| Chapter 403 |
| 2024 -- H 8325 SUBSTITUTE A Enacted 06/26/2024 |
| A N A C T |
| RELATING TO STATUTES AND STATUTORY CONSTRUCTION |
Introduced By: Representatives Blazejewski, and Chippendale |
| Date Introduced: May 30, 2024 |
| It is enacted by the General Assembly as follows: |
| ARTICLE I -- STATUTORY REENACTMENT |
| SECTION 1. It is the express intention of the General Assembly to reenact the entirety of |
| Chapters 49 to the end of Title 42 of the General Laws of Rhode Island, including every chapter |
| and section therein and any chapters and sections thereof not included in this act may be, and are |
| hereby, reenacted as if fully set forth herein. |
| SECTION 2. Section 42-61-14 of the General Laws in Chapter 42-61 entitled "State |
| Lottery" is hereby amended to read as follows: |
| 42-61-14. Payment of prizes to minors and persons under legal disabilities. |
| (a) If the person entitled to a prize or any winning ticket is under the age of eighteen (18) |
| years, the director shall direct payment to the minor by depositing the amount of the prize in any |
| financial institution to the credit of a member of the minor’s family or legal guardian of the minor |
| as custodian for that minor. The person named as custodian shall have the same duties and powers |
| as a person designated as a custodian in a manner prescribed by the “Rhode Island Uniform Gifts |
| to Minors Act” “Rhode Island Uniform Transfers to Minors Act”. |
| (b) If a person entitled to a prize or any winning ticket is under any other legal disability, |
| the director shall direct payment to a fiduciary responsible for that person pursuant to the laws of |
| this state. |
| (c) The director shall be relieved of all further liability upon payment of a prize to a minor |
| or person under a legal disability pursuant to this section. |
| SECTION 3. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism |
| and Development" is hereby amended to read as follows: |
| 42-63.1-3. Distribution of tax. |
| (a) For returns and tax payments received on or before December 31, 2015, except as |
| provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax |
| collected from residential units offered for tourist or transient use through a hosting platform, shall |
| be distributed as follows by the division of taxation and the city of Newport: |
| (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as |
| otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel |
| is located; provided, however, that from the tax generated by the hotels in the city of Warwick, |
| thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district |
| established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater |
| Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided |
| further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) |
| of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau |
| established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the |
| Convention Authority of the city of Providence established pursuant to the provisions of chapter |
| 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the |
| district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts |
| attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island |
| commerce corporation as established in chapter 64 of this title. |
| (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the |
| hotel that generated the tax is physically located, to be used for whatever purpose the city or town |
| decides. |
| (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce |
| corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence- |
| Warwick Convention and Visitors’ Bureau. |
| (b) For returns and tax payments received after December 31, 2015, except as provided in |
| § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from |
| residential units offered for tourist or transient use through a hosting platform, shall be distributed |
| as follows by the division of taxation and the city of Newport: |
| (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- |
| 63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty- |
| five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is |
| physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of |
| the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this |
| title. |
| (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, |
| twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent |
| (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically |
| located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall |
| be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, |
| twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent |
| (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically |
| located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall |
| be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, |
| twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated |
| the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- |
| Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) |
| of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this |
| title. |
| (5) With respect to the tax generated by hotels in districts other than those set forth in |
| subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given |
| to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five |
| percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is |
| physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax |
| shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax |
| collected from residential units offered for tourist or transient use through a hosting platform shall |
| be distributed as follows by the division of taxation and the city of Newport: twenty-five percent |
| (25%) of the tax shall be given to the city or town where the residential unit that generated the tax |
| is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island |
| commerce corporation established in chapter 64 of this title. |
| (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend |
| on the promotion and marketing of Rhode Island as a destination for tourists or businesses an |
| amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this |
| chapter for the fiscal year. |
| (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments |
| received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1- |
| 12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential |
| units offered for tourist or transient use through a hosting platform, shall be distributed in |
| accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this |
| section by the division of taxation and the city of Newport. |
| (f) For returns and tax payments received on or after July 1, 2018, except as provided in § |
| 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from |
| residential units offered for tourist or transient use through a hosting platform, shall be distributed |
| as follows by the division of taxation and the city of Newport: |
| (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- |
| 63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty- |
| five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is |
| physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the |
| tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, |
| thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) |
| of the tax shall be given to the city or town where the hotel that generated the tax is physically |
| located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall |
| be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, |
| thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) |
| of the tax shall be given to the city or town where the hotel that generated the tax is physically |
| located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall |
| be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, |
| twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated |
| the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- |
| Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) |
| of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this |
| title. |
| (5) With respect to the tax generated by hotels in districts other than those set forth in |
| subsections (b)(1) (f)(1) through (b)(4) (f)(4) of this section, forty-five percent (45%) of the tax |
| shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, |
| twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated |
| the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- |
| Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of |
| the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this |
| title. |
| (g) For returns and tax payments received on or after July 1, 2019, except as provided in § |
| 42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from |
| residential units offered for tourist or transient use through a hosting platform, shall be distributed |
| as follows by the division of taxation and the city of Newport: |
| (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty- |
| five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent |
| (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated |
| the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- |
| Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent |
| (25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter |
| 64 of this title. |
| (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent |
| (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall |
| be given to the city or town where the hotel or residential unit that generated the tax is physically |
| located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the |
| tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent |
| (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall |
| be given to the city or town where the hotel or residential unit that generated the tax is physically |
| located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick |
| Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the |
| tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. |
| (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five |
| percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that |
| generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater |
| Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy |
| percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in |
| chapter 64 of this title. |
| (5) With respect to the tax generated in districts other than those set forth in subsections |
| (g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional |
| tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty- |
| five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit |
| that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater |
| Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five |
| percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in |
| chapter 64 of this title. |
| SECTION 4. Section 42-63.1-14 of the General Laws in Chapter 42-63.1 entitled "Tourism |
| and Development" is hereby amended to read as follows: |
| 42-63.1-14. Offering residential units through a hosting platform. |
| (a) For any rental property offered for tourist or transient use on a hosting platform that |
| collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44- |
| 18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering |
| the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform |
| from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit |
| for tourist or transient use. A hosting platform shall comply with the requirement imposed upon |
| room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to |
| apply. The division of taxation shall at the request of a city, town, or municipality confirm whether |
| a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i). |
| (b) Any short-term rental property listed for rent on the website of any third-party hosting |
| platform that conducts business in Rhode Island shall be registered with the department of business |
| regulation. The registration shall provide the information necessary to identify the property |
| pursuant to subsection (d) of this section. For purposes of this section, the term “short-term rental” |
| means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to |
| exceed thirty (30) nights at a time. |
| (c) The department of business regulation shall contact all hosting platforms that list |
| property in Rhode Island on their website for rent and that submit hotel taxes to the division of |
| taxation and shall provide notice of the registration requirement, pursuant to this section, instructing |
| the hosting platforms to notify their listed properties to register with the department of business |
| regulation by December 31, 2021, or be subject to fines pursuant to § 42-63.1-14.1 subsection (i) |
| of this section. |
| (d) The state registration pursuant to this section shall include: |
| (1) The principal place of business of the owner, or if outside the state, the agent for service |
| of process or property manager for the owner; |
| (2) The phone number of the owner of the property and/or property manager; |
| (3) The email address of the property owner and/or property manager; |
| (4) The address of the rental property; |
| (5) The number of rooms for rent at the property; |
| (6) Whether the registrant rents or owns; and |
| (7) Intended use (entire space, private room, or shared space). |
| (e) The assigned registration number shall consist of numeric and alpha characters, the |
| alpha characters shall correspond to the city/town where the property is located and shall be uniform |
| for the remaining properties in said city/town. |
| (f) The department of business regulation shall notify all hosting platforms to contact all |
| listed properties by December 31, 2021, to ensure compliance with this section and if the listed |
| properties are not duly registered after six (6) months, the hosting platform shall remove the |
| property listing from its website. |
| (g) The department of business regulation shall promulgate rules and regulations to |
| correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to |
| property owners registering with the department pursuant to this section. |
| (h) The department of business regulation shall create an online database to store all |
| registered short-term rental units, and each unit shall have an online identification number in said |
| database to correspond with subsection (e) of this section. |
| (i) Any owner of the property who or that fails to register with the department of business |
| regulation as prescribed herein and lists the property as a short-term rental on a hosting platform |
| website shall be subject to a civil fine as follows: |
| (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-compliance; |
| (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non- |
| compliance; and |
| (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance. |
| SECTION 5. Section 42-64.10-4 of the General Laws in Chapter 42-64.10 entitled |
| "Quonset Development Corporation" is hereby amended to read as follows: |
| 42-64.10-4. Definitions. |
| (a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-64-4 |
| 42-64-3 unless this chapter provides a different meaning or unless the context indicates a different |
| meaning or intent. |
| (b) Within this chapter, the following words and terms shall have the following meanings |
| unless the context indicates a different meaning or intent: |
| (1) “Board” means the board of directors of the corporation. |
| (2) “Chairperson” means the chairperson of the board of directors of the corporation. |
| (3) “Corporation” means the Quonset Development Corporation. |
| (4) “Quonset Business Park” means former Navy lands in the town of North Kingstown, |
| and lands related thereto, and personal property thereon, which are or have been owned, leased, |
| managed and/or under the control of the economic development corporation. |
| SECTION 6. Section 42-64.10-7 of the General Laws in Chapter 42-64.10 entitled |
| "Quonset Development Corporation" is hereby amended to read as follows: |
| 42-64.10-7. Directors, officers and employees. |
| (a) Directors. |
| (1) The powers of the corporation shall be vested in a board of directors consisting of eleven |
| (11) members. The membership of the board shall consist of the executive director of the Rhode |
| Island economic development corporation as chairperson, (who shall vote only in the event of a |
| tie), six (6) members appointed by the governor, with the advice and consent of the senate, two (2) |
| members appointed by the town council of the town of North Kingstown, one member appointed |
| by the town council of the town of Jamestown, and one member appointed by the town council of |
| the town of East Greenwich. The initial members of the board shall be divided into three (3) classes |
| and shall serve initial terms on the board of directors as follows: two (2) of the directors appointed |
| by the governor; and one of the directors appointed by the town council of the town of North |
| Kingstown shall be appointed for an initial term of one year; two (2) of the directors appointed by |
| the governor, one director appointed by the town council of the town of North Kingstown and the |
| director appointed by the town of East Greenwich shall be appointed for an initial term of two (2) |
| years; and two (2) of the directors appointed by the governor and one director appointed by the |
| town of Jamestown shall be appointed for an initial term of three (3) years. Upon expiration of each |
| initial term and upon the expiration of each term thereafter, a successor shall be appointed by the |
| same authority that made the initial appointment, and in the case of appointments by the governor |
| with the advice and consent of the senate, to serve for a term of three (3) years so that members of |
| the board of directors shall serve for staggered terms of three (3) years each. A vacancy on the |
| board, other than by expiration, shall be filled in the same manner as an original appointment, but |
| only for the unexpired portion of the term. If a vacancy occurs with respect to one of the directors |
| appointed by the governor when the senate is not in session, the governor shall appoint a person to |
| fill the vacancy, but only until the senate shall next convene and give its advice and consent to a |
| new appointment. A member shall be eligible to succeed himself or herself. Appointed directors |
| shall not serve more than two (2) successive three (3) year terms but may be reappointed after not |
| being a director for a period of at least twelve (12) months. Each appointed director shall hold office |
| for the term for which the director is appointed and until the director’s successor shall have been |
| appointed and qualified, or until the director’s earlier death, resignation or removal. Except for |
| members of the town council of the town of North Kingstown, who may serve as members of the |
| board of directors, no director shall be an elected official of any governmental entity. |
| (2) The directors shall receive no compensation for the performance of their duties under |
| this chapter, but each director shall be reimbursed for his or her reasonable expenses incurred in |
| carrying out those duties. A director may engage in private employment, or in a profession or |
| business. |
| (3) Meetings. An annual meeting of the directors shall be held during the month of October |
| of each year for the purposes of electing and appointing officers and reviewing and considering for |
| approval the budget of the corporation. Regular meetings of the directors shall be held at least once |
| in each calendar quarter, at the call of the chairperson or secretary, or in accordance with an annual |
| schedule of meetings adopted by the board. Special meetings may be called for any purposes by |
| the chairperson or the secretary and as provided for in the bylaws of the corporation. |
| (4) A majority of the directors then in office, but not less than five (5) directors, shall |
| constitute a quorum, and any action to be taken by the corporation under the provisions of this |
| chapter, may be authorized by resolution approved by a majority of the directors present and |
| entitled to a vote at any regular or special meeting at which a quorum is present. A vacancy in the |
| membership of the board of directors shall not impair the right of a quorum to exercise all of the |
| rights and perform all of the duties of the corporation. |
| (5) Any action taken by the corporation under the provisions of this chapter may be |
| authorized by a vote at any regular or special meeting, and each vote shall take effect immediately. |
| (6) The board of directors shall establish an audit committee and a governance committee, |
| which shall advise: (i) the board with the respect to the best practices of governance; and (ii) the |
| board, members of the board, and officers with respect to conflicts of interest, corporate ethics and |
| responsibilities, and the maintenance of the public trust; the members of the audit committee and |
| the governance committee shall be appointed by the chairperson with the advice of the board of |
| directors. In addition to the audit and the governance committee, the board may establish bylaw or |
| with the approval of the chairperson such other committees as it deems appropriate. |
| (7) The board shall prescribe the application of the cash flow of the corporation, in the |
| following order of priority: |
| (i) To debt service, including without limitation, sinking funds established in connection |
| with any financing; |
| (ii) To operating expenses; |
| (iii) To capital expenses; |
| (iv) To reserve funds as may be established by the board, from time to time; and |
| (v) To the economic development corporation for application to statewide economic |
| development. |
| (8) The board shall establish by bylaw limits on the expenditure of corporation funds |
| without approval of the board. |
| (9) The approval of the board shall be required for any recommendation to the economic |
| development corporation board of directors for the issuance of bonds or notes or borrowing money |
| on behalf of the corporation or for the exercise of eminent domain on behalf of the corporation. |
| (b) Officers. The officers of the corporation shall include a chairperson, a managing |
| director who shall be the chief executive officer of the corporation, a vice-chairperson, a secretary, |
| and a finance director, as herein provided, and such other officers as the board may from time to |
| time establish. |
| (1) Chairperson. The executive director of the economic development corporation shall be |
| the chairperson of the board and shall appoint the managing director with the concurrence of the |
| board, appoint committee members, approve the corporation’s annual operating and capital budget, |
| approve land sale prices, lease rents, and economic development incentives, and approve numbers |
| and types of employees and staff of the corporation, and preside at meetings of the board. |
| (2) Managing director. The chief executive officer of the corporation shall be managing |
| director of the corporation, who shall be appointed by the chairperson with the concurrence of the |
| board. The managing director of the corporation shall be entitled to receive for his or her services |
| any reasonable compensation as the board of directors may determine. The board of directors may |
| vest in the managing director the authority to appoint staff members and to determine the amount |
| of compensation each individual shall receive. |
| (3) Vice-chairperson. The board of directors shall from among its members elect a vice- |
| chairperson who shall preside at meetings in the absence of the chairperson and have such other |
| duties and powers as the directors may from time to time prescribe. |
| (4) Other officers. The board shall appoint a secretary, a director of finance, the duties of |
| whom shall be prescribed in the bylaws of the corporation, and such additional officers and staff |
| members as they shall deem appropriate and shall determine the amount of reasonable |
| compensation, if any, each shall receive. |
| (5) With the exception of the chairperson, any number of offices may be held by the same |
| person, unless the bylaws provide otherwise. |
| (c) Employees. |
| (1) The corporation may have such numbers and types of employees as the board, with the |
| approval of the chairperson, shall determine upon the recommendation of the managing director. |
| The board, upon the recommendation of the managing director, may authorize entering into |
| agreements with the economic development corporation for any duties or functions to be performed |
| by employees, staff, or agents of the corporation. |
| (2) No full-time employee of the corporation shall, during the period of his or her |
| employment by the corporation, engage in any other private employment, profession or business, |
| except with the approval of the board of directors. |
| (3) Employees of the corporation shall not, by reason of their employment, be deemed to |
| be employees of the state for any purpose, any other provision of the general laws to the contrary |
| notwithstanding, including, without limiting, the generality of the foregoing, chapters 29, 39, and |
| 42 of title 28 and chapters 4, 8, 9, and 10 of title 36. |
| SECTION 7. Section 42-64.13-8 of the General Laws in Chapter 42-64.13 entitled "Rhode |
| Island Regulatory Reform Act" is hereby amended to read as follows: |
| 42-64.13-8. Regulatory analysis responsibilities. |
| The office of regulatory reform shall have the following regulatory analysis and reporting |
| responsibilities: |
| (1) The office of regulatory reform shall, upon the conclusion of each fiscal year, prepare |
| and publish a report on the regulatory processes of state and municipal agencies and permitting |
| authorities through a review and an analysis of proposed and existing rules and regulations to: (i) |
| Encourage agencies to eliminate, consolidate, simplify, expedite, or otherwise improve permits, |
| permitting procedures, and paperwork burdens affecting businesses, municipal government |
| undertakings, industries, and other matters of economic development impact in the state; (ii) |
| Analyze the impact of proposed and existing rules and regulations on matters such as public health, |
| safety and welfare, including job creation, and make recommendations for simplifying regulations |
| and regulatory processes of state and municipal agencies and permitting authorities; (iii) Propose |
| to any state or municipal agency consideration for amendment or repeal of any existing rules or |
| procedures that may be obsolete, harmful to the economy or job growth in the state, or excessively |
| burdensome with respect to any state or federal statutes or regulations; and (iv) Assist and |
| coordinate with all agencies during the periodic review of rules required by § 42-35-3.4 of the |
| administrative procedures act. |
| (2) The ombudsman of the department of business regulation shall implement the |
| provisions of § 42-35.1-1 chapter 35.1 of this title 42, entitled small business regulatory fairness |
| and in administrative procedures, and shall be the small business regulatory enforcement office |
| officer pursuant to § 42-35.1-5. |
| SECTION 8. Section 42-64.14-13 of the General Laws in Chapter 42-64.14 entitled "The |
| I-195 Redevelopment Act of 2011" is hereby amended to read as follows: |
| 42-64.14-13. Planning, permitting, appeals and development. |
| (a) The commission shall exercise its powers in a manner consistent with development |
| plans approved for the I-195 redevelopment district by the commission. Such plans may be |
| prepared without limitation by the commission in order to achieve the purposes of this chapter. |
| Development in the district, whether by the commission or otherwise shall be subject to the plans |
| prepared by the commission and the commission plans shall be consistent with the city of |
| Providence comprehensive plan adopted by the city pursuant to 45-22-2.1 § 45-22.2-1 et seq. and |
| the city of Providence zoning ordinances pursuant to § 45-24-27 et seq. as previously enacted by |
| the city of Providence, and as may be enacted be enacted and/or amended from time to time through |
| July 1, 2012, or enacted thereafter with the consent of the commission. Approved plans for the I- |
| 195 redevelopment district may be considered, in whole or part as appropriate, for adoption as an |
| element of the state guide plan by the state planning council, but shall not be subject to the state |
| guide plan or any other approval provisions related thereto. |
| (b) The commission shall serve as the sole permitting authority for all development within |
| the district, as defined in § 37-5-7 37-5-8, pursuant to the powers granted to the commission by §§ |
| 42-64.14-7 and 42-64.14-8 of this chapter. The state fire marshal and the state building code |
| commissioner shall issue any necessary permits related to fire safety and building code compliance |
| respectively. The commission shall seek the cooperation of the state building code commissioner |
| and the state fire marshal to expedite all necessary permits and approvals for development within |
| the district. |
| (c) The commission shall have authority to approve and/or mandate an accelerated plan |
| review process, which may include the implementation of phased and/or fast-track development, |
| which is defined as the initiation of development prior to final issuance of all permits and approvals |
| and/or the completion of final project design and construction plans. |
| (d) The commission shall create for the redevelopment of its properties and parcels sold by |
| its design guidelines in consultation with the state historic preservation officer. |
| (e) All appeals timely filed pursuant to chapter 42-35 of the general laws 35 of this title |
| 42 entitled the Administrative Procedures Act with the Rhode Island superior court relative to |
| permits and approvals shall be accelerated and given priority and advanced on the calendar of the |
| Rhode Island superior court. |
| (f) Under no circumstances shall the commission establish, authorize, zone, plan, or permit |
| in the district a so-called “casino” or any form of gambling, including but not limited to those |
| activities governed by title 41 of the Rhode Island general laws, so-called “video-gambling” or any |
| lotteries whatsoever except for the sale of lottery tickets pursuant to title 42, section 61 of the |
| general laws chapter 61 of this title 42. Furthermore, upon conveyance, but in any event before |
| approving any project, development, or redevelopment, the commission shall ensure that a deed |
| restriction, running to the benefit of the city of Providence and the state, is recorded against the |
| subject property effectuating and memorializing such restriction. The aforementioned restriction |
| shall run with the land and be binding upon all successors and assign assigns. Any deed restriction |
| conveyed to the state pursuant to this subsection may be waived only by statute, resolution or other |
| action by the general assembly which complies with the constitutional requirements for the |
| expansion of gambling. |
| SECTION 9. Sections 42-64.19-3 and 42-64.19-7 of the General Laws in Chapter 42-64.19 |
| entitled "Executive Office of Commerce" are hereby amended to read as follows: |
| 42-64.19-3. Executive office of commerce. [Effective January 1, 2024.] |
| (a) There is hereby established within the executive branch of state government an |
| executive office of commerce effective February 1, 2015, to serve as the principal agency of the |
| executive branch of state government for managing the promotion of commerce and the economy |
| within the state and shall have the following powers and duties in accordance with the following |
| schedule: |
| (1) On or about February 1, 2015, to operate functions from the department of business |
| regulation; |
| (2) On or about April 1, 2015, to operate various divisions and functions from the |
| department of administration; |
| (3) On or before September 1, 2015, to provide to the Senate and the House of |
| Representatives a comprehensive study and review of the roles, functions, and programs of the |
| department of administration and the department of labor and training to devise recommendations |
| and a business plan for the integration of these entities with the office of the secretary of commerce. |
| The governor may include such recommendations in the Fiscal Year 2017 budget proposal; and |
| (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce |
| and housing who shall report directly to the secretary of commerce. On July 1, 2022, the deputy |
| secretary of commerce and housing shall succeed to the position of secretary of housing, and the |
| position of deputy secretary of commerce and housing shall cease to exist under this chapter. All |
| references in the general laws to the deputy secretary of commerce and housing shall be construed |
| to mean the secretary of housing. The secretary of housing shall be appointed by and report directly |
| to the governor and shall assume all powers, duties, and responsibilities formerly held by the deputy |
| secretary of commerce and housing. Until the formation of the new department of housing pursuant |
| to chapter 64.34 of this title, the secretary of housing shall reside within the executive office of |
| commerce for administrative purposes only. The secretary of housing shall: |
| (i) Prior to hiring, have completed and earned a minimum of a master’s graduate degree in |
| the field of urban planning, economics, or a related field of study or possess a juris doctor law |
| degree. Preference shall be provided to candidates having earned an advanced degree consisting of |
| an L.L.M. law degree or Ph.D. in urban planning or economics. Qualified candidates must have |
| documented five (5) years’ full-time experience employed in the administration of housing policy |
| and/or development; |
| (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and |
| developing a housing plan, including, but not limited to, the development of affordable housing |
| opportunities to assist in building strong community efforts and revitalizing neighborhoods; |
| (iii) Coordinate with all agencies directly related to any housing initiatives and participate |
| in the promulgation of any regulation having an impact on housing including, but not limited to, |
| the Rhode Island housing and mortgage finance corporation, the coastal resources management |
| council (CRMC), and state departments including, but not limited to: the department of |
| environmental management (DEM), the department of business regulation (DBR), the department |
| of transportation (DOT) and statewide planning, and the Rhode Island housing resources |
| commission; |
| (iv) Coordinate with the housing resources commission to formulate an integrated housing |
| report to include findings and recommendations to the governor, speaker of the house, senate |
| president, each chamber’s finance committee, and any committee whose purview is reasonably |
| related to, including, but not limited to, issues of housing, municipal government, and health on or |
| before December 31, 2021, and annually thereafter which report shall include, but not be limited |
| to, the following: |
| (A) The total number of housing units in the state with per community counts, including |
| the number of Americans with Disabilities Act compliant special needs units; |
| (B) The occupancy and vacancy rate of the units referenced in subsection (a)(4)(iv)(A); |
