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art.003/8/003/7/003/6/003/5/003/4/003/3/003/2/003/1
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ARTICLE 3 AS AMENDED
RELATING TO GOVERNMENT REFORM AND REORGANIZATION

     SECTION 1. Sections 2-26-3, 2-26-4, 2-26-5, 2-26-6, 2-26-7, 2-26-8, 2-26-9 and 2-26-10
of the General Laws in Chapter 2-26 entitled "Hemp Growth Act" are hereby amended to read as
follows:
     2-26-3. Definitions.
     When used in this chapter, the following terms shall have the following meanings:
     (1) “Applicant” means any person, firm, corporation, or other legal entity who or that, on
his, her, or its own behalf, or on behalf of another, has applied for permission to engage in any act
or activity that is regulated under the provisions of this chapter.
     (24) “Cannabis” means all parts of the plant of the genus marijuana, also known as
marijuana sativa L. whether growing or not; the seeds thereof; the resin extracted from any part of
the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or resin regardless of cannabinoid content or cannabinoid potency including “marijuana”
and “industrial hemp” or “industrial hemp products” which satisfy the requirements of this chapter.
     (32) “Cannabidiol” or “CBD” means cannabidiol (CBD) derived from a hemp plant as
defined in § 2-26-3, not including products derived from exempt cannabis plant material as defined
in 21 C.F.R. § 1308.35.
     (43) “Department” means the office of cannabis regulation within the department of
business regulation “Cannabis control commission” or “commission” means the Rhode Island
cannabis control commission established by § 21-28.11-4.
     (56) “Division” means the division of agriculture in the department of environmental
management.
     (67) “Grower” means a person or entity who or that produces hemp for commercial
purposes.
     (78) “Handler” means a person or entity who or that produces or processes hemp or
agricultural hemp seed into commodities or who manufactures hemp products.
     (810) “Hemp” or “industrial hemp” means the plant Cannabis sativa L. and any part of that
plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts,
and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of
not more than three-tenths percent (0.3%) on a dry weight or per volume basis regardless of
moisture content, and which satisfies the requirements of this chapter.
     (9) “Hemp-derived consumable CBD product” means any product meant for ingestion,
including, but not limited to, concentrates, extracts, and cannabis-infused foods and products,
which contains cannabidiol derived from a hemp plant as defined in this section, which shall only
be sold to persons age twenty-one (21) or older, and which shall not include products derived from
exempt cannabis plant material as defined in 21 C.F.R. § 1308.35.
     (1011) “Hemp products” or “industrial hemp products” means all products made from the
plants, including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, hemp-derived
consumable CBD products, paint, paper, construction materials, plastics, seed, seed meal, seed oil,
and seed certified for cultivation, which satisfy the requirements of this chapter.
     (1112) “Licensed CBD distributor” means a person licensed to distribute hemp-derived
consumable CBD products pursuant to this chapter.
     (1213) “Licensed CBD retailer” means a person licensed to sell hemp-derived consumable
CBD products pursuant to this chapter.
     (135) “Cannabis office” or “office” means the cannabis office established by § 21-28.11-
18.1.
     (13)(14) “THC” means tetrahydrocannabinol, the principal psychoactive constituent of
cannabis.
     (14)(15) “THCA” means tetrahydrocannabinol acid.
     2-26-4. Hemp an agricultural product.
     Hemp is an agricultural product that may be grown as a crop, produced, possessed,
distributed, sold at retail, and commercially traded pursuant to the provisions of this chapter. Hemp
is subject to primary regulation by the department commission. The division may assist the
department commission in the regulation of hemp growth and production.
     2-26-5. Authority over licensing and sales.
     (a) The department commission shall prescribe rules and regulations for the licensing and
regulation of hemp growers, handlers, licensed CBD distributors, and licensed CBD retailers and
persons employed by the applicant not inconsistent with law, to carry into effect the provision of
this chapter and shall be responsible for the enforcement of the licensing.
     (b) All growers, handlers, licensed CBD distributors, and licensed CBD retailers must have
a hemp license issued by the department commission. All production, distribution, and retail sale
of hemp-derived consumable CBD products must be consistent with any applicable state or local
food processing and safety regulations, and the applicant shall be responsible to ensure its
compliance with the regulations and any applicable food safety licensing requirements, including,
but not limited to, those promulgated by the department of health.
     (c) The application for a hemp license shall include, but not be limited to, the following:
     (1)(i) The name and address of the applicant who will supervise, manage, or direct the
growing and handling of hemp and the names and addresses of any person or entity partnering or
providing consulting services regarding the growing or handling of hemp; and
     (ii) The name and address of the applicant who will supervise, manage, or direct the
distribution or sale of hemp-derived consumable CBD products, and names and addresses of any
person or entity partnering or providing consulting services regarding the distribution or sale of
hemp-derived CBD products.
     (2) A certificate of analysis that the seeds or plants obtained for cultivation are of a type
and variety that do not exceed the maximum concentration of delta-9 THC, as set forth in § 2-26-
3; any seeds that are obtained from a federal agency are presumed not to exceed the maximum
concentration and do not require a certificate of analysis.
     (3)(i) The location of the facility, including the Global Positioning System location, and
other field reference information as may be required by the department commission with a tracking
program and security layout to ensure that all hemp grown is tracked and monitored from seed to
distribution outlets; and
     (ii) The location of the facility and other information as may be required by the department
commission as to where the distribution or sale of hemp-derived consumable CBD products will
occur.
     (4) An explanation of the seed-to-sale tracking, cultivation method, extraction method, and
certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if
required by the department commission.
     (5) Verification, prior to planting any seed, that the plant to be grown is of a type and
variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of one
percent (0.3%) on a dry-weight basis.
     (6) Documentation that the licensee and/or its agents have entered into a purchase
agreement with a hemp handler, processor, distributor, or retailer.
     (7) All applicants:
     (i) Shall apply to the state police, attorney general, 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 disqualifying conviction defined in subsections
(c)(7)(iv) and (c)(7)(v), and in accordance with the rules promulgated by the department
commission, the state police shall inform the applicant, in writing, of the nature of the conviction,
and the state police shall notify the department commission, in writing, without disclosing the
nature of the conviction, that a conviction has been found;
     (ii) In those situations in which no conviction has been found, the state police shall inform
the applicant and the department commission, in writing, of this fact;
     (iii) All applicants shall be responsible for any expense associated with the criminal
background check with fingerprints.
     (iv) Any applicant who has been convicted of any felony offense under chapter 28 of title
21, or any person who has been convicted of murder; manslaughter; first-degree sexual assault;
second-degree sexual assault; first-degree child molestation; second-degree child molestation;
kidnapping; first-degree arson; second-degree arson; mayhem; robbery; burglary; breaking and
entering; assault with a dangerous weapon; or any assault and battery punishable as a felony or
assault with intent to commit any offense punishable as a felony, shall, subject to § 28-5.1-14, be
disqualified from holding any license or permit under this chapter. The department commission
shall notify any applicant, in writing, of a denial of a license pursuant to this subsection.
     (v) For purposes of this section, “conviction” means, in addition to judgments of conviction
entered by a court subsequent to a finding of guilty, or plea of guilty, those instances where the
defendant has entered a plea of nolo contendere and has received a jail sentence or a suspended jail
sentence, or those instances wherein the defendant has entered into a deferred sentence agreement
with the Rhode Island attorney general and the period of deferment has not been completed.
     (8) Any other information as set forth in rules and regulations as required by the department
commission.
     (d) [Deleted by P.L. 2019, ch. 88, art. 15, § 1.]
     (e) The department commission shall issue a hemp license to the grower or handler
applicant if he, she, or it meets the requirements of this chapter, upon the applicant paying a
licensure fee of two thousand five hundred dollars ($2,500). The license shall be renewed every
two (2) years upon payment of a two thousand five hundred dollar ($2,500) renewal fee. Any
licensee convicted of any disqualifying offense described in subsection (c)(7)(iv) shall, subject to
§ 28-5.1-14, have his, her, or itstheir license revoked. All license fees shall be directed to the
department commission to help defray the cost of enforcement. The department commission shall
collect a nonrefundable application fee of two hundred fifty dollars ($250) for each application to
obtain a license.
     (f) Any grower or handler license applicant or license holder may also apply for and be
issued one (1) CBD distributor and/or one (1) CBD retailer license at no additional cost, provided
their grower or handler license is issued or renewed. CBD distributor and CBD retailer licenses
shall be renewed each year at no additional fee provided the applicant also holds or renews a grower
and/or handler license.
     (g) For applicants who do not hold, renew, or receive a grower or handler license, CBD
distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500). The
licenses shall be renewed each year upon approval by the department commission and payment of
a five hundred dollar ($500) renewal fee.
     (h) The commission shall have the authority to temporarily suspend hemp applications and
issuance of new hemp licenses for a defined period if the commission determines that such action
is necessary to:
     (1).Conduct a study or evaluation of market conditions, supply and demand dynamics, or
regulatory impacts;
     (2).Ensure adequate oversight and compliance with existing licensees; and
     (3).Address any identified risks to public health, safety, or environmental welfare.
     (i) During a suspension period, the commission may continue to process renewal
applications of existing licensees.
     2-26-6. Rulemaking authority.
     (a) The department commission shall adopt rules to provide for the implementation of this
chapter, which shall include rules to require hemp to be tested during growth for THC levels and
to require inspection of hemp during sowing, growing season, harvest, storage, and processing.
Included in these rules should be a system requiring the licensee to submit crop samples to an
approved testing facility, as determined by the department commission for testing and verification
of compliance with the limits on delta-9 THC concentration.
     (b) The department commission shall prescribe rules and regulations for all operational
requirements for licensed growers, handlers, CBD distributors, and retailers, and to ensure
consistency in manufactured products and appropriate packaging, labeling, and placement with
respect to retail sales not inconsistent with law, to carry in effect the provisions of this chapter.
     (c) The department commission shall not adopt, under this or any other section, a rule that
would prohibit a person or entity to grow, distribute, or sell hemp based solely on the legal status
of hemp under federal law.
     (d) The department commission may adopt rules and regulations based on federal law
provided those rules and regulations are designed to comply with federal guidance and mitigate
federal enforcement against the licenses issued under this chapter.
     (e) [Deleted by P.L. 2020, ch. 1, § 2 and P.L. 2020, ch. 2, § 2.]
     2-26-7. Licensure.
     (a) Except as provided in this section, beginning sixty (60) days after the effective date of
this chapter, the department commission shall accept the application for licensure to cultivate hemp
submitted by the applicant.
     (b) A person or entity, licensed by the department commission pursuant to this chapter,
shall allow hemp crops, throughout sowing, year-long growing seasons, harvest storage, and
processing, manufacturing, and retail facilities to be inspected and tested by and at the discretion
of the department commission and as required pursuant to any applicable state or local food
processing and safety regulations, including, but not limited to those, promulgated by the Rhode
Island department of health.
     2-26-8. Methods of extraction.
     (a) The department commission shall adopt rules regarding permissible methods of
extraction.
     (b) No butane method of extraction shall be permitted by the department commission.
     2-26-9. Research and educational growth by institutions of higher education.
     (a) The department commission is authorized to certify any higher educational institution
in Rhode Island to grow or handle, or assist in growing or handling, industrial hemp for the purpose
of agricultural or academic research where such higher educational institution submits the
following to the department commission:
     (1) The location where the higher educational institution intends to grow or cultivate the
industrial hemp;
     (2) The higher educational institution’s research plan; and
     (3) The name of the employee of the higher educational institution who will supervise the
hemp growth, cultivation, and research.
     (b) Growth for purposes of agricultural and educational research by a higher educational
institution shall not be subject to the licensing requirements set forth in § 2-26-5.
     (c) The applicant is encouraged to partner with an institution of higher learning within the
state of Rhode Island to develop best practices for growing and handling hemp.
     (d) The department commission shall maintain a list of each higher education institution
certified to grow or cultivate industrial hemp under this chapter.
     2-26-10. Enforcement of violations of chapter.
     (a) Notwithstanding any other provision of this chapter, if the director of the department
chairperson of the commission, or his or herthe chairperson’s designee, has cause to believe that
a violation of any provision of this chapter or any regulations promulgated hereunder has occurred
by a licensee who or that is under the department's commission's jurisdiction pursuant to this
chapter, or that any person or entity is conducting any activities requiring licensure by the
department commission under this chapter or the regulations promulgated hereunder without such
licensure, the director chairperson, or his or herthe chairperson’s designee, may, in accordance
with the requirements of the administrative procedures act, chapter 35 of title 42:
     (1) Revoke or suspend a license;
     (2) Levy an administrative penalty in an amount established pursuant to regulations
promulgated by the department commission;
     (3) Order the violator to cease and desist such actions;
     (4) Require a licensee or person or entity conducting any activities requiring licensure
under this chapter to take such actions as are necessary to comply with this chapter and the
regulations promulgated thereunder; or
     (5) Any combination of the above penalties.
     (b) If the director of the department chairperson of the commission finds that public health,
safety, or welfare requires emergency action, and incorporates a finding to that effect in his or her
order, summary suspension of license and/or cease and desist may be ordered pending proceedings
for revocation or other action.
     SECTION 2. Sections 5-43-1 and 5-43-2 of the General Laws in Chapter 5-43 entitled
"Instruction in Jiu-Jitsu or Karate" are hereby repealed.
     5-43-1. City and town licensing power.
     The city and town councils of the several cities and towns may license schools and other
institutions offering instruction in jiu-jitsu and karate. The fee for this license shall not exceed
twenty-five dollars ($25.00); provided, that nonprofit organizations and governmental agencies
shall be exempt from paying that fee.
     5-43-2. Penalty for violations.
     Any city or town issuing licenses under this chapter may impose a fine not in excess of
twenty dollars ($20.00) upon anyone convicted of offering instruction in jiu-jitsu or karate without
that license.
     SECTION 3. Section 16-32-2 of the General Laws in Chapter 16-32 entitled "University
of Rhode Island [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby
amended to read as follows:
     16-32-2. Board of Trustees established.
     (a) There is hereby created a board of trustees for the university of Rhode Island, sometimes
referred to as the “board” or “board of trustees,” which shall be and is constituted a public
corporation, empowered to sue and be sued in its own name; to borrow money; to compromise and
settle claims; to have a seal; and to make and execute contracts and other instruments necessary or
convenient to the exercise of its powers; and to exercise all the powers, in addition to those
specifically enumerated in this chapter, usually appertaining to public corporations entrusted with
control of postsecondary educational institutions and functions. Upon its organization, the board
shall be vested with the legal title to all property, real and personal, now owned by and/or under
the control or in the custody of the council on postsecondary education for the use of the university
of Rhode Island, including all its departments, divisions, and branches, sometimes referred to as
the property.
