Chapter 427 |
2025 -- H 6385 SUBSTITUTE A Enacted 07/02/2025 |
A N A C T |
RELATING TO STATUTES AND STATUTORY CONSTRUCTION |
Introduced By: Representative Christopher R. Blazejewski |
Date Introduced: June 04, 2025 |
It is enacted by the General Assembly as follows: |
ARTICLE I--STATUTORY REENACTMENT |
SECTION 1. It is the express intention of the General Assembly to reenact the entirety of |
Title 25, chapters 1 through 18.9 of Title 27, and chapters 1 through 46 of Title 42 of the General |
Laws of Rhode Island, including every chapter and section therein, and any chapters and sections |
thereof not included in this act may be, and are hereby, reenacted as if fully set forth herein. |
SECTION 2. Sections 27-1-46 and 27-1-47 of the General Laws in Chapter 27-1 entitled |
"Domestic Insurance Companies" are hereby amended to read as follows: |
27-1-46. Information security program. |
(a) Commensurate with the size and complexity of an insurer, the nature and scope of an |
insurer’s activities, including its use of third-party service providers, and the sensitivity of the |
nonpublic information used by the insurer or in the insurer’s possession, custody, or control, each |
domestic insurance company shall develop, implement, and maintain a comprehensive written |
information security program, based on the insurer’s risk assessment and that contains |
administrative, technical, and physical safeguards for the protection of nonpublic information and |
the insurer’s information system. For purposes of this chapter, “information security program” |
means the administrative, technical, and physical safeguards that an insurer uses to access, collect, |
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle, nonpublic |
information. “Publicly available information” means any information that a licensee has a |
reasonable basis to believe is lawfully made available to the general public from: federal, state, or |
local government records; widely distributed media; or disclosures to the general public that are |
required to be made by federal, state, or local law. “Nonpublic information” means information |
that is not publicly available information and is: |
(1) Business-related information of a licensee, the tampering with which, or unauthorized |
disclosure, access, or use of which, would cause a material adverse impact to the business, |
operations, or security of the licensee; |
(2) Any information concerning a consumer which, because of name, number, personal |
mark, or other identifier, can be used to identify such consumer, in combination with any one or |
more of the following data elements: |
(i) Social security number; |
(ii) Driver’s license number or non-driver identification card number; |
(iii) Account number, credit, or debit card number; |
(iv) Any security code, access code, or password that would permit access to a consumer’s |
financial account; or |
(v) Biometric records; |
(3) Any information or data, except age or gender, in any form or medium created by or |
derived from a healthcare provider or a consumer and that relates to: |
(i) The past, present, or future physical, mental, behavioral health, or medical condition of |
any consumer or a member of the consumer’s family; |
(ii) The provision of health care to any consumer; or |
(iii) Payment for the provision of health care to any consumer. |
(b) Objectives of information security program. An insurer’s information security |
program shall be designed to: |
(1) Protect the security and confidentiality of nonpublic information and the security of the |
information system; |
(2) Protect against any threats or hazards to the security or integrity of nonpublic |
information and the information system; |
(3) Protect against unauthorized access to or use of nonpublic information, and minimize |
the likelihood of harm to any consumer. For purposes of this section, “consumer” means an |
individual, including, but not limited to, applicants, policyholders, insureds, beneficiaries, |
claimants, and certificate holders, who is a resident of this state and whose nonpublic information |
is in an insurer’s possession, custody, or control; and |
(4) Define and periodically reevaluate a schedule for retention of nonpublic information |
and a mechanism for its destruction when no longer needed. |
(c) Risk assessment. The insurer shall: |
(1) Designate one or more employees, an affiliate, or an outside vendor designated to act |
on behalf of the insurer who is responsible for the information security program; |
(2) Identify reasonably foreseeable internal or external threats that could result in |
unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic |
information, including the security of information systems and nonpublic information that are |
accessible to, or held by, third-party service providers. “Third-party service providers” means a |
person, not otherwise defined as a licensee, that contracts with a licensee to maintain, process, store, |
or otherwise is permitted access to nonpublic information through its provision of services to the |
licensee. Third-party service providers does not include licensed insurance producers; |
(3) Assess the likelihood and potential damage of these threats, taking into consideration |
the sensitivity of the nonpublic information; |
(4) Assess the sufficiency of policies, procedures, information systems, and other |
safeguards in place to manage these threats, including consideration of threats in each relevant area |
of the insurer’s operations, including: |
(i) Employee training and management; |
(ii) Information systems, including network and software design, as well as information |
classification, governance, processing, storage, transmission, and disposal; and |
(iii) Detecting, preventing, and responding to attacks, intrusions, or other systems failures; |
and |
(5) Implement information safeguards to manage the threats identified in its ongoing |
assessment, and no less than annually, assess the effectiveness of the safeguards’ key controls, |
systems, and procedures. |
(d) Risk management. Based on its risk assessment, the insurer shall: |
(1) Design its information security program to mitigate the identified risks, commensurate |
with the size and complexity of the insurer’s activities, including its use of third-party service |
providers, and the sensitivity of the nonpublic information used by the insurer or in the insurer’s |
possession, custody, or control; |
(2) Determine which security measures listed below are appropriate and implement such |
security measures: |
(i) Place access controls on information systems, including controls to authenticate and |
permit access only to authorized individuals to protect against the unauthorized acquisition of |
nonpublic information. “Authorized individual” means an individual known to and screened by the |
insurer, and determined to be necessary and appropriate to have access to the nonpublic information |
held by the insurer, and the insurer’s information systems; |
(ii) Identify and manage the data, personnel, devices, systems, and facilities that enable the |
organization to achieve business purposes in accordance with their relative importance to business |
objectives and the organization’s risk strategy; |
(iii) Restrict access at physical locations containing nonpublic information only to |
authorized individuals; |
(iv) Protect, by encryption or other appropriate means, all nonpublic information while |
being transmitted over an external network and all nonpublic information stored on a laptop |
computer or other portable computing or storage device or media; |
(v) Adopt secure development practices for in-house developed applications utilized by the |
insurer and procedures for evaluating, assessing, or testing the security of externally developed |
applications utilized by the insurer; |
(vi) Modify the information system in accordance with the insurer’s information security |
program; |
(vii) Utilize effective controls, which may include multi-factor authentication procedures |
for any individual accessing nonpublic information; |
(viii) Regularly test and monitor systems and procedures to detect actual and attempted |
attacks on, or intrusions into, information systems; |
(ix) Include audit trails within the information security program designed to detect and |
respond to cybersecurity events and designed to reconstruct material financial transactions |
sufficient to support normal operations and obligations of the insurer; |
(x) Implement measures to protect against destruction, loss, or damage of nonpublic |
information due to environmental hazards, such as fire and water damage or other catastrophes or |
technological failures; and |
(xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic |
information in any format; |
(3) Include cybersecurity risks in the insurer’s enterprise risk management process; |
(4) Stay informed regarding emerging threats or vulnerabilities and utilize reasonable |
security measures when sharing information relative to the character of the sharing and the type of |
information shared; and |
(5) Provide its personnel with cybersecurity awareness training that is updated as necessary |
to reflect risks identified by the insurer in the risk assessment. |
(e) Oversight by board of directors. If the insurer has a board of directors, the board or |
an appropriate committee of the board shall, at a minimum: |
(1) Require the insurer’s executive management or its designees to develop, implement, |
and maintain the insurer’s information security program; |
(2) Require the insurer’s executive management or its designees to report in writing at least |
annually, the following information: |
(i) The overall status of the information security program and the insurer’s compliance with |
this chapter; and |
(ii) Material matters related to the information security program, addressing issues such as |
risk assessment, risk management and control decisions, third-party service provider arrangements, |
results of testing, cybersecurity events or violations and management’s responses thereto, or |
recommendations for changes in the information security program; and |
(3) If executive management delegates any of its responsibilities pursuant to this section, |
it shall oversee the development, implementation, and maintenance of the insurer’s information |
security program prepared by the designee(s) and shall receive a report from the designee(s) |
complying with the requirements of the report to the board of directors. |
(f) Oversight of third-party service provider arrangements. |
(1) An insurer shall exercise due diligence in selecting its third-party service provider; and |
(2) An insurer shall take reasonable steps to request a third-party service provider to |
implement appropriate administrative, technical, and physical measures to protect and secure the |
information systems and nonpublic information that are accessible to, or held by, the third-party |
service provider. |
(g) Program adjustments. The insurer shall monitor, evaluate, and adjust, as appropriate, |
the information security program consistent with any relevant changes in technology, the sensitivity |
of its nonpublic information, internal or external threats to information, and the insurer’s own |
changing business arrangements, such as mergers and acquisitions, alliances and joint ventures, |
outsourcing arrangements, and changes to information systems. |
(h) Incident response plan. |
(1) As part of its information security program, each insurer shall establish a written |
incident response plan designed to promptly respond to, and recover from, any cybersecurity event |
that compromises the confidentiality, integrity, or availability of nonpublic information in its |
possession, the insurer’s information systems, or the continuing functionality of any aspect of the |
insurer’s business or operations. |
(2) Such incident response plan shall address the following areas: |
(i) The internal process for responding to a cybersecurity event; |
(ii) The goals of the incident response plan; |
(iii) The definition of clear roles, responsibilities, and levels of decision-making authority; |
(iv) External and internal communications and information sharing; |
(v) Identification of requirements for the remediation of any identified weaknesses in |
information systems and associated controls; |
(vi) Documentation and reporting regarding cybersecurity events and related incident |
response activities; and |
(vii) The evaluation and revision as necessary of the incident response plan following a |
cybersecurity event. |
(3) If the insurer learns that a cybersecurity event has or may have occurred, the insurer, or |
an outside vendor and/or service provider designated to act on behalf of the insurer, shall conduct |
a prompt investigation. For purposes of this section, “cybersecurity event” means an event resulting |
in unauthorized access to, disruption or misuse of an information system or nonpublic information |
stored on such information system. This does not include the unauthorized acquisition of encrypted |
nonpublic information if the encryption, process, or key is not also acquired, released, or used |
without authorization. This also does not include an event with regard to which the insurer has |
determined that the nonpublic information accessed by an unauthorized person has not been used |
or released and has been returned or destroyed. |
(i) During the investigation, the insurer, or an outside vendor and/or service provider |
designated to act on behalf of the insurer, shall, at a minimum, determine as much of the following |
information as possible: |
(A) Whether a cybersecurity event has occurred; |
(B) Assess the nature and scope of the cybersecurity event; |
(C) Identify any nonpublic information that may have been involved in the cybersecurity |
event; and |
(D) Perform or oversee reasonable measures to restore the security of the information |
systems compromised in the cybersecurity event in order to prevent further unauthorized |
acquisition, release, or use of nonpublic information in the insurer’s possession, custody, or control. |
(ii) If the insurer learns that a cybersecurity event has or may have occurred in a system |
maintained by a third-party service provider, and it has or may have impacted the insurer’s |
nonpublic information, the insurer shall make reasonable efforts to complete the steps set forth in |
subsection (a) subsection (h)(3)(i) of this section or make reasonable efforts to confirm and |
document that the third-party service provider has completed those steps. |
(iii) The insurer shall maintain records concerning all cybersecurity events for a period of |
at least five (5) years from the date of the cybersecurity event. The insurer shall produce those |
records upon demand of the commissioner pursuant to chapter 13.1 of this title or other statutory |
authority. |
(i) Annually, each insurer domiciled in this state shall submit to the commissioner a written |
statement by April 15 certifying that the insurer is in compliance with the requirements set forth in |
this section. Each insurer shall maintain for examination by the department all records, schedules, |
and data supporting this certificate for a period of five (5) years. To the extent an insurer has |
identified areas, systems, or processes that require material improvement, updating, or redesign, |
the insurer shall document the identification and the remedial efforts planned and underway to |
address such areas, systems, or processes. This documentation must be available for inspection by |
the commissioner pursuant to a request under chapter 13.1 of this title or other statutory authority. |
(j) If an insurer domiciled in this state has an information security program that is prepared |
for and in compliance with Pub. L. No. 104-191, 110 Stat. 1936, enacted August 21, 1996 (Health |
Insurance Portability and Accountability Act) and related privacy, security, and breach notification |
regulations pursuant to Code of Federal Regulations, Parts 160 and 164, and Pub. L. No. 111-5, |
123 Stat. 226, enacted February 17, 2009 (Health Information Technology), insurers can rely on |
that plan to certify their compliance with subsection (i) of this section. |
27-1-47. Notification of a cybersecurity event. |
(a) Each domestic insurer shall notify the commissioner as promptly as possible but in no |
event later than three (3) business days from a determination that a cybersecurity event has occurred |
when either of the following criteria has been met: |
(1) A cybersecurity event impacting the insurer of which notice is required to be provided |
to any government body, self-regulatory agency, or any other supervisory body pursuant to any |
state or federal law; or |
(2) A cybersecurity event that has a reasonable likelihood of materially harming: |
(i) Any consumer residing in this state; or |
(ii) Any material part of the normal operation(s) of the insurer. |
(b) The insurer shall provide any information required by this section in electronic form as |
directed by the commissioner. The insurer shall have a continuing obligation to update and |
supplement initial and subsequent notifications to the commissioner concerning the cybersecurity |
event. The insurer shall provide as much of the following information as possible. The insurer |
should indicate whether it is making claims under chapter 2 of title 38 to any of the information |
provided. The following information shall be provided: |
(1) Date of the cybersecurity event; |
(2) Description of how the information was exposed, lost, stolen, or breached, including |
the specific roles and responsibilities of third-party service providers, if any; |
(3) How the cybersecurity event was discovered; |
(4) Whether any lost, stolen, or breached information has been recovered and if so, how |
this recovery was achieved; |
(5) The identity of the source of the cybersecurity event; |
(6) Whether the insurer has filed a police report or has notified any regulatory, government, |
or law enforcement agencies and, if so, when such notification was provided; |
(7) Description of the specific types of information acquired without authorization. |
Specific types of information consisting of particular data elements including, for example, types |
of medical information, types of financial information, or types of information allowing |
identification of the consumer; |
(8) The period during which the information system was compromised by the cybersecurity |
event; |
(9) The number of total consumers in this state affected by the cybersecurity event. The |
insurer shall provide the best estimate in the initial report to the commissioner and update this |
estimate with each subsequent report to the commissioner pursuant to this section; |
(10) The results of any internal review identifying a lapse in either automated controls or |
internal procedures, or confirming that all automated controls or internal procedures were followed; |
(11) Description of efforts being undertaken to remediate the situation that permitted the |
cybersecurity event to occur; |
(12) A copy of the insurer privacy policy and a statement outlining the steps the insurer |
will take to investigate and notify consumers affected by the cybersecurity event; and |
(13) Name of a contact person who is both familiar with the cybersecurity event and |
authorized to act for the insurer. |
(c) An insurer shall comply with chapter 49.3 of title 11, as applicable, and provide a copy |
of the notice sent to consumers under that chapter to the commissioner, when an insurer is required |
to notify the commissioner. |
(d) Notice regarding cybersecurity events of third-party service providers. |
(1) In the case of a cybersecurity event involving an insurer’s nonpublic information in a |
system maintained by a third-party service provider, of which the insurer has become aware, the |
insurer shall treat that event as it would under subsection (a) of this section; |
(2) The computation of the insurer’s deadlines shall begin on the day after the third-party |
service provider notifies the insurer of the cybersecurity event or the insurer otherwise has actual |
knowledge of the cybersecurity event, whichever is sooner; |
(3) Nothing in this chapter shall prevent or abrogate an agreement between an insurer and |
another insurer, a third-party service provider, or any other party to fulfill any of the investigation |
requirements or notice requirements imposed under this section. |
(e) Notice regarding cybersecurity events of reinsurers to insurers. |
(1)(i) In the case of a cybersecurity event involving nonpublic information that is used by |
the insurer that is acting as an assuming insurer or in the possession, custody, or control of an |
insurer that is acting as an assuming insurer and that does not have a direct contractual relationship |
with the affected consumers, the assuming insurer shall notify its affected ceding insurers and the |
commissioner of its state of domicile within seventy-two (72) hours of making the determination |
that a cybersecurity event has occurred; |
(ii) The ceding insurers that have a direct contractual relationship with affected consumers |
shall fulfill the consumer notification requirements imposed under chapter 49.3 of title 11 (“Identity |
Theft Protection Act of 2015”), and any other notification requirements relating to a cybersecurity |
event imposed under this section. |
(2)(i) In the case of a cybersecurity event involving nonpublic information that is in the |
possession, custody, or control of a third-party service provider of an insurer that is an assuming |
insurer, the assuming insurer shall notify its affected ceding insurers and the commissioner of its |
state of domicile within seventy-two (72) hours of receiving notice from its third-party service |
provider that a cybersecurity event has occurred; |
(ii) The ceding insurers that have a direct contractual relationship with affected consumers |
shall fulfill the consumer notification requirements imposed under chapter 49.3 of title 11 and any |
other notification requirements relating to a cybersecurity event imposed under this section. |
(f) Notice regarding cybersecurity events of insurers to producers of record. |
(1) In the case of a cybersecurity event involving nonpublic information that is in the |
possession, custody, or control of an insurer that is an insurer or its third-party service provider |
and for which a consumer accessed the insurer’s services through an independent insurance |
producer, the insurer shall notify the producers of record of all affected consumers as soon as |
practicable as directed by the commissioner. |
(2) The insurer is excused from this obligation for those instances in which it does not have |
the current producer of record information for any individual consumer. |
SECTION 3. Section 27-1.1-3 of the General Laws in Chapter 27-1.1 entitled "Credit for |
Reinsurance Act" is hereby amended to read as follows: |
27-1.1-3. Qualified United States financial institutions. |
(a) For the purposes of § 27-1.1-2(3), “qualified United States financial institution” means |
an institution that: |
(1) Is organized, or in the case of a U.S. office of a foreign banking organization is licensed, |
under the laws of the United States or any of its states; |
(2) Is regulated, supervised, and examined by United States federal or state authorities |
having regulatory authority over banks and trust companies; and |
(3) Has been determined by either the commissioner, or the securities valuation office |
Securities Valuation Office of the National Association of Insurance Commissioners, to meet |
those such standards of financial condition and that standing as are considered necessary and |
appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable |
to the commissioner. |
(b) “Qualified United States financial institution” means, for the purposes of those |
provisions of this law specifying those institutions that are eligible to act as a fiduciary of a trust, |
an institution that: |
(1) Is organized, or in the case of a United States branch or agency office of a foreign |
banking organization is licensed, under the laws of the United States or any of its states and has |
been granted authority to operate with fiduciary powers; and |
(2) Is regulated, supervised, and examined by federal or state authorities having regulatory |
authority over banks and trust companies. |
SECTION 4. Section 27-2.5-2 of the General Laws in Chapter 27-2.5 entitled "Interstate |
Compact on Insurance Product Regulations" is hereby amended to read as follows: |
27-2.5-2. Compact enacted. |
The interstate compact on insurance product regulation is hereby enacted into law and |
entered into with all other jurisdictions legally joining therein in form substantially as follows: |
Preamble |
This act is intended to help states join together to establish an interstate compact to regulate |
designated insurance products. |
Pursuant to terms and conditions of this act, the state of Rhode Island seeks to join with |
other states and establish the Interstate Insurance Product Regulation Compact, and thus become a |
member of the Interstate Insurance Product Regulation Commission. The Rhode Island Insurance |
Commissioner is hereby designated to serve as the representative of this state to the commission. |
Interstate Insurance Product Regulation Compact |
ARTICLE I. |
PURPOSES |
The purposes of this compact are, through means of joint and cooperative action among |
the compacting states: |
(1) To promote and protect the interest of consumers of individual and group annuity, life |
insurance, disability income and long-term care insurance products; |
(2) To develop uniform standards for insurance products covered under the compact; |
(3) To establish a central clearinghouse to receive and provide prompt review of insurance |
products covered under the compact and, in certain cases, advertisements related thereto, submitted |
by insurers authorized to do business in one or more compacting states; |
(4) To give appropriate regulatory approval to those product filings and advertisements |
satisfying the applicable uniform standard; |
(5) To improve coordination of regulatory resources and expertise between state insurance |
departments regarding the setting of uniform standards and review of insurance products covered |
under the compact; |
(6) To create the Interstate insurance product regulation commission; and |
(7) To perform these and such other related functions as may be consistent with the state |
regulation of the business of insurance. |
ARTICLE II. |
DEFINITIONS |
For purposes of this compact: |
(1) “Advertisement” means any material designed to create public interest in a product, or |
induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace or retain a |
policy, as more specifically defined in the rules and operating procedures of the commission. |
(2) “Bylaws” mean those bylaws established by the commission for its governance, or for |
directing or controlling the commissions’ commission’s actions or conduct. |
(3) “Compacting state” means any state which has enacted this compact legislation and |
which has not withdrawn pursuant to Article XIV, Section 1, or been terminated pursuant to Article |
XIV, Section 2. |
(4) “Commission” means the “Interstate Insurance Product Regulation Commission” |
established by this compact. |
(5) “Commissioner” means the chief insurance regulatory official of a state including, but |
not limited to, commissioner, superintendent, director or administrator. |
(6) “Domiciliary state” means the state in which an insurer is incorporated or organized; |
or, in the case of an alien insurer, its state of entry. |
(7) “Insurer” means any entity licensed by a state to issue contracts of insurance for any of |
the lines of insurance covered by this act. |
(8) “Member” means the person chosen by a compacting state as its representative to the |
commission, or his or her designee. |
(9) “Noncompacting state” means any state which is not at the time a compacting state. |
(10) “Operating procedures” mean procedures promulgated by the commission |
implementing a rule, uniformed uniform standard or a provision of this compact. |
(11) “Product” means the form of a policy or contract, including any application, |
endorsement, or related from form which is attached to and made a part of the policy or contract, |
and any evidence of coverage of or certificate, for an individual or group annuity, life insurance, |
disability income or long-term care insurance product that an insurer is authorized to issue. |
(12) “Rule” means a statement of general or particular applicability and future effect |
promulgated by the commission, including a uniform standard developed pursuant to Article VII |
of this compact, designed to implement, interpret, or prescribe law or policy or describing the |
organization, procedure, or practice requirements of the commission, which shall have the force |
and effect of law in the compacting states. |
(13) “State” means any state, district or territory of the United States of America. |
(14) “Third-party filer” means an entity that submits a product filing to the commission on |
behalf of an insurer. |
(15) “Uniform standard” means a standard adopted by the commission for a product line, |
pursuant to Article VII of this compact, and shall include all of the product requirements in |
aggregate; provided, that each uniform standard shall be construed, whether express or implied, to |
prohibit the use of any inconsistent, misleading or ambiguous provisions in a product and the form |
of the product made available to the public shall not be unfair, inequitable or against public policy |
as determined by the commission. |
ARTICLE III. |
ESTABLISHMENT OF THE COMMISSION AND VENUE |
(1) The compacting states hereby create and establish a joint public agency known as the |
“Interstate Insurance Product Regulation Commission.” Pursuant to Article IV, the commission |
will have the power to develop uniform standards for product lines, receive and provide prompt |
review of products filed therewith, and give approval to those product filings satisfying applicable |
uniform standards; provided, it is not intended for the commission to be the exclusive entity for |
receipt and review of insurance product filings. Nothing herein shall prohibit any insurer from filing |
its product in any state wherein the insurer is licensed to conduct the business of insurance; and any |
such filing shall be subject to the laws of the state where filed. |
(2) The commission is a body corporate and politic, and an instrumentality of the |
compacting states. |
(3) The commission is a not-for-profit entity, separate and distinct from the individual |
compacting states. |
(4) The commission is solely responsible for its liabilities except as otherwise specifically |
provided in this compact. |
(5) Venue is proper and judicial proceedings by or against the commission shall be brought |
solely and exclusively in a court of competent jurisdiction where the principal office of the |
commission is located. |
ARTICLE IV. |
POWERS OF THE COMMISSION |
The commission shall have the following powers: |
(1) To promulgate rules, pursuant to Article VII of this compact, which shall have the force |
and effect of law and shall be binding in the compacting states to the extent and in the manner |
provided in this compact; |
(2) To exercise its rule-making authority and establish reasonable uniform standards for |
products covered under the compact, and advertisement related thereto, which shall have the force |
and effect of law and shall be binding in the compacting states, but only for those products filed |
with the commission, provided, that a compacting state shall have the right to opt out of such |
uniform standard pursuant to Article VII, to the extent and in the manner provided in this compact |
and, provided, further, that any uniform standard established by the commission for long-term care |
insurance products may provide the same or greater protections for consumers as, but shall not |
provide less than, those protections set forth in the National Association of Insurance |
Commissioners’ Long-Term Care Insurance Model Act and Long-Term Care Insurance Model |
Regulation, respectively, adopted as of 2001. The commission shall consider whether any |
subsequent amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care |
Insurance Model Regulation adopted by the NAIC require amending of the uniform standards |
established by the commission for long-term care insurance products; |
(3) To receive and review in an expeditious manner products filed with the commission, |
and rate filings for disability income and long-term care insurance products, and give approval of |
those products and rate filings that satisfy the applicable uniform standard, where such approval |
shall have the force and effect of law and be binding on the compacting states to the extent and in |
the manner provided in the compact; |
(4) To receive and review in an expeditious manner advertisement relating to long-term |
care insurance products for which uniform standards have been adopted by the commission, and |
give approval to all advertisement that satisfies the applicable uniform standard. For any product |
covered under this compact, other than long-term care insurance products, the commission shall |
have the authority to require an insurer to submit all or any part of its advertisement with respect |
to that product for review or approval prior to use, if the commission determines that the nature of |
the product is such that an advertisement of the product could have the capacity or tendency to |
mislead the public. The actions of the commission as provided in this section shall have the force |
and effect of law and shall be binding in the compacting states to the extent and in the manner |
provided in the compact; |
(5) To exercise its rule-making authority and designate products and advertisement that |
may be subject to a self-certification process without the need for prior approval by the commission; |
(6) To promulgate operating procedures, pursuant to Article VII of the compact, which |
shall be binding in the compacting states to the extent and in the manner provided in this compact; |
(7) To bring and prosecute legal proceedings or actions in its name as the commission; |
provided, that the standing of any state insurance department to sue or be sued under applicable |
law shall not be affected; |
(8) To issue subpoenas requiring the attendance and testimony of witnesses and the |
production of evidence; |
(9) To establish and maintain offices; |
(10) To purchase and maintain insurance and bonds; |
(11) To borrow, accept or contract for services of personnel, including, but not limited to, |
employees of a compacting state; |
(12) To hire employees, professionals or specialists, and elect or appoint officers, and to |
fix their compensation, define their duties and give them appropriate authority to carry out the |
purposes of the compact, and determine their qualifications; and to establish the commission’s |
personnel policies and programs relating to, among other things, conflicts of interest, rates of |
compensation and qualifications of personnel; |
(13) To accept any and all appropriate donations and grants of money, equipment, supplies, |
materials, and services, and to receive, utilize and dispose of the same; provided, that at all times |
the commission shall strive to avoid any appearance of impropriety; |
(14) To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, |
improve or use, any property, real, personal or mixed; provided, that at all times the commission |
shall strive to avoid any appearance of impropriety; |
(15) To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of |
any property, real, personal or mixed; |
(16) To remit filing fees to compacting states as may be set forth in the bylaws, rules or |
operating procedures; |
(17) To enforce compliance by compacting states with rules, uniform standards, operating |
procedures and bylaws; |
(18) To provide for dispute resolution among compacting states; |
(19) To advise compacting states on issues relating to insurers domiciled or doing business |
in noncompacting jurisdictions, consistent with the purposes of the compact; |
(20) To provide advice and training to those personnel in state insurance departments |
responsible for product review, and to be a resource for state insurance departments; |
(21) To establish a budget and make expenditures; |
(22) To borrow money; |
(23) To appoint committees including advisory committees comprising members, state |
insurance regulators, state legislators or their representatives, insurance industry and consumer |
representatives, and such other interested persons as may be designated in the bylaws; |
(24) To provide and receive information from, and to cooperate with law enforcement |
agencies; |
(25) To adopt and use a corporate seal; and |
(26) To perform such other functions as may be necessary or appropriate to achieve the |
purposes of this compact consistent with the state regulation of the business of insurance. |
ARTICLE V. |
ORGANIZATION OF THE COMMISSION |
(1) Membership, voting and bylaws. |
(a) Each compacting state shall have [be] and be limited to one member. Each member |
shall be qualified to serve in that capacity pursuant to applicable law of the compacting state. Any |
member may be removed or suspended from office as provided by the law of the state from which |
he or she shall be appointed. Any vacancy occurring in the commission shall be filled in accordance |
with the laws of the compacting state wherein the vacancy exists. Nothing herein shall be construed |
to affect the manner in which a compacting state determines the election or appointment and |
qualification of its own commissioner. |
(b) Each member shall be entitled to one vote and shall have an opportunity to participate |
in the governance of the commission in accordance with the bylaws. Notwithstanding any provision |
herein to the contrary, no action of the commission with respect to the promulgation of a uniform |
standard shall be effective unless two-thirds (⅔) of the members vote in favor thereof. |
(c) The commission shall, by a majority of the members, prescribe bylaws to govern its |
conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of |
the compact, including, but not limited to: |
(i) Establishing the fiscal year of the commission; |
(ii) Providing reasonable procedures for appointing and electing members, as well as |
holding meetings, of the management committee; |
(iii) Providing reasonable standards and procedures: (i) for the establishment and meetings |
of other committees; and (ii) governing any general or specific delegation of any authority or |
function of the commission; |
(iv) Providing reasonable procedures for calling and conducting meetings of the |
commission that consists of a majority of commission members, ensuring reasonable advance |
notice of each such meeting and providing for the rights of citizens to attend such meeting with |
enumerated exceptions designed to protect the public’s interest, the privacy of individuals, and |
insurers’ proprietary information, including trade secrets. The commission may meet in camera |
only after a majority of the entire membership votes to close a meeting en toto or in part. As soon |
as practicable, the commission must make public: (i) a copy of the vote to close the meeting |
revealing the vote of each member with no proxy votes allowed; and (ii) votes taken during such |
meeting; |
(v) Establishing the titles, duties and authority and reasonable procedures for the election |
of the officers of the commission; |
(vi) Providing reasonable standards and procedures for the establishment of the personnel |
policies and programs of the commission. Notwithstanding any civil service or other similar laws |
of any compacting state, the bylaws shall exclusively govern the personnel policies and programs |
of the commission; |
(vii) Promulgating a code of ethics to address permissible and prohibited activities of |
commission members and employees; and |
(viii) Providing a mechanism for winding up the operations of the commission and the |
equitable disposition of any surplus funds that may exist after the termination of the compact after |
the payment and/or reserving of all of its debts and obligations. |
(d) The commission shall publish its bylaws in a convenient form and file a copy thereof |
and a copy of any amendment thereto, with the appropriate agency or officer in each of the |
compacting states. |
(2) Management committee, officers and personnel. |
(a) A management committee comprising no more than fourteen (14) members shall be |
established as follows: |
(i) One member from each of the six (6) compacting states with the largest premium |
volume for individual and group annuities, life, disability income and long-term care insurance |
products, determined from the records of the NAIC for the prior year; |
(ii) Four (4) members from those compacting states with at least two percent (2%) of the |
market based on the premium volume described above, other than the six (6) compacting states |
with the largest premium volume, selected on a rotating basis as provided in the bylaws, and; |
(iii) Four (4) members from those compacting states with less than two percent (2%) of the |
market, based on the premium volume described above, with one selected form [from] from each |
of the four (4) zone regions of the NAIC as provided in the bylaws. |
(b) The management committee shall have such authority and duties as may be set forth in |
the bylaws, including, but not limited to: |
(i) Managing the affairs of the commission in a manner consistent with the bylaws and |
purposes of the commission; |
(ii) Establishing and overseeing an organizational structure within, and appropriate |
procedures for, the commission to provide for the creation of uniform standards and other rules, |
receipt and review of product filings, administrative and technical support functions, review of |
decisions regarding the disapproval of a product filing, and the review of elections made by a |
compacting state to opt out of a uniform standard; provided, that a uniform standard shall not be |
submitted to the compacting states for adoption unless approved by two-thirds (⅔) of the members |
of the management committee; |
(iii) Overseeing the offices of the commission; and |
(iv) planning, implementing, and coordinating communications and activities with other |
state, federal and local government organizations in order to advance the goals of the commission. |
(c) The commission shall elect annually officers from the management committee, with |
each having such authority and duties, as may be specified in the bylaws. |
(d) The management committee may, subject to the approval of the commission, appoint |
or retain an executive director for such period, upon such terms and conditions and for such |
