2024 -- H 8325 SUBSTITUTE A

========

LC006023/SUB A/2

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     

     Introduced By: Representatives Blazejewski, and Chippendale

     Date Introduced: May 30, 2024

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

1

ARTICLE I -- STATUTORY REENACTMENT

2

     SECTION 1. It is the express intention of the General Assembly to reenact the entirety of

3

Chapters 49 to the end of Title 42 of the General Laws of Rhode Island, including every chapter

4

and section therein and any chapters and sections thereof not included in this act may be, and are

5

hereby, reenacted as if fully set forth herein.

6

     SECTION 2. Section 42-61-14 of the General Laws in Chapter 42-61 entitled "State

7

Lottery" is hereby amended to read as follows:

8

     42-61-14. Payment of prizes to minors and persons under legal disabilities.

9

     (a) If the person entitled to a prize or any winning ticket is under the age of eighteen (18)

10

years, the director shall direct payment to the minor by depositing the amount of the prize in any

11

financial institution to the credit of a member of the minor’s family or legal guardian of the minor

12

as custodian for that minor. The person named as custodian shall have the same duties and powers

13

as a person designated as a custodian in a manner prescribed by the “Rhode Island Uniform Gifts

14

to Minors Act” “Rhode Island Uniform Transfers to Minors Act”.

15

     (b) If a person entitled to a prize or any winning ticket is under any other legal disability,

16

the director shall direct payment to a fiduciary responsible for that person pursuant to the laws of

17

this state.

18

     (c) The director shall be relieved of all further liability upon payment of a prize to a minor

19

or person under a legal disability pursuant to this section.

 

1

     SECTION 3. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism

2

and Development" is hereby amended to read as follows:

3

     42-63.1-3. Distribution of tax.

4

     (a) For returns and tax payments received on or before December 31, 2015, except as

5

provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax

6

collected from residential units offered for tourist or transient use through a hosting platform, shall

7

be distributed as follows by the division of taxation and the city of Newport:

8

     (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

9

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

10

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

11

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

12

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

13

Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided

14

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

15

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau

16

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

17

Convention Authority of the city of Providence established pursuant to the provisions of chapter

18

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

19

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts

20

attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island

21

commerce corporation as established in chapter 64 of this title.

22

     (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the

23

hotel that generated the tax is physically located, to be used for whatever purpose the city or town

24

decides.

25

     (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

26

corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-

27

Warwick Convention and Visitors’ Bureau.

28

     (b) For returns and tax payments received after December 31, 2015, except as provided in

29

§ 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from

30

residential units offered for tourist or transient use through a hosting platform, shall be distributed

31

as follows by the division of taxation and the city of Newport:

32

     (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

33

63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-

34

five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

 

LC006023/SUB A/2 - Page 2 of 106

1

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

2

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of

3

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

4

title.

5

     (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

6

twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent

7

(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically

8

located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick

9

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

10

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

11

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

12

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

13

(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically

14

located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick

15

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

16

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

17

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

18

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

19

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

20

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%)

21

of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

22

title.

23

     (5) With respect to the tax generated by hotels in districts other than those set forth in

24

subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given

25

to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

26

percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

27

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

28

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax

29

shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

30

     (c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax

31

collected from residential units offered for tourist or transient use through a hosting platform shall

32

be distributed as follows by the division of taxation and the city of Newport: twenty-five percent

33

(25%) of the tax shall be given to the city or town where the residential unit that generated the tax

34

is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island

 

LC006023/SUB A/2 - Page 3 of 106

1

commerce corporation established in chapter 64 of this title.

2

     (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

3

on the promotion and marketing of Rhode Island as a destination for tourists or businesses an

4

amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

5

chapter for the fiscal year.

6

     (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

7

received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-

8

12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential

9

units offered for tourist or transient use through a hosting platform, shall be distributed in

10

accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this

11

section by the division of taxation and the city of Newport.

12

     (f) For returns and tax payments received on or after July 1, 2018, except as provided in §

13

42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from

14

residential units offered for tourist or transient use through a hosting platform, shall be distributed

15

as follows by the division of taxation and the city of Newport:

16

     (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

17

63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-

18

five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

19

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

20

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the

21

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

22

     (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

23

thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%)

24

of the tax shall be given to the city or town where the hotel that generated the tax is physically

25

located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick

26

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

27

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

28

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

29

thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)

30

of the tax shall be given to the city or town where the hotel that generated the tax is physically

31

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

32

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

33

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

34

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

 

LC006023/SUB A/2 - Page 4 of 106

1

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

2

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

3

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%)

4

of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

5

title.

6

     (5) With respect to the tax generated by hotels in districts other than those set forth in

7

subsections (b)(1) (f)(1) through (b)(4) (f)(4) of this section, forty-five percent (45%) of the tax

8

shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located,

9

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

10

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

11

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of

12

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

13

title.

14

     (g) For returns and tax payments received on or after July 1, 2019, except as provided in §

15

42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from

16

residential units offered for tourist or transient use through a hosting platform, shall be distributed

17

as follows by the division of taxation and the city of Newport:

18

     (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-

19

five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent

20

(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated

21

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

22

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent

23

(25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

24

64 of this title.

25

     (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent

26

(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall

27

be given to the city or town where the hotel or residential unit that generated the tax is physically

28

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

29

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

30

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

31

     (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent

32

(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall

33

be given to the city or town where the hotel or residential unit that generated the tax is physically

34

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

 

LC006023/SUB A/2 - Page 5 of 106

1

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

2

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

3

     (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five

4

percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that

5

generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater

6

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

7

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

8

chapter 64 of this title.

9

     (5) With respect to the tax generated in districts other than those set forth in subsections

10

(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional

11

tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-

12

five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit

13

that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater

14

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five

15

percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in

16

chapter 64 of this title.

17

     SECTION 4. Section 42-63.1-14 of the General Laws in Chapter 42-63.1 entitled "Tourism

18

and Development" is hereby amended to read as follows:

19

     42-63.1-14. Offering residential units through a hosting platform.

20

     (a) For any rental property offered for tourist or transient use on a hosting platform that

21

collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-

22

18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering

23

the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform

24

from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit

25

for tourist or transient use. A hosting platform shall comply with the requirement imposed upon

26

room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to

27

apply. The division of taxation shall at the request of a city, town, or municipality confirm whether

28

a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i).

29

     (b) Any short-term rental property listed for rent on the website of any third-party hosting

30

platform that conducts business in Rhode Island shall be registered with the department of business

31

regulation. The registration shall provide the information necessary to identify the property

32

pursuant to subsection (d) of this section. For purposes of this section, the term “short-term rental”

33

means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to

34

exceed thirty (30) nights at a time.

 

LC006023/SUB A/2 - Page 6 of 106

1

     (c) The department of business regulation shall contact all hosting platforms that list

2

property in Rhode Island on their website for rent and that submit hotel taxes to the division of

3

taxation and shall provide notice of the registration requirement, pursuant to this section, instructing

4

the hosting platforms to notify their listed properties to register with the department of business

5

regulation by December 31, 2021, or be subject to fines pursuant to § 42-63.1-14.1 subsection (i)

6

of this section.

7

     (d) The state registration pursuant to this section shall include:

8

     (1) The principal place of business of the owner, or if outside the state, the agent for service

9

of process or property manager for the owner;

10

     (2) The phone number of the owner of the property and/or property manager;

11

     (3) The email address of the property owner and/or property manager;

12

     (4) The address of the rental property;

13

     (5) The number of rooms for rent at the property;

14

     (6) Whether the registrant rents or owns; and

15

     (7) Intended use (entire space, private room, or shared space).

16

     (e) The assigned registration number shall consist of numeric and alpha characters, the

17

alpha characters shall correspond to the city/town where the property is located and shall be uniform

18

for the remaining properties in said city/town.

19

     (f) The department of business regulation shall notify all hosting platforms to contact all

20

listed properties by December 31, 2021, to ensure compliance with this section and if the listed

21

properties are not duly registered after six (6) months, the hosting platform shall remove the

22

property listing from its website.

23

     (g) The department of business regulation shall promulgate rules and regulations to

24

correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to

25

property owners registering with the department pursuant to this section.

26

     (h) The department of business regulation shall create an online database to store all

27

registered short-term rental units, and each unit shall have an online identification number in said

28

database to correspond with subsection (e) of this section.

29

     (i) Any owner of the property who or that fails to register with the department of business

30

regulation as prescribed herein and lists the property as a short-term rental on a hosting platform

31

website shall be subject to a civil fine as follows:

32

     (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-compliance;

33

     (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non-

34

compliance; and

 

LC006023/SUB A/2 - Page 7 of 106

1

     (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance.

2

     SECTION 5. Section 42-64.10-4 of the General Laws in Chapter 42-64.10 entitled

3

"Quonset Development Corporation" is hereby amended to read as follows:

4

     42-64.10-4. Definitions.

5

     (a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-64-4

6

42-64-3 unless this chapter provides a different meaning or unless the context indicates a different

7

meaning or intent.

8

     (b) Within this chapter, the following words and terms shall have the following meanings

9

unless the context indicates a different meaning or intent:

10

     (1) “Board” means the board of directors of the corporation.

11

     (2) “Chairperson” means the chairperson of the board of directors of the corporation.

12

     (3) “Corporation” means the Quonset Development Corporation.

13

     (4) “Quonset Business Park” means former Navy lands in the town of North Kingstown,

14

and lands related thereto, and personal property thereon, which are or have been owned, leased,

15

managed and/or under the control of the economic development corporation.

16

     SECTION 6. Section 42-64.10-7 of the General Laws in Chapter 42-64.10 entitled

17

"Quonset Development Corporation" is hereby amended to read as follows:

18

     42-64.10-7. Directors, officers and employees.

19

     (a) Directors.

20

     (1) The powers of the corporation shall be vested in a board of directors consisting of eleven

21

(11) members. The membership of the board shall consist of the executive director of the Rhode

22

Island economic development corporation as chairperson, (who shall vote only in the event of a

23

tie), six (6) members appointed by the governor, with the advice and consent of the senate, two (2)

24

members appointed by the town council of the town of North Kingstown, one member appointed

25

by the town council of the town of Jamestown, and one member appointed by the town council of

26

the town of East Greenwich. The initial members of the board shall be divided into three (3) classes

27

and shall serve initial terms on the board of directors as follows: two (2) of the directors appointed

28

by the governor; and one of the directors appointed by the town council of the town of North

29

Kingstown shall be appointed for an initial term of one year; two (2) of the directors appointed by

30

the governor, one director appointed by the town council of the town of North Kingstown and the

31

director appointed by the town of East Greenwich shall be appointed for an initial term of two (2)

32

years; and two (2) of the directors appointed by the governor and one director appointed by the

33

town of Jamestown shall be appointed for an initial term of three (3) years. Upon expiration of each

34

initial term and upon the expiration of each term thereafter, a successor shall be appointed by the

 

LC006023/SUB A/2 - Page 8 of 106

1

same authority that made the initial appointment, and in the case of appointments by the governor

2

with the advice and consent of the senate, to serve for a term of three (3) years so that members of

3

the board of directors shall serve for staggered terms of three (3) years each. A vacancy on the

4

board, other than by expiration, shall be filled in the same manner as an original appointment, but

5

only for the unexpired portion of the term. If a vacancy occurs with respect to one of the directors

6

appointed by the governor when the senate is not in session, the governor shall appoint a person to

7

fill the vacancy, but only until the senate shall next convene and give its advice and consent to a

8

new appointment. A member shall be eligible to succeed himself or herself. Appointed directors

9

shall not serve more than two (2) successive three (3) year terms but may be reappointed after not

10

being a director for a period of at least twelve (12) months. Each appointed director shall hold office

11

for the term for which the director is appointed and until the director’s successor shall have been

12

appointed and qualified, or until the director’s earlier death, resignation or removal. Except for

13

members of the town council of the town of North Kingstown, who may serve as members of the

14

board of directors, no director shall be an elected official of any governmental entity.

15

     (2) The directors shall receive no compensation for the performance of their duties under

16

this chapter, but each director shall be reimbursed for his or her reasonable expenses incurred in

17

carrying out those duties. A director may engage in private employment, or in a profession or

18

business.

19

     (3) Meetings. An annual meeting of the directors shall be held during the month of October

20

of each year for the purposes of electing and appointing officers and reviewing and considering for

21

approval the budget of the corporation. Regular meetings of the directors shall be held at least once

22

in each calendar quarter, at the call of the chairperson or secretary, or in accordance with an annual

23

schedule of meetings adopted by the board. Special meetings may be called for any purposes by

24

the chairperson or the secretary and as provided for in the bylaws of the corporation.

25

     (4) A majority of the directors then in office, but not less than five (5) directors, shall

26

constitute a quorum, and any action to be taken by the corporation under the provisions of this

27

chapter, may be authorized by resolution approved by a majority of the directors present and

28

entitled to a vote at any regular or special meeting at which a quorum is present. A vacancy in the

29

membership of the board of directors shall not impair the right of a quorum to exercise all of the

30

rights and perform all of the duties of the corporation.

31

     (5) Any action taken by the corporation under the provisions of this chapter may be

32

authorized by a vote at any regular or special meeting, and each vote shall take effect immediately.

33

     (6) The board of directors shall establish an audit committee and a governance committee,

34

which shall advise: (i) the board with the respect to the best practices of governance; and (ii) the

 

LC006023/SUB A/2 - Page 9 of 106

1

board, members of the board, and officers with respect to conflicts of interest, corporate ethics and

2

responsibilities, and the maintenance of the public trust; the members of the audit committee and

3

the governance committee shall be appointed by the chairperson with the advice of the board of

4

directors. In addition to the audit and the governance committee, the board may establish bylaw or

5

with the approval of the chairperson such other committees as it deems appropriate.

6

     (7) The board shall prescribe the application of the cash flow of the corporation, in the

7

following order of priority:

8

     (i) To debt service, including without limitation, sinking funds established in connection

9

with any financing;

10

     (ii) To operating expenses;

11

     (iii) To capital expenses;

12

     (iv) To reserve funds as may be established by the board, from time to time; and

13

     (v) To the economic development corporation for application to statewide economic

14

development.

15

     (8) The board shall establish by bylaw limits on the expenditure of corporation funds

16

without approval of the board.

17

     (9) The approval of the board shall be required for any recommendation to the economic

18

development corporation board of directors for the issuance of bonds or notes or borrowing money

19

on behalf of the corporation or for the exercise of eminent domain on behalf of the corporation.

20

     (b) Officers. The officers of the corporation shall include a chairperson, a managing

21

director who shall be the chief executive officer of the corporation, a vice-chairperson, a secretary,

22

and a finance director, as herein provided, and such other officers as the board may from time to

23

time establish.

24

     (1) Chairperson. The executive director of the economic development corporation shall be

25

the chairperson of the board and shall appoint the managing director with the concurrence of the

26

board, appoint committee members, approve the corporation’s annual operating and capital budget,

27

approve land sale prices, lease rents, and economic development incentives, and approve numbers

28

and types of employees and staff of the corporation, and preside at meetings of the board.

29

     (2) Managing director. The chief executive officer of the corporation shall be managing

30

director of the corporation, who shall be appointed by the chairperson with the concurrence of the

31

board. The managing director of the corporation shall be entitled to receive for his or her services

32

any reasonable compensation as the board of directors may determine. The board of directors may

33

vest in the managing director the authority to appoint staff members and to determine the amount

34

of compensation each individual shall receive.

 

LC006023/SUB A/2 - Page 10 of 106

1

     (3) Vice-chairperson. The board of directors shall from among its members elect a vice-

2

chairperson who shall preside at meetings in the absence of the chairperson and have such other

3

duties and powers as the directors may from time to time prescribe.

4

     (4) Other officers. The board shall appoint a secretary, a director of finance, the duties of

5

whom shall be prescribed in the bylaws of the corporation, and such additional officers and staff

6

members as they shall deem appropriate and shall determine the amount of reasonable

7

compensation, if any, each shall receive.

8

     (5) With the exception of the chairperson, any number of offices may be held by the same

9

person, unless the bylaws provide otherwise.

10

     (c) Employees.

11

     (1) The corporation may have such numbers and types of employees as the board, with the

12

approval of the chairperson, shall determine upon the recommendation of the managing director.

13

The board, upon the recommendation of the managing director, may authorize entering into

14

agreements with the economic development corporation for any duties or functions to be performed

15

by employees, staff, or agents of the corporation.

16

     (2) No full-time employee of the corporation shall, during the period of his or her

17

employment by the corporation, engage in any other private employment, profession or business,

18

except with the approval of the board of directors.

19

     (3) Employees of the corporation shall not, by reason of their employment, be deemed to

20

be employees of the state for any purpose, any other provision of the general laws to the contrary

21

notwithstanding, including, without limiting, the generality of the foregoing, chapters 29, 39, and

22

42 of title 28 and chapters 4, 8, 9, and 10 of title 36.

23

     SECTION 7. Section 42-64.13-8 of the General Laws in Chapter 42-64.13 entitled "Rhode

24

Island Regulatory Reform Act" is hereby amended to read as follows:

25

     42-64.13-8. Regulatory analysis responsibilities.

26

     The office of regulatory reform shall have the following regulatory analysis and reporting

27

responsibilities:

28

     (1) The office of regulatory reform shall, upon the conclusion of each fiscal year, prepare

29

and publish a report on the regulatory processes of state and municipal agencies and permitting

30

authorities through a review and an analysis of proposed and existing rules and regulations to: (i)

31

Encourage agencies to eliminate, consolidate, simplify, expedite, or otherwise improve permits,

32

permitting procedures, and paperwork burdens affecting businesses, municipal government

33

undertakings, industries, and other matters of economic development impact in the state; (ii)

34

Analyze the impact of proposed and existing rules and regulations on matters such as public health,

 

LC006023/SUB A/2 - Page 11 of 106

1

safety and welfare, including job creation, and make recommendations for simplifying regulations

2

and regulatory processes of state and municipal agencies and permitting authorities; (iii) Propose

3

to any state or municipal agency consideration for amendment or repeal of any existing rules or

4

procedures that may be obsolete, harmful to the economy or job growth in the state, or excessively

5

burdensome with respect to any state or federal statutes or regulations; and (iv) Assist and

6

coordinate with all agencies during the periodic review of rules required by § 42-35-3.4 of the

7

administrative procedures act.

8

     (2) The ombudsman of the department of business regulation shall implement the

9

provisions of § 42-35.1-1 chapter 35.1 of title 42, entitled small business regulatory fairness and

10

in administrative procedures, and shall be the small business regulatory enforcement office officer

11

pursuant to § 42-35.1-5.

12

     SECTION 8. Section 42-64.14-13 of the General Laws in Chapter 42-64.14 entitled "The

13

I-195 Redevelopment Act of 2011" is hereby amended to read as follows:

14

     42-64.14-13. Planning, permitting, appeals and development.

15

     (a) The commission shall exercise its powers in a manner consistent with development

16

plans approved for the I-195 redevelopment district by the commission. Such plans may be

17

prepared without limitation by the commission in order to achieve the purposes of this chapter.

18

Development in the district, whether by the commission or otherwise shall be subject to the plans

19

prepared by the commission and the commission plans shall be consistent with the city of

20

Providence comprehensive plan adopted by the city pursuant to 45-22-2.1 45-22.2-1 et seq. and the

21

city of Providence zoning ordinances pursuant to § 45-24-27 et seq. as previously enacted by the

22

city of Providence, and as may be enacted be enacted and/or amended from time to time through

23

July 1, 2012, or enacted thereafter with the consent of the commission. Approved plans for the I-

24

195 redevelopment district may be considered, in whole or part as appropriate, for adoption as an

25

element of the state guide plan by the state planning council, but shall not be subject to the state

26

guide plan or any other approval provisions related thereto.

27

     (b) The commission shall serve as the sole permitting authority for all development within

28

the district, as defined in § 37-5-7 37-5-8, pursuant to the powers granted to the commission by §§

29

42-64.14-7 and 42-64.14-8 of this chapter. The state fire marshal and the state building code

30

commissioner shall issue any necessary permits related to fire safety and building code compliance

31

respectively. The commission shall seek the cooperation of the state building code commissioner

32

and the state fire marshal to expedite all necessary permits and approvals for development within

33

the district.

34

     (c) The commission shall have authority to approve and/or mandate an accelerated plan

 

LC006023/SUB A/2 - Page 12 of 106

1

review process, which may include the implementation of phased and/or fast-track development,

2

which is defined as the initiation of development prior to final issuance of all permits and approvals

3

and/or the completion of final project design and construction plans.

4

     (d) The commission shall create for the redevelopment of its properties and parcels sold by

5

its design guidelines in consultation with the state historic preservation officer.

6

     (e) All appeals timely filed pursuant to chapter 42-35 of the general laws 35 of title 42

7

entitled the Administrative Procedures Act with the Rhode Island superior court relative to permits

8

and approvals shall be accelerated and given priority and advanced on the calendar of the Rhode

9

Island superior court.

10

     (f) Under no circumstances shall the commission establish, authorize, zone, plan, or permit

11

in the district a so-called “casino” or any form of gambling, including but not limited to those

12

activities governed by title 41 of the Rhode Island general laws, so-called “video-gambling” or any

13

lotteries whatsoever except for the sale of lottery tickets pursuant to title 42, section 61 of the

14

general laws chapter 61 of title 42. Furthermore, upon conveyance, but in any event before

15

approving any project, development, or redevelopment, the commission shall ensure that a deed

16

restriction, running to the benefit of the city of Providence and the state, is recorded against the

17

subject property effectuating and memorializing such restriction. The aforementioned restriction

18

shall run with the land and be binding upon all successors and assign assigns. Any deed restriction

19

conveyed to the state pursuant to this subsection may be waived only by statute, resolution or other

20

action by the general assembly which complies with the constitutional requirements for the

21

expansion of gambling.

22

     SECTION 9. Sections 42-64.19-3 and 42-64.19-7 of the General Laws in Chapter 42-64.19

23

entitled "Executive Office of Commerce" are hereby amended to read as follows:

24

     42-64.19-3. Executive office of commerce. [Effective January 1, 2024.]

25

     (a) There is hereby established within the executive branch of state government an

26

executive office of commerce effective February 1, 2015, to serve as the principal agency of the

27

executive branch of state government for managing the promotion of commerce and the economy

28

within the state and shall have the following powers and duties in accordance with the following

29

schedule:

30

     (1) On or about February 1, 2015, to operate functions from the department of business

31

regulation;

32

     (2) On or about April 1, 2015, to operate various divisions and functions from the

33

department of administration;

34

     (3) On or before September 1, 2015, to provide to the Senate and the House of

 

LC006023/SUB A/2 - Page 13 of 106

1

Representatives a comprehensive study and review of the roles, functions, and programs of the

2

department of administration and the department of labor and training to devise recommendations

3

and a business plan for the integration of these entities with the office of the secretary of commerce.

4

The governor may include such recommendations in the Fiscal Year 2017 budget proposal; and

5

     (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce

6

and housing who shall report directly to the secretary of commerce. On July 1, 2022, the deputy

7

secretary of commerce and housing shall succeed to the position of secretary of housing, and the

8

position of deputy secretary of commerce and housing shall cease to exist under this chapter. All

9

references in the general laws to the deputy secretary of commerce and housing shall be construed

10

to mean the secretary of housing. The secretary of housing shall be appointed by and report directly

11

to the governor and shall assume all powers, duties, and responsibilities formerly held by the deputy

12

secretary of commerce and housing. Until the formation of the new department of housing pursuant

13

to chapter 64.34 of this title, the secretary of housing shall reside within the executive office of

14

commerce for administrative purposes only. The secretary of housing shall:

15

     (i) Prior to hiring, have completed and earned a minimum of a master’s graduate degree in

16

the field of urban planning, economics, or a related field of study or possess a juris doctor law

17

degree. Preference shall be provided to candidates having earned an advanced degree consisting of

18

an L.L.M. law degree or Ph.D. in urban planning or economics. Qualified candidates must have

19

documented five (5) years’ full-time experience employed in the administration of housing policy

20

and/or development;

21

     (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and

22

developing a housing plan, including, but not limited to, the development of affordable housing

23

opportunities to assist in building strong community efforts and revitalizing neighborhoods;

24

     (iii) Coordinate with all agencies directly related to any housing initiatives and participate

25

in the promulgation of any regulation having an impact on housing including, but not limited to,

26

the Rhode Island housing and mortgage finance corporation, the coastal resources management

27

council (CRMC), and state departments including, but not limited to: the department of

28

environmental management (DEM), the department of business regulation (DBR), the department

29

of transportation (DOT) and statewide planning, and the Rhode Island housing resources

30

commission;

31

     (iv) Coordinate with the housing resources commission to formulate an integrated housing

32

report to include findings and recommendations to the governor, speaker of the house, senate

33

president, each chamber’s finance committee, and any committee whose purview is reasonably

34

related to, including, but not limited to, issues of housing, municipal government, and health on or

 

LC006023/SUB A/2 - Page 14 of 106

1

before December 31, 2021, and annually thereafter which report shall include, but not be limited

2

to, the following:

3

     (A) The total number of housing units in the state with per community counts, including

4

the number of Americans with Disabilities Act compliant special needs units;

5

     (B) The occupancy and vacancy rate of the units referenced in subsection (a)(4)(iv)(A);

6

     (C) The change in the number of units referenced in subsection (a)(4)(iv)(A), for each of

7

the prior three (3) years in figures and as a percentage;

8

     (D) The number of net new units in development and number of units completed since the

9

prior report;

10

     (E) For each municipality the number of single-family, two-family (2), and three-family

11

(3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful

12

description of current conditions, including a statewide sum of each unit type;

13

     (F) The total number of units by income type;

14

     (G) A projection of the number of status quo units;

15

     (H) A projection of the number of units required to meet housing formation trends;

16

     (I) A comparison of regional and other similarly situated state funding sources that support

17

housing development including a percentage of private, federal, and public support;

18

     (J) A reporting of unit types by number of bedrooms for rental properties including an

19

accounting of all:

20

     (I) Single-family units;

21

     (II) Accessory dwelling units;

22

     (III) Two-family (2) units;

23

     (IV) Three-family (3) units;

24

     (V) Multi-unit sufficiently delineated units;

25

     (VI) Mixed use sufficiently delineated units; and

26

     (VII) Occupancy and vacancy rates for the prior three (3) years;

27

     (K) A reporting of unit types by ownership including an accounting of all:

28

     (I) Single-family units;

29

     (II) Accessory dwelling units;

30

     (III) Two-family (2) units;

31

     (IV) Three-family (3) units;

32

     (V) Multi-unit sufficiently delineated units;

33

     (VI) Mixed use sufficiently delineated units; and

34

     (VII) Occupancy and vacancy rates for the prior three (3) years;

 

LC006023/SUB A/2 - Page 15 of 106

1

     (L) A reporting of the number of applications submitted or filed for each community

2

according to unit type and an accounting of action taken with respect to each application to include,

3

approved, denied, appealed, approved upon appeal, and if approved, the justification for each

4

approval;

5

     (M) A reporting of permits for each community according to affordability level that were

6

sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for

7

each approval;

8

     (N) A reporting of affordability by municipality that shall include the following:

9

     (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair-

10

market rate, and above-market-rate units; including the average and median costs of those units;

11

     (II) The percent and number of units of extremely low-, very low-, low-, and moderate-

12

income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24

13

of title 45; including the average and median costs of those units;

14

     (III) The percent and number of units for the affordability levels above moderate-income

15

housing, including a comparison to fair-market rent and fair-market homeownership; including the

16

average and median costs of those units;

17

     (IV) The percentage of cost burden by municipality with population equivalent;

18

     (V) The percentage and number of home financing sources, including all private, federal,

19

state, or other public support; and

20

     (VI) The cost growth for each of the previous five (5) years by unit type at each

21

affordability level, by unit type;

22

     (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms

23

and providing an assessment of the state’s existing housing stock and enumerating any risks to the

24

public health from that housing stock, including, but not limited to: the presence of lead, mold, safe

25

drinking water, disease vectors (insects and vermin), and other conditions that are an identifiable

26

health detriment. Additionally, the report shall provide the percentage of the prevalence of health

27

risks by age of the stock for each community by unit type and number of bedrooms; and

28

     (P) A recommendation shall be included with the report required under this section that

29

shall provide consideration to any and all populations, ethnicities, income levels, and other relevant

30

demographic criteria determined by the secretary, and with regard to any and all of the criteria

31

enumerated elsewhere in the report separately or in combination, provide recommendations to

32

resolve any issues that provide an impediment to the development of housing, including specific

33

data and evidence in support of the recommendation. All data and methodologies used to present

34

evidence are subject to review and approval of the chief of revenue analysis, and that approval shall

 

LC006023/SUB A/2 - Page 16 of 106

1

include an attestation of approval by the chief to be included in the report;

2

     (v) Have direct oversight over the office of housing and community development (OHCD)

3

and shall be responsible for coordinating with the secretary of commerce a shared staffing

4

arrangement until June 30, 2023, to carry out the provisions of this chapter;

5

     (vi) On or before November 1, 2022, develop a housing organizational plan to be provided

6

to the general assembly that includes a review, analysis, and assessment of functions related to

7

housing of all state departments, quasi-public agencies, boards, and commissions. Provided,

8

further, the secretary, with the input from each department, agency, board, and commission, shall

9

include in the plan comprehensive options, including the advantages and disadvantages of each

10

option and recommendations relating to the functions and structure of the new department of

11

housing;

12

     (vii) Establish rules and regulations as set forth in § 45-24-77.