     (b) The board is empowered to hold and operate the property in trust for the state; to
acquire, hold, and dispose of the property and other like property as deemed necessary for the
execution of its corporate purposes. The board is made successor to all powers, rights, duties, and
privileges for the university of Rhode Island formerly belonging to the council on postsecondary
education pertaining to postsecondary education and the board of governors for higher education.
     (c) The board shall be the employer of record for the university. It shall retain all authority
formerly vested in the council on postsecondary education and the board of education regarding
the employment of faculty and staff at the university of Rhode Island. The board shall appoint the
president of the university and shall review their performance on an annual basis.
     (1) The board is empowered to enter into contracts and agreements with the council on
postsecondary education and/or the department of administration related to employee benefits,
including but not limited to retirement benefits, health, dental, vision and life insurance, disability
insurance, workers’ compensation, and tuition waivers to maximize the state’s and university’s
purchasing and investment portfolio and educational opportunities for the benefit of its employees.
     (2) The board is empowered to enter into collective bargaining agreements as appropriate
with its employees and all existing collective bargaining agreements in effect when the board is
established pursuant to § 16-32-2.2 shall be transferred from the council on postsecondary
education to the board.
     (d) The board shall make rules and regulations for the control and use of all public
properties and highways under its care, and for violations of those rules and regulations; penalties,
up to one hundred dollars ($100) and costs for any one offense, may be imposed by any district
court or police court in the city or town where the violation occurs; and, in general, the board shall
take all actions necessary for the proper execution of the powers and duties granted to, and imposed
upon, the board by the terms of this chapter.
     (e) The board shall make rules and regulations pursuant to chapter 2 of title 37 to implement
its responsibilities as a public agency for procurement purposes as defined in § 37-2-7(16).
     (1) Notwithstanding the provisions of § 37-2-22, small procurements made by the board
and the university shall not exceed an aggregate amount of fifty thousand dollars ($50,000) for
construction and ten thousand dollars ($10,000) for all other purchases, regardless of the source of
funding, and shall be made in accordance with small purchase regulations promulgated by the
board. These thresholds may be increased annually through an amendment to the small purchase
regulations promulgated by the board of trustees, to reflect the annual increase in the federal
Consumer Price Index published by the United States Department of Labor from the date of any
prior adjustment.
     (f) The board shall evaluate data on which to base performance of the university as
described in subsection (g) of this section which shall be defined by the president of the university.
These measures may include and incorporate outcomes or goals from multiple, previous years. The
lack of information from previous years, however, will not affect the use of performance-based
measures.
     (g) The university of Rhode Island shall have unique measures consistent with its purpose,
role, scope, and mission. The board shall provide faculty and students an opportunity to provide
input on the development of performance measures.
     (1) The performance-based measures shall include, but not be limited to, the following
metrics:
     (i) The number and percentage, including growth in relation to enrollment and prior years
of bachelor’s degrees awarded to first-time, full-time students within four (4) years and six (6)
years, including summer graduates;
     (ii) The number of degrees awarded that are tied to Rhode Island’s high demand, high-
wage employment opportunities consistent with the institution’s mission;
     (iii) One metric that applies only to the university, in consultation with the president, which
shall consider faculty, staff, and student input; and
     (iv) Any other metrics that are deemed appropriate by the board.
     (2) Weight may be assigned to any of the aforementioned metrics to reinforce the mission
of the university, the economic needs of the state, and the socio-economic status of the students.
     (h) The board shall hold the university accountable for developing and implementing
transfer pathways for students from the community college of Rhode Island and Rhode Island
college.
     (i) The board shall adopt a process requiring every academic program at the university to
accept for credit the advanced placement subject test scores of students who obtain a three (3) or
better in any advanced placement course.
     (j) The board shall supervise, coordinate, and/or authorize audits, civil and administrative
investigations, and inspections or oversight reviews, when necessary, relating to expenditure of
state or federal funds, or to any and all university programs and operations, as well as the
procurement of any supplies, services, or construction, by the university. In the course of an audit
or investigation, the board authorized auditor(s) shall review statutes and regulations of the
university and shall determine if the university is in compliance and shall make recommendations
concerning the efficiency of operations, and the effect of such statutes or regulations on internal
controls and the prevention and detection of fraud, waste, and abuse. The board authorized
auditor(s) may recommend policies or procedures that may strengthen internal controls, or assist in
the prevention or detection of fraud, waste, and abuse or mismanagement. Any audits conducted
shall be transmitted to the office of internal audit and program integrity established in chapter 7.1
of title 35.
     SECTION 4. Sections 21-28.11-4 and 21-28.11-10.1 of the General Laws in Chapter 21-
28.11 entitled "The Rhode Island Cannabis Act" are hereby amended to read as follows:
     21-28.11-4. Cannabis control commission.
     (a) Establishment of commission. There is hereby established an independent
commission known as the Rhode Island Cannabis Control Commission (commission). The purpose
of the commission is to oversee the regulation, licensing and control of adult use and medical
cannabis and upon transfer of powers pursuant to the provisions of § 21-28.11-10.1, to exercise
primary responsibility to oversee the regulation, licensing and control of all cannabis and marijuana
use to include medical marijuana.
     (b) Appointment of commissioners. The Rhode Island Cannabis Control Commission
shall consist of three (3) voting commissioners as follows:
     (1) The governor shall appoint, with the advice and consent of the senate, the three (3)
voting members of the commission. The speaker of the house shall, within thirty (30) days of the
effective date of this chapter, submit to the governor a list of three (3) individuals that the governor
shall give due consideration in appointing one individual from this list. The governor shall appoint
the other two (2) commissioners without regard to the list submitted by the speaker of the house.
The governor shall designate one of the members to serve as chairperson of the commission. Within
forty (40) days of the effective date of this chapter, the governor shall submit to the senate for
advice and consent the list of three (3) individuals for appointment to the commission along with
the governor’s designation of chairperson.
     (2) Prior to appointment to the commission, a background investigation shall be conducted
into the financial stability, integrity and responsibility of each appointee, including the appointee’s
reputation for good character, and honesty. No commissioner or commissioner’s spouse, or child
shall have any interest whatsoever in any entity regulated by the commission.
     (c) Commissioner requirements. Each commissioner shall be a resident of the state within
ninety (90) days of appointment, and while serving on the commission, shall not:
     (1) Hold, or be a candidate for, federal, state or local elected office;
     (2) Hold an appointed office or other employment in a federal, state or local government;
or
     (3) Serve as an official in a political party.
     (d) Term Limits. Term limits on the initial commissioners shall be as follows: The
appointee chosen after consideration of the list provided to the governor by the speaker of the house
shall serve an initial term of three (3) years and shall be eligible for reappointment in accordance
with this section. Of the appointees chosen by the governor without regard to the list submitted by
the speaker of the house, one shall serve an initial term of two (2) years, and one shall serve an
initial term of one year and both shall be eligible for reappointment in accordance with this section.
     (1) Each initial commissioner is eligible for reappointment for one six (6) year term or until
a successor is appointed. Each subsequent commissioner shall serve for a term of six (6) years or
until a successor is appointed. Every person appointed or reappointed to fill a vacancy on the
cannabis control commission shall be appointed in the manner established pursuant to this section.
     (2) If a vacancy is created prior to the expiration of any commissioner’s term, said vacancy
shall be filled in the manner established pursuant to this section. Any person appointed to fill said
vacancy shall complete the commissioner’s unexpired term and shall then be eligible for
reappointment for one additional term pursuant to this section.
     (e) Compensation. The chairperson of the commission shall devote their full time attention
to the duties of the commission. Upon confirmation, the chairperson shall become a state employee
and shall receive a salary as determined by the governor subject to appropriation by the general
assembly. The remaining commissioners shall not be state employees but shall receive a monthly
stipend as determined by the governor, subject to appropriation by the general assembly, and shall
devote sufficient time and attention to the commission to adequately perform their duties.
     (f) Records. The commission shall keep a record of the proceedings of the commission
and the chair shall be the custodian and keeper of the records of all books, documents and papers
filed by the commission and of its minute book. The chair shall cause copies to be made of all
minutes and other records and documents of the commission and shall certify that such copies are
true copies and all persons dealing with the commission may rely upon such certification. These
records shall also be subject to the provisions of title 38, “public records.” The chair shall have and
exercise supervision and control over all the affairs of the commission. The chair shall preside at
all hearings at which the chair is present and shall designate a commissioner to act as chair in the
chair’s absence. To promote efficiency in administration, the chair shall make such division or re-
division of the work of the commission among the commissioners, as the chair deems expedient.
     (g) Conduct of hearings. The commissioners shall, if so directed by the chair, participate
in the hearing and decision of any matter before the commission.
     (1) For purposes of this section, “formal matter”, as so designated by the chair, shall include
all non-procedural matters to include, but not limited to, hearings subject to the provisions of
chapter 35 of title 42 (the “administrative procedures act”) and all decisions relative to the awarding
of a license or to the denial or revocation of licenses. A majority of the commissioners is required
to hear and approve all formal matters.
     (2) For purposes of this section, “procedural matters”, as so designated by the chair, include
scheduling, inclusion of agenda items, administrative compliance decisions, ministerial matters,
routine clerical functions, and any other act delegated by the commission to be performed by an
employee of the commission or the cannabis office. Any procedural or administrative matter may
be heard, examined and investigated by a single commissioner or an employee of the commission
or the cannabis office as designated and assigned by the chair, with the concurrence of one other
commissioner. If designated by the commission or the cannabis office, the designated employee
shall make a report in writing relative to the hearing, examination and investigation of every
procedural or administrative matter. For the purposes of hearing, examining and investigating any
procedural or administrative matter, the designated employee shall have all of the powers conferred
upon a commissioner by this section. Any procedural or administrative decision made by a single
commissioner or designated employee may be appealed within ten (10) days of issuance of the
decision for a hearing before the full commission.
     (3) The commission may designate a hearing officer to conduct hearings and make
recommendations of decision to the commission in contested cases consistent with chapter 35 of
title 42.
     (h) Ethics. The provisions of chapter 14 of title 36, the state code of ethics, shall apply to
the commissioners and to employees operating under the jurisdiction of the commission to include,
but not limited to, personnel of the cannabis office; provided, however, that the commission may
promulgate an internal code of ethics for all members and employees that may be more restrictive
than the provisions of chapter 14 of title 36. A copy of any internal code of ethics adopted or as
amended shall be filed with the state ethics commission. The internal code may include provisions
reasonably necessary to carry out the purposes of this chapter.
     (i) Public body. The cannabis control commission shall be a public body for the purposes
of chapter 46 of title 42 (the “open meetings act”).
     (j) Finance. The commission shall, for the purposes of compliance with state finance law,
and subject to appropriation by the general assembly, operate as an independent state agency and
shall be subject to the laws applicable to agencies under the control of the governor; provided,
however, that the chairperson may identify any additional instructions or actions necessary for the
department of administration to manage fiscal operations in the state accounting system and meet
statewide and other governmental accounting and audit standards. The commission shall properly
classify the commission’s operating and capital expenditures, and shall not include any salaries of
employees in the commission’s capital expenditures. Unless otherwise exempted by law, the
commission shall participate in any other available state administrative services including, but not
limited to, the state payroll system, the state retirement system, and state purchases.
     (k) Prohibition on discrimination. The commission and all personnel and employees
operating under the jurisdiction of the commission to include, but not limited to, personnel of the
cannabis office, shall not unlawfully discriminate by considering race, color, religion, sex, sexual
orientation, gender identity or expression, age, national origin, or disability in granting, denying,
or revoking a license, nor shall any person, corporation, or business firm which is licensed pursuant
to the provisions of this chapter unlawfully discriminate against or segregate any person based on
these grounds. All businesses licensed by the commission shall operate on a nondiscriminatory
basis, according to equal employment treatment and access to their services to all persons, unless
otherwise exempted by the laws of the state. Any licensee who fails to comply with this policy is
subject to any disciplinary action that is consistent with the legal authority and rules and regulations
of the commission. The commission shall cooperate with the state equal opportunity office to
prevent any person, corporation, or business firm from unlawfully discriminating because of race,
color, religion, sex, sexual orientation, gender identity or expression, age, national origin, or
disability or from participating in any practice which may have a disparate effect on any protected
class within the population. The state equal opportunity office shall monitor the equal employment
opportunity activities and affirmative action plans of the commission.
     21-28.11-10.1. Transitional period and transfer of authority.
     (a) To protect public health and public safety, upon the effective date of this chapter [May
25, 2022] until final issuance of the commission’s rules and regulations promulgated pursuant to
the provisions of this chapter, there shall exist a transitional period of regulatory and enforcement
authority regarding the production, possession, regulation, distribution, sale, and use of cannabis
relating to the sale by hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.
     (b) During the transitional period, the office of cannabis regulation shall prescribe such
forms, procedures, and requirements as necessary to facilitate the acquisition of hybrid retail and
cultivation licenses by compassion centers and cultivators licensed pursuant to chapter 28.6 of this
title.
     (c) Such forms, procedures, and requirements shall be posted on the website of the office
of cannabis regulation no later than October 15, 2022, at which time an application period will
commence. Applications shall be received, reviewed, and approved on a rolling basis provided that
in no case shall an approved hybrid retailer begin adult use sales before December 1, 2022.
     (d) The forms, procedures, and requirements prescribed by the office of cannabis regulation
shall incorporate, but shall not be limited to, the following:
     (1) Requirements pertaining to the physical premises of hybrid retail licensees. Where
physically possible these shall include prospective licensee plans to physically separate marijuana
and marijuana products designated for adult use and medical sales, respectively, in inventory,
storage, and customer-facing floor and display areas; plans to physically separate sales areas for
adult use and medical sales, which may be provided by a temporary or semi-permanent physical
barrier; plans to provide and maintain a patient consultation area that will allow privacy for
confidential consultation with qualifying patients; and plans to prioritize patient and caregiver
identification verification and physical entry into retail areas in the event of capacity or other
constraints; however, if the premises of a hybrid retail licensee does not allow the licensee to meet
the requirements of this subsection or would cause undue hardship on the licensee, the office of
cannabis regulation may authorize the hybrid retail licensee to conduct adult use sales at an adjunct
location. In authorizing any such adjunct location, the office shall require, at a minimum, the
following:
     (i) The adjunct location must be physically located within the same municipality and
geographic zone;
     (ii) The adjunct location must comply with all municipal zoning requirements and obtain
municipal approval;
     (iii) The approval of any adjunct location will not cause undue hardship upon another
licensed cannabis retailer; and
     (iv) In the instance that an adjunct location is approved by the office, the hybrid cannabis
retailer shall not be permitted to engage in the sale of cannabis for adult use at more than one
premises.
