the joint committee on legislative services, |
referred to in this chapter as "the committee." At the time of appointment, the auditor general shall |
have had active experience in general accounting principles and practices in this state for a total |
period of at least five (5) years. Vacancies in the office shall be filled in the same manner as the |
original appointment. |
(b)(1) The committee shall employ qualified persons necessary for the efficient operation |
of the office and shall fix their duties and compensation and those persons shall be in the |
unclassified service. |
(2) No person shall be employed as an auditor who does not have adequate technical |
training and proficiency, and a baccalaureate degree from a college or university, and no person |
shall be employed or retained as legal advisor on either a full-time or a part-time basis who is not |
a member of the Rhode Island bar. |
(c) The auditor general, before entering upon the duties of his or her office, shall take and |
subscribe to the oath of office required of state officers by the state constitution. |
(d) The auditor general shall be covered by the state's blanket position bond and |
conditioned that he or she will well and faithfully discharge the duties of his or her office,; promptly |
report any delinquency or shortage discovered in any accounts and records audited by him or her,; |
and promptly pay over and account for any and all funds that shall come into his or her hands as |
auditor. |
(e)(1) All auditors employed by the auditor general shall be covered by a blanket position |
bond. The bonds or bond shall meet and contain the same conditions as are required in the bond of |
the auditor general. |
(2) All bonds shall be filed with the committee. If an auditor is not covered in the blanket |
position bond, an individual bond shall be filed within thirty (30) days after the employee received |
notice of his or her employment. The amount of the bond shall be determined by the auditor general. |
Failure to file an individual bond or to be covered in the blanket position bond shall terminate his |
or her employment. |
(f) The annual premium of all bonds shall be paid out of any funds provided for the |
operation of the office. |
(g) The auditor general shall be provided with suitable quarters, but to facilitate auditing |
and to eliminate unnecessary traveling, the joint committee on legislative services may establish |
divisions, including a performance investigation division, and assign auditors to each division and |
determine their duties and the areas of the state to be served by the respective divisions. The auditor |
general shall be provided and furnished with any space that may be necessary to carry out his or |
her functions in other areas of the state. |
(h) The auditor general may make and enforce reasonable rules and regulations necessary |
to facilitate audits and investigations which that the joint committee on legislative services |
authorizes the auditor general to perform. This includes the post-audit of the financial transactions |
and accounts of the state that is provided for by the finance committee of the house of |
representatives. |
(i) No full-time employee of the office of auditor general shall serve as an executive, |
officer, or employee of any political party committee, organization, or association. Neither the |
auditor general nor any employee of the auditor general shall become a candidate for election to |
public office unless he or she shall first resign from his or her office or employment. |
22-13-4. Definitions -- Duties of auditor general -- Investigations by committee. |
(a) The following words and phrases have the following meanings unless a different |
meaning is required by the context: |
(1) "Performance audit" means an examination of the effectiveness of administration and |
its efficiency and adequacy in terms of the program of the state agency authorized by law to be |
performed. The "performance audit" may also include a review of the agency in terms of |
compliance with federal and state laws and executive orders relating to equal employment |
opportunities and the set aside for minority businesses. |
(2) "Political subdivision" means a separate agency or unit of local government created or |
established by law and includes, but is not limited to, the following and the officers of the following: |
authority, board, branch, bureau, city, commission, council, consolidated government, county, |
department, district, institution, metropolitan government, municipality, office, officer, public |
corporation, town, or village. |
(3) "Post-audit" means an audit made at some point after the completion of a transaction |
or a group of transactions. |
(4) "State agency" means a separate agency or unit of state government created or |
established by law and includes, but is not limited to, the following and the officers of the following: |
authority, board, branch, bureau, commission, council, department, division, institution, office, |
officer, or public corporation, as the case may be, except any agency or unit within the legislative |