13

     (b) In this capacity, the office shall:

14

     (1) Lead or assist state departments and coordinate business permitting processes in order

15

to:

16

     (i) Improve the economy, efficiency, coordination, and quality of the business climate in

17

the state;

18

     (ii) Design strategies and implement best practices that foster economic development and

19

growth of the state’s economy;

20

     (iii) Maximize and leverage funds from all available public and private sources, including

21

federal financial participation, grants, and awards;

22

     (iv) Increase public confidence by conducting customer centric operations whereby

23

commercial enterprises are supported and provided programs and services that will grow and

24

nurture the Rhode Island economy; and

25

     (v) Be the state’s lead agency for economic development.

26

     (2) [Deleted by P.L. 2022, ch. 388, § 1 and P.L. 2022, ch. 442, § 1.]

27

     (c) The office shall include the office of regulatory reform and other administration

28

functions that promote, enhance, or regulate various service and functions in order to

29

promote the reform and improvement of the regulatory function of the state.

30

     42-64.19-7. Departments/divisions assigned to the executive office — Powers and

31

duties.

32

     (a) The departments and/or divisions assigned to the secretary shall:

33

     (1) Exercise their respective powers and duties in accordance with their statutory authority

34

and the general policy established by the governor or by the secretary acting on behalf of the

 

LC006023/SUB A/2 - Page 17 of 106

1

governor or in accordance with the powers and authorities conferred upon the secretary by this

2

chapter;

3

     (2) Provide such assistance or resources as may be requested or required by the governor

4

and/or the secretary; and

5

     (3) Provide such records and information as may be requested or required by the governor

6

and/or the secretary to the extent allowed under the provisions of any applicable general or public

7

law, regulation, or agreement relating to the confidentiality, privacy or disclosure of such records

8

or information.

9

     (4) Forward to the secretary copies of all reports to the governor.

10

     (b) Except as provided herein, no provision of this chapter or application thereof shall be

11

construed to limit or otherwise restrict the departments, offices, or divisions assigned to the

12

secretary from fulfilling any statutory requirement or complying with any valid rule or regulation.

13

     (c) The secretary shall determine in collaboration with the department directors whether

14

the officers, employees, agencies, advisory councils, committees, commissions, and task forces of

15

the departments who were performing such functions shall be transferred to the office.

16

     (d) In the transference of such functions, the secretary shall be responsible for ensuring:

17

     (1) Minimal disruption of services to consumers;

18

     (2) Elimination of duplication of functions and operations;

19

     (3) Services are coordinated and functions are consolidated where appropriate;

20

     (4) Clear lines of authority are delineated and followed;

21

     (5) Cost savings are achieved whenever feasible;

22

     (6) Program application and eligibility determination processes are coordinated and, where

23

feasible, integrated; and

24

     (7) State and federal funds available to the office and the entities therein are allocated and

25

utilized for service delivery to the fullest extent possible.

26

     (e) Except as provided herein, no provision of this chapter or application thereof shall be

27

construed to limit or otherwise restrict the departments under this section from fulfilling any

28

statutory requirement or complying with any regulation deemed otherwise valid.

29

     (f) To ensure an orderly transfer of functions to the office of commerce the following

30

transition shall occur at the direction of the governor, secretary of commerce and the respective

31

directors of the department affected.

32

     (g) On or about February 1, 2015, the office shall commence to operate all functions

33

currently assigned to the department of business regulation (DBR).

34

     (h) On or about April 1, 2015, the office shall commence to operate the regulatory

 

LC006023/SUB A/2 - Page 18 of 106

1

reform and housing/community development functions currently assigned to the department

2

of administration.

3

     (i) In addition to the requirements of § 35-3-7, budgets submitted by the impacted state

4

departments for state fiscal years 2015 and 2016 shall include provisions to implement this section.

5

     SECTION 10. Sections 42-64.20-5, 42-64.20-6 and 42-64.20-8 of the General Laws in

6

Chapter 42-64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as

7

follows:

8

     42-64.20-5. Tax credits.

9

     (a) An applicant meeting the requirements of this chapter may be allowed a credit as set

10

forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of

11

the general laws for a qualified development project.

12

     (b) To be eligible as a qualified development project entitled to tax credits, an applicant’s

13

chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the

14

time of application, that:

15

     (1) The applicant has committed a capital investment or owner equity of not less than

16

twenty percent (20%) of the total project cost;

17

     (2) There is a project financing gap in which after taking into account all available private

18

and public funding sources, the project is not likely to be accomplished by private enterprise

19

without the tax credits described in this chapter; and

20

     (3) The project fulfills the state’s policy and planning objectives and priorities in that:

21

     (i) The applicant will, at the discretion of the commerce corporation, obtain a tax

22

stabilization agreement from the municipality in which the real estate project is located on such

23

terms as the commerce corporation deems acceptable;

24

     (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied

25

by at least one business employing at least 25 full-time employees after construction or such

26

additional full-time employees as the commerce corporation may determine; (B) Is a multi-family

27

residential development in a new, adaptive reuse, certified historic structure, or recognized

28

historical structure consisting of at least 20,000 square feet and having at least 20 residential units

29

in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic

30

structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at

31

least one business, subject to further definition through rules and regulations promulgated by the

32

commerce corporation; and

33

     (iii) Involves a total project cost of not less than $5,000,000, except for a qualified

34

development project located in a hope community or redevelopment area designated under § 45-

 

LC006023/SUB A/2 - Page 19 of 106

1

32-4 in which event the commerce corporation shall have the discretion to modify the minimum

2

project cost requirement.

3

     (c) The commerce corporation shall develop separate, streamlined application processes

4

for the issuance of rebuild RI tax credits for each of the following:

5

     (1) Qualified development projects that involve certified historic structures;

6

     (2) Qualified development projects that involve recognized historical structures;

7

     (3) Qualified development projects that involve at least one manufacturer; and

8

     (4) Qualified development projects that include affordable housing or workforce housing.

9

     (d) Applications made for a historic structure or recognized historic structure tax credit

10

under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of

11

taxation, at the expense of the commerce corporation, shall provide communications from the

12

commerce corporation to those who have applied for and are in the queue awaiting the offer of tax

13

credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax

14

credit program.

15

     (e) Applicants (1) Who have received the notice referenced in subsection (d) above and

16

who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application

17

involves a certified historic structure or recognized historical structure; or (3) Whose project is

18

occupied by at least one manufacturer shall be exempt from the requirements of subsections

19

(b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants:

20

     (i) The division of taxation shall remain responsible for determining the eligibility of an

21

applicant for tax credits awarded under chapter 33.6 of title 44;

22

     (ii) The commerce corporation shall retain sole authority for determining the eligibility of

23

an applicant for tax credits awarded under this chapter; and

24

     (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the

25

annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this

26

subsection (e).

27

     (f) Maximum project credit.

28

     (1) For qualified development projects, the maximum tax credit allowed under this chapter

29

shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to

30

close a project financing gap (after taking into account all other private and public funding sources

31

available to the project), as determined by the commerce corporation.

32

     (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

33

exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)

34

for any qualified development project under this chapter; except as provided in subsection (f)(3) of

 

LC006023/SUB A/2 - Page 20 of 106

1

this section; provided however, any qualified development project that exceeds the project cap upon

2

passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further

3

increased. No building or qualified development project to be completed in phases or in multiple

4

projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all

5

phases or projects involved in the rehabilitation of the building. Provided, however, that for

6

purposes of this subsection and no more than once in a given fiscal year, the commerce corporation

7

may consider the development of land and buildings by a developer on the “I-195 land” as defined

8

in § 42-64.24-3(6) as a separate, qualified development project from a qualified development

9

project by a tenant or owner of a commercial condominium or similar legal interest including

10

leasehold improvement, fit out, and capital investment. Such qualified development project by a

11

tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be

12

exempted from subsection (f)(1)(i) of this section.

13

     (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

14

exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars

15

($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter

16

into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that

17

project is approved for credits pursuant to this chapter by the commerce corporation.

18

     (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project

19

cost, provided, however, that the applicant shall be eligible for additional tax credits of not more

20

than ten percent (10%) of the project cost, if the qualified development project meets any of the

21

following criteria or other additional criteria determined by the commerce corporation from time

22

to time in response to evolving economic or market conditions:

23

     (1) The project includes adaptive reuse or development of a recognized historical structure;

24

     (2) The project is undertaken by or for a targeted industry;

25

     (3) The project is located in a transit-oriented development area;

26

     (4) The project includes residential development of which at least twenty percent (20%) of

27

the residential units are designated as affordable housing or workforce housing;

28

     (5) The project includes the adaptive reuse of property subject to the requirements of the

29

industrial property remediation and reuse act, § 23-19.14-1 et seq.; or

30

     (6) The project includes commercial facilities constructed in accordance with the minimum

31

environmental and sustainability standards, as certified by the commerce corporation pursuant to

32

Leadership in Energy and Environmental Design or other equivalent standards.

33

     (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter,

34

inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed

 

LC006023/SUB A/2 - Page 21 of 106

1

two hundred twenty-five million dollars ($225,000,000), excluding any tax credits allowed

2

pursuant to subsection (f)(3) of this section.

3

     (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the

4

project is placed in service.

5

     (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer

6

in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent

7

(15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable

8

year.

9

     (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total

10

tax liability for the year in which the relevant portion of the credit is allowed, the amount that

11

exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for

12

the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed

13

to a partnership, a limited liability company taxed as a partnership, or multiple owners of property

14

shall be passed through to the persons designated as partners, members, or owners respectively pro

15

rata or pursuant to an executed agreement among persons designated as partners, members, or

16

owners documenting an alternate distribution method without regard to their sharing of other tax

17

or economic attributes of such entity.

18

     (l) The commerce corporation, in consultation with the division of taxation, shall establish,

19

by regulation, the process for the assignment, transfer, or conveyance of tax credits.

20

     (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer

21

for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from

22

taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation

23

for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds,

24

without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a

25

natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable,

26

for the year of revocation, or adjustment, shall be increased by including the total amount of the

27

sales proceeds without proration.

28

     (n) The tax credit allowed under this chapter may be used as a credit against corporate

29

income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against

30

personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such

31

as a partnership, a limited liability company taxed as a partnership, or multiple owners of property.

32

     (o) In the case of a corporation, this credit is only allowed against the tax of a corporation

33

included in a consolidated return that qualifies for the credit and not against the tax of other

34

corporations that may join in the filing of a consolidated tax return.

 

LC006023/SUB A/2 - Page 22 of 106

1

     (p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem

2

this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division

3

of taxation, in consultation with the commerce corporation, shall establish by regulation a

4

redemption process for tax credits.

5

     (q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the

6

commerce corporation, be exempt from sales and use taxes imposed on the purchase of the

7

following classes of personal property only to the extent utilized directly and exclusively in the

8

project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles;

9

or (2) Other materials, including construction materials and supplies, that are depreciable and have

10

a useful life of one year or more and are essential to the project.

11

     (r) The commerce corporation shall promulgate rules and regulations for the administration

12

and certification of additional tax credit under subsection (e) (g), including criteria for the

13

eligibility, evaluation, prioritization, and approval of projects that qualify for such additional tax

14

credit.

15

     (s) The commerce corporation shall not have any obligation to make any award or grant

16

any benefits under this chapter.

17

     42-64.20-6. Administration.

18

     (a) To obtain the tax credit authorized in this chapter, applicants shall apply to the

19

commerce corporation board for approval of a qualified development project for credits under this

20

chapter. Such approval shall at a minimum require:

21

     (1) That the applicant has submitted a completed application as developed by the commerce

22

corporation in consultation with the division of taxation;

23

     (2) That the chief executive of the commerce corporation provide written confirmation to

24

the commerce corporation board (i) That the commerce corporation has reviewed the application

25

and any determination regarding the potential impact on the project’s ability to stimulate business

26

development; retain and attract new business and industry to the state; create jobs, including good-

27

paying jobs, for its residents; assist with business, commercial, and industrial real estate

28

development; and generate revenues for necessary state and local governmental services; and (ii)

29

The total credits to be awarded to the applicant.

30

     (3) That the secretary of commerce provide written confirmation to the commerce

31

corporation board that the recommendation of the commerce corporation is consistent with the

32

purposes of this chapter; and

33

     (4) That the director of the office of management and budget provide (i) written

34

confirmation to the commerce corporation board that the aggregate credits recommended by the

 

LC006023/SUB A/2 - Page 23 of 106

1

commerce corporation pursuant to this chapter do not exceed the maximum aggregate credits

2

allowed under this chapter in accordance with § 42-64.20-5(f) 42-64.20-5(h).

3

     (b) As the commerce corporation board determines whether to grant credits under this

4

chapter, it shall consider the purposes for which this chapter is established, which include (but are

5

not necessarily limited to) the following: (i) To create jobs with an emphasis on jobs that pay at

6

least the most recent state median wage as defined by the department of labor and training; and (ii)

7

To spur economic growth and new development in Rhode Island.

8

     (c) To claim a tax credit authorized by the board of the commerce corporation, applicants

9

shall apply to the commerce corporation for a certification that the project has met all requirements

10

of this chapter and any additional requirements set by the commerce corporation subsequent to the

11

time the qualified development project is placed in service. The commerce corporation shall issue

12

to the applicant a certification or a written response detailing any deficiencies precluding

13

certification. The commerce corporation may deny certification, or may revoke the delivery of tax

14

credits if the project does not meet all requirements of this chapter and any additional requirements

15

set by the commerce corporation.

16

     (d) Upon issuance of a certification by the commerce corporation under subsection (c), the

17

division of taxation shall, on behalf of the State of Rhode Island, issue tax credit certificates

18

equaling one hundred percent (100%) of the tax credits approved by the commerce corporation.

19

     (e) In the event that tax credits, or a portion of tax credits, are revoked by the commerce

20

corporation and such tax credits have been transferred or assigned, the commerce corporation will

21

pursue its recapture rights and remedies against the applicant of the tax credits who shall be liable

22

to repay to the commerce corporation the face value of all tax credits assigned or transferred and

23

all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against assignees

24

or transferees of such tax credits provided the tax credits were acquired by way of an arms-length

25

transaction, for value, and without notice of violation, fraud, or misrepresentation.

26

     (f) The commerce corporation and division of taxation shall promulgate such rules and

27

regulations as are necessary to carry out the intent and purpose and implementation of the

28

responsibilities of each under this chapter.

29

     42-64.20-8. Program integrity.

30

     (a) Program integrity being of paramount importance, the commerce corporation shall

31

establish procedures to ensure ongoing compliance with the terms and conditions of the program

32

established herein, including procedures to safeguard the expenditure of public funds and to ensure

33

that the funds further the objectives of the program.

34

     (b) The commerce corporation shall adopt implementation guidelines, directives, criteria,

 

LC006023/SUB A/2 - Page 24 of 106

1

and rules and regulations pursuant to § 42-35-3 of the general laws chapter 35 of this title

2

(Administrative Procedures), as are necessary to implement this chapter, including, but not

3

limited to: examples of the enumeration of specific targeted industries; specific delineation of

4

incentive areas; the determination of additional limits; the promulgation of procedures and forms

5

necessary to apply for a tax credit, including the enumeration of the certification procedures; the

6

allocation of new tax credits in consultation with the executive office of commerce, division of

7

taxation and department of administration; and provisions for tax credit applicants to be charged

8

an initial application fee, and ongoing service fees, to cover the administrative costs related to the

9

tax credit.

10

     SECTION 11. Section 42-64.22-12 of the General Laws in Chapter 42-64.22 entitled "Tax

11

Stabilization Incentive" is hereby amended to read as follows:

12

     42-64.22-12. Implementation guidelines, directives, criteria, rules, regulations.

13

     (a) The commerce corporation shall establish further guidelines, directives, criteria, rules

14

and regulations in regards to the implementation of this chapter.

15

     (b) The adoption and implementation of rules and regulations shall be made pursuant to §

16

42-35-3 of the general laws chapter 35 of this title (Administrative Procedures) as are necessary

17

for the implementation of the commerce corporation’s responsibilities under this chapter.

18

     SECTION 12. Section 42-64.23-6 of the General Laws in Chapter 42-64.23 entitled "First

19

Wave Closing Fund" is hereby amended to read as follows:

20

     42-64.23-6. Implementation guidelines, directives, criteria, rules, regulations.

21

     The commerce corporation may adopt implementation guidelines, directives, criteria, rules

22

and regulations pursuant to § 42-35-3 of the General Laws chapter 35 of this title

23

(Administrative Procedures) as are necessary for the implementation and administration of the

24

fund.

25

     SECTION 13. Section 42-64.24-6 of the General Laws in Chapter 42-64.24 entitled "I-195

26

Redevelopment Project Fund" is hereby amended to read as follows:

27

     42-64.24-6. Implementation guidelines, directives, criteria, rules, regulations.

28

     The commission shall adopt implementation guidelines, directives, criteria, rules and

29

regulations pursuant to § 42-35-3 of the general laws chapter 35 of this title (Administrative

30

Procedures) as are necessary for the implementation of the commission’s responsibilities under

31

this chapter and impose such fees and charges as are necessary to pay for the administration and

32

implementation of this program.

33

     SECTION 14. Section 42-64.26-9 of the General Laws in Chapter 42-64.26 entitled "Stay

34

Invested in RI Wavemaker Fellowships" is hereby amended to read as follows:

 

LC006023/SUB A/2 - Page 25 of 106

1

     42-64.26-9. Implementation guidelines, rules, regulations.

2

     (a) The commerce corporation may adopt implementation guidelines, rules, and regulations

3

pursuant to § 42-35-3 chapter 35 of this title (Administrative Procedures) as are necessary for

4

the implementation of this chapter.

5

     (b) The commerce corporation shall adopt guidelines to assure integrity and eliminate

6

potential conflicts of interest in the issuing of awards.

7

     (c) The division of taxation may adopt implementation guidelines, directives, criteria, and

8

rules and regulations pursuant to § 42-35-3 of the General Laws chapter 35 of this title

9

(Administrative Procedures), as are necessary for the implementation of the division’s

10

responsibilities under this chapter.

11

     SECTION 15. Section 42-82-5 of the General Laws in Chapter 42-82 entitled "Farmland

12

Preservation Act" is hereby amended to read as follows:

13

     42-82-5. Duties of the commission.

14

     (a) The commission shall:

15

     (1) Develop the criteria necessary for defining agricultural land under this chapter;

16

     (2) Make a reasonably accurate inventory of all land in the state that meets the definition

17

of agricultural land;

18

     (3) Prepare and adopt rules for administration of the purchase of development rights and

19

criteria for the selection of parcels for which the development rights may be purchased, and the

20

conditions under which they will be purchased;

21

     (4) Draw up and publish the covenant and enumerate the specific development rights to be

22

purchased by the state;

23

     (5) Inform the owners, public officials, and other citizens and interested persons of the

24

provisions of this chapter;

25

     (6) Approve and submit, within ninety (90) days after the end of each fiscal year, an annual

26

report to the governor, the speaker of the house of representatives, the president of the senate, and

27

the secretary of state of its activities during that fiscal year. The report shall provide: an operating

28

statement summarizing meetings or hearings held, including meeting minutes, subjects addressed,

29

decisions rendered, petitions granted, rules or regulations promulgated, studies conducted, policies

30

and plans developed, approved, or modified, and programs administered or initiated; a consolidated

31

financial statement of all funds received and expended, including the source of the funds, a listing

32

of any staff supported by these funds, and a summary of any clerical, administrative, or technical

33

support received; a summary of performance during the previous fiscal year, including

34

accomplishments, shortcomings, and remedies; a synopsis of hearings, examinations, and

 

LC006023/SUB A/2 - Page 26 of 106

1

investigations or any legal matters related to the authority of the commission; a summary of any

2

training courses held pursuant to subdivision (a)(7); a summary of land acquired and conserved

3

during the fiscal year; an annually updated inventory of all land in the state that meets the definition

4

of agricultural land; a briefing on anticipated activities in the upcoming fiscal year; findings and

5

recommendation for improvements. The report shall be posted electronically, as prescribed in § 42-

6

20-8.2. The director of the department of administration shall be responsible for the enforcement

7

of this provision; and

8

     (7) Conduct a training course for newly appointed and qualified members and new

9

designees of ex officio members within six (6) months of their qualification or designation. The

10

course shall be developed by the chair, approved by the commission, and conducted by the

11

commission. The commission may approve the use of any commission or staff members or other

12

individuals to assist with training. The course shall include instruction in the following areas: the

13

provisions of chapters 82 and 46 of this title, chapter 14 of title 36, and chapter 2 of title 38; and

14

the commission’s rules and regulations. The director of the department of administration shall,

15

within ninety (90) days of the effective date of this act [May 3, 2006], prepare and disseminate

16

training materials relating to the provisions of chapter 46 of this title, chapter 14 of title 36, and

17

chapter 2 of title 38.

18

     (b) At any time after fulfilling the requirements of subsection (a), the commission, on

19

behalf of the state, may acquire any development rights that may, from time to time, be offered by

20

the owners of agricultural land. The commission may accept or negotiate at a price not in excess of

21

the value established by an independent appraisal prepared for the commission, or for one of the

22

commission’s partners, for the respective property. Additionally, said appraisal shall be reviewed

23

in a manner consistent with the rules and regulations of the commission. The value of the

24

development rights for all of the purposes of this section shall be the difference between the value

25

of the property for its highest and best use and its value for agricultural purposes as defined in this

26

chapter. In determining the value of the property for its highest and best use, consideration shall be

27

given to sales of comparable properties in the general area, use of which is unrestricted at the time

28

of sale. The seller of the development rights shall have the option of accepting payment in full at

29

the time of transfer or accepting payment on an installment basis in cash or with the principal paid

30

by tax exempt financial instruments of the state with interest on the unpaid balance equal to the

31

interest paid by the state on bonds sold during the preceding twelve-month (12) period. Any matter

32

pending in the superior court may be settled by the parties subject to approval by a referee. At any

33

time after a matter has been referred to a referee, even after an award is made by the referee, but

34

before payment thereof, the petitioner may withdraw his or her petition upon payment of appraisal

 

LC006023/SUB A/2 - Page 27 of 106

1

fees incurred by the state, together with all court costs, and the award shall become null and void.

2

     (c) Any land acquired by purchase, devise, or as a gift may be resold by the commission

3

with the development rights retained by the state and so noted by covenant in the deed. Any such

4

resale by the commission shall not be subject to the right to purchase by the municipality in which

5

the land is situated as provided by § 37-7-5. The proceeds from that sale shall be returned to the

6

agricultural land preservation fund.

7

     (d) Any land received as a gift and not resold by the commission may be leased for

8

agricultural uses or other uses the commission determines are not detrimental to its agricultural

9

productivity. Any funds thus obtained shall be returned to the agricultural land preservation fund.

10

     (e) The commission may consider petitions by the owner of land, from which or whom the

11

state has purchased the development rights, to repurchase those development rights from the state.

12

The petition must be accompanied by a certificate from the municipalities in which the land lies

13

stating that two-thirds (⅔) of the city or town council has approved the proposed development. The

14

petition shall set forth the facts and circumstances upon which the commission shall consider

15

approval, and the commission shall deny approval unless at least seven (7) of its members

16

determine by vote that there is an overriding necessity to relinquish control of the development

17

rights. The commission shall hold at least one public hearing in a city or town from which a

18

certificate has been received, prior to its consideration of the petition, that shall be announced in

19

one newspaper of local circulation. The expenses, if any, of the hearing shall be borne by the

20

petitioner. If the commission approves the sale of the development rights, it shall receive the value

21

of the development rights at the time of this sale, to be determined in the same manner as provided

22

for by subsection (d) (b). Proceeds of the sale shall be returned to the agricultural land preservation

23

fund.

24

     SECTION 16. Section 42-102-6 of the General Laws in Chapter 42-102 entitled

25

"Governor’s Workforce Board Rhode Island" is hereby amended to read as follows:

26

     42-102-6. Powers and duties.

27

     (a) Strategic statewide employment-and-training plan.

28

     (1) The board shall meet with other entities involved with career and technical education,

29

workforce development, and career training and shall be responsible for the development of a

30

comprehensive and cohesive, statewide employment-and-training plan. The strategic, statewide

31

employment-and-training plan shall include goals and objectives for serving the state’s existing

32

and emerging workforce utilizing all state and federal workforce-development programs. The board

33

shall take into consideration the needs of all segments of the state’s citizenry in establishing goals

34

and training objectives, including the workforce needs of the state’s employers.

 

LC006023/SUB A/2 - Page 28 of 106

1

     (2) The strategic, statewide-employment-and-training plan shall be developed biennially

2

and shall cover the subsequent, two (2) fiscal years. Said biennial plans shall be submitted on

3

November 15. The biennial plan shall outline goals and objectives of the coordinated programs

4

system, major priorities needed for the next two-year (2) period, and policies and requirements

5

necessary to meet those priorities. The board shall provide a funding plan necessary to achieve

6

system priorities and serve the anticipated number of participants and shall identify the general

7

revenue funds necessary to meet program needs, taking into account anticipated federal, private,

8

and other sources of funds. The biennial plan shall incorporate the annual, unified-workforce-

9

development-system report required pursuant to subsection (f) in those years in which both reports

10

are due.

11

     (3) The board shall develop and maintain a comprehensive inventory and analysis of

12

workforce-development activities in the state to support the biennial, statewide employment-and-

13

training plan. The analysis shall include, but not be limited to, an examination of the populations

14

being served across the different employment and training and adult education programs across the

15

state; the number of participants being served by these programs; the type of services provided; and

16

the eligibility requirements of each of these programs. The analysis shall also identify the funding

17

sources (all sources) used in these programs; the service providers within the state; as well as the

18

range of services provided. The analysis shall also examine the employer role in workforce-

19

development activities, including, but not limited to, how employer needs are assessed; benefits

20

employers receive for partnering with workforce-development organizations; and the role

21

employers play in developing programs and providing training.

22

     (4) The board shall establish and convene an advisory group to assist in the development

23

of this comprehensive inventory and analysis that consists of stakeholders and organizations with

24

specific knowledge and expertise in the area of workforce development.

25

     (5) All departments and agencies of the state shall furnish advice and information,

26

documentary or otherwise, to the board and its agents as is deemed necessary or desirable by the

27

board to facilitate the purposes of the board, including the development of the statewide,

28

employment-and-training plan.

29

     (6) Elements of the statewide employment and training plan established pursuant to

30

subsection (a) of this section may inform the development of the state workforce investment plan

31

required pursuant to § 42-102-6(d)(2)(i).

32

     (b) Performance management and coordination of employment-and-training programs.

33

     (1) The board shall establish statewide policies, definitions, objectives, goals, and

34

guidelines for the coordination of all employment-and-training programs and related services and

 

LC006023/SUB A/2 - Page 29 of 106

1

programs within the state, including:

2

     (i) The state department of labor and training programs, sponsored under the Workforce

3

Investment Act of 1998, Wagner-Peyser Act, 29 U.S.C. § 49 et seq., the Trade Act of 2002, and

4

any other employment-related educational program administered by the state department of labor

5

and training;

6

     (ii) The state department of human services training programs, sponsored under the

7

Temporary Assistance to Needy Families, Title IV of the Social Security Act; the Supplemental

8

Nutrition Assistance Program (SNAP) Employment and Training Program; Vocational

9

Rehabilitation Act of 1973, and any other employment-and-training and related services and

10

employment-related educational programs administered by the state’s department of human

11

services;

12

     (iii) Employment and training programs sponsored under the Carl D. Perkins Vocational

13

Education Act, 20 U.S.C. § 2301 et seq., the Federal Adult Education Act, Title II of the Workforce

14

Investment Act of 1998 and any other employment-related educational programs administered by

15

the board of education;

16

     (iv) The state department of corrections training programs for ex-offenders to help them

17

reintegrate into the community and re-enter employment;

18

     (v) Projects and services funded through the job-development fund pursuant to § 42-102-

19

6(e)(1);

20

     (vi) All other employment-and-training and related services and employment-related

21

educational programs, either presently existing or hereinafter established, that are administered by

22

any state agencies, departments, or councils; and

23

     (vii) Programs included within subsections (b)(1)(i) through (b)(1)(vi) shall be referred

24

herein collectively as “the coordinated programs system.”

