2008 -- H 7906 SUBSTITUTE A

=======

LC01091/SUB A

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2008

____________

A N A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     Introduced By: Representative Gordon D. Fox

     Date Introduced: February 26, 2008

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Sections 11-41.1-9 and 11-41.1-14 of the General Laws in Chapter 11-41.1

1-2

entitled "Grocery and Laundry Carts, Milk Cases, Egg Baskets, and Bakery Containers" are

1-3

hereby amended to read as follows:

1-4

     11-41.1-9. Unlawful removal of shopping carts, dairy cases, dispenser cases, egg

1-5

baskets, poultry boxes, bakery containers, and plastic bulk a shopping cart or dairy case or

1-6

dispenser case or merchandise containers. --It is a violation of this chapter for any person not

1-7

in lawful possession of a shopping cart or dairy case or dispenser case or egg basket or poultry

1-8

box or bakery container, or plastic bulk merchandise container to remove an egg basket, poultry

1-9

box, or plastic bulk merchandise container from the premises, parking area or any other area of

1-10

any processor, distributor, retailer, or food service establishment.  

1-11

     11-41.1-14. Purchase of shopping carts, dairy cases, dispenser cases, egg baskets,

1-12

bakery containers or plastic bulk merchandise containers for recycling, shredding, or

1-13

destruction - Verification of seller's identity - Proof of ownership record. – (a)  Any person or

1-14

entity purchasing shopping carts, dairy cases, dispenser cases, egg baskets, bakery containers or

1-15

plastic bulk merchandise containers, who is in the business of recycling, shredding, or destruction

1-16

of shopping carts, dairy cases, dispenser cases, egg baskets, bakery containers or plastic bulk

1-17

merchandise containers shall obtain a proof of ownership record from a person selling five (5) or

1-18

more shopping carts, dairy cases, dispenser cases, egg baskets, bakery containers or plastic bulk

1-19

merchandise containers that shows that the person selling the carts, cases, baskets, or containers

2-1

has lawful possession or ownership of the carts, cases, baskets, or containers, and shall also verify

2-2

the seller's identity by a driver's license or other government-issued photo identification. The

2-3

proof of ownership record shall include all of the following information:  

2-4

     (1) The name, address, telephone number, and signature of the seller or the seller's

2-5

authorized representative.  

2-6

     (2) The name and address of the buyer or consignee if not sold.  

2-7

     (3) A description of the product including number of units.  

2-8

     (4) The date of the transaction.  

2-9

     (b) The information required to be collected by this section shall be kept for one year

2-10

from the date of purchase or delivery, whichever is later.  

2-11

      SECTION 2. Section 11-47-9 of the General Laws in Chapter 11-47 entitled

2-12

"Weapons" is hereby amended to read as follows:

2-13

     11-47-9. Persons exempt from restrictions. -- The provisions of section 11-47-8 shall

2-14

not apply to sheriffs, deputy sheriffs, the superintendent and members of the state police,

2-15

members of the Rhode Island airport police department, members of the Rhode Island state

2-16

marshals, Rhode Island state fire marshal, chief, deputy state fire marshals, deputy state fire

2-17

marshals assigned to the bomb squad, and those assigned to the investigation unit, correctional

2-18

officers, all within the department of corrections, members of the city or town police force,

2-19

capitol police investigators of the department of attorney general appointed pursuant to

2-20

section 42-9-8.1, the witness protection coordinator for the witness protection review board as set

2-21

forth in chapter 30 of title 12 and subject to the minimum qualifications of section 42-9-8.1, the

2-22

director, assistant director, and other inspectors and agents at the Rhode Island state fugitive task

2-23

force appointed pursuant to section 12-6-7.2, railroad police while traveling to and from official

2-24

assignments or while on assignments, conservation officers, or other duly appointed law

2-25

enforcement officers, nor to members of the Army, Navy, Air Force, and Marine Corps of the

2-26

United States, the National Guard, or organized reserves, when on duty, nor to members of

2-27

organizations by law authorized to purchase or receive firearms from the United States or this

2-28

state, provided these members are at or going to or from their places of assembly or target

2-29

practice, nor to officers or employees of the United States authorized by law to carry a concealed

2-30

firearm, nor to any civilian guard or criminal investigator carrying sidearms or a concealed

2-31

firearm in the performance of his or her official duties under the authority of the commanding

2-32

officer of the military establishment in the state of Rhode Island where he or she is employed by

2-33

the United States, nor to any civilian guard carrying sidearms or a concealed firearm in the

2-34

performance of his or her official duties under the authority of the adjutant general where he or

3-1

she is employed guarding a national guard facility, provided, that the commanding officer of the

3-2

military establishment shall have on file with the attorney general of this state a list of the names

3-3

and addresses of all civilian guards and criminal investigators so authorized, nor to duly

3-4

authorized military organizations when on duty, nor to members when at or going to or from their

3-5

customary places of assembly,  nor to any individual employed in the capacity of warden,

3-6

associate warden, major, captain, lieutenant, sergeant, correctional officer or investigator at any

3-7

project owned or operated by a municipal detention facility corporation, including the Donald W.

3-8

Wyatt Detention Facility, nor to the regular and/or ordinary transportation of pistols as

3-9

merchandise, nor to any person while carrying a pistol unloaded and securely wrapped from the

3-10

place of purchase to his or her home or place of business, or in moving goods from one place of

3-11

abode or business to another. Persons exempted by the provisions of this section from the

3-12

provisions of section 11-47-8 shall have the right to carry concealed firearms everywhere within

3-13

this state; provided, that this shall not be construed as giving the right to carry concealed firearms

3-14

to a person transporting firearms as merchandise or as household or business goods.  

3-15

      SECTION 3. Section 14-1-6 of the General Laws in Chapter 14-1 entitled

3-16

"Proceedings in Family Court" is hereby amended to read as follows:

3-17

     14-1-6. Retention of jurisdiction. -- (a)  When the court shall have obtained jurisdiction

3-18

over any child prior to the child having attained the age of eighteen (18)  years by the filing of a

3-19

petition alleging that the child is wayward or delinquent pursuant to section 14-1-5, the child

3-20

shall, except as specifically provided in this chapter, continue under the jurisdiction of the court

3-21

until he or she becomes nineteen (19) years of age, unless discharged prior to turning nineteen

3-22

(19). When the court shall have obtained jurisdiction over any child prior to the child's eighteenth

3-23

(18th) birthday by the filing of a petition alleging that the child is dependent, neglected and abused

3-24

pursuant to sections 14-1-5 and 40-11-7, the child shall, except as specifically provided in this

3-25

chapter, continue under the jurisdiction of the court until he or she becomes eighteen (18) years of

3-26

age; provided, that prior to an order of discharge or emancipation being entered, the court shall

3-27

require the department of children, youth, and families to provide a description of the transition

3-28

services afforded the child in placement or a detailed explanation as to the reason those services

3-29

were not offered; provided further that any youth who comes within the jurisdiction of the court

3-30

by the filing of a wayward or delinquent petition based upon an offense which was committed

3-31

prior to July 1, 2007, including youth who are adjudicated and committed to the Rhode Island

3-32

Training School and who are placed in a temporary community placement as authorized by the

3-33

family court, may continue under the jurisdiction of the court until he or she turns twenty-one

3-34

(21) years of age.  

4-1

     (b)  In any case where the court shall not have acquired jurisdiction over any person prior

4-2

to the person's eighteenth (18th) birthday by the filing of a petition alleging that the person had

4-3

committed an offense, but a petition alleging that the person had committed an offense which

4-4

would be punishable as a felony if committed by an adult has been filed before that person attains

4-5

the age of nineteen (19) years of age, that person shall, except as specifically provided in this

4-6

chapter, be subject to the jurisdiction of the court until he or she becomes nineteen (19) years of

4-7

age, unless discharged prior to turning nineteen (19).  

4-8

     (c)  In any case where the court shall not have acquired jurisdiction over any person prior

4-9

to the person attaining the age of nineteen (19) years by the filing of a petition alleging that the

4-10

person had committed an offense prior to the person attaining the age of eighteen (18) years

4-11

which would be punishable as a felony if committed by an adult, that person shall be referred to

4-12

the court which would have had jurisdiction over the offense if it had been committed by an adult.

4-13

The court shall have jurisdiction to try that person for the offense committed prior to the person

4-14

attaining the age of eighteen (18) years and, upon conviction, may impose a sentence not

4-15

exceeding the maximum penalty provided for the conviction of that offense.  

4-16

     (d)  In any case where the court has certified and adjudicated a child in accordance with

4-17

the provisions of sections 14-1-7.2 and 14-1-7.3, the jurisdiction of the court shall encompass the

4-18

power and authority to sentence the child to a period in excess of the age of nineteen (19) years.

4-19

However, in no case shall the sentence be in excess of the maximum penalty provided by statute

4-20

for the conviction of the offense.  

4-21

     (e)  Nothing in this section shall be construed to affect the jurisdiction of other courts

4-22

over offenses committed by any person after he or she reaches the age of eighteen (18) years.  

4-23

      SECTION 4. Sections 27-4-4, 27-4-24.4 and 27-4-24.5 of the General Laws in

4-24

Chapter 27-4 entitled "Life Insurance Policies and Reserves" are hereby amended to read as

4-25

follows:

4-26

     27-4-4. Penalty for unlawful discrimination. -- Any life insurance company, and any

4-27

officer or agent of any life insurance company, violating any of the provisions of sections 27-4-

4-28

1 and 27-4-3 shall be subject to penalties determined in accordance with section 42-14-1 42-14-

4-29

16.  

4-30

     27-4-24.4. Hearing on decisions of commissioner. -- Any organization or insurer

4-31

aggrieved by any order or decision of the commissioner, or by any rule or regulation promulgated

4-32

and adopted by the commissioner, may, within thirty (30) days after notice of the order or

4-33

decision to the organization or insurer, make written request to the commissioner for a hearing on

4-34

the order or decision.  The commissioner shall provide a hearing and issue a decision in

5-1

accordance with the Administrative Procedures Act, chapter 42-35-1 42-35.  

5-2

     27-4-24.5. Judicial review of orders and decisions. -- Any final order or decision of the

5-3

commissioner, including any order made after a hearing under the provisions of section 27-4-

5-4

24.3 or 27-4-24.4, shall be subject to review in accordance with the Administrative Procedures

5-5

Act, chapter 42-35-1 42-35.  

5-6

      SECTION 5. Section 27-5-3.7 of the General Laws in Chapter 27-5 entitled "Fire

5-7

Insurance Policies and Reserves" is hereby amended to read as follows:

5-8

     27-5-3.7. Hurricane deductibles, triggers and policyholder notice. -- (a)  The

5-9

provisions of this section shall be applicable to policies issuing or renewing on or after July 1,

5-10

2008.  

5-11

     (b)  In all instances where an insurance company licensed to do business in this state

5-12

offers or includes any deductible and/or mitigation measure related to such deductible for any

5-13

type of personal lines residential property insurance on dwelling houses, the insurance company

5-14

shall provide prominent and clear notice to insureds, that shall be included in the policy issuance

5-15

or renewal package and shall fully disclose all details pertaining to any such deductible and/or

5-16

mitigation measure.  

5-17

     (c)  The insurer may apply a deductible specific to windstorm coverage where:  

5-18

     (i) The deductible is specifically approved by the director and shall not exceed five

5-19

percent (5%) of the insured value.  

5-20

     (ii) The deductible shall be applicable to losses due to a hurricane during the period

5-21

commencing with the issuance of a hurricane warning bulletin for any part of the state by the

5-22

National Hurricane Center and concluding twenty-four (24) hours after the termination of the last

5-23

hurricane warning bulletin for any part of the state.  

5-24

     (iii) The deductible, whether it is a flat dollar deductible or a percentage deductible shall

5-25

be presented by at least two (2) examples that illustrate the application of the deductible to the

5-26

insured. Nothing herein shall prohibit the insurer from providing any additional information to the

5-27

insured to assist in the insured's understanding of the deductible to be applied to the insured's

5-28

policy.  

5-29

     (iv) The deductible set forth above shall not be applied to any insured, if the insured has

5-30

installed approved mitigation measures to protect against windstorm damage and the insurer has

5-31

either inspected the property or the insured has submitted satisfactory proof of installation of the

5-32

approved mitigation measures. The insurance commissioner, in consultation with the state

5-33

building code commissioner, shall adopt and may amend or revise a list of mitigation measures,

5-34

based so far as reasonably feasible on national standards for such measures and practices in other

6-1

comparable states. The list of mitigation measures adopted by the insurance commissioner shall

6-2

be considered approved mitigation measures for purposes of this subdivision.  

6-3

     (d)  Premium credits shall be applied to policies with deductibles as set forth in

6-4

subsection 27-5-3.7(c).  

6-5

     (e)  An insurer may require mitigation measures to protect against windstorm damage

6-6

only after specific approval of the substance of such mitigation measures by the director;  

6-7

     (i) Mitigation measures to be taken by an insured are clearly explained, including a

6-8

complete illustration of the dollar impact upon the premiums to be charged to insureds if the

6-9

requested mitigation activities are undertaken;  

6-10

     (ii) No mandatory deductible for windstorm damage shall be included in the policy;  

6-11

     (iii) An insurer shall write the requested coverage at the premium rate that includes the

6-12

premium credit to be realized with the completion of the mitigation efforts;  

6-13

     (iv) The insurer shall affirmatively state the length of time during which discount given

6-14

for the mitigation efforts will apply; and  

6-15

     (v) No insurer shall subsequently non-renew an insured who has taken the mitigation

6-16

steps requested by the insurer for reasons of the insurers exposure to catastrophe loss, unless for

6-17

non-payment of premium, fraud, breach by the insured of a provision of the policy, reversal or a

6-18

lack of maintenance of the mitigation steps, or insurer solvency concerns or adverse loss history.  

6-19

     (f)  Penalties for failure to comply with the provisions of this section shall be

6-20

administered by the director in accordance with the provisions of section 42-14-16.  

6-21

     (g)  The department of business regulation shall have authority to adopt such rules,

6-22

including emergency rules, as may be necessary or desirable to effectuate the purposes of this

6-23

section.  