branch of state government. |
(b) The auditor general shall make post-audits and performance audits of public records |
and perform related duties as prescribed by the committee. He or she shall perform his or her duties |
independently but under the general policies established by the committee. |
(c)(1) The auditor general shall have the power and duty to make post-audits and |
performance audits of the accounts and records of all state agencies, including the board of |
governors for higher education and the board of regents for elementary and secondary education, |
as defined in this section. |
(2) The auditor general shall have the power, when requested by a majority of the |
committee, to make post-audits and performance audits of accounts and records of any other public |
body or political subdivision, or any association or corporation created or established by any |
general or special law of the general assembly, or any person, association, or corporation to which |
monies of the state have been appropriated by the general assembly. Nothing in the subdivision |
shall be construed to apply to public utilities. |
(3) The auditor general shall perform or have performed annually a complete post-audit of |
the financial transactions and accounts of the state when approved by the chairperson of the joint |
committee on legislative services. |
(d) The committee may at any time, without regard to whether the legislature is then in |
session or out of session, take under investigation any matter within the scope of an audit either |
completed or then being conducted by the auditor general, and in connection with that investigation |
may exercise the powers of subpoena vested by law in a standing committee of the legislature. |
(e)(1) The auditor general may, when directed by the committee, designate and direct any |
auditor employed by him or her to audit any accounts or records within the power of the auditor |
general to audit. The auditor shall report his or her findings for review by the auditor general, who |
shall prepare the audit report. |
(2) The audit report shall make special mention of: |
(i) Any violation of the laws within the scope of the audit; and |
(ii) Any illegal or improper expenditure, any improper accounting procedures, all failures |
to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and |
defalcations. |
(3) At the conclusion of the audit, the auditor general or his or her designated representative |
will conduct an exit conference with the official whose office or department is subject to audit and |
submit to him or her a draft report which includes a list of findings and recommendations. If an |
official is not available for the exit conference, delivery of the draft report is presumed to be |
sufficient notice. The official must submit to the auditor general within sixty (60) days after the |
receipt of the draft report his or her written reply as to: |
(i) Acceptance and plan of implementation of each recommendation; |
(ii) Reason(s) for non-acceptance of a recommendation. |
(4) Should the auditor general determine that the written explanation or rebuttal of the |
official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable, |
report his or her findings to the joint committee on legislative services. |
(f) A copy of the audit report shall be submitted to each member of the committee. |
(g) If the auditor general discovers any errors, unusual practices, or any other discrepancies |
in connection with his or her audit or post-audit of a state agency or state officers, the auditor |
general shall, as soon as practicable, notify in writing the president of the senate and the speaker of |
the house of representatives, respectively. |
(h) The auditor general shall annually review the capital development program to |
determine: (1) the status of all projects included in the program; (2) whether the funds are being |
properly expended for their intended purposes; (3) the completion date or projected completion |
date of the projects; (4) which projects require professional services and to determine the identity |
of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall be |
annually submitted to the general assembly on the first Wednesday in February. |
(i) The auditor general shall supervise, coordinate, and/or conduct investigations and |
inspections or oversight reviews with the purpose of preventing and detecting fraud, waste, abuse |
and mismanagement in the expenditure of public funds. |
SECTION 4. Section 23-77-2 of the General Laws in Chapter 23-77 entitled "Healthcare |
Information Technology and Infrastructure Development Fund" is hereby amended to read as |
follows: |
23-77-2. Establishment of the healthcare information technology and infrastructure |
development fund. |
(a) There is established in the department of health, the healthcare information technology |
and infrastructure development fund to be administered by the director of the department of health |
for the purpose of promoting the development and adoption of healthcare information technologies |
designed to improve the quality, safety and efficiency of healthcare services and the security of |