25

     (2) With respect to plans for employment-and-training programs sponsored under the

26

federal Carl D. Perkins Vocational Education Act, 20 U.S.C. § 2301 et seq., and any other

27

employment-related educational programs administered by the board of education, the workforce

28

board and board of education shall establish a process for the development and preparation of all

29

these plans and the board of education shall approve the plan subject to review and comment by

30

the workforce board; provided, however, that the responsibilities and duties of the board of

31

education, as set forth in the general laws, shall not be abridged.

32

     (3) With respect to plans for the Temporary Assistance to Needy Families Program, SNAP

33

Employment and Training Program, Vocational Rehabilitation Services, and any other

34

employment-and-training and related programs administered by the state’s department of human

 

LC006023/SUB A/2 - Page 30 of 106

1

services, the authority and responsibilities of the department as the single state agency under Titles

2

IV-A, 42 U.S.C. §§ 601 through 617, and IV-F, 42 U.S.C. §§ 681 through 687 [repealed], of the

3

Federal Social Security Act shall not be abridged.

4

     (4) With respect to plans for training ex-offenders to help them reintegrate into the

5

community and re-enter employment, and any other employment-and-training programs

6

administered by the state’s department of corrections, the responsibilities and duties of the

7

department, as set forth in the general laws, shall not be abridged.

8

     (5) The board shall review, comment on, or approve as appropriate all plans for

9

employment and training within the coordinated-programs system. The board shall establish

10

policies and performance goals for the coordinated-programs system. These policies and goals shall

11

include, but not be limited to:

12

     (i) Establishing and communicating uniform policies and consistent terms and definitions;

13

     (ii) Gathering and distributing information from, and to, all agencies, departments, and

14

councils within the coordinated-programs system;

15

     (iii) Standardizing and coordinating program planning, evaluation, budgeting, and funding

16

processes;

17

     (iv) Recommending structural and procedural changes;

18

     (v) Establishing performance goals and measurements for monitoring the effectiveness of

19

the programs provided through the coordinated-programs system; and

20

     (vi) Reconciling diverse agency, departmental, or council goals and developing priorities

21

among those goals.

22

     (c) Comprehensive system-improvement plan.

23

     (1) The 2015 unified workforce-development-system report required pursuant to § 42-102-

24

6(f) and due on November 15, 2015, shall include an additional, comprehensive system-

25

improvement plan to facilitate the seamless and coordinated delivery of workforce services in this

26

state, consistent with the goals and objectives of the board’s statewide employment-and-training

27

plan. In developing the comprehensive, system-improvement plan, the board shall review the roles,

28

responsibilities, and functions of all state employment-and-training programs. The study shall

29

identify any gaps in the services provided by those programs; any barriers to integration and

30

cooperation of these programs; and any other matters that adversely affect the seamless delivery of

31

workforce-development systems in the state.

32

     (2) The board shall include in the comprehensive, system-improvement plan:

33

     (i) A list of specific barriers, whether structural, regulatory, or statutory, that adversely

34

affect the seamless and coordinated delivery of workforce-development programs and services in

 

LC006023/SUB A/2 - Page 31 of 106

1

this state, as well as recommendations to overcome or eliminate these barriers; and

2

     (ii) Recommendations for providing, at a minimum, board comment and review of all state

3

employment-and-training programs, to ensure such programs are consistent with the board’s

4

statewide employment-and-training plan, and meet the current and projected workforce demands

5

of this state, including programs that, pursuant to state or federal law or regulation, must remain

6

autonomous.

7

     (3) The recommendations developed by the board under subsection (c)(1) must identify the

8

state agency or department that is responsible for implementing each recommendation and include

9

a time frame for the implementation of each recommendation. The governor may include such

10

recommendations in his or her proposed budget the following fiscal year.

11

     (d) Workforce investment act responsibilities.

12

     (1) The board shall assume the duties and responsibilities of the state workforce-investment

13

board established pursuant to Executive Order 05-18 dated September 22, 2005, as outlined in

14

subsection (c)(2) (d)(2).

15

     (2) The board shall assist the governor and the general assembly in:

16

     (i) Developing a state workforce-investment plan for the purposes of the Workforce

17

Investment Act of 1998 (WIA) and the Wagner-Peyser Act;

18

     (ii) Actively promoting and coordinating private-sector involvement in the workforce-

19

investment system through the development of partnerships among state agencies, the business

20

community, and the board;

21

     (iii) Ensuring that the current and projected workforce needs of Rhode Island employers

22

inform and advise Rhode Island’s education and workforce-development system;

23

     (iv) Providing oversight of local workforce-investment boards, whose primary role in the

24

workforce-investment system is to deliver employment, training, and related education services in

25

their respective local area; and

26

     (v) Developing a statewide system of activities that are funded under the WIA or carried

27

out through the one-stop delivery system, including:

28

     (A) Assuring coordination and non duplication among the programs and activities carried

29

out by one-stop partners;

30

     (B) Reviewing local workforce-investment plans;

31

     (C) Designating local workforce-investment areas in accordance with federal law;

32

     (D) Developing allocation formulas for the distribution of funds for adult employment-

33

and-training activities, youth activities to local areas, and creating and expanding job and career

34

opportunities for individuals with intellectual, developmental, or other significant disabilities;

 

LC006023/SUB A/2 - Page 32 of 106

1

     (E) Developing comprehensive, state-performance measures as prescribed by federal law,

2

including state-adjusted levels of performance, to assess the effectiveness of the workforce-

3

investment activities in the state;

4

     (F) Preparing the annual report to the Secretary of Labor described in WIA;

5

     (G) Developing the statewide employment-statistics system;

6

     (H) Developing an application for incentive grants;

7

     (I) Carrying out the responsibilities of a local board as outlined in WIA; and

8

     (J) Addressing any other issue requiring input from the board under the provisions of WIA.

9

     (e) Job-development fund responsibilities.

10

     (1) The board shall allocate monies from the job-development fund for projects to

11

implement the recommendations of the board consistent with the statewide employment-and-

12

training plan established pursuant to § 42-102-6(a).

13

     (f) Unified workforce-development system report.

14

     (1) The board shall produce and submit an annual, unified, workforce-development-system

15

report to the governor, the speaker of the house, the president of the senate, and the secretary of

16

state. The report shall be submitted annually on November 15. The report shall cover activity

17

having taken place the preceding fiscal year ending June 30 and shall include:

18

     (i) A fiscal and programmatic report for the governor’s workforce board covering the

19

previous fiscal year, including:

20

     (A) A summary of the board’s activities and accomplishments during the previous fiscal

21

year;

22

     (B) A summary of clerical, administrative, professional, or technical reports received by

23

the board during the previous fiscal year, if applicable;

24

     (C) A briefing on anticipated activities in the upcoming fiscal year;

25

     (D) A consolidated financial statement of all funds received, and expended, by the board,

26

including the source of funds, during the previous fiscal year;

27

     (E) A listing of any staff supported by these funds;

28

     (ii) A unified, expenditure-and-program report for statewide employment-and-training

29

programs and related services, including:

30

     (A) Expenditures by agencies for programs included in § 42-102-6(b)(1), including

31

information regarding the number of individuals served by each program; demographic information

32

by gender, race, and ethnicity; outcome and program-specific performance information as

33

determined by the board; and such other information as may be determined by the board, including,

34

but not limited to, the attainment of credentials;

 

LC006023/SUB A/2 - Page 33 of 106

1

     (2) Beginning November 15, 2015, program expenditures included in the unified,

2

workforce-development-system report shall be categorized as administrative, program delivery, or

3

other costs; the report shall further include information on the cost per individual served within

4

each program, through a manner determined by the board;

5

     (3) All state and local agencies, departments, or council, or similar organizations within

6

the coordinated-programs system, shall be required to provide the board with the information

7

necessary to produce the unified, workforce-development-system report.

8

     SECTION 17. Section 42-128-5 of the General Laws in Chapter 42-128 entitled "Rhode

9

Island Housing Resources Act of 1998" is hereby amended to read as follows:

10

     42-128-5. Purposes.

11

     The purposes of the commission shall be:

12

     (1) To develop and promulgate state policies, and plans, for housing and housing

13

production and performance measures for housing programs established pursuant to state law.

14

     (2) To coordinate activities among state agencies and political subdivisions pertaining to

15

housing.

16

     (3) To promote the stability of and quality of life in communities and neighborhoods.

17

     (4) To provide opportunities for safe, sanitary, decent, adequate and affordable housing in

18

Rhode Island.

19

     (5) To encourage public-private partnerships that foster the production, rehabilitation,

20

development, maintenance, and improvement of housing and housing conditions, especially for

21

low and moderate income people.

22

     (6) To foster and support no-profit non-profit organizations, including community

23

development corporations, and their associations and intermediaries, that are engaged in providing

24

and housing related services.

25

     (7) To encourage and support partnerships between institutions of higher education and

26

neighborhoods to develop and retain quality, healthy housing and sustainable communities.

27

     (8) To facilitate private for-profit production and rehabilitation of housing for diverse

28

populations and income groups.

29

     (9) To provide, facilitate, and/or support the provisions of technical assistance.

30

     SECTION 18. Section 42-128.1-5 of the General Laws in Chapter 42-128.1 entitled "Lead

31

Hazard Mitigation" is hereby amended to read as follows:

32

     42-128.1-5. Housing resources commission — Powers and duties with respect to lead

33

hazard mitigation.

34

     (a) General powers and duties. The housing resources commission shall implement and put

 

LC006023/SUB A/2 - Page 34 of 106

1

into full force and effect the powers, duties, and responsibilities assigned to it by this chapter, and

2

shall serve as the lead state agency for lead hazard mitigation, planning, education, technical

3

assistance, and coordination of state projects and state financial assistance to property owners for

4

lead hazard mitigation.

5

     (b) Regulatory guidelines. In developing and promulgating rules and regulations as

6

provided for in this chapter, the housing resources commission shall consider, among other things:

7

(1) the effect on efforts to reduce the incidence of lead poisoning, (2) the ease and cost of

8

implementation, (3) the impact on the ability to conduct real estate transactions fairly and

9

expeditiously, (4) consistency with federal standards, such that the differences between basic

10

federal standards and Rhode Island standards for lead hazard mitigation are, to the extent

11

practicable, minimized, and (5) the direction of effort to locations and housing types, which due to

12

age, condition, and prior history of lead poisoning are more likely to be the location of lead

13

poisoning. Said regulations shall include a definition of “turnover” of a dwelling unit and a means

14

for tenants to voluntarily notify property owners of the legal tenancy of an “at-risk” occupant.

15

     (c) Comprehensive strategic plan. In order to establish clear goals for increasing the

16

availability of housing in which lead hazards have been mitigated, to provide performance

17

measures by which to assess progress toward achieving the purposes of this chapter, and to facilitate

18

coordination among state agencies and political subdivisions with responsibilities for housing and

19

housing quality for lead poisoning reduction and for the availability of insurance coverage

20

described in this chapter, the housing resources commission established by chapter 128 of this title

21

shall adopt by April 1, 2003, a four (4) year, comprehensive strategic plan for reducing the

22

incidence of childhood lead poisoning, for increasing the supply of lead-safe housing, and for

23

assuring that pre-1978 in rental housing throughout the state lead hazards have been mitigated.

24

     (1) Plan elements. The plan as a minimum shall include elements pertaining to:

25

     (i) Educating people with regard to lead hazards and how they can be avoided, mitigated,

26

and/or abated;

27

     (ii) Programs to assist low and moderate income owners of property to eliminate lead

28

hazards and to achieve lead-safe conditions;

29

     (iii) Coordination of the enforcement of laws pertaining to lead hazard control, mitigation

30

and abatement including the Lead Poisoning Prevention Act, chapter 24.6 of title 23, and minimum

31

housing codes and standards;

32

     (iv) Coordination of efforts with local governments and other agencies to improve housing

33

conditions;

34

     (v) Financing lead abatement efforts in Rhode Island, including, but not limited to,

 

LC006023/SUB A/2 - Page 35 of 106

1

assistance to low and moderate income property owners, education and outreach, and enforcement

2

by state and local officials;

3

     (vi) An assessment of the availability of insurance for lead hazard liability, which shall be

4

designed and implemented in cooperation with the department of business regulation.

5

     (2) Implementation program. The comprehensive strategic plan shall include an

6

implementation program, which shall include performance measurers and a program of specific

7

activities that are proposed to be undertaken to accomplish the purposes of this chapter and to

8

achieve goals and elements set forth by the plan. The implementation program shall be updated

9

annually according to a schedule set forth in the plan.

10

     (3) Reporting. The commission shall report annually to the governor and the general

11

assembly, no later than March of each year, on the progress made in achieving the goals and

12

objectives set forth in the plan, which report may be integrated with or issued in conjunction with

13

the report of the commission on environmental lead submitted pursuant to § 23-24.6-6.

14

ARTICLE II -- STATUTORY CONSTRUCTION

15

     SECTION 1. Section 7-12.1-903.1 of the General Laws in Chapter 7-12.1 entitled

16

"Uniform Partnership Act" is hereby amended to read as follows:

17

     7-12.1-903.1. Issuance of certificates of revocation.

18

     (a) Upon revoking any such certificate of a limited liability partnership, the secretary of

19

state shall:

20

     (1) Issue a certificate of revocation in duplicate;

21

     (2) File one of the certificates in the secretary of state’s office;

22

     (3) Send to the limited liability partnership by regular mail a certificate of revocation,

23

addressed to the registered agent of the limited liability partnership in this state on file with the

24

secretary of state’s office; provided, however, that if a prior mailing addressed to the address of the

25

registered agent of the limited liability partnership in this state currently on file with the secretary

26

of state’s office has been returned to the secretary of state as undeliverable by the United States

27

Postal Service for any reason, or if the revocation certificate is returned as undeliverable to the

28

secretary of state’s office by the United States Postal Service for any reason, the secretary of state

29

shall give notice as follows:

30

     (i) To the limited liability partnership at its principal office of record as shown in its most

31

recent annual report, and no further notice shall be required; or

32

     (ii) In the case of a limited liability partnership that has not yet filed an annual report, then

33

to the limited liability partnership at the principal office in the statement of qualification of limited

34

liability partnership or to the authorized person listed on the articles of organization statement of

 

LC006023/SUB A/2 - Page 36 of 106

1

qualification of limited liability partnership, and no further notice shall be required.

2

     (b) An administrative revocation under this section affects only the partnership’s status as

3

a limited liability partnership and is not an event causing dissolution of the partnership.

4

     (c) The revocation of a limited liability partnership does not terminate the authority of its

5

registered agent.

6

     SECTION 2. Section 7-13.1-812 of the General Laws in Chapter 7-13.1 entitled "Uniform

7

Limited Partnership Act" is hereby amended to read as follows:

8

     7-13.1-812. Issuance of certificates of revocation.

9

     (a) Upon revoking any such certificate of limited partnership, the secretary of state shall:

10

     (1) Issue a certificate of revocation in duplicate;

11

     (2) File one of the certificates in the secretary of state’s office;

12

     (3) Send to the limited partnership by regular mail a certificate of revocation, addressed to

13

the registered agent of the limited partnership in this state on file with the secretary of state’s office;

14

provided, however, that if a prior mailing addressed to the address of the registered agent of the

15

limited partnership in this state currently on file with the secretary of state’s office has been returned

16

to the secretary of state as undeliverable by the United States Postal Service for any reason, or if

17

the revocation certificate is returned as undeliverable to the secretary of state’s office by the United

18

States Postal Service for any reason, the secretary of state shall give notice as follows:

19

     (i) To the limited partnership at its principal office of record as shown in its most recent

20

annual report, and no further notice shall be required; or

21

     (ii) In the case of a limited partnership that has not yet filed an annual report, then to the

22

domestic limited partnership at the principal office in the articles of organization certificate of

23

limited partnership or to the authorized person listed on the certificate of registration certificate

24

of limited partnership, and no further notice shall be required.

25

     (b) A limited partnership that is revoked continues in existence as an entity but may not

26

carry on any activities except as necessary to wind up its activities and affairs and liquidate its

27

assets under §§ 7-13.1-802, 7-13.1-806, 7-13.1-807, 7-13.1-808, and 7-13.1-810, or to apply for

28

reinstatement under § 7-13.1-813.

29

     (c) The revocation of a limited partnership does not terminate the authority of its registered

30

agent.

31

     SECTION 3. Section 9-1-31 of the General Laws in Chapter 9-1 entitled "Causes of

32

Action" is hereby amended to read as follows:

33

     9-1-31. Public school teachers, supervisors, administrators and employees whose

34

position directly involves work with students — Immunity from liability — Compensation

 

LC006023/SUB A/2 - Page 37 of 106

1

for certain injuries — Duty upon school committees and board of regents. Public school

2

teachers, supervisors, administrators and employees whose position directly involves work

3

with students — Immunity from liability — Compensation for certain injuries — Duty upon

4

school committees and the council on elementary and secondary education.

5

     (a) Each school committee and the board of regents council on elementary and

6

secondary education shall protect and save harmless any public school teacher, any supervisor,

7

administrator, or licensed professional employee, any employee whose position requires a

8

certificate from the department of education or board of regents for elementary and secondary

9

education council on elementary and secondary education, any employee whose position

10

directly involves work with students, and any employee of the board of regents council on

11

elementary and secondary education from financial loss and expense, including legal fees and

12

costs, if any, arising out of any claim, demand, or suit for actions resulting in accidental bodily

13

injury to or death of any person, or in accidental damage to or destruction of property, within or

14

without the school building, or any other acts, including but not limited to infringement of any

15

person’s civil rights, resulting in any injury, which acts are not wanton, reckless, malicious, or

16

grossly negligent, as determined by a court of competent jurisdiction, provided the teacher,

17

supervisor, or administrator, at the time of the acts resulting in the injury, death, damages, or

18

destruction, was acting in the discharge of their duties or within the scope of their employment or

19

under the direction of the school committee or the board of regents council on elementary and

20

secondary education.

21

     (b) For the purpose of this section, the term “teacher” shall include any student teacher

22

doing practice teaching under the direction of a teacher employed by a school committee or the

23

board of regents council on elementary and secondary education.

24

     (c) Each school committee and the board of regents council on elementary and

25

secondary education shall protect and save harmless any teacher or any supervisor, employee

26

whose position directly involves work with students (hereinafter referred to as “employee”), or

27

administrator from financial loss and expense, including payment of expenses reasonably incurred

28

for medical or other service, necessary as a result of an assault upon the teacher, supervisor,

29

employee, or administrator while the person was acting in the discharge of their duties within the

30

scope of their employment or under the direction of the school committee or the board of regents

31

council on elementary and secondary education, which expenses are not paid by the individual

32

teacher’s, supervisor’s, employee’s, or administrator’s workers’ compensation.

33

     (d) Any teacher, supervisor, employee whose position directly involves work with students

34

(hereinafter referred to as “employee”), or administrator absent from their employment as a result

 

LC006023/SUB A/2 - Page 38 of 106

1

of injury sustained during an assault upon the teacher, supervisor, employee, or administrator that

2

occurred while the teacher, supervisor, employee, or administrator was discharging their duties

3

within the scope of their employment or under the direction of the school committee or the board

4

of regents council on elementary and secondary education, or for a court appearance in

5

connection with the assault, shall continue to receive their full salary, while so absent, except that

6

the amount of any workers’ compensation award may be deducted from their salary payments

7

during the absence. The time of the absence shall not be charged against the teacher’s, supervisor’s,

8

employee’s, or administrator’s sick leave, vacation time, or personal leave days.

9

     (e) A person so injured in accordance with subsection (d) of this section and who receives

10

a disability therefrom, which renders them unable to fully perform their normal duties, shall, if the

11

disability continues for a period of one year, apply to the Rhode Island employees’ retirement

12

system for appropriate benefits for which that person is entitled.

13

     SECTION 4. Section 16-16-1 of the General Laws in Chapter 16-16 entitled "Teachers’

14

Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby

15

amended to read as follows:

16

     16-16-1. Definitions.

17

     (a) The following words and phrases used in this chapter, unless a different meaning is

18

plainly required by the context, have the following meanings:

19

     (1) “Active member” means any teacher as defined in this section for whom the retirement

20

system is currently receiving regular contributions pursuant to §§ 16-16-22 and 16-16-22.1.

21

     Except as otherwise provided in this section, the words and phrases used in this

22

chapter, so far as applicable, have the same meanings as they have in chapters 8 to 10 of title

23

36.

24

     (2) “Beneficiary” means any person in receipt of annuity, benefit, or retirement allowance

25

from the retirement system as provided in this chapter.

26

     (3) “Child” includes a stepchild of a deceased member who has been a stepchild for at least

27

one year immediately preceding the date on which the member died or an adopted child of a

28

deceased member without regard to the length of time the child has been adopted.

29

     (4) “Former spouse divorced” means a person divorced from a deceased member, but only

30

if the person meets one of the following conditions:

31

     (i) Is the mother or father of the deceased member’s child(ren);

32

     (ii) Legally adopted the deceased member’s child(ren) while married to the deceased

33

member and while the child(ren) was under the age of eighteen (18) years;

34

     (iii) Was married to the deceased member at the time both of them legally adopted a

 

LC006023/SUB A/2 - Page 39 of 106

1

child(ren) under the age of eighteen (18) years; or

2

     (iv) Was married to the deceased member for ten (10) or more years and to whom the

3

deceased member was required by a court order to contribute post-divorce support.

4

     (5) “Member” means any person included in the membership of the retirement system

5

under the provisions of this chapter.

6

     (6) “Prior service” means service as a teacher rendered prior to the first day of July, 1949,

7

certified on the teacher’s prior service certificate and allowable as prior service under the provisions

8

of this chapter.

9

     (7) “Retired teacher” means any teacher who retired prior to July 1, 1949, pursuant to the

10

provisions of G.L. 1938, ch. 195, as amended, and who on June 30, 1949, was in receipt of a pension

11

under the provisions of that chapter.

12

     (8) “Retirement system” and “system” means the employees’ retirement system of the state

13

of Rhode Island created by chapter 8 of title 36, and “retirement board” means the board established

14

under that chapter.

15

     (9) “Salary” or “compensation” includes any and all salary paid for teaching services

16

regardless of whether any part of the salary or compensation is derived from any state or federal

17

grant or appropriation for teachers’ salaries, as the term is defined in § 36-8-1(8). “Average

18

compensation” shall be defined in accordance with section 36-8-1(5)(a).

19

     (10) “Service” means service as a teacher as described in subdivision (12) of this section.

20

Periods of employment as teacher, principal, assistant principal, supervisor, superintendent, or

21

assistant superintendent shall be combined in computing periods of service and employment.

22

     (11) “Spouse” means the surviving person who was married to a deceased member, but

23

only if the surviving person meets one of the following conditions:

24

     (i) Was married to the deceased member for not less than one year immediately prior to the

25

date on which the member died;

26

     (ii) Is the mother or father of the deceased member’s child(ren);

27

     (iii) Legally adopted the deceased member’s child(ren) while married to the deceased

28

member and while the child(ren) was under the age of eighteen (18) years; or

29

     (iv) Was married to the deceased member at the time both of them legally adopted a

30

child(ren) under the age of eighteen (18) years.

31

     (12) “Teacher” means a person required to hold a certificate of qualification issued by or

32

under the authority of the board of regents for council on elementary and secondary education

33

and who is engaged in teaching as their principal occupation and is regularly employed as a teacher

34

in the public schools of any city or town in the state, or any formalized, commissioner approved,

 

LC006023/SUB A/2 - Page 40 of 106

1

cooperative service arrangement. The term includes a person employed as a teacher, supervisor,

2

principal, assistant principal, superintendent, or assistant superintendent of schools, director,

3

assistant director, coordinator, consultant, dean, assistant dean, educational administrator, nurse

4

teacher, and attendance officer or any person who has worked in the field of education or is working

5

in the field of education who holds a teaching or administrative certificate. In determining the

6

number of days served by a teacher the total number of days served in any public school of any city

7

or town in the state may be combined for any one school year. The term also includes a school

8

business administrator whether or not the administrator holds a teaching or administrative

9

certificate, and also includes occupational therapists and physical therapists licensed by the

10

department of health and employed by a school committee in the state, or by any formalized,

11

commissioner approved, cooperative service arrangement.

12

     (13) “Teaching” includes teaching, supervising, and superintending or assistant

13

superintending of schools.

14

     (14) “Total service” means prior service as defined in subdivision (6) of this section, plus

15

service rendered as a member of the system on or after the first day of July, 1949.

16

     (15) For purposes of this chapter, “domestic partner” shall be defined as a person who,

17

prior to the decedent’s death, was in an exclusive, intimate, and committed relationship with the

18

decedent, and who certifies by affidavit that their relationship met the following qualifications:

19

     (i) Both partners were at least eighteen (18) years of age and were mentally competent to

20

contract;

21

     (ii) Neither partner was married to anyone else;

22

     (iii) Partners were not related by blood to a degree that would prohibit marriage in the state

23

of Rhode Island;

24

     (iv) Partners resided together and had resided together for at least one year at the time of

25

death; and

26

     (v) Partners were financially interdependent as evidenced by at least two (2) of the

27

following:

28

     (A) Domestic partnership agreement or relationship contract;

29

     (B) Joint mortgage or joint ownership of primary residence;

30

     (C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint

31

credit account; (IV) Joint lease; and/or

32

     (D) The domestic partner had been designated as a beneficiary for the decedent’s will,

33

retirement contract, or life insurance.

34

     (b) The masculine pronoun wherever used shall also include the feminine pronoun.

 

LC006023/SUB A/2 - Page 41 of 106

1

     (c) Any term not specifically defined in this chapter and specifically defined in chapters 8

2

— 10 of title 36 shall have the same definition as set forth in chapters 8 — 10 of title 36.

3

     SECTION 5. Section 20-2.1-9 of the General Laws in Chapter 20-2.1 entitled "Commercial

4

Fishing Licenses" is hereby amended to read as follows:

5

     20-2.1-9. Powers and duties of the director.

6

     It shall be the duty of the director to adopt, implement effective January 1, 2003, and

7

maintain a commercial fisheries licensing system that shall incorporate and be consistent with the

8

purposes of this chapter; in performance of this duty, the director shall follow the guidelines and

9

procedures set forth below:

10

     (1) The rulemaking powers of the director to accomplish the purposes of this chapter shall

11

include the following with regard to commercial fishing licenses and commercial fishing by license

12

holders:

13

     (i) Types of licenses and/or license endorsement consistent with the provisions of this

14

chapter and applicable sections of this title, and limitations on levels of effort and/or on catch by

15

type of license and/or license endorsement;

16

     (ii) Design, use, and identification of gear;

17

     (iii) Declarations for data collection purposes of vessels used in commercial fishing, which

18

declaration requirements shall in no way, except as otherwise provided for in law, restrict the use

19

of any vessel less than twenty-five feet (25′) in length overall by appropriate holders of commercial

20

fishing licenses;

21

     (iv) Areas in Rhode Island waters where commercial fishing of different types may take

22

place, and where it may be prohibited or limited, and the times and/or seasons when commercial

23

fishing by type or species may be allowed, restricted, or prohibited;

24

     (v) Limitations and/or restrictions on effort, gear, catch, or number of license holders and

25

endorsements; and

26

     (vi) Emergency rules, as provided for in chapter 35 of title 42, to protect an unexpectedly

27

imperiled fishery resource to provide access to a fisheries resource that is unexpectedly more

28

abundant and to protect the public health and safety from an unexpected hazard or risk. The marine

29

fisheries council shall be notified of all emergency rules on or before their effective date, and no

30

emergency rule shall become a final rule unless it is promulgated as provided for in subdivision (3)

31

of this section.