6-24

      SECTION 6. Section 27-10.2-2 of the General Laws in Chapter 27-10.2 entitled

6-25

"Motor Vehicle Body Replacement Parts" is hereby amended to read as follows:

6-26

     27-10.2-2. Aftermarket parts - Time limit prohibition. [Effective January 1, 2008.] --

6-27

(a)  Whenever an insurance company, in adjusting a first party claim for motor vehicle physical

6-28

damage, intends to specify the use of aftermarket parts, it shall notify the insured in writing. Any

6-29

auto body repair shop conducting business in the state of Rhode Island shall not use non-original

6-30

equipment manufactured (OEM) parts, also referred to as aftermarket parts, in the repair of any

6-31

person's automobile, without that person giving the repairer his or her express written consent.  

6-32

     (b)  No insurance company may require the use of aftermarket parts when negotiating

6-33

repairs with any repairer unless the repairer has written consent from the vehicle owner to install

6-34

aftermarket parts. The provisions of this section shall apply only to automobiles which are less

7-1

than thirty (30) months beyond the date of manufacture.  

7-2

     (c)  For any automobile which is less than thirty (30) months beyond the date of

7-3

manufacturer manufacture, the insurer and the auto body repairs shop must provide a written

7-4

notice to the vehicle owner that: (i) he or she may require the insurer to pay for and the auto body

7-5

shop to install "original equipment manufacturer parts " or "OEM parts" in the repair of a motor

7-6

vehicle body replacement; or (ii) he or she may require the insurer to pay for and the auto body

7-7

shop to install "non-original equipment manufacturer parts" (non-"OEM parts") in the repair of a

7-8

motor vehicle body replacement. To comply with this provision, written notice may be provided

7-9

on the appraisal written on behalf of the insurer and the estimate prepared by the auto body repair

7-10

shop.  

7-11

      SECTION 7. Section 31-47.3-3 of the General Laws in Chapter 31-47.3 entitled "The

7-12

Diesel Emissions Reduction Act" is hereby amended to read as follows:

7-13

     31-47.3-3. Reducing emissions from school buses. -- (a)  Purpose. To reduce health

7-14

risks from diesel particulate matter (DPM) to Rhode Island school children by significantly

7-15

reducing tailpipe emissions from school buses, and preventing engine emissions from entering the

7-16

passenger cabin of the buses.  

7-17

     (b)  Requirements for Rhode Island school buses:  

7-18

     (i) By September 1, 2010, no full-size school bus with an engine model year 1993 or

7-19

older may be used to transport school children in Rhode Island; and,   

7-20

     (ii) Providing there is sufficient federal or state monies, by September 1, 2010, all full-

7-21

sized school buses transporting children in Rhode Island must be retrofitted with a closed

7-22

crankcase ventilation system and either: (A) be equipped with a level 1, level 2, or level 3 device

7-23

verified by the US Environmental Protection Agency or the California Air Resources Board; or

7-24

(B) be equipped with an engine of model year 2007 or newer; or (C) achieve the same or higher

7-25

diesel PM reductions through the use of an alternative fuel such as compressed natural gas

7-26

verified by CARB/EPA to reduce DPM emissions at a level equivalent to or higher than

7-27

subsection (B) above.  

7-28

     (c)  Financial assistance to defray costs of pollution reductions called for in (b)(ii):  

7-29

     (i) DEM shall work with the Rhode Island department of transportation or other

7-30

authorized transit agencies to maximize the allocation of federal congestion mitigation and air

7-31

quality (CMAQ) money for Rhode Island for diesel emissions reductions in federal FY 2008 and

7-32

thereafter until the retrofit goals in this act are met. The (CMAQ) program is jointly administered

7-33

by the federal highway administration (FHWA) and the federal transit administration (FTA), and

7-34

was reauthorized by congress in 2005 under the safe, accountable, flexible, and efficient

8-1

transportation equity act: A legacy for users (SAFETEA-LU). The (SAFETEA-LU) requires

8-2

states and MPOs to give priority in distributing CMAQ funds to diesel engine retrofits, and other

8-3

cost-effective emission reduction and congestion mitigation activities that benefit air quality.  

8-4

     (ii) Drawing upon any available federal or state monies, the director shall establish and

8-5

implement a system of providing incentives consistent with this section to municipalities,

8-6

vendors, or school bus owners for the purchase and installation of any CARB/EPA-verified

8-7

emission control retrofit device together with the purchase and installation of closed crankcase

8-8

ventilation system (CCV) retrofit device. In 2007, the per-unit incentive shall not exceed one

8-9

thousand two hundred fifty dollars ($1,250) for a level 1 device plus a CCV, or two thousand five

8-10

hundred dollars ($2,500) for a level 2 device plus a CCV, or for model years 2003-2006 five

8-11

thousand dollars ($5,000) for a level 3 device plus a CCV. Incentive levels may be reevaluated

8-12

annually, with the goal of maintaining competition in the market for retrofit devices. To the

8-13

extent practicable, in kind services will also be utilized to offset some of the costs. Incentive

8-14

recipients must also certify that newly purchased or retrofitted buses with a level 3 technology

8-15

will operate in the state of Rhode Island for a minimum of four (4) years.  

8-16

     (d)  Priority community provision:  

8-17

     (i) When penalty funds, state SEP funds, federal funds, or funds from other state or non-

8-18

state sources become available, these should first be allocated toward further offsetting costs of

8-19

achieving "best available" emissions control in "priority communities";  

8-20

     (ii) The "best available" standard is attained by all new buses (MY2007 and newer) and

8-21

by diesel buses model year 2003 to 2006, inclusive that has been retrofitted with level 3-verified

8-22

diesel particulate filters and closed crankcase ventilation systems, by diesel buses model year

8-23

1994 to 2002, inclusive that has been retrofitted with at least level 2-verified diesel particulate

8-24

filters and closed crankcase ventilation systems or could be achieved with a natural gas bus that

8-25

achieves the same or better standards of cleanliness as a 2007 diesel bus standard; and  

8-26

     (iii) "Priority communities" (to be identified by the Rhode Island DEM) are Rhode Island

8-27

communities that have high levels of ambient air pollution and high incidence of childhood

8-28

respiratory impacts.  

8-29

     (e) To achieve the pressing public health and environmental goals of this act, DEM shall

8-30

identify opportunities to achieve maximize PM reductions from diesel powered heavy duty

8-31

vehicle or equipment that is owned by, operated by, or on behalf of, or leased by, or operating

8-32

under a contact to a state agency or state or regional public authority (except vehicles that are

8-33

specifically equipped for emergency response) and diesel powered waste collection and recycling

8-34

vehicles that are owned, leased, or contracted to perform the removal or transfer or municipal,

9-1

commercial or residential waste, or recycling services. No later than January 1, 2008, DEM shall

9-2

present a report to the general assembly, governor, house committee on environment and natural

9-3

resources, and the senate committee on environment and agriculture on such opportunities to

9-4

maximum PM reductions from the aforementioned fleets including legislative changes, regulatory

9-5

changes, funding sources, contract requirements, procurement requirements, and other

9-6

mechanisms that will bring about maximum PM reductions from these two priority fleets. This

9-7

report shall explore funding sources beyond CMAQ, including but not limited to Diesel

9-8

Reductions Emissions Reduction Act (DERA) funds under the Federal Energy Act.   

9-9

     (f) Severability. If any clause, sentence, paragraph, section or part of this act shall be

9-10

adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further

9-11

judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall

9-12

be confined in its operation to the clause, sentence, paragraph, section or part of this act directly

9-13

involved in the controversy in which the judgment shall have been rendered.  

9-14

      SECTION 8. Section 40-8-19 of the General Laws in Chapter 40-8 entitled "Medical

9-15

Assistance" is hereby amended to read as follows:

9-16

     40-8-19. Rates of payment to nursing facilities. -- (a)  Rate reform. The rates to be paid

9-17

by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to

9-18

participate in the Title XIX Medicaid program for services rendered to Medicaid-eligible

9-19

residents, shall be reasonable and adequate to meet the costs which must be incurred by

9-20

efficiently and economically operated facilities in accordance with 42 U.S.C.  1396a(a)(13). The

9-21

department of human services shall promulgate or modify the principles of reimbursement for

9-22

nursing facilities currently in effect on July 1, 2003 to be consistent with the provisions of this

9-23

section and Title XIX, 42 U.S.C.  1396 et seq., of the Social Security Act.  

9-24

     (b)  Rate reform. Subject to the phase-in provisions in subsections (c) and (d), the

9-25

department shall, on or before October 1, 2005, modify the principles of reimbursement for

9-26

nursing facilities to include the following elements:  

9-27

     (1) Annual base years;  

9-28

     (2) Four (4) cost centers: direct labor, property, other operating, and pass through items;  

9-29

     (3) Re-array of costs of all facilities in the labor and other operating cost centers every

9-30

three (3) years beginning with calendar year 2002;  

9-31

     (4) A ceiling maximum for allowable costs in the direct labor cost center to be

9-32

established by the department between one hundred ten percent (110%) and one hundred twenty-

9-33

five percent (125%) of the median for all facilities for the most recent array year.  

9-34

     (5) A ceiling maximum for allowable costs in the other operating cost center to be

10-1

established by the department between ninety percent (90%) and one hundred fifteen percent

10-2

(115%) of the median for all facilities for the most recent array year;  

10-3

     (6) Adjustment of costs and ceiling maximums by the increase in the National Nursing

10-4

Home Price Index ("NNHPI") for the direct labor cost center and the other operating cost center

10-5

for year between array years; such adjustments to be applied on October 1st of each year

10-6

beginning October 1, 2003 for the direct labor cost center and October 1, 2005 for the other

10-7

operating cost center, except for the fiscal year beginning July 1, 2006 for which the price index

10-8

shall be applied on February 1, 2007 and for the fiscal year beginning October 1, 2007 for which

10-9

the adjustment of costs and ceiling maximums shall be one and one-tenth percent (1.1%) percent.

10-10

  (7) Application of a fair rental value system to be developed by the department for

10-11

calculating allowable reimbursement for the property cost center;  

10-12

     (8) Such quality of care and cost containment incentives as may be established by

10-13

departmental regulations.  

10-14

     (c)  Phase I Implementation. The department shall file a state plan amendment with the

10-15

U.S. Department of Health and Human Services on or before August 1, 2003 to modify the

10-16

principles of reimbursement for nursing facilities, to be effective on October 1, 2003, or as soon

10-17

thereafter as is authorized by an approved state plan amendment, to establish the direct labor cost

10-18

center and the pass through items cost center utilizing calendar year 2002 cost data, and to apply

10-19

the ceiling maximums in subsections (b)(4) and (b)(5). Nursing facilities whose allowable 2002

10-20

direct labor costs are below the median in the direct labor cost center may make application to the

10-21

department for a direct labor cost interim payment adjustment equal to twenty-five percent (25%)

10-22

of the amount such allowable 2002 direct labor costs are below the median in the direct labor cost

10-23

center, provided that the interim payment adjustment granted by the department on or after

10-24

October 1, 2003 must be expended by the facility on expenses allowable within the direct labor

10-25

cost center, and any portion of the interim payment not expended on allowable direct labor cost

10-26

center expenses shall be subject to retroactive adjustment and recoupment by the department

10-27

upon the department's determination of a final direct labor payment adjustment after review of the

10-28

facility's actual direct labor expenditures. The final direct labor payment adjustment will be

10-29

included in the facility's October 1, 2004 rate until the facility's next base year.  

10-30

     (d)  Phase II Implementation. The department shall file a state plan amendment with the

10-31

U.S. Department of Health and Human Services to modify the principles of reimbursement for

10-32

nursing facilities, to be effective on September 1, 2004, or as soon thereafter as is authorized by

10-33

an approved state plan amendment, to establish a fair rental value system for calculating

10-34

allowable reimbursement for the property cost center in accordance with subsection (b)(7);

11-1

provided, however, that no facility shall receive a payment as of September 1, 2004 for property-

11-2

related expenses pursuant to the fair rental value system that is less than the property-related

11-3

payment they would have received for the other property-related ("OPR") cost center system in

11-4

effect as of June 30, 2004.  

11-5

      SECTION 9. Section 42-7.2-5 of the General Laws in Chapter 42-7.2 entitled "Office

11-6

of Health and Human Services " is hereby amended to read as follows:

11-7

     42-7.2-5. Duties of the secretary. -- The secretary shall be subject to the direction and

11-8

supervision of the governor for the oversight, coordination and cohesive direction of state

11-9

administered health and human services and in ensuring the laws are faithfully executed, not

11-10

withstanding any law to the contrary. In this capacity, the Secretary of Health and Human

11-11

Services shall be authorized to:  

11-12

     (a) (1) Coordinate the administration and financing of health care benefits, human

11-13

services and programs including those authorized by the Medicaid State Plan under Title XIX of

11-14

the US Social Security Act. However, nothing in this section shall be construed as transferring to

11-15

the secretary the powers, duties or functions conferred upon the departments by Rhode Island

11-16

public and general laws for the administration of federal/state programs financed in whole or in

11-17

part with Medicaid funds or the administrative responsibility for the preparation and submission

11-18

of any state plans, state plan amendments, or authorized federal waiver applications.  

11-19

     (b) (2) Serve as the governor's chief advisor and liaison to federal policymakers on

11-20

Medicaid reform issues as well as the principal point of contact in the state on any such related

11-21

matters.  