     (2) Requirements pertaining to inventory, product, and sales tracking. These shall include
prospective licensee submission of plans to electronically separate finished marijuana products
designated for medical or adult use sales in hybrid licensees’ inventory and sales tracking systems.
If prospective hybrid licensees are conducting cultivation activities, they shall submit plans to
distinguish between sales of marijuana or finished marijuana products at wholesale based on
designation for medical or adult use sales.
     (3) Requirements relating to the maintenance of medical marijuana program service levels.
These shall include prospective licensee submission of comprehensive policies and procedures
detailing plans to maintain a sufficient quantity and variety of medical marijuana products, and if
substitutions of medical marijuana products with adult use marijuana products are to be made, a
justification for such substitutions. Prospective hybrid licensees shall also be required to designate
an individual who will be primarily responsible for maintenance of medical marijuana program
service levels and ongoing compliance with existing program requirements, rules, and regulations.
     (4) Requirements relating to operating plans, policies, and procedures. These shall include
prospective licensee submission, maintenance of, and adherence to a set of written standard
operating procedures that encompass both adult use and medical marijuana service lines. These
operating plans and procedures shall take the form of an updated operations manual as currently
required under medical marijuana program regulations and shall include, but not be limited to,
policies and procedures relating to the maintenance of medical marijuana program service levels
as defined in this section.
     (5) Requirements relating to the advertising of cannabis and cannabis products by hybrid
cannabis retailers who have been permitted to sell adult use cannabis and hybrid cannabis
cultivators who have been permitted to cultivate adult use cannabis pursuant to the provisions of
this chapter.
     (e) Notwithstanding the foregoing provisions of this section, all prospective and approved
applicants for hybrid cannabis retailer and cannabis cultivator licenses under this chapter shall
maintain compliance with the existing provisions of chapter 28.6 of this title and the regulations
promulgated thereunder until final issuance of the commission’s rules and regulations, including,
but not limited to, existing restrictions and requirements related to financial disclosures; registration
of owners, managers, key persons, agents, and employees; product testing; packaging and labeling;
transportation; and home delivery.
     (f) Forms, procedures, and requirements relating to this transitional period may be amended
by the office of cannabis regulation or the commission up until the final issuance of the
commission’s regulations pursuant to the provisions of this chapter at which time the forms,
procedures, and requirements will be superseded by the commission’s final rules and regulations.
     (g) Upon final issuance of the commission’s rules and regulations, the following shall
occur:
     (1) All powers, duties, and responsibilities of the department of business regulation and the
office of cannabis regulation with respect to the regulation, administration, and enforcement of the
provisions of chapter 28.6 of this title and chapter 26 of title 2 shall be transferred to the commission
or as designated by the commission to the cannabis office.
     (2) All powers, duties, and responsibilities of the department of environmental
management with respect to regulation, administration, and enforcement of chapter 28.6 of this title
shall be transferred to the commission or as designated by the commission to the cannabis office.
     (3) All powers, duties, and responsibilities of the department of health with respect to
regulation, administration, and enforcement of chapter 28.6 of this title shall be transferred to the
commission or as designated by the commission to the cannabis office, except for the following:
     (i) Administration of registry identification cards to qualified patients; and
     (ii) Powers delegated to the department pursuant to this chapter or by rules and regulations
of the commission.
     (4) There shall be established a “cannabis office” with the powers, duties, and
responsibilities authorized pursuant to § 21-28.11-18.1.
     (5) All powers exercised by state agencies, departments, and offices pursuant to the
provisions of subsections (a) and (b) of this section relating to transitional period authority shall
cease.
     (h) Upon final issuance of the commission’s rules and regulations, whenever the term
“office of cannabis regulation” appears in any general law or regulation, the term shall mean the
“cannabis office” as defined in this chapter.
     SECTION 5. Section 28-30-18 of the General Laws in Chapter 28-30 entitled "Workers’
Compensation Court" is hereby amended to read as follows:
     28-30-18. Additional benefits payable to retired judges and their surviving spouses or
domestic partners.
     (a) All judges of the workers’ compensation court, or their surviving spouses or domestic
partners, who retire after January 1, 1970, and who receive a retirement allowance pursuant to the
provisions of this title, shall, on the first day of January next following the third anniversary date
of their retirement, receive a cost-of-living retirement adjustment in addition to his or hertheir
retirement allowance in an amount equal to three percent (3%) of the original retirement allowance.
In each succeeding subsequent year during the month of January the retirement allowance shall be
increased an additional three percent (3%) of the original allowance, compounded annually from
the year the cost-of-living adjustment was first payable to be continued during the lifetime of that
judge or his or hertheir surviving spouse or domestic partner. For the purpose of that computation,
credit shall be given for a full calendar year regardless of the effective date of the retirement
allowance.
     (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of
this section to have retired on January 1, 1980.
     (c) For judges not eligible to retire as of September 30, 2009, and not eligible upon passage
of this article, and for their beneficiaries, the cost-of-living adjustment described in subsection (a)
above shall only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,
indexed annually, and shall commence upon the third (3rd) anniversary of the date of retirement or
when the retiree reaches age sixty-five (65), whichever is later. The thirty-five thousand dollar
($35,000) limit shall increase annually by the percentage increase in the Consumer Price Index for
all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics
determined as of September 30 of the prior calendar year or three percent (3%), whichever is less.
The first thirty-five thousand dollars ($35,000), as indexed, of retirement allowance shall be
multiplied by the percentage of increase in the Consumer Price Index for all Urban Consumers
(CPI-U) as published by the United States Department of Labor Statistics determined as of
September 30 of the prior calendar year or three percent (3%), whichever is less on the month
following the anniversary date of each succeeding year. For judges eligible to retire as of September
30, 2009, or eligible upon passage of this article, and for their beneficiaries, the provisions of this
subsection (c) shall not apply.
     (d) This subsection (d) shall be effective for the period July 1, 2012, through June 30, 2015.
     (1) Notwithstanding the prior paragraphs of this section, and subject to subsection (d)(2)
below, for all present and former justices, active and retired justices, and beneficiaries receiving
any retirement, disability or death allowance or benefit of any kind, whether provided for or on
behalf of justices engaged on or prior to December 31, 1989, as a noncontributory justice or
engaged after December 31, 1989, as a contributory justice, the annual benefit adjustment provided
in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal
to the percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”)
from the five-year average investment return of the retirement system determined as of the last day
of the plan year preceding the calendar year in which the adjustment is granted, said percentage not
to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser
of the justice’s retirement allowance or the first twenty-five thousand dollars ($25,000) of
retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually
in the same percentage as determined under (d)(1)(A) above. The “five-year average investment
return” shall mean the average of the investment return of the most recent five (5) plan years as
determined by the retirement board. Subject to subsection (d)(2) below, the benefit adjustment
provided by this paragraph shall commence upon the third (3rd) anniversary of the date of
retirement or the date on which the retiree reaches his or hertheir Social Security retirement age,
whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return
for the system, either upward or downward, the subtrahend shall be adjusted either upward or
downward in the same amount.
     (2) Except as provided in subsection (d)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirely unless the funded ratio of the employees’
retirement system of Rhode Island, the judicial retirement benefits trust, and the state police
retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty
percent (80%) in which event the benefit adjustment will be reinstated for all justices for such plan
year.
     In determining whether a funding level under this subsection (d)(2) has been achieved, the
actuary shall calculate the funding percentage after taking into account the reinstatement of any
current or future benefit adjustment provided under this section.
     (3) Notwithstanding subsection (d)(2), in each fifth plan year commencing after June 30,
2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five
(5) plan years, a benefit adjustment shall be calculated and made in accordance with subsection
(d)(1) above until the funded ratio of the employees’ retirement system of Rhode Island, the judicial
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s
actuary on an aggregate basis, exceeds eighty percent (80%).
     (4) Notwithstanding any other provision of this chapter, the provisions of this subsection
(d) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or
prior to June 30, 2012.
     (e) This subsection (e) shall become effective July 1, 2015.
     (1)(i) As soon as administratively reasonable following the enactment into law of this
subsection (e)(1)(i), a one-time benefit adjustment shall be provided to justices and/or beneficiaries
of justices who retired on or before June 30, 2012, in the amount of two percent (2%) of the lesser
of either the justice’s retirement allowance or the first twenty-five thousand dollars ($25,000) of
the justice’s retirement allowance. This one-time benefit adjustment shall be provided without
regard to the retiree’s age or number of years since retirement.
     (ii) Notwithstanding the prior subsections of this section, for all present and former justices,
active and retired justices, and beneficiaries receiving any retirement, disability or death allowance
or benefit of any kind, whether provided for or on behalf of justices engaged on or prior to
December 31, 1989, as a noncontributory justice or engaged after December 31, 1989, as a
contributory justice, the annual benefit adjustment provided in any calendar year under this section
for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall be equal
to (A) multiplied by (B):
     (A) Shall equal the sum of fifty percent (50%) of (I) plus fifty percent (50%) of (II) where:
     (I) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)
(the “subtrahend”) from the five-year average investment return of the retirement system
determined as of the last day of the plan year preceding the calendar year in which the adjustment
is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent
(0%). The “five-year average investment return” shall mean the average of the investment returns
of the most recent five (5) plan years as determined by the retirement board. In the event the
retirement board adjusts the actuarially assumed rate of return for the system, either upward or
downward, the subtrahend shall be adjusted either upward or downward in the same amount.
     (II) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer
Price Index for all Urban Consumers (CPI-U) as published by the United States Department of
Labor Statistics determined as of September 30 of the prior calendar year. In no event shall the sum
of (I) plus (II) exceed three and one-half percent (3.5%) or be less than zero percent (0%).
     (B) Is equal to the lesser of either the justice’s retirement allowance or the first twenty-five
thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be
indexed annually in the same percentage as determined under subsection (e)(1)(ii)(A) above.
     The benefit adjustments provided by this subsection (e)(1)(ii) shall be provided to all
retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,
and for all other retirees the benefit adjustments shall commence upon the third anniversary of the
date of retirement or the date on which the retiree reaches his or her Social Security retirement age,
whichever is later.
     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection
(e)(1)(ii) for any plan year shall be suspended in their entirety unless the funded ratio of the
employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state
police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds
eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for
such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of
Rhode Island, the judicial retirement benefits trust, and the state police retirement benefits trust,
calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the
benefit adjustment to be reinstated for all members for such plan year shall be replaced with
seventy-five percent (75%).
     In determining whether a funding level under this subsection (e)(2) has been achieved, the
actuary shall calculate the funding percentage after taking into account the reinstatement of any
current or future benefit adjustment provided under this section.
     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June 30,
2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four
plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection
(e)(1)(ii) above; and (ii) Effective for members and/or beneficiaries of members who retired on or
before June 30, 2015, the dollar amount in subsection (e)(1)(ii)(B) of twenty-five thousand eight
hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six
dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the
judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the
system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the
funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits
trust, and the state police retirement benefits trust, calculated by the system’s actuary on an
aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent
(75%).
     (4) Effective for members and/or beneficiaries of members who have retired on or before
July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)
days following the enactment of the legislation implementing this provision, and a second one-time
stipend of five hundred dollars ($500) in the same month of the following year. These stipends
shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable
payment date and shall not be considered cost of living adjustments under the prior provisions of
this section.
     SECTION 6. Section 28-42-51 of the General Laws in Chapter 28-42 entitled
"Employment Security — General Provisions" is hereby amended to read as follows:
     28-42-51. Additional functions and duties of director of administration.
     In addition to and/or in lieu of the sections enumerated in § 28-42-50, the director of
administration shall perform, at the department of labor and training, in the manner and to the extent
that the director may prescribe, the following functions and duties:
     (1) Establish and maintain a current system of internal financial controls and checks
necessary to insure the proper handling of accounts in connection with the employment security
fund and the employment security administration account created by this chapter, by conducting a
continuous pre-audit or a continuous post-audit or by conducting a combination of both (pre-audit
or post-audit). The cost of these post-audit activities by the office of internal audit and program
integrity in the department of administration shall be reimbursed in full by the department;
     (2) Establish and maintain any methods, procedures, and systems of accounting that may
be deemed necessary; those records and accounts to be considered, for all purposes, the official
records of the state and department;
     (3) Prepare and furnish financial and any other reports that may be required; and
     (4) Perform any other related functions and duties that may be required by chapters 42 —
44 of this title.
     SECTION 7. Section 35-1.1-4 of the General Laws in Chapter 35-1.1 entitled "Office of
Management and Budget" is hereby amended to read as follows:
     35-1.1-4. Offices and functions assigned to the office of management and budget —
Powers and duties.
     (a) The offices assigned to the office of management and budget include the budget office,
the office of regulatory reform, the performance management office, and the office of internal audit
and program integrity.
     (b) The offices assigned to the office of management and budget 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 director acting on behalf of the
governor or in accordance with the powers and authorities conferred upon the director by this
chapter;
     (2) Provide such assistance or resources as may be requested or required by the governor
and/or the director;
     (3) Provide such records and information as may be requested or required by the governor
and/or the director, 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; and
     (c) Except as provided herein, no provision of this chapter or application thereof shall be
construed to limit or otherwise restrict the budget officer from fulfilling any statutory requirement
or complying with any valid rule or regulation.
     (d) The office of management and budget shall monitor the status of federal grants and
identify any impacts of federal funding rescission. In the event of federal funding termination,
agencies must provide the reported reason for termination, the types of activities funded by the
awards, and the number of full-time equivalent positions assigned to the awards to the office.
     (1) The office of management and budget, may coordinate with the governor's office, the
department of administration's division of purchases, the division of human resources, and the
office of accounts and control, to develop options for administrative action or general assembly
consideration that may be needed to address any federal funding changes.
     (2) As soon as practicable after enactment of the federal budget for fiscal year 2026, but
no later than October 31, 2025, the office shall forward a report to the governor, speaker of the
house, and president of the senate containing the findings, recommendations, and options to
become compliant with federal changes prior to the governor's budget submission pursuant to § 35-
3-7.
     SECTION 8. Section 35-3-24.1 of the General Laws in Chapter 35-3 entitled "State
Budget" is hereby amended to read as follows:
     35-3-24.1. Program performance measurement.
     (a) Beginning with the fiscal year ending June 30, 1997, the governor shall submit, as part
of each budget submitted to the general assembly pursuant to § 35-3-7, performance objectives for
each program in the budget for the ensuing fiscal year, estimated performance data for the fiscal
year in which the budget is submitted, and actual performance data for the preceding two (2)
completed fiscal years. Performance data shall include efforts at achieving equal opportunity hiring
goals as defined in the department’s annual affirmative action plan. The governor shall, in addition,
recommend appropriate standards against which to measure program performance. Performance in
prior years may be used as a standard where appropriate. These performance standards shall be
stated in terms of results obtained.