compensation as the commission may deem appropriate. The executive director shall serve as |
secretary to the commission, but shall not be a member of the commission. The executive director |
shall hire and supervise such other staff as may be authorized by the commission. |
(3) Legislative and advisory committees. |
(a) A legislative committee comprising state legislators or their designees shall be |
established to monitor the operations of, and make recommendations to, the commission, including |
the management committee; provided, that the manner of selection and term of any legislative |
committee member shall be as set forth in the bylaws. Prior to the adoption by the commission of |
any uniform standard, revision to the bylaws, annual budget or other significant matter as may be |
provided in the bylaws, the management committee shall consult with and report to the legislative |
committee. |
(b) The commission shall establish two (2) advisory committees, one of which shall |
comprise consume [consumer] consumer representatives independent of the insurance industry, |
and the other comprising insurance industry representatives. |
(c) The commission may establish additional advisory committees as its bylaws may |
provide for the carrying out of its functions. |
(4) Corporate records of the commission. |
The commission shall maintain its corporate books and records in accordance with the |
bylaws. |
(5) Qualified immunity, defense and indemnification. |
(a) The members, officers, executive director, employees and representatives of the |
commission shall be immune from suit and liability, either personally or in their official capacity, |
for any claim for damage to or loss of property or personal injury or other civil liability caused by |
or arising out of any actual or alleged act, error or omission that occurred, or that the person against |
whom the claim is made had a reasonable basis for believing occurred within the scope of |
commission employment, duties or responsibilities; provided, that nothing in this paragraph shall |
be construed to protect any such person from suit and/or liability for any damage, loss, injury or |
liability caused by the intentional or willful and wanton misconduct of that person. |
(b) The commission shall defend any member, officer, executive director, employee or |
representative of the commission in any civil action seeking to impose liability arising out of any |
actual or alleged act, error or omission that occurred within the scope of commission employment, |
duties or responsibilities, or that the person against whom the claim is made had a reasonable basis |
for believing occurred within the scope of commission employment, duties or responsibilities; |
provided, that nothing herein shall be construed to prohibit that person from retaining his or her |
own counsel; and provided, further, that the actual or alleged act, error or omission did not result |
form [from] from that person’s intentional or willful and wanton misconduct. |
(c) The commission shall indemnify and hold harmless any member, officer, executive |
director, employee or representative of the commission for the amount of any settlement or |
judgment obtained against that person arising out of any actual or alleged act, error or omission |
that occurred within the scope of commission employment, duties or responsibilities, or that such |
person had a reasonable basis for believing occurred within the scope of commission employment, |
duties or responsibilities, provided, that the actual or alleged act, error or omission did not result |
from the intentional or willful and wanton misconduct of that person. |
ARTICLE VI. |
MEETINGS AND ACTS OF THE COMMISSION |
(1) The commission shall meet and take such actions as are consistent with the provisions |
of this compact and the bylaws. |
(2) Each member of the commission shall have the right and power to cast a vote to which |
that compacting state is entitle [entitled] entitled and to participate in the business and affairs of |
the commission. A member shall vote in person or by such other means as provided in the bylaws. |
The bylaws may provide for members’ participation in meetings by telephone or other means of |
communication. |
(3) The commission shall meet at least once during each calendar year. Additional meetings |
shall be held as set forth in the bylaws. |
ARTICLED VII. |
RULES AND OPERATING PROCEDURES: RULEMAKING FUNCTIONS OF THE |
COMMISSION AND OPTING OUT OF UNIFORM STANDARDS |
(1) Rulemaking authority. The commission shall promulgate reasonable rules, including |
uniform standards, and operating procedures in order to effectively and efficiently achieve the |
purposes of this compact. Notwithstanding the foregoing, in the event the commission exercises its |
rulemaking authority in a manner that is beyond the scope of the purposes of this act, or the powers |
granted hereunder, then such an action by the commission shall be invalid and have no force and |
effect. |
(2) Rulemaking procedure. Rules and operating procedures shall be made pursuant to a |
rulemaking process that conforms to the Model State Administrative Procedure Act of 1981 as |
amended, as may be appropriate to the operations of the commission. Before the commission adopts |
a uniform standard, the commission shall give written notice to the relevant state legislative |
committee(s) in each compacting state responsible for insurance issues of its intention to adopt the |
uniform standard. The commission in adopting a uniform standard shall consider fully all submitted |
materials and issue a concise explanation of its decision. |
(3) Effective date and opt out of a uniform standard. A uniform standard shall become |
effective ninety (90) days after its promulgation by the commission or such later date as the |
commission may determine; provided, however, that a compacting state may opt out of a uniform |
standard as provided in this Article. “Opt out” shall be defined as any action by a compacting state |
to decline to adopt or participate in a promulgated uniform standard. All other rules and operating |
procedures, and amendments thereto, shall become effective as of the date specified in each rule, |
operating procedure or amendment. |
(4) Opt out procedure. A compacting state may opt out of a uniform standard, either by |
legislation or regulation duly promulgated by the insurance department under the Compacting |
State’s Administrative Procedure Act. If a compacting state elects to opt out of a uniform standard |
by regulation, it must: (a) give written notice to the commission no later than ten (10) business days |
after the uniform standard is promulgated, or at the time the state becomes a compacting state; and |
(b) find that the uniform standard does not provide reasonable protections to the citizens of the |
state, given the conditions in the state. The commissioner shall make specific findings of fact and |
conclusions of law, based on a preponderance of the evidence, detailing the conditions in the state |
which warrant a departure from the uniform standard and determining that the uniform standard |
would not reasonably protect the citizens of the state. The commissioner must consider and balance |
the following factors and find that the conditions in the state and needs of the citizens of the state |
outweigh: (i) the intent of the legislature to participate in, and the benefits of, an interstate |
agreement to establish national uniform consumer protections for the products subject to this act; |
and (ii) the presumption that a uniform standard adopted by the commission provides reasonable |
protections to consumers of the relevant product. |
Notwithstanding the foregoing, a compacting state, may, at the time of its enactment of this |
compact, prospectively opt out of all uniform standards involving long-term care insurance |
products by expressly providing for such opt out in the enacted compact, and such an opt out shall |
not be treated as a material variance in the offer or acceptance of any state to participate in this |
compact. Such an opt out shall be effective at the time of enactment of this compact by the |
compacting state and shall apply to all existing uniform standards involving long-term care |
insurance products and those subsequently promulgated. |
(5) Effect of opt out. If a compacting state elects to opt out of a uniform standard, the |
uniform standard shall remain applicable in the compacting state electing to opt out until such time |
the opt out legislation is enacted into law or the regulation opting out becomes effective. |
Once the opt out of a uniform standard by a compacting state becomes effective as provided |
under the laws of that state, the uniform standard shall have no further force and effect in that state |
unless and until the legislation or regulation implementing the opt out is repealed or otherwise |
becomes ineffective under the laws of the state. If a compacting state opts out of a uniform standard |
after the uniform standard has been made effective in that state, the opt out shall have the same |
prospective effect as provided under Article XIV for withdrawals. |
(6) Stay of uniform standard. If a compacting state has formally initiated the process of |
opting out of a uniform standard by regulation, and while the regulatory opt out is pending, the |
compacting state may petition the commission, at least fifteen (15) days before the effective date |
of the uniform standard, to stay the effectiveness of the uniform standard in that state. The |
commission may grant a stay if it determines the regulatory opt out is being pursued in a reasonable |
manner and there is a likelihood of success. If a stay is granted or extended by the commission, the |
stay or extension thereof may postpone the effective date by up to ninety (90) days, unless |
affirmatively extended by the commission; provided, a stay may not be permitted to remain in |
effect for more than one (1) year unless the compacting state can show extraordinary circumstances |
which warrant a continuance of the stay, including, but not limited to, the existence of a legal |
challenge which prevents the compacting state from opting out. A stay may be terminated by the |
commission upon notice that the rulemaking process has been terminated. |
(7) Not later than thirty (30) days after a rule or operating procedure is promulgated any |
person may file a petition for judicial review of the rule or operating procedure; provided, that the |
filing of such a petition shall not stay or otherwise prevent the rule or operating procedure from |
becoming effective unless the court finds that the petitioner has a substantial likelihood of success. |
The court shall give deference to the actions of the commission consistent with applicable law and |
shall not find the rule or operating procedure to be unlawful if the rule or operating procedure |
represents a reasonable exercise of the commission’s authority. |
ARTICLE VIII. |
COMMISSION RECORDS AND ENFORCEMENT |
(1) The commission shall promulgate rules establishing conditions and procedures for |
public inspection and copying of its information and official records, except such information and |
records involving the privacy of individuals and insurers’ trade secrets. The commission may |
promulgate additional rules under which it may make available to federal and state agencies |
including law enforcement agencies, records and information otherwise exempt from disclosure |
and may enter into agreements with such agencies to receive or exchange information or records |
subject to nondisclosure and confidentiality provisions. |
(2) Except as to privileged records, data and information, the laws of any compacting state |
pertaining to confidentiality or nondisclosure shall not relieve any compacting state commissioner |
of the duty to disclose any relevant records, data or information to the commission; provided, that |
disclosure to the commission shall not be deemed to waive or otherwise affect any confidentiality |
requirement; and further provided, that, except as otherwise expressly provided in this act, the |
commission shall not be subject to the compacting state’s laws pertaining to confidentiality and |
nondisclosure with respect to records, data and information in its possession. Confidential |
information of the commission shall remain confidential after such information is provided to any |
commissioner. |
(3) The commission shall monitor compacting states for compliance with duly adopted |
bylaws, rules, including uniform standards, and operating procedures. The commission shall notify |
any noncomplying compacting state in writing of its noncompliance with commission bylaws, rules |
or operating procedures. If a noncomplying compacting state fails to remedy its noncompliance |
within the time specified in the notice of noncompliance, the compacting state shall be deemed to |
be in default as set forth in Article XIV. |
(4) The commissioner of any state in which an insurer is authorized to do business, or is |
conducting the business of insurance, shall continue to exercise his or her authority to oversee the |
market regulation of the activities of the insurer in accordance with the provisions of the state’s |
law. The commissioner’s enforcement of compliance with the compact is governed by the state |
following provisions: |
(a) With respect to the commissioner’s market regulation of a product or advertisement |
that is approved or certified to the commission, the content of the product or advertisement shall |
not constitute a violation of the provisions, standards or requirements of the compact except upon |
a final order of the commission, issued at the request of a commissioner after prior notice to the |
insurer and an opportunity for hearing before the commission. |
(b) Before a commissioner may bring an action for violation of any provision, standard or |
requirement of the compact relating to the content of an advertisement not approved or certified to |
the commission, the commission, or an authorized commission officer or employee, must authorize |
the section action. However, authorization pursuant to this paragraph does not require notice to the |
insurer, opportunity for hearing or disclosure of requests for authorization or records of the |
commission’s action on such requests. |
ARTICLE IX. |
DISPUTE RESOLUTION |
The commission shall attempt, upon the request of a member, to resolve any disputes or |
other issues that are subject to this compact and which may arise between two (2) or more |
compacting states, or between compacting states and noncompacting states, and the commission |
shall promulgate an operating procedure providing for resolution of such disputes. |
ARTICLE X. |
PRODUCT FILING AND APPROVAL |
(1) Insurers and third-party filers seeking to have a product approved by the commission |
shall file the product with, and pay applicable filing fees to, the commission. Nothing in this act |
shall be construed to restrict or otherwise prevent an insurer from filing its product with the |
insurance department in any state wherein the insurer is licensed to conduct the business of |
insurance, and such filing shall be subject to the laws of the states where filed. |
(2) The commission shall establish appropriate filing and review processes and procedures |
pursuant to commission rules and operating procedures. Notwithstanding any provision herein to |
the contrary, the commission shall promulgate rules to establish conditions and procedures under |
which the commission will provide public access to product filing information. In establishing such |
rules, the commission shall consider the interests of the public in having access to such information, |
as well as protection of personal medical and financial information and trade secrets, that may be |
contained in a product filing or supporting information. |
(3) Any product approved by the commission may be sold or otherwise issued in those |
compacting states for which the insurer is legally authorized to do business. |
ARTICLE XI. |
REVIEW OF COMMISSION DECISIONS REGARDING FILINGS |
(1) Not later than thirty (30) days after the commission has given notice of a disapproved |
product or advertisement filed with the commission, the insurer or third party filer whose filing was |
disapproved may appeal the determination to a review panel appointed by the commission. The |
commission shall promulgate rules to establish procedures for appointing such review panels and |
provide for notice and hearing. An allegation that the commission, in disapproving a product or |
advertisement filed with the commission, acted arbitrarily, capriciously, or in a manner that is an |
abuse of discretion or otherwise not in accordance with the law, is subject to judicial review in |
accordance with Article III, Section 5. |
(2) The commission shall have authority to monitor, review and reconsider products and |
advertisement subsequent to their filing or approval upon a finding that the product does not meet |
the relevant uniform standard. Where appropriate, the commission may withdraw or modify its |
approval after proper notice and hearing, subject to the appeal process in section 1 above. |
ARTICLE XII. |
FINANCE |
(1) The commission shall pay or provide for the payment of the reasonable expenses of its |
establishment and organization. To fund the cost of its initial operations, the commission may |
accept contributions and other forms of funding from the National Association of Insurance |
Commissioners, compacting states and other sources. Contributions and other forms of funding |
from other sources shall be of such a nature that the independence of the commission concerning |
the performance of its duties shall not be compromised. |
(2) The commission shall collect a filing fee from each insurer and third party filer filing a |
product with the commission to cover the cost of the operations and activities of the commission |
and its staff in a total amount sufficient to cover the commission’s annual budget. |
(3) The commission’s budget for a fiscal year shall not be approved until it has been subject |
to notice and comment as set forth in Article VII of this compact. |
(4) The commission shall be exempt from all taxation in and by the compacting states. |
(5) The commission shall not pledge the credit of any compacting state, except by and with |
the appropriate legal authority of that compacting state. |
(6) The commission shall keep complete and accurate accounts of all its internal receipts, |
including grants and donations, and disbursements of all funds under its control. The internal |
financial accounts of the commission shall be subject to the accounting procedures established |
under its bylaws. The financial accounts and reports including the system of internal controls and |
procedures of the commission shall be audited annually by an independent certified public |
accountant. Upon the determination of the commission, but no less frequently than every three (3) |
years, the review of the independent auditor shall include a management and performance audit of |
the commission. The commission shall make an annual report to the governor and legislature of the |
compacting states, which shall include a report of the independent audit. The commission’s internal |
accounts shall not be confidential and such materials may be shared with the commissioner of any |
compacting state upon request; provided, however, that any work papers related to any internal or |
independent audit and any information regarding the privacy of individuals and insurers’ |
proprietary information, including trade secrets, shall remain confidential. |
(7) No compacting state shall have any claim to or ownership of any property held by or |
vested in the commission or to any commission funds held pursuant to the provisions of this |
compact. |
ARTICLE XIII. |
COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT |
(1) Any state is eligible to become a compacting state. |
(2) The compact shall become effective and binding upon legislative enactment of the |
compact into law by two compacting states; provided, the commission shall become effective for |
purposes of adopting uniform standards for, reviewing, and giving approval or disapproval of, |
products filed with the commission that satisfy applicable uniform standards only after twenty-six |
(26) states are compacting states, or, alternatively, by states representing greater than forty percent |
(40%) of the premium volume for life insurance, annuity, disability income and long-term care |
insurance products, based on records of the NAIC for the prior year. Thereafter, it shall become |
effective and binding as to any other compacting state upon enactment of the compact into law by |
that state. |
(3) Amendments to the compact may be proposed by the commission for enactment by the |
compacting states. No amendment shall become effective and binding upon the commission and |
the compacting states unless and until all compacting states enact the amendment into law. |
ARTICLE XIV. |
WITHDRAWAL, DEFAULT AND TERMINATION |
(1) Withdrawal; |
(a) Once effective, the compact shall continue in force and remain binding upon each and |
every compacting state; provided, that a compacting state may withdraw from the compact |
(“Withdrawing State”) by enacting a statute specifically repealing the statute which enacted the |
compact into law. |
(b) The effective date of withdrawal is the effective date of the repealing statute. However, |
the withdrawal shall not apply to any product filings approved or self-certified, or any |
advertisement of such products, on the date the repealing statute becomes effective, except by |
mutual agreement of the commission and the withdrawing state unless the approval is rescinded by |
the withdrawing state as provided in subsection (e) of the this section. |
(c) The commissioner of the withdrawing state shall immediately notify the management |
committee in writing upon the introduction of legislation repealing this compact in the withdrawing |
state. |
(d) The commission shall notify the other compacting states of the introduction of such |
legislation within ten (10) days after its receipt of notice thereof. |
(e) The withdrawing state is responsible for all obligations, duties and liabilities incurred |
through the effective date of withdrawal, including any obligations, the performance of which |
extend beyond the effective date of withdrawal, except to the extent those obligations may have |
been released or relinquished by mutual agreement of the commission and the withdrawing state. |
The commission’s approval of products and advertisement prior to the effect effective date of |
withdrawal shall continue to be effective and be given full force and effect in the withdrawing state, |
unless formally rescinded by the withdrawing state in the same manner as provided by the laws of |
the withdrawing state for the prospective disapproval of products or advertisement previously |
approved under state law. |
(f) Reinstatement following withdrawal of any compacting state shall occur upon the |
effective date of the withdrawing state reenacting the compact. |
(2) Default. (a) If the commission determines that any compacting state has at any time |
defaulted (“defaulting state”) in the performance of any of its obligations or responsibilities under |
this compact, the bylaws or duly promulgated rules or operating procedures, then, after notice and |
hearing as set forth in the bylaws, all rights, privileges and benefits conferred by this compact on |
the defaulting state shall be suspended from the effective date of default as fixed by the commission. |
The grounds for default include, but are not limited to, failure of a compacting state to perform its |
obligations or responsibilities, and any other grounds designated in commission rules. The |
commission shall immediately notify the defaulting state in writing of the defaulting state’s |
suspension pending a cure of the default. The commission shall stipulate the conditions and the |
time period within which the defaulting state must cure its default. If the defaulting state fails to |
cure the default within the time period specified by the commission, the defaulting state shall be |
terminated from the compact and all rights, privileges and benefits conferred by this compact shall |
be terminated from the effective date of termination. |
(b) Product approvals by the commission or product self-certifications, or any |
advertisement in connection with such product, that are in force on the effective date of termination |
shall remain in force in the defaulting state in the same manner as if the defaulting state had |
withdrawn voluntarily pursuant to paragraph (1) of the this article. |
(c) Reinstatement following termination of any compacting state requires a reenactment of |
the compact. |
(3) Dissolution of compact. (a) The compact dissolves effective upon the date of the |
withdrawal or default of the compacting state which reduces membership in the compact to one |
compacting state. |
(b) Upon the dissolution of this compact, the compact becomes null and void and shall be |
of no further force or effect, and the business and affairs of the commission shall be wound up and |
any surplus funds shall be distributed in accordance with the bylaws. |
ARTICLE XV. |
SEVERABILITY AND CONSTRUCTION |
(1) The provisions of this compact shall be severable; and if any phrase, clause, sentence |
or provision is deemed unenforceable, the remaining provisions of the compact shall be |
enforceable. |
(2) The provisions of this compact shall be liberally construed to effectuate it purposes. |
ARTICLE XVI. |
BINDING EFFECT OF COMPACT AND OTHER LAWS |
(1) Other laws. (a) Nothing herein prevents the enforcement of any other law of a |
compacting state, except as provided in paragraph (b) of the article. |
(b) For any product approved or certified to the commission, the rules, uniform standards |
and any other requirements of the commission shall constitute the exclusive provisions applicable |
to the content, approval and certification of such products. For advertisement that is subject to the |
commission’s authority, any rule, uniform standard or other requirement of the commission which |
governs the content of the advertisement shall constitute the exclusive provision that a |
commissioner may apply to the content of the advertisement. Notwithstanding the foregoing, no |
action taken by the commission shall abrogate or restrict: (i) the access of any person to state courts; |
(ii) remedies available under state law related to breach of contract, tort, or other laws not |
specifically directed to the content of the product; (iii) state law relating to the construction of |
insurance contracts; or (iv) the authority of the attorney general of the state, including, but not |
limited to, maintaining any actions or proceedings, as authorized by law. |
(c) All insurance products filed with individual states shall be subject to the laws of those |
states. |
(2) Binding effect on of this compact. (a) All lawful actions of the commission, including |
all rules and operating procedures promulgated by the commission, are binding upon the |
compacting states. |
(b) All agreements between the commission and the compacting states are binding in |
accordance with their terms. |
(c) Upon the request of a party to a conflict over the meaning or interpretation of |
commission actions, and upon a majority vote of the compacting states, the commission may issue |
advisory opinions regarding the meaning or interpretation in dispute. |
(d) In the event any provision of this compact exceeds the constitutional limits imposed on |
the legislature of any compacting state, the obligations, duties, powers or jurisdiction sought to be |
conferred by that provision upon the commission shall be ineffective as to that compacting state, |
and those obligations, duties, powers or jurisdiction shall remain in the compacting state and shall |
be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction are |
delegated by law in effect at the time this compact becomes effective. |
SECTION 5. Section 27-2.6-3 of the General Laws in Chapter 27-2.6 entitled "Rhode |
Island Title Insurers Act" is hereby amended to read as follows: |
27-2.6-3. Definitions. |
As used in this chapter: |
(1) “Abstract of title” or “abstract” means a written history, synopsis or summary of the |
recorded instruments affecting the title to real property. |
(2) “Affiliate” means a specific person that directly, or indirectly through one or more |
intermediaries, controls, or is controlled by or is under common control with the person specified. |
(3) “Bona fide employee of the title insurer or title insurance agent” means an individual |
who devotes substantially all of his or her time to performing services on behalf of a title insurer |
or title insurance agent and whose compensation for those services is in the form of salary or its |
equivalent paid by the title insurer or title insurance agent. |
(4) “Commissioner” means the director of the department of business regulation, or his or |
her designee or the commissioner, director or superintendent of insurance in any other state. |
(5) “Control” (including the terms “controlling,” “controlled by” and “under common |
control with”) means the possession, direct or indirect, of the power to direct or cause the direction |
of the management and policies of a person, whether through the ownership of voting securities, |
by contract other than a commercial contract for goods or nonmanagement services, or otherwise, |
unless the power is the result of an official position or corporate office held by the person. Control |
shall be presumed to exist if a person, directly or indirectly, owns, controls, holds with the power |
to vote, or holds proxies representing, ten percent (10%) or more of the voting securities of another |
person. This presumption may be rebutted by a showing that control does not exist in fact. The |
commissioner may determine, after furnishing all persons in interest notice and opportunity to be |
heard and making specific findings of fact to support the determination, that control exists in fact, |
notwithstanding the absence of a presumption to that effect. |
(6) “Direct operations” means that portion of a title insurer’s operations which are |
attributable to business written by a bona fide employee. |
(7) “Escrow” means written instruments, money or other items deposited by one party with |
a depository, escrow agent or escrowee for delivery to another party upon the performance, of a |
specified condition or the happening of a certain event. |
(8) “Escrow, settlement or closing fee” means the consideration for supervising or handling |
the actual execution, delivery or recording of transfer and lien documents and for disbursing funds. |
(9) “Foreign title insurer” means any title insurer incorporated or organized under the laws |
of any other state of the United States, the District of Columbia, or any other jurisdiction of the |
United States. |
(10) “Net retained liability” means the total liability retained by a title insurer for a single |
risk, after taking into account any ceded liability and collateral, acceptable to the commissioner, |
maintained by the insurer. |
(11) “Non-U.S. title insurer” means any title insurer incorporated or organized under the |
laws of any foreign nation or any province or territory. |
(12) “Person” means any natural person, partnership, association, cooperative, corporation, |
trust or other legal entity. |
(13) “Producer” means any person, including any officer, director or owner of five percent |
(5%) or more of the equity or capital of any person, engaged in this state in the trade, business, |
occupation or profession of: |
(i) Buying or selling interests in real property; |
(ii) Making loans secured by interests in real property; or |
(iii) Acting as broker, agent, representative or attorney or of a person who buys or sells |
any interest in real property or who lends or borrows money with the interest as security. |
(14) “Qualified financial institution” means an institution that is: |
(i) Organized or (in the case of a United States branch or agency office of a foreign banking |
organization) licensed under the laws of the United States or any state and has been granted |
authority to operate with fiduciary powers; |
(ii) Regulated, supervised and examined by federal or state authorities having regulatory |
authority over banks and trust companies; |
(iii) Insured by the appropriate federal entity; and |
(iv) Qualified under any additional rules established by the commissioner. |
(15) “Security” or “security deposit” means funds or other property received by the title |
insurer as collateral to secure an indemnitor’s obligation under an indemnity agreement pursuant |
to which the insurer is granted a perfected security interest in the collateral in exchange for agreeing |
to provide coverage in a title insurance policy for a specific title exception to coverage. |
(16) “Subsidiary” means an affiliate controlled by a person directly or indirectly through |
one or more intermediaries. |
(17) “Title insurance agent” or “agent” means an authorized person, other than a bona fide |
employee of the title insurer who, on behalf of the title insurer, performs the following acts, in |
conjunction with the issuance of a title insurance report or policy: |
(i) Determines insurability and issues title insurance reports or policies, or both, based upon |
the performance or review of a search or abstract of title; and |
(ii) Performs one or more of the following functions: |
(A) Collects or disburses premiums, escrow or security deposits or other funds; |
(B) Handles escrows, settlements or closings; |
(C) Solicits or negotiates title insurance business; or |
(D) Records closing documents. |
(18) “Title insurance business” or “business of title insurance” means“: |
(i) Issuing as insurer or offering to issue as insurer, a title insurance policy; |
(ii) Transacting or proposing to transact by a title insurer any of the following activities |
when conducted or performed in contemplation of, or in conjunction with, the issuance of a title |
insurance policy: |
(A) Soliciting or negotiating the issuance of a title insurance policy; |
(B) Guaranteeing, warranting or otherwise insuring the correctness of title searches for all |
instruments affecting titles to real property, any interest in real property, cooperative units and |
proprietary leases and for all liens or charges affecting the same; |
(C) Handling of escrows, settlements or closings; |
(D) Executing title insurance policies; |
(E) Effecting contracts of reinsurance. |
(iii) Guaranteeing, warranting or insuring searches or examination of title to real property |
or any interest in real property; |
(iv) Guaranteeing or warranting the status of title as to ownership of or liens on real |
property and personal property by any person other than the principals to the transaction; or |
(v) Doing or proposing to do any business substantially equivalent to any of the activities |
listed in this subsection in a manner designed to evade the provisions of this chapter. |
(19) “Title insurance policy” or “policy” means a contract insuring or indemnifying owners |
of, or other persons lawfully interested in, real or personal property or any interest in real property, |
against loss or damage arising from any or all of the following conditions existing and not excepted |
or excluded: |
(i) Defects in or liens or encumbrances on the insured title; |
(ii) Unmarketability of the insured title; |
(iii) Invalidity, lack of priority or unenforceability of liens or encumbrances on the stated |
property; |
(iv) Lack of legal right of access to the land; or |
(v) Unenforceability of rights in title to the land. |
(20) “Title insurer” or “insurer” means a company organized under laws of this state for |
the purpose of transacting the business of title insurance and any foreign or non-United States title |
insurer licensed in this state to transact the business of title insurance. |
(21) “Title plant” means a set of records consisting of documents, maps, surveys or entries |
affecting title to real property or any interest in or encumbrance on the property, which have been |
filed or recorded in the jurisdiction for which the title plant is established or maintained. |
SECTION 6. Section 27-2.7-1 and 27-2.7-7 of the General Laws in Chapter 27-2.7 entitled |
"Portable Electronics Insurance" are hereby amended to read as follows: |
27-2.7-1. Definitions. |
For purposes of this section chapter, the following terms shall have the following |
meanings: |
(1) “Customer” means a person who purchases portable electronics or services; |
(2) “Department” means the department of business regulation; |
(3) “Enrolled customer” means a customer who elects coverage under a portable |
electronics insurance policy issued by a vendor of portable electronics; |
(4) “Insurance commissioner” means the director of the department of business regulation |
or his/her designee; |
(5) “Location” means any physical location in the state of Rhode Island or any website, |
call center site or similar location directed to residents of the state of Rhode Island; |
(6) “Portable electronics” means electronic devices that are portable in nature, their |
accessories and services related to the use of the device; |
(7)(i) “Portable electronics insurance” means insurance providing coverage for the repair |
or replacement of portable electronics which may provide coverage for portable electronics against |
any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, |
malfunction, damage or other similar causes of loss. |
(ii) “Portable electronics insurance” does not include: |
(A) A service contract or extended warranty providing coverage limited to the repair, |
replacement or maintenance of property for the operational or structural failure of property due to |
a defect in materials, workmanship, accidental damage from handling, power surges, or normal |
wear and tear; |
(B) A policy of insurance covering a seller’s or a manufacturer’s obligations under a |
warranty; or |
(C) A homeowner’s renter’s, private passenger automobile, commercial multi-peril, or |
similar policy; |
(8) “Portable electronics transaction” means: |
(i) The sale or lease of portable electronics by a vendor to a customer; or |
(ii) The sale of a service related to the use of portable electronics by a vendor to a customer. |
(9) “Supervising entity” means a business entity that is a licensed insurer or insurance |
producer that is authorized by an insurer to supervise the administration of a portable electronics |
insurance program. |
(10) “Vendor” means a person in the business of engaging in portable electronics |
transactions directly or indirectly. |
27-2.7-7. Application for license and fees. |
(a) A sworn application for a license under this chapter shall be made to and filed with the |
department on forms prescribed and furnished by the department in accordance with the provisions |
of § 27-2.4-9(a)(8). |
(b) The application shall: |
(1) Provide the name, residence address, and other information required by the department |
for an employee or officer of the vendor that is designated by the applicant as the person responsible |
for the vendor’s compliance with the requirements of this chapter. However, if the vendor derives |
more than fifty percent (50%) of its revenue from the sale of portable electronics insurance the |
information noted above shall be provided for all officers, directors, and shareholder shareholders |
of record having beneficial ownership of ten percent (l0%) or more of any class of securities |
registered under the federal securities law; and |
(2) The location of the applicant’s home office. |
(c) Any license under this chapter is subject to all applicable provisions of chapter 2.4 of |
this title, including, but not limited to, notification of change of address, lapse of license, |
notification of administrative actions, assumed names and basis for suspension or revocation of |
license; provided however, in the event there is a conflict between the provisions of this chapter |
and chapter 2.4 of this title, this chapter shall prevail. |
(d) Any vendor engaging in portable electronics insurance transactions on or before the |
effective date of this chapter must apply for licensure within ninety (90) days of the application |
being made available by the department. Any applicant commencing operations after the effective |
date of this chapter must obtain a license prior to offering portable electronics insurance. |
(e) Initial licenses issued pursuant to this chapter shall be valid for a period of two (2) |
calendar years expiring on May 31 of the second (2nd) renewal year. Applicants for an initial |
license shall pay the full two (2) year fee regardless of the number of months of the initial licensure. |
Renewal licenses shall be effective for twenty-four (24) months effective and expiring on May 31. |
(f) Each vendor of portable electronics licensed under this chapter shall pay to the |
department a fee of two hundred dollars ($200) for an initial license and for each renewal thereof. |
The department is authorized to institute miscellaneous fees for this license type in accordance with |
§ 27-2.4-4. |
SECTION 7. Section 27-4-27 of the General Laws in Chapter 27-4 entitled "Life Insurance |
Policies and Reserves" is hereby amended to read as follows: |
27-4-27. Insurable interest. |
(a) Any individual of competent legal capacity may procure or effect an insurance contract |
upon his or her life or body for the benefit of any person. Any life insurance company doing |
business within the state may issue policies of insurance predicated upon the life or lives of any |
person or persons with the consent of the insured, payable at maturity to any educational, religious, |
benevolent, or charitable corporation or association which can legally take and receive testamentary |
legacies and which are exempt from taxation under 26 U.S.C. § 501(c), irrespective of a financial |
interest on the part of the corporation in the life of the person or persons insured. No person shall |
procure or cause to be procured any insurance contract upon the life or body of another individual |
unless the benefits under the contract are payable to the individual insured or his or her personal |
representatives, or to a person having, at the time when the contract was made, an insurable interest |
in the individual insured. |
(b) If the beneficiary, assignee, or other payee under any contract made in violation of this |
section receives from the insurer any benefits under that contract accruing upon the death, |
disablement, or injury of the individual insured, the individual insured or his or her executor or |
administrator may maintain an action to recover the benefits from the person so receiving them. |