11-22

     (c) (3) Review and ensure the coordination of any new departmental waiver requests and

11-23

renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan

11-24

with the potential to affect the scope, amount or duration of publicly-funded health care services,

11-25

provider payments or reimbursements, or access to or the availability of benefits and services as

11-26

provided by Rhode Island general and public laws. The secretary shall consider whether any such

11-27

waivers or amendments are legally and fiscally sound and consistent with the state's policy and

11-28

budget priorities. The secretary shall also assess whether a proposed waiver or amendment is

11-29

capable of obtaining the necessary approvals from federal officials and achieving the expected

11-30

positive consumer outcomes. Department directors shall, within the timelines specified, provide

11-31

any information and resources the secretary deems necessary in order to perform the reviews

11-32

authorized in this section;  

11-33

     (d) (4) Beginning in 2006, prepare and submit to the governor, the chairpersons of the

11-34

house and senate finance committees, the caseload estimating conference, and to the joint

12-1

legislative committee for health care oversight, by no later than February 1 of each year, a

12-2

comprehensive overview of all Medicaid expenditures outcomes, and utilization rates. The

12-3

overview shall include, but not be limited to, the following information:  

12-4

     (1) (i) Expenditures under Titles XIX and XXI of the social security act Social Security

12-5

Act, as amended;  

12-6

     (2) (ii) Expenditures, outcomes and utilization rates by population and sub-population

12-7

served (e.g. families with children, children with disabilities, children in foster care, children

12-8

receiving adoption assistance, adults with disabilities, and the elderly);  

12-9

     (3) (iii) Expenditures, outcomes and utilization rates by each state department or other

12-10

municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the

12-11

social security act Social Security Act, as amended; and  

12-12

     (4) (iv) Expenditures, outcomes and utilization rates by type of service and/or service

12-13

provider.  

12-14

     The directors of the departments, as well as local governments and school departments,

12-15

shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever

12-16

resources, information and support shall be necessary.  

12-17

     (e) (5) Resolve administrative, jurisdictional, operational, program, or policy conflicts

12-18

among departments and their executive staffs and make necessary recommendations to the

12-19

governor.  

12-20

     (f) (6) Assure continued progress toward improving the quality, the economy, the

12-21

accountability and the efficiency of state-administered health and human services. In this

12-22

capacity, the secretary shall:  

12-23

     (1) (i) Direct implementation of reforms in the human resources practices of the

12-24

departments that streamline and upgrade services, achieve greater economies of scale and

12-25

establish the coordinated system of the staff education, cross- training, and career development

12-26

services necessary to recruit and retain a highly-skilled, responsive, and engaged health and

12-27

human services workforce;  

12-28

     (2) (ii) Encourage the departments to utilize consumer-centered approaches to service

12-29

design and delivery that expand their capacity to respond efficiently and responsibly to the

12-30

diverse and changing needs of the people and communities they serve;  

12-31

     (3) (iii) Develop all opportunities to maximize resources by leveraging the state's

12-32

purchasing power, centralizing fiscal service functions related to budget, finance, and

12-33

procurement, centralizing communication, policy analysis and planning, and information systems

12-34

and data management, pursuing alternative funding sources through grants, awards and

13-1

partnerships and securing all available federal financial participation for programs and services

13-2

provided through the departments; and  

13-3

     (4) (iv) Improve the coordination and efficiency of health and human services legal

13-4

functions by centralizing adjudicative and legal services and overseeing their timely and judicious

13-5

administration.  

13-6

     (g) (7) Prepare and integrate comprehensive budgets for the health and human services

13-7

departments and any other functions and duties assigned to the office. The budgets shall be

13-8

submitted to the state budget office by the secretary, for consideration by the governor, on behalf

13-9

of the state's health and human services in accordance with the provisions set forth in section 35-

13-10

3-4 of the Rhode Island general laws.  

13-11

     (h) (8) Utilize objective data to evaluate health and human services policy goals, resource

13-12

use and outcome evaluation and to perform short and long-term policy planning and

13-13

development.  

13-14

     (i) (9) Establishment of an integrated approach to interdepartmental information and data

13-15

management that will facilitate the transition to consumer-centered system of state administered

13-16

health and human services.  

13-17

     (j) (10) At the direction of the governor or the general assembly, conduct independent

13-18

reviews of state-administered health and human services programs, policies and related agency

13-19

actions and activities and assist the department directors in identifying strategies to address any

13-20

issues or areas of concern that may emerge thereof. The department directors shall provide any

13-21

information and assistance deemed necessary by the secretary when undertaking such

13-22

independent reviews.  

13-23

     (k) (11) Provide regular and timely reports to the governor and make recommendations

13-24

with respect to the state's health and human services agenda.  

13-25

     (l) (12) Employ such personnel and contract for such consulting services as may be

13-26

required to perform the powers and duties lawfully conferred upon the secretary.  

13-27

     (m) (13) Implement the provisions of any general or public law or regulation related to

13-28

the disclosure, confidentiality and privacy of any information or records, in the possession or

13-29

under the control of the executive office or the departments assigned to the executive office, that

13-30

may be developed or acquired for purposes directly connected with the secretary's duties set forth

13-31

herein.  

13-32

     (n) (14) Hold the director of each health and human services department accountable for

13-33

their administrative, fiscal and program actions in the conduct of the respective powers and duties

13-34

of their agencies.  

14-1

      SECTION 10. Section 42-14.5-3 of the General Laws in Chapter 42-14.5 entitled

14-2

"The Rhode Island Health Care Reform Act of 2004 – Health Insurance Oversight " is hereby

14-3

amended to read as follows:

14-4

     42-14.5-3. Powers and duties. [Contingent effective date; see notes under section 42-

14-5

14.5-1.] --The health insurance commissioner shall have the following powers and duties:  

14-6

     (a) To conduct an annual public meeting or meetings, separate and distinct from rate

14-7

hearings pursuant to section 42-62-13, regarding the rates, services and operations of insurers

14-8

licensed to provide health insurance in the state the effects of such rates, services and operations

14-9

on consumers, medical care providers and patients, and the market environment in which such

14-10

insurers operate. Notice of not less than ten (10) days of said hearing(s) shall go to the general

14-11

assembly, the governor, the Rhode Island Medical Society, the Hospital Association of Rhode

14-12

Island, the director of health, and the attorney general. Public notice shall be posted on the

14-13

department's web site and given in the newspaper of general circulation, and to any entity in

14-14

writing requesting notice.  

14-15

     (b) To make recommendations to the governor and the joint legislative committee on

14-16

health care oversight regarding health care insurance and the regulations, rates, services,

14-17

administrative expenses, reserve requirements, and operations of insurers providing health

14-18

insurance in the state, and to prepare or comment on, upon the request of the co-chairs of the joint

14-19

committee on health care oversight or upon the request of the governor, draft legislation to

14-20

improve the regulation of health insurance. In making such recommendations, the commissioner

14-21

shall recognize that it is the intent of the legislature that the maximum disclosure be provided

14-22

regarding the reasonableness of individual administrative expenditures as well as total

14-23

administrative costs. The commissioner shall also make recommendations on the levels of

14-24

reserves including consideration of: targeted reserve levels; trends in the increase or decrease of

14-25

reserve levels; and insurer plans for distributing excess reserves.  

14-26

     (c) To establish a consumer/business/labor/medical advisory council to obtain

14-27

information and present concerns of consumers, business and medical providers affected by

14-28

health insurance decisions. The council shall be involved in the planning and conduct of the

14-29

public meeting in accordance with subsection (a) above. The advisory council shall assist in the

14-30

design of an insurance complaint process to ensure that small businesses that experience

14-31

extraordinary rate increases in a given year could request and receive a formal review by the

14-32

department. The advisory council shall assess views of the health provider community relative to

14-33

insurance rates of reimbursement, billing and reimbursement procedures, and the insurers' role in

14-34

promoting efficient and high quality health care. The advisory council shall issue an annual report

15-1

of findings and recommendations to the governor and the joint legislative committee on health

15-2

care oversight. The advisory council is to be diverse in interests and shall include representatives

15-3

of community consumer organizations; small businesses, other than those involved in the sale of

15-4

insurance products; and hospital, medical, and other health provider organizations. Such

15-5

representatives shall be nominated by their respective organizations. The advisory council shall

15-6

be co-chaired by the health insurance commissioner and a community consumer organization or

15-7

small business member to be elected by the full advisory council.  

15-8

     (d) To establish and provide guidance and assistance to a subcommittee ("The

15-9

Professional Provider-Health Plan Work Group") of the advisory council created pursuant to

15-10

subsection (c) above, composed of health care providers and Rhode Island licensed health plans.

15-11

This subcommittee shall develop a plan to implement the following activities:  

15-12

     (i) By January 1, 2006, a method whereby health plans shall disclose to contracted

15-13

providers the fee schedules used to provide payment to those providers for services rendered to

15-14

covered patients;  

15-15

     (ii) By April 1, 2006, a standardized provider application and credentials verification

15-16

process, for the purpose of verifying professional qualifications of participating health care

15-17

providers;  

15-18

     (iii) By September 1, 2006, a uniform health plan claim form to be utilized by

15-19

participating providers;  

15-20

     (iv) By March 15, 2007, a report to the legislature on proposed methods for health

15-21

maintenance organizations as defined by section 27-41-1, and nonprofit hospital or medical

15-22

service corporations as defined by chapters 27-19 and 27-20, to make facility-specific data and

15-23

other medical service-specific data available in reasonably consistent formats to patients

15-24

regarding quality and costs. This information would help consumers make informed choices

15-25

regarding the facilities and/or clinicians or physician practices at which to seek care. Among the

15-26

items considered would be the unique health services and other public goods provided by

15-27

facilities and/or clinicians or physician practices in establishing the most appropriate cost

15-28

comparisons.   

15-29

     (v) By December 1, 2006, contractual disclosure to participating providers of the

15-30

mechanisms for resolving health plan/provider disputes; and  

15-31

     (vi) By February 1, 2007, a uniform process for confirming in real time patient insurance

15-32

enrollment status, benefits coverage, including co-pays and deductibles.  

15-33

     (vii) By December 1, 2007, a report to the legislature on the temporary credentialing of

15-34

providers seeking to participate in the plan's network and the impact of said activity on health

16-1

plan accreditation;  

16-2

     (viii) By February 1, 2008, a report to the legislature on the feasibility of occasional

16-3

contract renegotiations between plans and the providers in their networks.  

16-4

     (ix) By May 1, 2008, a report to the legislature reviewing impact of silent PPOs on

16-5

physician practices.   

16-6

     A report on the work of the subcommittee shall be submitted by the health insurance

16-7

commissioner to the joint legislative committee on health care oversight on March 1, 2006,

16-8

March 1, 2007, and March 1, 2008.  

16-9

     (e) To enforce the provisions of Title 27 and Title 42 as set forth in section 42-14-5(d).  

16-10

     (f) There is hereby established the Rhode Island Affordable Health Plan Reinsurance

16-11

Fund. The fund shall be used to effectuate the provisions of sections 27-18.5-8 and 27-50-17.  

16-12

     (g) To examine and study the impact of changing the rating guidelines and/or merging the

16-13

individual health insurance market as defined in section chapter 27-18.5 and the small employer

16-14

health insurance market as defined in chapter 27-50 in accordance with the following:  

16-15

     (i) The study shall forecast the likely rate increases required to effect the changes

16-16

recommended pursuant to the preceding subsection (g) in the direct pay market and small

16-17

employer health insurance market over the next five (5) years, based on the current rating

16-18

structure, and current products.  

16-19

     (ii) The study shall include examining the impact of merging the individual and small

16-20

employer markets on premiums charged to individuals and small employer groups.  

16-21

     (iii) The study shall include examining the impact on rates in each of the individual and

16-22

small employer health insurance markets and the number of insureds in the context of possible

16-23

changes to the rating guidelines used for small employer groups, including: community rating

16-24

principles; expanding small employer rate bands bonds beyond the current range; increasing the

16-25

employer group size in the small group market; and/or adding rating factors for broker and/or

16-26

tobacco use.  

16-27

     (iv) The study shall include examining the adequacy of current statutory and regulatory

16-28

oversight of the rating process and factors employed by the participants in the proposed new

16-29

merged market.  

16-30

     (v) The study shall include assessment of possible reinsurance mechanisms and/or federal

16-31

high-risk pool structures and funding to support the health insurance market in Rhode Island by

16-32

reducing the risk of adverse selection and the incremental insurance premiums charged for this

16-33

risk, and/or by making health insurance affordable for a selected at-risk population.  

16-34

     (vi) The health insurance commissioner shall establish an insurance market merger task

17-1

force to assist with the study. The task force shall be chaired by the health insurance

17-2

commissioner and shall include, but not be limited to, representatives of the general assembly, the

17-3

business community, small employer carriers as defined in section 27-50.3 27-50-3, carriers

17-4

offering coverage in the individual market in Rhode Island, health insurance brokers and

17-5

members of the general public.  

17-6

     (vii) For the purposes of conducting this study, the commissioner may contract with an

17-7

outside organization with expertise in fiscal analysis of the private insurance market. In

17-8

conducting its study, the organization shall, to the extent possible, obtain and use actual health

17-9

plan data. Said data shall be subject to state and federal laws and regulations governing

17-10

confidentiality of health care and proprietary information.  

17-11

     (viii) The task force shall meet no later than October 1, 2007 and the commissioner shall

17-12

file a report with the speaker of the house of representatives and the president of the senate no

17-13

later than January 1, 2008.  

17-14

      SECTION 11. Section 42-46-2 of the General Laws in Chapter 42-46 entitled "Open

17-15

Meetings" is hereby amended to read as follows:

17-16

     42-46-2. Definitions. -- As used in this chapter:  

17-17

     (a) (1) "Meeting" means the convening of a public body to discuss and/or act upon a

17-18

matter over which the public body has supervision, control, jurisdiction, or advisory power. As

17-19

used herein, the term "meeting" expressly includes, without limiting the generality of the

17-20

foregoing, so-called "workshop," "working," or "work" sessions.  

17-21

     (b) (2) "Open call" means a public announcement by the chairperson of the committee

17-22

that the meeting is going to be held in executive session and the chairperson must indicate which

17-23

exception of section 42-46-5 is being involved.  

17-24

     (c) (3) "Public body" means any department, agency, commission, committee, board,

17-25

council, bureau, or authority or any subdivision thereof of state or municipal government or any

17-26

library that funded at least twenty-five percent (25%) of its operational budget in the prior budget

17-27

year with public funds, and shall include all authorities defined in section 42-35-1(b). For

17-28

purposes of this section, any political party, organization, or unit thereof meeting or convening is

17-29

not and should not be considered to be a public body; provided, however, that no such meeting

17-30

shall be used to circumvent the requirements of this chapter.  