     (b) The governor may submit, in lieu of any part of the information required to be submitted
pursuant to subsection (a), an explanation of why the information cannot as a practical matter be
submitted.
     (c)(1) The office of management and budget shall be responsible for managing and
collecting program performance measures on behalf of the governor. The office is authorized to
conduct performance reviews and audits of agencies to determine the manner and extent to which
executive branch agencies achieve intended objectives and outcomes.
     (2) In order to collect performance measures from agencies, review performance, and
provide recommendations, the office of budget and management is authorized to coordinate with
the office of internal audit and program integrity regarding the findings and recommendations that
result from audits conducted by the office.
     (3) In order to facilitate the office of management and budget’s performance reviews,
agencies must generate and provide timely access to records, reports, analyses, audits, reviews,
documents, papers, recommendations, contractual deliverables, or other materials available relating
to agency programs and operations.
     (4) In order to ensure alignment of executive branch agency operations with the state’s
priorities, the office of management and budget may produce, with all necessary cooperation from
executive branch agencies, analyses and recommendations to improve program performance,
conduct evidence-based budgeting, and respond to sudden shifts in policy environments.
     (5) In order to gain insight into performance or outcomes and inform policymaking and
program evaluation, the office of management and budget may lead, manage, and/or coordinate
interagency and cross-system collaboration or integration initiatives.
     SECTION 9. Section 35-7-15 of the General Laws in Chapter 35-7 entitled "Post Audit of
Accounts" is hereby amended to read as follows:
     35-7-15. Audit of information security systems.
     (a) The general assembly recognizes that the security of government computer systems is
essential to ensuring the stability and integrity of vital information gathered and stored by the
government for the benefit of the citizenry and the breach of security over computer systems
presents a risk to the health, safety, and welfare of the public. It is the intent of the legislature to
ensure that government computer systems and information residing on these systems are protected
from unauthorized access, compromise, sabotage, hacking, viruses, destruction, illegal use, cyber
attack, or any other act that might jeopardize or harm the computer systems and the information
stored on them.
     (b) In conjunction with the powers and duties outlined in this chapter, the office of internal
audit and program integrity may conduct reviews and assessments of the various government
computer systems and the security systems established to safeguard these computer systems.
Computer systems subject to this section shall include systems that pertain to federal, state, or local
programs, and quasi-governmental bodies, and the computer systems of any entity or program that
is subject to audit by the office of internal audit and program integrity. The office of internal audit’s
audit and program integrity's review may include an assessment of system vulnerability, network
penetration, potential security breaches, and susceptibility to cyber attack and cyber fraud.
     (c) The office of internal audit’s audit and program integrity's findings shall be deemed
public records and available for public inspection; provided, however, in the event the review
indicates a computer system is vulnerable, or security over the system is otherwise deficient,
reasonably segregable portions of the findings shall be subject to public inspection after the
redaction of any information, the disclosure of which, would endanger the security of the system
or reveal the specific nature of the vulnerabilities found. Notwithstanding any other provision of
law to the contrary, the work papers developed in connection with the review of computer systems
and the security over those systems authorized by this section shall not be deemed public records
and are not subject to disclosure.
     (d) In order to maintain the integrity of the computer system, the office of internal audit
and program integrity may procure the services of specialists in information security systems or
other contractors deemed necessary in conducting reviews under this section, and in procuring
those services shall be exempt from the requirements of the state purchasing law or regulation.
     (e) Any outside contractor or vendor hired to provide services in the review of the security
of a computer system shall be bound by the confidentiality provisions of this section.
     SECTION 10. The title of Chapter 35-7.1 of the General Laws entitled "The Office of
Internal Audit" is hereby amended to read as follows:
CHAPTER 35-7.1
The Office of Internal Audit
CHAPTER 35-7.1
THE OFFICE OF INTERNAL AUDIT AND PROGRAM INTEGRITY
     SECTION 11. Sections 35-7.1-1, 35-7.1-2, 35-7.1-3, 35-7.1-4, 35-7.1-6, 35-7.1-8 and 35-
7.1-10 of the General Laws in Chapter 35-7.1 entitled "The Office of Internal Audit" are hereby
amended to read as follows:
     35-7.1-1. Establishment of office of internal audit.
     (a) There is hereby established within the office of management and budget an office of
internal audit and program integrity. Within the office of internal audit and program integrity, there
shall be a chief, appointed by the director of administration, who shall be the administrative head
of the office. The person so selected to be the chief shall be selected without regard to political
affiliation and with a demonstrated ability in the following areas: accounting, auditing, financial
analysis, investigation, management analysis, and public administration. The office of internal
audit and program integrity will report to the office of management and budget director. Any
reference in general law to the “bureau of audits” or "office of internal audit" shall mean the office
of internal audit and program integrity.
     (b) The purpose of the office is to prevent and detect fraud, waste, abuse, and
mismanagement in the expenditure of public funds including:
     (1) All state programs and operations;
     (2) The procurement of any supplies, services, or construction by state agencies, bureaus,
divisions, sections, departments, offices, commissions, institutions, and activities of the state; and
     (3) The procurement or expenditure of public funds by organizations or individuals.
     (b)(c) The chief of the office of internal audit and program integrity shall not hold, or be a
candidate for, any elective or any other appointed public office while a chief. No current chief shall
hold a position in any political party or political committee, or, aside from voting, actively engage
in the political campaign of any candidate for public office that may cause a real or perceived
conflict of interest, or participate as a board member of any entity that receives state or federal
funding.
     (c)(d) No employee of the office of internal audit and program integrity shall hold, or be a
candidate for, any elective public office while an employee, nor shall he/shethey hold a position in
any political party or political committee or, aside from voting, actively engage in a political
campaign of any candidate for public office that may cause a real or perceived conflict of interest,
or participate as a board member of any not for profit entity that receives state or federal funding.
     (d)(e) Purposes and scope. The office of internal audit and program integrity is authorized
to conduct audits of any state department, state agency, or private entity that is a recipient of state
funding or state grants. In addition, the office of internal audit and program integrity is authorized,
but not limited to, evaluating the efficiency of operations and internal controls, preventing and
detecting fraud, waste, abuse, or mismanagement in the expenditure of public funds, whether
federal, state, or local, that are related to any and all state programs and operations as well as the
procurement of any goods, services, or construction, by public bodies. As deemed necessary or
expedient by the office of internal audit and program integrity, audits may be made relative to the
financial affairs or the economy and efficiency of management of each department, agency or
public body. The office of internal audit and program integrity shall determine which such audits
shall be performed in accordance with a risk-based evaluation.
     (e)(f) “Public body” or “public bodies” under this chapter shall mean state agencies,
bureaus, divisions, departments, offices, commissions, boards, institutions, including the public
institutions of higher education, districts, authorities, quasi-agencies, or political subdivisions
created by the general assembly, or the governor. “Public body” shall also include any city and
town within the state of Rhode Island but municipal audits under this chapter shall only cover the
expenditure of state or federal funds distributed by the state. Audits and investigations of public
bodies may include the expenditures by nongovernmental agencies of federal, state, and local
public funds.
     35-7.1-2. Duties.
     (a) The chief of internal audit and program integrity shall supervise, coordinate, and/or
conduct audits, civil and administrative investigations, and inspections or oversight reviews, when
necessary, relating to expenditure of state or federal funds, or to any and all state programs and
operations, as well as the procurement of any supplies, services, or construction, by public bodies.
In the course of an audit or investigation, the office of internal audit and program integrity shall
review statutes and regulations of the public body and shall determine if such a public body is in
compliance and shall make recommendations concerning the efficiency of operations, and the
effect of such statutes or regulations on internal controls and the prevention and detection of fraud,
waste, and abuse. The chief of internal audit and program integrity may recommend policies or
procedures that may strengthen internal controls, or assist in the prevention or detection of fraud,
waste, and abuse or mismanagement.
     (b) The person, or persons, with legal authority for any public body may request the
assistance of the office of internal audit and program integrity. Any such request must include the
scope of services requested and the work to be performed. In such events, the chief, with the
approval of the director of management and budget, may assign personnel to conduct, supervise,
or coordinate such activity as deemed necessary and appropriate to perform his/hertheir duties in
a diligent and prudent manner. The expenses for any such assistance requested by the public body
shall be reimbursed by the public body to the office of internal audit and program integrity. The
chief may recommend policies for the conduct, supervision, or coordination of the relationship,
between state and other state, local governmental agencies as well as federal governmental agencies
and nongovernmental entities with respect to all matters relating to the prevention and detection of
fraud, waste, abuse, or mismanagement in or relating to any and all programs and activities of the
state of Rhode Island.
     (c) When it is determined by the office of internal audit that an audit and program integrity
is necessary because there is sufficient evidence to believe that there may have been fiscal
impropriety, wrongdoing, or fiscal mismanagement by any agent, employee, board member, or
commissioner of any public body, the office of internal audit and program integrity may conduct a
forensic examination of such entity. All costs associated with the forensic examination shall be
paid, as deemed appropriate, either by the examined entity or by an appropriation by the general
assembly. Such costs shall include, but not be limited to, the following expenses:
     (1) One hundred percent (100%) of the total salaries and benefits paid to the examining
personnel of the office of internal audit and program integrity engaged in those examinations;
     (2) All costs associated with the procurement of a forensic consultant;
     (3) All costs associated with a consultant that provides expertise pertinent to the examinee’s
operations;
     (4) All reasonable administrative and technology costs related to the forensic examination
process. Technology costs shall include the actual cost of software and hardware utilized in the
examination process and the cost of training examination personnel in the proper use of the software
and hardware.
     (d) The chief of internal audit and program integrity, or their designee, may investigate
reports of any person who, either prior to, or at the time of, or subsequent to the application for
public assistance:
     (1) Willfully makes a false statement or misrepresentation;
     (2) Impersonates someone else;
     (3) Willfully fails to disclose a material fact regarding eligibility or other fraudulent means;
or
     (4) Secures, aids, or abets, or attempts to secure, aid, or abet, others in securing public
assistance (including Supplemental Nutrition Assistance Program (SNAP) or Medicaid) through
fraudulent actions.
     (e) The chief of internal audit and program integrity, or their designee, is authorized to:
     (1) Coordinate, conduct, and/or support investigations aimed at preventing and detecting,
fraud, waste, abuse, and mismanagement in public assistance programs;
     (2) Coordinate and support state and local efforts to investigate and eliminate fraud in
public assistance programs;
     (3) Work to recover both state and federal funds related to fraudulent activities.
     (f) In the course of these investigations, the office of internal audit and program integrity
shall collaborate with local law enforcement agencies, the Rhode Island department of human
services, the Rhode Island state police, the Rhode Island attorney general, or other local, state, and
federal entities as needed to complete the investigations.
     (g) The office shall identify methods to implement innovative technology and data sharing
in order to detect, analyze, and prevent fraud, waste, and abuse.
     35-7.1-3. Investigations or management advisory and consulting services upon
request of governor or general assembly.
     The office of internal audit and program integrity may, upon the written request of the
governor or of the general assembly, conduct audits, provide management advisory and consulting
services, or conduct investigations relative to the financial affairs or the economy and efficiency of
management, or both, of any public bodies as defined in § 35-7.1-1(e). The office of internal audit
and program integrity may, from time to time, make such investigations and additional reports to
the governor, the director of the department of administration, the director of the office of
management and budget, and the general assembly as deemed necessary or advisable.
     35-7.1-4. Management advisory and consulting services provided to public bodies.
     When requested in writing by a public body to the chief, the office of internal audit and
program integrity may provide management advisory or consulting services to the public body.
Any such request must include the scope of services requested and a schedule for the work to be
performed.
     35-7.1-6. Inspection of records and papers — Investigations Inspection of records,
papers, and witness testimony -- Investigations and subpoenas.
     (a) The chief, in carrying out the duties outlined in this chapter, shall have access to all
records, reports, audits, reviews, papers, books, documents, recommendations, correspondence,
including information relative to the purchase of goods or services or anticipated purchase of goods
or services, from any agent, contractor, or vendor by any public body, as defined in § 35-7.1-1(e),
and any other data and material that is maintained by or available to any public body regardless of
the media in which it is maintained which is in any way related to the programs and operations with
respect to public bodies.
     (b) The chief may request information and records, cooperation, and assistance from any
state,or local governmental agency as may be necessary for carrying out his/herthe chief’s duties
and responsibilities. Upon receipt of such request, each person in charge of the public body shall
furnish to the chief, or his/herthe chief’s authorized agent or representative, such information and
records, cooperation and assistance, including information relative to the purchase of goods or
services or anticipated purchase of goods or services from any contractor or vendor by any public
body, within ten (10) business days of receipt of the chief’s request. If the public body is unable to
comply with the request for records and/or information within (10) business days, the public body
must notify the chief, prior to the expiration of the ten (10) business days, in writing as to the reason,
or reasons, why the request cannot be fulfilled within this time and whether additional time is
necessary.
     (c) The chief may initiate and conduct audits, investigations, and compliance reviews and
shall prepare detailed findings, conclusions, and recommendations concerning the administration
of programs or operations, and internal controls over processes of public bodies.
     (d) The chief shall have direct and prompt access to any public body, its agents, officers,
and employees when necessary for any purpose pertaining to the performance of his/herthe chief’s
duties and responsibilities under this chapter.
     (e) In furtherance of carrying out any of the duties of this chapter, the chief may request,
with the written approval of the director of the department of administration and through an
administrative subpoena, the attendance and testimony of witnesses and the production of books,
records, and other evidence relevant to an active fraud investigation as described in this chapter.
The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty
(20) days after the service of the subpoena or at any time before the return date specified in the
subpoena, whichever period is shorter, the person served may file in a state superior court and serve
upon the unit and the attorney general a civil petition for an order of the court modifying or setting
aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking
relief. If a person neglects or refuses to comply with any request to provide testimony or produce
books, records, and other evidence relevant to an investigation, the office of internal audit and
program integrity or the attorney general may petition the superior court for an order compelling
the person to answer the request. Books, records, and other evidence obtained through an
administrative subpoena that are not used in a court proceeding shall be destroyed as soon as
practicable.
     35-7.1-8. Reports to the state police.
     In carrying out his/herthe chief’s duties and responsibilities, the chief shall report to the
Rhode Island state police whenever the chief has reasonable grounds to believe there has been a
violation of federal or state criminal law. The chief shall also refer findings to the state ethics
commission, or to any other federal, state, or local agency with an interest in said findings, in the
discretion of the chief. Any referrals made under this section shall not be made public by the office
of internal audit and program integrity.
     35-7.1-10. Annual and interim reports Audit and Annual reports.