individual patient data. |
(b) Moneys in the fund shall be used for projects authorized by the director of health and |
may be expended by contract, loan, or grant, to develop, maintain, expand, and improve the state's |
healthcare information technology infrastructure and to assist healthcare facilities and health |
service providers in adopting healthcare information technologies shown to improve healthcare |
quality, safety or efficiency. Such projects shall incorporate the goal of maintaining the security |
and confidentiality of individual patient data, and separate projects for that purpose may also be |
authorized from the fund. The director of health shall develop criteria for the selection of projects |
to be funded from the fund in consultation with the healthcare information technology and |
infrastructure advisory committee created in § 23-77-4. |
(c) Any moneys provided by loan shall be disbursed for periods not exceeding twenty-five |
(25) years and at an annual rate of interest not exceeding five percent (5%). |
(d) The director of the department of health, in consultation with the state healthcare |
information technology advisory committee, shall establish criteria for eligible healthcare |
information technology and infrastructure projects to be funded under this chapter. |
(e) The healthcare information technology and infrastructure development fund, as herein |
described, shall constitute a restricted receipt account within the general fund of the state and |
housed within the budget of the department of health. The short title of the restricted receipt |
account shall henceforth be designated as “health information technology”. |
SECTION 5. Section Sections 35-3-8 and 35-3-24 of the General Laws in Chapter 35-3 |
entitled "State Budget" is hereby amended to read as follows: |
35-3-8. Recommendations to meet deficiencies -- Submission of appropriation bills. |
(a) The budget shall also contain the recommendations of the governor to the general |
assembly for new taxes, loans, or other appropriate actions to meet any estimated deficiency for |
the ensuing fiscal year. It shall also be accompanied by a bill or bills for all proposed appropriations. |
(b) In the event that any departments of state government are expected to incur a deficiency |
within the current fiscal year, the governor shall, on or before the third Thursday in January each |
year, submit a request for supplemental appropriations on their behalf. Provided, however, in those |
years that a new governor is inaugurated, the new governor shall submit the request on or before |
the first Thursday in February. In the event that, prior to or subsequent to the request, the governor |
determines that additional deficiencies are expected to be incurred, the governor shall submit |
requests for additional appropriations upon notice of these deficiencies. |
(c) The request presented to the general assembly shall identify the proposed increases and |
decreases to the original amounts provided in the annual appropriation act provided, that no action |
shall be taken which that will cause an excess of appropriations for revenue expenditures over |
expected revenue receipts. |
35-3-24. Control of state spending. |
(a) All department and agency heads and their employees are responsible for ensuring that |
financial obligations and expenditures for which they have responsibility do not exceed amounts |
appropriated and are spent in accordance with state laws. |
(b) Persons with the authority to obligate the state contractually for goods and services |
shall be designated in writing by department and agency heads. |
(c) In the event of an obligation, encumbrance, or expenditure in excess of amounts |
appropriated, the department or agency head with oversight responsibility shall make a written |
determination of the amount and the cause of the overobligation or overexpenditure, the person(s) |
responsible, and corrective actions taken to prevent reoccurrence. The plan of corrective actions |
contained within the report shall detail an appropriate plan to include, but not limited to, such issues |
as the implementation of waiting lists, pro-rata reduction in payments and changes in eligibility |
criteria as methods to address the shortfall. The report will be filed within thirty (30) days of the |
discovery of the overobligation or overexpenditure with the budget officer, the controller, the |
auditor general, and the chairpersons of the house and senate finance committees. |
(d) In the event a quarterly report demonstrates an obligation, encumbrance, or expenditure |
in excess of amounts appropriated, the department or agency head with oversight responsibility |
shall file monthly budget reports with the chairpersons of the house and senate finance committees |
for the remainder of the fiscal year. The monthly budget reports shall detail steps taken towards |
corrective actions and other measures to bring spending in line with appropriations. In addition, the |
budget officer and controller shall ensure that the department’s or agency’s obligations, |
