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 |