17-31

     (d) (4) "Quorum", unless otherwise defined by applicable law, means a simple majority

17-32

of the membership of a public body.  

17-33

     (e) (5) "Prevailing plaintiff" includes those persons and entities deemed "prevailing

17-34

parties" pursuant to 42 U.S.C.  1988.  

18-1

     (f) (6) "Open forum" means the designated portion of an open meeting, if any, on a

18-2

properly posted notice reserved for citizens to address comments to a public body relating to

18-3

matters affecting the public business.  

18-4

      SECTION 12. Section 42-72-5 of the General Laws in Chapter 42-72 entitled

18-5

"Department of Children, Youth, and Families" is hereby amended to read as follows:

18-6

     42-72-5. Powers and scope of activities. -- (a)  The department is the principal agency

18-7

of the state to mobilize the human, physical and financial resources available to plan, develop,

18-8

and evaluate a comprehensive and integrated statewide program of services designed to ensure

18-9

the opportunity for children to reach their full potential. The services include prevention, early

18-10

intervention, out-reach, placement, care and treatment, and after-care programs; provided,

18-11

however, that the department notifies the state police and cooperates with local police

18-12

departments when it receives and/or investigates a complaint of sexual assault on a minor and

18-13

concludes that probable cause exists to support the allegations(s). The department also serves as

18-14

an advocate for the needs of children.  

18-15

     (b)  To accomplish the purposes and duties, as set forth in this chapter, the director is

18-16

authorized and empowered:  

18-17

     (1) To establish those administrative and operational divisions of the department that the

18-18

director determines is in the best interests of fulfilling the purposes and duties of this chapter;  

18-19

     (2) To assign different tasks to staff members that the director determines best suit the

18-20

purposes of this chapter;  

18-21

     (3) To establish plans and facilities for emergency treatment, relocation and physical

18-22

custody of abused or neglected children which may include, but are not limited to,

18-23

homemaker/educator child case aides, specialized foster family programs, day care facilities,

18-24

crisis teams, emergency parents, group homes for teenage parents, family centers within existing

18-25

community agencies, and counseling services;  

18-26

     (4) To establish, monitor, and evaluate protective services for children including, but not

18-27

limited to, purchase of services from private agencies and establishment of a policy and

18-28

procedure manual to standardize protective services;  

18-29

     (5) To plan and initiate primary and secondary treatment programs for abused and

18-30

neglected children;  

18-31

     (6) To evaluate the services of the department and to conduct periodic comprehensive

18-32

needs assessment;  

18-33

     (7) To license, approve, monitor, and evaluate all residential and non-residential child

18-34

care institutions, group homes, foster homes, and programs;  

19-1

     (8) To recruit and coordinate community resources, public and private;  

19-2

     (9) To promulgate rules and regulations concerning the confidentiality, disclosure and

19-3

expungement of case records pertaining to matters under the jurisdiction of the department;  

19-4

     (10) To establish a minimum mandatory level of twenty (20) hours of training per year

19-5

and provide ongoing staff development for all staff; provided, however, all social workers hired

19-6

after June 15, 1991, within the department shall have a minimum of a bachelor's degree in social

19-7

work or a closely related field, and must be appointed from a valid civil service list;  

19-8

     (11) To establish procedures for reporting suspected child abuse and neglect pursuant to

19-9

chapter 11 of title 40;  

19-10

     (12) To promulgate all rules and regulations necessary for the execution of departmental

19-11

powers pursuant to the Administrative Procedures Act, chapter 35 of title 42;  

19-12

     (13) To provide and act as a clearinghouse for information, data and other materials

19-13

relative to children;  

19-14

     (14) To initiate and carry out studies and analysis which will aid in solving local, regional

19-15

and statewide problems concerning children;  

19-16

     (15) To represent and act on behalf of the state in connection with federal grant programs

19-17

applicable to programs for children in the functional areas described in this chapter;  

19-18

     (16) To seek, accept, and otherwise take advantage of all federal aid available to the

19-19

department, and to assist other agencies of the state, local agencies, and community groups in

19-20

taking advantage of all federal grants and subventions available for children;  

19-21

     (17) To review and coordinate those activities of agencies of the state and of any political

19-22

subdivision of the state which affect the full and fair utilization of community resources for

19-23

programs for children, and initiate programs that will help assure utilization;  

19-24

     (18) To administer the pilot juvenile restitution program, including the overseeing and

19-25

coordinating of all local community based restitution programs, and the establishment of

19-26

procedures for the processing of payments to children performing community service; and  

19-27

     (19) To adopt rules and regulations which:  

19-28

     (i) For the twelve (12) month period beginning on October 1, 1983, and for each

19-29

subsequent twelve (12) month period, establish specific goals as to the maximum number of

19-30

children who will remain in foster care for a period in excess of two (2) years; and  

19-31

     (ii) Are reasonably necessary to implement the child welfare services and foster care

19-32

programs;  

19-33

     (20) May establish and conduct seminars for the purpose of educating children regarding

19-34

sexual abuse;  

20-1

     (21) To establish fee schedules by regulations for the processing of requests from

20-2

adoption placement agencies for adoption studies, adoption study updates, and supervision related

20-3

to interstate and international adoptions. The fee shall equal the actual cost of the service(s)

20-4

rendered, but in no event shall the fee exceed two thousand dollars ($2,000);  

20-5

     (22) To be responsible for the education of all children who are placed, assigned, or

20-6

otherwise accommodated for residence by the department in a state operated or supported

20-7

community residence licensed by a Rhode Island state agency. In fulfilling this responsibility the

20-8

department is authorized to enroll and pay for the education of students in the public schools or,

20-9

when necessary and appropriate, to itself provide education in accordance with the regulations of

20-10

the board of regents for elementary and secondary education either directly or through contract;  

20-11

     (23) To develop multidisciplinary service plans, in conjunction with the department of

20-12

health, at hospitals prior to the discharge of any drug-exposed babies. The plan requires the

20-13

development of a plan using all health care professionals.  

20-14

     (24) To be responsible for the delivery of appropriate mental health services to seriously

20-15

emotionally disturbed children and children with functional developmental disabilities.

20-16

Appropriate mental health services may include hospitalization, placement in a residential

20-17

treatment facility, or treatment in a community based setting. The department is charged with the

20-18

responsibility for developing the public policy and programs related to the needs of seriously

20-19

emotionally disturbed children and children with functional developmental disabilities.  

20-20

     In fulfilling its responsibilities the department shall:  

20-21

     (i) Plan a diversified and comprehensive network of programs and services to meet the

20-22

needs of seriously emotionally disturbed children and children with functional developmental

20-23

disabilities;  

20-24

     (ii) Provide the overall management and supervision of the state program for seriously

20-25

emotionally disturbed children and children with functional developmental disabilities;  

20-26

     (iii) Promote the development of programs for preventing and controlling emotional or

20-27

behavioral disorders in children;  

20-28

     (iv) Coordinate the efforts of several state departments and agencies to meet the needs of

20-29

seriously emotionally disturbed children and children with functional developmental disabilities

20-30

and to work with private agencies serving those children;  

20-31

     (v) Promote the development of new resources for program implementation in providing

20-32

services to seriously emotionally disturbed children and children with functional developmental

20-33

disabilities.  

20-34

     The department shall adopt rules and regulations, which are reasonably necessary to

21-1

implement a program of mental health services for seriously emotionally disturbed children.  

21-2

     Each community, as defined in chapter 7 of title 16, shall contribute to the department, at

21-3

least in accordance with rules and regulations to be adopted by the department, at least its average

21-4

per pupil cost for special education for the year in which placement commences, as its share of

21-5

the cost of educational services furnished to a seriously emotionally disturbed child pursuant to

21-6

this section in a residential treatment program which includes the delivery of educational services.

21-7

  "Seriously emotionally disturbed child" means any person under the age of eighteen (18)

21-8

years or any person under the age of twenty-one (21) years who began to receive services from

21-9

the department prior to attaining eighteen (18) years of age and has continuously received those

21-10

services thereafter who has been diagnosed as having an emotional, behavioral or mental disorder

21-11

under the current edition of the Diagnostic and Statistical Manual and that disability has been on-

21-12

going for one year or more or has the potential of being ongoing for one year or more, and the

21-13

child is in need of multi-agency intervention, and the child is in an out-of-home placement or is at

21-14

risk of placement because of the disability.  

21-15

     A child with a "functional developmental disability" means any person under the age of

21-16

eighteen (18) years or any person under the age of twenty-one (21) years who began to receive

21-17

services from the department prior to attaining eighteen (18) years of age and has continuously

21-18

received those services thereafter.  

21-19

     The term "functional developmental disability" includes autism spectrum disorders and

21-20

means a severe, chronic disability of a person which:  

21-21

     (a) Is attributable to a mental or physical impairment or combination of mental physical

21-22

impairments;  

21-23

     (b) Is manifested before the person attains age eighteen (18);  

21-24

     (c) Is likely to continue indefinitely;  

21-25

     (d) Results in age- appropriate substantial functional limitations in three (3) or more of

21-26

the following areas of major life activity.  

21-27

     (i) Self-care;  

21-28

     (ii) Receptive and expressive language;  

21-29

     (iii) Learning;  

21-30

     (iv) Mobility;  

21-31

     (v) Self-direction;  

21-32

     (vi) Capacity for Independent Living; and  

21-33

     (vii) Economic self-sufficiency; and  

21-34

     (e) Reflects the person's need for a combination and sequence of special,

22-1

interdisciplinary, or generic care, treatment, or other services which are of life-long or extended

22-2

duration and are individually planned and coordinated.  

22-3

     (25) To provide access to services to any person under the age of eighteen (18) years or

22-4

any person under the age of twenty-one (21) years who began to receive child welfare services

22-5

from the department prior to attaining eighteen (18) years of age, has continuously received those

22-6

services thereafter and elects to continue to receive such services after attaining the age of

22-7

eighteen (18) years.  

22-8

     (26) To develop and maintain, in collaboration with other state and private agencies, a

22-9

comprehensive continuum of care in this state for children in the care and custody of the

22-10

department or at risk of being in state care. This continuum of care should be family-centered and

22-11

community-based with the focus of maintaining children safely within their families or, when a

22-12

child cannot live at home, within as close proximity to home as possible based on the needs of the

22-13

child and resource availability. The continuum should include community-based prevention,

22-14

family support and crisis intervention services as well as a full array of foster care and residential

22-15

services, including residential services designed to meet the needs of children who are seriously

22-16

emotionally disturbed, children who have a functional developmental disability and youth who

22-17

have juvenile justice issues. The director shall make reasonable efforts to provide a

22-18

comprehensive continuum of care for children in the care and custody of the DCYF, taking into

22-19

account the availability of public and private resources and financial appropriations and the

22-20

director shall submit an annual report to the general assembly as to the status of his or her efforts

22-21

in accordance with the provisions of subsection 42-72-4(b)(13).  

22-22

     (27) To administer funds under the John H. Chafee Foster Care Independence and

22-23

Educational And Training Voucher (ETV) Programs of Title IV-E of the Social Security Act, and

22-24

the DCYF Higher Education Opportunity Grant Program as outlined in RIGL section 42-72.8, in

22-25

accordance with rules and regulations as promulgated by the director of the department.  

22-26

     (c)  In order to assist in the discharge of his or her duties, the director may request from

22-27

any agency of the state information pertinent to the affairs and problems of children.

22-28

     (d)  Funding for these clients shall include funds that are transferred to the Department of

22-29

Human Services as part of the Managed Health Care program transfer. However, the expenditures

22-30

relating to these clients shall not be part of the Department of Human Services' Caseload

22-31

estimated for the semi-annual Caseload Estimating Conference. The expenditures shall be

22-32

accounted for separately.  

22-33

     (e)  The assembly has included funding in the FY 2008 Department of Children, Youth

22-34

and Families budget in the amount of $10.5 million from all sources of funds and $6.0 million

23-1

from general revenues to provide a managed system to care for children serviced between 18 to

23-2

21 years of age. The department shall manage this caseload to this level of funding.  

23-3

     (27) To administer funds under the John H. Chafee Foster Care Independence and

23-4

Educational And Training Voucher (ETV) Programs of Title IV-E of the Social Security Act, and

23-5

the DCYF Higher Education Opportunity Grant Program as outlined in RIGL section 42-72.8, in

23-6

accordance with rules and regulations as promulgated by the director of the department.  

23-7

     SECTION 13. Section 42-141-5 of the General Laws in Chapter 42-141entitled

23-8

"Affordable Energy" is hereby amended to read as follows:

23-9

     42-141-5. Affordable energy fund. -- (a)  Fund established..   

23-10

     (1) A special account is hereby established in the state treasury to be called the

23-11

"affordable energy fund."  

23-12

     (2) Money remaining in the fund at the end of a fiscal year shall remain available for

23-13

expenditure in successive fiscal years.  

23-14

     (3) The fund shall be used for only those purposes enumerated in subsection (d).  

23-15

     (b)  Financing of the fund. The fund shall consist of the following sources:  

23-16

     (1) Sums the legislature may appropriate;  

23-17

     (2) Moneys received from federal, state, private donor or other sources for the purpose of

23-18

energy affordability by low income households;  

23-19

     (3) Fees required pursuant to subsection (c); and  

23-20

     (4) Any interest earned on the moneys in the fund.  

23-21

     (c) Affordable energy fees.   

23-22

     (1) An affordable energy fee in an amount set forth in this subsection shall be imposed on

23-23

gross receipts of electricity and gas companies and gross receipts on the sale of heating fuels not

23-24

used for residential heating. The fee shall be remitted to the division of taxation according to the

23-25

applicable schedule for the remission of the gross receipts tax as provided for in chapter 44-13 or

23-26

the sales and use as provided for in chapter 44-18. The fees shall be as follows:  

23-27

     (i) Gas. Effective January 1, 2009, one-quarter of one percent (0.25%) of the gross

23-28

receipts tax of gas companies subject to the provisions of chapter 44-13 "Public Service

23-29

Corporation Tax". Effective January 1, 2010, one-half of one percent (0.50%) of the gross

23-30

receipts of gas companies subject to the provisions of chapter 44-13 "Public Service Corporation

23-31

Tax". Effective January 1, 2011 three-quarters of one percent (0.75%) of the gross receipts of gas

23-32

companies subject to the provisions of chapter 44-13 "Public Service Corporation Tax". Effective

23-33

January 1, 2012 and each January 1 thereafter one percent (1%) of the gross receipts of gas

23-34

companies subject to the provisions of chapter 44-13, "Public Service Corporation Tax".  