(c) “Insurable interest” as to personal insurance means that every individual has an |
insurable interest in the life, body, and health of himself or herself and of other persons as follows: |
(1) In the case of individuals related closely by blood or by law, a substantial interest |
engendered by love and affection; |
(2) In the case of other persons, a lawful and substantial economic interest in having the |
life, health, or bodily safety of the individual insured continue, as distinguished from an interest |
which would arise only by, or would be enhanced in value by the death, disablement, or injury of |
the individual insured; |
(3) In the case of employees of public and private corporations, with respect to whom the |
corporate employer or an employer-sponsored trust is the beneficiary under the insurance contract, |
a lawful and substantial economic interest exists in: |
(i) Key employees; and |
(ii) Employees other than those identified in subdivision (c)(3)(i), and former employees |
and retirees for the purpose of funding, in the aggregate, all or part of the corporation’s cost for |
pre-retirement and post-retirement benefits; provided, (A) that the amount of insurance coverage |
on these employees will be limited to an amount commensurate with employer-provided benefits |
to those employees, (B) that an insurance program used to finance these employee benefits includes |
former employees, retirees, or a broad class of employees selected by objective standards related |
to age, service, sex, or category of employment, and (C) that the proceeds created by that insurance |
program are used for the sole purpose of funding the corporation’s pre-retirement or post- |
retirement benefit programs; and |
(4) An individual party to a contract or option for the purchase or sale of an interest in a |
business, partnership, or firm or of shares of stock of a corporation or of an interest in the shares, |
has an insurable interest in the life of each individual party to the contract and for the purposes of |
the contract only, in addition to any insurable interest which may exist as to the life of that |
individual. |
(d) Insurance effectuated under a group life insurance policy pursuant to the program |
described in subdivision (c)(3)(ii) need not comply with the provisions of § 27-4-22 to the extent |
the provisions of that section would be inconsistent or would conflict with the purposes expressed |
in subdivision (c)(3)(ii). |
(e) An insurer shall be entitled to rely upon all statements, declarations, and representations |
made by an applicant for insurance relative to insurable interest of the applicant in the insured, and |
no insurer shall incur legal liability except as set forth in the policy by virtue of any untrue |
statements, declarations, or representations relied upon in good faith by the insurer. |
SECTION 8. Section 27-4.5-3 and 27-4.5-16 of the General Laws in Chapter 27-4.5 |
entitled "The Standard Valuation Law" are hereby amended to read as follows: |
27-4.5-3. Actuarial opinion of reserves. |
(a) Actuarial opinion prior to the operative date of the valuation manual: |
(1) General. Every life insurance company doing business in this state shall annually |
submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held |
in support of the policies and contracts specified by the commissioner of insurance by regulation |
are computed appropriately, are based on assumptions which satisfy contractual provisions, are |
consistent with prior reported amounts, and comply with applicable laws of this state. The |
commissioner of insurance by regulation shall define the specifics of this opinion and add any other |
items deemed to be necessary to its scope. |
(2) Actuarial analysis of reserves and assets supporting reserves. |
(i) Every life insurance company, except as exempted by regulation shall also annually |
include in the opinion required by subsection (a) above an opinion of the same qualified actuary as |
to whether the reserves and related actuarial items held in support of the policies and contracts |
specified by the commissioner of insurance by regulation, when considered in light of the assets |
held by the company with respect to the reserves and related actuarial items, including, but not |
limited to, the investment earnings on the assets and the considerations anticipated to be received |
and retained under the policies and contracts, make adequate provision for the company’s |
obligations under the policies and contracts, including, but not limited to, the benefits under and |
expenses associated with the policies and contracts. |
(ii) The commissioner of insurance may provide by regulation for a transition period for |
establishing any higher reserves that the qualified actuary may deem necessary in order to render |
the opinion required by this section. |
(3) Requirement for opinion under subdivision (2) above. Each opinion required by |
subdivision (2) shall be governed by the following provisions: |
(i) A memorandum, in form and substance acceptable to the commissioner of insurance as |
specified by regulation, shall be prepared to support each actuarial opinion; and |
(ii) If the insurance company fails to provide a supporting memorandum at the request of |
the commissioner of insurance within a period specified by regulation or the commissioner of |
insurance determines that the supporting memorandum provided by the insurance company fails to |
meet the standards prescribed by the regulations or is otherwise unacceptable to the commissioner |
of insurance, the commissioner of insurance may engage a qualified actuary at the expense of the |
company to review the opinion and the basis for the opinion and prepare the supporting |
memorandum required by the commissioner of insurance. |
(4) Requirement for all opinions subject to subsection (a). Every opinion required by |
subsection (a) shall be governed by the following provisions: |
(i) The opinion shall be submitted with the annual statement reflecting the valuation of the |
reserve liabilities for each year ending on or after December 31, 1994; |
(ii) The opinion shall apply to all business in force including individual and group health |
insurance plans, in a form and substance acceptable to the commissioner of insurance as specified |
by regulation; |
(iii) The opinion shall be based on standards adopted by the actuarial standards board and |
on any additional standards as that the commissioner of insurance may by regulation prescribe; |
(iv) In the case of an opinion required to be submitted by a foreign or alien company, the |
commissioner of insurance may accept the opinion filed by that company with the insurance |
supervisory official of another state if the commissioner of insurance determines that the opinion |
reasonably meets the requirements applicable to a company domiciled in this state; |
(v) For the purposes of this section, “qualified actuary” means a member in good standing |
of the American Academy of Actuaries who meets the requirements set forth in the regulations; |
(vi) Except in cases of fraud or willful misconduct, the qualified actuary shall not be liable |
for damages to any person, other than the insurance company and the commissioner of insurance, |
for any act, error, omission, decision, or conduct with respect to the actuary’s opinion; |
(vii) Disciplinary action by the commissioner of insurance against the company or the |
qualified actuary shall be defined in regulations by the commissioner of insurance; and |
(viii) Except as provided in paragraphs (xii), (xiii) and (xiv) below, documents, materials |
or other information in the possession or control of the department of insurance that are a |
memorandum in support of the opinion, and any other material provided by the company to the |
commissioner in connection with the memorandum, shall be confidential and privileged, shall not |
be subject to chapter 35 of title 42, shall not be subject to subpoena, and shall not be subject to |
discovery or admissible in evidence as in any private/civil private civil action. However, the |
commissioner is authorized to use the documents, materials or other information in the furtherance |
of any regulatory or legal action brought as a part of the commissioner’s official duties. |
(ix) Neither the commissioner nor any person who received documents, materials or other |
information while acting under the authority of the commissioner shall be permitted or required to |
testify in any private civil action concerning any confidential documents, materials or information |
subject to paragraph (viii). |
(x) In order to assist in the performance of the commissioner’s duties, the commissioner: |
(A) May share documents, materials or other information, including the confidential and |
privileged documents, materials or information subject to paragraph (viii) with other state, federal |
and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with |
state, federal and international law enforcement authorities, provided that the recipient agrees to |
maintain the confidentiality and privileged status of the document, material or other information; |
(B) May receive documents, materials or information, including otherwise confidential and |
privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, |
and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and |
shall maintain as confidential or privileged any document, material or information received with |
notice or the understanding that it is confidential or privileged under the laws of the jurisdiction |
that is the source of the document, material or information; and |
(C) May enter into agreements governing sharing and use of information consistent with |
paragraphs (viii) through (x). |
(xi) No waiver of any applicable privilege or claim of confidentiality in the documents, |
materials or information shall occur as a result of disclosure to the commissioner under this section |
or as a result of sharing as authorized in paragraph (x). |
(xii) A memorandum in support of the opinion, and any other material provided by the |
company to the commissioner in connection with the memorandum, may be subject to subpoena |
for the purpose of defending an action seeking damages from the actuary submitting the |
memorandum by reason of an action required by this section or by regulations promulgated |
hereunder. |
(xiii) The memorandum or other material may otherwise be released by the commissioner |
with the written consent of the company or to the American Academy of Actuaries upon request |
stating that the memorandum or other material is required for the purpose of professional |
disciplinary proceedings and setting forth procedures satisfactory to the commissioner for |
preserving the confidentiality of the memorandum or other material. |
(xiv) Once any portion of the confidential memorandum is cited by the company in its |
marketing or is cited before a governmental agency other than a state insurance department or is |
released by the company to the news media, all portions of the confidential memorandum shall be |
no longer confidential. |
(b) Actuarial opinion of reserves after the operative date of the valuation manual. |
(1) General. Every company with outstanding life insurance contracts, accident and health |
insurance contracts or deposit-type contracts in this state and subject to regulation by the |
commissioner shall annually submit the opinion of the appointed actuary as to whether the reserves |
and related actuarial items held in support of the policies and contracts are computed appropriately, |
are based on assumptions that satisfy contractual provisions, are consistent with prior reported |
amounts and comply with applicable laws of this state. The valuation manual will prescribe the |
specifics of this opinion including any items deemed to be necessary to its scope. |
(2) Actuarial analysis of reserves and assets supporting reserves. Every company with |
outstanding life insurance contracts, accident and health insurance contracts or deposit-type |
contracts in this state and subject to regulation by the commissioner, except as exempted in the |
valuation manual, shall also annually include in the opinion required by subdivision (1) of this |
section, an opinion of the same appointed actuary as to whether the reserves and related actuarial |
items held in support of the policies and contracts specified in the valuation manual, when |
considered in light of the assets held by the company with respect to the reserves and related |
actuarial items, including, but not limited to, the investment earnings on the assets and the |
considerations anticipated to be received and retained under the policies and contracts, make |
adequate provision for the company’s obligations under the policies and contracts, including but |
not limited to the benefits under and expenses associated with the policies and contracts. |
(3) Requirements for opinions subject to subdivision 27-4.5-3(b)(2). Each opinion required |
by subdivision 27-4.5-3(b)(2) shall be governed by the following provisions: |
(i) A memorandum, in form and substance as specified in the valuation manual, and |
acceptable to the commissioner, shall be prepared to support each actuarial opinion. |
(ii) If the insurance company fails to provide a supporting memorandum at the request of |
the commissioner within a period specified in the valuation manual or the commissioner determines |
that the supporting memorandum provided by the insurance company fails to meet the standards |
prescribed by the valuation manual or is otherwise unacceptable to the commissioner, the |
commissioner may engage a qualified actuary at the expense of the company to review the opinion |
and the basis for the opinion and prepare the supporting memorandum required by the |
commissioner. |
(4) Requirement for all opinions subject to subsection 27-4.5-3(b). Every opinion shall be |
governed by the following provisions: |
(i) The opinion shall be in form and substance as specified in the valuation manual and |
acceptable to the commissioner. |
(ii) The opinion shall be submitted with the annual statement reflecting the valuation of |
such reserve liabilities for each year ending on or after the operative date of the valuation manual. |
(iii) The opinion shall apply to all policies and contracts subject to subdivision 27-4.5- |
3(b)(2), plus other actuarial liabilities as may be specified in the valuation manual. |
(iv) The opinion shall be based on standards adopted from time to time by the actuarial |
standards board or its successor, and on such additional standards as may be prescribed in the |
valuation manual. |
(v) In the case of an opinion required to be submitted by a foreign or alien company, the |
commissioner may accept the opinion filed by that company with the insurance supervisory official |
of another state if the commissioner determines that the opinion reasonably meets the requirements |
applicable to a company domiciled in this state. |
(vi) Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable |
for damages to any person (other than the insurance company and the commissioner) for any act, |
error, omission, decision or conduct with respect to the appointed actuary’s opinion. |
(vii) Disciplinary action by the commissioner against the company or the appointed actuary |
shall be defined in regulations by the commissioner. |
27-4.5-16. Confidentiality. |
(a) For purposes of this section, “confidential information” shall mean: |
(1) A memorandum in support of an opinion submitted under § 27-4-3 27-4.5-3 and any |
other documents, materials, and other information, including, but not limited to, all working papers, |
and copies thereof, created, produced, or obtained by, or disclosed to, the commissioner or any |
other person in connection with such memorandum; |
(2) All documents, materials, and other information, including, but not limited to, all |
working papers, and copies thereof, created, produced, or obtained by, or disclosed to, the |
commissioner or any other person in the course of an examination made under § 27-4.5-13(f); |
provided, however, that if an examination report or other material prepared in connection with an |
examination made under chapter 13.1 of title 27 is not held as private and confidential information |
under chapter 13.1 of this title, an examination report or other material prepared in connection with |
an examination made under § 27-4.5-13(f) of this chapter shall not be “confidential information” |
to the same extent as if such examination report or other material had been prepared in accordance |
with chapter 13.1 of title 27; |
(3) Any reports, documents, materials, and other information developed by a company in |
support of, or in connection with, an annual certification by the company under § 27-4.5-14(b)(2) |
evaluating the effectiveness of the company’s internal controls with respect to a principle-based |
valuation and any other documents, materials and other information, including, but not limited to, |
all working papers, and copies thereof, created, produced, or obtained by, or disclosed to, the |
commissioner or any other person in connection with such reports, documents, materials and other |
information; |
(4) Any principle-based valuation report developed under § 27-4.5-14(b)(3) and any other |
documents, materials, and other information, including, but not limited to, all working papers, and |
copies thereof, created, produced, or obtained by, or disclosed to, the commissioner or any other |
person in connection with such report; and |
(5) Any documents, materials, data, and other information submitted by a company under |
§ 27-4.5-15 (collectively, “experience data”) and any other documents, materials, data, and other |
information, including, but not limited to, all working papers, and copies thereof, created or |
produced in connection with such experience data, in each case that include any potentially |
company-identifying or personally identifiable information, that is provided to, or obtained by, the |
commissioner (together with any “experience data,” the “experience materials”) and any other |
documents, materials, data, and other information, including, but not limited to, all working papers, |
and copies thereof, created, produced, or obtained by, or disclosed to, the commissioner or any |
other person in connection with such experience materials. |
(b) Privilege for, and confidentiality of, confidential information. |
(1) Except as provided in this § 27-4.5-16, a company’s confidential information is |
confidential by law and privileged and shall not be subject to chapter 2 of title 38, shall not be |
subject to subpoena and shall not be subject to discovery or admissible in evidence in any private |
civil action; provided, however, that the commissioner is authorized to use the confidential |
information in the furtherance of any regulatory or legal action brought against the company as a |
part of the commissioner’s official duties. |
(2) Neither the commissioner, nor any person who received confidential information while |
acting under the authority of the commissioner, shall be permitted or required to testify in any |
private civil action concerning any confidential information. |
(3) In order to assist in the performance of the commissioner’s duties, the commissioner |
may share confidential information: |
(i) With other state, federal, and international regulatory agencies and with the NAIC and |
its affiliates and subsidiaries; and |
(ii) In the case of confidential information specified in §§ 27-4.5-16(a)(1) and 27-4.5- |
16(a)(4) only, with the actuarial board for counseling and discipline or its successor upon request |
stating that the confidential information is required for the purpose of professional disciplinary |
proceedings, and with state, federal, and international law enforcement officials; in the case of |
subsections (a) and (b), provided, that, such recipient agrees, and has the legal authority to agree, |
to maintain the confidentiality and privileged status of such documents, materials, data, and other |
information in the same manner, and to the same extent, as required for the commissioner. |
(4) The commissioner may receive documents, materials, data, and other information, |
including otherwise confidential and privileged documents, materials, data, or information, from |
the NAIC and its affiliates and subsidiaries, from regulatory or law enforcement officials of other |
foreign or domestic jurisdictions and from the actuarial board for counseling and discipline or its |
successor and shall maintain as confidential or privileged any document, material, data, or other |
information received with notice or the understanding that it is confidential or privileged under the |
laws of the jurisdiction that is the source of the document, material, or other information. |
(5) The commissioner may enter into agreements governing sharing and use of information |
consistent with § 27-4.5-16(b). |
(6) No waiver of any applicable privilege or claim of confidentiality in the confidential |
information shall occur as a result of disclosure to the commissioner under this section or as a result |
of sharing as authorized in § 27-4.5-16(b)(3). |
(7) A privilege established under the law of any state or jurisdiction that is substantially |
similar to the privilege established under § 27-4.5-16(b) shall be available and enforced in any |
proceeding in, and in any court of, this state. |
(8) In § 27-4.5-16 “regulatory agency,” “law enforcement agency” and the “NAIC” |
include, but are not limited to, their employees, agents, consultants, and contractors. |
(c) Notwithstanding § 27-4.5-16(b), any confidential information specified in §§ 27-4.5- |
16(a)(1) and 27-4.5-14(a)(4): |
(1) May be subject to subpoena for the purpose of defending an action seeking damages |
from the appointed actuary submitting the related memorandum in support of an opinion submitted |
under § 27-4.5-3 or principle-based valuation report developed under § 27-4.5-14(b)(3) by reason |
of an action required by this chapter or by regulations promulgated hereunder; |
(2) May otherwise be released by the commissioner with the written consent of the |
company; and |
(3) Once any portion of a memorandum in support of an opinion submitted under § 27-4.5- |
3 or a principle-based valuation report developed under § 27-4.5-14(b)(3) is cited by the company |
in its marketing, or is publicly volunteered to or before a governmental agency other than a state |
insurance department, or is released by the company to the news media, all portions of such |
memorandum or report shall no longer be confidential. |
SECTION 9. Sections 27-6-8.1 and 27-6-53 of the General Laws in Chapter 27-6 entitled |
"Fire and Marine Insurance Rating" are hereby amended to read as follows: |
27-6-8.1. Rating for nonbusiness policies. |
(a) Notwithstanding the requirements of § 27-6-8, a filing made by an insurer under this |
section that provides for an overall statewide rate increase or decrease of no more than five percent |
(5%) in the aggregate for all coverages that are subject to the filing may take effect the date it is |
filed. The five percent (5%) limitation does not apply on an individual insured basis. No more than |
one rate filing may be made by an insurer pursuant to the expedited process provided in this |
subsection during any twelve (12) month period, unless a rate filing, when combined with any other |
rate filing or filings made by an insurer within the preceding twelve (12) months, does not result in |
an overall statewide increase or decrease of more than five percent (5%) in the aggregate for all |
coverages that are subject to the filing. |
(b) Rate filings falling outside of the limitation provided for in subsection (a) of this section |
shall be subject to § 27-6-11, unless those filings are other otherwise exempt from those provisions |
pursuant to another section of the insurance code. |
(c) A filing submitted pursuant to subsection (a) of this section is considered to comply |
with state law. However, if the commissioner of insurance determines that the filing is inadequate |
or unfairly discriminatory, he/she shall issue a written order specifying in detail the provisions of |
the insurance code the insurer has violated and the reasons the filing is inadequate or unfairly |
discriminatory and stating a reasonable future date on which the filing is to be considered no longer |
effective. An order by the commissioner pursuant to this subsection that is issued more than thirty |
(30) days from the date on which the commissioner received the rate filing is prospective only and |
does not affect any contract issued or made before the effective date of the order. For purposes of |
this act, “unfairly discriminatory” means a rate for a risk that is classified in whole or in part on the |
basis of race, color, creed or national origin. |
(d) No rate increase within the limitation specified in subsection (a) of this section may be |
implemented with regard to an individual existing policy, unless the increase is applied at the time |
of a renewal or conditional renewal of an existing policy and the insurer, at least thirty (30) days in |
advance of the end of the insured’s policy period, mails or delivers to the named insured, at the |
address shown in the policy, a written notice that clearly and conspicuously discloses its intention |
to change the rate. A notice of renewal or conditional renewal that clearly and conspicuously |
discloses the renewal premium applicable to the policy shall be deemed to be in compliance with |
this subsection. |
27-6-53. Use of credit rating. |
(a) An insurer may use insurance scoring for rating and underwriting of homeowners’ |
insurance only under the following conditions: |
(1) The insurer demonstrates the predictive nature of their insurance score to the insurance |
division. |
(2) An insurer shall, once every two (2) years if requested by an existing customer, obtain |
an updated insurance score for the customer. If, after obtaining the insurance score, the customer |
has improved his, her or its credit rating, the user of the information shall afford the customer any |
decrease in rates that are available due to the improved rating. The user may not increase the rate |
of an existing customer based solely on a worsening in the customer’s insurance score unless: (i) |
the worsening is due to a bankruptcy, tax lien, garnishment, foreclosure or judgment; or (ii) if a |
subsequent insurance score no sooner than six (6) months later confirms the worsening in score. |
Should an existing customer’s score change as the result of an updated credit report, the decrease |
or increase in rates must be done at renewal subject to conditions established herein. |
(3) An insurer shall not decline insurance for a new customer based solely on an insurance |
score, or absence of an insurance score; and an insurer shall not cancel, nonrenew or increase the |
rate of an existing customer based solely on a worsening in a customer’s insurance score unless: (i) |
the worsening is due to a bankruptcy, tax lien, garnishment, foreclosure or judgment; or (ii) if a |
subsequent insurance score no sooner than six (6) months later confirms the worsening in score. |
Should an existing customer’s score change as the result of an updated credit report, the decrease |
or increase in rates must be done at renewal subject to conditions established herein. |
(4) No insurer is obligated to obtain a current credit report or insurance score for an insured |
if: the insured is in the most favorably-priced tier of the insurer, within a group of affiliated insures |
insurers; or credit was not used for the insured when the policy was initially written. However, the |
insurer shall have the discretion to use credit for the insured upon renewal, if consistent with its |
underwriting guidelines. The user may not increase the rate of an existing customer based solely |
on a worsening in the customer’s insurance score unless: (i) the worsening is due to a bankruptcy, |
tax lien, garnishment, foreclosure or judgment; or (ii) if a subsequent insurance score no sooner |
than six (6) months later confirms the worsening in score. Should an existing customer’s score |
change as the result of an updated credit report, the decrease or increase in rates must be done at |
renewal subject to conditions established herein. |
(5) If a credit bureau determines that disputed information is inaccurate or incorrect and |
that information was used in determining an insurance score which resulted in a denial, cancellation |
or nonrenewal of or higher premiums or less favorable policy terms for a consumer, the insurer |
shall, within thirty (30) days of receiving notice of correction, reissue or re-rate the policy by |
refunding the amount of the overpayment of premium based on the corrected insurance score |
retroactive to the shorter of the last twelve (12) months of coverage or the actual period of coverage. |
An “insurance score” as used in this section shall be defined as a number or rating that is derived |
from an algorithm, computer application, model or other process that is based in whole or in part |
on credit history. |
(b) Agents shall be held harmless by insurers for all acts, efforts and disclosures in |
obtaining an insurance score on the insurer’s behalf. The commissioner is authorized and |
empowered to establish rules and regulations to carry out the provisions of this section and to fulfill |
the goals of this section. |
(c) Notwithstanding the above, an insurer authorized to do business in Rhode Island that |
uses credit information to underwrite or rate risks, shall not use the following as a negative factor |
in any insurance scoring methodology or in reviewing credit information for the purpose of |
underwriting or rating a policy of personal insurance: |
(1) Credit inquiries not initiated by the consumer or inquiries requested by the consumer |
for his or her own credit information; |
(2) Inquiries relating to insurance coverage, if so identified on a consumer’s credit report; |
(3) Collection accounts with a medical industry code, if so identified on the consumer’s |
credit report; |
(4) Multiple lender inquiries, if coded by the consumer reporting agency on the consumer’s |
credit report as being from the home mortgage industry and made within thirty (30) days of one |
another, unless only one inquiry is considered; |
(5) Multiple lender inquiries, if coded by the consumer reporting agency on the consumer’s |
credit report as being from the automobile lending industry and made within thirty (30) days of one |
another, unless only one inquiry is considered. |
(d) No consumer reporting agency shall provide or sell data or lists that include any |
information that in whole or in part was submitted in conjunction with an insurance inquiry about |
a consumer’s credit information or a request for a credit report or insurance score. Such information |
includes, but is not limited to, the expiration dates of an insurance policy or any other information |
that may identify time periods during which a consumer’s insurance may expire and the terms and |
conditions of the consumer’s insurance coverage. |
(e) The restrictions provided in subsection (d) of this section do not apply to data or lists |
the consumer reporting agency supplies to the insurance [agent/producer] from whom information |
was received, the insurer on whose behalf such [agent/producer] acted, or such insurer’s affiliates |
or holding companies. |
(f) Nothing in this section shall be construed to restrict any insurer from being able to obtain |
a claims history report or a motor vehicle report. |
SECTION 10. Section 27-7.1-13.1 of the General Laws in Chapter 27-7.1 entitled |
"Workers’ Compensation Insurance" is hereby amended to read as follows: |
27-7.1-13.1. False or misleading information. |
No person, firm, corporation, association, or organization shall willfully withhold |
information that will affect the rates or premiums chargeable under this chapter or knowingly give |
false or misleading information to the director, any statistical agency or advisory organization |
designed designated by the director or any insurer. |
SECTION 11. Section 27-9.3-2 of the General Laws in Chapter 27-9.3 entitled "State |
Structured Settlement Protection Act" is hereby amended to read as follows: |
27-9.3-2. Definitions. |
For purposes of this chapter: |
(1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments |
under a structured settlement; |
(2) “Dependents” includes a payee’s spouse and minor children and all other persons for |
whom the payee is legally obligated to provide support, including alimony; |
(3) “Discounted present value” means the present value of future payments determined by |
discounting the payments to the present using the most recently published applicable federal rate |
for determining the present value of an annuity, as issued by the United States Internal Revenue |
Service; |
(4) “Gross advance amount” means the sum payable to the payee or for the payee’s account |
as consideration for a transfer of structured settlement payment rights before any reductions for |
transfer expenses or other deductions to be made from the consideration; |
(5)(6) “Independent Interested parties” means, with respect to any structured settlement, |
the payee, any beneficiary irrevocably designated under the annuity contract to receive payments |
following the payee’s death, the annuity issuer, the structured settlement obligor, and any other |
party that has continuing rights or obligations under the structured settlement; |
(6)(5) “Independent professional advice” means advice of an attorney, certified public |
accountant, actuary or other licensed professional adviser; |
(7) “Net advance amount” means the gross advance amount less the aggregate amount of |
the actual and estimated transfer expenses required to be disclosed under § 27-9.3-3(5); |
(8) “Payee” means an individual who is receiving tax-free payments under a structured |
settlement and proposes to make a transfer of payment rights under the settlement; |
(9) “Periodic payments” includes both recurring payments and scheduled future lump sum |
payments; |
(10) “Qualified assignment agreement” means an agreement providing for a qualified |
assignment within the meaning of Section 130 of the United States Internal Revenue Code, 26 |
U.S.C. § 130; |
(11) “Responsible administrative authority” means, with respect to a structured settlement, |
any government authority vested by law with exclusive jurisdiction over the settled claim resolved |
by the structured settlement; |
(12) “Settled claim” means the original tort claim or workers’ compensation claim resolved |
by a structured settlement; |
(13) “Structured settlement” means an arrangement for periodic payment of damages for |
personal injuries or sickness established by settlement or judgment in resolution of a tort claim or |
for periodic payments in settlement of a workers’ compensation claim; |
(14) “Structured settlement agreement” means the agreement, judgment, stipulation, or |
release embodying the terms of a structured settlement; |
(15) “Structured settlement obligor” means, with respect to any structured settlement, the |
party that has the continuing obligation to make periodic payments to the payee under a structured |
settlement agreement or a qualified assignment agreement; |
(16) “Structured settlement payment rights” means rights to receive periodic payments |
under a structured settlement, whether from the structured settlement obligor or the annuity issuer, |
where: |
(i) The payee is domiciled in, or the domicile or principal place of business of the structured |
settlement obligor or the annuity issuer is located in, this state; or |
(ii) The structured settlement agreement was approved by a court or responsible |
administrative authority in this state; or |
(iii) The structured settlement agreement is expressly governed by the laws of this state; |
(17) “Terms of the structured settlement” includes, with respect to any structured |
settlement, the terms of the structured settlement agreement, the annuity contract, any qualified |
assignment agreement and any order or other approval of any court or responsible administrative |
authority or other government authority that authorized or approved the structured settlement; |
(18) “Transfer” means any sale, assignment, pledge, hypothecation or another alienation |
or encumbrance of structured settlement payment rights made by a payee for consideration; |
provided that the term “transfer” does not include the creation or perfection of a security interest in |
structured settlement payment rights under a blanket security agreement entered into with an |
insured depository institution, in the absence of any action to redirect the structured settlement |
payments to an insured depository institution, or an agent or successor in interest of an insured |
depository institution, or to enforce the blanket security interest against the structured settlement |
payment rights; |
(19) “Transfer agreement” means the agreement providing for a transfer of structured |
settlement payment rights; |
(20) “Transfer expenses” means all expenses of a transfer that are required under the |
transfer agreement to be paid by the payee or deducted from the gross advance amount, including, |
without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment |
and lien search fees, finders’ fees, commissions, and other payments to a broker or other |
intermediary; “transfer expenses” do not include preexisting obligations of the payee payable for |
the payee’ s account from the proceeds of a transfer; |
(21) “Transferee” means a party acquiring or proposing to acquire structured settlement |
payment rights through a transfer. |
SECTION 12. Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor |
Vehicle Insurance — Mandatory Arbitration Provision" is hereby amended to read as follows: |
27-10.3-1. Arbitration provision. |
(a) Every contract of motor vehicle liability insurance, issued in the state by an insurance |
carrier authorized to do business in the state, shall contain the following provisions: |
(1) Any person, referred to in this section as “the plaintiff,” suffering a loss, allegedly |
resulting out of the ownership, maintenance, or use of a motor vehicle by an insured or self-insured, |
and allegedly resulting from liability imposed by law for property damage, bodily injury, or death, |
may, at his or her election, whenever the claim is for fifty thousand dollars ($50,000) or less, submit |
the matter to arbitration pursuant to chapter 3 of title 10; |
(2) Selection of arbitrator. After submission to arbitration by the plaintiff, one arbitrator |
shall be selected from the list of qualified arbitrators of the court annexed arbitration program of |
the superior court in the same manner as arbitrators are selected in accordance with the rules of that |
program. Each party shall share the expenses of arbitration in accordance with the rules of the court |
annexed arbitration program; |
(3) Hearings. The arbitrator shall call a hearing and provide seven (7) days notice of the |
time and place of the hearing to the parties. The hearing shall be informal, and the rules of evidence |
prevailing in judicial proceedings shall be binding. Any and all documentary evidence and other |
data deemed relevant by the arbitrators may be received in evidence. The arbitrators arbitrator |
shall have the power to administer oaths and to require by subpoena the attendance and testimony |
of witnesses, and the production of books, records, and other evidence, relative or pertinent to the |
issues presented to them for determination. The decision of the arbitrators arbitrator shall be |
binding upon the parties unless: |
(i) In the event that suit has not been instituted, either party reserves his or her right to a |
jury trial by giving notice of this reservation of right to the other party or parties and to the |
arbitrators arbitrator within sixty (60) days of the arbitrators arbitrator's award by certified |
mail return receipt requested; or |
(ii) In the event that suit has been instituted, either party files a request for a jury trial with |
the court and with notice to the other party or parties within sixty (60) days of the arbitrator’s award. |
If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators arbitrator |
shall not be admissible; |
(4) Statute of limitations. Notwithstanding the foregoing, a suit shall be instituted in order |
to bring the action within any applicable statute of limitations, but the suit will be stayed until an |
arbitrators arbitrator's award has been made or the case reached for trial; |
(5) Agreements to arbitrate. Uninsured motorist contracts shall be governed by the |
provisions of § 10-3-2. |
(b) Every person who maintains motor vehicle liability insurance shall, when making an |
application for a motor vehicle operator’s license, or the renewal of that license, or when registering |
a motor vehicle, agree in writing on a form provided by the director of the department of |
transportation to be bound by the provisions of this chapter. |
SECTION 13. Section 27-14.3-32 of the General Laws in Chapter 27-14.3 entitled |
"Insurers’ Rehabilitation and Liquidation Act" is hereby amended to read as follows: |
27-14.3-32. Voidable preferences and liens. |
(a)(1) A preference is a transfer of any of the property of an insurer to or for the benefit of |
a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one year |
before the filing of a successful petition for liquidation under this chapter, the effect of which |
transfer may be to enable the creditor to obtain a greater percentage of this debt than another |
creditor of the same class would receive. If a liquidation order is entered while the insurer is already |
subject to a rehabilitation order, then the transfers shall be deemed preferences if made or suffered |
within one year before the filing of the successful petition for rehabilitation, or within two (2) years |
before the filing of the successful petition for liquidation, whichever time is shorter. |
(2) Any preference may be avoided by the liquidator if: |
(i) The insurer was insolvent at the time of the transfer; |
(ii) The transfer was made within four (4) months before the filing of the petition; |
(iii) The creditor receiving it or to be benefited by it or his or her agent acting with reference |
to it had, at the time when the transfer was made, reasonable cause to believe that the insurer was |
insolvent or was about to become insolvent; or |
(iv) The creditor receiving it was an officer, or any employee or attorney or other person |
who was in fact in a position of comparable influence in the insurer to an officer whether or not he |
or she held the petition position, or any shareholder holding directly or indirectly more than five |
percent (5%) of any class of any equity security issued by the insurer, or any other person, firm, |
