law25427

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.

(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;

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.

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.

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.

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.

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.

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.

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.

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.

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.

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;

(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;

(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

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.

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.

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

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 this title27is 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 this title27;

(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 § 27-4.5-16section, 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 §§ 27-4.5-16subsections (a)(1) and

27-4.5-16(a)(4) of this section 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 § 27-4.5-16subsection (b) of this section.

(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 § 27-4.5-16subsection (b)(3) of this section.

(7) A privilege established under the law of any state or jurisdiction that is substantially

similar to the privilege established under § 27-4.5-16subsection (b) of this section shall be

available and enforced in any proceeding in, and in any court of, this state.

(8) In § 27-4.5-16this section “regulatory agency,” “law enforcement agency” and the

“NAIC” include, but are not limited to, their employees, agents, consultants, and contractors.

information specified in subsection §§ 27-4.5-16(a)(1) of this section 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.

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.

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;

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;

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

(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;

(45) “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.;

(56) “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;

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

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

(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.

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.

(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 herthe general

treasurer 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.

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 (6) 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 herthe

director’s 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;

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 subdivisionsubsection (a)(1)indicated

such an intent; and

(9) Any regulatory analysis prepared under § 42-35-2.9.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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;

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

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.

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.]

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.]