24-1

     (ii) Electricity. Effective January 1, 2009, one-quarter of one percent (0.25%) of the gross

24-2

receipts tax of electric companies subject to the provisions of chapter 44-13 "Public Service

24-3

Corporation Tax". Effective January 1, 2010, one-half of one percent (0.50%) of the gross

24-4

receipts of electric companies subject to the provisions of chapter 44-13 "Public Service

24-5

Corporation Tax". Effective January 1, 2011, three-quarters of one percent (0.75%) of the gross

24-6

receipts of electric companies subject to the provisions of chapter 44-13 "Public Service

24-7

Corporation Tax". Effective January 1, 2012 and each January 1 thereafter, one percent (1%) of

24-8

the gross receipts of electric companies subject to the provisions of chapter 44-13, "Public

24-9

Service Corporation Tax".  

24-10

     (iii) Heating fuel other than natural gas and electricity. Effective January 1, 2009, one-

24-11

half percent (.50%) of gross receipts from the sales and use of heating fuel subject to the

24-12

provisions of chapter 44-18 "Sales and Use Taxes - Liability and Computation". Effective

24-13

January 1, 2010, one percent (1.0%) of gross receipts from the sales and use of heating fuel

24-14

subject to the provisions of chapter 44-18 "Sales and Use Taxes - Liability and Computation".

24-15

Effective January 1, 2011, one and one-half percent (1.5%) of gross receipts from the sales and

24-16

use of heating fuel subject to the provisions of chapter 44-18. Effective January 1, 2012 and each

24-17

January 1 thereafter two percent (2%) of gross receipts from the sales and use of heating fuel

24-18

subject to the provisions of chapter 44-18. "Sales and Use Taxes - Liability and Computation".  

24-19

     (2) Every person from whom an affordable energy fee is due shall be liable for the fee

24-20

until it has been paid to the state.  

24-21

     (d)  Purposes of the fund.   

24-22

     (1) The commissioner may use money from the fund to:  

24-23

     (i) Support weatherization and energy conservation educational programs and

24-24

weatherization and energy conservation services for low-income and very low income

24-25

households;  

24-26

     (ii) Compensate electric and gas distribution companies for revenues lost due to the

24-27

reductions in distribution and customer charges, in accordance with a plan approved by the

24-28

commission, to very low income households, and if feasible to low income households, which

24-29

shall, as a first priority, be used to provide up to a fifty percent (50%) reduction in the distribution

24-30

and customer charges for a reasonable and prudent use by very low-income households of gas

24-31

and electricity that does not exceed average use for comparable dwelling units.  

24-32

     (iii) Defray the cost of heating fuel delivered to very low income households by an

24-33

amount not to exceed twenty-five percent (25%) of the allowable cost of heating fuel and a total

24-34

usage by the household, supported assistance from all sources overseen by the commissioner, that

25-1

is reasonable and prudent and does not exceed average use for comparable dwelling units.  

25-2

     (iv) Provide supplemental funds as may be necessary to augment the LIHEAP program in

25-3

order to accomplish the purposes of this chapter; it is not the purpose of the fund to reduce the

25-4

amount of assistance a household would otherwise receive from LIHEAP and other sources in the

25-5

absence of the fund or to subsidize utility rates in effect as of July 1, 2006, and provided for by

25-6

law.  

25-7

     (2) If the commissioner determines it is in the public interest to allocate funds for the

25-8

purposes set forth in subparagraph (1)(ii) above, the commissioner shall notify the commission of

25-9

the amount of funds to be allocated for a specified period. The commission shall then direct the

25-10

electric and/or gas distribution companies to file amendments to the appropriate tariffs to

25-11

implement rate reductions designed to provide the rate reduction consistent with the amount

25-12

allocated for the period designated, which amendments are subject to the review and approval of

25-13

the commission. Once approval is given, the allocated funds shall be transferred to the gas and/or

25-14

electric distribution company. Any funds held after transfer shall accumulate interest at the

25-15

customer deposit rate ("interest"). If, at the end of the rate reduction period, there are any unused

25-16

dollars from the fund, such dollars shall be returned to the affordable energy fund with interest.

25-17

Likewise, if at the end of the rate reduction period, there were not enough funds allocated to

25-18

cover the rate reduction as designed, the shortfall will be reimbursed from the affordable energy

25-19

fund with interest; provided, however, if there are no additional funds available from the fund,

25-20

such shortfall or uncovered balance of such shortfall will be recovered with interest from all

25-21

customers in a manner and over the period approved by the commission.  

25-22

     (e)  Administration and records of the fund.   

25-23

     (1) The commissioner shall administer the fund in accordance with this chapter.  

25-24

     (2) The commissioner in consultation with the department shall adopt procedures

25-25

governing the expenditure of, and accounting for, money expended from the fund.  

25-26

     (3) The commissioner is responsible for insuring that there are adequate moneys available

25-27

in the fund to carry out the purposes of this section.  

25-28

     (4) The commissioner shall maintain accounting records showing the income and

25-29

expenses of the fund.  

25-30

     (f)  Expenditure of fund money. Disbursements may be made from the fund for the

25-31

following purposes:  

25-32

     (1) Necessary administrative expenses, personnel expenses and equipment costs of the

25-33

office related to this section which shall not exceed ten percent (10%) of the revenue of the fund;

25-34

  (2) All costs to effectuate the purposes of the fund as set forth in subsection (d).  

26-1

     (g)  Report to the legislature. The commissioner shall submit a report to the legislature

26-2

not later than the tenth (10th) day following the convening of each regular session of the

26-3

legislature. The report may include information considered significant by the commissioner but

26-4

must include:  

26-5

     (1) The amount of money expended under section 42-141-5 during the preceding fiscal

26-6

year;  

26-7

     (2) The amount and source of money received during the preceding fiscal year;  

26-8

     (3) A detailed summary of activities funded by the fund during the preceding fiscal year;  

26-9

     (4) The projected cost to the fund for affordable energy programs in the next fiscal year.  

26-10

      SECTION 14. Section 44-1-7.1 of the General Laws in Chapter 44-1 entitled "State Tax

26-11

Officials" is hereby amended to read as follows:

26-12

     44-1-7.1. Interest on overpayments. -- (a)  Notwithstanding any general or specific

26-13

statute to the contrary, overpayments of state taxes or surcharges that are remitted to the tax

26-14

division in accordance with section 39-21.1-14, shall bear interest at the rate provided in

26-15

section 44-1-7 from the date the tax was paid, or from the date including any extensions of the

26-16

date the tax became due, whichever of the dates occurs later.  

26-17

     (a) Each January 1 the tax administrator shall compute the rate of interest to be in effect

26-18

for that calendar year by reference to the prime rate, which was in effect on October 1 of the

26-19

preceding year. The term “prime rate” shall mean the predominant prime rate quoted by

26-20

commercial banks to large businesses as determined by the board of governors of the Federal

26-21

Reserve System.

26-22

      (b) Notwithstanding any general or specific statute to the contrary, overpayments of state

26-23

taxes or surcharges that are remitted to the tax division pursuant to section 39-21.1-14, shall bear

26-24

interest at the prime rate as defined in section 44-1-7.1(a) from the date the tax or the surcharge

26-25

that is referenced in this provision was paid, or from the date including any extensions of the date

26-26

the tax became due, whichever of the dates occurs later.  

26-27

     (c) If any overpayment of state tax is refunded within ninety (90) days after the last date

26-28

prescribed (or permitted by extension of time) for filing the return of the tax, or within ninety (90)

26-29

days after the return is in fact filed, no interest shall be allowed under this section on the

26-30

overpayment.  

26-31

     (d) For the purposes of this section, if any overpayment of state tax results from a carry-

26-32

back of a net operating loss, the overpayment is deemed not to have been made prior to the close

26-33

of the taxable year in which the net operating loss arises.  

26-34

     (e) If any overpayment of a surcharge referenced in subsection (b) of this section is

27-1

refunded within ninety (90) days after notification of overpayment of the surcharge, no interest

27-2

shall be allowed under this section on the overpayment.  

27-3

      SECTION 15. Section 44-11-14 of the General Laws in Chapter 44-11 entitled

27-4

"Business Corporation Tax" is hereby amended to read as follows:

27-5

     44-11-14. Allocation of income from business partially within state. -- (a)  In the case

27-6

of a taxpayer deriving its income from sources both within and outside of this state or engaging in

27-7

any activities or transactions both within and outside of this state for the purpose of profit or gain,

27-8

its net income shall be apportioned to this state by means of an allocation fraction to be computed

27-9

as a simple arithmetical mean of three (3) fractions:  

27-10

     (1) The first of these fractions shall represent that part held or owned within this state of

27-11

the average net book value of the total tangible property (real estate and tangible personal

27-12

property) held or owned by the taxpayer during the taxable year, without deduction on account of

27-13

any encumbrance thereon;  

27-14

     (2) The second fraction shall represent that part of the taxpayer's total receipts from sales

27-15

or other sources during the taxable year which is attributable to the taxpayer's activities or

27-16

transactions within this state during the taxable year; meaning and including within that part, as

27-17

being thus attributable, receipts from:  

27-18

     (i) Gross sales of its tangible personal property (inventory sold in the ordinary course of

27-19

business) where:  

27-20

     (A) Shipments are made to points within this state; or  

27-21

     (B) Shipments are made from an office, store, warehouse, factory or other place of

27-22

storage in this state and the taxpayer is not taxable in the state of the purchase and the taxpayer is

27-23

not taxable in the state of the purchase.  

27-24

     (ii) Gross income from services performed within the state;  

27-25

     (iii) Gross income from rentals from property situated within the state;  

27-26

     (iv) Net income from the sale of real and personal property, other than inventory sold in

27-27

the ordinary course of business as described in paragraph (i) of this subdivision, or other capital

27-28

assets located in the state;  

27-29

     (v) Net income from the sale or other disposition of securities or financial obligations;

27-30

and  

27-31

     (vi) Gross income from all other receipts within the state;  

27-32

     (3) The third fraction shall represent that part of the total wages, salaries, and other

27-33

compensation to officers, employees, and agents paid or incurred by the taxpayer during the

27-34

taxable year which is attributable to services performed in connection with the taxpayer's

28-1

activities or transactions within this state during the taxable year.  

28-2

     (b)  Notwithstanding any of the provisions of this section, revenue and expenses subject

28-3

to the gross earnings tax pursuant to chapter 13 of this title shall not be included in the calculation

28-4

described in this section.  

28-5

     SECTION 16. Sections 5-56.1-8 and 5-56.1-9 of the General Laws in Chapter 5-56.1

28-6

entitled "Designers of Individual Sewage Disposal Systems" are hereby amended to read as

28-7

follows:

28-8

     5-56.1-8. Denial, suspension and revocation of licenses - Censure. -- (a) The licensing

28-9

authority may deny, suspend or revoke a designer's license if the person or licensed designer fails

28-10

to comply with the requirements prescribed in this chapter or any regulation promulgated under

28-11

this chapter or where the person or licensed designer:

28-12

     (1) Provided incorrect, incomplete or misleading information in obtaining a designer's

28-13

license; or

28-14

     (2) Demonstrated gross or repeated negligence, incompetence or misconduct in the

28-15

representation of site conditions in an application to the department of environmental

28-16

management, design of an ISDS, or inspection or certification of an installation of an ISDS; or

28-17

     (3) Committed a felony involving moral turpitude; or

28-18

     (4) Failed or neglected to comply with continuing education requirements

28-19

established by the licensing authority.

28-20

     (b) An action to suspend or revoke a designer's license pursuant to subsection (a) of this

28-21

section may not be taken until after the licensed designer has an opportunity to have a hearing

28-22

before the licensing authority. This hearing shall be held within thirty (30) days of written notice

28-23

of intent to suspend or revoke the license.

28-24

     (c) The licensing authority shall appoint a review panel consisting of five (5)

28-25

members at least three (3) of whom shall be licensed designers not employed by the

28-26

licensing authority, for the purpose of reviewing and hearing disciplinary actions

28-27

contemplated under subsection (b) of this section. The review board shall make

28-28

recommendations to the licensing authority to suspend or revoke licenses. All final

28-29

decisions shall be made by the licensing authority.

28-30

     (d) Any person aggrieved by the denial of an application for a license pursuant to § 5-

28-31

56.1-4 or a denial, suspension or revocation of a license pursuant to this section may request a

28-32

formal hearing pursuant to § 42-17.1-2(u) § 42-17.1-2(21) which shall be granted, if requested, in

28-33

writing by the aggrieved applicant or licensee within ten (10) days of the denial, suspension or

29-1

revocation.

29-2

     (e) The licensing authority may publicly censure any licensed designer whose

29-3

license was suspended or revoked.

29-4

      5-56.1-9. Penalties. -- The penalties for noncompliance with any section of this chapter

29-5

shall be the same as stated in §§ 42-17.1-2(v) § 42-17.1-2(22) and chapter 17.6 of title 42 42-

29-6

17.6.