encumbrances, and expenditures for the remainder of the fiscal year result in the department or |
agency ending the fiscal year within amounts appropriated. |
(e) The controller shall not authorize payments for additional staff, contracts, or purchases |
for any department or agency not projected to end a fiscal year within amounts appropriated unless |
necessitated by immediate health and safety reasons, which shall be documented upon discovery |
and reported, along with anticipated or actual expenditures, to the chairpersons of the house and |
senate finance committees within fifteen (15) days. |
(d)(f) A state employee who has knowingly and willingly encumbered, obligated, or |
authorized the expenditure of state funds in excess of amounts appropriated for those purposes or |
entered into contracts without proper authorization may be placed on disciplinary suspension |
without pay for up to thirty (30) days in accordance with § 36-4-36. |
(e)(g) A state employee who knowingly, willfully, and repeatedly authorizes actions |
resulting in encumbrances or spending of state funds in excess of amounts appropriated may be |
fined up to one thousand dollars ($1,000) and/or terminated from employment. |
(h) Upon receipt of any budgetary information indicating an obligation, encumbrance, or |
expenditure in excess of the amounts appropriated, the chairperson of the house or senate finance |
committee may request a written report to be submitted by the director of administration within ten |
(10) calendar days. The report shall indicate if the obligation, encumbrance, or expenditure in |
excess of the amounts appropriated resulted in any disciplinary action or other penalty in |
accordance with subsection (f) or (g) of this section. If not, the report shall explain why no |
disciplinary action or other penalty was imposed in accordance subsection (f) or (g). |
SECTION 6. 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: |
Executive Office of Health and Human Services |
Organ Transplant Fund |
HIV Care Grant Drug Rebates |
Health System Transformation Project |
Department of Human Services |
Veterans' home -- Restricted account |
Veterans' home -- Resident benefits |
Pharmaceutical Rebates Account |
Demand Side Management Grants |
Veteran's Cemetery Memorial Fund |
Donations -- New Veterans' Home Construction |
Department of Health |
Pandemic medications and equipment account |
Miscellaneous Donations/Grants from Non-Profits |
State Loan Repayment Match |
Healthcare Information Technology |
Department of Behavioral Healthcare, Developmental Disabilities and Hospitals |
Eleanor Slater non-Medicaid third-party payor account |
Hospital Medicare Part D Receipts |
RICLAS Group Home Operations |
Commission on the Deaf and Hard of Hearing |
Emergency and public communication access account |
Department of Environmental Management |
National heritage revolving fund |
Environmental response fund II |
Underground storage tanks registration fees |
De Coppet Estate Fund |
Rhode Island Historical Preservation and Heritage Commission |
Historic preservation revolving loan fund |
Historic Preservation loan fund -- Interest revenue |
Department of Public Safety |
E-911 Uniform Emergency Telephone System |
Forfeited property -- Retained |
Forfeitures -- Federal |
Forfeited property -- Gambling |
Donation -- Polygraph and Law Enforcement Training |
Rhode Island State Firefighter's League Training Account |
Fire Academy Training Fees Account |
Attorney General |
Forfeiture of property |
Federal forfeitures |
Attorney General multi-state account |
Forfeited property -- Gambling |
Department of Administration |
OER Reconciliation Funding |
Health Insurance Market Integrity Fund |
RI Health Benefits Exchange |
Information Technology Investment Fund |
Restore and replacement -- Insurance coverage |
Convention Center Authority rental payments |
Investment Receipts -- TANS |
OPEB System Restricted Receipt Account |
Car Rental Tax/Surcharge-Warwick Share |
Executive Office of Commerce |
Housing Resources Commission Restricted Account |
Department of Revenue |
DMV Modernization Project |
Jobs Tax Credit Redemption Fund |
Legislature |
Audit of federal assisted programs |
Department of Children, Youth and Families |
Children's Trust Accounts -- SSI |
Military Staff |
RI Military Family Relief Fund |
RI National Guard Counterdrug Program |
Treasury |
Admin. Expenses -- State Retirement System |
Retirement -- Treasury Investment Options |
Defined Contribution -- Administration - RR |
Violent Crimes Compensation -- Refunds |
Treasury Research Fellowship |
Business Regulation |
Banking Division Reimbursement Account |
Office of the Health Insurance Commissioner Reimbursement Account |
Securities Division Reimbursement Account |
Commercial Licensing and Racing and Athletics Division Reimbursement Account |
Insurance Division Reimbursement Account |
Historic Preservation Tax Credit Account |
Judiciary |
Arbitration Fund Restricted Receipt Account |
Third-Party Grants |
RI Judiciary Technology Surcharge Account |
Department of Elementary and Secondary Education |
Statewide Student Transportation Services Account |