     (a) The office of internal audit and program integrity shall prepare an annual report
summarizing the activities of the office of internal audit and program integrity for the prior fiscal
year. The office of internal audit and program integrity may also prepare interim performance
reports. These reports shall be presented to the director of management and budget. The annual
reports shall be posted on the office’s website.
     (b) The annual report shall include, but not be limited to: a general description of significant
problems in the areas of efficiencies, internal controls, fraud, waste, and abuse within programs
and operations within the jurisdiction of the office; a general description of the recommendations
for corrective actions made by the office during the reporting period with respect to significant
deficiencies in the areas of efficiencies, internal controls, fraud, waste, and abuse; the identification
of each significant recommendation described in previous annual reports on which corrective action
has not been completed; a summary of matters referred to prosecuting authorities; a summary of
any matters concerning the recovery of monies as a result of an audit finding or civil suit or a
referral to another agency for the purposes of such suit; a list of all audit reports completed by the
office during the reporting period; and a statement of recommendations of amendment to this
chapter or the rules, regulations, or procedures governing the office of internal audit and program
integrity that would improve the effectiveness or the operations of the office.
     (c) The annual report of the office of internal audit and program integrity shall be made
public on the day of filing.
     (d) At the conclusion of each formal audit, the office of internal audit and program integrity
shall produce an audit report which contains, but is not limited to, the scope of the audit, findings,
and recommendations. Within twenty (20) calendar days following the date of the issuance of the
management-response copy of the draft audit report, the head of the department, agency, public
body, or private entity audited shall respond, in writing, to each recommendation made in the audit
report. This response shall address the department’s, agency’s, or public body’s or private entity’s
plan of corrective action, the party responsible to implement the corrective action plan, and the
anticipated date to complete the implementation of the corrective action; and, if applicable, the
reasons for disagreement with any recommendation proposed in the audit report and justification
of management’s acceptance of risk. The office of internal audit and program integrity may perform
follow-up procedures for the purpose of determining whether the department, agency, public body,
or private entity has implemented, in an efficient and effective manner, its plan of correction action
for the recommendations proposed in the audit report or addressed the risk discussed in the audit
report.
     (e) Copies of each audit report, inclusive of management’s responses noted in subsection
(d) shall be submitted to the chairpersons of the house finance committee, and the senate finance
committee and posted on the office’s website.
     SECTION 12. Chapter 35-7.1 of the General Laws entitled "The Office of Internal Audit"
is hereby amended by adding thereto the following section:
     35-7.1-11. Civil actions.
     The chief of the office of internal audit and program integrity shall have the authority to
initiate civil recovery actions. In any case where the office of internal audit and program integrity
has discovered fraudulent acts and believes that civil recovery proceedings may be appropriate, the
chief may authorize the initiation of appropriate civil proceedings or refer the case to the
appropriate state agency for civil recovery.
     SECTION 13. Section 35-18-4 of the General Laws in Chapter 35-18 entitled "Public
Corporation Debt Management" is hereby amended to read as follows:
     35-18-4. Procedure.
     (a) A financing lease, guarantee, bond, or other obligation shall be deemed to have been
approved by the general assembly when the general assembly passes a concurrent joint resolution
of approval regarding the financing lease, guarantee, bond, or other obligation which the governor
or a public corporation, as the case may be, requests that the financing lease, guarantee, bond, or
other obligation be approved by the general assembly. These requests shall be transmitted to the
speaker of the house and the president of the senate with copies to the chairpersons of the respective
finance committees and fiscal advisors. The request for approval shall include:
     (1) A full description of the essential public facility to which the financing lease, guarantee,
bond, or other obligation is related;
     (2) An explanation as to why the facility is needed and how it will be paid off; and
     (3) The maximum possible obligation of the state or of any public corporation under the
financing lease, guarantee, bond, or other obligation.
     (b) The governor shall provide the general assembly with a timely explanation of any
certification made by him or herthe governor pursuant to this chapter in connection with any
financing lease, guarantee, bond, or other obligation. These explanations shall be transmitted to the
speaker of the house and the president of the senate with copies to the chairpersons of the respective
finance committees and fiscal advisors. The explanation shall also include:
     (1) A full description of the essential public facility to which the financing lease, guarantee,
bond, or other obligation is related;
     (2) An explanation as to why the facility is needed and how it will be paid off; and
     (3) The maximum possible obligation of the state or of any public corporation under the
financing lease, guarantee, bond, or other obligation.
     (c) The state shall not enter into any financing lease or guarantee relating to, nor shall any
public corporation issue any bond or other obligation in connection with, any essential public
facility unless the facility conforms to the description included in the request for approval or in the
explanation for certification submitted by the governor in connection with the financing lease,
guarantee, bond, or other obligation; nor shall the state’s obligation in connection with the financing
lease, guarantee, bond, or other obligation exceed the amount set forth in the request for approval
or explanation of certification.
     (d) Immediately following the first sale of each issue of bonds in connection with the
financing of an economic development project, the governor shall provide the general assembly
with copies of any offering statement for those bonds and his or herthe governor’s analysis of the
benefits and risks to the state of the project. These statements and analyses shall be transmitted to
the speaker of the house and the president of the senate, with copies to the chairpersons of the
respective finance committees and fiscal advisors.
     SECTION 14. Chapter 36-4 of the General Laws entitled "Merit System" is hereby
amended by adding thereto the following section:
     36-4-15.1. Specialized information technology positions in state service.
     (a) For purposes of this section, "specialized information technology position" means a
technical or specialized job classification in state service under the supervision of the division of
enterprise technology strategy and services (“ETSS”),within the department of administration.
Such positions may include information technology leadership roles (i.e., chief information officer,
chief technology officer, chief information security officer, etc.) and any other information
technology positions which are supervisory, confidential, or managerial as defined by chapter 7 of
title 28 and the rules and regulations of the Rhode Island state labor relations board. There shall be
no more than fifteen (15) specialized information technology positions employed by the state in
any fiscal year.
     (b) Notwithstanding the provisions of any general or special law or regulation to the
contrary, including the personnel rules adopted pursuant to § 36-4-8, the personnel administrator,
in their sole discretion, may modify, change, or amend any official pay plan for employees in the
classified or unclassified service in order to create new job classifications, and/or modify the title,
content, or pay grade of an existing job classification, for any new or existing specialized
information technology positions as defined above. All information technology job specifications
and corresponding pay grades,shall be reviewed annually to maintain accuracy and fluency with
emerging technologies, operating systems, and/or applications.
     (c) The personnel administrator is hereby authorized to take whatever administrative action
is necessary to implement the changes to the official pay plans for specialized information
technology positions, as defined in this section, without conducting a public hearing or obtaining
the approval of the Governorgovernor prior to the implementation of any such action.
     (d) Within thirty (30) days after any personnel action under this section, the personnel
administrator shall file a written report with the governor, the speaker of the house, the senate
president, and the chairpersons of the house and senate finance committees. This report shall
include:
     (1) The title and paygrade of the position(s);
     (2) The job description of the position(s); and
     (3) The reason why the position(s) is/are necessary. The personnel administrator shall also
post the report on the division of human resources’ website for at least one year.
     (e) The provisions of this section shall not apply to any specialized information technology
position utilized by ETSS that is part of a collective bargaining unit established and certified by the
Rhode Island state labor relations board or which are eligible to be accreted into an existing
collective bargaining unit pursuant to chapter 7 of title 28 and the rules or regulations of the Rhode
Island state labor relations board.
     (f) Except as authorized by chapter 7 of title 28 and the rules or regulations of the Rhode
Island state labor relations board, nothing shall permit the conversion of any/all information
technology positions in the classified, unclassified, or non-classified, covered by a collective
bargaining unit to any/all specialized information technology position utilized by ETSS.
     (g) The authorization granted 36-4-15.1 to the personnel administrator to convert any/all
information technology positions to specialized information technology positions shall sunset on
December 31, 2026.
     SECTION 15. Section 37-2-12 of the General Laws in Chapter 37-2 entitled "State
Purchases" is hereby amended to read as follows:
     37-2-12. Centralization of the procurement authority.
     (a) All rights, powers, duties, and authority relating to the procurement of supplies,
services, and construction, and the management, control, warehousing, sale, and disposal of
supplies, services, and construction now vested in or exercised by any state agency under the
several statutes relating thereto are hereby transferred to the chief purchasing officer as provided
in this chapter, subject to the provisions of § 37-2-54. A public agency does not have to utilize the
centralized purchasing of the state but the public agency, through its existing internal purchasing
function, shall adhere to the general principles, policies and practices set forth in this chapter.
     (b) The chief purchasing officer, as defined in § 37-2-7(3)(i), may establish, charge, and
collect from state contractors, listed on master-price agreements, an statewide contract
administrative fee not to exceed one-third of one percent (0.331%) of the total value of the annual
spend against a contract awarded to a state contractor. All statewide contract administrative fees
collected pursuant to this subsection shall be deposited into a restricted-receipt account within the
general fund designated as the “division of purchases administrative-fee account” and shall be used
for the purposes of implementing, maintaining, or operating technology for the submission and
processing of bids, online vendor registration, bid notification, and other costs related to state
procurement including staffing. On or before January 15, 2019, and annually thereafter on or before
January 15, the chief purchasing officer or designee shall file a report with the governor, the speaker
of the house, and the president of the senate detailing:
     (i1) The total amount of funds collected and deposited into the division of purchases
administrative-fee account for the most recently completed fiscal year;
     (ii2) The account balance as of the date of the report;
     (iii3) An itemization of all expenditures and other uses of said funds from said account for
the most recently completed fiscal year; and
     (iv4) An annual evaluation as to the appropriateness of the amount of the contract
administrative fee on master-price agreements.
     (c) Subject to the approval of the director of the department of administration, the state
controller is authorized to offset any currently recorded outstanding liability on the part of
developmental disability organizations (DDOs) to repay previously authorized startup capital
advances against the proceeds from the sale of group homes within a fiscal year prior to any sale
proceeds being deposited into the information technology restricted receipt account established
pursuant to § 42-11-2.5(a).
     SECTION 16. Section 42-7-8 of the General Laws in Chapter 42-7 entitled "Executive
Department" is hereby repealed.
     42-7-8. American Recovery and Reinvestment Act administration expenses.
     (a) There is hereby created restricted receipt accounts, within the office of the governor,
for the office of economic recovery and reinvestment, and within the department of administration
for the office of internal audit and the division of purchasing, to be known as ARRA administrative
expense accounts. Payments from the accounts shall be limited to expenses for administrative
oversight of American Recovery and Reinvestment Act (ARRA) funds. The governor’s office of
economic recovery and reinvestment is authorized by OMB memorandum 09-18 to receive up to
one-half percent (0.5%) of stimulus funding to cover oversight expenses.
     (b) All amounts deposited in the ARRA administration accounts shall be exempt from the
indirect cost recovery provisions of § 35-4-27.
     (c) It is hereby provided, at the end of the American Recovery and Reinvestment Act
oversight period, balances from the ARRA administrative accounts shall revert to general revenues.
     SECTION 17. Section 42-11-2.9 of the General Laws in Chapter 42-11 entitled
"Department of Administration" is hereby amended to read as follows:
     42-11-2.9. Division of capital asset management and maintenance established.
     (a) Establishment. Within the department of administration there shall be established the
division of capital asset management and maintenance (“DCAMM”). Any prior references to the
division of facilities management and/or capital projects, if any, shall now mean DCAMM. Within
the DCAMM there shall be a director of DCAMM who shall be in the classified service and shall
be appointed by the director of administration. The director of DCAMM shall have the following
responsibilities:
     (1) Oversee, coordinate, and manage the operating budget, personnel, and functions of
DCAMM in carrying out the duties described below;
     (2) Review agency capital-budget requests to ensure that the request is consistent with
strategic and master facility plans for the state of Rhode Island; and
     (3) Promulgate and adopt regulations necessary to carry out the purposes of this section.
     (b) Purpose. The purpose of DCAMM shall be to manage and maintain state property and
state-owned facilities in a manner that meets the highest standards of health, safety, security,
accessibility, energy efficiency, and comfort for citizens and state employees and ensures
appropriate and timely investments are made for state property and facility maintenance.
     (c) Duties and responsibilities of DCAMM. DCAMM shall have the following duties and
responsibilities:
     (1) To oversee all new construction and rehabilitation projects on state property, not
including property otherwise assigned outside of the executive department by Rhode Island general
laws or under the control and supervision of the judicial branch;
     (2) To assist the department of administration in fulfilling any and all capital-asset and
maintenance-related statutory duties assigned to the department under chapter 8 of title 37 (public
buildings) or any other provision of law, including, but not limited to, the following statutory duties
provided in § 42-11-2:
     (i) To maintain, equip, and keep in repair the statehouse, state office buildings, and other
premises, owned or rented by the state, for the use of any department or agency, excepting those
buildings, the control of which is vested by law in some other agency;
     (ii) To provide for the periodic inspection, appraisal, or inventory of all state buildings and
property, real and personal;
     (iii) To require reports from state agencies on the buildings and property in their custody;
     (iv) To issue regulations to govern the protection and custody of the property of the state;
     (v) To assign office and storage space, and to rent and lease land and buildings, for the use
of the several state departments and agencies in the manner provided by law;
     (vi) To control and supervise the acquisition, operation, maintenance, repair, and
replacement of state-owned motor vehicles by state agencies;
     (3) To generally manage, oversee, protect, and care for the state’s properties and facilities,
not otherwise assigned by Rhode Island general laws, including, but not limited to, the following
duties:
     (i) Space management, procurement, usage, and/or leasing of private or public space;
     (ii) Care, maintenance, cleaning, and contracting for such services as necessary for state
property;
     (iii) Capital equipment replacement;
     (iv) Security of state property and facilities unless otherwise provided by law;
     (v) Ensuring Americans with Disabilities Act (ADA) compliance;
     (vi) Responding to facilities emergencies;
     (vii) Managing traffic flow on state property;
     (viii) Grounds keeping/landscaping/snow-removal services;
     (ix) Maintenance and protection of artwork and historic artifacts;
     (x) On or before August 31, 2022, and each April 1 thereafter to submit to the division of
municipal finance a comprehensive list of all real property owned by the state as of the preceding
December 31 to facilitate the purposes of § 45-13-5.1. The comprehensive list and all other
information provided shall be in a format prescribed by the division of municipal finance. The
division of municipal finance shall subsequently provide to DCAMM a certified list of all
properties eligible under § 45-13-5.1 for identification in the statewide database established under
subsection (d) of this section. Any changes to the comprehensive list of all real property owned by
the state after the list has been supplied to the division of municipal finance shall require notification
to the division of municipal finance within thirty (30) days;
     (4) To manage and oversee state fleet operations.
