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. |
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LC006023/SUB A/2 |
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