| (C) The change in the number of units referenced in subsection (a)(4)(iv)(A), for each of |
| the prior three (3) years in figures and as a percentage; |
| (D) The number of net new units in development and number of units completed since the |
| prior report; |
| (E) For each municipality the number of single-family, two-family (2), and three-family |
| (3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful |
| description of current conditions, including a statewide sum of each unit type; |
| (F) The total number of units by income type; |
| (G) A projection of the number of status quo units; |
| (H) A projection of the number of units required to meet housing formation trends; |
| (I) A comparison of regional and other similarly situated state funding sources that support |
| housing development including a percentage of private, federal, and public support; |
| (J) A reporting of unit types by number of bedrooms for rental properties including an |
| accounting of all: |
| (I) Single-family units; |
| (II) Accessory dwelling units; |
| (III) Two-family (2) units; |
| (IV) Three-family (3) units; |
| (V) Multi-unit sufficiently delineated units; |
| (VI) Mixed use sufficiently delineated units; and |
| (VII) Occupancy and vacancy rates for the prior three (3) years; |
| (K) A reporting of unit types by ownership including an accounting of all: |
| (I) Single-family units; |
| (II) Accessory dwelling units; |
| (III) Two-family (2) units; |
| (IV) Three-family (3) units; |
| (V) Multi-unit sufficiently delineated units; |
| (VI) Mixed use sufficiently delineated units; and |
| (VII) Occupancy and vacancy rates for the prior three (3) years; |
| (L) A reporting of the number of applications submitted or filed for each community |
| according to unit type and an accounting of action taken with respect to each application to include, |
| approved, denied, appealed, approved upon appeal, and if approved, the justification for each |
| approval; |
| (M) A reporting of permits for each community according to affordability level that were |
| sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for |
| each approval; |
| (N) A reporting of affordability by municipality that shall include the following: |
| (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair- |
| market rate, and above-market-rate units; including the average and median costs of those units; |
| (II) The percent and number of units of extremely low-, very low-, low-, and moderate- |
| income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24 |
| of title 45; including the average and median costs of those units; |
| (III) The percent and number of units for the affordability levels above moderate-income |
| housing, including a comparison to fair-market rent and fair-market homeownership; including the |
| average and median costs of those units; |
| (IV) The percentage of cost burden by municipality with population equivalent; |
| (V) The percentage and number of home financing sources, including all private, federal, |
| state, or other public support; and |
| (VI) The cost growth for each of the previous five (5) years by unit type at each |
| affordability level, by unit type; |
| (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms |
| and providing an assessment of the state’s existing housing stock and enumerating any risks to the |
| public health from that housing stock, including, but not limited to: the presence of lead, mold, safe |
| drinking water, disease vectors (insects and vermin), and other conditions that are an identifiable |
| health detriment. Additionally, the report shall provide the percentage of the prevalence of health |
| risks by age of the stock for each community by unit type and number of bedrooms; and |
| (P) A recommendation shall be included with the report required under this section that |
| shall provide consideration to any and all populations, ethnicities, income levels, and other relevant |
| demographic criteria determined by the secretary, and with regard to any and all of the criteria |
| enumerated elsewhere in the report separately or in combination, provide recommendations to |
| resolve any issues that provide an impediment to the development of housing, including specific |
| data and evidence in support of the recommendation. All data and methodologies used to present |
| evidence are subject to review and approval of the chief of revenue analysis, and that approval shall |
| include an attestation of approval by the chief to be included in the report; |
| (v) Have direct oversight over the office of housing and community development (OHCD) |
| and shall be responsible for coordinating with the secretary of commerce a shared staffing |
| arrangement until June 30, 2023, to carry out the provisions of this chapter; |
| (vi) On or before November 1, 2022, develop a housing organizational plan to be provided |
| to the general assembly that includes a review, analysis, and assessment of functions related to |
| housing of all state departments, quasi-public agencies, boards, and commissions. Provided, |
| further, the secretary, with the input from each department, agency, board, and commission, shall |
| include in the plan comprehensive options, including the advantages and disadvantages of each |
| option and recommendations relating to the functions and structure of the new department of |
| housing; |
| (vii) Establish rules and regulations as set forth in § 45-24-77. |
| (b) In this capacity, the office shall: |
| (1) Lead or assist state departments and coordinate business permitting processes in order |
| to: |
| (i) Improve the economy, efficiency, coordination, and quality of the business climate in |
| the state; |
| (ii) Design strategies and implement best practices that foster economic development and |
| growth of the state’s economy; |
| (iii) Maximize and leverage funds from all available public and private sources, including |
| federal financial participation, grants, and awards; |
| (iv) Increase public confidence by conducting customer centric operations whereby |
| commercial enterprises are supported and provided programs and services that will grow and |
| nurture the Rhode Island economy; and |
| (v) Be the state’s lead agency for economic development. |
| (2) [Deleted by P.L. 2022, ch. 388, § 1 and P.L. 2022, ch. 442, § 1.] |
| (c) The office shall include the office of regulatory reform and other administration |
| functions that promote, enhance, or regulate various service and functions in order to |
| promote the reform and improvement of the regulatory function of the state. |
| 42-64.19-7. Departments/divisions assigned to the executive office — Powers and |
| duties. |
| (a) The departments and/or divisions 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. |
| (4) Forward to the secretary copies of all reports to the governor. |
| (b) Except as provided herein, no provision of this chapter or application thereof shall be |
| construed to limit or otherwise restrict the departments, offices, or divisions assigned to the |
| secretary from fulfilling any statutory requirement or complying with any valid rule or regulation. |
| (c) The secretary shall determine in collaboration with the department directors whether |
| the officers, employees, agencies, advisory councils, committees, commissions, and task forces of |
| the departments who were performing such functions shall be transferred to the office. |
| (d) In the transference of such functions, the secretary shall be responsible for ensuring: |
| (1) Minimal disruption of services to consumers; |
| (2) Elimination of duplication of functions and operations; |
| (3) Services are coordinated and functions are consolidated where appropriate; |
| (4) Clear lines of authority are delineated and followed; |
| (5) Cost savings are achieved whenever feasible; |
| (6) Program application and eligibility determination processes are coordinated and, where |
| feasible, integrated; and |
| (7) State and federal funds available to the office and the entities therein are allocated and |
| utilized for service delivery to the fullest extent possible. |
| (e) Except as provided herein, no provision of this chapter or application thereof shall be |
| construed to limit or otherwise restrict the departments under this section from fulfilling any |
| statutory requirement or complying with any regulation deemed otherwise valid. |
| (f) To ensure an orderly transfer of functions to the office of commerce the following |
| transition shall occur at the direction of the governor, secretary of commerce and the respective |
| directors of the department affected. |
| (g) On or about February 1, 2015, the office shall commence to operate all functions |
| currently assigned to the department of business regulation (DBR). |
| (h) On or about April 1, 2015, the office shall commence to operate the regulatory |
| reform and housing/community development functions currently assigned to the department |
| of administration. |
| (i) In addition to the requirements of § 35-3-7, budgets submitted by the impacted state |
| departments for state fiscal years 2015 and 2016 shall include provisions to implement this section. |
| SECTION 10. Sections 42-64.20-5, 42-64.20-6 and 42-64.20-8 of the General Laws in |
| Chapter 42-64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as |
| follows: |
| 42-64.20-5. Tax credits. |
| (a) An applicant meeting the requirements of this chapter may be allowed a credit as set |
| forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of |
| the general laws for a qualified development project. |
| (b) To be eligible as a qualified development project entitled to tax credits, an applicant’s |
| chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the |
| time of application, that: |
| (1) The applicant has committed a capital investment or owner equity of not less than |
| twenty percent (20%) of the total project cost; |
| (2) There is a project financing gap in which after taking into account all available private |
| and public funding sources, the project is not likely to be accomplished by private enterprise |
| without the tax credits described in this chapter; and |
| (3) The project fulfills the state’s policy and planning objectives and priorities in that: |
| (i) The applicant will, at the discretion of the commerce corporation, obtain a tax |
| stabilization agreement from the municipality in which the real estate project is located on such |
| terms as the commerce corporation deems acceptable; |
| (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied |
| by at least one business employing at least 25 full-time employees after construction or such |
| additional full-time employees as the commerce corporation may determine; (B) Is a multi-family |
| residential development in a new, adaptive reuse, certified historic structure, or recognized |
| historical structure consisting of at least 20,000 square feet and having at least 20 residential units |
| in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic |
| structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at |
| least one business, subject to further definition through rules and regulations promulgated by the |
| commerce corporation; and |
| (iii) Involves a total project cost of not less than $5,000,000, except for a qualified |
| development project located in a hope community or redevelopment area designated under § 45- |
| 32-4 in which event the commerce corporation shall have the discretion to modify the minimum |
| project cost requirement. |
| (c) The commerce corporation shall develop separate, streamlined application processes |
| for the issuance of rebuild RI tax credits for each of the following: |
| (1) Qualified development projects that involve certified historic structures; |
| (2) Qualified development projects that involve recognized historical structures; |
| (3) Qualified development projects that involve at least one manufacturer; and |
| (4) Qualified development projects that include affordable housing or workforce housing. |
| (d) Applications made for a historic structure or recognized historic structure tax credit |
| under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of |
| taxation, at the expense of the commerce corporation, shall provide communications from the |
| commerce corporation to those who have applied for and are in the queue awaiting the offer of tax |
| credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax |
| credit program. |
| (e) Applicants (1) Who have received the notice referenced in subsection (d) above and |
| who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application |
| involves a certified historic structure or recognized historical structure; or (3) Whose project is |
| occupied by at least one manufacturer shall be exempt from the requirements of subsections |
| (b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants: |
| (i) The division of taxation shall remain responsible for determining the eligibility of an |
| applicant for tax credits awarded under chapter 33.6 of title 44; |
| (ii) The commerce corporation shall retain sole authority for determining the eligibility of |
| an applicant for tax credits awarded under this chapter; and |
| (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the |
| annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this |
| subsection (e). |
| (f) Maximum project credit. |
| (1) For qualified development projects, the maximum tax credit allowed under this chapter |
| shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to |
| close a project financing gap (after taking into account all other private and public funding sources |
| available to the project), as determined by the commerce corporation. |
| (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax |
| exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000) |
| for any qualified development project under this chapter; except as provided in subsection (f)(3) of |
| this section; provided however, any qualified development project that exceeds the project cap upon |
| passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further |
| increased. No building or qualified development project to be completed in phases or in multiple |
| projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all |
| phases or projects involved in the rehabilitation of the building. Provided, however, that for |
| purposes of this subsection and no more than once in a given fiscal year, the commerce corporation |
| may consider the development of land and buildings by a developer on the “I-195 land” as defined |
| in § 42-64.24-3(6) as a separate, qualified development project from a qualified development |
| project by a tenant or owner of a commercial condominium or similar legal interest including |
| leasehold improvement, fit out, and capital investment. Such qualified development project by a |
| tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be |
| exempted from subsection (f)(1)(i) of this section. |
| (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax |
| exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars |
| ($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter |
| into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that |
| project is approved for credits pursuant to this chapter by the commerce corporation. |
| (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project |
| cost, provided, however, that the applicant shall be eligible for additional tax credits of not more |
| than ten percent (10%) of the project cost, if the qualified development project meets any of the |
| following criteria or other additional criteria determined by the commerce corporation from time |
| to time in response to evolving economic or market conditions: |
| (1) The project includes adaptive reuse or development of a recognized historical structure; |
| (2) The project is undertaken by or for a targeted industry; |
| (3) The project is located in a transit-oriented development area; |
| (4) The project includes residential development of which at least twenty percent (20%) of |
| the residential units are designated as affordable housing or workforce housing; |
| (5) The project includes the adaptive reuse of property subject to the requirements of the |
| industrial property remediation and reuse act, § 23-19.14-1 et seq.; or |
| (6) The project includes commercial facilities constructed in accordance with the minimum |
| environmental and sustainability standards, as certified by the commerce corporation pursuant to |
| Leadership in Energy and Environmental Design or other equivalent standards. |
| (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter, |
| inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed |
| two hundred twenty-five million dollars ($225,000,000), excluding any tax credits allowed |
| pursuant to subsection (f)(3) of this section. |
| (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the |
| project is placed in service. |
| (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer |
| in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent |
| (15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable |
| year. |
| (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total |
| tax liability for the year in which the relevant portion of the credit is allowed, the amount that |
| exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for |
| the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed |
| to a partnership, a limited liability company taxed as a partnership, or multiple owners of property |
| shall be passed through to the persons designated as partners, members, or owners respectively pro |
| rata or pursuant to an executed agreement among persons designated as partners, members, or |
| owners documenting an alternate distribution method without regard to their sharing of other tax |
| or economic attributes of such entity. |
| (l) The commerce corporation, in consultation with the division of taxation, shall establish, |
| by regulation, the process for the assignment, transfer, or conveyance of tax credits. |
| (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer |
| for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from |
| taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation |
| for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, |
| without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a |
| natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable, |
| for the year of revocation, or adjustment, shall be increased by including the total amount of the |
| sales proceeds without proration. |
| (n) The tax credit allowed under this chapter may be used as a credit against corporate |
| income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against |
| personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such |
| as a partnership, a limited liability company taxed as a partnership, or multiple owners of property. |
| (o) In the case of a corporation, this credit is only allowed against the tax of a 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. |
| (p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem |
| this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division |
| of taxation, in consultation with the commerce corporation, shall establish by regulation a |
| redemption process for tax credits. |
| (q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the |
| commerce corporation, be exempt from sales and use taxes imposed on the purchase of the |
| following classes of personal property only to the extent utilized directly and exclusively in the |
| project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles; |
| or (2) Other materials, including construction materials and supplies, that are depreciable and have |
| a useful life of one year or more and are essential to the project. |
| (r) The commerce corporation shall promulgate rules and regulations for the administration |
| and certification of additional tax credit under subsection (e) (g), including criteria for the |
| eligibility, evaluation, prioritization, and approval of projects that qualify for such additional tax |
| credit. |
| (s) The commerce corporation shall not have any obligation to make any award or grant |
| any benefits under this chapter. |
| 42-64.20-6. Administration. |
| (a) To obtain the tax credit authorized in this chapter, applicants shall apply to the |
| commerce corporation board for approval of a qualified development project for credits under this |
| chapter. Such approval shall at a minimum require: |
| (1) That the applicant has submitted a completed application as developed by the commerce |
| corporation in consultation with the division of taxation; |
| (2) That the chief executive of the commerce corporation provide written confirmation to |
| the commerce corporation board (i) That the commerce corporation has reviewed the application |
| and any determination regarding the potential impact on the project’s ability to stimulate business |
| development; retain and attract new business and industry to the state; create jobs, including good- |
| paying jobs, for its residents; assist with business, commercial, and industrial real estate |
| development; and generate revenues for necessary state and local governmental services; and (ii) |
| The total credits to be awarded to the applicant. |
| (3) That the secretary of commerce provide written confirmation to the commerce |
| corporation board that the recommendation of the commerce corporation is consistent with the |
| purposes of this chapter; and |
| (4) That the director of the office of management and budget provide (i) written |
| confirmation to the commerce corporation board that the aggregate credits recommended by the |
| commerce corporation pursuant to this chapter do not exceed the maximum aggregate credits |
| allowed under this chapter in accordance with § 42-64.20-5(f) 42-64.20-5(h). |
| (b) As the commerce corporation board determines whether to grant credits under this |
| chapter, it shall consider the purposes for which this chapter is established, which include (but are |
| not necessarily limited to) the following: (i) To create jobs with an emphasis on jobs that pay at |
| least the most recent state median wage as defined by the department of labor and training; and (ii) |
| To spur economic growth and new development in Rhode Island. |
| (c) To claim a tax credit authorized by the board of the commerce corporation, applicants |
| shall apply to the commerce corporation for a certification that the project has met all requirements |
| of this chapter and any additional requirements set by the commerce corporation subsequent to the |
| time the qualified development project is placed in service. The commerce corporation shall issue |
| to the applicant a certification or a written response detailing any deficiencies precluding |
| certification. The commerce corporation may deny certification, or may revoke the delivery of tax |
| credits if the project does not meet all requirements of this chapter and any additional requirements |
| set by the commerce corporation. |
| (d) Upon issuance of a certification by the commerce corporation under subsection (c), the |
| division of taxation shall, on behalf of the State of Rhode Island, issue tax credit certificates |
| equaling one hundred percent (100%) of the tax credits approved by the commerce corporation. |
| (e) In the event that tax credits, or a portion of tax credits, are revoked by the commerce |
| corporation and such tax credits have been transferred or assigned, the commerce corporation will |
| pursue its recapture rights and remedies against the applicant of the tax credits who shall be liable |
| to repay to the commerce corporation the face value of all tax credits assigned or transferred and |
| all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against assignees |
| or transferees of such tax credits provided the tax credits were acquired by way of an arms-length |
| transaction, for value, and without notice of violation, fraud, or misrepresentation. |
| (f) The commerce corporation and division of taxation shall promulgate such rules and |
| regulations as are necessary to carry out the intent and purpose and implementation of the |
| responsibilities of each under this chapter. |
| 42-64.20-8. Program integrity. |
| (a) Program integrity being of paramount importance, the commerce corporation shall |
| establish procedures to ensure ongoing compliance with the terms and conditions of the program |
| established herein, including procedures to safeguard the expenditure of public funds and to ensure |
| that the funds further the objectives of the program. |
| (b) The commerce corporation shall adopt implementation guidelines, directives, criteria, |
| and rules and regulations pursuant to § 42-35-3 of the general laws chapter 35 of this title |
| (Administrative Procedures), as are necessary to implement this chapter, including, but not |
| limited to: examples of the enumeration of specific targeted industries; specific delineation of |
| incentive areas; the determination of additional limits; the promulgation of procedures and forms |
| necessary to apply for a tax credit, including the enumeration of the certification procedures; the |
| allocation of new tax credits in consultation with the executive office of commerce, division of |
| taxation and department of administration; and provisions for tax credit applicants to be charged |
| an initial application fee, and ongoing service fees, to cover the administrative costs related to the |
| tax credit. |
| SECTION 11. Section 42-64.22-12 of the General Laws in Chapter 42-64.22 entitled "Tax |
| Stabilization Incentive" is hereby amended to read as follows: |
| 42-64.22-12. Implementation guidelines, directives, criteria, rules, regulations. |
| (a) The commerce corporation shall establish further guidelines, directives, criteria, rules |
| and regulations in regards to the implementation of this chapter. |
| (b) The adoption and implementation of rules and regulations shall be made pursuant to § |
| 42-35-3 of the general laws chapter 35 of this title (Administrative Procedures) as are necessary |
| for the implementation of the commerce corporation’s responsibilities under this chapter. |
| SECTION 12. Section 42-64.23-6 of the General Laws in Chapter 42-64.23 entitled "First |
| Wave Closing Fund" is hereby amended to read as follows: |
| 42-64.23-6. Implementation guidelines, directives, criteria, rules, regulations. |
| The commerce corporation may adopt implementation guidelines, directives, criteria, rules |
| and regulations pursuant to § 42-35-3 of the General Laws chapter 35 of this title |
| (Administrative Procedures) as are necessary for the implementation and administration of the |
| fund. |
| SECTION 13. Section 42-64.24-6 of the General Laws in Chapter 42-64.24 entitled "I-195 |
| Redevelopment Project Fund" is hereby amended to read as follows: |
| 42-64.24-6. Implementation guidelines, directives, criteria, rules, regulations. |
| The commission shall adopt implementation guidelines, directives, criteria, rules and |
| regulations pursuant to § 42-35-3 of the general laws chapter 35 of this title (Administrative |
| Procedures) as are necessary for the implementation of the commission’s responsibilities under |
| this chapter and impose such fees and charges as are necessary to pay for the administration and |
| implementation of this program. |
| SECTION 14. Section 42-64.26-9 of the General Laws in Chapter 42-64.26 entitled "Stay |
| Invested in RI Wavemaker Fellowships" is hereby amended to read as follows: |
| 42-64.26-9. Implementation guidelines, rules, regulations. |
| (a) The commerce corporation may adopt implementation guidelines, rules, and regulations |
| pursuant to § 42-35-3 chapter 35 of this title (Administrative Procedures) as are necessary for |
| the implementation of this chapter. |
| (b) The commerce corporation shall adopt guidelines to assure integrity and eliminate |
| potential conflicts of interest in the issuing of awards. |
| (c) The division of taxation may adopt implementation guidelines, directives, criteria, and |
| rules and regulations pursuant to § 42-35-3 of the General Laws chapter 35 of this title |
| (Administrative Procedures), as are necessary for the implementation of the division’s |
| responsibilities under this chapter. |
| SECTION 15. Section 42-82-5 of the General Laws in Chapter 42-82 entitled "Farmland |
| Preservation Act" is hereby amended to read as follows: |
| 42-82-5. Duties of the commission. |
| (a) The commission shall: |
| (1) Develop the criteria necessary for defining agricultural land under this chapter; |
| (2) Make a reasonably accurate inventory of all land in the state that meets the definition |
| of agricultural land; |
| (3) Prepare and adopt rules for administration of the purchase of development rights and |
| criteria for the selection of parcels for which the development rights may be purchased, and the |
| conditions under which they will be purchased; |
| (4) Draw up and publish the covenant and enumerate the specific development rights to be |
| purchased by the state; |
| (5) Inform the owners, public officials, and other citizens and interested persons of the |
| provisions of this chapter; |
| (6) Approve and submit, within ninety (90) days after the end of each fiscal year, an annual |
| report 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, |
| decisions rendered, petitions granted, rules or regulations promulgated, studies conducted, policies |
| and plans developed, approved, or modified, and programs administered or initiated; a consolidated |
| financial statement of all funds received and expended, including the source of the funds, a listing |
| of any staff supported by these funds, and a summary of any clerical, administrative, or technical |
| support received; a summary of performance during the previous fiscal year, including |
| accomplishments, shortcomings, and remedies; a synopsis of hearings, examinations, and |
| investigations or any legal matters related to the authority of the commission; a summary of any |
| training courses held pursuant to subdivision (a)(7); a summary of land acquired and conserved |
| during the fiscal year; an annually updated inventory of all land in the state that meets the definition |
| of agricultural land; a briefing on anticipated activities in the upcoming fiscal year; findings and |
| recommendation for improvements. The report shall be posted electronically, as prescribed in § 42- |
| 20-8.2. The director of the department of administration shall be responsible for the enforcement |
| of this provision; and |
| (7) 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 chair, approved by the commission, and conducted by the |
| commission. The commission may approve the use of any commission or staff members or other |
| individuals to assist with training. The course shall include instruction in the following areas: the |
| provisions of chapters 82 and 46 of this title, chapter 14 of title 36, and chapter 2 of title 38; and |
| the commission’s rules and regulations. The director of the department of administration shall, |
| within ninety (90) days of the effective date of this act [May 3, 2006], prepare and disseminate |
| training materials relating to the provisions of chapter 46 of this title, chapter 14 of title 36, and |
| chapter 2 of title 38. |
| (b) At any time after fulfilling the requirements of subsection (a), the commission, on |
| behalf of the state, may acquire any development rights that may, from time to time, be offered by |
| the owners of agricultural land. The commission may accept or negotiate at a price not in excess of |
| the value established by an independent appraisal prepared for the commission, or for one of the |
| commission’s partners, for the respective property. Additionally, said appraisal shall be reviewed |
| in a manner consistent with the rules and regulations of the commission. The value of the |
| development rights for all of the purposes of this section shall be the difference between the value |
| of the property for its highest and best use and its value for agricultural purposes as defined in this |
| chapter. In determining the value of the property for its highest and best use, consideration shall be |
| given to sales of comparable properties in the general area, use of which is unrestricted at the time |
| of sale. The seller of the development rights shall have the option of accepting payment in full at |
| the time of transfer or accepting payment on an installment basis in cash or with the principal paid |
| by tax exempt financial instruments of the state with interest on the unpaid balance equal to the |
| interest paid by the state on bonds sold during the preceding twelve-month (12) period. Any matter |
| pending in the superior court may be settled by the parties subject to approval by a referee. At any |
| time after a matter has been referred to a referee, even after an award is made by the referee, but |
| before payment thereof, the petitioner may withdraw his or her petition upon payment of appraisal |
| fees incurred by the state, together with all court costs, and the award shall become null and void. |
| (c) Any land acquired by purchase, devise, or as a gift may be resold by the commission |
| with the development rights retained by the state and so noted by covenant in the deed. Any such |
| resale by the commission shall not be subject to the right to purchase by the municipality in which |
| the land is situated as provided by § 37-7-5. The proceeds from that sale shall be returned to the |
| agricultural land preservation fund. |
| (d) Any land received as a gift and not resold by the commission may be leased for |
| agricultural uses or other uses the commission determines are not detrimental to its agricultural |
| productivity. Any funds thus obtained shall be returned to the agricultural land preservation fund. |
| (e) The commission may consider petitions by the owner of land, from which or whom the |
| state has purchased the development rights, to repurchase those development rights from the state. |
| The petition must be accompanied by a certificate from the municipalities in which the land lies |
| stating that two-thirds (⅔) of the city or town council has approved the proposed development. The |
| petition shall set forth the facts and circumstances upon which the commission shall consider |
| approval, and the commission shall deny approval unless at least seven (7) of its members |
| determine by vote that there is an overriding necessity to relinquish control of the development |
| rights. The commission shall hold at least one public hearing in a city or town from which a |
| certificate has been received, prior to its consideration of the petition, that shall be announced in |
| one newspaper of local circulation. The expenses, if any, of the hearing shall be borne by the |
| petitioner. If the commission approves the sale of the development rights, it shall receive the value |
| of the development rights at the time of this sale, to be determined in the same manner as provided |
| for by subsection (d) (b). Proceeds of the sale shall be returned to the agricultural land preservation |
| fund. |
| SECTION 16. Section 42-102-6 of the General Laws in Chapter 42-102 entitled |
| "Governor’s Workforce Board Rhode Island" is hereby amended to read as follows: |
| 42-102-6. Powers and duties. |
| (a) Strategic statewide employment-and-training plan. |
| (1) The board shall meet with other entities involved with career and technical education, |
| workforce development, and career training and shall be responsible for the development of a |
| comprehensive and cohesive, statewide employment-and-training plan. The strategic, statewide |