29-7

     SECTION 17. Section 16-67.1-3 of the General Laws in Chapter 16-67.1 entitled "Rhode

29-8

Island High School Dropout Prevention Act of 2007" is hereby amended to read as follows:

29-9

     16-67.1-3. Defining the age and protocol for a student to leave school. -- (a) Children

29-10

who have completed sixteen (16) years of life and who have not yet attained eighteen (18) years

29-11

of age may not withdraw from school before graduation unless:

29-12

     (1) The student, the student's parent(s)/guardian and an administrator agree to the

29-13

withdrawal;

29-14

     (2) At the exit interview, the student and the student's parent(s)/guardian provide written

29-15

acknowledgement of the withdrawal that meets the requirements of subsection (D) paragraph

29-16

(4)(D) of this subsection;

29-17

     (3) The school principal provides written consent for the student to withdraw from

29-18

school; and/or

29-19

     (4) The withdrawal is due to:

29-20

     (A) Due to documented financial hardship and the need of the individual to be employed

29-21

to support the individual's family or a dependent;

29-22

     (B) Due to documented illness;

29-23

     (C) By order of a court that has jurisdiction over the student; and

29-24

     (D) Accompanied by a written acknowledgement of a withdrawal under subsection (b)(2)

29-25

subdivision (2) of this subsection which must include a statement that the student and the

29-26

student's parent(s)/guardian understand that withdrawal from school is likely to reduce the

29-27

student's future earnings and increase the student's likelihood of being unemployed in the future;

29-28

     (b) If a child of the age described in subsection (a) is habitually absent from school and

29-29

the school is unable to contact the parent(s)/guardian, the school may withdraw the child from

29-30

enrollment provided that its attempts to contact the parent(s)/guardian by telephone, regular and

29-31

registered mail, and home visit are documented. If a child who has been withdrawn from

29-32

enrollment under this subsection returns to school, or if the school mistakenly withdraws the child

29-33

from enrollment, the child shall promptly be re-enrolled.

29-34

     SECTION 18. Section 23-81-6 of the General Laws in Chapter 23-81 entitled "Rhode

30-1

Island Coordinated Health Planning Act of 2006" is hereby amended to read as follows:

30-2

     23-81-6. Funding. -- The department of health may apply for and receive private and/or

30-3

public funds to carry out the requirements of this act chapter.

30-4

     SECTION 19. Section 28-53-8 of the General Laws in Chapter 28-53 entitled "Rhode

30-5

Island Uninsured Employers Fund" is hereby amended to read as follows:

30-6

     28-53-8. Limitations on payments to injured employees. -- (a) Where the director

30-7

determines by experience or other appropriate accounting and actuarial methods that the reserves

30-8

in the fund are insufficient to pay all claims presented or pending, the director shall petition the

30-9

workers' compensation court for an order to make appropriate, proportionate reductions in the

30-10

payments being made to injured employees by the fund or to suspend all payments to injured

30-11

employees until such time as the reserves maintained by the fund are sufficient to resume the

30-12

payment of benefits. The matter shall be heard by the chief judge. If the court determines that the

30-13

monies held by the fund are insufficient to fully pay all claims as they fall due, the court shall

30-14

issue an order directing that a proportionate reduction be made in the payments made to those

30-15

employees receiving benefits from the fund. In considering the fund's request for relief, the court

30-16

shall give due weight to the policy of the workers' compensation act that benefits are to be paid

30-17

weekly and that the unwarranted reduction or interruption in the employee's weekly

30-18

compensation benefit will impose financial hardship upon the injured worker.

30-19

     (b) The chief judge shall hear the director's petition within twenty-one (21) days of the

30-20

date the matter is filed with the court. The petition shall set forth the names and addresses of each

30-21

employee who may be affected by the reduction in benefits and the court shall provide notice to

30-22

each employee. The attorney general shall appear on behalf of the employees receiving benefits

30-23

from the fund and shall take such action as he or she feels is necessary to protect the rights of the

30-24

injured employees.

30-25

     (c) In the event that the court determines that a reduction or suspension of payments is

30-26

necessary to maintain the fiscal integrity of the fund, the court shall schedule a mandatory review

30-27

date to determine whether the financial status of the fund warrants a continuation of the order

30-28

reducing such payments and shall reinstitute payments only upon finding that the reserves

30-29

maintained by the fund are sufficient to pay all future claims as they fall due.

30-30

     SECTION 20. Section 39-2-5 of the General Laws in Chapter 39-2 entitled "Duties of

30-31

Utilities and Carriers" is hereby amended to read as follows:

30-32

     39-2-5. Exceptions to anti-discrimination provisions. -- The provisions of §§ 39-2-2 -

30-33

39-2-4 shall be subject to the following exceptions:

30-34

     (1) A public utility may issue or give free transportation or service to its employees and

31-1

their families, its officers, agents, surgeons, physicians, and attorneys at law, and to the officers,

31-2

agents, and employees, and their families of any other public utility.

31-3

     (2) With the approval of the division any public utility may give free transportation or

31-4

service, upon such conditions as the public utility may impose, or grant special rates therefor to

31-5

the state, to any town or city, or to any water or fire district, and to the officers thereof, for public

31-6

purposes, and also to any special class or classes of persons, not otherwise referred to in this

31-7

section, in cases where the same shall seem to the division just and reasonable, or required in the

31-8

interests of the public, and not unjustly discriminatory.

31-9

     (3) With the approval of the division any public utility operating a railroad or street

31-10

railway may furnish to the publishers of newspapers and magazines, and to their employees,

31-11

passenger transportation in return for advertising in the newspapers or magazines at full rates.

31-12

     (4) With the approval of the division any public utility may exchange its service for the

31-13

service of any other public utility furnishing a different class of service.

31-14

     (5) Nothing in this section or any other provision of the law shall be construed to prohibit

31-15

the giving by any public utility, free or reduced rate service to an elderly person as defined by the

31-16

division.

31-17

     (6) Any motor carrier of persons, as defined in chapter 13 of this title, may elect to file a

31-18

tariff providing for a rate reduction of twenty-five percent (25%) below its one-way fare tariff

31-19

applying to any person who is sixty-five (65) years of age or older and any person assisting and

31-20

traveling with a blind passenger who is not required to pay any fare pursuant to the provisions of

31-21

§ 39-2-13 for bus rides between the hours of ten o'clock (10:00) a.m. and three o'clock (3:00) p.m.

31-22

of each day. In such event, the reduced fare shall be paid in part by the passenger and in part by

31-23

the state. That part of the reduced fare payable by the state shall be one half (1/2) of the reduced

31-24

fare adjusted upward to end in the nearest zero (0) or five cents (.05), and that part payable by the

31-25

passenger shall be the balance of the reduced fare. Payments by the state under this section shall

31-26

be paid monthly under procedures agreed upon by the department of transportation and the

31-27

carrier.

31-28

     (7) [Deleted by P.L. 2004, ch. 378, § 4, and by P.L. 2004, ch. 504, § 4.]

31-29

     (8) Any person, firm, or corporation or any officer, agent, servant, or employee thereof

31-30

who shall violate the provisions of subsection (7) of this section by fraudulently obtaining a

31-31

telecommunications device shall, upon conviction, be fined not exceeding five hundred dollars

31-32

($500) or be imprisoned for a term not exceeding one year.

31-33

     (9) (i) Nothing in this section or any other provision of the general laws shall be

31-34

construed to prohibit the commission from taking actions to enable the state to participate in a

32-1

federal communications commission telephone lifeline program. The commission may set a

32-2

subscriber funded monthly residence basic exchange lifeline telephone service credit in an

32-3

amount not to exceed the federal subscriber line access charge or the monthly basic service

32-4

charge, whichever is less, for those persons who receive supplemental social security income

32-5

(SSI), aid to families with dependent children (AFDC), general public assistance (GPA), aid from

32-6

the Rhode Island medical assistance program, or food stamps issued pursuant to the Food Stamp

32-7

Act of 1964 as amended (public law 88-525 and amendments made thereto, 7 U.S.C. § 2011 et

32-8

seq.), assistance from the low-income home energy assistance program (LIHEAP) as

32-9

administered by the department of administration, division of planning, and effective April 1,

32-10

1993, assistance from the Rhode Island pharmaceutical assistance program administered by the

32-11

department of elderly affairs. The public utilities commission may promulgate regulations to

32-12

implement this section. The department of human services and the department of administration,

32-13

division of planning shall certify subscriber eligibility for the programs in accordance with public

32-14

utilities commission and federal communications commission guidelines.

32-15

     (ii) The department of human services shall report monthly to the governor and to the

32-16

house of representatives fiscal advisor the number of persons newly eligible for the lifeline

32-17

telephone service credit hereunder solely by virtue of their eligibility to receive food stamp

32-18

assistance and the department of administration, division of planning shall, also, report monthly

32-19

to the governor and to the house of representatives fiscal advisor the number of persons newly

32-20

eligible for the lifeline telephone service credit hereunder solely by virtue of their participation in

32-21

the low-income home energy assistance program (LIHEAP).

32-22

     (10) Nothing in this section or any other provision of the general laws shall be construed

32-23

to prohibit any public utility with the approval of the commission, from forgiving arrearages of

32-24

any person in accordance with the provisions of subsection 39-2-1(e) 39-2-1(d).

32-25

     (11) Nothing in this section or any other provision of the law shall be construed to

32-26

prohibit any utility company from cutting, disconnecting, or removing mains, poles,

32-27

wires, conduits, or fixtures free of charge to nonprofit housing development corporations

32-28

prior to moving a building to be used as affordable housing for at least a ten (10) year

32-29

period.

32-30

     (12) Nothing in this section or any other provision of the general laws shall be construed

32-31

to prohibit any telecommunications provider with the approval of the commission, from offering

32-32

any person, firm or corporation a reduced rate, provided such rate covers all costs.

32-33

     (13) A gas or electric distribution company may provide discounts to low income

32-34

customers in accordance with the affordable energy plan provisions of subsection 42-

33-1

141-5(d). Nothing contained herein shall prohibit the continuation of any low income

33-2

discounts approved by the commission prior to January 1, 2006, and in effect as of that

33-3

date.

33-4

     SECTION 21. Section 39-18-9 of the General Laws in Chapter 39-18 entitled "Rhode

33-5

Island Public Transit Authority" is hereby amended to read as follows:

33-6

     39-18-9. Revenues. -- The authority is hereby authorized and empowered to fix and

33-7

revise from time to time, such schedules of service and such rates of fare and charges for service

33-8

furnished or operated as it determines to be reasonable. The schedules of service, rates of fare,

33-9

and charges for service shall not be subject to supervision or regulation by any commission,

33-10

board, bureau, or agency of the state or of any municipality or other political subdivision of the

33-11

state; except as provided in § 39-18-4. Provided, however, if there are any changes in frequency

33-12

of services of more than fifteen percent (15%), providers of service, rates of service, other than

33-13

system wide changes, and charges for service shall be presented for comment at least one public

33-14

hearing scheduled in an accessible location in each county affected, and the hearing shall be

33-15

scheduled in two (2) sessions, one during daytime business hours and one during evening hours.

33-16

The revenues derived from the authority's operations and any other funds or property received or

33-17

to be received by the authority (including, without limitation, any funds or other property

33-18

received or to be received by the authority pursuant to § 39-18-4(10) 39-18-4(a)(10), in whole or

33-19

in part, at any time and from time to time, may be pledged to, and charged with, the payment of

33-20

the principal of and the interest on some or all of the authority's bonds as provided for in the

33-21

resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds. The

33-22

pledge shall be valid and binding from the time when the pledge is made; the revenues, funds, or

33-23

other property so pledged, and thereafter received by the authority, shall immediately be subject

33-24

to the lien of the pledge without any physical delivery thereof or further act, and the lien of any

33-25

pledge shall be valid and binding as against all parties having claims of any kind in tort, contract,

33-26

or otherwise against the authority, irrespective of whether the parties have notice thereof. Neither

33-27

the resolution nor any trust agreement by which a pledge is created need be filed or recorded

33-28

except in the records of the authority.

33-29

     SECTION 22. Section 42-17-1 of the General Laws in Chapter 42-17 entitled

33-30

"Department of Agriculture and Conservation" is hereby repealed.

33-31

     42-17-1. Department established - Responsibilities. -- There shall be a department of

33-32

agriculture and conservation. The head of the department shall be the director of agriculture and

33-33

conservation who shall carry out, except as otherwise provided in this title, the provisions of

33-34

chapters 1 to 3, inclusive, 6, 9 to 12, inclusive, 14, 15, and 17 to 19, inclusive of title 2; chapters

34-1

2, 4, 5, 8, and 12 of title 4; chapters 1 to 6, inclusive, 9 to 13, inclusive, 18, 19, 21, 24 to 32,

34-2

inclusive, and 34 of title 20; chapters 2, 4 to 7, inclusive, 17, 18, and 20 of title 21; and any and

34-3

all other general laws and public laws heretofore carried out by the existing director of agriculture

34-4

and conservation and department of agriculture and conservation.

34-5

     SECTION 23. Section 42-17.1-2.3 of the General Laws in Chapter 42-17.1 entitled

34-6

"Department of Environmental Management" is hereby amended to read as follows:

34-7

     42-17.1-2.3. Watershed-based management. -- (a) In order to accomplish the duties

34-8

and responsibilities for the protection, development, planning, and utilization of the natural

34-9

resources of the state, the director is authorized: (1) to plan, coordinate, integrate, manage,

34-10

exercise and/or implement the powers set forth in this chapter on a watershed basis for the

34-11

purposes of preserving and/or improving ecosystem functionality, protecting public health, safety

34-12

and welfare, and providing for the use of natural resources, including for recreational and

34-13

agricultural purposes; (2) to work in conjunction with the Rhode Island rivers council and in

34-14

cooperation with federal, interstate, state, local and private agencies and community organizations

34-15

and watershed groups and associations and persons to effectuate watershed-based management,

34-16

as appropriate and desirable; (3) to cooperate with the coastal resources management council in

34-17

the preparation and adoption of a marine resources development plan as provided for in § 46-23-

34-18

6(1)(v)(A); and (4) to coordinate and administer the activities of the department to achieve the

34-19

purposes of systems level planning by the state; and within areas subject to the jurisdiction of the

34-20

coastal resources management council, to administer its programs and exercise its powers and

34-21

duties consistent with the marine resources development plan and in those areas which are not

34-22

subject to the jurisdiction of the coastal resources management council to administer its programs

34-23

and exercise its powers and duties in a manner that contributes to meeting the purposes and goals

34-24

of the marine resources development plan.