corporation, association, or aggregation of persons with whom the insurer did not deal at arm’s |
length. |
(3) Where the preference is voidable, the liquidator may recover the property or, if it has |
been converted, its value from any person who has received or converted the property; provided, |
that where a bona fide purchaser or lienor has given less than fair equivalent value, he or she shall |
have a lien upon the property to the extent of the consideration actually given by him or her. Where |
a preference by way of lien or security title is voidable, the court may on due notice order the lien |
or title preserved for the benefit of the estate, in the event the lien or title shall pass to the liquidator. |
(4) Notwithstanding subsection (a)(2) of this section, or any other provision of this chapter, |
no receiver or any other person shall avoid any preference arising under or in connection with any |
pledge, security, credit, collateral, loan, advances, reimbursement or guarantee agreement or |
arrangement or any similar agreement, arrangement, or other credit enhancement to which a federal |
home loan bank, as defined in § 27-14.3-5, is a party. |
(b)(1) A transfer of property other than real property shall be deemed made or suffered |
when it becomes so far perfected that no subsequent lien obtainable by legal or equitable |
proceedings on a simple contract could become superior to the rights of the transferee. |
(2) A transfer of real property shall be deemed made or suffered when it becomes so far |
perfected that no subsequent bona fide purchaser from the insurer could obtain rights superior to |
the rights of the transferee. |
(3) A transfer which creates an equitable lien shall not be deemed perfected if there are |
available means by which a legal lien could be created. |
(4) A transfer not perfected prior to the filing of a petition for liquidation shall be deemed |
made immediately before the filing of the successful petition. |
(5) The provisions of this subsection apply whether or not there are or were creditors who |
might have obtained liens or persons who might have become bona fide purchasers. |
(c)(1) A lien obtainable by legal or equitable proceedings upon a simple contract is one |
arising in the ordinary course of the proceedings upon the entry or docketing of a judgment or |
decree, or upon attachment, garnishment, execution, or a similar process, whether before, upon, or |
after judgment or decree and whether before or upon levy. It does not include liens that under |
applicable law are given a special priority over other liens which are prior in time. |
(2) A lien obtainable by legal or equitable proceedings could become superior to the rights |
of a transferee or a purchaser could obtain rights superior to the rights of a transferee, within the |
meaning of subsection (b) of this section, if the consequences would follow only from the lien or |
purchase itself, or from the lien or purchase followed by any step wholly within the control of the |
lienholder or purchaser, with or without the aid of ministerial action by public officials. That lien |
could not become superior and that purchase could not create superior rights for the purpose of |
subsection (b) of this section through any acts subsequent to the obtaining of the lien or subsequent |
to the purchase which require the agreement or concurrence of any third party or which require any |
further judicial action or ruling. |
(d) A transfer of property for or on account of a new and contemporaneous consideration |
which is deemed under subsection (b) of this section made or suffered after the transfer because of |
delay in perfecting it does not by this become a transfer for or on account of an antecedent debt if |
any acts required by the applicable law to be performed in order to perfect the transfer as against |
liens or bona fide purchasers’ rights are performed within twenty-one (21) days or any period |
expressly allowed by the law, whichever is less. A transfer to secure a future loan, if the loan is |
actually made, or a transfer, which becomes security for a future loan, shall have the same effect |
as a transfer for or on account of a new and contemporaneous consideration. |
(e) If any lien deemed voidable under subdivision (a)(2) of this section has been dissolved |
by the furnishing of a bond or other obligation, the surety on which has been indemnified directly |
or indirectly by the transfer of or the creation of a lien upon any property of an insurer before the |
filing of a petition under this chapter which results in a liquidation order, the indemnifying transfer |
or lien shall also be deemed voidable. |
(f) The property affected by any lien deemed voidable under subsections (a) and (e) of this |
section shall be discharged from the lien, and that property and any of the indemnifying property |
transferred to or for the benefit of a surety shall pass to the liquidator, except that the court may on |
due notice order any lien preserved for the benefit of the estate and the court may direct that |
conveyance executed as may be proper or adequate to evidence the title of the liquidator. |
(g) The superior court for the county of Providence shall have summary jurisdiction of any |
proceeding by the liquidator to hear and determine the rights of any parties under this section. |
Reasonable notice of any hearing in the proceeding shall be given to all parties in interest, including |
the obligee of a releasing bond or other similar obligation. Where an order is entered for the |
recovery of indemnifying property in kind or for the avoidance of an indemnifying lien the court, |
upon application of any party in interest, shall in the same proceeding ascertain the value of the |
property or lien, and if the value is less than the amount for which the property is indemnity or than |
the amount of the lien, the transferee or lienholder may elect to retain the property or lien upon |
payment of its value, as ascertained by the court, to the liquidator, within any reasonable times as |
the court shall fix. |
(h) The liability of the surety under a releasing bond or other similar obligation shall be |
discharged to the extent of the value of the indemnifying property recovered or the indemnifying |
lien nullified and avoided by the liquidator, or where the property is retained under subsection (g) |
of this section to the extent of the amount paid to the liquidator. |
(i) If a creditor has been preferred, and afterward in good faith gives the insurer further |
credit without security of any kind for property which becomes a part of the insurer’s estate, the |
amount of the new credit remaining unpaid at the time of the petition may be set off against the |
preference which would be recoverable from him or her. |
(j) If an insurer, directly or indirectly, within one year before the filing of a successful |
petition for liquidation under this chapter, or at any time in contemplation of a proceeding to |
liquidate it, pays money or transfers property to an attorney at law for services rendered or to be |
rendered, the transactions may be examined by the court on its own motion or shall be examined |
by the court on petition of the liquidator and shall be held valid only to the extent of a reasonable |
amount to be determined by the court, and the excess may be recovered by the liquidator for the |
benefits of the estate; provided, that where the attorney is in a position of influence in the insurer |
or an affiliate of the insurer, payment of any money or the transfer of any property to the attorney |
at law for services rendered or to be rendered shall be governed by the provision of subdivision |
(a)(2)(iv) of this section. |
(k)(1) Every officer, manager, employee, shareholder, member, subscriber, attorney, or any |
other person acting on behalf of the insurer who knowingly participates in giving any preference |
when he or she has reasonable cause to believe the insurer is or is about to become insolvent at the |
time of the preference shall be personally liable to the liquidator for the amount of the preference. |
It is permissible to infer that there is a reasonable cause to believe this if the transfer was made |
within four (4) months before the date of filing of this successful petition for liquidation. |
(2) Every person receiving any property from the insurer or the benefit of the property as |
a preference voidable under subsection (a) of this section shall be personally liable for it and shall |
be bound to account to the liquidator. |
(3) Nothing in this subsection shall prejudice any other claim by the liquidator against any |
person. |
SECTION 14. Section 27-18-25 of the General Laws in Chapter 27-18 entitled "Accident |
and Sickness Insurance Policies" is hereby amended to read as follows: |
27-18-25. Unfair discrimination prohibited. |
Notwithstanding any provision of any policy of insurance, certificate, or service contract |
issued in this state, whenever the insurance policy, certificate, or service contract provides for |
reimbursement for any services that may be legally performed by any person licensed under the |
provisions of chapters 29, 30, 35 35.1 and 37 of title 5, reimbursement under the insurance policy, |
certificate, or service contract shall be based upon a determination of medical necessity and shall |
not be denied because of race, color, or creed, nor shall any insurer make or permit any unfair |
discrimination against particular individuals or persons licensed under chapters 29, 30, 35 35.1 and |
37 of title 5. |
SECTION 15. Section 27-18.5-2 of the General Laws in Chapter 27-18.5 entitled |
"Individual Health Insurance Coverage" is hereby amended to read as follows: |
27-18.5-2. Definitions. |
The following words and phrases as used in this chapter have the following meanings |
unless a different meaning is required by the context: |
(1) “Bona fide association” means, with respect to health insurance coverage offered in |
this state, an association that: |
(i) Has been actively in existence for at least five (5) years; |
(ii) Has been formed and maintained in good faith for purposes other than obtaining |
insurance; |
(iii) Does not condition membership in the association on any health status-related factor |
relating to an individual (including an employee of an employer or a dependent of an employee); |
(iv) Makes health insurance coverage offered through the association available to all |
members regardless of any health status-related factor relating to the members (or individuals |
eligible for coverage through a member); |
(v) Does not make health insurance coverage offered through the association available |
other than in connection with a member of the association; |
(vi) Is composed of persons having a common interest or calling; |
(vii) Has a constitution and bylaws; and |
(viii) Meets any additional requirements that the director may prescribe by regulation; |
(2) “COBRA continuation provision” means any of the following: |
(i) Section 4980(B) of the Internal Revenue Code of 1986, 26 U.S.C. § 4980B, other than |
subsection (f)(1) of that section insofar as it relates to pediatric vaccines; |
(ii) Part 6 of subtitle B of Title I of the Employee Retirement Income Security Act of 1974, |
29 U.S.C. § 1161 et seq., other than Section 609 of that act, 29 U.S.C. § 1169; or |
(iii) Title XXII of the United States Public Health Service Act, 42 U.S.C. § 300bb-1 et seq.; |
(3) “Commissioner” means the health insurance commissioner; |
(4) “Creditable coverage” has the same meaning as defined in the United States Public |
Health Service Act, Section 2701(c), 42 U.S.C. § 300gg(c), as added by P.L. 104-191 § 42 U.S.C. |
§ 300gg-3(c); |
(5) “Director” means the director of the department of business regulation; |
(6) “Eligible individual” means an individual: |
(i) For whom, as of the date on which the individual seeks coverage under this chapter, the |
aggregate of the periods of creditable coverage is eighteen (18) or more months and whose most |
recent prior creditable coverage was under a group health plan, a governmental plan established or |
maintained for its employees by the government of the United States or by any of its agencies or |
instrumentalities, or church plan (as defined by the Employee Retirement Income Security Act of |
1974, 29 U.S.C. § 1001 et seq.); |
(ii) Who is not eligible for coverage under a group health plan, part A or part B of title |
XVIII of the Social Security Act, 42 U.S.C. § 1395c et seq. or 42 U.S.C. § 1395j et seq., or any |
state plan under title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (or any successor |
program), and does not have other health insurance coverage; |
(iii) With respect to whom the most recent coverage within the coverage period was not |
terminated based on a factor described in § 27-18.5-4(b) (relating to nonpayment of premiums or |
fraud); |
(iv) If the individual had been offered the option of continuation coverage under a COBRA |
continuation provision, or under chapter 19.1 of this title or under a similar state program of this |
state or any other state, who elected the coverage; and |
(v) Who, if the individual elected COBRA continuation coverage, has exhausted the |
continuation coverage under the provision or program; |
(7) “Group health plan” means an employee welfare benefit plan as defined in section 3(1) |
of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1), to the extent that |
the plan provides medical care and including items and services paid for as medical care to |
employees or their dependents as defined under the terms of the plan directly or through insurance, |
reimbursement or otherwise; |
(8) “Health insurance carrier” or “carrier” means any entity subject to the insurance laws |
and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to |
contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare |
services, including, without limitation, an insurance company offering accident and sickness |
insurance, a health maintenance organization, a nonprofit hospital, medical or dental service |
corporation, or any other entity providing a plan of health insurance or health benefits by which |
healthcare services are paid or financed for an eligible individual or his or her dependents by such |
entity on the basis of a periodic premium, paid directly or through an association, trust, or other |
intermediary, and issued, renewed, or delivered within or without Rhode Island to cover a natural |
person who is a resident of this state, including a certificate issued to a natural person that evidences |
coverage under a policy or contract issued to a trust or association; |
(9)(i) “Health insurance coverage” means a policy, contract, certificate, or agreement |
offered by a health insurance carrier to provide, deliver, arrange for, pay for, or reimburse any of |
the costs of healthcare services. Health insurance coverage includes short-term limited-duration |
policies and any policy that pays on a cost-incurred basis, except as otherwise specifically exempted |
by subsection (9)(ii), (iii), (iv), or (v) of this section. |
(ii) “Health insurance coverage” does not include one or more, or any combination of, the |
following: |
(A) Coverage only for accident, or disability income insurance, or any combination of |
those; |
(B) Coverage issued as a supplement to liability insurance; |
(C) Liability insurance, including general liability insurance and automobile liability |
insurance; |
(D) Workers’ compensation or similar insurance; |
(E) Automobile medical payment insurance; |
(F) Credit-only insurance; |
(G) Coverage for on-site medical clinics; and |
(H) Other similar insurance coverage, specified in federal regulations issued pursuant to |
P.L. 104-191, under which benefits for medical care are secondary or incidental to other insurance |
benefits; |
(I) [Deleted by P.L. 2019, ch. 88, art. 11, § 1]; |
(iii) “Health insurance coverage” does not include the following benefits if they are |
provided under a separate policy, certificate, or contract of insurance or are not an integral part of |
the coverage: |
(A) Limited scope dental or vision benefits; |
(B) Benefits for long-term care, nursing home care, home health care, community-based |
care, or any combination of these; |
(C) Any other similar, limited benefits that are specified in federal regulation issued |
pursuant to P.L. 104-191; |
(iv) “Health insurance coverage” does not include the following benefits if the benefits are |
provided under a separate policy, certificate, or contract of insurance, there is no coordination |
between the provision of the benefits and any exclusion of benefits under any group health plan |
maintained by the same plan sponsor, and the benefits are paid with respect to an event without |
regard to whether benefits are provided with respect to the event under any group health plan |
maintained by the same plan sponsor: |
(A) Coverage only for a specified disease or illness; or |
(B) Hospital indemnity or other fixed indemnity insurance; and |
(v) “Health insurance coverage” does not include the following if it is offered as a separate |
policy, certificate, or contract of insurance: |
(A) Medicare supplemental health insurance as defined under section 1882(g)(1) of the |
Social Security Act, 42 U.S.C. § 1395ss(g)(1); |
(B) Coverage supplemental to the coverage provided under 10 U.S.C. § 1071 et seq.; and |
(C) Similar supplemental coverage provided to coverage under a group health plan; |
(10) “Health status-related factor” means any of the following factors: |
(i) Health status; |
(ii) Medical condition, including both physical and mental illnesses; |
(iii) Claims experience; |
(iv) Receipt of health care; |
(v) Medical history; |
(vi) Genetic information; |
(vii) Evidence of insurability, including conditions arising out of acts of domestic violence; |
and |
(viii) Disability; |
(11) “High-risk individuals” means those individuals who do not pass medical |
underwriting standards due to high healthcare needs or risks; |
(12) “Individual market” means the market for health insurance coverage offered to |
individuals other than in connection with a group health plan; |
(13) “Network plan” means health insurance coverage offered by a health insurance carrier |
under which the financing and delivery of medical care, including items and services paid for as |
medical care, are provided, in whole or in part, through a defined set of providers under contract |
with the carrier; |
(14) “Preexisting condition” means, with respect to health insurance coverage, a condition |
(whether physical or mental), regardless of the cause of the condition, that was present before the |
date of enrollment for the coverage, for which medical advice, diagnosis, care, or treatment was |
recommended or received within the six-month (6) period ending on the enrollment date. Genetic |
information shall not be treated as a preexisting condition in the absence of a diagnosis of the |
condition related to that information; and |
(15) “Wellness health benefit plan” means that health benefit plan offered in the individual |
market pursuant to § 27-18.5-8. |
SECTION 16. Section 27-18.6-2 of the General Laws in Chapter 27-18.6 entitled "Large |
Group Health Insurance Coverage" is hereby amended to read as follows: |
27-18.6-2. Definitions. |
The following words and phrases as used in this chapter have the following meanings |
unless a different meaning is required by the context: |
(1) “Affiliation period” means a period which, under the terms of the health insurance |
coverage offered by a health maintenance organization, must expire before the health insurance |
coverage becomes effective. The health maintenance organization is not required to provide health |
care services or benefits during the period and no premium shall be charged to the participant or |
beneficiary for any coverage during the period; |
(2) “Beneficiary” has the meaning given that term under section 3(8) of the Employee |
Retirement Security Act of 1974, 29 U.S.C. § 1002(8); |
(3) “Bona fide association” means, with respect to health insurance coverage in this state, |
an association which: |
(i) Has been actively in existence for at least five (5) years; |
(ii) Has been formed and maintained in good faith for purposes other than obtaining |
insurance; |
(iii) Does not condition membership in the association on any health status-relating factor |
relating to an individual (including an employee of an employer or a dependent of an employee); |
(iv) Makes health insurance coverage offered through the association available to all |
members regardless of any health status-related factor relating to the members (or individuals |
eligible for coverage through a member); |
(v) Does not make health insurance coverage offered through the association available |
other than in connection with a member of the association; |
(vi) Is composed of persons having a common interest or calling; |
(vii) Has a constitution and bylaws; and |
(viii) Meets any additional requirements that the director may prescribe by regulation; |
(4) “COBRA continuation provision” means any of the following: |
(i) Section 4980(B) of the Internal Revenue Code of 1986, 26 U.S.C. § 4980B, other than |
the subsection (f)(1) of that section insofar as it relates to pediatric vaccines; |
(ii) Part 6 of subtitle B of title 1 of the Employee Retirement Income Security Act of 1974, |
29 U.S.C. § 1161 et seq., other than section 609 of that act, 29 U.S.C. § 1169; or |
(iii) Title XXII of the United States Public Health Service Act, 42 U.S.C. § 300bb-1 et seq.; |
(5) “Creditable coverage” has the same meaning as defined in the United States Public |
Health Service Act, section 2701(c), 42 U.S.C. § 300gg(c) , as added by P.L. 104-191 42 U.S.C. |
§ 300gg-3(c); |
(6) “Church plan” has the meaning given that term under section 3(33) of the Employee |
Retirement Income Security Act of 1974, 29 U.S.C. § 1002(33); |
(7) “Director” means the director of the department of business regulation; |
(8) “Employee” has the meaning given that term under section 3(6) of the Employee |
Retirement Income Security Act of 1974, 29 U.S.C. § 1002(6); |
(9) “Employer” has the meaning given that term under section 3(5) of the Employee |
Retirement Income Security Act of 1974, 29 U.S.C. § 1002(5), except that the term includes only |
employers of two (2) or more employees; |
(10) “Enrollment date” means, with respect to an individual covered under a group health |
plan or health insurance coverage, the date of enrollment of the individual in the plan or coverage |
or, if earlier, the first day of the waiting period for the enrollment; |
(11) “Governmental plan” has the meaning given that term under section 3(32) of the |
Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(32), and includes any |
governmental plan established or maintained for its employees by the government of the United |
States, the government of any state or political subdivision of the state, or by any agency or |
instrumentality of government; |
(12) “Group health insurance coverage” means, in connection with a group health plan, |
health insurance coverage offered in connection with that plan; |
(13) “Group health plan” means an employee welfare benefits plan as defined in section |
3(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(1), to the extent |
that the plan provides medical care and including items and services paid for as medical care to |
employees or their dependents as defined under the terms of the plan directly or through insurance, |
reimbursement or otherwise; |
(14) “Health insurance carrier” or “carrier” means any entity subject to the insurance laws |
and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to |
contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care |
services, including, without limitation, an insurance company offering accident and sickness |
insurance, a health maintenance organization, a nonprofit hospital, medical or dental service |
corporation, or any other entity providing a plan of health insurance, health benefits, or health |
services; |
(15)(i) “Health insurance coverage” means a policy, contract, certificate, or agreement |
offered by a health insurance carrier to provide, deliver, arrange for, pay for, or reimburse any of |
the costs of health care services. Health insurance coverage does include short-term and |
catastrophic health insurance policies, and a policy that pays on a cost-incurred basis, except as |
otherwise specifically exempted in this definition; |
(ii) “Health insurance coverage” does not include one or more, or any combination of, the |
following “excepted benefits”: |
(A) Coverage only for accident, or disability income insurance, or any combination of |
those; |
(B) Coverage issued as a supplement to liability insurance; |
(C) Liability insurance, including general liability insurance and automobile liability |
insurance; |
(D) Workers’ compensation or similar insurance; |
(E) Automobile medical payment insurance; |
(F) Credit-only insurance; |
(G) Coverage for on-site medical clinics; and |
(H) Other similar insurance coverage, specified in federal regulations issued pursuant to |
P.L. 104-191, under which benefits for medical care are secondary or incidental to other insurance |
benefits; |
(iii) “Health insurance coverage” does not include the following “limited, excepted |
benefits” if they are provided under a separate policy, certificate of insurance, or are not an integral |
part of the plan: |
(A) Limited scope dental or vision benefits; |
(B) Benefits for long-term care, nursing home care, home health care, community-based |
care, or any combination of those; and |
(C) Any other similar, limited benefits that are specified in federal regulations issued |
pursuant to P.L. 104-191; |
(iv) “Health insurance coverage” does not include the following “noncoordinated, excepted |
benefits” if the benefits are provided under a separate policy, certificate, or contract of insurance, |
there is no coordination between the provision of the benefits and any exclusion of benefits under |
any group health plan maintained by the same plan sponsor, and the benefits are paid with respect |
to an event without regard to whether benefits are provided with respect to the event under any |
group health plan maintained by the same plan sponsor: |
(A) Coverage only for a specified disease or illness; and |
(B) Hospital indemnity or other fixed indemnity insurance; |
(v) “Health insurance coverage” does not include the following “supplemental, excepted |
benefits” if offered as a separate policy, certificate, or contract of insurance: |
(A) Medicare supplemental health insurance as defined under section 1882(g)(1) of the |
Social Security Act, 42 U.S.C. § 1395ss(g)(1); |
(B) Coverage supplemental to the coverage provided under 10 U.S.C. § 1071 et seq.; and |
(C) Similar supplemental coverage provided to coverage under a group health plan; |
(16) “Health maintenance organization” (“HMO”) means a health maintenance |
organization licensed under chapter 41 of this title; |
(17) “Health status-related factor” means any of the following factors: |
(i) Health status; |
(ii) Medical condition, including both physical and mental illnesses; |
(iii) Claims experience; |
(iv) Receipt of health care; |
(v) Medical history; |
(vi) Genetic information; |
(vii) Evidence of insurability, including contributions arising out of acts of domestic |
violence; and |
(viii) Disability; |
(18) “Large employer” means, in connection with a group health plan with respect to a |
calendar year and a plan year, an employer who employed an average of at least fifty-one (51) |
employees on business days during the preceding calendar year and who employs at least two (2) |
employees on the first day of the plan year. In the case of an employer which was not in existence |
throughout the preceding calendar year, the determination of whether the employer is a large |
employer shall be based on the average number of employees that is reasonably expected the |
employer will employ on business days in the current calendar year; |
(19) “Large group market” means the health insurance market under which individuals |
obtain health insurance coverage (directly or through any arrangement) on behalf of themselves |
(and their dependents) through a group health plan maintained by a large employer; |
(20) “Late enrollee” means, with respect to coverage under a group health plan, a |
participant or beneficiary who enrolls under the plan other than during: |
(i) The first period in which the individual is eligible to enroll under the plan; or |
(ii) A special enrollment period; |
(21) “Medical care” means amounts paid for: |
(i) The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for |
the purpose of affecting any structure or function of the body; |
(ii) Amounts paid for transportation primarily for and essential to medical care referred to |
in paragraph (i) of this subdivision; and |
(iii) Amounts paid for insurance covering medical care referred to in paragraphs (i) and (ii) |
of this subdivision; |
(22) “Network plan” means health insurance coverage offered by a health insurance carrier |
under which the financing and delivery of medical care including items and services paid for as |
medical care are provided, in whole or in part, through a defined set of providers under contract |
with the carrier; |
(23) “Participant” has the meaning given such term under section 3(7) of the Employee |
Retirement Income Security Act of 1974, 29 U.S.C. § 1002(7); |
(24) “Placed for adoption” means, in connection with any placement for adoption of a child |
with any person, the assumption and retention by that person of a legal obligation for total or partial |
support of the child in anticipation of adoption of the child. The child’s placement with the person |
terminates upon the termination of the legal obligation; |
(25) “Plan sponsor” has the meaning given that term under section 3(16)(B) of the |
Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(16)(B). “Plan sponsor” also |
includes any bona fide association, as defined in this section; |
(26) “Preexisting condition exclusion” means, with respect to health insurance coverage, a |
limitation or exclusion of benefits relating to a condition based on the fact that the condition was |
present before the date of enrollment for the coverage, whether or not any medical advice, |
diagnosis, care or treatment was recommended or received before the date; and |
(27) “Waiting period” means, with respect to a group health plan and an individual who is |
a potential participant or beneficiary in the plan, the period that must pass with respect to the |
individual before the individual is eligible to be covered for benefits under the terms of the plan. |
SECTION 17. Section 27-18.9-5 of the General Laws in Chapter 27-18.9 entitled "Benefit |
Determination and Utilization Review Act" is hereby amended to read as follows: |
27-18.9-5. Administrative and non-administrative benefit determination procedural |
requirements. |
(a) Procedural failure by claimant. |
(1) In the event of the failure of claimant or an authorized representative to follow the |
healthcare entities claims procedures for a pre-service claim the healthcare entity or its review agent |
must: |
(i) Notify claimant or the authorized representative, as appropriate, of this failure as soon |
as possible and no later than five (5) calendar days following the failure and this notification must |
also inform claimant of the proper procedures to file a pre-service claim; and |
(ii) Notwithstanding the above, if the pre-service claim relates to urgent or emergent |
healthcare services, the healthcare entity or its review agent must notify and inform claimant or the |
authorized representative, as appropriate, of the failure and proper procedures within twenty-four |
(24) hours following the failure. Notification may be oral, unless written notification is requested |
by the claimant or authorized representative. |
(2) Claimant must have stated name, specific medical condition or symptom and specific |
treatment, service, or product for which approval is requested and submitted to proper claim |
processing unit. |
(b) Utilization review agent procedural requirements: |
(1) All initial, prospective, and concurrent non-administrative, adverse benefit |
determinations of a healthcare service that had been ordered by a physician, dentist, or other |
practitioner shall be made, documented, and signed by a licensed practitioner with the same |
licensure status as the ordering provider; |
(2) Utilization review agents are not prohibited from allowing appropriately qualified |
review agency staff from engaging to engage in discussions with the attending provider, the |
attending provider’s designee or appropriate healthcare facility and office personnel regarding |
alternative service and/or treatment options. Such a discussion shall not constitute an adverse |
benefit determination; provided, however, that any change to the attending provider’s original order |
and/or any decision for an alternative level of care must be made and/or appropriately consented to |
by the attending provider or the provider’s designee responsible for treating the beneficiary and |
must be documented by the review agent; and |
(3) A utilization review agent shall not retrospectively deny authorization for healthcare |
services provided to a covered person when an authorization has been obtained for that service |
from the review agent unless the approval was based upon inaccurate information material to the |
review or the healthcare services were not provided consistent with the provider’s submitted plan |
of care and/or any restrictions included in the prior approval granted by the review agent. |
SECTION 18. Sections 42-7.2-20.4 and 42-7.2-20.8 of the General Laws in Chapter 42- |
7.2 entitled "Office of Health and Human Services" are hereby amended to read as follows: |
42-7.2-20.4. Contributions to be held in trust. |
(a) Funds contributed to the program shall be held in trust in a special account or accounts |
and shall not be co-mingled with any state funds appropriated by the general assembly for the |
support of or the programs administered by the executive office. |
(b) There shall be separate accounting for each designated beneficiary. |
(c) Any designated beneficiary under such program may, directly or indirectly, direct the |
investment of any contributions to the program (or earnings thereon) no more than the allowable |
limit of 26 U.S.C. § 529A. |
42-7.2-20.8. Creditors. |
Notwithstanding any provision of the general or public laws to the contrary, money in the |
ABLE program shall be exempt from creditor process and shall not be liable to attachment, |
garnishment, or other process, nor shall it be seized, taken, appropriated or applied by any legal or |
equitable process or operation of law to pay any debt or liability or of any contributor or |
beneficiary; provided, however, that the state of residency of the designated beneficiary of an |
ABLE account shall be a creditor of such account in the event of the death of the designated |
beneficiary. |
SECTION 19. Section 42-11-10 of the General Laws in Chapter 42-11 entitled |
"Department of Administration" is hereby amended to read as follows: |
42-11-10. Statewide planning program. |
(a) Findings. The general assembly finds that the people of this state have a fundamental |
interest in the orderly development of the state; the state has a positive interest and demonstrated |
need for establishment of a comprehensive, strategic state planning process and the preparation, |
maintenance, and implementation of plans for the physical, economic, and social development of |
the state; the continued growth and development of the state presents problems that cannot be met |
by the cities and towns individually and that require effective planning by the state; and state and |
local plans and programs must be properly coordinated with the planning requirements and |
programs of the federal government. |
(b) Establishment of statewide planning program. |
(1) A statewide planning program is hereby established to prepare, adopt, and amend |
strategic plans for the physical, economic, and social development of the state and to recommend |
these to the governor, the general assembly, and all others concerned. |
(2) All strategic planning, as defined in subsection (c) of this section, undertaken by all |
departments and agencies of the executive branch unless specifically exempted, shall be conducted |
by or under the supervision of the statewide planning program. The statewide planning program |
shall consist of a state planning council, and the division of planning, which shall be a division |
within the department of administration. |
(c) Strategic planning. Strategic planning includes the following activities: |
(1) Establishing or identifying general goals; |
(2) Refining or detailing these goals and identifying relationships between them; |
(3) Formulating, testing, and selecting policies and standards that will achieve desired |
objectives; |
(4) Preparing long-range or system plans or comprehensive programs that carry out the |
policies and set time schedules, performance measures, and targets; |
(5) Preparing functional, short-range plans or programs that are consistent with established |
or desired goals, objectives, and policies, and with long-range or system plans or comprehensive |
programs where applicable, and that establish measurable, intermediate steps toward their |
accomplishment of the goals, objectives, policies, and/or long-range system plans; |
(6) Monitoring the planning of specific projects and designing of specific programs of short |
duration by the operating departments, other agencies of the executive branch, and political |
subdivisions of the state to ensure that these are consistent with, and carry out the intent of, |
applicable strategic plans; and |
(7) Reviewing the execution of strategic plans, and the results obtained, and making |
revisions necessary to achieve established goals. |
(d) State guide plan. Components of strategic plans prepared and adopted in accordance |
with this section may be designated as elements of the state guide plan. The state guide plan shall |
be comprised of functional elements or plans dealing with land use; physical development and |
environmental concerns; economic development; housing production; energy supply, including the |
development of renewable energy resources in Rhode Island, and energy access, use, and |
conservation; human services; climate change and resiliency; and other factors necessary to |
accomplish the objective of this section. The state guide plan shall be a means for centralizing, |
integrating, and monitoring long-range goals, policies, plans, and implementation activities related |
thereto. State agencies concerned with specific subject areas, local governments, and the public |
shall participate in the state guide planning process, which shall be closely coordinated with the |
budgeting process. |
(e) Membership of state planning council. The state planning council shall consist of the |
following members: |
(1) The director of the department of administration as chairperson; |
(2) The director, policy office, in the office of the governor, as vice-chairperson; |
(3) The governor, or his or her designee; |
(4) [Deleted by P.L. 2019, ch. 88, art. 4, § 13.] |
(5) The secretary of housing or designee; |
(6) The highest-ranking administrative officer of the division of planning, as secretary; |
(7) The president of the Rhode Island League of Cities and Towns or his or her designee; |
(8) The executive director of the Rhode Island League of Cities and Towns; |
(9) Three (3) chief elected officials of cities and towns appointed by the governor after |
consultation with the Rhode Island League of Cities and Towns, one of whom shall be from a |
community with a population greater than 40,000 persons; one of whom shall be from a community |
with a population of between 20,000 and 40,000 persons; and one of whom shall be from a |
community with a population less than 20,000 persons; |
(10) One representative of a nonprofit community development or housing organization |
appointed by the governor; |
(11) Four (4) public members, appointed by the governor, one of whom shall be an |
employer with fewer than fifty (50) employees; one of whom shall be an employer with greater |
than fifty (50) employees; one of whom shall represent a professional planning or engineering |
organization in Rhode Island; and one of whom shall represent a chamber of commerce or |
economic development organization; |
(12) Two (2) representatives of private, nonprofit, environmental or environmental justice |
advocacy organizations, both to be appointed by the governor; |
(13) The director of planning and development for the city of Providence; |
(14) The director of the department of transportation; |
(15) The director of the department of environmental management; |
(16) The director of the department of health; |
(17) The chief executive officer of the commerce corporation; |
(18) The commissioner of the Rhode Island office of energy resources; |
(19) The chief executive officer of the Rhode Island public transit authority; |
(20) The executive director of Rhode Island housing; |
(21) The executive director of the coastal resources management council; and |
(22) The director of the Rhode Island emergency management agency. |
(f) Powers and duties of state planning council. The state planning council shall have the |
following powers and duties: |
(1) To adopt strategic plans as defined in this section and the long-range state guide plan, |
and to modify and amend any of these, following the procedures for notification and public hearing |
set forth in § 42-35-3 in accordance with the provisions of chapter 35 of this title, and to |
recommend and encourage implementation of these goals to the general assembly, state and federal |
agencies, and other public and private bodies; approval of strategic plans by the governor; and to |
ensure that strategic plans and the long-range state guide plan are consistent with the findings, |
intent, and goals set forth in § 45-22.2-3, the “Rhode Island comprehensive planning and land use |
regulation act”; |
(2) To coordinate the planning and development activities of all state agencies, in |
accordance with strategic plans prepared and adopted as provided for by this section; |
(3) To review and comment on the proposed annual work program of the statewide |
planning program; |
(4) To adopt rules and standards and issue orders concerning any matters within its |
jurisdiction as established by this section and amendments to it; |
(5) To establish advisory committees and appoint members thereto representing diverse |
interests and viewpoints as required in the state planning process and in the preparation or |
implementation of strategic plans. At minimum, the state planning council shall appoint permanent |
committees: |