32

     (2) When implementing the system of licensure set forth in §§ 20-2.1-4, 20-2.1-5, 20-2.1-

33

6, and 20-2.1-7, and other provisions of this title pertaining to commercial fishing licenses, permits,

34

and registrations, the director shall consider the effect of the measure on the access of Rhode

 

LC006023/SUB A/2 - Page 42 of 106

1

Islanders to commercial fishing, and when establishing limitations on effort and/or catch:

2

     (i) The effectiveness of the limitation:

3

     (A) In achieving duly established conservation or fisheries regeneration goals or

4

requirements;

5

     (B) In maintaining the viability of fisheries resources overall, including particularly, the

6

reduction of by-catch, discards, and fish mortality, and in improving efficiency in the utilization of

7

fisheries resources;

8

     (C) In complementing federal and regional management programs and the reciprocal

9

arrangements with other states;

10

     (ii) The impact of the limitation on persons engaged in commercial fishing on:

11

     (A) Present participation in the fishery, including ranges and average levels of participation

12

by different types or classes of participants;

13

     (B) Historical fishing practices in, and dependence on, the fishery;

14

     (C) The economics of the fishery;

15

     (D) The potential effects on the safety of human life at sea;

16

     (E) The cultural and social framework relevant to the fishery and any affected fishing

17

communities; and

18

     (iii) Any other relevant considerations that the director finds in the rulemaking process;

19

     (iv) The following standards for fishery conservation and management, which standards

20

shall be understood and applied so far as practicable and reasonable in a manner consistent with

21

federal fisheries law, regulation, and guidelines:

22

     (A) Conservation and management measures shall prevent overfishing, while achieving,

23

on a continuing basis, the optimum yield from each fishery;

24

     (B) Conservation and management measures shall be based upon the best scientific

25

information available and analysis of impacts shall consider ecological, economic, and social

26

consequences of the fishery as a whole;

27

     (C) Conservation and management measures shall, where practicable, consider efficiency

28

in the utilization of fisheries resources, except that no such measure shall have economic allocation

29

as its sole purpose;

30

     (D) Conservation and management measures shall take into account and allow for

31

variations among, and contingencies in, fisheries, fishery resources, and catches;

32

     (E) Conservation and management measures shall, where practicable, minimize costs and

33

avoid unnecessary duplication;

34

     (F) Conservation and management measures shall, consistent with conservation

 

LC006023/SUB A/2 - Page 43 of 106

1

requirements of this chapter (including the prevention and of overfishing and rebuilding of

2

overfished stocks), take into account the importance of fishery resources to fishing communities in

3

order to (I) Provide for the sustained participation of those communities and (II) To the extent

4

practicable, minimize adverse economic impacts on those communities;

5

     (G) Conservation and management measures shall, to the extent practicable: (I) Minimize

6

by-catch and (II) To the extent by-catch cannot be avoided, minimize the mortality of the by-catch;

7

and

8

     (H) Conservation and management measures shall, to the extent practicable, promote the

9

safety of human life at sea.

10

     (3) Unless otherwise specified, rules and regulations adopted pursuant to this chapter shall

11

conform with the requirements of the Administrative Procedures Act, chapter 35 of title 42.

12

     (4) Matters to be considered in establishing license programs under this chapter. The

13

director shall be consistent with the requirements of § 20-2.1-2(6) in establishing and implementing

14

a licensing system in accordance with the provisions of this chapter that shall be designed to

15

accomplish marine fisheries management objectives. The licensing system may limit access to

16

fisheries, particularly commercial fisheries for which there is adequate or greater than adequate

17

harvesting capacity currently in the fishery and for which either a total allowable catch has been

18

set or a total allowable level of fishing effort has been established for the purpose of preventing

19

overfishing of the resource or the dissipation of the economic yield from the fishery. This authority

20

shall include the authority of the director to:

21

     (i) Differentiate between the level of access to fisheries provided to license holders or

22

potential license holders on the basis of past performance, dependence on the fishery, or other

23

criteria;

24

     (ii) Establish prospective control dates that provide notice to the public that access to, and

25

levels of participation in, a fishery may be restricted and that entrance into, or increases in levels

26

of participation in a fishery after the control date may not be treated in the same way as participation

27

in the fishery prior to the control date; retroactive control dates are prohibited and shall not be used

28

or implemented, unless expressly required by federal law, regulation, or court decision; and

29

     (iii) Establish levels of catch by type of license and/or endorsement that shall provide for

30

basic and full harvest and gear levels; quotas may be allocated proportionally among classes of

31

license holders as needed to maintain the viability of different forms of commercial fishing.

32

     (5) [Deleted by P.L. 2023, ch. 281, § 2 and P.L. 2023, ch. 282, § 2.]

33

     (6) The director, with the advice of the marine fisheries council, shall report annually to

34

the governor, general assembly, and to the citizens concerning the conservation and management

 

LC006023/SUB A/2 - Page 44 of 106

1

of the fishery resources of the state, addressing stock status, performance of fisheries and quotas,

2

management and licensing programs, and other matters of importance.

3

     SECTION 6. Section 21-27-6.2 of the General Laws in Chapter 21-27 entitled "Sanitation

4

in Food Establishments" is hereby amended to read as follows:

5

     21-27-6.2. Cottage food manufacture.

6

     Notwithstanding the other provisions of this chapter, the department of health shall register

7

cottage food manufacture and the sale of the products of cottage food manufacture direct to

8

consumers whether by pickup or delivery within the state, provided that the requirements of this

9

section are met.

10

     (1) The cottage food products shall be produced in a kitchen that is on the premises of a

11

home and meets the standards for kitchens as provided for in minimum housing standards, adopted

12

pursuant to chapter 24.2 of title 45 and the Housing Maintenance and Occupancy Code, adopted

13

pursuant to chapter 24.3 of title 45, and in addition the kitchen shall:

14

     (i) Be equipped at minimum with either a two (2) compartment sink or a dishwasher that

15

reaches one hundred fifty degrees Fahrenheit (150° F) after the final rinse and drying cycle and a

16

one compartment sink;

17

     (ii) Have sufficient area or facilities, such as portable dish tubs and drain boards, for the

18

proper handling of soiled utensils prior to washing and of cleaned utensils after washing so as not

19

to interfere with safe food handling; equipment, utensils, and tableware shall be air dried;

20

     (iii) Have drain boards and food preparation surfaces that shall be of a nonabsorbent,

21

corrosion resistant material such as stainless steel, formica, or other chip resistant, nonpitted

22

surface;

23

     (iv) Have self-closing doors for bathrooms that open directly into the kitchen;

24

     (v) If the home is on private water supply, the water supply must be tested once per year;

25

     (vi) Notwithstanding this subsection, the cottage food products may also be produced in a

26

commercial kitchen licensed by the department and leased or rented by the cottage food registrant

27

provided that a record be maintained as to the dates the commercial kitchen was used and that

28

ingredients used in the production of cottage foods are transported according to applicable food

29

safety standards and regulations promulgated by the department.

30

     (2) The cottage food products are prepared and produced ready for sale under the following

31

conditions:

32

     (i) Pets are kept out of food preparation and food storage areas at all times;

33

     (ii) Cooking facilities shall not be used for domestic food purposes while cottage food

34

products are being prepared;

 

LC006023/SUB A/2 - Page 45 of 106

1

     (iii) Garbage is placed and stored in impervious covered receptacles before it is removed

2

from the kitchen, which removal shall be at least once each day that the kitchen is used for cottage

3

food manufacture;

4

     (iv) Any laundry facilities that may be in the kitchen shall not be used during cottage food

5

manufacture;

6

     (v) Recipe(s) for each cottage food product with all the ingredients and quantities listed,

7

and processing times and procedures, are maintained in the kitchen for review and inspection;

8

     (vi) An affixed label that contains:

9

     (A) Name, address, and telephone number;

10

     (B) The ingredients of the cottage food product, in descending order of predominance by

11

weight or volume;

12

     (C) Allergen information, as specified by federal and state labeling requirements, such as

13

milk, eggs, tree nuts, peanuts, wheat, and soybeans; and

14

     (D) The following statement printed in at least ten-point type in a clear and conspicuous

15

manner that provides contrast to the background label: “Made by a Cottage Food Business

16

Registrant that is not Subject to Routine Government Food Safety Inspection,” unless products

17

have been prepared in a commercial kitchen licensed by the department.

18

     (3) Cottage food manufacture shall be limited to the production of baked goods that do not

19

require refrigeration or time/temperature control for safety, including but not limited to:

20

     (i) Double crust pies;

21

     (ii) Yeast breads;

22

     (iii) Biscuits, brownies, cookies, muffins; and

23

     (iv) Cakes that do not require refrigeration or temperature-controlled environment; and

24

     (v) Other goods as defined by the department.

25

     (4) Each cottage food manufacturer shall be registered with the department of health and

26

shall require a notarized affidavit of compliance, in any form that the department may require, from

27

the applicant that the requirements of this section have been met and the operation of the kitchen

28

shall be in conformity with the requirements of this section. Prior to the initial registration, each

29

cottage food manufacturer is required to successfully complete a Food Safety Manager Course, any

30

American Standards Institute approved food handler course, or any other course approved by the

31

department. A certificate of registration shall be issued by the department upon the payment of a

32

fee as set forth in § 23-1-54 and the submission of an affidavit of compliance. The certificate of

33

registration shall be valid for one year after the date of issuance; provided, however, that the

34

certificate may be revoked by the director at any time for noncompliance with the requirements of

 

LC006023/SUB A/2 - Page 46 of 106

1

the section. The certificate of registration, with a copy of the affidavit of compliance, shall be kept

2

in the kitchen where the cottage food manufacture takes place. The director of health shall have the

3

authority to develop and issue a standard form for the affidavit of compliance to be used by persons

4

applying for a certificate of registration; the form shall impose no requirements or certifications

5

beyond those set forth in this section and § 21-27-1(6) 21-27-6.1. No certificates of registration

6

shall be issued by the department prior to November 1, 2022.

7

     (5) No such operation shall engage in consignment or wholesale sales. The following

8

additional locational sales by any such cottage food operation shall be prohibited: (i) Grocery

9

stores; (ii) Restaurants; (iii) Long-term-care facilities; (iv) Group homes; (v) Daycare facilities;

10

and (vi) Schools. Advertising and sales by internet, mail, and phone are permissible, provided the

11

cottage food licensee or their designee shall deliver, in person, to the customer within the state.

12

     (6) Total annual gross sales for a cottage food operation shall not exceed fifty thousand

13

dollars ($50,000) per calendar year. If annual gross sales exceed the maximum annual gross sales

14

amount allowed, the cottage food registrant shall either obtain a food processor license or cease

15

operations. The director of health shall request documentation to verify the annual gross sales figure

16

of any cottage food operation.

17

     (7) Sales on all cottage foods are subject to applicable sales tax pursuant to § 44-18-7.

18

     (8) The director of health or designee may inspect a cottage food operation at any time to

19

ensure compliance with the provisions of this section. Nothing in this section shall be construed to

20

prohibit the director of health or designee of the director from investigating the registered area of a

21

cottage food operation in response to a foodborne illness outbreak, consumer complaint, or other

22

public health emergency.

23

     SECTION 7. Section 21-28.6-12 of the General Laws in Chapter 21-28.6 entitled "The

24

Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act" is hereby amended to read as

25

follows:

26

     21-28.6-12. Compassion centers.

27

     (a) A compassion center licensed under this section may acquire, possess, cultivate,

28

manufacture, deliver, transfer, transport, supply, or dispense medical marijuana, or related supplies

29

and educational materials, to registered qualifying patients and their registered primary caregivers

30

or authorized purchasers, or out-of-state patient cardholders or other marijuana establishment

31

licensees. Except as specifically provided to the contrary, all provisions of this chapter (the Edward

32

O. Hawkins and Thomas C. Slater medical marijuana act), apply to a compassion center unless the

33

provision(s) conflict with a provision contained in this section.

34

     (b) License of compassion centers — authority of the departments of health and

 

LC006023/SUB A/2 - Page 47 of 106

1

business regulation:

2

     (1) Not later than ninety (90) days after the effective date of this chapter, the department

3

of health shall promulgate regulations governing the manner in which it shall consider applications

4

for licenses for compassion centers, including regulations governing:

5

     (i) The form and content of license and renewal applications;

6

     (ii) Minimum oversight requirements for compassion centers;

7

     (iii) Minimum record-keeping requirements for compassion centers;

8

     (iv) Minimum security requirements for compassion centers; and

9

     (v) Procedures for suspending, revoking, or terminating the license of compassion centers

10

that violate the provisions of this section or the regulations promulgated pursuant to this subsection.

11

     (2) Within ninety (90) days of the effective date of this chapter, the department of health

12

shall begin accepting applications for the operation of a single compassion center.

13

     (3) Within one hundred fifty (150) days of the effective date of this chapter, the department

14

of health shall provide for at least one public hearing on the granting of an application to a single

15

compassion center.

16

     (4) Within one hundred ninety (190) days of the effective date of this chapter, the

17

department of health shall grant a single license to a single compassion center, providing at least

18

one applicant has applied who meets the requirements of this chapter.

19

     (5) If at any time after fifteen (15) months after the effective date of this chapter, there is

20

no operational compassion center in Rhode Island, the department of health shall accept

21

applications, provide for input from the public, and issue a license for a compassion center if a

22

qualified applicant exists.

23

     (6) Within two (2) years of the effective date of this chapter, the department of health shall

24

begin accepting applications to provide licenses for two (2) additional compassion centers. The

25

department shall solicit input from the public, and issue licenses if qualified applicants exist.

26

     (7)(i) Any time a compassion center license is revoked, is relinquished, or expires on or

27

before December 31, 2016, the department of health shall accept applications for a new compassion

28

center.

29

     (ii) Any time a compassion center license is revoked, is relinquished, or expires on or after

30

January 1, 2017, the department of business regulation shall accept applications for a new

31

compassion center.

32

     (8)(i) If at any time after three (3) years after the effective date of this chapter and on or

33

before December 31, 2016, fewer than three (3) compassion centers are holding valid licenses in

34

Rhode Island, the department of health shall accept applications for a new compassion center. If at

 

LC006023/SUB A/2 - Page 48 of 106

1

any time on or after January 1, 2017, fewer than three (3) compassion centers are holding valid

2

licenses in Rhode Island, the department of business regulation shall accept applications for a new

3

compassion center. There shall be nine (9) compassion centers that may hold valid licenses at one

4

time. If at any time on or after July 1, 2019, fewer than nine (9) compassion centers are holding

5

valid licenses in Rhode Island, the department of business regulation shall accept applications for

6

new compassion centers and shall continue the process until nine (9) licenses have been issued by

7

the department of business regulation.

8

     (9) Any compassion center application selected for approval by the department of health

9

on or before December 31, 2016, or selected for approval by the department of business regulation

10

on or after January 1, 2017, shall remain in full force and effect, notwithstanding any provisions of

11

this chapter to the contrary, and shall be subject to state law adopted herein and rules and regulations

12

adopted by the departments of health and business regulation subsequent to passage of this

13

legislation.

14

     (10) A licensed cultivator may apply for, and be issued, an available compassion center

15

license, provided that the licensed cultivation premises is disclosed on the compassion center

16

application as the permitted second location for growing medical marijuana in accordance with

17

subsection (c)(i) (c)(1)(iii) of this section. If a licensed cultivator is issued an available compassion

18

center license, their cultivation facility license will merge with and into their compassion center

19

license in accordance with regulations promulgated by the department of business regulation. Once

20

merged, the cultivation of medical marijuana may then be conducted under the compassion center

21

license in accordance with this section and the cultivation license will be considered null and void

22

and of no further force or effect.

23

     (c) Compassion center and agent applications and license:

24

     (1) Each application for a compassion center shall be submitted in accordance with

25

regulations promulgated by the department of business regulation and shall include, but not be

26

limited to:

27

     (i) A non-refundable application fee paid to the department in the amount of ten thousand

28

dollars ($10,000);

29

     (ii) The proposed legal name and proposed articles of incorporation of the compassion

30

center;

31

     (iii) The proposed physical address of the compassion center, if a precise address has been

32

determined, or, if not, the general location where it would be located. This may include a second

33

location for the cultivation of medical marijuana;

34

     (iv) A description of the enclosed, locked facility that would be used in the cultivation of

 

LC006023/SUB A/2 - Page 49 of 106

1

medical marijuana;

2

     (v) The name, address, and date of birth of each principal officer and board member of the

3

compassion center;

4

     (vi) Proposed security and safety measures that shall include at least one security alarm

5

system for each location, planned measures to deter and prevent the unauthorized entrance into

6

areas containing marijuana and the theft of marijuana, as well as a draft, employee-instruction

7

manual including security policies, safety and security procedures, personal safety, and crime-

8

prevention techniques; and

9

     (vii) Proposed procedures to ensure accurate record keeping.

10

     (2)(i) For applications submitted on or before December 31, 2016, any time one or more

11

compassion center license applications are being considered, the department of health shall also

12

allow for comment by the public and shall solicit input from registered qualifying patients,

13

registered primary caregivers, and the towns or cities where the applicants would be located;

14

     (ii) For applications submitted on or after January 1, 2017, any time one or more

15

compassion center license applications are being considered, the department of business regulation

16

shall also allow for comment by the public and shall solicit input from registered qualifying

17

patients, registered primary caregivers, and the towns or cities where the applicants would be

18

located.

19

     (3) Each time a new compassion center license is issued, the decision shall be based upon

20

the overall health needs of qualified patients and the safety of the public, including, but not limited

21

to, the following factors:

22

     (i) Convenience to patients from areas throughout the state of Rhode Island;

23

     (ii) The applicant’s ability to provide a steady supply to the registered qualifying patients

24

in the state;

25

     (iii) The applicant’s experience running a non-profit or business;

26

     (iv) The interests of qualifying patients regarding which applicant be granted a license;

27

     (v) The interests of the city or town where the dispensary would be located taking into

28

consideration need and population;

29

     (vi) Nothing herein shall prohibit more than one compassion center being geographically

30

located in any city or town;

31

     (vii) The sufficiency of the applicant’s plans for record keeping and security, which records

32

shall be considered confidential healthcare information under Rhode Island law and are intended

33

to be deemed protected healthcare information for purposes of the Federal Health Insurance

34

Portability and Accountability Act of 1996, as amended; and

 

LC006023/SUB A/2 - Page 50 of 106

1

     (viii) The sufficiency of the applicant’s plans for safety and security, including proposed

2

location, security devices employed, and staffing.

3

     (4) A compassion center approved by the department of health on or before December 31,

4

2016, shall submit the following to the department before it may begin operations:

5

     (i) A fee paid to the department in the amount of five thousand dollars ($5,000);

6

     (ii) The legal name and articles of incorporation of the compassion center;

7

     (iii) The physical address of the compassion center; this may include a second address for

8

the secure cultivation of marijuana;

9

     (iv) The name, address, and date of birth of each principal officer and board member of the

10

compassion center; and

11

     (v) The name, address, and date of birth of any person who will be an agent of, employee,

12

or volunteer of the compassion center at its inception.

13

     (5)(i) A compassion center approved or renewed by the department of business regulation

14

on or after January 1, 2017, but before July 1, 2019, shall submit materials pursuant to regulations

15

promulgated by the department of business regulation before it may begin operations:

16

     (A) A fee paid to the department in the amount of five thousand dollars ($5,000);

17

     (B) The legal name and articles of incorporation of the compassion center;

18

     (C) The physical address of the compassion center; this may include a second address for

19

the secure cultivation of medical marijuana;

20

     (D) The name, address, and date of birth of each principal officer and board member of the

21

compassion center;

22

     (E) The name, address, and date of birth of any person who will be an agent, employee, or

23

volunteer of the compassion center at its inception.

24

     (ii) A compassion center approved or renewed by the department of business regulation on

25

or after July 1, 2019, shall submit materials pursuant to regulations promulgated by the department

26

of business regulation before it may begin operations, which shall include but not be limited to:

27

     (A) A fee paid to the department in the amount of five hundred thousand dollars

28

($500,000);

29

     (B) The legal name and articles of incorporation of the compassion center;

30

     (C) The physical address of the compassion center; this may include a second address for

31

the secure cultivation of medical marijuana;

32

     (D) The name, address, and date of birth of each principal officer and board member of the

33

compassion center, and any person who has a direct or indirect ownership interest in any marijuana

34

establishment licensee, which ownership interest shall include, but not be limited to, any interests

 

LC006023/SUB A/2 - Page 51 of 106

1

arising pursuant to the use of shared management companies, management agreements or other

2

agreements that afford third-party management or operational control, or other familial or business

3

relationships between compassion center or cultivator owners, members, officers, directors,

4

managers, investors, agents, or key persons that effect dual license interests as determined by the

5

department of business regulation;

6

     (E) The name, address, and date of birth of any person who will be an agent, employee, or

7

volunteer of the compassion center at its inception.

8

     (6) Except as provided in subsection (c)(7) of this section, the department of health or the

9

department of business regulation shall issue each principal officer, board member, agent,

10

volunteer, and employee of a compassion center a registry identification card or renewal card after

11

receipt of the person’s name, address, date of birth; a fee in an amount established by the department

12

of health or the department of business regulation; and, except in the case of an employee,

13

notification to the department of health or the department of business regulation by the department

14

of public safety division of state police, attorney general’s office, or local law enforcement that the

15

registry identification card applicant has not been convicted of a felony drug offense or has not

16

entered a plea of nolo contendere for a felony drug offense and received a sentence of probation.

17

Each card shall specify that the cardholder is a principal officer, board member, agent, volunteer,

18

or employee of a compassion center and shall contain the following:

19

     (i) The name, address, and date of birth of the principal officer, board member, agent,

20

volunteer, or employee;

21

     (ii) The legal name of the compassion center to which the principal officer, board member,

22

agent, volunteer, or employee is affiliated;

23

     (iii) A random identification number that is unique to the cardholder;

24

     (iv) The date of issuance and expiration date of the registry identification card; and

25

     (v) A photograph, if the department of health or the department of business regulation

26

decides to require one.

27

     (7) Except as provided in this subsection, neither the department of health nor the

28

department of business regulation shall issue a registry identification card to any principal officer,

29

board member, or agent, of a compassion center who has been convicted of a felony drug offense

30

or has entered a plea of nolo contendere for a felony drug offense and received a sentence of

31

probation. If a registry identification card is denied, the compassion center will be notified in

32

writing of the purpose for denying the registry identification card. A registry identification card

33

may be granted if the offense was for conduct that occurred prior to the enactment of the Edward

34

O. Hawkins and Thomas C. Slater medical marijuana act or that was prosecuted by an authority

 

LC006023/SUB A/2 - Page 52 of 106

1

other than the state of Rhode Island and for which the Edward O. Hawkins and Thomas C. Slater

2

medical marijuana act would otherwise have prevented a conviction.

3

     (i) All registry identification card applicants shall apply to the department of public safety

4

division of state police, the attorney general’s office, or local law enforcement for a national

5

criminal identification records check that shall include fingerprints submitted to the federal bureau

6

of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo

7

contendere for a felony drug offense with a sentence of probation, and in accordance with the rules

8

promulgated by the department of health and the department of business regulation, the department

9

of public safety division of state police, the attorney general’s office, or local law enforcement shall

10

inform the applicant, in writing, of the nature of the felony and the department of public safety

11

division of state police shall notify the department of health or the department of business

12

regulation, in writing, without disclosing the nature of the felony, that a felony drug offense

13

conviction or a plea of nolo contendere for a felony drug offense with probation has been found.

14

     (ii) In those situations in which no felony drug offense conviction or plea of nolo

15

contendere for a felony drug offense with probation has been found, the department of public safety

16

division of state police, the attorney general’s office, or local law enforcement shall inform the

17

applicant and the department of health or the department of business regulation, in writing, of this

18

fact.

19

     (iii) All registry identification card applicants, except for employees with no ownership,

20

equity, financial interest, or managing control of a marijuana establishment license, shall be

21

responsible for any expense associated with the criminal background check with fingerprints.

22

     (8) A registry identification card of a principal officer, board member, agent, volunteer,

23

employee, or any other designation required by the department of business regulation shall expire

24

one year after its issuance, or upon the expiration of the licensed organization’s license, or upon

25

the termination of the principal officer, board member, agent, volunteer, or employee’s relationship

26

with the compassion center, whichever occurs first.

27

     (9) A compassion center cardholder shall notify and request approval from the department

28

of business regulation of any change in his or her name or address within ten (10) days of the

29

change. A compassion center cardholder who fails to notify the department of business regulation

30

of any of these changes is responsible for a civil infraction, punishable by a fine of no more than

31

one hundred fifty dollars ($150).

32

     (10) When a compassion center cardholder notifies the department of health or the

33

department of business regulation of any changes listed in this subsection, the department shall

34

issue the cardholder a new registry identification card within ten (10) days of receiving the updated

 

LC006023/SUB A/2 - Page 53 of 106

1

information and a ten-dollar ($10.00) fee.

2

     (11) If a compassion center cardholder loses his or her registry identification card, he or

3

she shall notify the department of health or the department of business regulation and submit a ten-

4

dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the department

5

shall issue a new registry identification card with new random identification number.

6

     (12) On or before December 31, 2016, a compassion center cardholder shall notify the

7

department of health of any disqualifying criminal convictions as defined in subsection (c)(7) of

8

this section. The department of health may choose to suspend and/or revoke his or her registry

9

identification card after the notification.

10

     (13) On or after January 1, 2017, a compassion center cardholder shall notify the

11

department of business regulation of any disqualifying criminal convictions as defined in

12

subsection (c)(7) of this section. The department of business regulation may choose to suspend

13

and/or revoke his or her registry identification card after the notification.

14

     (14) If a compassion center cardholder violates any provision of this chapter or regulations

15

promulgated hereunder as determined by the departments of health and business regulation, his or

16

her registry identification card may be suspended and/or revoked.

17

     (d) Expiration or termination of compassion center:

18

     (1) On or before December 31, 2016, a compassion center’s license shall expire two (2)

19

years after its license is issued. On or after January 1, 2017, a compassion center’s license shall

20

expire one year after its license is issued. The compassion center may submit a renewal application

21

beginning sixty (60) days prior to the expiration of its license.

22

     (2) The department of health or the department of business regulation shall grant a

23

compassion center’s renewal application within thirty (30) days of its submission if the following

24

conditions are all satisfied:

25

     (i) The compassion center submits the materials required under subsections (c)(4) and

26

(c)(5) of this section, including a five-hundred-thousand-dollar ($500,000) fee;

27

     (ii) The compassion center’s license has never been suspended for violations of this chapter

28

or regulations issued pursuant to this chapter; and

29

     (iii) The department of business regulation finds that the compassion center is adequately

30

providing patients with access to medical marijuana at reasonable rates.

31

     (3) If the department of health or the department of business regulation determines that any

32

of the conditions listed in subsections (d)(2)(i) — (iii) of this section have not been met, the

33

department may begin an open application process for the operation of a compassion center. In

34

granting a new license, the department of health or the department of business regulation shall

 

LC006023/SUB A/2 - Page 54 of 106

1

consider factors listed in subsection (c)(3) of this section.

2

     (4) The department of business regulation shall issue a compassion center one or more

3

thirty-day (30) temporary licenses after that compassion center’s license would otherwise expire if

4

the following conditions are all satisfied:

5

     (i) The compassion center previously applied for a renewal, but the department had not yet

6

come to a decision;

7

     (ii) The compassion center requested a temporary license; and

8

     (iii) The compassion center has not had its license suspended or revoked due to violations

9

of this chapter or regulations issued pursuant to this chapter.

10

     (5) A compassion center’s license shall be denied, suspended, or subject to revocation if

11

the compassion center:

12

     (i) Possesses an amount of marijuana exceeding the limits established by this chapter;

13

     (ii) Is in violation of the laws of this state;

14

     (iii) Is in violation of other departmental regulations;

15

     (iv) Employs or enters into a business relationship with a medical practitioner who provides

16

written certification of a qualifying patient’s medical condition; or

17

     (v) If any compassion center owner, member, officer, director, manager, investor, agent,

18

or key person as defined in regulations promulgated by the department of business regulation, has

19

any interest, direct or indirect, in another compassion center or another licensed cultivator, except

20

as permitted in subsection (b)(10) of this section or pursuant to § 21-28.11-19. Prohibited interests

21

shall also include interests arising pursuant to the use of shared management companies,

22

management agreements, or other agreements that afford third-party management or operational

23

control, or other familial or business relationships between compassion center or cultivator owners,

24

members, officers, directors, managers, investors, agents, or key persons that effect dual license

25

interests as determined by the department of business regulation.

26

     (e) Inspection. Compassion centers are subject to reasonable inspection by the department

27

of health, division of facilities regulation, and the department of business regulation. During an

28

inspection, the departments may review the compassion center’s confidential records, including its

29

dispensing records, which shall track transactions according to qualifying patients’ registry

30

identification numbers to protect their confidentiality.