| employment-and-training plan shall include goals and objectives for serving the state’s existing |
| and emerging workforce utilizing all state and federal workforce-development programs. The board |
| shall take into consideration the needs of all segments of the state’s citizenry in establishing goals |
| and training objectives, including the workforce needs of the state’s employers. |
| (2) The strategic, statewide-employment-and-training plan shall be developed biennially |
| and shall cover the subsequent, two (2) fiscal years. Said biennial plans shall be submitted on |
| November 15. The biennial plan shall outline goals and objectives of the coordinated programs |
| system, major priorities needed for the next two-year (2) period, and policies and requirements |
| necessary to meet those priorities. The board shall provide a funding plan necessary to achieve |
| system priorities and serve the anticipated number of participants and shall identify the general |
| revenue funds necessary to meet program needs, taking into account anticipated federal, private, |
| and other sources of funds. The biennial plan shall incorporate the annual, unified-workforce- |
| development-system report required pursuant to subsection (f) in those years in which both reports |
| are due. |
| (3) The board shall develop and maintain a comprehensive inventory and analysis of |
| workforce-development activities in the state to support the biennial, statewide employment-and- |
| training plan. The analysis shall include, but not be limited to, an examination of the populations |
| being served across the different employment and training and adult education programs across the |
| state; the number of participants being served by these programs; the type of services provided; and |
| the eligibility requirements of each of these programs. The analysis shall also identify the funding |
| sources (all sources) used in these programs; the service providers within the state; as well as the |
| range of services provided. The analysis shall also examine the employer role in workforce- |
| development activities, including, but not limited to, how employer needs are assessed; benefits |
| employers receive for partnering with workforce-development organizations; and the role |
| employers play in developing programs and providing training. |
| (4) The board shall establish and convene an advisory group to assist in the development |
| of this comprehensive inventory and analysis that consists of stakeholders and organizations with |
| specific knowledge and expertise in the area of workforce development. |
| (5) All departments and agencies of the state shall furnish advice and information, |
| documentary or otherwise, to the board and its agents as is deemed necessary or desirable by the |
| board to facilitate the purposes of the board, including the development of the statewide, |
| employment-and-training plan. |
| (6) Elements of the statewide employment and training plan established pursuant to |
| subsection (a) of this section may inform the development of the state workforce investment plan |
| required pursuant to § 42-102-6(d)(2)(i). |
| (b) Performance management and coordination of employment-and-training programs. |
| (1) The board shall establish statewide policies, definitions, objectives, goals, and |
| guidelines for the coordination of all employment-and-training programs and related services and |
| programs within the state, including: |
| (i) The state department of labor and training programs, sponsored under the Workforce |
| Investment Act of 1998, Wagner-Peyser Act, 29 U.S.C. § 49 et seq., the Trade Act of 2002, and |
| any other employment-related educational program administered by the state department of labor |
| and training; |
| (ii) The state department of human services training programs, sponsored under the |
| Temporary Assistance to Needy Families, Title IV of the Social Security Act; the Supplemental |
| Nutrition Assistance Program (SNAP) Employment and Training Program; Vocational |
| Rehabilitation Act of 1973, and any other employment-and-training and related services and |
| employment-related educational programs administered by the state’s department of human |
| services; |
| (iii) Employment and training programs sponsored under the Carl D. Perkins Vocational |
| Education Act, 20 U.S.C. § 2301 et seq., the Federal Adult Education Act, Title II of the Workforce |
| Investment Act of 1998 and any other employment-related educational programs administered by |
| the board of education; |
| (iv) The state department of corrections training programs for ex-offenders to help them |
| reintegrate into the community and re-enter employment; |
| (v) Projects and services funded through the job-development fund pursuant to § 42-102- |
| 6(e)(1); |
| (vi) All other employment-and-training and related services and employment-related |
| educational programs, either presently existing or hereinafter established, that are administered by |
| any state agencies, departments, or councils; and |
| (vii) Programs included within subsections (b)(1)(i) through (b)(1)(vi) shall be referred |
| herein collectively as “the coordinated programs system.” |
| (2) With respect to plans for employment-and-training programs sponsored under the |
| federal Carl D. Perkins Vocational Education Act, 20 U.S.C. § 2301 et seq., and any other |
| employment-related educational programs administered by the board of education, the workforce |
| board and board of education shall establish a process for the development and preparation of all |
| these plans and the board of education shall approve the plan subject to review and comment by |
| the workforce board; provided, however, that the responsibilities and duties of the board of |
| education, as set forth in the general laws, shall not be abridged. |
| (3) With respect to plans for the Temporary Assistance to Needy Families Program, SNAP |
| Employment and Training Program, Vocational Rehabilitation Services, and any other |
| employment-and-training and related programs administered by the state’s department of human |
| services, the authority and responsibilities of the department as the single state agency under Titles |
| IV-A, 42 U.S.C. §§ 601 through 617, and IV-F, 42 U.S.C. §§ 681 through 687 [repealed], of the |
| Federal Social Security Act shall not be abridged. |
| (4) With respect to plans for training ex-offenders to help them reintegrate into the |
| community and re-enter employment, and any other employment-and-training programs |
| administered by the state’s department of corrections, the responsibilities and duties of the |
| department, as set forth in the general laws, shall not be abridged. |
| (5) The board shall review, comment on, or approve as appropriate all plans for |
| employment and training within the coordinated-programs system. The board shall establish |
| policies and performance goals for the coordinated-programs system. These policies and goals shall |
| include, but not be limited to: |
| (i) Establishing and communicating uniform policies and consistent terms and definitions; |
| (ii) Gathering and distributing information from, and to, all agencies, departments, and |
| councils within the coordinated-programs system; |
| (iii) Standardizing and coordinating program planning, evaluation, budgeting, and funding |
| processes; |
| (iv) Recommending structural and procedural changes; |
| (v) Establishing performance goals and measurements for monitoring the effectiveness of |
| the programs provided through the coordinated-programs system; and |
| (vi) Reconciling diverse agency, departmental, or council goals and developing priorities |
| among those goals. |
| (c) Comprehensive system-improvement plan. |
| (1) The 2015 unified workforce-development-system report required pursuant to § 42-102- |
| 6(f) and due on November 15, 2015, shall include an additional, comprehensive system- |
| improvement plan to facilitate the seamless and coordinated delivery of workforce services in this |
| state, consistent with the goals and objectives of the board’s statewide employment-and-training |
| plan. In developing the comprehensive, system-improvement plan, the board shall review the roles, |
| responsibilities, and functions of all state employment-and-training programs. The study shall |
| identify any gaps in the services provided by those programs; any barriers to integration and |
| cooperation of these programs; and any other matters that adversely affect the seamless delivery of |
| workforce-development systems in the state. |
| (2) The board shall include in the comprehensive, system-improvement plan: |
| (i) A list of specific barriers, whether structural, regulatory, or statutory, that adversely |
| affect the seamless and coordinated delivery of workforce-development programs and services in |
| this state, as well as recommendations to overcome or eliminate these barriers; and |
| (ii) Recommendations for providing, at a minimum, board comment and review of all state |
| employment-and-training programs, to ensure such programs are consistent with the board’s |
| statewide employment-and-training plan, and meet the current and projected workforce demands |
| of this state, including programs that, pursuant to state or federal law or regulation, must remain |
| autonomous. |
| (3) The recommendations developed by the board under subsection (c)(1) must identify the |
| state agency or department that is responsible for implementing each recommendation and include |
| a time frame for the implementation of each recommendation. The governor may include such |
| recommendations in his or her proposed budget the following fiscal year. |
| (d) Workforce investment act responsibilities. |
| (1) The board shall assume the duties and responsibilities of the state workforce-investment |
| board established pursuant to Executive Order 05-18 dated September 22, 2005, as outlined in |
| subsection (c)(2) (d)(2). |
| (2) The board shall assist the governor and the general assembly in: |
| (i) Developing a state workforce-investment plan for the purposes of the Workforce |
| Investment Act of 1998 (WIA) and the Wagner-Peyser Act; |
| (ii) Actively promoting and coordinating private-sector involvement in the workforce- |
| investment system through the development of partnerships among state agencies, the business |
| community, and the board; |
| (iii) Ensuring that the current and projected workforce needs of Rhode Island employers |
| inform and advise Rhode Island’s education and workforce-development system; |
| (iv) Providing oversight of local workforce-investment boards, whose primary role in the |
| workforce-investment system is to deliver employment, training, and related education services in |
| their respective local area; and |
| (v) Developing a statewide system of activities that are funded under the WIA or carried |
| out through the one-stop delivery system, including: |
| (A) Assuring coordination and non duplication among the programs and activities carried |
| out by one-stop partners; |
| (B) Reviewing local workforce-investment plans; |
| (C) Designating local workforce-investment areas in accordance with federal law; |
| (D) Developing allocation formulas for the distribution of funds for adult employment- |
| and-training activities, youth activities to local areas, and creating and expanding job and career |
| opportunities for individuals with intellectual, developmental, or other significant disabilities; |
| (E) Developing comprehensive, state-performance measures as prescribed by federal law, |
| including state-adjusted levels of performance, to assess the effectiveness of the workforce- |
| investment activities in the state; |
| (F) Preparing the annual report to the Secretary of Labor described in WIA; |
| (G) Developing the statewide employment-statistics system; |
| (H) Developing an application for incentive grants; |
| (I) Carrying out the responsibilities of a local board as outlined in WIA; and |
| (J) Addressing any other issue requiring input from the board under the provisions of WIA. |
| (e) Job-development fund responsibilities. |
| (1) The board shall allocate monies from the job-development fund for projects to |
| implement the recommendations of the board consistent with the statewide employment-and- |
| training plan established pursuant to § 42-102-6(a). |
| (f) Unified workforce-development system report. |
| (1) The board shall produce and submit an annual, unified, workforce-development-system |
| report to the governor, the speaker of the house, the president of the senate, and the secretary of |
| state. The report shall be submitted annually on November 15. The report shall cover activity |
| having taken place the preceding fiscal year ending June 30 and shall include: |
| (i) A fiscal and programmatic report for the governor’s workforce board covering the |
| previous fiscal year, including: |
| (A) A summary of the board’s activities and accomplishments during the previous fiscal |
| year; |
| (B) A summary of clerical, administrative, professional, or technical reports received by |
| the board during the previous fiscal year, if applicable; |
| (C) A briefing on anticipated activities in the upcoming fiscal year; |
| (D) A consolidated financial statement of all funds received, and expended, by the board, |
| including the source of funds, during the previous fiscal year; |
| (E) A listing of any staff supported by these funds; |
| (ii) A unified, expenditure-and-program report for statewide employment-and-training |
| programs and related services, including: |
| (A) Expenditures by agencies for programs included in § 42-102-6(b)(1), including |
| information regarding the number of individuals served by each program; demographic information |
| by gender, race, and ethnicity; outcome and program-specific performance information as |
| determined by the board; and such other information as may be determined by the board, including, |
| but not limited to, the attainment of credentials; |
| (2) Beginning November 15, 2015, program expenditures included in the unified, |
| workforce-development-system report shall be categorized as administrative, program delivery, or |
| other costs; the report shall further include information on the cost per individual served within |
| each program, through a manner determined by the board; |
| (3) All state and local agencies, departments, or council, or similar organizations within |
| the coordinated-programs system, shall be required to provide the board with the information |
| necessary to produce the unified, workforce-development-system report. |
| SECTION 17. Section 42-128-5 of the General Laws in Chapter 42-128 entitled "Rhode |
| Island Housing Resources Act of 1998" is hereby amended to read as follows: |
| 42-128-5. Purposes. |
| The purposes of the commission shall be: |
| (1) To develop and promulgate state policies, and plans, for housing and housing |
| production and performance measures for housing programs established pursuant to state law. |
| (2) To coordinate activities among state agencies and political subdivisions pertaining to |
| housing. |
| (3) To promote the stability of and quality of life in communities and neighborhoods. |
| (4) To provide opportunities for safe, sanitary, decent, adequate and affordable housing in |
| Rhode Island. |
| (5) To encourage public-private partnerships that foster the production, rehabilitation, |
| development, maintenance, and improvement of housing and housing conditions, especially for |
| low and moderate income people. |
| (6) To foster and support no-profit non-profit organizations, including community |
| development corporations, and their associations and intermediaries, that are engaged in providing |
| and housing related services. |
| (7) To encourage and support partnerships between institutions of higher education and |
| neighborhoods to develop and retain quality, healthy housing and sustainable communities. |
| (8) To facilitate private for-profit production and rehabilitation of housing for diverse |
| populations and income groups. |
| (9) To provide, facilitate, and/or support the provisions of technical assistance. |
| SECTION 18. Section 42-128.1-5 of the General Laws in Chapter 42-128.1 entitled "Lead |
| Hazard Mitigation" is hereby amended to read as follows: |
| 42-128.1-5. Housing resources commission — Powers and duties with respect to lead |
| hazard mitigation. |
| (a) General powers and duties. The housing resources commission shall implement and put |
| into full force and effect the powers, duties, and responsibilities assigned to it by this chapter, and |
| shall serve as the lead state agency for lead hazard mitigation, planning, education, technical |
| assistance, and coordination of state projects and state financial assistance to property owners for |
| lead hazard mitigation. |
| (b) Regulatory guidelines. In developing and promulgating rules and regulations as |
| provided for in this chapter, the housing resources commission shall consider, among other things: |
| (1) the effect on efforts to reduce the incidence of lead poisoning, (2) the ease and cost of |
| implementation, (3) the impact on the ability to conduct real estate transactions fairly and |
| expeditiously, (4) consistency with federal standards, such that the differences between basic |
| federal standards and Rhode Island standards for lead hazard mitigation are, to the extent |
| practicable, minimized, and (5) the direction of effort to locations and housing types, which due to |
| age, condition, and prior history of lead poisoning are more likely to be the location of lead |
| poisoning. Said regulations shall include a definition of “turnover” of a dwelling unit and a means |
| for tenants to voluntarily notify property owners of the legal tenancy of an “at-risk” occupant. |
| (c) Comprehensive strategic plan. In order to establish clear goals for increasing the |
| availability of housing in which lead hazards have been mitigated, to provide performance |
| measures by which to assess progress toward achieving the purposes of this chapter, and to facilitate |
| coordination among state agencies and political subdivisions with responsibilities for housing and |
| housing quality for lead poisoning reduction and for the availability of insurance coverage |
| described in this chapter, the housing resources commission established by chapter 128 of this title |
| shall adopt by April 1, 2003, a four (4) year, comprehensive strategic plan for reducing the |
| incidence of childhood lead poisoning, for increasing the supply of lead-safe housing, and for |
| assuring that pre-1978 in rental housing throughout the state lead hazards have been mitigated. |
| (1) Plan elements. The plan as a minimum shall include elements pertaining to: |
| (i) Educating people with regard to lead hazards and how they can be avoided, mitigated, |
| and/or abated; |
| (ii) Programs to assist low and moderate income owners of property to eliminate lead |
| hazards and to achieve lead-safe conditions; |
| (iii) Coordination of the enforcement of laws pertaining to lead hazard control, mitigation |
| and abatement including the Lead Poisoning Prevention Act, chapter 24.6 of title 23, and minimum |
| housing codes and standards; |
| (iv) Coordination of efforts with local governments and other agencies to improve housing |
| conditions; |
| (v) Financing lead abatement efforts in Rhode Island, including, but not limited to, |
| assistance to low and moderate income property owners, education and outreach, and enforcement |
| by state and local officials; |
| (vi) An assessment of the availability of insurance for lead hazard liability, which shall be |
| designed and implemented in cooperation with the department of business regulation. |
| (2) Implementation program. The comprehensive strategic plan shall include an |
| implementation program, which shall include performance measurers and a program of specific |
| activities that are proposed to be undertaken to accomplish the purposes of this chapter and to |
| achieve goals and elements set forth by the plan. The implementation program shall be updated |
| annually according to a schedule set forth in the plan. |
| (3) Reporting. The commission shall report annually to the governor and the general |
| assembly, no later than March of each year, on the progress made in achieving the goals and |
| objectives set forth in the plan, which report may be integrated with or issued in conjunction with |
| the report of the commission on environmental lead submitted pursuant to § 23-24.6-6. |
| ARTICLE II -- STATUTORY CONSTRUCTION |
| SECTION 1. Section 7-12.1-903.1 of the General Laws in Chapter 7-12.1 entitled |
| "Uniform Partnership Act" is hereby amended to read as follows: |
| 7-12.1-903.1. Issuance of certificates of revocation. |
| (a) Upon revoking any such certificate of a limited liability partnership, the secretary of |
| state shall: |
| (1) Issue a certificate of revocation in duplicate; |
| (2) File one of the certificates in the secretary of state’s office; |
| (3) Send to the limited liability partnership by regular mail a certificate of revocation, |
| addressed to the registered agent of the limited liability partnership in this state on file with the |
| secretary of state’s office; provided, however, that if a prior mailing addressed to the address of the |
| registered agent of the limited liability partnership in this state currently on file with the secretary |
| of state’s office has been returned to the secretary of state as undeliverable by the United States |
| Postal Service for any reason, or if the revocation certificate is returned as undeliverable to the |
| secretary of state’s office by the United States Postal Service for any reason, the secretary of state |
| shall give notice as follows: |
| (i) To the limited liability partnership at its principal office of record as shown in its most |
| recent annual report, and no further notice shall be required; or |
| (ii) In the case of a limited liability partnership that has not yet filed an annual report, then |
| to the limited liability partnership at the principal office in the statement of qualification of limited |
| liability partnership or to the authorized person listed on the articles of organization statement of |
| qualification of limited liability partnership, and no further notice shall be required. |
| (b) An administrative revocation under this section affects only the partnership’s status as |
| a limited liability partnership and is not an event causing dissolution of the partnership. |
| (c) The revocation of a limited liability partnership does not terminate the authority of its |
| registered agent. |
| SECTION 2. Section 7-13.1-812 of the General Laws in Chapter 7-13.1 entitled "Uniform |
| Limited Partnership Act" is hereby amended to read as follows: |
| 7-13.1-812. Issuance of certificates of revocation. |
| (a) Upon revoking any such certificate of limited partnership, the secretary of state shall: |
| (1) Issue a certificate of revocation in duplicate; |
| (2) File one of the certificates in the secretary of state’s office; |
| (3) Send to the limited partnership by regular mail a certificate of revocation, addressed to |
| the registered agent of the limited partnership in this state on file with the secretary of state’s office; |
| provided, however, that if a prior mailing addressed to the address of the registered agent of the |
| limited partnership in this state currently on file with the secretary of state’s office has been returned |
| to the secretary of state as undeliverable by the United States Postal Service for any reason, or if |
| the revocation certificate is returned as undeliverable to the secretary of state’s office by the United |
| States Postal Service for any reason, the secretary of state shall give notice as follows: |
| (i) To the limited partnership at its principal office of record as shown in its most recent |
| annual report, and no further notice shall be required; or |
| (ii) In the case of a limited partnership that has not yet filed an annual report, then to the |
| domestic limited partnership at the principal office in the articles of organization certificate of |
| limited partnership or to the authorized person listed on the certificate of registration certificate |
| of limited partnership, and no further notice shall be required. |
| (b) A limited partnership that is revoked continues in existence as an entity but may not |
| carry on any activities except as necessary to wind up its activities and affairs and liquidate its |
| assets under §§ 7-13.1-802, 7-13.1-806, 7-13.1-807, 7-13.1-808, and 7-13.1-810, or to apply for |
| reinstatement under § 7-13.1-813. |
| (c) The revocation of a limited partnership does not terminate the authority of its registered |
| agent. |
| SECTION 3. Section 9-1-31 of the General Laws in Chapter 9-1 entitled "Causes of |
| Action" is hereby amended to read as follows: |
| 9-1-31. Public school teachers, supervisors, administrators and employees whose |
| position directly involves work with students — Immunity from liability — Compensation |
| for certain injuries — Duty upon school committees and board of regents. Public school |
| teachers, supervisors, administrators and employees whose position directly involves work |
| with students — Immunity from liability — Compensation for certain injuries — Duty upon |
| school committees and the council on elementary and secondary education. |
| (a) Each school committee and the board of regents council on elementary and |
| secondary education shall protect and save harmless any public school teacher, any supervisor, |
| administrator, or licensed professional employee, any employee whose position requires a |
| certificate from the department of education or board of regents for elementary and secondary |
| education council on elementary and secondary education, any employee whose position |
| directly involves work with students, and any employee of the board of regents council on |
| elementary and secondary education from financial loss and expense, including legal fees and |
| costs, if any, arising out of any claim, demand, or suit for actions resulting in accidental bodily |
| injury to or death of any person, or in accidental damage to or destruction of property, within or |
| without the school building, or any other acts, including but not limited to infringement of any |
| person’s civil rights, resulting in any injury, which acts are not wanton, reckless, malicious, or |
| grossly negligent, as determined by a court of competent jurisdiction, provided the teacher, |
| supervisor, or administrator, at the time of the acts resulting in the injury, death, damages, or |
| destruction, was acting in the discharge of their duties or within the scope of their employment or |
| under the direction of the school committee or the board of regents council on elementary and |
| secondary education. |
| (b) For the purpose of this section, the term “teacher” shall include any student teacher |
| doing practice teaching under the direction of a teacher employed by a school committee or the |
| board of regents council on elementary and secondary education. |
| (c) Each school committee and the board of regents council on elementary and |
| secondary education shall protect and save harmless any teacher or any supervisor, employee |
| whose position directly involves work with students (hereinafter referred to as “employee”), or |
| administrator from financial loss and expense, including payment of expenses reasonably incurred |
| for medical or other service, necessary as a result of an assault upon the teacher, supervisor, |
| employee, or administrator while the person was acting in the discharge of their duties within the |
| scope of their employment or under the direction of the school committee or the board of regents |
| council on elementary and secondary education, which expenses are not paid by the individual |
| teacher’s, supervisor’s, employee’s, or administrator’s workers’ compensation. |
| (d) Any teacher, supervisor, employee whose position directly involves work with students |
| (hereinafter referred to as “employee”), or administrator absent from their employment as a result |
| of injury sustained during an assault upon the teacher, supervisor, employee, or administrator that |
| occurred while the teacher, supervisor, employee, or administrator was discharging their duties |
| within the scope of their employment or under the direction of the school committee or the board |
| of regents council on elementary and secondary education, or for a court appearance in |
| connection with the assault, shall continue to receive their full salary, while so absent, except that |
| the amount of any workers’ compensation award may be deducted from their salary payments |
| during the absence. The time of the absence shall not be charged against the teacher’s, supervisor’s, |
| employee’s, or administrator’s sick leave, vacation time, or personal leave days. |
| (e) A person so injured in accordance with subsection (d) of this section and who receives |
| a disability therefrom, which renders them unable to fully perform their normal duties, shall, if the |
| disability continues for a period of one year, apply to the Rhode Island employees’ retirement |
| system for appropriate benefits for which that person is entitled. |
| SECTION 4. Section 16-16-1 of the General Laws in Chapter 16-16 entitled "Teachers’ |
| Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby |
| amended to read as follows: |
| 16-16-1. Definitions. |
| (a) The following words and phrases used in this chapter, unless a different meaning is |
| plainly required by the context, have the following meanings: |
| (1) “Active member” means any teacher as defined in this section for whom the retirement |
| system is currently receiving regular contributions pursuant to §§ 16-16-22 and 16-16-22.1. |
| Except as otherwise provided in this section, the words and phrases used in this |
| chapter, so far as applicable, have the same meanings as they have in chapters 8 to 10 of title |
| 36. |
| (2) “Beneficiary” means any person in receipt of annuity, benefit, or retirement allowance |
| from the retirement system as provided in this chapter. |
| (3) “Child” includes a stepchild of a deceased member who has been a stepchild for at least |
| one year immediately preceding the date on which the member died or an adopted child of a |
| deceased member without regard to the length of time the child has been adopted. |
| (4) “Former spouse divorced” means a person divorced from a deceased member, but only |
| if the person meets one of the following conditions: |
| (i) Is the mother or father of the deceased member’s child(ren); |
| (ii) Legally adopted the deceased member’s child(ren) while married to the deceased |
| member and while the child(ren) was under the age of eighteen (18) years; |
| (iii) Was married to the deceased member at the time both of them legally adopted a |
| child(ren) under the age of eighteen (18) years; or |
| (iv) Was married to the deceased member for ten (10) or more years and to whom the |
| deceased member was required by a court order to contribute post-divorce support. |
| (5) “Member” means any person included in the membership of the retirement system |
| under the provisions of this chapter. |
| (6) “Prior service” means service as a teacher rendered prior to the first day of July, 1949, |
| certified on the teacher’s prior service certificate and allowable as prior service under the provisions |
| of this chapter. |
| (7) “Retired teacher” means any teacher who retired prior to July 1, 1949, pursuant to the |
| provisions of G.L. 1938, ch. 195, as amended, and who on June 30, 1949, was in receipt of a pension |
| under the provisions of that chapter. |
| (8) “Retirement system” and “system” means the employees’ retirement system of the state |
| of Rhode Island created by chapter 8 of title 36, and “retirement board” means the board established |
| under that chapter. |
| (9) “Salary” or “compensation” includes any and all salary paid for teaching services |
| regardless of whether any part of the salary or compensation is derived from any state or federal |
| grant or appropriation for teachers’ salaries, as the term is defined in § 36-8-1(8). “Average |
| compensation” shall be defined in accordance with section 36-8-1(5)(a). |
| (10) “Service” means service as a teacher as described in subdivision (12) of this section. |
| Periods of employment as teacher, principal, assistant principal, supervisor, superintendent, or |
| assistant superintendent shall be combined in computing periods of service and employment. |
| (11) “Spouse” means the surviving person who was married to a deceased member, but |
| only if the surviving person meets one of the following conditions: |
| (i) Was married to the deceased member for not less than one year immediately prior to the |
| date on which the member died; |
| (ii) Is the mother or father of the deceased member’s child(ren); |
| (iii) Legally adopted the deceased member’s child(ren) while married to the deceased |
| member and while the child(ren) was under the age of eighteen (18) years; or |
| (iv) Was married to the deceased member at the time both of them legally adopted a |
| child(ren) under the age of eighteen (18) years. |
| (12) “Teacher” means a person required to hold a certificate of qualification issued by or |
| under the authority of the board of regents forcouncil on elementary and secondary education and |
| who is engaged in teaching as their principal occupation and is regularly employed as a teacher in |
| the public schools of any city or town in the state, or any formalized, commissioner approved, |
| cooperative service arrangement. The term includes a person employed as a teacher, supervisor, |
| principal, assistant principal, superintendent, or assistant superintendent of schools, director, |
| assistant director, coordinator, consultant, dean, assistant dean, educational administrator, nurse |
| teacher, and attendance officer or any person who has worked in the field of education or is working |
| in the field of education who holds a teaching or administrative certificate. In determining the |
| number of days served by a teacher the total number of days served in any public school of any city |
| or town in the state may be combined for any one school year. The term also includes a school |
| business administrator whether or not the administrator holds a teaching or administrative |
| certificate, and also includes occupational therapists and physical therapists licensed by the |
| department of health and employed by a school committee in the state, or by any formalized, |
| commissioner approved, cooperative service arrangement. |
| (13) “Teaching” includes teaching, supervising, and superintending or assistant |
| superintending of schools. |
| (14) “Total service” means prior service as defined in subdivision (6) of this section, plus |
| service rendered as a member of the system on or after the first day of July, 1949. |
| (15) For purposes of this chapter, “domestic partner” shall be defined as a person who, |
| prior to the decedent’s death, was in an exclusive, intimate, and committed relationship with the |
| decedent, and who certifies by affidavit that their relationship met the following qualifications: |
| (i) Both partners were at least eighteen (18) years of age and were mentally competent to |
| contract; |
| (ii) Neither partner was married to anyone else; |
| (iii) Partners were not related by blood to a degree that would prohibit marriage in the state |
| of Rhode Island; |
| (iv) Partners resided together and had resided together for at least one year at the time of |
| death; and |
| (v) Partners were financially interdependent as evidenced by at least two (2) of the |