     (d)(1) All state agencies shall participate in a statewide database and/or information system
for capital assets, that shall be established and maintained by DCAMM.
     (2) Beginning January 1, 2023, all state agencies, departments, boards, commissions,
corporations, authorities, quasi-state agencies, councils, or other political subdivisions that utilize
real property shall provide DCAMM any information, documentary and otherwise, that may be
necessary or desirable to facilitate the purposes of subsection (c)(3)(x) of this section by March 1
annually, or subsection (d)(1) of this section as required by DCAMM. The administrative head of
each submitting entity shall attest to the accuracy and completeness of the information in writing.
     (e) Offices and boards assigned to DCAMM. DCAMM shall oversee the following boards,
offices, and functions:
     (1) Office of planning, design, and construction (PDC);
     (2) Office of facilities management and maintenance (OFMM);
     (3) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]
     (4) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]
     (5) Office of risk management (§ 37-11-1 et seq.);
     (6) (56) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]
     (7) (67) Office of state fleet operations (§ 42-11-2.4(d)).
     (f) The boards, offices, and functions assigned to DCAMM shall:
     (1) Exercise their respective powers and duties in accordance with their statutory authority
and the general policy established by the director of DCAMM or in accordance with the powers
and authorities conferred upon the director of DCAMM by this section;
     (2) Provide such assistance or resources as may be requested or required by the director of
DCAMM or the director of administration;
     (3) Provide such records and information as may be requested or required by the director
of DCAMM or the director of administration; and
     (4) Except as provided herein, no provision of this chapter or application thereof shall be
construed to limit or otherwise restrict the offices stated above from fulfilling any statutory
requirement or complying with any valid rule or regulation.
     SECTION 18. Section 42-13-2 of the General Laws in Chapter 42-13 entitled "Department
of Transportation" is hereby amended to read as follows:
     42-13-2. Organization and functions of the department.
     (a) The department shall be organized in accordance with a project management-based
program and shall utilize an asset management system.
     (1) A project management-based program manages the delivery of the department’s
portfolio of transportation improvement projects from project conception to the project completion.
Project management activities include:
     (i) Managing and reporting on the delivery status of portfolio projects;
     (ii) Developing overall workload and budget for the portfolio;
     (iii) Developing and implementing the tools to estimate the resources necessary to deliver
the projects; and
     (iv) Developing and implementing processes and tools to improve the management of the
projects.
     (2) Asset management is the process used for managing transportation infrastructure by
improving decision making for resource allocation. Asset management activities include a systemic
process based on economic, engineering, and business principles which includes the following
functions:
     (i) Completing a comprehensive inventory of system assets;
     (ii) Monitoring system performance; and
     (iii) Performing analysis utilizing accurate data for managing various assets within the
transportation network.
     (b) The director of transportation shall appoint a chief operating officer to oversee the day-
to-day operations of the department.
     (c) The department shall be organized into such divisions as are described in this section
and such other divisions, subdivisions, and agencies as the director shall find are necessary to carry
out the responsibilities of the department, including: division of finance; division of planning;
division of project management; division of operations and maintenance; office of civil rights;
office of safety; office of external affairs; office of legal; office of personnel; and office of
information services.
     (d) The director may assign such other responsibilities as he or shethe director shall find
appropriate and may reassign functions other than as set out in this section if he or shethe director
finds the reassignment necessary to the proper and efficient functioning of the department or of the
state’s transportation system.
     (e) The department shall submit a report annually no later than March 31 to the speaker of
the house, the president of the senate, and the house and senate fiscal advisors concerning the status
of the ten-year (10) transportation plan.
     (f) Any functions, duties, and staff relating to the Rhode Island department of
transportation’s external audit section shall be transferred to the Rhode Island department of
administration’s office of internal audit and program integrity, or its successor, upon passage [Feb.
11, 2016].
     (1) The chief of the office of internal audit and program integrity, or its successor, who
shall be the administrative head of the office of internal audit and program integrity, or its successor,
shall supervise, coordinate, and/or conduct audits, civil and administrative investigations, and
inspections or oversight reviews, when necessary, relating to programs and operations listed in §
42-13-2.
     (2) The office of internal audit’s audit and program integrity’s (or its successor’s)
authorization shall include, but not be limited to, evaluating the efficiency of operations and internal
controls, preventing and detecting fraud, waste, abuse or mismanagement in the expenditure of
public funds, whether state, federal or those revenues collected by the use of tolls and related to
any and all transportation-related programs and operations as well as the procurement of any
supplies, services, or construction, by the department of transportation or related institutions of the
department of transportation. Investigations may include the expenditures by nongovernmental
agencies of federal, state, and local public funds. As deemed necessary or expedient by the office
of internal audit and program integrity, or its successor, audits may be made relative to the financial
affairs or the economy and efficiency of management of the department of transportation or related
institutions.
     SECTION 19. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State
Police" is hereby amended to read as follows:
     42-28-22. Retirement of members.
     (a) Whenever any member of the state police hired prior to July 1, 2007, has served for
twenty (20) years, the member may retire therefrom or they may be retired by the superintendent
with the approval of the governor, and in either event a sum equal to one-half (½) of the whole
salary for the position from which the member retired determined on the date the member receives
their first retirement payment shall be paid the member during life.
     (b) For purposes of this section, the term “whole salary” means:
     (1) For each member who retired prior to July 1, 1966, “whole salary” means the base
salary for the position from which the member retired as the base salary for that position was
determined on July 31, 1972;
     (2) For each member who retired between July 1, 1966, and June 30, 1973, “whole salary”
means the base salary for the position from which the member retired as the base salary,
implemented by the longevity increment, for that position was determined on July 31, 1972, or on
the date of the member’s retirement, whichever is greater;
     (3) For each member who retired or who retires after July 1, 1973, “whole salary” means
the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for
the position from which the member retired or retires.
     (c)(1) Any member who retired prior to July 1, 1977, shall receive a benefits payment
adjustment equal to three percent (3%) of the member’s original retirement, as determined in
subsection (b) of this section, in addition to the member’s original retirement allowance. In each
succeeding year thereafter during the month of January, the retirement allowance shall be increased
an additional three percent (3%) of the original retirement allowance, not compounded, to be
continued until January 1, 1991. For the purposes of the computation, credit shall be given for a
full calendar year regardless of the effective date of the service retirement allowance. For purposes
of this subsection, the benefits payment adjustment shall be computed from January 1, 1971, or the
date of retirement, whichever is later in time.
     (2) Any member of the state police who retires pursuant to the provisions of this chapter
on or after January 1, 1977, shall on the first day of January, next following the third anniversary
date of the retirement receive a benefits payment adjustment, in addition to their retirement
allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each
succeeding year thereafter during the month of January, the retirement allowance shall be increased
an additional three percent (3%) of the original retirement allowance, not compounded, to be
continued until January 1, 1991. For the purposes of the computation, credit shall be given for a
full calendar year regardless of the effective date of the service retirement allowance.
     (3) Any retired member of the state police who is receiving a benefit payment adjustment
pursuant to subdivisions (1) and (2) of this section shall beginning January 1, 1991, and ending
June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars ($1,500).
     (d) The benefits payment adjustment as provided in this section shall apply to and be in
addition to the retirement benefits under the provisions of § 42-28-5, and to the injury and death
benefits under the provisions of § 42-28-21.
     (e)(1) Any member who retires after July 1, 1972, and is eligible to retire prior to July 1,
2012, and who has served beyond twenty (20) years shall be allowed an additional amount equal
to three percent (3%) for each completed year served after twenty (20) years, but in no event shall
the original retirement allowance exceed sixty-five percent (65%) of the member’s whole salary as
defined in subsection (b) hereof or sixty-five percent (65%) of the member’s salary as defined in
subsection (b) hereof in the member’s twenty-fifth (25th) year whichever is less.
     (2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement
benefits as set forth above or shall be paid benefits as set forth in subdivision (b)(1) with “whole
salary” meaning the base salary for the position from which the member retired as the base salary
for the position was determined on July 1, 1975, whichever is greater.
     (f)(1) Any member who retires, has served as a member for twenty (20) years or more, and
who served for a period of six (6) months or more of active duty in the armed service of the United
States or in the merchant marine service of the United States as defined in § 2 of chapter 1721 of
the Public Laws, 1946, may purchase credit for such service up to a maximum of two (2) years;
provided that any member who has served at least six (6) months or more in any one year shall be
allowed to purchase one year for such service and any member who has served a fraction of less
than six (6) months in the member’s total service shall be allowed to purchase six (6) months’ credit
for such service.
     (2) The cost to purchase these credits shall be ten percent (10%) of the member’s first year
salary as a state policeman multiplied by the number of years and/or fraction thereof of such armed
service up to a maximum of two (2) years. The purchase price shall be paid into the general fund.
For members hired on or after July 1, 1989, the purchase price shall be paid into a restricted revenue
account entitled “state police retirement benefits” and shall be held in trust.
     (3) There will be no interest charge provided the member makes such purchase during their
twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later, but will be
charged regular rate of interest as defined in § 36-8-1 as amended to date of purchase from the date
of the member’s twentieth (20th) year of state service or five (5) years from May 18, 1981,
whichever is later.
     (4) Any member who is granted a leave of absence without pay for illness, injury, or any
other reason may receive credit therefor by making the full actuarial cost as defined in § 36-8-
1(10); provided the employee returns to state service for at least one year upon completion of the
leave.
     (5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of
the member’s whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of the
member’s salary as defined in subsection (b) hereof in the member’s twenty-fifth (25th) year,
whichever is less.
     (6) Notwithstanding any other provision of law, no more than five (5) years of service
credit may be purchased by a member of the system. The five (5) year limit shall not apply to any
purchases made prior to January 1, 1995. A member who has purchased more than five (5) years
of service credits before January 1, 1995, shall be permitted to apply those purchases towards the
member’s service retirement. However, no further purchase will be permitted. Repayment in
accordance with applicable law and regulation of any contribution previously withdrawn from the
system shall not be deemed a purchase of service credit.
     (g) The provisions of this section shall not apply to civilian employees in the Rhode Island
state police; and, further, from and after April 28, 1937, chapters 8 — 10, inclusive, of title 36 shall
not be construed to apply to the members of the Rhode Island state police, except as provided by
§§ 36-8-3, 36-10-1.1, 42-28-22.1, and 42-28-22.2, and § 36-8-1(5) and (8)(a) effective July 1, 2012.
     (h) Any member of the state police other than the superintendent of state police, who is
hired prior to July 1, 2007, and who has served for twenty-five (25) years or who has attained the
age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.
     (i)(1) Any member of the state police, other than the superintendent, who is hired on or
after July 1, 2007, and who has served for twenty-five (25) years, may retire therefrom or the
member may be retired by the superintendent with the approval of the governor, and shall be
entitled to a retirement allowance of fifty percent (50%) of the member’s “whole salary” as defined
in subsection (b) hereof.
     (2) Any member of the state police who is hired on or after July 1, 2007, may serve up to
a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent
(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the original
retirement allowance exceed sixty-five percent (65%) of his or her “whole salary” as defined in
subsection (b) hereof.
     (j) Effective July 1, 2012, any other provision of this section notwithstanding:
     (1) Any member of the state police, other than the superintendent of state police, who is
not eligible to retire on or prior to June 30, 2012, may retire at any time subsequent to the date the
member’s retirement allowance equals or exceeds fifty percent (50%) of average compensation as
defined in § 36-8-1(5)(a), provided that a member shall retire upon the first to occur of:
     (i) The date the member’s retirement allowance equals sixty-five percent (65%); or
     (ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of
service; provided however, any current member as of June 30, 2012, who has not accrued fifty
percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent
(50%); and upon retirement a member shall receive a retirement allowance which shall equal:
     (A) For members hired prior to July 1, 2007, the sum of (i), (ii), and (iii) where:
     (i) is calculated as the member’s years of total service before July 1, 2012, multiplied by
two and one-half percent (2.5%) of average compensation for a member’s first twenty (20) total
years,
     (ii) is calculated as the member’s years of total service before July 1, 2012, in excess of
twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of average
compensation, and
     (iii) is the member’s years of total service on or after July 1, 2012, multiplied by two
percent (2%) of average compensation as defined in § 36-8-1(5)(a)(b).
     (B) For members hired on or after July 1, 2007, the member’s retirement allowance shall
be calculated as the member’s years of total contributory service multiplied by two percent (2%)
of average compensation.
     (C) Any member of the state police who is eligible to retire on or prior to June 30, 2012,
shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above
except that whole salary shall be defined as final compensation where compensation for purposes
of this section and § 42-28-22.1 includes base salary, longevity, and holiday pay.
     (D) Notwithstanding the preceding provisions, in no event shall a member’s final
compensation be lower than their final compensation determined as of June 30, 2012.
     (2) In no event shall a member’s original retirement allowance under any provisions of this
section exceed sixty-five percent (65%) of their average compensation.
     (3) For each member who retires on or after July 1, 2012, except as provided in paragraph
(j)(1)(C) above, compensation and average compensation shall be defined in accordance with § 36-
8-1(5)(a) and (8), provided that for a member whose regular work period exceeds one hundred
forty-seven (147) hours over a twenty-four-day (24) period at any time during the four-year (4)
period immediately prior to the member’s retirement, that member shall have up to four hundred
(400) hours of their pay for regularly scheduled work earned during this period shall be included
as “compensation” and/or “average compensation” for purposes of this section and § 42-28-22.1.
     (4) This subsection (4) shall be effective for the period July 1, 2012, through June 30, 2015.
     (i) Notwithstanding the prior paragraphs of this section, and subject to paragraph (4)(ii)
below, for all present and former members, active and retired members, and beneficiaries receiving
any retirement, disability or death allowance or benefit of any kind, whether for or on behalf of a
non-contributory member or contributory member, the annual benefit adjustment provided in any
calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal to the
percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the
Five-Year Average Investment Return of the retirement system determined as of the last day of the
plan year preceding the calendar year in which the adjustment is granted, said percentage not to
exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser
of the member’s retirement allowance or the first twenty-five thousand dollars ($25,000) of
retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually
in the same percentage as determined under (4)(i)(A) above. The “Five-Year Average Investment
Return” shall mean the average of the investment returns for the most recent five (5) plan years as
determined by the retirement board. Subject to paragraph (4)(ii) below, the benefit adjustment
provided by this paragraph shall commence upon the third (3rd) anniversary of the date of
retirement or the date on which the retiree reaches age fifty-five (55), whichever is later. In the
event the retirement board adjusts the actuarially assumed rate of return for the system, either
upward or downward, the subtrahend shall be adjusted either upward or downward in the same
amount.