31

     (f) Compassion center requirements:

32

     (1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit

33

of its patients. A compassion center need not be recognized as a tax-exempt organization by the

34

Internal Revenue Service. A compassion center shall be subject to regulations promulgated by the

 

LC006023/SUB A/2 - Page 55 of 106

1

department of business regulation for general operations and record keeping, which shall include,

2

but not be limited to:

3

     (i) Minimum security and surveillance requirements;

4

     (ii) Minimum requirements for workplace safety and sanitation;

5

     (iii) Minimum requirements for product safety and testing;

6

     (iv) Minimum requirements for inventory tracking and monitoring;

7

     (v) Minimum requirements for the secure transport and transfer of medical marijuana;

8

     (vi) Minimum requirements to address odor mitigation;

9

     (vii) Minimum requirements for product packaging and labeling;

10

     (viii) Minimum requirements and prohibitions for advertising;

11

     (ix) Minimum requirements for the testing and destruction of marijuana. Wherever

12

destruction of medical marijuana and medical marijuana product is required to bring a person or

13

entity into compliance with any provision of this chapter, any rule or regulation promulgated

14

thereunder, or any administrative order issued in accordance therewith, the director of the

15

department of business regulation may designate his or her employees or agents to facilitate the

16

destruction;

17

     (x) A requirement that if a compassion center violates this chapter, or any regulation

18

thereunder, and the department of business regulation determines that violation does not pose an

19

immediate threat to public health or public safety, the compassion center shall pay to the department

20

of business regulation a fine of no less than five-hundred dollars ($500); and

21

     (xi) A requirement that if a compassion center violates this chapter, or any regulation

22

promulgated hereunder, and the department of business regulation determines that the violation

23

poses an immediate threat to public health or public safety, the compassion center shall pay to the

24

department of business regulation a fine of no less than two thousand dollars ($2,000) and the

25

department shall be entitled to pursue any other enforcement action provided for under this chapter

26

and the regulations.

27

     (2) A compassion center may not be located within one thousand feet (1,000′) of the

28

property line of a preexisting public or private school.

29

     (3) On or before December 31, 2016, a compassion center shall notify the department of

30

health within ten (10) days of when a principal officer, board member, agent, volunteer, or

31

employee ceases to work at the compassion center. On or after January 1, 2017, a compassion

32

center shall notify the department of business regulation within ten (10) days of when a principal

33

officer, board member, agent, volunteer, or employee ceases to work at the compassion center. His

34

or her card shall be deemed null and void and the person shall be liable for any penalties that may

 

LC006023/SUB A/2 - Page 56 of 106

1

apply to any nonmedical possession or use of marijuana by the person.

2

     (4)(i) On or before December 31, 2016, a compassion center shall notify the department of

3

health in writing of the name, address, and date of birth of any new principal officer, board member,

4

agent, volunteer, or employee and shall submit a fee in an amount established by the department

5

for a new registry identification card before that person begins his or her relationship with the

6

compassion center;

7

     (ii) On or after January 1, 2017, a compassion center shall notify the department of business

8

regulation, in writing, of the name, address, and date of birth of any new principal officer, board

9

member, agent, volunteer, or employee and shall submit a fee in an amount established by the

10

department of business regulation for a new registry identification card before that person begins

11

his or her relationship with the compassion center;

12

     (5) A compassion center shall implement appropriate security measures to deter and

13

prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and

14

shall ensure that each location has an operational security alarm system. Each compassion center

15

shall request that the department of public safety division of state police visit the compassion center

16

to inspect the security of the facility and make any recommendations regarding the security of the

17

facility and its personnel within ten (10) days prior to the initial opening of each compassion center.

18

The recommendations shall not be binding upon any compassion center, nor shall the lack of

19

implementation of the recommendations delay or prevent the opening or operation of any center.

20

If the department of public safety division of state police does not inspect the compassion center

21

within the ten-day (10) period, there shall be no delay in the compassion center’s opening.

22

     (6) The operating documents of a compassion center shall include procedures for the

23

oversight of the compassion center and procedures to ensure accurate record keeping.

24

     (7) A compassion center is prohibited from acquiring, possessing, cultivating,

25

manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any

26

purpose except to assist patient cardholders with the medical use of marijuana directly or through

27

the qualifying patient’s primary caregiver or authorized purchaser. This provision shall not apply

28

to hybrid cannabis retailers authorized pursuant to the provisions of § 21-28.11-10.

29

     (8) All principal officers and board members of a compassion center must be residents of

30

the state of Rhode Island.

31

     (9) Each time a new, registered, qualifying patient visits a compassion center, it shall

32

provide the patient with a frequently-asked-questions sheet, designed by the department, that

33

explains the limitations on the right to use medical marijuana under state law.

34

     (10) Effective July 1, 2017, each compassion center shall be subject to any regulations

 

LC006023/SUB A/2 - Page 57 of 106

1

promulgated by the departments of health and business regulation that specify how marijuana must

2

be tested for items, included but not limited to, cannabinoid profile and contaminants.

3

     (11) Effective January 1, 2017, each compassion center shall be subject to any product

4

labeling requirements promulgated by the department of business regulation.

5

     (12) Each compassion center shall develop, implement, and maintain on the premises

6

employee, volunteer, and agent policies and procedures to address the following requirements:

7

     (i) A job description or employment contract developed for all employees and agents, and

8

a volunteer agreement for all volunteers, that includes duties, authority, responsibilities,

9

qualifications, and supervision; and

10

     (ii) Training in, and adherence to, state confidentiality laws.

11

     (13) Each compassion center shall maintain a personnel record for each employee, agent,

12

and volunteer that includes an application and a record of any disciplinary action taken.

13

     (14) Each compassion center shall develop, implement, and maintain on the premises an

14

on-site training curriculum, or enter into contractual relationships with outside resources capable

15

of meeting employee training needs, that includes, but is not limited to, the following topics:

16

     (i) Professional conduct, ethics, and patient confidentiality; and

17

     (ii) Informational developments in the field of medical use of marijuana.

18

     (15) Each compassion center entity shall provide each employee, agent, and volunteer, at

19

the time of his or her initial appointment, training in the following:

20

     (i) The proper use of security measures and controls that have been adopted; and

21

     (ii) Specific procedural instructions on how to respond to an emergency, including robbery

22

or violent accident.

23

     (16) All compassion centers shall prepare training documentation for each employee and

24

volunteer and have employees and volunteers sign a statement indicating the date, time, and place

25

the employee and volunteer received the training and topics discussed, to include name and title of

26

presenters. The compassion center shall maintain documentation of an employee’s and a

27

volunteer’s training for a period of at least six (6) months after termination of an employee’s

28

employment or the volunteer’s volunteering.

29

     (g) Maximum amount of usable marijuana to be dispensed:

30

     (1) A compassion center or principal officer, board member, agent, volunteer, or employee

31

of a compassion center may not dispense more than two and one-half ounces (2.5 oz.) of usable

32

marijuana, or its equivalent, to a qualifying patient directly or through a qualifying patient’s

33

primary caregiver or authorized purchaser during a fifteen-day (15) period.

34

     (2) A compassion center or principal officer, board member, agent, volunteer, or employee

 

LC006023/SUB A/2 - Page 58 of 106

1

of a compassion center may not dispense an amount of usable marijuana, or its equivalent, to a

2

patient cardholder, qualifying patient, a qualifying patient’s primary caregiver, or a qualifying

3

patient’s authorized purchaser that the compassion center, principal officer, board member, agent,

4

volunteer, or employee knows would cause the recipient to possess more marijuana than is

5

permitted under the Edward O. Hawkins and Thomas C. Slater medical marijuana act.

6

     (3) Compassion centers shall utilize a database administered by the departments of health

7

and business regulation. The database shall contain all compassion centers’ transactions according

8

to qualifying patients’, authorized purchasers’, and primary caregivers’ registry identification

9

numbers to protect the confidentiality of patient personal and medical information. Compassion

10

centers will not have access to any applications or supporting information submitted by qualifying

11

patients, authorized purchasers or primary caregivers. Before dispensing marijuana to any patient

12

or authorized purchaser, the compassion center must utilize the database to ensure that a qualifying

13

patient is not dispensed more than two and one-half ounces (2.5 oz.) of usable marijuana or its

14

equivalent directly or through the qualifying patient’s primary caregiver or authorized purchaser

15

during a fifteen-day (15) period.

16

     (4) A compassion center operating as a hybrid cannabis retailer authorized to conduct adult

17

use cannabis sales pursuant to the provisions of § 21-28.11-10 may sell up to one ounce (1 oz.) of

18

cannabis to a person at least twenty-one (21) years of age as an intended consumer, in accordance

19

with the provisions of chapter 28.11 of title 21.

20

     (h) Immunity:

21

     (1) No licensed compassion center shall be subject to prosecution; search, except by the

22

departments pursuant to subsection (e) of this section; seizure; or penalty in any manner, or denied

23

any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business,

24

occupational, or professional licensing board or entity, solely for acting in accordance with this

25

section to assist registered qualifying patients.

26

     (2) No licensed compassion center shall be subject to prosecution, seizure, or penalty in

27

any manner, or denied any right or privilege, including, but not limited to, civil penalty or

28

disciplinary action, by a business, occupational, or professional licensing board or entity, for

29

selling, giving, or distributing marijuana in whatever form, and within the limits established by, the

30

department of health or the department of business regulation to another registered compassion

31

center.

32

     (3) No principal officers, board members, agents, volunteers, or employees of a registered

33

compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in any manner,

34

or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by

 

LC006023/SUB A/2 - Page 59 of 106

1

a business, occupational, or professional licensing board or entity, solely for working for or with a

2

compassion center to engage in acts permitted by this section.

3

     (4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or

4

denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,

5

termination, or loss of employee or pension benefits, for any and all conduct that occurs within the

6

scope of his or her employment regarding the administration, execution and/or enforcement of this

7

act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

8

     (i) Prohibitions:

9

     (1) A compassion center must limit its inventory of seedlings, plants, and marijuana to

10

reflect the projected needs of qualifying patients;

11

     (2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a

12

person other than a patient cardholder or to a qualified patient’s primary caregiver or authorized

13

purchaser. This provision shall not apply to hybrid cannabis retailers authorized pursuant to the

14

provisions of § 21-28.11-10;

15

     (3) A compassion center may not procure, purchase, transfer, or sell marijuana to or from

16

any entity other than a marijuana establishment licensee in accordance with the provisions of this

17

chapter and chapter 28.11 of title 21 and the rules and regulations promulgated by the commission;

18

     (4) A person found to have violated subsection (h)(2) (i)(2) or (h)(3) (i)(3) of this section

19

may not be an employee, agent, volunteer, principal officer, or board member of any compassion

20

center;

21

     (5) An employee, agent, volunteer, principal officer or board member of any compassion

22

center found in violation of subsection (h)(2) (i)(2) or (h)(3) (i)(3) of this section shall have his or

23

her registry identification revoked immediately;

24

     (6) No person who has been convicted of a felony drug offense or has entered a plea of

25

nolo contendere for a felony drug offense with a sentence of probation may be the principal officer,

26

board member, or agent of a compassion center unless the department has determined that the

27

person’s conviction was for the medical use of marijuana or assisting with the medical use of

28

marijuana in accordance with the terms and conditions of this chapter. A person who is employed

29

by or is an agent, volunteer, principal officer, or board member of a compassion center in violation

30

of this section is guilty of a civil violation punishable by a fine of up to one thousand dollars

31

($1,000). A subsequent violation of this section is a misdemeanor; and

32

     (7) After March 1, 2023, and in accordance with a timeline established by the commission,

33

no compassion center shall accept any out-of-state medical marijuana card unless the patient also

34

possesses and produces a valid government identification demonstrating residency in the same state

 

LC006023/SUB A/2 - Page 60 of 106

1

that issued the medical marijuana card.

2

     (j) Legislative oversight committee:

3

     (1) The general assembly shall appoint a nine-member (9) oversight committee comprised

4

of: one member of the house of representatives; one member of the senate; one physician to be

5

selected from a list provided by the Rhode Island medical society; one nurse to be selected from a

6

list provided by the Rhode Island state nurses association; two (2) registered qualifying patients;

7

one registered primary caregiver; one patient advocate to be selected from a list provided by the

8

Rhode Island patient advocacy coalition; and the superintendent of the department of public safety,

9

or his/her designee.

10

     (2) The oversight committee shall meet at least six (6) times per year for the purpose of

11

evaluating and making recommendations to the general assembly regarding:

12

     (i) Patients’ access to medical marijuana;

13

     (ii) Efficacy of compassion centers;

14

     (iii) Physician participation in the Medical Marijuana Program;

15

     (iv) The definition of qualifying medical condition; and

16

     (v) Research studies regarding health effects of medical marijuana for patients.

17

     (3) On or before January 1 of every even numbered year, the oversight committee shall

18

report to the general assembly on its findings.

19

     (k) License required. No person or entity shall engage in activities described in this section

20

without a compassion center license issued by the department of business regulation.

21

     SECTION 8. Sections 21-28.10-3, 21-28.10-4 and 21-28.10-7 of the General Laws in

22

Chapter 21-28.10 entitled "Opioid Stewardship Act" are hereby amended to read as follows:

23

     21-28.10-3. Determination of market share and registration fee.

24

     (1) The total opioid stewardship fund amount shall be five million dollars ($5,000,000)

25

annually, subject to downward adjustments pursuant to § 21-28.10-7.

26

     (2) Each manufacturer’s, distributor’s, and wholesaler’s annual opioid registration fee shall

27

be based on that licensee’s in-state market share.

28

     (3) The following sales will not be included when determining a manufacturer’s,

29

distributor’s, or wholesaler’s market share:

30

     (i) The gross, in-state opioid sales attributed to the sale of buprenorphine or methadone;

31

     (ii) The gross, in-state opioid sales sold or distributed directly to opioid treatment programs,

32

data-waivered practitioners, or hospice providers licensed pursuant to chapter 17 of title 23;

33

     (iii) Any sales from those opioids manufactured in Rhode Island, but whose final point of

34

delivery or sale is outside of Rhode Island;

 

LC006023/SUB A/2 - Page 61 of 106

1

     (iv) Any sales of anesthesia or epidurals as defined in regulation by the department of

2

health; and

3

     (v) Any in-state intracompany transfers of opioids between any division, affiliate,

4

subsidiary, parent, or other entity under complete and common ownership and control.

5

     (4) The executive office shall provide to the licensee, in writing, on or before October 15

6

annually, the licensee’s market share for the previous calendar year. The executive office shall

7

notify the licensee, in writing, on or before October 15 of each year, of its market share for the prior

8

calendar year based on the opioids sold or distributed for the prior calendar year.

9

     21-28.10-4. Reports and records.

10

     (a) Each manufacturer, distributor, and wholesaler licensed to manufacture or distribute

11

opioids in the state of Rhode Island shall provide to the secretary a report detailing all opioids sold

12

or distributed by that manufacturer or distributor in the state of Rhode Island. Such report shall

13

include:

14

     (1) The manufacturer’s, distributor’s, or wholesaler’s name, address, phone number, DEA

15

registration number, and controlled substance license number issued by the department of health;

16

     (2) The name, address, and DEA registration number of the entity to whom the opioid was

17

sold or distributed;

18

     (3) The date of the sale or distribution of the opioids;

19

     (4) The gross receipt total, in dollars, of all opioids sold or distributed;

20

     (5) The name and National Drug Code of the opioids sold or distributed;

21

     (6) The number of containers and the strength and metric quantity of controlled substance

22

in each container of the opioids sold or distributed; and

23

     (7) Any other elements as deemed necessary or advisable by the secretary.

24

     (b) Initial and future reports. This information shall be reported annually to the executive

25

office via ARCOS or in such other form as defined or approved by the secretary; provided,

26

however, that the initial report provided pursuant to subsection (a) shall consist of all opioids sold

27

or distributed in the state of Rhode Island for the 2018 calendar year, and shall be submitted by

28

September 1, 2019. Subsequent annual reports shall be submitted by April 15 of each year based

29

on the actual opioid sales and distributions of the prior calendar year.

30

     21-28.10-7. Licensee opportunity to appeal.

31

     (a) A licensee shall be afforded an opportunity to submit information to the secretary

32

documenting or evidencing that the market share provided to the licensee (or amounts paid

33

thereunder), pursuant to § 21-28.10-3(4), is in error or otherwise not warranted. The executive

34

office may consider and examine such additional information that it determines to be reasonably

 

LC006023/SUB A/2 - Page 62 of 106

1

related to resolving the calculation of a licensee’s market share, which may require the licensee to

2

provide additional materials to the executive office. If the executive office determines thereafter

3

that all or a portion of such market share, as determined by the secretary pursuant to § 21-28.10-

4

3(4), is not warranted, the executive office may:

5

     (1) Adjust the market share;

6

     (2) Adjust the assessment of the market share in the following year equal to the amount in

7

excess of any overpayment in the prior payment period; or

8

     (3) Refund amounts paid in error.

9

     (b) Any person aggrieved by a decision of the executive office relating to the calculation

10

of market share may appeal that decision to the superior court, which shall have power to review

11

such decision, and the process by which such decision was made, as prescribed in chapter 35 of

12

title 42.

13

     (c) A licensee shall also have the ability to appeal its assessed opioid registration fee if the

14

assessed fee amount exceeds the amount of profit the licensee obtains through sales in the state of

15

products described in § 21-28.10-3. The executive office may, exercising discretion as it deems

16

appropriate, waive or decrease fees as assessed pursuant to § 21-28.10-3 if a licensee can

17

demonstrate that the correctly assessed payment will pose undue hardship to the licensee’s

18

continued activities in the state. The executive office shall be allowed to request, and the licensee

19

shall furnish to the department executive office, any information or supporting documentation

20

validating the licensee’s request for waiver or reduction under this subsection. Fees waived under

21

this section shall not be reapportioned to other licensees which have payments due under this

22

chapter.

23

     SECTION 9. Section 21-28.11-7 of the General Laws in Chapter 21-28.11 entitled "The

24

Rhode Island Cannabis Act" is hereby amended to read as follows:

25

     21-28.11-7. Licensed cannabis cultivators.

26

     (a) Except as provided pursuant to the provisions of subsection (b) of this section or § 21-

27

28.11-8, there shall be a moratorium on the issuance of new cannabis cultivator licenses until the

28

date that is two (2) years following the final issuance of the commission’s rules and regulations

29

pursuant to the provisions of this chapter. This moratorium shall not apply to cannabis cultivators

30

licensed pursuant to chapter 28.6 of this title on or before enactment of this chapter.

31

     (b) On August 1, 2022 and thereafter, any medical marijuana cultivator licensed or

32

approved pursuant to the provisions of § 21-28.6-16, upon payment of an additional license fee,

33

shall be permitted to cultivate, manufacture and process cannabis as a hybrid cannabis cultivator

34

for both adult use and medical use. The amount of the additional license fee shall be determined by

 

LC006023/SUB A/2 - Page 63 of 106

1

the office of cannabis regulation during the transitional period established by § 21-28.11-10 and

2

shall be subject to review by the commission pursuant to the final rules and regulations. The fee

3

shall be deposited in the social equity fund established in § 21-28.11-31. Sale of the cultivated

4

cannabis shall be made directly to a licensee pursuant to the provisions of this chapter and chapter

5

28.6 of this title, subject to the following conditions:

6

     (1) The cultivator must be in good standing and maintain the cultivator license pursuant to

7

the provisions of chapter 28.6 of this title; and

8

     (2) The cultivator must make good faith efforts to ensure the adult use cannabis production

9

portion of the cultivation operation has no significant adverse effect on the medical marijuana

10

program and patient needs.

11

     (c) During the moratorium pursuant to this section, the commission, with the assistance of

12

the advisory board, as required, shall submit a report to the general assembly which evaluates the

13

cultivation of adult use and medical cannabis. The report shall consider factors, including, but not

14

limited to:

15

     (1) Cultivation and production history;

16

     (2) Tax payment history;

17

     (3) Existing inventory and inventory history;

18

     (4) Sales contracts;

19

     (5) Current and future projected market conditions; and

20

     (6) Any other factors relevant to ensuring responsible cultivation, production, and

21

inventory management for both medical and adult use cannabis.

22

     (d) Upon expiration of the moratorium pursuant to this section, the commission may adopt

23

rules and regulations authorizing issuance of additional cultivator licenses; provided, however, a

24

new cultivator licensee’s canopy shall not exceed ten thousand square feet (10,000 ft2). In

25

determining whether to issue additional cultivator licenses, the cannabis control commission shall

26

consider the findings of the report submitted pursuant to subsection (c) of this section.

27

     (e) For the purposes of this section, “canopy” means the total surface area within a

28

cultivation area that is dedicated to the cultivation of mature cannabis plants. The surface area of

29

the canopy must be calculated in square feet and measured using the outside boundaries of the area

30

and must include all of the area within the boundaries. If the surface area of the canopy consists of

31

noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered

32

or shelving system is used in the cultivation area, the surface area of each tier or shelf must be

33

included in calculating the area of the canopy. The canopy does not include the areas within the

34

cultivation area that are used to cultivate immature cannabis plants and seedlings and that are not

 

LC006023/SUB A/2 - Page 64 of 106

1

used at any time to cultivate mature cannabis plants.

2

     (f) To qualify for issuance of any cannabis cultivator license under subsection (d) of this

3

section, an applicant shall satisfy all requirements and qualifications established by the commission

4

to include but not limited to, the following:

5

     (1) Apply for a license in a manner prescribed by the commission;

6

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

7

of the state;

8

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

9

terms established by the commission;

10

     (4) Provide proof that the applicant is current with and in compliance with all obligations

11

required by the division of taxation, including filings and payment of taxes;

12

     (5) Has provided a nonrefundable application fee as determined by the commission;

13

     (6) Shall consent and be subject to inspections by the commission for the purposes of

14

ensuring and enforcing compliance with this chapter and all rules and regulations promulgated

15

pursuant to this chapter; and

16

     (7) Prior to the issuance of any license and for any period of renewal, the applicant shall

17

submit an annual license fee pursuant to subsection (b) of this section to be deposited in the social

18

equity fund established in § 21-28.11-31.

19

     (g) The commission may determine and adjust the application fee or annual license fee

20

pursuant to the commission’s rulemaking authority and in accordance with the provisions of chapter

21

35 of title 42.

22

     (h) Every individual cannabis plant possessed by a licensed cannabis cultivator shall be

23

catalogued in a seed-to-sale inventory tracking system. The commission shall review the current

24

seed-to-sale tracking system utilized pursuant to chapter 28.6 of this title and promulgate new or

25

additional regulations, as it deems appropriate. As of December 1, 2022, any cannabis tags issued

26

to provide seed-to-sale inventory and tracking shall be issued without charge to patient cardholders

27

and/or primary caregivers authorized to grow medical cannabis.

28

     (i) Notwithstanding any other provisions of the general laws, the manufacture of cannabis

29

using a solvent extraction process that includes the use of a compressed, flammable gas as a solvent

30

by a licensed cannabis cultivator shall not be subject to the protections of this chapter.

31

     (j) Cannabis cultivators shall sell cannabis only to an entity licensed pursuant to the

32

provisions of this chapter or chapter 28.6 of this title.

33

     (k) Cannabis cultivators shall be licensed to grow cannabis only at a location or locations

34

registered with and approved by the cannabis commission. The commission may promulgate

 

LC006023/SUB A/2 - Page 65 of 106

1

regulations governing locations where cultivators are authorized to grow. Cannabis cultivators shall

2

abide by all local ordinances, including zoning ordinances.

3

     (l) As a condition of licensing, cannabis cultivators shall consent and be subject to

4

inspection by the commission for the purposes of ensuring and enforcing compliance with this

5

chapter and chapter 28.6 of this title, all rules and regulations promulgated pursuant to this chapter,

6

and the provisions of § 28-5.1-14.

7

     (m) Persons issued cultivator licenses shall be subject to the following:

8

     (1) A licensed cannabis cultivator shall notify and request approval from the commission

9

of any change in his or her name or address within ten (10) days of the change. A licensed cannabis

10

cultivator who fails to notify the commission of any of these changes commits shall be subject to

11

an administrative fine of no more than one hundred fifty dollars ($150), or other penalty as

12

determined by the commission.

13

     (2) When a licensed cannabis cultivator notifies the commission of any changes listed in

14

this subsection, the commission shall issue the licensed cannabis cultivator a new license

15

identification document after the commission approves the changes and receives from the licensee

16

payment of a fee specified in regulations.

17

     (3) If a licensed cannabis cultivator loses his or her license or certification document, he or

18

she shall notify the commission and submit a fee specified in regulation within ten (10) days of

19

losing the document. The commission shall issue a new license document with a new random

20

identification number, upon receipt of payment of a fee promulgated in the rules and regulations

21

not to exceed the amount of one hundred dollars ($100).

22

     (4) A licensed cannabis cultivator has a continuing duty to notify the commission of any

23

criminal conviction(s) that occurs after the issuance of a license or registration. A criminal

24

conviction may not automatically result in suspension or revocation of a license, but shall be subject

25

to § 21-28.11-12.1. The commission may suspend and/or revoke his or her license after the

26

notification, pending a final determination of disqualification pursuant to § 21-28.11-12.1.

27

     (5) If a licensed cannabis cultivator violates any provision of this chapter or regulations

28

promulgated hereunder as determined by the commission, his or her issued license may be

29

suspended and/or revoked.

30

     (n) Immunity.

31

     (1) No licensed cannabis cultivator shall be subject to: arrest; prosecution; search or

32

seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of

33

this section; or penalty in any manner, or denied any right or privilege, including, but not limited

34

to, civil penalty or disciplinary action by a business, occupational, or professional licensing board

 

LC006023/SUB A/2 - Page 66 of 106

1

or entity, solely for acting in accordance with this chapter, chapter 28.6 of this title and rules and

2

regulations promulgated by the commission.

3

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

4

cannabis cultivator shall be subject to arrest; prosecution; search or seizure, except as authorized

5

pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of this section; or penalty in any

6

manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary

7

action by a business, occupational, or professional licensing board or entity, solely for working for

8

or with a licensed cannabis cultivator to engage in acts permitted by this chapter, chapter 28.6 of

9

this title and rules and regulations promulgated by the commission.

10

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

11

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27; or penalty in any

12

manner, or denied any right or privilege, including, but not limited to, civil penalty, disciplinary

13

action, termination, or loss of employee or pension benefits, for any and all conduct that occurs

14

within the scope of his or her employment regarding the administration, execution, and/or

15

enforcement of this chapter, chapter 28.6 of this title and rules and regulations promulgated by the

16

commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

17

     (o) Nothing in this section shall be construed as authorizing a cannabis cultivator to transfer

18

or sell cannabis directly to a consumer. A direct sale or transfer from a cannabis cultivator to a

19

consumer is prohibited and shall be grounds for revocation of license and criminal prosecution.

20

     (p) A cannabis cultivator and all agents and employees of the cannabis cultivator shall

21

comply with all rules adopted by the commission and other applicable laws.

22

     (q) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

23

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

24

commission’s testing protocols issued pursuant to § 21-28.11-11. Cannabis cultivators shall be

25

subject to any regulations promulgated by the commission that specify how marijuana shall be

26

tested, including, but not limited to, potency, cannabinoid profile and contaminants. Cannabis

27

cultivators shall be subject to any product labeling requirements promulgated by the commission

28

or otherwise required by law.

29

     (r) License required. No person or entity shall engage in activities described in this section

30

without a cultivator license issued pursuant to this chapter.

31

     SECTION 10. Sections 23-17.7.1-2 and 23-17.7.1-23 of the General Laws in Chapter 23-

32

17.7.1 entitled "Licensing of Nursing Service Agencies" are hereby amended to read as follows:

33

     23-17.7.1-2. Definitions.

34

     (a) “Director” means the director of the state department of health;

 

LC006023/SUB A/2 - Page 67 of 106

1

     (b) “Licensing agency” means the state department of health;

2

     (c) “Nursing assistant” is defined as a nursing, orderly, or home health aide who is a

3

paraprofessional trained to give personal care and related health care and assistance based on his

4

or her level of preparation to individuals who are sick, disabled, dependent, or infirmed. The

5

director of the department of health may by regulation establish different levels of nursing

6

assistants;

7

     (d) “Nursing service agency” is defined as any person, firm, partnership, or corporation

8

doing business within the state that supplies, on a temporary basis, registered nurses, licensed

9

practical nurses, or nursing assistants to a hospital, nursing home, or other facility requiring the

10

services of those persons, with the exception of hospitals, home nursing care providers, home care

11

providers, and hospices licensed in this state. For all purposes a nursing service agency shall be

12

considered an employer and those persons that it supplies on a temporary basis shall be considered

13

employees and not independent contractors, and the nursing service agency shall be subject to all

14

state and federal laws which govern employer-employee relations;

15

     (e) “Service record” means the written entire entries documenting service rendered by the

16

nursing service agency.

17

     23-17.7.1-23. Annual reporting requirements.