| following: |
| (A) Domestic partnership agreement or relationship contract; |
| (B) Joint mortgage or joint ownership of primary residence; |
| (C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint |
| credit account; (IV) Joint lease; and/or |
| (D) The domestic partner had been designated as a beneficiary for the decedent’s will, |
| retirement contract, or life insurance. |
| (b) The masculine pronoun wherever used shall also include the feminine pronoun. |
| (c) Any term not specifically defined in this chapter and specifically defined in chapters 8 |
| — 10 of title 36 shall have the same definition as set forth in chapters 8 — 10 of title 36. |
| SECTION 5. Section 20-2.1-9 of the General Laws in Chapter 20-2.1 entitled "Commercial |
| Fishing Licenses" is hereby amended to read as follows: |
| 20-2.1-9. Powers and duties of the director. |
| It shall be the duty of the director to adopt, implement effective January 1, 2003, and |
| maintain a commercial fisheries licensing system that shall incorporate and be consistent with the |
| purposes of this chapter; in performance of this duty, the director shall follow the guidelines and |
| procedures set forth below: |
| (1) The rulemaking powers of the director to accomplish the purposes of this chapter shall |
| include the following with regard to commercial fishing licenses and commercial fishing by license |
| holders: |
| (i) Types of licenses and/or license endorsement consistent with the provisions of this |
| chapter and applicable sections of this title, and limitations on levels of effort and/or on catch by |
| type of license and/or license endorsement; |
| (ii) Design, use, and identification of gear; |
| (iii) Declarations for data collection purposes of vessels used in commercial fishing, which |
| declaration requirements shall in no way, except as otherwise provided for in law, restrict the use |
| of any vessel less than twenty-five feet (25′) in length overall by appropriate holders of commercial |
| fishing licenses; |
| (iv) Areas in Rhode Island waters where commercial fishing of different types may take |
| place, and where it may be prohibited or limited, and the times and/or seasons when commercial |
| fishing by type or species may be allowed, restricted, or prohibited; |
| (v) Limitations and/or restrictions on effort, gear, catch, or number of license holders and |
| endorsements; and |
| (vi) Emergency rules, as provided for in chapter 35 of title 42, to protect an unexpectedly |
| imperiled fishery resource to provide access to a fisheries resource that is unexpectedly more |
| abundant and to protect the public health and safety from an unexpected hazard or risk. The marine |
| fisheries council shall be notified of all emergency rules on or before their effective date, and no |
| emergency rule shall become a final rule unless it is promulgated as provided for in subdivision (3) |
| of this section. |
| (2) When implementing the system of licensure set forth in §§ 20-2.1-4, 20-2.1-5, 20-2.1- |
| 6, and 20-2.1-7, and other provisions of this title pertaining to commercial fishing licenses, permits, |
| and registrations, the director shall consider the effect of the measure on the access of Rhode |
| Islanders to commercial fishing, and when establishing limitations on effort and/or catch: |
| (i) The effectiveness of the limitation: |
| (A) In achieving duly established conservation or fisheries regeneration goals or |
| requirements; |
| (B) In maintaining the viability of fisheries resources overall, including particularly, the |
| reduction of by-catch, discards, and fish mortality, and in improving efficiency in the utilization of |
| fisheries resources; |
| (C) In complementing federal and regional management programs and the reciprocal |
| arrangements with other states; |
| (ii) The impact of the limitation on persons engaged in commercial fishing on: |
| (A) Present participation in the fishery, including ranges and average levels of participation |
| by different types or classes of participants; |
| (B) Historical fishing practices in, and dependence on, the fishery; |
| (C) The economics of the fishery; |
| (D) The potential effects on the safety of human life at sea; |
| (E) The cultural and social framework relevant to the fishery and any affected fishing |
| communities; and |
| (iii) Any other relevant considerations that the director finds in the rulemaking process; |
| (iv) The following standards for fishery conservation and management, which standards |
| shall be understood and applied so far as practicable and reasonable in a manner consistent with |
| federal fisheries law, regulation, and guidelines: |
| (A) Conservation and management measures shall prevent overfishing, while achieving, |
| on a continuing basis, the optimum yield from each fishery; |
| (B) Conservation and management measures shall be based upon the best scientific |
| information available and analysis of impacts shall consider ecological, economic, and social |
| consequences of the fishery as a whole; |
| (C) Conservation and management measures shall, where practicable, consider efficiency |
| in the utilization of fisheries resources, except that no such measure shall have economic allocation |
| as its sole purpose; |
| (D) Conservation and management measures shall take into account and allow for |
| variations among, and contingencies in, fisheries, fishery resources, and catches; |
| (E) Conservation and management measures shall, where practicable, minimize costs and |
| avoid unnecessary duplication; |
| (F) Conservation and management measures shall, consistent with conservation |
| requirements of this chapter (including the prevention and of overfishing and rebuilding of |
| overfished stocks), take into account the importance of fishery resources to fishing communities in |
| order to (I) Provide for the sustained participation of those communities and (II) To the extent |
| practicable, minimize adverse economic impacts on those communities; |
| (G) Conservation and management measures shall, to the extent practicable: (I) Minimize |
| by-catch and (II) To the extent by-catch cannot be avoided, minimize the mortality of the by-catch; |
| and |
| (H) Conservation and management measures shall, to the extent practicable, promote the |
| safety of human life at sea. |
| (3) Unless otherwise specified, rules and regulations adopted pursuant to this chapter shall |
| conform with the requirements of the Administrative Procedures Act, chapter 35 of title 42. |
| (4) Matters to be considered in establishing license programs under this chapter. The |
| director shall be consistent with the requirements of § 20-2.1-2(6) in establishing and implementing |
| a licensing system in accordance with the provisions of this chapter that shall be designed to |
| accomplish marine fisheries management objectives. The licensing system may limit access to |
| fisheries, particularly commercial fisheries for which there is adequate or greater than adequate |
| harvesting capacity currently in the fishery and for which either a total allowable catch has been |
| set or a total allowable level of fishing effort has been established for the purpose of preventing |
| overfishing of the resource or the dissipation of the economic yield from the fishery. This authority |
| shall include the authority of the director to: |
| (i) Differentiate between the level of access to fisheries provided to license holders or |
| potential license holders on the basis of past performance, dependence on the fishery, or other |
| criteria; |
| (ii) Establish prospective control dates that provide notice to the public that access to, and |
| levels of participation in, a fishery may be restricted and that entrance into, or increases in levels |
| of participation in a fishery after the control date may not be treated in the same way as participation |
| in the fishery prior to the control date; retroactive control dates are prohibited and shall not be used |
| or implemented, unless expressly required by federal law, regulation, or court decision; and |
| (iii) Establish levels of catch by type of license and/or endorsement that shall provide for |
| basic and full harvest and gear levels; quotas may be allocated proportionally among classes of |
| license holders as needed to maintain the viability of different forms of commercial fishing. |
| (5) [Deleted by P.L. 2023, ch. 281, § 2 and P.L. 2023, ch. 282, § 2.] |
| (6) The director, with the advice of the marine fisheries council, shall report annually to |
| the governor, general assembly, and to the citizens concerning the conservation and management |
| of the fishery resources of the state, addressing stock status, performance of fisheries and quotas, |
| management and licensing programs, and other matters of importance. |
| SECTION 6. Section 21-27-6.2 of the General Laws in Chapter 21-27 entitled "Sanitation |
| in Food Establishments" is hereby amended to read as follows: |
| 21-27-6.2. Cottage food manufacture. |
| Notwithstanding the other provisions of this chapter, the department of health shall register |
| cottage food manufacture and the sale of the products of cottage food manufacture direct to |
| consumers whether by pickup or delivery within the state, provided that the requirements of this |
| section are met. |
| (1) The cottage food products shall be produced in a kitchen that is on the premises of a |
| home and meets the standards for kitchens as provided for in minimum housing standards, adopted |
| pursuant to chapter 24.2 of title 45 and the Housing Maintenance and Occupancy Code, adopted |
| pursuant to chapter 24.3 of title 45, and in addition the kitchen shall: |
| (i) Be equipped at minimum with either a two (2) compartment sink or a dishwasher that |
| reaches one hundred fifty degrees Fahrenheit (150° F) after the final rinse and drying cycle and a |
| one compartment sink; |
| (ii) Have sufficient area or facilities, such as portable dish tubs and drain boards, for the |
| proper handling of soiled utensils prior to washing and of cleaned utensils after washing so as not |
| to interfere with safe food handling; equipment, utensils, and tableware shall be air dried; |
| (iii) Have drain boards and food preparation surfaces that shall be of a nonabsorbent, |
| corrosion resistant material such as stainless steel, formica, or other chip resistant, nonpitted |
| surface; |
| (iv) Have self-closing doors for bathrooms that open directly into the kitchen; |
| (v) If the home is on private water supply, the water supply must be tested once per year; |
| (vi) Notwithstanding this subsection, the cottage food products may also be produced in a |
| commercial kitchen licensed by the department and leased or rented by the cottage food registrant |
| provided that a record be maintained as to the dates the commercial kitchen was used and that |
| ingredients used in the production of cottage foods are transported according to applicable food |
| safety standards and regulations promulgated by the department. |
| (2) The cottage food products are prepared and produced ready for sale under the following |
| conditions: |
| (i) Pets are kept out of food preparation and food storage areas at all times; |
| (ii) Cooking facilities shall not be used for domestic food purposes while cottage food |
| products are being prepared; |
| (iii) Garbage is placed and stored in impervious covered receptacles before it is removed |
| from the kitchen, which removal shall be at least once each day that the kitchen is used for cottage |
| food manufacture; |
| (iv) Any laundry facilities that may be in the kitchen shall not be used during cottage food |
| manufacture; |
| (v) Recipe(s) for each cottage food product with all the ingredients and quantities listed, |
| and processing times and procedures, are maintained in the kitchen for review and inspection; |
| (vi) An affixed label that contains: |
| (A) Name, address, and telephone number; |
| (B) The ingredients of the cottage food product, in descending order of predominance by |
| weight or volume; |
| (C) Allergen information, as specified by federal and state labeling requirements, such as |
| milk, eggs, tree nuts, peanuts, wheat, and soybeans; and |
| (D) The following statement printed in at least ten-point type in a clear and conspicuous |
| manner that provides contrast to the background label: “Made by a Cottage Food Business |
| Registrant that is not Subject to Routine Government Food Safety Inspection,” unless products |
| have been prepared in a commercial kitchen licensed by the department. |
| (3) Cottage food manufacture shall be limited to the production of baked goods that do not |
| require refrigeration or time/temperature control for safety, including but not limited to: |
| (i) Double crust pies; |
| (ii) Yeast breads; |
| (iii) Biscuits, brownies, cookies, muffins; and |
| (iv) Cakes that do not require refrigeration or temperature-controlled environment; and |
| (v) Other goods as defined by the department. |
| (4) Each cottage food manufacturer shall be registered with the department of health and |
| shall require a notarized affidavit of compliance, in any form that the department may require, from |
| the applicant that the requirements of this section have been met and the operation of the kitchen |
| shall be in conformity with the requirements of this section. Prior to the initial registration, each |
| cottage food manufacturer is required to successfully complete a Food Safety Manager Course, any |
| American Standards Institute approved food handler course, or any other course approved by the |
| department. A certificate of registration shall be issued by the department upon the payment of a |
| fee as set forth in § 23-1-54 and the submission of an affidavit of compliance. The certificate of |
| registration shall be valid for one year after the date of issuance; provided, however, that the |
| certificate may be revoked by the director at any time for noncompliance with the requirements of |
| the section. The certificate of registration, with a copy of the affidavit of compliance, shall be kept |
| in the kitchen where the cottage food manufacture takes place. The director of health shall have the |
| authority to develop and issue a standard form for the affidavit of compliance to be used by persons |
| applying for a certificate of registration; the form shall impose no requirements or certifications |
| beyond those set forth in this section and § 21-27-1(6) 21-27-6.1. No certificates of registration |
| shall be issued by the department prior to November 1, 2022. |
| (5) No such operation shall engage in consignment or wholesale sales. The following |
| additional locational sales by any such cottage food operation shall be prohibited: (i) Grocery |
| stores; (ii) Restaurants; (iii) Long-term-care facilities; (iv) Group homes; (v) Daycare facilities; |
| and (vi) Schools. Advertising and sales by internet, mail, and phone are permissible, provided the |
| cottage food licensee or their designee shall deliver, in person, to the customer within the state. |
| (6) Total annual gross sales for a cottage food operation shall not exceed fifty thousand |
| dollars ($50,000) per calendar year. If annual gross sales exceed the maximum annual gross sales |
| amount allowed, the cottage food registrant shall either obtain a food processor license or cease |
| operations. The director of health shall request documentation to verify the annual gross sales figure |
| of any cottage food operation. |
| (7) Sales on all cottage foods are subject to applicable sales tax pursuant to § 44-18-7. |
| (8) The director of health or designee may inspect a cottage food operation at any time to |
| ensure compliance with the provisions of this section. Nothing in this section shall be construed to |
| prohibit the director of health or designee of the director from investigating the registered area of a |
| cottage food operation in response to a foodborne illness outbreak, consumer complaint, or other |
| public health emergency. |
| SECTION 7. Section 21-28.6-12 of the General Laws in Chapter 21-28.6 entitled "The |
| Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act" is hereby amended to read as |
| follows: |
| 21-28.6-12. Compassion centers. |
| (a) A compassion center licensed under this section may acquire, possess, cultivate, |
| manufacture, deliver, transfer, transport, supply, or dispense medical marijuana, or related supplies |
| and educational materials, to registered qualifying patients and their registered primary caregivers |
| or authorized purchasers, or out-of-state patient cardholders or other marijuana establishment |
| licensees. Except as specifically provided to the contrary, all provisions of this chapter (the Edward |
| O. Hawkins and Thomas C. Slater medical marijuana act), apply to a compassion center unless the |
| provision(s) conflict with a provision contained in this section. |
| (b) License of compassion centers — authority of the departments of health and |
| business regulation: |
| (1) Not later than ninety (90) days after the effective date of this chapter, the department |
| of health shall promulgate regulations governing the manner in which it shall consider applications |
| for licenses for compassion centers, including regulations governing: |
| (i) The form and content of license and renewal applications; |
| (ii) Minimum oversight requirements for compassion centers; |
| (iii) Minimum record-keeping requirements for compassion centers; |
| (iv) Minimum security requirements for compassion centers; and |
| (v) Procedures for suspending, revoking, or terminating the license of compassion centers |
| that violate the provisions of this section or the regulations promulgated pursuant to this subsection. |
| (2) Within ninety (90) days of the effective date of this chapter, the department of health |
| shall begin accepting applications for the operation of a single compassion center. |
| (3) Within one hundred fifty (150) days of the effective date of this chapter, the department |
| of health shall provide for at least one public hearing on the granting of an application to a single |
| compassion center. |
| (4) Within one hundred ninety (190) days of the effective date of this chapter, the |
| department of health shall grant a single license to a single compassion center, providing at least |
| one applicant has applied who meets the requirements of this chapter. |
| (5) If at any time after fifteen (15) months after the effective date of this chapter, there is |
| no operational compassion center in Rhode Island, the department of health shall accept |
| applications, provide for input from the public, and issue a license for a compassion center if a |
| qualified applicant exists. |
| (6) Within two (2) years of the effective date of this chapter, the department of health shall |
| begin accepting applications to provide licenses for two (2) additional compassion centers. The |
| department shall solicit input from the public, and issue licenses if qualified applicants exist. |
| (7)(i) Any time a compassion center license is revoked, is relinquished, or expires on or |
| before December 31, 2016, the department of health shall accept applications for a new compassion |
| center. |
| (ii) Any time a compassion center license is revoked, is relinquished, or expires on or after |
| January 1, 2017, the department of business regulation shall accept applications for a new |
| compassion center. |
| (8)(i) If at any time after three (3) years after the effective date of this chapter and on or |
| before December 31, 2016, fewer than three (3) compassion centers are holding valid licenses in |
| Rhode Island, the department of health shall accept applications for a new compassion center. If at |
| any time on or after January 1, 2017, fewer than three (3) compassion centers are holding valid |
| licenses in Rhode Island, the department of business regulation shall accept applications for a new |
| compassion center. There shall be nine (9) compassion centers that may hold valid licenses at one |
| time. If at any time on or after July 1, 2019, fewer than nine (9) compassion centers are holding |
| valid licenses in Rhode Island, the department of business regulation shall accept applications for |
| new compassion centers and shall continue the process until nine (9) licenses have been issued by |
| the department of business regulation. |
| (9) Any compassion center application selected for approval by the department of health |
| on or before December 31, 2016, or selected for approval by the department of business regulation |
| on or after January 1, 2017, shall remain in full force and effect, notwithstanding any provisions of |
| this chapter to the contrary, and shall be subject to state law adopted herein and rules and regulations |
| adopted by the departments of health and business regulation subsequent to passage of this |
| legislation. |
| (10) A licensed cultivator may apply for, and be issued, an available compassion center |
| license, provided that the licensed cultivation premises is disclosed on the compassion center |
| application as the permitted second location for growing medical marijuana in accordance with |
| subsection (c)(i) (c)(1)(iii) of this section. If a licensed cultivator is issued an available compassion |
| center license, their cultivation facility license will merge with and into their compassion center |
| license in accordance with regulations promulgated by the department of business regulation. Once |
| merged, the cultivation of medical marijuana may then be conducted under the compassion center |
| license in accordance with this section and the cultivation license will be considered null and void |
| and of no further force or effect. |
| (c) Compassion center and agent applications and license: |
| (1) Each application for a compassion center shall be submitted in accordance with |
| regulations promulgated by the department of business regulation and shall include, but not be |
| limited to: |
| (i) A non-refundable application fee paid to the department in the amount of ten thousand |
| dollars ($10,000); |
| (ii) The proposed legal name and proposed articles of incorporation of the compassion |
| center; |
| (iii) The proposed physical address of the compassion center, if a precise address has been |
| determined, or, if not, the general location where it would be located. This may include a second |
| location for the cultivation of medical marijuana; |
| (iv) A description of the enclosed, locked facility that would be used in the cultivation of |
| medical marijuana; |
| (v) The name, address, and date of birth of each principal officer and board member of the |
| compassion center; |
| (vi) Proposed security and safety measures that shall include at least one security alarm |
| system for each location, planned measures to deter and prevent the unauthorized entrance into |
| areas containing marijuana and the theft of marijuana, as well as a draft, employee-instruction |
| manual including security policies, safety and security procedures, personal safety, and crime- |
| prevention techniques; and |
| (vii) Proposed procedures to ensure accurate record keeping. |
| (2)(i) For applications submitted on or before December 31, 2016, any time one or more |
| compassion center license applications are being considered, the department of health shall also |
| allow for comment by the public and shall solicit input from registered qualifying patients, |
| registered primary caregivers, and the towns or cities where the applicants would be located; |
| (ii) For applications submitted on or after January 1, 2017, any time one or more |
| compassion center license applications are being considered, the department of business regulation |
| shall also allow for comment by the public and shall solicit input from registered qualifying |
| patients, registered primary caregivers, and the towns or cities where the applicants would be |
| located. |
| (3) Each time a new compassion center license is issued, the decision shall be based upon |
| the overall health needs of qualified patients and the safety of the public, including, but not limited |
| to, the following factors: |
| (i) Convenience to patients from areas throughout the state of Rhode Island; |
| (ii) The applicant’s ability to provide a steady supply to the registered qualifying patients |
| in the state; |
| (iii) The applicant’s experience running a non-profit or business; |
| (iv) The interests of qualifying patients regarding which applicant be granted a license; |
| (v) The interests of the city or town where the dispensary would be located taking into |
| consideration need and population; |
| (vi) Nothing herein shall prohibit more than one compassion center being geographically |
| located in any city or town; |
| (vii) The sufficiency of the applicant’s plans for record keeping and security, which records |
| shall be considered confidential healthcare information under Rhode Island law and are intended |
| to be deemed protected healthcare information for purposes of the Federal Health Insurance |
| Portability and Accountability Act of 1996, as amended; and |
| (viii) The sufficiency of the applicant’s plans for safety and security, including proposed |
| location, security devices employed, and staffing. |
| (4) A compassion center approved by the department of health on or before December 31, |
| 2016, shall submit the following to the department before it may begin operations: |
| (i) A fee paid to the department in the amount of five thousand dollars ($5,000); |
| (ii) The legal name and articles of incorporation of the compassion center; |
| (iii) The physical address of the compassion center; this may include a second address for |
| the secure cultivation of marijuana; |
| (iv) The name, address, and date of birth of each principal officer and board member of the |
| compassion center; and |
| (v) The name, address, and date of birth of any person who will be an agent of, employee, |
| or volunteer of the compassion center at its inception. |
| (5)(i) A compassion center approved or renewed by the department of business regulation |
| on or after January 1, 2017, but before July 1, 2019, shall submit materials pursuant to regulations |
| promulgated by the department of business regulation before it may begin operations: |
| (A) A fee paid to the department in the amount of five thousand dollars ($5,000); |
| (B) The legal name and articles of incorporation of the compassion center; |
| (C) The physical address of the compassion center; this may include a second address for |
| the secure cultivation of medical marijuana; |
| (D) The name, address, and date of birth of each principal officer and board member of the |
| compassion center; |
| (E) The name, address, and date of birth of any person who will be an agent, employee, or |
| volunteer of the compassion center at its inception. |
| (ii) A compassion center approved or renewed by the department of business regulation on |
| or after July 1, 2019, shall submit materials pursuant to regulations promulgated by the department |
| of business regulation before it may begin operations, which shall include but not be limited to: |
| (A) A fee paid to the department in the amount of five hundred thousand dollars |
| ($500,000); |
| (B) The legal name and articles of incorporation of the compassion center; |
| (C) The physical address of the compassion center; this may include a second address for |
| the secure cultivation of medical marijuana; |
| (D) The name, address, and date of birth of each principal officer and board member of the |
| compassion center, and any person who has a direct or indirect ownership interest in any marijuana |
| establishment licensee, which ownership interest shall include, but not be limited to, any interests |
| arising pursuant to the use of shared management companies, management agreements or other |
| agreements that afford third-party management or operational control, or other familial or business |
| relationships between compassion center or cultivator owners, members, officers, directors, |
| managers, investors, agents, or key persons that effect dual license interests as determined by the |
| department of business regulation; |
| (E) The name, address, and date of birth of any person who will be an agent, employee, or |
| volunteer of the compassion center at its inception. |
| (6) Except as provided in subsection (c)(7) of this section, the department of health or the |
| department of business regulation shall issue each principal officer, board member, agent, |
| volunteer, and employee of a compassion center a registry identification card or renewal card after |
| receipt of the person’s name, address, date of birth; a fee in an amount established by the department |
| of health or the department of business regulation; and, except in the case of an employee, |
| notification to the department of health or the department of business regulation by the department |
| of public safety division of state police, attorney general’s office, or local law enforcement that the |
| registry identification card applicant has not been convicted of a felony drug offense or has not |
| entered a plea of nolo contendere for a felony drug offense and received a sentence of probation. |
| Each card shall specify that the cardholder is a principal officer, board member, agent, volunteer, |
| or employee of a compassion center and shall contain the following: |
| (i) The name, address, and date of birth of the principal officer, board member, agent, |
| volunteer, or employee; |
| (ii) The legal name of the compassion center to which the principal officer, board member, |
| agent, volunteer, or employee is affiliated; |
| (iii) A random identification number that is unique to the cardholder; |
| (iv) The date of issuance and expiration date of the registry identification card; and |
| (v) A photograph, if the department of health or the department of business regulation |
| decides to require one. |
| (7) Except as provided in this subsection, neither the department of health nor the |
| department of business regulation shall issue a registry identification card to any principal officer, |
| board member, or agent, of a compassion center who has been convicted of a felony drug offense |
| or has entered a plea of nolo contendere for a felony drug offense and received a sentence of |
| probation. If a registry identification card is denied, the compassion center will be notified in |
| writing of the purpose for denying the registry identification card. A registry identification card |
| may be granted if the offense was for conduct that occurred prior to the enactment of the Edward |
| O. Hawkins and Thomas C. Slater medical marijuana act or that was prosecuted by an authority |
| other than the state of Rhode Island and for which the Edward O. Hawkins and Thomas C. Slater |
| medical marijuana act would otherwise have prevented a conviction. |
| (i) All registry identification card applicants shall apply to the department of public safety |
| division of state police, the attorney general’s office, or local law enforcement for a national |
| criminal identification records check that shall include fingerprints submitted to the federal bureau |
| of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo |
| contendere for a felony drug offense with a sentence of probation, and in accordance with the rules |
| promulgated by the department of health and the department of business regulation, the department |
| of public safety division of state police, the attorney general’s office, or local law enforcement shall |
| inform the applicant, in writing, of the nature of the felony and the department of public safety |
| division of state police shall notify the department of health or the department of business |
| regulation, in writing, without disclosing the nature of the felony, that a felony drug offense |
| conviction or a plea of nolo contendere for a felony drug offense with probation has been found. |
| (ii) In those situations in which no felony drug offense conviction or plea of nolo |
| contendere for a felony drug offense with probation has been found, the department of public safety |
| division of state police, the attorney general’s office, or local law enforcement shall inform the |
| applicant and the department of health or the department of business regulation, in writing, of this |
| fact. |
| (iii) All registry identification card applicants, except for employees with no ownership, |
| equity, financial interest, or managing control of a marijuana establishment license, shall be |
| responsible for any expense associated with the criminal background check with fingerprints. |
| (8) A registry identification card of a principal officer, board member, agent, volunteer, |
| employee, or any other designation required by the department of business regulation shall expire |
| one year after its issuance, or upon the expiration of the licensed organization’s license, or upon |
| the termination of the principal officer, board member, agent, volunteer, or employee’s relationship |
| with the compassion center, whichever occurs first. |
| (9) A compassion center cardholder shall notify and request approval from the department |
| of business regulation of any change in his or her name or address within ten (10) days of the |
| change. A compassion center cardholder who fails to notify the department of business regulation |
| of any of these changes is responsible for a civil infraction, punishable by a fine of no more than |
| one hundred fifty dollars ($150). |
| (10) When a compassion center cardholder notifies the department of health or the |
| department of business regulation of any changes listed in this subsection, the department shall |
| issue the cardholder a new registry identification card within ten (10) days of receiving the updated |
| information and a ten-dollar ($10.00) fee. |
| (11) If a compassion center cardholder loses his or her registry identification card, he or |
| she shall notify the department of health or the department of business regulation and submit a ten- |
| dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the department |
| shall issue a new registry identification card with new random identification number. |
| (12) On or before December 31, 2016, a compassion center cardholder shall notify the |
| department of health of any disqualifying criminal convictions as defined in subsection (c)(7) of |
| this section. The department of health may choose to suspend and/or revoke his or her registry |
| identification card after the notification. |
| (13) On or after January 1, 2017, a compassion center cardholder shall notify the |
| department of business regulation of any disqualifying criminal convictions as defined in |
| subsection (c)(7) of this section. The department of business regulation may choose to suspend |
| and/or revoke his or her registry identification card after the notification. |
| (14) If a compassion center cardholder violates any provision of this chapter or regulations |
| promulgated hereunder as determined by the departments of health and business regulation, his or |
| her registry identification card may be suspended and/or revoked. |
| (d) Expiration or termination of compassion center: |
| (1) On or before December 31, 2016, a compassion center’s license shall expire two (2) |
| years after its license is issued. On or after January 1, 2017, a compassion center’s license shall |
| expire one year after its license is issued. The compassion center may submit a renewal application |
| beginning sixty (60) days prior to the expiration of its license. |
| (2) The department of health or the department of business regulation shall grant a |