34-25

     (b) Cumulative effects and potential cumulative effects of regulatory actions, including,

34-26

but not limited to, the issuance of permits and approvals, on a geographic basis, shall be

34-27

incorporated, subject to the limitations set forth in subsection 42-17.1-2(n) 42-17.1-2(14), to the

34-28

extent practicable and reasonable by the department into watershed-based management and

34-29

planning.

34-30

     SECTION 24. Section 42-64-7.9 of the General Laws in Chapter 42-64 entitled "Rhode

34-31

Island Economic Development Corporation" is hereby amended to read as follows:

34-32

     42-64-7.9. Orders as to pretreatment of sewage. -- (a) Without limiting the generality

34-33

of the foregoing, the authority vested in the Rhode Island economic development corporation

34-34

shall include the authority to limit, reject, or prohibit any direct or indirect discharge of pollutants

35-1

or combination of pollutants as defined by applicable federal or state law, into any treatment

35-2

facility operated by the corporation, to require that any person or class of user shall submit any

35-3

and all discharges into the corporation's wastewater collection and treatment system to those

35-4

pretreatment standards and requirements as prescribed by the corporation.

35-5

     (b) The corporation shall adopt rules, regulations and permit requirements for

35-6

pretreatment. The corporation shall adopt rules, regulations and permit requirements necessary to

35-7

ensure compliance by all parties with:

35-8

     (1) Applicable federal and state laws

35-9

     (2) State and federal discharge permit limitations for the corporation's wastewater

35-10

treatment facility

35-11

     (3) Necessary and appropriate local limitations.

35-12

     (c) The Rhode Island economic development corporation shall have the authority to

35-13

issue or deny permits to any person for the direct or indirect discharge of any pollutants into any

35-14

corporation wastewater treatment facility and to require the development of a compliance

35-15

schedule by each discharger to insure compliance with any pretreatment required by the

35-16

corporation. No person shall discharge any pollutant into the corporation's wastewater facility

35-17

except as in compliance with the provisions of this section and any rules and regulations

35-18

promulgated under this chapter and pursuant to all terms and conditions of a permit.

35-19

     (d) The Rhode Island economic development corporation may, by regulation, order,

35-20

permit or otherwise require any person who discharges into any wastewater treatment facility

35-21

owned by the corporation to:

35-22

     (1) Establish and maintain records as required by federal or state statute, or by rule,

35-23

regulation, compliance order, or permit terms;

35-24

     (2) Make any and all reports as required by federal or state statute or by rule, regulation,

35-25

compliance order or permit terms;

35-26

     (3) Install, calibrate, use and maintain any and all monitoring equipment or testing

35-27

procedures including, where appropriate, biological monitoring methods;

35-28

     (4) Sample any discharges and effluents in accordance with the methods and at the

35-29

locations and at the intervals and in a manner as the corporation may prescribe, and

35-30

     (5) Provide any other information relating to discharges into the facilities of the

35-31

corporation that the corporation may reasonably require to insure compliance with prescribed

35-32

pretreatment. The information shall include, but is not limited to, those records, reports and

35-33

procedures required by applicable federal and state laws.

35-34

     (e) Notwithstanding any other provision of this section, the Rhode Island economic

36-1

development corporation shall have the authority, and shall accordingly prescribe the appropriate

36-2

procedures, to immediately and effectively halt or prevent any discharge of pollutants into the

36-3

facilities of the corporation which reasonably appears to present an imminent danger to human

36-4

health or the environment. The Rhode Island economic development corporation shall also have

36-5

the authority and shall prescribe the appropriate procedures, which shall include notice to the

36-6

affected discharger and an opportunity to respond, to hold or prevent any discharge into the

36-7

facilities of the corporation, which presents or may present a threat to the operation of the

36-8

wastewater collection and/or treatment system. Procedures prescribed under this subsection,

36-9

which comply in form to those provided in § 42-17.1-2(u) 42-17.1-2(21) shall be deemed to be

36-10

appropriate.

36-11

     SECTION 25. Section 42-125-6 of the General Laws in Chapter 42-125 entitled "Rhode

36-12

Island Greenways Act of 1995" is hereby amended to read as follows:

36-13

     42-125-6. Powers and duties. -- The council has the following powers:

36-14

     (1) To be entitled to ask for and receive from any commission, board, officer or agency of

36-15

the state any information, cooperation, assistance, and advice as shall be reasonable and proper in

36-16

view of the nature of the council's functions;

36-17

     (2) To assess and evaluate the current programs and policies of the state as they relate to

36-18

the creation and maintenance of systems of greenways throughout the state and to make

36-19

recommendations regarding the coordination of activities within state government to create and

36-20

maintain systems of greenways as part of the state's twenty-first century infrastructure;

36-21

     (3) To make any recommendations that may be necessary to the state planning

36-22

council to maintain a greenways element of the state guide plan as described in § 42-11-

36-23

10;

36-24

     (4) To make recommendations to the executive director of the Rhode Island economic

36-25

development corporation regarding the inclusion of greenways in programs to promote tourism

36-26

and encourage the location and development of recreational facilities as provided for in § 42-63-

36-27

2(a) [repealed];

36-28

     (5) To make recommendations to the director of the department of environmental

36-29

management regarding the inclusion of greenways in (1) the department's cooperation with the

36-30

Rhode Island economic development corporation in planning and promotional functions relating

36-31

to recreation as provided for in § 42-17.1-2(f) 42-17.1-2(6), and (2) the department's general

36-32

functions relating to parks and recreation, preservation of wetlands and habitat, and planning and

36-33

development as provided for in § 42-17.1-4;

36-34

     (6) To make recommendations to the director of the department of transportation

37-1

regarding the inclusion of greenways in plans and implementation programs for transportation as

37-2

provided for in § 42-13-1;

37-3

     (7) To provide advice and assistance to political subdivisions, businesses, citizen groups,

37-4

and nonprofit organizations regarding the creation and maintenance of greenways;

37-5

     (8) To foster public involvement in greenways planning and development;

37-6

     (9) To apply for, contract for, and expend federal and other grants or assistance,

37-7

appropriate to the purposes of this chapter, and

37-8

     (10) To approve and submit an annual report within ninety (90) days after the end of the

37-9

fiscal year to the governor, the speaker of the house of representatives, the president of the senate,

37-10

and the secretary of state of its activities during that fiscal year. The report shall provide: an

37-11

operating statement summarizing meetings or hearings held, including meeting minutes, subjects

37-12

addressed, decisions rendered, studies conducted, policies developed, and programs administered

37-13

or initiated; a consolidated financial statement of all funds received and expended including the

37-14

source of the funds, a listing of any staff supported by these funds, and a summary of any clerical,

37-15

administrative or technical support received; a summary of performance during the previous

37-16

fiscal year including accomplishments, shortcomings and remedies; a synopsis of any legal

37-17

matters related to the authority of the council; a summary of any training courses held pursuant to

37-18

subsection 42-125-6(11), a briefing on anticipated activities in the upcoming fiscal year; and

37-19

findings and recommendations for improvements. The report shall be posted as prescribed in §

37-20

42-20-8.2. The director of the department of administration shall be responsible for the

37-21

enforcement of this provision.

37-22

     (11) To conduct a training course for newly appointed and qualified members and new

37-23

designees of ex officio members within six (6) months of their qualification or designation. The

37-24

course shall be developed by the chair of the council, approved by the council, and conducted by

37-25

the chair of the council. The council may approve the use of any council or staff members of

37-26

other individuals to assist with training. The course shall include instruction in the following

37-27

areas: the provisions of chapter 42-125; § 42-11-10; subsections 42-17.1-2(f) 42-17.1-2(6), and

37-28

(2); § 42-17.1-4; § 42-13-1; chapter 42-46; chapter 36-14; chapter 38-2; and the council's

37-29

operating procedures. The director of the department of administration shall, within ninety (90)

37-30

days of the effective date of this act [May 3, 2006], prepare and disseminate training materials

37-31

relating to the provisions of chapters 42-46, 36-14 and 38-2.

37-32

     SECTION 26. Section 42-141-12 of the General Laws in Chapter 42-141 entitled

37-33

"Affordable Energy" is hereby amended to read as follows:

37-34

     42-141-12. Transitional provision. -- Effective September 1, 2006, in order to provide

38-1

for transitional assistance to very low-income customers during fiscal year 2007, notwithstanding

38-2

any law or order to the contrary, the following provisions shall apply to eligibility for restoration

38-3

of gas and/or electric service to a very low-income customer who has been terminated from

38-4

service in calendar year 2006; the very low-income customer shall pay eighteen percent (18%) of

38-5

the customer's unpaid balance and shall agree to remain current with payments for current usage

38-6

and to pay one thirty-sixth (1/36) of one-half (1/2) of the remaining balance per month through

38-7

June 2007; a very low income customer who complies with the provisions of this section shall be

38-8

transitioned to the provision of subsection 39-2-1(e)(ii) 39-2-1(d)(1)(ii) and (iii) effective July 1,

38-9

2007, and the monthly payments on the remaining balance that have been made pursuant to such

38-10

agreement shall be credited to the requirements of subdivision 39-2-1(e)(iv) 39-2-1(d)(1)(iv) for

38-11

the forgiveness of arrearages. A very low-income customer who elects to use the provisions of

38-12

this section and who fails to comply with the terms of the agreement for the restoration of service

38-13

under the provisions of this section shall be ineligible to apply for restoration of service under the

38-14

provisions of subdivision 39-2-1(e) 39-2-1(d) and shall be subject to termination of service

38-15

effective April 15, 2007, and any unpaid balance shall be due in full and shall be payable in

38-16

accordance with the rules of the commission. The provisions of this section shall be repealed

38-17

effective July 2, 2007.

38-18

     SECTION 27. Section 45-2-50 of the General Laws in Chapter 45-2 entitled "General

38-19

Powers" is hereby amended to read as follows:

38-20

     45-2-50. Town of Exeter -- Municipal court. -- (a) The town council of the town of

38-21

Exeter may establish a municipal court and confer upon that court original jurisdiction,

38-22

notwithstanding any other provisions of the general laws, to hear and determine causes involving

38-23

the violation of any ordinance, including, but not limited to, municipal code violations, animal

38-24

regulation violations, traffic and parking violations, minimum housing ordinances of the town and

38-25

any violation of the provisions of chapter 24.3 of this title, entitled the "Rhode Island Housing

38-26

Maintenance and Occupancy Code"; provided, however, that any defendant found guilty of any

38-27

offense, excluding violations of the minimum housing ordinances or chapter 24.3 of this title

38-28

within the jurisdiction of the court, may within seven (7) days of the conviction, file an appeal

38-29

from the conviction to the superior court and be entitled in the latter court to a trial de novo; and

38-30

provided further, however, that any defendant found guilty of any violation of a minimum

38-31

housing ordinance or of chapter 24.3 of this title, may within seven (7) days of conviction, file an

38-32

appeal from the conviction to the fourth division of the district court and be entitled to a trial de

38-33

novo in accordance with §§ 8-8-3(a)(4) and 8-8-3.2.

38-34

     (b) With respect to violations of either municipal ordinances dealing with minimum

39-1

housing or chapter 24.3 et seq., of this title dealing with housing maintenance and occupancy, the

39-2

town council may also confer upon the municipal court, in furtherance of the court's jurisdiction,

39-3

the power to proceed according to equity:

39-4

     (1) To restrain, prevent, enjoin, abate, or correct a violation;

39-5

     (2) To order the repair, vacation, or demolition of any dwelling existing in violation; or

39-6

     (3) To otherwise compel compliance with all of the provisions of those ordinances and

39-7

statues statutes.

39-8

     (c) The town council of the town of Exeter is authorized and empowered to appoint a

39-9

judge of the municipal court. The judge shall serve for a term of two (2) years, or concurrent with

39-10

the term of each appointing council. The town council of the town is authorized and empowered

39-11

to enact ordinances governing the personnel, operation, and procedure to be followed in the court

39-12

and to establish a schedule of fees and costs, and to otherwise provide for the operation and

39-13

management of the court. The municipal court may impose sentences not to exceed thirty (30)

39-14

days in jail and impose fines not in excess of five hundred dollars ($500), or both. The court is

39-15

empowered to administer oaths, compel the attendance of witnesses, and punish persons for

39-16

contempt, and to authorize and execute search warrants to the extent the warrants could be

39-17

authorized and executed by a justice of the district court.

39-18

     SECTION 28. Section 46-12-38 of the General Laws in Chapter 46-12 entitled "Water

39-19

Pollution" is hereby amended to read as follows:

39-20

     46-12-38. Licensing of underground storage tank tightness testing. -- (a) Definitions.

39-21

As used in this section and in conjunction with this chapter these terms shall be construed to

39-22

mean:

39-23

     (1) "Test" means a tank tightness test capable of detecting a five hundredths (.05) gallon

39-24

per hour leak from any portion of an underground storage tank (including but not limited to

39-25

piping) that routinely contains petroleum products or hazardous materials while accounting for

39-26

effects such as thermal expansion or contraction of the petroleum product or hazardous materials,

39-27

vapor pockets, tank deformation, evaporation or condensation, the location of the water table, or

39-28

other conditions that could affect test results and which have been approved, in writing, by the

39-29

director for use in the state of Rhode Island.

39-30

     (2) "Tester" means an individual who performs tightness tests on underground storage

39-31

tanks.

39-32

     (3) "Testing business" means a person who employs or subcontracts with testers

39-33

in the regular course of business.

39-34

     (b) Authority of the director. The director shall promulgate rules and regulations

40-1

consistent with this chapter and with chapter 13.1 of title 46 entitled "Groundwater Protection"

40-2

for the licensing of testers and testing businesses. Nothing in this section shall limit the director's

40-3

powers and duties as set forth in this chapter.

40-4

     (c) License requirement and fee.

40-5

     (1) No person shall test underground storage tanks or operate a testing business without a

40-6

license issued by the director in accordance with this section.

40-7

     (2) The director shall charge an annual fee of one hundred dollars ($100) to each tester to

40-8

whom he or she issues a license. No licensure shall be issued unless the tester and testing business

40-9

have paid the license fee. The director shall deposit the fees collected into the water and air

40-10

protection program account created pursuant to § 42-17.1-2(z) 42-17.1-2(26).