18

     (a) The agency shall submit an annual statistical report to the department of health

19

including, but not limited to:

20

     (1) Mean, median, and average salaries and hourly pay rates of employees, by employment

21

type;

22

     (2) Number of employees;

23

     (3) Number of employees terminated;

24

     (4) Number of employees reported to the office of the attorney general; and

25

     (5) Number of employees reported to the department for abuse, neglect, misappropriation,

26

and job abandonment.

27

     (b) For every person placed for employment, or temporary performance of services by an

28

employment agency with a healthcare provider employer, the employment agency shall annually

29

report:

30

     (1) The amount charged for each person;

31

     (2) The amount paid to each person;

32

     (3) The amount of payment received that is retained by the employment agency;

33

     (4) Any other information that the department, in conjunction with the department of

34

human services, determines relevant to determine how much healthcare provider employers who

 

LC006023/SUB A/2 - Page 68 of 106

1

participate in Medicare and Medicaid are charged by employment agency services nursing

2

service agencies.

3

     (c) Reports under this section shall be submitted by the employment agencies no later than

4

thirty (30) days after the end of the calendar year.

5

     SECTION 11. Section 28-14-19 of the General Laws in Chapter 28-14 entitled "Payment

6

of Wages" is hereby amended to read as follows:

7

     28-14-19. Enforcement powers and duties of director of labor and training. [Effective

8

January 1, 2024.]

9

     (a) It shall be the duty of the director to ensure compliance with the provisions of this

10

chapter and chapter 12 of this title. The director, or the director’s designee, may investigate any

11

violations thereof, institute or cause to be instituted actions for the collection of wages, and institute

12

action for penalties or other relief as provided for within and pursuant to those chapters. The

13

director, or the director’s authorized representatives, are empowered to hold hearings, and the

14

director or the director’s designee shall cooperate with any employee in the enforcement of a claim

15

against the employee’s employer in any case whenever, in the opinion of the director or the

16

director’s designee, the claim is just and valid.

17

     (b) Upon receipt of a complaint or conducting an inspection under applicable law, the

18

director, or the director’s appropriate departmental designee, is authorized to investigate to

19

determine compliance with this chapter and chapter 12 of this title. The director or designee shall

20

forward all complaints to the investigatory team within the department of labor and training who

21

shall conduct the initial screening, investigation, and field audits, as set forth in § 28-14-19.1.

22

     (c) With respect to all complaints deemed just and valid by the investigatory team, the

23

director, or the director’s designee, shall order a hearing thereon at a time and place to be specified,

24

and shall give notice thereof, together with a copy of the complaint or the purpose thereof, or a

25

statement of the facts disclosed upon investigation, which notice shall be served personally or by

26

mail on any person, business, corporation, or entity of any kind affected thereby. The hearing shall

27

be scheduled within thirty (30) days of service of a formal complaint as provided herein. The

28

person, business, corporation, or entity shall have an opportunity to be heard in respect to the

29

matters complained of at the time and place specified in the notice. The hearing shall be conducted

30

by the director or the director’s designee. The hearing officer in the hearing shall be deemed to be

31

acting in a judicial capacity, and shall have the right to issue subpoenas, administer oaths, and

32

examine witnesses. The enforcement of a subpoena issued under this section shall be regulated by

33

Rhode Island civil practice law and rules. The hearing shall be expeditiously conducted and upon

34

such hearing the hearing officer shall determine the issues raised thereon and shall make a

 

LC006023/SUB A/2 - Page 69 of 106

1

determination and enter an order within thirty (30) days of the close of the hearing, and forthwith

2

serve a copy of the order, with a notice of the filing thereof, upon the parties to the proceeding,

3

personally or by mail. The order shall dismiss the complaint or direct payment of any wages and/or

4

benefits found to be due and/or award such other appropriate relief or penalties authorized under

5

this chapter and chapter 12 of this title, and the order may direct payment of reasonable attorney’s

6

fees and costs to the complaining party. Interest at the rate of twelve percent (12%) per annum shall

7

be awarded in the order from the date of the nonpayment to the date of payment.

8

     (d) The order shall also require payment of a further sum as a civil penalty in an amount

9

up to two (2) times the total wages and/or benefits found to be due, exclusive of interest, which

10

shall be shared equally between the department and the aggrieved party. In determining the amount

11

of any penalty to impose, the director, or the director’s designee, shall consider the size of the

12

employer’s business, the good faith of the employer, the gravity of the violation, the previous

13

violations, and whether or not the violation was an innocent mistake or willful.

14

     (e) The director may institute any action to recover unpaid wages or other compensation or

15

obtain relief as provided under this section with or without the consent of the employee or

16

employees affected.

17

     (f) No agreement between the employee and employer to work for less than the applicable

18

wage and/or benefit rate or to otherwise work under and/or conditions in violation of applicable

19

law is a defense to an action brought pursuant to this section.

20

     (g) The director shall notify the contractors’ registration board of any order issued or any

21

determination hereunder that an employer has violated this chapter, chapter 12 of this title, or

22

chapter 13 of title 37. The director shall notify the tax administrator of any determination hereunder

23

that may affect liability for an employer’s payment of wages and/or payroll taxes.

24

     SECTION 12. Sections 21-31-2 and 21-31-13 of the General Laws in Chapter 21-31

25

entitled "Rhode Island Food, Drugs, and Cosmetics Act" are hereby amended to read as follows:

26

     21-31-2. Definitions.

27

     For the purpose of this chapter:

28

     (1) “Advertisement” means all representations disseminated in any manner or by any

29

means, other than by labeling, for the purpose of inducing, or which are likely to induce, directly

30

or indirectly, the purchase of food, drugs, devices, or cosmetics.

31

     (2) “Contaminated with filth” applies to any food, drug, device, or cosmetic not securely

32

protected from dust, dirt, and, as far as may be necessary by all reasonable means, from all foreign

33

or injurious contaminations.

34

     (3) “Cosmetics” means: (i) articles intended to be rubbed, poured, sprinkled, or sprayed on,

 

LC006023/SUB A/2 - Page 70 of 106

1

introduced into, or applied to the human body or any part of the body for cleansing, beautifying,

2

promoting attractiveness, or altering the appearance, and (ii) articles intended for use as a

3

component of any articles described in this subdivision, except that this term shall not include soap.

4

     (4) “Device” (except when used in subdivision (23) (13)(iv) of this section and in §§ 21-

5

31-3(10), 21-31-11(6), 21-31-15(a)(3), and 21-31-18(3)) means instruments, apparatus, and

6

contrivances, including their components, parts, and accessories, intended: (i) for use in the

7

diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals; or (ii)

8

to affect the structure or any function of the body of humans or other animals.

9

     (5) “Director” means the director of health.

10

     (6) “Distressed merchandise” means any food which has had the label lost or which has

11

been subjected to possible damage due to accident, fire, flood, adverse weather, or to any other

12

similar cause, and which may have been rendered unsafe or unsuitable for human or animal

13

consumption or use.

14

     (7) “Dosage form” means the form of the completed drug product (such as tablet, syrup, or

15

suppository).

16

     (8) “Drug” means: (i) articles recognized in the official United States Pharmacopoeia,

17

official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any

18

supplement to any of them; (ii) articles intended for use in the diagnosis, cure, mitigation, treatment,

19

or prevention of disease in humans or other animals; (iii) articles (other than food) intended to

20

affect the structure or any function of the body of humans or other animals; and (iv) articles

21

intended for use as a component of any article specified in paragraphs (i), (ii) or (iii) of this

22

subdivision; but does not include devices or their components, parts, or accessories.

23

     (9) “Drug product” means a dosage form containing one or more active therapeutic

24

ingredients along with other substances included during the manufacturing process.

25

     (10)(i) “Equivalent and interchangeable” means having the same generic name, dosage

26

form, and labeled potency, meeting standards of the United States Pharmacopoeia or National

27

Formulary, or their successors, if applicable, and not found in violation of the requirements of the

28

United States Food and Drug Administration, or its successor agency, or the department of health.

29

     (ii) “Generic” means the chemical or established name of a drug or drug product.

30

     (11) “Federal Act” means the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et

31

seq.

32

     (12) “Food” means: (i) articles used for food or drink for humans or other animals, (ii)

33

chewing gum, and (iii) articles used for components of any article described in this subdivision.

34

     (13)(i) “Label” means a display of written, printed, or graphic matter upon the immediate

 

LC006023/SUB A/2 - Page 71 of 106

1

container of any article; and a requirement made by or under authority of this chapter that any word,

2

statement, or other information appearing on the label shall not be considered to be complied with

3

unless the word, statement, or other information also appears on the outside container or wrapper,

4

if any, of the retail package of the article, or is easily legible through the outside container or

5

wrapper.

6

     (ii) “Immediate container” does not include package liners.

7

     (iii) “Labeling” means all labels and other written, printed, or graphic matter: (A) upon an

8

article or any of its containers or wrappers, or (B) accompanying the article.

9

     (iv) If an article is alleged to be misbranded because the labeling is misleading, or if an

10

advertisement is alleged to be false because it is misleading, then in determining whether the

11

labeling or advertisement is misleading there shall be taken into account (among other things) not

12

only representations made or suggested by statement, word, design, device, sound, or in any

13

combination of them, but also the extent to which the labeling or advertisement fails to reveal facts

14

material in the light of the representations or material with respect to consequences which may

15

result from the use of the article to which the labeling or advertisement relates under the conditions

16

of use prescribed in the labeling or advertisement or under the conditions of use that are customary

17

or usual.

18

     (14) “Native” means a product harvested in Rhode Island and is limited to the following:

19

     (i) “Bay scallop” means Argopecten irradians.

20

     (ii) “Bay quahog” means Mercenaria mercenaria.

21

     (iii) “Steamer clams” means Mya arenaria.

22

     (iv) “Mussels” means Mytilus edulis.

23

     (v) “Oysters” means Crassostrea virginica.

24

     (15) “New drug” means: (i) any drug the composition of which is such that the drug is not

25

generally recognized among experts qualified by scientific training and experience to evaluate the

26

safety of drugs as safe for use under conditions prescribed, recommended, or suggested in the

27

labeling of it; or (ii) any drug the composition of which is such that the drug, as a result of

28

investigations to determine its safety for use under those conditions has become so recognized, but

29

which has not, otherwise than in the investigations, been used to a material extent or for a material

30

time under those conditions.

31

     (16) “Official compendium” means the official United States Pharmacopoeia, official

32

Homeopathic Pharmacopoeia of the United States, official National Formulary, or any supplement

33

to any of them.

34

     (17) “Patient” means, as the case may be: (i) the individual medically requiring a drug, for

 

LC006023/SUB A/2 - Page 72 of 106

1

whom a drug is prescribed; or (ii) the owner or the agent of the owner of an animal medically

2

requiring a drug, for which a drug is prescribed.

3

     (18) “Person” includes individual, partnership, corporation, and association.

4

     (19) “Pharmacist” means a person duly registered with the board of pharmacy as a

5

compounder, dispenser, or supplier of drugs upon prescription, including registered assistant

6

pharmacists as defined by law.

7

     (20) “Pharmacy” means a place where drugs, medicines, or poisons are sold at retail or

8

where prescriptions of physicians, dentists, veterinarians, and other practitioners authorized to issue

9

prescriptions for drugs, medicines, and poisons are compounded, dispensed, supplied or sold.

10

     (21) “Practitioner” means a person authorized by law to practice medicine, dentistry,

11

osteopathy, chiropody podiatry, or veterinary medicine in this state.

12

     (22) “Prescription” means an order, issued in good faith in the course of professional

13

practice only, by a practitioner to a pharmacist for a drug for a particular patient, which specifies

14

the date of its issue, the name and address of the practitioner, the name and address of the patient

15

(and, if the drug is prescribed for an animal, the species of the animal), the name and quantity of

16

the drug prescribed, directions for the use of the drug, and the signature of the practitioner;

17

provided, that a prescription received by word of mouth, telephone, or other means of

18

communication shall be reduced promptly to writing by the pharmacist in the form prescribed in

19

this subdivision, and the record so made shall constitute the original prescription to be filed and

20

preserved by the pharmacist; and, provided, further, that any refill authorization received by word

21

of mouth, telephone, or other means of communication shall be reduced promptly to writing by the

22

pharmacist, with the date of it on the face or on the reverse side of the original prescription.

23

     (23) The representation of a drug, in its labeling or advertisement, as an antiseptic shall be

24

considered to be a representation that it is a germicide, except in the case of a drug purporting to

25

be, or represented as, an antiseptic for inhibitory use as a wet dressing, ointment, dusting powder,

26

or any other use that involves prolonged contact with the body.

27

     (24) The provisions of this chapter regarding the selling of food, drugs, devices, or

28

cosmetics shall be considered to include the manufacture, production, processing, packing,

29

exposure, offer, possession, and holding of any article for sale, and the sale, dispensing, and giving

30

of any article, and the supplying or applying of the articles in the conduct of any food, drug, or

31

cosmetic establishment.

32

     21-31-13. Poisonous or deleterious substance — Regulations as to use.

33

     (a) Any poisonous or deleterious substance added to any food, except where the substance

34

is required in the production of it or cannot be avoided by good manufacturing practice, shall be

 

LC006023/SUB A/2 - Page 73 of 106

1

deemed to be unsafe for purposes of the application of § 21-31-10(1)(ii); but when a substance is

2

required or cannot be avoided, the director of health shall promulgate regulations limiting the

3

quantity in it or on it to the extent that the director of health finds necessary for the protection of

4

public health, and any quantity exceeding the limits fixed shall also be deemed to be unsafe for

5

purposes of the application of § 21-31-10(1)(ii). While a regulation is in effect limiting the quantity

6

of any substance in the case of any food, that food shall not, by reason of bearing or containing any

7

added amount of the substance, be considered to be adulterated within the meaning of § 31-21-

8

10(1)(i) 21-31-10(1)(i). In determining the quality of the added substance to be tolerated in or on

9

different articles of food, the director of health shall take into account the extent to which the use

10

of the substance is required or cannot be avoided in the production of each article and the other

11

ways in which the consumer may be affected by the same or other poisonous or deleterious

12

substances.

13

     (b) To assist the director in carrying out his or her responsibilities under this section, the

14

director is authorized to collect food samples and to provide laboratory analyses to further the

15

purposes of this chapter.

16

     SECTION 13. Section 21-31.1-15 of the General Laws in Chapter 21-31.1 entitled

17

"Veterinary Drugs" is hereby amended to read as follows:

18

     21-31.1-15. Detention.

19

     Whenever an authorized representative of the director encounters a prescription veterinary

20

drug in the possession of a person who is not authorized by § 21-31.1-13, the representative may

21

affix to the drug a tag or other appropriate marking, warning all persons not to remove or dispose

22

of the drug by sale or otherwise until permission is given for removal or disposal by the director or

23

the court.

24

     SECTION 14. Sections 27-18-91 and 27-18-92 of the General Laws in Chapter 27-18

25

entitled "Accident and Sickness Insurance Policies" are hereby amended to read as follows:

26

     27-18-91. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the

27

prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective

28

January 1, 2024.]

29

     (a) Every group health insurance contract, or every group hospital or medical expense

30

insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by

31

any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of

32

pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis

33

(“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall

34

constitute a separate method of administration. A health insurer is not required to cover any pre-

 

LC006023/SUB A/2 - Page 74 of 106

1

exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out-

2

of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network

3

pharmacy benefit.

4

     (b) The healthcare benefits outlined in this chapter section apply only to services delivered

5

within the health insurer’s provider network; provided that, all health insurers shall be required to

6

provide coverage for those benefits mandated by this chapter section outside of the health insurer’s

7

provider network where it can be established that the required services are not available from a

8

provider in the health insurer’s network.

9

     27-18-92. Expedited prior authorization. Expedited prior authorization for HIV

10

PrEP or PEP drugs. [Effective January 1, 2024.]

11

     To the extent a prior authorization is permitted and applied for the prescribing,

12

dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an

13

expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27-

14

18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no

15

longer be in effect upon the effective date of any repeal of this section, as may be enacted

16

during the 2024 legislative session.

17

     SECTION 15. Sections 27-19-83 and 27-19-84 of the General Laws in Chapter 27-19

18

entitled "Nonprofit Hospital Service Corporations" are hereby amended to read as follows:

19

     27-19-83. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the

20

prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective

21

January 1, 2024.]

22

     (a) Every group health insurance contract, or every group hospital or medical expense

23

insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by

24

any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of

25

pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis

26

(“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall

27

constitute a separate method of administration. A health insurer is not required to cover any pre-

28

exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out-

29

of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network

30

pharmacy benefit.

31

     (b) The healthcare benefits outlined in this chapter section apply only to services delivered

32

within the health insurer’s provider network; provided that, all health insurers shall be required to

33

provide coverage for those benefits mandated by this chapter section outside of the health insurer’s

34

provider network where it can be established that the required services are not available from a

 

LC006023/SUB A/2 - Page 75 of 106

1

provider in the health insurer’s network.

2

     27-19-84. Expedited prior authorization. Expedited prior authorization for HIV

3

PrEP or PEP drugs. [Effective January 1, 2024.]

4

     To the extent a prior authorization is permitted and applied for the prescribing,

5

dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an

6

expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27-

7

18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no

8

longer be in effect upon the effective date of any repeal of this section, as may be enacted

9

during the 2024 legislative session.

10

     SECTION 16. Sections 27-20-79 and 27-20-80 of the General Laws in Chapter 27-20

11

entitled "Nonprofit Medical Service Corporations" are hereby amended to read as follows:

12

     27-20-79. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the

13

prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective

14

January 1, 2024.]

15

     (a) Every group health insurance contract, or every group hospital or medical expense

16

insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by

17

any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of

18

pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis

19

(“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall

20

constitute a separate method of administration. A health insurer is not required to cover any pre-

21

exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out-

22

of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network

23

pharmacy benefit.

24

     (b) The healthcare benefits outlined in this chapter section apply only to services delivered

25

within the health insurer’s provider network; provided that, all health insurers shall be required to

26

provide coverage for those benefits mandated by this chapter section outside of the health insurer’s

27

provider network where it can be established that the required services are not available from a

28

provider in the health insurer’s network.

29

     27-20-80. Expedited prior authorization. Expedited prior authorization for HIV

30

PrEP or PEP drugs. [Effective January 1, 2024.]

31

     To the extent a prior authorization is permitted and applied for the prescribing,

32

dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an

33

expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant § 27-18.9-

34

6(a)(1). Provided, however, that the provisions of the amendment to this section shall no

 

LC006023/SUB A/2 - Page 76 of 106

1

longer be in effect upon the effective date of any repeal of this section, as may be enacted

2

during the 2024 legislative session.

3

     SECTION 17. Sections 27-41-96 and 27-41-97 of the General Laws in Chapter 27-41

4

entitled "Health Maintenance Organizations" are hereby amended to read as follows:

5

     27-41-96. Coverage for treatment of pre-exposure prophylaxis (PrEP) for the

6

prevention of HIV and post-exposure prophylaxis (PEP) to prevent HIV infection. [Effective

7

January 1, 2024.]

8

     (a) Every group health insurance contract, or every group hospital or medical expense

9

insurance policy, plan, or group policy delivered, issued for delivery, or renewed in this state, by

10

any health insurance carrier, on or after January 1, 2024, shall provide coverage for treatment of

11

pre-exposure prophylaxis (“PrEP”) for the prevention of HIV and post-exposure prophylaxis

12

(“PEP”) to prevent HIV infection. Each long-acting injectable drug with a different duration shall

13

constitute a separate method of administration. A health insurer is not required to cover any pre-

14

exposure prophylaxis drug or post-exposure prophylaxis drug dispensed or administered by an out-

15

of-network pharmacy provider unless the enrollee’s health plan provides an out-of-network

16

pharmacy benefit.

17

     (b) The healthcare benefits outlined in this chapter section apply only to services delivered

18

within the health insurer’s provider network; provided that, all health insurers shall be required to

19

provide coverage for those benefits mandated by this chapter section outside of the health insurer’s

20

provider network where it can be established that the required services are not available from a

21

provider in the health insurer’s network.

22

     27-41-97. Expedited prior authorization. Expedited prior authorization for HIV

23

PrEP or PEP drugs. [Effective January 1, 2024.]

24

     To the extent a prior authorization is permitted and applied for the prescribing,

25

dispensing, and administration of HIV PrEP or PEP drugs, then it shall be conducted in an

26

expedited manner as soon as possible, but no later than seventy-two (72) hours pursuant to § 27-

27

18.9-6(a)(1). Provided, however, that the provisions of the amendment to this section shall no

28

longer be in effect upon the effective date of any repeal of this section, as may be enacted

29

during the 2024 legislative session.

30

     SECTION 18. Section 28-57-3 of the General Laws in Chapter 28-57 entitled "Healthy and

31

Safe Families and Workplaces Act" is hereby amended to read as follows:

32

     28-57-3. Definitions.

33

     As used in the chapter, the following words and terms have the following meanings:

34

     (1) “Care recipient” means a person for whom the employee is responsible for providing

 

LC006023/SUB A/2 - Page 77 of 106

1

or arranging health- or safety-related care, including, but not limited to, helping the person obtain

2

diagnostic, preventive, routine, or therapeutic health treatment or ensuring the person is safe

3

following domestic violence, sexual assault, or stalking.

4

     (2) “CCAP family childcare provider” means a childcare worker as defined in § 40-6.6-

5

2(2).

6

     (3) “Child” means a person as defined in § 28-41-34(3).

7

     (4) “Department” means the department of labor and training.

8

     (5) “Domestic partner” means a party to a civil union as defined in chapter 3.1 of title 15

9

or a person who meets the requirements in §§ 36-12-1(3)(i) through (3)(v) and has the same

10

meaning as that term is defined in § 8-8.2-20.

11

     (6) “Domestic violence” means certain crimes when committed by one family or household

12

member against another as defined in § 12-29-2.

13

     (7) “Employee” means any person suffered or permitted to work by an employer, except

14

for those not considered employees as defined in § 28-12-2. Independent contractors,

15

subcontractors, work study participants as described pursuant to 42 20 U.S.C. § 2753.23 1087-53,

16

and any other individuals pursuant to the provisions of 29 U.S.C. § 203 et seq. (Fair Labor

17

Standards Act) shall not be considered to be employees for the purpose of this act.

18

     (8) “Employer” means any individual or entity that includes any individual, partnership,

19

association, corporation, business trust, or any person or group of persons acting directly or

20

indirectly in the interest of an employer, in relation to an employee as defined in § 28-12-2, but

21

does not include the federal government, and provided that in determining the number of employees

22

performing work for an employer as defined in 29 C.F.R. § 791.2 of the federal Fair Labor

23

Standards Act, 29 U.S.C. § 201 et seq., the total number of employees in that group shall be

24

counted.

25

     (9) “Family member” means a child, parent, spouse, mother-in-law, father-in-law,

26

grandparents, grandchildren, or domestic partner, sibling, care recipient, or member of the

27

employee’s household.

28

     (10) “Healthcare professional” means any person licensed under federal or Rhode Island

29

law to provide medical or emergency services, including, but not limited to: doctors, nurses, and

30

emergency room personnel.

31

     (11) “Paid sick leave time” or “paid sick and safe leave time” means time that is

32

compensated at the same hourly rate and with the same benefits, including healthcare benefits, as

33

the employee normally earns during hours worked and is provided by an employer to an employee

34

for the purposes described in § 28-57-6, but in no case shall the hourly wage paid leave be less than

 

LC006023/SUB A/2 - Page 78 of 106

1

that provided under § 28-12-3.

2

     (12) “Parent” means a person as defined in § 28-41-34(9) or a person as defined in § 28-

3

41-34(10).

4

     (13) “Seasonal employee” means a person as defined in 26 C.F.R. § 54.4980H-1(a)(38).

5

     (14) “Sexual assault” means a crime as defined in § 11-37-2, § 11-37-4 or § 11-37-6.

6

     (15) “Sibling” means a brother or a sister, whether related through half blood, whole blood,

7

or adoption, a foster sibling, or a step-sibling.

8

     (16) “Spouse” means a person as defined in § 28-41-34(13).

9

     (17) “Stalking” means a crime as described in §§ 11-59-2 and 11-52-4.2.

10

     (18) “Temporary employee” means any person working for, or obtaining employment

11

pursuant to an agreement with any employment agency, placement service, or training school or

12

center.

13

     (19) “Unpaid sick time” is time that is used for the purposes described in § 28-57-6.

14

     (20) “Year” means a regular and consecutive twelve-month (12) period as determined by

15

the employer; except that for the purposes of § 28-57-7, “year” means a calendar year.

16

     SECTION 19. Section 31-10.4-1 of the General Laws in Chapter 31-10.4 entitled "Driver

17

Privilege Cards and Permits" is hereby amended to read as follows:

18

     31-10.4-1. Driver privilege cards and permits — State identification cards. [Effective

19

January 1, 2024.]

20

     (a) Upon application of any person who is unable to establish legal presence in the United

21

States, the division of motor vehicles is authorized to issue a driver privilege card and/or driver

22

privilege permit, if the applicant otherwise meets the requirements of chapter 10 of this title, or a

23

Rhode Island state identification card, to any applicant, if the division of motor vehicles determines

24

that the applicant:

25

     (1) Has verification from the tax administrator that the applicant either has filed a personal

26

income tax return as a resident with this state for the tax year preceding the date of application or

27

has been claimed as a dependent on a personal income tax return by an individual who has filed a

28

personal income tax return as a resident with this state for the tax year preceding the date of

29

application;

30

     (2) Presents two (2) primary proof of identity documents, as defined in § 31-10.4-5, or one

31

primary proof of identity document and one secondary proof of identity document, as defined in §

32

31-10.4-5;

33

     (3) Presents two (2) proof of residency documents, which shall mean, for purposes of this

34

subsection, the proof of residency documents set forth in 280-RICR-30-00-1.4.1(D), as may be

 

LC006023/SUB A/2 - Page 79 of 106

1

amended from time to time; and

2

     (4) Is not in violation of the insurance requirements, set forth in chapters 31 and 32 of this

3

title, provided that this subsection (a)(4) shall not apply to applicants for a Rhode Island state

4

identification card.

5

     (b) Notwithstanding any other provision of law to the contrary, the administrator of the

6

division of motor vehicles may provide information submitted by the applicant to the tax

7

administrator for the sole purpose of implementing subsection (a)(1) of this section, and such

8

information shall be kept confidential by the tax administrator.

9

     (c) Rhode Island state identification cards issued under this section shall be in the formats

10

required by the division of motor vehicles pursuant to §§ 3-8-6 and 3-8-6.1, respectively. The

11

division of motor vehicles may prescribe additional formatting requirements as it deems necessary

12

to further the provisions of this subsection section.

13

     SECTION 20. Section 31-19.6-1 of the General Laws in Chapter 31-19.6 entitled "Low-

14

Speed Vehicles [Effective July 1, 2024.]" is hereby amended to read as follows:

15

     31-19.6-1. Low-speed vehicles. [Effective July 1, 2024.]

16

     (a) Except as otherwise provided in chapters 19.4 and 19.5 of this title, a low-speed motor

17

vehicle or low-speed vehicle shall not be operated upon any public way unless such vehicle is

18

registered in accordance with the provisions of this chapter, displays the registration number as

19

provided in § 31-3-10, and displays a slow-moving vehicle emblem on the rear of the vehicle as

20

required by § 31-10.1-7 31-23-47. Low-speed vehicles shall be subject to inspection as required by

21

chapter 38 of this title. The registrar may issue registration plates displaying the “Slow Moving

22

Vehicle” emblem for a low-speed vehicle upon the same terms and conditions applicable to

23

registrants of other motor vehicles and may issue a special parking identification placard bearing

24

the same designation upon the same terms and conditions applicable to persons seeking a placard

25

for a motor vehicle. Every person lawfully operating a low-speed motor vehicle shall have the right

26

to use the public highways in the state, except low-speed vehicles shall be prohibited from operation

27

on limited access highways, as defined in § 31-1-23, state highways, as defined in § 31-1-23, or

28

through highways as defined in § 31-1-23 or on any public highway or roadway with a speed limit

29

of more than thirty-five miles per hour (35 m.p.h.).

30

     (b) Low-speed vehicles shall be subject to the traffic laws and regulations of the state and

31

the provisions of this section.

32

     (c) Nothing in subsection (a) of this section shall be construed to prohibit a low-speed

33

motor vehicle from crossing a public highway at an intersection where the public highway to be

34

crossed has a posted speed limit between thirty-five miles per hour (35 m.p.h.) and forty-five miles

 

LC006023/SUB A/2 - Page 80 of 106

1

per hour (45 m.p.h.), provided the public highway the low-speed vehicle is traveling on and the

2

public highway the low-speed vehicle is crossing the intersection toward both have a speed limit

3

no higher than thirty-five miles per hour (35 m.p.h.) and the intersection is controlled by traffic

4

signals or stop signs.