| compassion center’s renewal application within thirty (30) days of its submission if the following |
| conditions are all satisfied: |
| (i) The compassion center submits the materials required under subsections (c)(4) and |
| (c)(5) of this section, including a five-hundred-thousand-dollar ($500,000) fee; |
| (ii) The compassion center’s license has never been suspended for violations of this chapter |
| or regulations issued pursuant to this chapter; and |
| (iii) The department of business regulation finds that the compassion center is adequately |
| providing patients with access to medical marijuana at reasonable rates. |
| (3) If the department of health or the department of business regulation determines that any |
| of the conditions listed in subsections (d)(2)(i) — (iii) of this section have not been met, the |
| department may begin an open application process for the operation of a compassion center. In |
| granting a new license, the department of health or the department of business regulation shall |
| consider factors listed in subsection (c)(3) of this section. |
| (4) The department of business regulation shall issue a compassion center one or more |
| thirty-day (30) temporary licenses after that compassion center’s license would otherwise expire if |
| the following conditions are all satisfied: |
| (i) The compassion center previously applied for a renewal, but the department had not yet |
| come to a decision; |
| (ii) The compassion center requested a temporary license; and |
| (iii) The compassion center has not had its license suspended or revoked due to violations |
| of this chapter or regulations issued pursuant to this chapter. |
| (5) A compassion center’s license shall be denied, suspended, or subject to revocation if |
| the compassion center: |
| (i) Possesses an amount of marijuana exceeding the limits established by this chapter; |
| (ii) Is in violation of the laws of this state; |
| (iii) Is in violation of other departmental regulations; |
| (iv) Employs or enters into a business relationship with a medical practitioner who provides |
| written certification of a qualifying patient’s medical condition; or |
| (v) If any compassion center owner, member, officer, director, manager, investor, agent, |
| or key person as defined in regulations promulgated by the department of business regulation, has |
| any interest, direct or indirect, in another compassion center or another licensed cultivator, except |
| as permitted in subsection (b)(10) of this section or pursuant to § 21-28.11-19. Prohibited interests |
| shall also include interests arising pursuant to the use of shared management companies, |
| management agreements, or other agreements that afford third-party management or operational |
| control, or other familial or business relationships between compassion center or cultivator owners, |
| members, officers, directors, managers, investors, agents, or key persons that effect dual license |
| interests as determined by the department of business regulation. |
| (e) Inspection. Compassion centers are subject to reasonable inspection by the department |
| of health, division of facilities regulation, and the department of business regulation. During an |
| inspection, the departments may review the compassion center’s confidential records, including its |
| dispensing records, which shall track transactions according to qualifying patients’ registry |
| identification numbers to protect their confidentiality. |
| (f) Compassion center requirements: |
| (1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit |
| of its patients. A compassion center need not be recognized as a tax-exempt organization by the |
| Internal Revenue Service. A compassion center shall be subject to regulations promulgated by the |
| department of business regulation for general operations and record keeping, which shall include, |
| but not be limited to: |
| (i) Minimum security and surveillance requirements; |
| (ii) Minimum requirements for workplace safety and sanitation; |
| (iii) Minimum requirements for product safety and testing; |
| (iv) Minimum requirements for inventory tracking and monitoring; |
| (v) Minimum requirements for the secure transport and transfer of medical marijuana; |
| (vi) Minimum requirements to address odor mitigation; |
| (vii) Minimum requirements for product packaging and labeling; |
| (viii) Minimum requirements and prohibitions for advertising; |
| (ix) Minimum requirements for the testing and destruction of marijuana. Wherever |
| destruction of medical marijuana and medical marijuana product is required to bring a person or |
| entity into compliance with any provision of this chapter, any rule or regulation promulgated |
| thereunder, or any administrative order issued in accordance therewith, the director of the |
| department of business regulation may designate his or her employees or agents to facilitate the |
| destruction; |
| (x) A requirement that if a compassion center violates this chapter, or any regulation |
| thereunder, and the department of business regulation determines that violation does not pose an |
| immediate threat to public health or public safety, the compassion center shall pay to the department |
| of business regulation a fine of no less than five-hundred dollars ($500); and |
| (xi) A requirement that if a compassion center violates this chapter, or any regulation |
| promulgated hereunder, and the department of business regulation determines that the violation |
| poses an immediate threat to public health or public safety, the compassion center shall pay to the |
| department of business regulation a fine of no less than two thousand dollars ($2,000) and the |
| department shall be entitled to pursue any other enforcement action provided for under this chapter |
| and the regulations. |
| (2) A compassion center may not be located within one thousand feet (1,000′) of the |
| property line of a preexisting public or private school. |
| (3) On or before December 31, 2016, a compassion center shall notify the department of |
| health within ten (10) days of when a principal officer, board member, agent, volunteer, or |
| employee ceases to work at the compassion center. On or after January 1, 2017, a compassion |
| center shall notify the department of business regulation within ten (10) days of when a principal |
| officer, board member, agent, volunteer, or employee ceases to work at the compassion center. His |
| or her card shall be deemed null and void and the person shall be liable for any penalties that may |
| apply to any nonmedical possession or use of marijuana by the person. |
| (4)(i) On or before December 31, 2016, a compassion center shall notify the department of |
| health in writing of the name, address, and date of birth of any new principal officer, board member, |
| agent, volunteer, or employee and shall submit a fee in an amount established by the department |
| for a new registry identification card before that person begins his or her relationship with the |
| compassion center; |
| (ii) On or after January 1, 2017, a compassion center shall notify the department of business |
| regulation, in writing, of the name, address, and date of birth of any new principal officer, board |
| member, agent, volunteer, or employee and shall submit a fee in an amount established by the |
| department of business regulation for a new registry identification card before that person begins |
| his or her relationship with the compassion center; |
| (5) A compassion center shall implement appropriate security measures to deter and |
| prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and |
| shall ensure that each location has an operational security alarm system. Each compassion center |
| shall request that the department of public safety division of state police visit the compassion center |
| to inspect the security of the facility and make any recommendations regarding the security of the |
| facility and its personnel within ten (10) days prior to the initial opening of each compassion center. |
| The recommendations shall not be binding upon any compassion center, nor shall the lack of |
| implementation of the recommendations delay or prevent the opening or operation of any center. |
| If the department of public safety division of state police does not inspect the compassion center |
| within the ten-day (10) period, there shall be no delay in the compassion center’s opening. |
| (6) The operating documents of a compassion center shall include procedures for the |
| oversight of the compassion center and procedures to ensure accurate record keeping. |
| (7) A compassion center is prohibited from acquiring, possessing, cultivating, |
| manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any |
| purpose except to assist patient cardholders with the medical use of marijuana directly or through |
| the qualifying patient’s primary caregiver or authorized purchaser. This provision shall not apply |
| to hybrid cannabis retailers authorized pursuant to the provisions of § 21-28.11-10. |
| (8) All principal officers and board members of a compassion center must be residents of |
| the state of Rhode Island. |
| (9) Each time a new, registered, qualifying patient visits a compassion center, it shall |
| provide the patient with a frequently-asked-questions sheet, designed by the department, that |
| explains the limitations on the right to use medical marijuana under state law. |
| (10) Effective July 1, 2017, each compassion center shall be subject to any regulations |
| promulgated by the departments of health and business regulation that specify how marijuana must |
| be tested for items, included but not limited to, cannabinoid profile and contaminants. |
| (11) Effective January 1, 2017, each compassion center shall be subject to any product |
| labeling requirements promulgated by the department of business regulation. |
| (12) Each compassion center shall develop, implement, and maintain on the premises |
| employee, volunteer, and agent policies and procedures to address the following requirements: |
| (i) A job description or employment contract developed for all employees and agents, and |
| a volunteer agreement for all volunteers, that includes duties, authority, responsibilities, |
| qualifications, and supervision; and |
| (ii) Training in, and adherence to, state confidentiality laws. |
| (13) Each compassion center shall maintain a personnel record for each employee, agent, |
| and volunteer that includes an application and a record of any disciplinary action taken. |
| (14) Each compassion center shall develop, implement, and maintain on the premises an |
| on-site training curriculum, or enter into contractual relationships with outside resources capable |
| of meeting employee training needs, that includes, but is not limited to, the following topics: |
| (i) Professional conduct, ethics, and patient confidentiality; and |
| (ii) Informational developments in the field of medical use of marijuana. |
| (15) Each compassion center entity shall provide each employee, agent, and volunteer, at |
| the time of his or her initial appointment, training in the following: |
| (i) The proper use of security measures and controls that have been adopted; and |
| (ii) Specific procedural instructions on how to respond to an emergency, including robbery |
| or violent accident. |
| (16) All compassion centers shall prepare training documentation for each employee and |
| volunteer and have employees and volunteers sign a statement indicating the date, time, and place |
| the employee and volunteer received the training and topics discussed, to include name and title of |
| presenters. The compassion center shall maintain documentation of an employee’s and a |
| volunteer’s training for a period of at least six (6) months after termination of an employee’s |
| employment or the volunteer’s volunteering. |
| (g) Maximum amount of usable marijuana to be dispensed: |
| (1) A compassion center or principal officer, board member, agent, volunteer, or employee |
| of a compassion center may not dispense more than two and one-half ounces (2.5 oz.) of usable |
| marijuana, or its equivalent, to a qualifying patient directly or through a qualifying patient’s |
| primary caregiver or authorized purchaser during a fifteen-day (15) period. |
| (2) A compassion center or principal officer, board member, agent, volunteer, or employee |
| of a compassion center may not dispense an amount of usable marijuana, or its equivalent, to a |
| patient cardholder, qualifying patient, a qualifying patient’s primary caregiver, or a qualifying |
| patient’s authorized purchaser that the compassion center, principal officer, board member, agent, |
| volunteer, or employee knows would cause the recipient to possess more marijuana than is |
| permitted under the Edward O. Hawkins and Thomas C. Slater medical marijuana act. |
| (3) Compassion centers shall utilize a database administered by the departments of health |
| and business regulation. The database shall contain all compassion centers’ transactions according |
| to qualifying patients’, authorized purchasers’, and primary caregivers’ registry identification |
| numbers to protect the confidentiality of patient personal and medical information. Compassion |
| centers will not have access to any applications or supporting information submitted by qualifying |
| patients, authorized purchasers or primary caregivers. Before dispensing marijuana to any patient |
| or authorized purchaser, the compassion center must utilize the database to ensure that a qualifying |
| patient is not dispensed more than two and one-half ounces (2.5 oz.) of usable marijuana or its |
| equivalent directly or through the qualifying patient’s primary caregiver or authorized purchaser |
| during a fifteen-day (15) period. |
| (4) A compassion center operating as a hybrid cannabis retailer authorized to conduct adult |
| use cannabis sales pursuant to the provisions of § 21-28.11-10 may sell up to one ounce (1 oz.) of |
| cannabis to a person at least twenty-one (21) years of age as an intended consumer, in accordance |
| with the provisions of chapter 28.11 of title 21. |
| (h) Immunity: |
| (1) No licensed compassion center shall be subject to prosecution; search, except by the |
| departments pursuant to subsection (e) of this section; seizure; or penalty in any manner, or denied |
| any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business, |
| occupational, or professional licensing board or entity, solely for acting in accordance with this |
| section to assist registered qualifying patients. |
| (2) No licensed compassion center shall be subject to prosecution, seizure, or penalty in |
| any manner, or denied any right or privilege, including, but not limited to, civil penalty or |
| disciplinary action, by a business, occupational, or professional licensing board or entity, for |
| selling, giving, or distributing marijuana in whatever form, and within the limits established by, the |
| department of health or the department of business regulation to another registered compassion |
| center. |
| (3) No principal officers, board members, agents, volunteers, or employees of a registered |
| compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in any manner, |
| or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by |
| a business, occupational, or professional licensing board or entity, solely for working for or with a |
| compassion center to engage in acts permitted by this section. |
| (4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or |
| denied any right or privilege, including, but not limited to, civil penalty, disciplinary action, |
| termination, or loss of employee or pension benefits, for any and all conduct that occurs within the |
| scope of his or her employment regarding the administration, execution and/or enforcement of this |
| act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section. |
| (i) Prohibitions: |
| (1) A compassion center must limit its inventory of seedlings, plants, and marijuana to |
| reflect the projected needs of qualifying patients; |
| (2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a |
| person other than a patient cardholder or to a qualified patient’s primary caregiver or authorized |
| purchaser. This provision shall not apply to hybrid cannabis retailers authorized pursuant to the |
| provisions of § 21-28.11-10; |
| (3) A compassion center may not procure, purchase, transfer, or sell marijuana to or from |
| any entity other than a marijuana establishment licensee in accordance with the provisions of this |
| chapter and chapter 28.11 of title 21 and the rules and regulations promulgated by the commission; |
| (4) A person found to have violated subsection (h)(2) (i)(2) or (h)(3) (i)(3) of this section |
| may not be an employee, agent, volunteer, principal officer, or board member of any compassion |
| center; |
| (5) An employee, agent, volunteer, principal officer or board member of any compassion |
| center found in violation of subsection (h)(2) (i)(2) or (h)(3) (i)(3) of this section shall have his or |
| her registry identification revoked immediately; |
| (6) No person who has been convicted of a felony drug offense or has entered a plea of |
| nolo contendere for a felony drug offense with a sentence of probation may be the principal officer, |
| board member, or agent of a compassion center unless the department has determined that the |
| person’s conviction was for the medical use of marijuana or assisting with the medical use of |
| marijuana in accordance with the terms and conditions of this chapter. A person who is employed |
| by or is an agent, volunteer, principal officer, or board member of a compassion center in violation |
| of this section is guilty of a civil violation punishable by a fine of up to one thousand dollars |
| ($1,000). A subsequent violation of this section is a misdemeanor; and |
| (7) After March 1, 2023, and in accordance with a timeline established by the commission, |
| no compassion center shall accept any out-of-state medical marijuana card unless the patient also |
| possesses and produces a valid government identification demonstrating residency in the same state |
| that issued the medical marijuana card. |
| (j) Legislative oversight committee: |
| (1) The general assembly shall appoint a nine-member (9) oversight committee comprised |
| of: one member of the house of representatives; one member of the senate; one physician to be |
| selected from a list provided by the Rhode Island medical society; one nurse to be selected from a |
| list provided by the Rhode Island state nurses association; two (2) registered qualifying patients; |
| one registered primary caregiver; one patient advocate to be selected from a list provided by the |
| Rhode Island patient advocacy coalition; and the superintendent of the department of public safety, |
| or his/her designee. |
| (2) The oversight committee shall meet at least six (6) times per year for the purpose of |
| evaluating and making recommendations to the general assembly regarding: |
| (i) Patients’ access to medical marijuana; |
| (ii) Efficacy of compassion centers; |
| (iii) Physician participation in the Medical Marijuana Program; |
| (iv) The definition of qualifying medical condition; and |
| (v) Research studies regarding health effects of medical marijuana for patients. |
| (3) On or before January 1 of every even numbered year, the oversight committee shall |
| report to the general assembly on its findings. |
| (k) License required. No person or entity shall engage in activities described in this section |
| without a compassion center license issued by the department of business regulation. |
| SECTION 8. Sections 21-28.10-3, 21-28.10-4 and 21-28.10-7 of the General Laws in |
| Chapter 21-28.10 entitled "Opioid Stewardship Act" are hereby amended to read as follows: |
| 21-28.10-3. Determination of market share and registration fee. |
| (1) The total opioid stewardship fund amount shall be five million dollars ($5,000,000) |
| annually, subject to downward adjustments pursuant to § 21-28.10-7. |
| (2) Each manufacturer’s, distributor’s, and wholesaler’s annual opioid registration fee shall |
| be based on that licensee’s in-state market share. |
| (3) The following sales will not be included when determining a manufacturer’s, |
| distributor’s, or wholesaler’s market share: |
| (i) The gross, in-state opioid sales attributed to the sale of buprenorphine or methadone; |
| (ii) The gross, in-state opioid sales sold or distributed directly to opioid treatment programs, |
| data-waivered practitioners, or hospice providers licensed pursuant to chapter 17 of title 23; |
| (iii) Any sales from those opioids manufactured in Rhode Island, but whose final point of |
| delivery or sale is outside of Rhode Island; |
| (iv) Any sales of anesthesia or epidurals as defined in regulation by the department of |
| health; and |
| (v) Any in-state intracompany transfers of opioids between any division, affiliate, |
| subsidiary, parent, or other entity under complete and common ownership and control. |
| (4) The executive office shall provide to the licensee, in writing, on or before October 15 |
| annually, the licensee’s market share for the previous calendar year. The executive office shall |
| notify the licensee, in writing, on or before October 15 of each year, of its market share for the prior |
| calendar year based on the opioids sold or distributed for the prior calendar year. |
| 21-28.10-4. Reports and records. |
| (a) Each manufacturer, distributor, and wholesaler licensed to manufacture or distribute |
| opioids in the state of Rhode Island shall provide to the secretary a report detailing all opioids sold |
| or distributed by that manufacturer or distributor in the state of Rhode Island. Such report shall |
| include: |
| (1) The manufacturer’s, distributor’s, or wholesaler’s name, address, phone number, DEA |
| registration number, and controlled substance license number issued by the department of health; |
| (2) The name, address, and DEA registration number of the entity to whom the opioid was |
| sold or distributed; |
| (3) The date of the sale or distribution of the opioids; |
| (4) The gross receipt total, in dollars, of all opioids sold or distributed; |
| (5) The name and National Drug Code of the opioids sold or distributed; |
| (6) The number of containers and the strength and metric quantity of controlled substance |
| in each container of the opioids sold or distributed; and |
| (7) Any other elements as deemed necessary or advisable by the secretary. |
| (b) Initial and future reports. This information shall be reported annually to the executive |
| office via ARCOS or in such other form as defined or approved by the secretary; provided, |
| however, that the initial report provided pursuant to subsection (a) shall consist of all opioids sold |
| or distributed in the state of Rhode Island for the 2018 calendar year, and shall be submitted by |
| September 1, 2019. Subsequent annual reports shall be submitted by April 15 of each year based |
| on the actual opioid sales and distributions of the prior calendar year. |
| 21-28.10-7. Licensee opportunity to appeal. |
| (a) A licensee shall be afforded an opportunity to submit information to the secretary |
| documenting or evidencing that the market share provided to the licensee (or amounts paid |
| thereunder), pursuant to § 21-28.10-3(4), is in error or otherwise not warranted. The executive |
| office may consider and examine such additional information that it determines to be reasonably |
| related to resolving the calculation of a licensee’s market share, which may require the licensee to |
| provide additional materials to the executive office. If the executive office determines thereafter |
| that all or a portion of such market share, as determined by the secretary pursuant to § 21-28.10- |
| 3(4), is not warranted, the executive office may: |
| (1) Adjust the market share; |
| (2) Adjust the assessment of the market share in the following year equal to the amount in |
| excess of any overpayment in the prior payment period; or |
| (3) Refund amounts paid in error. |
| (b) Any person aggrieved by a decision of the executive office relating to the calculation |
| of market share may appeal that decision to the superior court, which shall have power to review |
| such decision, and the process by which such decision was made, as prescribed in chapter 35 of |
| title 42. |
| (c) A licensee shall also have the ability to appeal its assessed opioid registration fee if the |
| assessed fee amount exceeds the amount of profit the licensee obtains through sales in the state of |
| products described in § 21-28.10-3. The executive office may, exercising discretion as it deems |
| appropriate, waive or decrease fees as assessed pursuant to § 21-28.10-3 if a licensee can |
| demonstrate that the correctly assessed payment will pose undue hardship to the licensee’s |
| continued activities in the state. The executive office shall be allowed to request, and the licensee |
| shall furnish to the department executive office, any information or supporting documentation |
| validating the licensee’s request for waiver or reduction under this subsection. Fees waived under |
| this section shall not be reapportioned to other licensees which have payments due under this |
| chapter. |
| SECTION 9. Section 21-28.11-7 of the General Laws in Chapter 21-28.11 entitled "The |
| Rhode Island Cannabis Act" is hereby amended to read as follows: |
| 21-28.11-7. Licensed cannabis cultivators. |
| (a) Except as provided pursuant to the provisions of subsection (b) of this section or § 21- |
| 28.11-8, there shall be a moratorium on the issuance of new cannabis cultivator licenses until the |
| date that is two (2) years following the final issuance of the commission’s rules and regulations |
| pursuant to the provisions of this chapter. This moratorium shall not apply to cannabis cultivators |
| licensed pursuant to chapter 28.6 of this title on or before enactment of this chapter. |
| (b) On August 1, 2022 and thereafter, any medical marijuana cultivator licensed or |
| approved pursuant to the provisions of § 21-28.6-16, upon payment of an additional license fee, |
| shall be permitted to cultivate, manufacture and process cannabis as a hybrid cannabis cultivator |
| for both adult use and medical use. The amount of the additional license fee shall be determined by |
| the office of cannabis regulation during the transitional period established by § 21-28.11-10 and |
| shall be subject to review by the commission pursuant to the final rules and regulations. The fee |
| shall be deposited in the social equity fund established in § 21-28.11-31. Sale of the cultivated |
| cannabis shall be made directly to a licensee pursuant to the provisions of this chapter and chapter |
| 28.6 of this title, subject to the following conditions: |
| (1) The cultivator must be in good standing and maintain the cultivator license pursuant to |
| the provisions of chapter 28.6 of this title; and |
| (2) The cultivator must make good faith efforts to ensure the adult use cannabis production |
| portion of the cultivation operation has no significant adverse effect on the medical marijuana |
| program and patient needs. |
| (c) During the moratorium pursuant to this section, the commission, with the assistance of |
| the advisory board, as required, shall submit a report to the general assembly which evaluates the |
| cultivation of adult use and medical cannabis. The report shall consider factors, including, but not |
| limited to: |
| (1) Cultivation and production history; |
| (2) Tax payment history; |
| (3) Existing inventory and inventory history; |
| (4) Sales contracts; |
| (5) Current and future projected market conditions; and |
| (6) Any other factors relevant to ensuring responsible cultivation, production, and |
| inventory management for both medical and adult use cannabis. |
| (d) Upon expiration of the moratorium pursuant to this section, the commission may adopt |
| rules and regulations authorizing issuance of additional cultivator licenses; provided, however, a |
| new cultivator licensee’s canopy shall not exceed ten thousand square feet (10,000 ft2). In |
| determining whether to issue additional cultivator licenses, the cannabis control commission shall |
| consider the findings of the report submitted pursuant to subsection (c) of this section. |
| (e) For the purposes of this section, “canopy” means the total surface area within a |
| cultivation area that is dedicated to the cultivation of mature cannabis plants. The surface area of |
| the canopy must be calculated in square feet and measured using the outside boundaries of the area |
| and must include all of the area within the boundaries. If the surface area of the canopy consists of |
| noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered |
| or shelving system is used in the cultivation area, the surface area of each tier or shelf must be |
| included in calculating the area of the canopy. The canopy does not include the areas within the |
| cultivation area that are used to cultivate immature cannabis plants and seedlings and that are not |
| used at any time to cultivate mature cannabis plants. |
| (f) To qualify for issuance of any cannabis cultivator license under subsection (d) of this |
| section, an applicant shall satisfy all requirements and qualifications established by the commission |
| to include but not limited to, the following: |
| (1) Apply for a license in a manner prescribed by the commission; |
| (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident |
| of the state; |
| (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any |
| terms established by the commission; |
| (4) Provide proof that the applicant is current with and in compliance with all obligations |
| required by the division of taxation, including filings and payment of taxes; |
| (5) Has provided a nonrefundable application fee as determined by the commission; |
| (6) Shall consent and be subject to inspections by the commission for the purposes of |
| ensuring and enforcing compliance with this chapter and all rules and regulations promulgated |
| pursuant to this chapter; and |
| (7) Prior to the issuance of any license and for any period of renewal, the applicant shall |
| submit an annual license fee pursuant to subsection (b) of this section to be deposited in the social |
| equity fund established in § 21-28.11-31. |
| (g) The commission may determine and adjust the application fee or annual license fee |
| pursuant to the commission’s rulemaking authority and in accordance with the provisions of chapter |
| 35 of title 42. |
| (h) Every individual cannabis plant possessed by a licensed cannabis cultivator shall be |
| catalogued in a seed-to-sale inventory tracking system. The commission shall review the current |
| seed-to-sale tracking system utilized pursuant to chapter 28.6 of this title and promulgate new or |
| additional regulations, as it deems appropriate. As of December 1, 2022, any cannabis tags issued |
| to provide seed-to-sale inventory and tracking shall be issued without charge to patient cardholders |
| and/or primary caregivers authorized to grow medical cannabis. |
| (i) Notwithstanding any other provisions of the general laws, the manufacture of cannabis |
| using a solvent extraction process that includes the use of a compressed, flammable gas as a solvent |
| by a licensed cannabis cultivator shall not be subject to the protections of this chapter. |
| (j) Cannabis cultivators shall sell cannabis only to an entity licensed pursuant to the |
| provisions of this chapter or chapter 28.6 of this title. |
| (k) Cannabis cultivators shall be licensed to grow cannabis only at a location or locations |
| registered with and approved by the cannabis commission. The commission may promulgate |
| regulations governing locations where cultivators are authorized to grow. Cannabis cultivators shall |
| abide by all local ordinances, including zoning ordinances. |
| (l) As a condition of licensing, cannabis cultivators shall consent and be subject to |
| inspection by the commission for the purposes of ensuring and enforcing compliance with this |
| chapter and chapter 28.6 of this title, all rules and regulations promulgated pursuant to this chapter, |
| and the provisions of § 28-5.1-14. |
| (m) Persons issued cultivator licenses shall be subject to the following: |
| (1) A licensed cannabis cultivator shall notify and request approval from the commission |
| of any change in his or her name or address within ten (10) days of the change. A licensed cannabis |
| cultivator who fails to notify the commission of any of these changes commits shall be subject to |
| an administrative fine of no more than one hundred fifty dollars ($150), or other penalty as |
| determined by the commission. |
| (2) When a licensed cannabis cultivator notifies the commission of any changes listed in |
| this subsection, the commission shall issue the licensed cannabis cultivator a new license |
| identification document after the commission approves the changes and receives from the licensee |
| payment of a fee specified in regulations. |
| (3) If a licensed cannabis cultivator loses his or her license or certification document, he or |
| she shall notify the commission and submit a fee specified in regulation within ten (10) days of |
| losing the document. The commission shall issue a new license document with a new random |
| identification number, upon receipt of payment of a fee promulgated in the rules and regulations |
| not to exceed the amount of one hundred dollars ($100). |
| (4) A licensed cannabis cultivator has a continuing duty to notify the commission of any |
| criminal conviction(s) that occurs after the issuance of a license or registration. A criminal |
| conviction may not automatically result in suspension or revocation of a license, but shall be subject |
| to § 21-28.11-12.1. The commission may suspend and/or revoke his or her license after the |
| notification, pending a final determination of disqualification pursuant to § 21-28.11-12.1. |
| (5) If a licensed cannabis cultivator violates any provision of this chapter or regulations |
| promulgated hereunder as determined by the commission, his or her issued license may be |
| suspended and/or revoked. |
| (n) Immunity. |
| (1) No licensed cannabis cultivator shall be subject to: arrest; prosecution; search or |
| seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of |
| this section; or penalty in any manner, or denied any right or privilege, including, but not limited |
| to, civil penalty or disciplinary action by a business, occupational, or professional licensing board |
| or entity, solely for acting in accordance with this chapter, chapter 28.6 of this title and rules and |
| regulations promulgated by the commission. |
| (2) No principal officers, board members, agents, volunteers, or employees of a licensed |
| cannabis cultivator shall be subject to arrest; prosecution; search or seizure, except as authorized |
| pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of this section; or penalty in any |
| manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary |
| action by a business, occupational, or professional licensing board or entity, solely for working for |
| or with a licensed cannabis cultivator to engage in acts permitted by this chapter, chapter 28.6 of |
| this title and rules and regulations promulgated by the commission. |
| (3) No state employee or commission member shall be subject to arrest; prosecution; search |
| or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27; or penalty in any |
| manner, or denied any right or privilege, including, but not limited to, civil penalty, disciplinary |