School for the Deaf Fee-for-Service Account |
School for the Deaf -- School Breakfast and Lunch Program |
Davies Career and Technical School Local Education Aid Account |
Davies -- National School Breakfast & Lunch Program |
School Construction Services |
Office of the Postsecondary Commissioner |
Higher Education and Industry Center |
Department of Labor and Training |
Job Development Fund |
SECTION 7. Section 39-1-62 of the General Laws in Chapter 39-1 entitled "Public Utilities |
Commission" is hereby repealed. |
39-1-62. Geographic information system (GIS) and technology fund. |
(a) Preamble. To allow Rhode Island emergency and first response agencies 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. |
GIS and technology fund also includes programs and funding to create system redundancy, fund |
the construction of a new E-911 facility, and operate and maintain other state-of-the-art equipment |
in public safety agencies. |
(5) "Prepaid wireless telecommunications service" means a wireless telecommunications |
service that allows a caller to dial 911 to access the 911 system, which service must be paid for in |
advance and is sold in predetermined units or dollars of which the number declines with use in a |
known amount. |
(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 § 42-11-10(g)(3); |
(2) Create system redundancy to ensure the reliability of 9-1-1 service to the public; |
(3) Operate and maintain other state-of-the-art equipment in public safety agencies; |
(4) Fund the construction of a new E-911 facility; and |
(5) Encourage the development of opportunities for and agreements on the sharing and |
integration of services across municipalities in the implementation of the E-911 uniform emergency |
telephone system. |
(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 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 uniform emergency |
telephone system. Prepaid wireless E911 telecommunications services shall not be included in this |
act, but shall be governed by chapter 21.2 of this title. 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 § 39-21.1-3, which shall not include prepaid wireless |
telecommunications service, and shall be payable to the wireless telecommunications services |
provider by the subscriber 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, 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 the rate set |
forth in § 44-1-7 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). Beginning July 1, |
2007, the surcharge shall be deposited in the general fund as general revenues to pay any and all |
costs associated with the provisions of subsection (c). The GIS and technology fund restricted- |
receipt account shall be terminated June 30, 2008. 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 ($.26) per wireless phone, |
cellular, telephony, voice over internet protocol (VoIP), satellite, computer, data or data only |
wireless lines or internet communication or data instrument, device, or means that has access to, |
connects with, activates or interfaces with or any combination of the above, with the Rhode Island |
E-911 uniform emergency telephone system per month and shall be in addition to the wireless |
surcharge charged under § 39-21.1-14. The twenty-six cents ($.26) is to be billed to all wireless |
telecommunication service providers' subscribers 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) [Deleted by P.L. 2010, ch. 23, art. 9, § 10]. |
(e) Administration. The division of taxation shall collect monthly from the wireless |
telecommunications service providers as defined in § 39-21.1-3, and which shall not include |
prepaid wireless telecommunications service, the amounts of the surcharge collected from their |
subscribers. The division of taxation shall deposit such collections in the general fund as general |
revenues for use in developing and maintaining the geographic information system database, |
creating system redundancy, funding the construction of a new E-911 facility, and operating and |
maintaining other state-of-the-art equipment for public safety agencies. 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) Effective date. 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 § |
39-21.1-3(12) providing communication services to enforce the provisions of this chapter. |
SECTION 8. 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. Emergency services and first response surcharge Emergency services E- |
911 surcharge and first response surcharge. |
(a)(i) (1) A monthly E-911 surcharge of one dollar ($1.00) fifty cents ($.50) cents 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). In each instance where a surcharge is levied pursuant to this subsection (a)(1) above |
there shall also be a monthly first response surcharge of fifty cents ($.50). The surcharge surcharges |
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. |
(ii) (2) A monthly E-911 surcharge of one dollar ($1.00) fifty cents ($.50) 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 that has access |
to, connects with, or activates or interfaces or any combination thereof with the E 9-1-1 -911 |