(i) A technical committee, comprised of public members from different geographic areas |
of the state representing diverse communities. This committee shall advise the state planning |
council on issues related to local comprehensive planning and land use. This committee shall also |
advise the state planning council on any other matter referred to it by the council; and |
(ii) An executive committee consisting of major participants of a Rhode Island geographic |
information system with oversight responsibility for its activities; and |
(iii) A transportation advisory committee, made up of diverse representation, including, |
but not limited to, municipal elected and appointed officials; representatives of various |
transportation sectors, departments, and agencies; and other groups and agencies with an interest |
in transportation operations, maintenance, construction, and policy, who shall review |
transportation-related plans and amendments and recommend action to the state planning council; |
(6) To adopt, amend, and maintain, as an element of the state guide plan or as an |
amendment to an existing element of the state guide plan, standards and guidelines for the location |
of eligible, renewable energy resources and renewable energy facilities in Rhode Island with due |
consideration for the location of such resources and facilities in commercial and industrial areas, |
agricultural areas, areas occupied by public and private institutions, and property of the state and |
its agencies and corporations, provided these areas are of sufficient size, and in other areas of the |
state as appropriate; |
(7) To act as the single, statewide metropolitan planning organization for transportation |
planning, and to promulgate all rules and regulations that are necessary thereto; and |
(8) To assist the Rhode Island infrastructure bank in establishing review criteria, evaluating |
applications, approving and issuing grants, and to assist municipalities pursuant to the provisions |
of chapter 11.4 of this title, and any rules or regulations promulgated thereunder. |
(g) Division of statewide planning. |
(1) The division of statewide planning shall be the principal staff agency of the state |
planning council for preparing and/or coordinating strategic plans for the comprehensive |
management of the state’s human, economic, and physical resources. The division of statewide |
planning shall recommend to the state planning council specific guidelines, standards, and |
programs to be adopted to implement strategic planning and the state guide plan and shall undertake |
any other duties established by this section and amendments thereto. |
(2) The division of statewide planning shall maintain records (which shall consist of files |
of complete copies) of all plans, recommendations, rules, and modifications or amendments thereto |
adopted or issued by the state planning council under this section. The records shall be open to the |
public. |
(3) The division of statewide planning shall manage and administer the Rhode Island |
geographic information system of land-related resources, and shall coordinate these efforts with |
other state departments and agencies, including the university of Rhode Island, which shall provide |
technical support and assistance in the development and maintenance of the system and its |
associated database. |
(4) The division of statewide planning shall coordinate and oversee the provision of |
technical assistance to political subdivisions of the state in preparing and implementing plans to |
accomplish the purposes, goals, objectives, policies, and/or standards of applicable elements of the |
state guide plan and shall make available to cities and towns data and guidelines that may be used |
in preparing comprehensive plans and elements thereof and in evaluating comprehensive plans and |
elements thereby. |
(h) [Deleted by P.L. 2011, ch. 215, § 4, and by P.L. 2011, ch. 313, § 4.] |
(i) The division of planning shall be the principal staff agency of the water resources board |
established pursuant to chapter 15 of title 46 (“Water Resources Board”) and the water resources |
board corporate established pursuant to chapter 15.1 of title 46 (“Water Supply Facilities”). |
SECTION 20. Section 42-11-13 of the General Laws in Chapter 42-11 entitled |
"Department of Administration" is hereby amended to read as follows: |
42-11-13. Rhode Island organ transplant fund. |
(a) There is hereby created the Rhode Island organ transplant fund, hereinafter referred to |
as “the fund”. The general treasurer shall invest and reinvest the same in accordance with § 35-10- |
2. The department of human services shall administer the organ transplant program. Disbursement |
of funds from the fund shall be made by the general treasurer upon receipt by him or her of properly |
authenticated vouchers from the department of human services. |
(b) The fund shall consist of all revenues received pursuant to § 44-30-2.1 44-30-2.5 and |
gifts, grants, and donations from public and private sources. All revenues credited to the fund shall |
not be subject to expenditure except for the purposes hereinafter stated. |
(c) The fund shall be used to help defray any expenses of human organ transplants incurred |
by Rhode Island residents and their families. For purposes of the fund, family shall be limited to |
the parents or spouse or guardian or next-of-kin of the recipient of the organ transplant. Expenses |
shall be limited to non-reimbursed costs associated with organ transplants including hospital and |
medical care, all drugs prescribed which relate to organ transplant maintenance (disbursement from |
fund for maintenance drugs shall be limited to fifty percent (50%) of average wholesale price or |
fifty percent (50%) of non-reimbursed costs whichever is less), and out-of-state living expenses of |
the family for a period of not more than sixty (60) days at the time of the organ transplant operation. |
(The disbursement from the fund for out-of-state living expenses shall not exceed the per diem rate |
allowed state employees for accommodations and sustenance.) Disbursement from the fund shall |
not be made until the principal of the fund equals fifteen thousand dollars ($15,000). The general |
treasurer shall publicly announce when the principal of the fund equals fifteen thousand dollars |
($15,000). Application for the disbursement from the fund shall not be made or accepted until the |
principal of the fund equals fifteen thousand dollars ($15,000). In addition to the foregoing |
allowable disbursements, disbursement for organ transplant recipients may be made from the organ |
transplant fund to meet the recipient’s spend-down requirement for the Rhode Island medical |
assistance program (Medicaid), provided that the recipient’s income does not exceed twelve |
thousand dollars ($12,000) per year, and the funds are repaid by the recipient and deposited in the |
organ transplant fund are repaid by the recipient and deposited in the organ transplant fund |
over the six (6) month Medicaid spend-down period in six (6) equal monthly payments. |
(d) Disbursements from the fund and the fund itself are not entitlement programs. The fund |
shall not incur a deficit. |
(e) The director of the department of human services shall promulgate rules and |
regulations, in accordance with the Administrative Procedures Act, § 42-35-1 et seq., to implement |
the operation of the fund. The director of the department of human services or his or her designee |
shall confer with the general treasurer prior to promulgating rules and regulations. |
(f) This fund shall operate prospectively provided, however, a Rhode Island resident on |
maintenance drugs as set forth in subsection (c) of this section may apply for disbursement after |
the principal of the fund equals fifteen thousand dollars ($15,000). |
SECTION 21. Section 42-12.2-2 of the General Laws in Chapter 42-12.2 entitled |
"Independent Living Services and Centers" is hereby amended to read as follows: |
42-12.2-2. Definitions. |
As used in this chapter: |
(a)(1) “Center for independent living” means a program of services or a facility which |
offers a combination of independent living services for individuals with significant disabilities or |
groups of individuals with significant disabilities such as, but not limited to: |
(1)(i) Intake counseling to determine the individual with significant disabilities need for |
specific independent living services; |
(2)(ii) Referrals and counseling services with respect to attendant care; |
(3)(iii) Counseling and advocacy services with respect to legal and economic rights and |
benefits; |
(4)(iv) Peer counseling; |
(5)(v) Independent living skills, counseling and training, including training in the |
maintenance of necessary equipment, counseling on therapy needs and programs, and special |
independent living skill training for individuals who are blind or deaf; |
(6)(vi) Housing and transportation referral and assistance; |
(7)(vii) Surveys, directories, and other activities to identify appropriate housing and |
accessible transportation and other support services; |
(8)(viii) Community group living arrangements; |
(9)(ix) Education and training necessary for living in the community and participating in |
community activities; |
(10)(x) Individual and group social and recreational activities; |
(11)(xi) Other programs and services necessary to provide resources, training, counseling |
services, or other assistance of substantial benefit in promoting the independence, productivity, and |
quality of life for individuals with significant disabilities. |
(b)(2) “Client directed services” means services that are planned and delivered with the |
active involvement of the client (consumer). |
(c)(3) “Consumer” means a person or groups of persons with severe disabilities who are or |
would be capable of independently managing and directing their own lives given the appropriate |
training and resources. |
(d)(4) “Consumer directed organization” means: |
(1)(i) An organization with substantial involvement of consumers on its boards of directors |
and at the staff level; |
(2)(ii) An organization which subscribes rigorously to a policy of client directed services. |
(e)(6) “Nonprofit organization” means an organization incorporated in the state of Rhode |
Island and exempt from federal taxation under the provisions of § 501(c)(3) of the Internal Revenue |
Code, 26 U.S.C. § 501(c)(3). |
(f)(5) “Individual with a significant disability” means an individual with a severe physical |
or mental impairment whose ability to function independently in the family or community or whose |
ability to obtain, maintain, or advance in employment is substantially limited and for whom the |
delivery of independent living services will improve the ability to function, continue functioning, |
or move towards functioning independently in the family or community or to continue in |
employment, respectively. |
SECTION 22. Section 42-12.3-5.1 of the General Laws in Chapter 42-12.3 entitled "Health |
Care for Children and Pregnant Women" is hereby amended to read as follows: |
42-12.3-5.1. Emergency Care. |
The department of human services shall ensure that managed care organizations providing |
services under this chapter comply with the “prudent lay person layperson” emergency care |
coverage standard as required by § 1931 (b) of Title XIX of the Social Security Act 42 U.S.C. § |
1396u-2. |
SECTION 23. Section 42-14.2-9 of the General Laws in Chapter 42-14.2 entitled |
"Department of Business Regulation — Automobile Wrecking and Salvage Yards" is hereby |
amended to read as follows: |
42-14.2-9. Denial or revoking of licenses. |
The department may deny an application for a license, or suspend or revoke a license after |
it has been granted, or refuse to renew a license for any of the following reasons: |
(1) Proof of unfitness of the applicant or licensee to engage in this business. |
(2) A material misstatement by the applicant or licensee in his application for a license or |
renewal thereof. |
(3) Willful failure of the applicant or licensee to comply with the provisions of this chapter |
or with any rule or regulation promulgated by the board department. |
(4) Proof that the applicant or licensee has willfully defrauded the owner of a motor vehicle. |
SECTION 24. Section 42-14.5-2.1 of the General Laws in Chapter 42-14.5 entitled "The |
Rhode Island Health Care Reform Act of 2004 — Health Insurance Oversight" is hereby amended |
to read as follows: |
42-14.5-2.1. Definitions. |
As used in this chapter: |
(1) “Accountability standards” means measures including service processes, client and |
population outcomes, practice standard compliance and fiscal integrity of social and human service |
providers on the individual contractual level and service type for all state contacts contracts of the |
state or any subdivision or agency to include, but not limited to, the department of children, youth |
and families (DCYF), the department of behavioral healthcare, developmental disabilities and |
hospitals (BHDDH), the department of human services (DHS), the department of health (DOH), |
and Medicaid. This may include mandatory reporting, consolidated, standardized reporting, audits |
regardless of organizational tax status, and accountability dashboards of aforementioned state |
departments or subdivisions that are regularly shared with the public. |
(2) “Executive Office of Health and Human Services (EOHHS)” means the department |
that serves as “principal agency of the executive branch of state government” (§ 42-7.2-2) |
responsible for managing the departments and offices of: health (RIDOH), human services (DHS), |
healthy aging (OHA), veterans services (VETS), children, youth and families (DCYF), and |
behavioral healthcare, developmental disabilities and hospitals (BHDDH). EOHHS is also |
designated as the single state agency with authority to administer the Medicaid program in Rhode |
Island. |
(3) “Rate review” means the process of reviewing and reporting of specific trending factors |
that influence the cost of service that informs rate setting. |
(4) “Rate setting” means the process of establishing rates for social and human service |
programs that are based on a thorough rate review process. |
(5) “Social and human service program” means a social, mental health, developmental |
disability, child welfare, juvenile justice, prevention services, habilitative, rehabilitative, substance |
use disorder treatment, residential care, adult or adolescent day services, vocational, employment |
and training, or aging service program or accommodations purchased by the state. |
(6) “Social and human service provider” means a provider of social and human service |
programs pursuant to a contract with the state or any subdivision or agency to include, but not be |
limited to, the department of children, youth and families (DCYF), the department of behavioral |
healthcare, developmental disabilities and hospitals (BHDDH), the department of human services |
(DHS), the department of health (DOH), and Medicaid. |
(7) “State government and the provider network” refers to the contractual relationship |
between a state agency or subdivision of a state agency and private companies the state contracts |
with to provide the network of mandated and discretionary social and human services. |
SECTION 25. Section 42-14.6-3 of the General Laws in Chapter 42-14.6 entitled "Rhode |
Island All-Payer Patient-Centered Medical Home Act" is hereby amended to read as follows: |
42-14.6-3. Definitions. |
As used in this section chapter, the following terms shall have the following meanings: |
(1) “Commissioner” means the health insurance commissioner. |
(2) “Health insurer” means all entities licensed, or required to be licensed, in this state that |
offer health benefit plans in Rhode Island including, but not limited to, nonprofit hospital service |
corporations and nonprofit medical-service corporations established pursuant to chapters 19 and 20 |
of title 27, and health maintenance organizations established pursuant to chapter 41 of title 27 or as |
defined in chapter 62 of this title, a fraternal benefit society or any other entity subject to state |
insurance regulation that provides medical care on the basis of a periodic premium, paid directly |
or through an association, trust or other intermediary, and issued, renewed, or delivered within or |
without Rhode Island. |
(3) “Health insurance plan” means any individual, general, blanket or group policy of |
health, accident and sickness insurance issued by a health insurer (as herein defined). Health |
Insurance Plan shall not include insurance coverage providing benefits for: |
(i) Hospital confinement indemnity; |
(ii) Disability income; |
(iii) Accident only; |
(iv) Long-term care; |
(v) Medicare supplement; |
(vi) Limited benefit health; |
(vii) Specified disease indemnity; |
(viii) Sickness or bodily injury or death by accident or both; and |
(ix) Other limited benefit policies. |
(4) “Personal clinician” means a physician, physician assistant, or an advanced practice |
nurse licensed by the department of health. |
(5) “State healthcare program” means medical assistance, RIteCare, and any other health |
insurance program provided through the office of health and human services (OHHS) and its |
component state agencies; state healthcare program does not include any health insurance plan |
provided as a benefit to state employees or retirees. |
(6) “Patient-centered medical home” means a practice that satisfies the characteristics |
described in § 42-14.6-2, and is designated as such by the secretary, or through alternative models |
as provided for in § 42-14.6-7, based on standards recommended by the patient-centered medical |
home collaborative. |
(7) “Patient-centered medical home collaborative” means a community advisory council, |
including, but not limited to, participants in the existing Rhode Island patient-centered medical |
home pilot project, and health insurers, physicians and other clinicians, employers, the state |
healthcare program, relevant state agencies, community health centers, hospitals, other providers, |
patients, and patient advocates which shall provide consultation and recommendations to the |
secretary and the commissioner on all matters relating to proposed regulations, development of |
standards, and development of payment mechanisms. |
(8) “Secretary” means the secretary of the executive office of health and human services. |
SECTION 26. Section 42-17.8-2 of the General Laws in Chapter 42-17.8 entitled "The |
Rhode Island Environmental Compliance Incentive Act" is hereby amended to read as follows: |
42-17.8-2. Definitions. |
As used in this chapter: |
(1) “Administrative penalty” means a monetary penalty that does not exceed the civil |
penalty specified by statute. |
(2) “Department” means the department of environmental management. |
(3) “Director” means the director of the department of environmental management or his |
or her duly authorized agent. |
(4) “Due diligence” means a regulated entity’s regular, customary and systematic efforts |
to prevent, detect and correct violations by consistently employing practices in its operation that |
ensures protection of the natural environment through the use of an environmental management |
system. |
(5) “Environmental audit” means a systematic, documented, and objective review of a |
regulated entity’s facility operations and occupational practices which affect the regulated entity’s |
compliance with environmental laws. |
(6) “Environmental audit report” means the analysis, conclusions, and recommendations |
made based upon information or data obtained in or testimonial evidence concerning the |
environmental audit. |
(7) “Environmental law” means all federal, state or municipal statutes, rules, regulations, |
permits, licenses or other legal requirements that are administered or enforced by the department, |
and shall also include any judicial or administrative order or consent agreement. |
(8) “Environmental management system” means a systemic and objective mechanism for |
assuring the compliance policies, standards and procedures are being carried out, including |
monitoring and auditing systems reasonably designed to detect and correct violations and periodic |
evaluation of the overall performance of the environmental management system. The |
environmental management system of any business shall include provisions for commitment of the |
management of the business to the environmental management system, to pollution prevention, and |
to the principle of sustainability. An environmental management system shall lead to an exemplary |
record of compliance with environmental laws which shall include, but shall not be limited to: (i) |
evidence that the business has not been found in violation of any environmental law, other than a |
secondary violation as defined in this statute, within the preceding three (3) years; and (ii) has |
complied with the provisions of applicable general statutes, and any orders of the director under |
those statutes, with regard to any secondary violation, as defined in those statutes. An |
environmental management system must also meet the following criteria: |
(A) The system must implement specific policies and procedures for employees and agents |
that explain how to comply with environmental laws; |
(B) The system must identify those persons or positions within the business that are: (I) |
responsible for monitoring/overseeing compliance, (II) authorized to act, to stop violations, achieve |
compliance, and mitigate violations, and (III) responsible to report violations to the business and/or |
regulators; |
(C) The system must lay out a procedure for employees to report violations to the business |
and/or regulators; |
(D) The system must explain how employees are educated about the system and the |
policies/procedures in it; |
(E) The system must layout a procedure for modifying the system itself to prevent |
reoccurrence of violations. |
(9) “Gravity-based penalties” means that portion of an administrative penalty over and |
above a regulated entity’s direct economic gain from noncompliance with any environmental laws, |
and costs or expenses incurred by the state relating to a regulated entity’s violation of any |
environmental law. |
(10) “Person” means any agency or political subdivision of the state, any state public or |
private corporation or authority, individual, trust, firm, joint stock company, partnership, |
association, or other entity or any group of them or any officer, employee, or agent of them. |
(11) “Regulated entity” means any person including a federal, state or municipal agency or |
facility, regulated under federal or state environmental laws. |
(12) “Secondary violation” means a violation that poses no actual threat or a low potential |
for threat to human health and the environment. |
(13) “Violation” means infraction of or noncompliance with any environmental law |
enforced or administered by the department. |
(i) The system must implement specific policies and procedures for employees and |
agents that explain how to comply with environmental laws; |
(ii) The system must identify those persons or positions within the business that are: |
(A) responsible for monitoring/overseeing compliance, (B) authorized to act to stop violations, |
achieve compliance, and mitigate violations, and (C) responsible to report violations to |
regulators; |
(iii) The system must lay out a procedure for employees to report violations to the |
business and/or regulators; |
(iv) The system must explain how employees are educated about the system and the |
policies/procedures in it; |
(v) The system must layout a procedure for modifying the system itself to prevent |
reoccurrence of violations. |
SECTION 27. Section 42-17.9-4 of the General Laws in Chapter 42-17.9 entitled |
"Preservation of State Open Space" is hereby amended to read as follows: |
42-17.9-4. Limitation of application. |
The evaluation procedures to be implemented pursuant to §§ 42-17.9-6 and 42-17.9-7 of |
this chapter shall apply only to properties or portions of properties where the state is the sole |
property owner, or the state through a grant, lease-hold, or other legal instrument has the functional |
equivalent of ownership and the state controls the use of the property. |
SECTION 28. Section 42-20-3 of the General Laws in Chapter 42-20 entitled |
"Administration of State Departments" is hereby amended to read as follows: |
42-20-3. Powers exercised by heads of departments — Designations of subordinates. |
Whenever certain powers or duties are conferred or imposed by existing law upon an |
official or employee of the state having a definite title, those powers and duties shall be exercised |
and performed by the director or other head of a department or by the independent agency, his or |
her or its assistants, to which the department or agency those powers and duties are by this title |
transferred. The head of any department may, with the approval of the governor, designate the |
official titles or designations of subordinate officers or employees to be used by them in the official |
business of the state whenever the necessity thereof may require, and they shall be so entitled and |
described in all official functions, duties, or business. |
SECTION 29. Section 42-28.6-14 of the General Laws in Chapter 42-28.6 entitled "Law |
Enforcement Officers' Due Process, Accountability, and Transparency Act" is hereby amended to |
read as follows: |
42-28.6-14. Retaliation for exercising rights. |
(a) No law enforcement officer shall be discharged, demoted, disciplined, or denied |
promotion, transfer or reassignment, or otherwise discriminated against in regard to his or her |
employment or be threatened with any such treatment, by reason of his or her exercise of or demand |
for rights granted in this subtitle chapter, or by reason of the lawful exercise of his or her |
constitutional rights. |
(b) Any law enforcement officer who is denied any right afforded by this subtitle chapter |
may apply, either individually or through his or her certified or recognized employee organization, |
to the superior court where he or she resides or is regularly employed for any order directing the |
law enforcement agency to show cause why the right should not be afforded. |
SECTION 30. Section 42-30.1-2 of the General Laws in Chapter 42-30.1 entitled "Uniform |
Law on Notarial Acts" is hereby amended to read as follows: |
42-30.1-2. Definitions. |
For purposes of this chapter, the following definitions apply: |
(1) “Acknowledgment” means a declaration by an individual before a notarial officer that |
the individual has signed a record for the purpose stated in the record and, if the record is signed in |
a representative capacity, that the individual signed the record with proper authority and signed it |
as the act of the individual or entity identified in the record. |
(2) “Commissioning agency” means the Rhode Island office of the secretary of state. |
(3) “Commissioning officer” means the governor of the state of Rhode Island. |
(4) “Communication technology” means an electronic device or process that: |
(i) Allows simultaneous communication by sight and sound between a notary public and a |
remotely located individual; and |
(ii) When necessary and consistent with other applicable law, facilitates communication |
with a remotely located individual who has a vision, hearing, or speech impairment by providing |
reasonable accommodations. |
(5) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, |
optical, electromagnetic, or similar capabilities. |
(6) “Electronic signature” means an electronic symbol, sound, or process attached to, or |
logically associated with, a record and executed or adopted by an individual with the intent to sign |
the record. |
(7) “Foreign state” means a jurisdiction other than the United States, a state, territory, or a |
federally recognized Indian tribe. |
(8) “Identity proofing” means a process or service by which a third person provides a notary |
public with a means to verify the identity of a remotely located individual by a review of personal |
information from public or private data sources. |
(9) “In a representative capacity” means acting as: |
(i) An authorized officer, agent, partner, trustee, or other representative for a person other |
than an individual; |
(ii) A public officer, personal representative, guardian, or other representative, in the |
capacity stated in a record; |
(iii) An agent or attorney-in-fact for a principal; or |
(iv) An authorized representative of another in any other capacity. |
(10) “Notarial act” means an act, whether performed with respect to a tangible or electronic |
record, that a notarial officer may perform under the law of this state. The term includes taking an |
acknowledgment, administering an oath or affirmation, taking a verification on oath or affirmation, |
witnessing or attesting a signature, certifying or attesting a copy, noting a protest of a negotiable |
instrument and transact transacting, do doing and finish finishing all matters and things relating |
to protests and protesting bills of exchange and promissory notes, and all other matters within their |
office required by law, take taking depositions as prescribed by law, and acknowledgments of |
deeds and other instruments. |
(11) “Notarial officer” means a notary public or other individual authorized to perform a |
notarial act. |
(12) “Notary public” means an individual commissioned to perform a notarial act by the |
commissioning officer. |
(13) “Official stamp” means a physical image affixed to a tangible record or an electronic |
image attached to, or logically associated with, an electronic record. |
(14) “Outside the United States” means a location outside the geographic boundaries of the |
United States, Puerto Rico, the United States Virgin Islands, and any territory, insular possession, |
or other location subject to the jurisdiction of the United States. |
(15) “Person” means an individual, corporation, business trust, statutory trust, estate, trust, |
partnership, limited-liability company, association, joint venture, public corporation, government |
or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. |
(16) “Record” means information that is inscribed on a tangible medium or that is stored |
in an electronic or other medium and is retrievable in perceivable form. |
(17) “Remotely located individual” means an individual who is not in the physical presence |
of the notary public who performs a notarial act pursuant to § 42-30.1-12.1. |
(18) “Sign” means, with present intent to authenticate or adopt a record: |
(i) To execute or adopt a tangible symbol; or |
(ii) To attach to, or logically associate with, the record an electronic symbol, sound, or |
process. |
(19) “Signature” means a tangible symbol or an electronic signature that evidences the |
signing of a record. |
(20) “Stamping device” means: |
(i) A physical device capable of affixing an official stamp upon a tangible record; or |
(ii) An electronic device or process capable of attaching to, or logically associating an |
official stamp with, an electronic record. |
(21) “State” means a state of the United States of America, the District of Columbia, Puerto |
Rico, the United States Virgin Islands, or any territory or insular possession subject to the |
jurisdiction of the United States. |
(22) “Verification on oath or affirmation” means a declaration that a statement in a record |
is true, made by an individual under oath or by affirmation before a notarial officer. |
SECTION 31. Sections 42-35-2.7, 42-35-2.9 and 42-35-3.2 of the General Laws in Chapter |
42-35 entitled "Administrative Procedures" are hereby amended to read as follows: |
42-35-2.7. Notice of proposed rulemaking. |
(a) At least thirty (30) days before the filing of a final rule with the secretary of state, an |
agency shall publish the notice of the proposed rulemaking on the agency’s website. The agency |
shall file notice of the proposed rulemaking with the secretary of state, in accordance with |
procedures established by the secretary of state, for publication in the state register and for |
electronic notification to interested parties pursuant to subsection (c). The notice shall be mailed |
by the agency to all persons who have made timely request of the agency for notice of its |
rulemaking proceedings, and published in a newspaper or newspapers having aggregate general |
circulation throughout the state; provided, however, that if the action is limited in its applicability |
to a particular area, then the publication may be in a newspaper having general circulation in the |
area. In lieu of newspaper publication, advance notice of proposed rulemaking by all agencies may |
be posted via electronic media on a website maintained by the office of secretary of state. Copies |
of proposed rules shall be available at the agency at the time of the notice required by this |
subsection, and by mail to any member of the public upon request. |
(b) The notice shall include: |
(1) A short explanation of the purpose of the proposed rule; |
(2) A citation or reference to the specific, legal authority authorizing the proposed rule; |
(3) The text of the proposed rule; |
(4) How a copy of the full text of any regulatory analysis of the proposed rule may be |
obtained; |
(5) Where, when, and how a person may comment on the proposed rule and request a |
hearing, including the beginning and end dates of the public-comment period; |
(6) The date of the filing of the notice of the proposed rulemaking with the secretary of |
state; |
(7) A citation to each scientific or statistical study, report, or analysis that served as a basis |
for the proposed rule, together with an indication of how the full text of the study, report, or analysis |
may be obtained; |
(8) Any proposed additions, deletions, or other amendments to the rules and regulations. |
New proposed language must be clearly marked using underline formatting for proposed insertions, |
and strikethrough formatting for proposed deletions. If an agency proposes a new rule which will |
supersede an existing rule, the agency shall make available a summary of all non-technical |
differences between the existing and proposed rules. An agency’s lawful promulgation of |
amendments to an existing rule shall be deemed to supersede and repeal the previous enactments |
of that rule, provided that the public notice required under subdivision (a)(1) indicated such an |
intent; and |
(9) Any regulatory analysis prepared under § 42-35-2.9. |
(c) The secretary of state shall establish a process to provide timely notification via |
electronic mail to any person that requests information concerning agency notices of proposed |
rulemaking. Requests under this section may be submitted to the secretary of state’s office through |
its website. |
42-35-2.9. Regulatory analysis. |
(a) An agency shall prepare a regulatory analysis for a proposed rule. The analysis must be |
completed before notice of the proposed rulemaking is published. The summary of the analysis |
prepared under subsection (c) must be published with the notice of proposed rulemaking. |
(b) A regulatory analysis must contain: |
(1) An analysis of the benefits and costs of a reasonable range of regulatory alternatives |
reflecting the scope of discretion provided by the statute authorizing the proposed rule; |
(2) Demonstration that there is no alternative approach among the alternatives considered |
during the rulemaking proceeding which would be as effective and less burdensome to affected |
private persons as another regulation. This standard requires that an agency proposing to write any |
new regulation must identify any other state regulation which is overlapped or duplicated by the |
proposed regulation and justify any overlap or duplication; and |
(3) A determination whether: |
(i) The benefits of the proposed rule justify the costs of the proposed rule; and |
(ii) The proposed rule will achieve the objectives of the authorizing statute in a more cost- |
effective manner, or with greater net benefits, than other regulatory alternatives. |
(c)(iii) An agency preparing a regulatory analysis under this section shall prepare a concise |
summary of the analysis. |
(d)(iv) If an agency has made a good-faith effort to comply with this section, a rule is not |
invalid solely if there are errors or paucity of data in the regulatory analysis for the proposed rule. |
42-35-3.2. Incorporation by reference. |
(a) An agency may incorporate the following by reference in its rules without publishing |
the incorporated material in full: |
(1) Federal rules, codes, or standards published in full in the Federal Register or the Code |
of Federal Regulations; |
(2) Federal rules, codes, or standards that have been properly incorporated by reference in |
the Federal Register as part of a duly promulgated final rule or in the Code of Federal Regulations |
pursuant to federal legal requirements; |
(3) Published codes, standards or guidelines of any nationally recognized scientific or |
technical association or organization. |
(b) For the purposes of subdivision (a)(3) of this section, “nationally recognized scientific |
or technical association or organization” means an association or organization that is regularly in |
the business of developing scientific or technical standards or guidelines, is recognized by those in |
the relevant professional community as having a high degree of expertise and competence in its |
field, and whose publications are widely distributed and easily available throughout the nation and |
the state of Rhode Island. |
(c) An agency may incorporate by reference the material set forth in subsection (a) of this |
section only if the issuing agency, organization, or association makes copies of the material |
available to the public. An agency may not incorporate any material by reference unless the material |
has been properly identified in the notice of proposed rule-making pursuant to § 42-35-3 42-35- |
2.7. |
(d) The reference to any incorporated material shall identify the incorporated material by |
appropriate agency, organization, or association and by date, title, or citation. The reference shall |
also state that the rule does not include later amendments to or editions of the incorporated material. |
(e) If an agency proposes to incorporate any material by reference in a state rule, the agency |
shall maintain a copy of the material and shall allow public inspection of the material and provide |
copies of any non-copyrighted material to the public at cost upon request beginning no late than |
the date of publication of the notice of proposed rule-making. If any material to be incorporated by |
reference has been copyrighted, the agency shall upon request provide information about the |
publisher and the citation to the material. |
SECTION 32. Section 42-35.1-3 of the General Laws in Chapter 42-35.1 entitled "Small |
Business Regulatory Fairness in Administrative Procedures" is hereby amended to read as follows: |
42-35.1-3. Economic impact statements. |
(a) Prior to the adoption of any proposed regulation that may have an adverse impact on |
small businesses, with the exception of emergency regulations adopted in accordance with § 42- |
35-3(b) 42-35-2.10 and excluding those businesses defined in subsection (c) of this section, each |
agency shall prepare and submit, in conjunction with assistance and oversight from the office of |
regulatory reform, the proposed regulations to both the governor’s office and the office of |
regulatory reform at least fifteen (15) days in advance of the commencement of the formal |
rulemaking process, and in congruence with the analysis required in subsection (b) of this section, |
an economic impact statement that includes the following: |
(1) An identification and estimate of the number of the small businesses subject to the |
proposed regulation; |
(2) The projected reporting, recordkeeping, and other administrative costs required for |
compliance with the proposed regulation, including the type of professional skills necessary for |
preparation of the report or record; |
(3) A statement of the effect or probable effect on impacted small businesses; |
(4) A description of any less intrusive or less costly alternative methods of achieving the |
purpose of the proposed regulation. |
(b) The economic impact statement required herein shall be published in guide form as |
well as posted on the department of administration and the office of management and budget |
websites. The guide should be published and/or posted on or around the same date as the regulation |
change and shall include a description of actions needed by the small business to meet the |
requirement of the regulation. The office of regulatory reform shall develop criteria for the |
economic impact statement. |
(c) The following professional and business activities, extensively regulated pursuant to |
state and federal law and subject to significant capital requirements and other regulatory standards, |
shall be excluded from this section: |
(1) All public utilities, as defined in § 39-1-2, whose rates are subject to approval by the |
public utilities commission; and |
(2) All regulated institutions as defined in § 19-1-1(10); broker dealers as defined in § 7- |
11-101(1); and insurance companies chartered or licensed pursuant to chapters 1 and 2 of title 27. |
SECTION 33. Section 42-37-1 of the General Laws in Chapter 42-37 entitled "New |
England State Police Compact" is hereby amended to read as follows: |
42-37-1. New England State Police Compact. |
The New England State Police Compact is hereby entered into and enacted into law with |
any and all of the states legally joining therein in the form substantially as follows: |
NEW ENGLAND STATE POLICE COMPACT |
ARTICLE I — PURPOSES |
The purposes of this compact are to: |
(1) Provide close and effective cooperation and assistance in detecting and apprehending |
those engaged in organized criminal activities; |
(2) Establish and maintain a central criminal intelligence bureau to gather, evaluate and |
disseminate to the appropriate law enforcement officers of the party states information concerning |
organized crime, its leaders and their associates; |
(3) Provide mutual aid and assistance in the event of police emergencies, and to provide |
for the powers, duties, rights, privileges and immunities of police personnel when rendering such |
aid. |
ARTICLE II — ENTRY INTO FORCE AND WITHDRAWAL |
(a) This compact shall enter into force when enacted into law by any three (3) of the states |
of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. Thereafter, |
this compact shall become effective as to any other of the aforementioned states upon its enactment |
thereof. |
(b) Any party state may withdraw from this compact by enacting a statute repealing the |
same, but no such withdrawal shall take effect until one year after the governor of the withdrawing |