| action, termination, or loss of employee or pension benefits, for any and all conduct that occurs |
| within the scope of his or her employment regarding the administration, execution, and/or |
| enforcement of this chapter, chapter 28.6 of this title and rules and regulations promulgated by the |
| commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section. |
| (o) Nothing in this section shall be construed as authorizing a cannabis cultivator to transfer |
| or sell cannabis directly to a consumer. A direct sale or transfer from a cannabis cultivator to a |
| consumer is prohibited and shall be grounds for revocation of license and criminal prosecution. |
| (p) A cannabis cultivator and all agents and employees of the cannabis cultivator shall |
| comply with all rules adopted by the commission and other applicable laws. |
| (q) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this |
| chapter that has not first been tested by a cannabis testing laboratory and determined to meet the |
| commission’s testing protocols issued pursuant to § 21-28.11-11. Cannabis cultivators shall be |
| subject to any regulations promulgated by the commission that specify how marijuana shall be |
| tested, including, but not limited to, potency, cannabinoid profile and contaminants. Cannabis |
| cultivators shall be subject to any product labeling requirements promulgated by the commission |
| or otherwise required by law. |
| (r) License required. No person or entity shall engage in activities described in this section |
| without a cultivator license issued pursuant to this chapter. |
| SECTION 10. Sections 23-17.7.1-2 and 23-17.7.1-23 of the General Laws in Chapter 23- |
| 17.7.1 entitled "Licensing of Nursing Service Agencies" are hereby amended to read as follows: |
| 23-17.7.1-2. Definitions. |
| (a) “Director” means the director of the state department of health; |
| (b) “Licensing agency” means the state department of health; |
| (c) “Nursing assistant” is defined as a nursing, orderly, or home health aide who is a |
| paraprofessional trained to give personal care and related health care and assistance based on his |
| or her level of preparation to individuals who are sick, disabled, dependent, or infirmed. The |
| director of the department of health may by regulation establish different levels of nursing |
| assistants; |
| (d) “Nursing service agency” is defined as any person, firm, partnership, or corporation |
| doing business within the state that supplies, on a temporary basis, registered nurses, licensed |
| practical nurses, or nursing assistants to a hospital, nursing home, or other facility requiring the |
| services of those persons, with the exception of hospitals, home nursing care providers, home care |
| providers, and hospices licensed in this state. For all purposes a nursing service agency shall be |
| considered an employer and those persons that it supplies on a temporary basis shall be considered |
| employees and not independent contractors, and the nursing service agency shall be subject to all |
| state and federal laws which govern employer-employee relations; |
| (e) “Service record” means the written entire entries documenting service rendered by the |
| nursing service agency. |
| 23-17.7.1-23. Annual reporting requirements. |
| (a) The agency shall submit an annual statistical report to the department of health |
| including, but not limited to: |
| (1) Mean, median, and average salaries and hourly pay rates of employees, by employment |
| type; |
| (2) Number of employees; |
| (3) Number of employees terminated; |
| (4) Number of employees reported to the office of the attorney general; and |
| (5) Number of employees reported to the department for abuse, neglect, misappropriation, |
| and job abandonment. |
| (b) For every person placed for employment, or temporary performance of services by an |
| employment agency with a healthcare provider employer, the employment agency shall annually |
| report: |
| (1) The amount charged for each person; |
| (2) The amount paid to each person; |
| (3) The amount of payment received that is retained by the employment agency; |
| (4) Any other information that the department, in conjunction with the department of |
| human services, determines relevant to determine how much healthcare provider employers who |
| participate in Medicare and Medicaid are charged by employment agency services nursing |
| service agencies. |
| (c) Reports under this section shall be submitted by the employment agencies no later than |
| thirty (30) days after the end of the calendar year. |
| SECTION 11. Section 28-14-19 of the General Laws in Chapter 28-14 entitled "Payment |
| of Wages" is hereby amended to read as follows: |
| 28-14-19. Enforcement powers and duties of director of labor and training. [Effective |
| January 1, 2024.] |
| (a) It shall be the duty of the director to ensure compliance with the provisions of this |
| chapter and chapter 12 of this title. The director, or the director’s designee, may investigate any |
| violations thereof, institute or cause to be instituted actions for the collection of wages, and institute |
| action for penalties or other relief as provided for within and pursuant to those chapters. The |
| director, or the director’s authorized representatives, are empowered to hold hearings, and the |
| director or the director’s designee shall cooperate with any employee in the enforcement of a claim |
| against the employee’s employer in any case whenever, in the opinion of the director or the |
| director’s designee, the claim is just and valid. |
| (b) Upon receipt of a complaint or conducting an inspection under applicable law, the |
| director, or the director’s appropriate departmental designee, is authorized to investigate to |
| determine compliance with this chapter and chapter 12 of this title. The director or designee shall |
| forward all complaints to the investigatory team within the department of labor and training who |
| shall conduct the initial screening, investigation, and field audits, as set forth in § 28-14-19.1. |
| (c) With respect to all complaints deemed just and valid by the investigatory team, the |
| director, or the director’s designee, shall order a hearing thereon at a time and place to be specified, |
| and shall give notice thereof, together with a copy of the complaint or the purpose thereof, or a |
| statement of the facts disclosed upon investigation, which notice shall be served personally or by |
| mail on any person, business, corporation, or entity of any kind affected thereby. The hearing shall |
| be scheduled within thirty (30) days of service of a formal complaint as provided herein. The |
| person, business, corporation, or entity shall have an opportunity to be heard in respect to the |
| matters complained of at the time and place specified in the notice. The hearing shall be conducted |
| by the director or the director’s designee. The hearing officer in the hearing shall be deemed to be |
| acting in a judicial capacity, and shall have the right to issue subpoenas, administer oaths, and |
| examine witnesses. The enforcement of a subpoena issued under this section shall be regulated by |
| Rhode Island civil practice law and rules. The hearing shall be expeditiously conducted and upon |
| such hearing the hearing officer shall determine the issues raised thereon and shall make a |
| determination and enter an order within thirty (30) days of the close of the hearing, and forthwith |
| serve a copy of the order, with a notice of the filing thereof, upon the parties to the proceeding, |
| personally or by mail. The order shall dismiss the complaint or direct payment of any wages and/or |
| benefits found to be due and/or award such other appropriate relief or penalties authorized under |
| this chapter and chapter 12 of this title, and the order may direct payment of reasonable attorney’s |
| fees and costs to the complaining party. Interest at the rate of twelve percent (12%) per annum shall |
| be awarded in the order from the date of the nonpayment to the date of payment. |
| (d) The order shall also require payment of a further sum as a civil penalty in an amount |
| up to two (2) times the total wages and/or benefits found to be due, exclusive of interest, which |
| shall be shared equally between the department and the aggrieved party. In determining the amount |
| of any penalty to impose, the director, or the director’s designee, shall consider the size of the |
| employer’s business, the good faith of the employer, the gravity of the violation, the previous |
| violations, and whether or not the violation was an innocent mistake or willful. |
| (e) The director may institute any action to recover unpaid wages or other compensation or |
| obtain relief as provided under this section with or without the consent of the employee or |
| employees affected. |
| (f) No agreement between the employee and employer to work for less than the applicable |
| wage and/or benefit rate or to otherwise work under and/or conditions in violation of applicable |
| law is a defense to an action brought pursuant to this section. |
| (g) The director shall notify the contractors’ registration board of any order issued or any |
| determination hereunder that an employer has violated this chapter, chapter 12 of this title, or |
| chapter 13 of title 37. The director shall notify the tax administrator of any determination hereunder |
| that may affect liability for an employer’s payment of wages and/or payroll taxes. |
| SECTION 12. Sections 21-31-2 and 21-31-13 of the General Laws in Chapter 21-31 |
| entitled "Rhode Island Food, Drugs, and Cosmetics Act" are hereby amended to read as follows: |
| 21-31-2. Definitions. |
| For the purpose of this chapter: |
| (1) “Advertisement” means all representations disseminated in any manner or by any |
| means, other than by labeling, for the purpose of inducing, or which are likely to induce, directly |
| or indirectly, the purchase of food, drugs, devices, or cosmetics. |
| (2) “Contaminated with filth” applies to any food, drug, device, or cosmetic not securely |
| protected from dust, dirt, and, as far as may be necessary by all reasonable means, from all foreign |
| or injurious contaminations. |
| (3) “Cosmetics” means: (i) articles intended to be rubbed, poured, sprinkled, or sprayed on, |
| introduced into, or applied to the human body or any part of the body for cleansing, beautifying, |
| promoting attractiveness, or altering the appearance, and (ii) articles intended for use as a |
| component of any articles described in this subdivision, except that this term shall not include soap. |
| (4) “Device” (except when used in subdivision (23) (13)(iv) of this section and in §§ 21- |
| 31-3(10), 21-31-11(6), 21-31-15(a)(3), and 21-31-18(3)) means instruments, apparatus, and |
| contrivances, including their components, parts, and accessories, intended: (i) for use in the |
| diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals; or (ii) |
| to affect the structure or any function of the body of humans or other animals. |
| (5) “Director” means the director of health. |
| (6) “Distressed merchandise” means any food which has had the label lost or which has |
| been subjected to possible damage due to accident, fire, flood, adverse weather, or to any other |
| similar cause, and which may have been rendered unsafe or unsuitable for human or animal |
| consumption or use. |
| (7) “Dosage form” means the form of the completed drug product (such as tablet, syrup, or |
| suppository). |
| (8) “Drug” means: (i) articles recognized in the official United States Pharmacopoeia, |
| official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any |
| supplement to any of them; (ii) articles intended for use in the diagnosis, cure, mitigation, treatment, |
| or prevention of disease in humans or other animals; (iii) articles (other than food) intended to |
| affect the structure or any function of the body of humans or other animals; and (iv) articles |
| intended for use as a component of any article specified in paragraphs (i), (ii) or (iii) of this |
| subdivision; but does not include devices or their components, parts, or accessories. |
| (9) “Drug product” means a dosage form containing one or more active therapeutic |
| ingredients along with other substances included during the manufacturing process. |
| (10)(i) “Equivalent and interchangeable” means having the same generic name, dosage |
| form, and labeled potency, meeting standards of the United States Pharmacopoeia or National |
| Formulary, or their successors, if applicable, and not found in violation of the requirements of the |
| United States Food and Drug Administration, or its successor agency, or the department of health. |
| (ii) “Generic” means the chemical or established name of a drug or drug product. |
| (11) “Federal Act” means the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et |
| seq. |
| (12) “Food” means: (i) articles used for food or drink for humans or other animals, (ii) |
| chewing gum, and (iii) articles used for components of any article described in this subdivision. |
| (13)(i) “Label” means a display of written, printed, or graphic matter upon the immediate |
| container of any article; and a requirement made by or under authority of this chapter that any word, |
| statement, or other information appearing on the label shall not be considered to be complied with |
| unless the word, statement, or other information also appears on the outside container or wrapper, |
| if any, of the retail package of the article, or is easily legible through the outside container or |
| wrapper. |
| (ii) “Immediate container” does not include package liners. |
| (iii) “Labeling” means all labels and other written, printed, or graphic matter: (A) upon an |
| article or any of its containers or wrappers, or (B) accompanying the article. |
| (iv) If an article is alleged to be misbranded because the labeling is misleading, or if an |
| advertisement is alleged to be false because it is misleading, then in determining whether the |
| labeling or advertisement is misleading there shall be taken into account (among other things) not |
| only representations made or suggested by statement, word, design, device, sound, or in any |
| combination of them, but also the extent to which the labeling or advertisement fails to reveal facts |
| material in the light of the representations or material with respect to consequences which may |
| result from the use of the article to which the labeling or advertisement relates under the conditions |
| of use prescribed in the labeling or advertisement or under the conditions of use that are customary |
| or usual. |
| (14) “Native” means a product harvested in Rhode Island and is limited to the following: |
| (i) “Bay scallop” means Argopecten irradians. |
| (ii) “Bay quahog” means Mercenaria mercenaria. |
| (iii) “Steamer clams” means Mya arenaria. |
| (iv) “Mussels” means Mytilus edulis. |
| (v) “Oysters” means Crassostrea virginica. |
| (15) “New drug” means: (i) any drug the composition of which is such that the drug is not |
| generally recognized among experts qualified by scientific training and experience to evaluate the |
| safety of drugs as safe for use under conditions prescribed, recommended, or suggested in the |
| labeling of it; or (ii) any drug the composition of which is such that the drug, as a result of |
| investigations to determine its safety for use under those conditions has become so recognized, but |
| which has not, otherwise than in the investigations, been used to a material extent or for a material |
| time under those conditions. |
| (16) “Official compendium” means the official United States Pharmacopoeia, official |
| Homeopathic Pharmacopoeia of the United States, official National Formulary, or any supplement |
| to any of them. |
| (17) “Patient” means, as the case may be: (i) the individual medically requiring a drug, for |
| whom a drug is prescribed; or (ii) the owner or the agent of the owner of an animal medically |
| requiring a drug, for which a drug is prescribed. |
| (18) “Person” includes individual, partnership, corporation, and association. |
| (19) “Pharmacist” means a person duly registered with the board of pharmacy as a |
| compounder, dispenser, or supplier of drugs upon prescription, including registered assistant |
| pharmacists as defined by law. |
| (20) “Pharmacy” means a place where drugs, medicines, or poisons are sold at retail or |
| where prescriptions of physicians, dentists, veterinarians, and other practitioners authorized to issue |
| prescriptions for drugs, medicines, and poisons are compounded, dispensed, supplied or sold. |
| (21) “Practitioner” means a person authorized by law to practice medicine, dentistry, |
| osteopathy, chiropody podiatry, or veterinary medicine in this state. |
| (22) “Prescription” means an order, issued in good faith in the course of professional |
| practice only, by a practitioner to a pharmacist for a drug for a particular patient, which specifies |
| the date of its issue, the name and address of the practitioner, the name and address of the patient |
| (and, if the drug is prescribed for an animal, the species of the animal), the name and quantity of |
| the drug prescribed, directions for the use of the drug, and the signature of the practitioner; |
| provided, that a prescription received by word of mouth, telephone, or other means of |
| communication shall be reduced promptly to writing by the pharmacist in the form prescribed in |
| this subdivision, and the record so made shall constitute the original prescription to be filed and |
| preserved by the pharmacist; and, provided, further, that any refill authorization received by word |
| of mouth, telephone, or other means of communication shall be reduced promptly to writing by the |
| pharmacist, with the date of it on the face or on the reverse side of the original prescription. |
| (23) The representation of a drug, in its labeling or advertisement, as an antiseptic shall be |
| considered to be a representation that it is a germicide, except in the case of a drug purporting to |
| be, or represented as, an antiseptic for inhibitory use as a wet dressing, ointment, dusting powder, |
| or any other use that involves prolonged contact with the body. |
| (24) The provisions of this chapter regarding the selling of food, drugs, devices, or |
| cosmetics shall be considered to include the manufacture, production, processing, packing, |
| exposure, offer, possession, and holding of any article for sale, and the sale, dispensing, and giving |
| of any article, and the supplying or applying of the articles in the conduct of any food, drug, or |
| cosmetic establishment. |
| 21-31-13. Poisonous or deleterious substance — Regulations as to use. |
| (a) Any poisonous or deleterious substance added to any food, except where the substance |
| is required in the production of it or cannot be avoided by good manufacturing practice, shall be |
| deemed to be unsafe for purposes of the application of § 21-31-10(1)(ii); but when a substance is |
| required or cannot be avoided, the director of health shall promulgate regulations limiting the |
| quantity in it or on it to the extent that the director of health finds necessary for the protection of |
| public health, and any quantity exceeding the limits fixed shall also be deemed to be unsafe for |
| purposes of the application of § 21-31-10(1)(ii). While a regulation is in effect limiting the quantity |
| of any substance in the case of any food, that food shall not, by reason of bearing or containing any |
| added amount of the substance, be considered to be adulterated within the meaning of § 31-21- |
| 10(1)(i) 21-31-10(1)(i). In determining the quality of the added substance to be tolerated in or on |
| different articles of food, the director of health shall take into account the extent to which the use |
| of the substance is required or cannot be avoided in the production of each article and the other |
| ways in which the consumer may be affected by the same or other poisonous or deleterious |
| substances. |
| (b) To assist the director in carrying out his or her responsibilities under this section, the |
| director is authorized to collect food samples and to provide laboratory analyses to further the |
| purposes of this chapter. |
| SECTION 13. Section 21-31.1-15 of the General Laws in Chapter 21-31.1 entitled |
| "Veterinary Drugs" is hereby amended to read as follows: |
| 21-31.1-15. Detention. |
| Whenever an authorized representative of the director encounters a prescription veterinary |
| drug in the possession of a person who is not authorized by § 21-31.1-13, the representative may |
| affix to the drug a tag or other appropriate marking, warning all persons not to remove or dispose |
| of the drug by sale or otherwise until permission is given for removal or disposal by the director or |
| the court. |
| SECTION 14. Sections 27-18-91 and 27-18-92 of the General Laws in Chapter 27-18 |
| entitled "Accident and Sickness Insurance Policies" are hereby amended to read as follows: |
| 27-18-91. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the |
| prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective |
| January 1, 2024.] |
| (a) Every group health insurance contract, or every group hospital or medical expense |
| insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by |
| any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of |
| pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis |
| (“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall |
| constitute a separate method of administration. A health insurer is not required to cover any pre- |
| exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out- |
| of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network |
| pharmacy benefit. |
| (b) The healthcare benefits outlined in this chapter section apply only to services delivered |
| within the health insurer’s provider network; provided that, all health insurers shall be required to |
| provide coverage for those benefits mandated by this chapter section outside of the health insurer’s |
| provider network where it can be established that the required services are not available from a |
| provider in the health insurer’s network. |
| 27-18-92. Expedited prior authorization. Expedited prior authorization for HIV |
| PrEP or PEP drugs. [Effective January 1, 2024.] |
| To the extent a prior authorization is permitted and applied for the prescribing, |
| dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an |
| expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27- |
| 18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no |
| longer be in effect upon the effective date of any repeal of this section, as may be enacted |
| during the 2024 legislative session. |
| SECTION 15. Sections 27-19-83 and 27-19-84 of the General Laws in Chapter 27-19 |
| entitled "Nonprofit Hospital Service Corporations" are hereby amended to read as follows: |
| 27-19-83. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the |
| prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective |
| January 1, 2024.] |
| (a) Every group health insurance contract, or every group hospital or medical expense |
| insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by |
| any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of |
| pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis |
| (“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall |
| constitute a separate method of administration. A health insurer is not required to cover any pre- |
| exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out- |
| of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network |
| pharmacy benefit. |
| (b) The healthcare benefits outlined in this chapter section apply only to services delivered |
| within the health insurer’s provider network; provided that, all health insurers shall be required to |
| provide coverage for those benefits mandated by this chapter section outside of the health insurer’s |
| provider network where it can be established that the required services are not available from a |
| provider in the health insurer’s network. |
| 27-19-84. Expedited prior authorization. Expedited prior authorization for HIV |
| PrEP or PEP drugs. [Effective January 1, 2024.] |
| To the extent a prior authorization is permitted and applied for the prescribing, |
| dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an |
| expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27- |
| 18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no |
| longer be in effect upon the effective date of any repeal of this section, as may be enacted |
| during the 2024 legislative session. |
| SECTION 16. Sections 27-20-79 and 27-20-80 of the General Laws in Chapter 27-20 |
| entitled "Nonprofit Medical Service Corporations" are hereby amended to read as follows: |
| 27-20-79. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the |
| prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective |
| January 1, 2024.] |
| (a) Every group health insurance contract, or every group hospital or medical expense |
| insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by |
| any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of |
| pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis |
| (“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall |
| constitute a separate method of administration. A health insurer is not required to cover any pre- |
| exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out- |
| of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network |
| pharmacy benefit. |
| (b) The healthcare benefits outlined in this chapter section apply only to services delivered |
| within the health insurer’s provider network; provided that, all health insurers shall be required to |
| provide coverage for those benefits mandated by this chapter section outside of the health insurer’s |
| provider network where it can be established that the required services are not available from a |
| provider in the health insurer’s network. |
| 27-20-80. Expedited prior authorization. Expedited prior authorization for HIV |
| PrEP or PEP drugs. [Effective January 1, 2024.] |
| To the extent a prior authorization is permitted and applied for the prescribing, |
| dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an |
| expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant § 27-18.9- |
| 6(a)(1). Provided, however, that the provisions of the amendment to this section shall no |
| longer be in effect upon the effective date of any repeal of this section, as may be enacted |
| during the 2024 legislative session. |
| SECTION 17. Sections 27-41-96 and 27-41-97 of the General Laws in Chapter 27-41 |
| entitled "Health Maintenance Organizations" are hereby amended to read as follows: |
| 27-41-96. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the |
| prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective |
| January 1, 2024.] |
| (a) Every group health insurance contract, or every group hospital or medical expense |
| insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by |
| any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of |
| pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis |
| (“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall |
| constitute a separate method of administration. A health insurer is not required to cover any pre- |
| exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out- |
| of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network |
| pharmacy benefit. |
| (b) The healthcare benefits outlined in this chapter section apply only to services delivered |
| within the health insurer’s provider network; provided that, all health insurers shall be required to |
| provide coverage for those benefits mandated by this chapter section outside of the health insurer’s |
| provider network where it can be established that the required services are not available from a |
| provider in the health insurer’s network. |
| 27-41-97. Expedited prior authorization. Expedited prior authorization for HIV |
| PrEP or PEP drugs. [Effective January 1, 2024.] |
| To the extent a prior authorization is permitted and applied for the prescribing, |
| dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an |
| expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27- |
| 18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no |
| longer be in effect upon the effective date of any repeal of this section, as may be enacted |
| during the 2024 legislative session. |
| SECTION 18. Section 28-57-3 of the General Laws in Chapter 28-57 entitled "Healthy and |
| Safe Families and Workplaces Act" is hereby amended to read as follows: |
| 28-57-3. Definitions. |
| As used in the chapter, the following words and terms have the following meanings: |
| (1) “Care recipient” means a person for whom the employee is responsible for providing |
| or arranging health- or safety-related care, including, but not limited to, helping the person obtain |
| diagnostic, preventive, routine, or therapeutic health treatment or ensuring the person is safe |
| following domestic violence, sexual assault, or stalking. |
| (2) “CCAP family childcare provider” means a childcare worker as defined in § 40-6.6- |
| 2(2). |
| (3) “Child” means a person as defined in § 28-41-34(3). |
| (4) “Department” means the department of labor and training. |
| (5) “Domestic partner” means a party to a civil union as defined in chapter 3.1 of title 15 |
| or a person who meets the requirements in §§ 36-12-1(3)(i) through (3)(v) and has the same |
| meaning as that term is defined in § 8-8.2-20. |
| (6) “Domestic violence” means certain crimes when committed by one family or household |
| member against another as defined in § 12-29-2. |
| (7) “Employee” means any person suffered or permitted to work by an employer, except |
| for those not considered employees as defined in § 28-12-2. Independent contractors, |
| subcontractors, work study participants as described pursuant to 42 20 U.S.C. § 2753.23 1087-53, |
| and any other individuals pursuant to the provisions of 29 U.S.C. § 203 et seq. (Fair Labor |
| Standards Act) shall not be considered to be employees for the purpose of this act. |
| (8) “Employer” means any individual or entity that includes any individual, partnership, |
| association, corporation, business trust, or any person or group of persons acting directly or |
| indirectly in the interest of an employer, in relation to an employee as defined in § 28-12-2, but |
| does not include the federal government, and provided that in determining the number of employees |
| performing work for an employer as defined in 29 C.F.R. § 791.2 of the federal Fair Labor |
| Standards Act, 29 U.S.C. § 201 et seq., the total number of employees in that group shall be |
| counted. |
| (9) “Family member” means a child, parent, spouse, mother-in-law, father-in-law, |
| grandparents, grandchildren, or domestic partner, sibling, care recipient, or member of the |
| employee’s household. |
| (10) “Healthcare professional” means any person licensed under federal or Rhode Island |
| law to provide medical or emergency services, including, but not limited to: doctors, nurses, and |
| emergency room personnel. |
| (11) “Paid sick leave time” or “paid sick and safe leave time” means time that is |
| compensated at the same hourly rate and with the same benefits, including healthcare benefits, as |
| the employee normally earns during hours worked and is provided by an employer to an employee |
| for the purposes described in § 28-57-6, but in no case shall the hourly wage paid leave be less than |
| that provided under § 28-12-3. |
| (12) “Parent” means a person as defined in § 28-41-34(9) or a person as defined in § 28- |
| 41-34(10). |
| (13) “Seasonal employee” means a person as defined in 26 C.F.R. § 54.4980H-1(a)(38). |
| (14) “Sexual assault” means a crime as defined in § 11-37-2, § 11-37-4 or § 11-37-6. |
| (15) “Sibling” means a brother or a sister, whether related through half blood, whole blood, |
| or adoption, a foster sibling, or a step-sibling. |
| (16) “Spouse” means a person as defined in § 28-41-34(13). |
| (17) “Stalking” means a crime as described in §§ 11-59-2 and 11-52-4.2. |
| (18) “Temporary employee” means any person working for, or obtaining employment |
| pursuant to an agreement with any employment agency, placement service, or training school or |
| center. |
| (19) “Unpaid sick time” is time that is used for the purposes described in § 28-57-6. |
| (20) “Year” means a regular and consecutive twelve-month (12) period as determined by |
| the employer; except that for the purposes of § 28-57-7, “year” means a calendar year. |
| SECTION 19. Section 31-10.4-1 of the General Laws in Chapter 31-10.4 entitled "Driver |
| Privilege Cards and Permits" is hereby amended to read as follows: |
| 31-10.4-1. Driver privilege cards and permits — State identification cards. [Effective |
| January 1, 2024.] |
| (a) Upon application of any person who is unable to establish legal presence in the United |
| States, the division of motor vehicles is authorized to issue a driver privilege card and/or driver |
| privilege permit, if the applicant otherwise meets the requirements of chapter 10 of this title, or a |
| Rhode Island state identification card, to any applicant, if the division of motor vehicles determines |
| that the applicant: |
| (1) Has verification from the tax administrator that the applicant either has filed a personal |
| income tax return as a resident with this state for the tax year preceding the date of application or |
| has been claimed as a dependent on a personal income tax return by an individual who has filed a |
| personal income tax return as a resident with this state for the tax year preceding the date of |
| application; |
| (2) Presents two (2) primary proof of identity documents, as defined in § 31-10.4-5, or one |
| primary proof of identity document and one secondary proof of identity document, as defined in § |
| 31-10.4-5; |
| (3) Presents two (2) proof of residency documents, which shall mean, for purposes of this |
| subsection, the proof of residency documents set forth in 280-RICR-30-00-1.4.1(D), as may be |
| amended from time to time; and |
| (4) Is not in violation of the insurance requirements, set forth in chapters 31 and 32 of this |
| title, provided that this subsection (a)(4) shall not apply to applicants for a Rhode Island state |
| identification card. |
| (b) Notwithstanding any other provision of law to the contrary, the administrator of the |
| division of motor vehicles may provide information submitted by the applicant to the tax |
| administrator for the sole purpose of implementing subsection (a)(1) of this section, and such |
| information shall be kept confidential by the tax administrator. |
| (c) Rhode Island state identification cards issued under this section shall be in the formats |
| required by the division of motor vehicles pursuant to §§ 3-8-6 and 3-8-6.1, respectively. The |
| division of motor vehicles may prescribe additional formatting requirements as it deems necessary |
| to further the provisions of this subsection section. |
| SECTION 20. Section 31-19.6-1 of the General Laws in Chapter 31-19.6 entitled "Low- |
| Speed Vehicles [Effective July 1, 2024.]" is hereby amended to read as follows: |
| 31-19.6-1. Low-speed vehicles. [Effective July 1, 2024.] |
| (a) Except as otherwise provided in chapters 19.4 and 19.5 of this title, a low-speed motor |
| vehicle or low-speed vehicle shall not be operated upon any public way unless such vehicle is |
| registered in accordance with the provisions of this chapter, displays the registration number as |
| provided in § 31-3-10, and displays a slow-moving vehicle emblem on the rear of the vehicle as |