     (ii) Except as provided in paragraph (4)(iii), the benefit adjustments under this section for
any plan year shall be suspended in their entirety unless the funded ratio of the employees’
retirement system of Rhode Island, the judicial retirement benefits trust, and the state police
retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty
percent (80%) in which event the benefit adjustment will be reinstated for all members for such
plan year.
     In determining whether a funding level under this paragraph (4)(ii) has been achieved, the
actuary shall calculate the funding percentage after taking into account the reinstatement of any
current or future benefit adjustment provided under this section.
     (iii) Notwithstanding paragraph (4)(ii), in each fifth plan year commencing after June 30,
2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five
(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph
(4)(i) above until the funded ratio of the employees’ retirement system of Rhode Island, the judicial
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s
actuary on an aggregate basis, exceeds eighty percent (80%).
     (iv) The provisions of this paragraph (j)(4) shall become effective July 1, 2012, and shall
apply to any benefit adjustment not granted on or prior to June 30, 2012.
     (v) The cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to and be
in addition to the retirement benefits under the provisions of § 42-28-5 and to the injury and death
benefits under the provisions of § 42-28-21.
     (5) This subsection (5) shall become effective July 1, 2015.
     (i)(A) As soon as administratively reasonable following the enactment into law of this
paragraph (5)(i)(A), a one-time benefit adjustment shall be provided to members and/or
beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent
(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand
dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be
provided without regard to the retiree’s age or number of years since retirement.
     (B) Notwithstanding the prior subsections of this section, for all present and former
members, active and retired members, and beneficiaries receiving any retirement, disability or
death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year
under this section for adjustments on and after January 1, 2016, and subject to subsection (5)(ii)
below, shall be equal to (I) multiplied by (II):
     (I) shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:
     (1) is equal to the percentage determined by subtracting five and one-half percent (5.5%)
(the “subtrahend”) from the five-year average investment return of the retirement system
determined as of the last day of the plan year preceding the calendar year in which the adjustment
is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent
(0%). The “five-year average investment return” shall mean the average of the investment returns
of the most recent five (5) plan years as determined by the retirement board. In the event the
retirement board adjusts the actuarially assumed rate of return for the system, either upward or
downward, the subtrahend shall be adjusted either upward or downward in the same amount.
     (2) is equal to the lesser of three percent (3%) or the percentage increase in the Consumer
Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor
Statistics determined as of September 30 of the prior calendar year.
     In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be
less than zero percent (0%).
     (II) is equal to the lesser of either the member’s retirement allowance or the first twenty-
five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount
to be indexed annually in the same percentage as determined under subsection (5)(i)(B)(I) above.
The benefit adjustments provided by this subsection (5)(i)(B) shall be provided to all retirees
entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all
other retirees the benefit adjustments shall commence upon the third anniversary of the date of
retirement or the date on which the retiree reaches their Social Security retirement age, whichever
is later.
     (ii) Except as provided in subsection (5)(iii), the benefit adjustments under subsection
(5)(i)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the
employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state
police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds
eighty percent (80%) in which event the benefit adjustment will be reinstated for all members for
such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of
Rhode Island, the judicial retirement benefits trust, and the state police retirement benefits trust,
calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the
benefit adjustment to be reinstated for all members for such plan year shall be replaced with
seventy-five percent (75%).
     In determining whether a funding level under this subsection (5)(ii) has been achieved, the
actuary shall calculate the funding percentage after taking into account the reinstatement of any
current or future benefit adjustment provided under this section.
     (iii) Notwithstanding subsection (5)(ii), in each fourth plan year commencing after June
30, 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of
four plan years: (i) A benefit adjustment shall be calculated and made in accordance with paragraph
(5)(i)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or
before June 30, 2015, the dollar amount in subsection (5)(i)(B)(II) of twenty-five thousand eight
hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six
dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the
judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the
system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the
funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits
trust, and the state police retirement benefits trust, calculated by the system’s actuary on an
aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent
(75%).
     (iv) Effective for members and/or beneficiaries of members who have retired on or before
July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)
days following the enactment of the legislation implementing this provision, and a second one-time
stipend of five hundred dollars ($500) in the same month of the following year. These stipends
shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable
payment date and shall not be considered cost of living adjustments under the prior provisions of
this section.
     (6) Any member with contributory service on or after July 1, 2012, who has completed at
least five (5) years of contributory service but who has not retired in accordance with (j)(1) above,
shall be eligible to retire upon the attainment of member’s Social Security retirement age as defined
in § 36-8-1(20).
     (7) In no event shall a member’s retirement allowance be less than the member’s retirement
allowance calculated as of June 30, 2012, based on the member’s years of total service and whole
salary as of June 30, 2012.
     (k) In calculating the retirement benefit for any member, the term base salary as used in
subdivision (b)(3) or average compensation as used in paragraph (j) shall not be affected by a
deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to
effect cost savings. Basic salary shall remain for retirement calculation that which it would have
been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns
or layoffs or to effect cost savings.
     SECTION 20. Section 42-64-38 of the General Laws in Chapter 42-64 entitled "Rhode
Island Commerce Corporation" is hereby amended to read as follows:
     42-64-38. Audit of the corporation.
     (a) Commencing July 1, 2014, and every five (5) years thereafter, the corporation shall be
subject to a performance audit, conducted in compliance with the generally accepted governmental
auditing standards, by the office of internal audit and program integrity or a certified public
accounting firm qualified in performance audits.
     (b) If the audit is not directly performed by his or herthe office of internal audit and
program integrity office, the selection of the auditor and the scope of the audit shall be subject to
the approval of the chief of the office of internal audit and program integrity.
     (c) The audit shall be conducted in conformance with § 35-7-3(b) through (d) [repealed].
     (d) The results of the audit shall be made public upon completion, posted on the websites
of the office of internal audit and program integrity and the corporation.
     (e) The corporation shall be responsible for all costs associated with the audit.
     SECTION 21. Sections 42-140-3, 42-140-7 and 42-140-8 of the General Laws in Chapter
42-140 entitled "Rhode Island Energy Resources Act" are hereby amended to read as follows:
     42-140-3. Purposes.
     The purposes of the office shall be to:
     (1) Develop and put into effect plans and programs to promote, encourage, and assist the
provision of energy resources for Rhode Island in a manner that enhances economic well-being,
social equity, and environmental quality;
     (2) Monitor, forecast, and report on energy use, energy prices, and energy demand and
supply forecasts, and make findings and recommendations with regard to energy supply diversity,
reliability, and procurement, including least-cost procurement;
     (3) Develop and to put into effect plans and programs to promote, encourage, and assist
the efficient and productive use of energy resources in Rhode Island, and to coordinate energy
programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of
conservation and efficiency of investments;
     (4) Monitor and report technological developments that may result in new and/or improved
sources of energy supply, increased energy efficiency, and reduced environmental impacts from
energy supply, transmission, and distribution;
     (5) Administer the programs, duties, and responsibilities heretofore exercised by the state
energy office, except as these may be assigned by executive order or the general laws to other
departments and agencies of state government;
     (6) Develop, recommend, and, as appropriate, implement integrated and/or comprehensive
strategies, including at regional and federal levels, to secure Rhode Island’s interest in energy
resources, their supply and efficient use, and as necessary to interact with persons, private sector,
nonprofit, regional, federal entities and departments and agencies of other states to effectuate this
purpose;
     (7) Cooperate with agencies, departments, corporations, and entities of the state and of
political subdivisions of the state in achieving its purposes;
     (8) Cooperate with and assist the state planning council and the division of state planning
in developing, maintaining, and implementing state guide plan elements pertaining to energy and
renewable energy;
     (9) Coordinate the energy efficiency, renewable energy, least-cost procurement, and
systems reliability plans and programs with the energy efficiency and resources management
council; and the renewable energy coordinating board;
     (10) Participate in, monitor implementation of, and provide technical assistance for the
low-income home energy assistance program enhancement plan established pursuant to § 39-1-
27.12;
     (11) Participate in and monitor the distributed generation standard contracts program
pursuant to chapter 26.2 of title 39;
     (12) Coordinate opportunities with and enter into contracts and/or agreements with the
commerce corporation associated with the energy efficiency, least-cost procurement, system
reliability, and renewable energy fund programs;
     (13) Provide support and information to the division of planning and the state planning
council in the development of a ten-year (10) Rhode Island Energy Guide Plan, which shall be
reviewed and amended if necessary every five (5) years;
     (14) Provide funding support if necessary to the renewable energy coordinating board
and/or the advisory council to carry out the objectives pursuant to chapter 140.3 of this title
[repealed];
     (15) Advise and provide technical assistance to state and federally funded energy programs
to support:
     (i) The federal low-income home energy assistance program which provides heating
assistance to eligible low-income persons and any state funded or privately funded heating
assistance program of a similar nature assigned to it for administration;
     (ii) The weatherization assistance program which offers home weatherization grants and
heating system upgrades to eligible persons of low-income;
     (iii) The emergency fuel program which provides oil deliveries to families experiencing a
heating emergency;
     (iv) The energy conservation program, which offers service and programs to all sectors;
     (v) [Deleted by P.L. 2008, ch. 228, § 2, and P.L. 2008, ch. 422, § 2.]
     (16)(15) Advise the commerce corporation in the development of standards and rules for
the solicitation and award of renewable energy program investment funds in accordance with § 42-
64-13.2;
     (17)(16) Develop, recommend, and evaluate energy programs for state facilities and
operations in order to achieve and demonstrate the benefits of energy-efficiency, diversification of
energy supplies, energy conservation, and demand management; and
     (18)(17) Advise the governor and the general assembly with regard to energy resources
and all matters relevant to achieving the purposes of the office.
     42-140-7. Conduct of activities.
     (a) To the extent reasonable and practical, the conduct of activities under the provisions of
this chapter shall be open and inclusive. ; the commissioner and the council shall seek in addressing
the purposes of the office to involve the research and analytic capacities of institutions of higher
education within the state, industry, advocacy groups, and regional entities, and shall seek input
from stakeholders including, but not limited to, residential and commercial energy users.
     (b) The commissioner shall transmit any unencumbered funds from the renewable energy
program under chapter 2 of title 39 to the commerce corporation to be administered in accordance
with the provisions of § 39-2-1.2.
     42-140-8. Annual report.
     The commissioner shall report annually, on or before June 30 March 1 of each year, to the
governor, the president of the senate, and the speaker of the house with regard to the status of
energy supplies, markets, and conditions, the effectiveness of energy programs, and the activities
of the office. including the council, and such other matters related to energy as the commissioner
or the council may deem appropriate.
     SECTION 22. Chapter 42-140 of the General Laws entitled "Rhode Island Energy
Resources Act" is hereby amended by adding thereto the following section:
     42-140-12. Clean transportation programs.
     There is established a restricted receipt account within the general fund of the state, to be
known as the "clean transportation programs", to be administered by the office of energy resources.
The purpose of the account is to receive and expend funds for clean transportation programs,
including but not limited to electric vehicle rebate, electric bicycle rebate and other programs.
     SECTION 23. Section 42-155-7 of the General Laws in Chapter 42-155 entitled "Quasi-
Public Corporations Accountability and Transparency Act" is hereby amended to read as follows:
     42-155-7. Audit of quasi-public corporations.
     (a) Commencing January 1, 2015, and every five (5) years thereafter, each quasi-public
corporation shall be subject to a performance audit, conducted in compliance with the generally
acceptable governmental auditing standards or the standards for the professional practice of internal
auditing, by the chief of the office of internal audit and program integrity. The chief, in
collaboration with the quasi-public corporation, shall determine the scope of the audit. To assist in
the performance of an audit, the chief, in collaboration with the quasi-public corporation, may
procure the services of a certified public accounting firm, which shall be a subcontractor of the
office of internal audit and program integrity, and shall be under the direct supervision of the office
of internal audit and program integrity. The chief of the office of internal audit and program
integrity shall establish a rotating schedule identifying the year in which each quasi-public
corporation shall be audited. The schedule shall be posted on the website of the office of internal
audit and program integrity.
     (b) The audit shall be conducted in conformance with chapter 7 of title 35 (“Post Audit of
Accounts”).
     (c) Each quasi-public corporation shall be responsible for costs associated with its own
audit. The chief and each quasi-public corporation shall agree upon reasonable costs for the audit,
not to exceed seventy-five thousand dollars ($75,000), that shall be remitted to the office of internal
audit and program integrity.
     (d) The results of the audit shall be made public upon completion and posted on the
websites of the office of internal audit and program integrity and the quasi-public corporation.
     (e) For purposes of this section, a performance audit shall mean an independent
examination of a program, function, operation, or the management systems and procedures of a
governmental or nonprofit entity to assess whether the entity is achieving economy, efficiency, and
effectiveness in the employment of all available resources.
     SECTION 24. Section 42-157-6 of the General Laws in Chapter 42-157 entitled "Rhode
Island Health Benefit Exchange" is hereby amended to read as follows:
     42-157-6. Audit.
     (a) Annually, the exchange shall cause to have a financial and/or performance audit of its
functions and operations performed in compliance with the generally accepted governmental
auditing standards and conducted by the state office of internal audit and program integrity or a
certified public accounting firm qualified in performance audits.
     (b) If the audit is not directly performed by the state office of internal audit and program
integrity, the selection of the auditor and the scope of the audit shall be subject to the approval of
the state office of internal audit and program integrity.
     (c) The results of the audit shall be made public upon completion, posted on the
department’s website and otherwise made available for public inspection.
     SECTION 25. The title of Chapter 42-165 of the General Laws entitled "Rhode Island
Longitudinal Data System Act" is hereby amended to read as follows:
CHAPTER 42-165
Rhode Island Longitudinal Data System Act
CHAPTER 42-165
RHODE ISLAND INTEGRATED DATA SYSTEM ACT
     SECTION 26. Sections 42-165-1, 42-165-2, 42-165-3, 42-165-4, 42-165-5, 42-165-6 and
42-165-7 of the General Laws in Chapter 42-165 entitled "Rhode Island Longitudinal Data System
Act" are hereby amended to read as follows:
     42-165-1. Rhode Island longitudinal data system act. Rhode Island integrated data
system act.
     This chapter shall be known and may be cited as the “Rhode Island Longitudinal Integrated
Data System Act.”
     42-165-2. Findings.
     (a) Purpose. The Rhode Island Longitudinal Integrated Data System (RILDSRIIDS)
“DATA RI” is Rhode Island’s statewide longitudinal integrated data system that integrates and
links individual or unit-level data. The purpose of the RILDSRIIDS is to connect federated data
across sectors and over time to support research aligned with the state’s priorities; inform
policymaking and program evaluation; and improve the well-being of all Rhode Islanders.