state has given notice in writing of the withdrawal to the governors of all other party states. No |
withdrawal shall effect any liability already incurred by or chargeable to a party state prior to the |
time of such withdrawal, and any records, files, or information obtained by officers or employees |
of a withdrawing state shall continue to be kept, used, and disposed of only in such manner as is |
consistent with this compact and any rules or regulations pursuant thereto. |
ARTICLE III — THE CONFERENCE |
(a) There is hereby established the “New England State Police Administrators’ |
Conference,” hereinafter called the “Conference,” to be composed of the administrative head of the |
state police department of each party state. |
(b) If authorized by the laws of his or her party state, the administrative head of the state |
police department of a party state may provide for the discharge of his or her duties and the |
performance of his or her functions on the conference, for periods none of which shall exceed |
fifteen (15) days, by an alternate. No such alternate shall be entitled to serve unless notification of |
his or her identity and appointment shall have been given to the conference in such form as the |
conference may require. |
(c) An alternate serving pursuant to subdivision (b) of this article shall be selected only |
from among the officers and employees of the state police department, the head of which such |
alternate is to represent. |
(d) The members of the conference shall be entitled to one vote each. No action of the |
conference shall be binding unless taken at a meeting at which a majority of the total number of |
votes on the conference are cast in favor thereof. Action of the conference shall be only at a meeting |
at which a majority of the members of the conference, or their alternates, are present. |
(e) The conference shall have a seal. |
(f) The conference shall elect annually, from among its members, a chairperson, (who shall |
not be eligible to succeed himself or herself) a vice chairperson, and a treasurer. The conference |
shall appoint an executive secretary and fix his or her duties and compensation. Such executive |
secretary shall serve at the pleasure of the conference, and together with the treasurer shall be |
bonded in such amount as the conference shall determine. The executive secretary also shall serve |
as general secretary of the conference. |
(g) Irrespective of the civil service, personnel or other merit system laws of any of the party |
states, the executive secretary subject to the direction of the conference, shall appoint, remove or |
discharge such personnel as may be necessary for the performance of the conference functions, and |
shall fix the duties and compensation of such personnel. |
(h) The conference may establish and maintain independently or in conjunction with any |
one or more of the party states, a suitable retirement system for its full-time employees. Employees |
of the conference shall be eligible for social security coverage in respect of old age and survivor’s |
insurance provided that the conference takes such steps as may be necessary pursuant to the laws |
of the United States, to participate in such program of insurance as a governmental agency or unit. |
The conference may establish and maintain or participate in such additional programs of employee |
benefits as may be appropriate. Employment by the conference of a retired officer or employee of |
a party state shall not affect the pension or other retirement-connected benefits paid to such officer |
or employee by a party state. |
(i) The conference may borrow, accept or contract for the services of personnel from any |
party state, the United States, or any subdivision or agency of the aforementioned governments, or |
from any agency of two (2) or more of the party states or their subdivisions. |
(j) The conference may accept for any of its purposes and functions under this compact any |
and all donations, grants of money, equipment, supplies, materials, and services, conditional or |
otherwise, from any state, the United States, or any other governmental agency, or from any person, |
firm or corporation, and may receive, utilize and dispose of the same. The conference shall publish |
in its annual report the terms, conditions, character, and amount of any resources accepted by it |
pursuant hereto together with the identity of the donor. |
(k) The conference may establish and maintain such facilities as may be necessary for the |
transacting of its business. The conference may acquire, hold, and convey real and personal |
property and any interest therein. |
(l) The conference shall adopt bylaws for the conduct of its business and shall have the |
power to amend and rescind these bylaws. The conference shall publish its bylaws in convenient |
form and shall file a copy thereof and a copy of any amendment thereto, with the appropriate agency |
or officer in each of the party states. The bylaws shall provide for appropriate notice to the |
conference members of all conference meetings. |
(m) The conference annually shall make to the governor and legislature of each party state |
a report covering the activities of the conference for the preceding year, and embodying such |
recommendations as may have been issued by the conference. The conference may make such |
additional reports as it may deem desirable. |
ARTICLE IV — CONFERENCE POWERS |
The conference shall have power to: |
(1) Establish and operate a New England Criminal Intelligence Bureau, hereinafter called |
“the Bureau,” in which shall be received, assembled and kept case histories, records, data, personal |
dossiers, and other information concerning persons engaged or otherwise associated with organized |
crime. |
(2) Consider and recommend means of identifying leaders and emerging leaders of |
organized crime and their associates. |
(3) Facilitate mutual assistance among the state police of the party states pursuant to article |
VII of this compact. |
(4) Formulate procedures for claims and reimbursements, pursuant to article VII of this |
compact. |
(5) Promote cooperation in law enforcement and make recommendations to the party states |
and other appropriate law enforcement authorities for the improvement of such cooperation. |
(6) Do all things which may be necessary and incidental to the exercise of the foregoing |
powers. |
ARTICLE V — DISPOSITION OF RECORDS AND INFORMATION |
The bureau established and operated pursuant to article IV(a) IV(1) of this compact is |
hereby designated and recognized as the instrument for the performance of a central criminal |
intelligence service to the state police departments of the party states. The files, records, data and |
other information of the bureau and, when made pursuant to the bylaws of the conference, any |
copies thereof shall be available only to duly designated officers and employees of the state police |
departments of the party states acting within the scope of their official duty. In the possession of |
the aforesaid officers and employees, such records, data, and other information shall be subject to |
use and disposition in the same manner and pursuant to the same laws, rules and regulations |
applicable to similar records, data, and information of the officer’s or employee’s agency and the |
provision of this compact. |
ARTICLE VI — ADDITIONAL MEETINGS AND SERVICES |
The members of the conference from any two (2) or more party states, upon notice to the |
chairperson as to the time and purpose of the meeting, may meet as a section for the discussion of |
problems common to their states. Any two (2) or more party states may designate the conference |
as a joint agency to maintain “for them” such additional common services as they may deem |
desirable for combating organized crime. Except in those cases where all party states join in such |
designation for common services, the representative of any group of such designating states in the |
conference shall constitute a separate section of such conference for the performance of the |
common service or services so designated provided that, if any additional expense is involved, the |
state so acting shall provide the necessary funds for this purpose. The creation of such a section or |
joint agency shall not affect the privileges, powers, responsibilities or duties of the states |
participating therein as embodied in the other articles of this compact. |
ARTICLE VII — MUTUAL AID |
(a) As used in this article: |
(1) “Emergency” means an occurrence or condition, temporary in nature, in which the state |
police department of a party state is, or may reasonably be expected to be, unable to cope with |
substantial and imminent danger to the public safety, and in which the cooperation of or aid from |
local police forces within the state is, or may reasonably be expected to be insufficient. Also |
“emergency” shall mean a situation in which an investigation of an aspect of organized crime, or |
events connected with organized crime, require augmentation, for a limited time, of the |
investigative personnel of the state police department from without the state. |
(2) “Requesting state” means the state whose state police department requests assistance |
in coping with an emergency. |
(3) “Responding state” means the state furnishing aid, or requested to furnish aid, pursuant |
to this article. |
(b) In case of emergency, upon the request of the administrative head of the state police |
department of a party state, the administrative head of the state police department of each |
responding state, shall order such part of his or her state police forces as he or she, in his or her |
discretion, may find necessary, to aid the state police forces of the requesting state in order to carry |
out the purposes set forth in this compact. In such case, it shall be the duty of the administrative |
head of the state police department of each responding state to issue the necessary orders for such |
use of state police forces of his or her state without the borders of his or her state, and to direct such |
forces to place themselves under the operational control of the administrative head of the state |
police department of the requesting state. |
(c) The administrative head of the state police department of any party state, in his or her |
discretion, may withhold or recall the police forces of his or her state or any part or any member |
thereof, serving without its borders. |
(d) Whenever any of the state police forces of any party state are engaged outside their own |
state in carrying out the purposes of this compact, the individual members so engaged shall have |
the same powers, duties, rights, privileges and immunities as members of the state police |
department of the state in which they are engaged, but in any event, a requesting state shall save |
harmless any members of a responding state police department serving within its borders for any |
act or acts done by him or her in the performance of his or her duty while engaged in carrying out |
the purposes of this compact. |
(e) All liability that may arise under the laws of the requesting state or under the laws of |
the responding state or under the laws of a third state on account of or in connection with a request |
for aid, shall be assumed and borne by the requesting state. |
(f) Any responding state rendering aid pursuant to this compact shall be reimbursed by the |
requesting state for any loss or damage to, or expense incurred in the operation of any equipment |
answering a request for aid, and for the cost of the materials, transportation and maintenance of |
state police personnel and equipment incurred in connection with such request: provided, that |
nothing herein contained shall prevent any responding state from assuming such loss, damage, |
expense or other cost. |
(g) Each party state shall provide, in the same amounts and manner as if they were on duty |
within their state, for the pay and allowances of the personnel of its state police department while |
engaged without the state pursuant to this compact and while going to and returning from such duty |
pursuant to this compact. |
(h) Each party state providing for the payment of compensation and death benefits to |
injured members and the representatives of deceased members of its state police department in case |
such members sustain injuries or are killed within their own state, shall provide for the payment of |
compensation and death benefits in the same manner and on the same terms in case such members |
sustain injury or are killed while rendering aid pursuant to this compact. |
ARTICLE VIII — FINANCE |
(a) The conference shall submit to the governor or designated officer or officers of each |
party state a budget of its estimated expenditures for such period as may be required by the laws of |
that party state for presentation to the legislature thereof. |
(b) Each of the conference’s budgets of estimated expenditures shall contain specific |
recommendations of the amount or amounts to be appropriated by each of the party states. The total |
amount of appropriations under any such budget shall be apportioned among the party states as |
follows: one-third (1/3) in equal shares; one-third (1/3) divided among the party states in the |
proportions that their populations bear to the total population of all the party states; and one-third |
(1/3) divided among the party states in the proportions that the major crimes committed in each party |
state bear to the total number of major crimes committed in all the party states. In determining |
population pursuant to this paragraph, the most recent decennial census compiled by the United |
States government shall be used. Numbers of major crimes shall be as reported in the most recent |
annual “Uniform Crime Report” compiled by the Federal Bureau of Investigation of the United |
States Department of Justice, or by any agency which may assume responsibility for such |
compilation in the place of such bureau. In the event that any source of information required to be |
used for the purpose of this paragraph shall be discontinued, the conference shall make its |
calculations on the basis of the best alternative sources of information and shall identify the sources |
used. |
(c) The conference shall not pledge the credit of any party state. The conference may meet |
any of its obligations in whole or in part with funds available to it under article III (j) of this |
compact, provided that the conference takes specific action setting aside such funds prior to |
incurring any obligation to be met in whole or in part in such manner. Except where the conference |
makes use of funds available to it under article III (j) hereof, the conference shall not incur any |
obligation prior to the allotment of funds by the party states adequate to meet the same. |
(d) The conference shall keep accurate accounts of all receipts and disbursements. The |
receipts and disbursements of the conference shall be subject to the audit and accounting procedures |
established under its rules. However, all receipts and disbursements of funds handled by the |
conference shall be audited yearly by a qualified, public accountant and the report of the audit shall |
be included in and become part of the annual report of the conference. |
(e) The accounts of the conference shall be open at any reasonable time for inspection by |
duly constituted officers of the party states and any persons authorized by the conference. |
(f) Nothing contained herein shall be construed to prevent conference compliance with |
laws relating to audit or inspection of accounts by or on behalf of any government contributing to |
the support of the conference. |
ARTICLE IX — CONSTRUCTION AND SEVERABILITY |
This compact shall be liberally construed so as to effectuate the purposes thereof. The |
provisions of this compact shall be severable and if any phrase, clause, sentence or provision of |
this compact is declared to be contrary to the constitution of any state or of the United States or the |
applicability thereof to any government, agency, person or circumstance is held invalid, validity of |
the remainder of this compact and the applicability thereof to any government, agency, person or |
circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution |
of any state participating herein, the compact shall remain in full force and effect as to the remaining |
party states and in full force and effect as to the state affected as to all severable matters. |
SECTION 34. Section 42-41-9 of the General Laws in Chapter 42-41 entitled "Budgeting, |
Appropriation and Receipt of Federal Monies" is hereby amended to read as follows: |
42-41-9. Grant audit revenue. |
(a) The auditor general may enter into agreements or contracts with the federal government |
or its agencies, or with state departments, agencies, commissions, and state created authorities, |
acting in behalf thereof for the purpose of conducting financial and compliance audits of programs |
funded in whole or in part by the federal government and carried out by agencies of the state. |
(b) These audits shall be undertaken only after related contracts or agreements between the |
parties have been filed with the joint committee on legislative affairs. |
(c) The costs of the audits, including, but not limited to, salaries and operating expenses, |
shall be charged at rates to be established jointly by the auditor general and the director of |
administration, and shall not exceed the amount of funds available for this purpose. The auditor |
general shall document the hours expended on those audits on a biweekly basis, and the |
documentation shall be the basis for expenditures from the account maintained by the general |
treasurer under § 42-41-5(b) 42-41-8(c). The state controller is hereby authorized and directed to |
draw his or her orders upon the general treasurer for the payment of such charges, or so much |
thereof as may be required from time to time, upon receipt by him or her of proper vouchers duly |
authenticated. |
(d) The auditor general shall expend such funds as received without additional |
appropriation for the purpose of conducting, or causing to be conducted, audits of federal assistance |
grants. The term of employment of any individual hired by the office of the auditor general under |
the provisions of this section shall be expressly limited in duration by the availability of federal |
funds and shall expire on the date of expiration of the federal funds. |
ARTICLE II –STATUTORY CONSTRUCTION |
SECTION 1. Section 5-39.3-15 of the General Laws in Chapter 5-39.3 entitled |
"Counseling Compact" is hereby amended to read as follows: |
5-39.3-15. Binding effect of compact and other laws. |
(a) A licensee providing professional counseling services in a remote state under the |
privilege to practice shall adhere to the laws and regulations, including scope of practice, of the |
remote state. |
(b) Nothing herein prevents the enforcement of any other law of a member state that is not |
inconsistent with the compact. |
(c) Any laws in a member state in conflict with the compact are superseded to the extent |
of the conflict. |
(d) Any lawful actions of the commission, including all rules and bylaws properly |
promulgated by the commission, are binding upon the member states. |
(e) All permissible agreements between the commission and the member states are binding |
in accordance with their terms. |
(f) In the event any provision of the compact exceeds the constitutional limits imposed on |
the legislature of any member state, the provision shall be ineffective to the extent of the conflict |
with the constitutional provision in question in that member state. The compact also provides for |
the establishment of a commission which may promulgate rules, hire employees, purchase |
real estate and fix their composition among other powers. The commission may levy on and |
collect an annual assessment from each member state. The aggregate annual assessment |
amount shall be allocated based upon a formula to be determined by the commission, which |
shall promulgate a rule binding upon all member states. By majority vote, the commission |
may initiate legal action in the United States District Court for the District of Columbia or |
the federal district court where the commission has its principal office against a member state |
in default to enforce compliance with the provisions of the compact and its promulgated rules |
and by laws. |
SECTION 2. Section 5-95-5 of the General Laws in Chapter 5-95 entitled "Licensing of |
Massage Therapists" is hereby amended to read as follows: |
5-95-5. Special provisions. |
Nothing contained in this chapter shall prohibit: |
(1) A person who is otherwise licensed, certified, or registered in accordance with the |
general laws of Rhode Island, from performing services within their authorized scope of practice |
and who does not hold themself out to be a massage therapist or practicing massage therapy. |
(2) A nonresident massage therapist holding a valid license, permit, certificate, or |
registration issued by another state or territory of the United States, the District of Columbia, or a |
foreign country when incidentally in this state to provide service as part of an emergency response |
team working in conjunction with disaster relief officials. |
(3) A nonresident massage therapist holding a valid license, permit, certificate, or |
registration issued by any other state or territory of the United States, the District of Columbia, or |
by a foreign country and temporarily practicing massage therapy in this state for a period not |
exceeding thirty (30) days for the purpose of presenting educational or clinical programs, lectures, |
seminars, or workshops to massage therapists. |
(4) A currently enrolled student in an approved massage therapy education program from |
engaging in the practice of massage therapy, under the supervision of a licensed massage therapist |
or healthcare provider, provided the practice, conduct, activities, or services constitute a part of a |
required course of study in the program and that such persons are identified as students. |
(5) A graduate from an approved educational program may practice from practicing |
massage therapy only under the supervision of one, assigned, onsite licensed massage therapist. |
Graduates have ninety (90) days from the date on the application fee receipt to meet licensure |
requirements of this state in accordance with regulations prescribed by the board. |
(6) A massage therapist who provides acceptable evidence of being currently licensed to |
practice massage therapy by examination or endorsement under the laws of other states or territories |
of the United States, the District of Columbia, or by a foreign country has from working during |
a grace period of forty-five (45) days from the date on the application fee receipt to meet licensure |
requirements of this state in accordance with regulations prescribed by the board. The original |
privilege to work forty-five (45) days from the date on the application fee receipt shall not be |
extended or renewed. |
(7) A nonresident massage therapist holding a valid license, permit, certificate, or |
registration issued by any other state or territory of the United States, the District of Columbia, or |
by a foreign country when in this state as part of a charity/event where massage is appropriate. |
SECTION 3. Section 6-1-5 of the General Laws in Chapter 6-1 entitled "Filing of Trade |
Name" is hereby amended to read as follows: |
6-1-5. Changes in registration — Filing notice of change. |
(a) A notice of change shall be filed with the secretary of state when a change occurs in: |
(1) The A change occurs in any true and real name of a person conducting a business with |
a trade name registered under this chapter; or |
(2) Any A change occurs in any mailing address or email address set forth on the |
registration or any subsequently filed notice of change; or |
(3) An addition, deletion, or any change of person or persons conducting business under |
the registered trade name occurs; or |
(4) There is a change in the wording or spelling of the trade name since initial registration |
or renewal. |
(b) A notice of cancellation shall be filed with the secretary of state when use of a trade |
name is discontinued. |
SECTION 4. Section 11-37.1-6 of the General Laws in Chapter 11-37.1 entitled "Sexual |
Offender Registration and Community Notification" is hereby amended to read as follows: |
11-37.1-6. Community notification. |
(1)(a) Sex Offender Board of Review. The governor shall appoint eight (8) persons |
including experts in the field of the behavior and treatment of sexual offenders by reason of training |
and experience, victim’s rights advocates, and law enforcement representatives to the sex offender |
board of review. At least one member of the sex offender board of review shall be a qualified |
child/adolescent sex offender treatment specialist. These persons shall serve at the pleasure of the |
governor or until their successor has been duly qualified and appointed. |
(b) Duties of the board. Upon passage of this legislation, the sex offender board of review |
will utilize a validated risk assessment instrument where available and other material approved by |
the parole board to determine the level of risk an offender poses to the community and to assist the |
sentencing court in determining if that person is a sexually violent predator. If the offender is a |
juvenile, the Department of Children, Youth and Families shall select and administer a risk |
instrument appropriate for juveniles and shall submit the results to the sex offender board of review. |
In cases where an accepted validated risk assessment instrument does not exist, the sex offender |
board of review shall use a structured professional judgment (SPJ) approach, in which the board |
shall evaluate the presence or absence of commonly employed risk variables (both static and |
dynamic), together with all other information available to the board, to make a determination |
concerning the level of risk. |
(c) Duties of other state agencies. Six (6) months prior to release of any person having a |
duty to register under § 11-37.1-3, or upon sentencing of a person having a duty to register under |
§ 11-37.1-3, if the offender is not incarcerated, the agency having supervisory responsibility and |
the Interstate Compact Unit of the Rhode Island department of corrections upon acceptance of |
supervision of a sexual offender from the sending jurisdiction shall refer the person to the sex |
offender board of review, together with any reports and documentation that may be helpful to the |
board, for a determination as to the level of risk an offender poses to the community and to assist |
the sentencing court in determining if that person is a sexually violent predator. |
(2)(i) The board shall within thirty (30) days of a referral of a person shall conduct the |
validated risk assessment, review other material provided by the agency having supervisory |
responsibility and assign a risk of re-offense level to the offender. In addition, the board may find |
that, based on the assessment score and other material, that the person may possess a mental |
abnormality or personality disorder that makes the person likely to engage in sexually violent |
predatory offenses. In these cases, the committee shall ask the parole board psychiatrist or if the |
offender is a juvenile, a DCYF psychiatrist to conduct a sex offender evaluation to determine if the |
offender possesses a mental abnormality or personality disorder that affects the emotional or |
volitional capacity of the person in a manner that predisposes that person to the commission of |
criminal sexual acts to a degree that makes the person a menace to the health and safety of other |
persons. |
(ii) Upon receipt of a sex offender evaluation that suggests there is sufficient evidence and |
documentation to suggest that a person may be a sexually violent predator, the sex offender board |
of review shall forward a report to the attorney general for consideration by the court. |
(iii) Upon receipt of a report from the attorney general, the court, after notice to the offender |
and his or her counsel, shall upon consideration of the report and other materials, make a |
determination as to whether or not a person is a sexually violent predator. |
(iv) Effect of determination. In the event that a determination is made by the court that a |
person is a sexually violent predator, that person shall be required to register and verify his or her |
address in accordance with §§ 11-37.1-3, 11-37.1-4, and 11-37.1-8(b). |
(3) No cause of action or liability shall arise or exist against the committee or any member |
or agent of the board as a result of the failure of the board to make any findings required by this |
section within the time period specified by subsection (2) of this section. |
(4) Notwithstanding any other provision of law, the board shall have access to all relevant |
records and information in the possession of any state official or agency having a duty under § 11- |
37.1-5(a)(1) through (6), relating to the juvenile and adult offenders under review by the board, |
including, but not limited to, police reports; prosecutor’s statements of probable cause, presentence |
investigations and reports, complete judgments and sentences, current classification referrals, |
juvenile and adult criminal history records, violation and disciplinary reports, all psychological |
evaluations and psychiatric evaluations, psychiatric hospital records, sex offender evaluations and |
treatment reports, substance abuse evaluations and treatment reports to the extent allowed by |
federal law. Records and information obtained by the board of review under this subsection shall |
remain confidential, provided that the board of review may disclose the records and information to |
the sentencing court in accordance with the provisions of this chapter. |
(5) Duties of the director of the department of corrections/director of the department of |
children, youth and families. Not less than sixty (60) days prior to release of any person subject to |
this chapter, the director of the department of corrections or, in the event the person is a juvenile, |
the director of the department of children, youth and families, or their respective designees, shall |
seek verification that the duties of the sex offender board of review and any other state agency have |
been fulfilled as specified in § 11-37.1-6 et seq. In the event that the director of the department of |
corrections or, in the event the person is a juvenile, the director of the department of children, youth |
and families, cannot obtain verification, he or she shall, no less than thirty (30) days prior to the |
release of a person subject to this chapter, file with the presiding judge of the superior court or, in |
the case of a juvenile, the chief judge of the family court, a petition in the nature of mandamus, |
seeking compliance with this chapter. The court shall promptly, but no less than ten (10) days from |
the filing of the petition, hold a hearing on the petition. The court may, in its discretion, enter any |
orders consistent with this chapter to compel compliance, however, the court may not delay the |
release of any person subject to this chapter for the failure of the sex offender board of review or |
any state agency to fulfill its obligations under this chapter. |
SECTION 5. Section 16-7-22 of the General Laws in Chapter 16-7 entitled "Foundation |
Level School Support [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is |
hereby amended to read as follows: |
16-7-22. Determination of average daily membership. |
Each community shall be paid pursuant to the provisions of § 16-7-17 an amount based |
upon the following provisions: |
(1) On or before September 1 of each year the average daily membership of each city and |
town for the reference year shall be determined by the commissioner of elementary and secondary |
education from data supplied by the school committee in each community in the following manner: |
The aggregate number of days of membership of all pupils enrolled full time in grade twelve (12) |
and below, except that pupils below grade one who are not full time shall be counted on a full-time |
equivalent basis: (i) Increased by the aggregate number of days of membership of pupils residing |
in the particular city or town whose tuition in schools approved by the department of elementary |
and secondary education in other cities and towns is paid by the particular city or town; and (ii) |
Decreased by the aggregate number of days of membership of nonresident pupils enrolled in the |
public schools of the particular city or town and further decreased by the aggregate number of days |
of membership equal to the number of group home beds calculated for the purposes of |
reimbursement pursuant to § 16-64-1.1; and (iii) Decreased further, in the case of a city or town |
that is a member of a regional school district during the first year of operation of the regional school |
district by the aggregate number of days of membership of pupils residing in the city or town who |
would have attended the public schools in the regional school district if the regional school district |
had been operating during the previous year, divided by the number of days during which the |
schools were officially in session during the reference year. The resulting figures shall be the |
average daily membership for the city or town for the reference year. For purposes of calculating |
the permanent foundation education aid as described in §§ 16-7.2-3(a)(1) and 16-7.2-3(a)(2), the |
average daily membership for school districts shall exclude charter school and state school students, |
and beginning in school year 2014-2015, include an estimate to ensure that districts converting |
from a half-day to a full-day kindergarten program pursuant to § 16-99-4 are credited on a full-time |
basis beginning in the first year of enrollment and are funded notwithstanding the transition plan |
pursuant to § 16-7.2-7. |
(2) The average daily membership of pupils attending public schools shall apply for the |
purposes of determining the percentage of the state’s share under the provisions of §§ 16-7-16(3), |
16-7-16(10), 16-7-18, 16-7-19, 16-7-20, 16-7-21, and 16-7.2-4. |
(3) In the case of regional school districts, the aggregate number of days of membership by |
which each city or town is decreased in subsection (1)(iii) of this section, divided by the number of |
days during which the schools attended by the pupils were officially in session, shall determine the |
average daily membership for the regional school district during the first year of operation. After |
the first year of operation, the average daily membership of each regional school district, except |
the Chariho regional high school district, shall be determined by the commissioner of elementary |
and secondary education from data supplied by the school committee of each regional school |
district for the reference year in the manner provided in subsection (1) of this section. |
(4) For all fiscal years beginning after June 30, 2024, notwithstanding subsection (1)(ii) |
above, the decrease for group home beds shall not apply to residential facility “beds” located or |
associated with the CRAFT program pursuant to § 16-64-1.1. |
SECTION 6 Section 23-12.7-3 of the General Laws in Chapter 23-12.7 entitled "The |
Breast Cancer Act" is hereby amended to read as follows: |
23-12.7-3. Program established. |
(a) Through funding from the Rhode Island Cancer Council U.S. Centers for Disease |
Control and Prevention, the Rhode Island department of health is required to establish a program |
of free mammography screening according to American Cancer Society standards, and, where |
required, follow-up, diagnostic testing, and case management for women in the state who are |
uninsured or underinsured. |
(b) The screening program shall: |
(1) Secure radiology facilities to participate in the screening program; |
(2) Pay for screening mammograms; |
(3) Ensure that screening results are sent by mail, electronically, or otherwise, to the patient |
in a timely manner; |
(4) Provide diagnostic tests as required to diagnose breast cancer; |
(5) Provide case management facilitating appropriate contact to breast surgeons, medical |
oncologists, and radiation oncologists; and |
(6) Provide follow-up support to women who are found to have breast cancer as a result of |
this screening program. |
(c) The director of the Rhode Island department of health is required to provide an annual |
report due to the general assembly on May 15 on the program of free mammography screening, |
follow-up diagnostic testing and case management, and public education. An advisory committee |
concerned with advocacy, outreach, and public education shall meet on a quarterly basis and report |
to the director. |
SECTION 7 Section 28-27-11 of the General Laws in Chapter 28-27 entitled "Mechanical |
Trades" is hereby amended to read as follows: |
28-27-11. Journeyperson license — Test fees — License fees and qualifications — |
Filing deadline for journeyperson. |
(a) No application for a journeyperson’s test shall be filed by the department nor shall any |
applicant be permitted to take the examination for a license as a journeyperson unless: |
(1) The test application is accompanied by a test fee as outlined in § 28-27-17; |
(2) Upon passing of a journeyperson test, payment of a license fee as outlined in § 28-27- |
17 is required and the journeyperson license will be issued as provided in § 28-27-15; and |
(3) The applicant has possessed prior to the filing of the application a certificate of |
registration in full force and effect from the department of labor and training specifying the person |
as a registered apprentice pursuant to § 28-45-13, and the application of an applicant: |
(i) Is accompanied by an affidavit or affidavits of their employer or former employers or |
other reasonably satisfactory evidence showing that the applicant has been actually engaged in |
pipefitting or refrigeration/air conditioning, sheet metal or fire protection sprinkler systems work |
as an apprentice registered for at least ten thousand (10,000) hours in the state of Rhode Island |
in accordance with the hourly requirements pursuant to §§ 28-27-4.1 and 28-27-4.2; |
(ii) Is accompanied by an affidavit or other reasonably satisfactory evidence showing that |
the applicant has been registered as a student in a recognized college, university, or trade school |
and has pursued a course of pipefitting or refrigeration/air conditioning, sheet metal or fire |
protection sprinkler systems for at least two (2) academic years or is the recipient of an associate |
degree in pipefitting or refrigeration/air conditioning or fire protection sprinkler systems, and has |
thereafter been registered by the department of labor and training as an apprentice for at least three |
(3) years and employed as a registered apprentice by a duly licensed pipefitter or refrigeration/air |
conditioning or fire protection sprinkler systems master or sheet metal contractors in this state for |
a period of three (3) years; or |
(iii) Is accompanied by an affidavit or other reasonably satisfactory evidence showing that |
the applicant possesses a certificate of license issued under the laws of another state specifying that |
person as a journeyperson. |
(4) [Deleted by P.L. 2024, ch. 330, § 7 and P.L. 2024, ch. 331, § 7.] |
(b) The test application is to be filed with the department at least fifteen (15) days prior to |
the examination date. |
SECTION 8. Section 28-45-9 of the General Laws in Chapter 28-45 entitled |
"Apprenticeship Programs in Trade and Industry" is hereby amended to read as follows: |
28-45-9. Standards of apprenticeship programs. |
An apprenticeship program, to be eligible for approval and registration with the department |
of labor and training, shall conform to regulations issued by the department of labor and training |
and 29 C.F.R. Part 29 and 29 C.F.R. Part 30 and shall conform to the following standards: |
(1) The program is an organized, written plan embodying the terms and conditions of |
employment, training, and supervision of one or more apprentices in the apprenticeable occupation, |
as defined in this chapter and subscribed to by a sponsor who has undertaken to carry out the |
apprentice training program. |
(2) The program standards contain the equal opportunity pledge prescribed in 29 C.F.R § |
30.3(c) and, when applicable, an affirmative action plan in accordance with 29 C.F.R. § 30.4, a |
selection method authorized in 29 C.F.R § 30.10, or similar requirements expressed in a state plan |
for equal employment opportunity in apprenticeship adopted pursuant to 29 C.F.R. Part 30 and |
approved by the United States Department of Labor, and provisions concerning the following: |
(i) The employment and training of the apprentice in a skilled occupation; |
(ii) A term of apprenticeship not less than two thousand (2,000) hours of work experience, |
consistent with training requirements as established by industry practice, which for an individual |
apprentice may be measured either through the completion of the industry standard for on-the-job |
learning (at least two thousand (2,000) hours) (time-based approach), the attainment of competency |
(competency-based approach), or a blend of the time-based and competency-based approaches |
(hybrid approach): |
(A) The time-based approach measures skill acquisition through the individual apprentice’s |
completion of at least two thousand (2,000) hours of on-the-job learning as described in a work |
process schedule; |
(B) The competency-based approach measures skill acquisition through the individual |
apprentice’s successful demonstration of acquired skills and knowledge, as verified by the program |
sponsor. Programs utilizing this approach must still require apprentices to complete an on-the-job |
learning component of registered apprenticeship. The program standards must address how on-the- |
job learning will be integrated into the program, describe competencies, and identify an appropriate |
means of testing and evaluation for such competencies; |
(C) The hybrid approach measures the individual apprentice’s skill acquisition through a |
combination of specified minimum number of hours of on-the-job learning and the successful |
demonstration of competency as described in a work process schedule; and |
(D) The determination of the appropriate approach for the program standards is made by |
the program sponsor, subject to approval by the registration agency of the determination as |
appropriate to the apprenticeable occupation for which the program standards are registered; |
(iii) An outline of the work processes in which the apprentice will receive supervised work |
experience and training on the job, and the allocation of the approximate time to be spent in each |