| required by § 31-10.1-7 31-23-47. Low-speed vehicles shall be subject to inspection as required by |
| chapter 38 of this title. The registrar may issue registration plates displaying the “Slow Moving |
| Vehicle” emblem for a low-speed vehicle upon the same terms and conditions applicable to |
| registrants of other motor vehicles and may issue a special parking identification placard bearing |
| the same designation upon the same terms and conditions applicable to persons seeking a placard |
| for a motor vehicle. Every person lawfully operating a low-speed motor vehicle shall have the right |
| to use the public highways in the state, except low-speed vehicles shall be prohibited from operation |
| on limited access highways, as defined in § 31-1-23, state highways, as defined in § 31-1-23, or |
| through highways as defined in § 31-1-23 or on any public highway or roadway with a speed limit |
| of more than thirty-five miles per hour (35 m.p.h.). |
| (b) Low-speed vehicles shall be subject to the traffic laws and regulations of the state and |
| the provisions of this section. |
| (c) Nothing in subsection (a) of this section shall be construed to prohibit a low-speed |
| motor vehicle from crossing a public highway at an intersection where the public highway to be |
| crossed has a posted speed limit between thirty-five miles per hour (35 m.p.h.) and forty-five miles |
| per hour (45 m.p.h.), provided the public highway the low-speed vehicle is traveling on and the |
| public highway the low-speed vehicle is crossing the intersection toward both have a speed limit |
| no higher than thirty-five miles per hour (35 m.p.h.) and the intersection is controlled by traffic |
| signals or stop signs. |
| (d) A municipality may, by ordinance, prohibit the operation of low-speed vehicles on a |
| laned roadway or local highway or a portion of a highway within its jurisdiction and under its |
| control, regardless of posted speeds, where it finds that use of the highway or a particular portion |
| of the highway by low-speed motor vehicles would represent an unreasonable risk of death or |
| serious injury to occupants of low-speed vehicles as a result of general traffic conditions which |
| shall include, but not be limited to, excessive speeds of other vehicles, traffic volumes, use of the |
| highway by heavy trucks or other large vehicles or if the established speed limit on the highway |
| increases above thirty-five miles per hour (35 m.p.h.) beyond the point where a low-speed vehicle |
| could safely exit the highway. The municipality shall post signs where necessary to provide notice |
| to the public of such prohibited access. |
| (e) Low-speed vehicles operated on Prudence Island, in the town of Portsmouth, pursuant |
| to the provisions of chapter 19.4 of this title, are exempt from the provisions of this chapter. |
| SECTION 21. Sections 45-23-39 and 45-23-71 of the General Laws in Chapter 45-23 |
| entitled "Subdivision of Land" are hereby amended to read as follows: |
| 45-23-39. General provisions — Major land development and major subdivision |
| review stages. [Effective January 1, 2024.] |
| (a) Stages of review. Major land development and major subdivision review consists of |
| three stages of review, master plan, preliminary plan, and final plan, following the pre-application |
| meeting(s) specified in § 45-23-35. Also required is a public hearing at the master plan stage of |
| review or, if combined at the first stage of review. |
| (b) The administrative officer may combine review stages and to modify but only the |
| planning board may waive requirements as specified in § 45-23-62. Review stages may be |
| combined only after the administrative officer determines that all necessary requirements have been |
| met by the applicant or that the planning board has waived any submission requirements not |
| included by the applicant. |
| (c) Master plan review. |
| (1) Submission requirements. |
| (i) The applicant shall first submit to the administrative officer the items required by the |
| local regulations for master plans. |
| (ii) Requirements for the master plan and supporting material for this phase of review |
| include, but are not limited to: information on the natural and built features of the surrounding |
| neighborhood, existing natural and man-made conditions of the development site, including |
| topographic features, the freshwater wetland and coastal zone boundaries, the floodplains, as well |
| as the proposed design concept, proposed public improvements and dedications, tentative |
| construction phasing; and potential neighborhood impacts. |
| (iii) Initial comments will be solicited from: |
| (A) Local agencies including, but not limited to, the planning department, the department |
| of public works, fire and police departments, the conservation and recreation commissions; |
| (B) Adjacent communities; |
| (C) State agencies, as appropriate, including the departments of environmental |
| management and transportation and the coastal resources management council; and |
| (D) Federal agencies, as appropriate. The administrative officer shall coordinate review |
| and comments by local officials, adjacent communities, and state and federal agencies. |
| (iv) Applications requesting relief from the zoning ordinance. |
| (A) Applications under this chapter that require relief that qualifies only as a modification |
| under § 45-24-46 and local ordinances shall proceed by filing a master plan application under this |
| section and a request for a modification to the zoning enforcement officer. If such modification is |
| granted, the application shall then proceed to be reviewed by the planning board pursuant to the |
| applicable requirements of this section. If the modification is denied or an objection is received as |
| set forth in § 45-24-46, such application shall proceed under unified development plan review |
| pursuant to § 45-23-50.1. |
| (B) Applications under this section that require relief from the literal provisions of the |
| zoning ordinance in the form of a variance or special use permit, shall be reviewed by the planning |
| board under unified development plan review pursuant to § 45-23-50.1. |
| (2) Certification. The application must be certified, in writing, complete or incomplete by |
| the administrative officer within twenty-five (25) days of the submission, according to the |
| provisions of § 45-23-36(c), so long as a completed checklist of requirements is provided with the |
| submission. The running of the time period set forth herein will be deemed stopped upon the |
| issuance of a certificate of incompleteness of the application by the administrative officer and will |
| recommence upon the resubmission of a corrected application by the applicant. However, in no |
| event will the administrative officer be required to certify a corrected submission as complete or |
| incomplete less than ten (10) days after its resubmission. |
| (3) Technical review committee. To the extent the community utilizes a technical review |
| committee, it shall review the application prior to the first planning board meeting and shall |
| comment and make recommendations to the planning board. |
| (4) Public hearing. |
| (i) A public hearing will be held prior to the planning board decision on the master plan. |
| If the master plan and preliminary plan review stages are being combined, a public hearing shall be |
| held during the combined stage of review. |
| (ii) Notice for the public hearing is required and must be given at least fourteen (14) days |
| prior to the date of the meeting in a newspaper of local circulation within the municipality. Notice |
| must be mailed to the applicant and to all property owners within the notice area, as specified by |
| local regulations. |
| (iii) At the public hearing, the applicant will present the proposed development project. |
| The planning board must allow oral and written comments from the general public. All public |
| comments are to be made part of the public record of the project application. |
| (5) Decision. The planning board shall, within ninety (90) days of certification of |
| completeness, or within a further amount of time that may be consented to by the applicant through |
| the submission of a written waiver, approve of the master plan as submitted, approve with changes |
| and/or conditions, or deny the application, according to the requirements of §§ 45-23-60 and 45- |
| 23-63. |
| (6) Failure to act. Failure of the planning board to act within the prescribed period |
| constitutes approval of the master plan, and a certificate of the administrative officer as to the failure |
| of the planning board to act within the required time and the resulting approval will be issued on |
| request of the applicant. |
| (7) Vesting. |
| (i) The approved master plan is vested for a period of two (2) years, with the right to extend |
| for two (2), one-year extensions upon written request by the applicant, who must appear before the |
| planning board for the annual review. Thereafter, vesting may be extended for a longer period, for |
| good cause shown, if requested by the applicant, in writing, and approved by the planning board. |
| Master plan vesting includes the zoning requirements, conceptual layout, and all conditions shown |
| on the approved master plan drawings and supporting materials. |
| (ii) The initial four-year (4) vesting for the approved master plan constitutes the vested |
| rights for the development as required in § 45-24-44. |
| (d) Preliminary plan review. |
| (1) Submission requirements. |
| (i) The applicant shall first submit to the administrative officer the items required by the |
| local regulations for preliminary plans. |
| (ii) Requirements for the preliminary plan and supporting materials for this phase of the |
| review include, but are not limited to: engineering plans depicting the existing site conditions, |
| engineering plans depicting the proposed development project, and a perimeter survey. |
| (iii) At the preliminary plan review phase, the administrative officer shall solicit final, |
| written comments and/or approvals of the department of public works, the city or town engineer, |
| the city or town solicitor, other local government departments, commissions, or authorities as |
| appropriate. |
| (iv) Prior to approval of the preliminary plan, copies of all legal documents describing the |
| property, proposed easements, and rights-of-way. |
| (v) Prior to approval of the preliminary plan, an applicant must submit all permits required |
| by state or federal agencies, including permits related to freshwater wetlands, the coastal zone, |
| floodplains, preliminary suitability for individual septic disposal systems, public water systems, |
| and connections to state roads. For a state permit from the Rhode Island department of |
| transportation, a letter evidencing the issuance of such a permit upon the submission of a bond and |
| insurance is sufficient, but such actual permit shall be required prior to the issuance of a building |
| permit. |
| (vi) If the applicant is requesting alteration of any variances and/or special-use permits |
| granted by the planning board or commission at the master plan stage of review pursuant to adopted |
| unified development review provisions, and/or any new variances and/or special-use permits, such |
| requests and all supporting documentation shall be included as part of the preliminary plan |
| application materials, pursuant to § 45-23-50.1(b). |
| (2) Certification. The application will be certified as complete or incomplete by the |
| administrative officer within twenty-five (25) days, according to the provisions of § 45-23-36(c) so |
| long as a completed checklist of requirements is provided with the submission. The running of the |
| time period set forth herein will be deemed stopped upon the issuance of a certificate of |
| incompleteness of the application by the administrative officer and will recommence upon the |
| resubmission of a corrected application by the applicant. However, in no event shall the |
| administrative officer be required to certify a corrected submission as complete or incomplete less |
| than ten (10) days after its resubmission. |
| (3) Technical review committee. To the extent the community utilizes a technical review |
| committee, it shall review the application prior to the first planning board meeting and shall |
| comment and make recommendations to the planning board. |
| (4) Public notice. Prior to the first planning board meeting on the preliminary plan, public |
| notice shall be sent to abutters only at least fourteen (14) days before the hearing. |
| (5) Public improvement guarantees. Proposed arrangements for completion of the |
| required public improvements, including construction schedule and/or financial guarantees, shall |
| be reviewed and approved by the planning board at preliminary plan approval. |
| (6) Decision. A complete application for a major subdivision or development plan shall |
| be approved, approved with conditions, or denied, in accordance with the requirements of §§ 45- |
| 23-60 and 45-23-63, within ninety (90) days of the date when it is certified complete, or within a |
| further amount of time that may be consented to by the developer through the submission of a |
| written waiver. Provided that, the timeframe for decision is automatically extended if evidence of |
| state permits has not been provided, or otherwise waived in accordance with this section. |
| (7) Failure to act. Failure of the planning board to act within the prescribed period |
| constitutes approval of the preliminary plan, and a certificate of the administrative officer as to the |
| failure of the planning board to act within the required time and the resulting approval shall be |
| issued on request of the applicant. |
| (8) Vesting. The approved preliminary plan is vested for a period of two (2) years with |
| the right to extend for two (2), one-year extensions upon written request by the applicant, who must |
| appear before the planning board for each annual review and provide proof of valid state or federal |
| permits as applicable. Thereafter, vesting may be extended for a longer period, for good cause |
| shown, if requested, in writing by the applicant, and approved by the planning board. The vesting |
| for the preliminary plan approval includes all general and specific conditions shown on the |
| approved preliminary plan drawings and supporting material. |
| (e) Final plan. |
| (1) Submission requirements. |
| (i) The applicant shall submit to the administrative officer the items required by the local |
| regulations for the final plan, as well as all material required by the planning board when the |
| application was given preliminary approval. |
| (ii) Arrangements for completion of the required public improvements, including |
| construction schedule and/or financial guarantees. |
| (iii) Certification by the tax collector that all property taxes are current. |
| (iv) For phased projects, the final plan for phases following the first phase, shall be |
| accompanied by copies of as-built drawings not previously submitted of all existing public |
| improvements for prior phases. |
| (2) Certification. The application for final plan approval shall be certified complete or |
| incomplete by the administrative officer in writing, within fifteen (15) days, according to the |
| provisions of § 45-23-36(c) so long as a completed checklist of requirements is provided with the |
| submission. This time period may be extended to twenty-five (25) days by written notice from the |
| administrative officer to the applicant where the final plans contain changes to or elements not |
| included in the preliminary plan approval. The running of the time period set forth herein shall be |
| deemed stopped upon the issuance of a certificate of incompleteness of the application by the |
| administrative officer and shall recommence upon the resubmission of a corrected application by |
| the applicant. However, in no event shall the administrative officer be required to certify a corrected |
| submission as complete or incomplete less than ten (10) days after its resubmission. If the |
| administrative officer certifies the application as complete and does not require submission to the |
| planning board as per subsection (c) of this section, the final plan shall be considered approved. |
| (3) Decision. The administrative officer, or, if referred to it, the planning board, shall |
| review, grant, grant with conditions, or deny final plan approval. A decision shall be issued within |
| forty-five (45) days after the certification of completeness, or within a further amount of time that |
| may be consented to by the applicant, to approve or deny the final plan as submitted. |
| (4) Failure to act. Failure of the planning board to act within the prescribed period |
| constitutes approval of the final plan, and a certificate of the administrative officer as to the failure |
| of the planning board to act within the required time and the resulting approval shall be issued on |
| request of the applicant. |
| (5) Expiration of approval. The final approval of a major subdivision or land |
| development project expires one year from the date of approval with the right to extend for one |
| year upon written request by the applicant, who must appear before the planning board for the |
| annual review, unless, within that period, the plat or plan has been submitted for signature and |
| recording as specified in § 45-23-64. Thereafter, the planning board may, for good cause shown, |
| extend the period for recording. |
| (6) Acceptance of public improvements. Signature and recording as specified in § 45- |
| 23-64 constitute the acceptance by the municipality of any street or other public improvement or |
| other land intended for dedication. Final plan approval shall not impose any duty upon the |
| municipality to maintain or improve those dedicated areas until the governing body of the |
| municipality accepts the completed public improvements as constructed in compliance with the |
| final plans. |
| (7) Validity of recorded plans. The approved final plan, once recorded, remains valid as |
| the approved plan for the site unless and until an amendment to the plan is approved under the |
| procedure stated in § 45-23-65, or a new plan is approved by the planning board. |
| (f) Modifications and changes to plans. |
| (1) Minor changes, as defined in the local regulations, to the plans approved at any stage |
| may be approved administratively, by the administrative officer. The changes may be authorized |
| without an additional planning board meeting, to the extent applicable, at the discretion of the |
| administrative officer. All changes shall be made part of the permanent record of the project |
| application. This provision does not prohibit the administrative officer from requesting |
| recommendation from either the technical review committee or the permitting authority. Denial of |
| the proposed change(s) shall be referred to the applicable permitting authority for review as a major |
| change. |
| (2) Major changes, as defined in the local regulations, to the plans approved at any stage |
| may be approved only by the applicable permitting authority and must include a public hearing. |
| (3) The administrative officer shall notify the applicant in writing within fourteen (14) |
| days of submission of the final plan application if the administrative officer determines the change |
| to be a major change of the approved plans. |
| (g) Appeal. Decisions under this section shall be considered an appealable decision |
| pursuant to § 45-23-71. |
| 45-23-71. Appeals to the superior court. [Effective January 1, 2024.] |
| (a) An aggrieved party may appeal a decision of the board of appeal; a decision of an |
| administrative officer made pursuant to § 45-23-38 or § 45-23-50 where authorized to approve or |
| deny an application; a decision of the technical review committee where authorized to approve or |
| deny an application; or a decision of the planning board, to the superior court for the county in |
| which the municipality is situated by filing a complaint stating the reasons for the appeal within |
| twenty (20) days after the decision has been recorded and posted in the office of the city or town |
| clerk. Recommendations by any public body or officer under this chapter are not appealable under |
| this section. The authorized permitting authority shall file the original documents acted upon by it |
| and constituting the record of the case appealed from, or certified copies of the original documents, |
| together with any other facts that may be pertinent, with the clerk of the court within thirty (30) |
| days after being served with a copy of the complaint. When the complaint is filed by someone other |
| than the original applicant or appellant, the original applicant or appellant and the planning board |
| shall be made parties to the proceedings. No responsive pleading is required for an appeal filed |
| pursuant to this section. The appeal does not stay proceedings upon the decision appealed from, but |
| the court may, in its discretion, grant a stay on appropriate terms and make any other orders that it |
| deems necessary for an equitable disposition of the appeal. |
| (b) Appeals from a decision granting or denying approval of a final plan shall be limited to |
| elements of the approval or disapproval not contained in the decision reached by the planning board |
| at the preliminary stage; providing provided that, a public hearing has been held on the plan, if |
| required pursuant to this chapter. |
| (c) The review shall be conducted by the superior court without a jury. The court shall |
| consider the record of the hearing before the planning board and, if it appears to the court that |
| additional evidence is necessary for the proper disposition of the matter, it may allow any party to |
| the appeal to present evidence in open court, which evidence, along with the report, shall constitute |
| the record upon which the determination of the court shall be made. |
| (d) The court shall not substitute its judgment for that of the planning board as to the weight |
| of the evidence on questions of fact. The court may affirm the decision of the board of appeal or |
| remand the case for further proceedings, or may reverse or modify the decision if substantial rights |
| of the appellant have been prejudiced because of findings, inferences, conclusions, or decisions that |
| are: |
| (1) In violation of constitutional, statutory, ordinance, or planning board regulations |
| provisions; |
| (2) In excess of the authority granted to the planning board by statute or ordinance; |
| (3) Made upon unlawful procedure; |
| (4) Affected by other error of law; |
| (5) Clearly erroneous in view of the reliable, probative, and substantial evidence of the |
| whole record; or |
| (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted |
| exercise of discretion. |
| ARTICLE III -- STATUTORY UNIFORMITY |
| SECTION 1. The purpose and intent of this act is to correct discrepancies concerning § 34- |
| 27-3.1 and § 34-27-3.2 of the general laws relating to chapter 27 of title 34 entitled Mortgage |
| Foreclosure and Sale. Upon passage of this act, the publications of the public laws and general laws |
| of these sections will be consistent, and will accurately reflect the intent of the general assembly |
| for the purposes of the practical application of the sections. |
| SECTION 2. Section 1 of Chapter 376 and 384 of the 2009 Public Laws entitled "An Act |
| Relating to Property--Mortgage Foreclosure and Sale" is hereby repealed. |
| 34-27-3.1. Foreclosure counseling. |
| (a) No less than forty-five (45) days prior to initiating any foreclosure of real estate |
| pursuant to subsection 34-27-4(b), the mortgagee shall provide to an individual consumer |
| mortgagor written notice of default and the mortgagee’s right to foreclose by first class mail at the |
| address of the real estate and, if different, at the address designated by the mortgagor by written |
| notice to the mortgagee as the mortgagor’s address for receipt of notices. |
| (b) The written notice required by this section shall be in English and Spanish and, |
| provided the same is then available, shall advise the mortgagor of the availability of counseling |
| through HUD-approved mortgage counseling agencies and, the toll-free telephone number and |
| website address maintained to provide information regarding no-cost HUD-approved mortgage |
| counseling agencies in Rhode Island. The written notice may also contain any other information |
| required under federal law. A form of written notice meeting the requirements of this section shall |
| be promulgated by the department of business regulation for use by mortgagees at least thirty (30) |
| days prior to the effective date of this section. Counseling shall be provided at no cost to the |
| mortgagee. |
| (c) Failure of the mortgagee to provide notice to the mortgagor as provided herein shall |
| render the foreclosure void, without limitation of the right of the mortgagee thereafter to reexercise |
| its power of sale or other means of foreclosure upon compliance with this section. The mortgagee |
| shall include in the foreclosure deed an affidavit of compliance with this section. |
| (d) As used herein and in this chapter, the term "HUD" means the United States Department |
| of Housing and Urban Development and any successor to such department. |
| SECTION 3. Section 1 of Chapters 325 and 406 of the 2013 public laws entitled "An Act |
| Relating to Property--Mortgage Foreclosure and Sale" is hereby repealed. |
| 34-27-3.2. Mediation conference. – |
| (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions, |
| caused in part by unemployment and underemployment, have negatively impacted a substantial |
| number of homeowners throughout the state, creating a situation which endangers the economic |
| stability of many of the citizens of this state, as the increasing numbers of foreclosures lead to |
| increases in unoccupied and unattended buildings and the unwanted displacement of homeowners |
| and tenants who desire to live and work within the state. |
| (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the |
| provisions of Chapter 34-27 of the general laws. As the need for a mortgage mediation process has |
| evolved, it is important for the state to develop a standardized, statewide process for foreclosure |
| mediation rather than a process based on local ordinances that may vary from municipality to |
| municipality. By providing a uniform standard for an early HUD-approved independent counseling |
| process in owner-occupied principal residence mortgage foreclosure cases, the chances of |
| achieving a positive outcome for homeowners and lenders will be enhanced. |
| (c) Definitions. The following definitions apply in the interpretations of the provisions of |
| this section unless the context requires another meaning: |
| (1) "Mediation conference" means a conference involving the mortgagee and mortgagor, |
| coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an |
| alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if |
| it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan work- |
| out or other solution in an effort to avoid foreclosure. |
| (2) "Mediation coordinator" means a person designated by a Rhode Island based HUD |
| approved counseling agency to serve as the unbiased, impartial and independent coordinator and |
| facilitator of the mediation conference, with no authority to impose a solution or otherwise act as a |
| consumer advocate, provided that such person possesses the experience and qualifications |
| established by the department. |
| (3) "Department" means the department of business regulation. |
| (4) "Good Faith" means that the mortgagor and mortgagee deal honestly and fairly with |
| the mediation coordinator with an intent to determine whether an alternative to foreclosure is |
| economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the |
| following factors: |
| (i) Mortgagee provided notice as required by this section; |
| (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf, |
| and with the authority to agree to a work-out agreement on its behalf; |
| (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for |
| information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor; |
| (iv) Mortgagee declines to accept the mortgagor’s work-out proposal, if any, and the |
| mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal; |
| (v) Where a mortgagee declines to accept the mortgagor’s work-out proposal, the |
| mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal |
| that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage. |
| (5) "HUD" means the United States Department of Housing and Urban Development and |
| any successor to such department. |
| (6) "Mortgage" means an individual consumer mortgage on any owner-occupied, one to |
| four (4) unit residential property which serves as the owner’s primary residence. |
| (7) "Mortgagee" means the holder of a mortgage. |
| (8) "Mortgagor" means the owner of the property subject to a mortgage. |
| (d) No mortgagee may initiate any foreclosure of real estate pursuant to subsection 34-27- |
| 4(b) unless the requirements of this section have been met. |
| (e) When a mortgage is not more than one hundred twenty (120) days delinquent, the |
| mortgagee or its mortgage servicer or other agent or representative of the mortgagee shall provide |
| to the mortgagor written notice, by certified and first class mail at the address of the real estate and, |
| if different, at the address designated by the mortgagor by written notice to the mortgagee as the |
| mortgagor's address for receipt of notices, that the mortgagee may not foreclose on the mortgaged |
| property without first participating in a mediation conference. |
| (f) A form of written notice meeting the requirements of this section shall be promulgated |
| by the department for use by mortgagees at least thirty (30) days prior to the effective date of this |
| section. The written notice required by this section shall be in English, Portuguese and Spanish, |
| reference the property’s plat and lot information, and may be combined with any other notice |
| required under this chapter or pursuant to state or federal law. |
| (g) The mediation conference shall take place in person, or over the phone, at a time and |
| place deemed mutually convenient for the parties by an individual employed by a HUD-approved |
| independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but |
| not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in |
| all respects with the mediation coordinator including, but not limited to, providing all necessary |
| financial and employment information and completing any and all loan resolution proposals and |
| applications deemed appropriate by the mediation coordinator. A mediation conference between |
| the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to |
| the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee at a |
| rate not to exceed five hundred dollars ($500) per engagement. |
| (h) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the |
| mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation |
| conference, or the mortgagor fails to cooperate in any respect with the requirements of this section, |
| the requirements of the section shall be deemed satisfied upon verification by the mediation |
| coordinator that the required notice was sent. Upon verification, a certificate will be issued |
| immediately by the mediation coordinator authorizing the mortgagee to proceed with the |
| foreclosure action, including recording the deed. Such certificate shall be recorded along with the |
| foreclosure deed. A form of certificate meeting the requirements of this section shall be |
| promulgated by the department for use by mortgagees at least thirty (30) days prior to the effective |
| date of this section. |
| (i) If the mediation coordinator determines that after a good faith effort made by the |
| mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the |
| terms of the loan in an effort to avoid foreclosure, such good faith effort by the mortgagee shall be |
| deemed to satisfy the requirements of this section. A certificate certifying such good faith effort |
| will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with |
| the foreclosure action and recording of the foreclosure deed. Such certification shall be recorded |
| along with the foreclosure deed. A form of certificate meeting the requirements of this section shall |
| be promulgated by the department for use by mortgagees at least thirty (30) days prior to the |
| effective date of this section. |
| (j) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of |
| the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the |
| mortgagor and mortgagee. |
| (k) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee |
| have entered into a written agreement and the mortgagor fails to fulfill his or her obligations under |
| the written agreement, the provisions of this section shall not apply to any foreclosure initiated |
| under this chapter within twelve (12) months following the execution of the written agreement. In |
| such case, the mortgagee shall include in the foreclosure deed an affidavit establishing its right to |
| proceed under this section. |
| (l) This section shall apply only to foreclosure of mortgages on owner-occupied, residential |
| real property with no more than four (4) dwelling units which is the primary dwelling of the owner |
| and not to mortgages secured by other real property. |
| (m) Notwithstanding any other provisions of this section, any locally-based mortgagees |
| shall be deemed to be in compliance with the requirements of this section if: |
| (1) The mortgagee is headquartered in Rhode Island; or |
| (2) The mortgagee maintains a physical office or offices exclusively in Rhode Island from |
| which office or offices it carries out full-service mortgage operations, including the acceptance and |
| processing of mortgage payments and the provision of local customer service and loss mitigation |
| and where Rhode Island staff have the authority to approve loan restructuring and other loss |
| mitigation strategies; and |
| (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as |
| a result of a mortgage foreclosure action contained a certification that the provisions of this section |
| have been satisfied. |
| (n) No deed offered by a mortgagee as a result of a mortgage foreclosure action shall be |
| submitted to a city or town recorder of deeds for recording in the land evidence records of the city |
| or town until and unless the requirements of this section are met. The mortgagee shall include in |
| the foreclosure deed an affidavit of compliance with this section. Failure of the mortgagee to |
| comply with the requirements of this section shall render the foreclosure void, without limitation |
| of the right of the mortgagee thereafter to re-exercise its power of sale or other means of foreclosure |
| upon compliance with this section. The rights of the mortgagor to any redress afforded under the |
| law are not abridged by this section. |
| (o) Any existing municipal ordinance or future ordinance which requires a conciliation or |
| mediation process as a precondition to the recordation of a foreclosure deed shall comply with the |
| provisions set forth herein and any provisions of said ordinances which do not comply with the |
| provisions set forth herein shall be determined to be unenforceable. |
| SECTION 4. Section 34-27-3.2 of the General Laws in Chapter 34-27 entitled "Mortgage |
| Foreclosure and Sale" is hereby repealed. |