5

     (d) A municipality may, by ordinance, prohibit the operation of low-speed vehicles on a

6

laned roadway or local highway or a portion of a highway within its jurisdiction and under its

7

control, regardless of posted speeds, where it finds that use of the highway or a particular portion

8

of the highway by low-speed motor vehicles would represent an unreasonable risk of death or

9

serious injury to occupants of low-speed vehicles as a result of general traffic conditions which

10

shall include, but not be limited to, excessive speeds of other vehicles, traffic volumes, use of the

11

highway by heavy trucks or other large vehicles or if the established speed limit on the highway

12

increases above thirty-five miles per hour (35 m.p.h.) beyond the point where a low-speed vehicle

13

could safely exit the highway. The municipality shall post signs where necessary to provide notice

14

to the public of such prohibited access.

15

     (e) Low-speed vehicles operated on Prudence Island, in the town of Portsmouth, pursuant

16

to the provisions of chapter 19.4 of this title, are exempt from the provisions of this chapter.

17

     SECTION 21. Sections 45-23-39 and 45-23-71 of the General Laws in Chapter 45-23

18

entitled "Subdivision of Land" are hereby amended to read as follows:

19

     45-23-39. General provisions — Major land development and major subdivision

20

review stages. [Effective January 1, 2024.]

21

     (a) Stages of review. Major land development and major subdivision review consists of

22

three stages of review, master plan, preliminary plan, and final plan, following the pre-application

23

meeting(s) specified in § 45-23-35. Also required is a public hearing at the master plan stage of

24

review or, if combined at the first stage of review.

25

     (b) The administrative officer may combine review stages and to modify but only the

26

planning board may waive requirements as specified in § 45-23-62. Review stages may be

27

combined only after the administrative officer determines that all necessary requirements have been

28

met by the applicant or that the planning board has waived any submission requirements not

29

included by the applicant.

30

     (c) Master plan review.

31

     (1) Submission requirements.

32

     (i) The applicant shall first submit to the administrative officer the items required by the

33

local regulations for master plans.

34

     (ii) Requirements for the master plan and supporting material for this phase of review

 

LC006023/SUB A/2 - Page 81 of 106

1

include, but are not limited to: information on the natural and built features of the surrounding

2

neighborhood, existing natural and man-made conditions of the development site, including

3

topographic features, the freshwater wetland and coastal zone boundaries, the floodplains, as well

4

as the proposed design concept, proposed public improvements and dedications, tentative

5

construction phasing; and potential neighborhood impacts.

6

     (iii) Initial comments will be solicited from:

7

     (A) Local agencies including, but not limited to, the planning department, the department

8

of public works, fire and police departments, the conservation and recreation commissions;

9

     (B) Adjacent communities;

10

     (C) State agencies, as appropriate, including the departments of environmental

11

management and transportation and the coastal resources management council; and

12

     (D) Federal agencies, as appropriate. The administrative officer shall coordinate review

13

and comments by local officials, adjacent communities, and state and federal agencies.

14

     (iv) Applications requesting relief from the zoning ordinance.

15

     (A) Applications under this chapter that require relief that qualifies only as a modification

16

under § 45-24-46 and local ordinances shall proceed by filing a master plan application under this

17

section and a request for a modification to the zoning enforcement officer. If such modification is

18

granted, the application shall then proceed to be reviewed by the planning board pursuant to the

19

applicable requirements of this section. If the modification is denied or an objection is received as

20

set forth in § 45-24-46, such application shall proceed under unified development plan review

21

pursuant to § 45-23-50.1.

22

     (B) Applications under this section that require relief from the literal provisions of the

23

zoning ordinance in the form of a variance or special use permit, shall be reviewed by the planning

24

board under unified development plan review pursuant to § 45-23-50.1.

25

     (2) Certification. The application must be certified, in writing, complete or incomplete by

26

the administrative officer within twenty-five (25) days of the submission, according to the

27

provisions of § 45-23-36(c), so long as a completed checklist of requirements is provided with the

28

submission. The running of the time period set forth herein will be deemed stopped upon the

29

issuance of a certificate of incompleteness of the application by the administrative officer and will

30

recommence upon the resubmission of a corrected application by the applicant. However, in no

31

event will the administrative officer be required to certify a corrected submission as complete or

32

incomplete less than ten (10) days after its resubmission.

33

     (3) Technical review committee. To the extent the community utilizes a technical review

34

committee, it shall review the application prior to the first planning board meeting and shall

 

LC006023/SUB A/2 - Page 82 of 106

1

comment and make recommendations to the planning board.

2

     (4) Public hearing.

3

     (i) A public hearing will be held prior to the planning board decision on the master plan.

4

If the master plan and preliminary plan review stages are being combined, a public hearing shall be

5

held during the combined stage of review.

6

     (ii) Notice for the public hearing is required and must be given at least fourteen (14) days

7

prior to the date of the meeting in a newspaper of local circulation within the municipality. Notice

8

must be mailed to the applicant and to all property owners within the notice area, as specified by

9

local regulations.

10

     (iii) At the public hearing, the applicant will present the proposed development project.

11

The planning board must allow oral and written comments from the general public. All public

12

comments are to be made part of the public record of the project application.

13

     (5) Decision. The planning board shall, within ninety (90) days of certification of

14

completeness, or within a further amount of time that may be consented to by the applicant through

15

the submission of a written waiver, approve of the master plan as submitted, approve with changes

16

and/or conditions, or deny the application, according to the requirements of §§ 45-23-60 and 45-

17

23-63.

18

     (6) Failure to act. Failure of the planning board to act within the prescribed period

19

constitutes approval of the master plan, and a certificate of the administrative officer as to the failure

20

of the planning board to act within the required time and the resulting approval will be issued on

21

request of the applicant.

22

     (7) Vesting.

23

     (i) The approved master plan is vested for a period of two (2) years, with the right to extend

24

for two (2), one-year extensions upon written request by the applicant, who must appear before the

25

planning board for the annual review. Thereafter, vesting may be extended for a longer period, for

26

good cause shown, if requested by the applicant, in writing, and approved by the planning board.

27

Master plan vesting includes the zoning requirements, conceptual layout, and all conditions shown

28

on the approved master plan drawings and supporting materials.

29

     (ii) The initial four-year (4) vesting for the approved master plan constitutes the vested

30

rights for the development as required in § 45-24-44.

31

     (d) Preliminary plan review.

32

     (1) Submission requirements.

33

     (i) The applicant shall first submit to the administrative officer the items required by the

34

local regulations for preliminary plans.

 

LC006023/SUB A/2 - Page 83 of 106

1

     (ii) Requirements for the preliminary plan and supporting materials for this phase of the

2

review include, but are not limited to: engineering plans depicting the existing site conditions,

3

engineering plans depicting the proposed development project, and a perimeter survey.

4

     (iii) At the preliminary plan review phase, the administrative officer shall solicit final,

5

written comments and/or approvals of the department of public works, the city or town engineer,

6

the city or town solicitor, other local government departments, commissions, or authorities as

7

appropriate.

8

     (iv) Prior to approval of the preliminary plan, copies of all legal documents describing the

9

property, proposed easements, and rights-of-way.

10

     (v) Prior to approval of the preliminary plan, an applicant must submit all permits required

11

by state or federal agencies, including permits related to freshwater wetlands, the coastal zone,

12

floodplains, preliminary suitability for individual septic disposal systems, public water systems,

13

and connections to state roads. For a state permit from the Rhode Island department of

14

transportation, a letter evidencing the issuance of such a permit upon the submission of a bond and

15

insurance is sufficient, but such actual permit shall be required prior to the issuance of a building

16

permit.

17

     (vi) If the applicant is requesting alteration of any variances and/or special-use permits

18

granted by the planning board or commission at the master plan stage of review pursuant to adopted

19

unified development review provisions, and/or any new variances and/or special-use permits, such

20

requests and all supporting documentation shall be included as part of the preliminary plan

21

application materials, pursuant to § 45-23-50.1(b).

22

     (2) Certification. The application will be certified as complete or incomplete by the

23

administrative officer within twenty-five (25) days, according to the provisions of § 45-23-36(c) so

24

long as a completed checklist of requirements is provided with the submission. The running of the

25

time period set forth herein will be deemed stopped upon the issuance of a certificate of

26

incompleteness of the application by the administrative officer and will recommence upon the

27

resubmission of a corrected application by the applicant. However, in no event shall the

28

administrative officer be required to certify a corrected submission as complete or incomplete less

29

than ten (10) days after its resubmission.

30

     (3) Technical review committee. To the extent the community utilizes a technical review

31

committee, it shall review the application prior to the first planning board meeting and shall

32

comment and make recommendations to the planning board.

33

     (4) Public notice. Prior to the first planning board meeting on the preliminary plan, public

34

notice shall be sent to abutters only at least fourteen (14) days before the hearing.

 

LC006023/SUB A/2 - Page 84 of 106

1

     (5) Public improvement guarantees. Proposed arrangements for completion of the

2

required public improvements, including construction schedule and/or financial guarantees, shall

3

be reviewed and approved by the planning board at preliminary plan approval.

4

     (6) Decision. A complete application for a major subdivision or development plan shall

5

be approved, approved with conditions, or denied, in accordance with the requirements of §§ 45-

6

23-60 and 45-23-63, within ninety (90) days of the date when it is certified complete, or within a

7

further amount of time that may be consented to by the developer through the submission of a

8

written waiver. Provided that, the timeframe for decision is automatically extended if evidence of

9

state permits has not been provided, or otherwise waived in accordance with this section.

10

     (7) Failure to act. Failure of the planning board to act within the prescribed period

11

constitutes approval of the preliminary plan, and a certificate of the administrative officer as to the

12

failure of the planning board to act within the required time and the resulting approval shall be

13

issued on request of the applicant.

14

     (8) Vesting. The approved preliminary plan is vested for a period of two (2) years with

15

the right to extend for two (2), one-year extensions upon written request by the applicant, who must

16

appear before the planning board for each annual review and provide proof of valid state or federal

17

permits as applicable. Thereafter, vesting may be extended for a longer period, for good cause

18

shown, if requested, in writing by the applicant, and approved by the planning board. The vesting

19

for the preliminary plan approval includes all general and specific conditions shown on the

20

approved preliminary plan drawings and supporting material.

21

     (e) Final plan.

22

     (1) Submission requirements.

23

     (i) The applicant shall submit to the administrative officer the items required by the local

24

regulations for the final plan, as well as all material required by the planning board when the

25

application was given preliminary approval.

26

     (ii) Arrangements for completion of the required public improvements, including

27

construction schedule and/or financial guarantees.

28

     (iii) Certification by the tax collector that all property taxes are current.

29

     (iv) For phased projects, the final plan for phases following the first phase, shall be

30

accompanied by copies of as-built drawings not previously submitted of all existing public

31

improvements for prior phases.

32

     (2) Certification. The application for final plan approval shall be certified complete or

33

incomplete by the administrative officer in writing, within fifteen (15) days, according to the

34

provisions of § 45-23-36(c) so long as a completed checklist of requirements is provided with the

 

LC006023/SUB A/2 - Page 85 of 106

1

submission. This time period may be extended to twenty-five (25) days by written notice from the

2

administrative officer to the applicant where the final plans contain changes to or elements not

3

included in the preliminary plan approval. The running of the time period set forth herein shall be

4

deemed stopped upon the issuance of a certificate of incompleteness of the application by the

5

administrative officer and shall recommence upon the resubmission of a corrected application by

6

the applicant. However, in no event shall the administrative officer be required to certify a corrected

7

submission as complete or incomplete less than ten (10) days after its resubmission. If the

8

administrative officer certifies the application as complete and does not require submission to the

9

planning board as per subsection (c) of this section, the final plan shall be considered approved.

10

     (3) Decision. The administrative officer, or, if referred to it, the planning board, shall

11

review, grant, grant with conditions, or deny final plan approval. A decision shall be issued within

12

forty-five (45) days after the certification of completeness, or within a further amount of time that

13

may be consented to by the applicant, to approve or deny the final plan as submitted.

14

     (4) Failure to act. Failure of the planning board to act within the prescribed period

15

constitutes approval of the final plan, and a certificate of the administrative officer as to the failure

16

of the planning board to act within the required time and the resulting approval shall be issued on

17

request of the applicant.

18

     (5) Expiration of approval. The final approval of a major subdivision or land

19

development project expires one year from the date of approval with the right to extend for one

20

year upon written request by the applicant, who must appear before the planning board for the

21

annual review, unless, within that period, the plat or plan has been submitted for signature and

22

recording as specified in § 45-23-64. Thereafter, the planning board may, for good cause shown,

23

extend the period for recording.

24

     (6) Acceptance of public improvements. Signature and recording as specified in § 45-

25

23-64 constitute the acceptance by the municipality of any street or other public improvement or

26

other land intended for dedication. Final plan approval shall not impose any duty upon the

27

municipality to maintain or improve those dedicated areas until the governing body of the

28

municipality accepts the completed public improvements as constructed in compliance with the

29

final plans.

30

     (7) Validity of recorded plans. The approved final plan, once recorded, remains valid as

31

the approved plan for the site unless and until an amendment to the plan is approved under the

32

procedure stated in § 45-23-65, or a new plan is approved by the planning board.

33

     (f) Modifications and changes to plans.

34

     (1) Minor changes, as defined in the local regulations, to the plans approved at any stage

 

LC006023/SUB A/2 - Page 86 of 106

1

may be approved administratively, by the administrative officer. The changes may be authorized

2

without an additional planning board meeting, to the extent applicable, at the discretion of the

3

administrative officer. All changes shall be made part of the permanent record of the project

4

application. This provision does not prohibit the administrative officer from requesting

5

recommendation from either the technical review committee or the permitting authority. Denial of

6

the proposed change(s) shall be referred to the applicable permitting authority for review as a major

7

change.

8

     (2) Major changes, as defined in the local regulations, to the plans approved at any stage

9

may be approved only by the applicable permitting authority and must include a public hearing.

10

     (3) The administrative officer shall notify the applicant in writing within fourteen (14)

11

days of submission of the final plan application if the administrative officer determines the change

12

to be a major change of the approved plans.

13

     (g) Appeal. Decisions under this section shall be considered an appealable decision

14

pursuant to § 45-23-71.

15

     45-23-71. Appeals to the superior court. [Effective January 1, 2024.]

16

     (a) An aggrieved party may appeal a decision of the board of appeal; a decision of an

17

administrative officer made pursuant to § 45-23-38 or § 45-23-50 where authorized to approve or

18

deny an application; a decision of the technical review committee where authorized to approve or

19

deny an application; or a decision of the planning board, to the superior court for the county in

20

which the municipality is situated by filing a complaint stating the reasons for the appeal within

21

twenty (20) days after the decision has been recorded and posted in the office of the city or town

22

clerk. Recommendations by any public body or officer under this chapter are not appealable under

23

this section. The authorized permitting authority shall file the original documents acted upon by it

24

and constituting the record of the case appealed from, or certified copies of the original documents,

25

together with any other facts that may be pertinent, with the clerk of the court within thirty (30)

26

days after being served with a copy of the complaint. When the complaint is filed by someone other

27

than the original applicant or appellant, the original applicant or appellant and the planning board

28

shall be made parties to the proceedings. No responsive pleading is required for an appeal filed

29

pursuant to this section. The appeal does not stay proceedings upon the decision appealed from, but

30

the court may, in its discretion, grant a stay on appropriate terms and make any other orders that it

31

deems necessary for an equitable disposition of the appeal.

32

     (b) Appeals from a decision granting or denying approval of a final plan shall be limited to

33

elements of the approval or disapproval not contained in the decision reached by the planning board

34

at the preliminary stage; providing provided that, a public hearing has been held on the plan, if

 

LC006023/SUB A/2 - Page 87 of 106

1

required pursuant to this chapter.

2

     (c) The review shall be conducted by the superior court without a jury. The court shall

3

consider the record of the hearing before the planning board and, if it appears to the court that

4

additional evidence is necessary for the proper disposition of the matter, it may allow any party to

5

the appeal to present evidence in open court, which evidence, along with the report, shall constitute

6

the record upon which the determination of the court shall be made.

7

     (d) The court shall not substitute its judgment for that of the planning board as to the weight

8

of the evidence on questions of fact. The court may affirm the decision of the board of appeal or

9

remand the case for further proceedings, or may reverse or modify the decision if substantial rights

10

of the appellant have been prejudiced because of findings, inferences, conclusions, or decisions that

11

are:

12

     (1) In violation of constitutional, statutory, ordinance, or planning board regulations

13

provisions;

14

     (2) In excess of the authority granted to the planning board by statute or ordinance;

15

     (3) Made upon unlawful procedure;

16

     (4) Affected by other error of law;

17

     (5) Clearly erroneous in view of the reliable, probative, and substantial evidence of the

18

whole record; or

19

     (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted

20

exercise of discretion.

21

ARTICLE III -- STATUTORY UNIFORMITY

22

     SECTION 1. The purpose and intent of this act is to correct discrepancies concerning § 34-

23

27-3.1 and § 34-27-3.2 of the general laws relating to chapter 27 of title 34 entitled Mortgage

24

Foreclosure and Sale. Upon passage of this act, the publications of the public laws and general laws

25

of these sections will be consistent, and will accurately reflect the intent of the general assembly

26

for the purposes of the practical application of the sections.

27

     SECTION 2. Section 1 of Chapter 376 and 384 of the 2009 Public Laws entitled "An Act

28

Relating to Property--Mortgage Foreclosure and Sale" is hereby repealed.

29

     34-27-3.1. Foreclosure counseling.

30

     (a) No less than forty-five (45) days prior to initiating any foreclosure of real estate

31

pursuant to subsection 34-27-4(b), the mortgagee shall provide to an individual consumer

32

mortgagor written notice of default and the mortgagee’s right to foreclose by first class mail at the

33

address of the real estate and, if different, at the address designated by the mortgagor by written

34

notice to the mortgagee as the mortgagor’s address for receipt of notices.

 

LC006023/SUB A/2 - Page 88 of 106

1

     (b) The written notice required by this section shall be in English and Spanish and,

2

provided the same is then available, shall advise the mortgagor of the availability of counseling

3

through HUD-approved mortgage counseling agencies and, the toll-free telephone number and

4

website address maintained to provide information regarding no-cost HUD-approved mortgage

5

counseling agencies in Rhode Island. The written notice may also contain any other information

6

required under federal law. A form of written notice meeting the requirements of this section shall

7

be promulgated by the department of business regulation for use by mortgagees at least thirty (30)

8

days prior to the effective date of this section. Counseling shall be provided at no cost to the

9

mortgagee.

10

     (c) Failure of the mortgagee to provide notice to the mortgagor as provided herein shall

11

render the foreclosure void, without limitation of the right of the mortgagee thereafter to reexercise

12

its power of sale or other means of foreclosure upon compliance with this section. The mortgagee

13

shall include in the foreclosure deed an affidavit of compliance with this section.

14

     (d) As used herein and in this chapter, the term "HUD" means the United States Department

15

of Housing and Urban Development and any successor to such department.

16

     SECTION 3. Section 1 of Chapters 325 and 406 of the 2013 public laws entitled "An Act

17

Relating to Property--Mortgage Foreclosure and Sale" is hereby repealed.

18

     34-27-3.2. Mediation conference. –

19

     (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions,

20

caused in part by unemployment and underemployment, have negatively impacted a substantial

21

number of homeowners throughout the state, creating a situation which endangers the economic

22

stability of many of the citizens of this state, as the increasing numbers of foreclosures lead to

23

increases in unoccupied and unattended buildings and the unwanted displacement of homeowners

24

and tenants who desire to live and work within the state.

25

     (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the

26

provisions of Chapter 34-27 of the general laws. As the need for a mortgage mediation process has

27

evolved, it is important for the state to develop a standardized, statewide process for foreclosure

28

mediation rather than a process based on local ordinances that may vary from municipality to

29

municipality. By providing a uniform standard for an early HUD-approved independent counseling

30

process in owner-occupied principal residence mortgage foreclosure cases, the chances of

31

achieving a positive outcome for homeowners and lenders will be enhanced.

32

     (c) Definitions. The following definitions apply in the interpretations of the provisions of

33

this section unless the context requires another meaning:

34

     (1) "Mediation conference" means a conference involving the mortgagee and mortgagor,

 

LC006023/SUB A/2 - Page 89 of 106

1

coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an

2

alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if

3

it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan work-

4

out or other solution in an effort to avoid foreclosure.

5

     (2) "Mediation coordinator" means a person designated by a Rhode Island based HUD

6

approved counseling agency to serve as the unbiased, impartial and independent coordinator and

7

facilitator of the mediation conference, with no authority to impose a solution or otherwise act as a

8

consumer advocate, provided that such person possesses the experience and qualifications

9

established by the department.

10

     (3) "Department" means the department of business regulation.

11

     (4) "Good Faith" means that the mortgagor and mortgagee deal honestly and fairly with

12

the mediation coordinator with an intent to determine whether an alternative to foreclosure is

13

economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the

14

following factors:

15

     (i) Mortgagee provided notice as required by this section;

16

     (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf,

17

and with the authority to agree to a work-out agreement on its behalf;

18

     (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for

19

information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor;

20

     (iv) Mortgagee declines to accept the mortgagor’s work-out proposal, if any, and the

21

mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal;

22

     (v) Where a mortgagee declines to accept the mortgagor’s work-out proposal, the

23

mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal

24

that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage.

25

     (5) "HUD" means the United States Department of Housing and Urban Development and

26

any successor to such department.

27

     (6) "Mortgage" means an individual consumer mortgage on any owner-occupied, one to

28

four (4) unit residential property which serves as the owner’s primary residence.

29

     (7) "Mortgagee" means the holder of a mortgage.

30

     (8) "Mortgagor" means the owner of the property subject to a mortgage.

31

     (d) No mortgagee may initiate any foreclosure of real estate pursuant to subsection 34-27-

32

4(b) unless the requirements of this section have been met.

33

     (e) When a mortgage is not more than one hundred twenty (120) days delinquent, the

34

mortgagee or its mortgage servicer or other agent or representative of the mortgagee shall provide

 

LC006023/SUB A/2 - Page 90 of 106

1

to the mortgagor written notice, by certified and first class mail at the address of the real estate and,

2

if different, at the address designated by the mortgagor by written notice to the mortgagee as the

3

mortgagor's address for receipt of notices, that the mortgagee may not foreclose on the mortgaged

4

property without first participating in a mediation conference.

5

     (f) A form of written notice meeting the requirements of this section shall be promulgated

6

by the department for use by mortgagees at least thirty (30) days prior to the effective date of this

7

section. The written notice required by this section shall be in English, Portuguese and Spanish,

8

reference the property’s plat and lot information, and may be combined with any other notice

9

required under this chapter or pursuant to state or federal law.

10

     (g) The mediation conference shall take place in person, or over the phone, at a time and

11

place deemed mutually convenient for the parties by an individual employed by a HUD-approved

12

independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but

13

not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in

14

all respects with the mediation coordinator including, but not limited to, providing all necessary

15

financial and employment information and completing any and all loan resolution proposals and

16

applications deemed appropriate by the mediation coordinator. A mediation conference between

17

the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to

18

the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee at a

19

rate not to exceed five hundred dollars ($500) per engagement.

20

     (h) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the

21

mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation

22

conference, or the mortgagor fails to cooperate in any respect with the requirements of this section,

23

the requirements of the section shall be deemed satisfied upon verification by the mediation

24

coordinator that the required notice was sent. Upon verification, a certificate will be issued

25

immediately by the mediation coordinator authorizing the mortgagee to proceed with the

26

foreclosure action, including recording the deed. Such certificate shall be recorded along with the

27

foreclosure deed. A form of certificate meeting the requirements of this section shall be

28

promulgated by the department for use by mortgagees at least thirty (30) days prior to the effective

29

date of this section.

30

     (i) If the mediation coordinator determines that after a good faith effort made by the

31

mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the

32

terms of the loan in an effort to avoid foreclosure, such good faith effort by the mortgagee shall be

33

deemed to satisfy the requirements of this section. A certificate certifying such good faith effort

34

will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with

 

LC006023/SUB A/2 - Page 91 of 106

1

the foreclosure action and recording of the foreclosure deed. Such certification shall be recorded

2

along with the foreclosure deed. A form of certificate meeting the requirements of this section shall

3

be promulgated by the department for use by mortgagees at least thirty (30) days prior to the

4

effective date of this section.

5

     (j) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of

6

the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the

7

mortgagor and mortgagee.

8

     (k) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee

9

have entered into a written agreement and the mortgagor fails to fulfill his or her obligations under

10

the written agreement, the provisions of this section shall not apply to any foreclosure initiated

11

under this chapter within twelve (12) months following the execution of the written agreement. In

12

such case, the mortgagee shall include in the foreclosure deed an affidavit establishing its right to

13

proceed under this section.

14

     (l) This section shall apply only to foreclosure of mortgages on owner-occupied, residential

15

real property with no more than four (4) dwelling units which is the primary dwelling of the owner

16

and not to mortgages secured by other real property.

17

     (m) Notwithstanding any other provisions of this section, any locally-based mortgagees

18

shall be deemed to be in compliance with the requirements of this section if:

19

     (1) The mortgagee is headquartered in Rhode Island; or

20

     (2) The mortgagee maintains a physical office or offices exclusively in Rhode Island from

21

which office or offices it carries out full-service mortgage operations, including the acceptance and

22

processing of mortgage payments and the provision of local customer service and loss mitigation

23

and where Rhode Island staff have the authority to approve loan restructuring and other loss

24

mitigation strategies; and

25

     (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as

26

a result of a mortgage foreclosure action contained a certification that the provisions of this section

27

have been satisfied.

28

     (n) No deed offered by a mortgagee as a result of a mortgage foreclosure action shall be

29

submitted to a city or town recorder of deeds for recording in the land evidence records of the city

30

or town until and unless the requirements of this section are met. The mortgagee shall include in

31

the foreclosure deed an affidavit of compliance with this section. Failure of the mortgagee to

32

comply with the requirements of this section shall render the foreclosure void, without limitation

33

of the right of the mortgagee thereafter to re-exercise its power of sale or other means of foreclosure

34

upon compliance with this section. The rights of the mortgagor to any redress afforded under the

 

LC006023/SUB A/2 - Page 92 of 106

1

law are not abridged by this section.

2

     (o) Any existing municipal ordinance or future ordinance which requires a conciliation or

3

mediation process as a precondition to the recordation of a foreclosure deed shall comply with the

4

provisions set forth herein and any provisions of said ordinances which do not comply with the

5

provisions set forth herein shall be determined to be unenforceable.

6

     SECTION 4. Section 34-27-3.2 of the General Laws in Chapter 34-27 entitled "Mortgage

7

Foreclosure and Sale" is hereby repealed.

8

     34-27-3.2. Mediation conference. [The repeal of this section is reinstated in its current

9

form as § 34-27-9]

10

     (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions,

11

caused in part by unemployment and underemployment, have negatively impacted a substantial

12

number of homeowners throughout the state, creating a situation that endangers the economic

13

stability of many of the citizens of this state as the increasing numbers of foreclosures lead to

14

increases in unoccupied and unattended buildings and the unwanted displacement of homeowners

15

and tenants who desire to live and work within the state.

16

     (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the

17

provisions of chapter 27 of this title. As the need for a mortgage mediation process has evolved, it

18

is important for the state to develop a standardized, statewide process for foreclosure mediation

19

rather than a process based on local ordinances that may vary from municipality to municipality.

20

By providing a uniform standard for an early HUD-approved, independent counseling process in

21

owner-occupied principal residence mortgage foreclosure cases, the chances of achieving a positive

22

outcome for homeowners and lenders will be enhanced.

23

     (c) Definitions. The following definitions apply in the interpretations of the provisions of

24

this section unless the context requires another meaning:

25

     (1) "Default" means the failure of the mortgagor to make a timely payment of an amount

26

due under the terms of the mortgage contract, which failure has not been subsequently cured.

27

     (2) "Department" means the department of business regulation.

28

     (3) "Good faith" means that the mortgagor and mortgagee deal honestly and fairly with the

29

mediation coordinator with an intent to determine whether an alternative to foreclosure is

30

economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the

31

following factors:

32

     (i) Mortgagee provided notice as required by this section;

33

     (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf

34

and with the authority to agree to a work-out agreement on its behalf;

 

LC006023/SUB A/2 - Page 93 of 106

1

     (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for

2

information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor;

3

     (iv) Mortgagee declined to accept the mortgagor’s work-out proposal, if any, and the

4

mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal;

5

     (v) Where a mortgagee declined to accept the mortgagor’s work-out proposal, the

6

mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal

7

that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage.