uniform emergency telephone system. In each instance where a surcharge is levied pursuant to this |
subsection (a)(ii) above there shall also be a monthly first response surcharge of seventy-five cents |
($.75). The surcharge surcharges 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. Prepaid wireless telecommunications |
services shall not be included in this act, but shall be governed by chapter 21.2 of this title. 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 surcharges 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 surcharges 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 division of taxation, together with the accrued interest , and. The |
E-911 surcharge shall be deposited in the general fund as general revenue a restricted-receipt |
account and used solely for the operation of the E-911 uniform emergency telephone system;. The |
first response surcharge shall be deposited in the general fund; provided, however, that beginning |
July 1, 2015, ten percent (10%) of such money collected from the first response surcharge shall be |
deposited in the information technology investment fund established pursuant to § 42-11-2.5. Any |
money not transferred in accordance with this paragraph shall be assessed interest at the rate set |
forth in § 44-1-7 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 shall 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 -911 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 E-911 surcharge. |
(g) Included within, but not limited to, the purposes for which the money collected from |
the E-911 surcharge may be used are rent, lease, purchase, improvement, construction, |
maintenance, repair, and utilities for the equipment and site or sites occupied by the state's first |
responder and emergency services agencies E-911 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 -911information, including necessary computer |
hardware, software, and database provisioning, addressing, and non-recurring costs of establishing |
emergency services; network development, operation, and maintenance; database development, |
operation, and maintenance; on-premise equipment maintenance and operation; training emergency |
service personnel regarding use of E 9-1-1 -911; educating consumers regarding the operations, |
limitations, role, and responsible use of E 9-1-1 -911; 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 -911services as approved by the division; |
reimbursement to telecommunication services providers or telephone common carriers of other |
costs associated with providing E 9-1-1 -911services, including the cost of the design, development, |
and implementation of equipment or software necessary to provide E 9-1-1 -911service 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) [Deleted by P.L. 2006, ch. 246, art. 4, § 1]. |
SECTION 9. Sections 39-21.2-2, 39-21.2-4 and 39-21.2-5 of the General Laws in Chapter |
39-21.2 entitled "Prepaid Wireless Charge Act" are hereby amended to read as follows: |
39-21.2-2. Findings. |
The legislature finds that: |
(1) Maintaining effective and efficient emergency services and first responder agencies |
across the state benefits all citizens; |
(2) 911 fees imposed upon the consumers of telecommunications services that have the |
ability to dial 911 are an important funding mechanism to assist state and local governments with |
the deployment of emergency services to the citizens of this state; |
(3) Prepaid wireless telecommunication services are an important segment of the |
telecommunications industry and have proven particularly attractive to low-income, low-volume |
consumers; |
(4) Unlike traditional telecommunications services, prepaid wireless telecommunications |
services are not sold or used pursuant to term contracts or subscriptions, and monthly bills are not |
sent to consumers by prepaid wireless telecommunication services providers or retail vendors; |
(5) Prepaid wireless consumers have the same access to emergency 911 services from their |
wireless devices as wireless consumers on term contracts, and prepaid wireless consumers benefit |
from the ability to access the 911 system by dialing 911; |
(6) Consumers purchase prepaid wireless telecommunication services at a wide variety of |
general retail locations and other distribution channels, not just through service providers; |
(7) Such purchases are made on a "cash-and-carry" or "pay-as-you-go" basis from retailers; |
and |
(8) To ensure equitable contributions to the funding of emergency systems from consumers |
of prepaid wireless telecommunication services, the collection and payment obligation of charges |
to support the state's first responder and emergency services E-911 should be imposed upon the |
consumer's retail purchase of the prepaid wireless telecommunication service and should be in the |
form of a single, statewide charge that is collected once at the time of purchase directly from the |
consumer, remitted to the state, and distributed to E911 authorities pursuant to state law. |
39-21.2-4. Emergency services and first response surcharge E-911 surcharge. |