major process; |
(iv) Provision for organized, related, and supplemental instruction in technical subjects |
related to the trade. A minimum of one hundred forty-four (144) hours for each year of |
apprenticeship is recommended. This instruction in technical subjects may be accomplished |
through media, such as classroom, occupational or industry courses, electronic media, or other |
instruction approved by the department of labor and training; every apprenticeship instructor must: |
(A) Meet the Rhode Island department of elementary and secondary education |
requirements for a vocational-technical instructor, or be a subject matter expert, which is an |
individual, such as a journey worker, who is recognized within an industry as having expertise in a |
specific occupation; and |
(B) Have training in teaching techniques and adult learning styles, which may occur before |
or after the apprenticeship instructor has started to provide the related technical instruction; |
(v) A statement of the progressively increasing scale of wages to be paid the apprentice |
consistent with the skill acquired, the entry wage to be not less than the minimum wage prescribed |
by the federal and state labor standards act, where applicable, unless a higher wage is required by |
other applicable federal law, state law, respective regulations, or by collective bargaining |
agreement; |
(vi) A provision for periodic review and evaluation of the apprentice’s progress in job |
performance and related instruction, and the maintenance of appropriate progress records; |
(vii) The numeric ratio of apprentices to journeypersons consistent with proper supervision, |
training, safety, and continuity of employment, and applicable provisions in collective bargaining |
agreements, except where the ratios are expressly prohibited by the collective bargaining |
agreement. The ratio language shall be specific and clear as to application in terms of jobsite, work |
force, department, or plant; |
(viii) A probationary period reasonable in relation to the full apprenticeship term, with full |
credit given for the period toward completion of apprenticeship; the probationary period shall not |
exceed twenty-five percent (25%) of the length of the program or one year, whichever is shorter; |
(ix) Adequate and safe equipment and facilities for training and supervision, and safety |
training for apprentices on the job and in related instruction; |
(x) The minimum qualifications required by a sponsor for persons entering the |
apprenticeship program, with an eligible starting age not less than sixteen (16) years; |
(xi) The placement of an apprentice under a written apprenticeship agreement that |
conforms to the requirements of this chapter. The agreement shall directly, or by reference, |
incorporate the standards of the program as part of the agreement; |
(xii) The granting of advanced standing or credit for demonstrated competency, previously |
acquired experience, training, or skills for all applicants equally, with commensurate wages for any |
progression step so granted; |
(xiii) The transfer of an apprentice between apprenticeship programs and within an |
apprenticeship program must be based on agreement between the apprentice and the affected |
apprenticeship committees or program sponsors, and must comply with the following requirements: |
(A) The transferring apprentice must be provided a transcript of related instruction and on- |
the-job learning by the committee or program sponsor; |
(B) Transfer must be to the same occupation; and |
(C) A new apprenticeship agreement must be executed when the transfer occurs between |
program sponsors; |
(xiv) Assurance of qualified training personnel and adequate supervision on the job; |
(xv) Recognition for successful completion of apprenticeship evidenced by an appropriate |
certificate issued by the department of labor and training; |
(xvi) Program standards that utilize the competency-based or hybrid approach for |
progression through an apprenticeship and that choose to issue interim credentials must clearly |
identify the interim credentials; demonstrate how these credentials link to the components of the |
apprenticeable occupation; and establish the process for assessing an individual apprentice’s |
demonstration of competency associated with the particular interim credential; further, interim |
credentials must only be issued for recognized components of an apprenticeable occupation, |
thereby linking interim credentials specifically to the knowledge, skills, and abilities associated |
with those components of the apprenticeable occupation; |
(xvii) Identification of the department of labor and training as the registration agency; |
(xviii) Provision for the registration, cancellation, and deregistration of the program, and |
requirement for the prompt submission of any modification or amendment to the department of |
labor and training for approval; |
(xix) Provision for registration of apprenticeship agreements, modifications, and |
amendments; notice to the department of labor and training of persons who have successfully |
completed apprenticeship programs; and notice of transfers, cancellations, suspensions, and |
terminations of apprenticeship agreements and a statement of the reasons therefor; |
(xx) Authority for the cancellation of an apprenticeship agreement during the probationary |
period by either party without stated cause. Cancellation during the probationary period will not |
have an adverse impact on the sponsor’s completion rate; |
(xxi) Compliance with 29 C.F.R. Part 30, including the equal opportunity pledge prescribed |
in 29 C.F.R. § 30.3(b)(c); an affirmative action plan complying with 29 C.F.R. § 30.4; and a method |
for the selection of apprentices authorized by 29 C.F.R § 30.5 30.10, or compliance with parallel |
requirements contained in a state plan for equal opportunity in apprenticeship adopted under 29 |
C.F.R. Part 30 and approved by the department. The apprenticeship standards must also include a |
statement that the program will be conducted, operated, and administered in conformity with |
applicable provisions of 29 C.F.R. Part 30, as amended, or if applicable, an approved state plan for |
equal opportunity in apprenticeship; |
(xxii) Name and address, telephone number, and e-mail address (if applicable) of the |
appropriate authority under the program to receive, process, and make disposition of complaints; |
(xxiii) Recording and maintenance of all records concerning apprenticeship as may be |
required by the office of apprenticeship or the department of labor and training and other applicable |
law. |
SECTION 9. Section 31-1-23 of the General Laws in Chapter 31-1 entitled "Definitions |
and General Code Provisions" is hereby amended to read as follows: |
31-1-23. Types of roads. |
(a) “Bicycle lane” means a portion of highway right-of-way designated by the state and |
identified by official traffic control devices (pavement markings) for the exclusive use of bicyclists. |
The operation and parking of motor vehicles is prohibited within the lane identified for exclusive |
use by bicyclists, except when making a turn, entering or leaving the roadway or a parking lane, or |
when required in the course of official duty. |
(b) “Bicycle route” means a shared right-of-way along a highway, designated by the state |
and identified by official traffic control devices (signs) for use by bicyclists. |
(c) “Bicycle trail or path” means a bikeway physically separated from motorized vehicular |
traffic by an open space or barrier and either within the highway right-of-way or within an |
independent right-of-way. Bicycle trails or paths may also be used by pedestrians, skaters, riders |
of Class 1 electric bicycles as defined in § 31-19.7-1, wheelchair users, joggers, and other |
nonmotorized users. |
(d) “Laned roadway” means a roadway which is divided into two (2) or more clearly |
marked lanes for vehicular traffic. |
(e) “Limited access highway” means every highway, street, or roadway to or from which |
owners or occupants of abutting lands and other persons have no legal right of access except at |
those points and in that manner determined by the public authority having jurisdiction over it. |
(f) “Local highway” means every street or highway other than a state highway, private |
road, or driveway. |
(g) “Private road or driveway” means every way or place in private ownership that is used |
for vehicular travel only by the owner and by those others having express or implied permission |
from the owner. |
(h) “Roadway” means that portion of a highway improved, designed, or ordinarily used for |
vehicular travel, excluding the sidewalk, berm, or shoulder even when used by persons riding |
bicycles. In the event a highway includes two (2) or more separate roadways, “roadway” refers to |
the roadway separately and not the roadways collectively. |
(i) “Sidewalk” means that portion of a street between the curb lines, or the lateral lines of |
a roadway, and the adjacent property lines intended for the use of pedestrians. |
(j) “State highway” means every street or highway constructed and/or maintained by the |
director of public works and the division of roads and bridges department of transportation. |
(k) “Street or highway” means the entire width between boundary lines of every way when |
any part of it is open to the use of the public for purposes of vehicular traffic. |
(l) “Through highway” means every highway or portion of a highway having entrances |
from intersecting highways at which vehicular traffic is required by law to stop before entering or |
crossing, and where stop signs are erected under the provisions of chapters 1 — 27 of this title. |
SECTION 10. Section 31-27-2 of the General Laws in Chapter 31-27 entitled "Motor |
Vehicle Offenses" is hereby amended to read as follows: |
31-27-2. Driving under influence of liquor or drugs. [Effective until July 1, 2025.] |
(a) Whoever drives or otherwise operates any vehicle in the state while under the influence |
of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of |
title 21, or any combination of these, shall be guilty of a misdemeanor, except as provided in |
subsection (d)(3), and shall be punished as provided in subsection (d) of this section. |
(b)(1) Any person charged under subsection (a), whose blood alcohol concentration is eight |
one-hundredths of one percent (.08%) or more by weight, as shown by a chemical analysis of a |
blood, breath, or urine sample, shall be guilty of violating subsection (a). This provision shall not |
preclude a conviction based on other admissible evidence, including the testimony of a drug |
recognition expert or evaluator, certified pursuant to training approved by the Rhode Island |
department of transportation office on highway safety. Proof of guilt under this section may also |
be based on evidence that the person charged was under the influence of intoxicating liquor, drugs, |
toluene, or any controlled substance defined in chapter 28 of title 21, or any combination of these, |
to a degree that rendered the person incapable of safely operating a vehicle. The fact that any person |
charged with violating this section is, or has been, legally entitled to use alcohol or a drug shall not |
constitute a defense against any charge of violating this section. |
(2) [Deleted by P.L. 2021, ch. 170, § 1 and P.L. 2021, ch. 171, § 1.] |
(c) In any criminal prosecution for a violation of subsection (a), evidence as to the amount |
of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of title 21, or |
any combination of these, in the defendant’s blood at the time alleged as shown by a chemical |
analysis of the defendant’s breath, blood, saliva or urine or other bodily substance, shall be |
admissible and competent, provided that evidence is presented that the following conditions have |
been complied with: |
(1) The defendant has consented to the taking of the test upon which the analysis is made. |
Evidence that the defendant had refused to submit to the test shall not be admissible unless the |
defendant elects to testify. |
(2) A true copy of the report of the test result was hand delivered at the location of the test |
or mailed within seventy-two (72) hours of the taking of the test to the person submitting to a breath |
test. |
(3) Any person submitting to a chemical test of blood, urine, saliva or other body fluids |
shall have a true copy of the report of the test result mailed to him or her within thirty (30) days |
following the taking of the test. |
(4) The test was performed according to methods and with equipment approved by the |
director of the department of health of the state of Rhode Island and by an authorized individual. |
(5) Equipment used for the conduct of the tests by means of breath analysis had been tested |
for accuracy within thirty (30) days preceding the test by personnel qualified as hereinbefore |
provided, and breathalyzer operators shall be qualified and certified by the department of health |
within three hundred sixty-five (365) days of the test. |
(6) The person arrested and charged with operating a motor vehicle while under the |
influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of |
title 21 or any combination of these in violation of subsection (a), was afforded the opportunity to |
have an additional chemical test. The officer arresting or so charging the person shall have informed |
the person of this right and afforded him or her a reasonable opportunity to exercise this right, and |
a notation to this effect is made in the official records of the case in the police department. Refusal |
to permit an additional chemical test shall render incompetent and inadmissible in evidence the |
original report. |
(d)(1)(i) Every person found to have violated subsection (b)(1) shall be sentenced as |
follows: for a first violation whose blood alcohol concentration is eight one-hundredths of one |
percent (.08%), but less than one-tenth of one percent (.1%), by weight, or who has a blood presence |
of any scheduled controlled substance as defined in chapter 28 of title 21, shall be subject to a fine |
of not less than one hundred dollars ($100), nor more than three hundred dollars ($300); shall be |
required to perform ten (10) to sixty (60) hours of public community restitution, and/or shall be |
imprisoned for up to one year. The sentence may be served in any unit of the adult correctional |
institutions in the discretion of the sentencing judge and/or shall be required to attend a special |
course on driving while intoxicated or under the influence of a controlled substance; provided, |
however, that the court may permit a servicemember or veteran to complete any court-approved |
counseling program administered or approved by the Veterans’ Administration, and his or her |
driver’s license shall be suspended for thirty (30) days up to one hundred eighty (180) days. The |
sentencing judge or magistrate may prohibit that person from operating a motor vehicle, pursuant |
to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system |
and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a first violation whose blood alcohol concentration is one- |
tenth of one percent (.1%) by weight or above, but less than fifteen hundredths of one percent |
(.15%), or whose blood alcohol concentration is unknown, shall be subject to a fine of not less than |
one hundred ($100) dollars, nor more than four hundred dollars ($400), and shall be required to |
perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned for |
up to one year. The sentence may be served in any unit of the adult correctional institutions in the |
discretion of the sentencing judge. The person’s driving license shall be suspended for a period of |
three (3) months to twelve (12) months. The sentencing judge shall require attendance at a special |
course on driving while intoxicated or under the influence of a controlled substance and/or |
alcoholic or drug treatment for the individual; provided, however, that the court may permit a |
servicemember or veteran to complete any court-approved counseling program administered or |
approved by the Veterans’ Administration. The sentencing judge or magistrate may prohibit that |
person from operating a motor vehicle that is not equipped with an ignition interlock system as |
provided in § 31-27-2.8. |
(iii) Every person convicted of a first offense whose blood alcohol concentration is fifteen |
hundredths of one percent (.15%) or above, or who is under the influence of a drug, toluene, or any |
controlled substance as defined in subsection (b)(1), shall be subject to a fine of five hundred dollars |
($500) and shall be required to perform twenty (20) to sixty (60) hours of public community |
restitution and/or shall be imprisoned for up to one year. The sentence may be served in any unit |
of the adult correctional institutions in the discretion of the sentencing judge. The person’s driving |
license shall be suspended for a period of three (3) months to eighteen (18) months. The sentencing |
judge shall require attendance at a special course on driving while intoxicated or under the influence |
of a controlled substance and/or alcohol or drug treatment for the individual; provided, however, |
that the court may permit a servicemember or veteran to complete any court-approved counseling |
program administered or approved by the Veterans’ Administration. The sentencing judge or |
magistrate shall prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9) |
or (d)(10) of this section, that is not equipped with an ignition interlock system and/or blood and |
urine testing as provided in § 31-27-2.8. |
(2)(i) Every person convicted of a second violation within a five-year (5) period with a |
blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, but less than |
fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is unknown, or |
who has a blood presence of any controlled substance as defined in chapter 28 of title 21, and every |
person convicted of a second violation within a five-year (5) period, regardless of whether the prior |
violation and subsequent conviction was a violation and subsequent conviction under this statute |
or under the driving under the influence of liquor or drugs statute of any other state, shall be subject |
to a mandatory fine of four hundred dollars ($400). The person’s driving license shall be suspended |
for a period of one year to two (2) years, and the individual shall be sentenced to not less than ten |
(10) days, nor more than one year, in jail. The sentence may be served in any unit of the adult |
correctional institutions in the discretion of the sentencing judge; however, not less than forty-eight |
(48) hours of imprisonment shall be served consecutively. The sentencing judge shall require |
alcohol or drug treatment for the individual; provided, however, that the court may permit a |
servicemember or veteran to complete any court-approved counseling program administered or |
approved by the Veterans’ Administration and shall prohibit that person from operating a motor |
vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition |
interlock system and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a second violation within a five-year (5) period whose blood |
alcohol concentration is fifteen hundredths of one percent (.15%) or above, by weight as shown by |
a chemical analysis of a blood, breath, or urine sample, or who is under the influence of a drug, |
toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to mandatory |
imprisonment of not less than six (6) months, nor more than one year; a mandatory fine of not less |
than one thousand dollars ($1,000); and a mandatory license suspension for a period of two (2) |
years from the date of completion of the sentence imposed under this subsection. The sentencing |
judge shall require alcohol or drug treatment for the individual; provided, however, that the court |
may permit a servicemember or veteran to complete any court approved counseling program |
administered or approved by the Veterans’ Administration. The sentencing judge or magistrate |
shall prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) |
of this section, that is not equipped with an ignition interlock system and/or blood and urine testing |
as provided in § 31-27-2.8. |
(3)(i) Every person convicted of a third or subsequent violation within a five-year (5) |
period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, |
but less than fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is |
unknown or who has a blood presence of any scheduled controlled substance as defined in chapter |
28 of title 21, regardless of whether any prior violation and subsequent conviction was a violation |
and subsequent conviction under this statute or under the driving under the influence of liquor or |
drugs statute of any other state, shall be guilty of a felony and be subject to a mandatory fine of |
four hundred ($400) dollars. The person’s driving license shall be suspended for a period of two |
(2) years to three (3) years, and the individual shall be sentenced to not less than one year and not |
more than three (3) years in jail. The sentence may be served in any unit of the adult correctional |
institutions in the discretion of the sentencing judge; however, not less than forty-eight (48) hours |
of imprisonment shall be served consecutively. The sentencing judge shall require alcohol or drug |
treatment for the individual; provided, however, that the court may permit a servicemember or |
veteran to complete any court-approved counseling program administered or approved by the |
Veterans’ Administration, and shall prohibit that person from operating a motor vehicle, pursuant |
to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system |
and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a third or subsequent violation within a ten-year (10) period |
whose blood alcohol concentration is fifteen hundredths of one percent (.15%) or above by weight |
as shown by a chemical analysis of a blood, breath, or urine sample, or who is under the influence |
of a drug, toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to |
mandatory imprisonment of not less than three (3) years, nor more than five (5) years; a mandatory |
fine of not less than one thousand dollars ($1,000), nor more than five thousand dollars ($5,000); |
and a mandatory license suspension for a period of three (3) years from the date of completion of |
the sentence imposed under this subsection. The sentencing judge shall require alcohol or drug |
treatment for the individual. The sentencing judge or magistrate shall prohibit that person from |
operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not |
equipped with an ignition interlock system and/or blood and urine testing as provided in § 31-27- |
2.8. |
(iii) In addition to the foregoing penalties, every person convicted of a third or subsequent |
violation within a five-year (5) period, regardless of whether any prior violation and subsequent |
conviction was a violation and subsequent conviction under this statute or under the driving under |
the influence of liquor or drugs statute of any other state, shall be subject, in the discretion of the |
sentencing judge, to having the vehicle owned and operated by the violator seized and sold by the |
state of Rhode Island, with all funds obtained by the sale to be transferred to the general fund. |
(4) Whoever drives or otherwise operates any vehicle in the state while under the influence |
of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of |
title 21, or any combination of these, when his or her license to operate is suspended, revoked, or |
cancelled for operating under the influence of a narcotic drug or intoxicating liquor, shall be guilty |
of a felony punishable by imprisonment for not more than three (3) years and by a fine of not more |
than three thousand dollars ($3,000). The court shall require alcohol and/or drug treatment for the |
individual; provided, the penalties provided for in this subsection (d)(4) shall not apply to an |
individual who has surrendered his or her license and served the court-ordered period of suspension, |
but who, for any reason, has not had his or her license reinstated after the period of suspension, |
revocation, or suspension has expired; provided, further, the individual shall be subject to the |
provisions of subsection (d)(2)(i), (d)(2)(ii), (d)(3)(i), (d)(3)(ii), or (d)(3)(iii) regarding subsequent |
offenses, and any other applicable provision of this section. |
(5)(i) For purposes of determining the period of license suspension, a prior violation shall |
constitute any charge brought and sustained under the provisions of this section or § 31-27-2.1. |
(ii) Any person over the age of eighteen (18) who is convicted under this section for |
operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of |
these, while a child under the age of thirteen (13) years was present as a passenger in the motor |
vehicle when the offense was committed shall be subject to immediate license suspension pending |
prosecution. Any person convicted of violating this section shall be guilty of a misdemeanor for a |
first offense and may be sentenced to a term of imprisonment of not more than one year and a fine |
not to exceed one thousand dollars ($1,000). Any person convicted of a second or subsequent |
offense shall be guilty of a felony offense and may be sentenced to a term of imprisonment of not |
more than five (5) years and a fine not to exceed five thousand dollars ($5,000). The sentencing |
judge shall also order a license suspension of up to two (2) years, require attendance at a special |
course on driving while intoxicated or under the influence of a controlled substance, and alcohol |
or drug education and/or treatment. The individual may also be required to pay a highway |
assessment fee of no more than five hundred dollars ($500) and the assessment shall be deposited |
in the general fund. |
(6)(i) Any person convicted of a violation under this section shall pay a highway |
assessment fine of five hundred dollars ($500) that shall be deposited into the general fund. The |
assessment provided for by this subsection shall be collected from a violator before any other fines |
authorized by this section. |
(ii) Any person convicted of a violation under this section shall be assessed a fee of eighty- |
six dollars ($86). |
(7)(i) If the person convicted of violating this section is under the age of eighteen (18) |
years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of |
public community restitution and the juvenile’s driving license shall be suspended for a period of |
six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing |
judge shall also require attendance at a special course on driving while intoxicated or under the |
influence of a controlled substance and alcohol or drug education and/or treatment for the juvenile. |
The juvenile may also be required to pay a highway assessment fine of no more than five hundred |
dollars ($500) and the assessment imposed shall be deposited into the general fund. |
(ii) If the person convicted of violating this section is under the age of eighteen (18) years, |
for a second or subsequent violation regardless of whether any prior violation and subsequent |
conviction was a violation and subsequent conviction under this statute or under the driving under |
the influence of liquor or drugs statute of any other state, he or she shall be subject to a mandatory |
suspension of his or her driving license until such time as he or she is twenty-one (21) years of age |
and may, in the discretion of the sentencing judge, also be sentenced to the Rhode Island training |
school for a period of not more than one year and/or a fine of not more than five hundred dollars |
($500). |
(8) Any person convicted of a violation under this section may undergo a clinical |
assessment at the community college of Rhode Island’s center for workforce and community |
education. Should this clinical assessment determine problems of alcohol, drug abuse, or |
psychological problems associated with alcoholic or drug abuse, this person shall be referred to an |
appropriate facility, licensed or approved by the department of behavioral healthcare, |
developmental disabilities and hospitals, for treatment placement, case management, and |
monitoring. In the case of a servicemember or veteran, the court may order that the person be |
evaluated through the Veterans’ Administration. Should the clinical assessment determine |
problems of alcohol, drug abuse, or psychological problems associated with alcohol or drug abuse, |
the person may have their treatment, case management, and monitoring administered or approved |
by the Veterans’ Administration. |
(9) Notwithstanding any other sentencing and disposition provisions contained in this |
chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was |
operating a vehicle in the state while under the influence of drugs, toluene, or any controlled |
substance as evidenced by the presence of controlled substances on or about the person or vehicle, |
or other reliable indicia or articulable conditions thereof, but not intoxicating liquor based on a |
preliminary breath test, results from a breathalyzer that indicates no blood alcohol concentration, |
or both, the judge or magistrate may exercise his or her discretion and eliminate the requirement of |
an ignition interlock system; provided, that blood and/or urine testing is mandated as a condition |
to operating a motor vehicle as provided in § 31-27-2.8. |
(10) Notwithstanding any other sentencing and disposition provisions contained in this |
chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was |
operating a vehicle in the state while under the influence of drugs, toluene, or any controlled |
substance as evidenced by the presence of controlled substances on or about the person or vehicle, |
or other reliable indicia or articulable conditions thereof and intoxicating liquor based on a |
preliminary breath test, results from a breathalyzer that indicates blood alcohol concentration, or |
both, the judge or magistrate may require an ignition interlock system in addition to blood and/or |
urine testing as a condition to operating a motor vehicle as provided in § 31-27-2.8. |
(e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol per |
one hundred cubic centimeters (100 cc) of blood. |
(f)(1) There is established an alcohol and drug safety unit within the division of motor |
vehicles to administer an alcohol safety action program. The program shall provide for placement |
and follow-up for persons who are required to pay the highway safety assessment. The alcohol and |
drug safety action program will be administered in conjunction with alcohol and drug programs |
licensed by the department of behavioral healthcare, developmental disabilities and hospitals. |
(2) Persons convicted under the provisions of this chapter shall be required to attend a |
special course on driving while intoxicated or under the influence of a controlled substance, and/or |
participate in an alcohol or drug treatment program, which course and programs must meet the |
standards established by the Rhode Island department of behavioral healthcare, developmental |
disabilities and hospitals; provided, however, that the court may permit a servicemember or veteran |
to complete any court-approved counseling program administered or approved by the Veterans’ |
Administration. The course shall take into consideration any language barrier that may exist as to |
any person ordered to attend, and shall provide for instruction reasonably calculated to |
communicate the purposes of the course in accordance with the requirements of the subsection. |
Any costs reasonably incurred in connection with the provision of this accommodation shall be |
borne by the person being retrained. A copy of any violation under this section shall be forwarded |
by the court to the alcohol and drug safety unit. In the event that persons convicted under the |
provisions of this chapter fail to attend and complete the above course or treatment program, as |
ordered by the judge, then the person may be brought before the court, and after a hearing as to |
why the order of the court was not followed, may be sentenced to jail for a period not exceeding |
one year. |
(3) The alcohol and drug safety action program within the division of motor vehicles shall |
be funded by general revenue appropriations. |
(g) The director of the department of health is empowered to make and file with the |
secretary of state regulations that prescribe the techniques and methods of chemical analysis of the |
person’s body fluids or breath and the qualifications and certification of individuals authorized to |
administer this testing and analysis. |
(h) Jurisdiction for misdemeanor violations of this section shall be with the district court |
for persons eighteen (18) years of age or older and to the family court for persons under the age of |
eighteen (18) years. The courts shall have full authority to impose any sentence authorized and to |
order the suspension of any license for violations of this section. Trials in superior court are not |
required to be scheduled within thirty (30) days of the arraignment date. |
(i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on |
driving while intoxicated or under the influence of a controlled substance, public community |
restitution, or jail provided for under this section can be suspended. |
(j) An order to attend a special course on driving while intoxicated, that shall be |
administered in cooperation with a college or university accredited by the state, shall include a |
provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars |
($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into |
the general fund. |
(k) For the purposes of this section, any test of a sample of blood, breath, or urine for the |
presence of alcohol that relies in whole or in part upon the principle of infrared light absorption is |
considered a chemical test. |
(l) If any provision of this section, or the application of any provision, shall for any reason |
be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of the |
section, but shall be confined in this effect to the provision or application directly involved in the |
controversy giving rise to the judgment. |
(m) For the purposes of this section, “servicemember” means a person who is presently |
serving in the armed forces of the United States, including the Coast Guard, a reserve component |
thereof, or the National Guard. “Veteran” means a person who has served in the armed forces, |
including the Coast Guard of the United States, a reserve component thereof, or the National Guard, |
and has been discharged under other than dishonorable conditions. |
31-27-2. Driving under influence of liquor or drugs. [Effective July 1, 2025.] |
(a) Whoever drives or otherwise operates any vehicle in the state while under the influence |
of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of |
title 21, or any combination of these, shall be guilty of a misdemeanor, except as provided in |
subsection (d)(3), and shall be punished as provided in subsection (d) of this section. |
(b)(1) Any person charged under subsection (a), whose blood alcohol concentration is eight |
one-hundredths of one percent (.08%) or more by weight, as shown by a chemical analysis of a |
blood, breath, or urine sample, shall be guilty of violating subsection (a). This provision shall not |
preclude a conviction based on other admissible evidence, including the testimony of a drug |
recognition expert or evaluator, certified pursuant to training approved by the Rhode Island |
department of transportation office on highway safety. Proof of guilt under this section may also |
be based on evidence that the person charged was under the influence of intoxicating liquor, drugs, |
toluene, or any controlled substance defined in chapter 28 of title 21, or any combination of these, |
to a degree that rendered the person incapable of safely operating a vehicle. The fact that any person |
charged with violating this section is, or has been, legally entitled to use alcohol or a drug shall not |
constitute a defense against any charge of violating this section. |
(2) [Deleted by P.L. 2021, ch. 170, § 1 and P.L. 2021, ch. 171, § 1.] |
(c) In any criminal prosecution for a violation of subsection (a), evidence as to the amount |
of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of title 21, or |
any combination of these, in the defendant’s blood at the time alleged as shown by a chemical |
analysis of the defendant’s breath, blood, saliva or urine or other bodily substance, shall be |
admissible and competent, provided that evidence is presented that the following conditions have |
been complied with: |
(1) The defendant has consented to the taking of the test upon which the analysis is made. |
Evidence that the defendant had refused to submit to the test shall not be admissible unless the |
defendant elects to testify. |
(2) A true copy of the report of the test result was hand delivered at the location of the test |
or mailed within seventy-two (72) hours of the taking of the test to the person submitting to a breath |
test. |
(3) Any person submitting to a chemical test of blood, urine, saliva or other body fluids |
shall have a true copy of the report of the test result mailed to him or her within thirty (30) days |
following the taking of the test. |
(4) The test was performed according to methods and with equipment approved by the |
director of the department of health of the state of Rhode Island and by an authorized individual. |
(5) Equipment used for the conduct of the tests by means of breath analysis had been tested |
for accuracy within thirty (30) days preceding the test by personnel qualified as hereinbefore |
provided, and breathalyzer operators shall be qualified and certified by the department of health |
within three hundred sixty-five (365) days of the test. |
(6) The person arrested and charged with operating a motor vehicle while under the |
influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of |
title 21 or any combination of these in violation of subsection (a), was afforded the opportunity to |
have an additional chemical test. The officer arresting or so charging the person shall have informed |
the person of this right and afforded him or her a reasonable opportunity to exercise this right, and |
a notation to this effect is made in the official records of the case in the police department. Refusal |
to permit an additional chemical test shall render incompetent and inadmissible in evidence the |
original report. |
(d)(1)(i) Every person found to have violated subsection (b)(1) shall be sentenced as |
follows: for a first violation whose blood alcohol concentration is eight one-hundredths of one |
percent (.08%), but less than one-tenth of one percent (.1%), by weight, or who has a blood presence |
of any scheduled controlled substance as defined in chapter 28 of title 21, shall be subject to a fine |
of not less than one hundred dollars ($100), nor more than three hundred dollars ($300); shall be |
required to perform ten (10) to sixty (60) hours of public community restitution, and/or shall be |
imprisoned for up to one year. The sentence may be served in any unit of the adult correctional |
institutions in the discretion of the sentencing judge and/or shall be required to attend a special |
course on driving while intoxicated or under the influence of a controlled substance; provided, |
however, that the court may permit a servicemember or veteran to complete any court-approved |
counseling program administered or approved by the Veterans’ Administration, and his or her |
driver’s license shall be suspended for thirty (30) days up to one hundred eighty (180) days. The |
sentencing judge or magistrate may prohibit that person from operating a motor vehicle, pursuant |
to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system |
and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a first violation whose blood alcohol concentration is one- |
tenth of one percent (.1%) by weight or above, but less than fifteen hundredths of one percent |
(.15%), or whose blood alcohol concentration is unknown, shall be subject to a fine of not less than |
one hundred ($100) dollars, nor more than four hundred dollars ($400), and shall be required to |
perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned for |
up to one year. The sentence may be served in any unit of the adult correctional institutions in the |
discretion of the sentencing judge. The person’s driving license shall be suspended for a period of |
three (3) months to twelve (12) months. The sentencing judge shall require attendance at a special |
course on driving while intoxicated or under the influence of a controlled substance and/or |
alcoholic or drug treatment for the individual; provided, however, that the court may permit a |
servicemember or veteran to complete any court-approved counseling program administered or |
approved by the Veterans’ Administration. The sentencing judge or magistrate may prohibit that |
person from operating a motor vehicle that is not equipped with an ignition interlock system as |
provided in § 31-27-2.8. |
(iii) Every person convicted of a first offense whose blood alcohol concentration is fifteen |
hundredths of one percent (.15%) or above, or who is under the influence of a drug, toluene, or any |
controlled substance as defined in subsection (b)(1), shall be subject to a fine of five hundred dollars |
($500) and shall be required to perform twenty (20) to sixty (60) hours of public community |
restitution and/or shall be imprisoned for up to one year. The sentence may be served in any unit |
of the adult correctional institutions in the discretion of the sentencing judge. The person’s driving |
license shall be suspended for a period of three (3) months to eighteen (18) months. The sentencing |
judge shall require attendance at a special course on driving while intoxicated or under the influence |
of a controlled substance and/or alcohol or drug treatment for the individual; provided, however, |
that the court may permit a servicemember or veteran to complete any court-approved counseling |
program administered or approved by the Veterans’ Administration. The sentencing judge or |
magistrate shall prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9) |
or (d)(10) of this section, that is not equipped with an ignition interlock system and/or blood and |
urine testing as provided in § 31-27-2.8. |
(2)(i) Every person convicted of a second violation within a ten-year (10) period with a |
blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, but less than |
fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is unknown, or |
who has a blood presence of any controlled substance as defined in chapter 28 of title 21, and every |