8

     (4) "HUD" means the United States Department of Housing and Urban Development and

9

any successor to such department.

10

     (5) "Mediation conference" means a conference involving the mortgagee and mortgagor,

11

coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an

12

alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if

13

it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan

14

workout or other solution in an effort to avoid foreclosure.

15

     (6) "Mediation coordinator" means a person employed by a Rhode Island-based, HUD-

16

approved counseling agency designated to serve as the unbiased, impartial, and independent

17

coordinator and facilitator of the mediation conference, with no authority to impose a solution or

18

otherwise act as a consumer advocate, provided that such person possesses the experience and

19

qualifications established by the department.

20

     (7) "Mortgage" means an individual consumer first-lien mortgage on any owner-occupied,

21

one (1)- to four (4)- unit residential property that serves as the mortgagor’s primary residence.

22

     (8) "Mortgagee" means the holder of a mortgage, or its agent or employee, including a

23

mortgage servicer acting on behalf of a mortgagee.

24

     (9) "Mortgagor" means the person who has signed a mortgage in order to secure a debt or

25

other duty, or the heir or devisee of such person provided that:

26

     (i) The heir or devisee occupies the property as his or her primary residence; and

27

     (ii) The heir or devisee has record title to the property, or a representative of the estate of

28

the mortgagor has been appointed with authority to participate in a mediation conference.

29

     (d) The mortgagee shall, prior to initiation of foreclosure of real estate pursuant to § 34-

30

27-4(b), provide to the mortgagor written notice at the address of the real estate and, if different, at

31

the address designated by the mortgagor by written notice to the mortgagee as the mortgagor’s

32

address for receipt of notices, that the mortgagee may not foreclose on the mortgaged property

33

without first participating in a mediation conference. Notice addressed and delivered as provided

34

in this section shall be effective with respect to the mortgagor and any heir or devisee of the

 

LC006023/SUB A/2 - Page 94 of 106

1

mortgagor.

2

     (1) If the mortgagee fails to mail the notice required by this subsection to the mortgagor

3

within one hundred twenty (120) days after the date of default, it shall pay a penalty at the rate of

4

one thousand ($1,000) per month for each month or part thereof, with the first month commencing

5

on the one hundred twenty-first (121st) day after the date of default and a new month commencing

6

on the same day (or if there is no such day, then on the last day) of each succeeding calendar month

7

until the mortgagee sends the mortgagor written notice as required by this section.

8

     Notwithstanding the foregoing, any penalties assessed under this subsection for any failure

9

of any mortgagee to provide notice as provided herein during the period from September 13, 2013,

10

through the effective date of this section shall not exceed the total amount of one hundred twenty-

11

five thousand dollars ($125,000) for such mortgagee.

12

     (2) Penalties accruing pursuant to subsection (d)(1) shall be paid to the mediation

13

coordinator prior to the completion of the mediation process. All penalties accrued under this

14

section shall be transferred to the state within one month of receipt by the mediation coordinator

15

and deposited to the restricted-receipt account within the general fund established by § 42-128-

16

2(3) and used for the purposes set forth therein.

17

     (3) Issuance by the mediation coordinator of a certificate authorizing the mortgagee to

18

proceed to foreclosure, or otherwise certifying the mortgagee’s good-faith effort to comply with

19

the provisions of this section, shall constitute conclusive evidence that, to the extent that any penalty

20

may have accrued pursuant to subsection (d)(1), the penalty has been paid in full by the mortgagee.

21

     (4) Notwithstanding any other provisions of this subsection, a mortgagee shall not accrue

22

any penalty if the notice required by this subsection is mailed to the borrower:

23

     (i) Within sixty (60) days after the date upon which the loan is released from the protection

24

of the automatic stay in a bankruptcy proceeding, or any similar injunctive order issued by a state

25

or federal court, or within sixty (60) days after a loan is no longer afforded protection under the

26

Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.) or the provisions of § 34-27-4(d), or

27

within one hundred twenty (120) days of the date on which the mortgagor initially failed to comply

28

with the terms of an eligible workout agreement, as hereinafter defined; and

29

     (ii) The mortgagee otherwise complies with the requirements of subsection (d); provided,

30

however, that if the mortgagee fails to mail the notice required by subsection (d) to the mortgagor

31

within the time frame set forth in subsection (d)(4)(i), the mortgagee shall pay a penalty at the rate

32

of one thousand dollars ($1,000) per month for each month, or part thereof, with the first month

33

commencing on the thirty-first (31st) day after the date upon which the loan is released from the

34

protection of the automatic stay in a bankruptcy proceeding or any similar injunctive order issued

 

LC006023/SUB A/2 - Page 95 of 106

1

by a state or federal court and a new month commencing on the same day (or if there is no such

2

day, then on the last day) of each succeeding calendar month until the mortgagee sends the

3

mortgagor written notice as required by this section. Notwithstanding the foregoing, any penalties

4

assessed under this subsection for any failure of any mortgagee to provide notice as provided herein

5

during the period from September 13, 2013, through the effective date of this section shall not

6

exceed the total amount of one hundred twenty-five thousand dollars ($125,000) for such

7

mortgagee.

8

     (5) Notwithstanding any other provisions of this section, a mortgagee may initiate a judicial

9

foreclosure in accordance with § 34-27-1.

10

     (e) A form of written notice meeting the requirements of this section shall be promulgated

11

by the department for use by mortgagees at least thirty (30) days prior to the effective date of this

12

section. The written notice required by this section shall be in English, Portuguese, and Spanish

13

and may be combined with any other notice required under this chapter or pursuant to state or

14

federal law.

15

     (f) The mediation conference shall take place in person, or over the phone, at a time and

16

place deemed mutually convenient for the parties by an individual employed by a HUD-approved,

17

independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but

18

not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in

19

all respects with the mediation coordinator including, but not limited to, providing all necessary

20

financial and employment information and completing any and all loan resolution proposals and

21

applications deemed appropriate by the mediation coordinator. A mediation conference between

22

the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to

23

the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee for

24

mediation conferences that take place at a rate not to exceed five hundred dollars ($500) per

25

mediation. The HUD-approved agency shall be entitled to a filing fee not to exceed one hundred

26

dollars ($100) per mediation engagement.

27

     (g) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the

28

mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation

29

conference, or the mortgagor fails to cooperate in any respect with the requirements of this section,

30

the requirements of the section shall be deemed satisfied upon verification by the mediation

31

coordinator that the required notice was sent and any penalties accrued pursuant to subsection (d)(1)

32

and any payments owed pursuant to subsection (f) have been paid. Upon verification, a certificate

33

will be issued immediately by the mediation coordinator authorizing the mortgagee to proceed with

34

the foreclosure action, including recording the deed. Such certificate shall be valid until the earlier

 

LC006023/SUB A/2 - Page 96 of 106

1

of:

2

     (1) The curing of the default condition; or

3

     (2) The foreclosure of the mortgagor’s right of redemption.

4

     The certificate shall be recorded along with the foreclosure deed. A form of certificate

5

meeting the requirements of this section shall be promulgated by the department for use by

6

mortgagees at least thirty (30) days prior to the effective date of this section.

7

     (h) If the mediation coordinator determines that after a good-faith effort made by the

8

mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the

9

terms of the loan in an effort to avoid foreclosure, such good-faith effort by the mortgagee shall be

10

deemed to satisfy the requirements of this section. A certificate certifying such good-faith effort

11

will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with

12

the foreclosure action and recording of the foreclosure deed; provided, however, that the mediation

13

coordinator shall not be required to issue such a certificate until any penalties accrued pursuant to

14

subsections (d)(1) and (d)(4)(ii), and any payments owed pursuant to subsection (f), have been paid.

15

Such certification shall be valid until the earlier of:

16

     (1) The curing of the default condition; or

17

     (2) The foreclosure of the mortgagor’s equity of redemption.

18

     The certificate shall be recorded along with the foreclosure deed. A form of certificate

19

meeting the requirements of this section shall be promulgated by the department for use by

20

mortgagees at least thirty (30) days prior to the effective date of this section.

21

     (i) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of

22

the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the

23

mortgagor and mortgagee. If the mortgagee and mortgagor reach agreement after the notice of

24

mediation conference is sent to the mortgagor, but without the assistance of the mediation

25

coordinator, the mortgagee shall provide a copy of the written agreement to the mediation

26

coordinator. Upon receipt of a written agreement between the mortgagee and mortgagor, the

27

mediation coordinator shall issue a certificate of eligible workout agreement if the workout

28

agreement would result in a net financial benefit to the mortgagor as compared to the terms of the

29

mortgage ("Certificate of Eligible Workout Agreement"). For purposes of this subsection, evidence

30

of an agreement shall include, but not be limited to, evidence of agreement by both mortgagee and

31

mortgagor to the terms of a short sale or a deed in lieu of foreclosure, regardless of whether said

32

short sale or deed in lieu of foreclosure is subsequently completed.

33

     (j) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee

34

have entered into a written agreement and the mediation coordinator has issued a certificate of

 

LC006023/SUB A/2 - Page 97 of 106

1

eligible workout agreement as provided in subsection (i), if the mortgagor fails to fulfill his or her

2

obligations under the eligible workout agreement, the provisions of this section shall not apply to

3

any foreclosure initiated under this chapter within twelve (12) months following the date of the

4

eligible workout agreement. In such case, the mortgagee shall include in the foreclosure deed an

5

affidavit establishing its right to proceed under this section.

6

     (k) This section shall apply only to foreclosure of mortgages on owner-occupied,

7

residential real property with no more than four (4) dwelling units that is the primary dwelling of

8

the mortgagor and not to mortgages secured by other real property.

9

     (l) Notwithstanding any other provisions of this section, any locally based mortgagees shall

10

be deemed to be in compliance with the requirements of this section if:

11

     (1) The mortgagee is headquartered in Rhode Island; or

12

     (2) The mortgagee maintains a physical office, or offices, exclusively in Rhode Island from

13

which office, or offices, it carries out full-service mortgage operations, including the acceptance

14

and processing of mortgage payments and the provision of local customer service and loss

15

mitigation and where Rhode Island staff have the authority to approve loan restructuring and other

16

loss mitigation strategies; and

17

     (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as

18

a result of a mortgage foreclosure action under power of sale contained a certification that the

19

provisions of this section have been satisfied.

20

     (m) No deed offered by a mortgagee as a result of a mortgage foreclosure action under

21

power of sale shall be submitted to a city or town recorder of deeds for recording in the land

22

evidence records of the city or town until and unless the requirements of this section are met. Failure

23

of the mortgagee to comply with the requirements of this section shall render the foreclosure

24

voidable, without limitation of the right of the mortgagee thereafter to re-exercise its power of sale

25

or other means of foreclosure upon compliance with this section. The rights of the mortgagor to

26

any redress afforded under the law are not abridged by this section.

27

     (n) Any existing municipal ordinance or future ordinance that requires a conciliation or

28

mediation process as a precondition to the recordation of a foreclosure deed shall comply with the

29

provisions set forth herein and any provisions of said ordinances that do not comply with the

30

provisions set forth herein shall be determined to be unenforceable.

31

     (o) The provisions of this section shall not apply if:

32

     (1) The mortgage is a reverse mortgage as described in chapter 25.1 of this title; or

33

     (2) The date of default under the mortgage is on or before May 16, 2013.

34

     (p) Limitations on actions. Any person who claims that a foreclosure is not valid due to the

 

LC006023/SUB A/2 - Page 98 of 106

1

mortgagee’s failure to comply with the terms of this section shall have one year from the date that

2

the first notice of foreclosure was published to file a complaint in the superior court for the county

3

in which the property is located and shall also file in the records of land evidence in the city or town

4

where the land subject to the mortgage is located a notice of lis pendens, the complaint to be filed

5

on the same day as the notice of lis pendens or within seven (7) days thereafter. Failure to file a

6

complaint, record the notice of lis pendens, and serve the mortgagee within the one-year period

7

shall preclude said mortgagor, or any other person claiming an interest through a mortgagor, from

8

subsequently challenging the validity of the foreclosure. Issuance by the mediation coordinator of

9

a certificate authorizing the mortgagee to proceed to foreclosure, or otherwise certifying the

10

mortgagee’s good-faith effort to comply with the provisions of this section, shall constitute a

11

rebuttable presumption that the notice requirements of subsection (d) have been met in all respects.

12

     SECTION 5. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and Sale"

13

is hereby amended by adding thereto the following section:

14

     34-27-9. Mediation conference. [Reinstated from § 34-27-3.2]

15

     (a) Statement of policy. It is hereby declared that residential mortgage foreclosure actions,

16

caused in part by unemployment and underemployment, have negatively impacted a substantial

17

number of homeowners throughout the state, creating a situation that endangers the economic

18

stability of many of the citizens of this state as the increasing numbers of foreclosures lead to

19

increases in unoccupied and unattended buildings and the unwanted displacement of homeowners

20

and tenants who desire to live and work within the state.

21

     (b) Purpose. The statutory framework for foreclosure proceedings is prescribed under the

22

provisions of chapter 27 of this title. As the need for a mortgage mediation process has evolved, it

23

is important for the state to develop a standardized, statewide process for foreclosure mediation

24

rather than a process based on local ordinances that may vary from municipality to municipality.

25

By providing a uniform standard for an early HUD-approved, independent counseling process in

26

owner-occupied principal residence mortgage foreclosure cases, the chances of achieving a positive

27

outcome for homeowners and lenders will be enhanced.

28

     (c) Definitions. The following definitions apply in the interpretations of the provisions of

29

this section unless the context requires another meaning:

30

     (1) "Default" means the failure of the mortgagor to make a timely payment of an amount

31

due under the terms of the mortgage contract, which failure has not been subsequently cured.

32

     (2) "Department" means the department of business regulation.

33

     (3) "Good faith" means that the mortgagor and mortgagee deal honestly and fairly with the

34

mediation coordinator with an intent to determine whether an alternative to foreclosure is

 

LC006023/SUB A/2 - Page 99 of 106

1

economically feasible for the mortgagor and mortgagee, as evidenced by some or all of the

2

following factors:

3

     (i) Mortgagee provided notice as required by this section;

4

     (ii) Mortgagee designated an agent to participate in the mediation conference on its behalf

5

and with the authority to agree to a work-out agreement on its behalf;

6

     (iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for

7

information from the mediation coordinator, mortgagor, or counselor assisting the mortgagor;

8

     (iv) Mortgagee declined to accept the mortgagor’s work-out proposal, if any, and the

9

mortgagee provided a detailed statement, in writing, of its reasons for rejecting the proposal;

10

     (v) Where a mortgagee declined to accept the mortgagor’s work-out proposal, the

11

mortgagee offered, in writing, to enter into an alternative work-out/disposition resolution proposal

12

that would result in net financial benefit to the mortgagor as compared to the terms of the mortgage.

13

     (4) "HUD" means the United States Department of Housing and Urban Development and

14

any successor to such department.

15

     (5) "Mediation conference" means a conference involving the mortgagee and mortgagor,

16

coordinated and facilitated by a mediation coordinator whose purpose is to determine whether an

17

alternative to foreclosure is economically feasible to both the mortgagee and the mortgagor, and if

18

it is determined that an alternative to foreclosure is economically feasible, to facilitate a loan

19

workout or other solution in an effort to avoid foreclosure.

20

     (6) "Mediation coordinator" means a person employed by a Rhode Island-based, HUD-

21

approved counseling agency designated to serve as the unbiased, impartial, and independent

22

coordinator and facilitator of the mediation conference, with no authority to impose a solution or

23

otherwise act as a consumer advocate, provided that such person possesses the experience and

24

qualifications established by the department.

25

     (7) "Mortgage" means an individual consumer first-lien mortgage on any owner-occupied,

26

one (1)- to four (4)- unit residential property that serves as the mortgagor’s primary residence.

27

     (8) "Mortgagee" means the holder of a mortgage, or its agent or employee, including a

28

mortgage servicer acting on behalf of a mortgagee.

29

     (9) "Mortgagor" means the person who has signed a mortgage in order to secure a debt or

30

other duty, or the heir or devisee of such person provided that:

31

     (i) The heir or devisee occupies the property as his or her primary residence; and

32

     (ii) The heir or devisee has record title to the property, or a representative of the estate of

33

the mortgagor has been appointed with authority to participate in a mediation conference.

34

     (d) The mortgagee shall, prior to initiation of foreclosure of real estate pursuant to § 34-

 

LC006023/SUB A/2 - Page 100 of 106

1

27-4(b), provide to the mortgagor written notice at the address of the real estate and, if different, at

2

the address designated by the mortgagor by written notice to the mortgagee as the mortgagor’s

3

address for receipt of notices, that the mortgagee may not foreclose on the mortgaged property

4

without first participating in a mediation conference. Notice addressed and delivered as provided

5

in this section shall be effective with respect to the mortgagor and any heir or devisee of the

6

mortgagor.

7

     (1) If the mortgagee fails to mail the notice required by this subsection to the mortgagor

8

within one hundred twenty (120) days after the date of default, it shall pay a penalty at the rate of

9

one thousand ($1,000) per month for each month or part thereof, with the first month commencing

10

on the one hundred twenty-first (121st) day after the date of default and a new month commencing

11

on the same day (or if there is no such day, then on the last day) of each succeeding calendar month

12

until the mortgagee sends the mortgagor written notice as required by this section.

13

     Notwithstanding the foregoing, any penalties assessed under this subsection for any failure

14

of any mortgagee to provide notice as provided herein during the period from September 13, 2013,

15

through the effective date of this section shall not exceed the total amount of one hundred twenty-

16

five thousand dollars ($125,000) for such mortgagee.

17

     (2) Penalties accruing pursuant to subsection (d)(1) shall be paid to the mediation

18

coordinator prior to the completion of the mediation process. All penalties accrued under this

19

section shall be transferred to the state within one month of receipt by the mediation coordinator

20

and deposited to the restricted-receipt account within the general fund established by § 42-128-

21

2(3) and used for the purposes set forth therein.

22

     (3) Issuance by the mediation coordinator of a certificate authorizing the mortgagee to

23

proceed to foreclosure, or otherwise certifying the mortgagee’s good-faith effort to comply with

24

the provisions of this section, shall constitute conclusive evidence that, to the extent that any penalty

25

may have accrued pursuant to subsection (d)(1), the penalty has been paid in full by the mortgagee.

26

     (4) Notwithstanding any other provisions of this subsection, a mortgagee shall not accrue

27

any penalty if the notice required by this subsection is mailed to the borrower:

28

     (i) Within sixty (60) days after the date upon which the loan is released from the protection

29

of the automatic stay in a bankruptcy proceeding, or any similar injunctive order issued by a state

30

or federal court, or within sixty (60) days after a loan is no longer afforded protection under the

31

Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.) or the provisions of § 34-27-4(d), or

32

within one hundred twenty (120) days of the date on which the mortgagor initially failed to comply

33

with the terms of an eligible workout agreement, as hereinafter defined; and

34

     (ii) The mortgagee otherwise complies with the requirements of subsection (d); provided,

 

LC006023/SUB A/2 - Page 101 of 106

1

however, that if the mortgagee fails to mail the notice required by subsection (d) to the mortgagor

2

within the time frame set forth in subsection (d)(4)(i), the mortgagee shall pay a penalty at the rate

3

of one thousand dollars ($1,000) per month for each month, or part thereof, with the first month

4

commencing on the thirty-first (31st) day after the date upon which the loan is released from the

5

protection of the automatic stay in a bankruptcy proceeding or any similar injunctive order issued

6

by a state or federal court and a new month commencing on the same day (or if there is no such

7

day, then on the last day) of each succeeding calendar month until the mortgagee sends the

8

mortgagor written notice as required by this section. Notwithstanding the foregoing, any penalties

9

assessed under this subsection for any failure of any mortgagee to provide notice as provided herein

10

during the period from September 13, 2013, through the effective date of this section shall not

11

exceed the total amount of one hundred twenty-five thousand dollars ($125,000) for such

12

mortgagee.

13

     (5) Notwithstanding any other provisions of this section, a mortgagee may initiate a judicial

14

foreclosure in accordance with § 34-27-1.

15

     (e) A form of written notice meeting the requirements of this section shall be promulgated

16

by the department for use by mortgagees at least thirty (30) days prior to the effective date of this

17

section. The written notice required by this section shall be in English, Portuguese, and Spanish

18

and may be combined with any other notice required under this chapter or pursuant to state or

19

federal law.

20

     (f) The mediation conference shall take place in person, or over the phone, at a time and

21

place deemed mutually convenient for the parties by an individual employed by a HUD-approved,

22

independent counseling agency selected by the mortgagee to serve as a mediation coordinator, but

23

not later than sixty (60) days following the mailing of the notice. The mortgagor shall cooperate in

24

all respects with the mediation coordinator including, but not limited to, providing all necessary

25

financial and employment information and completing any and all loan resolution proposals and

26

applications deemed appropriate by the mediation coordinator. A mediation conference between

27

the mortgagor and mortgagee conducted by a mediation coordinator shall be provided at no cost to

28

the mortgagor. The HUD-approved counseling agency shall be compensated by the mortgagee for

29

mediation conferences that take place at a rate not to exceed five hundred dollars ($500) per

30

mediation. The HUD-approved agency shall be entitled to a filing fee not to exceed one hundred

31

dollars ($100) per mediation engagement.

32

     (g) If, after two (2) attempts by the mediation coordinator to contact the mortgagor, the

33

mortgagor fails to respond to the mediation coordinator’s request to appear at a mediation

34

conference, or the mortgagor fails to cooperate in any respect with the requirements of this section,

 

LC006023/SUB A/2 - Page 102 of 106

1

the requirements of the section shall be deemed satisfied upon verification by the mediation

2

coordinator that the required notice was sent and any penalties accrued pursuant to subsection (d)(1)

3

and any payments owed pursuant to subsection (f) have been paid. Upon verification, a certificate

4

will be issued immediately by the mediation coordinator authorizing the mortgagee to proceed with

5

the foreclosure action, including recording the deed. Such certificate shall be valid until the earlier

6

of:

7

     (1) The curing of the default condition; or

8

     (2) The foreclosure of the mortgagor’s right of redemption.

9

     The certificate shall be recorded along with the foreclosure deed. A form of certificate

10

meeting the requirements of this section shall be promulgated by the department for use by

11

mortgagees at least thirty (30) days prior to the effective date of this section.

12

     (h) If the mediation coordinator determines that after a good-faith effort made by the

13

mortgagee at the mediation conference, the parties cannot come to an agreement to renegotiate the

14

terms of the loan in an effort to avoid foreclosure, such good-faith effort by the mortgagee shall be

15

deemed to satisfy the requirements of this section. A certificate certifying such good-faith effort

16

will be promptly issued by the mediation coordinator authorizing the mortgagee to proceed with

17

the foreclosure action and recording of the foreclosure deed; provided, however, that the mediation

18

coordinator shall not be required to issue such a certificate until any penalties accrued pursuant to

19

subsections (d)(1) and (d)(4)(ii), and any payments owed pursuant to subsection (f), have been paid.

20

Such certification shall be valid until the earlier of:

21

     (1) The curing of the default condition; or

22

     (2) The foreclosure of the mortgagor’s equity of redemption.

23

     The certificate shall be recorded along with the foreclosure deed. A form of certificate

24

meeting the requirements of this section shall be promulgated by the department for use by

25

mortgagees at least thirty (30) days prior to the effective date of this section.

26

     (i) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms of

27

the loan to avoid foreclosure, the agreement shall be reduced to writing and executed by the

28

mortgagor and mortgagee. If the mortgagee and mortgagor reach agreement after the notice of

29

mediation conference is sent to the mortgagor, but without the assistance of the mediation

30

coordinator, the mortgagee shall provide a copy of the written agreement to the mediation

31

coordinator. Upon receipt of a written agreement between the mortgagee and mortgagor, the

32

mediation coordinator shall issue a certificate of eligible workout agreement if the workout

33

agreement would result in a net financial benefit to the mortgagor as compared to the terms of the

34

mortgage ("Certificate of Eligible Workout Agreement"). For purposes of this subsection, evidence

 

LC006023/SUB A/2 - Page 103 of 106

1

of an agreement shall include, but not be limited to, evidence of agreement by both mortgagee and

2

mortgagor to the terms of a short sale or a deed in lieu of foreclosure, regardless of whether said

3

short sale or deed in lieu of foreclosure is subsequently completed.

4

     (j) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee

5

have entered into a written agreement and the mediation coordinator has issued a certificate of

6

eligible workout agreement as provided in subsection (i), if the mortgagor fails to fulfill his or her

7

obligations under the eligible workout agreement, the provisions of this section shall not apply to

8

any foreclosure initiated under this chapter within twelve (12) months following the date of the

9

eligible workout agreement. In such case, the mortgagee shall include in the foreclosure deed an

10

affidavit establishing its right to proceed under this section.

11

     (k) This section shall apply only to foreclosure of mortgages on owner-occupied,

12

residential real property with no more than four (4) dwelling units that is the primary dwelling of

13

the mortgagor and not to mortgages secured by other real property.

14

     (l) Notwithstanding any other provisions of this section, any locally based mortgagees shall

15

be deemed to be in compliance with the requirements of this section if:

16

     (1) The mortgagee is headquartered in Rhode Island; or

17

     (2) The mortgagee maintains a physical office, or offices, exclusively in Rhode Island from

18

which office, or offices, it carries out full-service mortgage operations, including the acceptance

19

and processing of mortgage payments and the provision of local customer service and loss

20

mitigation and where Rhode Island staff have the authority to approve loan restructuring and other

21

loss mitigation strategies; and

22

     (3) The deed offered by a mortgagee to be filed with the city or town recorder of deeds as

23

a result of a mortgage foreclosure action under power of sale contained a certification that the

24

provisions of this section have been satisfied.

25

     (m) No deed offered by a mortgagee as a result of a mortgage foreclosure action under

26

power of sale shall be submitted to a city or town recorder of deeds for recording in the land

27

evidence records of the city or town until and unless the requirements of this section are met. Failure

28

of the mortgagee to comply with the requirements of this section shall render the foreclosure

29

voidable, without limitation of the right of the mortgagee thereafter to re-exercise its power of sale

30

or other means of foreclosure upon compliance with this section. The rights of the mortgagor to

31

any redress afforded under the law are not abridged by this section.

32

     (n) Any existing municipal ordinance or future ordinance that requires a conciliation or

33

mediation process as a precondition to the recordation of a foreclosure deed shall comply with the

34

provisions set forth herein and any provisions of said ordinances that do not comply with the

 

LC006023/SUB A/2 - Page 104 of 106

1

provisions set forth herein shall be determined to be unenforceable.

2

     (o) The provisions of this section shall not apply if:

3

     (1) The mortgage is a reverse mortgage as described in chapter 25.1 of this title; or

4

     (2) The date of default under the mortgage is on or before May 16, 2013.

5

     (p) Limitations on actions. Any person who claims that a foreclosure is not valid due to the

6

mortgagee’s failure to comply with the terms of this section shall have one year from the date that

7

the first notice of foreclosure was published to file a complaint in the superior court for the county

8

in which the property is located and shall also file in the records of land evidence in the city or town

9

where the land subject to the mortgage is located a notice of lis pendens, the complaint to be filed

10

on the same day as the notice of lis pendens or within seven (7) days thereafter. Failure to file a

11

complaint, record the notice of lis pendens, and serve the mortgagee within the one-year period

12

shall preclude said mortgagor, or any other person claiming an interest through a mortgagor, from

13

subsequently challenging the validity of the foreclosure. Issuance by the mediation coordinator of

14

a certificate authorizing the mortgagee to proceed to foreclosure, or otherwise certifying the

15

mortgagee’s good-faith effort to comply with the provisions of this section, shall constitute a

16

rebuttable presumption that the notice requirements of subsection (d) have been met in all respects.

17

ARTICLE IV -- EFFECTIVE DATE

18

     SECTION 1. Article I of this act shall take effect on December 31, 2024. Article II and

19

Article III of this act shall take effect upon passage.

========

LC006023/SUB A/2

========

 

LC006023/SUB A/2 - Page 105 of 106

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

***

1

     This act makes a number of technical amendments to the general laws, prepared at the

2

recommendation of the law revision office. Article I contains the reenactment of the entirety of

3

chapters 49 to the end of title 42 of the general laws. Article II includes the statutory construction

4

provisions and Article III corrects statutory inconsistencies.

5

     Article I of this act would take effect on December 31, 2024. Article II and Article III of

6

this act would take effect upon passage.

========

LC006023/SUB A/2

========

 

LC006023/SUB A/2 - Page 106 of 106