(a) Amount of charge. The prepaid wireless E-911 charge is hereby levied at the rate of |
two and one-half percent (2.5%) per retail transaction or, on and after the effective date of an |
adjusted amount per retail transaction that is established under subsection (f) of this section, such |
adjusted amount. |
(b) Collection of charge. The prepaid wireless charge shall be collected by the seller from |
the consumer with respect to each retail transaction occurring in this state. The amount of the |
prepaid wireless charge shall be either separately stated on an invoice, receipt, or other similar |
document that is provided to the consumer by the seller, or otherwise disclosed to the consumer. |
(c) Application of charge. For purposes of subsection (b) of this section, a retail transaction |
that is effected in person by a consumer at a business location of the seller shall be treated as |
occurring in this state if that business location is in this state, and any other retail transaction shall |
be treated as occurring in this state if the retail transaction is treated as occurring in this state for |
purposes of chapter 18 of title 44. |
(d) Liability for charge. The prepaid wireless charge is the liability of the consumer and |
not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless |
charges that the seller collects from consumers as provided in § 39-21.2-5, including all such |
charges that the seller is deemed to collect where the amount of the charge has not been separately |
stated on an invoice, receipt, or other similar document provided to the consumer by the seller. |
(e) Exclusion of charge from base of other taxes and fees. The amount of the prepaid |
wireless charge that is collected by a seller from a consumer, if such amount is separately stated on |
an invoice, receipt, or other similar document provided to the consumer by the seller, shall not be |
included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this |
state, any political subdivision of this state, or any intergovernmental agency, including, but not |
limited 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. |
(f) Re-setting of charge. The prepaid wireless charge shall be proportionately increased or |
reduced, as applicable, upon any change to the state charge on postpaid wireless |
telecommunications service under § 39-21.1-14 or § 39-1-62(d)(2). The adjusted amount shall be |
determined by dividing the sum of the surcharges imposed under § 39-21.1-14 and § 39-1-62(d)(2) |
by fifty dollars ($50.00). Such increase or reduction shall be effective on the effective date of the |
change to the postpaid charge or, if later, the first day of the first calendar month to occur at least |
sixty (60) days after the enactment of the change to the postpaid charge. The division shall provide |
not less than thirty (30) days of advance notice of such increase or reduction on the division's |
website. |
(g)(f) (g) Bundled transactions. When prepaid wireless telecommunications service is sold |
with one or more other products or services for a single, non-itemized price, then the percentage |
specified in subsection (a) of this section shall apply to the entire non-itemized prices unless the |
seller elects to apply such percentage (1) If the amount of prepaid wireless telecommunications |
service is disclosed to the consumer as a dollar amount, such dollar amount, or (2) If the retailer |
can identify the portion of the price that is attributable to the prepaid wireless telecommunications |
service, by reasonable and verifiable standards 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, such |
portion. |
However, if a minimal amount of prepaid wireless telecommunications service is sold with |
a prepaid wireless device for a single, non-itemized price, then the seller may elect not to apply the |
percentage specified in subsection (a) of this section to such transaction. For purposes of this |
paragraph, an amount of service denominated as ten (10) minutes or less, or five dollars ($5.00) or |
less, is minimal. |
39-21.2-5. Administration of E-911 charge. |
(a) Time and manner of payment. Prepaid wireless E-911 charges collected by sellers shall |
be remitted to the division at the times and in the manner provided by the streamlined sales and use |
tax as described in § 44-18.1-34. The division shall establish registration and payment procedures |
that substantially coincide with the registration and payment procedures that apply to the |
streamlined sales and use tax. |
(b) Seller administrative deduction. A seller shall be permitted to deduct and retain one |
percent (1%) of prepaid wireless E-911 charges that are collected by the seller from consumers. |
(c) Audit and appeal procedures. The audit and appeal procedures applicable to sales and |
use tax under § 44-19-18 of the general laws shall apply to prepaid wireless E-911 charges. |
(d) Exemption documentation. The division shall establish procedures by which a seller of |
prepaid wireless telecommunications service may document that a sale is not a retail transaction, |
which procedures shall substantially coincide with the procedures form documenting sale for resale |