person convicted of a second violation within a ten-year (10) period, regardless of whether the prior |
violation and subsequent conviction was a violation and subsequent conviction under this statute |
or under the driving under the influence of liquor or drugs statute of any other state, shall be subject |
to a mandatory fine of four hundred dollars ($400). The person’s driving license shall be suspended |
for a period of one year to two (2) years, and the individual shall be sentenced to not less than ten |
(10) days, nor more than one year, in jail. The sentence may be served in any unit of the adult |
correctional institutions in the discretion of the sentencing judge; however, not less than forty-eight |
(48) hours of imprisonment shall be served consecutively. The sentencing judge shall require |
alcohol or drug treatment for the individual; provided, however, that the court may permit a |
servicemember or veteran to complete any court-approved counseling program administered or |
approved by the Veterans’ Administration and shall prohibit that person from operating a motor |
vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition |
interlock system and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a second violation within a ten-year (10) period whose blood |
alcohol concentration is fifteen hundredths of one percent (.15%) or above, by weight as shown by |
a chemical analysis of a blood, breath, or urine sample, or who is under the influence of a drug, |
toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to mandatory |
imprisonment of not less than six (6) months, nor more than one year; a mandatory fine of not less |
than one thousand dollars ($1,000); and a mandatory license suspension for a period of two (2) |
years from the date of completion of the sentence imposed under this subsection. The sentencing |
judge shall require alcohol or drug treatment for the individual; provided, however, that the court |
may permit a servicemember or veteran to complete any court approved counseling program |
administered or approved by the Veterans’ Administration. The sentencing judge or magistrate |
shall prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) |
of this section, that is not equipped with an ignition interlock system and/or blood and urine testing |
as provided in § 31-27-2.8. |
(3)(i) Every person convicted of a third or subsequent violation within a ten-year (10) |
period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, |
but less than fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is |
unknown or who has a blood presence of any scheduled controlled substance as defined in chapter |
28 of title 21, regardless of whether any prior violation and subsequent conviction was a violation |
and subsequent conviction under this statute or under the driving under the influence of liquor or |
drugs statute of any other state, shall be guilty of a felony and be subject to a mandatory fine of |
four hundred ($400) dollars. The person’s driving license shall be suspended for a period of two |
(2) years to three (3) years, and the individual shall be sentenced to not less than one year and not |
more than three (3) years in jail. The sentence may be served in any unit of the adult correctional |
institutions in the discretion of the sentencing judge; however, not less than forty-eight (48) hours |
of imprisonment shall be served consecutively. The sentencing judge shall require alcohol or drug |
treatment for the individual; provided, however, that the court may permit a servicemember or |
veteran to complete any court-approved counseling program administered or approved by the |
Veterans’ Administration, and shall prohibit that person from operating a motor vehicle, pursuant |
to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system |
and/or blood and urine testing as provided in § 31-27-2.8. |
(ii) Every person convicted of a third or subsequent violation within a ten-year (10) period |
whose blood alcohol concentration is fifteen hundredths of one percent (.15%) or above by weight |
as shown by a chemical analysis of a blood, breath, or urine sample, or who is under the influence |
of a drug, toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to |
mandatory imprisonment of not less than three (3) years, nor more than five (5) years; a mandatory |
fine of not less than one thousand dollars ($1,000), nor more than five thousand dollars ($5,000); |
and a mandatory license suspension for a period of three (3) years from the date of completion of |
the sentence imposed under this subsection. The sentencing judge shall require alcohol or drug |
treatment for the individual. The sentencing judge or magistrate shall prohibit that person from |
operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not |
equipped with an ignition interlock system and/or blood and urine testing as provided in § 31-27- |
2.8. |
(iii) In addition to the foregoing penalties, every person convicted of a third or subsequent |
violation within a ten-year (10) period, regardless of whether any prior violation and subsequent |
conviction was a violation and subsequent conviction under this statute or under the driving under |
the influence of liquor or drugs statute of any other state, shall be subject, in the discretion of the |
sentencing judge, to having the vehicle owned and operated by the violator seized and sold by the |
state of Rhode Island, with all funds obtained by the sale to be transferred to the general fund. |
(4) Whoever drives or otherwise operates any vehicle in the state while under the influence |
of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of |
title 21, or any combination of these, when his or her license to operate is suspended, revoked, or |
cancelled for operating under the influence of a narcotic drug or intoxicating liquor, shall be guilty |
of a felony punishable by imprisonment for not more than three (3) years and by a fine of not more |
than three thousand dollars ($3,000). The court shall require alcohol and/or drug treatment for the |
individual; provided, the penalties provided for in this subsection (d)(4) shall not apply to an |
individual who has surrendered his or her license and served the court-ordered period of suspension, |
but who, for any reason, has not had his or her license reinstated after the period of suspension, |
revocation, or suspension has expired; provided, further, the individual shall be subject to the |
provisions of subsection (d)(2)(i), (d)(2)(ii), (d)(3)(i), (d)(3)(ii), or (d)(3)(iii) regarding subsequent |
offenses, and any other applicable provision of this section. |
(5)(i) For purposes of determining the period of license suspension, a prior violation shall |
constitute any charge brought and sustained under the provisions of this section or § 31-27-2.1. |
(ii) Any person over the age of eighteen (18) who is convicted under this section for |
operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of |
these, while a child under the age of thirteen (13) years was present as a passenger in the motor |
vehicle when the offense was committed shall be subject to immediate license suspension pending |
prosecution. Any person convicted of violating this section shall be guilty of a misdemeanor for a |
first offense and may be sentenced to a term of imprisonment of not more than one year and a fine |
not to exceed one thousand dollars ($1,000). Any person convicted of a second or subsequent |
offense shall be guilty of a felony offense and may be sentenced to a term of imprisonment of not |
more than five (5) years and a fine not to exceed five thousand dollars ($5,000). The sentencing |
judge shall also order a license suspension of up to two (2) years, require attendance at a special |
course on driving while intoxicated or under the influence of a controlled substance, and alcohol |
or drug education and/or treatment. The individual may also be required to pay a highway |
assessment fee of no more than five hundred dollars ($500) and the assessment shall be deposited |
in the general fund. |
(6)(i) Any person convicted of a violation under this section shall pay a highway |
assessment fine of five hundred dollars ($500) that shall be deposited into the general fund. The |
assessment provided for by this subsection shall be collected from a violator before any other fines |
authorized by this section. |
(ii) Any person convicted of a violation under this section shall be assessed a fee of eighty- |
six dollars ($86). |
(7)(i) If the person convicted of violating this section is under the age of eighteen (18) |
years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of |
public community restitution and the juvenile’s driving license shall be suspended for a period of |
six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing |
judge shall also require attendance at a special course on driving while intoxicated or under the |
influence of a controlled substance and alcohol or drug education and/or treatment for the juvenile. |
The juvenile may also be required to pay a highway assessment fine of no more than five hundred |
dollars ($500) and the assessment imposed shall be deposited into the general fund. |
(ii) If the person convicted of violating this section is under the age of eighteen (18) years, |
for a second or subsequent violation regardless of whether any prior violation and subsequent |
conviction was a violation and subsequent conviction under this statute or under the driving under |
the influence of liquor or drugs statute of any other state, he or she shall be subject to a mandatory |
suspension of his or her driving license until such time as he or she is twenty-one (21) years of age |
and may, in the discretion of the sentencing judge, also be sentenced to the Rhode Island training |
school for a period of not more than one year and/or a fine of not more than five hundred dollars |
($500). |
(8) Any person convicted of a violation under this section may undergo a clinical |
assessment at the community college of Rhode Island’s center for workforce and community |
education. Should this clinical assessment determine problems of alcohol, drug abuse, or |
psychological problems associated with alcoholic or drug abuse, this person shall be referred to an |
appropriate facility, licensed or approved by the department of behavioral healthcare, |
developmental disabilities and hospitals, for treatment placement, case management, and |
monitoring. In the case of a servicemember or veteran, the court may order that the person be |
evaluated through the Veterans’ Administration. Should the clinical assessment determine |
problems of alcohol, drug abuse, or psychological problems associated with alcohol or drug abuse, |
the person may have their treatment, case management, and monitoring administered or approved |
by the Veterans’ Administration. |
(9) Notwithstanding any other sentencing and disposition provisions contained in this |
chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was |
operating a vehicle in the state while under the influence of drugs, toluene, or any controlled |
substance as evidenced by the presence of controlled substances on or about the person or vehicle, |
or other reliable indicia or articulable conditions thereof, but not intoxicating liquor based on a |
preliminary breath test, results from a breathalyzer that indicates no blood alcohol concentration, |
or both, the judge or magistrate may exercise his or her discretion and eliminate the requirement of |
an ignition interlock system; provided, that blood and/or urine testing is mandated as a condition |
to operating a motor vehicle as provided in § 31-27-2.8. |
(10) Notwithstanding any other sentencing and disposition provisions contained in this |
chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was |
operating a vehicle in the state while under the influence of drugs, toluene, or any controlled |
substance as evidenced by the presence of controlled substances on or about the person or vehicle, |
or other reliable indicia or articulable conditions thereof and intoxicating liquor based on a |
preliminary breath test, results from a breathalyzer that indicates blood alcohol concentration, or |
both, the judge or magistrate may require an ignition interlock system in addition to blood and/or |
urine testing as a condition to operating a motor vehicle as provided in § 31-27-2.8. |
(e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol per |
one hundred cubic centimeters (100 cc) of blood. |
(f)(1) There is established an alcohol and drug safety unit within the division of motor |
vehicles to administer an alcohol safety action program. The program shall provide for placement |
and follow-up for persons who are required to pay the highway safety assessment. The alcohol and |
drug safety action program will be administered in conjunction with alcohol and drug programs |
licensed by the department of behavioral healthcare, developmental disabilities and hospitals. |
(2) Persons convicted under the provisions of this chapter shall be required to attend a |
special course on driving while intoxicated or under the influence of a controlled substance, and/or |
participate in an alcohol or drug treatment program, which course and programs must meet the |
standards established by the Rhode Island department of behavioral healthcare, developmental |
disabilities and hospitals; provided, however, that the court may permit a servicemember or veteran |
to complete any court-approved counseling program administered or approved by the Veterans’ |
Administration. The course shall take into consideration any language barrier that may exist as to |
any person ordered to attend, and shall provide for instruction reasonably calculated to |
communicate the purposes of the course in accordance with the requirements of the subsection. |
Any costs reasonably incurred in connection with the provision of this accommodation shall be |
borne by the person being retrained. A copy of any violation under this section shall be forwarded |
by the court to the alcohol and drug safety unit. In the event that persons convicted under the |
provisions of this chapter fail to attend and complete the above course or treatment program, as |
ordered by the judge, then the person may be brought before the court, and after a hearing as to |
why the order of the court was not followed, may be sentenced to jail for a period not exceeding |
one year. |
(3) The alcohol and drug safety action program within the division of motor vehicles shall |
be funded by general revenue appropriations. |
(g) The director of the department of health is empowered to make and file with the |
secretary of state regulations that prescribe the techniques and methods of chemical analysis of the |
person’s body fluids or breath and the qualifications and certification of individuals authorized to |
administer this testing and analysis. |
(h) Jurisdiction for misdemeanor violations of this section shall be with the district court |
for persons eighteen (18) years of age or older and to the family court for persons under the age of |
eighteen (18) years. The courts shall have full authority to impose any sentence authorized and to |
order the suspension of any license for violations of this section. Trials in superior court are not |
required to be scheduled within thirty (30) days of the arraignment date. |
(i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on |
driving while intoxicated or under the influence of a controlled substance, public community |
restitution, or jail provided for under this section can be suspended. |
(j) An order to attend a special course on driving while intoxicated, that shall be |
administered in cooperation with a college or university accredited by the state, shall include a |
provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars |
($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into |
the general fund. |
(k) For the purposes of this section, any test of a sample of blood, breath, or urine for the |
presence of alcohol that relies in whole or in part upon the principle of infrared light absorption is |
considered a chemical test. |
(l) If any provision of this section, or the application of any provision, shall for any reason |
be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of the |
section, but shall be confined in this effect to the provision or application directly involved in the |
controversy giving rise to the judgment. |
(m) For the purposes of this section, “servicemember” means a person who is presently |
serving in the armed forces of the United States, including the Coast Guard, a reserve component |
thereof, or the National Guard. “Veteran” means a person who has served in the armed forces, |
including the Coast Guard of the United States, a reserve component thereof, or the National Guard, |
and has been discharged under other than dishonorable conditions. |
SECTION 11. Sections 35-23-2 and 35-23-6 of the General Laws in Chapter 35-23 entitled |
"Rhode Island Secure Choice Retirement Savings Program Act" are hereby amended to read as |
follows: |
35-23-2. Definitions. |
As used in this chapter: |
(1) “Eligible employee” means a person age eighteen (18) years or older who is employed |
by an eligible or optional employer and has been employed for a period of not less than one hundred |
twenty (120) days. “Eligible employee” does not include: |
(i) Any employee covered under the federal Railway Labor Act (45 U.S.C. §§ 151—164 |
and 45 U.S.C §§ 181—188), or any employee engaged in interstate commerce not subject to the |
legislative powers of the state, except insofar as application of this chapter is authorized under the |
United States Constitution or laws of the United States; or |
(ii) Any employee on whose behalf an employer makes contributions to a Taft-Hartley |
pension trust fund. |
(2) “Eligible employer” means a person or entity engaged in a business, industry, |
profession, trade, or other enterprise in the state, whether for-profit or not-for-profit, excluding the |
federal government, the state, any municipal corporation, or any of the state’s units or |
instrumentalities, that has five (5) or more employees and that satisfies the requirements to establish |
or participate in a payroll deposit retirement savings arrangement. “Eligible employer” does not |
include an employer that provides a tax-qualified retirement savings program as described in § 35- |
23-10 35-23-9. |
(3) “IRA” means an individual retirement account or individual retirement annuity under |
26 U.S.C § 408 or § 408A (the federal Internal Revenue Code). |
(4) “Optional employer” means a person or entity engaged in a business, industry, |
profession, trade, or other enterprise in the state, whether for-profit or not-for-profit, excluding the |
federal government, the state, any municipal corporation, or any of the state’s units or |
instrumentalities, that has under five (5) employees. |
(5) “Participating employer” means an eligible or optional employer that provides a payroll |
deposit retirement savings arrangement provided for by this chapter for eligible employees. |
(6) “Payroll deposit retirement savings arrangement” means an arrangement by which an |
employer allows employees to remit payroll deduction contributions to the RISavers retirement |
savings program. |
(7) “RISavers retirement savings program” or “program” means a retirement savings |
program offered by the Rhode Island secure choice retirement savings program. |
(8) “State investment commission” or “commission” means the state investment |
commission established pursuant to the provisions of § 35-10-1. |
35-23-6. Powers of the office of the general treasurer. |
(a) The office of the general treasurer shall have the power and authority to do all of the |
following: |
(1) Adopt a seal and change and amend it from time to time; |
(2) Make provisions for the payment of costs of administration and operation of the |
program; |
(3) Retain and contract with a Rhode Island public retirement system, consultants, |
actuaries, counsel, auditors, and other professionals as necessary; |
(4) Procure insurance against any loss in connection with the property, assets, or activities |
of the program; |
(5) Set minimum and maximum contribution levels in accordance with contribution limits |
set for IRAs by the Internal Revenue Code; |
(6) Collaborate and cooperate with private financial institutions, service providers, and |
business, financial, trade, membership, and other organizations to the extent necessary or desirable |
for the effective and efficient design, implementation, and administration of the program and to |
maximize outreach to eligible or optional employers and eligible employees; |
(7) Collaborate with, and evaluate the role of, licensed insurance agents and financial |
advisors in assisting and providing guidance for eligible employees; |
(8) Cause expenses incurred to initiate, implement, maintain, and administer the program |
to be paid from contributions to, or investment returns or assets of, the program or arrangements |
established under the program, to the extent permitted under state and federal law; |
(9) Facilitate compliance by the retirement savings program or arrangements established |
under the program with all applicable requirements for the program under the Internal Revenue |
Code of 1986, including tax qualification requirements or any other applicable law and accounting |
requirements, including providing or arranging for assistance to program sponsors and individuals |
in complying with applicable law and tax qualification requirements in a cost-effective manner; |
(10) Carry out the duties and obligations of the Rhode Island secure choice retirement |
savings program pursuant to this title chapter and exercise any and all other powers as appropriate |
for the effectuation of the purposes, objectives, and provisions of this title pertaining to the |
program; |
(11) Enter into intergovernmental agreements with any state agency to further the |
successful implementation and operation of the program and all such agencies and instrumentalities |
shall cooperate with the office of the general treasurer. All state agencies shall cooperate as |
requested by the program in the performance of its duties under this chapter, including, unless |
otherwise prohibited, the sharing of relevant data as the parties shall mutually agree; |
(12) Make and enter into contracts, agreements, memoranda of understanding, |
arrangements, partnerships, or other arrangements to collaborate, cooperate, coordinate, contract, |
or combine resources, investments, or administrative functions with other governmental entities, |
including any states or their agencies or instrumentalities that maintain or are establishing |
retirement savings programs compatible with the program, including collective, common, or pooled |
investments with other funds of other states’ programs with which the assets of the program and |
trust are permitted by law to be collectively invested, to the extent necessary or desirable for the |
effective and efficient design, administration, and implementation of the program consistent with |
the purposes set forth in this title chapter, including the purpose of achieving economies of scale |
and other efficiencies designed to minimize costs for the program and its participants; and |
(13) Develop and implement an investment policy that defines the program’s investment |
objectives, consistent with the objectives of the program, and that provides for policies and |
procedures consistent with those investment objectives. The office of the general treasurer shall |
designate appropriate default investments that include a mix of asset classes, such as target date |
and balanced funds. The office of the general treasurer shall seek to minimize participant fees and |
expenses of investment and administration. The office of the general treasurer shall strive to design |
and implement investment options available to holders of accounts established as part of the |
program and other program features that are intended to achieve maximum possible income |
replacement balanced with an appropriate level of risk in an IRA-based environment consistent |
with the investment objectives under the policy. The investment options may encompass a range |
of risk and return opportunities and allow for a rate of return commensurate with an appropriate |
level of risk in view of the investment objectives under the policy. The menu of investment options |
shall be determined taking into account the nature and objectives of the program, the desirability |
(based on behavioral research findings) of limiting investment choices under the program to a |
reasonable number, and the extensive investment choices available to participants in the event that |
they roll over to an IRA outside the program. |
(b) The office of the general treasurer shall adopt regulations it deems necessary to |
implement this chapter consistent with the Internal Revenue Code and regulations issued pursuant |
to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt |
benefits, or both. |
SECTION 12. Section 37-2-82 of the General Laws in Chapter 37-2 entitled "State |
Purchases" is hereby amended to read as follows: |
37-2-82. Utilization of North American Contractor Certification companies. |
[Effective January 30, 2025.] |
(a) All public works renovation projects that exceed an aggregate amount of one million |
dollars ($1,000,000), and all new construction projects that exceed an aggregate amount of five |
million dollars ($5,000,000), that include glazing work, shall have glazing work performed by |
North American Contractor Certification (“NACC”) certified companies and initially, on and after |
July 1, 2024, shall have one architectural glass and metal technician (“AGMT”) certified worker |
employed by the company or contractor. On and after January 1, 2025, each crew performing work |
that meets the criteria of this section shall have one AGMT certified worker on site. On and after |
January 1, 2026, for each crew performing work that meets the criteria of this section, twenty-five |
percent (25%) of that crew shall be comprised of AGMT certified individuals on site. On and after |
January 1, 2027, for each crew performing work that meets the criteria of the section, fifty percent |
(50%) of that crew shall be comprised of AGMT certified individuals on site. |
(b) As used herein, the term “glazing work” includes, but is not limited to, replacement and |
installation of windows, curtain walls, interior glass partitions, glass handrails, aluminum |
entrances, skylights, store fronts, and general installation of architectural glass and metal. |
(c)(1) The department of labor and training shall enforce the provisions of this chapter |
section. If the director, or designee, determines that a violation of these provisions has occurred, |
the director, or designee, shall order a hearing at a time and place to be specified, and shall give |
notice, together with a copy of the complaint or the purpose thereof, or a statement of the facts |
disclosed upon investigation, which notice shall be served personally or by mail on any person, |
business, corporation, or entity of any kind affected thereby. |
(2) The person, business, corporation, or entity shall have an opportunity to be heard in |
respect to the matters complained of at the time and place specified in the notice. |
(3) The hearing shall be conducted by the director, or designee. The hearing officer in the |
hearing shall be deemed to have jurisdiction and dispositive authority to hear and adjudicate the |
matter, and shall have the right to issue subpoenas, administer oaths, and examine witnesses. The |
enforcement of a subpoena issued under this section shall be regulated by civil practice law and the |
rules of civil procedure. The hearing shall be expeditiously conducted and upon such hearing the |
hearing officer shall determine the issues raised and shall make a determination and enter an order |
within thirty (30) days of the close of the hearing, and forthwith serve a copy of the order, with a |
notice of the filing, upon the parties to the proceeding, personally or by mail. |
(4) The order shall dismiss the complaint or determine that a violation of the provisions of |
this chapter section occurred. The order shall represent a final action by the department of labor |
and training. |
(d) Any contractor or subcontractor determined to have violated the provisions of this |
chapter section shall be subject to a civil penalty of not less than one thousand five hundred dollars |
($1,500) and not greater than three thousand dollars ($3,000), and shall be subject to the revocation |
of any relevant professional or occupational license, if the violation is deemed to have been |
intentional or egregious. |
(e) This section is applicable to all public works projects that fit the other criteria as |
provided in this section. |
SECTION 13. Section 39-26.1-10 of the General Laws in Chapter 39-26.1 entitled "Long- |
Term Contracting Standard for Renewable Energy" is hereby amended to read as follows: |
39-26.1-10. Energy storage programs. |
(a) The general assembly finds that while the commission develops new energy market |
rules for the use of energy storage systems, it is in the public interest to support the deployment of |
the following energy storage capacity: |
(1) Ninety megawatts (90 MW) by December 31, 2026; |
(2) One hundred ninety-five megawatts (195 MW) by December 31, 2028; |
(3) Six hundred megawatts (600 MW) by December 31, 2033; and |
(4) Subsequent targets may be proposed and set pursuant to chapter 31 33 of title 39. |
(b) The Rhode Island infrastructure bank, in consultation with the office of energy |
resources, shall develop one or more programs and shall distribute funds made available pursuant |
to this chapter to meet the goals established in subsection (a) of this section. |
(c) The Rhode Island infrastructure bank may take in funds from the following sources in |
support of this program: |
(1) Money appropriated in the state budget to the fund or otherwise made available to the |
infrastructure bank; |
(2) Money made available to the fund through federal programs or private contributions; |
(3) Application or other fees paid to the infrastructure bank to process applications; and |
(4) Any other money made available to the bank. |
(d) The program(s) shall establish supplemental funding efforts to support the deployment |
of energy storage systems for: |
(1) Residential classes of electric customers; |
(2) Low-income residential classes of electric customers; |
(3) Commercial and residential classes of electric customers; and |
(4) Energy storage systems connected to the distribution or transmission system in front of |
the meter and not associated with a customer’s electric load. |
(e) The program shall provide for grants, no-interest loans, and low-interest loans to |
support: |
(1) The co-locate energy storage systems with distributed energy resources; or |
(2) Energy storage systems that would allow for the interconnection of distributed energy |
resources without distribution system upgrade costs. |
(f) Any local distribution company that serves greater than one hundred thousand (100,000) |
customers shall not be eligible for the financial support described in this section. |
(g) The infrastructure bank shall have the authority to adopt, amend, and implement such |
rules and regulations as may be necessary and desirable to effectuate the purposes of this section. |
SECTION 14. Section 44-20.1-3 of the General Laws in Chapter 44-20.1 entitled "Delivery |
Sales of Cigarettes" is hereby amended to read as follows: |
44-20.1-3. Age verification requirements. |
(a) No person, including but not limited to online retailers, shall mail, ship, or otherwise |
deliver cigarettes, other tobacco products, or electronic nicotine-delivery systems in connection |
with a delivery sale unless such person prior to the first delivery sale to such purchaser: |
(1) Obtains from the prospective purchaser a certification that includes: |
(i) A reliable confirmation that the purchaser is at least the legal minimum sales age; and |
(ii) A statement signed by the prospective purchaser in writing that certifies the prospective |
purchaser’s address and that the purchaser is at least twenty-one (21) years of age. Such statement |
shall also confirm: |
(A) That the prospective purchaser understands that signing another person’s name to such |
certification is illegal; |
(B) That the sale of cigarettes to individuals under the legal minimum sales age is illegal; |
and |
(C) [Deleted by P.L. 2024, ch. 117, art. 6, § 19.] |
(D) That the prospective consumer purchaser wants to receive mailings from a tobacco |
company; |
(2) Makes a good faith effort to verify the information contained in the certification |
provided by the prospective consumer purchaser pursuant to subsection (a)(1) of this section |
against a commercially available database, or obtains a photocopy or other image of the valid, |
government-issued identification stating the date of birth or age of the individual placing the order; |
(3) Provides to the prospective purchaser, via e-mail or other means, a notice that meets |
the requirements of § 44-20.1-4; and |
(4) In the case of an order for cigarettes and/or other tobacco products, and/or electronic |
nicotine-delivery system products pursuant to an advertisement on the internet, receives payment |
for the delivery sale from the prospective purchaser by a credit or debit card that has been issued |
in such purchaser’s name or by check. |
(b) Persons accepting purchase orders for delivery sales may request that the prospective |
purchasers provide their e-mail addresses. |
(c) The division of taxation, in consultation with the department of health, may promulgate |
rules and regulations pertaining to this section. |
SECTION 15. Section 45-21.2-9 of the General Laws in Chapter 45-21.2 entitled "Optional |
Retirement for Members of Police Force and Firefighters" is hereby amended to read as follows: |
45-21.2-9. Retirement for accidental disability. |
(a) Any member in active service, regardless of length of service, is entitled to an accidental |
disability retirement allowance. Application for the allowance is made by the member or on the |
member’s behalf, stating that the member is physically or mentally incapacitated for further service |
as the result of an injury or illness sustained while in the performance of duty and certifying to the |
time, place, and conditions of the duty performed by the member that resulted in the alleged |
disability and that the alleged disability was not the result of the willful negligence or misconduct |
on the part of the member, and was not the result of age or length of service. The application shall |
be made within eighteen (18) months of the alleged accident from which the injury has resulted in |
the member’s present disability and shall be accompanied by an accident report and a physician’s |
report certifying to the disability. If the member was able to return to his or her employment and |
subsequently reinjures or aggravates the same injury or illness, the member shall make another |
application within eighteen (18) months of the reinjury or aggravation that shall be accompanied |
by a physician’s report certifying to the reinjury or aggravation causing the disability. If a medical |
examination made by three (3) physicians engaged by the retirement board, and other investigations |
as the board may make, confirms the statements made by the member, the board may grant the |
member an accidental disability retirement allowance. |
(b) For the purposes of subsection (a), “aggravation” shall mean an intervening work- |
related trauma that independently contributes to a member’s original injury or illness that amounts |
to more than the natural progression of the preexisting disease or condition and is not the result of |
age or length of service. The intervening independent trauma causing the aggravation must be an |
identifiable event or series of work-related events that are the proximate cause of the member’s |
present condition of disability. |
(c) “Occupational cancer,” as used in this section, means a cancer arising out of |
employment as a firefighter, due to injury or illness due to exposures to smoke, fumes, or |
carcinogenic, poisonous, toxic, or chemical substances while in the performance of active duty in |
the fire department. |
(d) For purposes of subsection (a), “reinjury” shall mean a recurrence of the original work- |
related injury or illness from a specific ascertainable event. The specific event must be the |
proximate cause of the member’s present condition of disability. |
(e) Any firefighter, including one employed by the state, or a municipal firefighter |
employed by a municipality that participates in the optional retirement for police officers and |
firefighters as provided in this chapter, who is unable to perform his or her duties in the fire |
department by reason of a disabling occupational cancer (as defined in §§ 45-19.1-2 and 45-19.1- |
4) that develops or manifests itself during a period while the firefighter is in the service of the |
department, and any retired member of the fire force of any city or town who develops occupational |
cancer (as defined in §§ 45-19.1-2 and 45-19.1-4), is entitled to receive an occupational cancer |
disability and he or she is entitled to all of the benefits provided for in this chapter, chapters 19, |
19.1, and 21 of this title, and chapter 10 of title 36 if the firefighter is employed by the state. |
(f) Any police officer or firefighter as defined in §§ 45-19-1(b) and (c) who is unable to |
perform their duties by reason of post-traumatic stress injury/PTSD as set forth in § 45-19-1(a)(2) |
is entitled to receive an accidental disability retirement allowance and the police officer or |
firefighter is entitled to all of the benefits provided for in this chapter (including the presumption |
set forth in subsection (a)(2) of this section § 45-19-1(a)(2)), chapters 19, 19.1, and 21 of this title, |
and chapter 10 of title 36 if the firefighter is employed by the state. |
(g) In the event that any party is aggrieved by the determination of the retirement board |
pursuant to § 45-19-1, for an injury or illness occurring on or after July 1, 2011, the party may |
submit an appeal to the Rhode Island workers’ compensation court. The appellant shall file a notice |
of appeal with the retirement board and with the workers’ compensation court within twenty (20) |
days of the entry of the retirement board’s decision and shall serve a copy of the notice of appeal |
upon the opposing party. |
(h) Within twenty (20) days of the receipt of the notice of appeal, the retirement board shall |
transmit the entire record of proceedings before it, together with its order, to the workers’ |
compensation court. |
(i) In the event that a party files a notice of appeal to the workers’ compensation court, the |
order of the retirement board shall be stayed pending further action by the court pursuant to the |
provisions of § 28-35-20. |
(j) Upon receipt of the notice of appeal, the court shall assign the matter to a judge and |
shall issue a notice at the time advising the parties of the judge to whom the case has been assigned |
and the date for pretrial conference in accordance with § 28-35-20. |
(k) All proceedings filed with the workers’ compensation court pursuant to this section |
shall be de novo and shall be subject to the provisions of chapters 29 — 38 of title 28 for all case |
management procedures and dispute resolution processes, as provided under the rules of the |
workers’ compensation court. The workers’ compensation court shall enter a pretrial order in |
accordance with § 28-35-20(c) that grants or denies, in whole or in part, the relief sought by the |
petitioner. The pretrial order shall be effective upon entry and any payments ordered by it shall be |
paid within fourteen (14) days of the entry of the order. Provided, however, that in the event that |
the retirement board files a claim for trial of the pretrial order entered by the court, the order of the |
court shall be stayed until a final order or decree is entered by the court. If after trial and the entry |
of a final decree the court sustains the findings and orders entered in the pretrial order, the |
retirement board shall reimburse the municipality all benefits paid by it from the time the pretrial |
order was entered until the time the final decree is entered by the court. Where the matter has been |
heard and decided by the workers’ compensation court, the court shall retain jurisdiction to review |
any prior orders or decrees entered by it. The petitions to review shall be filed directly with the |
workers’ compensation court and shall be subject to the case management and dispute resolution |
procedures set forth in chapters 29 — 38 of title 28 (“Labor and Labor Relations”). |
(l) If the court determines that a member qualifies for accidental disability retirement, the |
member shall receive a retirement allowance equal to sixty-six and two-thirds percent (66⅔%) of |
the rate of the member’s compensation at the date of the member’s retirement, subject to the |
provisions of § 45-21-31. |
(m) If the court determines that a member does not qualify for accidental disability |
retirement, and after all appeals have been exhausted by the member (i.e., appeals to the workers’ |
compensation appellate division and the Rhode Island supreme court), said member shall have |
twenty (20) days within which to either: |
(1) File an application for ordinary disability retirement pursuant to § 45-21.2-7; however, |
if the member does not have the requisite time on the job to file such application, then the |
participating municipality shall continue to consider the member injured on duty pursuant to § 45- |
19-1 until such time that the member has the necessary time on the job to file the application for an |
ordinary disability retirement; or |
(2) File an application for a service retirement pursuant to § 45-21.2-5; or |
(3) Return to duty provided the member has received medical clearance to perform those |
duties. |
Nothing in this subsection shall prohibit the member from making an agreement with the |
member’s participating municipality as to what options and benefits the member may be entitled |
to in lieu of the options and benefits set forth in this subsection. In addition, nothing in this |
subsection shall prohibit the member’s bargaining unit and participating municipality from entering |
into a collective bargaining agreement that addresses the issues in this subsection. |
ARTICLE III--EFFECTIVE DATE |
SECTION 1. Article I of this act shall take effect on December 31, 2025, and Article II of |
this act shall take effect upon passage. |
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LC002933/SUB A |
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