     (b) The general assembly finds and declares that:
     (1) The state is committed to maintaining a longitudinal data system that the public,
researchers, and policymakers can use to analyze and assess Rhode Islanders’ aggregate progress
from early learning programs through postsecondary education and into employment; and
     (2) A national collaborative effort among federal and state policymakers, state officials,
and national education organizations has defined the essential components of a statewide
longitudinal data system; and
     (3) The RI Longitudinal Data System (RILDS)DataHUB is the state education and
workforce longitudinal data system, aligned to the U.S. Department of Education’s Statewide
Longitudinal Data System (SLDS) grant program and the U.S. Department of Labor’s Workforce
Data Quality Initiative grant program.
     (4) The Ecosystem is the state’s health and human services integrated data system focused
on improving the outcomes of these related programs and starting from the base of the Medicaid
program.
     (5) The Ecosystem, the RILDS and individual programs can be connected in a federated
manner that enables programs to retain control of their data but also allows secure sharing of data
when there is an approved data analysis project.
     (6) Unified governance across the Ecosystem and RILDS will allow more efficient and
secure operation of the state’s data infrastructure.
     42-165-3. Definitions.
     For the purpose of this chapter, the following terms shall have the following meanings
unless the context clearly requires otherwise:
     (1) “Participating agency” means the Rhode Island department of education, the office of
the postsecondary commissioner, the Rhode Island department of labor and training, executive
office of health and human services, and any agency that has executed a memorandum of
understanding for recurring participation in the Rhode Island longitudinal data system.
     (2) “Rhode Island Longitudinal Data System” (RILDS) formerly known as the RI
DataHUB operated by DataSpark, is the current statewide longitudinal data system and will be
located for budgetary purposes in the office of the postsecondary commissioner.
     (3) The “Ecosystem” is the executive office of health and human services integrated data
system. “Rhode Island Longitudinal Data System Center” (Center) is comprised of the current
entity known as DataSpark and whatever other resources as necessary to accomplish the powers
and duties prescribed herein.
     (4) “State and federal privacy laws” means all applicable state and federal privacy laws
and accompanying regulations, including but not limited to the federal Family Educational Rights
and Privacy Act and its accompanying regulations (“FERPA”), Health Insurance Portability and
Accountability Act (“HIPAA”), R.I. Gen. Laws § 28-42-38, 20 C.F.R. § 603.1 et seq., and any
other privacy measures that apply to the personally identifiable information that is used by the
center and/or becomes part of the RILDS, the Ecosystem or RIIDS hereunder.
     (5) “Statewide Rhode Island integrated data system” or “integrated data system” or
RIIDS” means an the state individual-, family-, or unit-level data system that links and integrates
records from state datasets from all major education, economic, health, human service, labor, and
public safety programs including the RILDS, the Ecosystem, and any other data repositories
accepted by the RIIDS governing board.
     (6) “Statewide longitudinal data system” or “longitudinal data system” or “SLDS” means
an individual- or unit-level data system that links and integrates records from state datasets
including but not limited to early childhood and prekindergarten, through elementary, secondary,
and postsecondary education, and into the workforce from participating agencies and entities.
     42-165-4. Creation.
     (a) The RILDS RIIDS “DATA RI” is hereby established within the office of the
postsecondary commissioner and is granted and authorized to use all the powers set forth in this
chapter.
     (b) Functions. The RILDS RIIDS “DATA RI” shall:
     (1) Transmit, store, enable access to, permit the use, and dispose of linked data and
information in accordance with the National Institute of Standards and Technology (NIST)
Cybersecurity Framework and associated NIST 800-53 security controls commensurate with data
sensitivity level and in accordance with all applicable state and privacy laws and state security
policies;
     (2) Serve as a central repository of the state’s inter-agency, longitudinal, linked and
individual data;
     (3) Enable the integration, linkage, and management of information;
     (4) Report on and provide public access to aggregate data to, among other things, address
inequities in access, opportunities, and outcomes and improve student and educator decision-
making;
     (5) Provide clarity to university and other researchers on the process to request data and
what data is available to request; and
     (6) Nothing in this chapter shall negate or otherwise adversely affect the validity and legal
enforceability of any existing data sharing and/or research agreements executed between and
among the state’s participating agencies and the state’s statewide longitudinal data system RILDS
or Ecosystem: and
     (7) Nothing in this section and chapter shall negate or overrule the right of an agency,
institution, or entity that has provided and/or transferred data to the RIIDS, RILDS, or the
Ecosystem to determine the use of and access to its data.
     42-165-5. Governing board.
     (a) Composition of board. The RILDS RIIDS “DATA RI” will be governed by the Rhode
Island longitudinal Integrated data system governing board (the board).
     (1) The board shall be composed of:
     (i) The director of the department of administration or designee who serves as one co-chair;
     (ii) The directors of any participating agencies as described in § 42-165-3 and § 42-165-6,
or their designee;
     (iii) The director of the office of management and budget or designee;
     (iv) The chief digital officer or designee;
     (v) The director of the center, as set forth in § 42-165-7;
     (vi) The secretary of health and human services or designee who serves as one co-chair;
and
     (vii) The commissioner of postsecondary education or designee who serves as one co-chair.
     (2) The board shall be overseen by two co-chairs. As The co-chairs co-chair, the director
of administration or designee shall be responsible for overseeing and directing the policy duties
and responsibilities of the board. The other co-chair shall be the commissioner of postsecondary
education who shall be responsible for and overseeing, supervising, and directing the operational
duties of the center and its personnel.
     (b) Powers and duties. The board shall:
     (1) In consultation with the center and the Ecosystem, and in accordance with federal and
state privacy law, approve policies regarding how data requests from state and local agencies, the
Rhode Island general assembly, universities, third-party researchers, and the public will be
managed;
     (2) In consultation with the center and the Ecosystem, approve policies regarding the
publishing of reports and other information that should be available to public stakeholders;
     (3) Approve standards implemented by the center and the Ecosystem for the security,
privacy, access to, and confidentiality of data, including policies to comply with the Family
Educational Rights and Privacy Act, Health Insurance Portability and Accountability Act, R.I. Gen.
Laws § 28-42-38, 20 C.F.R. § 603.1 et seq., and any other privacy measures, as required by law,
state policy, or the board;
     (4) Perform other functions that are necessary to ensure the successful continuation,
management, and expansion of the RILDS RIIDS;
     (5) Establish a data governance committee to work with the center and Ecosystem on an
ongoing basis to among other responsibilities, approve data requests;
     (6) Oversee and collaborate with the data governance committee, the Ecosystem and the
center as set forth in § 42-165-7; and
     (7) By November 1, 2023, provide a plan to the governor, the house, and the senate on how
to establish a statewide integrated data system. The plan should consider elements such as:
     (i) The role an IDS can play in improving the operation of programs; reducing fraud, waste,
and abuse; and establishing a state culture of program evaluation;
     (ii) Providing state agencies with evaluation services and providing state analysts access to
data based on their role;
     (iii) Providing researchers with access to state data;
     (iv) The importance of data privacy and security;
     (v) The importance of public transparency and the role of the state transparency portal;
     (vi) The creation of a state chief data officer;
     (vii) Sustainable funding and governance for the IDS;
     (viii) The role of data federation; and
     (ix) The timeline for implementing the IDS.
     Serve as the single governing board for the RILDS and the Ecosystem;
     (8) Set the strategic direction for RIIDS to ensure it:
     (i) Improves transparency and public accessibility of data, including increasing the
availability of dashboards, plain language summaries; public data catalogs of research and reports;
     (ii) Enhances data availability for internal state use, ensuring data is accessible to state
analysts to conduct broad analysis of state programs, thereby improving the state’s understanding
of the operation and impact of its programs; and
     (iii) Improves data availability for external researchers. Data shall be made available to
researchers to the greatest extent possible limited to allow evidence-based improvements to state
programs; and
     (9) The center or the Ecosystem is considered to be an agent of the executive state agency
sharing government information for a particular data project and is an authorized receiver of
government information under the statutory or administrative law that governs the government
information. Interagency data sharing under this chapter does not constitute a disclosure or release
under any statutory or administrative law that governs the government information.
     42-165-6. Participating agencies.
     (a) Participating agencies shall transfer data, as applicable, to the RILDS RIIDS's in
accordance with the data security policies as approved by the board, and pursuant to the
requirements of state and federal privacy laws and policies.
     (b) Any agencies providing data on a recurring basis to the RILDS shall provide a
representative to the board and be governed in the same manner as the initial agencies and entities
and shall be subject to applicable board policies.
     (c) All Rhode Island state agencies shall:
     (1) Participate in the RIIDS to the extent practical;
     (2) Identify datasets of greatest value for policy analysis efforts and investigate the
feasibility of making them available for the federated data system and other internal policy analysis
efforts; and
     (3) Share data to the greatest extent possible as practical and permissible under law.
     42-165-7. The Rhode Island longitudinal data system center.
     (a) Purpose. The purpose of the center is to manage and operate the RILDS and conduct
research and evaluate programs regarding federal, state, and local programs and policies. The center
shall be managed by an executive director (hereafter the “director”) responsible for the daily
management and operations of the center. The director will also be responsible for interfacing and
collaborating between the board and the data governance committee, as well as external
communications and agreements. The director shall be a non-classified employee of the council on
postsecondary education under the supervision of and subject to the authority of the commissioner
of postsecondary education.
     (b) Powers and duties. The duties of the center shall be to:
     (1) Act as an authorized representative, research partner, and business associate of the
state’s agencies, including those responsible for education and workforce, under and in accordance
with the requirements of applicable federal and state statutes and/or state and federal privacy laws
and state security policies;
     (2) Enter into memoranda of understanding with state agencies, nonprofits, universities,
subnational governments, and other entities for the purposes of data sharing and analysis;
     (3) Coordinate with participating agencies and other entities to ensure the integrity and
quality of data being collected, including implementing the data quality and metadata policies
approved by the board;
     (4) Advance research and allow policymakers to explore critical research policy questions
and to measure investments in education and workforce development;
     (5) In consultation with the board, identify the state’s critical research and policy questions;
     (6) Provide analysis and reports that assist with evaluating programs and measuring
investments, subject to the policies approved by the board;
     (7) Implement policies and procedures approved by the board that govern the security,
privacy, access to, and confidentiality of the data, in accordance with relevant federal and state
privacy laws;
     (8) Ensure that information contained in and available through the RILDS is kept secure,
and that individual privacy is protected, and maintain insurance coverage;
     (9) Respond to approved research data requests in accordance with the policies and
procedures approved by the board;
     (10) Enter into contracts or other agreements with appropriate entities, including but not
limited to universities, and federal, state, and local agencies, to the extent necessary to carry out its
duties and responsibilities only if such contracts or agreements incorporate adequate protections
with respect to the privacy and security of any information to be shared, and are approved, in
writing, by the applicable agency whose data or information is to be shared, and are allowable
under applicable state and federal privacy laws; and
     (11) Maintain staff necessary to carry out the above duties as provided for in the state
budget. Staff at the center shall be non-classified employees of the council on postsecondary
education, under the supervision of and subject to the authority of the commissioner of
postsecondary education. The non-SLDS activity of the center shall also be under the supervision
and authority of the commissioner of postsecondary education and the council on postsecondary
education. The council on postsecondary education, its office of the postsecondary commissioner,
and its employees shall be included under the limitation of damages for tort liability for the
Statestate set out in § 9-31-1 et seq., for all actions involving the center regarding the RILDS and/or
SLDS and for any other activity of the center regarding its receipt, storage, sharing, and
transmission of data as part of its non-SLDS operations and activities.
     (12) The council on postsecondary education shall be the employer of public record for the
Center.
     (c) Funding. Appropriations made pursuant to this chapter shall be used exclusively for
the development and operation of RILDS, RIIDS or the Ecosystem.
     (1) The board and the center may implement a data request fee policy to compensate for
excessive use of the data system, to recover costs that would otherwise typically be borne by the
requesting data researcher, or both. A data request fee policy implemented pursuant to this section
shall be reviewed and approved by the board, revised periodically, and made publicly available and
posted in a prominent location on the RILDS’s RIIDS's internet website.
     (2) The center may receive funding for its operation of the RILDS from the following
sources:
     (i) State appropriations;
     (ii) Federal grants;
     (iii) User fees; and
     (iv) Any other grants or contributions from public agencies or other entities.
     (3) There is hereby established a restricted receipt account in the general fund of the state
and housed in the budget of the office of postsecondary commissioner entitled “longitudinal data
system — non-federal grants.” The express purpose of this account is to record receipts and
expenditures of the program herein described and established within this chapter.
     SECTION 27. Section 44-1-14 of the General Laws in Chapter 44-1 entitled "State Tax
Officials" is hereby amended to read as follows:
     44-1-14. Disclosure of information to tax officials of federal government or other
states, or to other persons.
     Notwithstanding any other provision of law:
     (1) The tax administrator may make available: (i) To the taxing officials of any other states
or of the federal government for tax purposes only, any information that the administrator may
consider proper contained in tax reports or returns or any audit or the report of any investigation
made with respect to them, filed pursuant to the tax laws of this state; provided, that other states or
the federal government grant like privileges to the taxing officials of this state; and/or (ii) To an
officer or employee of the office of internal audit and program integrity of the Rhode Island
department of administration, any information that the administrator may consider proper contained
in tax reports or returns or any audit or the report of any investigation made with respect to them,
filed pursuant to the tax laws of this state, to whom disclosure is necessary for the purposes of fraud
detection and prevention in any state or federal program.
     (2) The tax administrator shall not permit any federal return or federal return information
to be inspected by, or disclosed to, an individual who is the chief executive officer of the state or
any person other than:
     (i) To another employee of the tax division for the purpose of, and only to the extent
necessary in, the administration of the state tax laws for which the tax division is responsible;
     (ii) To another officer or employee of the state to whom the disclosure is necessary in
connection with processing, storage, and transmission of those returns and return information and
solely for purposes of state tax administration;
     (iii) To another person for the purpose of, but only to the extent necessary in, the
programming, maintenance, repair, testing, and procurement of equipment used in processing or
transmission of those returns and return information; or
     (iv) To a legal representative of the tax division, personally and directly engaged in, and
solely for use in, preparation for a civil or criminal proceeding (or investigation which may result
in a proceeding) before a state administrative body, grand jury, or court in a matter involving state
tax administration, but only if:
     (A) The taxpayer is or may be a party to the proceeding;
     (B) The treatment of an item reflected on the return is or may be related to the resolution
of an issue in the proceeding or investigation; or
     (C) The return or return information relates, or may relate, to a transactional relationship
between a person who is or may be a party to the proceeding and the taxpayer that affects or may
affect the resolution of an issue in a proceeding or investigation.
     SECTION 28. This article shall take effect upon passage, except Section 15, which shall
take effect on January 1, 2026.