transactions for sales tax purposes under § 44-19-18 of the general laws. |
(e) All E-911 fees collected pursuant to this section shall be deposited as general revenues |
in a restricted-receipt account and used solely for the operation of the E 9-1-1 uniform emergency |
telephone system. |
SECTION 10. Section 42-7.2-10 of the General Laws in Chapter 42-7.2 entitled "Office of |
Health and Human Services" is hereby amended to read as follows: |
42-7.2-10. Appropriations and disbursements. |
(a) 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 or her orders upon the general treasurer for the payment of such |
sum or sums, or so much thereof as may from time to time be required, upon receipt by him or her |
of proper vouchers approved by the secretary of the executive office of health and human services, |
or his or her designee. |
(b) For the purpose of recording federal financial participation associated with qualifying |
healthcare workforce development activities at the state’s public institutions of higher education, |
and pursuant to the Rhode Island Designated designated State state Health health Programs |
programs (DSHP), as approved by CMS centers for medicare & medicaid services (CMC) |
October 20, 2016, in the 11-W-00242/1 amendment to Rhode Island’s section 1115 Demonstration |
Waiver, there is hereby established a restricted-receipt account entitled “Health System |
Transformation Project” in the general fund of the state and included in the budget of the office of |
health and human services. |
SECTION 11. Section 42-9-19 of the General Laws in Chapter 42-19 entitled "Department |
of Attorney General" is hereby amended to read as follows: |
42-9-19. Acceptance of settlements - Attorney General settlement restricted account. |
(a) The attorney general is hereby authorized and empowered to accept in the name of the |
state any settlement resulting from a multi-state initiative. The attorney general is additionally |
authorized and empowered to recover attorneys' fees and costs which that shall be considered |
settlement proceeds for purposes of this chapter. |
(b) Such The settlement proceeds shall be transferred to the general treasurer for deposit |
in the general fund. The general treasurer shall transfer ten percent (10%) of such proceeds, up to |
sixty five thousand dollars ($65,000) in any fiscal year, to the "attorney general multi-state initiative |
restricted-receipt account." The restricted- receipt account shall be used solely to pay for any fees |
or membership dues staff, operational, and litigation costs associated with multi-state initiatives. |
(c) Expenditure of all settlement proceeds accepted by the attorney general as part of the |
terms of the relevant master settlement agreement shall be subject to the annual appropriation |
process and approval by the general assembly. |
SECTION 12. Section 42-11-2.5 of the General Laws in Chapter 42-11 entitled |
"Department of Administration" is hereby amended to read as follows: |
42-11-2.5. Information technology investment fund. |
(a) All sums from the sale of any land and the buildings and improvements thereon, and |
other real property, title to which is vested in the state, except as provided in §§ 37-7-15(b) and 37- |
7-15(c), shall be transferred to an information technology investment fund restricted-receipt |
account that is hereby established. This fund shall consist of such sums from the sale of any land |
and the buildings and improvements thereon, and other real property, title to which is vested in the |
state, except as provided in §§ 37-7-15(b) and 37-7-15(c), as well as a share of emergency services |
and first response surcharge revenues collected under the provisions of § 39-21.1-14. This fund |
may also consist of such sums as the state may from time to time appropriate; as well as money |
received from the disposal of information technology equipment, loan, interest, and service charge |
payments from benefiting state agencies; as well as interest earnings, money received from the |
federal government, gifts, bequest, donations, or otherwise from any public or private source. Any |
such funds shall be exempt from the indirect cost recovery provisions of § 35-4-27. |
(b) This fund shall be used for the purpose of acquiring information technology |
improvements, including, but not limited to: hardware, software, consulting services, and ongoing |
maintenance and upgrade contracts for state departments and agencies. |
(c) The division of enterprise technology strategy and service of the Rhode Island |
department of administration shall adopt rules and regulations consistent with the purposes of this |
chapter and chapter 35 of this title 42, in order to provide for the orderly and equitable |
disbursement of funds from this account. |
(d) For all requests for proposals that are issued for information technology projects, a |
corresponding information technology project manager shall be assigned. |
SECTION 13. Sections 7, 8, 9 and 12 shall take effect October 1, 2019. The remaining |
sections of this article shall take effect upon passage. |