40-11

     (3) The results of any test performed by or on behalf of an unlicensed tester or testing

40-12

business shall be considered null and void. Where it is determined that test(s) have been

40-13

performed by an unlicensed tester or testing business, the owner or operator of the underground

40-14

storage tank(s) shall, within ten (10) days of discovery, either have the underground storage

40-15

tank(s) retested by a duly licensed tester or testing business, or have the underground storage

40-16

tank(s) emptied and removed from the ground as if they had failed the test(s). Any unlicensed

40-17

tester or testing business that conducts business in the state of Rhode Island shall be strictly liable

40-18

for the cost of any retesting performed in accordance with this section.

40-19

     (4) No license shall be issued unless the tester and/or testing business shall demonstrate

40-20

that they, jointly or severally, possess liability insurance in an amount satisfactory to the director

40-21

for any environmental harm, property damage and bodily injury resulting from tank tightness

40-22

testing activities, including, but not limited to, performance of tests; the collection, calculation

40-23

and analysis of test data; handling, calibration, operation and maintenance of testing equipment;

40-24

and the preparation of test results. The amount of liability insurance shall be established by the

40-25

director.

40-26

     (5) The rules and regulations promulgated by the director in accordance with this section

40-27

may, without limitation, require that testers hold and maintain certain certifications, and/or pass

40-28

written or practical examinations as a prerequisite to licensure. The director may assess a

40-29

reasonable fee to cover the cost of any examination administered by or on behalf of the

40-30

department of environmental management.

40-31

     (d) Revocation of license. The director shall revoke the license of any tester or testing

40-32

business who fails to comply with this section or with the rules and regulations promulgated

40-33

hereunder after the director has provided the party with notice and the opportunity to be heard in

40-34

accordance with chapter 35 of title 42.

41-1

     SECTION 29. Section 46-12.5.1-12 of the General Laws in Chapter 46-12.5.1 entitled

41-2

"Oil Pollution Control" is hereby amended to read as follows:

41-3

     46-12.5.1-12. Notices of violations and compliance orders. -- (a) The director shall

41-4

follow the procedures provided in § 42-17.1-2(u) 42-17.1-2(21) in issuing any notice of violation

41-5

or compliance order authorized pursuant to this chapter or any rules, regulations, or permits

41-6

promulgated thereunder.

41-7

     (b) Where an order of the director does not otherwise specify, the person against

41-8

whom an order is entered shall, within seventy-two (72) hours of the receipt of the order

41-9

and before proceeding to install a system or means to contain, abate, control, and remove

41-10

the discharged oil, submit to the director a plan or a statement describing the system or

41-11

means that the person intends to implement.

41-12

     SECTION 30. Sections 46-12.9-5 and 46-12.9-6 of the General Laws in Chapter 46-12.9

41-13

entitled "Rhode Island Underground Storage Tank Financial Responsibility Act" are hereby

41-14

amended to read as follows:

41-15

     46-12.9-5. Purpose of fund. -- (a) The purpose of the fund shall be to facilitate the

41-16

clean-up of releases from leaking underground storage tanks, underground storage tank systems,

41-17

including those located on sites or government sites in order to protect the environment including

41-18

drinking water supplies and public health and to take necessary action to proactively prevent such

41-19

releases.

41-20

     (b) The fund shall provide reimbursement to responsible parties for the eligible costs

41-21

incurred by them as a result of releases of certain petroleum from underground storage tanks or

41-22

underground storage tank systems as provided herein. Monies in the fund shall be dispensed only

41-23

upon the order of the review board or its designee for the following purposes.

41-24

     (1) The fund shall pay not more than one million dollars ($1,000,000) per incident and up

41-25

to two million dollars ($2,000,000) in the aggregate for damages of eligible costs, as defined in

41-26

regulations promulgated hereunder and, as further defined in § 46-12.9-3 excluding legal costs

41-27

and expenses, incurred by a responsible party as a result of a release of petroleum from an

41-28

underground storage tank or underground storage tank system; provided, however, that a

41-29

responsible party shall be responsible for the first twenty thousand dollars ($20,000) of said

41-30

eligible costs;

41-31

     (2) Reimbursement for any third party claim including, but not limited to, claims for

41-32

bodily injury, property damage and damage to natural resources which are asserted against a

41-33

responsible party and which have arisen as a result of a release of petroleum from an underground

41-34

storage tank or underground storage tank system in an amount not to exceed one million dollars

42-1

($1,000,000) for each release as set forth in subsection (2) (b)(1) of this section; provided, that

42-2

such claims are found by the review board to be justified, reasonable, related to the release of

42-3

petroleum and not excessive or spurious in nature; and

42-4

     (3) Eligible costs incurred by the department in carrying out the investigative, remedial

42-5

and corrective action activities at sites of a petroleum release associated with an underground

42-6

storage tank or underground storage tank system where the responsible party fails to comply with

42-7

an order of the department to take such corrective action. In the event of such failure, the

42-8

department may access the fund to perform the ordered work and shall proceed to recover from

42-9

the responsible party on behalf of the fund any amount expended from the fund by the

42-10

department.

42-11

     (4) Nothing contained in this chapter shall be construed to prevent subrogation by the

42-12

state of Rhode Island against any responsible party other than the owner and/or operator for all

42-13

sums of money which the fund shall be obligated to pay hereunder plus reasonable attorneys' fees

42-14

and costs of litigation and such right of subrogation is hereby created.

42-15

     (5) Eligible costs incurred by the department to support the fund, including, but not

42-16

limited to, all personnel support to process and review of claims in order to formulate

42-17

recommendations for reimbursement for consideration by the review board, and providing

42-18

meeting space for board meetings; provided, however, that no more than five hundred and fifty

42-19

thousand dollars ($550,000) shall be dispensed from the fund for administrative purposes during

42-20

any fiscal year. The department shall directly access the fund, pursuant to the limits set forth in §

42-21

46-12.9-5(1) above subdivision 46-12.9-5(b)(1), to pay for such expenses.

42-22

     (6) Grants to any third party for purposes of removal of underground storage tanks and/or

42-23

replacement of underground storage tanks with other fuel storage and distribution systems,

42-24

including aboveground storage tanks, when such removal and/or replacement will minimize the

42-25

potential future exposure of the fund to major expenses related to reimbursement of costs incurred

42-26

in response or remediation should a future release occur. Grants under this section shall be limited

42-27

to fifty thousand dollars ($50,000) per site and shall be in addition to any eligible reimbursement

42-28

for clean up expenses at that site.

42-29

     46-12.9-6. Eligibility. -- (a) In order to be eligible for reimbursement from the fund for

42-30

eligible costs a responsible party must be subject to financial responsibility as required by the

42-31

EPA (40 CFR part 280 subpart H) and:

42-32

     (1) Have substantially complied with all state technical requirements for underground

42-33

storage tanks and underground storage tank systems as promulgated by the department of

42-34

environmental management pursuant to chapter 12 of this title and chapter 17.1 of title 42,

43-1

including, but not limited to, requirements for registration, proper installation, spill containment,

43-2

line leak detection, corrosion protection, leak detection, tank tightness testing, inventory control,

43-3

closure and leak or spill reporting;

43-4

     (2) Have incurred an eligible cost in excess of the deductible amount specified in § 46-

43-5

12.9-5(2) 46-12.9-5(b)(1) whether for clean-up or related matters or for claims of third parties as

43-6

set forth in § 46-12.9-3 resulting from a release of petroleum, subject to the motor and special

43-7

fuels tax from an underground storage tank or underground storage tank system. In order to apply

43-8

for reimbursement from the fund, it shall not be necessary that the third party and the responsible

43-9

party complete adjudication of any claim before submission to the review board; provided,

43-10

however, that all such claims shall be reasonably verified and must be demonstrated to the

43-11

reasonable satisfaction of the review board in order to be considered eligible for reimbursement.

43-12

     (b) Notwithstanding the financial responsibility requirement of this section, responsible

43-13

parties may be eligible for reimbursement of eligible costs incurred for government sites provided

43-14

that:

43-15

     (1) A city, town, the state or a state agency is the responsible party for a release at the

43-16

government site and was the owner of the site at the time of the release;

43-17

     (2) A city, town, the state or a state agency is the responsible party and owner of the

43-18

government site at the time of application on which a release occurred prior to the city, town or

43-19

state agency's ownership, provided that the government entity purchased the property prior to

43-20

March 1, 1998; or

43-21

     (3) A city, town, the state or a state agency was the responsible party at the time of the

43-22

release and the government site is owned by a successor in interest at the time of application.

43-23

     (c) Notwithstanding the requirement that the released petroleum be subject to the motor

43-24

and special fuels tax, underground storage tanks containing petroleum products for which the

43-25

motor and special fuels tax is inapplicable including, but not limited to, underground storage

43-26

tanks used for the distribution of No. 2 heating oil, used/waste oil, kerosene or other materials as

43-27

deemed appropriate by the review board may be eligible for reimbursement with the following

43-28

exceptions:

43-29

     (1) Underground storage tanks containing heating or fuel oils used solely for onsite

43-30

consumption shall not be eligible.

43-31

     (2) Underground storage tanks exempted from the department's "regulations for

43-32

underground storage facilities used for petroleum products and hazardous materials" under

43-33

Section 5.03 and Section 9.01 (A-D) shall not be eligible.

43-34

     SECTION 31. Section 46-25-25 of the General Laws in Chapter 46-25 entitled

44-1

"Narragansett Bay Commission" is hereby amended to read as follows:

44-2

     46-25-25. Orders as to pretreatment of sewage. -- (a) Without limiting the generality

44-3

of the foregoing, the authority hereby vested in the commission shall include the authority to

44-4

limit, reject, or prohibit any direct or indirect discharge of pollutants or combination of pollutants,

44-5

as defined by applicable federal or state law, into the facilities of the project; to require that any

44-6

person or class of user shall cause pollutants from his or her property, prior to their entry into the

44-7

facilities of the project, to be submitted to such pretreatment standards and requirements as the

44-8

commission may prescribe by rule or regulation. The commission shall prescribe such rules and

44-9

regulations for pretreatment as in the opinion of the commission:

44-10

     (1) Are required by applicable federal or state law,

44-11

     (2) Are required under the terms of the project's federal permit(s), or

44-12

     (3) Are necessary and appropriate for the project.

44-13

     (b) The commission shall have the authority to issue or deny permits to any person for

44-14

the direct or indirect discharge of any pollutants into the facilities of the project; to require the

44-15

development of a compliance schedule by each person to insure compliance with such

44-16

pretreatment as the commission may prescribe. No person shall discharge any pollutant into the

44-17

facilities, except as in compliance with the provisions of this section, and any rules and

44-18

regulations promulgated hereunder, and pursuant to the terms and conditions of a permit.

44-19

     (c) The commission may, by regulation, order, permit, or otherwise require any person

44-20

who discharges into the facilities of the project to:

44-21

     (1) Establish and maintain such records;

44-22

     (2) Make such reports;

44-23

     (3) Install, calibrate, use, and maintain such monitoring equipment or methods, including

44-24

where appropriate, biological monitoring methods;

44-25

     (4) Sample such discharges and effluents, in accordance with such methods, at such

44-26

locations, at such intervals, and in such manner as the commission shall prescribe; and

44-27

     (5) Provide such other information relating to discharges into the facilities of the project

44-28

as the commission may reasonably require to insure compliance with prescribed pretreatment.

44-29

The information shall include, but not be limited to, those records, reports, and procedures

44-30

required by applicable federal law.

44-31

     (d) Notwithstanding any other provision of this section, the commission shall have the

44-32

authority, and shall prescribe the appropriate procedures, after informal notice to the discharger,

44-33

immediately and effectively to halt or prevent any discharge of pollutants into the facilities of the

44-34

project which reasonably appears to present an imminent endangerment to the health or welfare

45-1

of persons. Halting or preventing may include, but shall not be limited to, physically plugging

45-2

and/or blocking the discharger's connection to the facilities of the project. The commission shall

45-3

also have the authority, and shall prescribe the appropriate procedures, which shall include notice

45-4

to the affected discharger and an opportunity to respond, to hold, or prevent any discharge into

45-5

the facilities of the project which presents or may present an endangerment to the environment or

45-6

which threatens to interfere with the operation of the project. Procedures prescribed under this

45-7

subsection which comply in form with those provided in § 42-17.1-2(u) 42-17.1-2(21) shall be

45-8

deemed to be appropriate.

45-9

     SECTION 32. Section 23-1-46 of the General Laws in Chapter 23-1 entitled "Department

45-10

of Health" is hereby amended to read as follows:

45-11

     23-1-46. Insurers. -- (a) Beginning in the fiscal year 2007, each insurer licensed or

45-12

regulated pursuant to the provisions of chapters 18, 19, 20, and 41 of title 27 shall be assessed a

45-13

child immunization assessment and an adult immunization assessment for the purposes set forth

45-14

in this section. The department of health shall make available to each insurer, upon its request,

45-15

information regarding the department of health's immunization programs and the costs related to

45-16

the program. Further, the department of health shall submit to the general assembly an annual

45-17

report on the immunization programs and cost related to the programs, on or before February 1 of

45-18

each year. Annual assessments shall be based on direct premiums written in the year prior to the

45-19

assessment and for the child immunization program shall not include any Medicare Supplement

45-20

Policy (as defined in § 27-18-2.1(g) 27-18.2-1(g)), Medicaid or Medicare premiums. Adult

45-21

influenza immunization program annual assessments shall include contributions related to the

45-22

program costs from Medicare, Medicaid and Medicare Managed Care. As to accident and

45-23

sickness insurance, the direct premium written shall include, but is not limited to, group, blanket,

45-24

and individual policies. Those insurers assessed greater than ten thousand dollars ($10,000) for

45-25

the year shall be assessed four (4) quarterly payments of twenty-five percent (25%) of their total

45-26

assessment. Beginning July 1, 2001, the annual rate of assessment shall be determined by the

45-27

Director director of Health health in concurrence with the Primary Payors primary payors, those