| 34-27-3.2. Mediation conference. [The repeal of this section is reinstated in its current |
| form as § 34-27-9] |
| (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions, |
| caused in part by unemployment and underemployment, have negatively impacted a substantial |
| number of homeowners throughout the state, creating a situation that endangers the economic |
| stability of many of the citizens of this state as the increasing numbers of foreclosures lead to |
| increases in unoccupied and unattended buildings and the unwanted displacement of homeowners |
| and tenants who desire to live and work within the state. |
| (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the |
| provisions of chapter 27 of this title. As the need for a mortgage mediation process has evolved, it |
| is important for the state to develop a standardized, statewide process for foreclosure mediation |
| rather than a process based on local ordinances that may vary from municipality to municipality. |
| By providing a uniform standard for an early HUD-approved, independent counseling process in |
| owner-occupied principal residence mortgage foreclosure cases, the chances of achieving a positive |
| outcome for homeowners and lenders will be enhanced. |
| (c) Definitions. The following definitions apply in the interpretations of the provisions of |
| this section unless the context requires another meaning: |
| (1) "Default" means the failure of the mortgagor to make a timely payment of an amount |
| due under the terms of the mortgage contract, which failure has not been subsequently cured. |
| (2) "Department" means the department of business regulation. |
| (3) "Good faith" means that the mortgagor and mortgagee deal honestly and fairly with the |
| mediation coordinator with an intent to determine whether an alternative to foreclosure is |
| economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the |
| following factors: |
| (i) Mortgagee provided notice as required by this section; |
| (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf |
| and with the authority to agree to a work-out agreement on its behalf; |
| (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for |
| information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor; |
| (iv) Mortgagee declined to accept the mortgagor’s work-out proposal, if any, and the |
| mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal; |
| (v) Where a mortgagee declined to accept the mortgagor’s work-out proposal, the |
| mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal |
| that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage. |
| (4) "HUD" means the United States Department of Housing and Urban Development and |
| any successor to such department. |
| (5) "Mediation conference" means a conference involving the mortgagee and mortgagor, |
| coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an |
| alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if |
| it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan |
| workout or other solution in an effort to avoid foreclosure. |
| (6) "Mediation coordinator" means a person employed by a Rhode Island-based, HUD- |
| approved counseling agency designated to serve as the unbiased, impartial, and independent |
| coordinator and facilitator of the mediation conference, with no authority to impose a solution or |
| otherwise act as a consumer advocate, provided that such person possesses the experience and |
| qualifications established by the department. |
| (7) "Mortgage" means an individual consumer first-lien mortgage on any owner-occupied, |
| one (1)- to four (4)- unit residential property that serves as the mortgagor’s primary residence. |
| (8) "Mortgagee" means the holder of a mortgage, or its agent or employee, including a |
| mortgage servicer acting on behalf of a mortgagee. |
| (9) "Mortgagor" means the person who has signed a mortgage in order to secure a debt or |
| other duty, or the heir or devisee of such person provided that: |
| (i) The heir or devisee occupies the property as his or her primary residence; and |
| (ii) The heir or devisee has record title to the property, or a representative of the estate of |
| the mortgagor has been appointed with authority to participate in a mediation conference. |
| (d) The mortgagee shall, prior to initiation of foreclosure of real estate pursuant to § 34- |
| 27-4(b), provide to the mortgagor written notice at the address of the real estate and, if different, at |
| the address designated by the mortgagor by written notice to the mortgagee as the mortgagor’s |
| address for receipt of notices, that the mortgagee may not foreclose on the mortgaged property |
| without first participating in a mediation conference. Notice addressed and delivered as provided |
| in this section shall be effective with respect to the mortgagor and any heir or devisee of the |
| mortgagor. |
| (1) If the mortgagee fails to mail the notice required by this subsection to the mortgagor |
| within one hundred twenty (120) days after the date of default, it shall pay a penalty at the rate of |
| one thousand ($1,000) per month for each month or part thereof, with the first month commencing |
| on the one hundred twenty-first (121st) day after the date of default and a new month commencing |
| on the same day (or if there is no such day, then on the last day) of each succeeding calendar month |
| until the mortgagee sends the mortgagor written notice as required by this section. |
| Notwithstanding the foregoing, any penalties assessed under this subsection for any failure |
| of any mortgagee to provide notice as provided herein during the period from September 13, 2013, |
| through the effective date of this section shall not exceed the total amount of one hundred twenty- |
| five thousand dollars ($125,000) for such mortgagee. |
| (2) Penalties accruing pursuant to subsection (d)(1) shall be paid to the mediation |
| coordinator prior to the completion of the mediation process. All penalties accrued under this |
| section shall be transferred to the state within one month of receipt by the mediation coordinator |
| and deposited to the restricted-receipt account within the general fund established by § 42-128- |
| 2(3) and used for the purposes set forth therein. |
| (3) Issuance by the mediation coordinator of a certificate authorizing the mortgagee to |
| proceed to foreclosure, or otherwise certifying the mortgagee’s good-faith effort to comply with |
| the provisions of this section, shall constitute conclusive evidence that, to the extent that any penalty |
| may have accrued pursuant to subsection (d)(1), the penalty has been paid in full by the mortgagee. |
| (4) Notwithstanding any other provisions of this subsection, a mortgagee shall not accrue |
| any penalty if the notice required by this subsection is mailed to the borrower: |
| (i) Within sixty (60) days after the date upon which the loan is released from the protection |
| of the automatic stay in a bankruptcy proceeding, or any similar injunctive order issued by a state |
| or federal court, or within sixty (60) days after a loan is no longer afforded protection under the |
| Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.) or the provisions of § 34-27-4(d), or |
| within one hundred twenty (120) days of the date on which the mortgagor initially failed to comply |
| with the terms of an eligible workout agreement, as hereinafter defined; and |
| (ii) The mortgagee otherwise complies with the requirements of subsection (d); provided, |
| however, that if the mortgagee fails to mail the notice required by subsection (d) to the mortgagor |
| within the time frame set forth in subsection (d)(4)(i), the mortgagee shall pay a penalty at the rate |
| of one thousand dollars ($1,000) per month for each month, or part thereof, with the first month |
| commencing on the thirty-first (31st) day after the date upon which the loan is released from the |
| protection of the automatic stay in a bankruptcy proceeding or any similar injunctive order issued |
| by a state or federal court and a new month commencing on the same day (or if there is no such |
| day, then on the last day) of each succeeding calendar month until the mortgagee sends the |
| mortgagor written notice as required by this section. Notwithstanding the foregoing, any penalties |
| assessed under this subsection for any failure of any mortgagee to provide notice as provided herein |
| during the period from September 13, 2013, through the effective date of this section shall not |
| exceed the total amount of one hundred twenty-five thousand dollars ($125,000) for such |
| mortgagee. |
| (5) Notwithstanding any other provisions of this section, a mortgagee may initiate a judicial |
| foreclosure in accordance with § 34-27-1. |
| (e) A form of written notice meeting the requirements of this section shall be promulgated |
| by the department for use by mortgagees at least thirty (30) days prior to the effective date of this |
| section. The written notice required by this section shall be in English, Portuguese, and Spanish |
| and may be combined with any other notice required under this chapter or pursuant to state or |
| federal law. |
| (f) The mediation conference shall take place in person, or over the phone, at a time and |
| place deemed mutually convenient for the parties by an individual employed by a HUD-approved, |
| independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but |
| not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in |
| all respects with the mediation coordinator including, but not limited to, providing all necessary |
| financial and employment information and completing any and all loan resolution proposals and |
| applications deemed appropriate by the mediation coordinator. A mediation conference between |
| the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to |
| the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee for |
| mediation conferences that take place at a rate not to exceed five hundred dollars ($500) per |
| mediation. The HUD-approved agency shall be entitled to a filing fee not to exceed one hundred |
| dollars ($100) per mediation engagement. |
| (g) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the |
| mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation |
| conference, or the mortgagor fails to cooperate in any respect with the requirements of this section, |
| the requirements of the section shall be deemed satisfied upon verification by the mediation |
| coordinator that the required notice was sent and any penalties accrued pursuant to subsection (d)(1) |
| and any payments owed pursuant to subsection (f) have been paid. Upon verification, a certificate |
| will be issued immediately by the mediation coordinator authorizing the mortgagee to proceed with |
| the foreclosure action, including recording the deed. Such certificate shall be valid until the earlier |
| of: |
| (1) The curing of the default condition; or |
| (2) The foreclosure of the mortgagor’s right of redemption. |
| The certificate shall be recorded along with the foreclosure deed. A form of certificate |
| meeting the requirements of this section shall be promulgated by the department for use by |
| mortgagees at least thirty (30) days prior to the effective date of this section. |
| (h) If the mediation coordinator determines that after a good-faith effort made by the |
| mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the |
| terms of the loan in an effort to avoid foreclosure, such good-faith effort by the mortgagee shall be |
| deemed to satisfy the requirements of this section. A certificate certifying such good-faith effort |
| will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with |
| the foreclosure action and recording of the foreclosure deed; provided, however, that the mediation |
| coordinator shall not be required to issue such a certificate until any penalties accrued pursuant to |
| subsections (d)(1) and (d)(4)(ii), and any payments owed pursuant to subsection (f), have been paid. |
| Such certification shall be valid until the earlier of: |
| (1) The curing of the default condition; or |
| (2) The foreclosure of the mortgagor’s equity of redemption. |
| The certificate shall be recorded along with the foreclosure deed. A form of certificate |
| meeting the requirements of this section shall be promulgated by the department for use by |
| mortgagees at least thirty (30) days prior to the effective date of this section. |
| (i) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of |
| the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the |
| mortgagor and mortgagee. If the mortgagee and mortgagor reach agreement after the notice of |
| mediation conference is sent to the mortgagor, but without the assistance of the mediation |
| coordinator, the mortgagee shall provide a copy of the written agreement to the mediation |
| coordinator. Upon receipt of a written agreement between the mortgagee and mortgagor, the |
| mediation coordinator shall issue a certificate of eligible workout agreement if the workout |
| agreement would result in a net financial benefit to the mortgagor as compared to the terms of the |
| mortgage ("Certificate of Eligible Workout Agreement"). For purposes of this subsection, evidence |
| of an agreement shall include, but not be limited to, evidence of agreement by both mortgagee and |
| mortgagor to the terms of a short sale or a deed in lieu of foreclosure, regardless of whether said |
| short sale or deed in lieu of foreclosure is subsequently completed. |
| (j) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee |
| have entered into a written agreement and the mediation coordinator has issued a certificate of |
| eligible workout agreement as provided in subsection (i), if the mortgagor fails to fulfill his or her |
| obligations under the eligible workout agreement, the provisions of this section shall not apply to |
| any foreclosure initiated under this chapter within twelve (12) months following the date of the |
| eligible workout agreement. In such case, the mortgagee shall include in the foreclosure deed an |
| affidavit establishing its right to proceed under this section. |
| (k) This section shall apply only to foreclosure of mortgages on owner-occupied, |
| residential real property with no more than four (4) dwelling units that is the primary dwelling of |
| the mortgagor and not to mortgages secured by other real property. |
| (l) Notwithstanding any other provisions of this section, any locally based mortgagees shall |
| be deemed to be in compliance with the requirements of this section if: |
| (1) The mortgagee is headquartered in Rhode Island; or |
| (2) The mortgagee maintains a physical office, or offices, exclusively in Rhode Island from |
| which office, or offices, it carries out full-service mortgage operations, including the acceptance |
| and processing of mortgage payments and the provision of local customer service and loss |
| mitigation and where Rhode Island staff have the authority to approve loan restructuring and other |
| loss mitigation strategies; and |
| (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as |
| a result of a mortgage foreclosure action under power of sale contained a certification that the |
| provisions of this section have been satisfied. |
| (m) No deed offered by a mortgagee as a result of a mortgage foreclosure action under |
| power of sale shall be submitted to a city or town recorder of deeds for recording in the land |
| evidence records of the city or town until and unless the requirements of this section are met. Failure |
| of the mortgagee to comply with the requirements of this section shall render the foreclosure |
| voidable, without limitation of the right of the mortgagee thereafter to re-exercise its power of sale |
| or other means of foreclosure upon compliance with this section. The rights of the mortgagor to |
| any redress afforded under the law are not abridged by this section. |
| (n) Any existing municipal ordinance or future ordinance that requires a conciliation or |
| mediation process as a precondition to the recordation of a foreclosure deed shall comply with the |
| provisions set forth herein and any provisions of said ordinances that do not comply with the |
| provisions set forth herein shall be determined to be unenforceable. |
| (o) The provisions of this section shall not apply if: |
| (1) The mortgage is a reverse mortgage as described in chapter 25.1 of this title; or |
| (2) The date of default under the mortgage is on or before May 16, 2013. |
| (p) Limitations on actions. Any person who claims that a foreclosure is not valid due to the |
| mortgagee’s failure to comply with the terms of this section shall have one year from the date that |
| the first notice of foreclosure was published to file a complaint in the superior court for the county |
| in which the property is located and shall also file in the records of land evidence in the city or town |
| where the land subject to the mortgage is located a notice of lis pendens, the complaint to be filed |
| on the same day as the notice of lis pendens or within seven (7) days thereafter. Failure to file a |
| complaint, record the notice of lis pendens, and serve the mortgagee within the one-year period |
| shall preclude said mortgagor, or any other person claiming an interest through a mortgagor, from |
| subsequently challenging the validity of the foreclosure. Issuance by the mediation coordinator of |
| a certificate authorizing the mortgagee to proceed to foreclosure, or otherwise certifying the |
| mortgagee’s good-faith effort to comply with the provisions of this section, shall constitute a |
| rebuttable presumption that the notice requirements of subsection (d) have been met in all respects. |
| SECTION 5. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and Sale" |
| is hereby amended by adding thereto the following section: |
| 34-27-9. Mediation conference. [Reinstated from § 34-27-3.2] |
| (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions, |
| caused in part by unemployment and underemployment, have negatively impacted a substantial |
| number of homeowners throughout the state, creating a situation that endangers the economic |
| stability of many of the citizens of this state as the increasing numbers of foreclosures lead to |
| increases in unoccupied and unattended buildings and the unwanted displacement of homeowners |
| and tenants who desire to live and work within the state. |
| (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the |
| provisions of chapter 27 of this title. As the need for a mortgage mediation process has evolved, it |
| is important for the state to develop a standardized, statewide process for foreclosure mediation |
| rather than a process based on local ordinances that may vary from municipality to municipality. |
| By providing a uniform standard for an early HUD-approved, independent counseling process in |
| owner-occupied principal residence mortgage foreclosure cases, the chances of achieving a positive |
| outcome for homeowners and lenders will be enhanced. |
| (c) Definitions. The following definitions apply in the interpretations of the provisions of |
| this section unless the context requires another meaning: |
| (1) "Default" means the failure of the mortgagor to make a timely payment of an amount |
| due under the terms of the mortgage contract, which failure has not been subsequently cured. |
| (2) "Department" means the department of business regulation. |
| (3) "Good faith" means that the mortgagor and mortgagee deal honestly and fairly with the |
| mediation coordinator with an intent to determine whether an alternative to foreclosure is |
| economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the |
| following factors: |
| (i) Mortgagee provided notice as required by this section; |
| (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf |
| and with the authority to agree to a work-out agreement on its behalf; |
| (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for |
| information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor; |
| (iv) Mortgagee declined to accept the mortgagor’s work-out proposal, if any, and the |
| mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal; |
| (v) Where a mortgagee declined to accept the mortgagor’s work-out proposal, the |
| mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal |
| that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage. |
| (4) "HUD" means the United States Department of Housing and Urban Development and |
| any successor to such department. |
| (5) "Mediation conference" means a conference involving the mortgagee and mortgagor, |
| coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an |
| alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if |
| it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan |
| workout or other solution in an effort to avoid foreclosure. |
| (6) "Mediation coordinator" means a person employed by a Rhode Island-based, HUD- |
| approved counseling agency designated to serve as the unbiased, impartial, and independent |
| coordinator and facilitator of the mediation conference, with no authority to impose a solution or |
| otherwise act as a consumer advocate, provided that such person possesses the experience and |
| qualifications established by the department. |
| (7) "Mortgage" means an individual consumer first-lien mortgage on any owner-occupied, |
| one (1)- to four (4)- unit residential property that serves as the mortgagor’s primary residence. |
| (8) "Mortgagee" means the holder of a mortgage, or its agent or employee, including a |
| mortgage servicer acting on behalf of a mortgagee. |
| (9) "Mortgagor" means the person who has signed a mortgage in order to secure a debt or |
| other duty, or the heir or devisee of such person provided that: |
| (i) The heir or devisee occupies the property as his or her primary residence; and |
| (ii) The heir or devisee has record title to the property, or a representative of the estate of |
| the mortgagor has been appointed with authority to participate in a mediation conference. |
| (d) The mortgagee shall, prior to initiation of foreclosure of real estate pursuant to § 34- |
| 27-4(b), provide to the mortgagor written notice at the address of the real estate and, if different, at |
| the address designated by the mortgagor by written notice to the mortgagee as the mortgagor’s |
| address for receipt of notices, that the mortgagee may not foreclose on the mortgaged property |
| without first participating in a mediation conference. Notice addressed and delivered as provided |
| in this section shall be effective with respect to the mortgagor and any heir or devisee of the |
| mortgagor. |
| (1) If the mortgagee fails to mail the notice required by this subsection to the mortgagor |
| within one hundred twenty (120) days after the date of default, it shall pay a penalty at the rate of |
| one thousand ($1,000) per month for each month or part thereof, with the first month commencing |
| on the one hundred twenty-first (121st) day after the date of default and a new month commencing |
| on the same day (or if there is no such day, then on the last day) of each succeeding calendar month |
| until the mortgagee sends the mortgagor written notice as required by this section. |
| Notwithstanding the foregoing, any penalties assessed under this subsection for any failure |
| of any mortgagee to provide notice as provided herein during the period from September 13, 2013, |
| through the effective date of this section shall not exceed the total amount of one hundred twenty- |
| five thousand dollars ($125,000) for such mortgagee. |
| (2) Penalties accruing pursuant to subsection (d)(1) shall be paid to the mediation |
| coordinator prior to the completion of the mediation process. All penalties accrued under this |
| section shall be transferred to the state within one month of receipt by the mediation coordinator |
| and deposited to the restricted-receipt account within the general fund established by § 42-128- |
| 2(3) and used for the purposes set forth therein. |
| (3) Issuance by the mediation coordinator of a certificate authorizing the mortgagee to |
| proceed to foreclosure, or otherwise certifying the mortgagee’s good-faith effort to comply with |
| the provisions of this section, shall constitute conclusive evidence that, to the extent that any penalty |
| may have accrued pursuant to subsection (d)(1), the penalty has been paid in full by the mortgagee. |
| (4) Notwithstanding any other provisions of this subsection, a mortgagee shall not accrue |
| any penalty if the notice required by this subsection is mailed to the borrower: |
| (i) Within sixty (60) days after the date upon which the loan is released from the protection |
| of the automatic stay in a bankruptcy proceeding, or any similar injunctive order issued by a state |
| or federal court, or within sixty (60) days after a loan is no longer afforded protection under the |
| Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.) or the provisions of § 34-27-4(d), or |
| within one hundred twenty (120) days of the date on which the mortgagor initially failed to comply |
| with the terms of an eligible workout agreement, as hereinafter defined; and |
| (ii) The mortgagee otherwise complies with the requirements of subsection (d); provided, |
| however, that if the mortgagee fails to mail the notice required by subsection (d) to the mortgagor |
| within the time frame set forth in subsection (d)(4)(i), the mortgagee shall pay a penalty at the rate |
| of one thousand dollars ($1,000) per month for each month, or part thereof, with the first month |
| commencing on the thirty-first (31st) day after the date upon which the loan is released from the |
| protection of the automatic stay in a bankruptcy proceeding or any similar injunctive order issued |
| by a state or federal court and a new month commencing on the same day (or if there is no such |
| day, then on the last day) of each succeeding calendar month until the mortgagee sends the |
| mortgagor written notice as required by this section. Notwithstanding the foregoing, any penalties |
| assessed under this subsection for any failure of any mortgagee to provide notice as provided herein |
| during the period from September 13, 2013, through the effective date of this section shall not |
| exceed the total amount of one hundred twenty-five thousand dollars ($125,000) for such |
| mortgagee. |
| (5) Notwithstanding any other provisions of this section, a mortgagee may initiate a judicial |
| foreclosure in accordance with § 34-27-1. |
| (e) A form of written notice meeting the requirements of this section shall be promulgated |
| by the department for use by mortgagees at least thirty (30) days prior to the effective date of this |
| section. The written notice required by this section shall be in English, Portuguese, and Spanish |
| and may be combined with any other notice required under this chapter or pursuant to state or |
| federal law. |
| (f) The mediation conference shall take place in person, or over the phone, at a time and |
| place deemed mutually convenient for the parties by an individual employed by a HUD-approved, |
| independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but |
| not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in |
| all respects with the mediation coordinator including, but not limited to, providing all necessary |
| financial and employment information and completing any and all loan resolution proposals and |
| applications deemed appropriate by the mediation coordinator. A mediation conference between |
| the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to |
| the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee for |
| mediation conferences that take place at a rate not to exceed five hundred dollars ($500) per |
| mediation. The HUD-approved agency shall be entitled to a filing fee not to exceed one hundred |
| dollars ($100) per mediation engagement. |
| (g) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the |
| mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation |
| conference, or the mortgagor fails to cooperate in any respect with the requirements of this section, |
| the requirements of the section shall be deemed satisfied upon verification by the mediation |
| coordinator that the required notice was sent and any penalties accrued pursuant to subsection (d)(1) |
| and any payments owed pursuant to subsection (f) have been paid. Upon verification, a certificate |
| will be issued immediately by the mediation coordinator authorizing the mortgagee to proceed with |
| the foreclosure action, including recording the deed. Such certificate shall be valid until the earlier |
| of: |
| (1) The curing of the default condition; or |
| (2) The foreclosure of the mortgagor’s right of redemption. |
| The certificate shall be recorded along with the foreclosure deed. A form of certificate |
| meeting the requirements of this section shall be promulgated by the department for use by |
| mortgagees at least thirty (30) days prior to the effective date of this section. |
| (h) If the mediation coordinator determines that after a good-faith effort made by the |
| mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the |
| terms of the loan in an effort to avoid foreclosure, such good-faith effort by the mortgagee shall be |
| deemed to satisfy the requirements of this section. A certificate certifying such good-faith effort |
| will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with |
| the foreclosure action and recording of the foreclosure deed; provided, however, that the mediation |
| coordinator shall not be required to issue such a certificate until any penalties accrued pursuant to |
| subsections (d)(1) and (d)(4)(ii), and any payments owed pursuant to subsection (f), have been paid. |
| Such certification shall be valid until the earlier of: |
| (1) The curing of the default condition; or |
| (2) The foreclosure of the mortgagor’s equity of redemption. |
| The certificate shall be recorded along with the foreclosure deed. A form of certificate |
| meeting the requirements of this section shall be promulgated by the department for use by |
| mortgagees at least thirty (30) days prior to the effective date of this section. |
| (i) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of |
| the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the |
| mortgagor and mortgagee. If the mortgagee and mortgagor reach agreement after the notice of |
| mediation conference is sent to the mortgagor, but without the assistance of the mediation |
| coordinator, the mortgagee shall provide a copy of the written agreement to the mediation |
| coordinator. Upon receipt of a written agreement between the mortgagee and mortgagor, the |
| mediation coordinator shall issue a certificate of eligible workout agreement if the workout |
| agreement would result in a net financial benefit to the mortgagor as compared to the terms of the |
| mortgage ("Certificate of Eligible Workout Agreement"). For purposes of this subsection, evidence |
| of an agreement shall include, but not be limited to, evidence of agreement by both mortgagee and |
| mortgagor to the terms of a short sale or a deed in lieu of foreclosure, regardless of whether said |
| short sale or deed in lieu of foreclosure is subsequently completed. |
| (j) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee |
| have entered into a written agreement and the mediation coordinator has issued a certificate of |
| eligible workout agreement as provided in subsection (i), if the mortgagor fails to fulfill his or her |
| obligations under the eligible workout agreement, the provisions of this section shall not apply to |
| any foreclosure initiated under this chapter within twelve (12) months following the date of the |
| eligible workout agreement. In such case, the mortgagee shall include in the foreclosure deed an |
| affidavit establishing its right to proceed under this section. |
| (k) This section shall apply only to foreclosure of mortgages on owner-occupied, |
| residential real property with no more than four (4) dwelling units that is the primary dwelling of |
| the mortgagor and not to mortgages secured by other real property. |
| (l) Notwithstanding any other provisions of this section, any locally based mortgagees shall |
| be deemed to be in compliance with the requirements of this section if: |
| (1) The mortgagee is headquartered in Rhode Island; or |
| (2) The mortgagee maintains a physical office, or offices, exclusively in Rhode Island from |
| which office, or offices, it carries out full-service mortgage operations, including the acceptance |
| and processing of mortgage payments and the provision of local customer service and loss |
| mitigation and where Rhode Island staff have the authority to approve loan restructuring and other |
| loss mitigation strategies; and |
| (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as |
| a result of a mortgage foreclosure action under power of sale contained a certification that the |
| provisions of this section have been satisfied. |
| (m) No deed offered by a mortgagee as a result of a mortgage foreclosure action under |
| power of sale shall be submitted to a city or town recorder of deeds for recording in the land |
| evidence records of the city or town until and unless the requirements of this section are met. Failure |
| of the mortgagee to comply with the requirements of this section shall render the foreclosure |
| voidable, without limitation of the right of the mortgagee thereafter to re-exercise its power of sale |
| or other means of foreclosure upon compliance with this section. The rights of the mortgagor to |
| any redress afforded under the law are not abridged by this section. |
| (n) Any existing municipal ordinance or future ordinance that requires a conciliation or |
| mediation process as a precondition to the recordation of a foreclosure deed shall comply with the |
| provisions set forth herein and any provisions of said ordinances that do not comply with the |
| provisions set forth herein shall be determined to be unenforceable. |
| (o) The provisions of this section shall not apply if: |
| (1) The mortgage is a reverse mortgage as described in chapter 25.1 of this title; or |
| (2) The date of default under the mortgage is on or before May 16, 2013. |
| (p) Limitations on actions. Any person who claims that a foreclosure is not valid due to the |
| mortgagee’s failure to comply with the terms of this section shall have one year from the date that |
| the first notice of foreclosure was published to file a complaint in the superior court for the county |
| in which the property is located and shall also file in the records of land evidence in the city or town |
| where the land subject to the mortgage is located a notice of lis pendens, the complaint to be filed |
| on the same day as the notice of lis pendens or within seven (7) days thereafter. Failure to file a |
| complaint, record the notice of lis pendens, and serve the mortgagee within the one-year period |
| shall preclude said mortgagor, or any other person claiming an interest through a mortgagor, from |
| subsequently challenging the validity of the foreclosure. Issuance by the mediation coordinator of |
| a certificate authorizing the mortgagee to proceed to foreclosure, or otherwise certifying the |
| mortgagee’s good-faith effort to comply with the provisions of this section, shall constitute a |
| rebuttable presumption that the notice requirements of subsection (d) have been met in all respects. |
| ARTICLE IV -- EFFECTIVE DATE |
| SECTION 1. Article I of this act shall take effect on December 31, 2024. Article II and |
| Article III of this act shall take effect upon passage. |
| ======== |
| LC006023/SUB A/2 |
| ======== |